EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb1165*
HOUSE BILL 1165
A1, C2 3lr0346
By: Delegate Wilson
Introduced and read first time: February 10, 2023
Assigned to: Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Alcohol and Tobacco Commission – Technical Corrections and Clarifications 2
FOR the purpose of correcting certain references to the Comptroller of Maryland to be the 3
Executive Director of the Alcohol and Tobacco Commission; clarifying certain powers 4
and duties of the Executive Director of the Commission relating to alcoholic 5
beverages regulation and enforcement; and generally relating to the Alcohol and 6
Tobacco Commission. 7
BY repealing and reenacting, without amendments, 8
Article – Alcoholic Beverages 9
Section 1–101(a), 1–313(b)(2)(iii), 9–102, 11–102, 12–102, 15–102, 16–102, 19–102, 10
20–102, 21–102, 23–102, 24–102, 25–102, 30–102, 31–102, 32–102, and 11
33–102 12
Annotated Code of Maryland 13
(2016 Volume and 2022 Supplement) 14
BY repealing and reenacting, with amendments, 15
Article – Alcoholic Beverages 16
Section 1–101(ff), 1–313(b)(2)(ii)4., 1–314, 1–404, 1–406(c), 1–409(a), 1–410(a) and 17
(b), 2–102, 2–103, 2–106, 2–111(b) and (d), 2–113(c), 2–114(c), 2–115(b) and 18
(e), 2–116(b) and (g), 2–118(c), 2–119(c), 2–124(b) and (c), 2–125(b) through 19
(d), 2–130(b) and (g) through (i), 2–131(a), (c), (f), and (g), 2–132(b) and (c)(2), 20
2–132.1(b) and (c)(2), 2–132.2(b), (f), and (g), 2–133(b), (e)(6), (g), and (i), 21
2–135(b) and (d), 2–136(b)(1), 2–137(c) and (l), 2–138(d) and (f), 2–139(b), 22
2–140(a), (b), and (c)(3), 2–143, 2–145, 2–148(a)(2), (6), and (7), 2–149(a)(2) 23
and (4) and (b), 2–151(g) and (h), 2–152(a), 2–158(b), 2–164(e)(2), 2–201, 24
2–202(g) and (k), 2–203(g), 2–204(f) and (i), 2–205(d), 2–206(b)(3)(ii) and (9), 25
(d), (f), and (h), 2–207(e) and (i)(1), 2–208(e) and (i), 2–209(i) and (j), 26
2–210(c)(2) and (6), (i)(2), (j), and (k), 2–213, 2–219(b)(4) and (c), 2–301, 27
2–302(d), 2–303(d), 2–304(d), 2–305(d), 2–306(d), 2–307(e), 2–308(e), 28
2–308.1(e), 2–312(a), 2–401, 2–402(a), 2–404(b), 2–405(a), 2–406(a), 2–407(a) 29 2 HOUSE BILL 1165
and (d)(1)(vi), 2–408(b), 2–502(a), 2–506(b), 3–101, 3–107, 3–108(b)(6), 1
3–201(a), 3–202 through 3–205, 3–206(a), 3–207(b)(2), 3–301(b)(4), 3–302 2
through 3–304, 3–401, 3–402, 3–404(b), 3–405(b), 3–406, 3–407(a) and (c), 3
3–504(c) and (g), 3–601, 3–602(a) and (c), 3–603, 3–604(a)(1), 3–605(a), 4
3–606(c), 3–701(b), 3–703, 3–704(a), 3–802, 3–803(a), 3–901, 4–108, 4–109(b), 5
4–206(c), 4–505(c) and (g), 4–1104(d)(2) and (3), 4–1105(d)(2) and (3), 6
4–1202(b), 5–303(b), 6–101(c)(2), 6–103, 6–104, 6–105(b), 6–107(a) and (b), 7
6–108(b), 6–202(a), 6–203, 6–204(a), 6–205(b), 6–308(a)(3), 6–319(a)(3), 8
6–328(a)(4), 9–1403, 11–206(a), 11–207, 11–1406, 11–2102(a), 12–403(c)(2) 9
and (3), 15–1001(i), 15–1309(c)(2) and (d), 16–405(b)(4), 19–403(d), 19–404(c), 10
20–1009(b), 21–1311(c) and (d), 23–403(b), 23–902(f), 24–1310(c) and (d), 11
25–314(a)(3) and (b), 25–405(c) and (e)(2) and (3), 30–403(b), 30–404(b), 12
31–404(c), 31–1007(h), 32–311(a), 32–312(a)(3) and (b), 32–403(b) and (c), 13
32–405(a), 32–1001(i), 33–309(a), and 33–504(b)(1) and (4) and (d) 14
Annotated Code of Maryland 15
(2016 Volume and 2022 Supplement) 16
BY repealing and reenacting, with amendments, 17
Article – Business Regulation 18
Section 16–308.2, 17–101, 17–202, and 17–2104 19
Annotated Code of Maryland 20
(2015 Replacement Volume and 2022 Supplement) 21
BY repealing and reenacting, with amendments, 22
Article – Commercial Law 23
Section 11–501, 11–506 through 11–508, 11–5A–01, and 11–5A–03 24
Annotated Code of Maryland 25
(2013 Replacement Volume and 2022 Supplement) 26
BY repealing and reenacting, with amendments, 27
Article – Courts and Judicial Proceedings 28
Section 5–523 29
Annotated Code of Maryland 30
(2020 Replacement Volume and 2022 Supplement) 31
BY repealing and reenacting, with amendments, 32
Article – Criminal Law 33
Section 10–107(b)(2) and 10–108(a) 34
Annotated Code of Maryland 35
(2021 Replacement Volume and 2022 Supplement) 36
BY repealing and reenacting, with amendments, 37
Article – Health – General 38
Section 18–213(a)(5) and 24–307(b), (c), and (f)(1) 39
Annotated Code of Maryland 40
(2019 Replacement Volume and 2022 Supplement) 41
HOUSE BILL 1165 3
BY repealing and reenacting, without amendments, 1
Article – Tax – General 2
Section 1–101(a) and 5–101(a) 3
Annotated Code of Maryland 4
(2022 Replacement Volume) 5
BY adding to 6
Article – Tax – General 7
Section 1–101(g–2) 8
Annotated Code of Maryland 9
(2022 Replacement Volume) 10
BY repealing and reenacting, with amendments, 11
Article – Tax – General 12
Section 1–205(b), 2–102(b), 2–103, 2–105(b) and (c), 2–107(e), 2–108, 2–303, 13
5–101(n) and (o), 12–203(b), 12–204, 13–710, 13–835(a), 13–836(a)(1) and 14
(b)(1) and (2), 13–837, 13–838(b)(3), 13–839, and 13–841(a), (b), and (d) 15
Annotated Code of Maryland 16
(2022 Replacement Volume) 17
BY repealing 18
Article – Tax – General 19
Section 5–101(m) and 13–1011 20
Annotated Code of Maryland 21
(2022 Replacement Volume) 22
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 23
That the Laws of Maryland read as follows: 24
Article – Alcoholic Beverages 25
1–101. 26
(a) In this article the following words have the meanings indicated. 27
(ff) “Tobacco” includes cigarettes regulated under Title 16 of the Business 28
Regulation Article and other tobacco and related products regulated under Titles 16.5 29
[and], 16.7, OR 16.9 of the Business Regulation Article. 30
1–313. 31
(b) (2) The officers and employees of the Field Enforcement Division: 32
(ii) shall have the powers, duties, and responsibilities of peace 33
officers to enforce the provisions of this article relating to: 34
4 HOUSE BILL 1165
4. the manufacture, sale, barter, transportation, 1
distribution, or other form of owning, handling, or dispersing alcoholic beverages or tobacco 2
by any person not licensed or authorized under this article, provisions of the Tax – General 3
Article relating to alcoholic beverages or tobacco, or provisions of the Business Regulation 4
Article relating to ALCOHOLIC BEVERAGES OR tobacco; and 5
(iii) may make cooperative arrangements for and work and cooperate 6
with the Office of the Comptroller, local State’s Attorneys, sheriffs, bailiffs, police, and other 7
prosecuting and peace officers to enforce this article. 8
1–314. 9
The Executive Director may delegate authority under this article, provisions of the 10
Tax – General Article relating to alcoholic beverages and tobacco, and provisions of the 11
Business Regulation Article relating to tobacco to the Division director OR A DESIGNEE to 12
issue or refuse to issue licenses and permits. 13
1–404. 14
Before a license or alcoholic beverages permit may be issued to an employer to engage 15
in an activity in which the employer may employ a covered employee, as defined in § 9–101 16
of the Labor and Employment Article, the employer shall file with the [Comptroller] 17
EXECUTIVE DIRECTOR or local licensing board: 18
(1) a certificate of compliance with the Maryland Workers’ Compensation 19
Act; or 20
(2) the number of a workers’ compensation insurance policy or binder. 21
1–406. 22
(c) The [Comptroller] EXECUTIVE DIRECTOR may adopt regulations covering 23
warehouse receipt transactions. 24
1–409. 25
(a) A local licensing board shall: 26
(1) maintain a record of: 27
(i) each license that the local licensing board issues; and 28
(ii) any revocation, suspension, or cancellation of a license and any 29
restriction imposed on a license with a brief explanation of the reason for the action; and 30
(2) submit the record to the [Comptroller] EXECUTIVE DIRECTOR; and 31 HOUSE BILL 1165 5
(3) allow any individual to inspect the records at the office of the local 1
licensing board during regular business hours. 2
1–410. 3
(a) (1) On written request of the [Comptroller] EXECUTIVE DIRECTOR, each 4
person, including a common carrier, that transports alcoholic beverages in the State in 5
interstate or intrastate commerce shall report all consignments or deliveries of alcoholic 6
beverages for the period that the [Comptroller] EXECUTIVE DIRECTOR specifies. 7
(2) The reports shall be under oath and on the form that the [Comptroller] 8
EXECUTIVE DIRECTOR requires. 9
(b) If required by the [Comptroller] EXECUTIVE DIRECTOR, the reports shall 10
state: 11
(1) the name and address of the person to whom the delivery has been 12
made; 13
(2) the name and address of the original consignee, if alcoholic beverages 14
have been delivered to any person other than the originally named consignee; 15
(3) the point of origin; 16
(4) the point of delivery; 17
(5) the date of delivery; 18
(6) (i) the number and initials of each car, if the alcoholic beverages are 19
shipped by rail; 20
(ii) the name of the water vessel, if the alcoholic beverages are 21
shipped by water; 22
(iii) the license number of each truck, if the alcoholic beverages are 23
shipped by truck; or 24
(iv) the manner in which the delivery was made, if the delivery is by 25
other means; 26
(7) each kind of alcoholic beverages contained in the shipment and the 27
number of gallons of each kind; and 28
(8) any other information relative to shipments that the [Comptroller] 29
EXECUTIVE DIRECTOR requires. 30 6 HOUSE BILL 1165
2–102. 1
(a) A person shall apply to the [Comptroller] EXECUTIVE DIRECTOR for a 2
permit under this subtitle on the form the [Comptroller] EXECUTIVE DIRECTOR provides. 3
(b) The [Comptroller] EXECUTIVE DIRECTOR shall adopt regulations for 4
permits under this subtitle regarding: 5
(1) the procedure for issuing permits; 6
(2) the purchase of alcoholic beverages; and 7
(3) the exercise of the privileges granted under each type of permit. 8
2–103. 9
(a) On receipt of an application, the [Comptroller] EXECUTIVE DIRECTOR shall 10
order an investigation of: 11
(1) the applicant; 12
(2) the business to be operated; and 13
(3) the statements presented in the permit application. 14
(b) On completion of the investigation, the [Comptroller] EXECUTIVE 15
DIRECTOR shall deny the permit application if in the judgment of the [Comptroller] 16
EXECUTIVE DIRECTOR: 17
(1) the applicant: 18
(i) is not fit to receive the permit; 19
(ii) made a material false statement in the application; or 20
(iii) committed fraud in connection with the application; or 21
(2) there are other reasons that the permit should not be issued. 22
(c) If the [Comptroller] EXECUTIVE DIRECTOR does not find cause to deny the 23
permit, the [Comptroller] EXECUTIVE DIRECTOR shall approve the application and issue 24
the permit. 25
2–106. 26
HOUSE BILL 1165 7
The [Comptroller] EXECUTIVE DIRECTOR may restrict, suspend, or revoke a 1
permit issued under this subtitle. 2
2–111. 3
(b) The [Comptroller] EXECUTIVE DIRECTOR may issue the permit to a person: 4
(1) whose alcoholic beverage license has expired or otherwise been 5
discontinued; and 6
(2) who applies for a permit within 60 days after the last day on which the 7
license was effective. 8
(d) (1) The permit: 9
(i) covers only a specific transaction; and 10
(ii) expires 10 days after it is issued. 11
(2) If the permit holder shows an undue burden, the [Comptroller] 12
EXECUTIVE DIRECTOR may grant a reasonable extension of the permit. 13
2–113. 14
(c) In Anne Arundel County, a retailer is required to have written approval from 15
the Board of License Commissioners before applying to the [Comptroller] EXECUTIVE 16
DIRECTOR for the permit. 17
2–114. 18
(c) (1) The [Comptroller] EXECUTIVE DIRECTOR shall provide a means of 19
identification for each vehicle authorized under the permit. 20
(2) The identification shall be kept in or on the vehicle at all times when 21
the vehicle transports alcoholic beverages. 22
2–115. 23
(b) The [Comptroller] EXECUTIVE DIRECTOR may issue the permit to a 24
nonresident dealer permit holder. 25
(e) (1) Each month the permit holder shall file a report of its storage and 26
shipping activities with the [Comptroller] EXECUTIVE DIRECTOR. 27
(2) The report shall be filed in the manner and on the form that the 28
[Comptroller] EXECUTIVE DIRECTOR provides. 29 8 HOUSE BILL 1165
2–116. 1
(b) The [Comptroller] EXECUTIVE DIRECTOR may issue the permit to an 2
individual who: 3
(1) is at least 21 years old; 4
(2) is a resident of the State; 5
(3) files with the [Comptroller] EXECUTIVE DIRECTOR an inventory of 6
all alcoholic beverages to be sold; and 7
(4) certifies that all alcoholic beverages to be sold: 8
(i) have been acquired legally and transported into the State in 9
accordance with this article; and 10
(ii) are owned by the individual at the time of application. 11
(g) The [Comptroller] EXECUTIVE DIRECTOR may adopt regulations regarding 12
any activity relating to the permit, including record–keeping and reporting requirements. 13
2–118. 14
(c) (1) The [Comptroller] EXECUTIVE DIRECTOR shall provide a means of 15
identification for each vehicle authorized under the permit. 16
(2) The identification shall be kept in or on the vehicle at all times when 17
the vehicle transports alcoholic beverages. 18
2–119. 19
(c) (1) The [Comptroller] EXECUTIVE DIRECTOR shall provide a means of 20
identification for each vehicle authorized under the permit. 21
(2) The identification shall be kept in or on the vehicle at all times when 22
the vehicle transports alcoholic beverages. 23
2–124. 24
(b) The [Comptroller] EXECUTIVE DIRECTOR may issue the permit to: 25
(1) a bottler, brewer, distiller, manufacturer, rectifier, vintner, or winery; 26
HOUSE BILL 1165 9
(2) a sales agent of a person described in item (1) of this subsection, on 1
presentation of proof of the sales agency relationship to the [Comptroller] EXECUTIVE 2
DIRECTOR; 3
(3) an importer of beer, wine, or distilled spirits produced outside the 4
United States that purchases directly from the brand owner or from a sales agent of a 5
person described in item (1) of this subsection that: 6
(i) is authorized by the brand owner to sell in the State; and 7
(ii) provides proof of the sales agency relationship to the 8
[Comptroller] EXECUTIVE DIRECTOR; or 9
(4) an American sales agent of an importer described in item (3) of this 10
subsection, on presentation of proof of the sales agency relationship to the [Comptroller] 11
EXECUTIVE DIRECTOR. 12
(c) The [Comptroller] EXECUTIVE DIRECTOR may not issue the permit to a 13
person that: 14
(1) is a holder of a wholesaler’s license or retail license; 15
(2) has an interest in a wholesaler licensed under this article; or 16
(3) has an interest in any retail license holder. 17
2–125. 18
(b) (1) Subject to paragraph (2) of this subsection, the [Comptroller] 19
EXECUTIVE DIRECTOR may issue the permit to: 20
(i) an importer of beer, wine, or distilled spirits produced outside the 21
United States that: 22
1. purchases directly from the brand owner or from a sales 23
agent of a bottler, brewer, distiller, manufacturer, rectifier, vintner, or winery; 24
2. is authorized by the brand owner to sell in the State; and 25
3. provides proof of the sales agency relationship to the 26
[Comptroller] EXECUTIVE DIRECTOR; or 27
(ii) an American sales agent of an importer under item (i) of this 28
paragraph, on presentation of proof of the sales agency relationship to the [Comptroller] 29
EXECUTIVE DIRECTOR. 30
10 HOUSE BILL 1165
(2) An individual applicant, an applicant qualifying as a resident applicant 1
for a corporation, or each applicant for a partnership is not eligible for the permit unless 2
the individual is a resident of the State at the time the application is filed and remains a 3
resident for the duration of time the permit is in effect. 4
(c) The [Comptroller] EXECUTIVE DIRECTOR may not issue the permit to a 5
person that: 6
(1) is a holder of a wholesaler’s license or retail license; 7
(2) has an interest in a wholesaler licensed under this article; or 8
(3) has an interest in any retail license holder. 9
(d) The permit authorizes the holder to sell alcoholic beverages to: 10
(1) a holder of a wholesaler’s license; or 11
(2) a person outside the State that the [Comptroller] EXECUTIVE 12
DIRECTOR authorizes to acquire the alcoholic beverages. 13
2–130. 14
(b) The [Commission] EXECUTIVE DIRECTOR may issue the permit to a holder 15
of any of the following licenses who meets the requirements of this section: 16
(1) Class 1 distillery license; 17
(2) Class 3 winery license; 18
(3) Class 4 limited winery license; 19
(4) Class 5 brewery license; 20
(5) Class 7 micro–brewery license; 21
(6) Class 8 farm brewery license; or 22
(7) Class 9 limited distillery license. 23
(g) An applicant for a permit shall complete an application on a form that the 24
[Commission] EXECUTIVE DIRECTOR authorizes. 25
(h) The permit holder shall notify the [Commission] EXECUTIVE DIRECTOR of 26
the permit holder’s intention to attend an event within a period of time that the 27 HOUSE BILL 1165 11
[Commission] EXECUTIVE DIRECTOR determines on the form that the [Commission] 1
EXECUTIVE DIRECTOR authorizes. 2
(i) The [Commission] EXECUTIVE DIRECTOR may adopt regulations to require 3
the permit holder to notify the local licensing board of the jurisdiction where the event is 4
being held of the permit holder’s intention to attend the event. 5
2–131. 6
(a) In this section, “off–site permit” includes: 7
(1) a [brewing company] MANUFACTURER off–site permit; AND 8
(2) [a distillery off–site permit; 9
(3)] a retail off–site permit[; and 10
(4) a winery off–site permit]. 11
(c) The [Comptroller] EXECUTIVE DIRECTOR may issue the permit to a 12
nonprofit organization, as defined by § 501(c) of the Internal Revenue Code, that meets the 13
requirements of this section. 14
(f) (1) Not less than 30 days before the nonprofit beer, wine, and liquor 15
festival, a person shall submit an application to the [Comptroller] EXECUTIVE 16
DIRECTOR. 17
(2) The application shall: 18
(i) be on a form that the [Comptroller] EXECUTIVE DIRECTOR 19
provides; 20
(ii) state that the primary purpose of the nonprofit beer, wine, and 21
liquor festival is to promote Maryland beer, wine, and liquor; 22
(iii) provide details of the nonprofit beer, wine, and liquor festival, 23
including the location, dates, and times of operation; and 24
(iv) include appropriate evidence that the applicant has been given 25
permission by the owner of the property where the nonprofit beer, wine, and liquor festival 26
is to be held. 27
(g) Not less than 15 days before the nonprofit beer, wine, and liquor festival, the 28
permit holder shall provide the [Comptroller] EXECUTIVE DIRECTOR with a list of 29
off–site permit holders that will attend. 30
12 HOUSE BILL 1165
2–132. 1
(b) The [Comptroller] EXECUTIVE DIRECTOR may issue the permit to a person 2
that: 3
(1) is licensed outside the State to engage in the manufacture of beer; 4
(2) produces in the aggregate from all of its locations not more than 22,500 5
barrels of beer annually; and 6
(3) does not hold a nonresident dealer’s permit. 7
(c) (2) The permit holder shall comply with all the requirements of this article, 8
the Tax – General Article, and the regulations of the Comptroller OR EXECUTIVE 9
DIRECTOR that apply to a holder of a Class 7 limited beer wholesaler’s license. 10
2–132.1. 11
(b) The [Comptroller] EXECUTIVE DIRECTOR may issue the permit to a person 12
that: 13
(1) is licensed outside the State to engage in the manufacture of liquor; 14
(2) produces in the aggregate from all of its locations not more than 100,000 15
gallons of liquor annually; and 16
(3) does not hold a nonresident dealer’s permit. 17
(c) (2) The permit holder shall comply with all the requirements of this article, 18
the Tax – General Article, and the regulations of the Comptroller OR EXECUTIVE 19
DIRECTOR that apply to a holder of a Class 8 limited liquor wholesaler’s license. 20
2–132.2. 21
(b) The [Comptroller] EXECUTIVE DIRECTOR may grant the permit to a holder 22
of a Class 1 distillery license or a Class 9 limited distillery license that meets the 23
requirements of this section. 24
(f) An applicant for a permit shall complete an application on a form that the 25
[Comptroller] EXECUTIVE DIRECTOR provides. 26
(g) (1) (i) The permit holder shall notify the [Comptroller] EXECUTIVE 27
DIRECTOR of the permit holder’s intention to attend an event within a time period that 28
the [Comptroller] EXECUTIVE DIRECTOR determines. 29
HOUSE BILL 1165 13
(ii) The notice shall be on a form that the [Comptroller] EXECUTIVE 1
DIRECTOR provides. 2
(2) The [Comptroller] EXECUTIVE DIRECTOR may adopt regulations to 3
require the permit holder to notify the local licensing board for the jurisdiction where the 4
event is being held of the permit holder’s intention to attend the event. 5
2–133. 6
(b) The [Comptroller] EXECUTIVE DIRECTOR may issue the permit to a Class 4 7
limited winery that meets the requirements of this section. 8
(e) The permit may be used only: 9
(6) at a nonprofit beer, wine, and liquor festival that: 10
(i) has as its primary purpose the promotion of Maryland beer, wine, 11
and liquor; and 12
(ii) is authorized by the [Comptroller] EXECUTIVE DIRECTOR 13
under § 2–131 of this subtitle. 14
(g) (1) (i) The permit holder shall notify the [Comptroller] EXECUTIVE 15
DIRECTOR of the permit holder’s intention to attend an off–site event within a time period 16
that the [Comptroller] EXECUTIVE DIRECTOR determines. 17
(ii) The notice shall be on a form that the [Comptroller] EXECUTIVE 18
DIRECTOR provides. 19
(2) The [Comptroller] EXECUTIVE DIRECTOR may adopt regulations to 20
require the permit holder to notify the board of license commissioners in the county where 21
the event is being held of the permit holder’s intention to attend an off–site event. 22
(i) A person shall submit the application for the permit to the [Comptroller] 23
EXECUTIVE DIRECTOR on a form the [Comptroller] EXECUTIVE DIRECTOR provides. 24
2–135. 25
(b) The [Comptroller] EXECUTIVE DIRECTOR may issue the permit to a person 26
that: 27
(1) is licensed outside the State to engage in the manufacture of wine; 28
(2) produces not more than 27,500 gallons of its own wine annually; and 29
14 HOUSE BILL 1165
(3) does not hold a nonresident dealer’s permit under § 2–124 of this 1
subtitle. 2
(d) The permit holder shall comply with requirements that apply to a holder of a 3
Class 6 limited wine wholesaler’s license under: 4
(1) this article; 5
(2) the Tax – General Article; and 6
(3) the regulations of the Comptroller OR THE EXECUTIVE DIRECTOR. 7
2–136. 8
(b) (1) The [Comptroller] EXECUTIVE DIRECTOR may issue the permit to a 9
holder of a license issued by a local licensing board: 10
(i) that allows the license holder to sell alcoholic beverages to the 11
public for off–premises consumption; and 12
(ii) other than a chain store. 13
2–137. 14
(c) The [Comptroller] EXECUTIVE DIRECTOR may issue the permit to a 15
charitable organization. 16
(l) (1) Wine purchased at a charity wine auction shall be delivered to the 17
purchaser: 18
(i) at the event; or 19
(ii) from a licensed warehouse, licensed retail dealer’s premises, or 20
other premises that the [Comptroller] EXECUTIVE DIRECTOR approves. 21
(2) Wine delivered under this subsection is subject to applicable sales 22
taxes. 23
2–138. 24
(d) The [Comptroller] EXECUTIVE DIRECTOR may restrict the permit holder to 25
the production of family–produced beer or family–produced wine. 26
(f) The [Comptroller] EXECUTIVE DIRECTOR may adopt regulations regarding 27
any activity relating to the operation of the facility, including limits on the quantities of 28
beer and wine produced and record keeping. 29 HOUSE BILL 1165 15
2–139. 1
(b) The [Comptroller] EXECUTIVE DIRECTOR may issue the permit to a bona 2
fide alcohol trade association. 3
2–140. 4
(a) The [Commission] EXECUTIVE DIRECTOR may issue a brewery special 5
event permit to a holder of a Class 5 brewery license or a Class 8 farm brewery license. 6
(b) At least 15 days before holding a special event, the license holder shall obtain 7
a permit from the [Commission] EXECUTIVE DIRECTOR by filing a notice of the special 8
event on the form that the [Commission] EXECUTIVE DIRECTOR provides. 9
(c) The permit authorizes the license holder to conduct at the location listed on 10
the license a special event at which the license holder may: 11
(3) in a segregated area approved by the [Commission] EXECUTIVE 12
DIRECTOR at the location listed on the license, store the products of other Maryland 13
breweries. 14
2–143. 15
A person shall be issued a direct wine shipper’s permit by the [Comptroller] 16
EXECUTIVE DIRECTOR before the person may engage in shipping wine directly to a 17
consumer in the State. 18
2–145. 19
(a) An applicant for a direct wine shipper’s permit shall: 20
(1) submit to the [Comptroller] EXECUTIVE DIRECTOR a completed 21
application on a form that the [Comptroller] EXECUTIVE DIRECTOR provides; 22
(2) provide to the [Comptroller] EXECUTIVE DIRECTOR a copy of the 23
applicant’s current license; 24
(3) identify the wines manufactured by the applicant that the applicant 25
intends to ship into the State; and 26
(4) pay a fee of $200 for initial issuance of the direct wine shipper’s permit. 27
(b) The [Comptroller] EXECUTIVE DIRECTOR shall issue a direct wine shipper’s 28
permit to each applicant who meets the requirements of this part for the permit. 29
16 HOUSE BILL 1165
2–148. 1
(a) A direct wine shipper shall: 2
(2) report to the Comptroller AND THE EXECUTIVE DIRECTOR 3
information about the direct wine shipper’s wine shipments, in a manner that the 4
Comptroller [determines] AND THE EXECUTIVE DIRECTOR DETERMINE ; 5
(6) allow the Comptroller AND THE EXECUTIVE DIRECTOR to perform an 6
audit of the direct wine shipper’s records on request; and 7
(7) consent to the jurisdiction of the Comptroller, THE EXECUTIVE 8
DIRECTOR, or other State unit and the State courts concerning enforcement of this section 9
and any related law. 10
2–149. 11
(a) A direct wine shipper may renew its direct wine shipper’s permit each year if 12
the direct wine shipper: 13
(2) provides to the [Comptroller] EXECUTIVE DIRECTOR a copy of its 14
current permit; 15
(4) pays to the [Comptroller] EXECUTIVE DIRECTOR a renewal fee of 16
$200. 17
(b) The [Comptroller] EXECUTIVE DIRECTOR may deny a renewal application 18
of a direct wine shipper who fails to: 19
(1) file a tax return required under this part; 20
(2) pay a fee or tax when due; or 21
(3) after receiving notice, comply with this article or a regulation that the 22
Comptroller OR EXECUTIVE DIRECTOR adopts [under this article]. 23
2–151. 24
(g) At the time of initial application for a common carrier permit and on request 25
of the [Comptroller] EXECUTIVE DIRECTOR, a common carrier shall submit to the 26
[Comptroller] EXECUTIVE DIRECTOR information concerning the training of its drivers 27
in verifying the age of recipients of direct wine shipments under this part. 28
(h) At least once each year, in a manner acceptable to the [Comptroller] 29
EXECUTIVE DIRECTOR, a holder of a common carrier permit shall verify that the shipper 30
of wine into the State under this part holds a valid direct wine shipper’s permit. 31 HOUSE BILL 1165 17
2–152. 1
(a) A common carrier shall report quarterly to the [Comptroller] EXECUTIVE 2
DIRECTOR: 3
(1) the date of each delivery of wine in the State; and 4
(2) the name and address of the direct wine shipper and the receiving 5
consumer of each delivery. 6
2–158. 7
(b) The permit authorizes the holder to conduct an alcohol awareness program as 8
certified by the [Comptroller] EXECUTIVE DIRECTOR under § 4–505 of this article. 9
2–164. 10
(e) (2) The [Comptroller] EXECUTIVE DIRECTOR shall issue the permit 11
without the payment of a fee to: 12
(i) a charitable organization; or 13
(ii) a holder of a fuel–alcohol permit. 14
2–201. 15
Each license specified in this subtitle is a manufacturer’s license that the 16
[Commission] EXECUTIVE DIRECTOR issues. 17
2–202. 18
(g) At least 14 days before holding a planned promotional event after 6 p.m., a 19
license holder shall file a notice of the promotional event with the [Comptroller] 20
EXECUTIVE DIRECTOR on the form that the [Comptroller] EXECUTIVE DIRECTOR 21
provides. 22
(k) The annual license fee: 23
(1) shall be determined by the [Commission] EXECUTIVE DIRECTOR; and 24
(2) may not exceed $2,000. 25
2–203. 26
(g) The annual license fee: 27 18 HOUSE BILL 1165
(1) shall be determined by the [Commission] EXECUTIVE DIRECTOR; and 1
(2) may not exceed $500. 2
2–204. 3
(f) At least 14 days before holding a planned promotional event after 6 p.m., a 4
license holder shall file a notice of the promotional event with the [Comptroller] 5
EXECUTIVE DIRECTOR on the form that the [Comptroller] EXECUTIVE DIRECTOR 6
provides. 7
(i) The annual license fee: 8
(1) shall be determined by the [Commission] EXECUTIVE DIRECTOR; and 9
(2) may not exceed $600. 10
2–205. 11
(d) The annual license fee: 12
(1) shall be determined by the [Commission] EXECUTIVE DIRECTOR; and 13
(2) may not exceed $750. 14
2–206. 15
(b) (3) (ii) The Secretary shall adopt regulations governing the granting of 16
an exemption under subparagraph (i) of this paragraph, after consultation with the 17
[Governor’s Wine and Grape] Advisory Commission ON MARYLAND ALCOHOL 18
MANUFACTURING , the Maryland Grape Growers Association, the Maryland Wineries 19
Association, and other interested parties. 20
(9) At least 14 days before holding a planned promotional event after 6 21
p.m., a license holder shall file a notice of the promotional event with the [Comptroller] 22
EXECUTIVE DIRECTOR on the form that the [Comptroller] EXECUTIVE DIRECTOR 23
provides. 24
(d) A license holder may: 25
(1) store on its licensed premises, in a segregated area approved by the 26
[Comptroller] EXECUTIVE DIRECTOR, the product of other Class 4 limited wineries to be 27
used at Maryland Wineries Association promotional activities, provided records are 28
maintained and reports filed regarding the storage under this item as may be required by 29
the [Comptroller] EXECUTIVE DIRECTOR; 30 HOUSE BILL 1165 19
(2) distill and bottle not more than 1,900 gallons of pomace brandy made 1
from available Maryland agricultural products; 2
(3) purchase bulk wine fermented by a manufacturer licensed under this 3
article and blend the wine with the license holder’s wine and pomace brandy if the 4
aggregate purchase does not exceed 25% of the license holder’s annual wine and pomace 5
brandy production; 6
(4) purchase pomace brandy only for blending with wine; 7
(5) import, export, and transport its wine and pomace brandy in accordance 8
with this section; and 9
(6) produce wine and pomace brandy at a warehouse for which the license 10
holder has been issued an individual storage permit, if: 11
(i) the license holder does not serve or sell wine or pomace brandy 12
at a warehouse to the public; and 13
(ii) the [Comptroller] EXECUTIVE DIRECTOR has full access at all 14
times to the warehouse to enforce this article. 15
(f) If a license holder maintains the records and files the reports that the 16
Comptroller [requires] AND THE EXECUTIVE DIRECTOR REQUIRE , the license holder 17
may: 18
(1) in the State, conduct winemaking and packaging activities at another 19
federally bonded winery or limited winery; or 20
(2) outside the State, conduct winemaking and packaging activities, other 21
than fermentation, at another federally bonded winery. 22
(h) The annual license fee: 23
(1) shall be determined by the [Commission] EXECUTIVE DIRECTOR; and 24
(2) may not exceed $200. 25
2–207. 26
(e) The annual licenses fee: 27
(1) shall be determined by the [Commission] EXECUTIVE DIRECTOR; and 28
(2) may not exceed $1,500. 29
20 HOUSE BILL 1165
(i) (1) (i) The [Commission] EXECUTIVE DIRECTOR may issue a 1
refillable container permit for draft beer under § 4–1104 or Subtitle 11 of the various titles 2
in Division II of this article to a holder of a Class 5 brewery license: 3
1. on completion of an application form that the 4
[Commission] EXECUTIVE DIRECTOR provides; and 5
2. at no cost to the holder of the Class 5 brewery license. 6
(ii) A refillable container permit may be renewed each year 7
concurrently with the renewal of the Class 5 brewery license. 8
2–208. 9
(e) Except for a license transferred to a new location, the license may be 10
transferred under Title 4, Subtitle 3 of this article if an application for transfer is filed at 11
the same time with the local licensing board and the [Comptroller] EXECUTIVE 12
DIRECTOR. 13
(i) (1) On or before October 1 each year, the [Comptroller] COMMISSION 14
shall report to the Senate Education, Health, and Environmental Affairs Committee and 15
the House Economic Matters Committee, in accordance with § 2 –1257 of the State 16
Government Article, the total beer production of each Class 6 license holder in the 17
preceding fiscal year, identified by jurisdiction and license holder. 18
(2) Each holder of a Class 6 license shall report to the [Comptroller] 19
EXECUTIVE DIRECTOR the information needed to prepare the annual report required 20
under this subsection. 21
(3) The [Comptroller] COMMISSION shall include the information 22
reported under this subsection in the annual report submitted under § 1–316 of this article. 23
2–209. 24
(i) The annual license fee: 25
(1) shall be determined by the [Commission] EXECUTIVE DIRECTOR; and 26
(2) may not exceed $500. 27
(j) (1) On or before October 1 each year, the [Comptroller] COMMISSION 28
shall report to the Senate Education, Health, and Environmental Affairs Committee and 29
the House Economic Matters Committee, in accordance with § 2–1257 of the State 30
Government Article, on the following, identified by jurisdiction and Class 7 license holder: 31
HOUSE BILL 1165 21
(i) the total beer production of the license holder in the preceding 1
fiscal year; and 2
(ii) the total sales of the license holder for on–site consumption. 3
(2) Each holder of a Class 7 license shall report to the [Comptroller] 4
EXECUTIVE DIRECTOR the information needed to prepare the annual report required 5
under this subsection. 6
(3) The [Comptroller] COMMISSION shall include the information 7
reported under this subsection in the annual report submitted under § 1–306 of this article. 8
2–210. 9
(c) A license holder may: 10
(2) store, in a segregated area approved by the [Comptroller] EXECUTIVE 11
DIRECTOR, beer produced by the license holder for sale and delivery to a wholesaler 12
licensed in the State or a person outside the State authorized to acquire the beer; 13
(6) store, brew, and bottle beer in a facility listed on a permit issued to the 14
license holder in accordance with § 2–113 of this title, for sale and delivery to a wholesaler 15
licensed in the State or a person outside the State authorized to acquire the beer, or 16
shipment back to the licensed farm, if: 17
(i) the license holder does not serve or sell beer at the warehouse; 18
and 19
(ii) the [Comptroller] EXECUTIVE DIRECTOR has full access at all 20
times to the warehouse to enforce this article; and 21
(i) (2) In a segregated area approved by the [Commission] EXECUTIVE 22
DIRECTOR at the location listed on the license, a license holder may store the products of 23
other Maryland breweries for the multibrewery activity. 24
(j) The annual license fee: 25
(1) shall be determined by the [Commission] EXECUTIVE DIRECTOR; and 26
(2) may not exceed $200. 27
(k) (1) On or before October 1 each year, the [Commission] EXECUTIVE 28
DIRECTOR shall report to the Senate Education, Health, and Environmental Affairs 29
Committee and the House Economic Matters Committee, in accordance with § 2–1257 of 30
the State Government Article, the total beer production of each Class 8 license holder in 31
the preceding fiscal year, identified by jurisdiction and license holder. 32 22 HOUSE BILL 1165
(2) Each holder of a Class 8 license shall report to the [Commission] 1
EXECUTIVE DIRECTOR the information needed to prepare the annual report required 2
under this subsection. 3
(3) The [Commission] EXECUTIVE DIRECTOR shall include the 4
information reported under this subsection in the annual report submitted under § 1–316 5
of this article. 6
2–213. 7
(a) In addition to any license fee otherwise required under this article, an 8
applicant for initial issuance of a manufacturer’s license shall pay to the [Comptroller] 9
EXECUTIVE DIRECTOR a nonrefundable application fee of $200. 10
(b) In addition to any license fee otherwise required under this article, an 11
applicant for renewal of a manufacturer’s license shall pay to the [Comptroller] 12
EXECUTIVE DIRECTOR a renewal fee of $30. 13
2–219. 14
(b) A holder of a manufacturer’s license may sell and deliver a product produced 15
under the holder’s license to an individual located in the State if: 16
(4) the deliverer and the individual receiving the delivery each endorse a 17
delivery form that the [Commission] EXECUTIVE DIRECTOR approves at the time of 18
delivery certifying that: 19
(i) the individual receiving the delivery claimed to be at least 21 20
years old and the claim was supported by documentary evidence; 21
(ii) the individual receiving the delivery knew that it is a criminal 22
offense for alcoholic beverages to be given to an individual under the age of 21 years; and 23
(iii) the deliverer examined the recipient’s identification. 24
(c) A holder of a manufacturer’s license may directly ship alcohol to a consumer 25
on request, if the [Commission] EXECUTIVE DIRECTOR authorizes the direct shipment 26
after determining that: 27
(1) the shipment can be completed safely using a common carrier in 28
accordance with other applicable laws; and 29
(2) all applicable sales and excise taxes are paid. 30
2–301. 31 HOUSE BILL 1165 23
Each license specified in this title is a wholesaler’s license that the [Comptroller] 1
EXECUTIVE DIRECTOR issues. 2
2–302. 3
(d) The license holder may use an additional location for the warehousing, sale, 4
and delivery of beer, wine, and liquor: 5
(1) if approved by the [Comptroller] EXECUTIVE DIRECTOR following 6
submission of a separate application for each location; and 7
(2) on the payment of a $2,000 fee for each additional location. 8
2–303. 9
(d) The license holder may use an additional location for the warehousing, sale, 10
and delivery of wine and liquor: 11
(1) if approved by the [Comptroller] EXECUTIVE DIRECTOR following 12
submission of a separate application for each location; and 13
(2) on the payment of a $1,750 fee for each additional location. 14
2–304. 15
(d) The license holder may use an additional location for the warehousing, sale, 16
and delivery of beer and wine: 17
(1) if approved by the [Comptroller] EXECUTIVE DIRECTOR following 18
submission of a separate application for each location; and 19
(2) on the payment of a $1,500 fee for each additional location. 20
2–305. 21
(d) The license holder may use an additional location for the warehousing, sale, 22
and delivery of beer: 23
(1) if approved by the [Comptroller] EXECUTIVE DIRECTOR following 24
submission of a separate application for each location; and 25
(2) on the payment of a $1,250 fee for each additional location. 26
2–306. 27
24 HOUSE BILL 1165
(d) The license holder may use an additional location for the warehousing, sale, 1
and delivery of wine: 2
(1) if approved by the [Comptroller] EXECUTIVE DIRECTOR following 3
submission of a separate application for each location; and 4
(2) on the payment of a $1,250 fee for each additional location. 5
2–307. 6
(e) The license holder may use an additional location for the warehousing, sale, 7
and delivery of wine: 8
(1) if approved by the [Comptroller] EXECUTIVE DIRECTOR following 9
submission of a separate application for each location; and 10
(2) on the payment of a $50 fee for each additional location. 11
2–308. 12
(e) The license holder may use an additional location for the warehousing, sale, 13
and delivery of beer: 14
(1) if approved by the [Comptroller] EXECUTIVE DIRECTOR following 15
submission of a separate application for each location; and 16
(2) on the payment of a $50 fee for each additional location. 17
2–308.1. 18
(e) The license holder may use an additional location for the warehousing, sale, 19
and delivery of liquor: 20
(1) if approved by the [Comptroller] EXECUTIVE DIRECTOR following 21
submission of a separate application for each location; and 22
(2) on the payment of a $100 fee for each additional location. 23
2–312. 24
(a) Subject to subsection (b) of this section, a holder of a wholesaler’s license may 25
directly import alcoholic beverages of the type indicated on the license from outside the 26
continental limits and possessions of the United States if the brand owner provides notice 27
to the [Comptroller] EXECUTIVE DIRECTOR of the license holder’s jurisdiction and 28
authority to sell the alcoholic beverages. 29
2–401. 30 HOUSE BILL 1165 25
A license or permit is not required for a transport plane furnished with a cocktail 1
lounge or a water vessel carrying passengers or cargo to a foreign port if: 2
(1) alcoholic beverages are purchased from a manufacturer or wholesaler; 3
and 4
(2) satisfactory evidence is submitted in writing to the [Comptroller] 5
EXECUTIVE DIRECTOR that the alcoholic beverages are for sale or use beyond the 6
continental limits and possessions of the United States. 7
2–402. 8
(a) There is a Class E (water vessel) beer, wine, and liquor license issued by the 9
[Comptroller] EXECUTIVE DIRECTOR. 10
2–404. 11
(b) There is a Class F (railroad) beer and light wine license issued by the 12
[Comptroller] EXECUTIVE DIRECTOR. 13
2–405. 14
(a) There is a Class F (railroad) beer, wine, and liquor license issued by the 15
[Comptroller] EXECUTIVE DIRECTOR. 16
2–406. 17
(a) There is a Class G (aircraft) beer, wine, and liquor license issued by the 18
[Comptroller] EXECUTIVE DIRECTOR. 19
2–407. 20
(a) (1) An applicant for a Class E, Class F, or Class G license shall submit to 21
the [Comptroller] EXECUTIVE DIRECTOR an application in the form that the 22
[Comptroller] EXECUTIVE DIRECTOR provides. 23
(2) An application shall be made under oath. 24
(d) (1) An application shall contain: 25
(vi) a statement that the entity for which the license is sought: 26
1. consents to the issuance of the license; and 27
26 HOUSE BILL 1165
2. except as provided in paragraph (2) of this subsection, 1
authorizes the [Comptroller] EXECUTIVE DIRECTOR to inspect and search at any time, 2
without warrant, the aircraft, railroad car, or water vessel to which the license applies; 3
2–408. 4
(b) (1) Before a license under subsection (a) of this section expires, the 5
[Comptroller] EXECUTIVE DIRECTOR shall issue a replacement license containing the 6
privileges conferred by the original license if: 7
(i) the [Comptroller] EXECUTIVE DIRECTOR receives from an 8
individual on behalf of the license holder an application for the replacement license within 9
10 days after the last remaining individual dies or is declared incompetent; and 10
(ii) except as provided in paragraph (2) of this subsection, the 11
application is accompanied by payment of a fee of $1. 12
(2) In Frederick County, a fee may not be charged for a new license. 13
(3) A replacement license expires at the end of the license year. 14
2–502. 15
(a) The [Comptroller] EXECUTIVE DIRECTOR may issue a State caterer’s 16
license to a person that: 17
(1) is engaged in the business of catering; 18
(2) meets all State and local requirements for and holds all required 19
licenses relating to the conduct of the catering business; 20
(3) holds any catering license that may be required under this article in the 21
jurisdiction in which the person’s principal place of business is located; 22
(4) (i) holds a retail license that may be annually renewed other than a 23
Class C license; or 24
(ii) does not hold a license but has a permanent office and storage 25
facility for alcoholic beverages in the State; and 26
(5) meets all other requirements of this subtitle. 27
2–506. 28
(b) If a local licensing board determines that alcoholic beverages were unlawfully 29
sold or provided at a catered event: 30
HOUSE BILL 1165 27
(1) the local licensing board shall report its findings to the [Comptroller] 1
EXECUTIVE DIRECTOR; and 2
(2) the [Comptroller] EXECUTIVE DIRECTOR shall take the action the 3
[Comptroller] EXECUTIVE DIRECTOR determines is appropriate. 4
3–101. 5
An application for a manufacturer’s license, wholesaler’s license, Class E (water 6
vessel) license, Class F (railroad) license, Class G (airplane) license, or statewide caterer’s 7
license shall be filed with the [Comptroller] EXECUTIVE DIRECTOR. 8
3–107. 9
The [Comptroller] EXECUTIVE DIRECTOR may retain from the license and permit 10
fees that are collected an amount to pay for: 11
(1) the cost of refunds issued in accordance with § 3–108(b) of this subtitle; 12
and 13
(2) the administrative expenses incurred by the [Comptroller] 14
EXECUTIVE DIRECTOR to discharge its duties under this article. 15
3–108. 16
(b) A refund shall be issued to a license holder on surrender of the license if: 17
(6) the issuance of a license by the [Comptroller] EXECUTIVE DIRECTOR 18
is reversed on judicial review and the operation of the establishment is prohibited, with the 19
refund issued to the license holder in an amount based on the date that the refusal to grant 20
the renewal becomes final; or 21
3–201. 22
(a) The [Comptroller] EXECUTIVE DIRECTOR shall issue each license that 23
applies statewide. 24
3–202. 25
(a) On receipt of an application, the [Comptroller] EXECUTIVE DIRECTOR shall 26
order an investigation of: 27
(1) the applicant; 28
(2) the business to be operated; and 29
28 HOUSE BILL 1165
(3) the statements presented in the license application. 1
(b) On completion of the investigation, the [Comptroller] EXECUTIVE 2
DIRECTOR shall deny the license application: 3
(1) if the [Comptroller] EXECUTIVE DIRECTOR determines that the 4
applicant: 5
(i) is not a fit person to receive the license; 6
(ii) made a material false statement in the application; or 7
(iii) acted fraudulently in connection with the application; or 8
(2) for other reasons that the [Comptroller] EXECUTIVE DIRECTOR 9
considers sufficient. 10
(c) If the [Comptroller] EXECUTIVE DIRECTOR does not find cause to deny the 11
license, the [Comptroller] EXECUTIVE DIRECTOR shall approve the application and issue 12
the license. 13
(d) (1) In addition to any license fee otherwise required under this article, an 14
applicant for the initial issuance of a manufacturer’s or wholesaler’s license under Title 2, 15
Subtitle 2 or 3 of this article shall pay to the [Comptroller] EXECUTIVE DIRECTOR a 16
nonrefundable application fee of $200. 17
(2) The application fee under this subsection does not apply to a license for 18
which payment of an annual license fee is not otherwise required under this article. 19
3–203. 20
(a) A statewide license shall be on the form that the [Comptroller] EXECUTIVE 21
DIRECTOR provides. 22
(b) The [Comptroller] EXECUTIVE DIRECTOR shall number each statewide 23
license. 24
3–204. 25
Except as otherwise provided in this article, a license issued by the [Comptroller] 26
EXECUTIVE DIRECTOR shall be dated as of the date of issuance and shall expire on the 27
next April 30 after its issuance. 28
3–205. 29
A license issued by the [Comptroller] EXECUTIVE DIRECTOR: 30 HOUSE BILL 1165 29
(1) is not property and does not confer property rights; and 1
(2) is subject to: 2
(i) suspension, revocation, and restrictions authorized by law; and 3
(ii) regulations authorized under this article. 4
3–206. 5
(a) The [Comptroller] EXECUTIVE DIRECTOR may issue a replacement license 6
to a license holder whose license is lost or destroyed on receiving: 7
(1) an application under oath; and 8
(2) payment of a $1 fee. 9
3–207. 10
(b) This section does not apply to: 11
(2) the location, if the license was denied because the [Comptroller] 12
EXECUTIVE DIRECTOR determined that the applicant was not a proper person to be 13
issued the license. 14
3–301. 15
(b) A transfer under subsection (a) of this section may be made if: 16
(4) the [Comptroller] EXECUTIVE DIRECTOR approves the new location 17
or license holder in the same way the [Comptroller] EXECUTIVE DIRECTOR approves the 18
issuance of a license. 19
3–302. 20
The [Comptroller] EXECUTIVE DIRECTOR may not allow the transfer of a license 21
until the transferor has: 22
(1) complied with the Bulk Transfers Act under Title 6 of the Commercial 23
Law Article; and 24
(2) provided to the [Comptroller] EXECUTIVE DIRECTOR an affidavit 25
that certifies compliance with the Bulk Transfers Act. 26
3–303. 27 30 HOUSE BILL 1165
(a) An applicant shall pay to the [Comptroller] EXECUTIVE DIRECTOR a fee of 1
$20, in addition to the costs of publication and notice, when filing an application for the 2
transfer of a license. 3
(b) The [Comptroller] EXECUTIVE DIRECTOR shall endorse on the license the 4
transfer of the license if the applicant has paid the fee required under subsection (a) of this 5
section. 6
3–304. 7
(a) For a license issued by the [Comptroller] EXECUTIVE DIRECTOR for the use 8
of a corporation or club, the license holder may substitute on the license the name of a 9
different officer for the name of any officer who: 10
(1) has died; 11
(2) has retired; or 12
(3) no longer holds an office in the corporation or club. 13
(b) The license holder shall file with the [Comptroller] EXECUTIVE DIRECTOR 14
an affidavit that contains: 15
(1) the substitution of the officer; 16
(2) an explanation for the substitution; and 17
(3) in the case of a corporation, a statement that the ownership of the 18
corporation has not changed. 19
(c) On receipt of the affidavit and after determining that the applicant qualifies 20
under this article, the [Comptroller] EXECUTIVE DIRECTOR shall: 21
(1) amend its records; and 22
(2) issue a corrected license. 23
3–401. 24
(a) Subject to §§ 3–405 and 3–406 of this subtitle, a holder of an expiring license 25
is entitled to an annual license renewal: 26
(1) on the approval of the license renewal application by the [Comptroller] 27
EXECUTIVE DIRECTOR; 28
HOUSE BILL 1165 31
(2) on payment of the annual license fee; and 1
(3) without filing or providing more information unless specifically 2
requested by the [Comptroller] EXECUTIVE DIRECTOR. 3
(b) Except as provided in §§ 3–406(a) and 3–407(c) of this subtitle, the 4
[Comptroller] EXECUTIVE DIRECTOR shall consider an application for license renewal in 5
the same manner as for an original application. 6
(c) (1) In addition to any license fee otherwise required under this article, an 7
applicant for renewal of a manufacturer’s or wholesaler’s license under Title 2, Subtitle 2 8
or 3 of this article shall pay to the [Comptroller] EXECUTIVE DIRECTOR a renewal fee of 9
$30. 10
(2) The renewal fee under this subsection does not apply to a license for 11
which payment of an annual license fee is not otherwise required under this article. 12
3–402. 13
To renew a license, the license holder annually shall file a written application, under 14
oath, with the [Comptroller] EXECUTIVE DIRECTOR. 15
3–404. 16
(b) The [Comptroller] EXECUTIVE DIRECTOR may not require the consent 17
statement under subsection (a)(2) of this section for a retail dealer applying for renewal if: 18
(1) the owner signed a comparable consent statement in connection with 19
an original or previous license renewal application; 20
(2) the consent statement under item (1) of this subsection is in effect for 21
the term of the owner’s lease with the applicant; and 22
(3) the lease does not expire during the term of the license renewal. 23
3–405. 24
(b) (1) If a protest against renewing a license is filed at least 30 days before 25
the license expires, the [Comptroller] EXECUTIVE DIRECTOR may not approve the 26
renewal without holding a hearing. 27
(2) The [Comptroller] EXECUTIVE DIRECTOR shall hear and determine 28
the protest in the same manner as the [Comptroller] EXECUTIVE DIRECTOR hears and 29
determines an original application. 30
3–406. 31 32 HOUSE BILL 1165
(a) The [Comptroller] EXECUTIVE DIRECTOR: 1
(1) may not renew a license if the [Comptroller] EXECUTIVE DIRECTOR 2
determines that the license holder is not qualified to obtain a license renewal; but 3
(2) shall issue to the license holder by way of renewal the class or type of 4
license for which the [Comptroller] EXECUTIVE DIRECTOR determines the license holder 5
is qualified. 6
(b) (1) Subject to paragraph (2) of this subsection, the [Comptroller] 7
EXECUTIVE DIRECTOR shall deny a license renewal application if during the license year 8
the license holder was convicted of a State or federal offense that, in the judgment of the 9
[Comptroller] EXECUTIVE DIRECTOR, renders the license holder unfit or unqualified to 10
obtain a renewed license. 11
(2) The [Comptroller] EXECUTIVE DIRECTOR: 12
(i) shall hold a public hearing before renewing a license under the 13
circumstances described in paragraph (1) of this subsection; and 14
(ii) may inquire into all relevant facts and circumstances concerning 15
the offense at the hearing. 16
3–407. 17
(a) The [Comptroller] EXECUTIVE DIRECTOR may issue renewed licenses for 18
the following license year between April 15 and May 1, inclusive. 19
(c) If an expiring license is subject to an order of restriction or suspension, the 20
[Comptroller] EXECUTIVE DIRECTOR shall issue the corresponding license renewal 21
subject to the same order. 22
3–504. 23
(c) The [Comptroller] EXECUTIVE DIRECTOR: 24
(1) shall approve, certify, and issue an alcohol awareness program permit 25
to each alcohol awareness program that complies with this section; and 26
(2) may require recertification of the approved alcohol awareness program 27
to ensure compliance with changes in the program. 28
(g) The [Comptroller] EXECUTIVE DIRECTOR may decertify the alcohol 29
awareness program of an alcohol awareness program provider who violates subsection (c), 30
(d), or (f) of this section. 31 HOUSE BILL 1165 33
3–601. 1
The [Comptroller] EXECUTIVE DIRECTOR may revoke or suspend a license or 2
permit that the [Comptroller] EXECUTIVE DIRECTOR issues in accordance with this 3
subtitle. 4
3–602. 5
(a) Revocation or suspension procedures may be started: 6
(1) by the [Comptroller] EXECUTIVE DIRECTOR, at the [Comptroller’s] 7
EXECUTIVE DIRECTOR’S initiative; 8
(2) on the complaint of a deputy or an inspector that the [Comptroller] 9
EXECUTIVE DIRECTOR employs to administer this article; 10
(3) on the complaint of a peace officer; 11
(4) if the license holder or permit holder is located in a municipality that is 12
within a county, on the complaint of the mayor and council of the municipality; or 13
(5) on the written complaint of at least 10 residents, real estate owners, or 14
voters of the precinct in which the licensed premises is located. 15
(c) The [Comptroller] EXECUTIVE DIRECTOR may immediately suspend a 16
license or permit for a violation of record–keeping or reporting requirements under § 1–408 17
of this article. 18
3–603. 19
(a) The [Comptroller] EXECUTIVE DIRECTOR may revoke or suspend a license 20
or permit: 21
(1) for any reason to promote the peace or safety of the community in which 22
the premises are located; or 23
(2) for offenses as provided in this article. 24
(b) The [Comptroller] EXECUTIVE DIRECTOR shall revoke a license or permit 25
or, except as provided in § 3–606 of this subtitle, suspend a license or permit for: 26
(1) conviction of the license holder or permit holder for violation of this 27
article or a provision of the Tax – General Article that relates to the alcoholic beverage tax; 28
34 HOUSE BILL 1165
(2) willful failure or refusal of the license holder or permit holder to comply 1
with: 2
(i) this article or provisions of the Tax – General Article that relate 3
to the alcoholic beverage tax; or 4
(ii) a regulation adopted under this article or under provisions of the 5
Tax – General Article that relate to the alcoholic beverage tax; 6
(3) making a material false statement in an application for a license or 7
permit; 8
(4) two or more convictions within 2 years of an agent or employee of a 9
license holder or permit holder for on–premises violations of this article or provisions of the 10
Tax – General Article that relate to the alcoholic beverage tax; 11
(5) on–premises possession by a retail dealer, other than a holder of a Class 12
E, Class F, or Class G license, of an alcoholic beverage on which the tax imposed by § 13
5–102 of the Tax – General Article has not been paid; 14
(6) violation of § 2–216 or § 2–315 of this article; 15
(7) willful failure of a license holder or permit holder to: 16
(i) keep the records required under this article or under provisions 17
of the Tax – General Article that relate to the alcoholic beverage tax; or 18
(ii) allow inspection of the records by an authorized person; 19
(8) on–premises possession of an alcoholic beverage that a license holder or 20
permit holder, other than a holder of a Class E, Class F, or Class G license, is not licensed 21
to sell; 22
(9) revocation or suspension of a permit issued to a license holder or permit 23
holder by the federal Alcohol and Tobacco Tax and Trade Bureau or for conviction of 24
violating a federal law relating to alcoholic beverages; 25
(10) failure to furnish bond as required by this article within 15 days after 26
notice from the Comptroller; and 27
(11) violation of § 3–604 of this subtitle. 28
3–604. 29
(a) (1) Except as provided in paragraph (2) of this subsection, the 30
[Comptroller] EXECUTIVE DIRECTOR shall revoke a license or permit if, after a hearing 31 HOUSE BILL 1165 35
under § 3–602(b) of this subtitle, an activity listed in this section is found to have occurred 1
on the licensed premises. 2
3–605. 3
(a) After revoking a license or permit, the [Comptroller] EXECUTIVE 4
DIRECTOR: 5
(1) may not issue another license or permit to the person whose license or 6
permit is revoked; 7
(2) may not issue any license or permit for the same premises for 6 months 8
after the revocation; and 9
(3) may decide not to issue another license or permit for the same premises. 10
3–606. 11
(c) The [Comptroller] EXECUTIVE DIRECTOR may accept the offer of 12
compromise if: 13
(1) the public welfare and morals would not be impaired by allowing the 14
license holder or permit holder to operate during the period set for the suspension; and 15
(2) the payment of the money will achieve the desired disciplinary 16
purposes. 17
3–701. 18
(b) Except as otherwise provided in this subtitle, a license issued by the 19
[Comptroller] EXECUTIVE DIRECTOR expires on the 10th day after a license holder has 20
vacated or been evicted from the licensed premises. 21
3–703. 22
A license issued by the [Comptroller] EXECUTIVE DIRECTOR for a premises 23
acquired for public use shall expire 180 days after acquisition unless an application is 24
pending or has been approved for: 25
(1) a transfer of the license to another location or another person, subject 26
to Subtitle 3 of this title; or 27
(2) a certificate of permission or a renewal license for continuation of 28
business, subject to § 3–802 of this title. 29
3–704. 30
36 HOUSE BILL 1165
(a) The [Comptroller] EXECUTIVE DIRECTOR may postpone the expiration of a 1
license that the [Comptroller] EXECUTIVE DIRECTOR issues for an additional period to 2
avoid hardship. 3
3–802. 4
(a) Except as provided in § 2–408 of this article, on application to the 5
[Comptroller] EXECUTIVE DIRECTOR and payment of a fee of $1 by the personal 6
representative or special administrator of the estate of a deceased license holder, the 7
[Comptroller] EXECUTIVE DIRECTOR may grant a certificate of permission for the 8
continuation of the business in the name of the personal representative or special 9
administrator for the benefit of the estate of the deceased license holder. 10
(b) (1) The certificate of permission may be granted for a period not exceeding 11
18 months after the date of the granted permission unless the license expires earlier. 12
(2) If the license expires earlier than 18 months after the date of the 13
granted permission, the [Comptroller] EXECUTIVE DIRECTOR may issue a renewal 14
license on application by the personal representative or special administrator for a period 15
not exceeding 18 months after the death of the license holder. 16
3–803. 17
(a) The personal representative or special administrator to whom a certificate of 18
permission has been granted may apply to the [Comptroller] EXECUTIVE DIRECTOR for 19
the transfer of the license for the benefit of the estate of the license holder. 20
3–901. 21
A person aggrieved by a final decision of the [Comptroller] EXECUTIVE DIRECTOR 22
in a contested case under this title may seek judicial review in accordance with the 23
Administrative Procedure Act. 24
4–108. 25
An applicant shall file a sworn application for a license with the applicable local 26
licensing board on the form that the [Comptroller] EXECUTIVE DIRECTOR requires. 27
4–109. 28
(b) The application shall also include a statement executed and acknowledged by 29
the owner of the location where the business is to be conducted that: 30
(1) agrees to the issuance of the license; and 31
HOUSE BILL 1165 37
(2) authorizes a warrantless inspection and search of the premises at any 1
time in any part of the building in which the business is to be conducted by: 2
(i) the Comptroller; 3
(ii) the [Commission] EXECUTIVE DIRECTOR; 4
(iii) the local licensing board and its authorized agents and 5
employees; or 6
(iv) a peace officer of the county or municipality where the business 7
is to be located. 8
4–206. 9
(c) (1) A local licensing board may issue a license for use in premises in which 10
more than 10,000 square feet of floor space is devoted to the sale of alcoholic beverages for 11
off–premises consumption, if the local licensing board: 12
(i) holds a public hearing; 13
(ii) determines that the issuance of the license: 14
1. would serve the public need; and 15
2. would not adversely impact existing retail license holders 16
in the immediate vicinity of the premises, including those license holders that may be in a 17
contiguous county or city; and 18
(iii) obtains from the [Comptroller] EXECUTIVE DIRECTOR a 19
written report in which the [Comptroller] EXECUTIVE DIRECTOR determines that the 20
issuance of the license: 21
1. would not adversely affect the orderly distribution of 22
alcoholic beverages in the State; and 23
2. would comply with all applicable provisions of this article 24
relating to the issuance of multiple licenses. 25
(2) If the [Comptroller] EXECUTIVE DIRECTOR determines that an 26
application submitted under this subsection does not meet the criteria provided under 27
paragraph (1)(iii) of this subsection, the local licensing board may not issue the license. 28
4–505. 29
(c) The [Comptroller] EXECUTIVE DIRECTOR: 30
38 HOUSE BILL 1165
(1) shall approve, certify, and issue an alcohol awareness program permit 1
to each alcohol awareness program that complies with this section; and 2
(2) may require recertification of the approved alcohol awareness program 3
to ensure compliance with changes in the program. 4
(g) The [Comptroller] EXECUTIVE DIRECTOR may decertify the alcohol 5
awareness program of an alcohol awareness program provider who violates subsection (c), 6
(d), or (f) of this section. 7
4–1104. 8
(d) (2) The [Comptroller] EXECUTIVE DIRECTOR may adopt standards 9
regarding containers that qualify for use as refillable containers for beer, including 10
containers originating from outside the State. 11
(3) The holder of a refillable container permit may refill a refillable 12
container originating from inside or outside the State that meets the standards adopted by 13
the [Comptroller] EXECUTIVE DIRECTOR under paragraph (2) of this subsection. 14
4–1105. 15
(d) (2) The [Comptroller] EXECUTIVE DIRECTOR may adopt standards 16
regarding containers that qualify for use as refillable containers for wine, including 17
containers originating from outside the State. 18
(3) The holder of a refillable container permit may refill a refillable 19
container originating from inside or outside the State that meets the standards adopted by 20
the [Comptroller] EXECUTIVE DIRECTOR under paragraph (2) of this subsection. 21
4–1202. 22
(b) An application for a per diem license shall be: 23
(1) on the form that the [Comptroller] EXECUTIVE DIRECTOR requires; 24
and 25
(2) signed and sworn to by the applicant. 26
5–303. 27
(b) A keg license holder may not sell or otherwise transfer, or offer to sell or 28
otherwise transfer, the contents of a keg for off–premises consumption unless: 29
(1) the keg license holder provides to the purchaser a keg registration form 30
approved and distributed by the [Comptroller] EXECUTIVE DIRECTOR that is designed 31 HOUSE BILL 1165 39
to be affixed to the keg and that indicates the name and address of the licensed 1
establishment and a registration number; 2
(2) except as provided in § 26–103 of this article, the purchaser provides 3
identification and completes and signs a registration form with the following information: 4
(i) the purchaser’s name and address as shown on the identification 5
produced; and 6
(ii) the date of purchase; and 7
(3) the keg license holder affixes the completed registration form to the keg 8
and retains a copy of the form for 30 days on the licensed premises. 9
6–101. 10
(c) (2) (i) A vehicle, a vessel, or an aircraft that is seized as contraband is 11
forfeited unless a protest is filed within 30 days after the publication under subparagraph 12
(ii) of this paragraph. 13
(ii) The Comptroller or the [Commission] EXECUTIVE DIRECTOR, 14
as appropriate: 15
1. if possible, shall notify the registered owner of the 16
property of the seizure; and 17
2. shall publish a notice: 18
A. in a newspaper of general circulation in the county where 19
the vehicle, vessel, or aircraft was seized; and 20
B. informing interested persons of the seizure and the right 21
to file a protest. 22
6–103. 23
A vehicle, a vessel, or an aircraft used with the express or implied knowledge or 24
consent of its owner to violate a provision of this article relating to the unlawful 25
manufacture of alcoholic beverages or to transport, store, or hide unlawful alcoholic 26
beverages: 27
(1) is contraband; and 28
(2) may be seized by: 29
(i) the Comptroller or the Comptroller’s authorized enforcement 30
officers; or 31 40 HOUSE BILL 1165
(ii) the [Commission] EXECUTIVE DIRECTOR or the 1
[Commission’s] EXECUTIVE DIRECTOR’S authorized enforcement officers; and 2
(3) may be forfeited in accordance with this subtitle. 3
6–104. 4
A lienholder, or other person showing a legal right, title, or interest in seized 5
property not destroyed in accordance with this subtitle, may file a protest with the 6
Comptroller OR THE EXECUTIVE DIRECTOR, AS APPROPRIATE : 7
(1) within 30 days after seizure of the property; or 8
(2) if the seized property is a vehicle, a vessel, or an aircraft, within 30 days 9
after the publication of notice required under § 6–101(c) of this subtitle. 10
6–105. 11
(b) (1) If the court determines that the property is subject to forfeiture, the 12
court shall determine whether any lienholder filing a timely protest had knowledge of the 13
intended unlawful use. 14
(2) If the court determines that a lienholder had knowledge, the 15
lienholder’s right, title, and interest to the property is forfeited. 16
(3) If the court does not determine that a lienholder had knowledge, but 17
the property is otherwise subject to forfeiture: 18
(i) the property shall be forfeited; and 19
(ii) the Comptroller or the Executive Director [of the Commission], 20
as the Comptroller or Executive Director, as appropriate, considers in the best interest of 21
the State, may: 22
1. pay the outstanding indebtedness secured by the lien and 23
keep the property; or 24
2. deliver the property to the lienholder. 25
6–107. 26
(a) Except as provided in subsection (c) of this section, forfeited property shall be 27
retained for official use, sold, or otherwise disposed of by: 28
(1) the Comptroller or the Executive Director [of the Commission], as 29
appropriate, if the property was seized by State officers; or 30 HOUSE BILL 1165 41
(2) if the property was not seized by State officers: 1
(i) the Mayor and City Council of Baltimore City; or 2
(ii) the board of county commissioners or the county council of the 3
county in which the property was seized. 4
(b) The Comptroller, the Executive Director [of the Commission], the Mayor and 5
City Council of Baltimore City, or the board of county commissioners or county council in 6
the county where the property was seized shall retain or dispose of the property in the way 7
it considers to be in the best public interest. 8
6–108. 9
(b) The officer shall report the seizure and destruction conducted under this 10
section to the [Field Enforcement Division of the Commission] EXECUTIVE DIRECTOR. 11
6–202. 12
(a) A building, vehicle, or premises where alcoholic beverages are authorized to 13
be kept, transported, manufactured, or sold under a license or permit may be inspected and 14
searched, without a warrant, by: 15
(1) the Comptroller or an authorized deputy, inspector, or clerk of the 16
Comptroller; 17
(2) the Executive Director [of the Commission] or an authorized deputy, 18
inspector, [or] clerk [of the Commission], OR OTHER DESIGNEE OF THE EXECUTIVE 19
DIRECTOR; 20
(3) the local licensing board of the county or city where the place of business 21
is located or an authorized agent or employee of the local licensing board; and 22
(4) a peace officer of the county or city where the place of business is 23
located. 24
6–203. 25
To prevent and detect fraud by manufacturers, wholesalers, and retail dealers, the 26
[Commission] EXECUTIVE DIRECTOR, the local licensing board, and an authorized 27
deputy or inspector of the [Commission] EXECUTIVE DIRECTOR or the local licensing 28
board: 29
42 HOUSE BILL 1165
(1) may use hydrometers, saccharometers, weighing and gauging 1
instruments, or other means, records, or devices to ascertain the quantity or quality of 2
alcohol in an alcoholic beverage as they consider necessary; and 3
(2) may adopt rules and regulations to establish a uniform system of 4
inspection, marking, and gauging of alcoholic beverages. 5
6–204. 6
(a) For a hearing or inquiry that the [Commission] EXECUTIVE DIRECTOR or a 7
local licensing board may hold or make, the [Commission] EXECUTIVE DIRECTOR or a 8
local licensing board may issue summonses for witnesses and administer o aths or 9
affirmations to the witnesses. 10
6–205. 11
(b) The powers and duties conferred on the Comptroller, the Commission, THE 12
EXECUTIVE DIRECTOR, or any other State official by this article do not relieve local 13
officials from the duty of enforcement or prosecution. 14
6–308. 15
(a) This section does not apply to a Class 4 limited winery that brings wine or 16
pomace brandy manufactured on its licensed premises onto a retail licensed premises if: 17
(3) the limited winery or winery trade association complies with any 18
regulations that the [Commission] EXECUTIVE DIRECTOR adopts relating to 19
on–premises promotions and product sampling; 20
6–319. 21
(a) This section does not apply to a Class 4 limited winery that brings wine or 22
pomace brandy manufactured on its licensed premises onto a retail licensed premises if: 23
(3) the limited winery or winery trade association complies with any 24
regulations that the [Comptroller] EXECUTIVE DIRECTOR adopts relating to on–premises 25
promotions and product sampling; 26
6–328. 27
(a) A person may not: 28
(4) violate a regulation that the Comptroller or the [Commission] 29
EXECUTIVE DIRECTOR adopts under this article or the Tax – General Article. 30
9–102. 31 HOUSE BILL 1165 43
This title applies only in Allegany County. 1
9–1403. 2
An application shall include: 3
(1) a statement that the applicant is at least 21 years old; 4
(2) a statement that the applicant, for the issuance or renewal of a license, 5
will produce on request all records that an applicant under this article is required to keep: 6
(i) to the Comptroller, a deputy Comptroller, the county sheriff, THE 7
EXECUTIVE DIRECTOR, or the police of a municipality in the county; or 8
(ii) in a proceeding before the Board or the circuit court for the 9
county relating to the license or business; 10
(3) the names of two persons or the name of a bonding company authorized 11
under this article who will act as a surety on the bond required by the county; 12
(4) a statement of all persons interested in the license, including the name 13
of a business entity on whose behalf the license application is made; and 14
(5) certificates of receipt from the County Tax and Utility Office and the 15
State Department of Assessments and Taxation, showing that, for the calendar year 16
immediately before the year for which the license is to be issued, there are no unpaid taxes 17
on the merchandise, fixtures, or inventory for the business due to the State, county, or 18
municipality in which the licensed activity is to be carried on. 19
11–102. 20
This title applies only in Anne Arundel County. 21
11–206. 22
(a) (1) The Board may employ: 23
(i) one part–time deputy chief inspector at an annual salary of 24
$9,000; and 25
(ii) 18 part–time inspectors at an annual salary of $7,000 each. 26
(2) Each inspector shall receive a monthly expense allowance of $300, 27
subject to the approval of the [Comptroller] EXECUTIVE DIRECTOR. 28
11–207. 29 44 HOUSE BILL 1165
From the fees received, the [Comptroller] EXECUTIVE DIRECTOR shall: 1
(1) approve and remit to the county the amounts necessary to pay the 2
salaries and benefits of the Board and its employees; 3
(2) approve and remit to the county the amount necessary to pay the 4
expenses of the Board; and 5
(3) at the end of each fiscal year, remit the balance of the fees received to 6
the county for the general purposes of the county. 7
11–1406. 8
The Board shall: 9
(1) collect all license fees required under this article; 10
(2) issue all licenses in the county; and 11
(3) remit all fees collected to the [Comptroller] EXECUTIVE DIRECTOR. 12
11–2102. 13
(a) (1) In addition to the revocation and suspension procedures provided under 14
§ 4–603 of this article, the Board may immediately suspend a license if it is alleged by a 15
person specified under paragraph (2) of this subsection that the license holder has sold or 16
provided alcoholic beverages to an individual under the age of 21 years with such frequency 17
and during such a limited time so as to demonstrate a willful failure to comply with § 18
6–304 of this article. 19
(2) An allegation under paragraph (1) of this subsection may be made by: 20
(i) the Comptroller or an agent or employee of the Comptroller; 21
(ii) THE EXECUTIVE DIRECTOR OR AN AGENT OR EMPLOYEE OF 22
THE EXECUTIVE DIRECTOR; 23
(III) the Board or an agent or employee of the Board; or 24
[(iii)] (IV) a peace officer. 25
12–102. 26
This title applies only in Baltimore City. 27
HOUSE BILL 1165 45
12–403. 1
(c) (2) The holder of a Class 7 micro–brewery license may brew in two locations 2
using the same Class 7 micro–brewery license if the license holder: 3
(i) requests permission by submitting a written application to the 4
[Comptroller] EXECUTIVE DIRECTOR; and 5
(ii) obtains written approval from the [Comptroller] EXECUTIVE 6
DIRECTOR. 7
(3) Before authorizing a holder of a Class 7 micro–brewery license to brew 8
in two locations using the same Class 7 micro–brewery license, the [Comptroller] 9
EXECUTIVE DIRECTOR shall: 10
(i) make a determination that a second location to brew additional 11
capacity is necessary due to insufficient space at the existing Class 7 license location; and 12
(ii) consider any other factor relevant to approval of the application. 13
15–102. 14
This title applies only in Caroline County. 15
15–1001. 16
(i) The license holder shall: 17
(1) maintain records of all catered events, on–premises and off–premises, 18
where alcoholic beverages are served; and 19
(2) make the records required under paragraph (1) of this subsection 20
available on request to the Board [or to], the Comptroller, OR THE EXECUTIVE 21
DIRECTOR. 22
15–1309. 23
(c) (2) The records shall be: 24
(i) maintained on the licensed premises for 2 years; and 25
(ii) available for inspection by authorized personnel of the 26
Comptroller, THE EXECUTIVE DIRECTOR, and the Board. 27
46 HOUSE BILL 1165
(d) Authorized personnel of the Comptroller, THE EXECUTIVE DIRECTOR, and 1
the Board may inspect the premises of a license holder as provided under § 6–202 of this 2
article. 3
16–102. 4
This title applies only in Carroll County. 5
16–405. 6
(b) (4) Notwithstanding paragraph (3) of this subsection, if a micro–brewery 7
was established at its licensed premises before a protected building was established within 8
300 feet of the micro–brewery, the [Comptroller] EXECUTIVE DIRECTOR may renew the 9
license of the micro–brewery. 10
19–102. 11
This title applies only in Dorchester County. 12
19–403. 13
(d) (1) The [Comptroller] EXECUTIVE DIRECTOR may issue to a single 14
applicant one Class 6 pub–brewery license or one Class 7 micro–brewery license, but not 15
both, for a location in an enterprise zone in the county, if the applicant holds no more than 16
three Class B beer, wine, and liquor licenses. 17
(2) This subsection does not limit the number of Class 6 pub–brewery 18
licenses that the [Comptroller] EXECUTIVE DIRECTOR may issue in the county. 19
19–404. 20
(c) (1) The [Comptroller] EXECUTIVE DIRECTOR may issue to a single 21
applicant one Class 6 pub–brewery license or one Class 7 micro–brewery license, but not 22
both, for a location in an enterprise zone in the county, if the applicant holds no more than 23
three Class B beer, wine, and liquor licenses. 24
(2) This subsection does not limit the number of Class 7 micro–brewery 25
licenses that the [Comptroller] EXECUTIVE DIRECTOR may issue in the county. 26
20–102. 27
This title applies only in Frederick County. 28
20–1009. 29
(b) The Board may issue the license to a person for use in conjunction with: 30 HOUSE BILL 1165 47
(1) a Class 7 micro–brewery license that the person then obtains from the 1
[Comptroller] EXECUTIVE DIRECTOR; or 2
(2) a Class B beer, wine, and liquor license that the person has been issued 3
by the Board. 4
21–102. 5
This title applies only in Garrett County. 6
21–1311. 7
(c) (1) A license holder shall keep complete and accurate records of all 8
alcoholic beverages purchased and sold on the licensed premises. 9
(2) The records shall be: 10
(i) maintained on the licensed premises for 2 years; and 11
(ii) available for inspection by authorized personnel of the 12
Comptroller, THE EXECUTIVE DIRECTOR, and the Board. 13
(3) The records shall include a completed pre– and post–inventory of all 14
alcoholic beverages for each individual event. 15
(d) Authorized personnel of the Comptroller, THE EXECUTIVE DIRECTOR, and 16
the Board may inspect the premises of a license holder as provided under § 6–202 of this 17
article. 18
23–102. 19
This title applies only in Howard County. 20
23–403. 21
(b) The [Comptroller] EXECUTIVE DIRECTOR may issue the Class 7 22
micro–brewery license not more than 36 months before the restaurant is complete and the 23
Class B beer, wine, and liquor (on–sale) license is issued. 24
23–902. 25
(f) The [Comptroller] EXECUTIVE DIRECTOR may issue one Class 8 farm 26
brewery license and one Class 7 micro–brewery license to a license holder that holds not 27
more than five Class B and six Class BLX beer, wine, and liquor licenses. 28
24–102. 29 48 HOUSE BILL 1165
This title applies only in Kent County. 1
24–1310. 2
(c) (1) A license holder shall keep complete and accurate records of all 3
alcoholic beverages purchased and sold on the licensed premises. 4
(2) The records shall be: 5
(i) maintained on the licensed premises for 2 years; and 6
(ii) available for inspection by authorized personnel of th e 7
Comptroller, THE EXECUTIVE DIRECTOR, and the Board. 8
(3) The records shall include a completed pre– and post–inventory of all 9
alcoholic beverages for each individual event. 10
(d) Authorized personnel of the Comptroller, THE EXECUTIVE DIRECTOR, and 11
the Board may inspect the premises of a license holder as provided under § 6–202 of this 12
article. 13
25–102. 14
This title applies only in Montgomery County. 15
25–314. 16
(a) A supplier may enter into an agreement with a wholesaler or an authorized 17
representative of a wholesaler to replace, directly or indirectly, stale or out–of–date malt 18
beverage products on retail licensed premises: 19
(3) under a plan that the [Comptroller] EXECUTIVE DIRECTOR approves. 20
(b) (1) If a wholesaler refuses to replace stale or out–of–date malt beverage 21
products on retail licensed premises under the plan described in subsection (a)(3) of this 22
section, the supplier may unilaterally submit a replacement plan to the [Comptroller] 23
EXECUTIVE DIRECTOR for approval. 24
(2) The replacement plan that the supplier unilaterally submits to the 25
[Comptroller] EXECUTIVE DIRECTOR may include the designation of an authorized 26
representative or wholesaler outside the territory of the wholesaler who refuses to 27
participate in the plan. 28
25–405. 29
HOUSE BILL 1165 49
(c) The [Commission] EXECUTIVE DIRECTOR may not issue more than an 1
aggregate amount of two Class 7 micro–brewery licenses to holders of Class D beer and 2
wine licenses in the Town of Kensington. 3
(e) (2) The holder of a Class 7 micro–brewery license may brew in two locations 4
using the same Class 7 micro–brewery license if the license holder: 5
(i) requests permission by submitting a written application to the 6
[Commission] EXECUTIVE DIRECTOR; and 7
(ii) obtains written approval from the [Commission] EXECUTIVE 8
DIRECTOR. 9
(3) Before authorizing a holder of a Class 7 micro–brewery license to brew 10
in two locations using the same Class 7 micro–brewery license, the [Commission] 11
EXECUTIVE DIRECTOR shall: 12
(i) make a determination that a second location to brew additional 13
capacity is necessary due to insufficient space at the existing Class 7 license location; and 14
(ii) consider any other factor relevant to approval of the application. 15
30–102. 16
This title applies only in Talbot County. 17
30–403. 18
(b) The [Comptroller] EXECUTIVE DIRECTOR shall specify which local license 19
is the equivalent of the Class B beer, wine, and liquor license specified in § 2–208(b) of this 20
article. 21
30–404. 22
(b) The [Comptroller] EXECUTIVE DIRECTOR shall specify which local license 23
is the equivalent of the Class B beer, wine, and liquor license specified in § 2–209(b) of this 24
article. 25
31–102. 26
This title applies only in Washington County. 27
31–404. 28
(c) The [Comptroller] EXECUTIVE DIRECTOR may not issue a license for 29
premises on property that has been leased unless the landlord of the property presents to 30 50 HOUSE BILL 1165
the [Comptroller] EXECUTIVE DIRECTOR a receipt or certificate showing that there are 1
no unpaid taxes due to the State, a county, or any local government from the landlord or 2
any entity in which the landlord has a direct or indirect interest that: 3
(1) is proprietary; or 4
(2) has been obtained by a loan, mortgage, or lien, or in any other manner. 5
31–1007. 6
(h) A license holder shall allow the [Commission] EXECUTIVE DIRECTOR or the 7
[Commission’s] EXECUTIVE DIRECTOR’S designee, the Board or the Board’s designee, or 8
a peace officer of the county, to inspect and search the licensed premises at any time. 9
32–102. 10
This title applies only in Wicomico County. 11
32–311. 12
(a) (1) The Liquor Control Board shall: 13
(i) keep accurate records of: 14
1. all purchases of alcoholic beverages; and 15
2. a complete statement of the business conducted by the 16
Liquor Control Board and the operational achievements of the dispensary system; and 17
(ii) submit annual and monthly reports to the County Council. 18
(2) The records shall be open to inspection by the Comptroller OR THE 19
EXECUTIVE DIRECTOR during regular business hours. 20
32–312. 21
(a) A supplier may enter into an agreement with a wholesaler or authorized 22
representative of a wholesaler to replace, directly or indirectly, stale or out–of–date malt 23
beverage products on retail licensed premises: 24
(3) under a plan that the [Comptroller] EXECUTIVE DIRECTOR approves. 25
(b) (1) If a wholesaler refuses to replace stale or out–of–date malt beverage 26
products on retail licensed premises under the plan described in subsection (a)(3) of this 27
section, the supplier may unilaterally submit a replacement plan to the [Comptroller] 28
EXECUTIVE DIRECTOR for approval. 29 HOUSE BILL 1165 51
(2) The replacement plan that the supplier unilaterally submits to the 1
[Comptroller] EXECUTIVE DIRECTOR may include the designation of an authorized 2
representative or wholesaler outside the territory of the wholesaler who refuses to 3
participate in the plan. 4
32–403. 5
(b) Before the [Comptroller] EXECUTIVE DIRECTOR may issue a Class 6 6
pub–brewery license in the county, the [Comptroller] EXECUTIVE DIRECTOR shall 7
forward a copy of the application to the Board. 8
(c) The Board shall: 9
(1) review the application; 10
(2) hold a public hearing on the application; and 11
(3) recommend to the [Comptroller] EXECUTIVE DIRECTOR whether or 12
not to issue the license. 13
32–405. 14
(a) The [Comptroller] EXECUTIVE DIRECTOR may issue one Class 6 15
pub–brewery license or one Class 7 micro–brewery license, but not both, for a location in 16
an enterprise zone, to a person that holds not more than five Class B beer, wine, and liquor 17
licenses. 18
32–1001. 19
(i) The license holder shall: 20
(1) maintain records of all catered events where alcoholic beverages are 21
served; and 22
(2) make the records required under item (1) of this subsection available 23
on request to the Board, THE EXECUTIVE DIRECTOR, or [to] the Comptroller. 24
33–102. 25
This title applies only in Worcester County. 26
33–309. 27
(a) (1) The Department shall keep accurate records of: 28
52 HOUSE BILL 1165
(i) all purchases of alcoholic beverages; and 1
(ii) a complete statement of the business conducted by the 2
Department and the operational achievements of the dispensary system. 3
(2) The records shall be open to inspection by the Comptroller OR THE 4
EXECUTIVE DIRECTOR during regular business hours. 5
33–504. 6
(b) (1) (i) A wholesaler may not intentionally deliver beer to a retail dealer 7
to whom any wholesaler has extended credit under this section if the retail dealer: 8
1. fails to pay the balance owed or makes a payment on the 9
debt by bad check; and 10
2. is currently listed on the county beer credit control list in 11
accordance with regulations that the [Comptroller] EXECUTIVE DIRECTOR issues. 12
(ii) A wholesaler who violates this paragraph is subject to a fine not 13
exceeding $1,000 for each delivery. 14
(4) (i) A retail dealer may request a hearing with the [Comptroller] 15
EXECUTIVE DIRECTOR within 10 days after being listed on the county beer credit control 16
list for failure to comply with this section. 17
(ii) The [Comptroller] EXECUTIVE DIRECTOR shall remove 18
immediately from the county beer credit control list a retail dealer who requests a hearing, 19
pending the disposition of the hearing. 20
(d) The [Comptroller] EXECUTIVE DIRECTOR shall enforce subsections (a) and 21
(b) of this section and shall adopt regulations to carry out those subsections. 22
Article – Business Regulation 23
16–308.2. 24
(a) In this section, “unpackaged cigarette” means any cigarette not contained in 25
a sealed package of 20 or more cigarettes that are designed and intended to be sold as a 26
unit. 27
(b) This section applies only in Baltimore City. 28
(c) A person who holds a county license may not sell an unpackaged cigarette. 29
HOUSE BILL 1165 53
(d) (1) An enforcement officer of the Tobacco Use Prevention and Cessation 1
Program in the Baltimore City Health Department may enforce this section by entering 2
and inspecting, at a reasonable time, the premises of a county license holder. 3
(2) An enforcement officer shall report a violation of this section to a State’s 4
Attorney. 5
(e) Issuance of a citation by the Comptroller OR THE EXECUTIVE DIRECTOR for 6
a violation of § 16–215 of this title precludes a prosecution for a violation under this section 7
arising out of the same incident. 8
17–101. 9
(a) In this title the following words have the meanings indicated. 10
(b) “Goods” means tangible personal property, items of trade, merchandise, or 11
other types of products sold at wholesale or retail. 12
(c) “EXECUTIVE DIRECTOR” MEANS THE EXECUTIVE DIRECTOR OF THE 13
ALCOHOL AND TOBACCO COMMISSION. 14
(D) “License” means a license issued under this title. 15
[(d)] (E) (1) “Sale” means the exchange or transfer, or the agreement to 16
change or transfer, title or possession of goods in any manner for consideration. 17
(2) “Sale” includes barter. 18
[(e)] (F) “Sell” includes barter. 19
[(f)] (G) “Stock–in–trade” means: 20
(1) goods held for sale and reported as inventory on the Business Personal 21
Property Tax Return filed with the State Department of Assessments and Taxation; or 22
(2) except for alcoholic beverages, goods held for sale and reported as 23
inventory on the Business Personal Property Tax Return filed with the State Department 24
of Assessments and Taxation for determining the valuation of a trader’s license under 25
Subtitle 18 of this title. 26
[(g)] (H) “Trader” means a person who operates a room or other place of business 27
for selling goods, including goods sold at auction. 28
[(h)] (I) “Trader’s license” means a license issued by the clerk to do business as 29
a trader. 30
54 HOUSE BILL 1165
17–202. 1
(a) The Comptroller OR THE EXECUTIVE DIRECTOR shall enforce this title. 2
(b) (1) The Comptroller: 3
(i) shall appoint a chief license inspector; and 4
(ii) may appoint assistant license inspectors. 5
(2) The chief license inspector and each assistant license inspector is 6
entitled to: 7
(i) compensation in accordance with the State budget; and 8
(ii) reimbursement for expenses under the Standard State Travel 9
Regulations, as provided in the State budget. 10
(c) The Comptroller may delegate any power or duty of the Comptroller under 11
this title. 12
(d) To enforce this title, the Comptroller may make investigations and hold 13
hearings on any matter covered by this title, at any time or place in the State, and, in 14
connection with an investigation or hearing, may: 15
(1) administer oaths; 16
(2) examine witnesses; 17
(3) receive evidence; and 18
(4) issue subpoenas for the attendance of witnesses to testify or to produce 19
evidence. 20
(e) The Comptroller shall make all license materials, including stickers, available 21
to the clerks on or before April 1 each year. 22
(f) THE EXECUTIVE DIRECTOR, OR AN OFFICER OF THE FIELD 23
ENFORCEMENT DIVISION OF THE ALCOHOL AND TOBACCO COMMISSION, MAY 24
MAKE INVESTIGATIONS AND ISSUE CITATIONS TO ENFORCE THIS TITL E. 25
(G) The Comptroller may adopt regulations to: 26
(1) carry out this title; and 27
(2) define any term used in this title. 28
HOUSE BILL 1165 55
17–2104. 1
With the approval of the Comptroller OR THE EXECUTIVE DIRECTOR, AS 2
APPROPRIATE , the chief license inspector [or], an assistant license inspector, OR AN 3
AGENT OF THE FIELD ENFORCEMENT DIVISION OF THE ALCOHOL AND TOBACCO 4
COMMISSION shall begin proceedings to prosecute each person who: 5
(1) is required to get a license from a clerk under this title; but 6
(2) fails to get the license or to pay an adequate license fee. 7
Article – Commercial Law 8
11–501. 9
(a) In this subtitle the following words have the meanings indicated. 10
(b) “Basic cost of cigarettes” means the lesser of the invoice cost or the 11
replacement cost of cigarettes to the retailer or wholesaler; plus any in–freight charge to 12
the wholesaler otherwise not included in the invoice cost or the replacement cost; plus, for 13
the wholesaler, the full face value of any applicable Maryland cigarette tax payable by the 14
wholesaler; minus any trade discount or discount for cash. 15
(c) (1) “Cigarettes” means any size or shaped roll for smoking that is made of 16
tobacco or tobacco mixed with another ingredient and wrapped in paper or in any other 17
material except tobacco. 18
(2) “Cigarettes” does not include cigars. 19
(d) (1) “Cost to the retailer”, subject to the special cost provisions of § 11–503 20
of this subtitle, means the basic cost of cigarettes to a retailer, which includes the cost to a 21
wholesaler, plus a markup to cover his cost of doing business, which cost of doing business, 22
in the absence of satisfactory proof of a lesser cost, is presumed to be 8 percent of the basic 23
cost of cigarettes to him. 24
(2) As to each carton of 200 cigarettes, a fractional part of a cent equal to 25
one–tenth of a cent or more in the cost to the retailer shall be rounded off to the next higher 26
cent. 27
(e) (1) “Cost to the wholesaler”, subject to the special cost provisions of § 28
11–503 of this subtitle, means the basic cost of cigarettes to a wholesaler, plus a markup to 29
cover his cost of doing business, which cost of doing business: 30
(i) Includes the cartage cost to a retailer; and 31
(ii) In the absence of satisfactory proof of a lesser cost, is presumed 32
to be 5 percent of the basic cost of cigarettes to him. 33 56 HOUSE BILL 1165
(2) As to each carton of 200 cigarettes, a fractional part of a cent equal to 1
one–tenth of a cent or more in the cost to the wholesaler shall be rounded off to the next 2
higher cent. 3
(f) (1) “EXECUTIVE DIRECTOR” MEANS THE EXECUTIVE DIRECTOR OF 4
THE ALCOHOL AND TOBACCO COMMISSION. 5
(2) “EXECUTIVE DIRECTOR” INCLUDES A DEPUTY , AN INSPECTOR, A 6
CLERK, OR ANY OTHER INDIVID UAL AUTHORIZED TO AC T BY THE EXECUTIVE 7
DIRECTOR. 8
(G) “Person” includes an individual, corporation, business trust, statutory trust, 9
estate, trust, partnership, association, two or more persons having a joint or common 10
interest, or any other legal or commercial entity. 11
[(g)] (H) “Replacement cost” means the cost per unit for which the cigarettes 12
could have been bought by the wholesaler or retailer at any time within 30 days before the 13
date of sale by him if bought in the same quantity as his last purchase of the cigarettes. 14
[(h)] (I) “Retail sale of cigarettes” includes any sale whereby cigarettes are sold 15
for a valuable consideration, including an exchange or barter and a sale through a vending 16
machine, made in the ordinary course of trade or the usual conduct of the seller’s business 17
to a purchaser for consumption or use other than resale. 18
[(i)] (J) (1) “Retailer” includes any person engaged in the business of making 19
retail sales of cigarettes within the State at a store, stand, booth, or concession, through 20
vending machines, or otherwise. 21
(2) If the person is engaged in the business of making both retail sales of 22
cigarettes and wholesale sales of cigarettes, the word only applies to the retail sales of 23
cigarettes portion of the business. 24
[(j)] (K) “Sell” includes advertise, offer to sell, or offer for sale. 25
[(k)] (L) “Vending machine operator” means a person who: 26
(1) Makes retail sales of cigarettes or has cigarettes in his possession with 27
the intent to sell them exclusively at retail through the medium of a vending machine or 28
any other mechanical device used for dispensing cigarettes; 29
(2) Owns, operates, and services vending machines or other mechanical 30
devices used to dispense cigarettes on 40 or more premises; and 31
HOUSE BILL 1165 57
(3) Services the machines or devices by maintaining an established place 1
of business for the purchase of cigarettes, including warehousing facilities for the storage 2
and distribution of cigarettes. 3
[(l)] (M) (1) “Wholesale sale of cigarettes” includes any sale whereby 4
cigarettes are sold for a valuable consideration, made in the ordinary course of trade or in 5
the usual conduct of the seller’s business to a retailer, other than to a vending machine 6
operator or to a sub–wholesaler described in subsection (m)(2) of this section, for the bona 7
fide purpose of resale. 8
(2) “Wholesale sale of cigarettes” includes any transfer of cigarettes on 9
consignment or otherwise, whereby title is retained by the seller as security for the payment 10
of the purchase price. 11
[(m)] (N) (1) “Wholesaler” means a person who purchases cigarettes directly 12
from a manufacturer. 13
(2) “Wholesaler” includes a person, who, as a sub–wholesaler: 14
(i) Purchases cigarettes from another wholesaler solely for the 15
purpose of bona fide resale to retailers other than those directly or indirectly owned, 16
affiliated, or controlled by him; and 17
(ii) Services the retailers by maintaining an established place of 18
business for the sale of cigarettes, including warehouse facilities, adequate inventory, 19
proper accounting records, and necessary equipment and vehicles for the storage and 20
distribution of cigarettes. 21
(3) If the person is engaged in the business of making both wholesale sales 22
of cigarettes and retail sales of cigarettes, the word only applies to the wholesale sales of 23
cigarettes portion of the business. 24
11–506. 25
(a) In any proceeding under this subtitle, including a proceeding relating to 26
licenses before the [State Comptroller] EXECUTIVE DIRECTOR, proof of a sale by a 27
retailer or a wholesaler of cigarettes or of any other item in combination or in connection 28
with cigarettes at less than their cost to the retailer or their cost to the wholesaler, 29
respectively, is prima facie evidence of intent to injure a competitor or to destroy or 30
substantially lessen competition. 31
(b) In determining cost to the retailer or cost to the wholesaler, the [State 32
Comptroller] EXECUTIVE DIRECTOR or the court shall receive and consider evidence: 33
(1) That the person complained against purchased cigarettes at a fictitious 34
price or on terms, in a manner, or under invoices which conceal the true costs, discounts, 35
or terms of purchase; and 36 58 HOUSE BILL 1165
(2) Of the normal, customary, and prevailing terms and discounts in 1
connection with other sales of a similar nature in the trade area. 2
11–507. 3
(a) It is the duty of the [State Comptroller] EXECUTIVE DIRECTOR to enforce 4
this subtitle. 5
(b) The [State Comptroller] EXECUTIVE DIRECTOR shall: 6
(1) Employ and determine the duties and compensation of the inspectors 7
and other personnel necessary to enforce this subtitle; and 8
(2) Adopt reasonable rules and regulations necessary to effectuate and 9
enforce the policies of this subtitle. 10
11–508. 11
(a) (1) On complaint of the [State Comptroller] EXECUTIVE DIRECTOR or 12
any person affected, a circuit court has jurisdiction to: 13
(i) Enjoin a retailer or wholesaler from the commission of any act 14
prohibited by this subtitle; and 15
(ii) Award damages and costs. 16
(2) In an action for injunctive relief, it is not necessary for the complainant 17
to allege or prove that an adequate remedy at law does not exist or that the complainant 18
has suffered actual damages. 19
(b) If injunctive relief is not sought or required, an injured person may institute 20
an action for damages in any court of competent jurisdiction. 21
(c) On violation of this subtitle, the [State Comptroller] EXECUTIVE DIRECTOR 22
shall suspend or revoke the cigarette license of the offender required by § 16–210 of the 23
Business Regulation Article. 24
11–5A–01. 25
(a) In this subtitle the following words have the meanings indicated. 26
(b) “EXECUTIVE DIRECTOR” HAS THE MEANING STATED IN § 11–501 OF 27
THIS TITLE. 28
(C) “Retailer” has the meaning stated in [§ 11–501(i)] § 11–501 of this title. 29 HOUSE BILL 1165 59
[(c)] (D) “Sell” has the meaning stated in [§ 11–501(j)] § 11–501 of this title. 1
[(d)] (E) “Unpackaged cigarette” means any cigarette not contained in a sealed 2
package of 20 or more cigarettes. 3
[(e)] (F) “Vending machine operator” has the meaning stated in [§ 11–501(k)] § 4
11–501 of this title. 5
[(f)] (G) “Wholesaler” has the meaning stated in [§ 11–501(m)] § 11–501 of this 6
title. 7
11–5A–03. 8
(a) The [State Comptroller] EXECUTIVE DIRECTOR shall enforce this subtitle. 9
(b) The [State Comptroller] EXECUTIVE DIRECTOR shall: 10
(1) Employ and determine the duties and compensation of the inspectors 11
and other personnel necessary to enforce this subtitle; and 12
(2) Adopt reasonable regulations necessary to effectuate and enforce the 13
provisions of this subtitle. 14
Article – Courts and Judicial Proceedings 15
5–523. 16
(a) (1) In this section[,] THE FOLLOWING WORDS HAVE THE MEANINGS 17
INDICATED. 18
(2) “Comptroller” means the Comptroller of the State. 19
(3) “EXECUTIVE DIRECTOR” MEANS THE EXECUTIVE DIRECTOR OF 20
THE ALCOHOL AND TOBACCO COMMISSION. 21
(b) If, in good faith and with reasonable grounds, the Comptroller, THE 22
EXECUTIVE DIRECTOR, or a peace officer of the State seizes contraband property or a 23
conveyance used to transport contraband property under § 13–835 of the Tax – General 24
Article, the Comptroller, EXECUTIVE DIRECTOR, or peace officer is not civilly or 25
criminally liable for the seizure. 26
Article – Criminal Law 27
10–107. 28
60 HOUSE BILL 1165
(b) (2) A person who distributes tobacco products for commercial purposes, 1
including a person licensed under Title 16, TITLE 16.5, TITLE 16.7, OR TITLE 16.9 of the 2
Business Regulation Article, may not distribute to an individual under the age of 21 years: 3
(i) a tobacco product; 4
(ii) tobacco paraphernalia; or 5
(iii) a coupon redeemable for a tobacco product. 6
10–108. 7
(a) A person who distributes products containing delta –8– or 8
delta–10–tetrahydrocannabinol, including a person licensed under Title 16, Title 16.5, Title 9
16.7, TITLE 16.9, or Title 17 of the Business Regulation Article, may not distribute, 10
purchase for sale, or sell a product containing delta–8– or delta–10–tetrahydrocannabinol 11
to an individual under the age of 21 years. 12
Article – Health – General 13
18–213. 14
(a) (5) “Law enforcement officer” means any person who, in an official 15
capacity, is authorized by law to make arrests and who is a member of one of the following 16
law enforcement agencies: 17
(i) The Department of State Police; 18
(ii) The Baltimore City Police Department; 19
(iii) The police department, bureau, or force of any county; 20
(iv) The police department, bureau, or force of any incorporated city 21
or town; 22
(v) The office of the sheriff of any county; 23
(vi) The police department, bureau, or force of any bicounty agency 24
or constituent institution of the University System of Maryland, Morgan State University, 25
St. Mary’s College, or of any institution under the jurisdiction of the Maryland Higher 26
Education Commission; 27
(vii) The Maryland Transit Administration police force of the 28
Department of Transportation, the Maryland Transportation Authority Police Force, and 29
the Maryland Port Administration police force of the Department of Transportation; 30
HOUSE BILL 1165 61
(viii) The law enforcement officers of the Department of Natural 1
Resources; 2
(ix) The Field Enforcement Bureau of the Comptroller’s Office; 3
(x) THE FIELD ENFORCEMENT DIVISION OF THE ALCOHOL 4
AND TOBACCO COMMISSION; 5
(XI) The Crofton Police Department; 6
[(xi)] (XII) The Intelligence and Investigative Division of the 7
Department of Public Safety and Correctional Services; or 8
[(xii)] (XIII) The Ocean Pines Police Department. 9
24–307. 10
(b) A person who distributes tobacco products for commercial purposes, including 11
a person licensed under Title 16, TITLE 16.5, TITLE 16.7, OR TITLE 16.9 of the Business 12
Regulation Article, may not distribute to an individual under the age of 21 years: 13
(1) A tobacco product; 14
(2) Tobacco paraphernalia; or 15
(3) A coupon redeemable for a tobacco product. 16
(c) (1) A person who violates subsection (b) of this section is subject to a civil 17
penalty not exceeding: 18
(i) $300 for a first violation; 19
(ii) $1,000 for a second violation occurring within 24 months after 20
the first violation; and 21
(iii) $3,000 for each subsequent violation occurring within 24 months 22
after the preceding violation. 23
(2) The local health departments shall report violations of subsection (b) of 24
this section to the [Comptroller’s Office] EXECUTIVE DIRECTOR OF THE ALCOHOL AND 25
TOBACCO COMMISSION. 26
(3) Issuance of a civil citation for a violation of this section precludes 27
prosecution under § 10–107 of the Criminal Law Article arising out of the same violation. 28
62 HOUSE BILL 1165
(4) If a violation is committed by a person acting on behalf of a retailer, the 1
civil penalty imposed under paragraph (1) of this subsection shall be paid by the retailer. 2
(f) (1) The Maryland Department of Health, in collaboration and consultation 3
with the Office of the Comptroller, THE EXECUTIVE DIRECTOR OF THE ALCOHOL AND 4
TOBACCO COMMISSION, local health departments, and local law enforcement agencies, 5
shall develop ongoing strategies for enforcement of §§ 10–107 and 10–108 of the Criminal 6
Law Article. 7
Article – Tax – General 8
1–101. 9
(a) In this article the following words have the meanings indicated. 10
(G–2) (1) “EXECUTIVE DIRECTOR” MEANS THE EXECUTIVE DIRECTOR OF 11
THE ALCOHOL AND TOBACCO COMMISSION. 12
(2) “EXECUTIVE DIRECTOR” INCLUDES A DEPUTY , AN INSPECTOR , 13
OR ANY OTHER INDIVID UAL ACTING WITHIN TH E SCOPE OF THE EXECUTIVE 14
DIRECTOR’S AUTHORITY. 15
1–205. 16
(b) Before any license or permit issued by the Comptroller OR THE EXECUTIVE 17
DIRECTOR may be renewed, the Comptroller shall verify that the applicant has paid all 18
undisputed taxes and unemployment insurance contributions payable to the Comptroller 19
or the Secretary of Labor or that the applicant has provided for payment in a manner 20
satisfactory to the unit responsible for collection. 21
2–102. 22
(b) In cooperation with the Executive Director [of the Alcohol and Tobacco 23
Commission], and in addition to the duties set forth elsewhere in this article and in other 24
articles of the Code, the Comptroller shall administer the laws that relate to: 25
(1) the alcoholic beverage tax; and 26
(2) the tobacco tax. 27
2–103. 28
The Comptroller shall adopt reasonable regulations: 29
(1) to administer the provisions of the tax laws listed in § 2–102(a) of this 30
subtitle; and 31 HOUSE BILL 1165 63
(2) in cooperation with the Executive Director [of the Alcohol and Tobacco 1
Commission], to administer the provisions of the tax laws listed in § 2–102(b) of this 2
subtitle. 3
2–105. 4
(b) The Comptroller: 5
(1) shall determine: 6
(i) the design of tax stamps [and] OR certificates required for the 7
alcoholic beverage tax and for the tobacco tax; and 8
(ii) the form of any other evidence of tax payment; and 9
(2) may adopt any other method or device that the Comptroller considers 10
necessary to: 11
(i) prevent fraud or evasion of the alcoholic beverage tax; or 12
(ii) comply with any restrictions that the federal government 13
imposes on alcoholic beverages during a war or an emergency. 14
(c) In cooperation with the Executive Director [of the Alcohol and Tobacco 15
Commission], the Comptroller: 16
(1) shall provide tax stamps [and] OR certificates to indicate that the 17
alcoholic beverage tax or tobacco tax has been paid; and 18
(2) may adopt reasonable regulations to prevent abuse but ensure the 19
adequate availability of tax stamps and certificates, including regulations that: 20
(i) limit excessive disbursement of tax stamps and certificates; and 21
(ii) require proof of need for tax stamps and certificates. 22
2–107. 23
(e) On or before October 1 each year, the Executive Director [of the Alcohol and 24
Tobacco Commission] shall report to the General Assembly, in accordance with § 2–1257 of 25
the State Government Article, on: 26
(1) the aggregate number of licensed tobacco retailers that committed a 27
violation of § 10–107 of the Criminal Law Article and the aggregate number of minors who 28
committed a violation of § 10–107 of the Criminal Law Article during the reporting period; 29 64 HOUSE BILL 1165
(2) the number of prior violations for licensed tobacco retailers and minors 1
that committed a violation during the reporting period; and 2
(3) the subsequent action taken by the Executive Director against each 3
violator and, for each action taken, the number of violations committed by the violator. 4
2–108. 5
If, in good faith and with reasonable grounds, the Comptroller, THE EXECUTIVE 6
DIRECTOR, or a peace officer of the State seizes contraband property or a conveyance used 7
to transport contraband property under § 13–835 of this article, the Comptroller, THE 8
EXECUTIVE DIRECTOR, or peace officer shall have the immunity from liability described 9
under § 5–523 of the Courts and Judicial Proceedings Article. 10
2–303. 11
The Comptroller shall distribute the proceeds from sales of contraband alcoholic 12
beverages and conveyances under § 13–841(a) OR (D) of this article to the General Fund. 13
5–101. 14
(a) In this title the following words have the meanings indicated. 15
[(m) “Tax stamp” means a device in the design and deno mination that the 16
Comptroller authorizes for the purpose of being affixed to a container of distilled spirits as 17
evidence that the alcoholic beverage tax is paid.] 18
[(n)] (M) (1) “Wholesaler” means a person who buys or imports an alcoholic 19
beverage for sale to another person for resale. 20
(2) “Wholesaler” includes a county department of liquor control, a liquor 21
control board, or the Alcohol Beverage Services for Montgomery County that operates a 22
wholesale dispensary. 23
[(o)] (N) (1) “Wine” means a fermented alcoholic beverage. 24
(2) “Wine” includes: 25
(i) carbonated, flavored, imitation, sparkling, or still wine; 26
(ii) champagne; 27
(iii) cider; 28
(iv) fortified wine; 29 HOUSE BILL 1165 65
(v) perry; 1
(vi) sake; and 2
(vii) vermouth. 3
12–203. 4
(b) A wholesaler shall: 5
(1) keep the records required under subsection (a) of this section for a 6
period of 6 years or for a shorter period that the Comptroller authorizes; and 7
(2) allow the Comptroller OR THE EXECUTIVE DIRECTOR to examine the 8
records. 9
12–204. 10
(a) The Comptroller shall adopt regulations that: 11
(1) require an out–of–state seller to maintain records of the cost of 12
premium cigars and pipe tobacco acquired for sale into the State; and 13
(2) specify the period for which an out–of–state seller must maintain the 14
records required under item (1) of this subsection. 15
(b) An out–of–state seller shall allow the Comptroller OR THE EXECUTIVE 16
DIRECTOR to examine the records maintained in accordance with subsection (a) of this 17
section. 18
13–710. 19
If the Comptroller, THE EXECUTIVE DIRECTOR, or any police officer seizes distilled 20
spirits or mash in connection with an arrest of a person for the unlawful manufacture of 21
distilled spirits in the State, on conviction of the person, the Comptroller shall assess a 22
penalty of $5 for each 100 proof gallon on: 23
(1) all distilled spirits seized; or 24
(2) the potential quantity of distilled spirits that may be manufactured 25
from the quantity of mash seized. 26
13–835. 27
(a) The Comptroller, THE EXECUTIVE DIRECTOR, or a peace officer of the State 28
may: 29 66 HOUSE BILL 1165
(1) seize contraband alcoholic beverages or contraband tobacco products in 1
the State without a warrant; 2
(2) stop and search a conveyance in the State if the Comptroller, THE 3
EXECUTIVE DIRECTOR, or officer knows or has reason to suspect that the conveyance is 4
being used to transport in the State contraband tobacco products having a retail value of 5
$100 or more or contraband alcoholic beverages; and 6
(3) seize a conveyance being used in the State to transport contraband 7
alcoholic beverages or contraband tobacco products. 8
13–836. 9
(a) (1) If contraband alcoholic beverages or contraband tobacco products are 10
seized: 11
(i) the Comptroller, THE EXECUTIVE DIRECTOR, or police officer 12
shall give a notice of seizure to the person from whom the property is seized at the time of 13
the seizure; and 14
(ii) the Comptroller OR THE EXECUTIVE DIRECTOR shall: 15
1. where possible, give a notice of seizure to the registered 16
owner of a seized conveyance; and 17
2. publish a notice of seizure of the conveyance in a 18
newspaper of general circulation in the county where the seizure occurred. 19
(b) (1) A police officer who seizes a conveyance used to transport contraband 20
alcoholic beverages promptly shall notify the Comptroller AND THE EXECUTIVE 21
DIRECTOR of the seizure. 22
(2) A police officer who seizes any contraband tobacco products or 23
conveyance used to transport contraband tobacco products shall deliver the seized 24
cigarettes or other tobacco products and conveyance to the Comptroller OR THE 25
EXECUTIVE DIRECTOR, AS APPROPRIATE . 26
13–837. 27
The owner or another person with an interest in seized property may file a claim for 28
the return of the property with the Comptroller OR THE EXECUTIVE DIRECTOR within 29
30 days after: 30
(1) the seizure of alcoholic beverages, cigarettes, other tobacco products, 31
motor fuel or conveyances used to transport motor fuel; or 32 HOUSE BILL 1165 67
(2) a notice of seizure of a conveyance used to transport alcoholic beverages, 1
cigarettes, or other tobacco products is published. 2
13–838. 3
(b) (3) Absent a finding under paragraph (2) of this subsection, the 4
Comptroller OR THE EXECUTIVE DIRECTOR, AS APPROPRIATE , in the best interest of 5
the State may: 6
(i) pay the outstanding indebtedness secured by the lawful lien and 7
keep the property; or 8
(ii) deliver the property to the lien holder. 9
13–839. 10
(a) If a person files a claim for return of seized alcoholic beverages, cigarettes, 11
other tobacco products, or a conveyance used for their transportation under § 13–837 of this 12
subtitle, the Comptroller, THE EXECUTIVE DIRECTOR, or [the Comptroller’s] THEIR 13
designee shall: 14
(1) promptly act on the request and hold an informal hearing; 15
(2) direct the return of alcoholic beverages, cigarettes, or other tobacco 16
products unless the Comptroller, THE EXECUTIVE DIRECTOR, or [Comptroller’s] THEIR 17
designee has satisfactory proof that the person was not in compliance with any provisions 18
of Title 5 or Title 12 of this article at the time of seizure; and 19
(3) direct the return of the conveyance if the Comptroller, THE 20
EXECUTIVE DIRECTOR, or [Comptroller’s] THEIR designee has satisfactory proof that 21
the owner of the conveyance was not willfully evading any provisions of Title 5 or Title 12 22
of this article at the time of seizure. 23
(b) The Comptroller, THE EXECUTIVE DIRECTOR, or [Comptroller’s] THEIR 24
designee shall grant or deny the application for return of seized alcoholic beverages, 25
cigarettes, other tobacco products, or a conveyance in accordance with subsection (a) of this 26
section by mailing the person a notice of final determination. 27
13–841. 28
(a) (1) Contraband alcoholic beverages that are seized under this title and 29
forfeited may be disposed of or destroyed in the manner allowed under §§ 6–105, 6–106, 30
and 6–328 of the Alcoholic Beverages Article. 31
68 HOUSE BILL 1165
(2) The Comptroller OR THE EXECUTIVE DIRECTOR, AS APPROPRIATE , 1
shall sell at public auction a conveyance that is seized under this title in connection with 2
contraband alcoholic beverages and forfeited. 3
(b) (1) The Comptroller OR THE EXECUTIVE DIRECTOR, AS APPROPRIATE , 4
shall sell contraband tobacco products seized under this title and forfeited to a State 5
institution, a nonprofit charitable institution, a licensed cigarette wholesaler, or a licensed 6
cigarette manufacturer in the manner the Comptroller OR EXECUTIVE DIRECTOR 7
determines. 8
(2) The Comptroller OR THE EXECUTIVE DIRECTOR, AS APPROPRIATE , 9
shall sell at public auction a conveyance that is seized under this title in connection with 10
contraband tobacco products and forfeited. 11
(d) (1) In the manner required under Title 2 of this article for distributions of 12
revenue, the Comptroller shall distribute the net proceeds from the sale of any conveyance 13
or other property under this section after paying: 14
[(1)] (I) the costs incurred in conjunction with the seizure and disposal of 15
the property; 16
[(2)] (II) the cost of the sale; and 17
[(3)] (III) any bona fide lien against the conveyance. 18
(2) IF THE EXECUTIVE DIRECTOR SELLS AT PUBLIC AUCT ION A 19
CONVEYANCE OR OTHER PROPERTY S EIZED UNDER THIS SEC TION, THE EXECUTIVE 20
DIRECTOR SHALL TRANSF ER THE NET PROCEEDS OF THE SALE TO THE 21
COMPTROLLER FOR DISTR IBUTION UNDER TITLE 2 OF THIS ARTICLE. 22
[13–1011. 23
A person who counterfeits an alcoholic beverage tax stamp, as defined in § 5–101 of 24
this article, or certificate is guilty of a crime and, on conviction, is subject to a fine not 25
exceeding $10,000 or imprisonment not exceeding 5 years or both.] 26
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 27
1, 2023. 28