Source: https://marylandbeer.org/startup-assistance/
Timestamp: 2019-04-23 16:39:12+00:00

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Part of the Brewers Association of Maryland’s mission is to help new breweries through the licensing and startup process. We encourage startups to join BAM and begin networking with the industry, benefit from the legal and regulatory advice and BAM’s marketing programs.
State of Maryland manufacturing license.
This article from an attorney who works almost exclusively with craft beverage producers also offers good tips on navigating the TTB application process.
BAM can be very helpful for member startups by assisting in the planning/zoning process. Click on the sections below to reveal the details of each State of Maryland manufacturing license. Contact BAM if you have questions about the laws.
(a) In this section, “affiliate” means a person that directly or indirectly through one or more intermediaries controls, is controlled by, or is under common control with a holder of a Class 5 brewery license.
(b) There is a Class 5 brewery license.
(7) subject to subsection (f) of this section, sell beer at the location described in the license for on–premises consumption.
(2) has attained the legal drinking age.
(e) The annual license fee is $1,500.
(f) (1) A local licensing board may grant an on–site consumption permit to an applicant that holds a Class 5 brewery license and, subject to paragraph (6) of this subsection, a Class D beer license.
B. the beer is manufactured by an affiliate of the license holder.
(3) (i) This paragraph applies to a Class 5 brewery with more than 1,000,000 barrels of finished production annually, alone or in combination with its affiliates.
(ii) Beer that is delivered to the Class 5 brewery in finished form may be sold for on–premises consumption under paragraph (2)(iii)2 of this subsection only if it is purchased from a licensed wholesaler.
(4) Except as provided in paragraph (5) of this subsection, the total amount of beer sold each year for on–premises consumption under this subsection may not exceed 2,000 barrels.
(5) (i) If, in a single year, the license holder reaches 80% of the volume authorized to be sold for on–premises consumption under paragraph (4) of this subsection, the license holder may file a request with the Comptroller for permission to sell up to an additional 1,000 barrels for on–premises consumption in that year.
(ii) The maximum volume that a license holder may sell for on–premises consumption in a single year is 3,000 barrels.
(iii) Any beer that the license holder sells for on–premises consumption in excess of the 2,000–barrel limit under paragraph (4) of this subsection shall be purchased from a licensed wholesaler.
(ii) require the applicant to obtain that equivalent license.
(7) A local licensing board may charge a fee for granting an on–site consumption permit.
(ii) abide by all applicable trade practice restrictions.
(g) (1) The Comptroller may issue a brewery promotional event permit to a holder of a Class 5 brewery license.
(ii) sell beer to individuals who participate in the event.
(3) Subject to subsection (i) of this section, the beer at the event shall be sold by the glass for on–premises consumption only.
(4) To obtain a permit, an applicant, at least 15 days before the event, shall file with the Comptroller an application that the Comptroller provides.
(5) A holder of a Class 5 brewery license may not be issued more than 12 permits in a calendar year.
(6) A single promotional event may not exceed 3 consecutive days.
(7) The permit fee is $25 per event.
2. beer is sold for off–premises consumption under subsection (c)(6) of this section.
(ii) notwithstanding paragraph (1)(iii) of this subsection, a manufacturer of beer with more than 1,000,000 barrels of finished production annually alone or in combination with its affiliates.
(3) Notwithstanding any provision in Division II of this article, the sales and serving privileges of an on–site consumption permit and a Class D license or an equivalent license may be exercised only from 10 a.m. to 10 p.m. Monday through Sunday.
(2) beer of which the license holder or an affiliate of the license holder is the brand owner.
2. at no cost to the holder of the Class 5 brewery license.
(ii) A refillable container permit may be renewed each year concurrently with the renewal of the Class 5 brewery license.
(2) The hours of sale for a refillable container permit issued under this subsection are the same as the hours when a guided tour, a promotional event, or other organized activity at the licensed premises authorized under subsection (c) of this section may be conducted.
(iv) the total sales of the license holder of additional beer under subsection (f)(5)(i) of this section in the preceding fiscal year.
(2) Each holder of a Class 5 license shall report to the Comptroller the information needed to prepare the annual report under this subsection.
(3) The Comptroller may include the information reported under this subsection in the annual report submitted under § 1–306 of this article.
It is worth noting that most of what are casually referred to as “Brew-Pubs” in the State of Maryland, are actually registered under Class 7 licenses.
Is not available in all jurisdictions.
May sell to a wholesale for resale to restaurants and retailers.
(a) There is a Class 8 farm brewery license.
(ii) a person in another state authorized to acquire beer.
(2) The beer to be sold and delivered under paragraph (1) of this subsection shall be manufactured with an ingredient from a Maryland agricultural product, including hops, grain, and fruit, produced on the licensed farm.
(ii) the temporary delivery agreement is in writing.
(d) (1) A Class 8 farm brewery may be located only at the place stated on the license.
(2) The place listed on the license shall be in compliance with § 1–405(b) of this article.
(e) (1) Except as provided in paragraph (2) of this subsection and notwithstanding any local law, a license holder may exercise the privileges of a Class 8 farm brewery license.
(2) A license holder who sells foods under subsection (c)(1)(iv) of this section shall meet the same ratio of gross receipts between food and alcoholic beverages sales as a holder of a Class D beer and wine license or an equivalent license in the jurisdiction, as the local licensing board determines.
(iii) guests who attend a planned promotional event or other organized activity at the licensed farm.
(g) Except as provided in Division II of this article, a Class 8 farm brewery license allows the license holder to operate 7 days a week.
(h) Nothing in this section limits the application of relevant provisions of Title 21 of the Health – General Article, and regulations adopted under that title, to a license holder.
(ii) provides for the sale of beer by the glass for on–premises consumption only.
(2) In a segregated area approved by the Comptroller on the licensed farm, a license holder may store the products of other Maryland breweries for the multibrewery activity.
(ii) may not exceed 3 consecutive days.
(j) (1) The Comptroller may issue a brewery promotional event permit to a license holder.
(2) At least 15 days before holding a planned promotional event, the license holder shall obtain a permit from the Comptroller by filing a notice of the promotional event on the form that the Comptroller provides.
(ii) sell beer produced by the license holder to persons who participate in the event.
(4) The beer at the event shall be sold by the glass and for on–premises consumption only.
(5) The license holder may not be issued more than 12 permits in a calendar year.
(k) The annual license fee is $200.
(a) There is a Class 7 limited beer wholesaler’s license.
(2) produces in the aggregate from all of its locations not more than 22,500 barrels of beer annually.
(2) distribute not more than 3,000 barrels of its own beer annually.
(d) The annual license fee is $50.
(2) on the payment of a $50 fee for each additional location.
TITLE 17. BEER FRANCHISE FAIR DEALING ACT.
(a) Declaration of policy. — It is the declared policy of the State of Maryland that it is necessary to regulate and control the agreements, franchises and relationships between manufacturers of beer and their distributors for the purpose of fostering and promoting temperance in the consumption thereof, and to promote respect for and obedience to the laws controlling the distribution and sale of beer. It is necessary to accomplish the declared policy in order to eliminate the undue stimulation of sales of beer in this State by manufacturers inducing, coercing, or attempting to induce or coerce, distributors of beer to do acts detrimental to the orderly and lawful distribution thereof by threatened or actual termination of the manufacturer and distributor relationship, directly or indirectly, by the establishment of dual distributors of a brand or brands thereof in a territory presently served by a distributor, or by the sale of the same brand or brands in one territory by more than one franchisee. It is the further declared policy of the State of Maryland that temperance and obedience to the laws controlling the distribution and ultimate sale of beer is promoted by legislation encouraging distributors of beer to make investments in their facilities to serve retail licensees by protecting them against the termination of such distributorships, or other acts described herein, without good cause for such termination or other such acts. The General Assembly further recognizes the distinction between the nature of the distribution of beer and other alcoholic beverages in that distributors of alcoholic liquors other than beer are franchised by manufacturers to distribute many brands of various kinds of alcoholic beverages and are not as vulnerable to the economic pressures of the manufacturers as are beer distributors, which traditionally handle mainly one, two or three brands of beer in their distributorships.
(1) “Franchise” or “agreement” shall mean one or more of the following: (i) a commercial relationship between a beer distributor and a beer manufacturer of a definite duration or indefinite duration, which is not required to be evidenced in writing; (ii) a relationship whereby the beer distributor is granted the right to offer and sell the brands of beer offered by the beer manufacturer; (iii) a relationship whereby the beer distributor, as an independent business, constitutes a component of a beer manufacturer’s distribution system; (iv) a relationship whereby the beer distributor’s business is substantially associated with the beer manufacturer’s brand, advertising or other commercial symbol designating the beer manufacturer; (v) a relationship whereby the beer distributor’s business is substantially reliant on the beer manufacturer for the continued supply of beer; and (vi) a written or oral arrangement for a definite or indefinite period whereby a beer manufacturer grants to a beer distributor a license to use a trade name, trademark, service mark, or related characteristic, and in which there is a community of interest in the marketing of goods or services at wholesale, retail, by lease, or otherwise.
(2) “Franchisee” means any beer distributor to whom a franchise or agreement as defined herein is granted or offered or any beer distributor who is a party to a franchise or agreement as defined herein.
(3) “Franchisor” means any beer manufacturer who enters into any franchise or agreement with a beer distributor or any beer manufacturer who is a party to a franchise or agreement as defined herein.
(4) “Beer distributor” shall mean any person importing or causing to be imported into this State, or purchasing or causing to be purchased within this State, any beer for sale or resale to retailers licensed under this article without regard to whether the business of such person is conducted under the terms of a franchise or any other form of an agreement with a beer manufacturer or manufacturers.
(5) “Beer manufacturer” means every brewer, fermenter, processor, bottler or packager of beer located within or without the State of Maryland, or any other person whether located within or without the State of Maryland who enters into a “franchise” or an “agreement” with any beer distributor doing business in the State of Maryland.
(6) “Person” means a natural person, corporation, partnership, trust, agency, or other entity as well as the individual officers, directors and other persons in active control of the activities of each such entity.
(7) “Territory” or “sales territory” shall mean the area of sales responsibility designated by any agreement or franchise between any franchisee or franchisor for the brand or brands of any franchisor or any beer manufacturer.
HISTORY: 1974, ch. 877; 1989, ch. 5, § 15.
No beer manufacturer shall (1) induce or coerce, or attempt to induce or coerce, any beer distributor to accept delivery of any alcoholic beverage, any form of advertisement, or any other commodity, which shall not have been ordered by the beer distributor; (2) induce or coerce, or attempt to induce or coerce, any beer distributor to do any illegal act or thing, or do any other act unfair to the beer distributor, by threatening to cancel, terminate, or refuse to renew any beer franchise existing between a beer manufacturer, or representative thereof, and a beer distributor; (3) fail or refuse to deliver to a beer distributor having a franchise, or agreement, any beer publicly advertised by it or its agents for immediate sale promptly after such beer distributor’s order shall have been received.
(a) Applicability. — This section does not apply to temporary delivery agreements under § 2-208(c)(1)(vi) of this article regarding beer festivals or wine and beer festivals.
(b) Good cause requirement. — Notwithstanding the terms, provisions or conditions of any agreement or franchise, no franchisor shall cancel, terminate or refuse to continue or renew any beer franchise, or cause a franchisee to resign from a franchise, unless good cause exists for termination, cancellation, nonrenewal, noncontinuation or causing a resignation; provided, that good cause shall exist if a franchisee’s license to do business in the State is revoked under any provisions of this article.
HISTORY: 1974, ch. 877; 1989, ch. 5, § 15; 1998, ch. 641.
(b) Notice requirement. — Except as provided in this section, a beer manufacturer shall provide a franchisee at least 180 days prior written notice of any intent to terminate, cancel or nonrenew any franchise agreement. The notice shall state all the reasons for the intended termination, cancellation, or nonrenewal. The franchisee shall have 180 days in which to rectify any claimed deficiency. If the deficiency shall be rectified within 180 days of notice, then the proposed termination, cancellation or nonrenewal shall be null and void and without legal effect. The notice provisions of this section shall not apply if the reason for termination, cancellation or nonrenewal is insolvency, the occurrence of an assignment for the benefit of creditors, or bankruptcy.
No franchisor, who shall designate a sales territory for which any franchisee shall be primarily responsible or in which any franchisee is required to concentrate its efforts, shall enter into any franchise or agreement with any other beer distributor for the purpose of establishing an additional franchisee for its brand or brands of beer in the territory being primarily served or concentrated upon by a licensed franchisee.
No franchisee who shall be granted a sales territory for which the franchisee shall be primarily responsible or in which the franchisee is required to concentrate its efforts shall make any sale or delivery of beer to any retail licensee whose place of business is not within the territory granted to the franchisee.
Any beer distributor or franchisee may bring an action against a beer manufacturer, franchisor, or franchisee for violation of this subtitle in any court of general jurisdiction in the State of Maryland to recover damages sustained by reason of any violation of this subtitle and, where appropriate, shall be entitled to injunctive relief. The beer distributor or franchisee, if successful, shall also be entitled to the costs of the action including but not limited to reasonable attorney’s fees.
HISTORY: 1974, ch. 877; 1975, ch. 819; 1989, ch. 5, § 15.

References: § 1
 § 1
 § 15
 § 2
 § 15
 § 15