EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0542*
SENATE BILL 542
A1 5lr1704
By: Senators Charles, Muse, and Ellis
Introduced and read first time: January 23, 2025
Assigned to: Finance
A BILL ENTITLED
AN ACT concerning 1
Alcoholic Beverages Industry – Study 2
FOR the purpose of requiring the Governor’s Office of Small, Minority, and Women 3
Business Affairs to contract with an independent consultant to conduct a certain 4
study concerning the alcoholic beverages industry in the State; and generally 5
relating to a study of the alcoholic beverages industry in the State. 6
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 7
That: 8
(a) In this section, “Office” means the Governor’s Office of Small, Minority, and 9
Women Business Affairs. 10
(b) The Office shall contract with an independent consultant to complete a study 11
of the structure and composition of the distribution and retail sector of the alcoholic 12
beverages industry in the State and to make recommendations on identifying and 13
eliminating barriers to minority participation in that industry. 14
(c) The study shall include: 15
(1) current participation rates and data organized by racial and ethnic 16
demographics for distributors and retailers; 17
(2) historical business participation rates and data organized by racial and 18
ethnic demographics for distributors and retailers; 19
(3) the names and total numbers organized by racial and ethnic 20
demographics of the following that are carried by, or do business with, each distributor and 21
retailer: 22
(i) brands by name; 23 2 SENATE BILL 542
(ii) brand owners; 1
(iii) distillers; 2
(iv) importers; 3
(v) manufacturers; 4
(vi) producers; 5
(vii) winemakers; and 6
(viii) creators of any product that contains alcohol, but is not 7
specifically mentioned above; 8
(4) how the structure of the distribution and retail sector of the Maryland 9
alcoholic beverages industry compares to similar structures in other licensing states; 10
(5) how the participation of businesses owned by different demographics in 11
Maryland compares to the business participation in other states, where available; and 12
(6) areas that have potential discrimination within the industry that could 13
warrant remedial action. 14
(d) The recommendations shall include: 15
(1) identifying barriers to participation within the distribution and retail 16
sector tier of the alcoholic beverages industry; 17
(2) how the State can enhance business participation in the alcoholic 18
beverages industry; and 19
(3) other data that may need to be collected or authorized to fully 20
understand the opportunity of business enterprises to participate in the alcoholic beverages 21
industry. 22
(e) The Office shall consult with the Office of the Attorney General, the 23
Department of Transportation, and the Alcohol, Tobacco, and Cannabis Commission in 24
developing the solicitation for an independent consultant under this section. 25
(f) (1) Each holder of a State or local alcoholic beverages license or permit 26
must cooperate with the Office and the independent consultant in providing the following 27
information: 28
(i) services provided by a wholesaler to a supplier or manufacturer 29
in exchange for distribution rights within the State; 30 SENATE BILL 542 3
(ii) a list of suppliers that licensed wholesalers distribute on behalf 1
of; 2
(iii) lists of brands sold within the State by each retailer, along with 3
the demographics of the owner; 4
(iv) lists of brands distributed within the State by each wholesaler, 5
along with the demographics of the owner; 6
(v) the percentage of wholesaler revenues for each brand owner 7
account service; and 8
(vi) the percentage of retailer revenues for each brand owner. 9
(2) Each holder of a State or local alcoholic beverages license or permit, or 10
applicant for a license or permit, shall cooperate with requests from the Office or the 11
independent consultant and provide the requested information within 75 days after 12
receiving the request. 13
(3) The Office of the Comptroller and each local licensing board shall 14
cooperate with requests from the Office or the independent consultant and provide the 15
requested information within 75 days after receiving the request. 16
(g) Information provided in accordance with this section by each holder of a State 17
or local alcoholic beverages license or permit, or applicant for a license or permit: 18
(1) shall: 19
(i) constitute confidential commercial information and confidential 20
financial information; and 21
(ii) be treated as confidential by the independent consultant and the 22
State; and 23
(2) may be: 24
(i) used only for purposes authorized under this section; and 25
(ii) disclosed to the public only in an anonymized or aggregated 26
format. 27
(h) On or before December 1, 2026, the Office shall submit the completed report 28
and recommendations, along with any additional information the Office considers 29
pertinent, to the Governor and, in accordance with § 2–1257 of the State Government 30
Article, the General Assembly. 31
4 SENATE BILL 542
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 1
1, 2025. It shall remain effective for a period of 2 years and 1 month and, at the end of June 2
30, 2027, this Act, with no further action required by the General Assembly, shall be 3
abrogated and of no further force and effect. 4