In this chapter, the following terms have the meanings indicated. Terms Defined. “Alcohol and Tobacco Tax and Trade Bureau” means the Tax and Trade Bureau of the United States Department of the Treasury. Alcoholic Beverage. “Alcoholic beverage” means a spirituous, vinous, malt, or fermented liquor, liquid, or compound that: Contains at least one-half of 1 percent of alcohol by volume; and Is suitable for beverage purposes. “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. “Board of license commissioners”, “local licensing board”, or “liquor control board” means a board of license commissioners or another governmental unit of a jurisdiction that issues alcoholic beverages licenses. “Commission” means the Alcohol, Tobacco, and Cannabis Commission. “Comptroller” means the Comptroller of Maryland or the Comptroller’s designee. “County” means a county of the State of Maryland or Baltimore City. “Executive Director” means the Executive Director of the Alcohol, Tobacco, and Cannabis Commission for the State of Maryland or the Executive Director’s designee. “License” means an alcoholic beverages license issued or a permit granted under Alcoholic Beverages Article, Annotated Code of Maryland “License holder” means a holder of an alcoholic beverages license, including: 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. “Sale” means whenever an alcoholic beverage is offered, given, paid for, or bartered for between one or more parties. Alcoholic Beverages — Tax Payment. General. Properly licensed wholesalers and nonresident winery permit holders are a licensed retail dealer's source of supply for alcoholic beverages. A licensed retail dealer may not have in possession, or permit to be kept upon the licensed premises, any alcoholic beverages which have not been purchased from a licensed wholesaler or nonresident winery permit holder unless otherwise acquired under specific authority of Alcoholic Beverages Article or Tax-General Article, Annotated Code of Maryland. Licensed retail dealers with proper invoices and adequate records covering their inventory of beer, wine, and distilled spirits may presume that the Maryland alcoholic beverage tax has been paid, if acquired in accordance with the provisions of §A(1) of this regulation. Records. Records are required to be kept covering the acquisition of all alcoholic beverages received and returned and all payments and credits applicable to them. Licensed retail dealers shall sign a delivery receipt for all alcoholic beverages received. All books, vouchers, invoices, delivery tickets, and other papers shall be kept and maintained upon the licensed premises in a permanent, neat, and accessible manner available for inspection by authorized employees of the Comptroller or Executive Director during all regular business hours. A complete record shall be kept concerning all transactions in warehouse receipts and any alcoholic beverages placed in and received from public storage. Decanters. Wine and liquor used by on sale licensed retail dealers in serving drinks shall be the wine and liquor received in sealed containers from licensed Maryland wholesalers, licensed manufacturers, or nonresident winery permit holders and shall be poured from those containers in the preparation of drinks on order for immediate consumption. Sale. Alcoholic beverage sales to consumers may not be solicited or consummated away from the licensed retail dealer's premises. A sale or delivery of alcoholic beverages may not be made for resale or to license holders, except to the holder of a Special and Temporary Class C license or as authorized by Alcoholic Beverages Article, Annotated Code of Maryland. Alcoholic beverages offered, given, or sold by an unlicensed vendor to a consumer in conjunction with, or as a part of, a service or product paid for by the consumer is a sale requiring a license under Alcoholic Beverages Article, Annotated Code of Maryland. Delivery. Licensed retailers are authorized to deliver alcoholic beverages off premises only: With written approval of the board of license commissioners; Within their respective county or city; and To individuals 21 years old or older. Late Payments. An invoice issued by licensed wholesalers, licensed manufacturers, or nonresident winery permit holders shall: 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. All remittances for invoices shall be deposited by the licensed wholesaler, licensed manufacturer, or nonresident winery permit holder not later than the next business day. The Executive Director shall issue a release annually to all licensed wholesalers, licensed manufacturers, and nonresident winery permit holders containing the list deadline: Purchase dates; and Due dates for payments. A licensed wholesaler, licensed manufacturer, or nonresident winery permit holder shall report: 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. The Executive Director shall issue a list to licensed wholesalers, licensed manufacturers, and nonresident winery permit holders which shall: 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. The Executive Director is authorized to issue supplementary lists when deemed necessary. A licensed wholesaler, licensed manufacturer, or nonresident winery permit holder may not sell to any licensed retailer whose name appears on a current or supplementary list issued by the Executive Director, except on a C.O.D. basis. A licensed wholesaler, licensed manufacturer, or nonresident winery permit holder shall file a clearance report with the Executive Director on the day the indebtedness is paid in full by the licensed retailer. A clearance report is not eligible for consideration in the preparation of a subsequent credit control list unless the remittance covering the licensed retailer's indebtedness has been received by the licensed wholesaler, licensed manufacturer, or nonresident winery permit holder by the closing time of the due date. These reports shall be transmitted promptly to the Executive Director. The Executive Director shall remove from the credit control list those licensed retailers reported by a licensed wholesaler, licensed manufacturer, or nonresident winery permit holder in cases when the postmark on the envelope that accompanies the remittance is dated at least 2 days before the applicable due date. Postdated checks, notes, and other instruments of indebtedness do not constitute payment unless actually convertible into cash not later than the applicable due date or the date received in cases where the check is dated no later than the due date and was mailed in an envelope postmarked not less than 2 days before the applicable due date. Immediate action shall be taken and followed through to effect the conversion into cash of a returned check given by a licensed retail dealer in payment of a C.O.D. shipment when the licensed retail dealer's name appears on a current list or supplemental list, in order to avoid extension of undue credit. Pickup of Checks. 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. Duplicate Checks. 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 licensed retailer shall be reported to the Executive Director for late payment when the payment is received after 5 p.m. on the due date by the licensed wholesaler, except when a good postmark accompanies the payment pursuant to §A(8) of this regulation. Returned Checks. A check received by a licensed manufacturer, licensed wholesaler, or nonresident winery permit holder which is returned by the bank unpaid is not considered remittance or payment. The amount of the check immediately shall be charged back to the account of the licensed retail dealer who was credited with it. A licensed manufacturer, licensed wholesaler, or nonresident winery permit holder receiving a check from a licensed retail dealer returned by the bank unpaid, which has or may have the effect of excluding that licensed retail dealer's name from the next list, or has or may have the effect of removing a licensed retail dealer from the current list, or was in payment of a C.O.D. shipment while that licensed retail dealer's name appeared on a current list, shall immediately make a report of the check to the Executive Director. Licensed manufacturers, licensed wholesalers, or nonresident winery permit holders may not accept other than cash in payment of a reported indebtedness or for a C.O.D. shipment from a licensed retail dealer who has within a period of 6 months given either: 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: Has or may have the effect of removing the licensed retail dealer from the current list, Has or may have the effect of excluding the licensed retail dealer's name from the next list, Was in payment of a C.O.D. shipment while the licensed retail dealer's name appeared on a current list. General Provisions. Information on each periodic list and supplements to it will remain in effect until the next list is issued. Failure to file correct reports to the Executive Director as provided in this regulation shall constitute a violation of Alcoholic Beverages Article, Annotated Code of Maryland. The Executive Director may also change or extend the due date with notice, under extenuating circumstances. Reports shall be made to the Executive Director in a manner provided or approved by the Executive Director. Cash as used in this regulation means U.S. Government coins and paper money, bank cashier checks, certified checks, postal and express money orders, checks of disinterested persons, and travelers' checks. In order to avoid influence over a licensed retail dealer, licensed manufacturers, licensed wholesalers, and nonresident winery permit holders are required to take definite action toward collection of accounts in arrears in excess of 90 days. Sales on a consignment or approval basis are not permitted. The standard of fill for containers of wine or distilled spirits shall be identical with those of the Alcohol and Tobacco Tax and Trade Bureau. Beer may not be sold or delivered to a licensed wholesaler or licensed retail dealer for consumption in this State in container sizes of less than 6.33 ounces. Before a label may be sold and distributed in Maryland, the label shall be approved by the Alcohol and Tobacco Tax and Trade Bureau. Application. A person engaged in business as a producer, manufacturer, bottler, importer, wholesaler, or retail dealer of distilled spirits or wines, directly or indirectly, or through an affiliate, may not publish or disseminate or cause to be published or disseminated in any newspaper, magazine, or similar publication any advertisement for distilled spirits or wines, unless the advertisement is in conformity with this regulation. These provisions may not apply to the publisher of any newspaper, magazine, or similar publication unless the publisher is engaged in business as a producer, manufacturer, bottler, importer, wholesaler, or retail dealer of distilled spirits or wines, directly or indirectly, or through an affiliate. For the purpose of this regulation, “advertisement” includes any advertisement of distilled spirits or wines through the medium of newspapers, magazines, or similar publications, except that the term may not include: Any label affixed to any container of distilled spirits or wines, or any individual covering, carton, or other wrapper of the container; Any editorial or other reading matter in any periodical, publication, or newspaper for the preparation of publication of which no money or other valuable consideration is paid or promised, directly or indirectly, by any person subject to this regulation. General Requirements and Restrictions in the Advertising of Distilled Spirits and Wines. Mandatory Statements. 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). Lettering; Conspicuousness of Mandatory Statements. Statements required by this regulation to be stated in any written, printed, or graphic advertisement shall appear in lettering or type of a size, kind, and color sufficient to render them both conspicuous and readily legible. In particular: 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. Prohibited Statements and Representations. Restrictions. An advertisement may not contain: Any statement that is false or misleading. Any statement that is disparaging of a competitor's products. Any statement, design, device, or representation which is obscene or indecent. Any statement, design, device, or representation of, or relating to, analyses, standards, or tests, irrespective of falsity, which is likely to mislead the consumer. Any statement, design, device, or representation of, or relating to, any guaranty, irrespective of falsity, which is likely to mislead the consumer. Nothing in this section shall prohibit the use of any enforceable guaranty in substantially the following form: "We will refund the purchase price to the purchaser if he is in any manner dissatisfied with the contents of this package ---------- Blank to be filled in with the name of the person making guarantee. Any statement that the product is produced, blended, made, bottled, packed, or sold under, or in accordance with, any authorization, law, or regulation of any municipality, county, or State, federal, or foreign government unless the statement is required or specifically authorized by the laws or regulations of that government. If a municipal, county, State, or federal permit number is stated, the permit number may not be accompanied by any additional statement relating to it. 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: " ---------- is good for you"; “Conducive to well-being”. 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: Reproduction of medals or facsimiles of awards, when no medals or awards have been given or when the medals or awards were not given on a competitive or comparative basis. For example, “Genuine Sherry is made only in Spain”. “Contains no neutral spirits or alcohol” or “This rum will not turn dark in the bottle” or “All good wines are bottled at the winery”. “Analyzed by the Laboratory and found to be pure free from deleterious ingredients”, “Tested and approved”, or “Signed by The Research Institute”. Other Prohibited Statements. 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: Any statement of bonded winecellar and bonded winery numbers unless stated in direct conjunction with the name and address of the person operating that winery or storeroom. Statement of bonded winecellar and bonded winery numbers may be made in the following form: “Bonded Winecellar No.--”, “Bonded Winery No.--”, “B.W.C. No.--”, “B.W. No.--”. An additional reference to that statement may not be made, or may any use be made of that statement that may convey the impression that the wine has been made or matured under U.S. Government or any State Government supervision or in accordance with U.S. Government or any State Government specifications or standards. Any statement, design, device, or representation which relates to alcoholic content or which tends to create the impression that a wine is “unfortified” or has been “fortified”, or has intoxicating qualities, or contains distilled spirits (except for a reference to distilled spirits in a statement of composition when the statement is required by this regulation to appear as a part of the designation of the product). 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: In the case of vintage wine, the year of vintage may be stated if it appears on the label; Truthful references of a general and informative nature relating to methods of production involving storage or aging, such as “This wine has been mellowed in oak casks”, “Stored in small barrels”, or “Matured at regulated temperatures in our cellars” may be made. 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. A licensee may not sell any alcoholic beverages for export to any person, firm, or corporation unless the person, firm, or corporation is authorized to receive the alcoholic beverages under the laws of the jurisdiction of the ultimate destination. Definitions. “Adult” means any person who has reached the age of majority. “Representative” means any person employed by or who represents any licensed manufacturer, nonresident dealer, or nonresident winery who contacts Maryland licensed wholesalers or licensed retail dealers for the purpose of selling or offering for sale alcoholic beverages. “Salesperson” means any employee of a licensed wholesaler, who sells or attempts to sell alcoholic beverages directly or indirectly to any licensed retail dealer for the account of licensed wholesalers. “Solicitor” means any person employed as a representative or salesperson who contacts a licensed wholesaler or licensed retail dealer within this State for the purpose of selling, promoting, or offering for sale alcoholic beverages. “Solicitor independent broker” means any person employed by or who represents within this State any licensed manufacturer, nonresident dealer, nonresident winery, or licensed wholesaler for the purpose of selling, promoting, or offering for sale alcoholic beverages by contacting: 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. “Solicitor trainee” means any person employed by a licensed manufacturer or licensed wholesaler within this State, or by the holder of a nonresident dealer permit or holder of a nonresident winery permit outside this State, for the purpose of training that individual as a solicitor. General Procedures. A person may not act as a salesperson for a Maryland licensed wholesaler, as a representative for a manufacturer, nonresident dealer, or nonresident winery, or as a solicitor independent broker, unless the person has first applied for and received a solicitor's permit from the Executive Director, except as provided in §B(2) of this regulation. A “solicitor trainee” may not be permitted to sell, promote, or offer for sale alcoholic beverages except when accompanied by an individual holder of a valid solicitor's permit representing the same licensed wholesaler, licensed manufacturer, nonresident dealer, or nonresident winery. The training period may not exceed 30 days. After the 30-day training period, the person shall comply with the provisions of §B(1) of this regulation. Any adult person, except the holder of a retail license or employees or agents of a licensed retail dealer, may make application to the Executive Director for a solicitor's permit, on forms and in the manner the Executive Director requires. The application shall set forth the name and address of the person, firm, or corporation who employs the applicant or whom the applicant represents, and also the name and address of the applicant. The applicant may not be employed by or represent any person, firm, or corporation whose name does not appear on the application. Solicitors' permits shall be kept in possession at all times while engaged in the business of selling or offering for sale alcoholic beverages, and shall be exhibited upon demand by any licensee or authorized employee of the Executive Director. Except for a holder of a solicitor's permit which specifically designates the holder as a solicitor independent broker, holders of a solicitor's permit may not contact consumers for the purpose of selling or offering for sale alcoholic beverages. If the person holding the permit is employed as a representative, the person may not be permitted to sell, promote, or offer for sale alcoholic beverages to licensed retail dealers, except for the account of a licensed wholesaler, who is a distributor for the products of the employer of the permittee. The holder of a solicitor's permit shall notify the Executive Director of any change of address within 10 days. Failure to do so may subject the solicitor's permit to suspension or revocation by the Executive Director. A solicitor shall notify immediately the Executive Director of any change of employment or representation status and shall surrender the solicitor's permit within 5 days for cancellation or amendment. Failure to surrender the permit within the 5 days may make that person ineligible for any other permit for a period of up to 3 years. It shall also be the duty of the employer or principal whose name is specified on the solicitor's application to notify the Executive Director within 5 days of the termination of the employment. Correction for change of address, employment, or representation status, or to replace lost or destroyed permits, may be made during the permit year. If the holder of a solicitor's permit violates the provisions of Alcoholic Beverages Article, Annotated Code of Maryland, or any regulation promulgated under it, the Executive Director may suspend or revoke the permit, and, in addition, may suspend or revoke the license or permit of the employer or principal of the permittee. Definition. “Supplier” means a licensed manufacturer, nonresident dealer, or wholesaler who sells a brand of wine or distilled spirits to a licensed wholesaler for resale to licensed retailers in Maryland. A supplier who desires to change the licensed wholesaler it has selected or franchised to distribute a brand of wine or distilled spirits in the State shall provide at least 30 days notice of this intention by registered mail to the licensed wholesaler and the Executive Director. A licensed wholesaler who desires to discontinue the sale of a brand of wine or distilled spirits shall provide at least 30 days notice of this intention by registered mail to the supplier from whom the product was purchased and to the Executive Director. If there is evidence that a violation of the law has occurred or that the distribution of a brand or brands of wine or distilled spirits will be adversely affected if the 30-day notice period is followed, the Executive Director may consider any substantial proof that is submitted in writing, and, if circumstances warrant, cause a reduction of this 30-day notice period. Any brand of wine or distilled spirits affected by the procedure set forth in this regulation which is in the outgoing wholesaler's inventory on or before the conclusion of this notice period shall be purchased and paid for by the supplier or incoming wholesaler at the laid-in cost of the outgoing wholesaler before the incoming wholesaler is allowed to distribute the product in the Maryland market. If a supplier, other than the current brand owner or authorized agent, acquires a brand and wants to designate a wholesaler other than the existing wholesaler, the supplier may not file until the supplier or incoming wholesaler has purchased the inventory of the outgoing wholesaler at the laid-in cost of the outgoing wholesaler. A supplier may not select, designate, appoint, or franchise more than one licensed wholesaler to sell or distribute a brand of wine or distilled spirits in Maryland for a period of time any longer than the 30-day notice period mentioned above. This regulation does not apply to a county dispensary acting as a wholesaler. Except as provided in §E(6) of this regulation, samples of alcoholic beverages provided under this regulation shall be tax paid at the same rate and in the same manner as required by the Tax-General Article, Title 5, Annotated Code of Maryland. Permitted Samples. A licensed wholesaler may furnish samples or draw from sample accounts for the following purposes: 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. A supplier may furnish to a licensed wholesaler up to one case of an alcoholic beverage that is not a product available in the State for evaluation purposes and not for distribution or sampling to licensed retailers. A nonresident winery permit holder may furnish samples or draw from sample accounts to provide a sample of an alcoholic beverage to a licensed retailer. Samples to Licensed Retailers. A sample of an alcoholic beverage not stocked or sampled by a licensed retailer during the immediately preceding 12 months may be furnished by a wholesaler representative, supplier representative, or nonresident winery representative when: 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. A licensed wholesaler, supplier representative, or nonresident winery representative shall sign out all samples from the licensed wholesaler's inventory or nonresident winery permit holder's inventory in a manner approved by the Executive Director. A representative of the licensed retailer shall sign a receipt for each sample provided. A licensed wholesaler, supplier representative, or nonresident winery representative shall account for all samples withdrawn from the licensed wholesaler's inventory or nonresident winery permit holder's inventory within 30 days of sign out by returning to the licensed wholesaler or nonresident winery permit holder: Completed retailer receipts; or Unused samples. A licensed wholesaler, supplier, or nonresident winery permit holder who does not comply with the provisions of this section may be prohibited from drawing future samples for distribution under this regulation. Samples to Bona Fide Charitable Organizations, Nonprofit Organizations, or Alcoholic Beverage Trade Associations. A licensed wholesaler may donate sample alcoholic beverages for use at a bona fide event or function if a temporary or permanent retail license has not been issued or is not required for the event or function. Alcoholic beverages supplied may not exceed what is reasonably expected to be used for the specific event or function. An officer or official of the charitable organization, nonprofit organization, or alcoholic beverage trade association shall submit a written request to the licensed wholesaler for the product setting forth the particulars of the event and certifying compliance with §D(1) of this regulation. A representative of the charitable organization, nonprofit organization, or alcoholic beverage trade association shall sign a receipt for all sample alcoholic beverages received. Samples to Alcoholic Beverage Experts. A licensed wholesaler may provide samples to unlicensed individuals who are recognized for their contributions as alcoholic beverage writers in trade publications, newspapers, magazines, and other publications. Before an individual may qualify as an expert under this section, the individual shall submit credentials to, and be approved by, the Executive Director. Samples provided by a licensed wholesaler to an expert are for the express purposes of evaluation and analysis and are not for general distribution or consumption. Any samples received and not used for this purpose shall be destroyed. A licensed wholesaler may directly provide samples to experts under the following conditions: The expert signs a receipt for the product; and Not more than three bottles of each brand is provided. An expert may pick up samples at the premises of the licensed wholesaler, or the licensed wholesaler may deliver them to another location, including a licensed retail premises, for subsequent pickup if proper records are maintained. Instead of receiving tax paid samples through a licensed wholesaler, an alcoholic beverage expert may receive tax-free products from legitimate out-of-State sources if the alcoholic beverage expert has applied for, and received from the Executive Director, a non-beverage permit. Samples provided under this section need not originate from a licensed nonresident dealer. Samples to Officers, Officials, and Employees. An individual wholesale licensee may authorize bona fide company officers, officials, and employees to draw samples for personal and business use and not for sale. The Executive Director may limit the number of samples drawn under this section if the samples are believed to be excessive or improperly used. The Executive Director may require a written request for samples of beer, wine, or distilled spirits before delivery under this regulation. Records and Reports. A summary of samples of beer, wine, and distilled spirits distributed during the previous month shall be filed on forms provided by the Comptroller and submitted with the monthly alcoholic beverage tax return to the Comptroller with a copy of the Executive Director. A licensed wholesaler or nonresident winery permit holder shall maintain accurate records to support monthly sample reports which shall be available for inspection. Unless prohibited by local law, the holder of a Class E Beer, Wine and Liquor Water Vessel license may sell and serve alcoholic beverages for on-vessel consumption: Only to paying passengers who are a part of a bona fide regularly scheduled or chartered tour; and While the vessel is: Made fast to a wharf, pier, piling, etc.; or Underway. A Class E Water Vessel licensee may not sell or serve any alcoholic beverages to the public at large or to any person who is not a bona fide paying passenger. Nothing in this regulation shall prevent a local Board of License Commissioners from issuing a temporary or permanent license to a qualifying applicant for use on the vessel while the vessel is made fast to any wharf, pier, piling, etc., in the jurisdiction of the local licensing authority. However, the Statewide Class E License may not be used and shall be relinquished during the term any local license is in effect. For the purpose of this regulation, the term “paying passengers” means: Those persons who directly or indirectly pay a fee for boarding a regularly scheduled or chartered tour on a vessel; and Guests of any person described in §D(1) of this regulation. Before an unlicensed individual or entity, other than a licensed retailer, engages in the business of taking orders for alcoholic beverages from Maryland consumers for ultimate sale and delivery by a licensed retail dealer, the individual or entity shall receive an authorization letter from the Executive Director. In order to receive authorization, an applicant shall submit a detailed plan to the Executive Director: Giving the names of all licensees the applicant is representing directly or indirectly; and Agreeing to comply with all of the laws and regulations pertaining to alcoholic beverages, and any stipulations or restrictions that may be made a part of the authorization. An authorization given is valid indefinitely or until revoked or modified by the Executive Director. Illegal or improper activities engaged in by an individual or entity receiving orders from consumers, with or without a letter of authorization, may subject a licensee represented by the individual or entity as an agent to administrative action. Alcoholic beverages sold and delivered as a result of a consumer order placed with an individual or entity shall be made through a supplier to a wholesaler to a retail dealer, all of whom shall hold the requisite license or permit. Beer Credit Sales. A licensed wholesaler may sell beer on credit to retailers in Worcester County if the: 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. A licensed wholesaler who sells and delivers beer on credit to a retailer in Worcester County shall be paid in full, including any interest charges, for the outstanding invoice not later than the 10th calendar day after the date of delivery. A licensed wholesaler who has not received payment in accordance with §A(2) of this regulation shall: 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. Notification. Notification of a delinquency under §A(3)(b) of this regulation may be in any form but shall contain at least the following information: 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 Executive Director shall provide all other wholesalers of beer notice in writing of the delinquency report received. The notice shall provide an effective date when all licensed wholesalers are prohibited from making any sale or delivery of beer to that account. A licensed wholesaler who has previously reported a delinquency shall notify the Executive Director upon receipt of full payment. The notification time frames are the same as with the original notification. Upon notification from the Executive Director that an account has been cleared, all licensed wholesalers, including the licensed wholesaler who filed the original delinquent report, may resume credit sales and deliveries to that account. Credit sales may be made at the discretion of the licensed wholesaler. If a licensed wholesaler becomes aware that a licensed retailer's check has been returned by the bank unpaid, whether or not the check was issued as a payment at the time of delivery or on the licensed retailer's 10-day credit account, and the 10-day period specified in §A(2) of this regulation has expired, the licensed wholesaler shall consider this a nonpayment and immediately report this information to the Executive Director. A licensed wholesaler may elect to redeposit a returned check if it is returned within 10 days of the original invoice date. If a check is returned unpaid a second time, the licensed wholesaler shall immediately file a report with the Executive Director. Notification shall include a statement that the report was based on a returned check. Beer Credit Prohibition. In accordance with Alcoholic Beverages Article, §33-504(b)(3), Annotated Code of Maryland, a licensed retailer who has been reported on three separate occasions within a single calendar year is prohibited from obtaining beer on credit for a period of 2 years from the date of the third report. For the purpose of this regulation, a specific beer purchase transaction between a licensed wholesaler and a licensed retailer constitutes an occasion. The Executive Director shall notify all licensed wholesalers of any retailers who meet this criterion. Production. The gallonage limitation for a consumer to brew beer or ferment wine shall be in accordance with 27 CFR 24.75 and 25.205. Beer or wine made by a consumer under contract with the holder of a family beer and wine facility permit shall be for home consumption and the personal use of the consumer. Sampling. The holder of a family beer and wine facility permit is authorized to manufacture beer and wine for the purpose of providing samples on the licensed premises to consumers 21 years old or older who have signed a nonrefundable contract to manufacture beer or wine on the licensed premises. The amount of samples provided to individuals shall be limited to the amount specified in Alcoholic Beverages Article, Annotated Code of Maryland. Records. The holder of a family beer and wine facility permit shall maintain on the licensed premises a log book of all beer or wine produced for sampling or equipment testing purposes, and produced by individuals under contract with the permittee. Before entering into a contract with an individual, the permittee shall have the individual sign an affidavit, under penalties of perjury, that all beer or wine produced will be for personal use and home consumption only, and will not be for sale to other persons. Sales. The holder of a family beer and wine facility permit may not offer for sale any alcoholic beverages. Records. The holder of a Statewide caterer's license shall maintain the following: Records pertaining to all purchases and sales of alcoholic beverages; Copies of executed catering contracts with persons or entities for events at which alcoholic beverages are provided; and Original copies of catering certificates required under §B of this regulation. Catering Certificates. The holder of a Statewide caterer's license shall prepare a three-part certificate on forms provided or approved by the Executive Director for each event where alcoholic beverages are provided and served by the caterer. This form shall include: 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. Copies of Certificates. 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. Boards of License Commissioners. The local board of license commissioners has concurrent jurisdiction with the Executive Director to monitor catered events as authorized by Alcoholic Beverages Article, §2-506, Annotated Code of Maryland. If a nonprofit organization or club is providing its own alcoholic beverages at a catered event, and a license is required due to the direct or indirect sale of alcoholic beverages, then the nonprofit organization or club is responsible for: Obtaining a temporary alcoholic beverage license from the local board of license commissioners; and All alcoholic beverage activities at the catered event. If the alcoholic beverages at an event are being provided and served by the holder of a Statewide caterer's license, but there is a direct or indirect sale of alcoholic beverages by the nonprofit organization or club, then the local board of license commissioners may require the nonprofit organization or club to obtain a temporary license in addition to the license of the Statewide caterer. Alcohol Awareness Program Provider Requirements. A holder of an alcohol awareness program permit shall: Maintain a current alcohol awareness program permit as required under Alcoholic Beverages Article, §2-158, Annotated Code of Maryland; Maintain each alcohol awareness program in conformance with Alcoholic Beverages Article, §4-505, Annotated Code of Maryland, as certified by the Executive Director; Notify the Executive Director, in writing, of any changes to the program, at least 30 days before implementation, for the Executive Director’s approval; Upon approval by the Executive Director under §A(3) of this regulation, notify each alcohol awareness instructor and provide revised program material; Notify the Executive Director, in writing, of discontinuance of the program with notice sent simultaneously to each alcohol awareness instructor; Submit authorized alcohol awareness instructor permit applications to the Executive Director for approval; Provide, at a minimum, 3 hours of alcohol awareness instructional classroom or electronic training of the program approved by the Executive Director; Provide a program testing component with a uniform passing score and uniform objectives, which have been preapproved by the Executive Director; Unless a delay is caused by a student, issue certificates to students who have successfully completed alcohol awareness training based on lists provided by an alcohol awareness instructor within 30 days of receipt of the notice, which certificates shall include the: Program administrator's signature; Program name; Instructor's name; Student's name; Issuance date; and 4 year validation period; Notify, in writing, the local alcoholic beverage licensing board in accordance with Alcoholic Beverages Article, §4-505(f)(2), Annotated Code of Maryland, of individuals who have successfully completed the alcohol awareness program, within 5 days after a certificate of completion is sent to the student as required in §A(9) of this regulation; and Maintain records for a period of 5 years from the date the certificate was issued, reflecting: The student's name; The student's address; The instructor's name; The permit number; The certification date; and If known: The local licensing board; and The licensed retail establishment's name and address. Upon approval of an alcohol awareness instructor permit application, the Executive Director shall forward the alcohol awareness instructor permit to the program administrator for distribution to the authorized instructors. Alcohol Awareness Instructor Requirements. A holder of an alcohol awareness instructor permit shall: Maintain a current alcohol awareness instructor's permit as required by Alcoholic Beverages Article, §2-158, Annotated Code of Maryland; Apply for an alcohol awareness instructor permit through the authorizing alcohol awareness program administrator; Provide alcohol awareness training that covers the program as certified by the Executive Director, including the: Course content; Classroom or electronic hours; and Testing component; Provide training to persons of an alcohol awareness training program as certified by the Executive Director and authorized by the alcohol awareness training program provider; Conduct the testing component in the presence of the student; Provide within 10 days of completion of the class, a written list to the alcohol awareness program provider reflecting the: Student's name; Student's address; Dates of classroom or electronic training; and Licensed retail establishment's name and address, if known; and Maintain records of all alcohol awareness training classes and certifications for a period of 5 years. Before an alcohol awareness instructor administers the test under §C(5) of this regulation, a student shall satisfactorily prove the student's identity to the instructor by means of a government issued photo identification. Type of Program Presentations. Programs may be presented in a classroom, individual, or electronic format. Testing shall be provided by the instructor face-to-face with the student or through an electronic platform that is certified by the Executive Director, as required under §C(5) of this regulation. Responsibility. An alcohol awareness program provider shall have primary responsibility for the conduct and performance of each holder of an alcohol awareness instructor permit who provides instructions for the respective provider's alcohol awareness program. Definitions. “Come to rest” means that the alcoholic beverages are physically unloaded from the transporter, truck, or other common carrier onto the floor, loading dock, or other part of the wholesaler's licensed premises. “Licensed location” means the physical address of the licensed premises stated on the application. Except as otherwise specified in Alcoholic Beverages Article, Annotated Code of Maryland, “licensed premises” means the physical location for which the license is issued, including any buildings or grounds identified and made part of the premises for purposes of the license application, and including additional licensed locations. “Warehouseman” means a person who is an employee of the wholesaler and listed on the regular salary list or payroll of the wholesaler. Application Requirement. The Licensed Location shall be the same as that stated on the application for the Basic Permit under the Federal Alcohol Administration Act as required by the Alcohol and Tobacco Tax and Trade Bureau of the Department of Treasury. Except for deliveries to the holder of a Class E, F, or G license, deliveries made under an Individual Storage Permit do not meet the come to rest requirements under this regulation. Come to Rest Compliance Requirement. The person driving the delivery vehicle and delivering the alcoholic beverage shall record the delivery location, date, and time and have it verified, by signature, upon delivery by the warehouseman. The warehouseman shall record the loading location, date, and time the alcoholic beverages are placed in a vehicle for delivery to a retailer and also shall record the identification information of the delivery vehicle. The driver of the retail delivery vehicle shall verify, by signature, the information recorded by the warehouseman upon loading of the alcoholic beverages. The holder of a nonresident dealer permit or resident dealer permit shall: Obtain a separate permit for each location under which alcoholic beverages are invoiced to Maryland wholesalers or retailers; and Include on each invoice the business name as stated on the permit application. Alcoholic beverages shipped to a Maryland wholesaler by the holder of a nonresident dealer permit or resident dealer permit may originate from a location other than the location on the permit as long as the invoice includes the permit name and address. A public storage permit authorizes the holder to operate a warehouse for the storage of alcoholic beverages of licensees or authorized permit holders. A public transportation permit authorizes the holder to transport alcoholic beverages into, within, or out of this State for licensees or authorized permit holders. A Public Transportation Permit may be applied for by: A person engaged in the business of transporting alcoholic beverages for licensees into, within, and out of this State; or A licensed wholesaler in order to transport alcoholic beverages to retailers for another licensed wholesaler when there is a written delivery agreement between the wholesalers stating that there will be: 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. A written delivery agreement that stipulates that the sale and delivery of alcoholic beverages shall be from the licensed premises of a wholesaler meets the requirements of §C(2) of this regulation. When transporting alcoholic beverages under a public transportation permit, the holder shall possess the following: A valid public transportation permit; and A valid vehicle identification card for each vehicle, issued by the Executive Director pursuant to Alcoholic Beverages Article, §§2-218 or 2-119, Annotated Code of Maryland, which card shall include the vehicle's make, model, vehicle identification number, state of registration, and tag number. Before accepting delivery, a licensed wholesaler shall verify that the transporter delivering the alcoholic beverages has in its possession the documentation required under §E of this regulation. Definitions. “Depletion allowance” means an allowance offered by a supplier which is: 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. “Private label” means any label that is owned by a licensed retail dealer, or is bottled and labeled exclusively for sale to a licensed retail dealer. “Restricted or confined label” means any label of wine or distilled spirits, domestic or imported, other than private labels and those labels available for sale to licensed retail dealers generally. “Self-imports” means any alcoholic beverages which are purchased and imported by a licensed wholesaler when the alcoholic beverages are invoiced by the foreign supplier direct to the Maryland licensed wholesaler. “Special pack” or “gift pack” means a carton or package which: Contains: More than one brand of wine or distilled spirits, or One brand of wine or distilled spirits and one nonalcoholic item; and Is intended for ultimate sale to the consumer. “Wholesaler” means a person who purchases from a nonresident dealer, or self-imports from a foreign source, any alcoholic beverages for sale to other licensed wholesalers or licensed retail dealers, and includes a county liquor control board and a county wholesale dispensary. Special Pack or Gift Pack Requirements. Size of Containers. Only one size of an alcoholic beverage container shall be represented within a special pack. Containers in Carton. The total number of containers in a carton shall be in conformance with the provisions of §C of this regulation. Nonalcoholic Items. Nonalcoholic items shall be restricted to those items which are physically packaged with the special pack and which are intended for ultimate purchase by the consumer. Signs, placards, devices, and graphic displays bearing advertising or other forms of advertising may not be included in special packs. Consumer Oriented. A special pack shall be: Entirely consumer oriented; and Configured and packaged to show that it is intended for ultimate sale to the consumer. Handling and Package Costs. The cost of special packaging materials and additional labor costs to assemble the special pack may be added to the price of the special pack if it is reported on a special pack price analysis. Brand Identity. Each special pack shall be considered a distinct brand. Each special pack shall be assigned a unique UNIMERC brand code number as described in §B of this regulation. Component Pricing. The cost of the special pack is not dependent on the price of any component alcoholic beverage also filed in regular case lots. However, special pack pricing may not be used to circumvent the prohibition on quantity discounts or be tantamount to providing free goods directly to the licensed retailer. Approval Process. 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. Containers in Carton. Packages are to be distributed as follows: 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. When containers hold less than 12.8 ounces or 378.7 milliliters, the quantity of containers may not be restricted to multiples of 12 but shall be in accordance with the prevailing practice in effect as to size and as to the number of containers in a carton. Labeling. A label that is sold to more than one licensed retail dealer in Maryland may not qualify as a private label, and shall be made available for sale to licensed retail dealers generally. Restricted or confined labels are prohibited for sale to licensed retail dealers. Terms or conditions of sale, including delivery charges, C.O.D. charges, etc., shall be stated on the invoice covering the sale. Alcoholic Beverages Article, §§1-101, 1-302, 1-311, 1-312, 1-319, 1-321, 2-124, 2-126, 2-138, 2-216, 2-310, 2-315, 2-402, 2-501, 4-505, 6-202,6-328, and 33-504, Annotated Code of Maryland Effective date: December 26, 2022 (49:26 Md. R. 1080) Regulation .01B amended effective April 13, 2026 (53:7 Md. R. 328) Regulation .19B amended effective April 13, 2026 (53:7 Md. R. 328) In this chapter, the following terms have the meanings indicated. Terms Defined. “Alcohol and Tobacco Tax and Trade Bureau” means the Tax and Trade Bureau of the United States Department of the Treasury. “Cigarette” means any size or shaped roll for smoking that is made of tobacco or tobacco mixed with another ingredient and wrapped in paper or in any other material except tobacco. “Commission” means the Alcohol, Tobacco, and Cannabis Commission. “Comptroller” means the Comptroller of Maryland or the Comptroller’s designee. “County” means a county of the State of Maryland or Baltimore City. “Executive Director” means the Executive Director of the Alcohol, Tobacco, and Cannabis Commission for the State of Maryland or the Executive Director’s designee. “Retailer” means any person engaged in the business of making retail sales of cigarettes within the State at a store, stand, booth, or concession, through vending machines, or otherwise, and only applies to the retail sales of cigarettes portion of the person’s business. “Sell” includes advertise, offer to sell, or offer for sale. Wholesaler. “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: Purchases cigarettes from another wholesaler solely for the purpose of bona fide resale to retailers other than those directly or indirectly owned, affiliated, or controlled by the wholesaler; and Services the retailers by maintaining an established place of business for the sale of cigarettes, including warehouse facilities, adequate inventory, proper accounting records, and necessary equipment and vehicles for the storage and distribution of cigarettes. Transportation cost is the expense to ship or deliver cigarettes from a premise other than the retail license location to the retailer's location for final sale. The transportation cost shall be calculated as part of the “basic cost of cigarettes” to the retailer, as provided in Commercial Law Article, § 11-501(e), Annotated Code of Maryland. Section B of this regulation applies when a retailer receives wholesale discounts as provided in the Commercial Law Article, § 11-503(b). A licensee who purchases cigarettes at wholesale for the purpose of resale in Maryland at wholesale or retail as defined in the Maryland Cigarette Sales Below Cost Act, from a person not having a license as provided in Business Regulation Article, §16-210, Annotated Code of Maryland shall be deemed not to have had notice and knowledge the wholesaler was unlicensed, if: The licensee making the purchase had no actual notice or knowledge that the wholesaler was not licensed; The licensee making the purchase demanded and received from the unlicensed wholesaler an invoice with each purchase stating affirmatively that the wholesaler was currently licensed; and The invoice shows the identification number of the license issued by the Executive Director. Applications for a retailer's cigarette license or licenses shall show the name and address of the place where cigarettes are sold. Applications for more than one cigarette license shall be accompanied by a list of locations stating names and addresses where cigarettes are sold. Applications by vending machine operators as defined in Commercial Law Article, §11-501(k), for a vending machine operator's cigarette license shall be accompanied by a list showing: Names and addresses where cigarette vending machines are located; The number of machines at each location; and The address of the established place of business maintained by the applicant for the purchase of cigarettes, including but not limited to, the maintenance of warehousing facilities for the storage and distribution of cigarettes. Holders of any cigarette license shall keep and maintain available for inspection during business hours, for a period of 2 years, the following: All invoices and bills of lading; All records covering all purchases and sales of cigarettes; and All records of merchandise sold in connection with cigarettes. The records in §A of this regulation shall be maintained and available for inspection at the license location. Wholesale Sale of Cigarettes. Each sale of cigarettes shall be accompanied by an invoice showing the following: 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). Licensed wholesalers shall maintain a record of the current retailer's cigarette license numbers of all persons to whom they sell cigarettes at wholesale. All cash sales made under the provisions of Commercial Law Article, §11-503(a), shall indicate cash sale on the invoice. A sale shall be presumed to have been made on other than a cash basis unless otherwise indicated. Cigarette Vending Machine Requirements. A licensee who sells cigarettes at retail through a vending machine shall display on each machine: A label that indicates the licensee's name, address, and telephone number; and The label provided by the Comptroller that states the: Age requirement for the purchase of cigarettes, and Penalty as provided by Criminal Law Article, §10-107, Annotated Code of Maryland. Operators of cigarette vending machines not covered in §D(1)(a) shall display the retailer's cigarette license on the machines they operate. Other holders of retailer's cigarette licenses shall visibly display the license on the premises where cigarettes are sold. A person selling cigarettes both at wholesale and at retail as provided in Commercial Law Article, §11-501 (m)(3), shall purchase both a wholesaler's cigarette license and a retailer's cigarette license or retailer's cigarette licenses. The licensee described in §F shall maintain the following records: All purchases in which the licensee received discounts ordinarily allowed to wholesalers by other wholesalers; and Records reflecting which of the licensee's sales were wholesale sales. A vending machine operator holding a cigarette license shall notify the Comptroller within 10 days of the following: Discontinuance of a location; or Addition of a new location. A person who is a seller at both retail and wholesale as provided in Commercial Law Article, §11-501(m)(3), may: Purchase cigarettes from another wholesaler eliminating the “cost to the wholesaler” from the price paid for the cigarettes, as provided in Commercial Law Article, §11-503(c), only on those cigarettes purchased that are sold at wholesale; and Not purchase cigarettes pursuant to the provisions of Commercial Law Article, §11-503(c), which are sold at retail by the seller who is authorized to sell at both retail and wholesale. A manufacturer's representative who sells cigarettes to a retailer may do so only: As the duly authorized representative of a licensed wholesaler; and On behalf of that wholesaler. Cost of Doing Business. The cost of doing business is presumed to be 5 percent of the basic cost of cigarettes to the wholesaler. Unless approved for a lower cost of doing business or meeting legal competition, as provided by this regulation, a wholesaler may not sell cigarettes to a retailer at less than a 5 percent markup. “Cost of doing business” means the wholesaler's cost of doing business in cigarettes as evidenced by the accounting standards and methods regularly employed by the wholesaler in determining costs for purposes of federal income tax reporting for the total operation of the wholesaler's establishment. The cost of doing business in cigarettes shall include, without limitation, allocations for: 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. The cost of doing business shall be expressed as a percentage and applied to the basic cost of cigarettes. A wholesaler who wishes to use the actual cost of doing business to the wholesaler pursuant to §A(3)(4) of this regulation rather that the presumptive cost of doing business to the wholesaler pursuant to §A(1)(2) of this regulation shall first establish satisfactory proof of a lesser cost of doing business. When to File Application. A wholesaler who wishes to be approved for a lower cost of doing business shall submit an application to the Executive Director: If not currently approved for a lesser cost, at least 60 days before the desired effective date; If currently approved, not later than April 1 annually to be effective with the license year beginning May 1; and At other times as may be requested by the Executive Director. Application to Contain Certain Information. An application for permission to sell at less than 5 percent markup shall contain: 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. If the wholesaler regularly engages the services of an independent accounting firm, the statement provided under §C(1)(c) of this regulation shall be signed by a CPA associated with that firm. Review and Determination. The Executive Director shall review and evaluate the information provided by the wholesaler and shall determine he allowable markup. The Executive Director shall notify the wholesaler of the final action on the application, and the specified percentage cost of doing business approved shall remain in effect until the next application and approval or until withdrawn by the Executive Director. If a person with permission to sell at less than a 5 percent markup fails to submit a new application by April 1, then the permission previously given shall be automatically withdrawn on May 1 of the same year. Meeting Lawful Competition. In order to meet lawful competition, any wholesaler may sell to any customer, or offer to sell to any potential customer, at the lowest markup approved for any wholesaler in the State. The Executive Director shall maintain a current list of the lowest currently approved markup which shall be released to wholesalers upon request. Remedy. Notwithstanding approval by the Executive Director of a lower cost of doing business, an affected party who claims to be injured may pursue remedies in a court of competent jurisdiction as provided by Commercial Law Article, §11-508, Annotated Code of Maryland. Business Regulation Article, §§16-205(a) and 16-209(b); Commercial Law Article, §§11-501(e)(1)(ii), 11-502(a)(5), and 11-507; Annotated Code of Maryland Effective date: Transferred from COMAR 03.02.03 to COMAR 14.23.02 effective December 26, 2022 (49:26 Md. R. 1080) Regulation .01B amended effective April 13, 2026 (53:7 Md. R. 328) A beer franchise filing is required to be filed with the Executive Director on the form prescribed by the Executive Director. A beer franchise form shall be filed periodically by: A beer nonresident dealer who sells beer to a Maryland wholesaler or county dispensary for distribution in the State; A Maryland brewery or microbrewery who sells beer to a Maryland wholesaler for distribution in the State; or A Maryland beer wholesaler who self-imports beer for sale in Maryland or subdistributes beer to another Maryland beer wholesaler for sale in Maryland. When a franchise status changes, a person required to file a beer franchise form under §A of this regulation shall report the change promptly to the Executive Director by filing a replacement beer franchise form or submitting an explanatory letter, or both. Report of Retail License Activity. Each retail alcoholic beverages license-issuing authority shall file on a monthly basis a report with the Executive Director, on forms provided or approved by the Executive Director, listing all retail alcoholic beverages license activity, including issuances, cancellations, transfers, revocations, etc., for the report month. Each issuing authority shall file the monthly report with the Executive Director by the 15th of the month following the report month. Reports are due even if there is no activity. Each alcoholic beverages license-issuing authority shall file annually a complete report of all retail alcoholic beverages licenses renewed for the year on forms provided or approved by the Executive Director. This annual report shall be filed by the 15th of the month following the month the licenses are renewed. Reports filed by the alcoholic beverages license-issuing authority shall include the names of licensees, entity name and trade name, address, and any other information the Executive Director may require. The Executive Director may adopt a Statewide control number to be used by the alcoholic beverages license-issuing authority when filing reports. Each alcoholic beverages license-issuing authority shall file annually a complete report of all revenue derived for the year preceding from retail alcoholic beverages licenses, on forms provided or approved by the Executive Director. This annual report shall be filed by August 15 annually. Report of Dispensary Activities. Each county dispensary shall file annually a complete report summarizing all dispensary activities for the year on forms provided or approved by the Executive Director. This report shall be filed by August 15 annually and shall include gross profits, expenses, net profits of the dispensary, and any other information relating to the sale of alcoholic beverages that the Executive Director may require. Alcoholic Beverages Article, §§1-311, 5-103, and 5-104; Tax-General Article, §2-103; Annotated Code of Maryland Effective date: December 26, 2022 (49:26 Md. R. 1080) In this chapter, the following words have the meanings indicated. Terms Defined. “Advertising sign” means a printed board, poster, placard, or similar material provided by a supplier or licensed wholesaler to promote a particular alcoholic beverage product or supplier. “Alcoholic beverage list” means a list or other advertising piece which is provided to a specific licensed retailer or group of licensed retailers and includes: Captain's books, table tents, and similar items; and A list for wine, spirits, and beer. Brand Identifiable Advertising Material. “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. “Brand owner” means a person or entity, including but not limited to a brewery, distillery, rectifier, bottler, manufacturer, vintner, or winery, who has: Documented title for a specific brand of alcoholic beverages; and If applicable, obtained label approval from the Alcohol and Tobacco Tax and Trade Bureau. “Bureau” means the Alcohol and Tobacco Tax Bureau of the Comptroller of the Treasury. “Charity or nonprofit group” means an organization which qualifies for an exemption from federal income taxes under Internal Revenue laws and regulations. “Commission” means the Alcohol, Tobacco, and Cannabis Commission. “Comptroller” means the Comptroller of Maryland or the Comptroller’s designee. “Consumer” means an individual of legal age who buys, possesses, keeps, or transports lawfully acquired alcoholic beverages for personal use only and not for sale. “Contest” means a competition which is rated or scored by independent judges to determine a winner and when the winner is chosen by some skill, ability, or knowledge. “Coupon” means: 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. Executive Director” means the Executive Director of the Alcohol, Tobacco, and Cannabis Commission for the State of Maryland or the Executive Director’s designee. “General advertising” means a printed, spoken, or visual public announcement paid for by a supplier or wholesaler to promote a particular alcoholic beverage product or supplier and does not identify or benefit a particular retailer or group of retailers. Licensed Retailer. “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. “Nonresident dealer” means a person or entity that holds a nonresident dealer permit issued pursuant to Alcoholic Beverages Article, Annotated Code of Maryland. “On-premises advertising” means point-of-sale material in the form of a sign, placard, display, or other item provided by a supplier or licensed wholesaler placed on a licensed retailer's premises and intended to promote a particular product or supplier of alcoholic beverages. “On-premises promotion” means an activity: 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. “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: The name of the retailer; Product size, packaging, or pricing; Menus; or Information promoting a retailer's event or activity. “Representative” means an individual who is employed by or acts as an agent of a brand owner, nonresident dealer permittee, supplier, or licensed wholesaler and includes the holder of a solicitor's permit. “Retailer” means a person or entity that holds an alcoholic beverage retail license pursuant to Alcoholic Beverage Article, Annotated Code of Maryland. Supplier. “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. “Sweepstakes” means a drawing where the winner is chosen by lottery, matching game pieces, or a game of chance, or similar type of event which does not require any skill, ability, or knowledge in order to be selected. “Third party” means an independent advertising or promotional agency, or any other person who is contracted by a supplier or a licensed wholesaler to conduct promotional activities on the premises of an alcoholic beverage licensed retailer. Wholesaler. “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. A representative may not engage in an activity that is impermissible on the part of the brand owner, nonresident dealer, supplier, or licensed wholesaler. If the representative is found to be acting contrary to this chapter, the representative's license or permit may be subject to suspension or revocation, and the license or permit of the representative's employer may be subject to suspension or revocation. Trade practice restrictions upon a brand owner, supplier, or licensed wholesaler, which apply to alcoholic beverage products, advertising, or promotions, apply equally to nonalcoholic products if the activity or service could be construed as providing something of value to a licensed retailer or as relieving the licensed retailer of an ordinary business expense. If a licensee or permittee is deemed to be acting contrary to one or more specific provisions of this chapter, in whole or in part, in addition to other available administrative remedies, including suspension or revocation of a license or permit, the licensee's or permittee's authority to engage in that particular trade practice activity may be temporarily or permanently terminated, without affecting the other aspects of the licensee's or permittee's operation or authority. This chapter is applicable to all alcoholic beverage trade practice regulations. If there is a specific conflict with previously issued administrative notices or bulletins, these regulations prevail. Otherwise, any prior notice or bulletin on the subject of trade practices remains in effect. If a general statement conflicts with an exception or qualification applicable to persons or sets of circumstances, the regulation as stated in the exceptions or qualifications prevails over the general provisions insofar as there is any conflict or inconsistency between the two. In General. A coupon may only be provided to the consumer: 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 licensed wholesaler and retailer and their employees and immediate families may not participate in supplier-sponsored coupon promotions. A licensed wholesaler and retailer may provide application forms and coupon books to be displayed on retail premises. A licensed retailer may promote supplier-sponsored coupons in its advertising. A coupon offer shall have a definite expiration date printed on the coupon certificate. Multiple coupon offers are permitted. Coupons shall have wording stating that only individuals 21 years old or older may redeem coupons. Redemption shall require a proof of purchase. A monetary coupon offer may not exceed the supplier-to-wholesaler price during the period the coupon offer is in effect. A coupon offer shall be submitted to the Executive Director upon request. A coupon offer which the supplier considers questionable shall be submitted to the Executive Director for review before its use in Maryland. Supplier Coupon Records. Records Availability. 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. Record Requirements. Documentation shall include: The method used to distribute the coupon offer; The mailing list used to issue the coupon offer; The date the coupon went into effect; and The date the coupon expires. Records shall be preserved for 2 years after the date the coupon expires. Records Designation. A supplier shall: 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. In General. Except as provided in this regulation, a supplier, licensed wholesaler, or person connected with a supplier or licensed wholesaler may not furnish, procure, or otherwise prepare an alcoholic beverage list for a licensed retailer. A licensed retailer may prepare and provide the retailer's own alcoholic beverage list if there is not an exclusive arrangement with consideration given by a supplier or licensed wholesaler to the licensed retailer. A supplier may procure alcoholic beverage lists for a licensed retailer. The supplier shall charge the licensed retailer fair market value or higher. A list sold to a licensed retailer is not limited on the quantity and type of products listed. A licensed retailer and licensed wholesaler shall maintain documentation on their respective premises for a period of 2 years for lists sold to a licensed retailer. Table Tents. Alcoholic Beverages table tents may be personalized if the personalized portion is not more than 1/2 of the overall table tent. Except as provided in this chapter or Alcoholic Beverages Article, Annotated Code of Maryland, a supplier or licensed wholesaler may not sponsor or participate in an alcoholic beverage tasting on licensed retail premises. An alcoholic beverage tasting may be given by a supplier or licensed wholesaler only to bona fide members and guests of a: Charitable organization; Nonprofit group or association; Trade association; or Group of retailers by invitation. An alcoholic beverage tasting may be held only: On the licensed premises of a licensed wholesaler or supplier; On nonlicensed premises; or In a private room, not open to the public, which is located on licensed retail premises. Alcoholic beverages provided for a tasting shall be obtained through the licensed wholesaler's sample account and shown on the wholesaler's monthly tax return if held on: The premises of a licensed wholesaler or supplier; or Nonlicensed premises. A tasting may be held on licensed retail premises only if: The product is provided by the licensed retailer; Representatives of wine and distilled spirits suppliers or licensed wholesalers have a valid solicitor's permit for: Guest speakers, Experts, or Anyone operating under contractual or other agreements with the supplier or licensed wholesaler; and Details on the proposed tasting are submitted to the Executive Director as provided by Regulation .12 of this chapter. “Winemaker” dinners or similar dinners including beer or distilled spirits are permitted on a limited basis when held on licensed retailer's premises and involving participation of a brand owner's, supplier's, or licensed wholesaler's representative pursuant to Regulation .10 of this chapter. Consumer Tastings. A consumer tasting may be held: For the purpose of market survey or analysis: 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; By a supplier or licensed wholesaler for nonalcoholic beverage products on licensed retail premises, if the tasting is: Spontaneous, and Not announced in advance to the licensed retailer or public at large. Tastings sponsored by a supplier or licensed wholesaler may not be designed or used as an inducement to a licensed retailer. A supplier and licensed wholesaler who conduct tastings shall retain a file available for inspection on each event for 2 years. The file shall contain: Full particulars of each tasting; and A list of all persons who attended. In General. A consumer's source of supply is a licensed retailer. A representative or agent of a supplier or licensed wholesaler may provide to consumers in trivial quantities: 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. A licensed wholesaler or supplier may furnish samples for use by any bona fide religious, fraternal, civic, veterans, hospital, or charitable organization if it is a nonprofit organization which does not hold an alcoholic beverage retail license. A supplier or licensed wholesaler representative may have contact with consumers as permitted by Regulation .12 of this chapter. Solicitation of Consumers. Only an employee of a licensed retailer may directly solicit an order for alcoholic beverages from a consumer. A promotion or contact for an order that entails personal solicitation of a consumer away from licensed retailer's premises is prohibited. A supplier or licensed wholesaler representative may have casual conversations with consumers away from the licensed retail premises concerning the merits of products if the conversations or discussions are not for the purpose of selling or offering for sale alcoholic beverages to the consumers. A solicitor or salesperson may buy a consumer a drink at licensed, on-sale retail premises if: 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). A supplier or licensed wholesaler may have mailings of advertising materials to consumers as permitted by this chapter. In General. A third party, acting on behalf of a licensed supplier or licensed wholesaler, may not engage in a promotional activity that would not be approved if it were submitted by the licensed supplier or wholesaler. A supplier, licensed wholesaler, or third party may not use a charitable or nonprofit organization, a person or entity affiliated with or related to a licensee, or another third party, as a surrogate to circumvent the alcoholic beverage statutes or regulations. A charitable group may engage in independent fund-raising activities on licensed retail premises. A charitable group may receive a legitimate, non-product donation from a supplier or licensed wholesaler when the charitable group does not possess a retail license. A representative of a third party who engages in an approved alcoholic beverage promotional activity on behalf of a supplier or licensed wholesaler shall obtain a Maryland solicitor's permit in accordance with COMAR 14.23.01.07. Requests for Approval. Information pertaining to promotional activities involving the direct or indirect involvement of a supplier or licensed wholesaler shall be submitted in accordance with Regulation .12 of this chapter. When a third party is used to submit a proposal on behalf of the licensee, the proposal shall be accompanied by a letter signed by the licensee or, in the case of a corporation, by a corporate officer of the licensee indicating the licensee's: 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. In General. Proposals for conducting a sweepstakes or contest in the State shall be submitted to the Executive Director in time to be approved 14 days before the start of the contest or sweepstakes. A supplier or licensed wholesaler may sponsor a sweepstakes or contest in accordance with this chapter. A third-party promotional agency may sponsor a sweepstakes or contest if it complies with Regulation .07 of this chapter. A sweepstakes or contest may be advertised on radio, in newspapers, or in magazines if the licensed retailers are only referred to in general and not by name. A sweepstakes or contest held by a supplier or licensed wholesaler is not limited to a specific licensed retailer or group of licensed retailers. Instant winner vouchers shall be randomly placed in alcohol product packages if the licensed retailer has no knowledge of the placement and a record is kept of all parties who redeem a voucher. A licensed retailer may not participate in a sweepstakes or contest sponsored by a supplier or licensed wholesaler, or a third party representing a supplier or licensed wholesaler, except to display point-of-sale materials and provide entry blanks. A means of entry may be provided on neck hangers, or on or in caps, cap liners, corks, containers, label cartons, cases, or other material obtained by purchasing alcoholic beverages, if an alternative means of entry that does not require a purchase of alcoholic beverages is provided. General Sweepstakes and Contest Rules. Sweepstakes and contest participants shall be of legal drinking age. A supplier, licensed wholesaler or retailer, or their families or employees are not eligible to participate or receive prizes. A purchase of alcoholic beverages is not required to enter a sweepstakes or contest. Contest rules shall state: The beginning date and deadline for entry; Prizes; Chances of winning; How winners are chosen; and Any other general rules. In General. Advertising when paid for by the supplier or licensed wholesaler may not identify a particular licensed retailer, the retailer's employees, or the retailer's licensed premises. A licensed retailer or group of licensed retailers may not benefit, directly or indirectly, more than licensed retailers in general for advertisements when they are paid for by the supplier or licensed wholesaler. Cost of Advertising. A licensed wholesaler or retailer may not participate, directly or indirectly, in the cost of promoting or advertising wine or distilled spirit products unless the licensed wholesaler or retailer is the brand owner. A supplier or brand owner may not undertake any plan or design which directly or indirectly results in the purchase of wine or distilled spirits advertising materials, supplies, or services by a licensed wholesaler or retailer. Advertising Categories. Radio and Television Advertising. 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. Print Advertising. 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. Billboards. 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. Giant Inflatable Balloons, Bottles, Cans, and Mobile Displays. 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. In General. A neon or other sign, poster, placard, device, or graphic display bearing advertising matter, or any other form of advertising, for use in windows or elsewhere on the licensed premises, may be given by a supplier or licensed wholesaler to licensed retailer if: 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. Generally, the total cost of advertising items for products produced by a given brand owner on the premises of a given licensed retailer may not exceed $600 by a brand owner of wine or distilled spirits. Advertising or promotional materials, such as paper cups, matches, brochures, leaflets, circulars, napkins, placemats, calendars, or similar items, may be furnished to licensed retailers if the: 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. Advertising items, displays, and other promotional materials for nonalcoholic beverage products shall meet the same criteria and be subject to the same limitations as alcohol products if provided by a supplier or licensed wholesaler. To do otherwise could be construed as providing the licensed retailer with something of value contrary to applicable provisions of Alcoholic Beverages Article, Annotated Code of Maryland. An alcoholic beverage advertising sign, display, or item on a licensed retailer's premises is subject to confiscation if it is contrary to the provisions of Alcoholic Beverages Article, Annotated Code of Maryland, or any regulation under this subtitle. Advertising items may be furnished to licensed retailers in connection with a bona fide promotion as permitted by this regulation. Distilled Spirits and Wine Advertising. An advertisement may not be personalized for a particular licensed retailer or a licensee's retail promotion. Advertising material for an activity common to all licensed retailers that is mass produced and contains prominent and permanent material is permissible if: A licensed retailer is not identified; and The utilitarian value is secondary and only incidental to the value as an advertisement. Beer Advertising. A manufacturer, malt beverage supplier, nonresident dealer permittee, or a licensed wholesaler may not provide newspaper, radio, or television advertisement to a licensed retailer directly or indirectly. A sign, display, or other form of advertising shall contain brand identifiable advertising material that is prominent, permanent, and equal to the life and value of the utilitarian character of the advertising item. An advertising sign, poster, or point-of-sale material may contain personalized material for a particular licensed retailer if the personalized material is not more than 50 percent of the total dimension of the sign, poster, placard, or other material. An advertising sign, poster, or other point-of-sale material which contains personalized material shall contain brand identification which is equal to or greater than the personalized portion of the advertising sign, but in no case shall brand identification constitute less than 1/3 of the total area of the advertising sign. If an advertising sign, poster, or other point-of-sale material has no personalized material, the limits and restrictions set forth in §C(3) and (4) of this regulation do not apply. Retailer and Consumer Advertising Specialties. Nonpersonalized items, such as trays, coasters, mats, paper napkins, cups, and similar items that advertise a supplier's brand, are permitted to be given to a licensed retailer in trivial quantities. Specialty items may not be provided with a licensed retailer's name or logo placed on the item. Retailer advertising specialties do not relieve the licensed retailer of an ordinary business expense. Nonpersonalized items in excess of trivial quantities shall be sold to the licensed retailer at fair market value or higher if documentation of the sale is maintained. Hats, towels, t-shirts, glassware, and similar items that have manufacturer or supplier advertising shall be sold to licensed retailers at fair market value. Product Displays. A product display includes wine racks, bins, barrels, casks, shelving, and similar items, the primary function of which is to hold, shelve, or display product. A product display may not exceed the dollar limitations as described in Alcoholic Beverages Article, §§2-216 and 2-315, Annotated Code of Maryland. A display may not contain merchandise contained in a consumer offer program. A representative of licensed wine and liquor suppliers or wholesalers may not build displays on a licensed retailer's floor in excess of 15 cases. A display may be built anywhere on the licensed premises but may not be built onto a part of the existing shelving system at the retailer's establishment. A wine and liquor salesperson or merchandiser, or both, may build displays in excess of 15 cases but must make the appropriate charge back to the supplier. A beer salesperson may build displays and is not limited as to quantity if the advertising value of the display exceeds any secondary service provided to the licensed retailer. A supplier and wholesaler representative may not use a licensed retailer's fixtures or equipment to build or maintain displays. Except as provided in §E(10) of this regulation, when a display has been built, a salesperson or merchandiser may not rebuild the display, and a licensed retailer may not require a salesperson or merchandiser to move the display from one area of the licensed premises to another. A salesperson or merchandiser may not use licensed retailer-supplied equipment, supplies, computers, etc. to make or prepare product or other signs at a licensed retail establishment. It is permissible for a supplier or wholesaler representative to place “bottle neckers” on their products if no licensed retailer-supplied equipment or materials are used. An advertising item permitted by this regulation used in the display shall have brand identification that is conspicuous and permanent. An advertising item with a utilitarian value shall be altered or disabled in a manner as to render it not usable for its normal purpose. When a beer or malt beverage product display has been built, a salesperson, merchandiser, or driver may replenish or rebuild the display for purposes of product rotation at the time of a regularly scheduled delivery, merchandisers call, or sales call, subject to the provisions of Alcoholic Beverages Article, Annotated Code of Maryland. Umbrellas. A brand owner may furnish for display and use by a licensed retailer up to a total of 12 umbrellas advertising alcoholic beverages or nonalcoholic beer products, if: The total cost of umbrellas does not exceed $600; and No single brand is represented by more than six umbrellas. Umbrellas permitted under this section shall be displayed on the licensed retailer's premises. Umbrellas removed from the licensed retailer's premises may be returned to the brand owner. Approvals of On-Premises Advertising. It is not necessary to submit to the Executive Director for approval point-of-sale advertising items that are used consistent with this chapter. The burden of proof that all on-premises advertising items meet the requirements of this chapter rests with the supplier or nonresident dealer permit holders. A supplier shall submit for approval to the Executive Director advertising items of a questionable nature to assure they are operating within the provisions of this chapter. Approval of Advertising and Promotional Contracts. Before an alcoholic beverages supplier or malt beverage wholesaler enters into a contract for advertising and promotional services that will occur on the premises of a retail licensee in exchange for a sponsorship fee or other consideration, a copy of the contract, with supporting documentation, shall be submitted to the Executive Director for review. A supplier or wholesaler shall receive approval from the Executive Director prior to entering into a contract under §A(1) of this regulation. In General. Except as provided in COMAR 14.23.01 or this chapter, a brand owner, supplier, nonresident dealer permittee, or licensed wholesaler may not provide something of value to a licensed retailer as prohibited by provisions of Alcoholic Beverages Article, Annotated Code of Maryland A brand owner, supplier, nonresident dealer permittee, or licensed wholesaler may not provide a service or item of utilitarian value which would relieve a licensed retailer of an ordinary business expense. A supplier or licensed wholesaler may not move, stock, rotate, dust, or otherwise alter or disturb a competitor's products on a licensed retailer's premises. Shelf Management. A brand owner, supplier, nonresident dealer permittee, or licensed wholesaler may discuss in general and specific terms with a licensed retailer shelf-management concepts and programs which benefit the licensed retailer in marketing all of the licensed retailer's alcoholic beverage products. A supplier or licensed wholesaler may provide, publish, and generally make available data on market sales and analysis. A brand owner, supplier, nonresident dealer permittee, or licensed wholesaler may provide and suggest shelf-management plans or schematics which are personalized for a specific licensed retailer or group of licensed retailers. Implementation of a suggested shelf-management plan shall be done solely by the licensed retailer. A supplier or licensed wholesaler representative may not participate in stocking or rearranging shelves in connection with a shelf-management plan. Shelf Stocking and Product Rotation. A supplier or licensed wholesaler may not stock shelves, price items, or arrange any products including its own, for a licensed retailer except as provided in this chapter. A supplier or licensed wholesaler may rotate products, when rotation is performed to ensure product freshness and to take advantage of limited shelf life products. Limited rotation does not include any of the following activities: 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. Beer, malt beverage products, wine coolers, and spirit coolers differ somewhat from other alcoholic beverages due to limited shelf life. A driver or salesperson may rotate a licensed wholesaler's own product that is meant to be accessible by the consumer so that the current delivery is placed in the position of being “first in, first out”. A supplier or licensed wholesaler that distributes nonalcoholic beverage products, for example, sodas, teas, bottled water, juices, and other items, may stock shelves at a retail licensed premises with those products. This shelf stocking of nonalcoholic beverage products may not include nonalcohol beer or nonalcohol wine products. A supplier or licensed wholesaler may dust alcoholic beverage products, but the dusting may not be used as a subterfuge for shelf stocking or impermissible rotation. A supplier or licensed wholesaler may not enter into an agreement, financial or otherwise, with a licensed retailer to assure a certain allocation or positioning of shelf space, including a slotting allowance, for the licensed wholesaler's or supplier's product. A supplier or licensed wholesaler representative may set up advertising displays on a licensed retailer's premises consistent with the provision of Regulation .10 of this chapter. Draft Equipment. A licensed wholesaler may furnish at no charge to a licensed retailer minimum services to beer or wine draft systems, such as cleaning lines and minor repairs and parts such as washers, nuts, or clamps, and may provide the necessary equipment to take beer from the keg to the stanchion station if the parts and equipment are minimal in cost. A licensed wholesaler may provide items such as: 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. A licensed wholesaler may not give any refrigeration or draft equipment to a licensed retailer. A licensed wholesaler may rent or lease refrigeration or draft equipment to a licensed retailer at fair market value or higher. A licensed wholesaler may perform the labor service part of draft system installation or alterations and may repair equipment such as refrigerators or compressors if the licensed wholesaler charges at least fair market value, or higher, for labor and parts. A licensed wholesaler representative may be present at a special event where alcoholic beverages are dispensed from rented refrigerated trucks, but may not dispense or provide other assistance before, during, or after the event except to: Ensure protection of the licensed wholesaler's equipment; and Set up tapes and train licensed retailer's representatives in their use. Inventories and Deliveries. A salesperson may take inventory of the salesperson's company's products for purposes of recommending a purchase order. Orders may not be taken for products not in the licensed wholesaler's inventory. A salesperson may not place a licensed retailer's inventory in or on a licensed retailer's computer or other records of the licensed retailer, and a salesperson may not develop a customized product or price list for a particular licensed retailer or group of licensed retailers but may provide a generic diskette which shall be made available to any licensed retailer who requests a generic diskette. Locations of Deliveries. 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. Deliveries shall be made on the invoice date or the next delivery date to that area. If the delivery is not made, the order shall be canceled and a new order prepared with the appropriate price and conditions of sale for the date of the most recent order. Description. An on-premises promotion is an activity to promote a brand owner's product that includes: Brand owner promotions; Charity promotions; Radio station promotions; or Licensed retailer promotions. An on-premises promotion includes tastings: 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: Is present; Discusses the characteristics and merits of a particular brand or type of alcoholic beverage; Interacts with the attendees; and May pour the representative's own products. Brand Owner Promotional Activities. A brand owner or supplier, third party, or wholesaler acting as a brand owner's agent may sponsor, organize, or participate in up to 24 promotional activities in a calendar year on behalf of the same licensed retailer. The limit is per brand owner or supplier and not per brand. An event conducted by or on behalf of a licensed off-premises retailer at a licensed on-premises retail account may not be construed as one of the licensed on-premises retailer's promotions if the licensed on-premises retailer's sole involvement is to cater the event and provide the alcoholic beverages. In these instances, it shall be considered one of the events allotted to the licensed off-premises retailer. A brand owner may provide brand identifiable prizes or give-away items to be used at approved on-premises promotions if: 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. A brand owner, supplier, or licensed wholesaler may not provide alcoholic beverage products at no cost to a licensed retailer. All products shall be provided and paid for through the normal distribution channels. A representative of a brand owner, supplier, or licensed wholesaler may attend and participate in an approved on-premises promotional activity and may spend up to $200 for the purchase of alcoholic beverage products at a licensed retail establishment at the regular price charged by the licensed retailer, including a reasonable and customary tip directed to service staff who are not owners, officers, partners, or named as license holders of the retailer. In addition to pre-planned and pre-announced promotions that are permitted, a supplier or licensed wholesaler may make short, spontaneous, and unannounced visits to a licensed retailer's premises for the purpose of promoting a brand owner's product. Brand identifiable items or prizes provided during these visits shall be of nominal value and distributed in trivial quantities. See Regulation .06B(4) of this chapter. Charity Promotions. A charity or nonprofit group which holds a temporary alcoholic beverage license is considered a licensed retailer and is generally subject to all the restrictions and responsibilities of any other licensed retailer regarding trade practices. A charity group which does not hold a retail license may receive legitimate donations from suppliers or licensed wholesalers when engaging in legitimate fund raising or other activities. Holders of a charity wine auction permit may receive alcohol from other sources as provided in Alcoholic Beverages Article, Annotated Code of Maryland. Radio Station Promotions. Radio stations are considered third parties and are subject to Regulation .07 of this chapter. When acting as a third-party agent for a supplier or licensed wholesaler, radio stations may not engage in any promotion on a licensed retailer's premises on behalf of a supplier or licensed wholesaler unless the supplier or licensed wholesaler is authorized by the Executive Director to conduct the promotion. Retail Promotions. A licensed retailer may sponsor promotional activities on the retailer's own premises. All expenses related to the promotion which include, but are not limited to, prizes, entertainment, support materials, staff, media advertising, and alcoholic beverages, shall be paid by the licensed retailer. Except as otherwise permitted in this chapter, a supplier or licensed wholesaler may not participate at a licensed retailer-sponsored promotion. Supplier and licensed wholesaler personnel may be on the premises of a licensed retailer-sponsored promotion for observation purposes only. A licensed retailer may not participate in the cost of advertising or promoting a wine or distilled spirits product. A licensed retailer may use advertising items including “bar kits” which are purchased from a brand owner or licensed wholesaler as authorized by Regulation .10 of this chapter. A supplier or licensed wholesaler may rent to a licensed retailer promotional materials approved by the Executive Director to be used at a licensed retailer-sponsored event if: 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. Approvals. A person or entity who engages in on-premises promotional activities as authorized by §B of this regulation shall file a report on forms provided by the Executive Director. A wholesaler or third party may file a promotional activity form on behalf of a brand owner only if they have written authorization to act as a representative of the brand owner and the authorization is provided to the Executive Director. The report filed with the Executive Director shall list all proposed events and shall be filed not later than the 20th day of the month preceding the month in which the proposed event will be conducted. Regular monthly reports are not acknowledged by the Executive Director. A brand owner or supplier, as well as any wholesaler or third party acting as an agent of the brand owner, is responsible for complying with all provisions of this chapter including limitations on the number of events conducted. Amended Report. An amended report: May be accepted up to 5 days before the planned promotional activity if unusual circumstances warrant; and Shall be approved by the Executive Director. If an accurate and timely report is not submitted: 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. Alcoholic Beverages Article, §§1-201, 1-302, 1-311, 1-312, 1-313, 1-318, 1-319, 1-401, 1-408, 1-409, 2-214, 2-216, 2-217, 2-218, 2-313, 2-315, 2-316, 2-317, 3-501, 3-507, 6-202, 6-311, 6-319, 6-327, and 6-328, Annotated Code of Maryland Effective date: Transferred from COMAR 03.02.05 to COMAR 14.23.04 effective December 26, 2022 (49:26 Md. R. 1080) Regulation .01B amended effective April 13, 2026 (53:7 Md. R. 328) Regulation .10A, F amended effective April 13, 2026 (53:7 Md. R. 328) Regulation .12B amended effective April 13, 2026 (53:7 Md. R. 328) Each written certification submitted to the Executive Director by a manufacturer as required under Business Regulation Article, §16-603(a), Annotated Code of Maryland, shall be submitted under oath in the same manner as prescribed in Business Regulation Article, §1-201(1), Annotated Code of Maryland. When a certification submitted under Business Regulation Article, §16-603, Annotated Code of Maryland, is approved, the Executive Director shall send written notification of such approval to the manufacturer, including the effective date of the certification and the date upon which such certification shall expire. Each certification submitted pursuant to Business Regulation Article, §16-602, Annotated Code of Maryland, shall state the date on which the cigarette or cigarettes listed therein were tested, provided that no such date of testing shall predate the date of submission of the certification by more than 36 months. If a wholesaler consents, a manufacturer may provide to a wholesaler the copies of the illustration required under Business Regulation Article, §16-605(a), Annotated Code of Maryland, in an electronic format. If a retailer, subwholesaler, or vending machine operator consents, a wholesaler may provide the copies of the illustration required under Business Regulation Article, §16-605(b), Annotated Code of Maryland, in an electronic format. The Executive Director shall prepare a Fire Safety Cigarette Certification List which list shall identify each cigarette: Whose certification has been approved by the Executive Director as meeting the performance standard under Business Regulation Article, §16-602, Annotated Code of Maryland; and That is a style of a brand family of a tobacco product manufacturer certified by the Attorney General. The Fire Safety Cigarette Certification List may be updated by the Executive Director four times a year on the first day of each quarter of the calendar year. A cigarette shall be removed from the Fire Safety Cigarette Certification List if it: Is a style of a brand family of a tobacco product manufacturer that has not been certified by the Attorney General; Fails to be recertified in accordance with Business Regulation Article, §16-603(d), Annotated Code of Maryland; or May not be sold in the State, because it does not comply with federal law or regulations. Cigarette Removal from Certification List and Hearings. If a cigarette is removed from the Fire Safety Cigarette Certification List by the Executive Director, prompt written notification shall be sent to the manufacturer setting forth the reasons for such action. A manufacturer may request a hearing before the Executive Director within 30 days of receipt of the written notification. If a hearing is requested as provided in §D(1) of this regulation, the Executive Director shall give notice and hold the hearing in accordance with State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland. A cigarette removed from the list is considered to be a noncomplying cigarette subject to the provisions of Business Regulation Article, §16-606, Annotated Code of Maryland, if: 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. Each manufacturer shall maintain copies of all tests conducted on all cigarettes for a period of 36 months and shall make copies of such reports available to the Executive Director upon written request. Cigarettes seized under Business Regulation Article, §16-610(a), Annotated Code of Maryland, are considered to be noncompliant with the provisions of Business Regulation Article, §16-602, Annotated Code of Maryland, and the retailer, subwholesaler, vending machine operator, or wholesaler in possession of the cigarettes at the time they are seized shall be subject to penalties as provided in Business Regulation Article, §16-608, Annotated Code of Maryland. A police officer or other authorized personnel may inspect the premises and records of a retailer, subwholesaler, vending machine operator, or wholesaler to determine whether cigarettes in their possession are in violation of Business Regulation Article, Title 16, Subtitle 6, Annotated Code of Maryland. In addition to a police officer, inspectors employed by the Executive Director, or other persons designated by the Executive Director as authorized under Alcoholic Beverages Article, §1-321, Annotated Code of Maryland, shall be authorized personnel that may act in accordance with the provisions of Business Regulation Article, §16-610, Annotated Code of Maryland. Business Regulation Article, §16-607(1), Annotated Code of Maryland Effective date: Transferred from COMAR 03.02.06 to COMAR 14.23.05 effective December 26, 2022 (49:26 Md. R. 1080)