§ 15-207. Profits and reserves

   (a) Generally. -- Profits and reserves shall be accounted for as follows:

(b) Caroline County. -- Repealed.

(b-1) Garrett County. -- In Garrett County all net profits arising from the operation of the dispensaries shall be first applied towards the payment of any and all sums advanced to or borrowed by the Liquor Control Board. After such sums have been paid, the Board shall be authorized to create and maintain a reserve fund to provide adequate working capital and to meet any losses that may be sustained by the Board in the operation of the dispensaries, all net profits in excess of the above shall belong to and be paid over to the County Commissioners of Garrett County at such times as the Garrett County Liquor Control Board shall, in their discretion, deem appropriate, but all accumulated profits, if any, shall be paid to the County Treasurer on February 1 and September 1 of every year.

(c) Harford County. -- Repealed.

(d) Kent County. -- Repealed.

(e) Montgomery County. -- All moneys derived from the sale of alcoholic beverages shall be deposited in a bank or banks located within Montgomery County in the name of Montgomery County, Maryland, and such money shall be disbursed by the Director of Finance in the same manner as other county funds. There shall be an adequate balance of working capital within the county's liquor control fund as determined by the director of the Department of Liquor Control and the Director of Finance and shall be subject to the approval of the County Executive. The amount of the working capital shall be adequate to provide for the continued operation of the dispensary system. The net profits derived from the sale of alcoholic beverages shall be applied in the first instance toward the payment of current interest and retirement charges on such notes, certificates of indebtedness and/or bonds as may be issued by the County Council for the purpose of raising funds for the establishment and operation of the dispensary system. Secondly, the net proceeds shall be applied to the maintenance of adequate working capital. Thirdly, the balance of the net proceeds shall be deposited as general funds of Montgomery County.

(f) Somerset County. --

   (1) All net profits derived from the operation of the dispensaries in Somerset County shall be applied toward the repayment of any money advanced to or borrowed by the Liquor Control Board.

   (2) After the repayment of the money specified under paragraph (1) of this subsection, the Board may maintain a reserve fund not to exceed $ 150,000 for the following purposes:

      (i) To provide adequate working capital; and

      (ii) To meet any losses sustained by the Board in the operation of the dispensaries.

   (3) From the reserve fund, each county dispensary shall receive an amount as follows:

      (i) The dispensary in Crisfield, up to $ 50,000;

      (ii) The dispensary in the West Princess Anne election district, up to $ 50,000; and

      (iii) The dispensary in the Dublin election district, up to $ 50,000.

   (4) (i) Twenty-five percent of all net proceeds generated by the dispensaries in Crisfield and in the West Princess Anne election district, in excess of those proceeds required for the maintenance of the reserve fund, shall be remitted to the City of Crisfield and Town of Princess Anne on or before June 1st of each year, to be divided equally.

      (ii) The remaining 75 percent of all those net proceeds generated by the dispensaries specified in subparagraph (i) of this paragraph shall be remitted to the County Commissioners of the county on or before May 1st of each year.

      (iii) One hundred percent of all net proceeds generated by the dispensary in the Dublin election district in excess of those proceeds required for maintenance of the reserve fund shall be remitted to the Somerset County Commissioners on or before May 1 of each year.

(g) Wicomico County. --

   (1) This subsection applies only in Wicomico County.

   (2) All net profits arising from the operation of the dispensaries shall be first applied towards the payment of any and all sums advanced to or borrowed by the Liquor Control Board.

   (3) After the sums have been paid, the Liquor Control Board shall be authorized to create and maintain, subject to the approval of the Wicomico County Council, a reserve fund to provide adequate working capital and to meet any losses that may be sustained by the Liquor Control Board in the operation of the dispensaries.

   (4) Any remaining net profits shall be paid to the county on January 1, April 1, August 1, and October 1 of each year.

(h) Worcester County. --

   (1) This subsection applies only in Worcester County.

   (2) (i) All net profits arising from the operation of these dispensaries are first applied towards the payment of any and all sums advanced to or borrowed by the Liquor Control Board that are currently due and owing.

      (ii) After these sums are paid, the Board is authorized to create and maintain a reserve fund not to exceed $ 400,000.

      (iii) The reserve fund is maintained to provide adequate working capital and to meet any losses that may be sustained by the Board in the operation of these dispensaries.

   (3) Fifty percent of all net profits in excess of the reserve fund shall be paid to the County Commissioners of Worcester County on or before June 1 each year. The remaining 50 percent shall be paid on or before June 1 each year to the mayors and city councils of Berlin, Ocean City, Pocomoke City, and Snow Hill, and to all homeowners associations that oversee a housing development in which a liquor dispensary has been established in accordance with § 15-203(f) of this subtitle, in proportion to the net profits on total sales of the dispensaries situated in each of these municipalities and homeowners associations. For purposes of calculating the municipalities' share and if the County Commissioners consent to it for each municipality, a radius of 2 miles outside of the municipal boundaries shall be considered as being within the corporate limits. In the rural areas outside of the 2-mile radius of those municipalities, the net profits shall go to the general funds of Worcester County.

   (4) (i) The amounts paid to the mayors and city councils of Berlin, Ocean City, Pocomoke City, and Snow Hill shall be used for general municipal purposes.

      (ii) The amounts paid to the homeowners associations shall be used for the benefit of the special police forces of the housing developments in which a liquor dispensary has been established.

HISTORY: An. Code, 1951, § 156; 1947, ch. 501, § 148; 1949, ch. 92, § 145 (c); ch. 299, § 145 (e); 1951, ch. 54, § 145 (c); ch. 633, § 145 (d); 1953, chs. 76, 193; 1955, ch. 361; 1959, ch. 223; 1961, ch. 155; ch. 615, § 1; ch. 701; 1965, ch. 140; 1966, ch. 76; 1967, ch. 758; 1968, chs. 98, 298, 441; 1970, ch. 469; ch. 633, § 2; 1971, ch. 689; 1972, ch. 592; 1973, ch. 854; 1974, chs. 276, 800; 1975, ch. 92; 1976, ch. 743, § 1; 1977, chs. 42, 230; 1978, ch. 956; 1979, ch. 742; 1982, ch. 24; 1985, ch. 77; 1988, ch. 413; 1989, ch. 5, § 15; 1991, ch. 236; 1994, ch. 650; ch. 661, § 2; 1995, ch. 3, § 1; ch. 236; 1996, ch. 10, § 1; 1997, ch. 424, § 1-3; 1999, ch. 96; 2001, ch. 29, § 6; 2004, chs. 182, 234; 2005, chs. 28, 162.