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Craft beer makers could distribute thousands of barrels under Md. bill

ANNAPOLIS — Change might be brewing for local craft beer enthusiasts, who could soon find more of their favorite ales at restaurants or stores.

Legislation now before state lawmakers would create a new license enabling microbreweries to distribute up to 3,000 barrels of their beer per year. Under current law, these businesses can serve their beer on-site or contract with distributors, but cannot deal directly with retailers.

Small brewers find their product can get drowned out during distribution, as wholesalers spend most of their energies on big brand names.

“It’s easy for them to get their kegs of beer pushed to the back of the bus,” Delegate Kelly Schulz said.

Schulz, R-District 4A, believes local brewers should have more control over marketing their beer, but past efforts to give it to them have been mired in disagreement among segments of the industry.

Gary Brooks, operations manager of the local microbrewery Barley and Hops, said Schulz has worked to bring everyone to the table and hammer out an agreement. Representing a compromise within the industry, Schulz’s bill this session would let microbrewers act as small-time wholesalers.

“It would give us the opportunity to build some excitement about our product and get it out in the marketplace,” Brooks said.

This system would also give the brewers more control over their pricing, he said.

Once a brewer’s operations grow to a certain size, the wholesalers would enter the picture to handle distribution, Schulz said.

The new license created by Schulz’s bill would be open to both breweries and microbreweries. There would be a $50 annual fee for the beer wholesaler’s license created under Schulz’s proposal, which was heard Monday in the House Economic Matters Committee. Both Schulz and Brooks said they were hopeful the bill would succeed this session.

Maryland wineries already enjoy permission to market some of their own product. Schulz said craft brewing, such as winemaking, is on the rise.

“It’s in everybody’s best interests to allow the small businesses to continue to grow without having to depend on the middleman,” she said.

There are 19 microbrewery licenses issued in Maryland, according to a legislative analysis.

Also on Monday, a proposal that would withdraw liquor license revenue from Frederick County municipalities cleared the state Senate. The bill would devote all the license revenue to liquor board operations.

Now, half of the license revenue goes to the county’s municipalities. This formula leaves the liquor board with the remaining half, but the funds have not been enough to cover the commission’s expenses in recent years. The county has made up the difference.

District 4 Sen. David Brinkley’s bill to change the way the license revenue is distributed passed the Senate on Monday night with 46 affirmative votes and no opposition. Schulz sponsored the same bill in the House, crafting the proposal after meeting with stakeholders in the interim between sessions.

The House version of the bill was heard in committee Monday along with a proposal to enlarge the liquor board from three to five members.

Don’t Settle for Student Loans to Pay for Online Education

Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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