HB 1018
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
Third Reader
House Bill 1018 (Charles County Delegation)
Economic Matters Education, Health, and Environmental Affairs
Charles County – Alcoholic Beverages – Class 4 Limited Winery License
This bill authorizes a Class 4 limited winery license holder in Charles County to hold or
have a financial interest in one retail license that does not apply to the premises for which
the Class 4 limited winery license applies. The bill takes effect July 1, 2021.
Fiscal Summary
State Effect: None.
Local Effect: None.
Small Business Effect: Minimal.
Analysis
Current Law: Section 2-216 of the Alcoholic Beverages Article prohibits a
manufacturing entity from (1) having a financial interest in the premises on which a license
holder sells alcoholic beverages at retail or a business that a license holder conducts;
(2) lending money or any other thing of value or making a gift to a retail dealer; and
(3) providing advertisement to a retail dealer. Additionally, a retail dealer may not accept,
receive, or make use of money, a gift, or an advertisement provided by a manufacturing
entity or become indebted to a manufacturing entity except for the purchase of alcoholic
beverages and allied products purchased for resale.
A Class 4 limited winery license may be issued by the Comptroller, and authorizes the sale
and sampling of wine and pomace brandy produced by the license holder for consumption.
A Class 4 license holder must (1) own or have under contract at least 20 acres of grapes or
other fruit in cultivation in the State for use in the production of wine or (2) if less than
20 acres are owned or under contract, ensure that at least 51% of the ingredients used in
the annual production of wine are grapes or other fruit grown in the State. A license holder
may (1) sell or serve specified types of food; (2) distill and bottle up to 1,900 gallons of
pomace brandy made from available Maryland agricultural products; (3) purchase bulk
wine and pomace brandy in a specified manner; (4) import, export, and transport its
product; (5) store the product of other Class 4 limited wineries in a specified manner; and
(6) produce wine and pomace brandy at a warehouse for which the license holder has been
issued an individual storage permit if specified conditions are met. A Class 4 limited winery
may only be located at the place stated on the license. Throughout the winemaking process,
the licensee must maintain ownership of the wine or pomace brandy and ensure it returns
to the location of the limited winery. The annual license fee is $200.
Additional Information
Prior Introductions: None.
Designated Cross File: SB 833 (Charles County Senators) - Education, Health, and
Environmental Affairs.
Information Source(s): Charles County; Department of Legislative Services
Fiscal Note History: First Reader - February 16, 2021
md/tso Third Reader - March 18, 2021
Analysis by: Michael E. Sousane Direct Inquiries to:
(410) 946-5510
(301) 970-5510
HB 1018/ Page 2


Statutes affected:
Text - First - Charles County – Alcoholic Beverages – Class 4 Limited Winery License: 2-216 Alcoholic Beverages, 18-102 Alcoholic Beverages, 18-401 Alcoholic Beverages, 18-403 Alcoholic Beverages
Text - Third - Charles County – Alcoholic Beverages – Class 4 Limited Winery License: 2-216 Alcoholic Beverages, 18-102 Alcoholic Beverages, 18-401 Alcoholic Beverages, 18-403 Alcoholic Beverages