WES MOORE, Governor Ch. 918 – 1 – Chapter 918 (Senate Bill 1041) AN ACT concerning Alcoholic Beverages – Breweries, Wineries, and Distilleries – Direct Delivery and Direct Shipment FOR the purpose of establishing certain permits authorizing the direct delivery or shipment of certain alcoholic beverages to a consumer in the State; establishing that certain affiliates of the holders of nonresident brewery permits or nonresident distillery permits are included in certain production limits; authorizing common carriers to transport, if applicable, beer or liquor; establishing the requirements an individual must meet in order to qualify for a direct–to–consumer alcoholic beverages delivery or shipping permit; establishing a maximum amount that a recipient of an alcoholic beverages delivery or shipment may receive annually; repealing a maximum amount that a consumer may purchase when visiting certain alcoholic beverage manufacturers; requiring a holder of a direct beer shipper’s permit or direct liquor shipper’s permit to post security for the alcoholic beverage tax in a certain amount; and generally relating to alcoholic beverages. BY repealing and reenacting, with amendments, Article – Alcoholic Beverages and Cannabis Section 2–132 and 2–132.1; and 2–142 through 2–147 and 2–150 through 2–152 to be under the amended part “Part V. Direct Wine Delivery, Direct Wine Shipper’s, and Common Carrier Permits”; and 2–202(k), 2–205(c) and (d), 2–206(h), and 2–214(a) Annotated Code of Maryland (2016 Volume and 2023 Supplement) BY repealing and reenacting, without amendments, Article – Alcoholic Beverages and Cannabis Section 2–148, 2–149, 2–153, 2–154, 2–202(a), 2–205(a), 2–206(a), and 2–207(b) Annotated Code of Maryland (2016 Volume and 2023 Supplement) BY adding to Article – Alcoholic Beverages and Cannabis Section 2–148.1 and 2–149.1; and 2–167 through 2–176 2–175 to be under the new part “Part VIII. Direct–to–Consumer Beer and Liquor Shipping and Delivery”; and 2–202(k) and (l), 2–205(d) and (e), 2–206(h) and (i), and 2–207(k) and (l) Annotated Code of Maryland (2016 Volume and 2023 Supplement) BY repealing and reenacting, without amendments, Article – Tax – General Ch. 918 2024 LAWS OF MARYLAND – 2 – Section 13–825(a) and (i) Annotated Code of Maryland (2022 Replacement Volume and 2023 Supplement) BY repealing and reenacting, with amendments, Article – Tax – General Section 13–825(b) Annotated Code of Maryland (2022 Replacement Volume and 2023 Supplement) BY repealing and reenacting, with amendments, Article – Alcoholic Beverages and Cannabis Section 2–202(c) and 2–207(d) Annotated Code of Maryland (2016 Volume and 2023 Supplement) (As enacted by Section 3 of Chapters 359 and 360 of the Acts of the General Assembly of 2021, as amended by Chapters 477 and 478 of the Acts of the General Assembly of 2022 and Chapter 594 of the Acts of the General Assembly of 2023) BY repealing and reenacting, without amendments, Article – Alcoholic Beverages and Cannabis Section 2–207(c) Annotated Code of Maryland (2016 Volume and 2023 Supplement) (As enacted by Section 3 of Chapters 359 and 360 of the Acts of the General Assembly of 2021, as amended by Chapters 477 and 478 of the Acts of the General Assembly of 2022 and Chapter 594 of the Acts of the General Assembly of 2023) Preamble WHEREAS, Section 1–201(a)(1)(i) of the Alcoholic Beverages and Cannabis Article states, in part, that it is the policy of the State to regulate and control the manufacture, sale, distribution, transportation, and storage of alcoholic beverages in the State for the purposes of obtaining respect and obedience to the law and to foster and promote temperance; and WHEREAS, Section 1–201(b)(1) of the Alcoholic Beverages and Cannabis Article states that it is the policy of the State to authorize the Office of the Executive Director and others to displace or limit economic competition by regulating and engaging in the sale or distribution of alcoholic beverages; and WHEREAS, Section 1–201(b)(1)(i) through (iv) of the Alcoholic Beverages and Cannabis Article states that it is the policy of the State to obtain respect and obedience for the law, promote and foster temperance, prevent deceptive, destructive, and unethical WES MOORE, Governor Ch. 918 – 3 – business practices, and promote the general welfare of residents of the State by controlling the sale and distribution of alcoholic beverages; and WHEREAS, To accomplish and ensure that the State can carry out its duties as required in the Alcoholic Beverages and Cannabis Article, this Act reaffirms the legitimacy of the three–tiered system as a means of regulating the alcoholic beverages industry as stipulated by the Supreme Court of the United States in Tennessee Wine and Spirits Retailers Assn. v. Thomas, 139 S. Ct. 2449 (2019); and WHEREAS, It is the intent of the General Assembly to limit the issuance of direct delivery permits by the Office of the Executive Director to licensed Maryland manufacturers in order to protect public health and provide strong incentives not to sell alcohol in a way that threatens public health or safety; now, therefore, SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, That the Laws of Maryland read as follows: Article – Alcoholic Beverages and Cannabis 2–132. (a) IN THIS SECTION , “AFFILIATE” MEANS A PERSON THAT DIRECTLY OR INDIRECTLY THROUGH O NE OR MORE INTERMEDI ARIES CONTROLS , IS CONTROLLED BY, OR IS UNDER COMMON C ONTROL WITH A HOLDER OF A NONRESIDENT BRE WERY PERMIT. (B) There is a nonresident brewery permit. [(b)] (C) The Executive Director may issue the permit to a person that: (1) is licensed outside the State to engage in the manufacture of beer; (2) produces in the aggregate from all of its locations not more than [22,500] 45,000 barrels of beer annually, ALONE OR IN COMBINAT ION WITH ITS AFFILIATES; and (3) does not hold a nonresident dealer’s permit. [(c)] (D) (1) The permit authorizes the permit holder to sell and deliver not more than 3,000 barrels of the permit holder’s own beer annually from a location outside the State to a retail license holder or permit holder in the State authorized to acquire the beer. (2) The permit holder shall comply with all the requirements of this article, the Tax – General Article, and the regulations of the Comptroller or Executive Director that apply to a holder of a Class 7 limited beer wholesaler’s license. Ch. 918 2024 LAWS OF MARYLAND – 4 – [(d)] (E) The annual permit fee is $50. 2–132.1. (a) IN THIS SECTION , “AFFILIATE” MEANS A PERSON THAT DIRECTLY OR INDIRECTLY THROUGH O NE OR MORE INTERMEDI ARIES CONTROLS , IS CONTROLLED BY, OR IS UNDER COMMON C ONTROL WITH A HOLDER OF A NONRESIDENT DISTILLERY PERMIT . (B) There is a nonresident distillery permit. [(b)] (C) The Executive Director may issue the permit to a person that: (1) is licensed outside the State to engage in the manufacture of liquor; (2) produces in the aggregate from all of its locations not more than 100,000 gallons of liquor annually, ALONE OR IN COMBINAT ION WITH ITS AFFILIA TES; and (3) does not hold a nonresident dealer’s permit. [(c)] (D) (1) The permit authorizes the permit holder to sell and deliver the permit holder’s own liquor from a location outside the State to a retail license holder or permit holder in the State authorized to acquire the liquor. (2) The permit holder shall comply with all the requirements of this article, the Tax – General Article, and the regulations of the Comptroller or Executive Director that apply to a holder of a Class 8 limited liquor wholesaler’s license. [(d)] (E) The annual permit fee is $100. Part V. Direct WINE DELIVERY, DIRECT Wine Shipper’s, and Common Carrier Permits. 2–142. (a) In this part the following words have the meanings indicated. (b) (1) “Common carrier” means a business entity that: (i) holds itself out as being available to the public to transport in interstate or foreign commerce for compensation any class of passenger or property; and (ii) holds a common carrier permit issued under § 2–151 of this subtitle. WES MOORE, Governor Ch. 918 – 5 – (2) “Common carrier” does not include a business entity that transports only property the business entity owns or that is consigned to the business entity. (c) “DIRECT WINE DELIVERER ” MEANS THE HOLDER OF A DIRECT WINE DELIVERY PERMIT ISSU ED UNDER THIS PA RT. (D) “Direct wine shipper” means the holder of a direct wine shipper’s permit issued under this part. 2–143. (A) A person shall be issued a direct wine shipper’s permit by the Executive Director before the person may engage in shipping wine directly to a consumer in the State. (B) BEFORE A LICENSED MANUFACTURER MAY ENG AGE IN DELIVERING WINE DIRECTLY TO A C ONSUMER IN THE STATE, THE MANUFACTURER SHA LL BE ISSUED A DIRECT WINE DELIVERY PERMIT . 2–144. (A) To qualify for a direct wine shipper’s permit, an applicant shall be: (1) a person licensed outside the State to engage in the manufacture of wine; or (2) a holder of a Class 3 manufacturer’s license or a Class 4 manufacturer’s license. (B) (1) TO QUALIFY FOR A DIRE CT WINE DELIVERY PERMIT, AN APPLICANT SHALL BE : (I) A PERSON LICENSED IN THE STATE TO ENGAGE IN TH E MANUFACTURE OF WINE ; AND (II) A HOLDER OF A CLASS 6 LIMITED WINE WHOLESA LER’S LICENSE. (2) THE HOLDER OF A DIREC T WINE DELIVERY PERM IT ISSUED UNDER THIS SUBSECTIO N MAY SELL AND DELIV ER A THE PERMIT HOLDER ’S OWN PRODUCT PRODUCED UNDER THE HOLDER ’S LICENSE TO AN INDIVIDUAL IN THE STATE IF: (I) THE DELIVERY IS MADE BY AN EMPLOYEE WHO I S: 1. AT LEAST 18 YEARS OLD; AND Ch. 918 2024 LAWS OF MARYLAND – 6 – 2. CERTIFIED BY AN APPR OVED ALCOHOL AWARENESS PROGRAM; (II) THE PURCHASER , OR ANOTHER INDIVIDUA L AT LEAST 21 YEARS OLD DESIGNATED BY THE PURCHASER , IS PHYSICALLY PRESEN T TO RECEIVE THE WINE AT THE TIME AND PLACE OF DELIVER Y; (III) THE PURCHASER PAYS F OR THE PURCHASE AT T HE TIME OF ORDER; AND (IV) THE DIRECT WINE DELI VERER AND THE INDIVI DUAL RECEIVING THE DELIVE RY EACH ENDORSE A DE LIVERY FORM THAT THE EXECUTIVE DIRECTOR APPROVES CER TIFYING THAT THE DIR ECT WINE DELIVERER E XAMINED THE RECIPIENT’S GOVERNMENT –ISSUED IDENTIFICATIO N AND THE RECIPIENT WAS AT LEAST 21 YEARS OLD. 2–145. (a) An applicant for a direct wine shipper’s permit OR A DIRECT WINE DEL IVERY PERMIT shall: (1) submit to the Executive Director a completed application on a form that the Executive Director provides; (2) provide to the Executive Director a copy of the applicant’s current MANUFACTURER ’S license; (3) identify the wines manufactured by the applicant that the applicant intends to ship [into] OR DELIVER TO A CONS UMER IN the State; and (4) pay a fee of $200 for initial issuance of the direct wine shipper’s permit OR THE DIRECT WINE D ELIVERY PERMIT . (b) The Executive Director shall issue a direct wine shipper’s permit OR A DIRECT WINE DELIVERY PERMIT to each applicant who meets the requirements of this part for the permit. 2–146. (A) A direct wine shipper’s permit entitles the holder to sell wine manufactured by the holder through a holder of a common carrier permit to a consumer by receiving and filling orders that the consumer transmits by electronic or other means. WES MOORE, Governor Ch. 918 – 7 – (B) A DIRECT WINE DELIVERY PERMIT ENTITLES THE HOLDER TO SELL AND DELIVER WINE MANUFAC TURED BY THE HOLDER DIRECTLY TO A CONSUM ER IN THE STATE BY RECEIVING AN D FILLING ORDERS THA T THE CONSUMER TRANS MITS BY ELECTRONIC OR OTHE R MEANS. 2–147. The term of a direct wine shipper’s permit OR A DIRECT WINE DEL IVERY PERMIT is 1 year and begins on July 1. 2–148. (a) A direct wine shipper shall: (1) ensure that all containers of wine shipped directly to a consumer in the State are conspicuously labeled with: (i) the name of the direct wine shipper; (ii) the name and address of the consumer who is the intended recipient; and (iii) the words “Contains Alcohol: Signature of Person at Least 21 Years of Age Required for Delivery”; (2) report to the Comptroller and the Executive Director information about the direct wine shipper’s wine shipments, in a manner that the Comptroller and the Executive Director determine; (3) file a quarterly tax return in accordance with § 5–201(d) of the Tax – General Article; (4) pay quarterly to the Comptroller all sales taxes and excise taxes due on sales to consumers in the State and calculate the taxes as if the sale were made in the State; (5) maintain for 3 years complete and accurate records of all information needed to verify compliance with this part; (6) allow the Comptroller and the Executive Director to perform an audit of the direct wine shipper’s records on request; and (7) consent to the jurisdiction of the Comptroller, the Executive Director, or other State unit and the State courts concerning enforcement of this section and any related law. (b) A direct wine shipper may not: Ch. 918 2024 LAWS OF MARYLAND – 8 – (1) ship more than 18 9–liter cases of wine each year to a single delivery address; or (2) cause wine to be delivered on Sunday to an address in the State. 2–148.1. (A) A DIRECT WINE DELIVERE R SHALL: (1) ENSURE THAT ANY CONT AINER CONTAINING WIN E DELIVERED DIRECTLY TO A CONSUM ER IN THE STATE IS: (I) CONSPICUOUSLY LABELE D WITH: 1. THE NAME OF THE MANU FACTURER; 2. THE NAME AND ADDRESS OF THE CONSUMER WHO IS THE INTENDED RECIPIE NT; AND 3. THE WORDS “CONTAINS ALCOHOL: SIGNATURE OF PERSON AT LEAST 21 YEARS OF AGE REQUIRED FOR DELIVERY”; AND (II) COMMERCIALLY SEALED BY THE MANUFA CTURER; (2) REPORT TO THE EXECUTIVE DIRECTOR INFORMATION ABOUT THE DELIVERIES , IN A MANNER THAT THE EXECUTIVE DIRECTOR DETERMINES ; (3) FILE A QUARTERLY TAX RETURN IN ACCORDANCE WITH § 5–201(D) OF THE TAX – GENERAL ARTICLE; (4) PAY QUARTERLY TO THE COMPTROLLER ALL SALES TAXES AND EXCISE TAXES DUE ON SALES TO CONSUMERS I N THE STATE; (5) MAINTAIN FOR 3 YEARS COMPLETE AND A CCURATE RECORDS OF ALL INFORMATION NEED ED TO VERIFY COMPLIA NCE WITH THIS PART ; AND (6) ALLOW THE COMPTROLLER OR THE EXECUTIVE DIRECTOR TO PERFORM AN AUDIT OF THE PERMIT HOLDER ’S RECORDS ON REQUEST . (B) THE HOLDER OF A DIREC T WINE DELIVERY PERM IT MAY NOT CAUSE MORE THAN 18 9–LITER CASES OF WINE TO BE DELIVERED TO A SINGLE ADDRESS IN A SINGLE CALENDAR YE AR. WES MOORE, Governor Ch. 918 – 9 – 2–149. (a) A direct wine shipper may renew its direct wine shipper’s permit each year if the direct wine shipper: (1) is otherwise entitled to have a direct wine shipper’s permit; (2) provides to the Executive Director a copy of its current permit; (3) identifies the wines manufactured by the direct wine shipper that the direct wine shipper intends to ship into the State; and (4) pays to the Executive Director a renewal fee of $200. (b) The Executive Director may deny a renewal application of a direct wine shipper who fails to: (1) file a tax return required under this part; (2) pay a fee or tax when due; or (3) after receiving notice, comply with this article or a regulation that the Comptroller or Executive Director adopts. 2–149.1. (A) A DIRECT WINE DELIVERE R MAY RENEW ITS DIRE CT WINE DELIVERY PERMIT EACH YEAR IF THE DIRECT WINE DELI VERER: (1) IS OTHERWISE ENTITLE D TO HOLD A DIRECT W INE DELIVERY PERMIT; (2) PROVIDES TO THE EXECUTIVE DIRECTOR AND THE COMPTROLLER A CO PY OF ITS CURRENT PE RMIT; AND (3) PAYS THE EXECUTIVE DIRECTOR A RENEWAL FE E OF $200. (B) THE EXECUTIVE DIRECTOR MAY DENY A R ENEWAL APPLICATION F OR A DIRECT WINE DELIVERY PERMIT IF THE HOLDER FAILS TO: (1) FILE A TAX RETURN RE QUIRED UNDER THIS PART; (2) PAY A FEE OR TAX WHE N DUE; OR Ch. 918 2024 LAWS OF MARYLAND – 10 – (3) AFTER RECEIVING NOTI CE, COMPLY WITH THIS ART ICLE OR A REGULATION THAT THE EXECUTIVE DIRECTOR ADOPTS UNDER THIS ARTICLE. 2–150. (a) To receive a direct shipment OR DIRECT DELIVERY of wine, a consumer in the State shall be at least 21 years old. (b) A person who receives a shipment OR DELIVERY of wine shall use the shipment for personal consumption only and may not resell the shipment OR DELIVERY. 2–151. (a) There is a common carrier permit. (b) A holder of a common carrier permit may deliver [wine] ALCOHOLIC BEVERAGES from a location inside or outside the State to a consumer in the State for the consumer’s personal use under this [part] SUBTITLE. (c) A person shall be issued a common carrier permit before the person may engage in transporting: (1) wine from a direct wine shipper to a consumer; (2) BEER FROM A DIRECT B EER SHIPPER TO A CON SUMER; OR (3) LIQUOR FROM A DIRECT LIQUOR SHIPPER TO A CONSUMER . (d) The term of a common carrier permit is 1 year and begins on July 1. (e) To complete delivery of a shipment, the common carrier shall require from a consumer at the address listed on the shipping label: (1) the signature of the consumer or another individual at the address who is at least 21 years old; and (2) government–issued photographic identification showing that the signing individual is at least 21 years old. (f) A common carrier shall refuse delivery when the intended receiving individual appears to be under the age of 21 years or refuses to present valid identification. (g) At the time of initial application for a common carrier permit and on request of the Executive Director, a common carrier shall submit to the Executive Director information concerning the training of its drivers in verifying the age of recipients of direct WES MOORE, Governor Ch. 918 – 11 – wine shipments, DIRECT BEER SHIPMENT S, OR DIRECT LIQUOR SHI PMENTS under this [part] SUBTITLE. (h) At least once each year, in a manner acceptable to the Executive Director, a holder of a common carrier permit shall verify that the shipper of wine, BEER, OR LIQUOR into the State under this part holds a valid direct wine shipper’s permit, DIRECT BEER SHIPPER’S PERMIT, OR DIRECT LIQUOR SHI PPER’S PERMIT. (i) A holder of a common carrier permit that delivers [wine solely] ALCOHOLIC BEVERAGES under this [part] SUBTITLE may not be required to obtain a transportation permit issued under § 2–118 or § 2–119 of this subtitle in addition to the common carrier permit. (j) The permit fee is $100. 2–152. (a) A common carrier shall report quarterly to the Executive Director: (1) the date of each delivery of [wine] ALCOHOLIC BEVERAGES in the State; and (2) the name and address of: (I) the direct wine shipper, THE DIRECT BEER SHIP PER, OR THE DIRECT LIQUOR SHIPPE R; and (II) the receiving consumer of each delivery. (b) A common carrier shall maintain for 3 years complete and accurate records of all information needed to verify compliance with this part. 2–153. A person without a direct wine shipper’s permit may not ship wine directly to a consumer in the State. 2–154. Each violation of this part is a separate violation. 2–165. RESERVED. 2–166. RESERVED. Ch. 918 2024 LAWS OF MARYLAND – 12 – PART VIII. DIRECT–TO–CONSUMER BEER AND LIQUOR SHIPPING AND DELIVERY. 2–167. (A) IN THIS PART THE FOLL OWING WORDS HAVE THE MEANINGS INDICATED. (B) “COMMON CARRIER ” HAS THE MEANING STAT ED IN § 2–142 OF THIS SUBTITLE. (C) (B) “DIRECT BEER DELIVERER ” MEANS THE HOLDER OF A DIRECT BEER DELIVERY PERMIT ISSUED UNDER THIS PART. (D) “DIRECT BEER SHIPPER ” MEANS THE HOLDER OF A DIRECT BEER SHIPPER’S PERMIT ISSUED UNDE R THIS PART. (E) (C) “DIRECT LIQUOR DELIVER ER” MEANS THE HOLDER OF A DIRECT LIQUOR DELIVERY PERM IT ISSUED UNDER THIS PART. (F) “DIRECT LIQUOR SHIPPER ” MEANS THE HOLDER OF A DIRECT LIQUOR SHIPPER’S PERMIT ISSUED UNDE R THIS PART. (G) (D) “PERMIT” MEANS A DIRECT BEER DELIVERY PERMIT , DIRECT BEER SHIPPER’S PERMIT, OR DIRECT LIQUOR DELIVE RY PERMIT, OR DIRECT LIQUOR SHIPPER’S PERMIT ISSUED BY THE EXECUTIVE DIRECTOR UNDER THIS PART. 2–168. (A) BEFORE A LICENSED MANUFACTURER MAY ENG AGE IN DELIVERING BEER DIRECTLY TO A C ONSUMER IN THE STATE, THE MANUFACTURER SHA LL BE ISSUED A DIRECT BEER DELIVERY PERMIT . (B) BEFORE A LICENSED MANUFACTURER MAY ENG AGE IN DELIVERING LIQUOR DIRECTLY TO A CONSUMER IN THE STATE, THE MANUFACTURER SHA LL BE ISSUED A DIRECT LIQU OR DELIVERY PERMIT . 2–169. (A) (1) TO QUALIFY FOR A DIRE CT BEER DELIVERY PER MIT, AN APPLICANT SHALL BE : (I) A PERSON LICE NSED IN THE STATE TO ENGAGE IN TH E MANUFACTURE OF BEER ; AND WES MOORE, Governor Ch. 918 – 13 – (II) A HOLDER OF A CLASS 7 LIMITED BEER WHOLESA LER’S LICENSE. (2) THE HOLDER OF A DIREC T BEER DELIVERY PERM IT ISSUED UNDER § 2–170 OF THIS SUBTITLE MAY SELL AND DELIVER A THE PERMIT HOLDER ’S OWN PRODUCT PRODUCED UNDER THE HOLDER ’S LICENSE TO AN INDIVIDUAL IN THE STATE IF: (I) THE DELIVERY IS MADE BY AN EMPLOYEE WHO I S: 1. AT LEAST 18 YEARS OLD; AND 2. CERTIFIED BY AN APPR OVED ALCOHOL AWARENE SS PROGRAM; (II) THE PURCHASER , OR ANOTHER INDIVIDUA L AT LEAST 21 YEARS OLD DESIGNATED BY THE PURCHASER , IS PHYSICALLY PRESEN T TO RECEIVE THE BEER AT THE TIME AND PLACE OF DELIVER Y; (III) THE PURCHASER PAYS F OR THE PURCHASE AT T HE TIME OF ORDER; AND (IV) THE DIREC T BEER DELIVERER AND THE INDIVIDUAL RECEIVING THE DELIVE RY EACH ENDORSE A DE LIVERY FORM THAT THE EXECUTIVE DIRECTOR APPROVES CER TIFYING THAT THE DIR ECT BEER DELIVERER E XAMINED THE RECIPIENT’S GOVERNMENT –ISSUED IDENTIFICATIO N AND THE RECIPIENT WAS AT LEAST 21 YEARS OLD. (B) TO QUALIFY FOR A DIRE CT BEER SHIPPER ’S PERMIT, AN APPLICANT SHALL BE: (1) IF SHIPPING FROM A L OCATION OUTSIDE THE STATE, THE HOLDER OF A NONRESID ENT BREWERY PERMIT ; OR (2) IF SHIPPING FROM A L OCATION INSIDE THE STATE: (I) A PERSON LICENSED IN THE STATE TO ENGAGE IN TH E MANUFACTURE OF BEER ; AND (II) A HOLDER OF A CLASS 7 LIMITED BEER WHOLESA LER’S LICENSE. Ch. 918 2024 LAWS OF MARYLAND – 14 – (C) (B) (1) TO QUALIFY FOR A DIRE CT LIQUOR DELIVERY P ERMIT, AN APPLICANT SHALL BE : (I) A PERSON ISSUED A LI CENSE BY THE EXECUTIVE DIRECTOR IN THE STATE TO ENGAGE IN TH E MANUFACTURE OF LIQ UOR; AND (II) A HOLDER OF A CLASS 8 LIMITED WHOLESALER ’S LICENSE. (2) THE HOLDER OF A DIREC T LIQUOR DELIVERY PE RMIT ISSUED UNDER § 2–170 OF THIS SUBTITLE MAY SELL AND DELIVER A THE PERMIT HOLDER ’S OWN PRODUCT PRODUCED UNDER THE HOLDER ’S LICENSE TO AN INDIVIDUAL IN THE STATE IF: (I) THE DELIVERY IS MADE BY AN EMPLOYEE WHO I S: 1. AT LEAST 18 YEARS OLD; AND 2. CERTIFIED BY AN APPR OVED ALCOHOL AWARENE SS PROGRAM; (II) THE PURCHASER , OR ANOTHER INDIVIDUA L AT LEAST 21 YEARS OLD DESIGNATED BY THE PURCHASER , IS PHYSICALLY PRESEN T TO RECEIVE THE LIQUOR AT THE TI ME AND PLACE OF DELI VERY; (III) THE PURCHASER PAYS F OR THE PURCHASE AT T HE TIME OF ORDER; AND (IV) THE DIRECT LIQUOR DELI VERER AND THE INDIVI DUAL RECEIVING THE DELIVE RY EACH ENDORSE A DE LIVERY FORM THAT THE EXECUTIVE DIRECTOR APPROVES CER TIFYING THAT THE DIR ECT LIQUOR DELIVERER EXAMINED THE RECIPIE NT’S GOVERNMENT –ISSUED IDENTIFICATIO N AND THE RECIPIENT WA S AT LEAST 21 YEARS OLD. (D) TO QUALIFY FOR A DIRE CT LIQUOR SHIPPER ’S PERMIT, AN APPLICANT SHALL BE: (1) IF SHIPPING FROM A L OCATION OUTSIDE THE STATE, A HOLDER OF A NONRESIDENT DIS TILLERY PERMIT ; OR (2) IF SHIPPING FROM A L OCATION INSIDE THE STATE: (I) A PERSON ISSUED A LI CENSE BY THE EXECUTIVE DIRECTOR IN THE STATE TO ENGAGE IN TH E MANUFACTURE OF LIQ UOR; AND WES MOORE, Governor Ch. 918 – 15 – (II) A HOLDER OF A CLASS 8 LIMITED WHOLESALER ’S LICENSE. 2–170. (A) AN APPLICANT FOR A PE RMIT UNDER THIS PART SHALL: (1) SUBMIT TO THE EXECUTIVE DIRECTOR A COMPLETED APPLICATION ON A FOR M THAT THE EXECUTIVE DIRECTOR PROVIDES ; (2) PROVIDE TO THE EXECUTIVE DIRECTOR A COPY OF TH E APPLICANT’S CURRENT HOME STATE MANUFACTURER ’S LICENSE; (3) IDENTIFY THE PRODUCT MANUFACTURED BY TH E APPLICANT THAT THE APPLICANT I NTENDS TO SHIP OR DELIVER TO A CONSUME R IN THE STATE; AND (4) PAY A FEE OF $200 FOR INITIAL ISSUANCE OF THE PERMIT. (B) IF AN APPLICANT MEETS THE REQUIREMENTS OF THIS PART, THE EXECUTIVE DIRECTOR SHALL ISSUE TO THE APPLICANT: (1) A DIRECT BEER DELIVE RY PERMIT; OR (2) A DIRECT BEER SHIPPE R’S PERMIT; (3) A DIRECT LIQUOR DELI VERY PERMIT; OR (4) A DIRECT LIQUOR SHIP PER’S PERMIT. 2–171. (A) A DIRECT BEER DELIVERY PERMIT ENTITLES THE HOLDER TO SELL AND DELIVER BEER MANUFACTURED BY THE HOLDER DIRECTLY TO A CONSUMER IN THE STATE BY RECEIVING AN D FILLING ORDERS THA T THE CONSUMER TRANS MITS BY ELECTRONIC OR OTHER MEANS. (B) A DIRECT BEER SHIPPER ’S PERMIT ENTITLES TH E HOLDER TO SELL BEER MANUFACTURED BY THE HOLDER T HROUGH A HOLDER OF A COMMON CARRIER PERMIT TO A CONSUMER BY RECEIVIN G AND FILLING ORDERS THAT THE CONSUMER TRANSMITS B Y ELECTRONIC OR OTHE R MEANS. (C) A DIRECT LIQUOR DELIVE RY PERMIT ENTITLES T HE HOLDER TO SELL AND DELIVER LIQUOR M ANUFACTURED BY THE H OLDER DIRECTLY TO A CON SUMER Ch. 918 2024 LAWS OF MARYLAND – 16 – IN THE STATE BY RECEIVING AN D FILLING ORDERS THA T THE CONSUMER TRANSMITS BY ELECTRO NIC OR OTHER MEANS . (D) A DIRECT LIQUOR SHIPPE R’S PERMIT ENTITLES TH E HOLDER TO SELL LIQUOR MANUFACTURED BY THE HOLDER THROUG H A HOLDER OF A COMMON CARRIER PERMIT TO A CONSUMER BY RECEIVIN G AND FILLING ORDERS THAT THE CONSUMER TRANSMITS B Y ELECTRONIC OR OTHE R MEANS. 2–172. THE TERM OF A PERMIT ISSUED UNDER THIS PA RT IS 1 YEAR AND BEGINS ON JULY 1. 2–173. (A) A PERSON WHO HOLDS A P ERMIT UNDER THIS PART SHAL L: (1) ENSURE THAT ANY CONT AINER CONTAINING AN ALCOHOLIC BEVERAGE DELIVERED OR SHIPPED DIRECTLY TO A CONSUM ER IN THE STATE IS: (I) CONSPICUOUSLY LABELE D WITH: 1. THE NAME OF THE MANU FACTURER; 2. THE NAME AND ADDRESS OF THE CONSUMER WHO IS THE INTENDED RECIPIE NT; AND 3. THE WORDS “CONTAINS ALCOHOL: SIGNATURE OF PERSON AT LEAST 21 YEARS OF AGE REQUIRED FOR DELIVERY”; AND (II) COMMERCIALLY SEALED BY THE MANUFACTURER ; (2) REPORT TO THE EXECUTIVE DIRECTOR INFORMATION ABOUT THE SHIPMENTS OR DELIVERIES, IN A MANNER THAT THE EXECUTIVE DIRECTOR DETERMINES ; (3) FILE A QUARTERLY TAX RETURN IN ACCORDANCE WITH § 5–201(D) OF THE TAX – GENERAL ARTICLE; (4) PAY QUARTERLY TO TH E COMPTROLLER ALL SALES TAXES AND EXCISE TAXES DUE ON SALES TO CONSUMERS I N THE STATE AND CALCULATE T HE TAXES AS IF THE SALE SALES WERE MADE IN THE STATE; WES MOORE, Governor Ch. 918 – 17 – (5) MAINTAIN FOR 3 YEARS COMPLETE AND A CCURATE RECORDS OF ALL INFORMATION NEED ED TO VERIFY COMPLIANCE WITH THIS PART; (6) ALLOW THE COMPTROLLER OR THE EXECUTIVE DIRECTOR TO PERFORM AN AUDIT OF THE PERMIT HOLDER ’S RECORDS ON REQUEST ; AND (7) CONSENT TO THE JURIS DICTION OF THE EXECUTIVE DIRECTOR, COMPTROLLER , OR OTHER STATE UNIT AND THE STATE COURTS CONCERNING ENFORCEMENT OF THIS PART AND ANY RELATED LAW. (B) (1) THE HOLDER OF A DIREC T BEER DELIVERY PERM IT OR A DIRECT BEER SHIPPER ’S PERMIT MAY NOT CAUSE MORE T HAN 3,456 OUNCES OF BEER OF THE PERMIT HOLDER ’S OWN PRODUCT TO BE DELIVERED TO A SINGLE DELIVERY ADDRESS IN A SINGLE CALENDAR YEAR . (2) THE HOLDER OF A DIREC T LIQUOR DELIVERY PE RMIT OR A DIRECT LIQUOR SHIPPE R’S PERMIT MAY NOT CAUSE MORE T HAN 24 STANDARD 750–MILLILITER BOTTLES O F LIQUOR THE PERMIT HOLDER ’S OWN PRODUCT , OR AN EQUIVALENT AMOUNT , TO BE DELIVERED TO A SINGLE DELIVERY ADDR ESS IN A SINGLE CALENDAR YEAR . 2–174. (A) A HOLDER OF A PERMIT I SSUED UNDER THIS PAR T MAY RENEW THE PERMIT EACH YEAR IF THE HOLDER: (1) IS OTHERWISE ENTITLE D TO HOLD A PERMIT U NDER THIS PART ; (2) PROVIDES TO THE EXECUTIVE DIRECTOR AND THE COMPTROLLER A COPY OF ITS CURRENT PERMIT ; AND (3) PAYS THE EXECUTIVE DIRECTOR A RENEWAL FE E OF $200. (B) THE EXECUTIVE DIRECTOR MAY DENY A R ENEWAL APPLICATION F OR A PERMIT ISSUED UNDER THIS PART IF THE HO LDER FAILS TO: (1) FILE A TAX RETURN RE QUIRED UNDER THIS SU BTITLE; (2) PAY A FEE OR TAX WHE N DUE; OR (3) AFTER RECEIVING NOTI CE, COMPLY WITH THIS ART ICLE OR A REGULATION THAT THE EXECUTIVE DIRECTOR ADOPTS UNDER THIS ARTICLE. 2–175. Ch. 918 2024 LAWS OF MARYLAND – 18 – (A) TO RECEIVE A DIRECT D ELIVERY OR DIRECT SHIPMENT OF BEER OR LIQUOR, A CONSUMER IN THE STATE SHALL BE AT LEA ST 21 YEARS OLD. (B) A PERSON WHO RECEIVES A DELIVERY OR SHIPMENT OF ALCOHOLIC BEVERAGES UNDER THIS PART SHALL USE THE A LCOHOLIC BEVERAGES F OR PERSONAL CONSUMPTION ONLY AND MAY NOT RESELL T HE DELIVERY OR SHIPMENT IN WHOLE OR IN PART . 2–176. (A) A PERSON WITHOUT A DIR ECT BEER SHIPPER ’S PERMIT ISSUED UNDE R THIS PART MAY NOT SH IP BEER DIRECTLY TO A CONSUMER IN THE STATE. (B) A PERSON WITHOUT A DIRECT LIQUOR SHIPPE R’S PERMIT ISSUED UNDER THIS PART MAY NOT SHIP LIQUOR DIRE CTLY TO A CONSUMER I N THE STATE. 2–202. (a) There is a Class 1 distillery license. (K) THE LICENSE HOLDER SH ALL REPORT TO THE EXECUTIVE DIRECTOR ANNUALLY ON A FORM P ROVIDED BY THE EXECUTIVE DIRECTOR ON: (1) THE AMOUNT OF ALCOHO LIC BEVERAGES PRODUC ED UNDER THE LICENSE; (2) THE AMOUNT OF ALCOHO LIC BEVERAGES SOLD F OR OFF–PREMISES CONSUMPTION ; AND (3) THE AMOUNT OF ALCOHO LIC BEVERAGES SERVED FOR ON–PREMISES CONSUMPTION . (L) EXCEPT AS OTHERWISE P ROVIDED BY LAW , THE LICENSE HOLDER M AY NOT SELL ALCOHOLIC B EVERAGES FOR OFF –PREMISES CONSUMPTION TO A PERSON WHO INTENDS TO RESEL L THE ALCOHOLIC BEVE RAGES. [(k)] (M) The annual license fee: (1) shall be determined by the Executive Director; and (2) may not exceed $2,000. 2–205. WES MOORE, Governor Ch. 918 – 19 – (a) There is a Class 3 winery license. (c) An individual may purchase wine under subsection (b)(4) of this section if the individual[: (1) purchases not more than 1 quart in a single year; and (2)] has attained the legal drinking age. (D) THE LICENSE HOLDER SH ALL REPORT TO THE EXECUTIVE DIRECTOR ANNUALLY ON A FORM P ROVIDED BY THE EXECUTIVE DIRECTOR ON: (1) THE AMOUNT OF ALCOHO LIC BEVERAGES PRODUC ED UNDER THE LICENSE; (2) THE AMOUNT OF ALCOHOLIC BEVERAGES SOLD FOR OFF–PREMISES CONSUMPTION ; AND (3) THE AMOUNT OF ALCOHO LIC BEVERAGES SERVED FOR ON–PREMISES CONSUMPTION . (E) EXCEPT AS OTHERWISE P ROVIDED BY LAW , THE LICENSE HOLDER M AY NOT SELL ALCOHOLIC B EVERAGES FOR OFF –PREMISES CONSUMPTION TO A PERSON WHO INTENDS TO RESEL L THE ALCOHOLIC BEVE RAGES. [(d)] (F) The annual license fee: (1) shall be determined by the Executive Director; and (2) may not exceed $750. 2–206. (a) There is a Class 4 limited winery license. (H) THE LICENSE HOLDER SH ALL REPORT TO THE EXECUTIVE DIRECTOR ANNUALLY ON A FORM P ROVIDED BY THE EXECUTIVE DIRECTOR ON: (1) THE AMOUNT OF ALCOHO LIC BEVERAGES PRODUC ED UNDER THE LICENSE; (2) THE AMOUNT OF ALCOHO LIC BEVERAGES SOLD F OR OFF–PREMISES CO NSUMPTION; AND Ch. 918 2024 LAWS OF MARYLAND – 20 – (3) THE AMOUNT OF ALCOHO LIC BEVERAGES SERVED FOR ON–PREMISES CONSUMPTION . (I) EXCEPT AS OTHERWISE P ROVIDED BY LAW , THE LICENSE HOLDER M AY NOT SELL ALCOHOLIC B EVERAGES FOR OFF –PREMISES CONSUMPTION TO A PERSON WHO INTENDS TO RESEL L THE ALCOHOLIC BEVERAGES . [(h)] (J) The annual license fee: (1) shall be determined by the Executive Director; and (2) may not exceed $200. 2–207. (b) There is a Class 5 brewery license. (K) THE LICENSE HOLDER SH ALL REPORT TO THE EXECUTIVE DIRECTOR ANNUALLY ON A FORM P ROVIDED BY THE EXECUTIVE DIRECTOR ON: (1) THE AMOUNT OF ALCOHO LIC BEVERAGES PRODUC ED UNDER THE LICENSE; (2) THE AMOUNT OF ALCOHO LIC BEVERAGES SOLD F OR OFF–PREMISES CONSUMPTION ; AND (3) THE AMOUNT OF ALCOHO LIC BEVERAGES SOLD F OR ON–PREMISES CONSUMPTION . (L) EXCEPT AS OTHERWISE P ROVIDED BY LAW , THE LICENSE HOLDER M AY NOT SELL ALCOHOLIC B EVERAGES FOR OFF –PREMISES CONSUMPTION TO A PERSON WHO INTENDS TO RESEL L THE ALCOHOLIC BEVE RAGES. 2–214. (a) Except as otherwise provided with respect to a DELIVERY PERMIT ISSU ED UNDER SUBTITLE 1, PART V OR PART VIII OF DIVISION I OF THIS ARTICLE, TITLE OR A 1–day license in Division II of this article, and subject to subsection (b) of this section, a holder of a manufacturer’s license may not sell or deliver alcoholic beverages to a person in the State that does not hold a license or permit under this article. Article – Tax – General 13–825. WES MOORE, Governor Ch. 918 – 21 – (a) The Comptroller may require a person whose gross receipts are subject to admissions and amusement tax and whose business is not a permanent operation in the State to post security for the tax in the amount that the Comptroller determines. (b) The Comptroller shall require: (1) a manufacturer, wholesaler, or nonresident winery permit holder who sells or delivers beer or wine to retailers in the State to post security for the alcoholic beverage tax: (i) in an amount not less than: 1. $1,000 for beer; and 2. $1,000 for wine; and (ii) if the alcoholic beverage tax on beer and wine paid in any 1 month exceeds $1,000, in an additional amount at least equal to the excess; (2) a manufacturer or wholesaler who sells or delivers any distilled spirits or any wine and distilled spirits in the State to post a security for the alcoholic beverage tax: (i) in an amount not less than $5,000; and (ii) in an additional amount: 1. equal to twice the amount of its largest monthly alcoholic beverage tax liability for wine and distilled spirits in the preceding calendar year less $5,000; or 2. if the information for the preceding calendar year is not available or cannot be provided, equal to the amount that the Comptroller requires; and (3) except as provided in subsection (i) of this section, a holder of a direct wine shipper’s permit, DIRECT BEER SHIPPER ’S PERMIT, OR DIRECT LIQUOR SHIPPER’S PERMIT to post security for the alcoholic beverage tax in an amount not less than $1,000. (i) A person need not post security under subsection (b)(3) of this section if: (1) the person is a manufacturer that has posted security under subsection (b)(2) of this section; or Ch. 918 2024 LAWS OF MARYLAND – 22 – (2) at any time starting 3 years after the Comptroller first issues a direct wine shipper’s permit to the person, the Comptroller: (i) determines that the person has a substantial record of tax and reporting compliance; and (ii) waives the security requirement. SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read as follows: Article – Alcoholic Beverages and Cannabis 2–202. (a) There is a Class 1 distillery license. (c) A license holder may: (1) establish and operate a plant for distilling, rectifying, blending, and bottling, at the location described in the license: (i) brandy; (ii) rum; (iii) whiskey; (iv) alcohol; and (v) neutral spirits; (2) sell and deliver the alcoholic beverages: (i) in bulk to a person in the State that is authorized to acquire them; and (ii) to a person outside the State that is authorized to acquire them; (3) manufacture an alcoholic beverage listed in item (1) of this subsection in the name of another person or under a trade name if the other person or trade name also holds a Class 1 distillery license; (4) acquire alcoholic beverages from the holder of a manufacturer’s license or wholesaler’s license or nonresident dealer’s permit for use in manufacturing; WES MOORE, Governor Ch. 918 – 23 – (5) (i) conduct guided tours of the licensed premises; (ii) at no cost or for a fee, serve to an individual who has attained the legal drinking age and participated in a guided tour of the licensed premises, not more than 2 ounces of products, with each product sample consisting of not more than one–half ounce from a single product manufactured by the license holder; (iii) serve samples blended with other products manufactured by the license holder or nonalcoholic ingredients; and (iv) sell [not more than 2.25 liters of] products manufactured on the licensed premises, for off–premises consumption, and related merchandise to an individual who has attained the legal drinking age [and participated in a guided tour of the licensed premises]; and (6) subject to subsection (i) of this section, sell liquor manufactured by the license holder that is mixed with other nonalcoholic ingredients. 2–207. (b) There is a Class 5 brewery license. (c) A license holder may: (1) establish and operate a plant for brewing and bottling malt beverages at the location described in the license; (2) import beer from a holder of a nonresident dealer’s permit; (3) contract to brew and bottle beer with and on behalf of the holder of a Class 2 rectifying license, Class 5 brewery license, Class 7 micro–brewery license, Class 8 farm brewery license, or a nonresident dealer’s permit; (4) sell and deliver beer to: (i) a holder of a wholesaler’s license that is authorized to acquire beer; or (ii) a person outside of the State that is authorized to acquire beer; (5) subject to subsection (i) of this section, serve, at the location described in the license and at no charge, samples of beer, consisting of a total of not more than 18 ounces of beer per visit, to an individual who: (i) has attained the legal drinking age; and Ch. 918 2024 LAWS OF MARYLAND – 24 – (ii) is participating in a guided tour of the brewery or attends a scheduled promotional event or other organized activity at the brewery; (6) subject to subsections (d) and (i) of this section, sell beer for off–premises consumption at the location described in the license, at retail in a container other than a keg to an individual who has attained legal drinking age; (7) subject to subsection (f) of this section, sell beer at the location described in the license for on–premises consumption; and (8) brew and bottle malt beverages at a location listed on a permit issued to the license holder in accordance with § 2–113 of this title. (d) An individual may purchase beer under subsection (c)(6) of this section if the individual[: (1) purchases not more than 288 ounces of beer per visit; and (2)] has attained the legal drinking age. SECTION 3. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall take effect July 1, 2024, the effective date of Chapter 594 of the Acts of the General Assembly of 2023. If the effective date of Chapter 594 is amended, Section 2 of this Act shall take effect on the taking effect of Chapter 594. SECTION 4. AND BE IT FURTHER ENACTED, That the Executive Director of the Alcohol, Tobacco, and Cannabis Commission shall evaluate the implementation of a standard digital age verification system that holders of a direct delivery permit issued under Title 2, Subtitle 1, Part V or Part VIII of Division I of the Alcoholic Beverages and Cannabis Article, as enacted by Section 1 of this Act, shall use to verify the age of a person accepting the delivery of alcoholic beverages. SECTION 4. 5. AND BE IT FURTHER ENACTED, That, subject to Section 3 of this Act, this Act shall take effect July 1, 2024. Approved by the Governor, May 16, 2024.