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SB 1039

An Act amending the act of March 10, 1949 (P.L.30, No.14), known as the Public School Code of 1949, in student supports, further providing for definitions and for student supports and providing for the Pennsylvania Mental Health First Aid Training Program; and, in school safety and security, further providing for the School Safety and Security Grant Program.

2025-2026 Regular Session Introduced by Maria Collett and 11 co-sponsors

Raises on-premises share of non-self-brewed beer at Class 5 breweries from 25% to 35%; keeps affiliate, production, and contracting rules intact.

Referred to Education
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Bill Summary · SB 1039

SB 1039 — Alcoholic Beverages: Class 5 Breweries — On‑Premises Consumption

Chapter 144 (Approved by Governor April 22, 2025). Effective July 1, 2025.

Purpose

Amend Maryland law governing Class 5 brewery licenses to increase the permitted share of on‑premises beer sales that may consist of beer not brewed by the license holder (or its affiliate) from 25% to 35% of on‑site sales volume, subject to existing statutory conditions.

Key provisions

  • Modifies Article — Alcoholic Beverages and Cannabis §2‑207(f)(2)(iii)(2), replacing the prior 25% threshold with 35%.
  • Leaves intact the other statutory limitations and conditions, including:
    • A Class 5 brewery with an on‑site consumption permit may sell certain beer for on‑premises consumption (the general 5,000‑barrel annual limit under the on‑site permit remains in force).
    • Beer brewed at a location other than the Class 5 brewery may be sold on‑site only if:
    • The brand owner is the Class 5 licensee or an affiliate; and
    • The number of barrels sold on‑site that were brewed elsewhere in a calendar year does not exceed the greater of:
      • 35% (was 25%) of total barrels sold for on‑premises consumption under the on‑site/Class D/equivalent license in that year; or
      • 1.2% of total finished production under the Class 5 brewery license; and
    • The licensee either contracts with (or on behalf of) a holder of a manufacturer’s license or nonresident dealer’s permit, or the beer is manufactured by an affiliate of the licensee.
    • For breweries (alone or with affiliates) that produce more than 1 million barrels annually, finished beer delivered to the Class 5 brewery may be sold for on‑premises consumption only if purchased from a licensed wholesaler (subject to the other annual limits above).

Who is affected

  • Primary: Holders of Maryland Class 5 brewery licenses and local licensing boards that issue on‑site consumption permits.
  • Secondary: Manufacturer licensees, nonresident dealers, wholesalers, and affiliated brewing operations that supply beer to Class 5 breweries.
  • The Maryland Alcohol, Tobacco, and Cannabis Commission indicated the change affects one known Class 5 licensee in the State (Open Gate Brewery, Baltimore County).

Fiscal and policy impact

  • The Department of Legislative Services fiscal note: no material effect on State or local finances or operations; no small business impact reported.
  • Practical effects: provides additional flexibility to Class 5 breweries to offer a larger share (up to 35%) of non‑self‑produced brands on tap, subject to existing production/affiliate/contracting constraints. Likely modest, localized business impact given statutory caps and the small number of affected licensees.

Other

  • Crossfile: HB 1551 (companion).
  • Legislative timeline: Introduced Jan 31, 2025; enacted as Chapter 144 and approved by the Governor April 22, 2025; effective July 1, 2025.

Compiled from official sources — confirm details with the bill’s official record.

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