EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING 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. *sb0734* SENATE BILL 734 A2 4lr2762 CF HB 635 By: Harford County Senators Introduced and read first time: January 31, 2024 Assigned to: Finance Committee Report: Favorable with amendments Senate action: Adopted Read second time: February 23, 2024 CHAPTER ______ AN ACT concerning 1 Harford County – Alcoholic Beverages – Performing Arts Nonprofit 2 Organization License 3 FOR the purpose of repealing the performing arts theater beer and wine license in Harford 4 County; establishing in Harford County a performing arts nonprofit organization 5 license that authorizes the holder to sell or serve beer, wine, and liquor at certain 6 locations for on–premises consumption; requiring the holder of the license to comply 7 with certain record–keeping and reporting requirements; and generally relating to 8 alcoholic beverages licenses in Harford County. 9 BY repealing and reenacting, without amendments, 10 Article – Alcoholic Beverages and Cannabis 11 Section 22–102 12 Annotated Code of Maryland 13 (2016 Volume and 2023 Supplement) 14 BY repealing 15 Article – Alcoholic Beverages and Cannabis 16 Section 22–1005.2 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 SENATE BILL 734 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 the Laws of Maryland read as follows: 9 Article – Alcoholic Beverages and Cannabis 10 22–102. 11 This title applies only in Harford County. 12 [22–1005.2. 13 (a) In this section, “performing arts theater” means an area, a building, or a 14 structure designed and used for plays, acts, dramas, concerts, or histrionics by actors or 15 actresses performing on a stage or the showing of movies or films. 16 (b) There is a performing arts theater beer and wine license. 17 (c) The Board may issue the license for use on the premises of a performing arts 18 theater operated by a nonprofit organization. 19 (d) The license authorizes the holder to sell or serve beer and wine at retail for 20 on–premises consumption. 21 (e) The license holder may sell or serve beer and wine: 22 (1) 1 hour before and after a performance; 23 (2) during a performance; 24 (3) during an intermission; and 25 (4) during a reception 1 hour before or 1 hour after a performance. 26 (f) The license may not be transferred to another location. 27 (g) The license holder shall purchase beer and wine from an authorized and 28 licensed wholesaler. 29 SENATE BILL 734 3 (h) Issuance of a license under this section does not prohibit the Board from 1 issuing a Class C per diem license that applies to the performing arts theater. 2 (i) The license holder shall serve or offer for sale snacks at all times when beer 3 and wine are sold. 4 (j) The annual license fee is $500.] 5 22–1005.2. 6 (A) IN THIS SECTION , “PERFORMING ARTS NONP ROFIT ORGANIZATION ” 7 MEANS A NONPROFIT OR GANIZATION THAT ORGA NIZES THE PRODUCTION OF PLAYS, 8 ACTS, DRAMAS, CONCERTS, OR SIMILAR EVENTS BY INDIVIDUALS PERFORMI NG ON 9 A STAGE OR THE SHOWI NG OF FILMS. 10 (B) THERE IS A PERFORMING ARTS NONPROFIT ORGAN IZATION BEER , 11 WINE, AND LIQUOR LICENSE . 12 (C) THE BOARD MAY ISSUE THE L ICENSE TO A PERFORMI NG ARTS 13 NONPROFIT ORGANIZATI ON. 14 (D) (1) THE LICENSE AUTHORIZE S THE HOLDER TO SELL OR SERVE BEER, 15 WINE, AND LIQUOR AT RETAIL FOR ON –PREMISES CONSUMPTION AT UP TO THREE 16 LOCATIONS DESIGNATED AT THE TIME OF APPLI CATION. 17 (2) THE LOCATIONS DESIGNA TED AT THE TIME OF A PPLICATION 18 MUST: 19 (I) BE SUITABLE FOR THE PRODUCTION OF PLAYS , ACTS, 20 DRAMAS, CONCERTS, OR SIMILAR EVENTS B Y INDIVIDUALS PERFOR MING ON A 21 STAGE OR THE SHOWING OF FILMS; AND 22 (II) MEET ANY OTHER REQUI REMENTS ESTABLISHED BY THE 23 BOARD. 24 (3) THE LICENSE HOLDER MA Y ALTER THE AUTHORIZ ED LOCATIONS 25 EACH TIME THE LICENS E IS RENEWED. 26 (E) THE LICENSE HOLDER MA Y SELL OR SERVE BEER , WINE, AND LIQUOR: 27 (1) 1 HOUR BEFORE AND AFTE R A PERFORMANCE ; 28 (2) DURING A PERFORMANCE ; 29 (3) DURING AN INTERMISSI ON; AND 30 4 SENATE BILL 734 (4) DURING A RECEPTION W ITHIN 1 HOUR BEFORE OR AFTER A 1 PERFORMANCE . 2 (F) THE LICENSE MAY NOT B E TRANSFERRED TO ANOTHER LOCATION NOT 3 IDENTIFIED ON THE AP PLICATION. 4 (G) THE LICENSE HOLDER SH ALL PURCHASE BEER , WINE, AND LIQUOR 5 FROM A RETAIL LICENS E HOLDER OR AN AUTHO RIZED AND LICENSED W HOLESALER. 6 (H) A LICENSE HOLDER MAY N OT SELL OR ISSUE MOR E THAN 750 TICKETS 7 TO ANY EVENT OR PERF ORMANCE AT WHICH THE HOLDER WILL SELL OR SERVE 8 BEER, WINE, OR LIQUOR. 9 (I) ISSUANCE OF A LICENSE UNDER THIS SECTION D OES NOT PROHIBIT THE 10 BOARD FROM ISSUING A CLASS C PER DIEM LICENSE TO THE PERFORMING ARTS 11 NONPROFIT ORGANIZATI ON FOR AN EVENT OUTSIDE THE SCOPE OF THE LICENSE . 12 (J) THE LICENSE HOLDER SH ALL SERVE OR OFFER F OR SALE SNACKS AT 13 ALL TIMES WHEN BEER , WINE, AND LIQUOR ARE SOLD . 14 (K) (1) THE LICENSE HOLDER SH ALL: 15 (I) KEEP COMPLETE AND AC CURATE RECORDS OF AL L 16 ALCOHOLIC BEVERAGES SOLD , SERVED, AND PURCHASED UNDER THIS SECTION; 17 (II) ON WRITTEN REQUEST O F THE COMPTROLLER OR THE 18 BOARD, REPORT ON THE FORM T HAT THE COMPTROLLER OR THE BOARD REQUIRES 19 INFORMATION RELATING TO THE ALCOHOLIC BEV ERAGES THAT ARE THE SUBJECT 20 OF THE RECORDS REQUIRED TO BE KEPT; AND 21 (III) ON REQUEST OF THE COMPTROLLER OR THE BOARD, MAKE 22 THE REPORT UNDER OAT H. 23 (2) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 24 PARAGRAPH , EACH LICENSE HOLDER SHALL KEEP RECORDS A T THE LOCATION 25 DESIGNATED IN T HE LICENSE. 26 (II) IF THE LICENSE HOLDER IS ALLOWED TO HAVE M ORE THAN 27 ONE LOCATION , THE LICENSE HOLDER M AY KEEP THE RECORDS AT THE PRINCIPAL 28 LOCATION. 29 (III) THE RECORDS SHALL : 30 SENATE BILL 734 5 1. MEET FORM AND CONTEN T REQUIREMENTS OF TH E 1 COMPTROLLER AND THE BOARD; 2 2. BE PRESERVED FOR AT LEAST 2 YEARS IN A MANNER 3 THAT ENSURES PERMANE NCY; AND 4 3. BE MADE AVAILABLE FO R AUDIT OR INSPECTIO N 5 DURING REGULAR BUSIN ESS HOURS BY THE COMPTROLLER OR THE BOARD OR A 6 DESIGNEE OF THE COMPTROLLER OR THE BOARD. 7 (3) (I) THE COMPTROLLER MAY WITHO UT A HEARING 8 IMMEDIATELY SUSPEND FOR A MAXIMUM OF 30 DAYS THE LICENSE OF A LICENSE 9 HOLDER WHO FAILS TO COMPLY WITH THIS SUB SECTION. 10 (II) IF A REPORT REQUIRED BY THIS SECTION OR A N 11 INVESTIGATION BY THE BOARD, A BOARD OFFICER , THE COMPTROLLER , OR ANY 12 OTHER PERSON INDICAT ES THAT THE LICENSE HOLDER IS VIOLATING THIS 13 SECTION, THE BOARD SHALL SUMMON TH E LICENSE HOLDER AND CONDUCT A 14 HEARING. 15 (III) IF THE CHARGES AT THE HEARING ARE SUSTAINE D, THE 16 BOARD: 17 1. SHALL IMPOSE A FINE OF NOT LESS THAN $250 AND 18 NOT MORE THAN $2,000; AND 19 2. MAY SUSPEND OR REVOK E THE LICENSE HOLDER ’S 20 LICENSE IMMEDIATELY . 21 (K) (L) THE ANNUAL LICENSE FE E IS $750. 22 22–1501. 23 (b) The following sections of Title 4, Subtitle 2 (“Issuance or Denial of Local 24 Licenses”) of Division I of this article apply in the county: 25 (2) § 4–203 (“Prohibition against issuing multiple licenses to individual or 26 for use of entity”), subject to §§ 22–1503 and 22–1504 of this subtitle and Subtitle 13, Part 27 III [and], Subtitle 16, Part II, AND § 22–1005.2 of this title; 28 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 29 1, 2024. 30