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<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>
