SB 426
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
Third Reader - Revised
Senate Bill 426 (Senator Ferguson)
Education, Health, and Environmental Affairs Economic Matters
Baltimore City - 46th District - Alcoholic Beverages Licenses
This bill authorizes a holder of a Class 9 limited distillery license who also holds a Class D
(6-day) beer, wine, and liquor (BWL) license and is located on the 4200 block of East Pratt
Street to apply to the Baltimore City Board of License Commissioners to convert the
existing Class D (6-day) BWL license into a Class D (7-day) BWL license. The bill also
authorizes the board to issue (1) a Class D beer and light wine license for an establishment
in ward 26, precinct 8 on the west side of the 1200 block of South Haven Street that has
executed a memorandum of understanding (MOU) with Brewer’s Hill Neighbors, Inc., and
(2) a Class B BWL license for a restaurant in Unit G of 3700 Toone Street in ward 26,
precinct 8, as specified. The bill makes permanent provisions established by Chapters 676
and 677 of 2019 pertaining to interactions between a specified Class 1 distillery and retail
dealer in Port Covington. In addition, the bill repeals specified authorizations to issue or
transfer a license within 300 feet of a place of worship or school in the area bounded by
Fagley Street, Gough Street, Grundy Street, and Chestle Place and makes conforming
changes. The bill takes effect July 1, 2021.
Fiscal Summary
State Effect: None.
Local Effect: Baltimore City revenues increase from the issuance of an additional Class D
beer and light wine license and an additional Class B BWL license specified in the bill, as
well as from application fees. Baltimore City expenditures are not affected.
Small Business Effect: Minimal.
 Analysis
Bill Summary:
Class B BWL License
The board is authorized to issue a Class B BWL license for a restaurant in Unit G of
3700 Toone Street in ward 26, precinct 8, if the restaurant has (1) seating for at least
75 individuals; (2) a minimum capital investment of $700,000; (3) average daily receipts
for the sale of food that are at least 65% of the total daily receipts of the restaurant; and
(4) executed an MOU with Brewer’s Hill Neighbors, Inc.
Current Law:
Class B BWL Licenses
In Baltimore City, a holder of a Class B BWL license may generally sell alcoholic
beverages from 6 a.m. to 2 a.m. the following day, seven days a week. The annual license
fee for a Class B BWL license is $1,320 for a premises with a seating capacity of not more
than 200 individuals, and $1,800 for a premises with a seating capacity of more than
200 individuals. There is an additional annual fee of $500 if the license holder provides
live entertainment, and an annual fee of $200 if the license holder provides outdoor table
service.
Class D BWL Licenses
In Baltimore City a holder of a Class D BWL license may generally sell alcoholic
beverages on Monday through Saturday from 6 a.m. to 1 a.m. the following day, but may
not exercise the privileges of the license (without an amusement permit) from 1 a.m. on
Sunday to 6 a.m. the following day. In the 46th alcoholic beverages district, the board may
issue a Class D BWL license to an applicant who holds or has applied for a Class 9 limited
distillery license. The annual license fee for a Class D BWL license is $825.
Class D Beer and Light Wine Licenses
In Baltimore City, a Class D beer and light wine license authorizes the holder to sell beer
and light wine, at retail, at the place described in the license, for on- and off-premises
consumption. The license may not be issued for use by a drugstore. The annual license fee
is $165.
SB 426/ Page 2
Interactions between a Class 1 Distillery and a Retail Dealer in the Port Covington Area
Interactions between a Class 1 distillery and a retail dealer located on contiguous premises
in the area commonly known as Port Covington are restricted in a manner that differs from
established statewide restrictions. Specifically, in the Port Covington area, a
Class 1 distillery may lend a thing of value, make a gift, or offer a gratuity to a retail dealer
but may not lend money to the retail dealer. A retail dealer may not become indebted to a
Class 1 distillery except for the purchase of alcoholic beverages and allied products
purchased for resale. Additionally, specified provisions of the Alcoholic Beverages Article
pertaining to wine and liquor advertisements do not apply to a Class 1 distillery and
licensed retailer in the Port Covington area.
Distance Restrictions from a Place of Worship or School
The board generally may not issue a new license or approve the transfer of an existing
license to a building within 300 feet of the nearest place of worship or school. The board
may waive the distance restrictions for an application to transfer a license into the area
bounded by Fagley Street, Gough Street, Grundy Street, and Chestle Place if (1) the
application is approved by each community association representing the area, each
business association in the area, and the ordained leader and the board or council for each
place of worship within 300 feet of the proposed establishment, and (2) an MOU is
executed by the applicant and each community association in the area. However, the board
may not issue a license in or approve the transfer of a license into the geographic area
described above if (1) the proposed location of the establishment is in an area zoned
“residential” or (2) the license to be issued or transferred is a Class A license.
Additional Information
Prior Introductions: None.
Designated Cross File: HB 572 (Delegate Clippinger) - Economic Matters.
Information Source(s): Department of Legislative Services
Fiscal Note History: First Reader - February 18, 2021
an/tso Third Reader - March 19, 2021
Revised - Amendment(s) - March 19, 2021
Analysis by: Tyler Allard Direct Inquiries to:
(410) 946-5510
(301) 970-5510
SB 426/ Page 3


Statutes affected:
Text - First - Baltimore City - 46th District - Alcoholic Beverages Licenses: 12-102 Alcoholic Beverages, 12-1406 Alcoholic Beverages, 12-1604 Alcoholic Beverages, 2-002 Alcoholic Beverages, 12-1102 Alcoholic Beverages
Text - Third - Baltimore City - 46th District - Alcoholic Beverages Licenses: 12-102 Alcoholic Beverages, 12-404 Alcoholic Beverages, 12-1406 Alcoholic Beverages, 12-1604 Alcoholic Beverages, 2-002 Alcoholic Beverages, 12-1102 Alcoholic Beverages, 12-1605 Alcoholic Beverages