EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
Italics indicate opposite chamber/conference committee amendments.
*hb0854*
HOUSE BILL 854
A1, C8 (2lr2416)
ENROLLED BILL
— Economic Matters and Ways and Means/Education, Health, and Environmental
Affairs —
Introduced by Delegate Wilkins
Read and Examined by Proofreaders:
_______________________________________________
Proofreader.
_______________________________________________
Proofreader.
Sealed with the Great Seal and presented to the Governor, for his approval this
_______ day of _______________ at ________________________ o’clock, ________M.
______________________________________________
Speaker.
CHAPTER ______
AN ACT concerning 1
Alcoholic Beverages – Maryland Alcohol Manufacturing and Promotion 2
FOR the purpose of repealing the Maryland Wine and Grape Promotion Fund and the 3
Advisory Commission on Maryland Wine and Grape Growing; establishing the 4
Advisory Commission on Maryland Alcohol Manufacturing in the Department of 5
Commerce as the successor to the Advisory Commission on Maryland Wine and 6
Grape Growing; establishing the Maryland Alcohol Manufacturing Promotion Fund 7
for certain purposes; requiring the Secretary of Commerce to award certain grants 8
from the Fund for certain purposes; directing the distribution of certain alcoholic 9
beverage tax revenues to the Fund; providing for the transfer of certain funds as of 10
a certain date; and generally relating to Maryland alcohol manufacturing and 11
promotion. 12
BY repealing 13 2 HOUSE BILL 854
Article – Agriculture 1
Section 2–1101 and 2–1102 and the subtitle “Subtitle 11. Maryland Wine and Grape 2
Promotion Fund”; and 10–1201 through 10–1206 and the subtitle “Subtitle 12. 3
Advisory Commission on Maryland Wine and Grape Growing” 4
Annotated Code of Maryland 5
(2016 Replacement Volume and 2021 Supplement) 6
BY adding to 7
Article – Economic Development 8
Section 5–1901 through 5–1912 to be under the new subtitle “Subtitle 19. Maryland 9
Alcohol Manufacturing and Promotion” 10
Annotated Code of Maryland 11
(2018 Replacement Volume and 2021 Supplement) 12
BY repealing and reenacting, with amendments, 13
Article – Tax – General 14
Section 2–301 and 5–105 15
Annotated Code of Maryland 16
(2016 Replacement Volume and 2021 Supplement) 17
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 18
That Section(s) 2–1101 and 2–1102 and the subtitle “Subtitle 11. Maryland Wine and Grape 19
Promotion Fund”; and 10–1201 through 10–1206 and the subtitle “Subtitle 12. Advisory 20
Commission on Maryland Wine and Grape Growing” of Article – Agriculture of the 21
Annotated Code of Maryland be repealed. 22
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 23
as follows: 24
Article – Economic Development 25
SUBTITLE 19. MARYLAND ALCOHOL MANUFACTURING AND PROMOTION. 26
5–1901. 27
(A) IN THIS SUBTITLE THE FOLLOWING WOR DS HAVE THE MEANINGS 28
INDICATED. 29
(B) “ADVISORY COMMISSION” MEANS THE ADVISORY COMMISSION ON 30
MARYLAND ALCOHOL MANUFACTURING . 31
(C) “BEER” HAS THE MEANING STAT ED IN § 1–101 OF THE ALCOHOLIC 32
BEVERAGES ARTICLE. 33
HOUSE BILL 854 3
(D) “BREWERY” MEANS AN ESTABLISHME NT OPERATED UNDER A CLASS 5 1
BREWERY LICENSE , CLASS 6 PUB–BREWERY LICENSE , CLASS 7 MICRO–BREWERY 2
LICENSE, OR CLASS 8 FARM BREWERY LICENSE . 3
(E) “DISTILLED SPIRITS” HAS THE MEANING STAT ED IN § 5–101 OF THE 4
TAX – GENERAL ARTICLE. 5
(F) “DISTILLERY” MEANS AN ESTABLISHMENT OPERAT ED UNDER A 6
CLASS 1 DISTILLERY LICENSE O R CLASS 9 LIMITED DISTILLERY L ICENSE. 7
(G) “FUND” MEANS THE MARYLAND ALCOHOL MANUFACTURING 8
PROMOTION FUND. 9
(H) “GROWER” MEANS A PERSON WHO : 10
(1) GROWS GRAPES , HOPS, FRUIT, HONEY, OR GRAIN TO BE INCLUDED 11
IN MANUFACTURED ALCO HOL IN THE STATE; AND 12
(2) PRODUCES AT LEAST $10,000 WORTH OF THESE PRODU CTS EACH 13
YEAR. 14
(I) “VITICULTURE” MEANS THE CULTIVATIO N AND STUDY OF GRAPE S AND 15
GRAPE VINES. 16
(J) “WINE” HAS THE MEANING STAT ED IN § 1–101 OF THE ALCOHOLIC 17
BEVERAGES ARTICLE. 18
(K) “WINERY” MEANS AN ESTABLISHME NT OPERATED UNDER A CLASS 3 19
WINERY LICENSE OR CLASS 4 LIMITED WINERY LICEN SE. 20
5–1902. 21
THERE IS AN ADVISORY COMMISSION ON MARYLAND ALCOHOL 22
MANUFACTURING IN THE DEPARTMENT . 23
5–1903. 24
(A) (1) THE ADVISORY COMMISSION CONSISTS O F THE FOLLOWING 25
MEMBERS: 26
(1) (I) THE SECRETARY OR THE SECRETARY’S DESIGNEE; 27
(2) (II) THE SECRETARY OF AGRICULTURE , OR THE SECRETARY’S 28
DESIGNEE; 29 4 HOUSE BILL 854
(III) THE SPECIAL SECRETARY OF THE GOVERNOR’S OFFICE OF 1
SMALL, MINORITY, AND WOMEN BUSINESS AFFAIRS, OR THE SPECIAL SECRETARY’S 2
DESIGNEE; 3
(3) (IV) ONE MEMBER OF THE ALCOHOL AND TOBACCO 4
COMMISSION, DESIGNATED BY THE CH AIR OF THE ALCOHOL AND TOBACCO 5
COMMISSION; 6
(4) (V) ONE MEMBER OF THE SENATE OF MARYLAND, APPOINTED 7
BY THE PRESIDENT OF THE SENATE; 8
(4) (5) (VI) ONE MEMBER OF THE HOUSE OF DELEGATES, 9
APPOINTED BY THE SPEAKER OF THE HOUSE; AND 10
(5) (6) (VII) THE FOLLOWING MEMBER S APPOINTED BY THE 11
GOVERNOR: 12
(I) 1. ONE MEMBER REPRESENT ING THE UNIVERSITY OF 13
MARYLAND COLLEGE OF AGRICULTURE AND NATURAL RESOURCES; 14
(II) 2. TWO MEMBERS REPRESEN TING BREWERIES IN TH E 15
STATE; 16
(III) 3. TWO MEMBERS REPRESEN TING DISTILLERIES IN THE 17
STATE; 18
(IV) 4. TWO MEMBERS REPRESEN TING WINERIES IN THE 19
STATE; AND 20
(V) 5. TWO MEMBERS REPRESEN TING GROWERS IN THE 21
STATE. 22
(2) TO THE EXTENT PRACTIC ABLE, THE MEMBERS OF THE 23
COMMISSION SHALL REAS ONABLY REFLECT THE G EOGRAPHIC, RACIAL, ETHNIC, 24
CULTURAL, AND GENDER DIVERSITY OF THE STATE. 25
(B) BEFORE TAKING OFFICE , EACH MEMBER OF THE ADVISORY 26
COMMISSION SHALL TAKE THE OATH REQUIRED BY ARTICLE I, § 9 OF THE 27
MARYLAND CONSTITUTION. 28
(C) (1) THE TERM OF A MEMBER IS 3 YEARS. 29
HOUSE BILL 854 5
(2) THE TERMS OF MEMBERS ARE STAGGERED AS REQ UIRED BY THE 1
TERMS PROVIDED FOR M EMBERS OF THE ADVISORY COMMISSION ON JULY 1, 2022. 2
(3) AT THE END OF A TERM , A MEMBER CONTINUES T O SERVE UNTIL 3
A SUCCESSOR IS APPOI NTED AND QUALIFIES . 4
(4) A MEMBER WHO IS APPOIN TED AFTER A TERM HAS BEGUN SERVES 5
ONLY FOR THE REST OF THE TERM AND UNTIL A SUCCESSOR IS APPOINT ED AND 6
QUALIFIES. 7
(5) A MEMBER MAY NOT BE AP POINTED FOR MORE THA N TWO 8
CONSECUTIVE FULL TER MS. 9
(D) THE GOVERNOR MAY REMOVE A MEMBER FOR INCOMPETE NCE OR 10
MISCONDUCT . 11
5–1904. 12
(A) THE GOVERNOR SHALL DESIGN ATE THE CHAIR OF THE ADVISORY 13
COMMISSION. 14
(B) FROM AMONG ITS MEMBER S, THE ADVISORY COMMISSION EACH YEAR 15
SHALL ELECT A VICE C HAIR. 16
(C) THE ADVISORY COMMISSION SHALL DETE RMINE THE MANNER OF 17
ELECTION OF THE VICE CHAIR AND ANY OTHER OFFICERS. 18
5–1905. 19
(A) THE ADVISORY COMMISSION SHALL DETE RMINE THE TIMES AND 20
PLACES OF ITS REGULA R AND SPECIAL MEETIN GS. 21
(B) THE CHAIR OF THE ADVISORY COMMISSION: 22
(1) MAY CALL A SPECIAL M EETING AT ANY TIME ; AND 23
(2) SHALL CALL A SPECIAL MEETING WHEN REQUEST ED BY TWO OR 24
MORE MEMBERS OF THE ADVISORY COMMISSION. 25
(C) A MAJORITY OF THE MEMB ERS THEN SERVING ON THE ADVISORY 26
COMMISSION IS A QUORU M. 27
5–1906. 28
6 HOUSE BILL 854
A MEMBER OF THE ADVISORY COMMISSION: 1
(1) MAY NOT RECEIVE COMP ENSATION AS A MEMBER OF THE 2
ADVISORY COMMISSION; BUT 3
(2) IS ENTITLED TO REIMB URSEMENT FOR EXPENSE S UNDER THE 4
STANDARD STATE TRAVEL REGULATIONS, AS PROVIDED IN THE STATE BUDGET . 5
5–1907. 6
THE DEPARTMENT SHALL PROV IDE STAFF FOR THE ADVISORY COMMISSION. 7
5–1908. 8
THE ADVISORY COMMISSION SHALL : 9
(1) ADVISE AND RECOMMEND TO THE SECRETARY FOR APPROVA L 10
THE ALLOCATION OF MON EY FROM THE MARYLAND ALCOHOL MANUFACTURING 11
PROMOTION FUND TO ELIGIBLE APPL ICANTS FOR PROGRAMS CONSIDERED 12
NECESSARY OR ADVISAB LE TO ACCOMPLISH THE PURPOSES OF THIS SUB TITLE; 13
(2) PROVIDE A FORUM TO A DDRESS THE ISSUES TH AT ARE RELEVANT 14
TO THE GROWTH OF THE MARYLAND ALCOHOL MANU FACTURING INDUSTRY ; AND 15
(3) IDENTIFY STRATEGIES TO FACILITATE GROWTH OF VITICULTURE 16
AND OTHER PRODUCTS U SED IN MANUFACTURED ALCOHOL SUCH AS HOPS , FRUIT, 17
HONEY, AND GRAIN. 18
5–1909. 19
(A) THERE IS A MARYLAND ALCOHOL MANUFACTURING PROMOTION 20
FUND. 21
(B) THE PURPOSE OF THE FUND IS TO PROVIDE GR ANTS THAT PROMOTE 22
THE ADVANTAGES AND A TTRIBUTES OF STATE BREWERIES , DISTILLERIES, AND 23
WINERIES AND THEIR P RODUCTS MANUFACTURED IN THE STATE. 24
(C) THE SECRETARY SHALL ADMIN ISTER THE FUND. 25
(D) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 26
SUBJECT TO REVERSION UNDER § 7–302 OF THE STATE FINANCE AND 27
PROCUREMENT ARTICLE. 28
HOUSE BILL 854 7
(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 1
AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 2
(E) THE FUND CONSISTS OF : 3
(1) REVENUE DISTRIBUTED TO THE FUND UNDER § 2–301(B) OF THE 4
TAX – GENERAL ARTICLE; 5
(2) MONEY APPROPRIATED I N THE STATE BUDGET TO THE FUND; AND 6
(3) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 7
THE BENEFIT OF THE FUND. 8
(F) THE FUND MAY BE USED ONLY FOR: 9
(1) GRANTS TO ELIGIBLE A PPLICANTS UNDER § 5–1910 OF THIS 10
SUBTITLE; AND 11
(2) ADMINISTRATIVE EXPEN SES OF THE FUND. 12
(G) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 13
IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 14
(2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 15
THE GENERAL FUND OF THE STATE. 16
(H) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 17
WITH THE STATE BUDGET . 18
5–1910. 19
(A) AN APPLICANT FOR A GR ANT FROM THE FUND SHALL SUBMIT AN 20
APPLICATION TO THE ADVISORY COMMISSION ON THE FOR M THAT THE SECRETARY 21
REQUIRES. 22
(B) TO BE ELIGIBLE TO REC EIVE A GRANT FROM TH E FUND, AN APPLICANT 23
MUST BE: 24
(1) A NONPROFIT ORGANIZA TION UNDER § 501(C)(3) § 501(C) § 25
501(C)(3) OR (6) OF THE INTERNAL REVENUE CODE; OR 26
(2) A STATE OR LOCAL GOVERN MENTAL UNIT. 27
8 HOUSE BILL 854
(C) THE SECRETARY SHALL AWARD GRANTS TO ELIGIBLE A PPLICANTS 1
FROM THE FUND BASED ON THE ADV ICE OF THE ADVISORY COMMISSION. 2
(D) SUBJECT TO THE AVAILA BILITY OF MONEY IN T HE FUND, THE 3
SECRETARY MAY AWARD G RANTS TO ELIGIBLE AP PLICANTS TO: 4
(1) FOSTER THE CREATION AND EXPANSION OF STATE BREWERIES , 5
DISTILLERIES, AND WINERIES; 6
(2) ATTRACT NEW VISITORS TO STATE BREWERIES , DISTILLERIES, 7
AND WINERIES; 8
(3) ENCOURAGE AND CREATE INCENTIVES FO R SPECIAL EVENTS TO 9
PROMOTE STATE BREWERIES , DISTILLERIES, AND WINERIES; 10
(4) EDUCATE THE PUBLIC A BOUT ALCOHOL MANUFAC TURING IN THE 11
STATE, ESPECIALLY THE HISTO RY OF THE INDUSTRY ; 12
(5) CONDUCT RESEARCH ON , DEVELOP INCENTIVES F OR, AND 13
PROMOTE THE GROWTH O F STATE AGRICULTURAL PR ODUCTS USED IN STATE 14
MANUFACTURED BEER , WINE, AND SPIRITS; OR 15
(6) SUPPORT THE EXPANSIO N OF MINORITY OWNERS HIP AND 16
PARTICIPATION IN THE OPERATION OF STATE BREWERIES , DISTILLERIES, AND 17
WINERIES. 18
(E) AN ELIGIBLE APPLICANT MAY NOT USE A GRANT PROVIDED UNDER THIS 19
SUBTITLE TO: 20
(1) SATISFY ANY PART OF A MATCHING FUND REQU IREMENT OF 21
ANOTHER STATE GRANT PROVIDED TO THE ELIGIBLE APPL ICANT; OR 22
(2) PAY FOR ACTIVITIES R ELATED TO LOBBYING , AS DEFINED IN 23
TITLE 5 OF THE GENERAL PROVISIONS ARTICLE. 24
5–1911. 25
THE ADVISORY COMMISSION SHALL ISSU E A REPORT EACH YEAR TO THE 26
GOVERNOR AND, IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT 27
ARTICLE, THE SENATE EDUCATION, HEALTH, AND ENVIRONMENTAL AFFAIRS 28
COMMITTEE AND THE HOUSE ECONOMIC MATTERS COMMITTEE ON THE ADVISORY 29
COMMISSION’S FINDINGS AND RECOM MENDATIONS . 30
5–1912. 31 HOUSE BILL 854 9
THE SECRETARY MAY ADOPT R EGULATIONS TO CARRY OUT THIS SUBTITLE . 1
Article – Tax – General 2
2–301. 3
(a) From the alcoholic beverage tax revenue, the Comptroller shall distribute the 4
amount necessary to administer the alcoholic beverage tax laws to an administrative cost 5
account. 6
(b) AFTER MAKING THE DIST RIBUTION REQUIRED UN DER SUBSECTION (A) 7
OF THIS SECTION , THE COMPTROLLER SHALL DIS TRIBUTE TO THE MARYLAND 8
ALCOHOL MANUFACTURING PROMOTION FUND UNDER § 5–1909 OF THE 9
ECONOMIC DEVELOPMENT ARTICLE THE ALCOHOLIC BEVERAGE TAX REVENUE 10
COLLECTED UNDER § 5–105 OF THIS ARTICLE ON : 11
(1) BEER PRODUCED BY HOL DERS OF A CLASS 5 BREWERY LICENSE , 12
CLASS 6 PUB–BREWERY LICENSE, CLASS 7 MICRO–BREWERY LICENSE , OR CLASS 8 13
FARM BREWERY LICENSE ; 14
(2) WINE PRODUCED BY HOL DERS OF A CLASS 3 WINERY LICENSE OR 15
CLASS 4 LIMITED WINERY LICEN SE; AND 16
(3) DISTILLED SPIRITS PR ODUCED BY HOLDERS OF A CLASS 1 17
DISTILLERY LICENSE O R CLASS 9 LIMITED DISTILLERY L ICENSE. 18
(C) After making the [distribution] DISTRIBUTIONS required under [subsection 19
(a)] SUBSECTIONS (A) AND (B) of this section, the Comptroller shall distribute the 20
remaining alcoholic beverage tax revenue to the General Fund of the State. 21
5–105. 22
(a) Except as provided in subsection (d) of this section, the alcoholic beverage tax 23
rate for distilled spirits is: 24
(1) $1.50 for each gallon or 39.63 cents for each liter; and 25
(2) if distilled spirits contain a percentage of alcohol greater than 100 proof, 26
an additional tax, for each 1 proof over 100 proof, of 1.5 cents for each gallon or 0.3963 cents 27
for each liter. 28
(b) Except as provided in subsection (d) of this section, the alcoholic beverage tax 29
rate for wine is 40 cents for each gallon or 10.57 cents for each liter. 30
10 HOUSE BILL 854
(c) Except as provided in subsection (d) of this section, the alcoholic beverage tax 1
rate on beer and mead is 9 cents for each gallon or 2.3778 cents for each liter. 2
(d) The tax imposed under § 5–102(b) of this subtitle shall equal the amount that 3
the discriminating jurisdiction charges a Maryland licensee or permit holder. 4
[(e) The revenue generated from the tax imposed under subsection (b) of this 5
section on wine produced at wineries licensed under the Alcoholic Beverages Article shall 6
be distributed to the Maryland Wine and Grape Promotion Fund under § 2–1102 of the 7
Agriculture Article.] 8
SECTION 3. AND BE IT FURTHER ENACTED, That all funds in the Maryland 9
Wine and Grape Promotion Fund at the end of June 30, 2022, shall be transferred to the 10
Maryland Alcohol Manufacturing Promotion Fund established under Section 2 of this Act. 11
SECTION 4. AND BE IT FURTHER ENACTED, That: 12
(a) The Advisory Commission on Maryland Alcohol Manufacturing established 13
under Section 2 of this Act is the successor of the Advisory Commission on Maryland Wine 14
and Grape Growing. 15
(b) In every law, executive order, rule, regulation, policy, or document created by 16
an official, an employee, or a unit of this State, the names and titles of those agencies and 17
officials mean the names and titles of the successor agency or official. 18
SECTION 5. AND BE IT FURTHER ENACTED, That any transaction or 19
employment status affected by or flowing from any change of nomenclature or any statute 20
amended by this Act and validly entered into or existing before the effective date of this Act 21
and every right, duty, or interest flowing from a statute amended by this Act remains valid 22
after the effective date of this Act and may be terminated, completed, consummated, or 23
enforced as required or allowed by any statute amended by this Act as though the 24
amendment had not occurred. If a change in nomenclature involves a change in name or 25
designation of any State unit, the successor unit shall be considered in all respects as 26
having the powers and obligations granted the former unit. 27
SECTION 6. AND BE IT FURTHER ENACTED, That: 28
(1) the continuity of every board, commission, office, department, agency, 29
or other unit is retained; and 30
(2) the personnel, records, files, furniture, fixtures, and other properties 31
and all appropriations, credits, assets, liabilities, and obligations of each retained unit are 32
continued as the personnel, records, files, furniture, fixtures, properties, appropriations, 33
credits, assets, liabilities, and obligations of the unit under the laws enacted by this Act. 34
SECTION 7. AND BE IT FURTHER ENACTED, That the initial term s of the 35
members appointed to the Advisory Commission on Maryland Alcohol Manufacturing 36 HOUSE BILL 854 11
under § 5–1903(a)(5) § 5–1903(a)(6) § 5–1903(a)(1)(vii) of the Economic Development 1
Article, as enacted by Section 2 of this Act, shall terminate as follows: 2
(1) three members on June 30, 2024; 3
(2) three members on June 30, 2025; and 4
(3) three members on June 30, 2026. 5
SECTION 8. AND BE IT FURTHER ENACTED, That this Act shall take effect July 6
1, 2022. 7
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.