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<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>
