Maryland 2024 Regular Session

Maryland House Bill HB1217 Latest Draft

Bill / Engrossed Version Filed 04/01/2024

                             
 
EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. 
        [Brackets] indicate matter deleted from existing law. 
         Underlining indicates amendments to bill. 
         Strike out indicates matter stricken from the bill by amendment or deleted from the law by 
amendment. 
          *hb1217*  
  
HOUSE BILL 1217 
A1   	4lr2924 
    	CF SB 1041 
By: Delegate Kerr 
Introduced and read first time: February 8, 2024 
Assigned to: Economic Matters 
Committee Report: Favorable with amendments 
House action: Adopted 
Read second time: March 17, 2024 
 
CHAPTER ______ 
 
AN ACT concerning 1 
 
Alcoholic Beverages – Breweries, Wineries, and Distilleries – Direct Delivery 2 
and Direct Shipment 3 
 
FOR the purpose of establishing certain permits authorizing the direct delivery or shipment 4 
of certain alcoholic beverages to a consumer in the State; establishing that certain 5 
affiliates of the holders of nonresident brewery permits or nonresident distillery 6 
permits are included in certain production limits; authorizing common carriers to 7 
transport, if applicable, beer or liquor; establishing the requirements an individual 8 
must meet in order to qualify for a direct–to–consumer alcoholic beverages delivery 9 
or shipping permit; establishing a maximum amount that a recipient of an alcoholic 10 
beverages delivery or shipment may receive annually; repealing a maximum amount 11 
that a consumer may purchase when visiting certain alcoholic beverage 12 
manufacturers; requiring a holder of a direct beer shipper’s permit or direct liquor 13 
shipper’s permit to post security for the alcoholic beverage tax in a certain amount; 14 
and generally relating to alcoholic beverages. 15 
 
BY repealing and reenacting, with amendments, 16 
 Article – Alcoholic Beverages and Cannabis 17 
Section 2–132 and 2–132.1; and 2–142 through 2–147 and 2–150 through 2–152 to 18 
be under the amended part “Part V. Direct Wine Delivery, Direct Wine 19 
Shipper’s, and Common Carrier Permits”; and 2–202(k), 2–205(c) and (d),  20 
2–206(h), and 2–214(a) 21 
 Annotated Code of Maryland 22 
 (2016 Volume and 2023 Supplement) 23 
  2 	HOUSE BILL 1217  
 
 
BY repealing and reenacting, without amendments, 1 
 Article – Alcoholic Beverages and Cannabis 2 
Section 2–148, 2–149, 2–153, 2–154, 2–202(a), 2–205(a), 2–206(a), and 2–207(b) 3 
 Annotated Code of Maryland 4 
 (2016 Volume and 2023 Supplement) 5 
 
BY adding to 6 
 Article – Alcoholic Beverages and Cannabis 7 
Section 2–148.1 and 2–149.1; and 2–167 through 2–176 2–175 to be under the new 8 
part “Part VIII. Direct–to–Consumer Beer and Liquor Shipping and Delivery”; 9 
and 2–202(k) and (l), 2–205(d) and (e), 2–206(h) and (i), and 2–207(k) and (l) 10 
 Annotated Code of Maryland 11 
 (2016 Volume and 2023 Supplement) 12 
 
BY repealing and reenacting, without amendments, 13 
 Article – Tax – General 14 
Section 13–825(a) and (i) 15 
 Annotated Code of Maryland 16 
 (2022 Replacement Volume and 2023 Supplement) 17 
 
BY repealing and reenacting, with amendments, 18 
 Article – Tax – General 19 
Section 13–825(b) 20 
 Annotated Code of Maryland 21 
 (2022 Replacement Volume and 2023 Supplement) 22 
 
BY repealing and reenacting, with amendments, 23 
 Article – Alcoholic Beverages and Cannabis 24 
 Section 2–202(c) and 2–207(d) 25 
 Annotated Code of Maryland 26 
 (2016 Volume and 2023 Supplement) 27 
(As enacted by Section 3 of Chapters 359 and 360 of the Acts of the General Assembly 28 
of 2021, as amended by Chapters 477 and 478 of the Acts of the General 29 
Assembly of 2022 and Chapter 594 of the Acts of the General Assembly of 30 
2023) 31 
 
BY repealing and reenacting, without amendments, 32 
 Article – Alcoholic Beverages and Cannabis 33 
 Section 2–207(c) 34 
 Annotated Code of Maryland 35 
 (2016 Volume and 2023 Supplement) 36 
(As enacted by Section 3 of Chapters 359 and 360 of the Acts of the General Assembly 37 
of 2021, as amended by Chapters 477 and 478 of the Acts of the General 38 
Assembly of 2022 and Chapter 594 of the Acts of the General Assembly of 39 
2023) 40 
 
Preamble 41   	HOUSE BILL 1217 	3 
 
 
 WHEREAS, Section 1–201(a)(1)(i) of the Alcoholic Beverages and Cannabis Article 1 
states, in part, that it is the policy of the State to regulate and control the manufacture, 2 
sale, distribution, transportation, and storage of alcoholic beverages in the State for the 3 
purposes of obtaining respect and obedience to the law and to foster and promote 4 
temperance; and 5 
 
 WHEREAS, Section 1–201(b)(1) of the Alcoholic Beverages and Cannabis Article 6 
states that it is the policy of the State to authorize the Office of the Executive Director and 7 
others to displace or limit economic competition by regulating and engaging in the sale or 8 
distribution of alcoholic beverages; and 9 
 
 WHEREAS, Section 1–201(b)(1)(i) through (iv) of the Alcoholic Beverages and 10 
Cannabis Article states that it is the policy of the State to obtain respect and obedience for 11 
the law, promote and foster temperance, prevent deceptive, destructive, and unethical 12 
business practices, and promote the general welfare of residents of the State by controlling 13 
the sale and distribution of alcoholic beverages; and 14 
 
 WHEREAS, To accomplish and ensure that the State can carry out its duties as 15 
required in the Alcoholic Beverages and Cannabis Article, this Act reaffirms the legitimacy 16 
of the three–tiered system as a means of regulating the alcoholic beverages industry as 17 
stipulated by the Supreme Court of the United States in Tennessee Wine and Spirits 18 
Retailers Assn. v. Thomas, 139 S. Ct. 2449 (2019); and 19 
 
 WHEREAS, It is the intent of the General Assembly to limit the issuance of direct 20 
delivery permits by the Office of the Executive Director to licensed Maryland 21 
manufacturers in order to protect public health and provide strong incentives not to sell 22 
alcohol in a way that threatens public health or safety; now, therefore,  23 
 
 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 24 
That the Laws of Maryland read as follows: 25 
 
Article – Alcoholic Beverages and Cannabis 26 
 
2–132. 27 
 
 (a) IN THIS SECTION, “AFFILIATE” MEANS A PERSON THAT DIRECTLY OR 28 
INDIRECTLY THROUGH O NE OR MORE INTERMEDI ARIES CONTROLS , IS CONTROLLED 29 
BY, OR IS UNDER COMMON C ONTROL WITH A HOLDER OF A NONRESIDENT BRE WERY 30 
PERMIT. 31 
 
 (B) There is a nonresident brewery permit. 32 
 
 [(b)] (C) The Executive Director may issue the permit to a person that: 33 
 
 (1) is licensed outside the State to engage in the manufacture of beer; 34 
  4 	HOUSE BILL 1217  
 
 
 (2) produces in the aggregate from all of its locations not more than 1 
[22,500] 45,000 barrels of beer annually, ALONE OR IN COMBINAT ION WITH ITS 2 
AFFILIATES; and 3 
 
 (3) does not hold a nonresident dealer’s permit. 4 
 
 [(c)] (D) (1) The permit authorizes the permit holder to sell and deliver not 5 
more than 3,000 barrels of the permit holder’s own beer annually from a location outside 6 
the State to a retail license holder or permit holder in the State authorized to acquire the 7 
beer. 8 
 
 (2) The permit holder shall comply with all the requirements of this article, 9 
the Tax – General Article, and the regulations of the Comptroller or Executive Director 10 
that apply to a holder of a Class 7 limited beer wholesaler’s license. 11 
 
 [(d)] (E) The annual permit fee is $50. 12 
 
2–132.1. 13 
 
 (a) IN THIS SECTION , “AFFILIATE” MEANS A PERSON THAT DIRECTLY OR 14 
INDIRECTLY THROUGH ONE OR MORE INTERMEDIARIES CONTR OLS, IS CONTROLLED 15 
BY, OR IS UNDER COMMON C ONTROL WITH A HOLDER OF A NONRESIDENT 16 
DISTILLERY PERMIT . 17 
 
 (B) There is a nonresident distillery permit. 18 
 
 [(b)] (C) The Executive Director may issue the permit to a person that: 19 
 
 (1) is licensed outside the State to engage in the manufacture of liquor; 20 
 
 (2) produces in the aggregate from all of its locations not more than 100,000 21 
gallons of liquor annually, ALONE OR IN COMBINAT ION WITH ITS AFFILIA TES; and 22 
 
 (3) does not hold a nonresident dealer’s permit. 23 
 
 [(c)] (D) (1) The permit authorizes the permit holder to sell and deliver the 24 
permit holder’s own liquor from a location outside the State to a retail license holder or 25 
permit holder in the State authorized to acquire the liquor. 26 
 
 (2) The permit holder shall comply with all the requirements of this article, 27 
the Tax – General Article, and the regulations of the Comptroller or Executive Director 28 
that apply to a holder of a Class 8 limited liquor wholesaler’s license. 29 
 
 [(d)] (E) The annual permit fee is $100. 30 
 
Part V. Direct WINE DELIVERY, DIRECT Wine Shipper’s, and Common Carrier Permits. 31   	HOUSE BILL 1217 	5 
 
 
 
2–142. 1 
 
 (a) In this part the following words have the meanings indicated. 2 
 
 (b) (1) “Common carrier” means a business entity that: 3 
 
 (i) holds itself out as being available to the public to transport in 4 
interstate or foreign commerce for compensation any class of passenger or property; and 5 
 
 (ii) holds a common carrier permit issued under § 2–151 of this 6 
subtitle. 7 
 
 (2) “Common carrier” does not include a business entity that transports 8 
only property the business entity owns or that is consigned to the business entity. 9 
 
 (c) “DIRECT WINE DELIVERER ” MEANS THE HOLDER OF A DIRECT WINE 10 
DELIVERY PERMIT ISSU ED UNDER THIS PART . 11 
 
 (D) “Direct wine shipper” means the holder of a direct wine shipper’s permit 12 
issued under this part. 13 
 
2–143. 14 
 
 (A) A person shall be issued a direct wine shipper’s permit by the Executive 15 
Director before the person may engage in shipping wine directly to a consumer in the State. 16 
 
 (B) BEFORE A LICENSED MANUFACTURER MAY ENG AGE IN DELIVERING 17 
WINE DIRECTLY TO A C ONSUMER IN THE STATE, THE MANUFACTURER SHA LL BE 18 
ISSUED A DIRECT WINE DELIVERY PERMIT . 19 
 
2–144. 20 
 
 (A) To qualify for a direct wine shipper’s permit, an applicant shall be: 21 
 
 (1) a person licensed outside the State to engage in the manufacture of 22 
wine; or 23 
 
 (2) a holder of a Class 3 manufacturer’s license or a Class 4 manufacturer’s 24 
license. 25 
 
 (B) (1) TO QUALIFY FOR A DIRE CT WINE DELIVERY PER MIT, AN 26 
APPLICANT SHALL BE: 27 
 
 (I) A PERSON LICENSED IN THE STATE TO ENGAGE IN TH E 28 
MANUFACTURE OF WINE ; AND 29  6 	HOUSE BILL 1217  
 
 
 
 (II) A HOLDER OF A CLASS 6 LIMITED WINE WHOLESA LER’S 1 
LICENSE. 2 
 
 (2) THE HOLDER OF A DIREC T WINE DELIVERY PERM IT ISSUED 3 
UNDER THIS SUBSECTIO N MAY SELL AND DELIVER A THE PERMIT HOLDER ’S OWN 4 
PRODUCT PRODUCED UNDER THE HOLDER ’S LICENSE TO AN INDIVIDUAL IN THE 5 
STATE IF: 6 
 
 (I) THE DELIVERY IS MADE BY AN EMPLOYEE WHO I S: 7 
 
 1. AT LEAST 18 YEARS OLD; AND 8 
 
 2. CERTIFIED BY AN APPR OVED ALCOHOL AWARENE SS 9 
PROGRAM; 10 
 
 (II) THE PURCHASER , OR ANOTHER INDIVIDUA L AT LEAST 21 11 
YEARS OLD DESIGNATED BY THE PURCHASER , IS PHYSICALLY PRESEN T TO RECEIVE 12 
THE WINE AT THE TIME AND PLACE OF DELIVER Y; 13 
 
 (III) THE PURCHASER PAYS F OR THE PURCHASE AT T HE TIME OF 14 
ORDER; AND 15 
 
 (IV) THE DIRECT WINE DELI VERER AND THE INDIVI DUAL 16 
RECEIVING THE DELIVE RY EACH ENDORSE A DE LIVERY FORM THAT THE EXECUTIVE 17 
DIRECTOR APPROVES CER TIFYING THAT THE DIR ECT WINE DELIVERER E XAMINED 18 
THE RECIPIENT’S GOVERNMENT –ISSUED IDENTIFICATIO N AND THE RECIPI ENT WAS 19 
AT LEAST 21 YEARS OLD. 20 
 
2–145. 21 
 
 (a) An applicant for a direct wine shipper’s permit OR A DIRECT WINE DEL IVERY 22 
PERMIT shall: 23 
 
 (1) submit to the Executive Director a completed application on a form that 24 
the Executive Director provides; 25 
 
 (2) provide to the Executive Director a copy of the applicant’s current 26 
MANUFACTURER ’S license; 27 
 
 (3) identify the wines manufactured by the applicant that the applicant 28 
intends to ship [into] OR DELIVER TO A CONS UMER IN the State; and 29 
 
 (4) pay a fee of $200 for initial issuance of the direct wine shipper’s permit 30 
OR THE DIRECT WINE D ELIVERY PERMIT . 31   	HOUSE BILL 1217 	7 
 
 
 
 (b) The Executive Director shall issue a direct wine shipper’s permit OR A 1 
DIRECT WINE DELIVERY PERMIT to each applicant who meets the requirements of this 2 
part for the permit. 3 
 
2–146. 4 
 
 (A) A direct wine shipper’s permit entitles the holder to sell wine manufactured 5 
by the holder through a holder of a common carrier permit to a consumer by receiving and 6 
filling orders that the consumer transmits by electronic or other means. 7 
 
 (B) A DIRECT WINE DELIVERY PERMIT ENTITLES THE HOLDER TO SELL AND 8 
DELIVER WINE MANUFAC TURED BY THE HOLDER DIRECTLY TO A CONSUM ER IN THE 9 
STATE BY RECEIVING AN D FILLING ORDERS THA T THE CONSUMER TRANS MITS BY 10 
ELECTRONIC OR OTHER MEANS. 11 
 
2–147. 12 
 
 The term of a direct wine shipper’s permit OR A DIRECT WINE DEL IVERY PERMIT 13 
is 1 year and begins on July 1. 14 
 
2–148. 15 
 
 (a) A direct wine shipper shall: 16 
 
 (1) ensure that all containers of wine shipped directly to a consumer in the 17 
State are conspicuously labeled with: 18 
 
 (i) the name of the direct wine shipper; 19 
 
 (ii) the name and address of the consumer who is the intended 20 
recipient; and 21 
 
 (iii) the words “Contains Alcohol: Signature of Person at Least 21 22 
Years of Age Required for Delivery”; 23 
 
 (2) report to the Comptroller and the Executive Director information about 24 
the direct wine shipper’s wine shipments, in a manner that the Comptroller and the 25 
Executive Director determine; 26 
 
 (3) file a quarterly tax return in accordance with § 5–201(d) of the Tax – 27 
General Article; 28 
 
 (4) pay quarterly to the Comptroller all sales taxes and excise taxes due on 29 
sales to consumers in the State and calculate the taxes as if the sale were made in the State; 30 
  8 	HOUSE BILL 1217  
 
 
 (5) maintain for 3 years complete and accurate records of all information 1 
needed to verify compliance with this part; 2 
 
 (6) allow the Comptroller and the Executive Director to perform an audit 3 
of the direct wine shipper’s records on request; and 4 
 
 (7) consent to the jurisdiction of the Comptroller, the Executive Director, 5 
or other State unit and the State courts concerning enforcement of this section and any 6 
related law. 7 
 
 (b) A direct wine shipper may not: 8 
 
 (1) ship more than 18 9–liter cases of wine each year to a single delivery 9 
address; or 10 
 
 (2) cause wine to be delivered on Sunday to an address in the State. 11 
 
2–148.1. 12 
 
 (A) A DIRECT WINE DELIVERE R SHALL: 13 
 
 (1) ENSURE THAT ANY CONT AINER CONTAINING WIN E DELIVERED 14 
DIRECTLY TO A CONSUM ER IN THE STATE IS: 15 
 
 (I) CONSPICUOUSLY LABELE D WITH: 16 
 
 1. THE NAME OF THE MANUFA CTURER; 17 
 
 2. THE NAME AND ADDRESS OF THE CONSUMER WHO IS 18 
THE INTENDED RECIPIE NT; AND 19 
 
 3. THE WORDS “CONTAINS ALCOHOL: SIGNATURE OF 20 
PERSON AT LEAST 21 YEARS OF AGE REQUIRED FOR DELIVERY”; AND 21 
 
 (II) COMMERCIALLY SEALED BY THE MANUFACTURER ; 22 
 
 (2) REPORT TO THE EXECUTIVE DIRECTOR INFORMATION ABOUT 23 
THE DELIVERIES , IN A MANNER THAT THE EXECUTIVE DIRECTOR DETERMINES ; 24 
 
 (3) FILE A QUARTERLY TAX RETURN IN ACCORDANCE WITH §  25 
5–201(D) OF THE TAX – GENERAL ARTICLE; 26 
 
 (4) PAY QUARTERLY TO THE COMPTROLLER ALL SALES TAXES AND 27 
EXCISE TAXES DUE ON SALES TO CONSUMERS I N THE STATE; 28 
   	HOUSE BILL 1217 	9 
 
 
 (5) MAINTAIN FOR 3 YEARS COMPLETE AND A CCURATE RECORDS OF 1 
ALL INFORMATION NEED ED TO VERIFY COMPLIA NCE WITH THIS PART ; AND 2 
 
 (6) ALLOW THE COMPTROLLER OR THE EXECUTIVE DIRECTOR TO 3 
PERFORM AN AUDIT OF THE PERMIT HOLDER ’S RECORDS ON REQUEST . 4 
 
 (B) THE HOLDER OF A DIREC T WINE DELIVERY PERM IT MAY NOT CAUSE 5 
MORE THAN 18 9–LITER CASES OF WINE TO BE DELIVERED TO A SINGLE ADDRESS IN 6 
A SINGLE CALENDAR YE AR. 7 
 
2–149. 8 
 
 (a) A direct wine shipper may renew its direct wine shipper’s permit each year if 9 
the direct wine shipper: 10 
 
 (1) is otherwise entitled to have a direct wine shipper’s permit; 11 
 
 (2) provides to the Executive Director a copy of its current permit; 12 
 
 (3) identifies the wines manufactured by the direct wine shipper that the 13 
direct wine shipper intends to ship into the State; and 14 
 
 (4) pays to the Executive Director a renewal fee of $200. 15 
 
 (b) The Executive Director may deny a renewal application of a direct wine 16 
shipper who fails to: 17 
 
 (1) file a tax return required under this part; 18 
 
 (2) pay a fee or tax when due; or 19 
 
 (3) after receiving notice, comply with this article or a regulation that the 20 
Comptroller or Executive Director adopts. 21 
 
2–149.1. 22 
 
 (A) A DIRECT WINE DELIVERE R MAY RENEW ITS DIRE CT WINE DELIVERY 23 
PERMIT EACH YEAR IF THE DIRECT WINE DELI VERER: 24 
 
 (1) IS OTHERWISE ENTITLE D TO HOLD A DIRECT W INE DELIVERY 25 
PERMIT; 26 
 
 (2) PROVIDES TO THE EXECUTIVE DIRECTOR AND THE 27 
COMPTROLLER A COPY OF ITS CURRENT PERMIT; AND 28 
 
 (3) PAYS THE EXECUTIVE DIRECTOR A RENEWAL FE E OF $200. 29  10 	HOUSE BILL 1217  
 
 
 
 (B) THE EXECUTIVE DIRECTOR MAY DENY A R ENEWAL APPLICATION F OR A 1 
DIRECT WINE DELIVERY PERMIT IF THE HOLDER FAILS TO:  2 
 
 (1) FILE A TAX RETURN RE QUIRED UNDER THIS PA RT; 3 
 
 (2) PAY A FEE OR TAX WHEN DUE ; OR 4 
 
 (3) AFTER RECEIVING NOTI CE, COMPLY WITH THIS ART ICLE OR A 5 
REGULATION THAT THE EXECUTIVE DIRECTOR ADOPTS UNDER THIS ARTICLE. 6 
 
2–150. 7 
 
 (a) To receive a direct shipment OR DIRECT DELIVERY of wine, a consumer in 8 
the State shall be at least 21 years old. 9 
 
 (b) A person who receives a shipment OR DELIVERY of wine shall use the 10 
shipment for personal consumption only and may not resell the shipment OR DELIVERY. 11 
 
2–151. 12 
 
 (a) There is a common carrier permit. 13 
 
 (b) A holder of a common carrier permit may deliver [wine] ALCOHOLIC 14 
BEVERAGES from a location inside or outside the State to a consumer in the State for the 15 
consumer’s personal use under this [part] SUBTITLE. 16 
 
 (c) A person shall be issued a common carrier permit before the person may 17 
engage in transporting:  18 
 
 (1) wine from a direct wine shipper to a consumer; 19 
 
 (2) BEER FROM A DIRECT B EER SHIPPER TO A CON SUMER; OR 20 
 
 (3) LIQUOR FROM A DIRECT LIQUOR SHIPPER TO A CONSUMER . 21 
 
 (d) The term of a common carrier permit is 1 year and begins on July 1. 22 
 
 (e) To complete delivery of a shipment, the common carrier shall require from a 23 
consumer at the address listed on the shipping label: 24 
 
 (1) the signature of the consumer or another individual at the address who 25 
is at least 21 years old; and 26 
 
 (2) government–issued photographic identification showing that the 27 
signing individual is at least 21 years old. 28   	HOUSE BILL 1217 	11 
 
 
 
 (f) A common carrier shall refuse delivery when the intended receiving individual 1 
appears to be under the age of 21 years or refuses to present valid identification. 2 
 
 (g) At the time of initial application for a common carrier permit and on request 3 
of the Executive Director, a common carrier shall submit to the Executive Director 4 
information concerning the training of its drivers in verifying the age of recipients of direct 5 
wine shipments, DIRECT BEER SHIPMENT S, OR DIRECT LIQUOR SHI PMENTS under this 6 
[part] SUBTITLE. 7 
 
 (h) At least once each year, in a manner acceptable to the Executive Director, a 8 
holder of a common carrier permit shall verify that the shipper of wine, BEER, OR LIQUOR 9 
into the State under this part holds a valid direct wine shipper’s permit, DIRECT BEER 10 
SHIPPER’S PERMIT, OR DIRECT LIQUOR SHI PPER’S PERMIT. 11 
 
 (i) A holder of a common carrier permit that delivers [wine solely] ALCOHOLIC 12 
BEVERAGES under this [part] SUBTITLE may not be required to obtain a transportation 13 
permit issued under § 2–118 or § 2–119 of this subtitle in addition to the common carrier 14 
permit. 15 
 
 (j) The permit fee is $100. 16 
 
2–152. 17 
 
 (a) A common carrier shall report quarterly to the Executive Director: 18 
 
 (1) the date of each delivery of [wine] ALCOHOLIC BEVERAGES in the 19 
State; and 20 
 
 (2) the name and address of: 21 
 
 (I) the direct wine shipper, THE DIRECT BEER SHIP PER, OR THE 22 
DIRECT LIQUOR SHIPPE R; and  23 
 
 (II) the receiving consumer of each delivery. 24 
 
 (b) A common carrier shall maintain for 3 years complete and accurate records of 25 
all information needed to verify compliance with this part. 26 
 
2–153. 27 
 
 A person without a direct wine shipper’s permit may not ship wine directly to a 28 
consumer in the State. 29 
 
2–154. 30 
  12 	HOUSE BILL 1217  
 
 
 Each violation of this part is a separate violation. 1 
 
2–165. RESERVED. 2 
 
2–166. RESERVED. 3 
 
PART VIII. DIRECT–TO–CONSUMER BEER AND LIQUOR SHIPPING AND DELIVERY. 4 
 
2–167. 5 
 
 (A) IN THIS PART THE FOLL OWING WORDS HAVE THE MEANINGS 6 
INDICATED. 7 
 
 (B) “COMMON CARRIER ” HAS THE MEANING STAT ED IN § 2–142 OF THIS 8 
SUBTITLE. 9 
 
 (C) (B) “DIRECT BEER DELIVERER ” MEANS THE HOLDER OF A DIRECT 10 
BEER DELIVERY PERMIT ISSUED UNDER THIS PA RT. 11 
 
 (D) “DIRECT BEER SHIPPER ” MEANS THE HOLDER OF A DIRECT BEER 12 
SHIPPER’S PERMIT ISSUED UNDE R THIS PART. 13 
 
 (E) (C) “DIRECT LIQUOR DELIVER ER” MEANS THE HOLDER OF A DIRECT 14 
LIQUOR DELIVER Y PERMIT ISSUED UNDE R THIS PART. 15 
 
 (F) “DIRECT LIQUOR SHIPPER ” MEANS THE HOLDER OF A DIRECT LIQUOR 16 
SHIPPER’S PERMIT ISSUED UNDE R THIS PART. 17 
 
 (G) (D) “PERMIT” MEANS A DIRECT BEER DELIVERY PERMIT , DIRECT 18 
BEER SHIPPER’S PERMIT, OR DIRECT LIQUOR DELIVE RY PERMIT, OR DIRECT 19 
LIQUOR SHIPPER’S PERMIT ISSUED BY THE EXECUTIVE DIRECTOR UNDER THIS 20 
PART. 21 
 
2–168. 22 
 
 (A) BEFORE A LICENSED MANUFACTURER MAY ENG AGE IN DELIVERING 23 
BEER DIRECTLY TO A C ONSUMER IN THE STATE, THE MANUFACTURER SHA LL BE 24 
ISSUED A DIRECT BEER DELIVERY PERMIT. 25 
 
 (B) BEFORE A LICENSED MANUFACTURER MAY ENG AGE IN DELIVERING 26 
LIQUOR DIRECTLY TO A CONSUMER IN THE STATE, THE MANUFACTURER SHA LL BE 27 
ISSUED A DIRECT LIQU OR DELIVERY PERMIT . 28 
 
2–169. 29 
   	HOUSE BILL 1217 	13 
 
 
 (A) (1) TO QUALIFY FOR A DIRE CT BEER DELIVERY PER MIT, AN 1 
APPLICANT SHALL BE : 2 
 
 (I) A PERSON LICENSED IN THE STATE TO ENGAGE IN TH E 3 
MANUFACTURE OF BEER ; AND 4 
 
 (II) A HOLDER OF A CLASS 7 LIMITED BEER WHOLESA LER’S 5 
LICENSE. 6 
 
 (2) THE HOLDER OF A DIREC T BEER DELIVERY PERM IT ISSUED 7 
UNDER § 2–170 OF THIS SUBTITLE MAY SELL AND DELIVER A THE PERMIT HOLDER ’S 8 
OWN PRODUCT PRODUCED UNDER THE HOLDER ’S LICENSE TO AN INDIVIDUAL IN 9 
THE STATE IF: 10 
 
 (I) THE DELIVERY IS MADE BY AN EMPLOYEE WHO I S: 11 
 
 1. AT LEAST 18 YEARS OLD; AND 12 
 
 2. CERTIFIED BY AN APPR OVED ALCOHOL AWARENESS 13 
PROGRAM; 14 
 
 (II) THE PURCHASER , OR ANOTHER INDIVIDUA L AT LEAST 21 15 
YEARS OLD DESIGNATED BY THE PURCHASER , IS PHYSICALLY PRESEN T TO RECEIVE 16 
THE BEER AT THE TIME AND PLACE OF DELIVER Y;  17 
 
 (III) THE PURCHASER PAYS F OR THE PURCHASE AT T HE TIME OF 18 
ORDER; AND 19 
 
 (IV) THE DIRECT BEER DELI VERER AND THE INDIVI DUAL 20 
RECEIVING THE DELIVE RY EACH ENDORSE A DE LIVERY FORM THAT THE EXECUTIVE 21 
DIRECTOR APPROVES CER TIFYING THAT THE DIR ECT BEER DELIVERER E XAMINED 22 
THE RECIPIENT’S GOVERNMENT –ISSUED IDENTIFICATIO N AND THE RECIPIENT WAS 23 
AT LEAST 21 YEARS OLD. 24 
 
 (B) TO QUALIFY FOR A DIRE CT BEER SHIPPER ’S PERMIT, AN APPLICANT 25 
SHALL BE: 26 
 
 (1) IF SHIPPING FROM A L OCATION OUTSIDE THE STATE, THE 27 
HOLDER OF A NONRESID ENT BREWERY PERMIT ; OR 28 
 
 (2) IF SHIPPING FROM A L OCATION INSIDE THE STATE: 29 
 
 (I) A PERSON LICENSED IN THE STATE TO ENGAGE IN TH E 30 
MANUFACTURE OF BEER ; AND 31  14 	HOUSE BILL 1217  
 
 
 
 (II) A HOLDER OF A CLASS 7 LIMITED BEER WHOLESA LER’S 1 
LICENSE. 2 
 
 (C) (B) (1) TO QUALIFY FOR A DIRE CT LIQUOR DELIVERY P ERMIT, AN 3 
APPLICANT SHALL BE : 4 
 
 (I) A PERSON ISSUED A LI CENSE BY THE EXECUTIVE DIRECTOR 5 
IN THE STATE TO ENGAGE IN TH E MANUFACTURE OF LIQ UOR; AND 6 
 
 (II) A HOLDER OF A CLASS 8 LIMITED WHOLESALER ’S LICENSE. 7 
 
 (2) THE HOLDER OF A DIREC T LIQUOR DELIVERY PE RMIT ISSUED 8 
UNDER § 2–170 OF THIS SUBTITLE MAY SELL AN D DELIVER A THE PERMIT HOLDER ’S 9 
OWN PRODUCT PRODUCED UNDER THE HOLDER ’S LICENSE TO AN INDIVIDUAL IN 10 
THE STATE IF: 11 
 
 (I) THE DELIVERY IS MADE BY AN EMPLOYEE WHO I S: 12 
 
 1. AT LEAST 18 YEARS OLD; AND 13 
 
 2. CERTIFIED BY AN APPR OVED ALCOHOL AWARENESS 14 
PROGRAM; 15 
 
 (II) THE PURCHASER , OR ANOTHER INDIVIDUA L AT LEAST 21 16 
YEARS OLD DESIGNATED BY THE PURCHASER , IS PHYSICALLY PRESEN T TO RECEIVE 17 
THE LIQUOR AT THE TI ME AND PLACE OF DELI VERY;  18 
 
 (III) THE PURCHASER PAYS F OR THE PURCHASE AT T HE TIME OF 19 
ORDER; AND 20 
 
 (IV) THE DIRECT LIQUOR DE LIVERER AND THE INDI VIDUAL 21 
RECEIVING THE DELIVE RY EACH ENDORSE A DE LIVERY FORM THAT THE EXECUTIVE 22 
DIRECTOR APPROVES CER TIFYING THAT THE DIR ECT LIQUOR DELIVERER 23 
EXAMINED THE RECIPIE NT’S GOVERNMENT –ISSUED IDEN TIFICATION AND THE 24 
RECIPIENT WAS AT LEA ST 21 YEARS OLD. 25 
 
 (D) TO QUALIFY FOR A DIRE CT LIQUOR SHIPPER ’S PERMIT, AN APPLICANT 26 
SHALL BE: 27 
 
 (1) IF SHIPPING FROM A L OCATION OUTSIDE THE STATE, A HOLDER 28 
OF A NONRESIDENT DIS TILLERY PERMIT ; OR 29 
 
 (2) IF SHIPPING FROM A LOCATION INSI DE THE STATE: 30   	HOUSE BILL 1217 	15 
 
 
 
 (I) A PERSON ISSUED A LI CENSE BY THE EXECUTIVE DIRECTOR 1 
IN THE STATE TO ENGAGE IN TH E MANUFACTURE OF LIQ UOR; AND 2 
 
 (II) A HOLDER OF A CLASS 8 LIMITED WHOLESALER ’S LICENSE. 3 
 
2–170. 4 
 
 (A) AN APPLICANT FOR A PE RMIT UNDER THIS PART SHALL : 5 
 
 (1) SUBMIT TO THE EXECUTIVE DIRECTOR A COMPLETED 6 
APPLICATION ON A FOR M THAT THE EXECUTIVE DIRECTOR PROVIDES ; 7 
 
 (2) PROVIDE TO THE EXECUTIVE DIRECTOR A COPY OF TH E 8 
APPLICANT’S CURRENT HOME STATE MANUFACTURER ’S LICENSE;  9 
 
 (3) IDENTIFY THE PRODUCT MANUFA CTURED BY THE APPLIC ANT 10 
THAT THE APPLICANT I NTENDS TO SHIP OR DELIVER TO A CONSUME R IN THE STATE; 11 
AND 12 
 
 (4) PAY A FEE OF $200 FOR INITIAL ISSUANCE OF THE PERMIT. 13 
 
 (B) IF AN APPLICANT MEETS THE REQUIREMENTS OF THIS PART, THE 14 
EXECUTIVE DIRECTOR SHALL ISSUE TO THE APPLICANT : 15 
 
 (1) A DIRECT BEER DELIVE RY PERMIT; OR 16 
 
 (2) A DIRECT BEER SHIPPE R’S PERMIT; 17 
 
 (3) A DIRECT LIQUOR DELI VERY PERMIT; OR 18 
 
 (4) A DIRECT LIQUOR SHIP PER’S PERMIT. 19 
 
2–171. 20 
 
 (A) A DIRECT BEER DELIVERY PERMIT ENTITLES THE HOLDER TO SELL A ND 21 
DELIVER BEER MANUFAC TURED BY THE HOLDER DIRECTLY TO A CONSUM ER IN THE 22 
STATE BY RECEIVING AN D FILLING ORDERS THA T THE CONSUMER TRANS MITS BY 23 
ELECTRONIC OR OTHER MEANS. 24 
 
 (B) A DIRECT BEER SHIPPER ’S PERMIT ENTITLES TH E HOLDER TO SELL 25 
BEER MANUFACTURED BY THE HOLDER THROUGH A HOLDER OF A COMMON 26 
CARRIER PERMIT TO A CONSUMER BY RECEIVIN G AND FILLING ORDERS THAT THE 27 
CONSUMER TRANSMITS B Y ELECTRONIC OR OTHE R MEANS. 28 
  16 	HOUSE BILL 1217  
 
 
 (C) A DIRECT LIQUOR DELIVE RY PERMIT ENTITLES T HE HOLDER TO SELL 1 
AND DELIVER LIQUOR MANUFACTURE D BY THE HOLDER DIRE CTLY TO A CONSUMER 2 
IN THE STATE BY RECEIVING AN D FILLING ORDERS THA T THE CONSUMER 3 
TRANSMITS BY ELECTRO NIC OR OTHER MEANS . 4 
 
 (D) A DIRECT LIQUOR SHIPPE R’S PERMIT ENTITLES TH E HOLDER TO SELL 5 
LIQUOR MANUFACTURED BY THE HOLDER THROUGH A HOL DER OF A COMMON 6 
CARRIER PERMIT TO A CONSUMER BY RECEIVIN G AND FILLING ORDERS THAT THE 7 
CONSUMER TRANSMITS B Y ELECTRONIC OR OTHE R MEANS. 8 
 
2–172. 9 
 
 THE TERM OF A PERMIT ISSUED UNDER THIS PA RT IS 1 YEAR AND BEGINS ON 10 
JULY 1. 11 
 
2–173. 12 
 
 (A) A PERSON WHO HOLDS A P ERMIT UNDER THIS PAR T SHALL: 13 
 
 (1) ENSURE THAT ANY CONT AINER CONTAINING AN ALCOHOLIC 14 
BEVERAGE DELIVERED OR SHIPPED DIRECTLY TO A CONSUM ER IN THE STATE IS: 15 
 
 (I) CONSPICUOUSLY LABELE D WITH: 16 
 
 1. THE NAME OF THE MANU FACTURER; 17 
 
 2. THE NAME AND ADDRESS OF THE CONSUMER WHO IS 18 
THE INTENDED RECIPIE NT; AND 19 
 
 3. THE WORDS “CONTAINS ALCOHOL: SIGNATURE OF 20 
PERSON AT LEAST 21 YEARS OF AGE REQUIRED FOR DELIVERY”; AND 21 
 
 (II) COMMERCIALLY SEALED BY THE MANUFACTURER ; 22 
 
 (2) REPORT TO THE EXECUTIVE DIRECTOR INFORMATION ABOUT 23 
THE SHIPMENTS OR DELIVERIES, IN A MANNER THAT THE EXECUTIVE DIRECTOR 24 
DETERMINES ;  25 
 
 (3) FILE A QUARTERLY TAX RETURN IN ACCORDANCE WITH §  26 
5–201(D) OF THE TAX – GENERAL ARTICLE;  27 
 
 (4) PAY QUARTERLY TO THE COMPTROLLER ALL SALES TAXES AND 28 
EXCISE TAXES DUE ON SALES TO CONSUMERS I N THE STATE AND CALCULATE T HE 29 
TAXES AS IF THE SALE SALES WERE MADE IN THE STATE; 30   	HOUSE BILL 1217 	17 
 
 
 
 (5) MAINTAIN FOR 3 YEARS COMPLETE AND A CCURATE RECORDS OF 1 
ALL INFORMATION NEED ED TO VERIFY COMPLIA NCE WITH THIS PART; 2 
 
 (6) ALLOW THE COMPTROLLER OR THE EXECUTIVE DIRECTOR TO 3 
PERFORM AN AUDIT OF THE PERMIT HOLDER ’S RECORDS ON REQUEST ; AND 4 
 
 (7) CONSENT TO THE JURIS DICTION OF THE EXECUTIVE DIRECTOR, 5 
COMPTROLLER , OR OTHER STATE UNIT AND THE STATE COURTS CONCERNI NG 6 
ENFORCEMENT OF THIS P ART AND ANY RELATED LAW. 7 
 
 (B) (1) THE HOLDER OF A DIREC T BEER DELIVERY PERM IT OR A DIRECT 8 
BEER SHIPPER ’S PERMIT MAY NOT CAUSE MORE T HAN 3,456 OUNCES OF BEER THE 9 
PERMIT HOLDER ’S OWN PRODUCT TO BE DELIVERED TO A SINGLE DELIVERY 10 
ADDRESS IN A SINGLE CALENDAR YEAR. 11 
 
 (2) THE HOLDER OF A DIREC T LIQUOR DELIVERY PE RMIT OR A 12 
DIRECT LIQUOR SHIPPE R’S PERMIT MAY NOT CAUSE MORE T HAN 24 STANDARD  13 
750–MILLILITER BOTTLES O F LIQUOR THE PERMIT HOLDER ’S OWN PRODUCT , OR AN 14 
EQUIVALENT AMOUNT , TO BE DELIVERED TO A SINGL E DELIVERY ADDRESS I N A 15 
SINGLE CALENDAR YEAR . 16 
 
2–174. 17 
 
 (A) A HOLDER OF A PERMIT I SSUED UNDER THIS PAR T MAY RENEW THE 18 
PERMIT EACH YEAR IF THE HOLDER: 19 
 
 (1) IS OTHERWISE ENTITLE D TO HOLD A PERMIT U NDER THIS PART ; 20 
 
 (2) PROVIDES TO THE EXECUTIVE DIRECTOR AND THE 21 
COMPTROLLER A COPY OF ITS CURRENT PERMIT ; AND 22 
 
 (3) PAYS THE EXECUTIVE DIRECTOR A RENEWAL FE E OF $200. 23 
 
 (B) THE EXECUTIVE DIRECTOR MAY DENY A R ENEWAL APPLICATION F OR A 24 
PERMIT ISSUED UNDER THIS PART IF THE HOL DER FAILS TO: 25 
 
 (1) FILE A TAX RETURN RE QUIRED UNDER THIS SU BTITLE; 26 
 
 (2) PAY A FEE OR TAX WHE N DUE; OR 27 
 
 (3) AFTER RECEIVING NOTI CE, COMPLY WITH THIS ART ICLE OR A 28 
REGULATION THAT THE EXECUTIVE DIRECTOR ADOPTS UNDER THIS ARTICLE. 29 
  18 	HOUSE BILL 1217  
 
 
2–175. 1 
 
 (A) TO RECEIVE A DIRECT D ELIVERY OR DIRECT SHIPMENT OF BEER OR 2 
LIQUOR, A CONSUMER IN THE STATE SHALL BE AT LEA ST 21 YEARS OLD. 3 
 
 (B) A PERSON WHO RECEIVES A DELIVERY OR SHIPMENT OF ALCOHOLIC 4 
BEVERAGES UNDER THIS PART SHALL USE THE A LCOHOLIC BEVERAGES F OR 5 
PERSONAL CONSUMPTION ONLY AND MAY NOT RES ELL THE DELIVERY OR SHIPMENT 6 
IN WHOLE OR IN PART .  7 
 
2–176. 8 
 
 (A) A PERSON WITHOUT A DIR ECT BEER SHIPPER ’S PERMIT ISSUED UNDE R 9 
THIS PART MAY NOT SHIP BEER DIR ECTLY TO A CONSUMER IN THE STATE. 10 
 
 (B) A PERSON WITHOUT A DIR ECT LIQUOR SHIPPER ’S PERMIT ISSUED 11 
UNDER THIS PART MAY NOT SHIP LIQUOR DIRE CTLY TO A CONSUMER I N THE STATE. 12 
 
2–202. 13 
 
 (a) There is a Class 1 distillery license. 14 
 
 (K) THE LICENSE HOLDER SHALL REPORT TO THE EXECUTIVE DIRECTOR 15 
ANNUALLY ON A FORM P ROVIDED BY THE EXECUTIVE DIRECTOR ON: 16 
 
 (1) THE AMOUNT OF ALCOHO LIC BEVERAGES PRODUC ED UNDER THE 17 
LICENSE; 18 
 
 (2) THE AMOUNT OF ALCOHO	LIC BEVERAGES SOLD F	OR  19 
OFF–PREMISES CONSUMPTION ; AND 20 
 
 (3) THE AMOUNT OF ALCOHO	LIC BEVERAGES SERVED FOR  21 
ON–PREMISES CONSUMPTION . 22 
 
 (L) EXCEPT AS OTHERWISE P ROVIDED BY LAW , THE LICENSE HOLDER M AY 23 
NOT SELL ALCOHOLIC B EVERAGES FOR OFF –PREMISES CONSUMPTION TO A PERSON 24 
WHO INTENDS TO RESEL L THE ALCOHOLIC BEVERAGES . 25 
 
 [(k)] (M) The annual license fee: 26 
 
 (1) shall be determined by the Executive Director; and 27 
 
 (2) may not exceed $2,000. 28 
 
2–205. 29   	HOUSE BILL 1217 	19 
 
 
 
 (a) There is a Class 3 winery license. 1 
 
 (c) An individual may purchase wine under subsection (b)(4) of this section if the 2 
individual[: 3 
 
 (1) purchases not more than 1 quart in a single year; and 4 
 
 (2)] has attained the legal drinking age. 5 
 
 (D) THE LICENSE HOLDER SH ALL REPORT TO THE EXECUTIVE DIRECTOR 6 
ANNUALLY ON A FORM P ROVIDED BY THE EXECUTIVE DIRECTOR ON: 7 
 
 (1) THE AMOUNT OF ALCOHO LIC BEVERAGES PRODUC ED UNDER THE 8 
LICENSE; 9 
 
 (2) THE AMOUNT OF ALCOHO	LIC BEVERAGES SOLD F	OR  10 
OFF–PREMISES CONSUMPTION ; AND 11 
 
 (3) THE AMOUNT OF ALCOHO	LIC BEVERAGES SERVED FOR  12 
ON–PREMISES CONSUMPTION . 13 
 
 (E) EXCEPT AS OTHERWISE PROVIDED B Y LAW, THE LICENSE HOLDER M AY 14 
NOT SELL ALCOHOLIC B EVERAGES FOR OFF –PREMISES CONSUMPTION TO A PERSON 15 
WHO INTENDS TO RESEL L THE ALCOHOLIC BEVE RAGES. 16 
 
 [(d)] (F) The annual license fee: 17 
 
 (1) shall be determined by the Executive Director; and 18 
 
 (2) may not exceed $750. 19 
 
2–206. 20 
 
 (a) There is a Class 4 limited winery license. 21 
 
 (H) THE LICENSE HOLDER SH ALL REPORT TO THE EXECUTIVE DIRECTOR 22 
ANNUALLY ON A FORM P ROVIDED BY THE EXECUTIVE DIRECTOR ON: 23 
 
 (1) THE AMOUNT OF ALCOHO LIC BEVERAGES PR ODUCED UNDER THE 24 
LICENSE; 25 
 
 (2) THE AMOUNT OF ALCOHO	LIC BEVERAGES SOLD F	OR  26 
OFF–PREMISES CONSUMPTION ; AND 27 
  20 	HOUSE BILL 1217  
 
 
 (3) THE AMOUNT OF ALCOHO	LIC BEVERAGES SERVED FOR  1 
ON–PREMISES CONSUMPTION . 2 
 
 (I) EXCEPT AS OTHERWISE P ROVIDED BY LAW , THE LICENSE HOLDER M AY 3 
NOT SELL ALCOHOLIC BEVER AGES FOR OFF–PREMISES CONSUMPTION TO A PERSON 4 
WHO INTENDS TO RESEL L THE ALCOHOLIC BEVE RAGES. 5 
 
 [(h)] (J) The annual license fee: 6 
 
 (1) shall be determined by the Executive Director; and 7 
 
 (2) may not exceed $200. 8 
 
2–207. 9 
 
 (b) There is a Class 5 brewery license. 10 
 
 (K) THE LICENSE HOLDER SH ALL REPORT TO THE EXECUTIVE DIRECTOR 11 
ANNUALLY ON A FORM P ROVIDED BY THE EXECUTIVE DIRECTOR ON: 12 
 
 (1) THE AMOUNT OF ALCOHO LIC BEVERAGES PRODUC ED UNDER THE 13 
LICENSE; 14 
 
 (2) THE AMOUNT OF ALCOHO	LIC BEVERAGES SOLD F	OR  15 
OFF–PREMISES CONSUMPTION ; AND 16 
 
 (3) THE AMOUNT OF ALCOHO	LIC BEVERAGES SOLD F	OR  17 
ON–PREMISES CONSUMPTION . 18 
 
 (L) EXCEPT AS OTHERWISE P ROVIDED BY LAW , THE LICENSE HOLDER M AY 19 
NOT SELL ALCOHOLIC B EVERAGES FOR OFF –PREMISES CONSUMPTION TO A PERSON 20 
WHO INTENDS TO RESEL L THE ALCOHOLIC BEVE RAGES. 21 
 
2–214. 22 
 
 (a) Except as otherwise provided with respect to a DELIVERY PERMIT ISSU ED 23 
UNDER SUBTITLE 1, PART V OR PART VIII OF THIS TITLE OR A 1–day license in 24 
Division II of this article, and subject to subsection (b) of this section, a holder of a 25 
manufacturer’s license may not sell or deliver alcoholic beverages to a person in the State 26 
that does not hold a license or permit under this article.  27 
 
Article – Tax – General 28 
 
13–825. 29 
   	HOUSE BILL 1217 	21 
 
 
 (a) The Comptroller may require a person whose gross receipts are subject to 1 
admissions and amusement tax and whose business is not a permanent operation in the 2 
State to post security for the tax in the amount that the Comptroller determines. 3 
 
 (b) The Comptroller shall require: 4 
 
 (1) a manufacturer, wholesaler, or nonresident winery permit holder who 5 
sells or delivers beer or wine to retailers in the State to post security for the alcoholic 6 
beverage tax: 7 
 
 (i) in an amount not less than: 8 
 
 1. $1,000 for beer; and 9 
 
 2. $1,000 for wine; and 10 
 
 (ii) if the alcoholic beverage tax on beer and wine paid in any 1 11 
month exceeds $1,000, in an additional amount at least equal to the excess; 12 
 
 (2) a manufacturer or wholesaler who sells or delivers any distilled spirits 13 
or any wine and distilled spirits in the State to post a security for the alcoholic beverage 14 
tax: 15 
 
 (i) in an amount not less than $5,000; and 16 
 
 (ii) in an additional amount: 17 
 
 1. equal to twice the amount of its largest monthly alcoholic 18 
beverage tax liability for wine and distilled spirits in the preceding calendar year less 19 
$5,000; or 20 
 
 2. if the information for the preceding calendar year is not 21 
available or cannot be provided, equal to the amount that the Comptroller requires; and 22 
 
 (3) except as provided in subsection (i) of this section, a holder of a direct 23 
wine shipper’s permit, DIRECT BEER SHIPPER ’S PERMIT, OR DIRECT LIQUOR 24 
SHIPPER’S PERMIT to post security for the alcoholic beverage tax in an amount not less 25 
than $1,000. 26 
 
 (i) A person need not post security under subsection (b)(3) of this section if: 27 
 
 (1) the person is a manufacturer that has posted security under subsection 28 
(b)(2) of this section; or 29 
 
 (2) at any time starting 3 years after the Comptroller first issues a direct 30 
wine shipper’s permit to the person, the Comptroller: 31 
  22 	HOUSE BILL 1217  
 
 
 (i) determines that the person has a substantial record of tax and 1 
reporting compliance; and 2 
 
 (ii) waives the security requirement. 3 
 
 SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 4 
as follows: 5 
 
Article – Alcoholic Beverages and Cannabis  6 
 
2–202. 7 
 
 (a) There is a Class 1 distillery license. 8 
 
 (c) A license holder may: 9 
 
 (1) establish and operate a plant for distilling, rectifying, blending, and 10 
bottling, at the location described in the license: 11 
 
 (i) brandy; 12 
 
 (ii) rum; 13 
 
 (iii) whiskey; 14 
 
 (iv) alcohol; and 15 
 
 (v) neutral spirits; 16 
 
 (2) sell and deliver the alcoholic beverages: 17 
 
 (i) in bulk to a person in the State that is authorized to acquire 18 
them; and 19 
 
 (ii) to a person outside the State that is authorized to acquire them; 20 
 
 (3) manufacture an alcoholic beverage listed in item (1) of this subsection 21 
in the name of another person or under a trade name if the other person or trade name also 22 
holds a Class 1 distillery license; 23 
 
 (4) acquire alcoholic beverages from the holder of a manufacturer’s license 24 
or wholesaler’s license or nonresident dealer’s permit for use in manufacturing; 25 
 
 (5) (i) conduct guided tours of the licensed premises; 26 
 
 (ii) at no cost or for a fee, serve to an individual who has attained the 27 
legal drinking age and participated in a guided tour of the licensed premises, not more than 28   	HOUSE BILL 1217 	23 
 
 
2 ounces of products, with each product sample consisting of not more than one–half ounce 1 
from a single product manufactured by the license holder; 2 
 
 (iii) serve samples blended with other products manufactured by the 3 
license holder or nonalcoholic ingredients; and 4 
 
 (iv) sell [not more than 2.25 liters of] products manufactured on the 5 
licensed premises, for off–premises consumption, and related merchandise to an individual 6 
who has attained the legal drinking age [and participated in a guided tour of the licensed 7 
premises]; and 8 
 
 (6) subject to subsection (i) of this section, sell liquor manufactured by the 9 
license holder that is mixed with other nonalcoholic ingredients. 10 
 
2–207. 11 
 
 (b) There is a Class 5 brewery license. 12 
 
 (c) A license holder may: 13 
 
 (1) establish and operate a plant for brewing and bottling malt beverages 14 
at the location described in the license; 15 
 
 (2) import beer from a holder of a nonresident dealer’s permit; 16 
 
 (3) contract to brew and bottle beer with and on behalf of the holder of a 17 
Class 2 rectifying license, Class 5 brewery license, Class 7 micro–brewery license, Class 8 18 
farm brewery license, or a nonresident dealer’s permit; 19 
 
 (4) sell and deliver beer to: 20 
 
 (i) a holder of a wholesaler’s license that is authorized to acquire 21 
beer; or 22 
 
 (ii) a person outside of the State that is authorized to acquire beer; 23 
 
 (5) subject to subsection (i) of this section, serve, at the location described 24 
in the license and at no charge, samples of beer, consisting of a total of not more than 18 25 
ounces of beer per visit, to an individual who: 26 
 
 (i) has attained the legal drinking age; and 27 
 
 (ii) is participating in a guided tour of the brewery or attends a 28 
scheduled promotional event or other organized activity at the brewery; 29 
  24 	HOUSE BILL 1217  
 
 
 (6) subject to subsections (d) and (i) of this section, sell beer for  1 
off–premises consumption at the location described in the license, at retail in a container 2 
other than a keg to an individual who has attained legal drinking age; 3 
 
 (7) subject to subsection (f) of this section, sell beer at the location described 4 
in the license for on–premises consumption; and 5 
 
 (8) brew and bottle malt beverages at a location listed on a permit issued 6 
to the license holder in accordance with § 2–113 of this title. 7 
 
 (d) An individual may purchase beer under subsection (c)(6) of this section if the 8 
individual[: 9 
 
 (1) purchases not more than 288 ounces of beer per visit; and 10 
 
 (2)] has attained the legal drinking age. 11 
 
 SECTION 3. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall take 12 
effect July 1, 2024, the effective date of Chapter 594 of the Acts of the General Assembly of 13 
2023. If the effective date of Chapter 594 is amended, Section 2 of this Act shall take effect 14 
on the taking effect of Chapter 594. 15 
 
 SECTION 4. AND BE IT FURTHER ENACTED, That the Executive Director of the 16 
Alcohol, Tobacco, and Cannabis Commission shall evaluate the implementation of a 17 
standard digital age verification system that holders of a direct delivery permit issued 18 
under Title 2, Subtitle 1, Part V or Part VIII of the Alcoholic Beverages and Cannabis 19 
Article, as enacted by Section 1 of this Act, shall use to verify the age of a person accepting 20 
the delivery of alcoholic beverages.  21 
 
 SECTION 4. 5. AND BE IT FURTHER ENACTED, That, subject to Section 3 of this 22 
Act, this Act shall take effect July 1, 2024.  23 
 
 
 
 
Approved: 
________________________________________________________________________________  
 Governor. 
________________________________________________________________________________  
  Speaker of the House of Delegates. 
________________________________________________________________________________  
         President of the Senate.