§2–203.    IN EFFECT

    (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;

        (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; and

        (8)    may sell and deliver products manufactured by the license holder to an individual in accordance with § 2–219 of this subtitle.

    (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.

§2–203.    ** TAKES EFFECT JULY 1, 2024 PER CHAPTER 594 OF 2023 **

    (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.