EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. Underlining indicates amendments to bill. Strike out indicates matter stricken from the bill by amendment or deleted from the law by amendment. *hb0587* HOUSE BILL 587 A2 4lr1595 CF SB 561 By: Frederick County Delegation Introduced and read first time: January 24, 2024 Assigned to: Economic Matters Committee Report: Favorable with amendments House action: Adopted Read second time: March 8, 2024 CHAPTER ______ AN ACT concerning 1 Frederick County – Alcoholic Beverages – Manufacturer’s Limited Beer, Wine, 2 and Liquor Permit 3 FOR the purpose of establishing a manufacturer’s limited beer, wine, and liquor permit in 4 Frederick County; authorizing the Board of License Commissioners for Frederick 5 County to issue a permit to holders of certain manufacturer’s licenses; requiring the 6 Board to adopt certain regulations; and generally relating to alcoholic beverages in 7 Frederick County. 8 BY repealing and reenacting, without amendments, 9 Article – Alcoholic Beverages and Cannabis 10 Section 20–102 11 Annotated Code of Maryland 12 (2016 Volume and 2023 Supplement) 13 BY repealing and reenacting, with amendments, 14 Article – Alcoholic Beverages and Cannabis 15 Section 20–401 16 Annotated Code of Maryland 17 (2016 Volume and 2023 Supplement) 18 BY adding to 19 Article – Alcoholic Beverages and Cannabis 20 Section 20–402.1 21 Annotated Code of Maryland 22 2 HOUSE BILL 587 (2016 Volume and 2023 Supplement) 1 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 2 That the Laws of Maryland read as follows: 3 Article – Alcoholic Beverages and Cannabis 4 20–102. 5 This title applies only in Frederick County. 6 20–401. 7 (a) The following sections of Title 2, Subtitle 2 (“Manufacturer’s Licenses”) of 8 Division I of this article apply in the county without exception or variation: 9 (1) § 2–201 (“Issuance by Comptroller”); 10 (2) [§ 2–202 (“Class 1 distillery license”); 11 (3)] § 2–203 (“Class 9 limited distillery license”); 12 [(4)] (3) § 2–204 (“Class 2 rectifying license”); 13 [(5) § 2–207 (“Class 5 brewery license”); 14 (6)] (4) § 2–210 (“Class 8 farm brewery license”); 15 [(7)] (5) § 2–211 (“Residency requirement”); 16 [(8)] (6) § 2–212 (“Additional licenses”); 17 [(9)] (7) § 2–213 (“Additional fees”); 18 [(10)] (8) § 2–214 (“Sale or delivery restricted”); 19 [(11)] (9) § 2–215 (“Beer sale on credit to retail dealer prohibited”); 20 [(12)] (10) § 2–216 (“Interaction between manufacturing entities and 21 retailers”); 22 [(13)] (11) § 2–217 (“Distribution of alcoholic beverages — Prohibited 23 practices”); and 24 [(14)] (12) § 2–218 (“Restrictive agreements between producers and 25 retailers — Prohibited”). 26 HOUSE BILL 587 3 (b) The following sections of Title 2, Subtitle 2 (“Manufacturer’s Licenses”) of 1 Division I of this article apply in the county: 2 (1) § 2–202 (“CLASS 1 DISTILLERY LICENSE ”), SUBJECT TO § 3 20–402.1 OF THIS SUBTITLE; 4 [(1)] (2) § 2–205 (“Class 3 winery license”), subject to § 20–403 of this 5 subtitle; 6 [(2)] (3) § 2–206 (“Class 4 limited winery license”), subject to § 20–404 of 7 this subtitle; 8 (4) § 2–207 (“CLASS 5 BREWERY LICENSE ”), SUBJECT TO § 20–402.1 9 OF THIS SUBTITLE; 10 [(3)] (5) § 2–208 (“Class 6 pub–brewery license”), subject to § 20–405 of 11 this subtitle; and 12 [(4)] (6) § 2–209 (“Class 7 micro–brewery license”), subject to § 20–406 of 13 this subtitle. 14 20–402.1. 15 (A) THERE IS A MANUFACTUR ER’S LIMITED BEER , WINE, AND LIQUOR 16 PERMIT. 17 (B) THE BOARD MAY ISSUE THE P ERMIT TO A HOLDER OF A 18 MANUFACTURER ’S LICENSE WITH A LOC AL ON–SITE CONSUMPTION PER MIT UNDER 19 § 2–202 OR § 2–207 OF THIS ARTICLE. 20 (C) (1) (I) THE SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , 21 THE PERMIT AUTHORIZES THE HOLDER TO ALLOW A LICENSED CATERER O R OTHER 22 CONTRACTED PARTY TO PROVIDE SEALED BEER , WINE, AND LIQUOR PRODUCTS NOT 23 MANUFACTURED BY THE HOLDER DURING PRIVAT E EVENTS FOR ON –PREMISES 24 CONSUMPTION AT THE P REMISES LICENSED FOR THE MANUFACTURER ’S LICENSE. 25 (II) THE HOLDER MAY NOT HA VE A DIRECT OR INDIR ECT 26 PECUNIARY INTEREST I N THE LICENSED CATER ER OR OTHER CONTRACT ED PARTY. 27 (2) THE HOLDER MAY NOT AL LOW PATRONS WHO ARE VISITING ANY 28 PART OF THE MANUFACT URER’S LICENSED PREMISES THAT IS OPEN TO THE PUBLIC 29 TO ENTER THE PRIVATE EV ENT AREA WHILE THE P RIVATE EVENT IS BEIN G HELD. 30 4 HOUSE BILL 587 (D) THE HOLDER SHALL REQU EST APPROVAL FROM TH E BOARD BEFORE 1 EACH EVENT. 2 (E) THE BOARD SHALL ADOPT REG ULATIONS TO CARRY OU T THIS SECTION, 3 INCLUDING: 4 (1) CRITERIA FOR APPROVI NG EVENTS; AND 5 (2) SETTING THE ANNUAL P ERMIT FEE. 6 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 7 1, 2024. 8 Approved: ________________________________________________________________________________ Governor. ________________________________________________________________________________ Speaker of the House of Delegates. ________________________________________________________________________________ President of the Senate.