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*sb0642*
SENATE BILL 642
A2 (6lr2356)
ENROLLED BILL
— Finance/Government, Labor, and Elections —
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 – Alcoholic Beverages – 46th Alcoholic Beverages District 2
FOR the purpose of authorizing the Board of License Commissioners for Baltimore City to 3
issue a Class 7 micro –brewery license to the holder of a Class B –D–7 license in the 4
46th alcoholic beverages district, subject to a certain limitation; requiring the Board 5
to establish a standard template for certain memoranda of understanding by a certain 6
date; authorizing the Board of License Commissioners for Baltimore City to 7
authorize the transfer of a Class B –D–7 license from an area in the 40th alcoholic 8
beverages district into the 46th alcoholic beverages district; authorizing certain 9
holders of certain Class D licenses in the 46th alcoholic beverages district to apply for 10
a 7–day sales privilege under certain circumstances; requiring the Board to adopt 11
regulations establishing certain tiered penalties for license violations; authorizing a 12
license holder in a certain area in the 46th alcoholic beverages district to keep and 13
allow individuals to consume alcohol donated by a manufacturer or wholesaler under 14
certain circumstances; extending for a certain amount of time the expiration of an 15
2 SENATE BILL 642
alcoholic beverage license licenses issued for a certain area locations for certain 1
transfer and renewal purposes; and generally relating to alcoholic beverages in 2
Baltimore City. 3
BY repealing and reenacting, without amendments, 4
Article – Alcoholic Beverages and Cannabis 5
Section 12–102 and 12–1604(a) 6
Annotated Code of Maryland 7
(2024 Replacement Volume and 2025 Supplement) 8
BY repealing and reenacting, with amendments, 9
Article – Alcoholic Beverages and Cannabis 10
Section 12–403 11
Annotated Code of Maryland 12
(2024 Replacement Volume and 2025 Supplement) 13
BY adding to 14
Article – Alcoholic Beverages and Cannabis 15
Section 12–1604(k) 12–1408, 12–1604(k), 12–1604.2, and 12–2802(g) 16
Annotated Code of Maryland 17
(2024 Replacement Volume and 2025 Supplement) 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
12–403. 24
(a) This section applies to a Class 7 micro–brewery license in the City. 25
(b) (1) The license may be issued only to the holder of: 26
[(1)] (I) a Class B beer, wine, and liquor (on –sale) license that is issued 27
for use on the premises of a restaurant located in the City; or 28
[(2)] (II) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION, a Class 29
[D] B–D–7 alcoholic beverages license that is issued for use on the premises of the existing 30
Class [D] B–D–7 license located in the [40th] 46TH alcoholic beverages district of the City. 31
SENATE BILL 642 3
(2) THE BOARD MAY ISSUE A LIC ENSE UNDER PARAGRAPH (1)(II) OF 1
THIS SUBSECTION IF THE HOLDER OF THE CLASS B–D–7 LICENSE RECEIVES A 2
LETTER OF SUPPORT FROM THE RIDGELY’S DELIGHT ASSOCIATION. 3
(c) (1) Subject to paragraphs (2), (3), and (4) of this subsection, the holder of a 4
Class 7 micro–brewery license may: 5
(i) brew in two locations using the same Class 7 micro –brewery 6
license; and 7
(ii) obtain a Class 2 rectifying license for the premises at the two 8
locations authorized under item (i) of this paragraph. 9
(2) The holder of a Class 7 micro–brewery license may brew in two locations 10
using the same Class 7 micro–brewery license if the license holder: 11
(i) requests permission by submitting a written application to the 12
Executive Director; and 13
(ii) obtains written approval from the Executive Director. 14
(3) Before authorizing a holder of a Class 7 micro –brewery license to brew 15
in two locations using the same Class 7 micro–brewery license, the Executive Director shall: 16
(i) make a determination that a second location to brew additional 17
capacity is necessary due to insufficient space at the existing Class 7 license location; and 18
(ii) consider any other factor relevant to approval of the application. 19
(4) Notwithstanding any other provision of this article, a holder of a Class 20
7 micro–brewery license may not serve o r sell beer for on – or off–premises consumption at 21
the second brewing location authorized under this subsection. 22
12–1408. 23
(A) (1) ON OR BEFORE JANUARY 1, 2027, THE BOARD SHALL ESTABLISH 24
A STANDARD TEMPLATE FOR MEMORANDA OF UND ERSTANDING BETWEEN 25
APPLICANTS FOR ALCOH OLIC BEVERAGES LICEN SES AND LOCAL NEIGHB ORHOOD 26
ASSOCIATIONS IN ACCORDANCE WITH THIS TITLE. 27
(2) INDIVIDUAL NEIGHBORHO OD ASSOCIATIONS MAY INCLUDE 28
ADDITIONAL INFORMATI ON ON THE STANDARD T EMPLATE ESTABLISHED UNDER 29
PARAGRAPH (1) OF THIS SUBSECTION. 30
(B) IF AN APPLICANT FOR T HE ISSUANCE OF A NEW , TRANSFERRED, OR 31
EXPANDED ALCOHOLIC B EVERAGES LICENSE IS REQUIRED TO SUBMIT A 32
4 SENATE BILL 642
MEMORANDUM OF UNDERS TANDING, THE BOARD MAY NOT CONSIDE R THE 1
APPLICATION TO BE CO MPLETE UNLESS A COMP LETED MEMORANDUM O F 2
UNDERSTANDING IS INCLUDED WITH THE APPLICATION. 3
12–1604. 4
(a) This section applies only to the 46th alcoholic beverages district, which at all 5
times is coterminous with the 46th legislative district in the Legislative Districting Plan of 6
2022. 7
(K) THE BOARD MAY AUTHORIZE T HE TRANSFER OF A CLASS B–D–7 8
LICENSE FROM THE 700 BLOCK OF WASHINGTON BOULEVARD IN THE 40TH 9
ALCOHOLIC BEVERAGES DISTRICT FOR USE BY AN ESTABLISHMENT ON THE 200 10
BLOCK OF SOUTH HIGH STREET IN THE 46TH ALCOHOLIC BEVERAGES DISTRICT. 11
12–1604.2. 12
(A) THIS SECTION APPLIES ONLY TO A HOLDER OF A CLASS D LICENSE FOR 13
USE IN THE 46TH ALCOHOLIC BEVERAGES DISTRICT. 14
(B) (1) NOTWITHSTANDING § 12–2004(F) OF THIS TITLE, A HOLDER OF A 15
VALID CLASS D LICENSE MAY APPLY TO THE BOARD TO SELL ALCOHOLIC BEVERAGES 16
MONDAY THROUGH SUNDAY IF THE LICENSE HOLDER: 17
(I) MAINTAINS AVERAGE DA ILY RECEIPTS FROM TH E SALE OF 18
FOOD THAT ARE AT LEA ST 51% OF THE TOTAL DAILY R ECEIPTS FROM THE 19
ESTABLISHMENT; 20
(II) EXECUTES A MEMORANDUM OF UNDERSTANDING WITH THE 21
RELEVANT LOCAL NEIGHBORHOOD ASSOCIATION AS DETERMINED BY THE BOARD; 22
(III) OPERATES AN ESTABLISHMENT WITH NOT MORE THAN 100 23
SEATS; AND 24
(IV) PAYS A ONE–TIME FEE OF $15,000, IN ADDITION TO ANNUAL 25
RENEWAL FEES ASSOCIATED WITH THE CLASS D LICENSE. 26
(2) (I) A CLASS D LICENSE THAT IS GRANTED A 7–DAY PRIVILEGE 27
UNDER THIS SUBSECTION MAY NOT BE TRANSFERRED TO A NEW LOCATION. 28
(II) A NEW HOLDER OF A CLASS D LICENSE THAT IS GRANTED A 29
7–DAY PRIVILEGE UNDER THIS SUBSECTION MUST COMPLY WITH THE 30
REQUIREMENTS OF THIS SUBSECTION. 31
SENATE BILL 642 5
(C) THE BOARD SHALL USE THE ONE –TIME FEE PAID BY THE LICENSE 1
HOLDER UNDER SUBSECT ION (B)(1)(IV) OF THIS SECTION FOR ENFORCEMENT OF 2
THE MEMORANDUM OF UN DERSTANDING REQUIRED UNDER SUBSECTION (B)(1)(II) 3
OF THIS SECTION. 4
12–2802. 5
(G) THE BOARD SHALL ADOPT REGULATI ONS THAT ESTABLISH T IERED 6
PENALTIES FOR VIOLATIONS UNDER THIS TITLE, INCLUDING THE REVOCATION OF A 7
7–DAY SALES PRIVILEGE GRANTED UNDER § 12–1604.2 OF THIS TITLE IF THE 8
LICENSEE VIOLATES TH E PROVISIONS OF THE REQUIRED MEMORANDUM OF 9
UNDERSTANDING THREE OR MORE TIMES WITHIN A 2–YEAR PERIOD. 10
SECTION 2. AND BE IT FURTHER ENACTED, That, notwithstanding §§ 6 –308 11
and 6–311 of the Alcoholic Beverages and Cannabis Article, a licensed establishment on 12
the south side of the unit block of West Pratt Street may keep and allow individuals to 13
consume on the licensed premises alcoholic beverages donated by a manufacturer or 14
wholesaler if: 15
(1) the alcoholic beverages are donated and served at an event for which a 16
nonprofit entity has rented the licensed premises; 17
(2) the licensee has provided to the Board of License Commissioners for 18
Baltimore City evidence of the nonprofit status of the entity renting the licensed premises; 19
(3) the licensee serves the alcohol donated for the event; 20
(4) any related taxes have been remitted; and 21
(5) the licensee only keeps and serves alcoholic beverages in conjunction 22
with a single rental contract. 23
SECTION 3. AND BE IT FURTHER ENACTED, That, notwithstanding: 24
(a) Notwithstanding § 12–1705 of the Alcoho lic Beverages and Cannabis Article, 25
a Class D beer and wine license issued for a premises in the 800 block of St. Paul Street shall 26
be considered unexpired until July 1, 2027, for the purpose of completing a transfer of 27
ownership at the same location. 28
(b) Notwithstanding § 12–2202 of the Alcoholic Beverages and Cannabis Article, 29
a Class B beer, wine, and liquor license issued for a premises in the 6500 block of Eastern 30
Avenue shall be considered unexpired until the end of July 1, 2027, for the purpose of being 31
renewed to the current license year by the licensee. 32
(c) Notwithstanding § 12–2202 of the Alcoholic Beverages and Cannabis Article, 33
a Class B –D–7 beer, wine, and liquor license issued for a premises in the 1600 block of 34
6 SENATE BILL 642
Eastern Avenue shall be considered unexpired until the end of July 1, 2027, for the purpose 1
of being renewed to the current license year and transferred to a new owner at a premises 2
in the 700 block of Aliceanna Street. 3
SECTION 4. AND BE IT FURTHER ENACTED, That this Act shall take effect June 4
1, 2026. Section 2 of this Act shall remain effective for a period of 2 years and, at the end of 5
May 31, 2028, Section 2 of this Act, with no further action required by the General 6
Assembly, shall be abrogated and of no further force and effect. 7
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.