SB 118
Department of Legislative Services
Maryland General Assembly
2020 Session
FISCAL AND POLICY NOTE
Third Reader
Senate Bill 118 (Chair, Education, Health, and Environmental Affairs
Committee)(By Request - Departmental - Agriculture)
Education, Health, and Environmental Affairs Economic Matters
Land Use - Alcohol Production and Agricultural Alcohol Production
This departmental bill establishes statutory definitions for “alcohol production” and
“agricultural alcohol production” in the Land Use Article. Either or both definitions may
be (but are not required to be) adopted by a local jurisdiction by local ordinance, resolution,
law, or rule.
Fiscal Summary
State Effect: None.
Local Effect: None.
Small Business Effect: The Maryland Department of Agriculture (MDA) has determined
that this bill has minimal or no impact on small business (attached). The Department of
Legislative Services concurs with this assessment.
Analysis
Bill Summary: “Alcohol production” means an activity related to the manufacture,
packaging, storage, promotion, or sale of alcoholic beverages that is carried out by an
alcoholic beverages manufacturing license holder. It includes the use of an area to provide
tastings of alcoholic beverages or accommodate the license holder’s customers.
“Agricultural alcohol production” means an activity that (1) is carried out by an alcoholic
beverages manufacturing license holder; (2) occurs on agricultural land; and (3) is related
to the manufacture, packaging, storage, promotion, or sale of alcoholic beverages that use
ingredients produced on the agricultural land or any associated agricultural land. It includes
the use of an area to provide tastings of alcoholic beverages or accommodate the license
holder’s customers.
Current Law/Background: MDA advises that farmers in the State have recently needed
to diversify their businesses, and many are looking toward value-added productions such
as breweries, wineries, and distilleries. The bill, therefore, is intended to act as a reference
in State law to help local jurisdictions regulate their own agricultural alcohol producers.
MDA further advises that Carroll, Charles, and Frederick counties have already adopted
language based on the bill’s definitions while Baltimore and Washington counties are
currently working to adopt similar language.
There were 298 alcoholic beverages manufacturers licenses issued in the State in
fiscal 2019.
Additional Information
Prior Introductions: None.
Designated Cross File: None.
Information Source(s): Maryland Department of Agriculture; Maryland Department of
Planning; Maryland Association of Counties; Maryland Municipal League; Caroline,
Howard, and Prince George’s counties; City of Havre de Grace; Department of Legislative
Services
Fiscal Note History: First Reader - January 9, 2020
mr/tso Third Reader - January 24, 2020
Analysis by: Richard L. Duncan Direct Inquiries to:
(410) 946-5510
(301) 970-5510
SB 118/ Page 2
 ANALYSIS OF ECONOMIC IMPACT ON SMALL BUSINESSES
TITLE OF BILL: Land Use – Alcohol Producers and Agricultural Alcohol Producers
BILL NUMBER: SB 118
PREPARED BY: Cassie Shirk
PART A. ECONOMIC IMPACT RATING
This agency estimates that the proposed bill:
_X_ WILL HAVE MINIMAL OR NO ECONOMIC IMPACT ON MARYLAND SMALL
BUSINESS
OR
WILL HAVE MEANINGFUL ECONOMIC IMPACT ON MARYLAND SMALL
BUSINESSES
PART B. ECONOMIC IMPACT ANALYSIS
No direct, immediate impact on small business. However, the legislation is intended to benefit
farm alcohol producers if the definition is adopted by local governments.
SB 118/ Page 3


Statutes affected:
Text - First - Land Use - Alcohol Production and Agricultural Alcohol Production: 1-401 Land Use, 4-213 Land Use, 1-101 Land Use, 4-214 Land Use, 1-101 Land Use
Text - Third - Land Use - Alcohol Production and Agricultural Alcohol Production: 1-401 Land Use, 4-213 Land Use, 1-101 Land Use, 4-214 Land Use, 1-101 Land Use