HB 777
Department of Legislative Services
Maryland General Assembly
2020 Session
FISCAL AND POLICY NOTE
Third Reader
House Bill 777 (Delegate Jacobs, et al.)
Economic Matters Education, Health, and Environmental Affairs
Kent County Alcohol Act of 2020
This bill alters the hours of sale for Class B wine shop and lounge licenses in Kent County.
The bill authorizes the Kent County Board of License Commissioners to issue a refillable
container permit for draft beer to specified alcoholic beverages license holders. The bill
also establishes a Class C multiple event beer, wine, and liquor (BWL) license in the county
for events held by a volunteer fire company. The bill takes effect July 1, 2020.
Fiscal Summary
State Effect: None.
Local Effect: Kent County revenues increase based on the number of refillable container
permits for draft beer and Class C multiple event BWL licenses issued as a result of the
bill. Monitoring of any additional licenses and the adoption of regulations can be handled
using existing resources.
Small Business Effect: Potential meaningful. Any qualifying licensee that obtains a
refillable container permit for draft beer may realize increased sales resulting from the use
of the permit.
 Analysis
Bill Summary:
Class B Wine Shop and Lounge License Hours of Sale
The bill alters the hours of sale for a Class B wine shop and lounge license in Kent County
to authorize sales from 6 a.m. to 2 a.m. the following day, Monday through Sunday.
Refillable Container Permit for Draft Beer
The bill authorizes the board to issue refillable container permits for draft beer to the holder
of a Class A, Class B, or Class D license. The applicant for a permit must complete a form
that the board provides. The hours of sale for permit holders begin at the same time as those
for the underlying license and end at midnight. The board must adopt regulations to carry
out the bill’s provisions regarding refillable container permits for draft beer. The board
may charge an annual permit fee of up to $50 for applicants holding an underlying license
with an off-sale privilege, or up to $500 for applicants holding an underlying license
without an off-sale privilege.
Class C Multiple Event BWL License
The bill establishes a Class C multiple event BWL liquor license in the county. The holder
of a Class C multiple event BWL license is authorized to exercise any privilege conferred
by the license at an event held by a volunteer fire company. A multiple event license may
be used by a single applicant for no more than 24 days per calendar year. The application
for a license must be in the form that the board provides and the applicant must sign the
form. A multiple event license may be issued for one premises only and generally to the
same applicant for all events for which the license is issued. However, the board may
approve in writing a substitute applicant, and before approving a substitute applicant, hold
a hearing. A server who is certified by an approved alcohol awareness program must be on
the premises where a multiple event license is issued while alcoholic beverages are being
served.
The annual fee is $200 for up to 12 events per year and $400 for at least 13 but not more
than 24 events per year. The board may not issue a refund if a license holder holds fewer
events than the license holder is entitled to hold.
The bill authorizes alcoholic beverages to be stored on the premises of a licensed volunteer
fire company between events if the alcoholic beverages are in a specifically identified
location, locked and secured, and are not sold or consumed except during licensed events.
A license holder must keep complete and accurate records of all alcoholic beverages
HB 777/ Page 2
purchased and sold on the premises. The records must include a completed pre- and
post-inventory of all alcoholic beverages for each individual event. The records must be
maintained on the premises for two years and available for inspection by authorized
personnel of the Comptroller and the board. In addition, authorized personnel of the
Comptroller and the board may inspect the premises of a license holder, as specified. A
license holder who violates the bill’s provisions is subject to (1) a fine of $100 for the
first offense and (2) for a subsequent offense, a fine up to $500 and denial of future requests
for an individual event or a special multiple event license.
Current Law: A Class B wine shop and lounge license authorizes the holder to sell wine
for on- and off-premises consumption. A license holder may sell wine (1) on
Monday through Friday, from 6 a.m. to 2 a.m. the following day, (2) on Saturday, from
6 a.m. to 1 a.m. the following day, and (3) on Sunday, from 9 a.m. to midnight, for
off-premises consumption only. The license holder is not subject to any requirement
regarding the percentage of average daily receipts derived from the sale of food, and an
individual under the legal drinking age may enter the licensed premises. The annual license
fee is $300.
Background: In 2019, there were 71 alcoholic beverages licenses issued in Kent County.
Additional Information
Prior Introductions: None.
Designated Cross File: SB 792 (Senator Hershey) - Education, Health, and
Environmental Affairs.
Information Source(s): Kent County; Comptroller’s Office; Department of Legislative
Services
Fiscal Note History: First Reader - February 14, 2020
an/tso Third Reader - March 5, 2020
Analysis by: Thomas S. Elder Direct Inquiries to:
(410) 946-5510
(301) 970-5510
HB 777/ Page 3


Statutes affected:
Text - First - Kent County Alcohol Act of 2020: 24-102 Alcoholic Beverages, 24-1003 Alcoholic Beverages, 24-1101 Alcoholic Beverages, 24-1102 Alcoholic Beverages, 24-1309 Alcoholic Beverages, 24-1310 Alcoholic Beverages
Text - Third - Kent County Alcohol Act of 2020: 24-102 Alcoholic Beverages, 24-1003 Alcoholic Beverages, 24-1101 Alcoholic Beverages, 24-1102 Alcoholic Beverages, 24-1309 Alcoholic Beverages, 24-1310 Alcoholic Beverages