# COMAR Title 14 — Independent Agencies

## Subtitle 23 — Alcohol, Tobacco, and Cannabis Commission

### Chapter 01 — Alcoholic Beverages

**Authority:** 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

**Administrative History:** Effective date: December 26, 2022 (49:26 Md. R. 1080)

**Administrative History:** Regulation .01B amended effective April 13, 2026 (53:7 Md. R. 328)

**Administrative History:** Regulation .19B amended effective April 13, 2026 (53:7 Md. R. 328)

#### Regulation .01 Definitions.

*COMAR 14.23.01.01*

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

  (1) “Alcohol and Tobacco Tax and Trade Bureau” means the Tax and Trade Bureau of the United States Department of the Treasury.

  (2) Alcoholic Beverage.

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

      (i) Contains at least one-half of 1 percent of alcohol by volume; and

      (ii) Is suitable for beverage purposes.

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

    (c) “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.

  (3) “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.

  (4) “Commission” means the Alcohol, Tobacco, and Cannabis Commission.

  (5) “Comptroller” means the Comptroller of Maryland or the Comptroller’s designee.

  (6) “County” means a county of the State of Maryland or Baltimore City.

  (7) “Executive Director” means the Executive Director of the Alcohol, Tobacco, and Cannabis Commission for the State of Maryland or the Executive Director’s designee.

  (8) “License” means an alcoholic beverages license issued or a permit granted under Alcoholic Beverages Article, Annotated Code of Maryland

  (9) “License holder” means a holder of an alcoholic beverages license, including:

    (a) A county liquor control board and a county dispensary; and

    (b) 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.

  (10) “Sale” means whenever an alcoholic beverage is offered, given, paid for, or bartered for between one or more parties.

#### Regulation .02 Retail Licensees — Handling of Alcoholic Beverages and Records.

*COMAR 14.23.01.02*

A. Alcoholic Beverages — Tax Payment.

  (1) 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.

  (2) 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.

B. 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.

C. 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.

D. Sale.

  (1) 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.

  (2) 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.

E. Delivery. Licensed retailers are authorized to deliver alcoholic beverages off premises only:

  (1) With written approval of the board of license commissioners;

  (2) Within their respective county or city; and

  (3) To individuals 21 years old or older.

#### Regulation .03 Wine and Distilled Spirits Credit Control.

*COMAR 14.23.01.03*

A. Late Payments.

  (1) An invoice issued by licensed wholesalers, licensed manufacturers, or nonresident winery permit holders shall:

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

    (b) 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

    (c) 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.

  (2) 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.

  (3) The Executive Director shall issue a release annually to all licensed wholesalers, licensed manufacturers, and nonresident winery permit holders containing the list deadline:

    (a) Purchase dates; and

    (b) Due dates for payments.

  (4) A licensed wholesaler, licensed manufacturer, or nonresident winery permit holder shall report:

    (a) 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

    (b) To the licensed retailer simultaneously with the report filed with the Executive Director.

  (5) The Executive Director shall issue a list to licensed wholesalers, licensed manufacturers, and nonresident winery permit holders which shall:

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

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

  (6) The Executive Director is authorized to issue supplementary lists when deemed necessary.

  (7) 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.

  (8) 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.

  (9) 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.

  (10) 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.

  (11) 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.

  (12) 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.

  (13) Pickup of Checks.

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

    (b) 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.

  (14) Duplicate Checks.

    (a) 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.

    (b) 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.

  (15) 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.

B. Returned Checks.

  (1) 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.

  (2) 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.

  (3) 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) 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

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

      (i) Has or may have the effect of removing the licensed retail dealer from the current list,

      (ii) Has or may have the effect of excluding the licensed retail dealer's name from the next list,

      (iii) Was in payment of a C.O.D. shipment while the licensed retail dealer's name appeared on a current list.

C. General Provisions.

  (1) Information on each periodic list and supplements to it will remain in effect until the next list is issued.

  (2) 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.

  (3) The Executive Director may also change or extend the due date with notice, under extenuating circumstances.

  (4) Reports shall be made to the Executive Director in a manner provided or approved by the Executive Director.

  (5) 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.

  (6) 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.

  (7) Sales on a consignment or approval basis are not permitted.

#### Regulation .04 Standards of Fill.

*COMAR 14.23.01.04*

A. 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.

B. 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.

C. Before a label may be sold and distributed in Maryland, the label shall be approved by the Alcohol and Tobacco Tax and Trade Bureau.

#### Regulation .05 Uniform Newspaper and Magazine Advertising of Wines and Distilled Spirits.

*COMAR 14.23.01.05*

A. 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.

B. 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:

  (1) Any label affixed to any container of distilled spirits or wines, or any individual covering, carton, or other wrapper of the container;

  (2) 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.

C. General Requirements and Restrictions in the Advertising of Distilled Spirits and Wines.

  (1) Mandatory Statements.

    (a) 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.

    (b) 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.

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

    (d) 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.

    (e) “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.

    (f) 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).

  (2) 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:

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

    (b) 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;

    (c) 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;

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

  (3) Prohibited Statements and Representations.

    (a) Restrictions. An advertisement may not contain:

      (i) Any statement that is false or misleading.

      (ii) Any statement that is disparaging of a competitor's products.

      (iii) Any statement, design, device, or representation which is obscene or indecent.

      (iv) Any statement, design, device, or representation of, or relating to, analyses, standards, or tests, irrespective of falsity, which is likely to mislead the consumer.

      (v) 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.

      (vi) 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.

    (b) 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.

    (c) 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:

      (i) " ---------- is good for you";

      (ii) “Conducive to well-being”.

    (d) 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.

    (e) 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.

    (f) Examples of prohibited statements are:

      (i) 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”.

      (ii) “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”.

      (iii) “Analyzed by the Laboratory and found to be pure free from deleterious ingredients”, “Tested and approved”, or “Signed by The Research Institute”.

  (4) Other Prohibited Statements.

    (a) 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.

    (b) 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.”

    (c) Restrictions. An advertisement for wine may not contain:

      (i) 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.

      (ii) 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).

    (d) 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:

      (i) In the case of vintage wine, the year of vintage may be stated if it appears on the label;

      (ii) 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.

    (e) 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).

    (f) 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.

#### Regulation .06 Sale and Delivery for Export.

*COMAR 14.23.01.06*

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.

#### Regulation .07 Solicitor's Permit.

*COMAR 14.23.01.07*

A. Definitions.

  (1) “Adult” means any person who has reached the age of majority.

  (2) “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.

  (3) “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.

  (4) “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.

  (5) “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:

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

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

  (6) “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.

B. General Procedures.

  (1) 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.

  (2) 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.

  (3) 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.

  (4) 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.

  (5) 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.

  (6) 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.

  (7) 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.

  (8) Correction for change of address, employment, or representation status, or to replace lost or destroyed permits, may be made during the permit year.

  (9) 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.

#### Regulation .08 Wine and Distilled Spirits Distributorship Appointments.

*COMAR 14.23.01.08*

A. 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.

B. 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.

C. 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.

D. 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.

E. 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.

F. 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.

G. This regulation does not apply to a county dispensary acting as a wholesaler.

#### Regulation .09 Samples of Alcoholic Beverages.

*COMAR 14.23.01.09*

A. 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.

B. Permitted Samples.

  (1) A licensed wholesaler may furnish samples or draw from sample accounts for the following purposes:

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

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

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

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

  (2) 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.

  (3) 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.

C. Samples to Licensed Retailers.

  (1) 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:

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

    (b) 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.

  (2) 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.

  (3) A representative of the licensed retailer shall sign a receipt for each sample provided.

  (4) 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:

    (a) Completed retailer receipts; or

    (b) Unused samples.

  (5) 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.

D. Samples to Bona Fide Charitable Organizations, Nonprofit Organizations, or Alcoholic Beverage Trade Associations.

  (1) 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.

  (2) Alcoholic beverages supplied may not exceed what is reasonably expected to be used for the specific event or function.

  (3) 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.

  (4) A representative of the charitable organization, nonprofit organization, or alcoholic beverage trade association shall sign a receipt for all sample alcoholic beverages received.

E. Samples to Alcoholic Beverage Experts.

  (1) 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.

  (2) Before an individual may qualify as an expert under this section, the individual shall submit credentials to, and be approved by, the Executive Director.

  (3) 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.

  (4) A licensed wholesaler may directly provide samples to experts under the following conditions:

    (a) The expert signs a receipt for the product; and

    (b) Not more than three bottles of each brand is provided.

  (5) 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.

  (6) 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.

  (7) Samples provided under this section need not originate from a licensed nonresident dealer.

F. Samples to Officers, Officials, and Employees.

  (1) 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.

  (2) The Executive Director may limit the number of samples drawn under this section if the samples are believed to be excessive or improperly used.

G. The Executive Director may require a written request for samples of beer, wine, or distilled spirits before delivery under this regulation.

H. Records and Reports.

  (1) 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.

  (2) A licensed wholesaler or nonresident winery permit holder shall maintain accurate records to support monthly sample reports which shall be available for inspection.

#### Regulation .10 Sales by Holders of Class E Water Vessel Licenses.

*COMAR 14.23.01.10*

A. 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:

  (1) Only to paying passengers who are a part of a bona fide regularly scheduled or chartered tour; and

  (2) While the vessel is:

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

    (b) Underway.

B. 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.

C. 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.

D. For the purpose of this regulation, the term “paying passengers” means:

  (1) Those persons who directly or indirectly pay a fee for boarding a regularly scheduled or chartered tour on a vessel; and

  (2) Guests of any person described in §D(1) of this regulation.

#### Regulation .11 Consumer Orders of Alcoholic Beverages.

*COMAR 14.23.01.11*

A. 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.

B. In order to receive authorization, an applicant shall submit a detailed plan to the Executive Director:

  (1) Giving the names of all licensees the applicant is representing directly or indirectly; and

  (2) 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.

C. An authorization given is valid indefinitely or until revoked or modified by the Executive Director.

D. 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.

E. 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.

#### Regulation .12 Wholesaler Credit Sales of Beer to Worcester County Retailers.

*COMAR 14.23.01.12*

A. Beer Credit Sales.

  (1) A licensed wholesaler may sell beer on credit to retailers in Worcester County if the:

    (a) 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

    (b) Licensed wholesaler complies with the provisions of this regulation.

  (2) 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.

  (3) A licensed wholesaler who has not received payment in accordance with §A(2) of this regulation shall:

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

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

B. Notification.

  (1) Notification of a delinquency under §A(3)(b) of this regulation may be in any form but shall contain at least the following information:

    (a) Name of the licensed wholesaler filing the report;

    (b) Name and trade name of the licensed retailer;

    (c) Full address of the licensed retailer;

    (d) Date and number of the original invoice; and

    (e) Amount of delinquency.

  (2) 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.

  (3) 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.

  (4) 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.

C. 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.

#### Regulation .13 Family Beer and Wine Facility Permit.

*COMAR 14.23.01.13*

A. Production.

  (1) The gallonage limitation for a consumer to brew beer or ferment wine shall be in accordance with 27 CFR 24.75 and 25.205.

  (2) 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.

B. Sampling.

  (1) 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.

  (2) The amount of samples provided to individuals shall be limited to the amount specified in Alcoholic Beverages Article, Annotated Code of Maryland.

C. Records.

  (1) 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.

  (2) 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.

D. Sales. The holder of a family beer and wine facility permit may not offer for sale any alcoholic beverages.

#### Regulation .14 Statewide Caterer's License.

*COMAR 14.23.01.14*

A. Records. The holder of a Statewide caterer's license shall maintain the following:

  (1) Records pertaining to all purchases and sales of alcoholic beverages;

  (2) Copies of executed catering contracts with persons or entities for events at which alcoholic beverages are provided; and

  (3) Original copies of catering certificates required under §B of this regulation.

B. Catering Certificates.

  (1) 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:

    (a) The name and license number of the Statewide caterer;

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

    (c) The address where the catered event will be conducted;

    (d) The date or dates of the catered event; and

    (e) Other information as may be required by the Executive Director.

  (2) Copies of Certificates.

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

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

    (c) 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.

C. Boards of License Commissioners.

  (1) 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.

  (2) 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:

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

    (b) All alcoholic beverage activities at the catered event.

  (3) 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.

#### Regulation .15 Alcohol Awareness Program and Training.

*COMAR 14.23.01.15*

A. Alcohol Awareness Program Provider Requirements. A holder of an alcohol awareness program permit shall:

  (1) Maintain a current alcohol awareness program permit as required under Alcoholic Beverages Article, §2-158, Annotated Code of Maryland;

  (2) Maintain each alcohol awareness program in conformance with Alcoholic Beverages Article, §4-505, Annotated Code of Maryland, as certified by the Executive Director;

  (3) Notify the Executive Director, in writing, of any changes to the program, at least 30 days before implementation, for the Executive Director’s approval;

  (4) Upon approval by the Executive Director under §A(3) of this regulation, notify each alcohol awareness instructor and provide revised program material;

  (5) Notify the Executive Director, in writing, of discontinuance of the program with notice sent simultaneously to each alcohol awareness instructor;

  (6) Submit authorized alcohol awareness instructor permit applications to the Executive Director for approval;

  (7) Provide, at a minimum, 3 hours of alcohol awareness instructional classroom or electronic training of the program approved by the Executive Director;

  (8) Provide a program testing component with a uniform passing score and uniform objectives, which have been preapproved by the Executive Director;

  (9) 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:

    (a) Program administrator's signature;

    (b) Program name;

    (c) Instructor's name;

    (d) Student's name;

    (e) Issuance date; and

    (f) 4 year validation period;

  (10) 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

  (11) Maintain records for a period of 5 years from the date the certificate was issued, reflecting:

    (a) The student's name;

    (b) The student's address;

    (c) The instructor's name;

    (d) The permit number;

    (e) The certification date; and

    (f) If known:

      (i) The local licensing board; and

      (ii) The licensed retail establishment's name and address.

B. 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.

C. Alcohol Awareness Instructor Requirements. A holder of an alcohol awareness instructor permit shall:

  (1) Maintain a current alcohol awareness instructor's permit as required by Alcoholic Beverages Article, §2-158, Annotated Code of Maryland;

  (2) Apply for an alcohol awareness instructor permit through the authorizing alcohol awareness program administrator;

  (3) Provide alcohol awareness training that covers the program as certified by the Executive Director, including the:

    (a) Course content;

    (b) Classroom or electronic hours; and

    (c) Testing component;

  (4) 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;

  (5) Conduct the testing component in the presence of the student;

  (6) Provide within 10 days of completion of the class, a written list to the alcohol awareness program provider reflecting the:

    (a) Student's name;

    (b) Student's address;

    (c) Dates of classroom or electronic training; and

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

  (7) Maintain records of all alcohol awareness training classes and certifications for a period of 5 years.

D. 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.

E. 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.

F. 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.

#### Regulation .16 Come to Rest.

*COMAR 14.23.01.16*

A. Definitions.

  (1) “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.

  (2) “Licensed location” means the physical address of the licensed premises stated on the application.

  (3) 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.

  (4) “Warehouseman” means a person who is an employee of the wholesaler and listed on the regular salary list or payroll of the wholesaler.

B. 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.

C. 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.

D. 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.

#### Regulation .17 Nonresident Dealer Permit and Resident Dealer Permit Invoices.

*COMAR 14.23.01.17*

A. The holder of a nonresident dealer permit or resident dealer permit shall:

  (1) Obtain a separate permit for each location under which alcoholic beverages are invoiced to Maryland wholesalers or retailers; and

  (2) Include on each invoice the business name as stated on the permit application.

B. 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.

#### Regulation .18 Public Storage or Transportation Permit.

*COMAR 14.23.01.18*

A. A public storage permit authorizes the holder to operate a warehouse for the storage of alcoholic beverages of licensees or authorized permit holders.

B. A public transportation permit authorizes the holder to transport alcoholic beverages into, within, or out of this State for licensees or authorized permit holders.

C. A Public Transportation Permit may be applied for by:

  (1) A person engaged in the business of transporting alcoholic beverages for licensees into, within, and out of this State; or

  (2) 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:

    (a) No warehousing of the alcoholic beverages being transported;

    (b) No unreasonable delay in transporting the alcoholic beverages;

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

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

    (e) 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.

D. 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.

E. When transporting alcoholic beverages under a public transportation permit, the holder shall possess the following:

  (1) A valid public transportation permit; and

  (2) 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.

F. 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.

#### Regulation .19 Brand Size, Special Pack, Gift Packaging, and Labeling.

*COMAR 14.23.01.19*

A. Definitions.

  (1) “Depletion allowance” means an allowance offered by a supplier which is:

    (a) For a given brand and size;

    (b) For a specific duration;

    (c) For a given amount per case;

    (d) Based upon sales from existing wholesaler inventories; and

    (e) Not conditioned upon purchases by a wholesaler.

  (2) “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.

  (3) “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.

  (4) “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.

  (5) “Special pack” or “gift pack” means a carton or package which:

    (a) Contains:

      (i) More than one brand of wine or distilled spirits, or

      (ii) One brand of wine or distilled spirits and one nonalcoholic item; and

    (b) Is intended for ultimate sale to the consumer.

  (6) “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.

B. Special Pack or Gift Pack Requirements.

  (1) Size of Containers. Only one size of an alcoholic beverage container shall be represented within a special pack.

  (2) Containers in Carton. The total number of containers in a carton shall be in conformance with the provisions of §C of this regulation.

  (3) 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.

  (4) Consumer Oriented. A special pack shall be:

    (a) Entirely consumer oriented; and

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

  (5) 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.

  (6) 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.

  (7) 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.

  (8) Approval Process.

    (a) 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.

    (b) 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.

C. Containers in Carton.

  (1) Packages are to be distributed as follows:

    (a) Multiples of 12;

    (b) Half quantities;

    (c) Four 5 liters;

    (d) Four 4 liters;

    (e) Four 3 liters;

    (f) Six 3 liters;

    (g) Six 1¾ liters;

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

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

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

    (k) Any legal size packaged and sold as a single container.

  (2) 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.

D. Labeling.

  (1) 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.

  (2) Restricted or confined labels are prohibited for sale to licensed retail dealers.

  (3) Terms or conditions of sale, including delivery charges, C.O.D. charges, etc., shall be stated on the invoice covering the sale.
