Maryland Code § ABC-2-209

Section ABC-2-209
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(a) There is a Class 7 micro-brewery license.
(b) Except as provided in Division II of this article, the license may be issued
only to the holder of a Class B beer, wine, and liquor (on-sale) license that is issued
for use on the premises of a restaurant.
(c) A license holder may:
(1) brew and bottle malt beverages at the location described in the
license;

(2) obtain a Class 2 rectifying license for a premises located within 1
mile of the existing Class 7 micro-brewery location to bottle malt beverages brewed
at the micro-brewery location only;
(3) contract to brew and bottle malt beverages 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) store the finished product under an individual storage permit or
at a licensed public storage facility for subsequent sale and delivery:
(i) to a holder of a wholesaler's license;
(ii) to an authorized person outside the State; or
(iii) for shipment back to the micro-brewery location for sale on
the retail premises;
(5) enter into a temporary delivery agreement with a distributor only
for delivery of beer to a beer festival or a wine and beer festival, and the return of any
unused beer, if:
(i) the festival is in a sales territory for which the license
holder does not have a franchise with a distributor under the Beer Franchise Fair
Dealing Act in Title 5, Subtitle 1 of this article; and
(ii) the temporary delivery agreement is in writing;
(6) hold an additional Class 7 micro-brewery license provided that
both licenses remain subject to the production limits of subsection (d) of this section;
and
(7) subject to subsection (d) of this section, brew and bottle malt
beverages at a location listed on a permit issued in accordance with § 2-113 of this
title.
(d) (1) Subject to paragraph (2) of this subsection, a license holder may
not collectively brew, bottle, or contract for more than 45,000 barrels of malt
beverages each calendar year.
(2) (i) In determining the barrelage limitation under paragraph
(1) of this subsection, any salable beer produced under a contractual arrangement
accrues only to the license holder that owns the brand.

(ii) A license holder that wishes to produce more than the
barrelage authorized under paragraph (1) of this subsection shall:
1. divest itself of any retail license; and
2. obtain a Class 5 brewery license.
(3) A license holder that has licenses for two locations may not
collectively brew, bottle, or contract for more than 45,000 barrels of malt beverages
in aggregate from both of its locations each calendar year.
(e) A license holder:
(1) may not own, operate, or be affiliated with another manufacturer
of beer except for a Class 2 rectifying license authorized under subsection (c)(2) of this
section or more than one additional Class 7 micro-brewery license; and
(2) may not be granted a wholesaler's license other than a Class 7
limited beer wholesaler's license.
(f) (1) The on-sale privilege authorizes the license holder, each calendar
year, to sell at retail for on-premises consumption:
(i) up to 5,000 barrels of beer brewed under the license; or
(ii) if the license holder has licenses for two locations, beer
that:
1. totals annually up to 5,000 barrels at each location;
and
2. has been brewed at the location where it is sold.
(2) A license holder may sell and deliver beer brewed under the
license to:
(i) a holder of a wholesaler's license; or
(ii) a person outside the State that is authorized to acquire
beer.
(g) The hours and days for retail sales under the license are those
established for a Class B license or for a holder of a Class B beer, wine, and liquor
license.

(h) A license holder may sell at retail beer brewed under the license for off-
premises consumption:
(1) in a sealed refillable container that:
(i) may be returned for refilling; and
(ii) shall be sealed by the license holder when refilled; and
(2) as prepackaged beer in a nonrefillable container.
(i) The annual license fee:
(1) shall be determined by the Executive Director; and
(2) may not exceed $500.
(j) (1) On or before December 1 each year, the Commission shall report
to the Senate Education, Health, and Environmental Affairs Committee and the
House Economic Matters Committee, in accordance with § 2-1257 of the State
Government Article, on the following, identified by jurisdiction and Class 7 license
holder:
(i) the total beer production of the license holder in the
preceding fiscal year; and
(ii) the total sales of the license holder for on-site
consumption.
(2) Each holder of a Class 7 license shall report to the Executive
Director the information needed to prepare the annual report required under this
subsection.
(3) The Commission shall include the information reported under
this subsection in the annual report submitted under § 1-316 of this article.

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