In 2011, the Maryland General Assembly passed and the Governor signed the following statewide and local bills related to motor-fuel, motor carrier, alcohol, and tobacco tax regulation and enforcement, and state business licenses:
ALCOHOLIC BEVERAGES
STATEWIDE:
1. Chapter 204 - Senate Bill 248 – Chapter 205 - House Bill 1175 –
Alcoholic Beverages - Direct Wine Shipment
(1) These identical bills (hereinafter referred to as “bill”) created a Direct Wine Shipper’s Permit to be issued by the Comptroller to Maryland to in-state and out-of-state wine manufacturers authorizing the sale of wine manufactured by the permittee to a Maryland consumer when ordered through electronic or other means. The wine shipped and delivered by the Direct Wine Shipper Permittee must be through a common carrier who holds a permit issued by the Comptroller. The definition of wine includes pomace brandy.
The Direct Wine Shipper’s Permit is an annual permit expiring on July 1 of each year. There is no application fee. A $200 permit fee is imposed annually. A Direct Wine Shipper Permittee may not ship more than 18 9-liter cases of wine each year to a single delivery address, or cause wine to be shipped on Sunday to an address in Maryland.
Quarterly tax returns to pay the alcoholic beverage tax are required to be filed with the Comptroller as well as quarterly sales and use tax returns. The Direct Wine Shipper Permittee must ensure that containers of wine have a label stating the name of the direct wine shipper, name and address of the consumer, and the words: “Contains Alcohol: Signature of Person at least 21 Years of Age Required For Delivery.” Records must be maintained for 3 years, which are subject to audit by the Comptroller.
An out-of-state wine manufacturer must obtain a $1,000 bond, which may be waived after 3 years if there has been substantial tax and reporting compliance. No additional bond is required for Maryland wine manufacturers, or out-of-state wine manufacturers who currently have a bond with the Comptroller; however, adjustments may be made to the amount of the Direct Wine Shipper’s Bond based upon review of tax returns and alcoholic beverage tax payments.
The bill provides that direct wine shipments may be made to consumers in Montgomery County, and that the prohibition of multiple licenses in Article 2B, § 9-102(a) does not apply to the Direct Wine Shipper’s Permit. The Direct Wine Seller’s Permit is repealed and replaced in Article 2B, § 7.5 by the Direct Wine Shipper’s Permit.
(2) This bill also creates a Common Carrier Permit for direct wine shipment authorizing an in-state or out-of-state holder to deliver wine directly to a Maryland consumer. To qualify for the permit, the common carrier must transport in interstate or foreign commerce for compensation any class of passenger or property, and does not include a business entity that transports property it owns or that is consigned to it. The Common Carrier Permit is an annual permit expiring on July 1 of each year. There is no application fee. A $100 permit fee is imposed annually.
The Common Carrier Permittee is required to obtain the signature of the consumer or another individual who is at least 21 years old verified by a government-issued photographic identification. Information about age verification training must be submitted to the Comptroller at time of application, and the Common Carrier Permittee shall verify annually that wine shippers had a valid Maryland Direct Wine Shipper’s Permit at time of shipment and delivery.
Quarterly reports must be filed with the Comptroller stating the date of each delivery of wine in Maryland, and the name and address of the direct wine shipper and consumer of each delivery. Records must be maintained for 3 years.
The Comptroller is required to study the effects of implementation of the Direct Wine Shipper’s Permit, and submit a report to the General Assembly by December 31, 2012 about the number of direct wine shipper’s permits and common carrier permits issued; the volume of wine shipped to Maryland consumers; the revenue and costs to the State related to direct wine shipment; and the availability of certain imported varieties of wine to Maryland consumers. EFFECTIVE JULY 1, 2011
2. Chapter 238 - Senate Bill 496 – Chapter 239 - House Bill 1202 –
Alcoholic Beverages – Brewery License – Samples and Sales
This bill increases the amount and number of samples a brewery with a Class 5 manufacturer license may serve to a person who participates in a guided tour of the brewery or attends a scheduled promotional event or other organized activity on the licensed premises. Under the prior provision, the brewery could serve up to 6 ounces for a sample of beer. This bill authorizes the brewery to serve up to 6 samples of beer brewed at the licensed premises with each sample consisting of no more than 3 ounces from a single beer brand.
Also, the amount of beer allowed to be sold by the brewery to a participant in a guided tour for off-premises consumption is increased from 144 ounces of beer per person per calendar year to 288 ounces of beer per person without the limitation of a calendar year. In addition to a guided tour, the off-premises sales provision is expanded to a person who attends a scheduled promotional event or other organized activity.
Finally, the amount of samples authorized to be provided at a special brewery promotional event is increased from 2 to 3 fluid ounces per brand, and the number of special brewery promotional event permits issued in a calendar year is increased from 4 to 12. EFFECTIVE JULY 1, 2011
3. Chapter 571- Senate Bill 994 – Chapter 572 - House Bill 1213 –
Sales and Use Tax – Alcoholic Beverages – Supplementary Appropriation
The sales and use tax rate is increased from 6% to 9% of the taxable price of the alcoholic beverage. This is not a change in the alcoholic beverage tax rate, but an increase in the sales and use tax rate that is imposed on retail sales of alcoholic beverages. EFFECTIVE JULY 1, 2011
LOCAL:
1. Chapter 6 - Senate Bill 9 – Harford County - Alcoholic Beverages – Special
Class C-3 Miscellaneous Organization or Club License
This bill establishes a special Class C-3 (on-sale) beer, wine and liquor license in Harford County to a miscellaneous organization or club that holds a Class C-3 organization or club license. Miscellaneous organization or club means a country club, a yacht or boat club, or topiary garden as defined in Article 2B, § 6-301(n)(6). The special Class C-3 license authorizes the holder to sell or provide beer, wine, and liquor only for on-premises consumption by nonmembers of the organization or club who have leased an area of the licensed premises for a bona fide entertainment, conference, or social event; and guests who attend the event.
The Board may issue only 1 license to a single miscellaneous organization or club in any license year. Up to 60 events per year is allowed under the license. The license fees range from $250 for 10 events per year to $850 for 60 events per year.
EMERGENCY LEGISLATION EFFECTIVE APRIL 12, 2011
2. Chapter 62 – Senate Bill 391 – Washington County – Alcoholic Beverages
– Wine Festival License
This bill establishes a special wine festival (WF) license in Washington County to be issued to an existing retail alcoholic beverages licensee, Class 3 winery licensee, or Class 4 limited winery licensee. The holder of the special WF license may display and sell at retail wine for consumption on or off the premises on the days and for the hours designated for the Washington County Wine Festival. The license fee is $20. The Board may choose 2 weekends annually for the festivals. EFFECTIVE JULY 1, 2011
3. Chapter 92 – Senate Bill 926 – Harford County – Alcoholic Beverages
– Continuing Care Facility for Aged – Beer, Wine and Liquor License
This bill establishes a Class CCFA (continuing care facility for the aged) beer, wine and liquor license in Harford County authorizing the holder to sell beer, wine and liquor on the licensed premises for consumption only on the licensed premises and under certain hours of sale. The annual license fee is $500. EFFECTIVE JULY 1, 2011
4. Chapter 121 - House Bill 376 – Allegany County – Alcoholic Beverages – Eligibility for Class B-BT (Buffet Theater) License
This bill alter the types of entertainment that an establishment may provide its customers to be eligible for a Class B-BT (Buffet Theater) beer, light wine, and liquor license to include live acoustic-style music and feature films. EFFECTIVE JUNE 1, 2011
5. Chapter 151 – House Bill 1030 – Cecil County – Alcoholic Beverages –
Licensed Establishments - Sunday Sales Hours
This bill alters the hours during which a Class B, Class BLX, Class C, Class D, and Class EF in Cecil County may sell alcoholic beverages. EFFECTIVE OCTOBER 1, 2011
6. Chapter 263 – Senate Bill 613 – Board of Liquor License Commissioners for
Baltimore City – Ethics, Staff Compensation, Open Meetings, and
Performance Audits
This bill expands the prohibition of financial interest by a commissioner or employee of the Board of Liquor License Commissioners for Baltimore City to include any premises, business, and stock where alcoholic beverages are “distributed.” It also states that a Board commissioner or employee may not receive any salary or other compensation or thing of value from a business engaged in the manufacture, distribution, or sale of alcoholic beverages.
Acts of board commissioners or employees are subject to state requirements for open and public meetings, including requirements for open sessions. Also, at least once every 3 years, the Office of Legislative Audits shall conduct a performance audit of the Board for Baltimore City. Relevant provisions of the State Government Article are amended to include the Board in the auditing process, and to specify what person are to receive the legislative audit report. EFFECTIVE OCTOBER 1, 2011
7. Chapter 294– Senate Bill 821 – Frederick County – Winery Special Event
Permits – Farmers’ Markets
In addition to the 12 winery special event permits that may be issued to a Class 4 limited winery, this bill authorizes the Comptroller to issue up to 12 winery special event permits to a Class 4 limited winery for use at a Farmer’s Market in Frederick County. The permittee may not sell wine by the glass, and alcohol awareness certification is required for the permittee and the Farmer’s Market administrator. EFFECTIVE JUNE 1, 2011
8. Chapter 296 - Senate Bill 836 – Baltimore City – 45TH District – Alcoholic
Beverages – Licenses
This bill authorizes the Board of Liquor License Commissioners for Baltimore City to issue a Class C beer, wine and liquor license in the 45th alcoholic beverages district. It also allows a Class A retail licensee to exercise the off-sale privilege on two additional Sundays during the calendar year; and increases from 2 to 4 times the number of supplemental licenses the Board may issue to a Class D licensee in a calendar year for Sunday sales. EFFECTIVE JULY 1, 2011
9. Chapter 302 - Senate Bill 875 – Alcoholic Beverages – Baltimore County –
License Fees
This bill increases license fees for various retail alcoholic beverages licenses issued by the Board of License Commissioners for Baltimore County. EFFECTIVE OCTOBER 1, 2011
10. Chapter 304 - Senate Bill 906 – Worcester County – Department of Liquor
Control – Wine and Liquor Purchasing Option
This bill abolishes the Liquor Control Board for Worcester County and replaces it with the Worcester County Department of Liquor Control (“Department”), which is part of the county government, and has all the powers provided to the Liquor Control Board. The Board of License Commissioners will appoint the Director of the Department who serves at the Board’s pleasure.
The minimum price of 10% above cost that the Board may charge licensees for merchandise purchased from wholesalers is repealed. The ceiling price remains unchanged: all licensees are required to purchase all wines and liquors, except light wine and beer, from the Department, but may not be charged more than 85% of the retail price or any special sale or discount price, whichever is lower, set by the Department for wines and liquors.
Beginning May 1, 2016, a licensee may elect to purchase wine and liquor from a licensed wholesaler by providing written notice of the licensee’s intent to the Department at least 60 days before the date the purchasing activity is to start. The Department shall issue a confirmation letter to be displayed on the licensed premises. Exercising this purchasing option for wholesalers still allows the licensee to purchase wine and liquor from the Department. EFFECTIVE JULY 1, 2011
11. Chapter 313– Senate Bill 997 – Baltimore County – Alcoholic Beverages –
Expiration of Licenses – Extension for Casualty Loss
This bill authorizes the Board of License Commissioners for Baltimore County, without Circuit Court approval, to extend an alcoholic beverages license for up to 2 years if a licensed premise is forced to close because of a casualty loss. EMERGENCY LEGISLATION - EFFECTIVE MAY 10, 2011
12. Chapter 325 – House Bill 245 – Howard County – Alcoholic Beverages – Beer, Wine and Liquor Tasting License
This bill creates in Howard County a beer, wine and liquor tasting (BWLT) license to be issued to a holder of a Class A beer, wine and liquor (BWL) license. A BWLT licenses authorizes on-premises consumption for tasting and sampling only of beer, wine not containing more than 15.5% of alcohol by volume, or liquor. Limitations on the amount of tasting and sampling apply. The annual license fee is $100. The bill also increases the maximum alcohol content from 14% to 15.5% for wine under the beer and wine tasting (BWT) license. EFFECTIVE JUNE 1, 2011
13. Chapter 329 - House Bill 279 – Carroll County – Alcoholic Beverages –
Liquor Tasting
This bill creates a liquor tasting license in Carroll County to be issued to holders of a Class A beer, wine and liquor license. The liquor tasting license authorizes the consumption of liquor authorized to be sold by the Class A for tasting and sampling purposes only. There may be no charge for the tasting and sampling, which are subject to quantity limits. The annual license fee is $100, and the license is valid for no more than 52 days a year to be used consecutively or nonconsecutively.
EFFECTIVE JULY 1, 2011
14. Chapter 331 - House Bill 326 – Baltimore County – Winery Special Event
Permits – Farmers’ Markets
In addition to the 12 winery special event permits that may be issued in a calendar year to a Class 4 limited winery, this bill authorizes the Comptroller to issue up to 12 more winery special event permits to a Class 4 limited winery for use at a Farmers’ Market in Baltimore County, provided only 6 winery special event permits may be issued at the same Farmers’ Market in Baltimore County annually. Wine may not be sold by the glass at a Farmers’ Market. EFFECTIVE JUNE 1, 2011
15. Chapter 336 - House Bill 404 – Washington County – Alcoholic Beverages –
Micro-Breweries
This bill adds Washington County to the list of counties in which a Class 7 micro-brewery license may be issued; and, in addition to the Class B licensee, the bill allows a Class D licensee in Washington County to be eligible for the license. Also, the bill prohibits the Comptroller from issuing a Class 7 micro-brewery license for a premises on property that has been leased unless the landlord of the property presents to the Comptroller a certificate showing that there are no unpaid taxes due to the State, county, or local government from the landlord or any entity the landlord has an indirect or direct interest that is proprietary or has been obtained by loan, mortgage, lien, or other manner. EFFECTIVE JULY 1, 2011
16. Chapter 345 – House Bill 535 – Montgomery County – Town of Kensington – Off-Sale Beer and Light Wine Licenses
This bill authorizes the Montgomery County Board of License Commissioners to issue up to 3 Class A (off-sale) beer and light wine licenses for use in specified commercial areas in the Town of Kensington. The Class A beer and light wine license authorizes the holder to keep for sale and sell beer or light wine for off-premise consumption 7 days a week from 10 a.m. to 8 p.m. A Class A licensee may not sell single bottles or cans of beer, sell refrigerated products, or place a sign or other display advertising alcoholic beverages in a publicly visible location. The annual license fee is $250. EFFECTIVE JULY 1, 2011
17. Chapter 346 – House Bill 542 – Montgomery County – Alcoholic Beverages
– Beer and Wine Sampling or Tasting License
This bill creates a beer and wine sampling or tasting (BWST) license for the City of Takoma Park in Montgomery County to be issued to a Class A licensee for tastings and samplings only on the licensed premises. A Class A wine licensee may use a BWST license for wine tastings or samplings only. Quantity limitations apply to the tastings and samplings. This BWST license may be issued without a public hearing. The annual license fee is $200. EFFECTIVE JULY 1, 2011
18. Chapter 347 – House Bill 543 - Montgomery County – Alcoholic Beverages –
Special Culinary School Licenses
This bill creates a special culinary school license to be issued by the Board of License Commissioners by unanimous vote for use on the premises of a private culinary educational institution which meets certain requirements. The licensee is authorized to allow consumption on the licensed premises of wine by individuals age 21 or older as part of a wine tasting course; and allow consumption of beer and wine by individuals 21 or older as part of a culinary or confectionary course. Hours of restriction apply, and the licensee must provide food during the hours alcoholic beverages are served. Up to 3 licenses may be issued to a single culinary school for separate locations. The annual license fee is $400. EFFECTIVE JUNE 1, 2011
19. Chapter 348 – House Bill 545 - Montgomery County – Alcohol Sales –
Burtonsville Town Square and Hillandale Shopping Center
This bill authorizes the Board of License Commissioners for Montgomery County by unanimous vote to approve applications for alcoholic beverages licenses for restaurants located in Burtonsville Town Square and Hillandale Shopping Center. The retail license issued to the restaurant is for on-premise consumption. EFFECTIVE JUNE 1, 2011
20. Chapter 368 - House Bill 953 – Allegany County – Alcoholic Beverages – 1-Day Special License
This bill authorizes the Allegany County Board of License Commissioners to issue a 1-day special retail license of any class for a bona fide entertainment event. The license is for up to 5 consecutive days, and may be exercised only on county-owned property. The license fee will be determined by the Board of County Commissioners on the recommendation of the Board of License Commissioners, and distributed as follows: (1) $100 to the Board of License Commissioners; and (2) the balance to a nonprofit § 501(c)(3) or (4) charitable organization. The licensee with the approval of the County Commissioners will designate the charitable organization.
EMERGENCY LEGISLATION - EFFECTIVE MAY 10, 2011
21. Chapter 370 - House Bill 973 – Dorchester County Liquor Act of 2011
This bill repeals the provision in Article 2B, § 10-104(k) for Dorchester County that required a voter who signed a certificate supporting an application for a retail alcoholic beverages license to have resided in the county for 1 year prior to the date of the application. The general rule in Article 2B, § 10-103(b)(18)(i) will apply, which does not have a residency requirement. The bill exempts Dorchester County from the prohibition of Sunday sales at a bar or counter by a Class B or C licensee in Article 2B, § 11-403(a); and from the prohibition of a retailer selling, delivering, giving, or otherwise disposing of alcoholic beverages on Sunday. EFFECTIVE OCTOBER 1, 2011
22. Chapter 372 - House Bill 996 – St. Mary’s County – Alcoholic Beverages –
Beer Festival License
This bill authorizes the Alcoholic Beverage Board of St. Mary’s County to issue a special beer festival (BF) license. The applicant must have a retailer license authorizing the sale of beer, a Class 5 brewery license, a Class 6 pub-brewery licenses, or a Class 7 micro-brewery license. The BF licensee may sell beer sold at retail for days and hours designated for the festival for on and off premises consumption. The Alcoholic Beverage Board will approve one weekend annually for the beer festival to be located in St. Mary’s City not in conflict with the Sotterley Wine Festival. The license fee is $15. EFFECTIVE OCTOBER 1, 2011
23. Chapter 375 - House Bill 1095 – Prince George’s County – Alcoholic
Beverages – Development District Licenses
This bill increases the number of Class B-DD (Development District) licenses from 4 to 6 that the Board of License Commissioners may issue for restaurants located in the area of Ritchie Station Marketplace. For each Class B-DD license, a person may obtain one other Class B license for any location in Prince George’s County. EFFECTIVE OCTOBER 1, 2011
24. Chapter 384 – House Bill 1218 – Frederick County – Beer, Wine and Liquor
Tasting License
This bill creates a beer, wine and liquor (BWLT) license to be issued in Frederick County to a Class A beer, wine and liquor licensee. The BWLT license authorizes the consumption of ½ of 1 ounce of liquor from a given brand and 1.5 ounces from all brands by any one person in a single day for tasting and sampling purposes. The limitations on the consumption for the beer and wine sampling or tasting license (BWST) in Article 2B, § 8-406 apply to the BWLT license. The Board of License Commissioners will set the annual license fee. EFFECTIVE JULY 1, 2011
25. Chapter 388 – House Bill 1274 – Charles County – Alcoholic Beverages -
Class B-Stadium (Baseball Stadium) On-Sale Beer, Wine and Liquor
License
This bill alters the Class B-Stadium beer and light wine license to be a Class B-Stadium (Baseball Stadium) on-sale beer, wine and liquor license, and further allows a patron to consume and carry beer and wine anywhere on the stadium premises, and consume liquor only in the enclosed stadium dining area or bar without carrying it away from such area. EFFECTIVE JUNE 1, 2011
26. Chapter 390 - House Bill 1292 – Anne Arundel County – Alcoholic
Beverages – Licenses and Fees
This bill increases the annual license fees in Anne Arundel County for many and various retail licenses. It creates a Class WT wine tasting (on-premises) license to be issued to a Class BWL licensee or Class BW licensee. The Class WT license authorizes the holder to permit on-premises consumption for tasting and sampling purposes only of light wine of not more than 1 ounce from each given brand to any one person.
Also, currently the Board of License Commissioners may impose a $200 fee for issuance of a new license. The bill expands the imposition this administrative fee to any administrative action that requires a hearing, including the transfer of a license, or change of ownership of a majority interest in a license. The Board is also empowered to determine the fee for a duplicate license.
A special entertainment license is created for a Class B, Class D, or Class H license to allow playing of more than one television, live music with not more than four musicians, karaoke, and a disc jockey. The general rule in Article 2B, § 12-202(a), amended by this bill, is that except for piped-in background music or one television screen, a retailer may not permit live music, a karaoke machine, or a disc jockey. The license fee for a special entertainment license is $300 for a retailer with a beer, wine and liquor license, and $200 for a retailer with a beer and wine license. The licensee may not allow dancing, floor shows, or similar live entertainment. A special outdoor entertainment license may be issued to the holder of a special entertainment license. EFFECTIVE JULY 1, 2011
27. Chapter 393 - House Bill 1334 – Worcester County – Alcoholic Beverages – Micro-Brewery License
This bill allows a Class 7 micro-brewery license to be issued to a Class D beer (off-sale) licensee for use on the premises of the existing Class D license in the Town of Berlin in Worcester County. EFFECTIVE JULY 1, 2011
28. Chapter 420 - Senate Bill 102 – Caroline County – Alcoholic Beverages Act of
2011
This bill increases the number of times from 12 to 26 that a Class BWTS beer and wine (on-premises) tasting and sampling license may be issued to a person in a calendar year. It also expands the hours for sale of certain licenses, and requires that a retailer or employee complete training in an approved alcohol awareness program.
EFFECTIVE JULY 1, 2011
29. Chapter 479 – Senate Bill 466 – Carroll County – Winery Special
Event Permits – Farmers’ Markets
In addition to the 12 winery special event permits that may be issued to a Class 4 limited winery, this bill authorizes the Comptroller to issue up to 12 winery special event permits to a Class 4 limited winery for use at a Farmer’s Market in Carroll County. The permittee may not sell wine by the glass, and alcohol awareness certification is required for the permittee and the Farmer’s Market administrator. EFFECTIVE JUNE 1, 2011
30. Chapter 563 – Senate Bill 917 – Wicomico County – Alcoholic
Beverages Licenses – Pub-Breweries and Micro-Breweries
This bill increases the number of Class B beer, wine and liquor licenses that a Class 6 pub-brewery or Class 7 micro-brewery may have from 3 to 5 in Wicomico County as an exception to the rule in Article 2B, § 12-104(b)(1) that a manufacturer may not have a financial interest in a retailer. It also permits a Class A license to hold a Class 7 micro-brewery license and not more than 5 Class B beer, wine and liquor licenses. EFFECTIVE JULY 1, 2011
31. Chapter 592 – House Bill 405 – Washington County – Alcoholic Beverages
– Criminal History Records
This bill requires the Board of License Commissioners for Washington County to apply to the Criminal Justice Information System Central Repository for a state and national criminal history records check for each applicant for a new alcoholic beverages license or for a transfer of an existing license. The Board shall submit to the central repository two complete sets of applicant’s legible fingerprints and certain fees. Other requirements about the handling and processing of the criminal history records check are specified. EFFECTIVE OCTOBER 1, 2011
32. Chapter 613 - House Bill 1119 – Prince George’s County – Alcoholic
Beverages – Entertainment Permit
This bill specifies that certain alcoholic beverages license holders in Prince George’s County need not obtain an entertainment permit, states certain requirements for the permit, and that the permittee meet all county law requirements. EFFECTIVE JULY 1, 2011
33. Chapter 624 - Senate Bill 367 – Anne Arundel County – Entertainment
Facility
This bill authorizes the Board of License Commissioners for Anne Arundel County to issue an entertainment facility license for an entertainment facility that contains one or more food service facilities, bars, or lounges that a part of the operation of the entertainment facility. Location, voting, and residency requirements do not apply to the applicant. The licensee may sell beer, wine, and liquor on any premises of the entertainment facility that is not covered by an entertainment concessionaire license for consumption anywhere in the entertainment facility. The annual license fee is $15,000.
Also, the Board is authorized to issue an entertainment concessionaire license to a concessionaire operating in conjunction with an entertainment facility. The concessionaire licensee may sell beer, wine, and liquor on the premises of the concessionaire for consumption anywhere in the entertainment facility. The annual license fee is $5,000.
Off-sale privilege is not authorized for either license. Rules related to Special Sunday licenses do not apply to these licenses, and neither license is considered a Class B or Class H license for purposes of the restrictions of number of licenses in Article 2B, §9-102(H-1). Further, the exception to the prohibition of multiple licenses in Article 2B, §9-102(h) for licenses issued to resort complexes includes licenses issued to entertainment facilities and concessionaires. EFFECTIVE JUNE 1, 2011
TOBACCO
STATEWIDE:
Chapter 22 – Senate Bill 82 – Commercial Law – Sales of Unpackaged
Cigarettes – Prohibitions and Penalties
This bill clarifies the meaning of a “loose” cigarette in the Commercial Law Article, Subtitle 5A by defining “unpackaged cigarette” as any cigarette not contained in a sealed package of 20 or more cigarettes. Also, a criminal sanction is provided for the Comptroller to charge for a retailer, vending machine operator, or wholesaler who sells, resells, distributes, dispenses, or gives away an unpackaged cigarette to any person in Maryland. It is specified that the prohibition on selling unpackaged cigarettes does not apply to an individual who produces those cigarettes for individual consumption by using a mechanical rolling machine, or a hand rolling device or procedure. EFFECTIVE JULY 1, 2011.
MOTOR FUEL
STATEWIDE:
Chapter 25 - Senate Bill 101 – Business Regulation – Motor Fuel Advertising Signs - Requirements
This bill removes the requirement that a retail service station dealer must post on a sign the lowest price for mid-grade gasoline, and also allows the dealer to post the lowest price for diesel or other motor fuel products sold on the premises. EFFECTIVE OCTOBER 1, 2011
Chapter 31 - Senate Bill 145 – Motor Fuel Tax – Personal Liability – Limited Liability Companies, and Limited Liability Partnerships
This bill allows the Comptroller to impose personal liability for motor fuel taxes, including interest and penalties, on any person who exercises direct control over fiscal management of a limited liability company or limited liability partnership. Currently, the Comptroller may impose personal liability for motor fuel taxes on corporations. EFFECTIVE OCTOBER 1, 2011
Chapter 397 - House Bill 72 – Budget Reconciliation and Financing Act of 2011
This bill provides for the distribution of motor fuel tax revenue as follows: after deductions for refunds and administrative costs, for each fiscal year beginning on or before July 1, 2015, the 2.3% of motor fuel tax revenue allocated to the Chesapeake Bay 2010 Trust Fund shall be distributed to the General Fund as follows: $5,000,000 for each fiscal year beginning on or before July 1, 2014; $4,624,687 for the fiscal year beginning July 1, 2015, and the balance to the Chesapeake Bay 2010 Trust Fund.
After the 2.3% distribution as stated above, the balance of the motor fuel tax revenue is distributed to the Gasoline and Motor Vehicle Revenue Account of the Transportation Trust Fund. EFFECTIVE JULY 1, 2011
STATE BUSINESS LICENSES
Chapter 110 – House Bill 203 – Junk Dealers and Scrap Metal Processors – State Licensing Laws – Applicability and Exemptions
This bill repeals the exemption of the following jurisdictions from issuing a junk dealer or scrap metal processor license: Baltimore City, and the following counties: Anne Arundel, Baltimore, Caroline, Carroll, Dorchester, Kent, Somerset, Washington, and Worcester. It also repeals the Calvert County junk dealer license, so that all jurisdictions in the State are required to issue a state junk dealer or scrap metal processor license. EFFECTIVE OCTOBER 1, 2011
Chapter 386 – House Bill 1242 – Baltimore County – Miscellaneous Business Licenses – Fees
This bill increases the license fees for Baltimore County for various state business licenses (construction, garage, dry cleaner, plumber, restaurant, and chain store) on par with Baltimore City. The license fees for the trader’s license are increased. The license fee for the billiard table license is repealed. EFFECTIVE OCTOBER 1, 2011
MOTOR CARRIERS – “IFTA”
No legislation passed related to the motor carrier tax, or IFTA (International Fuel Use Tax Agreement). | 
