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.”

By large margins, Maryland residents say they support legislation currently before the General Assembly that would significantly change diverse swaths of longstanding public policy, including the recreational use of marijuana, the minimum wage, education spending, and aid-in-dying. (Among others, retired NPR host Diane Rehm, who has supported aid-in-dying legislation since her husband’s 2014 death in hospice care in the state, recently testified in favor of such legislation.)

Similarly, an overwhelming majority of Marylanders, 86 percent, say they are “very” of “somewhat” concerned with pollution in the Chesapeake Bay, according to the latest Goucher Poll released today. And 62 percent of residents rate the health of the environment in Maryland as either “poor” or “fair” as legislators consider raising the state’s renewable energy targets.

At the same time, the study revealed that important, differing perceptions of racial discrimination and justice among white and black citizens continue to persist. Also noteworthy: A majority of both groups agree race relations in Maryland have worsened in recent years.

“The Democrats in the General Assembly have laid out a robust set of policy proposals this legislative session,” said Mileah Kromer, director of the Sarah T. Hughes Field Politics Center at Goucher College in a statement. “Our poll results suggest that much of their agenda is popular with the general public. Some of these issues, however, are contentious and will face formidable opposition from organized interests on their way to an uncertain fate at Gov. [Larry] Hogan’s desk.”

From the Goucher Poll, which surveyed 808 adults between February 7-12:

Statewide Policy Issues

• 67 percent support raising the minimum wage to $15 per hour and 30 percent oppose it.
• 57 percent support legalizing the recreational use of marijuana and 37 percent oppose it.
• 63 percent support a statewide ban on Styrofoam products such as food containers, plates, and cups and 31 percent oppose it.
• 62 percent support the proposed “aid-in-dying” bill and 31 percent oppose it.
• 64 percent say the state spends too little on education, 24 percent say about the right amount.
• 66 percent support raising the minimum age for the sale of cigarettes and other tobacco products and 31 percent oppose it.

Racial Justice Issues in Maryland

• 39 percent of all Marylanders agree that “people of all races receive equal treatment by the police in your community.”
  • Among African Americans, 18 percent agree.
  • Among whites, 47 percent agree.
• 55 percent of Marylanders agree that “racial minorities face discrimination on the job or at work in Maryland.”
  • Among African Americans, 69 percent agree.
  • Among whites, 47 percent agree.
• 53 percent of Marylanders agree that “race relations in Maryland have gotten worse over the past few years.”
  • Among African Americans, 54 percent agree.
  • Among whites, 54 percent agree.
• 24 percent of Marylanders agree that “the criminal justice system in Maryland treats whites and blacks equally.”
  • Among African Americans, 10 percent agree.
  • Among whites, 30 percent agree.
• 63 percent of Marylanders agree that “racism is a big problem in Maryland today.”
  • Among African Americans, 72 percent agree.
  • Among whites, 58 percent agree.

It feels like deja vu for the craft beer industry this legislative session. 

A little over a year ago, house bill 1283 was passed on the Maryland Senate floor, which raised the cap on production of craft beer to 3,000 annual barrels and permitted the practice of contract brewing, among other things. The legislation was a hot-button issue when its original version was passed unanimously in response to Guinness’ decision to build a large-scale brewery in Baltimore County.  

Many local breweries admitted that the bill wasn’t perfect, but a good “compromise” between the original law and the eventual goals of the craft beer industry. 

Now, new house bill 1052 seeks to undo many of those endeavors. The new bill, which will be heard in the house on February 23, aims to repeal contract brewing, alter sample sizes of certain beer, and cap the amount of beer sold on-premises to 2,000 annual barrels (though Guinness would be exempt).
 

“HB1052 would inflict actual harm on a majority of the brewing industry,” says Kevin Attacks, executive director of the Brewers Association of Maryland. “Rather than wasting our time and energy debating a tone-deaf, mal-intentioned attempt to distract from real conversations aimed to grow our manufacturing industry, we’re focusing on our legitimate, reasonable, reform efforts.” 

Currently, Maryland brewers have a $637.6 million economic impact, support 6,541 jobs with $228.3 million in wages and $53.1 million in state and local tax revenues. But the state lags behind some of its neighbors when it comes to gallons produced and number of breweries, which is why legislation like this is important for the future of the industry.
 

Sponsored by Delegates Dereck Davis and Talmadge Branch, HB1283’s intent is to go back to the original law because, the lawmakers say, the craft beer industry was not happy with the results last year.
 

“All this bill does is reset—it just puts things back the way they were,” says Davis, who is the char of the Economic Matters Committee. “For a year now, we’ve been told by the craft beer industry that 1283 was harmful to the industry. But everyone knew it was progress over the original law. The problem is that it may not have been as much progress as they wanted.”
 

The bill’s intent, in essence, is to scrap initiatives made to craft beer law. Some argue the bill is aiming to support restaurants and distributors who would benefit from capped beer laws. Davis says those entities “have nothing to do with” HB1283.
 

Curiously, Guinness and its parent company Diageo, are exempt from restrictions in the new house bill, but Davis says he agrees “with the premise that everyone should be on a level playing field.”
 

What will also be argued on February 23 is house bill 518, colloquially known as the Reform on Tap Act of 2018, which will lift many of the current restrictions on farm, micro, and standard brewers in Maryland.  

Many local breweries, including Union Craft Brewing (which is getting set to open Union Collective this year and triple its brewing capacity) have implored its patrons to come out in support for HB518.
 

“Union made a difficult decision to expand our business and reinvest in Maryland,” says Union co-owner Jon Zerivitz. “We made this choice in the face of the anti-small business attitude that is all too pervasive in Annapolis. If a bill like [HB1052] were to pass, we’d be crushed by its restrictions.”
 

As for the February 23 hearing, Davis says he is eager to hear from all sides, which will undoubtedly include craft beer industry champion Comptroller Peter Franchot.
 

“We’re going to let everybody make their case,” Davis says. “We encourage everyone to contact their local officials and let their voices be heard in this matter.”