Bill Summary – FastDemocracy

SB 677
                      Department of Legislative Services
                              Maryland General Assembly
                                    2021 Session
                           FISCAL AND POLICY NOTE
                              Third Reader - Revised
Senate Bill 677               (Senator Edwards)
Education, Health, and Environmental Affairs                            Economic Matters
     Allegany County - Alcoholic Beverages - Class B-D Beer, Wine, and Liquor
                                     License
This bill establishes a Class B-D beer, wine, and liquor (BWL) license in Allegany County
that authorizes the holder to sell beer, wine, and liquor for on-premises consumption, as
specified. The Allegany County Board of License Commissioners is authorized to issue up
to two such licenses in a single year. The bill also requires a license holder to complete a
Food Alcohol Ratio Report once every licensing cycle, as specified. The bill takes effect
July 1, 2021.
                                    Fiscal Summary
State Effect: None.
Local Effect: Allegany County revenues increase to the extent that up to two Class B-D
BWL licenses are issued each year; the annual license fee is $700, with additional fees for
Sunday sales. Revenues may also increase in connection with fines imposed for Food
Alcohol Ratio Report violations. It is anticipated that Allegany County can handle any
enforcement activity with existing resources.
Small Business Effect: Minimal overall, but potential meaningful impact for small
businesses that obtain Class B-D BWL licenses.
                                         Analysis
Bill Summary: The board may issue a Class B-D BWL license for use by a restaurant that
(1) is located in a permanent building with ample space and accommodations;
(2) commonly offers hot and cold meals that are prepared, sold, and served to the public
during regular business hours; (3) maintains a menu that advertises a variety of food that
the establishment serves; (4) serves food at all times whenever alcoholic beverages are
being served or consumed; and (5) has, on an annual basis, gross sales of food and
nonalcoholic beverages that exceed its gross sales of alcoholic beverages. The annual
license fee is $700.
As a prerequisite for the renewal of the license, the license holder must demonstrate
compliance with the annual gross sales requirement described above.
Hours and Days of Sale
A Class B-D BWL license holder may generally sell beer, wine, and liquor on
Monday through Saturday, for on-premises consumption, from 7:00 a.m. to 2:00 a.m. the
following day. Sunday sales are permitted from 11:00 a.m. to 2:00 a.m. the following day
(1) if the holder pays an additional fee of $250, or (2) in accordance with a two-day
Sunday sales permit, which authorizes sales on not more than two Sundays in a year, as
specified. The fee for a two-day Sunday sales permit is $50 for each time the permit is
used.
Food Alcohol Ratio Report
Once every licensing cycle, a Class B-D BWL license holder must comply with a request
from the board to submit a signed and notarized Food Alcohol Ratio Report covering
two preceding quarters that the board selects to demonstrate compliance with the bill’s
annual gross sales requirement. When submitting a report, the license holder must include
a current menu, information on hours of operation, and sales amounts and percentages for
food, nonalcoholic beverages, and alcoholic beverages for the time period requested. To
enforce these requirements, the board may (1) request a license holder to provide
supporting data or additional information; (2) impose a fine on a license holder; or
(3) suspend a license.
                               Additional Information
Prior Introductions: None.
Designated Cross File: HB 883 (Allegany County Delegation) - Economic Matters.
Information Source(s): Allegany County; Department of Legislative Services
SB 677/ Page 2
Fiscal Note History:   First Reader - February 17, 2021
rh/tso                 Third Reader - April 10, 2021
                              Revised - Amendment(s) - April 10, 2021
Analysis by: Tyler Allard                         Direct Inquiries to:
                                                  (410) 946-5510
                                                  (301) 970-5510
SB 677/ Page 3
Statutes affected: 
Text - First - Allegany County - Alcoholic Beverages - Transfer and Auction of Licenses: 9-101 Alcoholic Beverages, 1-101 Alcoholic Beverages, 9-102 Alcoholic Beverages, 91-602 Alcoholic Beverages
Text - Third - Allegany County - Alcoholic Beverages - Class B-D Beer, Wine, and Liquor License: 9-101 Alcoholic Beverages, 1-101 Alcoholic Beverages, 9-102 Alcoholic Beverages, 91-602 Alcoholic Beverages, 9-902.1 Alcoholic Beverages, 91-607 Alcoholic Beverages, 9-2004 Alcoholic Beverages