In this subtitle the following words have the meanings indicated.
“Dispensary” means a store established and maintained by the Liquor Control Board for the sale of alcoholic beverages.
“Liquor Control Board” means the Liquor Control Board for the county.
There is a Liquor Control Board for Wicomico County.
The Governor shall appoint three members to the Liquor Control Board with the advice and consent of the Senate.
Each member of the Liquor Control Board shall be:
a resident and voter in the county; and
an individual of high character, integrity, and recognized business capacity.
A member of the Liquor Control Board may not:
have a direct or indirect financial interest in the manufacture or sale of alcoholic beverages; or
derive profit or remuneration from the sale of alcoholic beverages other than the salary or wages payable for the discharge of the duties of the office.
A person who violates this subsection is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 3 years or a fine not exceeding $2,000 or both.
The term of a member is 2 years and begins on July 1.
If a vacancy occurs, it shall be filled for the unexpired term in the same manner as the original appointment.
The Liquor Control Board shall elect a chair from among its members.
The Liquor Control Board shall meet as often as necessary for the public business.
The chair of the Liquor Control Board shall receive an annual salary of $6,000.
The other members of the Liquor Control Board shall receive an annual salary of $5,000.
The Liquor Control Board shall appoint employees necessary to operate the dispensary system, set employee compensation, and require a bond for the faithful performance of employee duties.
An employee of the Liquor Control Board may not:
have a direct or indirect financial interest in the manufacture or sale of alcoholic beverages; or
derive profit or remuneration from the sale of alcoholic beverages other than the salary or wages payable for the discharge of the duties of the office.
A person who violates this paragraph is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 3 years or a fine not exceeding $2,000 or both.
The county may lend money to the Liquor Control Board to provide the Liquor Control Board with adequate working capital to acquire, establish, and operate the dispensary system and warehouse facilities.
The county may finance a loan under this subsection by issuing notes, certificates of indebtedness, or bonds as the county finds necessary.
The Liquor Control Board may borrow money from a banking institution on the Liquor Control Board’s own credit.
The aggregate sum advanced to or borrowed by the Liquor Control Board may not exceed $500,000.
Money shall bear interest at the lowest rate possible, not exceeding 6% a year that, under this subtitle is:
loaned to the Liquor Control Board by the county;
borrowed by the county; or
borrowed by the Liquor Control Board.
Money loaned or borrowed, and the interest on it, shall be repaid from the receipts from sales made at the dispensaries.
Subject to § 1–319 of this article, the Liquor Control Board may:
purchase from a holder of a wholesaler’s license or manufacturer’s license alcoholic beverages that the Liquor Control Board is authorized to sell and on which the excise tax imposed by § 5–102 of the Tax – General Article is paid;
purchase from a holder of a resident or nonresident dealer’s permit and import for resale alcoholic beverages that the Liquor Control Board is authorized to sell; and
resell the alcoholic beverages once the excise tax is paid;
sell alcoholic beverages in sealed containers at prices that it determines and that are uniform in all dispensaries;
refuse to sell alcoholic beverages to a person that, in the judgment of the Liquor Control Board, is not suitable to purchase or consume the alcoholic beverages;
restrict by any method the quantity of alcoholic beverages that may be sold to an individual consumer or license holder at or during any time;
enter into a contract or adopt regulations necessary or desirable to carry out this article;
sell and ship outside the county a container or package of alcoholic beverages kept for sale in a dispensary, if not prohibited by law in the place where the shipment is consigned;
subject to the approval of the county, rent, lease, or purchase premises necessary for the operation of the dispensaries; and
establish the hours of sale for dispensaries, outside of which a dispensary may not remain open.
The Liquor Control Board may establish and maintain stores known as “dispensaries”.
A dispensary:
may sell sparkling or fortified wine or other alcoholic beverages containing more than 14% alcohol by volume; and
shall sell the alcoholic beverages in sealed packages or containers.
A dispensary may sell chilled and nonchilled beer, wine, liquor, ice, or bottled water.
Except as provided in paragraph (2) of this subsection, all alcoholic beverages other than beer and wine shall be purchased from the Liquor Control Board.
A holder of a Class A, B, C, or D license may purchase alcoholic beverages from a dispensary or a wholesaler.
A dispensary shall sell liquor at wholesale to a beer, wine, and liquor license holder:
for a Class A, B, or C license, at a markup not exceeding 15% above the operating cost to the dispensary; or
for a Class D license, at a markup not exceeding 15% above the wholesale cost to the dispensary.
The Liquor Control Board may hold wine tasting and sampling promotional events in dispensaries in accordance with this subsection.
The Liquor Control Board:
may not serve to an individual more than 1 ounce from each brand at an event;
may not allow more than six wine bottles to be open at any one time at an event;
may not conduct events in the county on more than 10 days in any 12–month period;
shall mark each wine bottle used for an event, once opened, that it is to be used only for tasting or sampling;
may not mix the contents of a wine bottle with the contents of another wine bottle;
shall destroy all empty wine bottles;
shall allow on–premises consumption at an event; and
may not conduct wine tasting and sampling using a drive–through window.
A person may not open or consume the contents of a sealed container or package on the premises of the dispensary where sold.
Title 4, Subtitle 2 of this article does not apply to this section.
The Liquor Control Board shall apply proceeds derived from the operation of dispensaries first toward the repayment of money loaned to or borrowed by the Liquor Control Board.
After repayment under subsection (a) of this section, the Liquor Control Board, subject to the approval of the County Council, may create and maintain a reserve fund to:
provide adequate working capital; and
cover any losses sustained by the Liquor Control Board in operating the dispensaries.
The Liquor Control Board shall pay any remaining net proceeds to the county on January 1, April 1, August 1, and October 1 of each year.
The Liquor Control Board shall:
keep accurate records of:
all purchases of alcoholic beverages; and
a complete statement of the business conducted by the Liquor Control Board and the operational achievements of the dispensary system; and
submit annual and monthly reports to the County Council.
The records shall be open to inspection by the Comptroller or the Executive Director during regular business hours.
The Liquor Control Board shall publish an annual report submitted to the county on June 30 of each year in a newspaper of frequent and general circulation that is published in the county.
A supplier may enter into an agreement with a wholesaler or authorized representative of a wholesaler to replace, directly or indirectly, stale or out–of–date malt beverage products on retail licensed premises:
on a case for case basis;
at the supplier’s expense; and
under a plan that the Executive Director approves.
If a wholesaler refuses to replace stale or out–of–date malt beverage products on retail licensed premises under the plan described in subsection (a)(3) of this section, the supplier may unilaterally submit a replacement plan to the Executive Director for approval.
The replacement plan that the supplier unilaterally submits to the Executive Director may include the designation of an authorized representative or wholesaler outside the territory of the wholesaler who refuses to participate in the plan.