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. *hb0635* HOUSE BILL 635 A2 4lr1554 CF SB 734 By: Harford County Delegation Introduced and read first time: January 25, 2024 Assigned to: Economic Matters Committee Report: Favorable with amendments House action: Adopted Read second time: March 8, 2024 CHAPTER ______ AN ACT concerning 1 Harford County – Alcoholic Beverages – Performing Arts Nonprofit 2 Organization License 3 FOR the purpose of establishing in Harford County a performing arts nonprofit 4 organization license that authorizes the holder to sell or serve beer, wine, and liquor 5 at certain locations for on–premises consumption; requiring the holder of the license 6 to comply with certain record–keeping and reporting requirements; and generally 7 relating to alcoholic beverages licenses in Harford County. 8 BY renumbering 9 Article – Alcoholic Beverages and Cannabis 10 Section 22–1005.2 and 22–1005.3 11 to be Section 22–1005.3 and 22–1005.4, respectively 12 Annotated Code of Maryland 13 (2016 Volume and 2023 Supplement) 14 BY repealing and reenacting, without amendments, 15 Article – Alcoholic Beverages and Cannabis 16 Section 22–102 17 Annotated Code of Maryland 18 (2016 Volume and 2023 Supplement) 19 BY adding to 20 Article – Alcoholic Beverages and Cannabis 21 Section 22–1005.2 22 2 HOUSE BILL 635 Annotated Code of Maryland 1 (2016 Volume and 2023 Supplement) 2 BY repealing and reenacting, with amendments, 3 Article – Alcoholic Beverages and Cannabis 4 Section 22–1501(b)(2) 5 Annotated Code of Maryland 6 (2016 Volume and 2023 Supplement) 7 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 8 That Section(s) 22–1005.2 and 22–1005.3 of Artic1e – Alcoholic Beverages and Cannabis of 9 the Annotated Code of Maryland be renumbered to be Section(s) 22–1005.3 and 22–1005.4, 10 respectively. 11 SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 12 as follows: 13 Article – Alcoholic Beverages and Cannabis 14 22–102. 15 This title applies only in Harford County. 16 22–1005.2. 17 (A) IN THIS SECTION , “PERFORMING ARTS NONP ROFIT ORGANIZATION ” 18 MEANS A NONPROFIT OR GANIZATION THAT ORGA NIZES THE PRODUCTION OF PLAYS, 19 ACTS, DRAMAS, CONCERTS, OR SIMILAR EVENTS BY INDIVIDUALS PERFORMI NG ON 20 A STAGE OR THE SHOWI NG OF FILMS. 21 (B) THERE IS A PERFORMING ARTS NONPROFIT ORGAN IZATION BEER , 22 WINE, AND LIQUOR LICENSE . 23 (C) THE BOARD MAY ISSUE THE L ICENSE TO A PERFORMI NG ARTS 24 NONPROFIT ORGANIZATI ON. 25 (D) (1) THE LICENSE AUTHORIZE S THE HOLDER TO SELL OR SERVE BEER, 26 WINE, AND LIQUOR AT RET AIL FOR ON–PREMISES CONSUMPTION AT UP TO THREE 27 LOCATIONS DESIGNATED AT THE TIME OF APPLI CATION. 28 (2) THE LOCATIONS DESIGNA TED AT THE TIME OF A PPLICATION 29 MUST: 30 (I) BE SUITABLE FOR THE PRODUCTION OF PLAYS , ACTS, 31 DRAMAS, CONCERTS, OR SIMILAR EVENTS BY INDIVIDUALS PERFORMIN G ON A 32 STAGE OR THE SHOWING OF FILMS; AND 33 HOUSE BILL 635 3 (II) MEET ANY OTHER REQUI REMENTS ESTABLISHED BY THE 1 BOARD. 2 (3) THE LICENSE HOLDER MA Y ALTER THE AUTHORIZ ED LOCATIONS 3 EACH TIME THE LICENS E IS RENEWED. 4 (E) THE LICENSE HOLDER MA Y SELL OR SERVE BEER, WINE, AND LIQUOR: 5 (1) 1 HOUR BEFORE AND AFTE R A PERFORMANCE ; 6 (2) DURING A PERFORMANCE ; 7 (3) DURING AN INTERMISSI ON; AND 8 (4) DURING A RECEPTION W ITHIN 1 HOUR BEFORE OR AFTER A 9 PERFORMANCE . 10 (F) THE LICENSE MAY NOT B E TRANSFERRED TO ANOTHER LOCATION NOT 11 IDENTIFIED ON THE AP PLICATION. 12 (G) THE LICENSE HOLDER SH ALL PURCHASE BEER , WINE, AND LIQUOR 13 FROM A RETAIL LICENS E HOLDER OR AN AUTHO RIZED AND LICENSED W HOLESALER. 14 (H) A LICENSE HOLDER MAY N OT SELL OR ISSUE MOR E THAN 750 TICKETS 15 TO ANY EVENT OR PERFORM ANCE AT WHICH THE HO LDER WILL SELL OR SE RVE 16 BEER, WINE, OR LIQUOR. 17 (I) ISSUANCE OF A LICENSE UNDER THIS SECTION D OES NOT PROHIBIT THE 18 BOARD FROM ISSUING A CLASS C PER DIEM LICENSE TO THE PERFORMING ARTS 19 NONPROFIT ORGANIZATI ON FOR AN EVENT OUTSIDE THE SCO PE OF THE LICENSE . 20 (J) THE LICENSE HOLDER SH ALL SERVE OR OFFER F OR SALE SNACKS AT 21 ALL TIMES WHEN BEER , WINE, AND LIQUOR ARE SOLD . 22 (K) (1) THE LICENSE HOLDER SH ALL: 23 (I) KEEP COMPLETE AND AC CURATE RECORDS OF AL L 24 ALCOHOLIC BEVERAGES SOLD , SERVED, AND PURCHASED UNDER THIS SECTION; 25 (II) ON WRITTEN REQUEST O F THE COMPTROLLER OR THE 26 BOARD, REPORT ON THE FORM T HAT THE COMPTROLLER OR THE BOARD REQUIRES 27 INFORMATION RELATING TO THE ALCOHOLIC BEV ERAGES THAT ARE THE SUBJECT 28 OF THE RECORDS REQUIRED TO BE KEPT; AND 29 4 HOUSE BILL 635 (III) ON REQUEST OF THE COMPTROLLER OR THE BOARD, MAKE 1 THE REPORT UNDER OAT H. 2 (2) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 3 PARAGRAPH , EACH LICENSE HOLDER SHALL KEEP RECORDS A T THE LOCATION 4 DESIGNATED IN T HE LICENSE. 5 (II) IF THE LICENSE HOLDER IS ALLOWED TO HAVE M ORE THAN 6 ONE LOCATION , THE LICENSE HOLDER M AY KEEP THE RECORDS AT THE PRINCIPAL 7 LOCATION. 8 (III) THE RECORDS SHALL : 9 1. MEET FORM AND CONTEN T REQUIREMENTS OF TH E 10 COMPTROLLER AND THE BOARD; 11 2. BE PRESERVED FOR AT LEAST 2 YEARS IN A MANNER 12 THAT ENSURES PERMANE NCY; AND 13 3. BE MADE AVAILABLE FO R AUDIT OR INSPECTIO N 14 DURING REGULAR BUSIN ESS HOURS BY THE COMPTROLLER OR THE BOARD OR A 15 DESIGNEE OF THE COMPTROLLER OR THE BOARD. 16 (3) (I) THE COMPTROLLER MAY WITHO UT A HEARING 17 IMMEDIATELY SUSPEND FOR A MAXIMUM OF 30 DAYS THE LICENSE OF A LICENSE 18 HOLDER WHO FAILS TO COMPLY WITH THIS SUB SECTION. 19 (II) IF A REPORT REQUIRED BY THIS SECTION OR A N 20 INVESTIGATION BY THE BOARD, A BOARD OFFICER , THE COMPTROLLER , OR ANY 21 OTHER PERSON INDICAT ES THAT THE LICENSE HOLDER IS VIOLATING THIS 22 SECTION, THE BOARD SHALL SUMMON TH E LICENSE HOLDER AND CONDUCT A 23 HEARING. 24 (III) IF THE CHARGES AT THE HEARING ARE SUSTAINE D, THE 25 BOARD: 26 1. SHALL IMPOSE A FINE OF NOT LESS THAN $250 AND 27 NOT MORE THAN $2,000; AND 28 2. MAY SUSPEND OR REVOK E THE LICENSE HOLDER ’S 29 LICENSE IMMEDIATELY . 30 (K) (L) THE ANNUAL LICENSE FE E IS $750. 31 HOUSE BILL 635 5 22–1501. 1 (b) The following sections of Title 4, Subtitle 2 (“Issuance or Denial of Local 2 Licenses”) of Division I of this article apply in the county: 3 (2) § 4–203 (“Prohibition against issuing multiple licenses to individual or 4 for use of entity”), subject to §§ 22–1503 and 22–1504 of this subtitle and Subtitle 13, Part 5 III [and], Subtitle 16, Part II, AND § 22–1005.2 of this title; 6 SECTION 3. 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.