Each license specified in this subtitle is a manufacturer’s license that the Executive Director issues.

There is a Class 1 distillery license. The license shall be obtained for each trade name and each distillery in the State. A license holder may: establish and operate a plant for distilling, rectifying, blending, and bottling, at the location described in the license: brandy; rum; whiskey; alcohol; and neutral spirits; sell and deliver the alcoholic beverages: in bulk to a person in the State that is authorized to acquire them; and to a person outside the State that is authorized to acquire them; 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; acquire alcoholic beverages from the holder of a manufacturer’s license or wholesaler’s license or nonresident dealer’s permit for use in manufacturing; conduct guided tours of the licensed premises; 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; serve samples blended with other products manufactured by the license holder or nonalcoholic ingredients; and 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 subject to subsection (i) of this section, sell liquor manufactured by the license holder that is mixed with other nonalcoholic ingredients. A license holder or entity in which a license holder has a pecuniary interest may not act as a caterer of food. 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. A Class 1 distillery license allows the license holder to operate 7 days a week. 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. 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. 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. 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. 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. A local licensing board: may establish and charge a permit fee; and shall require the permit holder to: comply with the alcohol awareness requirements under § 4–505 of this article; and abide by all applicable trade practice restrictions. 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. The license holder shall report to the Executive Director annually on a form provided by the Executive Director on: the amount of alcoholic beverages produced under the license; the amount of alcoholic beverages sold for off–premises consumption; and the amount of alcoholic beverages served for on–premises consumption. 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. The annual license fee: shall be determined by the Executive Director; and may not exceed $2,000.

There is a Class 9 limited distillery license. The limited distillery license may be issued only to a holder of a: 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 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. A holder of the limited distillery license: may establish and operate a plant in the State for distilling, rectifying, and bottling brandy, rum, whiskey, alcohol, and neutral spirits; 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; after acquiring an individual storage permit, may store on the licensed premises those products manufactured under the license; 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; may sell the products manufactured under the license at retail in a manner consistent with the underlying Class D or Class B license; may conduct guided tours of that portion of the licensed premises used for the limited distillery operation; and 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: have attained the legal drinking age; participated in a guided tour; and are present on that portion of the premises used for the limited distillery operation. A holder of the limited distillery license may not: apply for or possess a wholesaler’s license, except for a Class 8 liquor wholesaler’s license; sell bottles of the products manufactured at the Class 9 limited distillery on that part of the premises used for the distillery operation; 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; 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; manufacture or rectify more than 31,000 gallons of product each calendar year for any other brand or entity; and own, operate, or be affiliated in any manner with another manufacturer. 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. A holder of the limited distillery license shall abide by all trade practice restrictions applicable to distilleries. The annual license fee: shall be determined by the Executive Director; and may not exceed $500.

There is a Class 2 rectifying license. A license holder may: establish and operate a plant for rectifying, blending, and bottling alcoholic beverages at the location described in the license; sell and deliver alcoholic beverages to: a holder of a Class 1 distillery license, Class 2 rectifying license, or wholesaler’s license; a holder of a permit that is authorized to acquire the alcoholic beverage; and a person outside the State that is authorized to acquire the alcoholic beverage; 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; 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 conduct guided tours of the licensed premises; and 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. A license holder or entity in which a license holder has a pecuniary interest may not act as a caterer of food. Subject to subsection (e) of this section, a license holder may conduct the activities specified in subsection (b)(5) of this section: 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 for on–premises consumption of products manufactured at the licensed premises: from 10 a.m. to 6 p.m. each day; or 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. A Class 2 rectifying license allows the license holder to operate 7 days a week. 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. 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. 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. The annual license fee: shall be determined by the Executive Director; and may not exceed $600.

There is a Class 3 winery license. A license holder may: establish and operate a plant for fermenting and bottling wine at the location described in the license; import bulk wine from the holder of a nonresident dealer’s permit; acquire bulk wine from the holder of a Class 4 limited winery license; sell and deliver wine to: a holder of a wholesaler’s license; a holder of a permit that is authorized to acquire wine; and a person outside the State that is authorized to acquire wine; 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 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. An individual may purchase wine under subsection (b)(5) of this section if the individual has attained the legal drinking age. The license holder shall report to the Executive Director annually on a form provided by the Executive Director on: the amount of alcoholic beverages produced under the license; the amount of alcoholic beverages sold for off–premises consumption; and the amount of alcoholic beverages served for on–premises consumption. 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. The annual license fee: shall be determined by the Executive Director; and may not exceed $750.

In this section, “Maryland–grown agricultural product” means any product produced or cultivated on a farm or vineyard in the State. “Maryland–grown agricultural product” does not include: cannabis; or any other product containing tetrahydrocannabinol as defined in § 36–1102 of this article. There is a Class 4 limited winery license. A license holder may: subject to paragraph (2) of this subsection, from available Maryland agricultural products: ferment and bottle wine; and distill and bottle pomace brandy; sell and deliver the wine and pomace brandy to: a holder of a wholesaler’s license; a holder of a permit that is authorized to acquire wine or pomace brandy; or a person outside the State that is authorized to acquire wine or pomace brandy; and sell and deliver bulk wine to the holder of a Class 3 winery license. A license holder: 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 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. 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. 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. 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. A license holder may: sell wine and pomace brandy produced by the license holder for on– and off–premises consumption; 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: at no charge; or for a fee; and subject to paragraphs (6) and (7) of this subsection, prepare, sell, or serve only: bread and other baked goods; chili; chocolate; crackers; cured meat; fruits (whole and cut); hard and soft cheese (whole and cut); salads and vegetables (whole and cut); the following items made with Maryland wine: ice cream; jam; jelly; and vinegar; pizza; sandwiches and other light fare; soup; and condiments. A caterer is not limited to preparing, selling, or serving only the foods specified in paragraph (5)(iii) of this subsection. A license holder or entity in which the license holder has a pecuniary interest may not act as a caterer of food. 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. Except as provided in Division II of this article, the license allows the license holder to operate 7 days a week. 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. The place listed on the license shall be in compliance with § 1–405(b) of this article. A license holder may: 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; 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; 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; purchase pomace brandy only for blending with wine; import, export, and transport its wine and pomace brandy in accordance with this section; and produce wine and pomace brandy at a warehouse for which the license holder has been issued an individual storage permit, if: the license holder does not serve or sell wine or pomace brandy at a warehouse to the public; and the Executive Director has full access at all times to the warehouse to enforce this article. A Class 4 limited winery may be located only at the place stated on the license. If a license holder maintains the records and files the reports that the Comptroller and the Executive Director require, the license holder may: in the State, conduct winemaking and packaging activities at another federally bonded winery or limited winery; or outside the State, conduct winemaking and packaging activities, other than fermentation, at another federally bonded winery. Throughout the winemaking process, the license holder shall: maintain ownership of the wine or pomace brandy; and ensure that the wine or pomace brandy returns to the location of the limited winery. The license holder shall report to the Executive Director annually on a form provided by the Executive Director on: the amount of alcoholic beverages produced under the license; the amount of alcoholic beverages sold for off–premises consumption; and the amount of alcoholic beverages served for on–premises consumption. 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. 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. The annual license fee: shall be determined by the Executive Director; and may not exceed $200.

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. There is a Class 5 brewery license. A license holder may: establish and operate a plant for brewing and bottling malt beverages at the location described in the license; import beer from a holder of a nonresident dealer’s permit; 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; sell and deliver beer to: a holder of a wholesaler’s license that is authorized to acquire beer; or a person outside of the State that is authorized to acquire beer; 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: has attained the legal drinking age; and is participating in a guided tour of the brewery or attends a scheduled promotional event or other organized activity at the brewery; 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; subject to subsection (f) of this section, sell beer at the location described in the license for on–premises consumption; and 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. An individual may purchase beer under subsection (c)(6) of this section if the individual has attained the legal drinking age. The annual license fee: shall be determined by the Executive Director; and may not exceed $1,500. 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. On request, a local licensing board may grant an applicant a conditional on–site consumption permit or a conditional Class D beer license. The conditional permit or conditional license shall become effective after the applicant: files a completed brewer’s notice form with the U.S. Department of Treasury; obtains a Class 5 brewery license; and fulfills any other obligation required by law that the local licensing board identifies. 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: beer: of which the holder of the Class 5 license is the brand owner; and that is fermented and brewed entirely by the license holder at a location authorized by this section; 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 subject to paragraph (3) of this subsection, beer brewed at a location other than the Class 5 brewery if: 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; 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: 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 2% of total finished production under the Class 5 brewery license; and the license holder contracts with or on behalf of a holder of a manufacturer’s license or nonresident dealer’s permit; or the beer is manufactured by an affiliate of the license holder. 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. 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. The total amount of beer sold each year for on–premises consumption under this subsection may not exceed 5,000 barrels. 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: establish an equivalent license; and require the applicant to obtain that equivalent license. A local licensing board may charge a fee for granting an on–site consumption permit. 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: comply with the alcohol awareness requirements under § 4–505 of this article; and abide by all applicable trade practice restrictions. This subsection does not apply to: 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; 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; 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; a permit issued under § 2–140 of this title; and a guided tour during which: samples of beer are served under subsection (c)(5) of this section; or beer is sold for off–premises consumption under subsection (c)(6) of this section. This subsection applies to: a holder of a Class 5 brewery license who: after April 1, 2017, obtains an on–site consumption permit and a Class D beer license or equivalent license for on–premises consumption; or 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 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. 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. All beer offered, served, or sold to a consumer under subsection (c)(5) or (6) of this section shall be: fermented and brewed entirely at the Class 5 brewery; or beer of which the license holder or an affiliate of the license holder is the brand owner. 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: on completion of an application form that the Executive Director provides; and at no cost to the holder of the Class 5 brewery license. A refillable container permit may be renewed each year concurrently with the renewal of the Class 5 brewery license. 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. The license holder shall report to the Executive Director annually on a form provided by the Executive Director on: the amount of alcoholic beverages produced under the license; the amount of alcoholic beverages sold for off–premises consumption; and the amount of alcoholic beverages sold for on–premises consumption. 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.

There is a Class 6 pub–brewery license. 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. The pub–brewery shall be located immediately adjacent to the restaurant where the malt beverage is to be sold to the public. A license holder: may brew malt beverages at a single location for consumption on the restaurant premises; but may not brew more than 2,000 barrels of malt beverage each calendar year. A license holder may sell at retail malt beverages for off–premises consumption in a sealed refillable container. The container: may be returned for refilling; and shall be sealed by the license holder when refilled. 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. 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. 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. The license is void if: the restaurant described in subsection (b)(1) of this section ceases to be operated as a restaurant; or the Class B beer, wine, and liquor (on–sale) license of the license holder is revoked or transferred to a different location. The annual license fee is $500. 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. 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. The Commission shall include the information reported under this subsection in the annual report submitted under § 1–316 of this article.

There is a Class 7 micro–brewery license. 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. A license holder may: brew and bottle malt beverages at the location described in the license; 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; 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; store the finished product under an individual storage permit or at a licensed public storage facility for subsequent sale and delivery: to a holder of a wholesaler’s license; to an authorized person outside the State; or for shipment back to the micro–brewery location for sale on the retail premises; 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: 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 the temporary delivery agreement is in writing; 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 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. 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. 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. A license holder that wishes to produce more than the barrelage authorized under paragraph (1) of this subsection shall: divest itself of any retail license; and obtain a Class 5 brewery license. 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. A license holder: 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 may not be granted a wholesaler’s license other than a Class 7 limited beer wholesaler’s license. The on–sale privilege authorizes the license holder, each calendar year, to sell at retail for on–premises consumption: up to 5,000 barrels of beer brewed under the license; or if the license holder has licenses for two locations, beer that: totals annually up to 5,000 barrels at each location; and has been brewed at the location where it is sold. A license holder may sell and deliver beer brewed under the license to: a holder of a wholesaler’s license; or a person outside the State that is authorized to acquire beer. 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. A license holder may sell at retail beer brewed under the license for off–premises consumption: in a sealed refillable container that: may be returned for refilling; and shall be sealed by the license holder when refilled; and as prepackaged beer in a nonrefillable container. The annual license fee: shall be determined by the Executive Director; and may not exceed $500. 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: the total beer production of the license holder in the preceding fiscal year; and the total sales of the license holder for on–site consumption. 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. The Commission shall include the information reported under this subsection in the annual report submitted under § 1–316 of this article.

There is a Class 8 farm brewery license. 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: a wholesaler licensed to sell and deliver beer in the State; or a person in another state authorized to acquire beer. 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. The licensed farm shall be: an agribusiness engaged in the production, showcasing, preparation, and sale of farm products; and actively engaged in agritourism by exposing the public to farming and value–added farming practices. A license holder may: sell beer produced by the license holder for on–premises and off–premises consumption; in an amount not exceeding 6 fluid ounces per brand, provide samples of beer that the license holder produces to a consumer: at no charge; or for a fee; sell or serve: bread and other baked goods; chili; chocolate; crackers; cured meat; fruits (whole and cut); hard and soft cheese (whole and cut); salads and vegetables (whole and cut); ice cream; jam; jelly; vinegar; pizza; prepackaged sandwiches and other prepackaged foods ready to be eaten; soup; and condiments; and subject to subsection (e)(2) of this section, sell or serve any food if the license holder: is licensed to operate a food establishment under Title 21, Subtitle 3 of the Health – General Article; uses a licensed food truck; uses a licensed caterer; or is selling or serving cottage industry food prepared on the farm under § 21–330.1 of the Health – General Article; 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; brew, bottle, or contract for not more than 15,000 barrels of beer each calendar year; 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; import, export, and transport its beer in accordance with this section; 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: the license holder does not serve or sell beer at the warehouse; and the Executive Director has full access at all times to the warehouse to enforce this article; 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: 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 the temporary delivery agreement is in writing; and in accordance with subsection (b)(3) of this section: host festivals; provide live music or other entertainment; or rent portions of the licensed farm to the public or private individuals or groups for functions or events, including: banquets; weddings; anniversary parties; birthday parties; fundraisers; and other similar celebrations or events. A Class 8 farm brewery may be located only at the place stated on the license. 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. The Executive Director has exclusive regulatory authority over the operation of a Class 8 farm brewery. Except as provided in a local fire safety code, the Executive Director may not limit the number of visitors on the licensed premises. This subsection does not apply to a permit issued under § 2–140 of this title. 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. 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. 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. A license holder may sponsor a multibrewery activity at the location issued on the license that: includes the products of other Maryland breweries; and provides for the sale of products in the manner authorized under the license. 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. The multibrewery activity: may be held from 10 a.m. to 10 p.m. each day; and may not exceed 3 consecutive days. The annual license fee: shall be determined by the Executive Director; and may not exceed $200. 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. 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. The Executive Director shall include the information reported under this subsection in the annual report submitted under § 1–316 of this article.

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: for a sole proprietorship, the individual applicant; for a corporation or limited liability company, the individual who qualifies as a resident applicant; or for a partnership, each partner of the applicant.

This subsection does not apply to a Class 6 pub–brewery license. 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. 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. The sampling, sales, and consumption of products shall be consistent with the authorization for each license. 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. 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. The holder of a micro–brewery license may apply for and obtain not more than one additional micro–brewery license for another premises. 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. 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. 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. 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. 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. 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: totals annually not more than 5,000 barrels in aggregate from all of its locations; and has been brewed at the location from where it is distributed. 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. 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.

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. 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.

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. 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.

A holder of a manufacturer’s license may not sell beer to a retail dealer on terms other than for cash on delivery. 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.

In this section the following words have the meanings indicated. “Advertisement” includes a graphic or nongraphic sign, display, poster, and placard. “Manufacturing entity” means: a holder of a manufacturer’s license or a person connected with the business of the holder; or a distiller, nonresident dealer, resident dealer, brewer, rectifier, blender, or bottler of alcoholic beverages. Except as otherwise provided in this section: a manufacturing entity may not have a financial interest in: the premises on or in which a license holder sells alcoholic beverages at retail; or a business that a license holder conducts; a manufacturing entity may not lend money or any other thing of value, make a gift, or offer a gratuity to a retail dealer; 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 a manufacturing entity may not provide an advertisement to a retail dealer. This subsection applies only to brewed products. 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: is worth more than $150; and advertises the beer or malt products of a particular brewer, nonresident dealer, resident dealer, or beer wholesaler. 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. This subsection applies only to wine and liquor. 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: the utilitarian value is secondary and only incidental to the value as an advertisement; 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 the cost of installing these materials does not exceed the usual cost in the locality. 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: is worth not more than $150; is temporary; and has no other utilitarian value. 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. 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. Subsections (b) and (c) of this section do not apply to: a holder of a Class 6 pub–brewery license with respect to the malt beverages brewed on the premises; or a holder of a Class 7 micro–brewery license with respect to the malt beverages brewed on the premises that are sold: on the licensed premises of the brewery; or in a restaurant or brewery pub owned, conducted, and operated by the holder in or adjacent to the brewery for which it is licensed. 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.

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. 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: one dispensary and another dispensary; one wholesaler and another wholesaler; or one retailer and another retailer that purchases alcoholic beverages that bear the same brand and trade name, and are similar in age and quality. 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. 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. 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. 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.

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.