SB 69
Department of Legislative Services
Maryland General Assembly
2020 Session
FISCAL AND POLICY NOTE
Third Reader - Revised
Senate Bill 69 (Senator Hayes)
Education, Health, and Environmental Affairs Economic Matters
Baltimore City – Alcoholic Beverages – Class A, A–2, and A–7 Licenses –
Surveillance System
This bill (1) extends the date after which the Baltimore City Board of License
Commissioners may no longer issue a Class A-7 license from July 1, 2020, to
June 30, 2022, and makes a conforming change; (2) prohibits a Class A-7 license from
being issued in the 43rd legislative district; (3) alters the hours of sale for a Class A-7
license to be from 10 a.m. to midnight; and (4) requires the holder of Class A beer, wine,
and liquor (BWL) license, a Class A-2 BWL license, or Class A-7 BWL license to operate
a digital surveillance system on the licensed premises. In consultation with the Baltimore
Police Department (BPD), the board must adopt regulations relating to digital surveillance
on or before December 31, 2020. The bill takes effect July 1, 2020.
Fiscal Summary
State Effect: None.
Local Effect: Baltimore City revenues increase minimally beginning in FY 2021 to the
extent the board issues additional Class A-7 licenses as a result of the bill, as discussed
below. Baltimore City can handle implementation and enforcement with existing
resources.
Small Business Effect: Minimal. Specified license holders in Baltimore City may incur
limited costs to comply with the bill’s digital surveillance requirements.
 Analysis
Bill Summary: The digital surveillance system required under the bill must be equipped
with high-definition cameras that provide continuous, 24-hour video monitoring placed
inside and outside the licensed establishment. The cameras must be placed in such a way
that the exterior and interior of each entryway and the cash register or till is monitored.
Video recorded from the surveillance system must be retained for at least 14 days. A license
holder must post appropriate signage notifying individuals on the premises that they are
being recorded.
Regulations adopted by the board under the bill must include specified requirements and
other details. Among other things, the regulations must require that BPD may request
video footage only in connection with a criminal investigation and that video footage
obtained in violation of the requirement is inadmissible in a criminal proceeding. In
addition, the regulations must include details on how and when the board will verify that
an acceptable video surveillance system has been installed, and related penalties, and
provide for the issuance of temporary waivers to license holders who purchased and
installed noncompliant surveillance systems before October 1, 2020.
Beginning January 1, 2021, the holder of a Class A BWL license, a Class A-2 BWL license,
or a Class A-7 BWL license applying for a license renewal must file with the renewal
application an affidavit verifying compliance with the bill’s digital surveillance
requirements; a renewal application for a specified license is not complete unless it includes
the required affidavit.
Current Law:
Class A-7 License
Chapter 537 of 2018 authorized the board to issue a Class A-7 beer, wine, and liquor
license. The license authorizes the holder to sell, for off-premises consumption, beer, wine,
and liquor at retail at the place described in the license on Monday through Sunday from
9 a.m. to 10 p.m. The annual license fee is $1,500. A license holder who holds a valid
Class B-D-7 license issued on or before July 1, 2018, may apply to the board to exchange
the license for a Class A-7 license if the license holder first obtains approval by resolution
of the Baltimore City Council. The board generally may not issue a Class A-7 license after
July 1, 2020.
In addition, Chapter 537 specified that in the 46th legislative district, a Class B-D-7 license
may be exchanged for a Class A-7 license only if the Class B-D-7 license was issued for
an establishment operating in a planned use development. Chapters 676 and 677 of 2019
repealed this requirement and authorized, in the 46th legislative district, the transferee of a
SB 69/ Page 2
Class B-D-7 license that is transferred from the 3600 block of Fleet Street to the 5600 block
of Eastern Avenue to apply, by July 1, 2021, to the board to exchange the license for a
Class A-7 license for use at the Eastern Avenue location.
Class A BWL License
A Class A BWL license authorizes the holder to sell beer, wine, and liquor at retail at the
place described in the license. The license holder must deliver the beer, wine, or liquor in
a sealed package or container that may not be opened or its contents consumed on the
licensed premises. The annual license fee is $858. Generally, the days and hours of sale are
Monday through Saturday from 6:00 a.m. to midnight. In the area specified in the Park
Heights Master Plan adopted by the city in 2006, the hours of sale are from 9:00 a.m. to
10:00 p.m.
Class A-2 BWL (Package Goods) License
A Class A-2 BWL license authorizes the holder to sell beer, wine, and liquor at retail at the
place described in the license. The license holder must deliver the beer, wine, or liquor in
a sealed package or container that may not be opened or its contents consumed on the
licensed premises. A Class B-D-7 BWL license may not be reissued as a Class A-2 license,
and a Class A-2 license may not be converted to or substituted for any other class of license.
The annual license fee is $858. The hours and days of sale are Monday through Saturday
from 9:00 a.m. to midnight.
Adoption of Regulations
Before the board may adopt a regulation, (1) the board must provide a period of at least
30 days for public comment and (2) the City Solicitor must review the regulation to ensure
that the regulation complies with the statutory authority granted to the board by the State.
The board must publish adopted regulations online and distribute them to license holders
whom the regulations affect.
Background: According to the Comptroller’s Office, in fiscal 2019, there were
1,208 alcoholic beverages licenses issued in Baltimore City, including 207 Class A BWL
licenses. Baltimore City advises that, as of December 2019, there were 398 active
Class B-D-7 licenses in the city.
In February 2020, the city advised that it had not received an application to exchange a
Class B-D-7 license for a Class A-7 license since Chapter 537 took effect in 2018, but that
it anticipated two possible applications in 2020.
SB 69/ Page 3
Local Fiscal Effect: For each Class B-D-7 license exchanged for a Class A-7 license after
July 1, 2020, as a result of the bill, Baltimore City revenues increase by $780 at the time
of application and $180 annually thereafter. This estimate reflects a $600 application fee
and the difference between the annual license fees for the Class A-7 and Class B-D-7
licenses ($1,500 and $1,320, respectively). While the number of license holders who will
seek to exchange a Class B-D-7 license for a Class A-7 license after July 1, 2020, under
the bill is unknown, it is likely to be minimal.
Additional Information
Prior Introductions: None.
Designated Cross File: HB 1293 (Delegate Wells, et al.) - Economic Matters.
Information Source(s): Comptroller’s Office; Baltimore City; Department of Legislative
Services
Fiscal Note History: First Reader - January 9, 2020
rh/tso Third Reader - March 16, 2020
Revised - Amendment(s) - March 16, 2020
Revised - Clarification - March 16, 2020
Analysis by: Elizabeth J. Allison Direct Inquiries to:
(410) 946-5510
(301) 970-5510
SB 69/ Page 4


Statutes affected:
Text - First - Baltimore City - Alcoholic Beverages - Class A-7 Licenses - Surveillance System: 12-102 Alcoholic Beverages, 12-902.1 Alcoholic Beverages, 2-020 Alcoholic Beverages
Text - Third - Baltimore City – Alcoholic Beverages – Class A, A–2, and A–7 Licenses – Surveillance System: 12-102 Alcoholic Beverages, 12-902.1 Alcoholic Beverages, 2-022 Alcoholic Beverages, 2-020 Alcoholic Beverages, 12-1407 Alcoholic Beverages, 12-1804.2 Alcoholic Beverages, 12-1804.2 Alcoholic Beverages