LAWRENCE J. HOGAN, JR., Governor Ch. 461
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Chapter 461
(House Bill 854)
AN ACT concerning
Alcoholic Beverages – Maryland Alcohol Manufacturing and Promotion
FOR the purpose of repealing the Maryland Wine and Grape Promotion Fund and the
Advisory Commission on Maryland Wine and Grape Growing; establishing the
Advisory Commission on Maryland Alcohol Manufacturing in the Department of
Commerce as the successor to the Advisory Commission on Maryland Wine and
Grape Growing; establishing the Maryland Alcohol Manufacturing Promotion Fund
for certain purposes; requiring the Secretary of Commerce to award certain grants
from the Fund for certain purposes; directing the distribution of certain alcoholic
beverage tax revenues to the Fund; providing for the transfer of certain funds as of
a certain date; and generally relating to Maryland alcohol manufacturing and
promotion.
BY repealing
Article – Agriculture
Section 2–1101 and 2–1102 and the subtitle “Subtitle 11. Maryland Wine and Grape
Promotion Fund”; and 10–1201 through 10–1206 and the subtitle “Subtitle 12.
Advisory Commission on Maryland Wine and Grape Growing”
Annotated Code of Maryland
(2016 Replacement Volume and 2021 Supplement)
BY adding to
Article – Economic Development
Section 5–1901 through 5–1912 to be under the new subtitle “Subtitle 19. Maryland
Alcohol Manufacturing and Promotion”
Annotated Code of Maryland
(2018 Replacement Volume and 2021 Supplement)
BY repealing and reenacting, with amendments,
Article – Tax – General
Section 2–301 and 5–105
Annotated Code of Maryland
(2016 Replacement Volume and 2021 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That Section(s) 2–1101 and 2–1102 and the subtitle “Subtitle 11. Maryland Wine and Grape
Promotion Fund”; and 10–1201 through 10–1206 and the subtitle “Subtitle 12. Advisory
Commission on Maryland Wine and Grape Growing” of Article – Agriculture of the
Annotated Code of Maryland be repealed.
Ch. 461 2022 LAWS OF MARYLAND
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SECTION 2. AND BE IT FURTHER ENA CTED, That the Laws of Maryland read
as follows:
Article – Economic Development
SUBTITLE 19. MARYLAND ALCOHOL MANUFACTURING AND PROMOTION.
5–1901.
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.
(B) “ADVISORY COMMISSION” MEANS THE ADVISORY COMMISSION ON
MARYLAND ALCOHOL MANUFACTURING .
(C) “BEER” HAS THE MEANING STAT ED IN § 1–101 OF THE ALCOHOLIC
BEVERAGES ARTICLE.
(D) “BREWERY” MEANS AN ESTABLISHME NT OPERATED UNDER A CLASS 5
BREWERY LICENSE , CLASS 6 PUB–BREWERY LICENSE , CLASS 7 MICRO–BREWERY
LICENSE, OR CLASS 8 FARM BREWERY LICENSE .
(E) “DISTILLED SPIRITS” HAS THE MEANING STAT ED IN § 5–101 OF THE
TAX – GENERAL ARTICLE.
(F) “DISTILLERY” MEANS AN ESTABLISHME NT OPERATED UNDER A
CLASS 1 DISTILLERY LICENSE O R CLASS 9 LIMITED DISTILLERY LICENSE .
(G) “FUND” MEANS THE MARYLAND ALCOHOL MANUFACTURING
PROMOTION FUND.
(H) “GROWER” MEANS A PERSON WHO :
(1) GROWS GRAPES , HOPS, FRUIT, HONEY, OR GRAIN TO BE INCLU DED
IN MANUFACTURED ALCO HOL IN THE STATE; AND
(2) PRODUCES AT LEAST $10,000 WORTH OF THESE PRODU CTS EACH
YEAR.
(I) “VITICULTURE” MEANS THE CULTIVATIO N AND STUDY OF GRAPE S AND
GRAPE VINES.
(J) “WINE” HAS THE MEANING STAT ED IN § 1–101 OF THE ALCOHOLIC
BEVERAGES ARTICLE. LAWRENCE J. HOGAN, JR., Governor Ch. 461
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(K) “WINERY” MEANS AN ESTABLISHME NT OPERATED UND ER A CLASS 3
WINERY LICENSE OR CLASS 4 LIMITED WINERY LICEN SE.
5–1902.
THERE IS AN ADVISORY COMMISSION ON MARYLAND ALCOHOL
MANUFACTURING IN THE DEPARTMENT .
5–1903.
(A) (1) THE ADVISORY COMMISSION CONSISTS O F THE FOLLOWING
MEMBERS:
(1) (I) THE SECRETARY OR THE SECRETARY’S DESIGNEE;
(2) (II) THE SECRETARY OF AGRICULTURE , OR THE SECRETARY’S
DESIGNEE;
(III) THE SPECIAL SECRETARY OF THE GOVERNOR’S OFFICE OF
SMALL, MINORITY, AND WOMEN BUSINESS AFFAIRS, OR THE SPECIAL SECRETARY’S
DESIGNEE;
(3) (IV) ONE MEMBER OF THE ALCOHOL AND TOBACCO
COMMISSION, DESIGNATED BY THE CH AIR OF THE ALCOHOL AND TOBACCO
COMMISSION;
(4) (V) ONE MEMBER OF THE SENATE OF MARYLAND, APPOINTED
BY THE PRESIDENT OF THE SENATE;
(4) (5) (VI) ONE MEMBER OF THE HOUSE OF DELEGATES,
APPOINTED BY THE SPEAKER OF THE HOUSE; AND
(5) (6) (VII) THE FOLLOWING MEMBER S APPOINTED BY THE
GOVERNOR:
(I) 1. ONE MEMBER REPRESENT ING THE UNIVERSITY OF
MARYLAND COLLEGE OF AGRICULTURE AND NATURAL RESOURCES;
(II) 2. TWO MEMBERS REPRESENTING BREWERI ES IN THE
STATE;
(III) 3. TWO MEMBERS REPRESEN TING DISTILLERIES IN THE
STATE; Ch. 461 2022 LAWS OF MARYLAND
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(IV) 4. TWO MEMBERS REPRESEN TING WINERIES IN THE
STATE; AND
(V) 5. TWO MEMBERS REPRESEN TING GROWERS IN THE
STATE.
(2) TO THE EXTENT PRACTICABLE, THE MEMBERS OF THE
COMMISSION SHALL REAS ONABLY REFLECT THE G EOGRAPHIC, RACIAL, ETHNIC,
CULTURAL, AND GENDER DIVERSITY OF THE STATE.
(B) BEFORE TAKING OFFICE , EACH MEMBER OF THE ADVISORY
COMMISSION SHALL TAKE THE OATH REQUIRED BY ARTICLE I, § 9 OF THE
MARYLAND CONSTITUTION.
(C) (1) THE TERM OF A MEMBER IS 3 YEARS.
(2) THE TERMS OF MEMBERS ARE STAGGERED AS REQ UIRED BY THE
TERMS PROVIDED FOR M EMBERS OF THE ADVISORY COMMISSION ON JULY 1, 2022.
(3) AT THE END OF A TERM , A MEMBER CONTINUES TO SERVE UNTIL
A SUCCESSOR IS APPOI NTED AND QUALIFIES .
(4) A MEMBER WHO IS APPOIN TED AFTER A TERM HAS BEGUN SERVES
ONLY FOR THE REST OF THE TERM AND UNTIL A SUCCESSOR IS APPOINT ED AND
QUALIFIES.
(5) A MEMBER MAY NOT BE AP POINTED FOR MORE THA N TWO
CONSECUTIVE FULL TERMS .
(D) THE GOVERNOR MAY REMOVE A MEMBER FOR INCOMPETE NCE OR
MISCONDUCT .
5–1904.
(A) THE GOVERNOR SHALL DESIGN ATE THE CHAIR OF THE ADVISORY
COMMISSION.
(B) FROM AMONG ITS MEMBER S, THE ADVISORY COMMISSION EACH YEAR
SHALL ELECT A VIC E CHAIR.
(C) THE ADVISORY COMMISSION SHALL DETE RMINE THE MANNER OF
ELECTION OF THE VICE CHAIR AND ANY OTHER OFFICERS.
LAWRENCE J. HOGAN, JR., Governor Ch. 461
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5–1905.
(A) THE ADVISORY COMMISSION SHALL DETE RMINE THE TIMES AND
PLACES OF ITS REGULA R AND SPECIAL MEETIN GS.
(B) THE CHAIR OF THE ADVISORY COMMISSION:
(1) MAY CALL A SPECIAL M EETING AT ANY TIME ; AND
(2) SHALL CALL A SPECIAL MEETING WHEN REQUEST ED BY TWO OR
MORE MEMBERS OF THE ADVISORY COMMISSION.
(C) A MAJORITY OF THE MEMB ERS THEN SERVING ON THE ADVISORY
COMMISSION IS A QUORU M.
5–1906.
A MEMBER OF THE ADVISORY COMMISSION:
(1) MAY NOT RECEIVE COMP ENSATION AS A MEMBER OF THE
ADVISORY COMMISSION; BUT
(2) IS ENTITLED TO REIMB URSEMENT FOR EXPENSE S UNDER THE
STANDARD STATE TRAVEL REGULATIONS, AS PROVIDED IN THE STATE BUDGE T.
5–1907.
THE DEPARTMENT SHALL PROV IDE STAFF FOR THE ADVISORY COMMISSION.
5–1908.
THE ADVISORY COMMISSION SHALL :
(1) ADVISE AND RECOMMEND TO THE SECRETARY FOR APPROVA L
THE ALLOCATION OF MO NEY FROM THE MARYLAND ALCOHOL MANUFACTURING
PROMOTION FUND TO ELIGIBLE APPLICAN TS FOR PROGRAMS CONS IDERED
NECESSARY OR ADVISAB LE TO ACCOMPLISH THE PURPOSES OF THIS SUB TITLE;
(2) PROVIDE A FORUM TO A DDRESS THE ISSUES TH AT ARE RELEVANT
TO THE GROWTH OF THE MARYLAND ALCOHOL MANU FACTURING INDUSTRY ; AND
(3) IDENTIFY STRATEGIES TO F ACILITATE GROWTH OF VITICULTURE
AND OTHER PRODUCTS U SED IN MANUFACTURED ALCOHOL SUCH AS HOPS , FRUIT,
HONEY, AND GRAIN. Ch. 461 2022 LAWS OF MARYLAND
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5–1909.
(A) THERE IS A MARYLAND ALCOHOL MANUFACTURING PROMOTION
FUND.
(B) THE PURPOSE OF THE FUND IS TO PROVIDE GRANTS THAT PROMOTE
THE ADVANTAGES AND A TTRIBUTES OF STATE BREWERIES , DISTILLERIES, AND
WINERIES AND THEIR P RODUCTS MANUFACTURED IN THE STATE.
(C) THE SECRETARY SHALL ADMIN ISTER THE FUND.
(D) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT
SUBJECT TO REVERSION UNDE R § 7–302 OF THE STATE FINANCE AND
PROCUREMENT ARTICLE.
(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY ,
AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND.
(E) THE FUND CONSISTS OF :
(1) REVENUE DISTRIBUTED TO THE FUND UNDER § 2–301(B) OF THE
TAX – GENERAL ARTICLE;
(2) MONEY APPROPRIATED I N THE STATE BUDGET TO THE FUND; AND
(3) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR
THE BENEFIT OF THE FUND.
(F) THE FUND MAY BE USED ONLY FOR:
(1) GRANTS TO ELIGIBLE APPLICANTS UNDER § 5–1910 OF THIS
SUBTITLE; AND
(2) ADMINISTRATIVE EXPEN SES OF THE FUND.
(G) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND
IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED.
(2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITED TO
THE GENERAL FUND OF THE STATE.
(H) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE
WITH THE STATE BUDGET . LAWRENCE J. HOGAN, JR., Governor Ch. 461
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5–1910.
(A) AN APPLICANT FOR A GR ANT FROM THE FUND SHALL SUBMIT AN
APPLICATION TO THE ADVISORY COMMISSION ON THE FORM THAT THE SECRETARY
REQUIRES.
(B) TO BE ELIGIBLE TO REC EIVE A GRANT FROM TH E FUND, AN APPLICANT
MUST BE:
(1) A NONPROFIT ORGANIZA TION UNDER § 501(C)(3) § 501(C) §
501(C)(3) OR (6) OF THE INTERNAL REVENUE CODE; OR
(2) A STATE OR LOCAL GOVERN MENTAL UNIT.
(C) THE SECRETARY SHALL AWARD GRANTS TO ELIGIBLE A PPLICANTS
FROM THE FUND BASED ON THE ADV ICE OF THE ADVISORY COMMISSION.
(D) SUBJECT TO THE AVAILA BILITY OF MONEY IN T HE FUND, THE
SECRETARY MAY AWARD G RANTS TO ELIGIBLE AP PLICANTS TO:
(1) FOSTER THE CREATION AND EXPANSION OF STATE BREWERIES ,
DISTILLERIES, AND WINERIES;
(2) ATTRACT NEW VISITORS TO STATE BREWERIES , DISTILLERIES,
AND WINERIES;
(3) ENCOURAGE AND CREATE INCENTIVES FOR SPECI AL EVENTS TO
PROMOTE STATE BREWERIES , DISTILLERIES, AND WINERIES;
(4) EDUCATE THE PUBLIC A BOUT ALCOHOL MANUFAC TURING IN THE
STATE, ESPECIALLY THE HISTO RY OF THE INDUSTRY ;
(5) CONDUCT RESEARCH ON , DEVELOP INCENTIVES F OR, AND
PROMOTE THE GROWTH O F STATE AGRICULTURAL PR ODUCTS USED IN STATE
MANUFACTURED BEER, WINE, AND SPIRITS; OR
(6) SUPPORT THE EXPANSIO N OF MINORITY OWNERS HIP AND
PARTICIPATION IN THE OPERATION OF STATE BREWERIES , DISTILLERIES, AND
WINERIES.
(E) AN ELIGIBLE APPLICANT MAY NOT USE A GRANT PROVIDED UNDER THIS
SUBTITLE TO:
Ch. 461 2022 LAWS OF MARYLAND
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(1) SATISFY ANY PART OF A MAT CHING FUND REQUIREME NT OF
ANOTHER STATE GRANT PROVIDED TO THE ELIGIBLE APPL ICANT; OR
(2) PAY FOR ACTIVITIES R ELATED TO LOBBYING , AS DEFINED IN
TITLE 5 OF THE GENERAL PROVISIONS ARTICLE.
5–1911.
THE ADVISORY COMMISSION SHALL ISSU E A REPORT EACH YEAR TO THE
GOVERNOR AND, IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT
ARTICLE, THE SENATE EDUCATION, HEALTH, AND ENVIRONMENTAL AFFAIRS
COMMITTEE AND THE HOUSE ECONOMIC MATTERS COMMITTEE ON THE ADVISORY
COMMISSION’S FINDINGS AND RECOM MENDATIONS .
5–1912.
THE SECRETARY MAY ADOPT R EGULATIONS TO CARRY OUT THIS SUBTITLE .
Article – Tax – General
2–301.
(a) From the alcoholic beverage tax revenue, the Comptroller shall distribute the
amount necessary to administer the alcoholic beverage tax laws to an administrative cost
account.
(b) AFTER MAKING THE DIST RIBUTION REQUIRED UN DER SUBSECTION (A)
OF THIS SECTION , THE COMPTROLLER SHALL DIS TRIBUTE TO THE MARYLAND
ALCOHOL MANUFACTURING PROMOTION FUND UNDER § 5–1909 OF THE
ECONOMIC DEVELOPMENT ARTICLE THE ALCOHOLIC BEVERAGE TAX REVENUE
COLLECTED UNDER § 5–105 OF THIS ARTICLE ON :
(1) BEER PRODUCED BY HOL DERS OF A CLASS 5 BREWERY LICENSE ,
CLASS 6 PUB–BREWERY LICENSE , CLASS 7 MICRO–BREWERY LICENSE , OR CLASS 8
FARM BREWERY LICENSE ;
(2) WINE PRODUCED BY HOL DERS OF A CLASS 3 WINERY LICENSE OR
CLASS 4 LIMITED WINERY LICEN SE; AND
(3) DISTILLED SPIRITS PR ODUCED BY HOLDERS OF A CLASS 1
DISTILLERY LICENSE O R CLASS 9 LIMITED DISTILLERY L ICENSE.
LAWRENCE J. HOGAN, JR., Governor Ch. 461
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(C) After making the [distribution] DISTRIBUTIONS required under [subsection
(a)] SUBSECTIONS (A) AND (B) of this section, the Comptroller shall distribute the
remaining alcoholic beverage tax revenue to the General Fund of the State.
5–105.
(a) Except as provided in subsection (d) of this section, the alcoholic beverage tax
rate for distilled spirits is:
(1) $1.50 for each gallon or 39.63 cents for each liter; and
(2) if distilled spirits contain a percentage of alcohol greater than 100 proof,
an additional tax, for each 1 proof over 100 proof, of 1.5 cents for each gallon or 0.3963 cents
for each liter.
(b) Except as provided in subsection (d) of this section, the alcoholic beverage tax
rate for wine is 40 cents for each gallon or 10.57 cents for each liter.
(c) Except as provided in subsection (d) of this section, the alcoholic beverage tax
rate on beer and mead is 9 cents for each gallon or 2.3778 cents for each liter.
(d) The tax imposed under § 5–102(b) of this subtitle shall equal the amount that
the discriminating jurisdiction charges a Maryland licensee or permit holder.
[(e) The revenue generated from the tax imposed under subsection (b) of this
section on wine produced at wineries licensed under the Alcoholic Beverages Article shall
be distributed to the Maryland Wine and Grape Promotion Fund under § 2–1102 of the
Agriculture Article.]
SECTION 3. AND BE IT FURTHER ENACTED, That all funds in the Maryland
Wine and Grape Promotion Fund at the end of June 30, 2022, shall be transferred to the
Maryland Alcohol Manufacturing Promotion Fund established under Section 2 of this Act.
SECTION 4. AND BE IT FURTHER ENACTED, That:
(a) The Advisory Commission on Maryland Alcohol Manufacturing established
under Section 2 of this Act is the successor of the Advisory Commission on Maryland Wine
and Grape Growing.
(b) In every law, executive order, rule, regulation, policy, or document created by
an official, an employee, or a unit of this State, the names and titles of those agencies and
officials mean the names and titles of the successor agency or official.
SECTION 5. AND BE IT FURTHER ENACTED, That any transaction or
employment status affected by or flowing from any change of nomenclature or any statute
amended by this Act and validly entered into or existing before the effective date of this Act Ch. 461 2022 LAWS OF MARYLAND
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and every right, duty, or interest flowing from a statute amended by this Act remains valid
after the effective date of this Act and may be terminated, completed, consummated, or
enforced as required or allowed by any statute amended by this Act as though the
amendment had not occurred. If a change in nomenclature involves a change in name or
designation of any State unit, the successor unit shall be considered in all respects as
having the powers and obligations granted the former unit.
SECTION 6. AND BE IT FURTHER ENACTED, That:
(1) the continuity of every board, commission, office, department, agency,
or other unit is retained; and
(2) the personnel, records, files, furniture, fixtures, and other properties
and all appropriations, credits, assets, liabilities, and obligations of each retained unit are
continued as the personnel, records, files, furniture, fixtures, properties, appropriations,
credits, assets, liabilities, and obligations of the unit under the laws enacted by this Act.
SECTION 7. AND BE IT FURTHER ENACTED, That the initial terms of the
members appointed to the Advisory Commission on Maryland Alcohol Manufacturing
under § 5–1903(a)(5) § 5–1903(a)(6) § 5–1903(a)(1)(vii) of the Economic Development
Article, as enacted by Section 2 of this Act, shall terminate as follows:
(1) three members on June 30, 2024;
(2) three members on June 30, 2025; and
(3) three members on June 30, 2026.
SECTION 8. AND BE IT FURTHER ENACTED, That this Act shall take effect July
1, 2022.
Approved by the Governor, May 16, 2022.