HB 145
Department of Legislative Services
Maryland General Assembly
2020 Session
FISCAL AND POLICY NOTE
Third Reader
House Bill 145 (Frederick County Delegation)
Economic Matters Education, Health, and Environmental Affairs
Frederick County - Alcoholic Beverages - Repeal of Quota for Class B Licenses
This bill repeals the quota on the number of Class B (on-sale) beer and Class B (on-sale)
beer and wine licenses the Frederick County Board of License Commissioners may issue
in an election district. The bill takes effect July 1, 2020.
Fiscal Summary
State Effect: None.
Local Effect: Local revenues may be affected as discussed below. Frederick County can
monitor additional licenses with existing resources.
Small Business Effect: Minimal overall, but potential meaningful for a small business in
Frederick County that obtains a Class B license under the bill.
Analysis
Current Law: The Frederick County Board of License Commissioners may not issue more
than one license in each of the following classes, per every 4,000 individuals or major
fraction in an election district, based on the most recent federal census:
 Class A (off-sale) beer license;
 Class B (on-sale) beer license;
 Class A (off-sale) beer and wine license;
 Class B (on-sale) beer and wine license; and
 Class A (off-sale) beer, wine, and liquor license.
The Class B (on-sale) beer license authorizes the license holder to sell beer at a hotel or
restaurant for on-premises consumption. The annual license fee is $130. The
Class B (on-sale) beer and wine license authorizes the license holder to sell beer and wine
at a hotel or restaurant for on-premises consumption. The annual license fee is $160.
Class B Beer, Wine, and Liquor License
The Class B beer, wine, and liquor license is not subject to the same licensing quota as
discussed above. The license authorizes a hotel or restaurant to sell beer, wine, and liquor
for consumption where meals are prepared and served. The license authorizes a restaurant
to sell alcoholic beverages for off-premises consumption, under specified conditions. The
annual license fee is $1,500 for a restaurant and $2,000 for a hotel.
Background: In fiscal 2019, there were 336 alcoholic beverage licenses issued in
Frederick County, 189 of which were Class B licenses. There were 6 Class B beer licensees,
32 Class B beer and wine licenses, and 151 Class B beer, wine, and liquor licenses issued
in the county. Frederick County advises that, under the bill, some license holders may apply
for a different type of Class B license than they currently hold.
Local Effect: For illustrative purposes only, a restaurant that currently holds a
Class B beer, wine, and liquor license may wish to obtain a Class B (on-sale) beer and wine
license instead. This change could result in a reduction of $1,340 in local revenues.
Similarly, Frederick County revenues may increase if more licenses are issued under the
bill. Each additional Class B (on-sale) beer license will increase revenues by $130, and
each additional Class B (on-sale) beer and wine license will increase revenues by $160. It
is unclear how this bill will affect the number of Class B licenses issued in
Frederick County.
Additional Information
Prior Introductions: None.
Designated Cross File: SB 215 (Senators Young and Hough) - Education, Health, and
Environmental Affairs.
Information Source(s): Frederick County; Department of Legislative Services
Fiscal Note History: First Reader - February 3, 2020
an/tso Third Reader - March 5, 2020
Analysis by: Amberly Holcomb Direct Inquiries to:
(410) 946-5510
HB 145/ Page 2
 (301) 970-5510
HB 145/ Page 3


Statutes affected:
Text - First - Frederick County - Alcoholic Beverages - Repeal of Quota for Class B Licenses: 20-102 Alcoholic Beverages, 20-1601 Alcoholic Beverages
Text - Third - Frederick County - Alcoholic Beverages - Repeal of Quota for Class B Licenses: 20-102 Alcoholic Beverages, 20-1601 Alcoholic Beverages