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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb0999*
HOUSE BILL 999
A1 6lr2687
By: Delegate Clippinger
Introduced and read first time: February 6, 2026
Assigned to: Economic Matters
Reassigned: Government, Labor, and Elections, February 12, 2026
Committee Report: Favorable
House action: Adopted
Read second time: March 9, 2026
CHAPTER ______
AN ACT concerning 1
Alcoholic Beverages – Class 9 Limited Distillery License – Alteration 2
FOR the purpose of authorizing the holder of a Class 9 limited distillery license to 3
manufacture, rectify, or bottle more than one brand of alcoholic beverage; 4
authorizing the holder to manufacture or rectify up to a certain amount of product 5
of an entity other than the holder; and generally relating to Class 9 limited distillery 6
licenses. 7
BY repealing and reenacting, with amendments, 8
Article – Alcoholic Beverages and Cannabis 9
Section 2–203 10
Annotated Code of Maryland 11
(2024 Replacement Volume and 2025 Supplement) 12
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 13
That the Laws of Maryland read as follows: 14
Article – Alcoholic Beverages and Cannabis 15
2–203. 16
(a) There is a Class 9 limited distillery license. 17
(b) The limited distillery license may be issued only to a holder of a: 18
2 HOUSE BILL 999
(1) Class D beer, wine, and liquor license where sales for both 1
on– and off–premises consumption are permitted for use on the premises for which the 2
Class D license was issued; or 3
(2) Class B beer, wine, and liquor license where sales for both 4
on– and off–premises consumption are permitted for use on the premises for which the 5
Class B license was issued. 6
(c) A holder of the limited distillery license: 7
(1) may establish and operate a plant in the State for distilling, rectifying, 8
and bottling brandy, rum, whiskey, alcohol, and neutral spirits [if the holder: 9
(i) maintains only one brand at any one time for each product of 10
brandy, rum, whiskey, alcohol, and neutral spirits that is distilled, rectified, and sold; and 11
(ii) does not manufacture or rectify product of any other brand for 12
another entity]; 13
(2) may acquire bulk alcoholic beverages from the holder of a distillery or 14
rectifying license in the State or from the holder of a nonresident dealer’s permit; 15
(3) after acquiring an individual storage permit, may store on the licensed 16
premises those products manufactured under the license; 17
(4) except as authorized under subsection (d)(1) of this section, may sell 18
and deliver those products manufactured under the license only to a licensed wholesaler in 19
the State or person authorized to acquire distilled spirits in another state and not to a 20
county dispensary; 21
(5) may sell the products manufactured under the license at r etail in a 22
manner consistent with the underlying Class D or Class B license; 23
(6) may conduct guided tours of that portion of the licensed premises used 24
for the limited distillery operation; and 25
(7) may serve not more than three samples of products ma nufactured at 26
the licensed premises, with each sample consisting of not more than one–half ounce from a 27
single product, to persons who: 28
(i) have attained the legal drinking age; 29
(ii) participated in a guided tour; and 30
(iii) are present on that portion of the premises used for the limited 31
distillery operation. 32
HOUSE BILL 999 3
(d) A holder of the limited distillery license may not: 1
(1) apply for or possess a wholesaler’s license, except for a Class 8 liquor 2
wholesaler’s license; 3
(2) sell bottles of the pr oducts manufactured at the Class 9 limited 4
distillery on that part of the premises used for the distillery operation; 5
(3) except as provided in subsection (e) of this section, distill, rectify, bottle, 6
or sell more than 100,000 gallons of brandy, rum, whiskey, alcohol, and neutral spirits each 7
calendar year; 8
(4) sell at retail on the premises of the Class D or Class B license, for 9
on–premises or off –premises consumption, more than 31,000 gallons of the products 10
manufactured under the license each calendar year; [and] 11
(5) MANUFACTURE OR RECTI FY MORE THAN 31,000 GALLONS OF 12
PRODUCT EACH CALENDAR YEAR FOR ANY OTHER BRAND OR ENTITY; AND 13
(6) own, operate, or be affiliated in any manner with another 14
manufacturer. 15
(e) To distill more than the gallonage specified in subsection (d)(3) of this section, 16
a holder of the limited distillery license shall divest itself of any Class D or Class B retail 17
license and obtain a Class 1 distillery license. 18
(f) A holder of the limited distillery license shal l abide by all trade practice 19
restrictions applicable to distilleries. 20
(g) The annual license fee: 21
(1) shall be determined by the Executive Director; and 22
(2) may not exceed $500. 23
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 24
1, 2026. 25