This chapter establishes the criteria and procedure for the Secretary to grant exemptions to Class 4 Limited Winery License applicants from the ingredient percentage requirement set forth in Alcoholic Beverages and Cannabis Article, §2-206(c)(2)(ii), Annotated Code of Maryland. The following terms have the meanings indicated. Terms Defined. “Class 4 Limited Winery License holder” means a person who holds a Class 4 Limited Winery License that owns or has under contract less than 20 acres of Maryland-grown agricultural products in cultivation. “Maryland-grown agricultural product” means any product produced or cultivated on a farm or vineyard in the State other than cannabis or any other product containing tetrahydrocannabinol as defined in Alcoholic Beverages and Cannabis Article, §36-1102, Annotated Code of Maryland. “Secretary” means the Secretary of Agriculture. Time of Application. A Class 4 Limited Winery License holder may submit a written application to the Secretary requesting a 1-year exemption from the requirement set forth in Alcoholic Beverages and Cannabis Article, §2-206(c)(2)(ii), Annotated Code of Maryland, that at least 51 percent of the ingredients used in the annual production of the license holder’s wine are Maryland-grown agricultural products. Decision on Application. Within 30 days after a completed exemption application is received pursuant to §A of this regulation, the Secretary shall issue a decision granting or denying the application. Duration of Exemption. An exemption granted by the Secretary under this chapter shall be valid for 1 year following the date the application is granted by the Secretary. Criteria. In deciding whether to grant a Class 4 Limited Winery holder’s request for an exemption under Regulation .03 of this chapter, the Secretary shall consider how the following events or factors may have affected the person within the year before filing the application: Weather disasters, including but not limited to excessive moisture, frost, winter kill, or hurricanes; Disease; Pest pressure; Chemical damage; Steps taken by the applicant to minimize the need for the requested exemption; and Any other event or factor that the Secretary deems relevant for deciding whether to grant an applicant’s request for a 1-year exemption from the ingredient percentage requirement set forth in Alcoholic Beverages and Cannabis Article, §2-206(c)(2)(ii), Annotated Code of Maryland, including, but not limited to, whether the Secretary: Determines that the event or factor is deemed to be one that was outside the control of the applicant; or Has previously granted the Class 4 Limited Winery License holder an exemption from the ingredient percentage requirement set forth in Alcoholic Beverages and Cannabis Article, §2-206(c)(2)(ii), Annotated Code of Maryland, and, if so, the number of times that the person has been granted this exemption. Basis for Exemption. The Secretary may grant the Class 4 Limited Winery License holder’s request for an exemption if the person can demonstrate that: The failure to meet the ingredient percentage requirement set forth in Alcoholic Beverages and Cannabis Article, §2-206(c)(2)(ii), Annotated Code of Maryland, resulted from at least one of the events or factors identified in §A of this regulation; and Despite having taken reasonable steps to secure at least 51 percent of the ingredients used in the annual production of the licensed holder’s wine are Maryland-grown agricultural products, the Class 4 Limited Winery License holder is unable to meet the statutory percentage requirement. The Secretary may deny a Class 4 Limited Winery License holder’s request for an exemption if the person has been granted an exemption for each of the previous 4 years. Agriculture Article, §2-103; and Alcoholic Beverages and Cannabis Article, §2-206; Annotated Code of Maryland Effective date: December 11, 2025 (52:24 Md. R. 1199)