Article - Alcoholic Beverages

753 Pages·2014·2.44 MB·English

by  Maryland General Assembly

Article ­ Alcoholic Beverages
§1–101.
(a) (1) It is the policy of the State of Maryland that it is necessary to regulate
andcontrolthemanufacture,sale,distribution,transportationandstorageofalcoholic
beverages within this State and the transportation and distribution of alcoholic
beverages into and out of this State to obtain respect and obedience to law and to
foster and promote temperance.
(2) It is the legislative intent that that policy will be carried out in the
best public interest by empowering the Comptroller of the Treasury, the various local
boards of license commissioners and liquor control boards, all enforcement officers and
thejudgesofthevariouscourtsofthisStatewithsufficientauthoritytoadministerand
enforce the provisions of this article.
(3) The restrictions, regulations, provisions and penalties contained in
this article are for the protection, health, welfare and safety of the people of this State.
(4) It also is the policy of the State to tax alcoholic beverages as provided
in the Tax – General Article, and to deny to any political subdivision in this State the
power or authority, either by public general law or by public local law, to impose any
tax on distilled spirits, beer, wine and all other alcoholic beverages on and after July
1, 1955.
(b) (1) ItcontinuestobethepolicyofthisStatetoauthorizetheexerciseofthe
powers and authority provided by this article for the purpose of displacing or limiting
economic competition by regulating or engaging in the sale or distribution of alcoholic
beveragesorbothinordertoobtainrespectandobediencetolaw,tofosterandpromote
temperance,topreventdeceptive,destructive,andunethicalbusinesspractices,andto
promote the general welfare of its citizens by controlling the sale and distribution of
alcoholic beverages.
(2) The officials and agencies granted powers and authority by this
article to regulate and engage in the alcoholic beverages industry may displace or
limit economic competition by regulating and engaging in the sale or distribution
of alcoholic beverages or both on an exclusive basis as provided in this article and
may adopt and enforce regulations authorized by this article notwithstanding any
anticompetitive effect.
(3) The powers granted to any official or agency pursuant to this
subsection may not be construed:
(i) To grant to the official or agency powers in any substantive area
not otherwise granted to the official or agency by other public general or public local
law;
(ii) To restrict the official or agency from exercising any power
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grantedtotheofficialoragencybyotherpublicgeneralorpubliclocallaworotherwise;
(iii) To authorize the official or agency or officers of the agency to
engage in any activity which is beyond their power under other public general law,
public local law, or otherwise; or
(iv) To preempt or supersede the regulatory authority of any State
department or agency under any public general law.
§1–102.
(a) (1) In this article the following words have the meanings indicated.
(2) (i) “Alcoholic beverages” means alcohol, brandy, whiskey, rum, gin,
cordial, beer, ale, porter, stout, wine, cider, and any other spirituous, vinous, malt or
fermentedliquor,liquid,orcompound,bywhatevernamecalled,whichcontains,except
as provided in subparagraph (ii) of this paragraph, one–half of one percent or more of
alcohol by volume, which is fit for beverage purposes.
(ii) “Alcoholic beverages” does not include a confectionery food
product that contains up to 5 percent of alcohol by volume and is regulated by the
Department of Health and Mental Hygiene under § 21–209 of the Health – General
Article.
(3) (i) “Beer” means any brewed alcoholic beverage.
(ii) “Beer” includes:
1. Beer;
2. Ale;
3. Porter;
4. Stout;
5. Hard cider; and
6. Alcoholic beverages that contain:
A. 6% or less alcohol by volume, derived primarily from the
fermentationofgrain,withnotmorethan49%ofthebeverage’soverallalcoholcontent
by volume obtained from flavors and other added nonbeverage ingredients containing
alcohol; or
B. Morethan6%alcoholbyvolume,derivedprimarilyfromthe
fermentationofgrain,withnotmorethan1.5%ofthebeverage’soverallalcoholcontent
by volume obtained from flavors and other added nonbeverage ingredients containing
alcohol.
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(4) (i) “Club” means an association or corporation which is organized
andoperatedexclusivelyforeducational,social,fraternal,patriotic,politicalorathletic
purposes and not for profit.
(ii) In Allegany County the Board of Alcoholic Beverages License
Commissioners shall be the judges of whether such an establishment is operated in
good faith within the meaning of this subsection.
(5) “Comptroller” means the Comptroller of the Treasury of the State.
(6) “Consumer” means any natural person 21 years old or older, or any
corporation not otherwise interdicted by this article or any other law of this State, who
buys,possesses,keepsortransportsalcoholicbeveragesuponwhichthetaxesprovided
by the tax provisions of Title 5 of the Tax – General Article have been paid, for the
person’s own use and not for sale.
(7) “Court” means the circuit court of a county or any judge of a circuit
court.
(8) “Family beer” means homemade beer produced for home consumption
and not for sale and includes beer produced at a licensed family beer and wine facility.
(9) “Familywine”meanshomemadewineproducedforhomeconsumption
and not for sale and includes wine produced at a licensed family beer and wine facility.
(9–1) “Hard cider” means a beverage derived primarily from apples, apple
concentrate and water, pears, or pear concentrate and water, containing no other fruit
product, and containing at least one–half of 1% and less than 7% of alcohol by volume.
(10) (i) “Hotel” means an establishment:
1. Which accommodates the public;
2. Which is equipped with not less than ten bedrooms and a
dining room with facilities for preparing and serving regular meals; and
3. In which the average daily receipts from the hire of rooms
and the sale of foods exceed the average daily receipts from the sale of alcoholic
beverages.
(ii) The board of license commissioners in any county or in
Baltimore City, and the Mayor, Counselor and Aldermen of the City of Annapolis, may
by regulation prescribe a different standard as to what constitutes a hotel.
(iii) The requirements of this subsection relating to average daily
receipts are not applicable to any licenses issued in Cecil County.
(11) (i) “Illicit alcoholic beverages” means any alcoholic beverages which
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have been manufactured, bottled or rectified within this State on any premises other
than a premises licensed under this article, or which have been manufactured, bottled
or rectified outside of this State on any premises other than a premises licensed under
the United States Internal Revenue Code or the laws of a foreign country.
(ii) Any alcoholic beverages found in any container without a
regular label which truly describes its contents and which states the true name of
the importer, manufacturer, bottler or rectifier are presumed to be illicit alcoholic
beverages. However, the presumption does not apply to any alcoholic beverages found:
1. In drinking glasses or other similar open containers for
drinking purposes;
2. In home–type decanters found in a dwelling house or in
a punch bowl or other receptacle of a similar nature, if found under circumstances
which indicate that the alcoholic beverages contained in the receptacles are intended
for consumption on the premises by consumers and not for sale; or
3. Incontainerspossessedbyaproperretailalcoholicbeverage
licensee when the alcoholic beverages are premixed for lawful sale and consumption.
(12) “Import” means to transport or ship, or to order or arrange for the
transportation or shipment of, alcoholic beverages into this State from any other state,
district, territory or country.
(13) “Importer” means a person importing any alcoholic beverage.
(14) “In this State” or “within this State” means in or within the territorial
limits of this State.
(15) (i) “License holder” or “licensee” means the holder of any license or
permit, issued under the provisions of this article or of any other law of this State, and
includes a county liquor control board and a county dispensary.
(ii) Forthedeliveryandbillingpurposesof§§2–301(b)and2–401(b)
of this article, “license holder” or “licensee” also means a corporation on whose behalf
an individual or individuals have obtained a license.
(16) (i) “License issuing authority” means:
1. For a State license issued under this article, the State
Comptroller; and
2. For a local license issued under this article, the board of
licensecommissionersorotherlocalagencyexpresslyauthorizedbythisarticletoissue
the license.
(ii) “License issuing authority” does not include a clerk of a circuit
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court.
(17) “Light wine” means any naturally fermented wine containing not in
excess of 15.5 percent of alcohol by volume.
(18) (i) “Local collecting agent” means:
1. In the City of Annapolis, the city clerk;
2. In Allegany County, Baltimore County, Howard County,
Prince George’s County, or Wicomico County, the director of finance;
3. In Calvert County, Dorchester County, St. Mary’s County,
or Somerset County, the treasurer of the county; and
4. In each other county, the board of license commissioners or
other local agency expressly authorized by this article to collect fees under this article.
(ii) “Localcollectingagent”doesnotincludeaclerkofacircuitcourt.
(19) “Local licensing board” means a board of license commissioners of a
county or the Mayor and Aldermen of the City of Annapolis.
(20) “Manufacturer”meansapersonoperatingaplantwithinthisStatefor
distilling, rectifying, blending, brewing, fermenting or bottling any alcoholic beverage.
(21) “Person” means a natural person, an association, a partnership,
a corporation, or a state, political subdivision, or municipality, or any agency or
instrumentality of the State, any political subdivision, or municipality.
(22) (i) 1. “Restaurant” means an establishment:
A. Which accommodates the public;
B. Which is equipped with a dining room with facilities for
preparing and serving regular meals; and
C. In which the average daily receipts from the sale of foods
exceed the average daily receipts from the sale of alcoholic beverages.
2. However the board of license commissioners in any county
by regulation may prescribe a different standard as to what constitutes a restaurant.
3. Subject to subsubparagraph 4 of this subparagraph, for a
restaurant in Baltimore City, the average daily receipts from the sale of food must be
at least 40% of the total daily receipts of the establishment.
4. The Board of Liquor License Commissioners for Baltimore
City may waive the food requirement specified under subsubparagraph 3 of this
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subparagraph for a restaurant owned and operated by a not–for–profit organization
in the area bounded by South Ellwood Avenue on the west, Bank Street on the north,
South Bouldin Street on the east, and Fleet Street on the south.
(ii) In Baltimore City, the term “food” as used in the definition of
“restaurant”, whether the definition is established by State law or by regulations
adopted by the Board of License Commissioners, may not include any ingredient or
garnish used with or mixed with an alcoholic beverage that is prepared and served for
consumption on the licensed premises.
(iii) In Harford County a “restaurant” as used in § 5–201 and §
6–201(n)(9) of this article means a business establishment for the accommodation of
the public, fully equipped with a proper and adequate dining room, tables, chairs and
sufficient facilities for preparing and serving regular meals, as may be approved by
the Liquor Control Board. The Board and Department of Health shall approve its
sanitary facilities, running hot and cold water, equipment for the proper cleaning of
dishes and kitchenware and adequate toilets. At all times there must be sufficient
food on the premises for the regular serving of meals, with a proper sign or signs in
front of the establishment designating “restaurant” or food and beverages sold, and
not advertising any other business. In this establishment the average gross monthly
receipts from the sale of foods cooked or prepared and served on the premises where
the license is exercised, and other foods, commodities and items defined by the Liquor
Control Board, shall exceed 50 percent of the average monthly receipts from the sale
of beer and wine, except that a restaurant serving food and beverages whose gross
monthly receipts from the sale of food averages $1,500 or more may not be required to
sell food and food commodities in excess of 50 percent of the average monthly receipts
from the sale of beer and wine.
(iv) Therequirementsofthissectionrelatingtoaveragedailyreceipts
are not applicable to any licenses issued in Cecil County.
(23) “Retail dealer” means a person who deals in or sells any alcoholic
beverage to any person other than a license holder, and includes a county dispensary.
(24) “Sparkling wine” means champagne or any artificially carbonated
wine.
(25) “This article” includes provisions in the Tax – General Article derived
from this article.
(26) In Baltimore City, “total daily receipts” does not include sales of
novelty items, income from vending machines, or other receipts not resulting from the
sale of food or beverages.
(27) (i) “Wholesaler” means:
1. A person who purchases or imports any alcoholic beverage
for sale to wholesale or retail dealers only; or
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2. A limited winery that sells wine to retail dealers.
(ii) “Wholesaler” includes a county liquor control board and a county
wholesale dispensary.
(28) “Wine” means any fermented beverage, including light wines, and
wines the alcoholic content of which has been fortified by the addition of alcohol,
spirits or other ingredients.
(b) (1) Inthisarticlethefollowingwordshavethemeaningsindicatedwithin
the specified subdivisions.
(2) In Anne Arundel County, “taxpayer” means an individual who owns
realpropertyintheindividual’sownname,individuallyorjointlywithothers,andpays
real property taxes to Anne Arundel County.
(3) InPrinceGeorge’sandSt.Mary’scounties“taxpayer”meansaresident
who pays either real estate tax, income tax, or both.
(4) InWicomicoCounty,“bowlingalley”meansanestablishmentinwhich
the primary business activity is to provide bowling lanes and bowling activities for the
public, and which may be equipped with a dining room or snack bar area for the sale
of food and beverages.
(5) In Worcester County, “taxpayer” means an individual who owns real
estate in Worcester County in his own name, either individually or jointly with others,
and actually pays real estate tax in Worcester County.
§1–103.
In any part of this article, where a statement of a general rule of law is followed
by an exception or qualification applicable to special areas or to particular persons or
sets of circumstances, the law as stated in the exception or qualification shall prevail
over the general rule of law insofar as there is any conflict or inconsistency between
the two.
§1–104.
If any portion of this article or the application thereof to any person or set of
circumstances is held invalid by any court of competent jurisdiction and authority, the
remainder of this article and its application to other persons and sets of circumstances
shall not thereby be affected.
§1–201.
(a) (1) Alcoholic beverages may not be bought, possessed, stored, imported,
transported, kept or suffered to be bought, possessed, stored, imported, transported
or kept in any vehicle, vessel or aircraft or on any premises or under the charge or
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control of any person except: (i) by a consumer, or (ii) by a licensee as provided in this
article, or (iii) by a person under 21 years of age who has in the person’s possession
or is transporting alcoholic beverages for any lawful purpose with the knowledge and
consent of the person’s parent or guardian or incident to the lawful employment of the
person as provided for in this article. However, this exception does not permit a person
undertheageof21tobuyorconsumealcoholicbeverages,nortopossess,store,import,
transportorkeepalcoholicbeveragesforhisownuse,nortobuy,possess,store,import,
transport or keep alcoholic beverages for any purpose in any county or Baltimore City
where otherwise prohibited by this article or any other law of this State.
(2) A person may not sell, or suffer to be sold, or for the purpose of sale,
transport, buy, possess, keep or suffer to be transported, bought, possessed or kept in
anyvehicle,vesseloraircraftoronanypremisesorundertheperson’schargeorcontrol
anyalcoholicbeveragesunlessotherwiseprovidedforinthisarticleortheTax­General
Article.
(3) A person may not manufacture, blend, rectify, bottle or suffer to be
manufactured, blended, rectified or bottled any alcoholic beverages except on premises
licensed under this article unless otherwise provided for in this article.
(4) A person may not buy, bargain, sell, borrow, lend, manufacture,
possess, transport or suffer to be bought, bargained, sold, lent, manufactured,
possessed or transported any apparatus, materials, equipment, implements, devices
or other personal property designed, used or intended for use directly or immediately
in connection with the unlawful manufacture of alcoholic beverages. The apparatus,
materials, equipment, implements, devices or other personal property shall be deemed
contraband and may be confiscated and forfeited as provided in this article.
(5) Any vehicle, vessel or aircraft used with the express or implied
knowledge, consent or permission of its lawful owner for the purpose of violating
any of the provisions of this article relating to the unlawful manufacture of alcoholic
beverages or which is used to transport, store or secrete illicit alcoholic beverages
shall be deemed contraband and may be confiscated by the Comptroller or his duly
authorized enforcement officers and may be forfeited as provided for in this article.
(b) (1) A license or permit is not required for the manufacture of family wine,
beer, or cider exclusively for home consumption, competition, or use in a licensed
national family wine exhibition and not for sale.
(2) InSt.Mary’sCounty,ciderornativewinesmaybesoldbytheirmaker
without a license.
(c) (1) A license or permit is not required in the case of:
(i) A common carrier, warehouseman or other lienholder exercising
that lienholder’s right to sell alcoholic beverages under a lien;
(ii) Any authorized county or Baltimore City official exercising the
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official’srighttosellcertainconfiscatedalcoholicbeveragesasprovidedinthissection;
or
(iii) Any sheriff, constable, receiver, auctioneer, trustee, attorney,
executor or administrator selling alcoholic beverages under an order of court.
(2) Sales may only be made to a license holder, and if the purchaser is a
retail dealer, the person making the sale shall pay the taxes imposed by § 5­102 of the
Tax ­ General Article before delivery is made to the purchaser.
(d) Warehouse receipts covering alcoholic beverages on storage in public
(including government controlled) warehouses in this State may be purchased or sold
without a license or permit, but withdrawals or deliveries of those beverages may
not be made in this State except to licensed manufacturers and wholesalers. The
Comptroller may prescribe regulations covering warehouse receipt transactions.
(e) A license or permit is not required either of transport planes furnished with
a cocktail lounge or of ships carrying passengers or cargo to a foreign port, in order to
purchase alcoholic beverages from wholesalers or manufacturers, if satisfactory proof
in writing is furnished that the beverages are for sale or use beyond the continental
limits and possessions of the United States.
(f) (1) All alcoholic beverages and other contraband kept, possessed, used,
sold, manufactured, stored or transported contrary to the provisions of this article
are subject to confiscation and forfeiture, and when confiscated may be recovered or
disposed of only as provided in this subsection.
(2) If any defendant is adjudged guilty of violating the provisions of this
articleanypropertyinthedefendant’spossessionorcontrolseizedascontrabandshall
be deemed immediately forfeited. Any property otherwise adjudged as contraband or
otherwise in violation of the provisions of this article shall be deemed immediately
forfeited.Whereanypropertyseizedascontrabandisunclaimedfor30dayssubsequent
to the date of confiscation and the property has not been destroyed as provided in this
section, the property shall be deemed forfeited, except vehicles, vessels and aircraft
which shall be deemed forfeited unless a claim is filed within 30 days subsequent to
the date of publication provided for in paragraph (3) of this subsection.
(3) The Comptroller shall notify the registered owner where possible and
shall publish notice in a newspaper of general circulation in the county, or Baltimore
City, where seized, of any vehicle, vessel or aircraft confiscated under this article. The
notice shall inform interested persons of the seizure and right to file a claim protesting
the confiscation of the vehicle, vessel or aircraft.
(4) Any lawful lienholder, or other person showing a legal right, title
or interest in confiscated property not destroyed as provided in this section, within
30 days of confiscation or, if the confiscated property is a vehicle, vessel or aircraft,
within 30 days of publication of notice, may file a claim protesting the seizure with
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the Comptroller. When a claim and protest is filed the circuit court for the county in
which the property was confiscated shall proceed in rem to hear and determine the
question of forfeiture.
(5) If the court determines any property is subject to forfeiture it shall
also determine whether any lawful lienholder who has filed a timely claim and protest
hadknowledgeoftheintendedunlawfuluse.Ifthecourtfindsthatknowledgethenthe
lienholder’s right, title and interest to the property shall likewise be deemed forfeited.
If the court does not find that knowledge and the property is otherwise subject to
forfeiture, it shall be forfeited and the Comptroller, as the Comptroller deems in the
best interest of the State, may pay the outstanding indebtedness secured by the lawful
lien and keep the property or deliver the property to the lienholder.
(6) Any property confiscated and forfeited under this article or the
provisions of the Tax ­ General Article that relate to the alcoholic beverage tax shall
become the property of the respective county or City of Baltimore in which they were
confiscated, except that property confiscated by officers of this State shall become the
property of this State. The Comptroller of the Treasury, the county commissioners
or county councils of the respective counties, or the Mayor of Baltimore City, as the
case may be, as they deem in the best public interest, shall retain for official use, sell,
or otherwise dispose of the forfeited property. However, any lawfully manufactured
alcoholic beverages forfeited to a county in which there is a liquor control board shall
become the property of the liquor control board for that county and shall be sold by
the county dispensaries in those counties. The proceeds from the sales shall be treated
in the same way as the proceeds from ordinary sales made by the dispensaries. Illicit
alcoholic beverages may not be returned or given to any person or otherwise disposed
of except by destruction.
(7) An officer confiscating any unlicensed distillery or unlawful distillery
materials, equipment or devices under circumstances which render it impractical or
impossible to move them to a safe place of custody and storage, or confiscating any
illicit alcoholic beverages, except that seized for evidence or forfeiture, shall forthwith
destroy them only insofar as is necessary to render them unfit for further unlawful
use and shall report the confiscation and destruction to the Alcohol and Tobacco Tax
Bureau of the Comptroller of the Treasury of Maryland.
(g) A person may not remove or destroy or cause to be removed or destroyed
any property which has been seized under this article or the provisions of the Tax ­
General Article that relate to the alcoholic beverage tax, or to prevent or attempt to
prevent the seizure of any property by pouring out, breaking, destroying, removing or
otherwise disposing of them, and any fluid poured out or otherwise disposed of when
any premises, place or thing is searched or about to be searched shall be held prima
facie to be an alcoholic beverage and intended for sale or other use in violation of this
article or the Tax ­ General Article.
(h) An import­export permit is not required of any importer importing into this
State alcoholic beverages for storage in public warehouses for subsequent shipment
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