EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *hb0917* HOUSE BILL 917 A2 3lr1892 CF SB 607 By: Delegates Clippinger, Edelson, and R. Lewis Introduced and read first time: February 9, 2023 Assigned to: Economic Matters A BILL ENTITLED AN ACT concerning 1 Baltimore City – Alcoholic Beverages – 46th Alcoholic Beverages District – 2 Revisions 3 FOR the purpose of authorizing the Board of License Commissioners for Baltimore City to 4 approve a certain license expansion under certain circumstances; authorizing the 5 establishment and conversion of various alcoholic beverages licenses in the 46th 6 alcoholic beverages district in Baltimore City; altering certain seating capacity 7 requirements for a certain establishment located in a certain area in the 46th 8 alcoholic beverage district; extending for a certain amount of time the expiration of 9 an alcoholic beverages license issued for a certain area for the purposes of 10 transferring the license to another owner at the same location; and generally relating 11 to alcoholic beverages in Baltimore City. 12 BY repealing and reenacting, without amendments, 13 Article – Alcoholic Beverages 14 Section 12–102 and 12–1604(a) and (b) 15 Annotated Code of Maryland 16 (2016 Volume and 2022 Supplement) 17 BY repealing and reenacting, with amendments, 18 Article – Alcoholic Beverages 19 Section 12–104, 12–1604(c), and 12–1706(d) 20 Annotated Code of Maryland 21 (2016 Volume and 2022 Supplement) 22 BY adding to 23 Article – Alcoholic Beverages 24 Section 12–1604.1 25 Annotated Code of Maryland 26 (2016 Volume and 2022 Supplement) 27 2 HOUSE BILL 917 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1 That the Laws of Maryland read as follows: 2 Article – Alcoholic Beverages 3 12–102. 4 This title applies only in Baltimore City. 5 12–104. 6 (a) To be considered a restaurant, an establishment shall meet the requirements 7 of this section. 8 (b) An establishment shall have average daily receipts from the sale of food that 9 are at least 40% of its total daily receipts. 10 (c) The Board may not consider as food an ingredient or a garnish used with or 11 mixed with an alcoholic beverage that is prepared and served for on–premises consumption. 12 (d) (1) The Board may waive the food requirement specified under subsection 13 (b) of this section for a restaurant owned and operated by a nonprofit organization in the 14 area bounded by South Ellwood Avenue on the west, Bank Street on the north, South 15 Bouldin Street on the east, and Fleet Street on the south. 16 (2) FOR A LICENSE THAT ME ETS THE QUALIFICAT IONS UNDER 17 PARAGRAPH (1) OF THIS SUBSECTION , THE BOARD MAY APPROVE AN EXPANSION OF 18 THE LICENSED PREMISE S ONTO A NONCONTIGUO US PROPERTY WITH A S ECOND 19 SEPARATE USE PERMIT ISSUED BY THE CITY, IF THE SECOND SEPARA TE USE PERMIT 20 SPECIFICALLY REFERS TO THE ALCOHO LIC BEVERAGES LICENS E AT THE PRIMARY 21 LOCATION. 22 12–1604. 23 (a) This section applies only to the 46th alcoholic beverages district, which at all 24 times is coterminous with the 46th legislative district in the Legislative Districting Plan of 25 2012. 26 (b) Except as provided in subsections (c), (d), and (i) of this section, the Board may 27 not issue a new license in the 46th alcoholic beverages district. 28 (c) (1) The Board may issue: 29 (i) a 1–day license; and 30 HOUSE BILL 917 3 (ii) except as provided in paragraph (2) of this subsection, and 1 subject to paragraphs (3) and (4) of this subsection, a Class B beer, wine, and liquor license 2 for use by a restaurant if the average daily receipts from the sale of food are at least 51% 3 of the total daily receipts of the restaurant. 4 (2) The Board may issue a Class B beer, wine, and liquor license: 5 (i) for a restaurant in ward 26, precinct 8, ward 4, precinct 1, or 6 ward 3, precinct 3 that has: 7 1. seating for more than 150 individuals; 8 2. a minimum capital investment of $700,000; and 9 3. subject to paragraph (3) of this subsection, average daily 10 receipts from the sale of food that are at least 65% of the total daily receipts of the 11 restaurant; 12 (ii) for a restaurant in ward 4, precinct 1, or ward 22, precinct 1, if 13 the restaurant has: 14 1. seating for more than 75 individuals; 15 2. a minimum capital investment of $700,000; 16 3. average daily receipts from the sale of food that are at 17 least 65% of the total daily receipts of the restaurant; and 18 4. except as provided in paragraph (5) of this subsection, no 19 sales for off–premises consumption; 20 (iii) for not more than three restaurants in a residential planned unit 21 development for Silo Point as approved by the Mayor and City Council of Baltimore City in 22 Ordinance 04–697 on June 23, 2004, if each restaurant has: 23 1. a minimum capital investment of $700,000; 24 2. seating for more than 75 individuals; 25 3. average daily receipts from the sale of food that are at 26 least 65% of the total daily receipts of the restaurant; and 27 4. except as provided in paragraph (5) of this subsection, no 28 sales for off–premises consumption; 29 (iv) for not more than three restaurants in a business planned unit 30 development in ward 24, precinct 5, if each restaurant: 31 4 HOUSE BILL 917 1. has a minimum capital investment of $700,000; 1 2. has seating for more than 75 individuals, but not more 2 than 150 individuals; 3 3. has average daily receipts from the sale of food that are at 4 least 51% of the total daily receipts of the restaurant; and 5 4. except as provided in paragraph (5) of this subsection, may 6 not sell for off–premises consumption; 7 (v) for a restaurant in the area that is commonly known as Port 8 Covington, bounded on the north by Interstate 95, on the east by the South Locust Point 9 Terminal, and on the south and west by the Patapsco River, and that has: 10 1. seating for more than 150 individuals; 11 2. a minimum capital investment of $700,000; and 12 3. subject to paragraph (3) of this subsection, average daily 13 receipts from the sale of food that are at least 60% of the total daily receipts of the 14 restaurant; [and] 15 (vi) for a restaurant in Unit G of 3700 Toone Street in ward 26, 16 precinct 8, if the restaurant has: 17 1. seating for at least 75 individuals; 18 2. a minimum capital investment of $700,000; 19 3. average daily receipts for the sale of food that are at least 20 65% of the total daily receipts of the restaurant; and 21 4. has executed a memorandum of understanding with 22 Brewer’s Hill Neighbors, Inc.; AND 23 (VII) FOR A RESTAURANT IN THE AREA BOUNDED ON THE NORTH 24 BY EASTERN AVENUE, ON THE EAST BY SOUTH DUNCAN STREET, ON THE SOUTH BY 25 FLEET STREET, AND ON THE WEST BY SOUTH CHESTER STREET, IF THE 26 RESTAURANT HAS : 27 1. A DUCKPIN BOWLING AL LEY; AND 28 2. A MINIMUM CAPITAL IN VESTMENT OF $500,000, 29 EXCLUDING RESIDENTIA L IMPROVEMENTS . 30 HOUSE BILL 917 5 (3) When a license is renewed, the license holder shall file with the Board 1 a statement of average daily receipts and an affidavit of a licensed certified public 2 accountant that verify that the license holder has met the requirement under paragraph 3 (1)(ii) or (2)(i)3 or (v)3 of this subsection. 4 (4) (i) A license may not be issued under paragraph (1)(ii) of this 5 subsection for use in an establishment that is a fast–food–style restaurant. 6 (ii) A license issued under paragraph (1)(ii) of this subsection may 7 not be transferred from the location of its first issuance. 8 (5) The Board may issue a Class B beer, wine, and liquor license for a 9 restaurant in ward 21, precinct 4 in the 1400 block of Warner Street that has: 10 (i) seating for more than 150 individuals; 11 (ii) average daily receipts from the sale of food that are at least 40% 12 of the total daily receipts of the restaurant; and 13 (iii) no sales for off–premises consumption. 14 (6) A license specified under this subsection, including a license that does 15 not allow sales for off–premises consumption, may include an off–sale privilege for sales of 16 refillable containers under a refillable container license issued in accordance with § 17 12–1102 of this title. 18 (7) A LICENSE ISSUED UNDER PARAGRAPH (2)(VII) OF THIS 19 SUBSECTION: 20 (I) IS NOT REQUIRED TO H AVE A MINIMUM AMOUNT OF 21 SEATING FOR PATRONS OR A MINIMUM AMOUNT OF FOOD SALES TO MAI NTAIN 22 LICENSURE; AND 23 (II) MAY NOT BE TRANSFERR ED FROM THE LOCATION OF ITS 24 FIRST ISSUANCE. 25 12–1604.1. 26 (A) THIS SECTION APPLIES ONLY TO A LICENSE HO LDER OF A CLASS D 27 BEER AND LIGHT WINE LICENSE FOR USE IN T HE 46TH ALCOHOLIC BEVERAG ES 28 DISTRICT. 29 6 HOUSE BILL 917 (B) (1) A LICENSE HOLDER WHO HOLDS A VALID CLASS D BEER AND 1 LIGHT WINE LICENSE M AY APPLY TO THE BOARD TO CONVERT THE LICENSE TO A 2 CLASS D BEER, WINE, AND LIQUOR LICENSE I F THE LICENSE HOLDER : 3 (I) MAINTAINS AVERAGE DA ILY RECEIPTS FROM TH E SALE OF 4 FOOD THAT ARE AT LEA ST 51% OF ITS TOTAL DAILY RECEIPTS ; 5 (II) EXECUTES A MEMORANDU M OF UNDERSTANDING W ITH THE 6 RELEVANT LOCAL NEIGH BORHOOD ASSOCIATION AS DETERMINED BY THE BOARD; 7 (III) OPERATES A LOCATION WITH NOT MORE THAN 75 SEATS; 8 AND 9 (IV) PAYS A SPECIAL TRANS FER FEE OF $15,000, IN ADDITION TO 10 ANY FEES REQUIRED UN DER § 12–1704 OF THIS TITLE. 11 (2) IF A CLASS D BEER AND LIGHT WINE LICENSE IS CONVERTED TO 12 A CLASS D BEER, WINE, AND LIQUOR LICENSE U NDER PARAGRAPH (1) OF THIS 13 SUBSECTION, THE CLASS D BEER, WINE, AND LIQUOR LICENSE : 14 (I) MAY NOT BE TRANSFERR ED TO A NEW LOCATION ; AND 15 (II) IS SUBJECT TO THE RE QUIREMENTS OF PARAGR APH (1) OF 16 THIS SUBSECTION . 17 (C) AN APPLICATION TO CON VERT A CLASS D BEER AND LIGHT WINE 18 LICENSE UNDER SUBSEC TION (B)(1) OF THIS SECTION IS A TRANSFER SU BJECT TO 19 THE PROVISIONS OF § 12–1701(B)(1) OF THIS TITLE. 20 12–1706. 21 (d) (1) Except as provided in paragraph (2) of this subsection, a license may 22 not be transferred into or within: 23 (i) ward 1, precincts 2 and 3; 24 (ii) ward 2 in its entirety; 25 (iii) ward 3, precinct 3; and 26 (iv) ward 26, precincts 3 and 10. 27 (2) This subsection does not apply to an application for a new license or a 28 transfer from within the areas described in paragraph (1) of this subsection if the new 29 license or transfer is for: 30 HOUSE BILL 917 7 (i) a hotel; 1 (ii) an establishment located in a planned unit development if the 2 application for the planned unit development was filed or approved before December 31, 3 1995; 4 (iii) an establishment located in an area governed by the Inner 5 Harbor East Urban Renewal Plan; or 6 (iv) an establishment that has: 7 1. a seating capacity of fewer than 150 individuals; [or] 8 2. average daily receipts from the sale of food that are at 9 least 51% of the total daily receipts of the establishment; OR 10 3. A SEATING CAPACITY O F FEWER THAN 200 11 INDIVIDUALS ONLY IF THE ESTABLISHMENT IS WITHIN WARD 3, PRECINCT 3. 12 SECTION 2. AND BE IT FURTHER ENACTED, That, notwithstanding § 12 –1705 13 of the Alcoholic Beverages Article, a Class B–D–7 license issued for a premises in the 4300 14 block of East Lombard Street shall be considered unexpired until the end of July 1, 2024, 15 for the purposes of being transferred to another owner at the same location. 16 SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect June 17 1, 2023. Section 2 of this Act shall remain effective for a period of 1 year and 1 month and, 18 at the end of June 30, 2024, Section 2 of this Act, with no further action required by the 19 General Assembly, shall be abrogated and of no further force and effect. 20