The Board may restrict the number of licenses in a specified area in the county to the existing number of licenses in that area or to any other number of licenses that the Board considers appropriate. Before the number of licenses in a specified area is restricted, the Board shall conduct a hearing in accordance with subsection (b) of this section. A hearing on a proposed restriction of the number of licenses in a specified area shall be advertised in the manner required for the issuance of a new license. If, after taking testimony for and against restricting the number of licenses in a specified area, the Board decides to order the restriction, the Board: shall determine the boundaries of the area; and may    prohibit the issuance of additional licenses or establish the number of additional licenses to be issued in the area, if the Board determines that the area has: sufficient licensed premises to accommodate the public; become so saturated with licensed premises that special policing is required and traffic hazards are created; or changed character so that the existing number of licensed premises is inconsistent with the current use of the area, and an increase in the number of licensed premises will unduly disturb the peace of residents. The Board may restrict the number of licenses in a specified area for a period between 1 and 4 years. After the period that the Board sets, the restrictions shall end unless the Board holds another hearing and further restricts the number of licenses. The Board shall conduct a hearing on restricting the number of licenses in a specified area if the Board receives a petition that: requests the restriction; designates the specific area to be restricted; and is signed by at least 25 individuals who are property owners and registered voters of the precinct in which the proposed restricted area is located.

In this section, “assessment district” means a tax assessment district: established by the county; and shown on the official map adopted by the County Council titled “Tax Assessment Districts, 2005”. Subject to subsection (c) of this section, the Board may issue a Class A (off–sale), Class B (off–sale), or Class D (off–sale) license based on its determination of whether the license is necessary to accommodate the public. If the application is for a Class A (off–sale) or Class D (off–sale) license, the Board may not issue the license if: the establishment for which the license would be issued is located in an assessment district in which the ratio of off–sale licenses per individual exceeds one for every 3,500 individuals; or the issuance of the license would cause the ratio of off–sale licenses per individual in an assessment district to exceed one for every 3,500 individuals. Subsection (c) of this section does not apply: to the transfer or renewal of a license that was issued on or before July 1, 2025; in the 6th tax assessment district; to an application for an on–site consumption permit under § 2–207 of this article by an applicant that holds a Class 5 brewery license; or to an application for a license filed on or after January 1, 2023, and approved by the Board before July 1, 2025. The population of each assessment district is to be determined by: the latest federal census; or estimates prepared by the Anne Arundel County Office of Planning and Zoning. The Board may not approve the transfer of a Class A (off–sale) license or Class D (off–sale) license: to a location outside the assessment district in which the license was located on July 1, 2025; or if the license was not in existence as of July 1, 2025, to a location outside the assessment district in which the license was originally issued.

Except as provided in subsection (b) of this section, the Board may not issue a new license for an establishment whose entry is within 1,000 feet in a straight line from the entry of a place of worship or school. The prohibition against issuing a license in subsection (a) of this section does not apply to: the transfer of a license from the current license holder to a new license holder, unless the transfer would allow the sale of alcoholic beverages by another establishment within the 1,000–foot restriction; a nonprofit club or nonprofit organization; a restaurant that held a license at the time the restaurant was destroyed by fire, flood, windstorm, or other act of God, if a new place of worship or school has not been constructed within the 1,000–foot restriction; the issuance of a Class H beer and wine (on–sale) license or beer, wine, and liquor (on–sale) license; the issuance of a motel–restaurant complex or hotel–restaurant complex beer, wine, and liquor (on–sale) license; the issuance of a Class BLX (deluxe restaurant) (on–sale) beer, wine, and liquor license; the issuance of a gift basket permit; or the issuance of a Class B beer and wine (on–sale) license or Class B beer, wine, and liquor (on–sale) license for an establishment located within 1,000 feet of a school located at the Annapolis Mall. For an establishment that is within 1,000 feet of the grounds of a place of worship or school, the Board: may renew a license; may extend the area of the licensed premises; but may not change the operational classification of an existing license, unless the change is from a Class B, Class C, or Class D license to a Class H license.

The Board may not issue a Class H beer and light wine license: for use in conjunction with, on the site of, or to a restaurant in a bowling alley, billiard hall, or drugstore; or for use in an establishment with a door, an archway, an opening, or other passageway providing direct public access to a bowling alley, billiard hall, or drugstore.

A license holder may hold not more than 10 licenses of any class in accordance with this section. Of the licenses held by a license holder: not more than four licenses may be licenses in which the license holder holds a direct interest; and the remaining licenses may only be licenses in which the license holder holds an indirect interest, as evidenced by any of the following relationships involving the license holder and another license holder or the license holder and an applicant for a license: a common parent company; a franchise agreement; a licensing agreement; a concession agreement; membership by the license holder and the other person in a chain of businesses commonly owned and operated and so portrayed to the public; sharing of directors or stockholders or sharing of directors or stockholders of parent companies or subsidiaries; common direct or indirect sharing of profit from the sale of alcoholic beverages; sharing of a common trade name, trademark, logo, or theme; or except for hotels and motels, sharing of a mode of operation identifiable by the public. The Board may issue one Class B license, Class BLX license, or Class H license to a person for a restaurant located anywhere in the county. The Board may issue a second license to a license holder if: the license holder holds a Class B license that has a restriction prohibiting off–sales, a Class H license, or a Class BLX license; the license sought is a Class H license or a Class BLX license; and the restaurant for which the license is sought is located in: the Glen Burnie Urban Renewal Area; the Parole Town Center Growth Management Area; the Odenton Town Center Growth Management Area; the Baltimore–Washington International Thurgood Marshall Airport State Priority Funding Area, as designated by the county in accordance with § 6–301(f)(8) of the Economic Development Article; a shopping center with a gross area of at least 1,000,000 square feet that is zoned C3 General Commercial or MXD–C (Mixed Use Commercial) by the zoning article of the County Code; the Route 198 corridor, consisting of properties located within 500 feet of the right–of–way of Maryland Route 198, from Maryland Route 32 on the east to the Prince George’s County–Anne Arundel County line on the west; a community revitalization zone with a designation in the series “A” through “P”, inclusive, as shown on the map adopted by the County Council by Bill 97–01 of the county ordinances; the Severn Commercial District, consisting of properties designated as “commercial zoning” by the comprehensive rezoning maps adopted by the County Council and located on that portion of Maryland Route 174 west of Maryland Route 100 and east of the railroad right–of–way owned by the National Railroad Passenger Corporation (Parcel 117, Anne Arundel County Tax Map 29); the Edgewater/Mayo Commercial District, consisting of those properties that are designated “commercial zoning districts” on the comprehensive rezoning maps adopted by the County Council for the Edgewater/Mayo Small Area Planning District; the Pasadena Commercial District, consisting of those properties that are designated “commercial zoning areas”, including Lake Shore Crossing, Lake Shore Plaza, and the Mountain Marketplace Shopping Center on the comprehensive zoning maps adopted by the County Council for the Pasadena Small Area Planning District; or the area in Pasadena known as the Brumwell Property. The Board may issue a third license to a license holder if: the license sought is a Class BLX license; and the restaurant for which the license is sought is located in: the Glen Burnie Urban Renewal Area; the Parole Town Center Growth Management Area; the Odenton Town Center Growth Management Area; the Baltimore–Washington International Thurgood Marshall Airport State Priority Funding Area, as designated by the county in accordance with § 6–301(f)(8) of the Economic Development Article; a shopping center with a gross area of at least 1,000,000 square feet that is zoned C3 General Commercial or MXD–C (Mixed Use Commercial) by the zoning article of the County Code; the Route 198 corridor, consisting of properties located within 500 feet of the right–of–way of Maryland Route 198, from Maryland Route 32 on the east to the Prince George’s County–Anne Arundel County line on the west; a community revitalization zone with a designation in the series “A” through “P”, inclusive, as shown on the map adopted by the County Council by Bill 97–01 of the county ordinances; the Severn Commercial District, consisting of properties designated as “commercial zoning” by the comprehensive rezoning maps adopted by the County Council and located on that portion of Maryland Route 174 west of Maryland Route 100 and east of the railroad right–of–way owned by the National Railroad Passenger Corporation (Parcel 117, Anne Arundel County Tax Map 29); the Edgewater/Mayo Commercial District, consisting of those properties that are designated “commercial zoning districts” on the comprehensive rezoning maps adopted by the County Council for the Edgewater/Mayo Small Area Planning District; the Pasadena Commercial District, consisting of those properties that are designated “commercial zoning areas”, including Lake Shore Crossing, Lake Shore Plaza, and the Mountain Marketplace Shopping Center on the comprehensive zoning maps adopted by the County Council for the Pasadena Small Area Planning District; or the area in Pasadena known as the Brumwell Property. The Board may issue a fourth, fifth, sixth, seventh, eighth, ninth, or tenth license to a license holder if the license sought is a Class BLX license. The restaurant for which the license is sought may be located anywhere in the county. Except as provided in paragraph (2) of this subsection, a license that was issued on or before June 30, 2006, and in which a license holder holds a direct interest or an indirect interest shall be counted against the maximum number of 10 licenses that the license holder may hold under this section but is exempt from the restrictions under subsections (b) through (e) of this section. A Class H license that was issued in the period beginning on March 14, 2005, and ending on December 1, 2005, may not be counted against the maximum number of 10 licenses that the license holder may hold under this section. The Board shall adopt regulations to carry out this section.

In this section the following words have the meanings indicated. “Capital investment” means amounts paid for the acquisition of property: for a useful life greater than 1 year; or for a permanent improvement or betterment of the property that has a useful life greater than 1 year. “Cost of land” includes: the purchase price, taxes and fees incidental to the purchase, and costs related to obtaining appropriate zoning and licensing; the cost of site grading, preparation, paving, sidewalks, gutters, curbs, and landscaping; and the cost of the construction and installation of all utilities to the exterior of the building shell. “Cost of the building shell” includes the cost attributable to a structure with a roof, sidewalls, doors, and windows completely enclosed and weatherproofed on a slab or other subflooring. The Board may issue a 7–day Class BLX deluxe restaurant on–sale beer, wine, and liquor license. The license may only be used in an establishment that: qualifies as a restaurant under the regulations of the Board; has a minimum seating capacity of 100 individuals for dining; has a cocktail lounge or bar area seating capacity not exceeding 25% of the seating capacity for dining; has parking facilities to accommodate a minimum of 75 vehicles; and has a minimum capital investment by the applicant for the license of $800,000, exclusive of the cost of the land and buildings. If an applicant for the license purchases an existing building, the capital investment attributable to the cost of the building shell will be based on the fair market value of the structures for which the cost of the building shell was incurred, determined at the time of purchase. The capital investment, excluding land and building shell, shall also be evaluated at the fair market value at the time of purchase. If the premises are leased, the rent paid for the land shall be considered a cost of land and any rent paid for a building shall be considered a cost of the building shell. The license may not be issued for use in an establishment that is a fast–food style restaurant. A license holder may exercise the privileges of sale under a Class BLX license during the same hours and days as those for a Class B on–sale beer, wine, and liquor license in the county. This subsection does not apply to a transfer of license holders for the same premises or a renewal of a Class BLX license. A Class BLX license may not be transferred from the location site of the first issuance of the license. The annual license fee is $1,200. The Board shall adopt regulations to carry out this section.

Subject to paragraph (2) of this subsection, the Board may issue: a second license, if the second license is any Class H license, to: a holder of any Class B license that has a restriction prohibiting sales for consumption off the premises; or a holder of any Class H license; or not more than four additional licenses, if each additional license is a Class H beer and light wine license, to: a holder of a Class B beer and light wine license that has a restriction prohibiting sales for consumption off the premises; or a holder of a Class H beer and light wine license. At least one restaurant for which the Class H license under paragraph (1) of this subsection is sought or to which the original Class B or Class H license applies must be in: a suburban community center designated by the county in accordance with Bill Nos. 36–96 and 70–96 of the county ordinances; or one of the following locations as the location existed on October 1, 1999: the Glen Burnie Urban Renewal Area; the Parole Town Center Growth Management Area; the Odenton Town Center Growth Management Area; the Baltimore–Washington International Thurgood Marshall Airport State Priority Funding Area, as designated by the county in accordance with § 6–301(f)(8) of the Economic Development Article; a shopping center with a gross area of at least 1,000,000 square feet that is zoned C3 General Commercial by the zoning article of the County Code; or the Route 198 corridor, consisting of properties located within 500 feet of the right–of–way of Maryland Route 198, from Maryland Route 32 on the east to the Prince George’s County–Anne Arundel County line on the west. The Board may not issue more than 60 Class H licenses under this section. Subject to paragraph (2) of this subsection, the Board may issue a maximum of: two licenses to a person in the county if each license is a Class H beer, wine, and liquor license; or five licenses to a person in the county if each license is a Class H beer and light wine license. At least one restaurant for which one of the Class H licenses under paragraph (1) of this subsection is sought must be in: a suburban community center designated by the county in accordance with Bill Nos. 36–96 and 70–96 of the county ordinances; or one of the following locations as the location existed on October 1, 1999: the Glen Burnie Urban Renewal Area; the Parole Town Center Growth Management Area; the Odenton Town Center Growth Management Area; the Baltimore–Washington International Thurgood Marshall Airport State Priority Funding Area, as designated by the county in accordance with § 6–301(f)(8) of the Economic Development Article; a shopping center with a gross area of at least 1,000,000 square feet that is zoned C3 General Commercial by the zoning article of the County Code; or the Route 198 corridor, consisting of properties located within 500 feet of the right–of–way of Maryland Route 198, from Route 32 on the east to the Prince George’s County–Anne Arundel County line on the west. A franchisor may not have a direct ownership interest, as defined by the Board, in more than five licenses under this section. The Board shall adopt regulations: to carry out this section; and that define “direct ownership interest” for the purposes of subsection (d) of this section.