Title 14 — Subtitle 23. Alcohol, Tobacco, and Cannabis Commission

“Alcoholic beverage” means a spirituous, vinous, malt, or fermented liquor, liquid, or compound that:

“Alcoholic beverage” includes alcohol, brandy, whiskey, rum, gin, cordial, beer, and wine.

“Alcoholic beverage” does not include a confectionery food product that contains up to 5 percent of alcohol by volume and is regulated by the Maryland Department of Health under Health-General Article, §21-209, Annotated Code of Maryland.

A county liquor control board and a county dispensary; and

For the delivery and billing purposes of Alcoholic Beverages Article, §2-213 and Title 2, Subtitle 3, Annotated Code of Maryland, a corporation on behalf of which an individual has obtained a license.

Accompany each delivery of wine and distilled spirits to licensed retailers;

Be delivered to licensed retailers on the invoice date, or at the latest, on the next delivery date to the area in which the licensed retailer is located; and

Be collected for between the date of the invoice and the applicable due date as scheduled by the Executive Director, unless collected at the time of delivery to the licensed retailer.

Purchase dates; and

Due dates for payments.

To the Executive Director those licensed retailers who do not pay an indebtedness for wine or distilled spirits on or before the established due date in the manner the Executive Director requires; and

To the licensed retailer simultaneously with the report filed with the Executive Director.

Contain the names and addresses of licensed retailers who have been reported to the Executive Director under §A(4) of this regulation; and

Be issued 2 business days after the due date established by the Executive Director.

Representatives of the licensed wholesaler may not pick up payments from licensed retailers for invoices due for the current list.

Representatives of licensed wholesalers may pick up payments from licensed retailers who are currently on the over-30-day credit control list issued by the Executive Director.

A licensed wholesaler and a nonresident winery permit holder may accept a duplicate check from a licensed retailer if an affidavit in a manner and form approved by the Executive Director and signed by the licensed retailer accompanies the duplicate check.

The Executive Director may limit the number of duplicate checks allowed in a calendar year for the purpose of placing or removing a licensed retail account on the over-30-day credit control list.

A total of two or more unpaid checks to one or more licensed manufacturers, licensed wholesalers, or nonresident winery permit holders in different list periods; or

Two or more unpaid checks to one licensed manufacturer, licensed wholesaler, or nonresident winery permit holder during one or more list periods, which:

Responsible Advertiser. The advertisement shall state the name and address of the producer, manufacturer, bottler, importer, wholesaler, or retail dealer responsible for its publication. The street name and number may be omitted in the address.

Class, Type, and Distinctive Designation. The advertisement shall contain a conspicuous statement of the class and type, or other designation of the product, corresponding with the complete designation which appears on the brand label of the product as required by federal regulations.

Alcohol Content. The alcohol content shall be stated in the manner and form in which it appears on the labels of distilled spirits advertised.

Percentage of Neutral Spirits and Name of Commodity. In the case of distilled spirits (other than cordials, liqueurs, and specialties) produced by blending or rectification, if neutral spirits have been used in the production of it, there shall be stated in the advertisement the percentage of neutral spirits so used and the name of the commodity from which the neutral spirits have been distilled in substantially the manner and form in which these statements appear on the labels of the distilled spirits advertised. In the case of neutral spirits or of gin produced by a process of continuous distillation, there shall be stated in the advertisement the name of the commodity from which the neutral spirits or gin has been distilled substantially in the manner and form in which this statement appears on the labels of the distilled spirits advertised.

“Line” or “Brand” Advertisements. Where an advertisement does not mention a specific product but merely refers to a class of distilled spirits (such as “whiskey”) and the advertiser markets more than one brand of distilled spirits of that class, or where the advertisement refers to several classes of distilled spirits (such as “whiskey”, “brandy”, “rum”, “gin”, “liqueur”, etc.) marketed under a single brand, the only mandatory information prescribed by this subsection applicable to the advertisement would be the name and address of the responsible advertiser.

Retail Dealers. Advertisements by retail dealers which merely refer to the availability of distilled spirits or wines in those establishments but which otherwise make no reference to a specific brand of distilled spirits or wines shall be subject only to the “Prohibited Statements” provisions of §C(3).

Required information shall be stated against a contrasting background and in type or lettering which is at least the equivalent of eight-point type;

Required information shall be so stated as to appear to be a part of the advertisement and may not be separated in any manner from the remainder of the advertisement;

When an advertisement relates to more than one product, the required information shall appear in such manner as to clearly indicate the particular products to which it is applicable;

Required information may not be buried or concealed in unrequired descriptive matter or decorative designs.

Restrictions. An advertisement may not contain:

Statements Inconsistent with Labeling. The advertisement may not contain any statement concerning a brand or lot of distilled spirits or wines that is inconsistent with any statement on the labeling of it.

Curative and Therapeutic Effects. The advertisement may not contain any statement, design, or device representing that the use of any distilled spirits or wines has curative or therapeutic effects, if the statement is untrue in any particular, or tends to create a misleading impression. Examples of these statements are:

Place of Origin. The advertisement may not represent that the distilled spirits or wines were manufactured in, or imported from, a place or country other than that of their actual origin, or were produced or processed by one who was not in fact the actual producer or processor.

Flags, Seals, Coats of Arms, Crests, and Other Insignia. An advertisement may not contain any statement, design, device, or pictorial representation of, or relating to, or capable of being construed as relating to the armed forces of the United States, or of the American flag, any State flag, or of any emblem, seal, insignia, or decoration associated with these flags or the armed forces of the United States. An advertisement may not contain any statement, device, design, or pictorial representation of or concerning any flag, seal, coat of arms, crest, or other insignia, likely to lead the consumer to believe falsely that the product has been endorsed, made, used by, produced for, or under the supervision of, or in accordance with the specifications of the government, organization, family, or individual with whom that flag, seal, coat of arms, crest, or insignia is associated.

Examples of prohibited statements are:

Restrictions. An advertisement for distilled spirits may not contain the words “bond”, “bonded”, “bottled in bond”, “aged in bond”, or phrases containing these or synonymous terms, unless those words or phrases appear upon the labels of the distilled spirits advertised, and are stated in the advertisement in the manner and form in which they appear upon the label.

Statements of Age. An advertisement for distilled spirits may not contain any statement, design, or device directly or by implication concerning age or maturity of any brand or lot of distilled spirits unless a statement of age appears on the labels of the advertised product. When this statement, design, or device concerning age or maturity is contained in any advertisement, it shall include (in direct conjunction with it and with substantially equal conspicuousness) all parts of the statement concerning age and percentages, if any, which appear on the label. However, an advertisement for any whiskey or brandy, which does not bear a statement of age on the label, or an advertisement for rum which is 4 years old or older, may contain general inconspicuous age, maturity, or other similar representations, such as “Aged in wood”, and “Mellowed in fine oak casks.”

Restrictions. An advertisement for wine may not contain:

Statement of Age. A statement of age or representation relative to age (including words or devices in any brand name or mark) may not be made, except that:

Statement of Bottling Dates. The statement of any bottling date may not be deemed to be a representation relative to age, if the statement appears without undue emphasis in the following form: “Bottled in--” (inserting the year in which the wine was bottled).

Statement of Miscellaneous Dates. No date, except as provided in C(4)(b) and C(4)(c) with respect to statement of vintage year and bottling date, shall be stated unless, in addition to it, and in direct conjunction with it, in the same size and kind of printing there shall be stated an explanation of the significance of the date. If any date refers to the date of establishment of any business, the date shall be stated without undue emphasis and in direct conjunction with the name of the person to whom it refers.

Consumers at a special event for which a temporary or permanent retail license is issued; or

Consumers at an on-premises promotion as defined in COMAR 14.23.04.01.

To provide a sample of an alcoholic beverage to a licensed retailer;

To donate alcoholic beverages to a bona fide charitable organization, nonprofit organization, or alcoholic beverage trade association;

To provide sample alcoholic beverages to bona fide alcoholic beverage experts; and

To provide alcoholic beverages to officers, officials, and employees of licensed wholesalers for personal and business use.

The sample is not in excess of one 200-milliliter container; or

If the alcoholic beverage is not available in a 200-milliliter container or smaller, then the sample is in one container of the next larger size.

Completed retailer receipts; or

Unused samples.

The expert signs a receipt for the product; and

Not more than three bottles of each brand is provided.

Made fast to a wharf, pier, piling, etc.; or

Underway.

Licensed retailer has held an alcoholic beverage retail license in Worcester County for a minimum of 2 consecutive years before the sale and delivery; and

Licensed wholesaler complies with the provisions of this regulation.

Immediately discontinue beer sales, credit or otherwise, to that licensed retailer; and

Notify the Executive Director in writing of the delinquency as soon as possible but not later than 12 noon on the next business day.

Name of the licensed wholesaler filing the report;

Name and trade name of the licensed retailer;

Full address of the licensed retailer;

Date and number of the original invoice; and

Amount of delinquency.

The name and license number of the Statewide caterer;

The name of the person or entity who has contracted for the catered event;

The address where the catered event will be conducted;

The date or dates of the catered event; and

Other information as may be required by the Executive Director.

The original certificate shall be maintained on the licensed premises of the Statewide caterer.

The second copy shall be conspicuously posted for the duration of the event on the premises where the event is held.

The third copy shall be mailed or delivered to the local board of license commissioners in the jurisdiction where the catered event is conducted not later than 5 days preceding the catered event.

Obtaining a temporary alcoholic beverage license from the local board of license commissioners; and

All alcoholic beverage activities at the catered event.

Program administrator's signature;

Program name;

Instructor's name;

Student's name;

Issuance date; and

4 year validation period;

The student's name;

The student's address;

The instructor's name;

The permit number;

The certification date; and

If known:

Course content;

Classroom or electronic hours; and

Testing component;

Student's name;

Student's address;

Dates of classroom or electronic training; and

Licensed retail establishment's name and address, if known; and

No warehousing of the alcoholic beverages being transported;

No unreasonable delay in transporting the alcoholic beverages;

Segregation of the alcoholic beverages from the alcoholic beverages being transported under the transporter's own wholesaler license;

A separate invoice for the alcoholic beverages being transported under the public transportation permit; and

Delivery of the alcoholic beverages without performance of any other service, such as solicitation, shelf management, product rotation, or any other acts that under Alcoholic Beverages Article, Annotated Code of Maryland, and the regulations may be legally performed by a licensed manufacturer, wholesaler, or permit holder.

For a given brand and size;

For a specific duration;

For a given amount per case;

Based upon sales from existing wholesaler inventories; and

Not conditioned upon purchases by a wholesaler.

Contains:

Is intended for ultimate sale to the consumer.

Entirely consumer oriented; and

Configured and packaged to show that it is intended for ultimate sale to the consumer.

Suppliers and wholesalers shall provide written communication to the Executive Director at least 14 days prior to its distribution, to include the type of alcoholic beverages, quantity amounts, size of containers, and any non-alcoholic items that are included in the special pack.

The Executive Director reserves the right to request more detailed information, including physical inspection or photograph, if a particular problem or question arises with regard to a specific filing.

Multiples of 12;

Half quantities;

Four 5 liters;

Four 4 liters;

Four 3 liters;

Six 3 liters;

Six 1¾ liters;

Eight or 6 1½ liter containers, but not more than one configuration per brand in any 12 consecutive months;

15, 12, or 9 1-liter containers, but not more than one configuration per brand in any 12 consecutive months;

15 or 12 750-milliliter containers, but not more than one configuration per brand in any 12 consecutive months; or

Any legal size packaged and sold as a single container.

“Wholesaler” means a person who purchases cigarettes directly from a manufacturer and only applies to the wholesale sales of cigarettes portion of the person’s business.

“Wholesaler” includes a person, who, as a sub-wholesaler:

The date, name, and address of the seller;

The name and address of the buyer;

The quantity and brands sold;

The price charged for each of the brands of cigarettes covered by the invoices;

The license number of the cigarette license of the seller; and

The method of delivery (whether delivered by the seller to the buyer's place of business or picked up by the buyer).

A label that indicates the licensee's name, address, and telephone number; and

The label provided by the Comptroller that states the:

Labor, including salaries of executives and officers;

Rent;

Depreciation;

Selling costs;

Maintenance of equipment;

Delivery costs;

Interest payable;

All types of licenses, taxes, insurance, and advertising; and

All other direct and indirect costs.

A summary of total income and expenses associated with the licensee's entire business, and a summary of total income and expenses associated with cigarettes on a form to be provided by the Comptroller, and using the information set forth in the most recently filed federal income tax return;

A certification statement signed by the owner, partner, or responsible corporate officer indicating that the summary of income and expenses as contained on the form required by §C(1)(a) of this regulation is true and accurate;

A statement signed by a certified public accountant indicating the CPA has reviewed the information provided and that it reasonable reflects the information shown in all material respects;

A copy of the most recently filed federal income tax return form with all associated schedules and attachments;

A copy of any filing by the licensee seeking approval from the revenue authority of Delaware, Pennsylvania, New Jersey, or New York for a lower cost of doing business during the 12 months immediately preceding the application;

A release executed by the owner, partner, or responsible corporate officer authorizing the Comptroller to obtain copies of any documents or data in the possession of any federal, state, or local agency concerning the applicant's request to sell cigarettes at a lower cost of doing business; and

Any other information requested by the Executive Director as may be necessary to review the application.

Captain's books, table tents, and similar items; and

A list for wine, spirits, and beer.

“Brand identifiable advertising material” means a distinctive or generic name, trademark, logo, or symbol, identifying the product of a brewery, distillery, rectifier, bottler, manufacturer, vintner, or winery.

“Brand identifiable advertising material” includes proprietary or contracted logos and symbols.

“Brand identifiable advertising material” does not include logos, symbols, or other depictions that are not brand related.

Documented title for a specific brand of alcoholic beverages; and

If applicable, obtained label approval from the Alcohol and Tobacco Tax and Trade Bureau.

A rebate offer by which a consumer, upon purchase of an alcoholic beverage product, is reimbursed monetarily by the supplier or independent clearinghouse representing the supplier; or

An offer by which a consumer, with or without consideration, may obtain merchandise, other than alcoholic beverage products, through a supplier or independent clearinghouse.

“Licensed retailer” means the alcoholic beverage premises as described by the alcoholic beverage retail license as issued by the respective county or city license issuing authority.

For the purpose of an arena class alcoholic beverage license, each separate vendor or business entity handling alcoholic beverages is considered a separate licensed retailer.

Intended to promote a brand owner or brand owner's product which is sponsored by a supplier, licensed wholesaler or retailer, or a nonlicensee, including but not limited to a charity, radio station, or third-party promotional agency; and

Held on the premises of an alcoholic beverage licensed retailer.

“Personalized material” means any advertising sign, wording, or information which is unique to a retailer or group of retailers.

“Personalized material” includes but is not limited to:

“Supplier” means a person or entity that sells alcoholic beverages to a licensed wholesaler in Maryland.

“Supplier” includes a brand owner, nonresident dealer permittee, agent of the brand owner or nonresident dealer permittee, and the holder of a Maryland manufacturer's license.

“Wholesaler” means a person or entity that holds an alcoholic beverage wholesale license pursuant to Alcoholic Beverages Article, Annotated Code of Maryland.

“Wholesaler” includes a nonresident winery permit holder.

At the point of purchase;

Through direct mail;

Through the print media; or

Via a portable data file that is accessible from the Internet.

A supplier who maintains an office in Maryland shall maintain records available for inspection by the Executive Director.

A supplier located out-of-State shall make records available to the Executive Director upon request within 48 hours.

Documentation shall include:

Records shall be preserved for 2 years after the date the coupon expires.

Designate in writing where the records will be maintained;

Designate in writing the person responsible for maintaining the records; and

Inform the Executive Director when the location or person responsible for the records changes.

Guest speakers,

Experts, or

Anyone operating under contractual or other agreements with the supplier or licensed wholesaler; and

On nonlicensed premises,

By an independent research agency, and

If the Executive Director has advance notice and has given approval 14 days before conducting the survey;

Spontaneous, and

Not announced in advance to the licensed retailer or public at large.

Nominal advertising items such as matches, pencils, buttons, can openers, recipes, pamphlets, and similar items; and

Nonapparel items as part of a nonstructured promotional campaign during a spontaneous and isolated visit to licensed retail premises.

The action is spontaneous and without prior notice to either the licensed retailer or consumer;

The alcoholic beverages are purchased from the licensed retailer at full price; and

The licensee or competitor licensee is not at the premises conducting a pre-announced or pre-planned promotional activity at the time of the visit (see Regulation .12B(6) of this chapter).

Designation of the relationship of the third party; and

Acceptance of full responsibility for all activities of the third party while acting on behalf of the licensee.

The beginning date and deadline for entry;

Prizes;

Chances of winning;

How winners are chosen; and

Any other general rules.

Advertising of alcoholic beverages on radio or television is permitted if the advertising meets the requirements of the Alcohol and Tobacco Tax and Trade Bureau and the Federal Communications Commission.

A supplier, nonresident dealer permittee, and licensed wholesaler may not directly or indirectly provide, pay, or credit a licensed retailer with radio or television advertisements.

A licensed retailer may not use advertising credits or “free spots” that have been accrued by a supplier or licensed wholesaler based upon other contractual agreements.

A licensed retailer shall pay for radio and television advertising for the purpose of promoting the licensee's general business, location, or any special promotions independently conducted by the licensed retailer.

General newspaper, magazine, and periodical advertisements of alcoholic beverages are permissible if they comply with the provisions of COMAR 14.23.01.05.

Restrictions on advertising related to radio and television as stated in this regulation also apply to print advertising.

A supplier or licensed beer wholesaler may advertise on a billboard when the advertising is brand-identifiable and of benefit only to licensed retailers in general.

A licensed retailer may advertise on billboards if the cost is paid by the licensed retailer and the advertising does not promote a particular wine or distilled spirit product.

A display may be used in parades and other functions if it is not brought to permanent rest in front of a licensed retailer's premises.

A display is permitted on or near licensed retail premises if it is intended to promote an authorized event being held or sponsored by a supplier, licensed wholesaler, nonprofit organization, or trade association, and is not intended to promote a particular licensed retailer.

The utilitarian value is secondary and only incidental to the value as an advertisement;

The total value of any single advertising item furnished for use in a licensed retail establishment at any time does not exceed $150 except, however, that a malt beverage sign manufactured by a beer wholesaler and provided to a retailer may not exceed $50; and

The cost of installation of an item does not exceed that which is usual and customary in that particular locality.

Advertising is general in nature;

Advertising does not identify a particular licensed retailer or licensed premises;

Promotional item is provided in trivial quantities; and

Promotional item does not relieve the licensed retailer of an ordinary business expense.

A licensed retailer is not identified; and

The utilitarian value is secondary and only incidental to the value as an advertisement.

The total cost of umbrellas does not exceed $600; and

No single brand is represented by more than six umbrellas.

Opening of cases;

Placement of individual bottles on shelves or in coolers;

Movement of products from one shelf location to another location;

Rearrangement of alcoholic beverages in a storage or sales area in less than case lots; or

Shelf management.

Nitrogen, CO2, spigots, faucets, coil cooler boxes, drip trays, and similar items for beer draft systems at cost or above; and

Nitrogen, pumps, mounts, gauges, regulators, standards, and similar items for wine draft systems at cost or above.

Ensure protection of the licensed wholesaler's equipment; and

Set up tapes and train licensed retailer's representatives in their use.

Except as provided in §H(3)(b) and (c) of this regulation, deliveries of alcoholic beverages shall be made to a central point at a licensed retailer's establishment whether the central point is in the sales area or a particular area designated for storage.

Deliveries of beer and malt beverage products may be made to multiple locations within the licensed retail establishment.

Deliveries of alcoholic beverage products may be made to multiple locations within the arena and stadium licensed premises.

Brand owner promotions;

Charity promotions;

Radio station promotions; or

Licensed retailer promotions.

That are open to the public and held in conjunction with a reception or dinner; and

At which a representative of a supplier or licensed wholesaler:

The total number of cumulative items or prizes for any given promotion does not exceed 50 percent of the maximum capacity of the licensed retailer's premises as determined by the Fire Marshal;

The unit cost of any one item or prize does not exceed $10;

A brand owner or agent does not expend more than $150 in incidental expenses for any given promotion;

All prizes and other incidentals not used in connection with an approved promotional event are removed from the retail licensed premises at the conclusion of the event; and

Documentation on the expenses is maintained for each event and is available for inspection.

The daily cost of the rental is at least 5 percent of the original value of the materials;

A minimum daily charge is $20; and

Both parties to the rental agreement maintain documentation which is available for review by the Executive Director.

May be accepted up to 5 days before the planned promotional activity if unusual circumstances warrant; and

Shall be approved by the Executive Director.

Each promotion shall be submitted to the Executive Director for approval; and

An acknowledgment must be received from the Executive Director before conducting the event.

The manufacturer has not requested a hearing as provided in §D(1) of this regulation; or

A hearing has been held as provided in §D(2) of this regulation, and a final decision by the Comptroller orders that the cigarette be removed from the list.