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. *sb0662* SENATE BILL 662 A2 (5lr3069) ENROLLED BILL — Finance/Economic Matters — Introduced by Senator Ferguson 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. ______________________________________________ President. 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; authorizing the Board to 8 issue a certain alcoholic beverages license for a certain location in the 40th alcoholic 9 beverages district; requiring a memorandum of understanding between a certain 10 licensee and a community association within a certain bounded area in the 46th 11 alcoholic beverages district before the Board of License Commissioners for Baltimore 12 City may issue a license in or transfer a license to the bounded area; extending for a 13 certain amount of time the expiration of a certain license licenses in the 46th 14 alcoholic beverages district for the purpose of transfer; providing an exception to a 15 2 SENATE BILL 662 certain prohibition against the Board allowing a certain license transfer under 1 certain circumstances; and generally relating to alcoholic beverages licenses in 2 Baltimore City. 3 BY repealing and reenacting, without amendments, 4 Article – Alcoholic Beverages and Cannabis 5 Section 12–102 and 12–1603(a) and (b) 6 Annotated Code of Maryland 7 (2024 Replacement Volume) 8 BY repealing and reenacting, with amendments, 9 Article – Alcoholic Beverages and Cannabis 10 Section 12–104, 12–1406(b), 12–1603(c)(17) and (18), and 12–1605(b)(5) 11 Annotated Code of Maryland 12 (2024 Replacement Volume) 13 BY adding to 14 Article – Alcoholic Beverages and Cannabis 15 Section 12–1603(c)(19) 16 Annotated Code of Maryland 17 (2024 Replacement Volume) 18 BY repealing and reenacting, with amendments, 19 Chapter 1026 of the Acts of the General Assembly of 2024 20 Section 2 21 BY repealing and reenacting, with amendments, 22 Chapter 1027 of the Acts of the General Assembly of 2024 23 Section 2 24 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 25 That the Laws of Maryland read as follows: 26 Article – Alcoholic Beverages and Cannabis 27 12–102. 28 This title applies only in Baltimore City. 29 12–104. 30 (a) To be considered a restaurant, an establishment shall meet the requirements of 31 this section. 32 (b) An establishment shall have average daily receipts from the sale of food that 33 are at least 40% of its total daily receipts. 34 SENATE BILL 662 3 (c) The Board may not consider as food an ingredient or a garnish used with or 1 mixed with an alcoholic beverage that is prepared and served for on–premises consumption. 2 (d) (1) The Board may waive the food requirement specified under subsection 3 (b) of this section for a restaurant: 4 (I) owned and operated by a nonprofit organization in the area 5 bounded by South Ellwood Avenue on the west, Bank Street on the north, South Bouldin 6 Street on the east, and Fleet Street on the south; OR 7 (II) OPERATED IN THE AREA BOUNDED BY SOUTH EDEN STREET 8 ON THE WEST, BANK STREET ON THE NORTH , SOUTH SPRING STREET ON THE EAST , 9 AND EASTERN AVENUE ON THE SOUTH. 10 (2) For a license that meets the qualifications under paragraph (1) of this 11 subsection, the Board may approve an expansion of the licensed premises onto a 12 noncontiguous property with a second separate use permit issued by the City, if the second 13 separate use permit specifically refers to the alcoholic beverages license at the primary 14 location. 15 12–1406. 16 (b) If a community association and an applicant for the issuance or renewal of [a 17 Class B, B–D–7, or D] AN alcoholic beverages license have entered into a memorandum of 18 understanding that expressly acknowledges the authority of the Board under this article, the 19 Board may make the issuance or renewal of the license conditional on the substantial 20 compliance of the applicant with the memorandum of understanding. 21 12–1603. 22 (a) The alcoholic beverages districts described in this section at all times are 23 coterminous with the legislative districts in the Legislative Districting Plan of 2022. 24 (b) Except as provided in subsection (c) of this section, the Board may not issue a 25 new license in: 26 (1) the 40th alcoholic beverages district; 27 (2) the 41st alcoholic beverages district; 28 (3) the 43rd alcoholic beverages district; 29 (4) the 44th alcoholic beverages district; and 30 (5) the 45th alcoholic beverages district. 31 4 SENATE BILL 662 (c) The Board may issue: 1 (17) a Class A–7 beer, wine, and liquor license in the 1200 block of West North 2 Avenue in the 40th alcoholic beverages district, if: 3 (i) the applicant executes a memorandum of understanding with the 4 Penn North Community Association; 5 (ii) alcoholic beverages are sold only as part of a gift basket or floral 6 arrangement; and 7 (iii) the applicant does not hold or apply for a Class BWLT beer, wine, 8 and liquor (on–premises) tasting license; [and] 9 (18) a Class B beer, wine, and liquor license for a restaurant on the even side 10 of the 400 block of West 29th Street in the 40th alcoholic beverages district if: 11 (i) the applicant executes a memorandum of understanding with the 12 Greater Remington Improvement Association; and 13 (ii) the Board waives a minimum seating requirement under item 14 (1)(ii)2 of this subsection; AND 15 (19) A CLASS C BEER, WINE, AND LIQUOR LICENSE O N THE ODD SIDE 16 OF THE 800 BLOCK OF NORTH HOWARD STREET IN THE 40TH ALCOHOLIC 17 BEVERAGES DISTRICT I F: 18 (I) THE APPLICANT DOES N OT CONVERT THE LICEN SE TO A 19 DIFFERENT LICENSE CL ASS; 20 (II) THE APPLICANT DOES N OT TRANSFER THE LICE NSE TO A 21 DIFFERENT LOCATION ; 22 (III) ALCOHOLIC BEVERAGES ARE SERVED ONLY TO PATRONS 23 INDOORS; 24 (IV) ALCOHOLIC BEVERAGES SALES BEGIN NOT EARL IER THAN 25 10 A.M. AND END NOT LATER TH AN 9 P.M.; 26 (V) THE APPLICANT PROVID ES NOT MORE THAN TWO 12–OUNCE 27 OFFERINGS OF BEER , TWO 6–OUNCE OFFERINGS OF W INE BY THE GLASS , OR TWO 28 1.5–OUNCE OFFERINGS OF LI QUOR FOR ON–PREMISES CONSUMPTION BY A PATRON 29 WHILE THE PATRON IS PROVIDED A BARBERING SERVICE REGULATED UN DER TITLE 30 4, SUBTITLE 5 OF THE BUSINESS OCCUPATIONS AND PROFESSIONS ARTICLE; 31 SENATE BILL 662 5 (VI) THE BOARD WAIVES ANY REQU IREMENTS THAT SALE S CAN 1 BE MADE ONLY TO MEMB ERS AND THE GUESTS O F MEMBERS; AND 2 (VII) THE APPLICANT EXECUT ES A MEMORANDUM OF 3 UNDERSTANDING WITH T HE MOUNT VERNON – BELVEDERE ASSOCIATION. 4 12–1605. 5 (b) (5) For an establishment that is within 300 feet of the nearest point of a 6 place of worship or school, the Board may issue a license in or approve the transfer of a 7 license into the area specified in paragraph (1)(ii)6 of this subsection only if the license 8 holder has received a letter of support from [a] THE place of worship or school that is within 9 the bounded area AND HAS ENTERED INTO A MEMORANDUM OF UNDE RSTANDING 10 WITH A COMMUNITY ASS OCIATION THAT IS WIT HIN THE BOUNDED AREA . 11 Chapter 1026 of the Acts of 2024 12 SECTION 2. AND BE IT FURTHER ENACTED, That: 13 (a) (1) Notwithstanding § 12–1705 of the Alcoholic Beverages and Cannabis 14 Article, a Class B–D–7 license issued for a premises on the 2800 block of O’Donnell Street 15 shall be considered unexpired until the end of July 1, 2024, for the purpose of completing a 16 transfer of ownership at the same location. 17 (2) Notwithstanding § 12–1604.1 of the Alcoholic Beverages and Cannabis 18 Article, a holder of a Class D beer and light wine license on the 3200 block of Eastern 19 Avenue may apply to the Board to convert to a Class D beer, wine, and liquor license if the 20 license holder meets each requirement in § 12–1604.1 except for the requirement to 21 maintain average daily receipts from the sale of food that are at least 51% of the total daily 22 receipts. 23 (3) Notwithstanding § 12–2202 of the Alcoholic Beverages and Cannabis 24 Article, a Class B–D–7 license issued for a premises in the 1600 block of Eastern Avenue 25 shall be considered unexpired until the end of July 1, 2025, for the purpose of completing a 26 transfer of ownership and transfer of location to a premises in the 600 block of South 27 Caroline Street. 28 (4) (i) Notwithstanding § 12–2202 of the Alcoholic Beverages and 29 Cannabis Article, a Class B license issued for a premises in the 3500 block of Boston Street 30 shall be considered unexpired until the end of July 1, [2025] 2028, for the purpose of 31 completing a transfer of ownership and a transfer of location to a premises in the 3600 block 32 of Boston Street. 33 (ii) If a Class B license transferred to the 3600 block of Boston Street 34 under subparagraph (i) of this paragraph was originally issued as a Class B–D–7 license, 35 6 SENATE BILL 662 the license holder may apply to the Board to convert the Class B license back to a Class 1 B–D–7 license. 2 (5) Notwithstanding § 12–2202 of the Alcoholic Beverages and Cannabis 3 Article, a Class B–D–7 license issued for a premises in the 600 block of South Luzerne 4 Avenue shall be considered unexpired until the end of July 1, 2025, for the purpose of being 5 renewed to the current license year by the licensee. 6 (b) The Board may not authorize the transfer of a license in ward 24, precinct 5 7 to a person or a location that has received and retained funding awarded under a legislative 8 bond initiative. 9 Chapter 1027 of the Acts of 2024 10 SECTION 2. AND BE IT FURTHER ENACTED, That: 11 (a) (1) Notwithstanding § 12–1705 of the Alcoholic Beverages and Cannabis 12 Article, a Class B–D–7 license issued for a premises on the 2800 block of O’Donnell Street 13 shall be considered unexpired until the end of July 1, 2024, for the purpose of completing a 14 transfer of ownership at the same location. 15 (2) Notwithstanding § 12–1604.1 of the Alcoholic Beverages and Cannabis 16 Article, a holder of a Class D beer and light wine license on the 3200 block of Eastern 17 Avenue may apply to the Board to convert to a Class D beer, wine, and liquor license if the 18 license holder meets each requirement in § 12–1604.1 except for the requirement to 19 maintain average daily receipts from the sale of food that are at least 51% of the total daily 20 receipts. 21 (3) Notwithstanding § 12–2202 of the Alcoholic Beverages and Cannabis 22 Article, a Class B–D–7 license issued for a premises in the 1600 block of Eastern Avenue 23 shall be considered unexpired until the end of July 1, 2025, for the purpose of completing a 24 transfer of ownership and transfer of location to a premises in the 600 block of South 25 Caroline Street. 26 (4) (i) Notwithstanding § 12–2202 of the Alcoholic Beverages and 27 Cannabis Article, a Class B license issued for a premises in the 3500 block of Boston Street 28 shall be considered unexpired until the end of July 1, [2025] 2028, for the purpose of 29 completing a transfer of ownership and a transfer of location to a premises in the 3600 block 30 of Boston Street. 31 (ii) If a Class B license transferred to the 3600 block of Boston Street 32 under subparagraph (i) of this paragraph was originally issued as a Class B–D–7 license, 33 the license holder may apply to the Board to convert the Class B license back to a Class 34 B–D–7 license. 35 (5) Notwithstanding § 12–2202 of the Alcoholic Beverages and Cannabis 36 Article, a Class B–D–7 license issued for a premises in the 600 block of South Luzerne 37 SENATE BILL 662 7 Avenue shall be considered unexpired until the end of July 1, 2025, for the purpose of being 1 renewed to the current license year by the licensee. 2 (b) The Board may not authorize the transfer of a license in ward 24, precinct 5 3 to a person or a location that has received and retained funding awarded under a legislative 4 bond initiative. 5 SECTION 2. AND BE IT FURTHER ENACTED, That: 6 (a) Notwithstanding § 12–1705 of the Alcoholic Beverages and Cannabis Article, 7 a Class D 6–day beer, wine, and liquor license issued for a premises on the 200 block of East 8 Lexington Street shall be considered unexpired until the end of June 30, 2026, for the 9 purpose of completing a transfer of ownership at the same location, provided the license 10 holder received a letter of support from the Downtown Partnership of Baltimore. 11 (b) (1) Notwithstanding §§ 12–1703 and 12–1705 of the Alcoholic Beverages 12 and Cannabis Article, five Class B beer, wine, and liquor licenses issued for restaurant 13 premises at Harborplace and expired between January 1, 2021, and January 1, 2025, shall 14 be considered unexpired until the end of June 30, 2030, for the purpose of completing a 15 transfer of ownership at the same location. 16 (2) Notwithstanding § 12–1703 of the Alcoholic Beverages and Cannabis 17 Article, the most recent license holder shall retain liability for any unpaid personal property 18 taxes due to Baltimore City or to the State. 19 (3) The Board may not: 20 (i) require a Class B beer, wine, and liquor license issued under this 21 subsection: 22 1. to have a minimum capital investment; or 23 2. to maintain a minimum or maximum seating amount; 24 (ii) authorize the transfer of a license issued under this subsection to 25 another location; and 26 (iii) require the most recent license holder to complete a Transfer 27 Authorization or Affidavit of Compliance to complete a transfer of ownership in accordance 28 with this subsection. 29 (4) At the end of June 30, 2030, a Class B beer, wine, and liquor license 30 issued under this subsection shall expire and be nonrenewable. 31 SECTION 2. 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 32 June 1, 2025. Section 2 of this Act shall remain effective for a period of 5 years and 1 month 33 8 SENATE BILL 662 and, at the end of June 30, 2030, Section 2 of this Act, with no further action required by the 1 General Assembly, shall be abrogated and of no further force and effect. 2 Approved: ________________________________________________________________________________ Governor. ________________________________________________________________________________ President of the Senate. ________________________________________________________________________________ Speaker of the House of Delegates.