Article 2B, Section 10-503
(a) If holder(s) of a license transfer less than 51% of the ownership interest in the licensed premises, the holder(s) must notify the Board of the change in ownership interest.
(b) Holder(s) of a license may transfer51% or more of the ownership interest in the licensed premises only if:
(1) a completed written alcoholic beverage license transfer application is filed with the Board before the proposed transfereebegins operation of the business. With the completed transfer application, the holder(s) must file aTransfer Permission Form which must be signed by all current licensees of record.
(2) All state taxes and local taxes owed by the transferor have been paid. No transfer of any license under the jurisdiction of the Board will be issued while there is outstanding any monies owed by the transferor to Montgomery County, the Department of Liquor Control, the Board of License Commissioners, or the Comptroller's Office of the State of Maryland; however, where the transferee gives the Board written certification, under oath subject to penalties of perjury, and attested to by a Notary Republic, that he or she assumes the debt of the transferor, the Board may approve the transfer application contingent upon payment of the debt on or before a date that the Board deems appropriate.
(3) The Board approves the transfer applicationafter public notice and hearing using the same criteria as used in a case of a new application.
(c) No application for a transfer of license which is to become effective prior to May 1st of the year in which the transfer is to take place will be processed by the Board after April 1st of that year.
(d)Upon receipt of notice of the Board's approval of a transfer of license, the transferee must within thirty (30) days of the date of said notice:
(1) obtain a State food license;
(2) obtain a valid use and occupancy permit;
(3) obtain an approved bulk transfer permit;
(4) have all State taxes transferred to the transferee's name; and
(5) have the alcoholic beverage license transferred to the transferee's name.
(e) In the event a transfer application is denied, the existing license must immediately be returned to the Board, and the licensee and transferee must make arrangements for the removal of all alcoholic beverages from the premises, unless the licensee agrees to resume operations within ten (10) days after the denial.
(f) If the transferee, while operating the licensed premises under the transferor's alcoholic beverage license, fails to file a completed alcoholic beverage transfer application with the Board, a 48-hour notice to file a transfer application may be issued. If the completed transfer application is not filed within the 48 hour time period, a cease alcoholic beverage sales order may be issued to the facility. The cease sales order will remain in effect until a completed transfer application is filed.
(g) If a licensee is charged with a violation during the transfer interim period (after a new owner/transferee has taken over the business but before the scheduled date for the hearing on the transfer application), a cease alcoholic beverage sales order may be issued by the Board to remain in effect until a show cause hearing on the violationis held, the transfer hearing is held, or the Board rescinds the cease sales order.
