EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0565*
HOUSE BILL 565
A1 3lr1458
CF SB 431
By: Washington County Delegation
Introduced and read first time: February 3, 2023
Assigned to: Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Alcoholic Beverages – Class 9 Limited Distillery License – Self–Distribution 2
FOR the purpose of authorizing a holder of a Class 9 limited distillery license to sell and 3
deliver alcoholic beverages manufactured under the license in bulk to a person in the 4
State that is authorized to acquire them and to a person outside the State that is 5
authorized to acquire them; repealing the prohibition against a holder of a Class 9 6
limited distillery license applying for or possessing a wholesaler’s license; and 7
generally relating to Class 9 limited distillery licenses. 8
BY repealing and reenacting, with amendments, 9
Article – Alcoholic Beverages 10
Section 2–203 11
Annotated Code of Maryland 12
(2016 Volume and 2022 Supplement) 13
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 14
That the Laws of Maryland read as follows: 15
Article – Alcoholic Beverages 16
2–203. 17
(a) There is a Class 9 limited distillery license. 18
(b) The limited distillery license may be issued only to a holder of a: 19
(1) Class D beer, wine, and liquor license where sales for both on– and 20
off–premises consumption are permitted for use on the premises for which the Class D 21
license was issued; or 22
2 HOUSE BILL 565
(2) Class B beer, wine, and liquor license where sales for both on– and 1
off–premises consumption are permitted for use on the premises for which the Class B 2
license was issued. 3
(c) A holder of the limited distillery license: 4
(1) may establish and operate a plant in the State for distilling, rectifying, 5
and bottling brandy, rum, whiskey, alcohol, and neutral spirits if the holder: 6
(i) maintains only one brand at any one time for each product of 7
brandy, rum, whiskey, alcohol, and neutral spirits that is distilled, rectified, and sold; and 8
(ii) does not manufacture or rectify product of any other brand for 9
another entity; 10
(2) may acquire bulk alcoholic beverages from the holder of a distillery or 11
rectifying license in the State or from the holder of a nonresident dealer’s permit; 12
(3) after acquiring an individual storage permit, may store on the licensed 13
premises those products manufactured under the license; 14
(4) may sell and deliver those products manufactured under the license 15
[only to a licensed wholesaler in the State or person authorized to acquire distilled spirits 16
in another state and not to a county dispensary]: 17
(I) IN BULK TO A PERSON IN THE STATE THAT IS AUTHORI ZED 18
TO ACQUIRE THEM ; AND 19
(II) TO A PERSON OUTSIDE THE STATE THAT IS AUTHORI ZED TO 20
ACQUIRE THEM ; 21
(5) may sell the products manufactured under the license at retail in a 22
manner consistent with the underlying Class D or Class B license; 23
(6) may conduct guided tours of that portion of the licensed premises used 24
for the limited distillery operation; 25
(7) may serve not more than three samples of products manufactured at 26
the licensed premises, with each sample consisting of not more than one–half ounce from a 27
single product, to persons who: 28
(i) have attained the legal drinking age; 29
(ii) participated in a guided tour; and 30
HOUSE BILL 565 3
(iii) are present on that portion of the premises used for the limited 1
distillery operation; and 2
(8) may sell and deliver products manufactured by the license holder to an 3
individual in accordance with § 2–219 of this subtitle. 4
(d) A holder of the limited distillery license may not: 5
(1) [apply for or possess a wholesaler’s license; 6
(2)] sell bottles of the products manufactured at the Class 9 limited 7
distillery on that part of the premises used for the distillery operation; 8
[(3)] (2) except as provided in subsection (e) of this section, distill, rectify, 9
bottle, or sell more than 100,000 gallons of brandy, rum, whiskey, alcohol, and neutral 10
spirits each calendar year; 11
[(4)] (3) sell at retail on the premises of the Class D or Class B license, for 12
on–premises or off–premises consumption, more than 31,000 gallons of the products 13
manufactured under the license each calendar year; and 14
[(5)] (4) own, operate, or be affiliated in any manner with another 15
manufacturer. 16
(e) To distill more than the gallonage specified in subsection [(d)(3)] (D)(2) of this 17
section, a holder of the limited distillery license shall divest itself of any Class D or Class B 18
retail license and obtain a Class 1 distillery license. 19
(f) A holder of the limited distillery license shall abide by all trade practice 20
restrictions applicable to distilleries. 21
(g) The annual license fee: 22
(1) shall be determined by the Commission; and 23
(2) may not exceed $500. 24
SECTION 2. AND BE IT FURTHER ENACTED, That this Act sh all take effect July 25
1, 2023. 26