COVID-19 (Coronavirus) and Frederick County Liquor Laws

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On Monday, March 16, 2020, Governor Hogan, in an effort to slow the spread of the coronavirus, by executive order, ordered the closure of all Maryland bars, restaurants, movie theaters, and gyms until such time as the state of emergency, declared by Governor Hogan on March 5, 2020, is terminated and the proclamation of the catastrophic health emergency has been rescinded or until the executive order is otherwise rescinded, superseded, amended or revised by additional orders. During that time, however, restaurants will still be allowed to offer drive-thru, carryout and delivery services.

Additionally, on Thursday, March 19, 2020, Governor Hogan, by executive order, announced that restaurants, bars, breweries, wineries, distilleries, and others holding a state or local license to manufacture or sell alcoholic beverages may sell, for carry out and delivery only, any alcoholic beverage in a sealed container. The executive order will remain in effect until the termination of the above referenced state of emergency, and the proclamation of the catastrophic health emergency has been rescinded, or until the executive order is otherwise rescinded, superseded, amended, or revised by additional orders. The executive order further outlined that the sale, for carry out and delivery, of alcoholic beverages is subject to: (i) any social-distancing recommendation of the Maryland Department of Health, (ii) all applicable legal requirements, including in regards to sales limitations, recordkeeping and verification of the age of recipients, (iii) with respect to those retailers holding a state license, any conditions imposed on such activities by the Comptroller of Maryland, and (iv) with respect to those retailers holding a local license, any conditions imposed on such activities by the local licensing board.

After the Governor’s initial order was announced, the Frederick County Liquor Board (the “Liquor Board”) and its staff quickly announced certain regulations relating to the sale of alcohol at and by those establishments impacted by the order, which regulations allow for the sale for carry out and delivery of certain alcoholic beverages. Subsequently after the Governor’s second order, the Liquor Board and its staff announced amended regulations which are further outlined herein.

No action needs to be taken on the part of the holder of a Class A, B or DBR license if they wish to sell alcohol for carry out. With that said, licensees may only sell those beverages they have authority to sell under their current license. All alcohol must be sold in sealed containers for consumption off premises.

Should a Class A, B or DBR license holder wish to deliver alcoholic beverages, such licensee must submit a Delivery Application to Liquor Board staff via email, and receive approval by Liquor Board staff before any delivery can be made. Once approved for delivery and subject to certain other regulations developed by the Liquor Board, each delivery made must be acknowledged by the completion of a Delivery Customer Form. Original Delivery Customer Forms must be turned in to Liquor Board staff by the 10th of the month following the month in which the delivery was made. No delivery may be made to another licensed establishment (such as a licensed hotel or motel) and deliveries may only be made in Frederick County.

In addition, Class B, Beer, Wine, and Liquor license holders may sell full, sealed, never opened bottles of liquor. Further, after a bit of confusion and a back and forth with the Maryland Comptroller’s office, the Liquor Board announce on March 20, 2020 that mixed liquor drinks may be sold, both for carry out and delivery. Mixed liquor drinks must be sold in solid and sealed containers without straw holes, the containers must be wrapped in cellophane type material, they must be placed in a bag that is stapled shut with a receipt. If the mixed liquor drink is to be delivered it must be out of reach of the delivery driver in a sealed bag with a receipt or a cooler. All mixed liquor drinks may only be served or delivered with food.

If a license holder has been approved by the Health Department to fill/refill Growlers/Crowlers, all Growlers/Crowlers must be sealed upon sale. If a licensee is not already approved to sell, fill or refill Growlers/Crowlers they can, for a small fee, submit a Growler/Crowler application for approval.

The Liquor Board has reserved the right to immediately withdraw delivery privileges from a licensee if any restriction established by the Liquor Board is not adhered to.

A Governor Hogan executive order from March 12 provides that, if a licensee’s liquor license is going to expire during the state of emergency, such expiration date shall be extended to the 30th day after the date by which the state of emergency is terminated and the catastrophic health emergency is rescinded. Liquor Board staff will be adjusting all licensing dates as a result of this executive order.

Opinions and conclusions in this post are solely those of the author unless otherwise indicated. The information contained in this blog is general in nature and is not offered and cannot be considered as legal advice for any particular situation. The author has provided the links referenced above for information purposes only and by doing so, does not adopt or incorporate the contents. Any federal tax advice provided in this communication is not intended or written by the author to be used, and cannot be used by the recipient, for the purpose of avoiding penalties which may be imposed on the recipient by the IRS. Please contact the author if you would like to receive written advice in a format which complies with IRS rules and may be relied upon to avoid penalties.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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