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Drafted by: Carter
Typed by: Gail
Stored 10/29/15
Proofread by ___________________
Checked by ____________________

Bill No.: ______________________

Requested: ___________________
Committee: ___________________
By: Montgomery County Delegation

A BILL ENTITLED
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AN ACT concerning

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Montgomery County Alcoholic Beverages Class A Beer, Wine, and Liquor

Licenses and Purchases From Licensed Wholesalers

MC 316

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FOR the purpose of establishing a Class A beer, wine, and liquor license in Montgomery
County, as of a certain date; setting the annual license fee for a certain Class A
license; requiring the Board of License Commissioners to adopt certain regulations
governing the sale of alcoholic beverages by a holder of a Class A beer, wine, and
liquor license; authorizing a holder of a Class A beer, wine, and liquor license in
Montgomery County, beginning on a certain date, to sell liquor at retail to customers
for offpremises consumption; authorizing a holder of certain alcoholic beverages
licenses in Montgomery County, beginning on a certain date, to elect to purchase
alcoholic beverages from a licensed wholesaler in addition to or instead of from the
Department of Liquor Control; requiring a license holder to provide written notice
within a certain time to the Department; requiring that the notice contain certain
information; requiring that the Department issue to the license holder a letter of
confirmation; requiring that a license holder display the letter conspicuously on the
licensed premises; submitting this Act to a referendum of the qualified voters of
Montgomery County; and generally relating to the establishment of a Class A beer,
wine, and liquor license and the purchase of alcoholic beverages from a licensed
wholesaler in Montgomery County.
EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.

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BY repealing and reenacting, without amendments,

Article 2B Alcoholic Beverages
Section 6301(q)(1), (2)(i), and (8)(i)
Annotated Code of Maryland
(2011 Replacement Volume and 2015 Supplement)

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BY repealing and reenacting, with amendments,

Article 2B Alcoholic Beverages
Section 6101(q), 6301(q)(2)(iv), (3)(i), and (8)(iv), 12216, and 15204(a) and (b)
Annotated Code of Maryland
(2011 Replacement Volume and 2015 Supplement)

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SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,

That the Laws of Maryland read as follows:

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Article 2B Alcoholic Beverages

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6101.
(q)

(1)

This subsection applies only in Montgomery County.

(2)

(I)

BEGINNING JULY 1, 2018, THERE IS A CLASS A BEER, WINE,

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AND LIQUOR LICENSE.

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(II) THE ANNUAL LICENSE FEE FOR A CLASS A BEER, WINE, AND
LIQUOR LICENSE IS $1,000.

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(III) THE BOARD OF LICENSE COMMISSIONERS SHALL ADOPT

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REGULATIONS THAT GOVERN THE SALE OF ALCOHOLIC BEVERAGES BY A HOLDER

OF A CLASS A BEER, WINE, AND LIQUOR LICENSE, INCLUDING THE HOURS FOR SALE.

(3)

(I)

[The only Class A license that is available in the county] THERE

is a Class ATP 7day license.

[(3)] (II)

The annual license fee for a Class ATP license is the same as for
a license issued pursuant to subsection (r) of this section. Class ATP licensees may not be
charged for such a license until May 1, 1998.
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[(4)] (III) The Board shall issue a Class ATP license to any person who on
June 30, 1997, both held a Class A beer, wine and liquor license and operated a Class A
business where the licensed premises were located in that portion of the City of Takoma
Park that was formerly part of Prince Georges County.

[(5)] (IV)

Unless revoked or not renewed for good cause, the license shall
continue and be renewed, subject to payment of the annual license fee. The license is not
transferable to any other location, but the license may be transferred to another person at
any time, subject to the restrictions on similar transfers for other alcoholic beverages
licenses in Montgomery County.

[(6)] (V)

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The Board shall promulgate regulations that govern the sale of

alcoholic beverages by a Class ATP licensee. These regulations shall include the hours for
sale.

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6301.

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(q)

(1)

This subsection applies only in Montgomery County.

(2)

(i)

There is a country club license.

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(iv) The licensee may keep for sale and sell any alcoholic beverages
purchased from the Liquor Control Board for Montgomery County OR, BEGINNING ON

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(3)
(i)
A licensee under paragraph (2) of this subsection may keep for
sale and sell at the place described in the license any alcoholic beverages purchased from
the Liquor Control Board OR, BEGINNING ON JULY 1, 2018, FROM A LICENSED
WHOLESALER IN ACCORDANCE WITH 15204(B)(4) OF THIS ARTICLE, at retail, for
consumption on its premises only, to any member of the country club, to a bona fide guest
or guests of a member, to the immediate family of a member, or to persons residing
temporarily in the clubhouse of the country club.

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JULY 1, 2018, FROM A LICENSED WHOLESALER IN ACCORDANCE WITH

15204(B)(4) OF THIS ARTICLE, at retail, to any customer at the place described in the
license, for consumption on its premises only.

(8)

(i)

There is a Continuing Care Retirement Community license.

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(iv) A licensee may keep for sale and sell at retail to a member or a
guest when accompanied by a member at the place described in the license beer, wine and
liquor, purchased from the Department of Liquor Control for Montgomery County OR,

12216.

JULY 1, 2018, PURCHASED FROM A LICENSED WHOLESALER IN

ACCORDANCE WITH 15204(B)(4) OF THIS ARTICLE, for consumption on the licensed
BEGINNING ON

premises only.

(a)

[In] THIS SECTION APPLIES ONLY IN Montgomery County [the].

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(B)

EXCEPT AS PROVIDED IN SUBSECTION (D) OF THIS SECTION, holders of

the following alcoholic beverages licenses may not sell any alcoholic beverages except those
purchased from the Department of Liquor Control for the County:

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(1)

Beer licenses Classes A, B, HTP, C, and D;

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(2)

Beer and light wine licenses Classes B, C, D, and DTP; and

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(3)

Beer, wine and liquor licenses Classes ATP, B, C, and CTP.

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[(b)] (C)
(1) [It] EXCEPT AS PROVIDED IN SUBSECTION (D) OF THIS
SECTION, IT shall be unlawful for any druggist or apothecary using or dispensing alcoholic
beverages under the provisions of this article to use or dispense any such beverages except
those purchased from the Liquor Control Board for Montgomery County.

(2)

If any person, persons, house, company, association or body corporate

shall violate any of the provisions of this subsection, he, she, it or they shall, upon each and
every conviction, forfeit and pay a fine of not less than one hundred dollars ($100.00) nor
more than two thousand dollars ($2,000.00), and the cost of prosecution and be confined in
the Maryland House of Correction for not less than three months nor more than two years
or both fine and imprisonment in the discretion of the court.

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(D)

BEGINNING ON JULY 1, 2018, A LICENSE HOLDER MAY ELECT TO

PURCHASE ALCOHOLIC BEVERAGES FROM A LICENSED WHOLESALER UNDER
15204(B)(4) OF THIS ARTICLE.

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15204.
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(a)
(1) Subject to 16407.1 of this article and except as otherwise provided in
this section, the liquor control board in each county shall have an absolute monopoly of the
sale and distribution of the particular alcoholic beverages which elsewhere in this subtitle
it is empowered to sell.

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(2) BEGINNING ON JULY 1, 2018, IN MONTGOMERY COUNTY A

HOLDER OF A CLASS A BEER, WINE, AND LIQUOR LICENSE MAY SELL LIQUOR AT
RETAIL TO CUSTOMERS FOR OFFPREMISES CONSUMPTION.

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[Provided,
MONTGOMERY COUNTY.

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(2)

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(b)

(1)

that

in]

THIS SUBSECTION APPLIES ONLY IN

IN Montgomery County no person, firm, or corporation shall keep for

sale any alcoholic beverage not purchased from the Department of Liquor Control for
Montgomery County, provided, however, that nothing in this subsection shall apply to a
holder of a Class F license or a holder of a Class 1 beer, wine and liquor, Class 2 wine and
liquor, Class 3 beer and wine, Class 4 beer, or Class 5 wine wholesalers license, who may
not sell or deliver any alcoholic beverage in Montgomery County for resale except to a
county liquor dispensary.

[(2)] (3)

Notwithstanding paragraph [(1)] (2) of this subsection:

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(i)
1.
A holder of a Class 6 limited wine wholesalers license or
of a nonresident winery permit may sell or deliver wine directly to a county liquor
dispensary, restaurant, or other retail dealer in Montgomery County; and

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2.
A county liquor dispensary, restaurant, or other retail
dealer in Montgomery County may purchase wine directly from a holder of a Class 6 limited
wine wholesalers license or of a nonresident winery permit;

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(ii)
1.
A holder of a Class 7 limited beer wholesalers license or of
a nonresident brewery permit may sell or deliver its own beer to a county liquor dispensary,
a restaurant, or any other retail dealer in Montgomery County; and

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2.
A county liquor dispensary, a restaurant, or any other
retail dealer in Montgomery County may purchase beer directly from a holder of a Class 7
limited beer wholesalers license or a nonresident brewery permit;
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(iii) A holder of a direct wine shippers permit may ship wine directly
to a consumer in Montgomery County; and

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(iv) A holder of a wine auction permit in Montgomery County may

receive and sell wine obtained from any source listed under 2101(o) of this article.

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(4)

NOTWITHSTANDING PARAGRAPH (2) OF THIS SUBSECTION:

(I)

1.

BEGINNING ON JULY 1, 2018, A LICENSE HOLDER IN

THE COUNTY MAY ELECT TO PURCHASE ALCOHOLIC BEVERAGES FROM A LICENSED

WHOLESALER BY PROVIDING WRITTEN NOTICE OF THE LICENSE HOLDERS INTENT
TO THE DEPARTMENT OF LIQUOR CONTROL FOR MONTGOMERY COUNTY AT LEAST

60 DAYS BEFORE THE DATE THE PURCHASING ACTIVITY IS TO START.

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2.

THE NOTICE SHALL CONTAIN:

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A.

THE NAME OF THE LICENSE HOLDER;

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B.

THE NAME AND ADDRESS OF THE LICENSED

C.

THE DATE THAT THE NOTICE WAS SENT TO THE

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PREMISES; AND

DEPARTMENT.
(II)

A LICENSE HOLDER WHO MEETS THE REQUIREMENTS OF

THIS SUBSECTION MAY PURCHASE ALCOHOLIC BEVERAGES FROM A LICENSED

WHOLESALER IN ADDITION TO OR INSTEAD OF THE

DEPARTMENT OF LIQUOR

CONTROL FOR MONTGOMERY COUNTY.

(III) 1.

THE DEPARTMENT OF LIQUOR CONTROL FOR

MONTGOMERY COUNTY SHALL ISSUE A LETTER OF CONFIRMATION TO A LICENSE

HOLDER WHO MEETS THE REQUIREMENTS OF THIS PARAGRAPH.
2.

THE LICENSE HOLDER SHALL DISPLAY THE LETTER

CONSPICUOUSLY ON THE LICENSED PREMISES.

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SECTION 2. AND BE IT FURTHER ENACTED, That before this Act becomes

effective it shall first be submitted to a referendum of the qualified voters of Montgomery
County at the general election to be held in November of 2016. The County governing body
and the Montgomery County Board of Elections shall do those things necessary and proper
to provide for and hold the referendum required by this section. If a majority of the votes
cast on the question are For the referred law the provisions of this Act shall become
effective on the 30th day following the official canvass of votes for the referendum, but if a
majority of the votes cast on the question are Against the referred law the provisions of
this Act are of no effect and null and void.

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SECTION 3. AND BE IT FURTHER ENACTED, That, subject to the provisions of

Section 2 of this Act and for the sole purpose of providing for the referendum required by
Section 2 of this Act, this Act shall take effect July 1, 2016.