2 Mid-Atlantic Brewing News PUBLISHERS Bill Metzger email@example.com Jamie Magee firstname.lastname@example.org EDITOR Greg Kitsock email@example.com ADVERTISING Jamie Magee 508-308-7889 firstname.lastname@example.org Next Advertising Deadline: MARCH 10 ROVING SALES Mike Horkan email@example.com February/March 2018 Reform continued from cover above 2,000 barrels; *Unlimited self-distribution rights and the repeal of franchise laws for breweries pro-ducing under 300,000 barrels a year; *Establishment of a two-year provisional license for start-up brewers to contract-brew at another licensed brewery. “Destructive Legislation” STATE CORRESPONDENTS DELAWARE George Hummel firstname.lastname@example.org MARYLAND Kevin Smith email@example.com BALTIMORE Alexander D. Mitchell firstname.lastname@example.org PENNSYLVANIA Jack Curtin (E.Pa.) email@example.com Jim Weber (Central Pa.) firstname.lastname@example.org George Hummel (Phila.) email@example.com VIRGINIA Steve Marler firstname.lastname@example.org WASHINGTON DC Stephen Lipps email@example.com WEST VIRGINIA John Yevuta firstname.lastname@example.org NEW JERSEY Mark Haynie email@example.com HOP TIPS EMAIL NEWSLETTER John Vaccarelli firstname.lastname@example.org CONTRIBUTORS Martin Morse Wooster email@example.com Steve Frank & Arnold Meltzer firstname.lastname@example.org Charles Pekow, These proposed reforms, drafted and submitted to the General Assembly for their review, target in particular what Franchot called ”the destructive legislation” of Md. HB 1283. The bill, which passed in April 2017 and became effective July 1, raised production limits from 500 to 2,000 bbl to allow Guinness to build its suburban Baltimore showcase brewery. But it also imposed limits, such as restricting taproom hours from 10 a.m. to 10 p.m. for breweries applying for a license after April. Maryland had suffered in economic impact and reputation even before HB 1283. Over the past several years, several West Coast breweries, seeking Eastern production facilities, bypassed Maryland in favor of sites in Virginia and North Carolina. These states put on a strong showing at the 2017 Craft Brewers Conference in Washington, DC; Maryland was conspicuously absent. As a further rebuke, Jim Caruso, CEO of Frederick's Flying Dog Brewery, announced that the company was placing a planned $54 million expansion “on permanent hold” because of laws “not condu-cive to breweries expanding.” According to the 41-page final report issued by Franchot’s task force, craft brewing industry is a positive economic force in the state. But Maryland is a net importer of craft beer, consum-ing 275,000 barrels while only producing 247,000 barrels. It ranks 47th among all states in net economic impact while ranking 25th in per capita production and 36th in number of breweries. (Maryland has 80 odd craft breweries, while Virginia boasts over 250.) Maryland state comptroller Peter Franchot and his staff unveil the Reform on Tap Act at Union Collective in Baltimore on Nov. 20. Franchot is bracketed by Adam Benesch, Jon Zerevitz and Kevin Blodger, founders of Union Craft Brewing in Baltimore. PHOTO BY ALEXANDER D. MITCHELL IV Maryland is a net importer of craft beer, consuming 275,000 barrels while only producing 247,000 barrels. “It is difficult to overstate the damage [HB 1283] has done to the state’s reputa-tion within the industry and to our efforts to attract and retain craft brewers,” the report stated. Echoing this theme was Randy Marriner, founder of Manor Hill Brewing in Ellicott City. “In the industry, reputation matters. And Maryland has a reputation in the indus-try as a state of limits,” he stated at the press conference. Franchot took the further step of launching a peti-tion drive to lobby for passage of his proposed legislation and holding public outreach meetings at several bars— highly unusual for a state official nor -mally regarded as only a tax collector. But Franchot, a Democrat elected in 2006, defended his unusual effort, citing his default position as the chief state overseer of alcohol regulations. “I'm an independent Democrat, not part of the party machine. This is not a popularity contest for me or any other politician; it's about doing the right thing for Maryland breweries.” He believes their success will translate into increased tax revenues. Franchot and his staff have long evidenced a personal interest in the craft brewing industry. Indeed, in 2009, under Governor Martin O'Malley, the Brewers Association of Maryland changed its state competition award from the Governor's Cup to the Comptroller's Cup. Task Force Biased? Whether Franchot’s proposals will become law, however, is far from a foregone conclusion. Even before the Maryland legislature convened for its 90-day session on Jan. 10, the opposition began to mobilize. Opponents included beer wholesalers, retail-ers, bar owners and public health advocates, all of whom felt excluded by Franchot’s task force. (Brewers and craft beer advo-cates held nearly half of the positions on the 40-member task force, while the retail and wholesale segments had seven.) Eric L. Best, general manager of Bob Hall LLC (a distributor in Upper Marl-boro), vice president of the Maryland Beer See Reform continued on p. 4 ILLUSTRATIONS: Hans Granheim email@example.com DESIGN/LAYOUT: Nathan Scherbak firstname.lastname@example.org WEBMEISTER: Jamie Magee email@example.com Fax 1-888-665-5007 OFFICE PHONE: 1-800-474-7291 FAX: 1-888-665-5007 Mid-Atlantic Brewing News is published bimonthly, on 100% recycled paper. Over 40,000 copies are distributed to breweries, brew on premises, homebrew supply shops, and high variety beer bars and stores across the Mid-Atlantic region. One year sub scrip tions (6 issues) are available for $20 US or $25 Canadian. Send checks here: MABN , 571 South Park Ave.Buffalo, NY 14204. All material ©2018 by Mid-Atlantic Brewing News , unless otherwise noted.