Alcoholic Beverages - Class 9 Limited Distillery License - Alteration
Summary
HB999 alters Maryland’s Class 9 limited distillery license rules. The bill removes the current restriction that a license holder may maintain only one brand at a time for each product category and that it may not manufacture or rectify product for another entity. It also expressly allows a Class 9 limited distillery to manufacture or rectify up to 31,000 gallons per calendar year for another brand or entity, while keeping the overall annual cap of 100,000 gallons for distilling, rectifying, bottling, and selling brandy, rum, whiskey, alcohol, and neutral spirits.
The bill preserves the existing framework that ties the limited distillery license to a Class B or Class D beer, wine, and liquor license, allows retail sales through the underlying license, and permits guided tours and limited sampling on the distillery premises. It also maintains the prohibition on holding most wholesaler licenses, the restriction on selling bottles on the distillery portion of the premises, and the requirement to convert to a Class 1 distillery license if production exceeds the higher threshold. The bill takes effect July 1, 2026.
Impact
HB999 amends Section 2-203 of the Alcoholic Beverages and Cannabis Article in the Annotated Code of Maryland. Its main legal effect is to expand the operational flexibility of Class 9 limited distillery license holders by allowing contract-style production or rectification for other brands or entities up to 31,000 gallons annually, while leaving the broader licensing structure and production limits largely intact. It affects distillery operators, retail license holders, and related alcohol wholesalers and regulators by broadening permissible business arrangements without converting the license into a full distillery license.
Sentiment
The bill appears to have been broadly supported. It received favorable committee treatment in the House, was adopted on the House floor, and then passed the Senate unanimously, 33-0. The voting history suggests little organized opposition and a generally positive view of the measure among legislators.
Contention
No committee testimony or floor debate is provided, and the recorded votes show no dissent, so there is no clear evidence of substantial controversy. The only likely policy tension is between expanding business opportunities for limited distilleries and preserving the distinction between limited distillery operations and full-scale manufacturers. The bill addresses that concern by keeping the overall production cap, retail-license linkage, and other restrictions in place while allowing limited production for outside brands or entities.
AN ACT to amend and reenact sections 5-01-01 and 5-01-19.1, and subsection 2 of section 5-01-19.2 of the North Dakota Century Code, relating to the definitions of a domestic and manufacturing distillery and satellite locations.