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Code · Maryland · Alcoholic Beverages and Cannabis

§ 2-203

559 words·~3 min read·/md/alcoholic-beverages-and-cannabis/2-203·

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§2–203.
(a)There is a Class 9 limited distillery license.
(b)The limited distillery license may be issued only to a holder of a:
(1)Class D beer, wine, and liquor license where sales for both on– and off–premises consumption are permitted for use on the premises for which the Class D license was issued; or
(2)Class B beer, wine, and liquor license where sales for both on– and off–premises consumption are permitted for use on the premises for which the Class B license was issued.
(c)A holder of the limited distillery license:
(1)may establish and operate a plant in the State for distilling, rectifying, and bottling brandy, rum, whiskey, alcohol, and neutral spirits if the holder:
(i)maintains only one brand at any one time for each product of brandy, rum, whiskey, alcohol, and neutral spirits that is distilled, rectified, and sold; and
(ii)does not manufacture or rectify product of any other brand for another entity;
(2)may acquire bulk alcoholic beverages from the holder of a distillery or rectifying license in the State or from the holder of a nonresident dealer’s permit;
(3)after acquiring an individual storage permit, may store on the licensed premises those products manufactured under the license;
(4)except as authorized under subsection (d)(1) of this section, may sell and deliver those products manufactured under the license only to a licensed wholesaler in the State or person authorized to acquire distilled spirits in another state and not to a county dispensary;
(5)may sell the products manufactured under the license at retail in a manner consistent with the underlying Class D or Class B license;
(6)may conduct guided tours of that portion of the licensed premises used for the limited distillery operation; and
(7)may serve not more than three samples of products manufactured at the licensed premises, with each sample consisting of not more than one–half ounce from a single product, to persons who:
(i)have attained the legal drinking age;
(ii)participated in a guided tour; and
(iii)are present on that portion of the premises used for the limited distillery operation.
(d)A holder of the limited distillery license may not:
(1)apply for or possess a wholesaler’s license, except for a Class 8 liquor wholesaler’s license;
(2)sell bottles of the products manufactured at the Class 9 limited distillery on that part of the premises used for the distillery operation;
(3)except as provided in subsection
(e)of this section, distill, rectify, bottle, or sell more than 100,000 gallons of brandy, rum, whiskey, alcohol, and neutral spirits each calendar year;
(4)sell at retail on the premises of the Class D or Class B license, for on–premises or off–premises consumption, more than 31,000 gallons of the products manufactured under the license each calendar year; and
(5)own, operate, or be affiliated in any manner with another manufacturer.
(e)To distill more than the gallonage specified in subsection (d)(3) of this section, a holder of the limited distillery license shall divest itself of any Class D or Class B retail license and obtain a Class 1 distillery license.
(f)A holder of the limited distillery license shall abide by all trade practice restrictions applicable to distilleries.
(g)The annual license fee:
(1)shall be determined by the Executive Director; and
(2)may not exceed $500.
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