EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb1041*
SENATE BILL 1041
A1 4lr1746
CF 4lr2924
By: Senators Gile and Folden
Introduced and read first time: February 2, 2024
Assigned to: Finance
A BILL ENTITLED
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” 20
Annotated Code of Maryland 21
(2016 Volume and 2023 Supplement) 22
BY repealing and reenacting, without amendments, 23
Article – Alcoholic Beverages and Cannabis 24
Section 2–148, 2–149, 2–153, 2–154, 2–202(a), and 2–207(b) 25
Annotated Code of Maryland 26
(2016 Volume and 2023 Supplement) 27
BY adding to 28 2 SENATE BILL 1041
Article – Alcoholic Beverages and Cannabis 1
Section 2–148.1 and 2–149.1; and 2–167 through 2–176 to be under the new part 2
“Part VIII. Direct–to–Consumer Beer and Liquor Shipping and Delivery” 3
Annotated Code of Maryland 4
(2016 Volume and 2023 Supplement) 5
BY repealing and reenacting, without amendments, 6
Article – Tax – General 7
Section 13–825(a) and (i) 8
Annotated Code of Maryland 9
(2022 Replacement Volume and 2023 Supplement) 10
BY repealing and reenacting, with amendments, 11
Article – Tax – General 12
Section 13–825(b) 13
Annotated Code of Maryland 14
(2022 Replacement Volume and 2023 Supplement) 15
BY repealing reenacting, with amendments, 16
Article – Alcoholic Beverages and Cannabis 17
Section 2–202(c) and 2–207(d) 18
Annotated Code of Maryland 19
(2016 Volume and 2023 Supplement) 20
(As enacted by Section 3 of Chapters 359 and 360 of the Acts of the General Assembly 21
of 2021, as amended by Chapters 477 and 478 of the Acts of the General 22
Assembly of 2022 and Chapter 594 of the Acts of the General Assembly of 23
2023) 24
BY repealing reenacting, without amendments, 25
Article – Alcoholic Beverages and Cannabis 26
Section 2–207(c) 27
Annotated Code of Maryland 28
(2016 Volume and 2023 Supplement) 29
(As enacted by Section 3 of Chapters 359 and 360 of the Acts of the General Assembly 30
of 2021, as amended by Chapters 477 and 478 of the Acts of the General 31
Assembly of 2022 and Chapter 594 of the Acts of the General Assembly of 32
2023) 33
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 34
That the Laws of Maryland read as follows: 35
Article – Alcoholic Beverages and Cannabis 36
2–132. 37
(a) IN THIS SECTION , “AFFILIATE” MEANS A PERSO N THAT DIRECTLY OR 38
INDIRECTLY THROUGH O NE OR MORE INTERMEDI ARIES CONTROLS , IS CONTROLLED 39 SENATE BILL 1041 3
BY, OR IS UNDER COMMON C ONTROL WITH A HOLDER OF A NONRESID ENT BREWERY 1
PERMIT. 2
(B) There is a nonresident brewery permit. 3
[(b)] (C) The Executive Director may issue the permit to a person that: 4
(1) is licensed outside the State to engage in the manufacture of beer; 5
(2) produces in the aggregate from all of its locations not more than 6
[22,500] 45,000 barrels of beer annually, ALONE OR IN COMBINAT ION WITH ITS 7
AFFILIATES; and 8
(3) does not hold a nonresident dealer’s permit. 9
[(c)] (D) (1) The permit authorizes the permit holder to sell and deliver not 10
more than 3,000 barrels of the permit holder’s own beer annually from a location outside 11
the State to a retail license holder or permit holder in the State authorized to acquire the 12
beer. 13
(2) The permit holder shall comply with all the requirements of this article, 14
the Tax – General Article, and the regulations of the Comptroller or Executive Director 15
that apply to a holder of a Class 7 limited beer wholesaler’s license. 16
[(d)] (E) The annual permit fee is $50. 17
2–132.1. 18
(a) IN THIS SECTION , “AFFILIATE” MEANS A PERSON THAT DIRECTLY OR 19
INDIRECTLY THROUGH O NE OR MORE INTERMEDI ARIES CONTROLS , IS CONTROLLED 20
BY, OR IS UNDER COMMON C ONTROL WITH A HOLDER OF A NONRESIDENT 21
DISTILLERY PERMIT . 22
(B) There is a nonresident distillery permit. 23
[(b)] (C) The Executive Director may issue the permit to a person that: 24
(1) is licensed outside the State to engage in the manufacture of liquor; 25
(2) produces in the aggregate from all of its locations not more than 100,000 26
gallons of liquor annually, ALONE OR IN COMBINAT ION WITH ITS AFFILIA TES; and 27
(3) does not hold a nonresident dealer’s permit. 28
4 SENATE BILL 1041
[(c)] (D) (1) The permit authorizes the permit holder to sell and deliver the 1
permit holder’s own liquor from a location outside the State to a retail license holder or 2
permit holder in the State authorized to acquire the liquor. 3
(2) The permit holder shall comply with all the requirements of this article, 4
the Tax – General Article, and the regulations of the Comptroller or Executive Director 5
that apply to a holder of a Class 8 limited liquor wholesaler’s license. 6
[(d)] (E) The annual permit fee is $100. 7
Part V. Direct WINE DELIVERY, DIRECT Wine Shipper’s, and Common Carrier Permits. 8
2–142. 9
(a) In this part the following words have the meanings indicated. 10
(b) (1) “Common carrier” means a business entity that: 11
(i) holds itself out as being available to the public to transport in 12
interstate or foreign commerce for compensation any class of passenger or property; and 13
(ii) holds a common carrier permit issued under § 2–151 of this 14
subtitle. 15
(2) “Common carrier” does not include a business entity that transports 16
only property the business entity owns or that is consigned to the business entity. 17
(c) “DIRECT WINE DELIVERER ” MEANS THE HOLDER OF A DIRECT WINE 18
DELIVERY PERMIT ISSU ED UNDER THIS PART . 19
(D) “Direct wine shipper” means the holder of a direct wine shipper’s permit 20
issued under this part. 21
2–143. 22
(A) A person shall be issued a direct wine shipper’s permit by the Executive 23
Director before the person may engage in shipping wine directly to a consumer in the State. 24
(B) BEFORE A MANUFACTURER MAY ENGAGE IN DELIVERING WINE 25
DIRECTLY TO A CONSUM ER IN THE STATE, THE MANUFACTURER SHA LL BE ISSUED A 26
DIRECT WINE DELIVERY PERMIT. 27
2–144. 28
(A) To qualify for a direct wine shipper’s permit, an applicant shall be: 29
SENATE BILL 1041 5
(1) a person licensed outside the State to engage in the manufacture of 1
wine; or 2
(2) a holder of a Class 3 manufacturer’s license or a Class 4 manufacturer’s 3
license. 4
(B) (1) TO QUALIFY FOR A DIRECT WINE DELIVERY PERMIT, AN 5
APPLICANT SHALL BE : 6
(I) A PERSON LICENSED IN THE STATE TO ENGAGE IN THE 7
MANUFACTURE OF WINE ; AND 8
(II) A HOLDER OF A CLASS 6 LIMITED WINE WHOLESA LER’S 9
LICENSE. 10
(2) THE HOLDER OF A DIREC T WINE DELIVERY PERM IT ISSUED 11
UNDER THIS SUBSECTIO N MAY SELL AND DELIV ER A PRODUCT PRODUCED UNDER 12
THE HOLDER’S LICENSE TO AN INDI VIDUAL IN THE STATE IF: 13
(I) THE DELIVERY IS MADE BY AN EMPLOYEE WHO I S: 14
1. AT LEAST 18 YEARS OLD; AND 15
2. CERTIFIED BY AN APPR OVED ALCOHOL AWARENE SS 16
PROGRAM; 17
(II) THE PURCHASER , OR ANOTHER INDIVIDUA L AT LEAST 21 18
YEARS OLD DESIGNATED BY THE PURCHASER , IS PHYSICALLY PRESEN T TO RECEIVE 19
THE WINE AT THE TIME AND PLAC E OF DELIVERY; 20
(III) THE PURCHASER PAYS F OR THE PURCHASE AT T HE TIME OF 21
ORDER; AND 22
(IV) THE DIRECT WINE DELIVERER AND T HE INDIVIDUAL 23
RECEIVING THE DELIVE RY EACH ENDORSE A DE LIVERY FORM THAT THE EXECUTIVE 24
DIRECTOR APPROVES CER TIFYING THAT THE DIR ECT WINE DELIVERER E XAMINED 25
THE RECIPIENT’S GOVERNMENT –ISSUED IDENTIFICATIO N AND THE RECIPIENT WAS 26
AT LEAST 21 YEARS OLD. 27
2–145. 28
(a) An applicant for a direct wine shipper’s permit OR A DIRECT WINE DEL IVERY 29
PERMIT shall: 30
6 SENATE BILL 1041
(1) submit to the Executive Director a completed application on a form that 1
the Executive Director provides; 2
(2) provide to the Executive Director a copy of the applicant’s current 3
MANUFACTURER ’S license; 4
(3) identify the wines manufactured by the applicant that the applicant 5
intends to ship [into] OR DELIVER TO A CONSUMER IN the State; and 6
(4) pay a fee of $200 for initial issuance of the direct wine shipper’s permit. 7
(b) The Executive Director shall issue a direct wine shipper’s permit OR A 8
DIRECT WINE DELIVERY PERMIT to each applicant who meets the requirements of this 9
part for the permit. 10
2–146. 11
(A) A direct wine shipper’s permit entitles the holder to sell wine manufactured 12
by the holder through a holder of a common carrier permit to a consumer by receiving and 13
filling orders that the consumer transmits by electronic or other means. 14
(B) A DIRECT WINE DELIVERY PERMIT ENTITLES THE HOLDER TO SELL A ND 15
DELIVER WINE MANUFAC TURED BY THE HOLDER DIRECTLY TO A CONSUM ER IN THE 16
STATE BY RECEIVING AN D FILLING ORDERS THA T THE CONSUMER TRANS MITS BY 17
ELECTRONIC OR OTHER MEANS. 18
2–147. 19
The term of a direct wine shipper’s permit OR A DIRECT WINE DELIVERY P ERMIT 20
is 1 year and begins on July 1. 21
2–148. 22
(a) A direct wine shipper shall: 23
(1) ensure that all containers of wine shipped directly to a consumer in the 24
State are conspicuously labeled with: 25
(i) the name of the direct wine shipper; 26
(ii) the name and address of the consumer who is the intended 27
recipient; and 28
(iii) the words “Contains Alcohol: Signature of Person at Least 21 29
Years of Age Required for Delivery”; 30
SENATE BILL 1041 7
(2) report to the Comptroller and the Executive Director information about 1
the direct wine shipper’s wine shipments, in a manner that the Comptroller and the 2
Executive Director determine; 3
(3) file a quarterly tax return in accordance with § 5–201(d) of the Tax – 4
General Article; 5
(4) pay quarterly to the Comptroller all sales taxes and excise taxes due on 6
sales to consumers in the State and calculate the taxes as if the sale were made in the State; 7
(5) maintain for 3 years complete and accurate records of all information 8
needed to verify compliance with this part; 9
(6) allow the Comptroller and the Executive Director to perform an audit 10
of the direct wine shipper’s records on request; and 11
(7) consent to the jurisdiction of the Comptroller, the Executive Director, 12
or other State unit and the State courts concerning enforcement of this section and any 13
related law. 14
(b) A direct wine shipper may not: 15
(1) ship more than 18 9–liter cases of wine each year to a single delivery 16
address; or 17
(2) cause wine to be delivered on Sunday to an address in the State. 18
2–148.1. 19
(A) A DIRECT WINE DELIVERE R SHALL: 20
(1) ENSURE THAT ANY CONT AINER CONTAINING WIN E DELIVERED 21
DIRECTLY TO A CONSUM ER IN THE STATE IS: 22
(I) CONSPICUOUSLY LABELE D WITH: 23
1. THE NAME OF THE MANU FACTURER; 24
2. THE NAME AND ADDRESS OF THE CONSU MER WHO IS 25
THE INTENDED RECIPIE NT; AND 26
3. THE WORDS “CONTAINS ALCOHOL: SIGNATURE OF 27
PERSON AT LEAST 21 YEARS OF AGE REQUIRED FOR DELIVERY”; AND 28
(II) COMMERCIALLY SEALED BY THE MANUFACTURER ; 29 8 SENATE BILL 1041
(2) REPORT TO THE EXECUTIVE DIRECTOR INFORMATION ABOUT 1
THE DELIVERIES , IN A MANNER THAT THE EXECUTIVE DIRECTOR DETERMINES ; 2
(3) FILE A QUARTERLY TAX RETURN IN ACCORDANCE WITH § 3
5–201(D) OF THE TAX – GENERAL ARTICLE; 4
(4) PAY QUARTERLY TO THE COMPTROLLER ALL SALES TAXES AND 5
EXCISE TAXES DUE ON SALES T O CONSUMERS IN THE STATE; 6
(5) MAINTAIN FOR 3 YEARS COMPLETE AND A CCURATE RECORDS OF 7
ALL INFORMATION NEED ED TO VERIFY COMPLIA NCE WITH THIS PART ; AND 8
(6) ALLOW THE COMPTROLLER OR THE EXECUTIVE DIRECTOR TO 9
PERFORM AN AUDIT OF THE PERMIT HOLDER ’S RECORDS ON REQUEST . 10
(B) THE HOLDER OF A DIREC T WINE DELIVERY PERM IT MAY NOT CAUSE 11
MORE THAN 18 9–LITER CASES OF WINE TO BE DELIVERED TO A SINGLE ADDRESS IN 12
A SINGLE CALENDAR YE AR. 13
2–149. 14
(a) A direct wine shipper may renew its direct wine shipper’s permit each year if 15
the direct wine shipper: 16
(1) is otherwise entitled to have a direct wine shipper’s permit; 17
(2) provides to the Executive Director a copy of its current permit; 18
(3) identifies the wines manufactured by the direct wine shipper that the 19
direct wine shipper intends to ship into the State; and 20
(4) pays to the Executive Director a renewal fee of $200. 21
(b) The Executive Director may deny a renewal application of a direct wine 22
shipper who fails to: 23
(1) file a tax return required under this part; 24
(2) pay a fee or tax when due; or 25
(3) after receiving notice, comply with this article or a regulation that the 26
Comptroller or Executive Director adopts. 27
2–149.1. 28 SENATE BILL 1041 9
(A) A DIRECT WINE DELIVERE R MAY RENEW ITS DIRE CT WINE DELIVERY 1
PERMIT EACH YEAR IF THE DIRECT WINE DELI VERER: 2
(1) IS OTHERWISE ENTITLE D TO HOLD A DIRECT W INE DELIVERY 3
PERMIT; 4
(2) PROVIDES TO THE EXECUTIVE DIRECTOR AND THE 5
COMPTROLLER A COPY OF ITS CURRENT PERMIT ; AND 6
(3) PAYS THE EXECUTIVE DIRECTOR A RENEWAL FE E OF $200. 7
(B) THE EXECUTIVE DIRECTOR MAY DENY A R ENEWAL APPLICATION F OR A 8
DIRECT WINE DELIVERY PERMIT IF THE HOLDER FAILS TO : 9
(1) FILE A TAX RETURN RE QUIRED UNDER THIS PART; 10
(2) PAY A FEE OR TAX WHE N DUE; OR 11
(3) AFTER RECE IVING NOTICE, COMPLY WITH THIS ART ICLE OR A 12
REGULATION THAT THE EXECUTIVE DIRECTOR ADOPTS UNDER THIS ARTICLE. 13
2–150. 14
(a) To receive a direct shipment OR DIRECT DELIVERY of wine, a consumer in 15
the State shall be at least 21 years old. 16
(b) A person who receives a shipment OR DELIVERY of wine shall use the 17
shipment for personal consumption only and may not resell the shipment OR DELIVERY. 18
2–151. 19
(a) There is a common carrier permit. 20
(b) A holder of a common carrier permit may deliver [wine] ALCOHOLIC 21
BEVERAGES from a location inside or outside the State to a consumer in the State for the 22
consumer’s personal use under this [part] SUBTITLE. 23
(c) A person shall be issued a common carrier permit before the person may 24
engage in transporting: 25
(1) wine from a direct wine shipper to a consumer; 26
(2) BEER FROM A DIRECT B EER SHIPPER TO A CON SUMER; OR 27 10 SENATE BILL 1041
(3) LIQUOR FROM A DIRECT LIQUOR SHIPPER TO A CONSUMER . 1
(d) The term of a common carrier permit is 1 year and begins on July 1. 2
(e) To complete delivery of a shipment, the common carrier shall require from a 3
consumer at the address listed on the shipping label: 4
(1) the signature of the consumer or another individual at the address who 5
is at least 21 years old; and 6
(2) government–issued photographic identification showing that the 7
signing individual is at least 21 years old. 8
(f) A common carrier shall refuse delivery when the intended receiving individual 9
appears to be under the age of 21 years or refuses to present valid identification. 10
(g) At the time of initial application for a common carrier permit and on request 11
of the Executive Director, a common carrier shall submit to the Executive Director 12
information concerning the training of its drivers in verifying the age of recipients of direct 13
wine shipments, DIRECT BEER SHIPMENT S, OR DIRECT LIQUOR SHI PMENTS under this 14
[part] SUBTITLE. 15
(h) At least once each year, in a manner acceptable to the Executive Director, a 16
holder of a common carrier permit shall verify that the shipper of wine, BEER, OR LIQUOR 17
into the State under this part holds a valid direct wine shipper’s permit, DIRECT BEER 18
SHIPPER’S PERMIT, OR DIRECT LIQUOR SHI PPER’S PERMIT. 19
(i) A holder of a common carrier permit that delivers [wine solely] ALCOHOLIC 20
BEVERAGES under this [part] SUBTITLE may not be required to obtain a transportation 21
permit issued under § 2–118 or § 2–119 of this subtitle in addition to the common carrier 22
permit. 23
(j) The permit fee is $100. 24
2–152. 25
(a) A common carrier shall report quarterly to the Executive Director: 26
(1) the date of each delivery of [wine] ALCOHOLIC BEVERAGES in the 27
State; and 28
(2) the name and address of: 29
(I) the direct wine shipper, THE DIRECT BEER SHIP PER, OR THE 30
DIRECT LIQUOR SHIPPE R; and 31 SENATE BILL 1041 11
(II) the receiving consumer of each delivery. 1
(b) A common carrier shall maintain for 3 years complete and accurate records of 2
all information needed to verify compliance with this part. 3
2–153. 4
A person without a direct wine shipper’s permit may not ship wine directly to a 5
consumer in the State. 6
2–154. 7
Each violation of this part is a separate violation. 8
2–165. RESERVED. 9
2–166. RESERVED. 10
PART VIII. DIRECT–TO–CONSUMER BEER AND LIQUOR SHIPPING AND DELIVERY. 11
2–167. 12
(A) IN THIS PART THE FOLL OWING WORDS HAVE THE MEANINGS 13
INDICATED. 14
(B) “COMMON CARRIER ” HAS THE MEANING STATED IN § 2–142 OF THIS 15
SUBTITLE. 16
(C) “DIRECT BEER DELIVERER ” MEANS THE HOLDER OF A DIRECT BEER 17
DELIVERY PERMIT ISSU ED UNDER THIS PART . 18
(D) “DIRECT BEER SHIPPER ” MEANS THE HOLDER OF A DIRECT BEER 19
SHIPPER’S PERMIT ISSUED UNDER THIS PART. 20
(E) “DIRECT LIQUOR DELIVER ER” MEANS THE HOLDER OF A DIRE CT 21
LIQUOR DELIVERY PERM IT ISSUED UNDER THIS PART. 22
(F) “DIRECT LIQUOR SHIPPER ” MEANS THE HOLDER OF A DIRECT LIQUOR 23
SHIPPER’S PERMIT ISSUED UNDER THIS PART. 24
(G) “PERMIT” MEANS A DIRECT BEER DELIVERY PERMIT, DIRECT BEER 25
SHIPPER’S PERMIT, DIRECT LIQUOR DELIVE RY PERMIT, OR DIRECT LIQUOR 26
SHIPPER’S PERMIT ISSUED BY THE EXECUTIVE DIRECTOR UNDER THIS PART. 27 12 SENATE BILL 1041
2–168. 1
(A) BEFORE A MANUFACTURER MAY ENGAGE IN DELIVERING BEER 2
DIRECTLY TO A CONSUM ER IN THE STATE, THE MANUFACTURER SHALL BE ISSUED A 3
DIRECT BEER DELIVERY PERMIT. 4
(B) BEFORE A MANUFACTURER MAY ENGAGE IN DELIVERING LIQUOR 5
DIRECTLY TO A CONSUM ER IN THE STATE, THE MANUFACTURER SHALL BE ISSUED 6
A DIRECT LIQUOR DELIVERY PERM IT. 7
2–169. 8
(A) (1) TO QUALIFY FOR A DIRE CT BEER DELIVERY PER MIT, AN 9
APPLICANT SHALL BE : 10
(I) A PERSON LICENSED IN THE STATE TO ENGAGE IN TH E 11
MANUFACTURE OF BEER ; AND 12
(II) A HOLDER OF A CLASS 7 LIMITED BEER WHOLESALER ’S 13
LICENSE. 14
(2) THE HOLDER OF A DIREC T BEER DELIVERY PERM IT ISSUED 15
UNDER § 2–170 OF THIS SUBTITLE MAY SELL AND DELIVER A P RODUCT PRODUCED 16
UNDER THE HOLDER ’S LICENSE TO AN INDI VIDUAL IN THE STATE IF: 17
(I) THE DELIVERY IS MADE BY AN EMPLOYEE WHO IS: 18
1. AT LEAST 18 YEARS OLD; AND 19
2. CERTIFIED BY AN APPR OVED ALCOHOL AWARENE SS 20
PROGRAM; 21
(II) THE PURCHASER , OR ANOTHER INDIVIDUA L AT LEAST 21 22
YEARS OLD DESIGNATED BY THE PURCHASER , IS PHYSICALLY PRESEN T TO RECEIVE 23
THE BEER AT THE TIME AND PLACE OF DEL IVERY; 24
(III) THE PURCHASER PAYS F OR THE PURCHASE AT T HE TIME OF 25
ORDER; AND 26
(IV) THE DIRECT BEER DELIVERER AND THE IN DIVIDUAL 27
RECEIVING THE DELIVE RY EACH ENDORSE A DE LIVERY FORM THAT THE EXECUTIVE 28
DIRECTOR APPROVES CER TIFYING THAT THE DIRECT BEER DELIVERER EXAMINED 29 SENATE BILL 1041 13
THE RECIPIENT’S GOVERNMENT –ISSUED IDENTIFICATION AND T HE RECIPIENT WAS 1
AT LEAST 21 YEARS OLD. 2
(B) TO QUALIFY FOR A DIRE CT BEER SHIPP ER’S PERMIT, AN APPLICANT 3
SHALL BE: 4
(1) IF SHIPPING FROM A L OCATION OUTSIDE THE STATE, THE 5
HOLDER OF A NONRESID ENT BREWERY PERMIT ; OR 6
(2) IF SHIPPING FROM A L OCATION INSIDE THE STATE: 7
(I) A PERSON LICENSED IN THE STATE TO ENGAGE IN TH E 8
MANUFACTURE OF BEER ; AND 9
(II) A HOLDER OF A CLASS 7 LIMITED BEER WHOLESA LER’S 10
LICENSE. 11
(C) (1) TO QUALIFY FOR A DIRE CT LIQUOR DELIVERY P ERMIT, AN 12
APPLICANT SHALL BE : 13
(I) A PERSON ISSUED A LICENSE BY THE EXECUTIVE DIRECTOR 14
IN THE STATE TO ENGAGE IN TH E MANUFACTURE OF LIQUOR; AND 15
(II) A HOLDER OF A CLASS 8 LIMITED WHOLESALER ’S LICENSE. 16
(2) THE HOLDER OF A DIREC T LIQUOR DELIVERY PE RMIT ISSUED 17
UNDER § 2–170 OF THIS SUBTITLE MAY SELL AND DELIVER A PRODUCT PRODUCED 18
UNDER THE HOLDER ’S LICENSE TO AN INDI VIDUAL IN THE STATE IF: 19
(I) THE DELIVERY IS MADE BY AN EMPLOYEE WHO I S: 20
1. AT LEAST 18 YEARS OLD; AND 21
2. CERTIFIED BY AN APPR OVED ALCOHOL AWARENE SS 22
PROGRAM; 23
(II) THE PURCHASER , OR ANOTHER INDIVIDUA L AT LEAST 21 24
YEARS OLD DESIGNATED BY THE PURCHASER , IS PHYSICALLY PRESEN T TO RECEIVE 25
THE LIQUOR AT THE TIME AND PLAC E OF DELIVERY; 26
(III) THE PURCHASER PAYS F OR THE PURCHASE AT T HE TIME OF 27
ORDER; AND 28
14 SENATE BILL 1041
(IV) THE DIRECT LIQUOR DELIVERER AND THE IN DIVIDUAL 1
RECEIVING THE DELIVE RY EACH ENDORSE A DE LIVERY FORM THAT THE EXECUTIVE 2
DIRECTOR APPROVES CER TIFYING THAT THE DIRECT LIQUOR DELIVERER 3
EXAMINED THE RECIPIE NT’S GOVERNMENT –ISSUED IDENTIFICATION AND T HE 4
RECIPIENT WAS A T LEAST 21 YEARS OLD. 5
(D) TO QUALIFY FOR A DIRE CT LIQUOR SHIPP ER’S PERMIT, AN APPLICANT 6
SHALL BE: 7
(1) IF SHIPPING FROM A L OCATION OUTSIDE THE STATE, A HOLDER 8
OF A NONRESIDENT DISTILLERY PERMIT; OR 9
(2) IF SHIPPING FROM A L OCATION INSIDE THE STATE: 10
(I) A PERSON ISSUED A LI CENSE BY THE EXECUTIVE DIRECTOR 11
IN THE STATE TO ENGAGE IN TH E MANUFACTURE OF LIQ UOR; AND 12
(II) A HOLDER OF A CLASS 8 LIMITED WHOLESALER ’S LICENSE. 13
2–170. 14
(A) AN APPLICANT FOR A PE RMIT UNDER THIS PART SHALL: 15
(1) SUBMIT TO THE EXECUTIVE DIRECTOR A COMPLETED 16
APPLICATION ON A FOR M THAT THE EXECUTIVE DIRECTOR PROVIDES ; 17
(2) PROVIDE TO THE EXECUTIVE DIRECTOR A COPY OF TH E 18
APPLICANT’S CURRENT HOME STATE MANUFACTU RER’S LICENSE; 19
(3) IDENTIFY THE PRODUCT MANUFACTURED BY THE APPLICANT 20
THAT THE APPLICANT I NTENDS TO SHIP OR DELIVER TO A CONSUMER IN THE STATE; 21
AND 22
(4) PAY A FEE OF $200 FOR INITIAL ISSUANCE OF THE PERMIT. 23
(B) IF AN APPLICANT MEETS THE REQUIREMENTS OF THIS PART, THE 24
EXECUTIVE DIRECTOR SHALL ISSUE TO THE APPLICANT : 25
(1) A DIRECT BEER DELIVE RY PERMIT; 26
(2) A DIRECT BEER SHIPP ER’S PERMIT; 27
(3) A DIRECT LIQUOR DELI VERY PERMIT; OR 28 SENATE BILL 1041 15
(4) A DIRECT LIQUOR SHIP PER’S PERMIT. 1
2–171. 2
(A) A DIRECT BEER DELIVERY PERMIT ENTITLES THE HOLDER TO SELL A ND 3
DELIVER BEER MANUFAC TURED BY THE HOLDER DIRECTLY TO A CONSUM ER IN THE 4
STATE BY RECEIVING AN D FILLING ORDERS THAT THE CONSUMER TR ANSMITS BY 5
ELECTRONIC OR OTHER MEANS. 6
(B) A DIRECT BEER SHIPP ER’S PERMIT EN TITLES THE HOLDER TO SELL 7
BEER MANUFACTURED BY THE HOLDER THROUGH A HOLDER OF A COMMON 8
CARRIER PERMIT TO A CONSUMER BY RECEIVIN G AND FILLING ORDERS THAT THE 9
CONSUMER TRANSMITS B Y ELECTRONIC OR OTHE R MEANS. 10
(C) A DIRECT LIQUOR DELIVE RY PERMIT EN TITLES THE HOLDER TO SEL L 11
AND DELIVER LIQUOR MANUF ACTURED BY THE HOLDE R DIRECTLY TO A CONS UMER 12
IN THE STATE BY RECEIVING AN D FILLING ORDERS THA T THE CONSUMER 13
TRANSMITS BY ELECTRO NIC OR OTHER MEANS . 14
(D) A DIRECT LIQUOR SHIPP ER’S PERMIT ENTITLES THE HOLDER TO SEL L 15
LIQUOR MANUFACTURED BY THE HOLDER THROUG H A HOLDER OF A COMM ON 16
CARRIER PERMIT TO A CONSUMER BY RECEIVIN G AND FILLING ORDERS THAT THE 17
CONSUMER TRANSMITS B Y ELECTRONIC OR OTHE R MEANS. 18
2–172. 19
THE TERM OF A PERMIT ISSUED UNDER THIS PA RT IS 1 YEAR AND BEGINS ON 20
JULY 1. 21
2–173. 22
(A) A PERSON WHO HOLDS A P ERMIT UNDER THIS PAR T SHALL: 23
(1) ENSURE THAT ANY CONTAINER C ONTAINING AN ALCOHOL IC 24
BEVERAGE DELIVERED OR SHIPPED DIRECTLY TO A CONSUMER IN THE STATE IS: 25
(I) CONSPICUOUSLY LABELE D WITH: 26
1. THE NAME OF THE MANUFACTURER ; 27
2. THE NAME AND ADDRESS OF THE CONSUMER WHO IS 28
THE INTENDED RECIPIE NT; AND 29 16 SENATE BILL 1041
3. THE WORDS “CONTAINS ALCOHOL: SIGNATURE OF 1
PERSON AT LEAST 21 YEARS OF AGE REQUIRED FOR DELIVERY”; AND 2
(II) COMMERCIALLY SEALED BY THE MANUFACTURER ; 3
(2) REPORT TO THE EXECUTIVE DIRECTOR INFORMATION ABOUT 4
THE SHIPMENTS OR DEL IVERIES, IN A MANNER THAT THE EXECUTIVE DIRECTOR 5
DETERMINES ; 6
(3) FILE A QUARTERLY TAX RETURN IN ACCORDANCE WITH § 7
5–201(D) OF THE TAX – GENERAL ARTICLE; 8
(4) PAY QUARTERLY TO THE COMPTROLLER ALL SALES TAXES AND 9
EXCISE TAXES DUE ON SALES TO CONSUMERS I N THE STATE AND CALCULATE T HE 10
TAXES AS IF THE SALE WERE MADE IN THE STATE; 11
(5) MAINTAIN FOR 3 YEARS COMPLETE AND A CCURATE RECORDS OF 12
ALL INFORMATION NEED ED TO VERIFY COMPLIA NCE WITH THIS PART ; 13
(6) ALLOW THE COMPTROLLER OR THE EXECUTIVE DIRECTOR TO 14
PERFORM AN AUDIT OF THE PERMIT HOLDER ’S RECORDS ON REQUEST ; AND 15
(7) CONSENT TO THE JURIS DICTION OF THE EXECUTIVE DIRECTOR, 16
COMPTROLLER , OR OTHER STATE UNIT AND THE STATE COURTS CONCERNING 17
ENFORCEMENT OF THIS PART AND ANY RELATED LAW. 18
(B) (1) THE HOLDER OF A DIREC T BEER DELIVERY PERM IT OR A DIRECT 19
BEER SHIPPER’S PERMIT MAY NOT CAUSE MORE THAN 3,456 OUNCES OF BEER TO BE 20
DELIVERED TO A SINGLE DELIVERY ADDRESS IN A SINGLE CALENDAR YEAR. 21
(2) THE HOLDER OF A DIREC T LIQUOR DELIVERY PE RMIT OR A 22
DIRECT LIQUOR SHIPP ER’S PERMIT MAY NOT CAUSE M ORE THAN 24 STANDARD 23
750–MILLILITER BOTTLES O F LIQUOR, OR AN EQUIVALENT AMO UNT, TO BE 24
DELIVERED TO A SINGL E DELIVERY ADDRES S IN A SINGLE CALEND AR YEAR. 25
2–174. 26
(A) A HOLDER OF A PERMIT ISSUED UNDER THIS PART MAY RENEW THE 27
PERMIT EACH YEAR I F THE HOLDER: 28
(1) IS OTHERWISE ENTITLE D TO HOLD A PERMIT UNDER THIS PART ; 29
SENATE BILL 1041 17
(2) PROVIDES TO THE EXECUTIVE DIRECTOR AND THE 1
COMPTROLLER A COPY OF ITS CURRENT PERMIT ; AND 2
(3) PAYS THE EXECUTIVE DIRECTOR A RENEWAL FE E OF $200. 3
(B) THE EXECUTIVE DIRECTOR MAY DENY A R ENEWAL APPLICATION F OR A 4
PERMIT ISSUED UNDER THIS PART IF THE HOL DER FAILS TO: 5
(1) FILE A TAX RETURN RE QUIRED UNDER THIS SUBTITLE; 6
(2) PAY A FEE OR TAX WHE N DUE; OR 7
(3) AFTER RECEIVING NOTI CE, COMPLY WITH THIS ART ICLE OR A 8
REGULATION THAT THE EXECUTIVE DIRECTOR ADOPTS UNDER THIS ARTICLE. 9
2–175. 10
(A) TO RECEIVE A DIRECT D ELIVERY OR DIRECT SHIPMENT OF BEER OR 11
LIQUOR, A CONSUMER IN THE STATE SHALL BE AT LEA ST 21 YEARS OLD. 12
(B) A PERSON WHO RECEIVES A DELIVERY OR SHIPME NT OF ALCOHOLIC 13
BEVERAGES UNDER THIS PART SHALL USE THE A LCOHOLIC BEVERAGES F OR 14
PERSONAL CONSUMPTION ONLY AND MAY NOT RESELL THE DELIVERY OR SHIPMENT 15
IN WHOLE OR IN PART . 16
2–176. 17
(A) A PERSON WITHOUT A DIR ECT BEER SHIPPER ’S PERMIT ISSUED UNDE R 18
THIS PART MAY NOT SH IP BEER DIRECTLY TO A CONSUMER IN THE STATE. 19
(B) A PERSON WITHOUT A DIR ECT LIQUOR SHIPPER ’S PERMIT ISSUED 20
UNDER THIS PART MAY NOT SHIP LIQUOR DIREC TLY TO A CONSUMER IN THE STATE. 21
Article – Tax – General 22
13–825. 23
(a) The Comptroller may require a person whose gross receipts are subject to 24
admissions and amusement tax and whose business is not a permanent operation in the 25
State to post security for the tax in the amount that the Comptroller determines. 26
(b) The Comptroller shall require: 27
18 SENATE BILL 1041
(1) a manufacturer, wholesaler, or nonresident winery permit holder who 1
sells or delivers beer or wine to retailers in the State to post security for the alcoholic 2
beverage tax: 3
(i) in an amount not less than: 4
1. $1,000 for beer; and 5
2. $1,000 for wine; and 6
(ii) if the alcoholic beverage tax on beer and wine paid in any 1 7
month exceeds $1,000, in an additional amount at least equal to the excess; 8
(2) a manufacturer or wholesaler who sells or delivers any distilled spirits 9
or any wine and distilled spirits in the State to post a security for the alcoholic beverage 10
tax: 11
(i) in an amount not less than $5,000; and 12
(ii) in an additional amount: 13
1. equal to twice the amount of its largest monthly alcoholic 14
beverage tax liability for wine and distilled spirits in the preceding calendar year less 15
$5,000; or 16
2. if the information for the preceding calendar year is not 17
available or cannot be provided, equal to the amount that the Comptroller requires; and 18
(3) except as provided in subsection (i) of this section, a holder of a direct 19
wine shipper’s permit, DIRECT BEER SHIPP ER’S PERMIT, OR DIRECT LIQUOR 20
SHIPPER’S PERMIT to post security for the alcoholic beverage tax in an amount not less 21
than $1,000. 22
(i) A person need not post security under subsection (b)(3) of this section if: 23
(1) the person is a manufacturer that has posted security under subsection 24
(b)(2) of this section; or 25
(2) at any time starting 3 years after the Comptroller first issues a direct 26
wine shipper’s permit to the person, the Comptroller: 27
(i) determines that the person has a substantial record of tax and 28
reporting compliance; and 29
(ii) waives the security requirement. 30
SENATE BILL 1041 19
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 1
as follows: 2
Article – Alcoholic Beverages and Cannabis 3
2–202. 4
(a) There is a Class 1 distillery license. 5
(c) A license holder may: 6
(1) establish and operate a plant for distilling, rectifying, blending, and 7
bottling, at the location described in the license: 8
(i) brandy; 9
(ii) rum; 10
(iii) whiskey; 11
(iv) alcohol; and 12
(v) neutral spirits; 13
(2) sell and deliver the alcoholic beverages: 14
(i) in bulk to a person in the State that is authorized to acquire 15
them; and 16
(ii) to a person outside the State that is authorized to acquire them; 17
(3) manufacture an alcoholic beverage listed in item (1) of this subsection 18
in the name of another person or under a trade name if the other person or trade name also 19
holds a Class 1 distillery license; 20
(4) acquire alcoholic beverages from the holder of a manufacturer’s license 21
or wholesaler’s license or nonresident dealer’s permit for use in manufacturing; 22
(5) (i) conduct guided tours of the licensed premises; 23
(ii) at no cost or for a fee, serve to an individual who has attained the 24
legal drinking age and participated in a guided tour of the licensed premises, not more than 25
2 ounces of products, with each product sample consisting of not more than one–half ounce 26
from a single product manufactured by the license holder; 27
(iii) serve samples blended with other products manufactured by the 28
license holder or nonalcoholic ingredients; and 29 20 SENATE BILL 1041
(iv) sell [not more than 2.25 liters of] products manufactured on the 1
licensed premises, for off–premises consumption, and related merchandise to an individual 2
who has attained the legal drinking age [and participated in a guided tour of the licensed 3
premises]; and 4
(6) subject to subsection (i) of this section, sell liquor manufactured by the 5
license holder that is mixed with other nonalcoholic ingredients. 6
2–207. 7
(b) There is a Class 5 brewery license. 8
(c) A license holder may: 9
(1) establish and operate a plant for brewing and bottling malt beverages 10
at the location described in the license; 11
(2) import beer from a holder of a nonresident dealer’s permit; 12
(3) contract to brew and bottle beer with and on behalf of the holder of a 13
Class 2 rectifying license, Class 5 brewery license, Class 7 micro–brewery license, Class 8 14
farm brewery license, or a nonresident dealer’s permit; 15
(4) sell and deliver beer to: 16
(i) a holder of a wholesaler’s license that is authorized to acquire 17
beer; or 18
(ii) a person outside of the State that is authorized to acquire beer; 19
(5) subject to subsection (i) of this section, serve, at the location described 20
in the license and at no charge, samples of beer, consisting of a total of not more than 18 21
ounces of beer per visit, to an individual who: 22
(i) has attained the legal drinking age; and 23
(ii) is participating in a guided tour of the brewery or attends a 24
scheduled promotional event or other organized activity at the brewery; 25
(6) subject to subsections (d) and (i) of this section, sell beer for 26
off–premises consumption at the location described in the license, at retail in a container 27
other than a keg to an individual who has attained legal drinking age; 28
(7) subject to subsection (f) of this section, sell beer at the location described 29
in the license for on–premises consumption; and 30
SENATE BILL 1041 21
(8) brew and bottle malt beverages at a location listed on a permit issued 1
to the license holder in accordance with § 2–113 of this title. 2
(d) An individual may purchase beer under subsection (c)(6) of this section if the 3
individual[: 4
(1) purchases not more than 288 ounces of beer per visit; and 5
(2)] has attained the legal drinking age. 6
SECTION 3. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall take 7
effect July 1, 2024, the effective date of Chapter 594 of the Acts of the General Assembly of 8
2023. If the effective date of Chapter 594 is amended, Section 2 of this Act shall take effect 9
on the taking effect of Chapter 594. 10
SECTION 4. AND BE IT FURTHER ENACTED, That , subject to Section 3 of this 11
Act, this Act shall take effect July 1, 2024. 12