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Reform on Tap Act ‘is very much still alive’

By Josh Davis, Associate Editor

(March 15, 2018) While local support is strong for the Reform on Tap Act, which would loosen restrictions on craft brewers, proponents of the measure can only guess how the Maryland General Assembly will vote if it gets to the floor.

Last Tuesday, the Worcester County Commissioners expressed unanimous support, and other local backers of the legislation include Ocean City Mayor Rick Meehan, Worcester County Tourism Director Lisa Challenger, Berlin Economic and Community Development Director Ivy Wells, Ocean City Development Corporation Executive Director Glenn Irwin, Ocean City Chamber of Commerce Director Melanie Pursel and Shore Craft Beer founder Ann Hillyer.

Local brewers, including Ocean City Brewing Company, Burley Oak Brewing Company in Berlin and Tall Tales Brewery in Parsonsburg, also have expressed support.

The Reform on Tap Act of 2018, also known as House Bill 518, was drafted by State Comptroller Peter Franchot and designed to help Maryland brewers compete with brewers in neighboring states.

Franchot created the Reform on Tap Task Force last year and released a 41-page report in response to previously adopted legislation called unfavorable to brewers.

A House Economic Matters Committee hearing for the bill last month was characterized as contentious and the legislation has yet to move on there.

Still, Franchot’s office remains optimistic. Press Secretary Alan Brody said in an interview last Friday he hoped a voting session would be scheduled as soon as this week.

“Obviously, the sooner the better is what we’re really hoping for, and we think the hearing really showed the committee members there is a lot of support for it,” he said. “It is very much still alive. We’re not changing our focus toward next year or the future or any other legislation – it’s still fully focused on 518.”

Brody described the first committee hearing as “emotionally charged.” He said the hearing, ironically, started at 5:18 p.m. and lasted until after 9:30 p.m.

“We came out of it pretty hopeful because, throughout all the raw emotion and intensity among both legislators and sponsors, one thing that we didn’t hear is any substantive opposition toward any provision of 518,” he said. “There was a lot of pent up frustration from legislators who felt they were being disrespected, as well as from supporters who felt the lawmakers were holding them back. But, at the end of the day, we didn’t hear any substantive opposition toward loosening the regulations or why that shouldn’t happen, so we’re pretty optimistic about that.”

He urged Marylanders to continue support for the legislation by calling their local lawmakers.

A post from the official Reform on Tap Facebook page on Tuesday said, “We don’t know when HB 518 will be taken up, but keep calling your delegates and senators to ask them to support good jobs, a stronger economy and revitalized communities throughout Maryland by supporting House Bill 518! Your voice makes a difference!”

Competing bills, including House Bill 1052 that would roll back alcohol legislation, also remain active.

Hillyer, who testified before the House Economic Matters Committee in favor of HB 518, emailed a statement on Monday.

“Every Marylander who cares about jobs, good beer and good business should be calling their legislators to support the Reform on Tap Act of 2018, HB 518, and to oppose HB 1052,” she said.

“Right now, Maryland ranks 47th in the United States in the economic impact of craft beer per capita. If the legislature is successful in changing our laws to be one of the most supportive in the nation for the craft brewing industry, we can bring more breweries to Maryland, allow the expansion of existing breweries so these thriving Maryland breweries can stay in our state, and we will attract more millennials to visit, live and work here.

“Our surrounding states are far better with their economic impact of craft beer per capita. Virginia ranks 36th, Pennsylvania ranks 4th and D.C. ranks 11th. When you consider that 67 percent of every dollar spent on local craft beer stays local, more local breweries and more local beer sales in bars, restaurants, and liquor stores means more money that stays local.

“Then when you see that almost half of all travelers visit at least one brewery when they travel and craft beer drinkers visit just over two, you begin to see that craft breweries influence tourism and even craft beer drinkers visit far more bars and restaurants than they do breweries when they travel. More tourism means more money for everybody in our region.

“This issue should not be a fight between distributors and breweries. More breweries and brewery expansions mean more money for distributors, union workers, and retailers as well as more jobs for everybody. In Maryland one brewery job supports 8.4 jobs in wholesale and retail. In Virginia, that number is 15.2 jobs, because the legislative environment is far more supportive of craft breweries.

“This legislation is not a threat to distributors that support their craft beer partners. Craft beer is gaining market share and ‘big beer’ is declining. Production breweries can’t afford to distribute their own beer and that’s what the distributors do. In the District of Columbia, where breweries do not have to have distributors to sell their beer, every production brewery has a distributor. They are partners in success as they will be in Maryland, even with the passage of HB 518.” “It was decided, I think, in the right way and I think it will be great opportunity for people to understand more about the election process,” Tuttle added. “And maybe some people will actually come and watch the vote count this year.”

Tuttle described himself as a “common sense kind of guy.”

“Someone once said ‘common sense is not very common,’” he said. “I’m a hard worker. I don’t mind doing research and studying to know what the issues are, and I feel like I can be a good team player and contribute to the association in that way.

“And I care about the Pines,” Tuttle continued.” I live here. We plan to spend the rest of our lives here, as far as we know.”

As of last Friday only one other candidate has registered. Three seats on the seven-member board will be on the ballot this year.

Ballots will be mailed in July and are due back by Aug. 8. Votes will be counted and announced on Aug. 10 and validated during the annual meeting on Aug. 11.