<section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-101" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <text>This part applies statewide and to each permit issued under this subtitle.</text> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-102" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <level label="a"> <text>A person shall apply to the Executive Director for a permit under this subtitle on the form the Executive Director provides.</text> </level> <level label="b"> <text>The Executive Director shall adopt regulations for permits under this subtitle regarding:</text> <level label="1"> <text>the procedure for issuing permits;</text> </level> <level label="2"> <text>the purchase of alcoholic beverages; and</text> </level> <level label="3"> <text>the exercise of the privileges granted under each type of permit.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-103" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <level label="a"> <text>On receipt of an application, the Executive Director shall order an investigation of:</text> <level label="1"> <text>the applicant;</text> </level> <level label="2"> <text>the business to be operated; and</text> </level> <level label="3"> <text>the statements presented in the permit application.</text> </level> </level> <level label="b"> <text>On completion of the investigation, the Executive Director shall deny the permit application if in the judgment of the Executive Director:</text> <level label="1"> <text>the applicant:</text> <level label="i"> <text>is not fit to receive the permit;</text> </level> <level label="ii"> <text>made a material false statement in the application; or</text> </level> <level label="iii"> <text>committed fraud in connection with the application; or</text> </level> </level> <level label="2"> <text>there are other reasons that the permit should not be issued.</text> </level> </level> <level label="c"> <text>If the Executive Director does not find cause to deny the permit, the Executive Director shall approve the application and issue the permit.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-104" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <text>A permit holder may not accept or deliver alcoholic beverages except as provided in this article and the Tax – General Article.</text> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-105" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <text>Except as otherwise provided in this subtitle, a permit issued under this subtitle is an annual permit that expires on October 31 following the date of its issue.</text> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-106" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <text>The Executive Director may restrict, suspend, or revoke a permit issued under this subtitle.</text> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-107" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <text>A license or permit is not required for the manufacture of family wine, beer, or cider that is:</text> <level label="1"> <text>exclusively for home consumption, competition, or use in a licensed national family wine exhibition; and</text> </level> <level label="2"> <text>not for sale.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-110" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <text>This part applies statewide.</text> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-111" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <level label="a"> <text>There is a bulk transfer permit.</text> </level> <level label="b"> <text>The Executive Director may issue the permit to a person:</text> <level label="1"> <text>whose alcoholic beverage license has expired or otherwise been discontinued; and</text> </level> <level label="2"> <text>who applies for a permit within 60 days after the last day on which the license was effective.</text> </level> </level> <level label="c"> <level label="1"> <text>The permit authorizes the holder, with or without consideration, to transfer to a license holder the alcoholic beverages stock on hand on the day of the transfer by sale, gift, inheritance, assignment, or otherwise.</text> </level> <level label="2"> <text>The transfer of the alcoholic beverages stock to the license holder shall be completed in the period covered by the permit.</text> </level> </level> <level label="d"> <level label="1"> <text>The permit:</text> <level label="i"> <text>covers only a specific transaction; and</text> </level> <level label="ii"> <text>expires 10 days after it is issued.</text> </level> </level> <level label="2"> <text>If the permit holder shows an undue burden, the Executive Director may grant a reasonable extension of the permit.</text> </level> </level> <level label="e"> <text>The permit fee is $200.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-112" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <level label="a"> <text>There is a change of domicile permit.</text> </level> <level label="b"> <text>Subject to subsection (c) of this section, the permit authorizes the holder, when changing domicile to the State, to transport into the State the permit holder’s private stock of alcoholic beverages for personal consumption.</text> </level> <level label="c"> <text>The permit holder may not transport into the State the permit holder’s private stock of alcoholic beverages for personal consumption unless the taxes imposed under § 5–102 of the Tax – General Article have been paid.</text> </level> <level label="d"> <text>The permit fee:</text> <level label="1"> <text>is $5; and</text> </level> <level label="2"> <text>covers only a specific transaction.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-113" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <level label="a"> <text>There is an individual storage permit.</text> </level> <level label="b"> <text>The permit authorizes the holder to establish a warehouse to store alcoholic beverages in which title to the alcoholic beverages is vested in the permit holder.</text> </level> <level label="c"> <text>In Anne Arundel County and Baltimore County, a retailer is required to have written approval from the Board of License Commissioners before applying to the Executive Director for the permit.</text> </level> <level label="d"> <text>The permit fee is $50.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-114" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <level label="a"> <text>There is an individual transportation permit.</text> </level> <level label="b"> <text>The permit authorizes the holder to transport the permit holder’s private stock of alcoholic beverages from or en route through the State without payment of excise taxes imposed under § 5–102 of the Tax – General Article if the alcoholic beverages are not for use or delivery in the State.</text> </level> <level label="c"> <level label="1"> <text>The Executive Director shall provide a means of identification for each vehicle authorized under the permit.</text> </level> <level label="2"> <text>The identification shall be kept in or on the vehicle at all times when the vehicle transports alcoholic beverages.</text> </level> </level> <level label="d"> <level label="1"> <text>The permit fee is $10.</text> </level> <level label="2"> <text>The fee for the vehicle identification required under subsection (c) of this section is $10 for each vehicle.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-115" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <level label="a"> <text>There is a nonresident storage permit.</text> </level> <level label="b"> <text>The Executive Director may issue the permit to a nonresident dealer permit holder.</text> </level> <level label="c"> <text>The permit authorizes the holder to store alcoholic beverages in a licensed public storage warehouse in the State for subsequent shipment to:</text> <level label="1"> <text>a holder of a wholesaler’s license;</text> </level> <level label="2"> <text>a holder of a manufacturer’s license; or</text> </level> <level label="3"> <text>a person outside the State.</text> </level> </level> <level label="d"> <text>The permit holder may not ship alcoholic beverages unless:</text> <level label="1"> <text>the invoice for the shipment originates from the out–of–state permit address of the permit holder; and</text> </level> <level label="2"> <text>the holder:</text> <level label="i"> <text>ships the alcoholic beverages from the public storage warehouse in the State to the purchaser; and</text> </level> <level label="ii"> <text>concurrently transmits the invoice to the purchaser.</text> </level> </level> </level> <level label="e"> <level label="1"> <text>Each month the permit holder shall file a report of its storage and shipping activities with the Executive Director.</text> </level> <level label="2"> <text>The report shall be filed in the manner and on the form that the Executive Director provides.</text> </level> </level> <level label="f"> <text>The permit fee is $500.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-116" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <level label="a"> <text>There is a private bulk sales permit.</text> </level> <level label="b"> <text>The Executive Director may issue the permit to an individual who:</text> <level label="1"> <text>is at least 21 years old;</text> </level> <level label="2"> <text>is a resident of the State;</text> </level> <level label="3"> <text>files with the Executive Director an inventory of all alcoholic beverages to be sold; and</text> </level> <level label="4"> <text>certifies that all alcoholic beverages to be sold:</text> <level label="i"> <text>have been acquired legally and transported into the State in accordance with this article; and</text> </level> <level label="ii"> <text>are owned by the individual at the time of application.</text> </level> </level> </level> <level label="c"> <text>The permit authorizes the holder to sell the permit holder’s private stock of alcoholic beverages to a person in accordance with this section.</text> </level> <level label="d"> <text>A sale under the permit may:</text> <level label="1"> <text>be made by:</text> <level label="i"> <text>the permit holder; or</text> </level> <level label="ii"> <text>an unlicensed agent or auction company acting on behalf of the permit holder;</text> </level> </level> <level label="2"> <text>take place on:</text> <level label="i"> <text>a premises not licensed under this article; or</text> </level> <level label="ii"> <text>a private room of an on–sale retail license holder; and</text> </level> </level> <level label="3"> <text>be made to:</text> <level label="i"> <text>a State resident who is at least 21 years old;</text> </level> <level label="ii"> <text>a retail dealer who holds the proper class of license; or</text> </level> <level label="iii"> <text>a person outside the State, if the person may ship alcoholic beverages purchased under the permit to the person’s home state or state of ultimate destination.</text> </level> </level> </level> <level label="e"> <level label="1"> <text>A permit expires 60 days after it is issued.</text> </level> <level label="2"> <text>A person may not be issued more than two permits in a calendar year.</text> </level> </level> <level label="f"> <text>The permit fee:</text> <level label="1"> <text>is $25; and</text> </level> <level label="2"> <text>covers the sale of a specific inventory of alcoholic beverages.</text> </level> </level> <level label="g"> <text>The Executive Director may adopt regulations regarding any activity relating to the permit, including record–keeping and reporting requirements.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-117" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <level label="a"> <text>There is a public storage permit.</text> </level> <level label="b"> <text>The permit authorizes the holder to operate a warehouse to store alcoholic beverages for the accounts of other persons.</text> </level> <level label="c"> <text>The permit fee is $75.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-118" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <level label="a"> <text>There is a public storage and transportation permit.</text> </level> <level label="b"> <level label="1"> <text>The permit authorizes the holder to operate a warehouse to:</text> <level label="i"> <text>store alcoholic beverages for the accounts of other persons; and</text> </level> <level label="ii"> <text>transport alcoholic beverages for the accounts of other persons into, in, or out of the State.</text> </level> </level> <level label="2"> <text>The permit holder may use the permit for storage or transportation.</text> </level> </level> <level label="c"> <level label="1"> <text>The Executive Director shall provide a means of identification for each vehicle authorized under the permit.</text> </level> <level label="2"> <text>The identification shall be kept in or on the vehicle at all times when the vehicle transports alcoholic beverages.</text> </level> </level> <level label="d"> <level label="1"> <text>The permit fee is $200.</text> </level> <level label="2"> <text>The fee for the vehicle identification required under subsection (c) of this section is $10 for each vehicle.</text> </level> </level> <level label="e"> <text>A license holder or permit holder is not required to have the permit to deliver alcoholic beverages that the license holder or permit holder may otherwise acquire, store, sell, or use.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-119" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <level label="a"> <text>There is a public transportation permit.</text> </level> <level label="b"> <text>The permit authorizes the holder to operate a warehouse to transport alcoholic beverages for the accounts of other persons into, in, or out of the State.</text> </level> <level label="c"> <level label="1"> <text>The Executive Director shall provide a means of identification for each vehicle authorized under the permit.</text> </level> <level label="2"> <text>The identification shall be kept in or on the vehicle at all times when the vehicle transports alcoholic beverages.</text> </level> </level> <level label="d"> <level label="1"> <text>The permit fee is $75.</text> </level> <level label="2"> <text>The fee for the vehicle identification required under subsection (c) of this section is $10 for each vehicle.</text> </level> </level> <level label="e"> <text>A license holder or permit holder is not required to have the permit to deliver alcoholic beverages that the license holder or permit holder may otherwise acquire, store, sell, or use.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-122" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <text>This part applies statewide.</text> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-123" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <level label="a"> <text>There is an import–export permit.</text> </level> <level label="b"> <level label="1"> <text>The permit authorizes the holder to import alcoholic beverages into the State for storage in public warehouses for subsequent shipment outside the State.</text> </level> <level label="2"> <text>The permit holder may not import alcoholic beverages into the State for sale, consignment, or delivery to a person in the State.</text> </level> </level> <level label="c"> <text>A person is not required to have the permit if the alcoholic beverages are:</text> <level label="1"> <text>not for sale, consignment, or delivery to a person in the State;</text> </level> <level label="2"> <text>stored in a warehouse subject to a public bond; and</text> </level> <level label="3"> <text>subject to a customs bond.</text> </level> </level> <level label="d"> <text>The permit fee is $75.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-124" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <level label="a"> <text>There is a nonresident dealer’s permit.</text> </level> <level label="b"> <text>The Executive Director may issue the permit to:</text> <level label="1"> <text>a bottler, brewer, distiller, manufacturer, rectifier, vintner, or winery;</text> </level> <level label="2"> <text>a sales agent of a person described in item (1) of this subsection, on presentation of proof of the sales agency relationship to the Executive Director;</text> </level> <level label="3"> <text>an importer of beer, wine, or distilled spirits produced outside the United States that purchases directly from the brand owner or from a sales agent of a person described in item (1) of this subsection that:</text> <level label="i"> <text>is authorized by the brand owner to sell in the State; and</text> </level> <level label="ii"> <text>provides proof of the sales agency relationship to the Executive Director; or</text> </level> </level> <level label="4"> <text>an American sales agent of an importer described in item (3) of this subsection, on presentation of proof of the sales agency relationship to the Executive Director.</text> </level> </level> <level label="c"> <text>The Executive Director may not issue the permit to a person that:</text> <level label="1"> <text>is a holder of a wholesaler’s license or retail license;</text> </level> <level label="2"> <text>has an interest in a wholesaler licensed under this article; or</text> </level> <level label="3"> <text>has an interest in any retail license holder.</text> </level> </level> <level label="d"> <text>The permit authorizes the holder to sell beer, wine, or distilled spirits to license holders authorized to receive the beverages.</text> </level> <level label="e"> <text>The permit holder may sell, consign, or deliver from a location outside the State to a person in the State that is authorized to receive them those beers, wines, or distilled spirits that the permit holder:</text> <level label="1"> <text>bottles, distills, imports, manufactures, produces, or rectifies from outside the United States; or</text> </level> <level label="2"> <text>represents as the designated sales agent.</text> </level> </level> <level label="f"> <text>A person who is a bottler, a brewer, a distiller, an importer, a manufacturer, a rectifier, a vintner, or a winery or the designated agent of the person may not discriminate directly or indirectly in price between license holders.</text> </level> <level label="g"> <text>Notwithstanding any other provision of this subtitle, the permit holder may continue to sell, consign, or deliver a brand of beer in the State from outside the State:</text> <level label="1"> <text>to a person in the State who may receive the beer under this article; and</text> </level> <level label="2"> <text>until the person who is the brewer or importer of that brand of beer or the person’s designated sales agent preempts the sales territory by appointing a franchise license holder in accordance with the Beer Franchise Fair Dealing Act under Title 5, Subtitle 1 of this article.</text> </level> </level> <level label="h"> <text>Notwithstanding any other provision of this subtitle, a permit is not required to make direct sales and shipments to a wholesaler in the State from a location outside the continental limits and possessions of the United States.</text> </level> <level label="i"> <text>The permit fee is $200.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-125" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <level label="a"> <text>There is a resident dealer’s permit.</text> </level> <level label="b"> <level label="1"> <text>Subject to paragraph (2) of this subsection, the Executive Director may issue the permit to:</text> <level label="i"> <text>an importer of beer, wine, or distilled spirits produced outside the United States that:</text> <level label="1"> <text>purchases directly from the brand owner or from a sales agent of a bottler, brewer, distiller, manufacturer, rectifier, vintner, or winery;</text> </level> <level label="2"> <text>is authorized by the brand owner to sell in the State; and</text> </level> <level label="3"> <text>provides proof of the sales agency relationship to the Executive Director; or</text> </level> </level> <level label="ii"> <text>an American sales agent of an importer under item (i) of this paragraph, on presentation of proof of the sales agency relationship to the Executive Director.</text> </level> </level> <level label="2"> <text>An individual applicant, an applicant qualifying as a resident applicant for a corporation, or each applicant for a partnership is not eligible for the permit unless the individual is a resident of the State at the time the application is filed and remains a resident for the duration of time the permit is in effect.</text> </level> </level> <level label="c"> <text>The Executive Director may not issue the permit to a person that:</text> <level label="1"> <text>is a holder of a wholesaler’s license or retail license;</text> </level> <level label="2"> <text>has an interest in a wholesaler licensed under this article; or</text> </level> <level label="3"> <text>has an interest in any retail license holder.</text> </level> </level> <level label="d"> <text>The permit authorizes the holder to sell alcoholic beverages to:</text> <level label="1"> <text>a holder of a wholesaler’s license; or</text> </level> <level label="2"> <text>a person outside the State that the Executive Director authorizes to acquire the alcoholic beverages.</text> </level> </level> <level label="e"> <text>The permit holder may not own or operate a warehouse in the State.</text> </level> <level label="f"> <text>The permit fee is $200.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-126" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <level label="a"> <text>There is a solicitor’s permit.</text> </level> <level label="b"> <text>The permit holder may be a resident or a nonresident of the State.</text> </level> <level label="c"> <text>The permit authorizes the holder to promote, sell, or offer for sale beer, wine, or distilled spirits to holders of manufacturer’s, wholesaler’s, or retail licenses.</text> </level> <level label="d"> <level label="1"> <text>The permit holder:</text> <level label="i"> <text>may not contact consumers; and</text> </level> <level label="ii"> <text>subject to paragraph (2) of this subsection, may not sell, promote, or offer for sale alcoholic beverages to retail dealers, if employed by a resident dealer or a nonresident dealer.</text> </level> </level> <level label="2"> <text>The prohibition under paragraph (1)(ii) of this subsection does not apply if the account is for a State wholesaler or manufacturer that is a distributor for the products of the employer of the permit holder.</text> </level> </level> <level label="e"> <text>The permit fee is $50.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-129" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <text>This part applies statewide.</text> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-130" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <level label="a"> <text>There is a manufacturer off–site permit.</text> </level> <level label="b"> <text>The Executive Director may issue the permit to a holder of any of the following licenses who meets the requirements of this section:</text> <level label="1"> <text>Class 1 distillery license;</text> </level> <level label="2"> <text>Class 3 winery license;</text> </level> <level label="3"> <text>Class 4 limited winery license;</text> </level> <level label="4"> <text>Class 5 brewery license;</text> </level> <level label="5"> <text>Class 7 micro–brewery license;</text> </level> <level label="6"> <text>Class 8 farm brewery license; or</text> </level> <level label="7"> <text>Class 9 limited distillery license.</text> </level> </level> <level label="c"> <level label="1"> <text>During an event listed in subsection (e) of this section, the permit holder may:</text> <level label="i"> <text>provide samples and sell products to a consumer that are manufactured by the permit holder under the permit holder’s license;</text> </level> <level label="ii"> <text>provide to a consumer a sample that may not exceed:</text> <level label="1"> <text>1 fluid ounce for each offering of wine;</text> </level> <level label="2"> <text>1 fluid ounce for each offering of beer; or</text> </level> <level label="3"> <level label="0"> <text>25 fluid ounce for each offering of liquor;</text> </level> </level> </level> <level label="iii"> <text>sell to a consumer for on–premises consumption; and</text> </level> <level label="iv"> <text>subject to paragraph (2) of this subsection, sell to a consumer for off–premises consumption.</text> </level> </level> <level label="2"> <text>The holder of a Class 5 brewery license, a Class 7 micro–brewery license, or a Class 8 farm brewery license may sell to each consumer at an approved off–site permitted event under the permit up to 288 ounces of beer for off–premises consumption.</text> </level> </level> <level label="d"> <text>The permit holder shall have present at least one individual who is certified by an approved alcohol awareness program while providing samples or selling an alcoholic beverage during an event.</text> </level> <level label="e"> <text>The permit may be used:</text> <level label="1"> <text>at the following events:</text> <level label="i"> <text>a county agricultural fair;</text> </level> <level label="ii"> <text>the Maryland State Agricultural Fair;</text> </level> <level label="iii"> <text>a farmer’s market that is listed on the Farmer’s Market Directory of the Maryland Department of Agriculture; and</text> </level> <level label="iv"> <text>a nonprofit beer, wine, and liquor festival under § 2–131 of this subtitle; and</text> </level> </level> <level label="2"> <text>for not more than 32 additional events in 1 year that have an activity:</text> <level label="i"> <text>that has a primary purpose other than the sale and promotion of alcoholic beverages; or</text> </level> <level label="ii"> <text>for which the participation of the permit holder is secondary.</text> </level> </level> </level> <level label="f"> <text>The permit may not be used for more than nine events in 1 year at any individual location.</text> </level> <level label="g"> <text>An applicant for a permit shall complete an application on a form that the Executive Director authorizes.</text> </level> <level label="h"> <text>The permit holder shall notify the Executive Director of the permit holder’s intention to attend an event within a period of time that the Executive Director determines on the form that the Executive Director authorizes.</text> </level> <level label="i"> <text>The Executive Director may adopt regulations to require the permit holder to notify the local licensing board of the jurisdiction where the event is being held of the permit holder’s intention to attend the event.</text> </level> <level label="j"> <text>The annual permit fee is $100.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-131" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <level label="a"> <text>In this section, “off–site permit” includes:</text> <level label="1"> <text>a manufacturer off–site permit; and</text> </level> <level label="2"> <text>a retail off–site permit.</text> </level> </level> <level label="b"> <text>There is a nonprofit beer, wine, and liquor festival permit.</text> </level> <level label="c"> <text>The Executive Director may issue the permit to a nonprofit organization, as defined by § 501(c) of the Internal Revenue Code, that meets the requirements of this section.</text> </level> <level label="d"> <level label="1"> <text>The permit authorizes the permit holder to:</text> <level label="i"> <text>conduct a nonprofit beer, wine, and liquor festival for at least 1 day and not more than 3 consecutive days;</text> </level> <level label="ii"> <text>purchase beer, wine, and liquor at wholesale to:</text> <level label="1"> <text>provide to a consumer a sample that may not exceed:</text> </level> <level label="A"> <text>for beer, 4 fluid ounces for each offering;</text> </level> <level label="B"> <text>for wine, 1 fluid ounce for each offering; and</text> </level> <level label="C"> <text>for liquor, four samples of one–quarter of 1 fluid ounce for each offering; and</text> </level> <level label="2"> <text>sell to a consumer beer, wine, and liquor for on– and off–premises consumption; and</text> </level> </level> <level label="iii"> <text>contract with a holder of a retail off–site permit to operate a sampling and sales area.</text> </level> </level> <level label="2"> <text>The permit holder shall provide space at a nonprofit beer, wine, and liquor festival for holders of off–site permits.</text> </level> <level label="3"> <text>A holder of an off–site permit that attends a nonprofit beer, wine, and liquor festival may provide beer, wine, and liquor to a consumer in the same manner as the holder of the nonprofit beer, wine, and liquor festival permit.</text> </level> <level label="4"> <text>The permit holder may provide or sell at the nonprofit beer, wine, and liquor festival only alcoholic beverages provided by the permit holder or a holder of an off–site permit that is in attendance.</text> </level> </level> <level label="e"> <text>At all times during the nonprofit beer, wine, and liquor festival, the permit holder shall have present at least two agents, one of whom may be the permit holder, who are certified by an approved alcohol awareness program.</text> </level> <level label="f"> <level label="1"> <text>Not less than 30 days before the nonprofit beer, wine, and liquor festival, a person shall submit an application to the Executive Director.</text> </level> <level label="2"> <text>The application shall:</text> <level label="i"> <text>be on a form that the Executive Director provides;</text> </level> <level label="ii"> <text>state that the primary purpose of the nonprofit beer, wine, and liquor festival is to promote Maryland beer, wine, and liquor;</text> </level> <level label="iii"> <text>provide details of the nonprofit beer, wine, and liquor festival, including the location, dates, and times of operation; and</text> </level> <level label="iv"> <text>include appropriate evidence that the applicant has been given permission by the owner of the property where the nonprofit beer, wine, and liquor festival is to be held.</text> </level> </level> </level> <level label="g"> <text>Not less than 15 days before the nonprofit beer, wine, and liquor festival, the permit holder shall provide the Executive Director with a list of off–site permit holders that will attend.</text> </level> <level label="h"> <text>The permit fee is:</text> <level label="1"> <text>$100, to promote a single product category;</text> </level> <level label="2"> <text>$150, to promote two product categories; and</text> </level> <level label="3"> <text>$200, to promote three product categories.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-132" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <level label="a"> <text>There is a nonresident brewery permit.</text> </level> <level label="b"> <text>The Executive Director may issue the permit to a person that:</text> <level label="1"> <text>is licensed outside the State to engage in the manufacture of beer;</text> </level> <level label="2"> <text>produces in the aggregate from all of its locations not more than 22,500 barrels of beer annually; and</text> </level> <level label="3"> <text>does not hold a nonresident dealer’s permit.</text> </level> </level> <level label="c"> <level label="1"> <text>The permit authorizes the permit holder to sell and deliver not more than 3,000 barrels of the permit holder’s own beer annually from a location outside the State to a retail license holder or permit holder in the State authorized to acquire the beer.</text> </level> <level label="2"> <text>The permit holder shall comply with all the requirements of this article, the Tax – General Article, and the regulations of the Comptroller or Executive Director that apply to a holder of a Class 7 limited beer wholesaler’s license.</text> </level> </level> <level label="d"> <text>The annual permit fee is $50.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-132.1" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <level label="a"> <text>There is a nonresident distillery permit.</text> </level> <level label="b"> <text>The Executive Director may issue the permit to a person that:</text> <level label="1"> <text>is licensed outside the State to engage in the manufacture of liquor;</text> </level> <level label="2"> <text>produces in the aggregate from all of its locations not more than 100,000 gallons of liquor annually; and</text> </level> <level label="3"> <text>does not hold a nonresident dealer’s permit.</text> </level> </level> <level label="c"> <level label="1"> <text>The permit authorizes the permit holder to sell and deliver the permit holder’s own liquor from a location outside the State to a retail license holder or permit holder in the State authorized to acquire the liquor.</text> </level> <level label="2"> <text>The permit holder shall comply with all the requirements of this article, the Tax – General Article, and the regulations of the Comptroller or Executive Director that apply to a holder of a Class 8 limited liquor wholesaler’s license.</text> </level> </level> <level label="d"> <text>The annual permit fee is $100.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-135" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <level label="a"> <text>There is a nonresident winery permit.</text> </level> <level label="b"> <text>The Executive Director may issue the permit to a person that:</text> <level label="1"> <text>is licensed outside the State to engage in the manufacture of wine;</text> </level> <level label="2"> <text>produces not more than 27,500 gallons of its own wine annually; and</text> </level> <level label="3"> <text>does not hold a nonresident dealer’s permit under § 2–124 of this subtitle.</text> </level> </level> <level label="c"> <text>The permit authorizes the holder to sell and deliver its own wine from a location outside the State to a holder of a permit or retail license in the State authorized to acquire the wine.</text> </level> <level label="d"> <text>The permit holder shall comply with requirements that apply to a holder of a Class 6 limited wine wholesaler’s license under:</text> <level label="1"> <text>this article;</text> </level> <level label="2"> <text>the Tax – General Article; and</text> </level> <level label="3"> <text>the regulations of the Comptroller or the Executive Director.</text> </level> </level> <level label="e"> <text>The permit fee is $50.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-136" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <level label="a"> <text>There is a retail off–site permit.</text> </level> <level label="b"> <level label="1"> <text>The Executive Director may issue the permit to a holder of a license issued by a local licensing board:</text> <level label="i"> <text>that allows the license holder to sell alcoholic beverages to the public for off–premises consumption; and</text> </level> <level label="ii"> <text>other than a chain store.</text> </level> </level> <level label="2"> <text>The holder of a permit shall notify the local licensing board of the jurisdiction in which the off–site event will be held that the permit has been issued.</text> </level> </level> <level label="c"> <level label="1"> <text>A permit may be used only:</text> <level label="i"> <text>at not more than three farmers’ markets in the jurisdiction in which the local license has been issued, that are listed in the farmers’ market directory of the Maryland Department of Agriculture;</text> </level> <level label="ii"> <text>on invitation by a holder of a nonprofit beer, wine, and liquor festival permit, at the location of the permit, if the festival is located in the jurisdiction in which the local license has been issued or in an adjoining jurisdiction; and</text> </level> <level label="iii"> <text>during the hours of operation of the farmers’ market or the nonprofit beer, wine, and liquor festival.</text> </level> </level> <level label="2"> <text>A permit authorizes the holder to:</text> <level label="i"> <text>at a farmers’ market, offer and sell beer, wine, and liquor produced by State–licensed manufacturers to consumers for consumption off the licensed premises;</text> </level> <level label="ii"> <text>at a nonprofit beer, wine, and liquor festival, offer and sell beer, wine, and liquor to consumers for consumption on and off the licensed premises; and</text> </level> <level label="iii"> <text>provide at no charge samples of:</text> <level label="1"> <text>beer, not to exceed 4 fluid ounces;</text> </level> <level label="2"> <text>wine, not to exceed 1 fluid ounce; and</text> </level> <level label="3"> <text>liquor, not to exceed four samples that do not exceed one–quarter of 1 fluid ounce.</text> </level> </level> </level> </level> <level label="d"> <text>The fee is $100.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-137" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <level label="a"> <level label="1"> <text>In this section, “charitable organization” means an organization that:</text> <level label="i"> <text>is a benevolent, educational, philanthropic, humane, patriotic, religious, or eleemosynary organization that solicits or obtains contributions solicited from the public for charitable or benevolent purposes; and</text> </level> <level label="ii"> <text>is registered with the Secretary of State in accordance with Title 6, Subtitle 4 of the Business Regulation Article.</text> </level> </level> <level label="2"> <text>“Charitable organization” includes an office, a branch, a chapter, or a similar affiliated entity that has its principal place of business outside the State.</text> </level> <level label="3"> <text>“Charitable organization” does not include:</text> <level label="i"> <text>a political party, political committee, or political club;</text> </level> <level label="ii"> <text>a unit of the State government or a political subdivision of the State;</text> </level> <level label="iii"> <text>a fraternal organization;</text> </level> <level label="iv"> <text>a fire company;</text> </level> <level label="v"> <text>a rescue or ambulance squad; or</text> </level> <level label="vi"> <text>a police force or other law enforcement organization.</text> </level> </level> </level> <level label="b"> <text>There is a charity wine auction permit.</text> </level> <level label="c"> <text>The Executive Director may issue the permit to a charitable organization.</text> </level> <level label="d"> <text>The permit authorizes the holder to sell wine at public or private auction to a consumer through the solicitation and acceptance of bids.</text> </level> <level label="e"> <text>The permit is valid for 1 day.</text> </level> <level label="f"> <text>The permit may be granted for:</text> <level label="1"> <text>an unlicensed premises; or</text> </level> <level label="2"> <text>a Class B, Class C, or Class B–D–7 licensed premises.</text> </level> </level> <level label="g"> <level label="1"> <text>A charitable organization may be issued not more than one permit during a calendar year.</text> </level> <level label="2"> <text>A permit allows the holder to conduct one auction of wine during a calendar year.</text> </level> </level> <level label="h"> <level label="1"> <text>Subject to paragraph (2) of this subsection, the permit holder may receive wine for the auction from:</text> <level label="i"> <text>a holder of a wholesaler’s license;</text> </level> <level label="ii"> <text>a Class 3 or Class 4 winery;</text> </level> <level label="iii"> <text>a retail dealer;</text> </level> <level label="iv"> <text>an individual residing in the State; or</text> </level> <level label="v"> <text>a business entity in the State that is not licensed under this article.</text> </level> </level> <level label="2"> <text>The permit holder may receive commercially produced wine that is not authorized for distribution and sale in the State from:</text> <level label="i"> <text>a nonresident individual; or</text> </level> <level label="ii"> <text>a business entity that is located outside the State.</text> </level> </level> </level> <level label="i"> <level label="1"> <text>Wine that the permit holder receives from the following sources is subject to State tax under § 5–102 of the Tax – General Article:</text> <level label="i"> <text>a holder of a wholesaler’s license;</text> </level> <level label="ii"> <text>a Class 3 winery;</text> </level> <level label="iii"> <text>a Class 4 winery; and</text> </level> <level label="iv"> <text>any source outside the State.</text> </level> </level> <level label="2"> <text>Taxes are presumed to have been paid on wine that the permit holder receives from the following sources:</text> <level label="i"> <text>a retail dealer;</text> </level> <level label="ii"> <text>an individual residing in the State; and</text> </level> <level label="iii"> <text>a business entity in the State that is not licensed under this article.</text> </level> </level> </level> <level label="j"> <level label="1"> <text>Within 30 days after the auction ends, the permit holder shall:</text> <level label="i"> <text>file a report with the Comptroller; and</text> </level> <level label="ii"> <text>pay all taxes due on wine received for the auction.</text> </level> </level> <level label="2"> <text>The report shall:</text> <level label="i"> <text>include the total number of gallons and each source of wine that was received for the auction; and</text> </level> <level label="ii"> <text>be filed on the form that the Comptroller provides.</text> </level> </level> </level> <level label="k"> <text>The Comptroller may require that the permit holder prepay on or before the seventh day before the auction an amount sufficient to cover the anticipated wine tax due.</text> </level> <level label="l"> <level label="1"> <text>Wine purchased at a charity wine auction shall be delivered to the purchaser:</text> <level label="i"> <text>at the event; or</text> </level> <level label="ii"> <text>from a licensed warehouse, licensed retail dealer’s premises, or other premises that the Executive Director approves.</text> </level> </level> <level label="2"> <text>Wine delivered under this subsection is subject to applicable sales taxes.</text> </level> </level> <level label="m"> <text>Notwithstanding any other provision of this article, a person authorized to sell wine at retail may purchase wine offered at a charity wine auction in an amount not to exceed 5 gallons (18 liters) and resell the wine in accordance with the terms of the person’s license.</text> </level> <level label="n"> <text>The permit fee is $10.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-138" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <level label="a"> <text>There is a family beer and wine facility permit.</text> </level> <level label="b"> <level label="1"> <text>The permit authorizes the holder to establish a facility to produce family beer or wine by a consumer who:</text> <level label="i"> <text>is of legal drinking age; but</text> </level> <level label="ii"> <text>does not have a license.</text> </level> </level> <level label="2"> <text>The permit authorizes the holder to provide equipment, raw materials, and instructions to a consumer.</text> </level> <level label="3"> <text>Except as provided in paragraph (4) of this subsection, the permit holder may not engage in the production or manufacture of beer or wine.</text> </level> <level label="4"> <text>A permit authorizes the holder to engage in the production or manufacture of beer or wine for:</text> <level label="i"> <text>testing equipment or recipes; and</text> </level> <level label="ii"> <text>sampling, provided that:</text> <level label="1"> <text>each patron has no more than five samples;</text> </level> <level label="2"> <text>each sample does not exceed 2 ounces; and</text> </level> <level label="3"> <text>each sample is consumed on the premises by an individual who has a nonrefundable contract to brew or ferment at the facility.</text> </level> </level> </level> </level> <level label="c"> <text>Family beer and wine produced at a family beer and wine facility:</text> <level label="1"> <text>shall be removed from the premises by the consumer; and</text> </level> <level label="2"> <text>may be used only for home consumption and the personal use of the consumer.</text> </level> </level> <level label="d"> <text>The Executive Director may restrict the permit holder to the production of family–produced beer or family–produced wine.</text> </level> <level label="e"> <text>The permit fee is $400.</text> </level> <level label="f"> <text>The Executive Director may adopt regulations regarding any activity relating to the operation of the facility, including limits on the quantities of beer and wine produced and record keeping.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-139" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <level label="a"> <text>There is a national beer, wine, and liquor exhibition permit.</text> </level> <level label="b"> <text>The Executive Director may issue the permit to a bona fide alcohol trade association.</text> </level> <level label="c"> <level label="1"> <text>The permit authorizes the holder to conduct an alcohol exhibition and competition at which the permit holder may exhibit, judge, and taste beer, wine, and liquor acquired in accordance with this section at the place designated in the permit application.</text> </level> <level label="2"> <text>The permit authorizes the holder to receive for use, exhibition, and tastings at an exhibition:</text> <level label="i"> <text>tax–free family produced beer and wine;</text> </level> <level label="ii"> <text>tax–paid commercially produced beer, wine, and liquor from licensed nonresident dealers or manufacturers through holders of wholesaler’s licenses; and</text> </level> <level label="iii"> <text>commercially produced beer, wine, and liquor from manufacturers or suppliers licensed by another state and subject to the tax imposed under § 5–102 of the Tax – General Article.</text> </level> </level> <level label="3"> <text>The permit holder may not sell beer, wine, and liquor at the exhibition and competition.</text> </level> <level label="4"> <text>Notwithstanding § 6–319 of this article, the permit holder may allow a person to possess and consume beer, wine, and liquor on the premises governed by the permit as provided in this section.</text> </level> </level> <level label="d"> <text>An exhibition may not last more than 5 days.</text> </level> <level label="e"> <text>The permit may be granted for:</text> <level label="1"> <text>an unlicensed premises; or</text> </level> <level label="2"> <text>a licensed premises.</text> </level> </level> <level label="f"> <text>Persons authorized to judge or participate at an alcohol exhibition include a:</text> <level label="1"> <text>manufacturer;</text> </level> <level label="2"> <text>nonresident dealer;</text> </level> <level label="3"> <text>supplier;</text> </level> <level label="4"> <text>wholesaler; and</text> </level> <level label="5"> <text>representative of any of the persons listed in items (1) through (4) of this subsection.</text> </level> </level> <level label="g"> <text>A supplier licensed by another state is not required to have a nonresident dealer’s permit to ship beer, wine, and liquor to the permit holder.</text> </level> <level label="h"> <level label="1"> <text>Within 30 days after the exhibition ends, the permit holder shall:</text> <level label="i"> <text>file a report, on the forms that the Comptroller provides, of the number of gallons of commercially produced beer, wine, and liquor that the permit holder received from suppliers that are not licensed; and</text> </level> <level label="ii"> <text>pay the tax required under § 5–102 of the Tax – General Article.</text> </level> </level> <level label="2"> <text>The Comptroller may require the permit holder to prepay an amount sufficient to cover the anticipated tax rather than post a bond.</text> </level> </level> <level label="i"> <text>The permit fee is $50.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-140" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <level label="a"> <text>The Executive Director may issue a brewery special event permit to a holder of a Class 5 brewery license or a Class 8 farm brewery license.</text> </level> <level label="b"> <text>At least 15 days before holding a special event, the license holder shall obtain a permit from the Executive Director by filing a notice of the special event on the form that the Executive Director provides.</text> </level> <level label="c"> <text>The permit authorizes the license holder to conduct at the location listed on the license a special event at which the license holder may:</text> <level label="1"> <text>provide samples of not more than 6 fluid ounces per brand to consumers;</text> </level> <level label="2"> <text>sell products manufactured by the license holder and other Maryland breweries to persons who participate in the event; and</text> </level> <level label="3"> <text>in a segregated area approved by the Executive Director at the location listed on the license, store the products of other Maryland breweries.</text> </level> </level> <level label="d"> <text>The products at the event shall be sold in the manner authorized under the permit.</text> </level> <level label="e"> <text>The license holder may not be issued more than 12 permits in a calendar year.</text> </level> <level label="f"> <text>A single special event may not exceed 3 consecutive days.</text> </level> <level label="g"> <text>The permit fee is $25 per event.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-142" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <level label="a"> <text>In this part the following words have the meanings indicated.</text> </level> <level label="b"> <level label="1"> <text>“Common carrier” means a business entity that:</text> <level label="i"> <text>holds itself out as being available to the public to transport in interstate or foreign commerce for compensation any class of passenger or property; and</text> </level> <level label="ii"> <text>holds a common carrier permit issued under § 2–151 of this subtitle.</text> </level> </level> <level label="2"> <text>“Common carrier” does not include a business entity that transports only property the business entity owns or that is consigned to the business entity.</text> </level> </level> <level label="c"> <text>“Direct wine deliverer” means the holder of a direct wine delivery permit issued under this part.</text> </level> <level label="d"> <text>“Direct wine shipper” means the holder of a direct wine shipper’s permit issued under this part.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-143" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <level label="a"> <text>A person shall be issued a direct wine shipper’s permit by the Executive Director before the person may engage in shipping wine directly to a consumer in the State.</text> </level> <level label="b"> <text>Before a licensed manufacturer may engage in delivering wine directly to a consumer in the State, the manufacturer shall be issued a direct wine delivery permit.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-144" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <level label="a"> <text>To qualify for a direct wine shipper’s permit, an applicant shall be:</text> <level label="1"> <text>a person licensed outside the State to engage in the manufacture of wine; or</text> </level> <level label="2"> <text>a holder of a Class 3 manufacturer’s license or a Class 4 manufacturer’s license.</text> </level> </level> <level label="b"> <level label="1"> <text>To qualify for a direct wine delivery permit, an applicant shall be:</text> <level label="i"> <text>a person licensed in the State to engage in the manufacture of wine; and</text> </level> <level label="ii"> <text>a holder of a Class 6 limited wine wholesaler’s license.</text> </level> </level> <level label="2"> <text>The holder of a direct wine delivery permit issued under this subsection may sell and deliver the permit holder’s own product to an individual in the State if:</text> <level label="i"> <text>the delivery is made by an employee who is:</text> <level label="1"> <text>at least 18 years old; and</text> </level> <level label="2"> <text>certified by an approved alcohol awareness program;</text> </level> </level> <level label="ii"> <text>the purchaser, or another individual at least 21 years old designated by the purchaser, is physically present to receive the wine at the time and place of delivery;</text> </level> <level label="iii"> <text>the purchaser pays for the purchase at the time of order; and</text> </level> <level label="iv"> <text>the direct wine deliverer and the individual receiving the delivery each endorse a delivery form that the Executive Director approves certifying that the direct wine deliverer examined the recipient’s government–issued identification and the recipient was at least 21 years old.</text> </level> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-145" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <level label="a"> <text>An applicant for a direct wine shipper’s permit or a direct wine delivery permit shall:</text> <level label="1"> <text>submit to the Executive Director a completed application on a form that the Executive Director provides;</text> </level> <level label="2"> <text>provide to the Executive Director a copy of the applicant’s current manufacturer’s license;</text> </level> <level label="3"> <text>identify the wines manufactured by the applicant that the applicant intends to ship or deliver to a consumer in the State; and</text> </level> <level label="4"> <text>pay a fee of $200 for initial issuance of the direct wine shipper’s permit or the direct wine delivery permit.</text> </level> </level> <level label="b"> <text>The Executive Director shall issue a direct wine shipper’s permit or a direct wine delivery permit to each applicant who meets the requirements of this part for the permit.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-146" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <level label="a"> <text>A direct wine shipper’s permit entitles the holder to sell wine manufactured by the holder through a holder of a common carrier permit to a consumer by receiving and filling orders that the consumer transmits by electronic or other means.</text> </level> <level label="b"> <text>A direct wine delivery permit entitles the holder to sell and deliver wine manufactured by the holder directly to a consumer in the State by receiving and filling orders that the consumer transmits by electronic or other means.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-147" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <text>The term of a direct wine shipper’s permit or a direct wine delivery permit is 1 year and begins on July 1.</text> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-148" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <level label="a"> <text>A direct wine shipper shall:</text> <level label="1"> <text>ensure that all containers of wine shipped directly to a consumer in the State are conspicuously labeled with:</text> <level label="i"> <text>the name of the direct wine shipper;</text> </level> <level label="ii"> <text>the name and address of the consumer who is the intended recipient; and</text> </level> <level label="iii"> <text>the words “Contains Alcohol: Signature of Person at Least 21 Years of Age Required for Delivery”;</text> </level> </level> <level label="2"> <text>report to the Comptroller and the Executive Director information about the direct wine shipper’s wine shipments, in a manner that the Comptroller and the Executive Director determine;</text> </level> <level label="3"> <text>file a quarterly tax return in accordance with § 5–201(d) of the Tax – General Article;</text> </level> <level label="4"> <text>pay quarterly to the Comptroller all sales taxes and excise taxes due on sales to consumers in the State and calculate the taxes as if the sale were made in the State;</text> </level> <level label="5"> <text>maintain for 3 years complete and accurate records of all information needed to verify compliance with this part;</text> </level> <level label="6"> <text>allow the Comptroller and the Executive Director to perform an audit of the direct wine shipper’s records on request; and</text> </level> <level label="7"> <text>consent to the jurisdiction of the Comptroller, the Executive Director, or other State unit and the State courts concerning enforcement of this section and any related law.</text> </level> </level> <level label="b"> <text>A direct wine shipper may not:</text> <level label="1"> <text>ship more than 18 9–liter cases of wine each year to a single delivery address; or</text> </level> <level label="2"> <text>cause wine to be delivered on Sunday to an address in the State.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-148.1" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <level label="a"> <text>A direct wine deliverer shall:</text> <level label="1"> <text>ensure that any container containing wine delivered directly to a consumer in the State is:</text> <level label="i"> <text>conspicuously labeled with:</text> <level label="1"> <text>the name of the manufacturer;</text> </level> <level label="2"> <text>the name and address of the consumer who is the intended recipient; and</text> </level> <level label="3"> <text>the words “Contains Alcohol: Signature of Person at Least 21 Years of Age Required for Delivery”; and</text> </level> </level> <level label="ii"> <text>commercially sealed by the manufacturer;</text> </level> </level> <level label="2"> <text>report to the Executive Director information about the deliveries, in a manner that the Executive Director determines;</text> </level> <level label="3"> <text>file a quarterly tax return in accordance with § 5–201(d) of the Tax – General Article;</text> </level> <level label="4"> <text>pay quarterly to the Comptroller all sales taxes and excise taxes due on sales to consumers in the State;</text> </level> <level label="5"> <text>maintain for 3 years complete and accurate records of all information needed to verify compliance with this part; and</text> </level> <level label="6"> <text>allow the Comptroller or the Executive Director to perform an audit of the permit holder’s records on request.</text> </level> </level> <level label="b"> <text>The holder of a direct wine delivery permit may not cause more than 18 9–liter cases of wine to be delivered to a single address in a single calendar year.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-149" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <level label="a"> <text>A direct wine shipper may renew its direct wine shipper’s permit each year if the direct wine shipper:</text> <level label="1"> <text>is otherwise entitled to have a direct wine shipper’s permit;</text> </level> <level label="2"> <text>provides to the Executive Director a copy of its current permit;</text> </level> <level label="3"> <text>identifies the wines manufactured by the direct wine shipper that the direct wine shipper intends to ship into the State; and</text> </level> <level label="4"> <text>pays to the Executive Director a renewal fee of $200.</text> </level> </level> <level label="b"> <text>The Executive Director may deny a renewal application of a direct wine shipper who fails to:</text> <level label="1"> <text>file a tax return required under this part;</text> </level> <level label="2"> <text>pay a fee or tax when due; or</text> </level> <level label="3"> <text>after receiving notice, comply with this article or a regulation that the Comptroller or Executive Director adopts.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-149.1" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <level label="a"> <text>A direct wine deliverer may renew its direct wine delivery permit each year if the direct wine deliverer:</text> <level label="1"> <text>is otherwise entitled to hold a direct wine delivery permit;</text> </level> <level label="2"> <text>provides to the Executive Director and the Comptroller a copy of its current permit; and</text> </level> <level label="3"> <text>pays the Executive Director a renewal fee of $200.</text> </level> </level> <level label="b"> <text>The Executive Director may deny a renewal application for a direct wine delivery permit if the holder fails to:</text> <level label="1"> <text>file a tax return required under this part;</text> </level> <level label="2"> <text>pay a fee or tax when due; or</text> </level> <level label="3"> <text>after receiving notice, comply with this article or a regulation that the Executive Director adopts under this article.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-150" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <level label="a"> <text>To receive a direct shipment or direct delivery of wine, a consumer in the State shall be at least 21 years old.</text> </level> <level label="b"> <text>A person who receives a shipment or delivery of wine shall use the shipment for personal consumption only and may not resell the shipment or delivery.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-151" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <level label="a"> <text>There is a common carrier permit.</text> </level> <level label="b"> <text>A holder of a common carrier permit may deliver wine from a location inside or outside the State to a consumer in the State for the consumer’s personal use under this part.</text> </level> <level label="c"> <text>A person shall be issued a common carrier permit before the person may engage in transporting wine from a direct wine shipper to a consumer.</text> </level> <level label="d"> <text>The term of a common carrier permit is 1 year and begins on July 1.</text> </level> <level label="e"> <text>To complete delivery of a shipment, the common carrier shall require from a consumer at the address listed on the shipping label:</text> <level label="1"> <text>the signature of the consumer or another individual at the address who is at least 21 years old; and</text> </level> <level label="2"> <text>government–issued photographic identification showing that the signing individual is at least 21 years old.</text> </level> </level> <level label="f"> <text>A common carrier shall refuse delivery when the intended receiving individual appears to be under the age of 21 years or refuses to present valid identification.</text> </level> <level label="g"> <text>At the time of initial application for a common carrier permit and on request of the Executive Director, a common carrier shall submit to the Executive Director information concerning the training of its drivers in verifying the age of recipients of direct wine shipments under this part.</text> </level> <level label="h"> <text>At least once each year, in a manner acceptable to the Executive Director, a holder of a common carrier permit shall verify that the shipper of wine into the State under this part holds a valid direct wine shipper’s permit.</text> </level> <level label="i"> <text>A holder of a common carrier permit that delivers wine solely under this part may not be required to obtain a transportation permit issued under § 2–118 or § 2–119 of this subtitle in addition to the common carrier permit.</text> </level> <level label="j"> <text>The permit fee is $100.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-152" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <level label="a"> <text>A common carrier shall report quarterly to the Executive Director:</text> <level label="1"> <text>the date of each delivery of wine in the State; and</text> </level> <level label="2"> <text>the name and address of the direct wine shipper and the receiving consumer of each delivery.</text> </level> </level> <level label="b"> <text>A common carrier shall maintain for 3 years complete and accurate records of all information needed to verify compliance with this part.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-153" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <text>A person without a direct wine shipper’s permit may not ship wine directly to a consumer in the State.</text> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-154" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <text>Each violation of this part is a separate violation.</text> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-157" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <text>This part applies statewide.</text> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-158" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <level label="a"> <text>There is an alcohol awareness program permit.</text> </level> <level label="b"> <text>The permit authorizes the holder to conduct an alcohol awareness program as certified by the Executive Director under § 4–505 of this article.</text> </level> <level label="c"> <text>The permit fee is $15.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-159" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <level label="a"> <text>There is an alcohol awareness instructor’s permit.</text> </level> <level label="b"> <text>The permit authorizes the holder to conduct alcohol awareness training as an employee or agent of an alcohol awareness program permit holder.</text> </level> <level label="c"> <text>The permit fee is $5.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-162" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <text>This part applies statewide.</text> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-163" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <level label="a"> <text>There is a fuel–alcohol permit.</text> </level> <level label="b"> <text>The permit authorizes the holder to establish a distilled spirits plant for the sole purpose to manufacture, process, store, use, or distribute distilled spirits exclusively for fuel.</text> </level> <level label="c"> <text>A permit holder may not establish a distilled spirits plant for beverage purposes.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-164" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <level label="a"> <text>There is a nonbeverage permit.</text> </level> <level label="b"> <text>The permit authorizes the holder to purchase alcohol and alcoholic beverages for:</text> <level label="1"> <text>use in compounding or manufacturing flavoring extracts;</text> </level> <level label="2"> <text>medicinal, antiseptic, or toilet preparations or for other similar purposes;</text> </level> <level label="3"> <text>scientific or laboratory purposes;</text> </level> <level label="4"> <text>flavoring food products; or</text> </level> <level label="5"> <text>sale by pharmacists on the written prescription of a qualified physician.</text> </level> </level> <level label="c"> <text>The permit holder may not use, sell, or deliver:</text> <level label="1"> <text>alcoholic beverages for beverage purposes; or</text> </level> <level label="2"> <text>any other product that is:</text> <level label="i"> <text>produced with alcoholic beverages; and</text> </level> <level label="ii"> <text>fit for beverage purposes.</text> </level> </level> </level> <level label="d"> <text>The permit does not expire until it is revoked.</text> </level> <level label="e"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, the fee for the issuance or renewal of the permit is $50.</text> </level> <level label="2"> <text>The Executive Director shall issue the permit without the payment of a fee to:</text> <level label="i"> <text>a charitable organization; or</text> </level> <level label="ii"> <text>a holder of a fuel–alcohol permit.</text> </level> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-167" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <level label="a"> <text>In this part the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Direct beer deliverer” means the holder of a direct beer delivery permit issued under this part.</text> </level> <level label="c"> <text>“Direct liquor deliverer” means the holder of a direct liquor delivery permit issued under this part.</text> </level> <level label="d"> <text>“Permit” means a direct beer delivery permit or direct liquor delivery permit issued by the Executive Director under this part.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-168" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <level label="a"> <text>Before a licensed manufacturer may engage in delivering beer directly to a consumer in the State, the manufacturer shall be issued a direct beer delivery permit.</text> </level> <level label="b"> <text>Before a licensed manufacturer may engage in delivering liquor directly to a consumer in the State, the manufacturer shall be issued a direct liquor delivery permit.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-169" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <level label="a"> <level label="1"> <text>To qualify for a direct beer delivery permit, an applicant shall be:</text> <level label="i"> <text>a person licensed in the State to engage in the manufacture of beer; and</text> </level> <level label="ii"> <text>a holder of a Class 7 limited beer wholesaler’s license.</text> </level> </level> <level label="2"> <text>The holder of a direct beer delivery permit issued under § 2–170 of this subtitle may sell and deliver the permit holder’s own product to an individual in the State if:</text> <level label="i"> <text>the delivery is made by an employee who is:</text> <level label="1"> <text>at least 18 years old; and</text> </level> <level label="2"> <text>certified by an approved alcohol awareness program;</text> </level> </level> <level label="ii"> <text>the purchaser, or another individual at least 21 years old designated by the purchaser, is physically present to receive the beer at the time and place of delivery;</text> </level> <level label="iii"> <text>the purchaser pays for the purchase at the time of order; and</text> </level> <level label="iv"> <text>the direct beer deliverer and the individual receiving the delivery each endorse a delivery form that the Executive Director approves certifying that the direct beer deliverer examined the recipient’s government–issued identification and the recipient was at least 21 years old.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>To qualify for a direct liquor delivery permit, an applicant shall be:</text> <level label="i"> <text>a person issued a license by the Executive Director in the State to engage in the manufacture of liquor; and</text> </level> <level label="ii"> <text>a holder of a Class 8 limited wholesaler’s license.</text> </level> </level> <level label="2"> <text>The holder of a direct liquor delivery permit issued under § 2–170 of this subtitle may sell and deliver the permit holder’s own product to an individual in the State if:</text> <level label="i"> <text>the delivery is made by an employee who is:</text> <level label="1"> <text>at least 18 years old; and</text> </level> <level label="2"> <text>certified by an approved alcohol awareness program;</text> </level> </level> <level label="ii"> <text>the purchaser, or another individual at least 21 years old designated by the purchaser, is physically present to receive the liquor at the time and place of delivery;</text> </level> <level label="iii"> <text>the purchaser pays for the purchase at the time of order; and</text> </level> <level label="iv"> <text>the direct liquor deliverer and the individual receiving the delivery each endorse a delivery form that the Executive Director approves certifying that the direct liquor deliverer examined the recipient’s government–issued identification and the recipient was at least 21 years old.</text> </level> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-170" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <level label="a"> <text>An applicant for a permit under this part shall:</text> <level label="1"> <text>submit to the Executive Director a completed application on a form that the Executive Director provides;</text> </level> <level label="2"> <text>provide to the Executive Director a copy of the applicant’s current manufacturer’s license;</text> </level> <level label="3"> <text>identify the product manufactured by the applicant that the applicant intends to deliver to a consumer in the State; and</text> </level> <level label="4"> <text>pay a fee of $200 for initial issuance of the permit.</text> </level> </level> <level label="b"> <text>If an applicant meets the requirements of this part, the Executive Director shall issue to the applicant:</text> <level label="1"> <text>a direct beer delivery permit; or</text> </level> <level label="2"> <text>a direct liquor delivery permit.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-171" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <level label="a"> <text>A direct beer delivery permit entitles the holder to sell and deliver beer manufactured by the holder directly to a consumer in the State by receiving and filling orders that the consumer transmits by electronic or other means.</text> </level> <level label="b"> <text>A direct liquor delivery permit entitles the holder to sell and deliver liquor manufactured by the holder directly to a consumer in the State by receiving and filling orders that the consumer transmits by electronic or other means.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-172" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <text>The term of a permit issued under this part is 1 year and begins on July 1.</text> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-173" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <level label="a"> <text>A person who holds a permit under this part shall:</text> <level label="1"> <text>ensure that any container containing an alcoholic beverage delivered directly to a consumer in the State is:</text> <level label="i"> <text>conspicuously labeled with:</text> <level label="1"> <text>the name of the manufacturer;</text> </level> <level label="2"> <text>the name and address of the consumer who is the intended recipient; and</text> </level> <level label="3"> <text>the words “Contains Alcohol: Signature of Person at Least 21 Years of Age Required for Delivery”; and</text> </level> </level> <level label="ii"> <text>commercially sealed by the manufacturer;</text> </level> </level> <level label="2"> <text>report to the Executive Director information about the deliveries, in a manner that the Executive Director determines;</text> </level> <level label="3"> <text>file a quarterly tax return in accordance with § 5–201(d) of the Tax – General Article;</text> </level> <level label="4"> <text>pay quarterly to the Comptroller all sales taxes and excise taxes due on sales to consumers in the State and calculate the taxes as if the sales were made in the State;</text> </level> <level label="5"> <text>maintain for 3 years complete and accurate records of all information needed to verify compliance with this part;</text> </level> <level label="6"> <text>allow the Comptroller or the Executive Director to perform an audit of the permit holder’s records on request; and</text> </level> <level label="7"> <text>consent to the jurisdiction of the Executive Director, Comptroller, or other State unit and the State courts concerning enforcement of this part and any related law.</text> </level> </level> <level label="b"> <level label="1"> <text>The holder of a direct beer delivery permit may not cause more than 3,456 ounces of the permit holder’s own product to be delivered to a single delivery address in a single calendar year.</text> </level> <level label="2"> <text>The holder of a direct liquor delivery permit may not cause more than 24 standard 750–milliliter bottles of the permit holder’s own product, or an equivalent amount, to be delivered to a single delivery address in a single calendar year.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-174" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <level label="a"> <text>A holder of a permit issued under this part may renew the permit each year if the holder:</text> <level label="1"> <text>is otherwise entitled to hold a permit under this part;</text> </level> <level label="2"> <text>provides to the Executive Director and the Comptroller a copy of its current permit; and</text> </level> <level label="3"> <text>pays the Executive Director a renewal fee of $200.</text> </level> </level> <level label="b"> <text>The Executive Director may deny a renewal application for a permit issued under this part if the holder fails to:</text> <level label="1"> <text>file a tax return required under this subtitle;</text> </level> <level label="2"> <text>pay a fee or tax when due; or</text> </level> <level label="3"> <text>after receiving notice, comply with this article or a regulation that the Executive Director adopts under this article.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-175" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="1" subtitle_name="State Permits"> <level label="a"> <text>To receive a direct delivery of beer or liquor, a consumer in the State shall be at least 21 years old.</text> </level> <level label="b"> <text>A person who receives a delivery of alcoholic beverages under this part shall use the alcoholic beverages for personal consumption only and may not resell the delivery in whole or in part.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-201" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="2" subtitle_name="Manufacturer's Licenses"> <text>Each license specified in this subtitle is a manufacturer’s license that the Executive Director issues.</text> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-202" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="2" subtitle_name="Manufacturer's Licenses"> <level label="a"> <text>There is a Class 1 distillery license.</text> </level> <level label="b"> <text>The license shall be obtained for each trade name and each distillery in the State.</text> </level> <level label="c"> <text>A license holder may:</text> <level label="1"> <text>establish and operate a plant for distilling, rectifying, blending, and bottling, at the location described in the license:</text> <level label="i"> <text>brandy;</text> </level> <level label="ii"> <text>rum;</text> </level> <level label="iii"> <text>whiskey;</text> </level> <level label="iv"> <text>alcohol; and</text> </level> <level label="v"> <text>neutral spirits;</text> </level> </level> <level label="2"> <text>sell and deliver the alcoholic beverages:</text> <level label="i"> <text>in bulk to a person in the State that is authorized to acquire them; and</text> </level> <level label="ii"> <text>to a person outside the State that is authorized to acquire them;</text> </level> </level> <level label="3"> <text>manufacture an alcoholic beverage listed in item (1) of this subsection in the name of another person or under a trade name if the other person or trade name also holds a Class 1 distillery license;</text> </level> <level label="4"> <text>acquire alcoholic beverages from the holder of a manufacturer’s license or wholesaler’s license or nonresident dealer’s permit for use in manufacturing;</text> </level> <level label="5"> <level label="i"> <text>conduct guided tours of the licensed premises;</text> </level> <level label="ii"> <text>at no cost or for a fee, serve to an individual who has attained the legal drinking age and participated in a guided tour of the licensed premises, not more than 2 ounces of products, with each product sample consisting of not more than one–half ounce from a single product manufactured by the license holder;</text> </level> <level label="iii"> <text>serve samples blended with other products manufactured by the license holder or nonalcoholic ingredients; and</text> </level> <level label="iv"> <text>sell products manufactured on the licensed premises, for off–premises consumption, and related merchandise to an individual who has attained the legal drinking age; and</text> </level> </level> <level label="6"> <text>subject to subsection (i) of this section, sell liquor manufactured by the license holder that is mixed with other nonalcoholic ingredients.</text> </level> </level> <level label="d"> <text>A license holder or entity in which a license holder has a pecuniary interest may not act as a caterer of food.</text> </level> <level label="e"> <text>Subject to subsection (f) of this section, a license holder may conduct the activities specified in subsections (c)(5) and (i)(2) of this section from 10 a.m. to 10 p.m. each day.</text> </level> <level label="f"> <text>A Class 1 distillery license allows the license holder to operate 7 days a week.</text> </level> <level label="g"> <text>At least 14 days before holding a planned promotional event after 6 p.m., a license holder shall file a notice of the promotional event with the Executive Director on the form that the Executive Director provides.</text> </level> <level label="h"> <text>A holder of a caterer’s license or privilege under Subtitle 5 of this title or Subtitle 12 of various titles of Division II of this article may exercise the privileges of the license or privilege on the licensed premises of the license holder.</text> </level> <level label="i"> <level label="1"> <text>A local licensing board may grant an on–site consumption permit for use at the location of the Class 1 distillery license to a holder of a Class 1 distillery license.</text> </level> <level label="2"> <level label="i"> <text>The permit authorizes the holder to sell mixed drinks made from liquor that the holder produces that is mixed with other nonalcoholic ingredients for on–premises consumption.</text> </level> <level label="ii"> <text>The holder may not use more than an aggregate of 7,750 gallons annually of liquor the holder produces for mixed drinks sold under subparagraph (i) of this paragraph.</text> </level> </level> <level label="3"> <text>A local licensing board:</text> <level label="i"> <text>may establish and charge a permit fee; and</text> </level> <level label="ii"> <text>shall require the permit holder to:</text> <level label="1"> <text>comply with the alcohol awareness requirements under § 4–505 of this article; and</text> </level> <level label="2"> <text>abide by all applicable trade practice restrictions.</text> </level> </level> </level> </level> <level label="j"> <text>Nothing in this section limits the application of relevant provisions of Title 21 of the Health – General Article, and regulations adopted under that title, to a license holder.</text> </level> <level label="k"> <text>The license holder shall report to the Executive Director annually on a form provided by the Executive Director on:</text> <level label="1"> <text>the amount of alcoholic beverages produced under the license;</text> </level> <level label="2"> <text>the amount of alcoholic beverages sold for off–premises consumption; and</text> </level> <level label="3"> <text>the amount of alcoholic beverages served for on–premises consumption.</text> </level> </level> <level label="l"> <text>Except as otherwise provided by law, the license holder may not sell alcoholic beverages for off–premises consumption to a person who intends to resell the alcoholic beverages.</text> </level> <level label="m"> <text>The annual license fee:</text> <level label="1"> <text>shall be determined by the Executive Director; and</text> </level> <level label="2"> <text>may not exceed $2,000.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-203" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="2" subtitle_name="Manufacturer's Licenses"> <level label="a"> <text>There is a Class 9 limited distillery license.</text> </level> <level label="b"> <text>The limited distillery license may be issued only to a holder of a:</text> <level label="1"> <text>Class D beer, wine, and liquor license where sales for both on– and off–premises consumption are permitted for use on the premises for which the Class D license was issued; or</text> </level> <level label="2"> <text>Class B beer, wine, and liquor license where sales for both on– and off–premises consumption are permitted for use on the premises for which the Class B license was issued.</text> </level> </level> <level label="c"> <text>A holder of the limited distillery license:</text> <level label="1"> <text>may establish and operate a plant in the State for distilling, rectifying, and bottling brandy, rum, whiskey, alcohol, and neutral spirits;</text> </level> <level label="2"> <text>may acquire bulk alcoholic beverages from the holder of a distillery or rectifying license in the State or from the holder of a nonresident dealer’s permit;</text> </level> <level label="3"> <text>after acquiring an individual storage permit, may store on the licensed premises those products manufactured under the license;</text> </level> <level label="4"> <text>except as authorized under subsection (d)(1) of this section, may sell and deliver those products manufactured under the license only to a licensed wholesaler in the State or person authorized to acquire distilled spirits in another state and not to a county dispensary;</text> </level> <level label="5"> <text>may sell the products manufactured under the license at retail in a manner consistent with the underlying Class D or Class B license;</text> </level> <level label="6"> <text>may conduct guided tours of that portion of the licensed premises used for the limited distillery operation; and</text> </level> <level label="7"> <text>may serve not more than three samples of products manufactured at the licensed premises, with each sample consisting of not more than one–half ounce from a single product, to persons who:</text> <level label="i"> <text>have attained the legal drinking age;</text> </level> <level label="ii"> <text>participated in a guided tour; and</text> </level> <level label="iii"> <text>are present on that portion of the premises used for the limited distillery operation.</text> </level> </level> </level> <level label="d"> <text>A holder of the limited distillery license may not:</text> <level label="1"> <text>apply for or possess a wholesaler’s license, except for a Class 8 liquor wholesaler’s license;</text> </level> <level label="2"> <text>sell bottles of the products manufactured at the Class 9 limited distillery on that part of the premises used for the distillery operation;</text> </level> <level label="3"> <text>except as provided in subsection (e) of this section, distill, rectify, bottle, or sell more than 100,000 gallons of brandy, rum, whiskey, alcohol, and neutral spirits each calendar year;</text> </level> <level label="4"> <text>sell at retail on the premises of the Class D or Class B license, for on–premises or off–premises consumption, more than 31,000 gallons of the products manufactured under the license each calendar year;</text> </level> <level label="5"> <text>manufacture or rectify more than 31,000 gallons of product each calendar year for any other brand or entity; and</text> </level> <level label="6"> <text>own, operate, or be affiliated in any manner with another manufacturer.</text> </level> </level> <level label="e"> <text>To distill more than the gallonage specified in subsection (d)(3) of this section, a holder of the limited distillery license shall divest itself of any Class D or Class B retail license and obtain a Class 1 distillery license.</text> </level> <level label="f"> <text>A holder of the limited distillery license shall abide by all trade practice restrictions applicable to distilleries.</text> </level> <level label="g"> <text>The annual license fee:</text> <level label="1"> <text>shall be determined by the Executive Director; and</text> </level> <level label="2"> <text>may not exceed $500.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-204" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="2" subtitle_name="Manufacturer's Licenses"> <level label="a"> <text>There is a Class 2 rectifying license.</text> </level> <level label="b"> <text>A license holder may:</text> <level label="1"> <text>establish and operate a plant for rectifying, blending, and bottling alcoholic beverages at the location described in the license;</text> </level> <level label="2"> <text>sell and deliver alcoholic beverages to:</text> <level label="i"> <text>a holder of a Class 1 distillery license, Class 2 rectifying license, or wholesaler’s license;</text> </level> <level label="ii"> <text>a holder of a permit that is authorized to acquire the alcoholic beverage; and</text> </level> <level label="iii"> <text>a person outside the State that is authorized to acquire the alcoholic beverage;</text> </level> </level> <level label="3"> <text>acquire alcoholic beverages from the holder of a Class 1 distillery license, Class 2 rectifying license, Class 3 winery license, wholesaler’s license, or nonresident dealer’s permit;</text> </level> <level label="4"> <text>rectify, blend, bottle, and store alcoholic beverages in the name of another person or under a trade name if the other person or trade name also holds a Class 2 rectifying license; and</text> </level> <level label="5"> <level label="i"> <text>conduct guided tours of the licensed premises; and</text> </level> <level label="ii"> <text>serve not more than three samples of products manufactured at the licensed premises, with each sample consisting of not more than one–half ounce from a single product, to an individual who has attained the legal drinking age and participated in a guided tour of the licensed premises.</text> </level> </level> </level> <level label="c"> <text>A license holder or entity in which a license holder has a pecuniary interest may not act as a caterer of food.</text> </level> <level label="d"> <text>Subject to subsection (e) of this section, a license holder may conduct the activities specified in subsection (b)(5) of this section:</text> <level label="1"> <text>for off–premises consumption of products manufactured at the licensed premises and for sampling, from 10 a.m. to 10 p.m. each day; and</text> </level> <level label="2"> <text>for on–premises consumption of products manufactured at the licensed premises:</text> <level label="i"> <text>from 10 a.m. to 6 p.m. each day; or</text> </level> <level label="ii"> <text>if guests are attending a planned promotional event or other organized activity on the licensed premises, from 10 a.m. to 10 p.m. each day.</text> </level> </level> </level> <level label="e"> <text>A Class 2 rectifying license allows the license holder to operate 7 days a week.</text> </level> <level label="f"> <text>At least 14 days before holding a planned promotional event after 6 p.m., a license holder shall file a notice of the promotional event with the Executive Director on the form that the Executive Director provides.</text> </level> <level label="g"> <text>A holder of a caterer’s license or privilege under Subtitle 5 of this title or Subtitle 12 of various titles of Division II of this article may exercise the privileges of the license or privilege on the licensed premises of the license holder.</text> </level> <level label="h"> <text>Nothing in this section limits the application of relevant provisions of Title 21 of the Health – General Article, and regulations adopted under that title, to a license holder.</text> </level> <level label="i"> <text>The annual license fee:</text> <level label="1"> <text>shall be determined by the Executive Director; and</text> </level> <level label="2"> <text>may not exceed $600.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-205" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="2" subtitle_name="Manufacturer's Licenses"> <level label="a"> <text>There is a Class 3 winery license.</text> </level> <level label="b"> <text>A license holder may:</text> <level label="1"> <text>establish and operate a plant for fermenting and bottling wine at the location described in the license;</text> </level> <level label="2"> <text>import bulk wine from the holder of a nonresident dealer’s permit;</text> </level> <level label="3"> <text>acquire bulk wine from the holder of a Class 4 limited winery license;</text> </level> <level label="4"> <text>sell and deliver wine to:</text> <level label="i"> <text>a holder of a wholesaler’s license;</text> </level> <level label="ii"> <text>a holder of a permit that is authorized to acquire wine; and</text> </level> <level label="iii"> <text>a person outside the State that is authorized to acquire wine;</text> </level> </level> <level label="5"> <text>subject to subsection (c) of this section, sell at retail wine made at the plant from products grown in the State to an individual participating in a guided tour of the plant; and</text> </level> <level label="6"> <text>serve, at no charge, not more than 6 ounces of wine made at the plant to an individual who has attained the legal drinking age and is participating in a guided tour of the plant.</text> </level> </level> <level label="c"> <text>An individual may purchase wine under subsection (b)(5) of this section if the individual has attained the legal drinking age.</text> </level> <level label="d"> <text>The license holder shall report to the Executive Director annually on a form provided by the Executive Director on:</text> <level label="1"> <text>the amount of alcoholic beverages produced under the license;</text> </level> <level label="2"> <text>the amount of alcoholic beverages sold for off–premises consumption; and</text> </level> <level label="3"> <text>the amount of alcoholic beverages served for on–premises consumption.</text> </level> </level> <level label="e"> <text>Except as otherwise provided by law, the license holder may not sell alcoholic beverages for off–premises consumption to a person who intends to resell the alcoholic beverages.</text> </level> <level label="f"> <text>The annual license fee:</text> <level label="1"> <text>shall be determined by the Executive Director; and</text> </level> <level label="2"> <text>may not exceed $750.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-206" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="2" subtitle_name="Manufacturer's Licenses"> <level label="a"> <level label="1"> <text>In this section, “Maryland–grown agricultural product” means any product produced or cultivated on a farm or vineyard in the State.</text> </level> <level label="2"> <text>“Maryland–grown agricultural product” does not include:</text> <level label="i"> <text>cannabis; or</text> </level> <level label="ii"> <text>any other product containing tetrahydrocannabinol as defined in § 36–1102 of this article.</text> </level> </level> </level> <level label="b"> <text>There is a Class 4 limited winery license.</text> </level> <level label="c"> <level label="1"> <text>A license holder may:</text> <level label="i"> <text>subject to paragraph (2) of this subsection, from available Maryland agricultural products:</text> <level label="1"> <text>ferment and bottle wine; and</text> </level> <level label="2"> <text>distill and bottle pomace brandy;</text> </level> </level> <level label="ii"> <text>sell and deliver the wine and pomace brandy to:</text> <level label="1"> <text>a holder of a wholesaler’s license;</text> </level> <level label="2"> <text>a holder of a permit that is authorized to acquire wine or pomace brandy; or</text> </level> <level label="3"> <text>a person outside the State that is authorized to acquire wine or pomace brandy; and</text> </level> </level> <level label="iii"> <text>sell and deliver bulk wine to the holder of a Class 3 winery license.</text> </level> </level> <level label="2"> <text>A license holder:</text> <level label="i"> <text>shall own or have under contract at least 20 acres of Maryland–grown agricultural products in cultivation for use in the production of wine; or</text> </level> <level label="ii"> <text>except as provided in paragraph (3) of this subsection, if less than 20 acres are owned or under contract, shall ensure that at least 51% of the ingredients used in the annual production of the license holder’s wine are Maryland–grown agricultural products.</text> </level> </level> <level label="3"> <level label="i"> <text>The Secretary of Agriculture each year may grant a 1–year exemption to an applicant from the percentage requirement under paragraph (2)(ii) of this subsection.</text> </level> <level label="ii"> <text>The Secretary shall adopt regulations governing the granting of an exemption under subparagraph (i) of this paragraph, after consultation with the Advisory Commission on Maryland Alcohol Manufacturing, the Maryland Grape Growers Association, the Maryland Wineries Association, and other interested parties.</text> </level> </level> <level label="4"> <text>Except as provided in Subtitle 3 of this title, a license holder need not obtain any other license to possess, manufacture, sell, or transport wine or pomace brandy.</text> </level> <level label="5"> <text>A license holder may:</text> <level label="i"> <text>sell wine and pomace brandy produced by the license holder for on– and off–premises consumption;</text> </level> <level label="ii"> <text>in an amount not exceeding 2 fluid ounces per brand, provide samples of wine and pomace brandy that the license holder produces to a consumer:</text> <level label="1"> <text>at no charge; or</text> </level> <level label="2"> <text>for a fee; and</text> </level> </level> <level label="iii"> <text>subject to paragraphs (6) and (7) of this subsection, prepare, sell, or serve only:</text> <level label="1"> <text>bread and other baked goods;</text> </level> <level label="2"> <text>chili;</text> </level> <level label="3"> <text>chocolate;</text> </level> <level label="4"> <text>crackers;</text> </level> <level label="5"> <text>cured meat;</text> </level> <level label="6"> <text>fruits (whole and cut);</text> </level> <level label="7"> <text>hard and soft cheese (whole and cut);</text> </level> <level label="8"> <text>salads and vegetables (whole and cut);</text> </level> <level label="9"> <text>the following items made with Maryland wine:</text> </level> <level label="A"> <text>ice cream;</text> </level> <level label="B"> <text>jam;</text> </level> <level label="C"> <text>jelly; and</text> </level> <level label="D"> <text>vinegar;</text> </level> <level label="10"> <text>pizza;</text> </level> <level label="11"> <text>sandwiches and other light fare;</text> </level> <level label="12"> <text>soup; and</text> </level> <level label="13"> <text>condiments.</text> </level> </level> </level> <level label="6"> <level label="i"> <text>A caterer is not limited to preparing, selling, or serving only the foods specified in paragraph (5)(iii) of this subsection.</text> </level> <level label="ii"> <text>A license holder or entity in which the license holder has a pecuniary interest may not act as a caterer of food.</text> </level> </level> <level label="7"> <text>Subject to paragraph (8) of this subsection, a license holder may conduct the activities specified in paragraph (5) of this subsection from 10 a.m. to 10 p.m. each day.</text> </level> <level label="8"> <text>Except as provided in Division II of this article, the license allows the license holder to operate 7 days a week.</text> </level> <level label="9"> <text>Nothing in this subsection limits the application of relevant provisions of Title 21 of the Health – General Article, and regulations adopted under that title, to a license holder.</text> </level> </level> <level label="d"> <text>The place listed on the license shall be in compliance with § 1–405(b) of this article.</text> </level> <level label="e"> <text>A license holder may:</text> <level label="1"> <text>store on its licensed premises, in a segregated area approved by the Executive Director, the product of other Class 4 limited wineries to be used at Maryland Wineries Association promotional activities, provided records are maintained and reports filed regarding the storage under this item as may be required by the Executive Director;</text> </level> <level label="2"> <text>subject to subsection (k) of this section, distill and bottle not more than 1,900 gallons of pomace brandy made from available Maryland agricultural products;</text> </level> <level label="3"> <text>purchase bulk wine made entirely of Maryland–grown agricultural products fermented by a manufacturer licensed under this article and blend the wine with the license holder’s wine and pomace brandy if the aggregate purchase does not exceed 75% of the license holder’s annual wine and pomace brandy production;</text> </level> <level label="4"> <text>purchase pomace brandy only for blending with wine;</text> </level> <level label="5"> <text>import, export, and transport its wine and pomace brandy in accordance with this section; and</text> </level> <level label="6"> <text>produce wine and pomace brandy at a warehouse for which the license holder has been issued an individual storage permit, if:</text> <level label="i"> <text>the license holder does not serve or sell wine or pomace brandy at a warehouse to the public; and</text> </level> <level label="ii"> <text>the Executive Director has full access at all times to the warehouse to enforce this article.</text> </level> </level> </level> <level label="f"> <text>A Class 4 limited winery may be located only at the place stated on the license.</text> </level> <level label="g"> <text>If a license holder maintains the records and files the reports that the Comptroller and the Executive Director require, the license holder may:</text> <level label="1"> <text>in the State, conduct winemaking and packaging activities at another federally bonded winery or limited winery; or</text> </level> <level label="2"> <text>outside the State, conduct winemaking and packaging activities, other than fermentation, at another federally bonded winery.</text> </level> </level> <level label="h"> <text>Throughout the winemaking process, the license holder shall:</text> <level label="1"> <text>maintain ownership of the wine or pomace brandy; and</text> </level> <level label="2"> <text>ensure that the wine or pomace brandy returns to the location of the limited winery.</text> </level> </level> <level label="i"> <text>The license holder shall report to the Executive Director annually on a form provided by the Executive Director on:</text> <level label="1"> <text>the amount of alcoholic beverages produced under the license;</text> </level> <level label="2"> <text>the amount of alcoholic beverages sold for off–premises consumption; and</text> </level> <level label="3"> <text>the amount of alcoholic beverages served for on–premises consumption.</text> </level> </level> <level label="j"> <text>Except as otherwise provided by law, the license holder may not sell alcoholic beverages for off–premises consumption to a person who intends to resell the alcoholic beverages.</text> </level> <level label="k"> <text>All pomace brandy distilled and bottled by the license holder shall be reported by the license holder as a distilled spirit in accordance with Title 5 of the Tax – General Article.</text> </level> <level label="l"> <text>The annual license fee:</text> <level label="1"> <text>shall be determined by the Executive Director; and</text> </level> <level label="2"> <text>may not exceed $200.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-207" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="2" subtitle_name="Manufacturer's Licenses"> <level label="a"> <text>In this section, “affiliate” means a person that directly or indirectly through one or more intermediaries controls, is controlled by, or is under common control with a holder of a Class 5 brewery license.</text> </level> <level label="b"> <text>There is a Class 5 brewery license.</text> </level> <level label="c"> <text>A license holder may:</text> <level label="1"> <text>establish and operate a plant for brewing and bottling malt beverages at the location described in the license;</text> </level> <level label="2"> <text>import beer from a holder of a nonresident dealer’s permit;</text> </level> <level label="3"> <text>contract to brew and bottle beer with and on behalf of the holder of a Class 2 rectifying license, Class 5 brewery license, Class 7 micro–brewery license, Class 8 farm brewery license, or a nonresident dealer’s permit;</text> </level> <level label="4"> <text>sell and deliver beer to:</text> <level label="i"> <text>a holder of a wholesaler’s license that is authorized to acquire beer; or</text> </level> <level label="ii"> <text>a person outside of the State that is authorized to acquire beer;</text> </level> </level> <level label="5"> <text>subject to subsection (i) of this section, serve, at the location described in the license and at no charge, samples of beer, consisting of a total of not more than 18 ounces of beer per visit, to an individual who:</text> <level label="i"> <text>has attained the legal drinking age; and</text> </level> <level label="ii"> <text>is participating in a guided tour of the brewery or attends a scheduled promotional event or other organized activity at the brewery;</text> </level> </level> <level label="6"> <text>subject to subsections (d) and (i) of this section, sell beer for off–premises consumption at the location described in the license, at retail in a container other than a keg to an individual who has attained legal drinking age;</text> </level> <level label="7"> <text>subject to subsection (f) of this section, sell beer at the location described in the license for on–premises consumption; and</text> </level> <level label="8"> <text>brew and bottle malt beverages at a location listed on a permit issued to the license holder in accordance with § 2–113 of this title.</text> </level> </level> <level label="d"> <text>An individual may purchase beer under subsection (c)(6) of this section if the individual has attained the legal drinking age.</text> </level> <level label="e"> <text>The annual license fee:</text> <level label="1"> <text>shall be determined by the Executive Director; and</text> </level> <level label="2"> <text>may not exceed $1,500.</text> </level> </level> <level label="f"> <level label="1"> <level label="i"> <text>A local licensing board may grant an on–site consumption permit to an applicant that holds a Class 5 brewery license and, subject to paragraph (5) of this subsection, a Class D beer license.</text> </level> <level label="ii"> <text>On request, a local licensing board may grant an applicant a conditional on–site consumption permit or a conditional Class D beer license.</text> </level> <level label="iii"> <text>The conditional permit or conditional license shall become effective after the applicant:</text> <level label="1"> <text>files a completed brewer’s notice form with the U.S. Department of Treasury;</text> </level> <level label="2"> <text>obtains a Class 5 brewery license; and</text> </level> <level label="3"> <text>fulfills any other obligation required by law that the local licensing board identifies.</text> </level> </level> </level> <level label="2"> <text>Subject to the maximum volume limit under paragraph (4) of this subsection, a Class D beer license or an equivalent license under paragraph (5) of this subsection entitles the holder to sell to an individual who has attained the legal drinking age, for on–premises consumption at the brewery:</text> <level label="i"> <text>beer:</text> <level label="1"> <text>of which the holder of the Class 5 license is the brand owner; and</text> </level> <level label="2"> <text>that is fermented and brewed entirely by the license holder at a location authorized by this section;</text> </level> </level> <level label="ii"> <text>beer that is fermented and brewed entirely at the brewery under contract with a brand owner who does not possess a Class 5 license; and</text> </level> <level label="iii"> <text>subject to paragraph (3) of this subsection, beer brewed at a location other than the Class 5 brewery if:</text> <level label="1"> <text>the brand owner of the beer is the holder of the Class 5 license or an affiliate of the holder of the Class 5 license;</text> </level> <level label="2"> <text>the number of barrels of the beer sold for on–premises consumption under the Class D beer license or an equivalent license or an on–site consumption permit in a calendar year does not exceed the greater of:</text> </level> <level label="A"> <text>35% of the total number of barrels of beer sold for on–premises consumption under the Class D license or an equivalent license or an on–site consumption permit in that calendar year; or</text> </level> <level label="B"> <level label="1"> <text>2% of total finished production under the Class 5 brewery license; and</text> </level> </level> <level label="3"> <level label="A"> <text>the license holder contracts with or on behalf of a holder of a manufacturer’s license or nonresident dealer’s permit; or</text> </level> </level> <level label="B"> <text>the beer is manufactured by an affiliate of the license holder.</text> </level> </level> </level> <level label="3"> <level label="i"> <text>This paragraph applies to a Class 5 brewery with more than 1,000,000 barrels of finished production annually, alone or in combination with its affiliates.</text> </level> <level label="ii"> <text>Beer that is delivered to the Class 5 brewery in finished form may be sold for on–premises consumption under paragraph (2)(iii)2 of this subsection only if it is purchased from a licensed wholesaler.</text> </level> </level> <level label="4"> <text>The total amount of beer sold each year for on–premises consumption under this subsection may not exceed 5,000 barrels.</text> </level> <level label="5"> <text>Before a local licensing board that does not issue a Class D beer license may grant an on–site consumption permit, the local licensing board shall:</text> <level label="i"> <text>establish an equivalent license; and</text> </level> <level label="ii"> <text>require the applicant to obtain that equivalent license.</text> </level> </level> <level label="6"> <text>A local licensing board may charge a fee for granting an on–site consumption permit.</text> </level> <level label="7"> <text>A local licensing board shall require the holder of an on–site consumption permit or a Class D beer license or an equivalent license under paragraph (5) of this subsection to:</text> <level label="i"> <text>comply with the alcohol awareness requirements under § 4–505 of this article; and</text> </level> <level label="ii"> <text>abide by all applicable trade practice restrictions.</text> </level> </level> </level> <level label="g"> <level label="1"> <text>This subsection does not apply to:</text> <level label="i"> <text>the holder of a Class 5 brewery license that held an on–site consumption permit and a Class D license or an equivalent license on or before April 1, 2017, and any transferee of those licenses;</text> </level> <level label="ii"> <text>an individual who held a minority interest in an on–site consumption permit and a Class D license or an equivalent license on or before April 1, 2017, and then obtains by transfer a majority interest in the same license or permit;</text> </level> <level label="iii"> <text>a location in the State for which a completed brewer’s notice form was filed with the U. S. Department of Treasury on or before April 1, 2017;</text> </level> <level label="iv"> <text>a permit issued under § 2–140 of this title; and</text> </level> <level label="v"> <text>a guided tour during which:</text> <level label="1"> <text>samples of beer are served under subsection (c)(5) of this section; or</text> </level> <level label="2"> <text>beer is sold for off–premises consumption under subsection (c)(6) of this section.</text> </level> </level> </level> <level label="2"> <text>This subsection applies to:</text> <level label="i"> <text>a holder of a Class 5 brewery license who:</text> <level label="1"> <text>after April 1, 2017, obtains an on–site consumption permit and a Class D beer license or equivalent license for on–premises consumption; or</text> </level> <level label="2"> <text>not holding a minority interest in an on–site consumption permit and a Class D license or an equivalent license on or before April 1, 2017, obtains a majority interest by transfer in an on–site consumption permit and a Class D license or an equivalent license; and</text> </level> </level> <level label="ii"> <text>notwithstanding paragraph (1)(iii) of this subsection, a manufacturer of beer with more than 1,000,000 barrels of finished production annually alone or in combination with its affiliates.</text> </level> </level> <level label="3"> <text>Notwithstanding any provision in Division II of this article, the sales and serving privileges of an on–site consumption permit and a Class D license or an equivalent license may be exercised only from 10 a.m. to 10 p.m. Monday through Sunday.</text> </level> </level> <level label="h"> <text>All beer offered, served, or sold to a consumer under subsection (c)(5) or (6) of this section shall be:</text> <level label="1"> <text>fermented and brewed entirely at the Class 5 brewery; or</text> </level> <level label="2"> <text>beer of which the license holder or an affiliate of the license holder is the brand owner.</text> </level> </level> <level label="i"> <level label="1"> <level label="i"> <text>The Executive Director may issue a refillable container permit for draft beer under § 4–1104 or Subtitle 11 of the various titles in Division II of this article to a holder of a Class 5 brewery license:</text> <level label="1"> <text>on completion of an application form that the Executive Director provides; and</text> </level> <level label="2"> <text>at no cost to the holder of the Class 5 brewery license.</text> </level> </level> <level label="ii"> <text>A refillable container permit may be renewed each year concurrently with the renewal of the Class 5 brewery license.</text> </level> </level> <level label="2"> <text>The hours of sale for a refillable container permit issued under this subsection are the same as the hours when a guided tour, a promotional event, or other organized activity at the licensed premises authorized under subsection (c) of this section may be conducted.</text> </level> </level> <level label="j"> <text>The license holder shall report to the Executive Director annually on a form provided by the Executive Director on:</text> <level label="1"> <text>the amount of alcoholic beverages produced under the license;</text> </level> <level label="2"> <text>the amount of alcoholic beverages sold for off–premises consumption; and</text> </level> <level label="3"> <text>the amount of alcoholic beverages sold for on–premises consumption.</text> </level> </level> <level label="k"> <text>Except as otherwise provided by law, the license holder may not sell alcoholic beverages for off–premises consumption to a person who intends to resell the alcoholic beverages.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-208" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="2" subtitle_name="Manufacturer's Licenses"> <level label="a"> <text>There is a Class 6 pub–brewery license.</text> </level> <level label="b"> <level label="1"> <text>The license may be issued only to the holder of a Class B beer, wine, and liquor (on–sale) license that is issued for use on the premises of a restaurant.</text> </level> <level label="2"> <text>The pub–brewery shall be located immediately adjacent to the restaurant where the malt beverage is to be sold to the public.</text> </level> </level> <level label="c"> <text>A license holder:</text> <level label="1"> <text>may brew malt beverages at a single location for consumption on the restaurant premises; but</text> </level> <level label="2"> <text>may not brew more than 2,000 barrels of malt beverage each calendar year.</text> </level> </level> <level label="d"> <level label="1"> <text>A license holder may sell at retail malt beverages for off–premises consumption in a sealed refillable container.</text> </level> <level label="2"> <text>The container:</text> <level label="i"> <text>may be returned for refilling; and</text> </level> <level label="ii"> <text>shall be sealed by the license holder when refilled.</text> </level> </level> <level label="3"> <text>A license holder may not sell malt beverages to a retail dealer in the State for subsequent sale or distribution of the malt beverage under the retail license.</text> </level> </level> <level label="e"> <text>Except for a license transferred to a new location, the license may be transferred under Title 4, Subtitle 3 of this article if an application for transfer is filed at the same time with the local licensing board and the Executive Director.</text> </level> <level label="f"> <text>If the Class B beer, wine, and liquor (on–sale) license of the holder is suspended, the Class 6 pub–brewery license shall be suspended for the same period.</text> </level> <level label="g"> <text>The license is void if:</text> <level label="1"> <text>the restaurant described in subsection (b)(1) of this section ceases to be operated as a restaurant; or</text> </level> <level label="2"> <text>the Class B beer, wine, and liquor (on–sale) license of the license holder is revoked or transferred to a different location.</text> </level> </level> <level label="h"> <text>The annual license fee is $500.</text> </level> <level label="i"> <level label="1"> <text>On or before December 1 each year, the Commission shall report to the Senate Education, Health, and Environmental Affairs Committee and the House Economic Matters Committee, in accordance with § 2–1257 of the State Government Article, the total beer production of each Class 6 license holder in the preceding fiscal year, identified by jurisdiction and license holder.</text> </level> <level label="2"> <text>Each holder of a Class 6 license shall report to the Executive Director the information needed to prepare the annual report required under this subsection.</text> </level> <level label="3"> <text>The Commission shall include the information reported under this subsection in the annual report submitted under § 1–316 of this article.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-209" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="2" subtitle_name="Manufacturer's Licenses"> <level label="a"> <text>There is a Class 7 micro–brewery license.</text> </level> <level label="b"> <text>Except as provided in Division II of this article, the license may be issued only to the holder of a Class B beer, wine, and liquor (on–sale) license that is issued for use on the premises of a restaurant.</text> </level> <level label="c"> <text>A license holder may:</text> <level label="1"> <text>brew and bottle malt beverages at the location described in the license;</text> </level> <level label="2"> <text>obtain a Class 2 rectifying license for a premises located within 1 mile of the existing Class 7 micro–brewery location to bottle malt beverages brewed at the micro–brewery location only;</text> </level> <level label="3"> <text>contract to brew and bottle malt beverages with and on behalf of the holder of a Class 2 rectifying license, Class 5 brewery license, Class 7 micro–brewery license, Class 8 farm brewery license, or a nonresident dealer’s permit;</text> </level> <level label="4"> <text>store the finished product under an individual storage permit or at a licensed public storage facility for subsequent sale and delivery:</text> <level label="i"> <text>to a holder of a wholesaler’s license;</text> </level> <level label="ii"> <text>to an authorized person outside the State; or</text> </level> <level label="iii"> <text>for shipment back to the micro–brewery location for sale on the retail premises;</text> </level> </level> <level label="5"> <text>enter into a temporary delivery agreement with a distributor only for delivery of beer to a beer festival or a wine and beer festival, and the return of any unused beer, if:</text> <level label="i"> <text>the festival is in a sales territory for which the license holder does not have a franchise with a distributor under the Beer Franchise Fair Dealing Act in Title 5, Subtitle 1 of this article; and</text> </level> <level label="ii"> <text>the temporary delivery agreement is in writing;</text> </level> </level> <level label="6"> <text>hold an additional Class 7 micro–brewery license provided that both licenses remain subject to the production limits of subsection (d) of this section; and</text> </level> <level label="7"> <text>subject to subsection (d) of this section, brew and bottle malt beverages at a location listed on a permit issued in accordance with § 2–113 of this title.</text> </level> </level> <level label="d"> <level label="1"> <text>Subject to paragraph (2) of this subsection, a license holder may not collectively brew, bottle, or contract for more than 45,000 barrels of malt beverages each calendar year.</text> </level> <level label="2"> <level label="i"> <text>In determining the barrelage limitation under paragraph (1) of this subsection, any salable beer produced under a contractual arrangement accrues only to the license holder that owns the brand.</text> </level> <level label="ii"> <text>A license holder that wishes to produce more than the barrelage authorized under paragraph (1) of this subsection shall:</text> <level label="1"> <text>divest itself of any retail license; and</text> </level> <level label="2"> <text>obtain a Class 5 brewery license.</text> </level> </level> </level> <level label="3"> <text>A license holder that has licenses for two locations may not collectively brew, bottle, or contract for more than 45,000 barrels of malt beverages in aggregate from both of its locations each calendar year.</text> </level> </level> <level label="e"> <text>A license holder:</text> <level label="1"> <text>may not own, operate, or be affiliated with another manufacturer of beer except for a Class 2 rectifying license authorized under subsection (c)(2) of this section or more than one additional Class 7 micro–brewery license; and</text> </level> <level label="2"> <text>may not be granted a wholesaler’s license other than a Class 7 limited beer wholesaler’s license.</text> </level> </level> <level label="f"> <level label="1"> <text>The on–sale privilege authorizes the license holder, each calendar year, to sell at retail for on–premises consumption:</text> <level label="i"> <text>up to 5,000 barrels of beer brewed under the license; or</text> </level> <level label="ii"> <text>if the license holder has licenses for two locations, beer that:</text> <level label="1"> <text>totals annually up to 5,000 barrels at each location; and</text> </level> <level label="2"> <text>has been brewed at the location where it is sold.</text> </level> </level> </level> <level label="2"> <text>A license holder may sell and deliver beer brewed under the license to:</text> <level label="i"> <text>a holder of a wholesaler’s license; or</text> </level> <level label="ii"> <text>a person outside the State that is authorized to acquire beer.</text> </level> </level> </level> <level label="g"> <text>The hours and days for retail sales under the license are those established for a Class B license or for a holder of a Class B beer, wine, and liquor license.</text> </level> <level label="h"> <text>A license holder may sell at retail beer brewed under the license for off–premises consumption:</text> <level label="1"> <text>in a sealed refillable container that:</text> <level label="i"> <text>may be returned for refilling; and</text> </level> <level label="ii"> <text>shall be sealed by the license holder when refilled; and</text> </level> </level> <level label="2"> <text>as prepackaged beer in a nonrefillable container.</text> </level> </level> <level label="i"> <text>The annual license fee:</text> <level label="1"> <text>shall be determined by the Executive Director; and</text> </level> <level label="2"> <text>may not exceed $500.</text> </level> </level> <level label="j"> <level label="1"> <text>On or before December 1 each year, the Commission shall report to the Senate Education, Health, and Environmental Affairs Committee and the House Economic Matters Committee, in accordance with § 2–1257 of the State Government Article, on the following, identified by jurisdiction and Class 7 license holder:</text> <level label="i"> <text>the total beer production of the license holder in the preceding fiscal year; and</text> </level> <level label="ii"> <text>the total sales of the license holder for on–site consumption.</text> </level> </level> <level label="2"> <text>Each holder of a Class 7 license shall report to the Executive Director the information needed to prepare the annual report required under this subsection.</text> </level> <level label="3"> <text>The Commission shall include the information reported under this subsection in the annual report submitted under § 1–316 of this article.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-210" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="2" subtitle_name="Manufacturer's Licenses"> <level label="a"> <text>There is a Class 8 farm brewery license.</text> </level> <level label="b"> <level label="1"> <text>Subject to paragraph (2) of this subsection, a license holder may sell and deliver beer manufactured in a facility on the licensed farm or in a facility other than one on the licensed farm to:</text> <level label="i"> <text>a wholesaler licensed to sell and deliver beer in the State; or</text> </level> <level label="ii"> <text>a person in another state authorized to acquire beer.</text> </level> </level> <level label="2"> <text>The beer to be sold and delivered under paragraph (1) of this subsection shall be manufactured with an ingredient from a Maryland agricultural product, including hops, grain, and fruit, produced on the licensed farm.</text> </level> <level label="3"> <text>The licensed farm shall be:</text> <level label="i"> <text>an agribusiness engaged in the production, showcasing, preparation, and sale of farm products; and</text> </level> <level label="ii"> <text>actively engaged in agritourism by exposing the public to farming and value–added farming practices.</text> </level> </level> </level> <level label="c"> <text>A license holder may:</text> <level label="1"> <level label="i"> <text>sell beer produced by the license holder for on–premises and off–premises consumption;</text> </level> <level label="ii"> <text>in an amount not exceeding 6 fluid ounces per brand, provide samples of beer that the license holder produces to a consumer:</text> <level label="1"> <text>at no charge; or</text> </level> <level label="2"> <text>for a fee;</text> </level> </level> <level label="iii"> <text>sell or serve:</text> <level label="1"> <text>bread and other baked goods;</text> </level> <level label="2"> <text>chili;</text> </level> <level label="3"> <text>chocolate;</text> </level> <level label="4"> <text>crackers;</text> </level> <level label="5"> <text>cured meat;</text> </level> <level label="6"> <text>fruits (whole and cut);</text> </level> <level label="7"> <text>hard and soft cheese (whole and cut);</text> </level> <level label="8"> <text>salads and vegetables (whole and cut);</text> </level> <level label="9"> <text>ice cream;</text> </level> <level label="10"> <text>jam;</text> </level> <level label="11"> <text>jelly;</text> </level> <level label="12"> <text>vinegar;</text> </level> <level label="13"> <text>pizza;</text> </level> <level label="14"> <text>prepackaged sandwiches and other prepackaged foods ready to be eaten;</text> </level> <level label="15"> <text>soup; and</text> </level> <level label="16"> <text>condiments; and</text> </level> </level> <level label="iv"> <text>subject to subsection (e)(2) of this section, sell or serve any food if the license holder:</text> <level label="1"> <text>is licensed to operate a food establishment under Title 21, Subtitle 3 of the Health – General Article;</text> </level> <level label="2"> <text>uses a licensed food truck;</text> </level> <level label="3"> <text>uses a licensed caterer; or</text> </level> <level label="4"> <text>is selling or serving cottage industry food prepared on the farm under § 21–330.1 of the Health – General Article;</text> </level> </level> </level> <level label="2"> <text>store, in a segregated area approved by the Executive Director, beer produced by the license holder for sale and delivery to a wholesaler licensed in the State or a person outside the State authorized to acquire the beer;</text> </level> <level label="3"> <text>brew, bottle, or contract for not more than 15,000 barrels of beer each calendar year;</text> </level> <level label="4"> <text>contract with the holder of a Class 2 rectifying license, a Class 5 brewery license, or a Class 7 micro–brewery license to brew and bottle beer from ingredients produced on the licensed farm;</text> </level> <level label="5"> <text>import, export, and transport its beer in accordance with this section;</text> </level> <level label="6"> <text>store, brew, and bottle beer in a facility listed on a permit issued to the license holder in accordance with § 2–113 of this title, for sale and delivery to a wholesaler licensed in the State or a person outside the State authorized to acquire the beer, or shipment back to the licensed farm, if:</text> <level label="i"> <text>the license holder does not serve or sell beer at the warehouse; and</text> </level> <level label="ii"> <text>the Executive Director has full access at all times to the warehouse to enforce this article;</text> </level> </level> <level label="7"> <text>enter into a temporary delivery agreement with a distributor only for delivery of beer to a beer festival or a wine and beer festival, and the return of any unused beer, if:</text> <level label="i"> <text>the festival is in a sales territory for which the license holder does not have a franchise with a distributor under the Beer Franchise Fair Dealing Act in Title 5, Subtitle 1 of this article; and</text> </level> <level label="ii"> <text>the temporary delivery agreement is in writing; and</text> </level> </level> <level label="8"> <text>in accordance with subsection (b)(3) of this section:</text> <level label="i"> <text>host festivals;</text> </level> <level label="ii"> <text>provide live music or other entertainment; or</text> </level> <level label="iii"> <text>rent portions of the licensed farm to the public or private individuals or groups for functions or events, including:</text> <level label="1"> <text>banquets;</text> </level> <level label="2"> <text>weddings;</text> </level> <level label="3"> <text>anniversary parties;</text> </level> <level label="4"> <text>birthday parties;</text> </level> <level label="5"> <text>fundraisers; and</text> </level> <level label="6"> <text>other similar celebrations or events.</text> </level> </level> </level> </level> <level label="d"> <text>A Class 8 farm brewery may be located only at the place stated on the license.</text> </level> <level label="e"> <level label="1"> <text>Subject to paragraph (2) of this subsection and notwithstanding any local law, a license holder may exercise the privileges of a Class 8 farm brewery license.</text> </level> <level label="2"> <text>The Executive Director has exclusive regulatory authority over the operation of a Class 8 farm brewery.</text> </level> <level label="3"> <text>Except as provided in a local fire safety code, the Executive Director may not limit the number of visitors on the licensed premises.</text> </level> </level> <level label="f"> <level label="1"> <text>This subsection does not apply to a permit issued under § 2–140 of this title.</text> </level> <level label="2"> <text>A license holder at the location listed on the license may exercise the retail privileges of the license each day from 10 a.m. to 10 p.m.</text> </level> </level> <level label="g"> <text>Except as provided in Division II of this article, a Class 8 farm brewery license allows the license holder to operate 7 days a week.</text> </level> <level label="h"> <text>Nothing in this section limits the application of relevant provisions of Title 21 of the Health – General Article, and regulations adopted under that title, to a license holder.</text> </level> <level label="i"> <level label="1"> <text>A license holder may sponsor a multibrewery activity at the location issued on the license that:</text> <level label="i"> <text>includes the products of other Maryland breweries; and</text> </level> <level label="ii"> <text>provides for the sale of products in the manner authorized under the license.</text> </level> </level> <level label="2"> <text>In a segregated area approved by the Executive Director at the location listed on the license, a license holder may store the products of other Maryland breweries for the multibrewery activity.</text> </level> <level label="3"> <text>The multibrewery activity:</text> <level label="i"> <text>may be held from 10 a.m. to 10 p.m. each day; and</text> </level> <level label="ii"> <text>may not exceed 3 consecutive days.</text> </level> </level> </level> <level label="j"> <text>The annual license fee:</text> <level label="1"> <text>shall be determined by the Executive Director; and</text> </level> <level label="2"> <text>may not exceed $200.</text> </level> </level> <level label="k"> <level label="1"> <text>On or before December 1 each year, the Executive Director shall report to the Senate Finance Committee and the House Government, Labor, and Elections Committee, in accordance with § 2–1257 of the State Government Article, the total beer production of each Class 8 license holder in the preceding fiscal year, identified by jurisdiction and license holder.</text> </level> <level label="2"> <text>Each holder of a Class 8 license shall report to the Executive Director the information needed to prepare the annual report required under this subsection.</text> </level> <level label="3"> <text>The Executive Director shall include the information reported under this subsection in the annual report submitted under § 1–316 of this article.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-211" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="2" subtitle_name="Manufacturer's Licenses"> <text>To be issued a manufacturer’s license, the following individuals shall reside in the State at the time of filing an application for the license:</text> <level label="1"> <text>for a sole proprietorship, the individual applicant;</text> </level> <level label="2"> <text>for a corporation or limited liability company, the individual who qualifies as a resident applicant; or</text> </level> <level label="3"> <text>for a partnership, each partner of the applicant.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-212" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="2" subtitle_name="Manufacturer's Licenses"> <level label="a"> <level label="1"> <text>This subsection does not apply to a Class 6 pub–brewery license.</text> </level> <level label="2"> <text>The holder of a distillery, rectifying, winery, limited winery, brewery, or farm brewery license may apply for and obtain, under a different name, one or more additional distillery, rectifying, winery, limited winery, brewery, or farm brewery licenses for the same or different premises.</text> </level> <level label="3"> <level label="i"> <text>The holder of multiple manufacturer’s licenses at the same location may allow the sampling, sales, and consumption of products produced under the licenses at each of the licensed premises.</text> </level> <level label="ii"> <text>The sampling, sales, and consumption of products shall be consistent with the authorization for each license.</text> </level> </level> <level label="4"> <text>The additional licenses may be issued to different persons or under trade names used by persons occupying all or a part of the same premises.</text> </level> <level label="5"> <text>A holder of a license listed in paragraph (2) of this subsection may hold additional licenses listed in paragraph (2) of this subsection of the same or of a different class.</text> </level> <level label="6"> <text>The holder of a micro–brewery license may apply for and obtain not more than one additional micro–brewery license for another premises.</text> </level> </level> <level label="b"> <level label="1"> <text>The holder of a rectifying or winery license may apply for and obtain a wholesaler’s license of any class for the same premises or elsewhere as provided under this article.</text> </level> <level label="2"> <text>The holder of a Class 4 limited winery license may apply for and obtain a Class 6 limited wine wholesaler’s license for the same premises or elsewhere as provided under this article.</text> </level> <level label="3"> <level label="i"> <text>The holder of a Class 5 brewery license or Class 7 micro–brewery license may apply for and obtain a Class 7 limited beer wholesaler’s license in accordance with this paragraph.</text> </level> <level label="ii"> <text>A holder of a Class 5 brewery license that was selling the holder’s own beer at wholesale in the State as of January 1, 2013, may obtain a Class 7 limited beer wholesaler’s license to continue to sell the holder’s own beer at wholesale in the same location in an amount that is not more than 5,000 barrels annually.</text> </level> <level label="iii"> <text>A holder of a Class 5 brewery license that produces in aggregate from all its locations not more than 45,000 barrels of beer annually may obtain a Class 7 limited beer wholesaler’s license and distribute not more than 5,000 barrels of its own beer annually.</text> </level> </level> <level label="4"> <text>A holder of one or two Class 7 micro–brewery licenses that produces in aggregate from all of its locations not more than 45,000 barrels of beer annually may obtain a Class 7 limited beer wholesaler’s license and distribute beer that:</text> <level label="i"> <text>totals annually not more than 5,000 barrels in aggregate from all of its locations; and</text> </level> <level label="ii"> <text>has been brewed at the location from where it is distributed.</text> </level> </level> <level label="5"> <text>The holder of a Class 1 distillery license may apply for and obtain a Class 8 liquor wholesaler’s license for the same premises or elsewhere as provided under this article.</text> </level> <level label="6"> <text>The holder of a Class 9 limited distillery license may apply for and obtain a Class 8 liquor wholesaler’s license, for the same premises or elsewhere as provided under this article, and distribute its own liquor.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-213" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="2" subtitle_name="Manufacturer's Licenses"> <level label="a"> <text>In addition to any license fee otherwise required under this article, an applicant for initial issuance of a manufacturer’s license shall pay to the Executive Director a nonrefundable application fee of $200.</text> </level> <level label="b"> <text>In addition to any license fee otherwise required under this article, an applicant for renewal of a manufacturer’s license shall pay to the Executive Director a renewal fee of $30.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-214" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="2" subtitle_name="Manufacturer's Licenses"> <level label="a"> <text>Except as otherwise provided with respect to a delivery permit issued under Subtitle 1, Part V or Part VIII of this title or a 1–day license in Division II of this article, and subject to subsection (b) of this section, a holder of a manufacturer’s license may not sell or deliver alcoholic beverages to a person in the State that does not hold a license or permit under this article.</text> </level> <level label="b"> <text>This section does not prohibit a holder of a Class 4 limited winery license and a Class 6 limited wine wholesaler’s license from also holding a Class A light wine license issued under Division II of this article.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-215" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="2" subtitle_name="Manufacturer's Licenses"> <level label="a"> <text>A holder of a manufacturer’s license may not sell beer to a retail dealer on terms other than for cash on delivery.</text> </level> <level label="b"> <text>A civil action to enforce or collect a claim for credit extended or to enforce a check given in violation of this section may not be maintained in the State.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-216" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="2" subtitle_name="Manufacturer's Licenses"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Advertisement” includes a graphic or nongraphic sign, display, poster, and placard.</text> </level> <level label="3"> <text>“Manufacturing entity” means:</text> <level label="i"> <text>a holder of a manufacturer’s license or a person connected with the business of the holder; or</text> </level> <level label="ii"> <text>a distiller, nonresident dealer, resident dealer, brewer, rectifier, blender, or bottler of alcoholic beverages.</text> </level> </level> </level> <level label="b"> <text>Except as otherwise provided in this section:</text> <level label="1"> <text>a manufacturing entity may not have a financial interest in:</text> <level label="i"> <text>the premises on or in which a license holder sells alcoholic beverages at retail; or</text> </level> <level label="ii"> <text>a business that a license holder conducts;</text> </level> </level> <level label="2"> <text>a manufacturing entity may not lend money or any other thing of value, make a gift, or offer a gratuity to a retail dealer;</text> </level> <level label="3"> <text>a retail dealer may not accept, receive, or make use of money, a gift, or an advertisement provided by a manufacturing entity or become indebted to a manufacturing entity except for the purchase of alcoholic beverages and allied products purchased for resale; and</text> </level> <level label="4"> <text>a manufacturing entity may not provide an advertisement to a retail dealer.</text> </level> </level> <level label="c"> <level label="1"> <text>This subsection applies only to brewed products.</text> </level> <level label="2"> <level label="i"> <text>Except as provided in subsection (e) of this section, a brewer, nonresident dealer, or resident dealer may not provide to a retail license holder an advertisement that:</text> <level label="1"> <text>is worth more than $150; and</text> </level> <level label="2"> <text>advertises the beer or malt products of a particular brewer, nonresident dealer, resident dealer, or beer wholesaler.</text> </level> </level> <level label="ii"> <text>An advertisement provided in accordance with this subsection shall contain brand information that is prominent, permanent, and equal to the life and value of the utilitarian character of the advertising item.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>This subsection applies only to wine and liquor.</text> </level> <level label="2"> <text>An advertisement for use in windows or elsewhere on a retail liquor establishment may be given to a retailer by a brand owner who is engaged in the business of a manufacturing entity, if:</text> <level label="i"> <text>the utilitarian value is secondary and only incidental to the value as an advertisement;</text> </level> <level label="ii"> <text>the total value of an item provided by a brand owner for each of its individual brands for use in any one retail establishment at any one time is not more than $150 for each individual brand; and</text> </level> <level label="iii"> <text>the cost of installing these materials does not exceed the usual cost in the locality.</text> </level> </level> <level label="3"> <level label="i"> <text>In lieu of premanufactured advertising material, materials and labor may be provided by a brand owner for the custom manufacture of an advertising display that:</text> <level label="1"> <text>is worth not more than $150;</text> </level> <level label="2"> <text>is temporary; and</text> </level> <level label="3"> <text>has no other utilitarian value.</text> </level> </level> <level label="ii"> <text>A manufacturer, nonresident dealer, resident dealer, or brand owner may not undertake a plan that directly or indirectly results in the purchase of advertising materials, supplies, or services by a wholesaler’s license holder or retail license holder.</text> </level> <level label="iii"> <text>A retail license holder may not participate directly or indirectly in a transaction in which the license holder pays for or shares the cost for any of the advertising materials, supplies, services, or mailing expenses used to promote a brand owner’s products.</text> </level> </level> </level> <level label="e"> <level label="1"> <text>Subsections (b) and (c) of this section do not apply to:</text> <level label="i"> <text>a holder of a Class 6 pub–brewery license with respect to the malt beverages brewed on the premises; or</text> </level> <level label="ii"> <text>a holder of a Class 7 micro–brewery license with respect to the malt beverages brewed on the premises that are sold:</text> <level label="1"> <text>on the licensed premises of the brewery; or</text> </level> <level label="2"> <text>in a restaurant or brewery pub owned, conducted, and operated by the holder in or adjacent to the brewery for which it is licensed.</text> </level> </level> </level> <level label="2"> <text>A holder of a Class 6 pub–brewery license or a Class 7 micro–brewery license may hold or have a financial interest in one retail license that does not apply to premises to which a Class 6 pub–brewery license or Class 7 micro–brewery license applies.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-217" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="2" subtitle_name="Manufacturer's Licenses"> <level label="a"> <text>The purpose of this section is to eliminate the undue stimulation of the sale of alcoholic beverages and the practice of manufacturers granting secret discounts, rebates, allowances, free goods, or other inducements to selected license holders that contribute to a disorderly distribution of alcoholic beverages.</text> </level> <level label="b"> <level label="1"> <text>A licensed manufacturer, resident dealer, or nonresident winery permit holder may not discriminate directly or indirectly in price, discounts, or the quality of merchandise sold between:</text> <level label="i"> <text>one dispensary and another dispensary;</text> </level> <level label="ii"> <text>one wholesaler and another wholesaler; or</text> </level> <level label="iii"> <text>one retailer and another retailer that purchases alcoholic beverages that bear the same brand and trade name, and are similar in age and quality.</text> </level> </level> <level label="2"> <text>A nonresident dealer, resident dealer, nonresident winery permit holder, or nonresident unlicensed manufacturer may not use or promote the use of a practice prohibited under paragraph (1) of this subsection to sell or distribute alcoholic beverages to or through a licensed manufacturer, licensed wholesaler, or county dispensary.</text> </level> </level> <level label="c"> <text>A supplier, nonresident dealer, resident dealer, or nonresident winery permit holder may not make a discount, rebate, or depletion allowance that is offered on a product dependent on the pricing policy or practice of the license holder who is invoiced for the product.</text> </level> <level label="d"> <level label="1"> <text>This section does not restrict a manufacturer, nonresident dealer, resident dealer, or nonresident winery permit holder from limiting the quantity of alcoholic beverages to be sold to a license holder under a voluntary or compulsory rationing plan.</text> </level> <level label="2"> <text>A manufacturer, nonresident dealer, resident dealer, or nonresident winery permit holder is not required to sell to all license holders from whom orders are received.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-218" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="2" subtitle_name="Manufacturer's Licenses"> <text>A holder of a manufacturer’s license or the owner of an interest in a distillery, brewery, rectifying, blending, or bottling plant may not enter into an agreement with a retail dealer that limits the purchases or sales of the retail dealer to the products of any producer.</text> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-301" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="3" subtitle_name="Wholesaler's Licenses"> <text>Each license specified in this title is a wholesaler’s license that the Executive Director issues.</text> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-302" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="3" subtitle_name="Wholesaler's Licenses"> <level label="a"> <text>There is a Class 1 beer, wine, and liquor wholesaler’s license.</text> </level> <level label="b"> <text>The license authorizes the license holder to:</text> <level label="1"> <text>acquire beer, wine, and liquor from:</text> <level label="i"> <text>a license holder that is authorized to sell and deliver the beer, wine, and liquor to a wholesaler; and</text> </level> <level label="ii"> <text>a holder of a nonresident dealer’s permit or a resident dealer’s permit that is authorized to sell and deliver beer, wine, and liquor; and</text> </level> </level> <level label="2"> <text>sell and deliver beer, wine, and liquor from the licensed premises to:</text> <level label="i"> <text>a license holder or permit holder in the State; and</text> </level> <level label="ii"> <text>an authorized person outside the State.</text> </level> </level> </level> <level label="c"> <text>The annual license fee is $2,000.</text> </level> <level label="d"> <text>The license holder may use an additional location for the warehousing, sale, and delivery of beer, wine, and liquor:</text> <level label="1"> <text>if approved by the Executive Director following submission of a separate application for each location; and</text> </level> <level label="2"> <text>on the payment of a $2,000 fee for each additional location.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-303" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="3" subtitle_name="Wholesaler's Licenses"> <level label="a"> <text>There is a Class 2 wine and liquor wholesaler’s license.</text> </level> <level label="b"> <text>The license authorizes the license holder to:</text> <level label="1"> <text>acquire wine and liquor from:</text> <level label="i"> <text>a license holder that is authorized to sell and deliver the wine and liquor to a wholesaler; and</text> </level> <level label="ii"> <text>a holder of a nonresident dealer’s permit or a resident dealer’s permit that is authorized to sell and deliver wine and liquor; and</text> </level> </level> <level label="2"> <text>sell and deliver wine and liquor from the licensed premises to:</text> <level label="i"> <text>a license holder or permit holder in the State; and</text> </level> <level label="ii"> <text>an authorized person outside the State.</text> </level> </level> </level> <level label="c"> <text>The annual license fee is $1,750.</text> </level> <level label="d"> <text>The license holder may use an additional location for the warehousing, sale, and delivery of wine and liquor:</text> <level label="1"> <text>if approved by the Executive Director following submission of a separate application for each location; and</text> </level> <level label="2"> <text>on the payment of a $1,750 fee for each additional location.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-304" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="3" subtitle_name="Wholesaler's Licenses"> <level label="a"> <text>There is a Class 3 beer and wine wholesaler’s license.</text> </level> <level label="b"> <text>The license authorizes the license holder to:</text> <level label="1"> <text>acquire beer and wine from:</text> <level label="i"> <text>a license holder that is authorized to sell and deliver the beer and wine to a wholesaler; and</text> </level> <level label="ii"> <text>a holder of a nonresident dealer’s permit or a resident dealer’s permit that is authorized to sell and deliver beer and wine; and</text> </level> </level> <level label="2"> <text>sell and deliver beer and wine from the licensed premises to:</text> <level label="i"> <text>a license holder or permit holder in the State; and</text> </level> <level label="ii"> <text>an authorized person outside the State.</text> </level> </level> </level> <level label="c"> <text>The annual license fee is $1,500.</text> </level> <level label="d"> <text>The license holder may use an additional location for the warehousing, sale, and delivery of beer and wine:</text> <level label="1"> <text>if approved by the Executive Director following submission of a separate application for each location; and</text> </level> <level label="2"> <text>on the payment of a $1,500 fee for each additional location.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-305" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="3" subtitle_name="Wholesaler's Licenses"> <level label="a"> <text>There is a Class 4 beer wholesaler’s license.</text> </level> <level label="b"> <text>The license authorizes the license holder to:</text> <level label="1"> <text>acquire beer from:</text> <level label="i"> <text>a license holder that is authorized to sell and deliver beer to a wholesaler; and</text> </level> <level label="ii"> <text>a holder of a nonresident dealer’s permit or a resident dealer’s permit that is authorized to sell and deliver beer; and</text> </level> </level> <level label="2"> <text>sell and deliver beer from the licensed premises to:</text> <level label="i"> <text>a license holder or permit holder in the State; and</text> </level> <level label="ii"> <text>an authorized person outside the State.</text> </level> </level> </level> <level label="c"> <text>The annual license fee is $1,250.</text> </level> <level label="d"> <text>The license holder may use an additional location for the warehousing, sale, and delivery of beer:</text> <level label="1"> <text>if approved by the Executive Director following submission of a separate application for each location; and</text> </level> <level label="2"> <text>on the payment of a $1,250 fee for each additional location.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-306" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="3" subtitle_name="Wholesaler's Licenses"> <level label="a"> <text>There is a Class 5 wine wholesaler’s license.</text> </level> <level label="b"> <text>The license authorizes the license holder to:</text> <level label="1"> <text>acquire wine from:</text> <level label="i"> <text>a license holder that is authorized to sell and deliver wine to a wholesaler; and</text> </level> <level label="ii"> <text>a holder of a nonresident dealer’s permit or a resident dealer’s permit that is authorized to sell and deliver wine; and</text> </level> </level> <level label="2"> <text>sell and deliver wine from the licensed premises to:</text> <level label="i"> <text>a license holder or permit holder in the State; and</text> </level> <level label="ii"> <text>an authorized person outside the State.</text> </level> </level> </level> <level label="c"> <text>The annual license fee is $1,250.</text> </level> <level label="d"> <text>The license holder may use an additional location for the warehousing, sale, and delivery of wine:</text> <level label="1"> <text>if approved by the Executive Director following submission of a separate application for each location; and</text> </level> <level label="2"> <text>on the payment of a $1,250 fee for each additional location.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-307" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="3" subtitle_name="Wholesaler's Licenses"> <level label="a"> <text>There is a Class 6 limited wine wholesaler’s license.</text> </level> <level label="b"> <text>The license may be issued only to a wine manufacturer that:</text> <level label="1"> <text>holds a Class 4 limited winery license; and</text> </level> <level label="2"> <text>produces not more than 35,000 gallons of its own wine annually.</text> </level> </level> <level label="c"> <level label="1"> <text>The license authorizes the license holder to sell and deliver its own brand of wine produced at the license holder’s premises to:</text> <level label="i"> <text>a holder of a retail license that is authorized to acquire the wine; and</text> </level> <level label="ii"> <text>a holder of a permit that is authorized to acquire the wine.</text> </level> </level> <level label="2"> <text>The license holder may sell its wine to a holder of a wholesaler’s license.</text> </level> </level> <level label="d"> <text>The annual license fee is $50.</text> </level> <level label="e"> <text>The license holder may use an additional location for the warehousing, sale, and delivery of wine:</text> <level label="1"> <text>if approved by the Executive Director following submission of a separate application for each location; and</text> </level> <level label="2"> <text>on the payment of a $50 fee for each additional location.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-308" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="3" subtitle_name="Wholesaler's Licenses"> <level label="a"> <text>There is a Class 7 limited beer wholesaler’s license.</text> </level> <level label="b"> <text>The license may be issued only to a person that:</text> <level label="1"> <text>holds a Class 5 manufacturer’s license, a Class 7 micro–brewery license, or a Class 8 farm brewery license; and</text> </level> <level label="2"> <text>produces in the aggregate from all of its locations not more than 45,000 barrels of beer annually.</text> </level> </level> <level label="c"> <text>The license authorizes the license holder to:</text> <level label="1"> <text>sell and deliver its own beer produced at the license holder’s premises to:</text> <level label="i"> <text>a holder of a retail license that is authorized to acquire beer from a wholesaler; and</text> </level> <level label="ii"> <text>a holder of a permit that is authorized to acquire beer from a wholesaler; and</text> </level> </level> <level label="2"> <text>distribute not more than 5,000 barrels of its own beer annually.</text> </level> </level> <level label="d"> <text>The annual license fee is $50.</text> </level> <level label="e"> <text>The license holder may use an additional location for the warehousing, sale, and delivery of beer:</text> <level label="1"> <text>if approved by the Executive Director following submission of a separate application for each location; and</text> </level> <level label="2"> <text>on the payment of a $50 fee for each additional location.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-308.1" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="3" subtitle_name="Wholesaler's Licenses"> <level label="a"> <text>There is a Class 8 liquor wholesaler’s license.</text> </level> <level label="b"> <text>The license may be issued only to a person that:</text> <level label="1"> <text>holds a:</text> <level label="i"> <text>Class 1 distillery license; or</text> </level> <level label="ii"> <text>Class 9 limited distillery license; and</text> </level> </level> <level label="2"> <text>produces in the aggregate from all of its locations not more than 100,000 gallons of liquor annually.</text> </level> </level> <level label="c"> <text>The license authorizes the license holder to:</text> <level label="1"> <text>sell and deliver its own liquor produced at the license holder’s premises to:</text> <level label="i"> <text>a holder of a retail license that is authorized to acquire liquor from a wholesaler; and</text> </level> <level label="ii"> <text>a holder of a permit that is authorized to acquire liquor from a wholesaler; and</text> </level> </level> <level label="2"> <text>distribute not more than 27,500 gallons of its own liquor annually.</text> </level> </level> <level label="d"> <text>The annual license fee is $100.</text> </level> <level label="e"> <text>The license holder may use an additional location for the warehousing, sale, and delivery of liquor:</text> <level label="1"> <text>if approved by the Executive Director following submission of a separate application for each location; and</text> </level> <level label="2"> <text>on the payment of a $100 fee for each additional location.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-309" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="3" subtitle_name="Wholesaler's Licenses"> <text>Subject to § 2–310 of this subtitle, the sale and delivery of beer or wine from a vehicle under the exclusive control of a holder of a wholesaler’s license constitutes sale and delivery from the wholesaler’s licensed premises if the beer or wine is:</text> <level label="1"> <text>beer previously purchased by and delivered to the holder of the wholesaler’s license; or</text> </level> <level label="2"> <text>wine or a wine–based beverage with an alcohol content of 6.5% or less by volume.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-310" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="3" subtitle_name="Wholesaler's Licenses"> <level label="a"> <text>This section does not apply to a holder of a nonresident winery permit.</text> </level> <level label="b"> <text>Before a holder of a wholesaler’s license may sell and deliver alcoholic beverages acquired by the wholesaler to a holder of a retail license, the alcoholic beverages shall come to rest on the licensed premises of the wholesaler.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-311" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="3" subtitle_name="Wholesaler's Licenses"> <level label="a"> <text>The holder of a Class 1, Class 2, or Class 3 wholesaler’s license may obtain more than one such license if separate records are kept.</text> </level> <level label="b"> <level label="1"> <text>The holder of a rectifying or winery license may apply for and obtain a wholesaler’s license of any class for the same premises or elsewhere as provided under this article.</text> </level> <level label="2"> <text>The holder of a Class 4 limited winery license may apply for and obtain a Class 6 limited wine wholesaler’s license for the same premises or elsewhere as provided under this article.</text> </level> <level label="3"> <level label="i"> <text>The holder of a Class 5 manufacturer’s license or Class 7 micro–brewery license may apply for and obtain a Class 7 limited beer wholesaler’s license in accordance with this paragraph.</text> </level> <level label="ii"> <text>A holder of a Class 5 manufacturer’s license that was selling the holder’s own beer at wholesale in the State as of January 1, 2013, may obtain a Class 7 limited beer wholesaler’s license to continue to sell the holder’s own beer at wholesale in the same location in an amount that is not more than 5,000 barrels annually.</text> </level> <level label="iii"> <text>A holder of a Class 5 manufacturer’s license that produces in aggregate from all its locations not more than 45,000 barrels of beer annually may obtain a Class 7 limited beer wholesaler’s license and distribute not more than 5,000 barrels of its own beer annually.</text> </level> <level label="iv"> <text>A holder of one or two Class 7 micro–brewery licenses that produces in aggregate from all of its locations not more than 45,000 barrels of beer annually may obtain a Class 7 limited beer wholesaler’s license and distribute beer that:</text> <level label="1"> <text>totals annually not more than 5,000 barrels in aggregate from all of its locations; and</text> </level> <level label="2"> <text>has been brewed at the location from where it is distributed.</text> </level> </level> </level> <level label="4"> <text>A holder of a Class 9 limited distillery license may apply for and obtain a Class 8 liquor wholesaler’s license, for the same premises or elsewhere as provided under this article, and distribute its own liquor.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-312" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="3" subtitle_name="Wholesaler's Licenses"> <level label="a"> <text>Subject to subsection (b) of this section, a holder of a wholesaler’s license may directly import alcoholic beverages of the type indicated on the license from outside the continental limits and possessions of the United States if the brand owner provides notice to the Executive Director of the license holder’s jurisdiction and authority to sell the alcoholic beverages.</text> </level> <level label="b"> <text>A holder of a wholesaler’s license that imports alcoholic beverages from outside the continental limits and possessions of the United States must:</text> <level label="1"> <text>be the brand owner; or</text> </level> <level label="2"> <text>purchase the alcoholic beverages:</text> <level label="i"> <text>directly from the brand owner or the authorized agent of the brand owner; or</text> </level> <level label="ii"> <text>from the authorized United States importer.</text> </level> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-313" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="3" subtitle_name="Wholesaler's Licenses"> <level label="a"> <text>Subject to subsection (b) of this section, a holder of a wholesaler’s license may not sell or deliver alcoholic beverages to a person in the State that does not hold a license or permit under this article.</text> </level> <level label="b"> <text>This section does not prohibit a holder of a Class 4 limited winery license and a Class 6 limited wine wholesaler’s license from also holding a Class A light wine license or a Class A wine license issued under Division II of this article.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-314" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="3" subtitle_name="Wholesaler's Licenses"> <level label="a"> <text>A holder of a wholesaler’s license may not sell beer to a retail dealer on terms other than for cash on delivery.</text> </level> <level label="b"> <text>A suit or civil action to enforce or collect a claim for credit extended or enforce payment of a check given for payment in violation of this section may not be maintained in the State.</text> </level> <level label="c"> <text>A person that violates this section is subject to the penalties provided in § 6–402 of this article.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-315" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="3" subtitle_name="Wholesaler's Licenses"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Advertisement” includes a graphic or nongraphic sign, display, poster, and placard.</text> </level> <level label="3"> <text>“Wholesaling entity” means:</text> <level label="i"> <text>a holder of a wholesaler’s license or a person connected with the business of the holder; or</text> </level> <level label="ii"> <text>a nonresident dealer or resident dealer of alcoholic beverages.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, a wholesaling entity may not have a financial interest in:</text> <level label="i"> <text>the premises on or in which a license holder sells alcoholic beverages at retail; or</text> </level> <level label="ii"> <text>a business that a license holder conducts.</text> </level> </level> <level label="2"> <text>A holder of a Class 6 limited wine wholesaler’s license may have a financial interest in not more than one Class A licensed premises.</text> </level> <level label="3"> <text>A wholesaling entity may not lend money or any other thing of value, make a gift, or offer a gratuity to a retail dealer.</text> </level> <level label="4"> <text>A retail dealer may not accept, receive, or make use of money, a gift, or an advertisement provided by a wholesaling entity or become indebted to a wholesaling entity except for the purchase of alcoholic beverages and allied products purchased for resale.</text> </level> <level label="5"> <text>A wholesaling entity other than a wholesaler of beer and malt beverages may not provide an advertisement to a retail dealer.</text> </level> </level> <level label="c"> <level label="1"> <text>This subsection applies only to brewed products.</text> </level> <level label="2"> <level label="i"> <text>Subject to subparagraph (iii) of this paragraph, a nonresident dealer, resident dealer, or beer wholesaler may not provide to a retail license holder an advertisement that:</text> <level label="1"> <text>is worth more than $150; and</text> </level> <level label="2"> <text>advertises the beer or malt products of a particular brewer, nonresident dealer, resident dealer, or beer wholesaler.</text> </level> </level> <level label="ii"> <text>An advertisement provided in accordance with this subsection shall contain brand information that is prominent, permanent, and equal to the life and value of the utilitarian character of the advertising item.</text> </level> <level label="iii"> <text>An advertisement that is manufactured by a beer wholesaler and provided to the holder of a retail license may not be worth more than $50 to the holder of the retail license where the advertisement advertises the beer or malt products of the beer wholesaler.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>This subsection applies only to wine and liquor.</text> </level> <level label="2"> <text>An advertisement for use in windows or elsewhere on a retail liquor establishment may be given to a retailer by a brand owner who is engaged in the business of a manufacturing entity if:</text> <level label="i"> <text>the utilitarian value is secondary and only incidental to the value as an advertisement;</text> </level> <level label="ii"> <text>the total value of an item provided by a brand owner for each of its individual brands for use in any one retail establishment at any one time is not more than $150 for each individual brand; and</text> </level> <level label="iii"> <text>the cost of installing these materials does not exceed the usual cost in the locality.</text> </level> </level> <level label="3"> <level label="i"> <text>In lieu of premanufactured advertising material, materials and labor may be provided by a brand owner for the custom manufacture of an advertising display that:</text> <level label="1"> <text>is worth not more than $150;</text> </level> <level label="2"> <text>is temporary; and</text> </level> <level label="3"> <text>has no other utilitarian value.</text> </level> </level> <level label="ii"> <text>A nonresident dealer, resident dealer, or brand owner may not undertake a plan that directly or indirectly results in the purchase of advertising materials, supplies, or services by a holder of a wholesaler’s license or retail license holder.</text> </level> <level label="iii"> <text>A holder of a wholesaler’s license or retail license holder may not participate directly or indirectly in a transaction in which the license holder pays for or shares the cost for any of the advertising materials, supplies, services, or mailing expenses used to promote a brand owner’s products.</text> </level> <level label="iv"> <text>This subsection does not prevent a holder of a wholesaler’s license from providing brand owners with display materials and installation services at charges computed at not less than the fair market value for these services.</text> </level> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-316" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="3" subtitle_name="Wholesaler's Licenses"> <level label="a"> <text>The purpose of this section is to eliminate the undue stimulation of the sale of alcoholic beverages and the practice of wholesalers granting secret discounts, rebates, allowances, free goods, or other inducements to selected license holders that contribute to a disorderly distribution of alcoholic beverages.</text> </level> <level label="b"> <level label="1"> <text>A licensed wholesaler, resident dealer, or nonresident winery permit holder may not discriminate directly or indirectly in price, discounts, or the quality of merchandise sold between:</text> <level label="i"> <text>one dispensary and another dispensary;</text> </level> <level label="ii"> <text>one wholesaler and another wholesaler; or</text> </level> <level label="iii"> <text>one retailer and another retailer that purchases alcoholic beverages that bear the same brand and trade name, and are similar in age and quality.</text> </level> </level> <level label="2"> <text>A nonresident dealer, resident dealer, nonresident winery permit holder, or nonresident unlicensed manufacturer may not use or promote the use of a practice prohibited under paragraph (1) of this subsection to sell or distribute alcoholic beverages to or through a licensed manufacturer, licensed wholesaler, or county dispensary.</text> </level> </level> <level label="c"> <text>A supplier, nonresident dealer, resident dealer, nonresident winery permit holder, or wholesaler may not make a discount, rebate, or depletion allowance that is offered on a product dependent on the pricing policy or practice of the license holder who is invoiced for the product.</text> </level> <level label="d"> <level label="1"> <text>This section does not restrict a wholesaler, nonresident dealer, resident dealer, or nonresident winery permit holder from limiting the quantity of alcoholic beverages to be sold to a license holder under a voluntary or compulsory rationing plan.</text> </level> <level label="2"> <text>A wholesaler, nonresident dealer, resident dealer, or nonresident winery permit holder is not required to sell to all license holders from whom orders are received.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-317" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="3" subtitle_name="Wholesaler's Licenses"> <text>A holder of a wholesaler’s license may not enter into an agreement with a retail dealer that limits the purchases or sales of the retail dealer to the products of any producer.</text> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-401" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="4" subtitle_name="Water Vessel, Railroad, and Aircraft Licenses"> <text>A license or permit is not required for a transport plane furnished with a cocktail lounge or a water vessel carrying passengers or cargo to a foreign port if:</text> <level label="1"> <text>alcoholic beverages are purchased from a manufacturer or wholesaler; and</text> </level> <level label="2"> <text>satisfactory evidence is submitted in writing to the Executive Director that the alcoholic beverages are for sale or use beyond the continental limits and possessions of the United States.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-402" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="4" subtitle_name="Water Vessel, Railroad, and Aircraft Licenses"> <level label="a"> <text>There is a Class E (water vessel) beer, wine, and liquor license issued by the Executive Director.</text> </level> <level label="b"> <level label="1"> <text>The license is required to be obtained for each water vessel on which beer, wine, or liquor is sold.</text> </level> <level label="2"> <text>The license is valid throughout the State.</text> </level> </level> <level label="c"> <text>The license authorizes the owner or operator of a water vessel to sell beer, wine, or liquor for consumption on the vessel if the water vessel is used:</text> <level label="1"> <text>for the transportation for hire of passengers from ports in the State to other ports in the State, coastal ports in other states, or foreign ports; or</text> </level> <level label="2"> <text>to operate tours within State waterways.</text> </level> </level> <level label="d"> <text>The annual license fee is $150.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-403" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="4" subtitle_name="Water Vessel, Railroad, and Aircraft Licenses"> <text>A license holder may not sell alcoholic beverages while the water vessel for which the license is issued is docked to a wharf or pier in a jurisdiction where local law prohibits the sale.</text> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-404" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="4" subtitle_name="Water Vessel, Railroad, and Aircraft Licenses"> <level label="a"> <text>In this section, “light wine” means wine that contains not more than 15.5% of alcohol by volume.</text> </level> <level label="b"> <text>There is a Class F (railroad) beer and light wine license issued by the Executive Director.</text> </level> <level label="c"> <text>The license is valid throughout the State.</text> </level> <level label="d"> <text>The license authorizes the owner or operator of a steam, diesel, or electric railroad in the State or a car on a line of the railroad that is a club, parlor, buffet, observation, sleeping, or dining car to sell beer and light wine in those cars, for consumption in those cars.</text> </level> <level label="e"> <text>The annual license fee is $60.</text> </level> <level label="f"> <level label="1"> <text>Other provisions of this article may not be construed as applying to or affecting the sale of alcoholic beverages under a Class F beer and light wine license.</text> </level> <level label="2"> <text>This section may not be considered repealed by a local or general law unless the law expressly refers to and repeals this section.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-405" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="4" subtitle_name="Water Vessel, Railroad, and Aircraft Licenses"> <level label="a"> <text>There is a Class F (railroad) beer, wine, and liquor license issued by the Executive Director.</text> </level> <level label="b"> <text>The license is valid throughout the State.</text> </level> <level label="c"> <text>The license authorizes the owner or operator of a steam, a diesel, or an electric railroad in the State or a car on a line of the railroad that is a club, a parlor, a buffet, an observation, a sleeping, or a dining car to sell beer, wine, and liquor in those cars, for consumption in those cars.</text> </level> <level label="d"> <text>The license shall be kept in the chief operating office of the corporation in the State.</text> </level> <level label="e"> <text>The annual license fee is $200.</text> </level> <level label="f"> <level label="1"> <text>Other provisions of this article may not be construed as applying to or affecting the sale of alcoholic beverages under a Class F beer, wine, and liquor license.</text> </level> <level label="2"> <text>This section may not be considered repealed by a local or general law unless the law expressly refers to and repeals this section.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-406" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="4" subtitle_name="Water Vessel, Railroad, and Aircraft Licenses"> <level label="a"> <text>There is a Class G (aircraft) beer, wine, and liquor license issued by the Executive Director.</text> </level> <level label="b"> <text>The license is valid throughout the State.</text> </level> <level label="c"> <text>The license authorizes the owner or operator of aircraft operated on regularly scheduled flights over any part of the State to sell beer, wine, and liquor in the aircraft for consumption in the aircraft.</text> </level> <level label="d"> <text>The annual license fee is $200.</text> </level> <level label="e"> <text>This section may not be considered repealed by a local or general law unless the law expressly refers to and repeals this section.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-407" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="4" subtitle_name="Water Vessel, Railroad, and Aircraft Licenses"> <level label="a"> <level label="1"> <text>An applicant for a Class E, Class F, or Class G license shall submit to the Executive Director an application in the form that the Executive Director provides.</text> </level> <level label="2"> <text>An application shall be made under oath.</text> </level> </level> <level label="b"> <text>Except as provided in subsection (c) of this section, the application shall be made on behalf of an entity that is a corporation, a limited liability company, or an incorporated or unincorporated club by three officers or employees residing in the State who are authorized by the entity to apply for the license.</text> </level> <level label="c"> <level label="1"> <text>If there are fewer than three officers, directors, or authorized individuals of the entity, all officers, directors, or authorized individuals shall make the application.</text> </level> <level label="2"> <text>A stockholder on behalf of a close corporation may make the application if:</text> <level label="i"> <text>there are no officers or directors of the close corporation; and</text> </level> <level label="ii"> <text>there is an affirmative vote of the stockholders holding a majority of the stock.</text> </level> </level> <level label="3"> <text>If three principal officers of an entity are applicants for a Class G license, no applicant need be a registered voter, taxpayer, or resident of the State.</text> </level> <level label="4"> <text>Except as provided in paragraph (5) of this subsection, if the application for a Class E or Class F license is made for the use of a limited liability company:</text> <level label="i"> <text>the license shall be applied for and issued to three of the authorized individuals for the company, as individuals; and</text> </level> <level label="ii"> <text>at least one of the applicants:</text> <level label="1"> <text>shall be a registered voter and taxpayer of the State when the application is submitted; and</text> </level> <level label="2"> <text>shall have resided in the State for at least 2 years before the application is submitted.</text> </level> </level> </level> <level label="5"> <text>In Baltimore City, an authorized individual of a limited liability company who holds a license for the use of the limited liability company that was granted on or before June 1, 2012, need not be a registered voter in Baltimore City.</text> </level> </level> <level label="d"> <level label="1"> <text>An application shall contain:</text> <level label="i"> <text>the name and address of the applicant;</text> </level> <level label="ii"> <text>the amount of time the applicant has resided in the State;</text> </level> <level label="iii"> <text>the name and address of the entity on whose behalf the license is sought;</text> </level> <level label="iv"> <text>the class of license sought;</text> </level> <level label="v"> <text>a statement that the applicant:</text> <level label="1"> <text>is a citizen of the United States;</text> </level> <level label="2"> <text>is at least 21 years old;</text> </level> <level label="3"> <text>has not been convicted of a felony;</text> </level> <level label="4"> <text>has not had a license for the sale of alcoholic beverages revoked; and</text> </level> <level label="5"> <text>if issued a license, will obey all laws relating to the business for which the license is sought;</text> </level> </level> <level label="vi"> <text>a statement that the entity for which the license is sought:</text> <level label="1"> <text>consents to the issuance of the license; and</text> </level> <level label="2"> <text>except as provided in paragraph (2) of this subsection, authorizes the Executive Director to inspect and search at any time, without warrant, the aircraft, railroad car, or water vessel to which the license applies;</text> </level> </level> <level label="vii"> <text>the names and addresses of all of the officers of the entity; and</text> </level> <level label="viii"> <text>the signatures of the president or vice president of the entity, and the three officers to whom the license shall be issued.</text> </level> </level> <level label="2"> <text>An inspection or a search conducted under paragraph (1)(vi)2 of this subsection may not be at a time or in a manner that delays or interferes with the movement of an aircraft, a train, or a water vessel.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-408" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="4" subtitle_name="Water Vessel, Railroad, and Aircraft Licenses"> <level label="a"> <text>A Class E, Class F, or Class G license expires 10 days after the last remaining individual to whom the license is issued dies or is declared incompetent.</text> </level> <level label="b"> <level label="1"> <text>Before a license under subsection (a) of this section expires, the Executive Director shall issue a replacement license containing the privileges conferred by the original license if:</text> <level label="i"> <text>the Executive Director receives from an individual on behalf of the license holder an application for the replacement license within 10 days after the last remaining individual dies or is declared incompetent; and</text> </level> <level label="ii"> <text>except as provided in paragraph (2) of this subsection, the application is accompanied by payment of a fee of $1.</text> </level> </level> <level label="2"> <text>In Frederick County, a fee may not be charged for a new license.</text> </level> <level label="3"> <text>A replacement license expires at the end of the license year.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-501" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="5" subtitle_name="State Caterer's Licenses"> <level label="a"> <text>There is a State caterer’s license.</text> </level> <level label="b"> <text>The license may be issued as a general statewide or a limited statewide caterer’s license.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-502" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="5" subtitle_name="State Caterer's Licenses"> <level label="a"> <text>The Executive Director may issue a State caterer’s license to a person that:</text> <level label="1"> <text>is engaged in the business of catering;</text> </level> <level label="2"> <text>meets all State and local requirements for and holds all required licenses relating to the conduct of the catering business;</text> </level> <level label="3"> <text>holds any catering license that may be required under this article in the jurisdiction in which the person’s principal place of business is located;</text> </level> <level label="4"> <level label="i"> <text>holds a retail license that may be annually renewed other than a Class C license; or</text> </level> <level label="ii"> <text>does not hold a license but has a permanent office and storage facility for alcoholic beverages in the State; and</text> </level> </level> <level label="5"> <text>meets all other requirements of this subtitle.</text> </level> </level> <level label="b"> <text>A licensed retail dealer that operates only in the jurisdiction under authority of the local licensing board need not acquire a State caterer’s license.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-503" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="5" subtitle_name="State Caterer's Licenses"> <level label="a"> <level label="1"> <text>A general statewide or limited statewide caterer’s license authorizes the holder to:</text> <level label="i"> <text>acquire alcoholic beverages:</text> <level label="1"> <text>if the holder operates under a retail license that may be annually renewed, through a holder of a wholesaler’s license; or</text> </level> <level label="2"> <text>except as provided in §§ 25–307, 29–306,32–306, 32–309(e), and 33–305 of this article, through a licensed retail dealer that has off–sale privileges;</text> </level> </level> <level label="ii"> <text>serve alcoholic beverages at a catered event anywhere in the State to individuals who have attained the legal drinking age on premises that are unlicensed or for which a temporary license has been issued by the local licensing board; and</text> </level> <level label="iii"> <text>except as provided in § 2–504(b)(2) of this subtitle, store unused alcoholic beverages at the holder’s principal place of business for use at other catered events.</text> </level> </level> <level label="2"> <text>The holder may sell and serve alcoholic beverages during the hours and on the days that a holder of a Class B license may operate in the jurisdiction where the catered event is conducted.</text> </level> </level> <level label="b"> <text>A general statewide caterer’s license authorizes the holder to provide catering services in any jurisdiction in the State.</text> </level> <level label="c"> <text>A limited statewide caterer’s license authorizes the holder to provide catering services in not more than three contiguous and designated jurisdictions in the State if the total population of the designated jurisdictions does not exceed 1,000,000, based on the most recent population records of the Maryland Department of Health.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-504" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="5" subtitle_name="State Caterer's Licenses"> <level label="a"> <text>At each catered event at which alcoholic beverages are served, the holder of a general statewide or limited statewide caterer’s license shall:</text> <level label="1"> <text>supply service personnel, including bartenders and waiters;</text> </level> <level label="2"> <text>ensure that the service personnel are present at all times during the catered event;</text> </level> <level label="3"> <text>have at least one individual at the catered event who has been certified by an alcohol awareness program under § 4–505 of this article;</text> </level> <level label="4"> <text>ensure that the sale of food represents at least 70% of the total cost of the catered event; and</text> </level> <level label="5"> <text>return all unopened containers of alcoholic beverages to the holder’s principal place of business at the end of the catered event.</text> </level> </level> <level label="b"> <level label="1"> <text>The holder of a general statewide or limited statewide caterer’s license may not:</text> <level label="i"> <text>deliver alcoholic beverages to a catered event without service personnel present on the premises of the catered event; and</text> </level> <level label="ii"> <text>except when operating under an on–premises retail license that may be annually renewed issued by a local licensing board, serve alcoholic beverages at:</text> <level label="1"> <text>the holder’s principal place of business; or</text> </level> <level label="2"> <text>an event for which the holder is a sponsor or promoter.</text> </level> </level> </level> <level label="2"> <text>To ensure product integrity, a partially used keg of a malt beverage may not be used at another catered event.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-505" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="5" subtitle_name="State Caterer's Licenses"> <level label="a"> <text>The annual fee for a general statewide caterer’s license is $2,000.</text> </level> <level label="b"> <level label="1"> <text>The annual fees for a limited statewide caterer’s license are:</text> <level label="i"> <text>for designated jurisdictions that have a total population of not more than 300,000, $750;</text> </level> <level label="ii"> <text>for designated jurisdictions that have a total population of more than 300,000 but less than 600,000, $1,000; and</text> </level> <level label="iii"> <text>for designated jurisdictions that have a total population of at least 600,000, $1,500.</text> </level> </level> <level label="2"> <text>The fee for a limited statewide caterer’s license is based on the most recent population records of the designated jurisdictions in which the applicant or limited statewide caterer’s license holder provides catering services, as compiled by the Maryland Department of Health.</text> </level> </level> <level label="c"> <level label="1"> <text>Subject to paragraph (2) of this subsection, an applicant for a general statewide or limited statewide caterer’s license that holds a retail license that may be annually renewed and a special catering license or that is required to pay an additional fee to provide catering services in the applicant’s jurisdiction is entitled to a credit against the license fee.</text> </level> <level label="2"> <text>The credit may be granted if:</text> <level label="i"> <text>the credit does not exceed the additional catering fee required to be paid in the jurisdiction; and</text> </level> <level label="ii"> <text>after the credit is applied against the license fee, at least a $250 fee remains to be paid.</text> </level> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-506" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="5" subtitle_name="State Caterer's Licenses"> <level label="a"> <text>A local licensing board may conduct an investigation at a catered event to enforce the prohibitions under §§ 6–304 and 6–307 of this article against selling or providing alcoholic beverages to individuals who have not attained the legal drinking age or are visibly under the influence of an alcoholic beverage.</text> </level> <level label="b"> <text>If a local licensing board determines that alcoholic beverages were unlawfully sold or provided at a catered event:</text> <level label="1"> <text>the local licensing board shall report its findings to the Executive Director; and</text> </level> <level label="2"> <text>the Executive Director shall take the action the Executive Director determines is appropriate.</text> </level> </level> </section>