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	<title>HB 1283 &#8211; Baltimore Magazine</title>
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	<title>HB 1283 &#8211; Baltimore Magazine</title>
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		<title>Proposed Craft Beer Bills Spark Heated Debate in Annapolis</title>
		<link>https://www.baltimoremagazine.com/section/fooddrink/proposed-craft-beer-bills-spark-heated-debate-in-annapolis/</link>
		
		<dc:creator><![CDATA[Lauren Cohen]]></dc:creator>
		<pubDate>Tue, 27 Feb 2018 12:45:00 +0000</pubDate>
				<category><![CDATA[Food & Drink]]></category>
		<category><![CDATA[News & Community]]></category>
		<category><![CDATA[Brewers Association of Maryland]]></category>
		<category><![CDATA[Comptroller Peter Franchot]]></category>
		<category><![CDATA[Goonda Beersmiths]]></category>
		<category><![CDATA[HB 1052]]></category>
		<category><![CDATA[HB 1283]]></category>
		<category><![CDATA[HB 518]]></category>
		<category><![CDATA[Maryland beer]]></category>
		<category><![CDATA[Peabody Heights Brewing]]></category>
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			<p>The gloves were off at an eight-hour hearing in the <a href="http://msa.maryland.gov/msa/mdmanual/06hse/html/com/03eco.html" target="_blank" rel="noreferrer noopener">House Economic Matters Committee</a> Friday, which included heated testimony that will undoubtedly have an effect on the future of the state’s craft beer climate.</p>
<p>More than 15 bills on the <a href="http://mgahouse.maryland.gov/mga/play/2dfec8ca-b7df-48a6-b3c0-54793a127503/?catalog/03e481c7-8a42-4438-a7da-93ff74bdaa4c" target="_blank" rel="noreferrer noopener">meeting’s docket</a> 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 <a href="http://www.baltimoremagazine.com/2017/4/7/revised-brewery-bill-passes-in-the-senate" target="_blank" rel="noreferrer noopener">last year’s legislative session</a>.</p>
<p>The 2017 session closed with the approval of <a href="http://www.baltimoremagazine.com/2017/3/22/house-passes-bill-that-imposes-restrictions-on-maryland-breweries" target="_blank" rel="noreferrer noopener">HB 1283</a>—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.</p>
<p>“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&#8217;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.”</p>
<p>In fact, what the craft beer industry is saying, <a href="http://www.baltimoremagazine.com/2018/2/9/proposed-house-bill-would-reverse-craft-beer-law" target="_blank" rel="noreferrer noopener">according to the Brewers Association of Maryland</a> (BAM), is that the bill wasn’t progressive <em>enough</em>. 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.</p>
<p>“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 <a href="http://www.peabodyheightsbrewery.com" target="_blank" rel="noreferrer noopener">Peabody Heights Brewery</a>. “It says to the brewers, ‘You are not a priority.’”</p>
<p>However, part of what lawmakers were arguing on Friday is that proposed lack of limitations on brewing production bring up public health concerns.</p>
<p>“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.”</p>
<p>Brendan O’Leary—who moved his family from Colorado to develop soon-to-open <a href="https://www.truerespite.com/#/" target="_blank" rel="noreferrer noopener">True Respite Brewing Co.</a> in Rockville—countered Kramer’s point by comparing craft beer to the macro-brewed products sold at regular bars and restaurants.</p>
<p>“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.”</p>
<p>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.</p>
<p>“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.”</p>
<p><em><a href="http://www.capitalgazette.com/lifestyle/food/cgnews-liz-murphy-20150515-staff.html" target="_blank" rel="noreferrer noopener">Capital Gazette</a> </em>reporter Liz Murphy echoed Scouten’s statements when she shared an anecdote about a connection made between Odenton’s new <a href="https://www.crookedcrabbrewing.com" target="_blank" rel="noreferrer noopener">Crooked Crab Brewing Co.</a> and nearby restaurant The Hideaway.</p>
<p>“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.’”</p>
<p>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 <a href="http://comptroller.marylandtaxes.gov/Public_Services/Agency_Information/Office_of_the_Comptroller/Comptroller_Initiatives/Reform_on_Tap_Task_Force.shtml" target="_blank" rel="noreferrer noopener">Reform on Tap Act of 2018</a>, 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.</p>
<p>“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.”</p>
<p>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 <a href="https://www.facebook.com/BrewersAssocMD/photos/a.10150595961116012.376308.63679556011/10155016791591012/?type=3&amp;theater" target="_blank" rel="noreferrer noopener">encouraging citizens</a> to contact their local representatives to discuss the proposed legislation, lawmakers are urging the craft beer community to soften their rhetoric on social media.</p>
<p>“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.”</p>

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		<title>Revised Brewery Bill Passes in the Senate</title>
		<link>https://www.baltimoremagazine.com/section/fooddrink/revised-brewery-bill-passes-in-the-senate/</link>
		
		<dc:creator><![CDATA[Lauren Cohen]]></dc:creator>
		<pubDate>Fri, 07 Apr 2017 16:09:00 +0000</pubDate>
				<category><![CDATA[Food & Drink]]></category>
		<category><![CDATA[Brewers Association of Maryland]]></category>
		<category><![CDATA[Guiness]]></category>
		<category><![CDATA[HB 1283]]></category>
		<guid isPermaLink="false">https://www.baltimoremagazine.com/?p=29566</guid>

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			<p "="">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.</p>
<p>“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.”</p>
<p>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.</p>
<p "="">“[The revised legislation] is good for us,&#8221; 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.”</p>
<p> The legislation, HB 1283, has been a hot-button issue in the local beer industry ever since it <a href="http://www.baltimoremagazine.net/2017/3/22/house-passes-bill-that-imposes-restrictions-on-maryland-breweries" target="_blank" rel="noopener noreferrer">passed unanimously</a> in the House of Delegates last month. The bill—which was drafted in the wake of Guinness’ decision to <a href="http://www.baltimoremagazine.net/2017/2/1/what-the-new-guinness-brewery-means-for-tourism-local-craft-beer" target="_blank" rel="noopener noreferrer">build a large-scale brewery</a> 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.</p>
<p>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.</p>
<p "="">Taking into consideration the <a href="http://www.baltimoremagazine.net/2017/3/30/maryland-brewers-gather-in-annapolis-to-debate-restrictive-legislation" target="_blank" rel="noopener noreferrer">amendments</a> 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.</p>
<p>“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.</p>
<p "="">BAM members say that the intention is to revisit the stipulation restricting taproom hours for new facilities during the next General Assembly session.</p>
<p>“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.”</p>
<p>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.</p>
<p>“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.”</p>
<p>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.</p>
<p>“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.”</p>
<p>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.”</p>

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		<title>House Passes Bill That Imposes Restrictions on Maryland Breweries</title>
		<link>https://www.baltimoremagazine.com/section/fooddrink/house-passes-bill-that-imposes-restrictions-on-maryland-breweries/</link>
		
		<dc:creator><![CDATA[Lauren Cohen]]></dc:creator>
		<pubDate>Wed, 22 Mar 2017 12:15:00 +0000</pubDate>
				<category><![CDATA[Food & Drink]]></category>
		<category><![CDATA[News & Community]]></category>
		<category><![CDATA[Brewers Assosication of Maryland]]></category>
		<category><![CDATA[Flying Dog Brewery]]></category>
		<category><![CDATA[HB 1283]]></category>
		<category><![CDATA[Maryland State Licensed Beverage Association]]></category>
		<category><![CDATA[Peabody Heights Brewing]]></category>
		<category><![CDATA[Union Craft Brewing]]></category>
		<guid isPermaLink="false">https://www.baltimoremagazine.com/?p=29716</guid>

					<description><![CDATA[In many respects, Maryland beer is more progressive than ever. Recently, Gov. Larry Hogan officially dedicated an entire month to the local craft beer movement, honoring its positive effects on tourism, commerce, and community innovation. But, in light of Guinness’ decision to settle in Baltimore County, legislative action has forced the state’s thriving beer businesses to &#8230; <a href="https://www.baltimoremagazine.com/section/fooddrink/house-passes-bill-that-imposes-restrictions-on-maryland-breweries/">Continued</a>]]></description>
										<content:encoded><![CDATA[<p>In many respects, Maryland beer is more progressive than ever. Recently, Gov. Larry Hogan officially dedicated <a href="http://www.baltimoremagazine.net/2017/2/16/febrewary-festivities-continue-with-love-thy-beer-festival-this-weekend" target="_blank" rel="noopener">an entire month</a> to the local craft beer movement, honoring its positive effects on tourism, commerce, and community innovation.</p>
<p>But, in light of Guinness’ decision to settle in Baltimore County, legislative action has forced the state’s thriving beer businesses to “take one step forward and two steps back,” according to the Brewers Association of Maryland (<a href="http://marylandbeer.org/" target="_blank" rel="noopener">BAM</a>).</p>
<p>A bill that was passed by the House of Delegates last week ups the cap on production for all local breweries (which will bode particularly well for the famed Irish beer house), but with the caveat of limiting hours of taproom operation and hindering contract brewing—a practice that has helped many local outlets including Diamondback, Full Tilt, and Monument City get off of the ground.</p>
<p>BAM president Ben Savage says that the implications of the bill, HB 1283, could be extremely detrimental in its current form.</p>
<p>“We’re at a point now where the restrictions that are added to this bill outweigh the benefits that they’re proposing,” says Savage, who also serves as chief marketing officer of Flying Dog Brewery. “If we can’t get it amended to the point where we think it’s an overall good piece of legislation, we would probably advise not to pass it at all.”</p>
<p>Tension began to build last month, when officials at Diageo—Guinness’ global production arm—<a href="http://www.baltimoremagazine.net/2017/2/1/what-the-new-guinness-brewery-means-for-tourism-local-craft-beer" target="_blank" rel="noopener">announced plans</a> to build a brewery for the multi-billion dollar company in Relay, a small town just outside of Halethorpe.</p>
<p>Slated to open this fall, the production facility would be Guinness’ first in the United States in 63 years and feature a retail store, taproom, and warehouse with packaging operations.</p>
<p>From the beginning, the project was contingent on the General Assembly’s approval of a new type of liquor license that would be more conducive to the massive amounts of production that such a large-scale facility requires. Currently, the cap on how much beer can be sold on the premises at breweries throughout the state is 500 barrels per year, but Guinness would need that number to increase to 5,000.</p>
<p>A boost in on-site sales is something that BAM has been working toward for many years. When Guinness came into the picture, the organization partnered with Diageo to introduce a new Senate bill, SB 1172, which would ensure a level playing field for all Maryland breweries.</p>
<p>But BAM’s work hit a low point last week, when the House of Delegates unanimously passed HB 1283—which raises the maximum amount of beer a brewery can sell in its taproom to 2,000 barrels, but significantly restricts hours for visitation.</p>
<p>Savage says that it’s difficult to make sense of how the legislation passed, especially because there were other proposed bills—including the one that BAM and Diageo worked on together—that seemed to be more beneficial to all parties involved.</p>
<p>“I’m as shocked as anyone,” he says. “There’s a brewery in every district that is represented in Annapolis. My only sense is that people maybe weren’t as forthcoming as to whether or not the Brewer’s Association was really involved in the development of this bill. There was an assumption that we were, and we weren’t. That part is very discouraging.”</p>
<p>The latest bill takes into account the viewpoints of Maryland State Licensed Beverage Association (<a href="http://www.mslba.org/index.html" target="_blank" rel="noopener">MSLBA</a>), which represents surrounding bars and wholesalers who would face competition from taprooms that have a heavy focus on retail. Steven Wise, legal counsel for the MSLBA, could not be reached for comment.</p>
<p>A wholesaler did write an <a href="http://naptownpint.com/2017/03/hb-1283-a-wholesalers-perspective/" target="_blank" rel="noopener">anonymous editorial</a> to <em>Naptown Pint</em> this week, saying that lobbying groups have forced them to be less-than-ideal partners for brewers. The bill also throws a curveball at the “three-tier” regulation system, which was instituted post-Prohibition and limits breweries to manufacturing, wholesalers to distributing, and bars to selling alcohol.</p>
<p>“We love existing within the three-tier system,” Savage says. “We wouldn’t be in business without our wholesale or our retail partners. But it’s not a sacred structured piece of regulation that is untouchable. Every state has a different version. All we’re asking is that the Maryland version be a little less restrictive so that we can allow our breweries to thrive.”</p>
<p>&lt;p &#8220;=&#8221;&#8221;&gt;Under the new legislation, Class 5 breweries would need to close at 9 p.m. on weekdays and 10 p.m. on Fridays and Saturdays. Savage says that this not only restricts patrons from visiting local tasting rooms, but it also has the potential to require staff layoffs throughout the entire industry.</p>
<p>“Our brewery has become a popular destination for the community during the late afternoon and evenings, and this bill fundamentally changes the rules on us without our input,” said Union Craft Brewing co-founder Adam Benesch, in a statement from BAM. “It will change our ability to have reasonable public hours at the brewery, which will cause us to potentially lay off 5-10 employees.”</p>
<p>Additionally, another provision of the bill restricts taprooms to only sell beer produced at an adjoining production facility. This presents conflict for small startups that contract out of larger incubators, such as Peabody Heights Brewery in Waverly, with the intention of selling their brands at taprooms off-site. It would also have an effect on collaborative brews.</p>
<p>“We invested over $3 million in this brewery, created 12 jobs, brought a world-renowned brewmaster to Baltimore, and now produce beer for startup breweries throughout Maryland,” said Peabody Heights owner Dick O’ Keefe. “The bill as drafted hurts us and closes the doors for our startup clients.”</p>
<p>Moving forward, BAM is encouraging craft beer lovers to contact their senators and urge them to amend the bill. Savage says that a committee meeting to discuss BAM’s proposed revisions could happen as early as this week, and the organization is expecting a large turnout from its members to voice their concerns.</p>
<p>Though the future of Maryland’s taprooms and production policies is still up in the air, Savage is hopeful that the union will remain resilient.</p>
<p>“There’s no doubt we’ll get through this,” he says. “You can take Diageo and all of the specific breweries out of it, at the end of the day, this is a bad bill. We can no longer perpetuate legislation that hurts Maryland businesses.”</p>

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