(a) Owned by Local Board. - All damaged alcoholic beverages owned by a local board shall be destroyed, given to a public or private hospital for medicinal use only, or given to the Commission. (b) Not Owned by Local Board. - The Commission shall dispose of all damaged alcoholic beverages which are: (1) Owned by the Commission; (2) Damaged while in the State warehouse; or (3) Damaged while in transit between the State warehouse and a local board. The Commission shall dispose of the alcoholic beverages by giving them to a public or private hospital for medicinal use only, by selling them to a military installation, or by destroying them. (c) Sale Procedure. - If damaged alcoholic beverages are sold under subsection (b), sale shall be by: (1) Advertisement for sealed bids; (2) Negotiated offer, advertisement and upset bids; or (3) Exchange. Funds derived from the sale of damaged alcoholic beverages shall be paid to the general fund of the State. (d) Records. - Local boards and the Commission shall keep detailed records of all disposals of damaged alcoholic beverages, including brand, quantity and disposition.
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