When you order a pint of beer at a local taproom and take the first, crisp sip, you probably aren’t thinking about all the permits, zoning hearings, and bills that had to get approved in order for you to imbibe.

But, for the past few years, that has been top of mind for the Brewers Association of Maryland (BAM), as well as local lobbyists, senators, and delegates. And this past legislative session, they were able to push forth a big breakthrough in the craft beer industry.

The Brewery Modernization Act of 2019 (HB1010) was passed on Saturday, which updates the state’s beer laws by increasing taproom sales, production capabilities, self-distribution limits, and hours of operation.

“Job creation and economic impact has been our consistent message since we began this effort three years ago,” says BAM executive director Kevin Atticks. “Our tactics have been different—and last year things got unnecessarily heated—but there have always been legitimate concerns from legitimate entrepreneurs. This session, we didn’t ask for infinite numbers, but we still asked for increases that will give our brewers the possibility to grow.”

Atticks greatly credits the new regime in the General Assembly in Annapolis, as well as the support of local delegates and lobbyist Brad Rifkin for bringing the bill to fruition.

Under the new act, which goes into effect July 1, Class 5 beer manufacturers (think Union Craft, Monument City, Heavy Seas, etc.) will have increased taproom limits of up to 5,000 barrels a year. For Class 7 microbreweries (like The Brewer’s Art, Nepenthe Brewing), taproom limits have also been increased to 5,000 barrels a year and their production cap has nearly doubled to 45,000 barrels a year.

In addition, the new law will remove the guided tour requirement for carry-out beer at breweries (up to a case), allow Class 8 farm breweries to extend their hours until 10 p.m., loosen regulations on self-distribution, and make it possible for all classifications to now brew beer at an off-site location.

“A lot of breweries have found beautiful spots that they never thought they’d outgrow,” says Atticks. “This gives them the ability to grow, but not necessarily move and leave their original market.”

In tandem with this bill is an important breakthrough in the Beer Franchise Law Reform legislation, which updates distribution regulations that hadn’t been touched since 1974. Back then, the laws were established to protect mom and pop wholesalers (or distributors) in the case that giant, mega-breweries decided to walk away. That’s why 180 days notice and a showing of “good cause” had to be proven in order to sever contracts.

“The problem is, since the craft beer boom, we now have a reversal of power,” explains Atticks. “Wholesalers are now the big kahuna and breweries are the small guy. They need flexibility to find a new wholesaler or switch it up if it isn’t working out.”

Under the new law, effective January 2020, breweries that produce less than 20,000 barrels annually (almost all in the state of Maryland), may, without cause, be able to leave a wholesaler after providing just 45 days notice.

“It was nice to see that all parties—retailers, wholesalers, and brewers—were able to get together and agree to continue to move our industry forward,” says Hugh Sisson, the founder of Heavy Seas Beer, who has been championing beer legislation for decades. “At the end of the day, it is always best if the various stakeholders work together. After a couple years in a row being at loggerheads, I think everyone deserves credit for overcoming the issues.”

In addition, local stakeholders with the Maryland Distillers Guild made some strides in the spirits world. As of July 1, distilleries will be able to serve cocktails with an amended Class 1 license (similar to the existing Class 9 you see at Blackwater, Old Line, and Seacret’s), pouring up to 7,750 gallons annually.

“We’ve been involved in the process for years and it wasn’t easy to get this bill passed,” says Max Lents, co-owner of the Baltimore Spirits Company and founding member of the distillers guild. “This bill lets the local liquor board create a license for us, so it’s still a not a done deal, but at least we have a clear path now. This certainly gives us more freedom in the future.”

While all of the legislative language and facts and figures can feel wonky, Atticks says that the average drinker will definitely notice a change once the laws are enacted.

“Maryland beer will be more available,” he says. “That means you’ll be able to buy more at breweries and see more of it in beer stores. Clearly, the customers want it and [this session] the message was received. Reform is going to happen.”

The gloves were off at an eight-hour hearing in the House Economic Matters Committee Friday, which included heated testimony that will undoubtedly have an effect on the future of the state’s craft beer climate.

More than 15 bills on the meeting’s docket discussed the intricacies of everything from licensing to distribution, but the legislation that seemed to spark the most debate was House Bill 1052, which would add more restrictions to craft breweries and reverse the changes made during last year’s legislative session.

The 2017 session closed with the approval of HB 1283—a bill that was originally proposed to accommodate Guinness’ large-scale production coming into Baltimore and was subsequently amended in the Senate amid pushback from brewers, who wanted a level playing field. The bill was ultimately viewed by most parties as a compromise.

“There’s been a lot of discussion and debate since 1283 passed last session,” testified Del. Talmadge Branch of Baltimore City, who is co-sponsoring the new bill along with committee chairman Dereck E. Davis of Prince George’s County. “Since the end of last session and throughout the summer and fall, I’ve read articles and listened to meetings over the internet that continuously express that the industry was not satisfied.”

In fact, what the craft beer industry is saying, according to the Brewers Association of Maryland (BAM), is that the bill wasn’t progressive enough. Though some amendments did alter the bill in favor of the brewers, BAM’s sentiment was that there was still work to be done. (For example, Frederick’s Flying Dog Brewery put its $50 million expansion plans on permanent hold due to the outcomes of HB 1283.) But instead of moving the ball forward, craft brewers feel that HB 1052 takes them back to square one.

“The only two positive pieces [of HB 1283] were that contract brewing was legalized and that the barrel increase was recognized, and now they’re trying to take that away,” explains Tim Scouten of Goonda Beersmiths, which currently contract brews out of Peabody Heights Brewery. “It says to the brewers, ‘You are not a priority.’”

However, part of what lawmakers were arguing on Friday is that proposed lack of limitations on brewing production bring up public health concerns.

“With every expansion on the consumption of alcohol, there is a direct correlation to social and health consequences,” testified Del. Benjamin Kramer of Montgomery County. “I’m not saying it’s the burden of the craft beer industry. That is a burden for the entire industry. But do understand, the prospect of unlimited sales at every one of these breweries is a very valid health concern. The welfare of the residents of our state is an absolute priority.”

Brendan O’Leary—who moved his family from Colorado to develop soon-to-open True Respite Brewing Co. in Rockville—countered Kramer’s point by comparing craft beer to the macro-brewed products sold at regular bars and restaurants.

“The proliferation of craft beer in Maryland does not necessarily spell doom or disaster for the highways of Maryland,” O’Leary said. “I’m not aware of any bar or restaurant that has limits on how many beers they can sell. So when we’re talking about concerns of public health, I’m not sure that it’s fair to pin the problem on craft breweries who are taking market share from national brewers here in Maryland.”

From the retail perspective, some proponents of HB 1052 fear that bars, restaurants, and liquor stores will face competition if breweries have fewer restrictions. But Scouten argues that retailers only benefit from having breweries in their area.

“The liquor stores closest to Union in Hampden are packed with Duckpin,” he says. “This scarcity mindset that the retailers and wholesalers are operating under is understandable, but just in general, very negative.”

Capital Gazette reporter Liz Murphy echoed Scouten’s statements when she shared an anecdote about a connection made between Odenton’s new Crooked Crab Brewing Co. and nearby restaurant The Hideaway.

“I asked [the owner] how he felt about Crooked Crab Brewing coming to the neighborhood,” she recalled. “His face lit up, and he said, ‘I cannot wait for them to open. Do you know this will mean for Odenton? More people will come here, to my restaurant, and other businesses in town.’”

As a counter to HB 1052, Comptroller Peter Franchot—a longtime local beer champion—has introduced HB 518, which was also heard by the committee Friday. Colloquially referred to as the Reform on Tap Act of 2018, the bill would lift many of the current restrictions and was inspired by a task force of 40 people that Franchot assembled last year to study the current state of the industry and modernize its laws.

“Every last one of us in Maryland has benefitted from the innovation and the sacrifice of these craft brewers,” said Franchot, adding that breweries produce more than $637 million in total economic output. “They are the manufacturers of the 21st century, who have demonstrated their capacity to not only propel the manufacturing sector into the new millennia, but completely drive and revitalize local economies.”

All of the proposed brewery bills will be deliberated further by the committee before a vote is decided later in the session, which closes on April 9. In the meantime, while BAM is encouraging citizens to contact their local representatives to discuss the proposed legislation, lawmakers are urging the craft beer community to soften their rhetoric on social media.

“We don’t have to throw stones to get the message across,” said Del. C.T. Wilson, in response to Franchot’s testimony. “You might not get every single thing you want in your bill, but if you don’t get everything, could you please stop attacking us on Facebook and Twitter? I don’t understand how that moves the ball forward. [We need to] stop with this vitriol so that we can move on for the good of not just the craft brewers, but the entire state of Maryland.”

A revised bill that would secure a future for Guinness in Baltimore County passed on the Senate floor today, in a vote tallied 46-1.

“We said all along that a rising tide lifts all boats and we truly believe this legislation is a positive step forward for Maryland’s hospitality industry,” said Dwayne Kratt, senior director of government relations for Diageo, Guinness’ parent company, in a statement. “We look forward to delivering on our promise to be a supportive member of Maryland’s brewer community.”

If approved, the compromise legislation would raise the cap on production to 3,000 barrels per year, permit the practice of contract brewing (25 percent of a taproom’s beer would be able to be produced offsite), and allow existing breweries to maintain their normal hours. New breweries, however, would need to close by 10 p.m.

“[The revised legislation] is good for us,” says Mike McDonald, co-owner of Key Brewing Company in Dundalk. “But I would like to see everybody have the same opportunities in the future.”

The legislation, HB 1283, has been a hot-button issue in the local beer industry ever since it passed unanimously in the House of Delegates last month. The bill—which was drafted in the wake of Guinness’ decision to build a large-scale brewery in Relay—moved to raise the cap on production for all Maryland breweries to 3,000 barrels per year, but with the caveat of limiting contract brewing and curtailing taproom hours in order to reduce competition among breweries and neighboring bars and retailers.

In its original form, the bill was met with fierce opposition from Diageo as well as the Brewers Association of Maryland (BAM)—who argued during a meeting in the Senate’s Education, Health, and Environmental Affairs committee last week that the bill would be “one step forward and two steps backward.” The meeting also included representatives from the Maryland State Beverage License Association, Maryland Beer Wholesalers Association, and United Food and Commercial Workers Union.

Taking into consideration the amendments proposed by the many different players invested in the issue, the Senate crafted a revised version of the bill that was voted favorably in committee this morning, and passed on the full Senate floor this afternoon. The only dissenting vote came from Senator Ron Young, who has long been a proponent of the craft beer industry. Now, the bill moves on to the House of Delegates for approval before the 90-day legislative session ends at midnight on Monday, April 10.

“We believe, as we enter the last days of the 2017 legislative session, that HB 1283 as approved by the Senate, is the best compromise that could be achieved to protect local brewers this year,” said BAM’s executive director Kevin Atticks, in a statement.

BAM members say that the intention is to revisit the stipulation restricting taproom hours for new facilities during the next General Assembly session.

“Despite these improvements, BAM believes there is much more to be done to transform Maryland law to support local craft brewers,” Atticks said. “We accept this bill as passed by the Senate as a step toward making Maryland friendlier to our industry with the understanding that BAM will continue to support existing, new and prospective Maryland brewers.”

Baltimore Beer Babes co-founder Judy Neff plans to debut Checkerspot Brewing in South Baltimore this September. Though Checkerspot is technically considered an existing brewery (management submitted its requisite TTB forms before the December cut-off date), Neff says that she understands how the taproom restrictions could potentially hinder brewers from settling throughout the state.

“If we weren’t being grandfathered in, and were being treated differently, then that very well may have affected our ability to open,” Neff says. “But it’s a small and growing scene, it’ll come back around eventually.”

Neff says that, rather than being discouraged by the controversy, she remains inspired by the manner in which local brewers have unified to promote the evolution of the industry.

“Everyone has been very proactive,” she says. “They’re not just sitting back and saying, ‘Someone else will take care of this.’ There are so many people who took valuable time to talk with delegates and senators, and to testify in Annapolis. It really speaks the craft brewing industry as a whole.”

McDonald echoes that sentiment: “It was nice to see people felt that strongly and got together on this quickly,” he says. “Everything unfolded at a rapid pace, but it feels good to be in such a collaborative industry.”