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. Italics indicate opposite chamber/conference committee amendments. *hb0784* HOUSE BILL 784 A2 (5lr2970) ENROLLED BILL — Economic Matters/Finance — Introduced by Delegates Clippinger, Edelson, and R. Lewis Read and Examined by Proofreaders: _______________________________________________ Proofreader. _______________________________________________ Proofreader. Sealed with the Great Seal and presented to the Governor, for his approval this _______ day of _______________ at __ ______________________ o’clock, ________M. ______________________________________________ Speaker. CHAPTER ______ AN ACT concerning 1 Baltimore City – 46th Alcoholic Beverages District – Alcoholic Beverages 2 Licenses – Alterations 3 FOR the purpose of authorizing the Board of License Commissioners for Baltimore City to 4 provide a certain waiver from certain requirements for a restaurant within a certain 5 bounded area in the 46th alcoholic beverages district; expanding the class of license 6 to which a certain requirement for a memorandum of understanding applies to 7 include any alcoholic beverages license in Baltimore City; requiring a memorandum 8 of understanding between a certain licensee and a community association within a 9 certain bounded area in the 46th alcoholic beverages district before the Board of 10 License Commissioners for Baltimore City may issue a license in or transfer a license 11 to the bounded area; extending for a certain amount of time the expiration of a 12 certain license licenses in the 46th alcoholic beverages district for the purpose of 13 transfer; providing an exception to a certain prohibition against the Board allowing 14 2 HOUSE BILL 784 a certain license transfer under certain circumstances; and generally relating to 1 alcoholic beverages licenses in Baltimore City. 2 BY repealing and reenacting, without amendments, 3 Article – Alcoholic Beverages and Cannabis 4 Section 12–102 5 Annotated Code of Maryland 6 (2024 Replacement Volume) 7 BY repealing and reenacting, with amendments, 8 Article – Alcoholic Beverages and Cannabis 9 Section 12–104, 12–1406(b), and 12–1605(b)(5) 10 Annotated Code of Maryland 11 (2024 Replacement Volume) 12 BY repealing and reenacting, with amendments, 13 Chapter 1026 of the Acts of the General Assembly of 2024 14 Section 2 15 BY repealing and reenacting, with amendments, 16 Chapter 1027 of the Acts of the General Assembly of 2024 17 Section 2 18 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 19 That the Laws of Maryland read as follows: 20 Article – Alcoholic Beverages and Cannabis 21 12–102. 22 This title applies only in Baltimore City. 23 12–104. 24 (a) To be considered a restaurant, an establishment shall meet the requirements of 25 this section. 26 (b) An establishment shall have average daily receipts from the sale of food that 27 are at least 40% of its total daily receipts. 28 (c) The Board may not consider as food an ingredient or a garnish used with or 29 mixed with an alcoholic beverage that is prepared and served for on–premises consumption. 30 (d) (1) The Board may waive the food requirement specified under subsection 31 (b) of this section for a restaurant: 32 HOUSE BILL 784 3 (I) owned and operated by a nonprofit organization in the area 1 bounded by South Ellwood Avenue on the west, Bank Street on the north, South Bouldin 2 Street on the east, and Fleet Street on the south; OR 3 (II) OPERATED IN THE AREA BOUNDED BY SOUTH EDEN STREET 4 ON THE WEST, BANK STREET ON THE NORTH , SOUTH SPRING STREET ON THE EAST , 5 AND EASTERN AVENUE ON THE SOUTH . 6 (2) For a license that meets the qualifications under paragraph (1) of this 7 subsection, the Board may approve an expansion of the licensed premises onto a 8 noncontiguous property with a second separate use permit issued by the City, if the second 9 separate use permit specifically refers to the alcoholic beverages license at the primary 10 location. 11 12–1406. 12 (b) If a community association and an applicant for the issuance or renewal of [a 13 Class B, B–D–7, or D] AN alcoholic beverages license have entered into a memorandum of 14 understanding that expressly acknowledges the authority of the Board under this article, the 15 Board may make the issuance or renewal of the license conditional on the substantial 16 compliance of the applicant with the memorandum of understanding. 17 12–1605. 18 (b) (5) For an establishment that is within 300 feet of the nearest point of a 19 place of worship or school, the Board may issue a license in or approve the transfer of a 20 license into the area specified in paragraph (1)(ii)6 of this subsection only if the license 21 holder has received a letter of support from [a] THE place of worship or school that is within 22 the bounded area AND HAS ENTERED INTO A MEMORANDUM OF UNDE RSTANDING 23 WITH A COMMUNITY ASS OCIATION THAT IS WIT HIN THE BOUNDED AREA . 24 Chapter 1026 of the Acts of 2024 25 SECTION 2. AND BE IT FURTHER ENACTED, That: 26 (a) (1) Notwithstanding § 12–1705 of the Alcoholic Beverages and Cannabis 27 Article, a Class B–D–7 license issued for a premises on the 2800 block of O’Donnell Street 28 shall be considered unexpired until the end of July 1, 2024, for the purpose of completing a 29 transfer of ownership at the same location. 30 (2) Notwithstanding § 12–1604.1 of the Alcoholic Beverages and Cannabis 31 Article, a holder of a Class D beer and light wine license on the 3200 block of Eastern 32 Avenue may apply to the Board to convert to a Class D beer, wine, and liquor license if the 33 license holder meets each requirement in § 12–1604.1 except for the requirement to 34 maintain average daily receipts from the sale of food that are at least 51% of the total daily 35 receipts. 36 4 HOUSE BILL 784 (3) Notwithstanding § 12–2202 of the Alcoholic Beverages and Cannabis 1 Article, a Class B–D–7 license issued for a premises in the 1600 block of Eastern Avenue 2 shall be considered unexpired until the end of July 1, 2025, for the purpose of completing a 3 transfer of ownership and transfer of location to a premises in the 600 block of South 4 Caroline Street. 5 (4) (i) Notwithstanding § 12–2202 of the Alcoholic Beverages and 6 Cannabis Article, a Class B license issued for a premises in the 3500 block of Boston Street 7 shall be considered unexpired until the end of July 1, [2025] 2028, for the purpose of 8 completing a transfer of ownership and a transfer of location to a premises in the 3600 block 9 of Boston Street. 10 (ii) If a Class B license transferred to the 3600 block of Boston Street 11 under subparagraph (i) of this paragraph was originally issued as a Class B–D–7 license, 12 the license holder may apply to the Board to convert the Class B license back to a Class 13 B–D–7 license. 14 (5) Notwithstanding § 12–2202 of the Alcoholic Beverages and Cannabis 15 Article, a Class B–D–7 license issued for a premises in the 600 block of South Luzerne 16 Avenue shall be considered unexpired until the end of July 1, 2025, for the purpose of being 17 renewed to the current license year by the licensee. 18 (b) The Board may not authorize the transfer of a license in ward 24, precinct 5 19 to a person or a location that has received and retained funding awarded under a legislative 20 bond initiative. 21 Chapter 1027 of the Acts of 2024 22 SECTION 2. AND BE IT FURTHER ENACTED, That: 23 (a) (1) Notwithstanding § 12–1705 of the Alcoholic Beverages and Cannabis 24 Article, a Class B–D–7 license issued for a premises on the 2800 block of O’Donnell Street 25 shall be considered unexpired until the end of July 1, 2024, for the purpose of completing a 26 transfer of ownership at the same location. 27 (2) Notwithstanding § 12–1604.1 of the Alcoholic Beverages and Cannabis 28 Article, a holder of a Class D beer and light wine license on the 3200 block of Eastern 29 Avenue may apply to the Board to convert to a Class D beer, wine, and liquor license if the 30 license holder meets each requirement in § 12–1604.1 except for the requirement to 31 maintain average daily receipts from the sale of food that are at least 51% of the total daily 32 receipts. 33 (3) Notwithstanding § 12–2202 of the Alcoholic Beverages and Cannabis 34 Article, a Class B–D–7 license issued for a premises in the 1600 block of Eastern Avenue 35 shall be considered unexpired until the end of July 1, 2025, for the purpose of completing a 36 HOUSE BILL 784 5 transfer of ownership and transfer of location to a premises in the 600 block of South 1 Caroline Street. 2 (4) (i) Notwithstanding § 12–2202 of the Alcoholic Beverages and 3 Cannabis Article, a Class B license issued for a premises in the 3500 block of Boston Street 4 shall be considered unexpired until the end of July 1, [2025] 2028, for the purpose of 5 completing a transfer of ownership and a transfer of location to a premises in the 3600 block 6 of Boston Street. 7 (ii) If a Class B license transferred to the 3600 block of Boston Street 8 under subparagraph (i) of this paragraph was originally issued as a Class B–D–7 license, 9 the license holder may apply to the Board to convert the Class B license back to a Class 10 B–D–7 license. 11 (5) Notwithstanding § 12–2202 of the Alcoholic Beverages and Cannabis 12 Article, a Class B–D–7 license issued for a premises in the 600 block of South Luzerne 13 Avenue shall be considered unexpired until the end of July 1, 2025, for the purpose of being 14 renewed to the current license year by the licensee. 15 (b) The Board may not authorize the transfer of a license in ward 24, precinct 5 16 to a person or a location that has received and retained funding awarded under a legislative 17 bond initiative. 18 SECTION 2. AND BE IT FURTHER ENACTED, That: 19 (a) Notwithstanding § 12–1705 of the Alcoholic Beverages and Cannabis Article, 20 a Class D 6–day beer, wine, and liquor license issued for a premises on the 200 block of East 21 Lexington Street shall be considered unexpired until the end of June 30, 2026, for the 22 purpose of completing a transfer of ownership at the same location, provided the license 23 holder received a letter of support from the Downtown Partnership of Baltimore. 24 (b) (1) Notwithstanding §§ 12–1703 and 12–1705 of the Alcoholic Beverages 25 and Cannabis Article, five Class B beer, wine, and liquor licenses issued for restaurant 26 premises at Harborplace and expired between January 1, 2021, and January 1, 2025, shall 27 be considered unexpired until the end of June 30, 2030, for the purpose of completing a 28 transfer of ownership at the same location. 29 (2) Notwithstanding § 12–1703 of the Alcoholic Beverages and Cannabis 30 Article, the most recent license holder shall retain liability for any unpaid personal property 31 taxes due to Baltimore City or to the State. 32 (3) The Board may not: 33 (i) require a Class B beer, wine, and liquor license issued under this 34 subsection: 35 1. to have a minimum capital investment; or 36 6 HOUSE BILL 784 2. to maintain a minimum or maximum seating amount; 1 (ii) authorize the transfer of a license issued under this subsection to 2 another location; and 3 (iii) require the most recent license holder to complete a Transfer 4 Authorization or Affidavit of Compliance to complete a transfer of ownership in accordance 5 with this subsection. 6 (4) At the end of June 30, 2030, a Class B beer, wine, and liquor license 7 issued under this subsection shall expire and be nonrenewable. 8 SECTION 2. 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 9 June 1, 2025. Section 2 of this Act shall remain effective for a period of 5 years and 1 month 10 and, at the end of June 30, 2030, Section 2 of this Act, with no further action required by the 11 General Assembly, shall be abrogated and of no further force and effect. 12 Approved: ________________________________________________________________________________ Governor. ________________________________________________________________________________ Speaker of the House of Delegates. ________________________________________________________________________________ President of the Senate.