SB 944
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
Third Reader - Revised
Senate Bill 944 (Senator Simonaire)
Education, Health, and Environmental Affairs Economic Matters
Anne Arundel County - Alcoholic Beverages Licenses - Annual Fees
This emergency bill requires the Anne Arundel County Board of License Commissioners
to reimburse each license holder in the county the entire amount of the annual license fee
for any Class B, Class C, Class D, and Class H license for the 2020-2021 licensing period
if funding is available from the balance of fees remitted to the county by the Comptroller,
as specified. If the balance of fees remitted to the county by the Comptroller is not sufficient
to reimburse each license holder in the county the entire amount of the annual license fee
for any Class B, Class C, Class D, and Class H license for the 2020-2021 licensing period,
the board is required to reimburse each license holder (1) a percentage of the annual license
fee in proportion to the total amount of the balance of fees remitted to the county by the
Comptroller and (2) for the following year, the remaining balance of the annual license fee
that was not reimbursed during the previous fiscal year or a percentage of the annual license
fee in proportion to the total amount of the balance of fees remitted to the county by the
Comptroller.
Fiscal Summary
State Effect: None.
Local Effect: Anne Arundel County expenditures increase by up to approximately
$314,000 in FY 2022 to the extent funds are available under the bill, as discussed below.
Local revenue is not affected. This bill imposes a mandate on a unit of local
government.
Small Business Effect: Minimal overall, but potentially meaningful for small business
license holders who are reimbursed license fees paid for the 2020-2021 licensing period.
 Analysis
Current Law: Chapters 659 and 660 of 2016 required the Anne Arundel County Board
of License Commissioners to remit all collected alcoholic beverages license fees to the
Comptroller’s Office, instead of to the Anne Arundel County government. The
Comptroller’s Office must use the collected fee revenue to approve and remit to the county
the amount necessary to pay the salaries and benefits of the board and its employees and
the amount necessary to pay the expenses of the board. The remaining balance must then
be remitted to Anne Arundel County at the end of each fiscal year for the general purposes
of the county.
Local Fiscal Effect: Anne Arundel County advises that before the onset of the COVID-19
pandemic, the board annually collected over $1 million in license fee revenue and operated
with a budget of approximately $750,000. Each year, fee revenue in excess of the board’s
expenses is deposited in the county’s general fund. Following the Governor’s
executive order extending certain licenses that would have otherwise expired during the
state of emergency, fiscal 2020 board license fee revenue declined to just under $350,000,
which was less than half of the board’s fiscal 2020 operating expenses. The county advises
that license fee revenue has continued to lag in fiscal 2021 due to the pandemic. The board
estimates that by the end of fiscal 2021, licensing fee revenues will be equal to operating
expenses. Thus, it is unlikely funding will be available to reimburse license fees in
fiscal 2021. To the extent fiscal 2022 funds are available to reimburse license holders under
the bill, the board estimates that county expenditures increase by up to approximately
$313,720 in fiscal 2022 to reimburse specified license holders the license fees paid during
the 2020-2021 licensing period.
Additional Information
Prior Introductions: None.
Designated Cross File: HB 1136 (Delegate Chisholm) - Economic Matters.
Information Source(s): Anne Arundel County; Department of Legislative Services
Fiscal Note History: First Reader - March 3, 2021
rh/tso Third Reader - March 29, 2021
Revised - Amendment(s) - March 29, 2021
SB 944/ Page 2
Analysis by: Hillary J. Cleckler Direct Inquiries to:
(410) 946-5510
(301) 970-5510
SB 944/ Page 3


Statutes affected:
Text - First - Anne Arundel County - Alcoholic Beverages Licenses - Annual Fees: 11-207 []
Text - Third - Anne Arundel County - Alcoholic Beverages Licenses - Annual Fees: 11-207 []