Bill to allow beer, wine sales in retail stores draws split testimony at Economic Matters hearing

An Annapolis hearing of the Economic Matters Committee’s alcohol subcommittee on House Bill 13 79 drew hours of testimony on whether Maryland should allow certain retail stores to obtain licenses to sell beer and wine.

Sponsor Delegate Marlon Ampre said the measure “modernizes our outdated licensing system” and would bring Maryland in line with most other states, arguing the change would increase convenience for families, help some small Maryland producers reach new retail channels and produce new tax revenue. “This bill will ultimately bring Maryland to the 21st century,” Ampre told the committee.

Business groups and grocery representatives urged approval. Kaylee Locklear of the Maryland Retailers Alliance said polls and commissioned studies show expanded retail access can increase jobs and revenue while having limited impact on the number of specialty package stores in other states. Michael Adams, also with the Retailers Alliance, said the bill is a “clean” starting point that the committee can tailor with amendments.

An independent study presented by University of Florida economist Nathan Pilardi found modest reductions in liquor-store foot traffic in states that expanded grocery sales of beer, but did not find widespread permanent closures of package stores; Pilardi said liquor-store counts remained roughly steady in his Colorado sample. He and other proponents said data and map evidence show Maryland already has local examples where grocery or convenience stores sell alcohol and co-exist with nearby package stores.

Opponents, including the American Heart Association and the Maryland State License Beverage Association, warned the bill risks harming small, family-owned package stores. Steve Wise, speaking for licensees, said chain retailers have pricing, real-estate and contract tools that can be used to undercut independents. Kathy Hogan for the American Heart Association argued broader retail availability would worsen public-health harms tied to more ubiquitous alcohol outlets.

Several proposed amendments were presented during testimony and in written materials: an extra point-of-sale surcharge (a 5% levy on beer and wine sold under the new retail license) to fund grocery access in underserved neighborhoods; statutory limits on the number of licenses that a local board may issue by geography to prevent oversaturation; and caps on the square footage devoted to alcohol in retail stores to limit full conversion of aisles into alcohol corridors. Ampre said those proposals were intended to make the measure more “balanced.”

Committee members questioned witnesses about the likely economic impacts, how existing leases and exclusivity clauses in shopping-center contracts would play out, and whether Maryland breweries and wineries would gain meaningful new out-of-state markets. Retail supporters said grocery and convenience chains already operate in Maryland and could help expand distribution for Maryland-made products; opponents said that same distribution power is how national brands crowd out small producers.

The subcommittee did not hold a final vote during the hearing. Members asked for additional economic and legal analysis and for proposed amendment language to be supplied to staff. The bill will return to subcommittee work and the ongoing statewide-Bill discussion before any committee report is filed.