Md. Code, Alcoholic Beverages and Cannabis, Title 1

Md. Code, Alcoholic Beverages and Cannabis, Title 1
in effect

Md. Code, Alcoholic Beverages and Cannabis § 1-3A-01

(a) In this subtitle the following words have the meanings indicated. (b) “Executive Director” means the Executive Director of the Office of Social Equity. (c) “Fund” means the Community Reinvestment and Repair Fund. (d) “Office” means the Office of Social Equity.

Md. Code, Alcoholic Beverages and Cannabis § 1-3A-02

(a) The General Assembly finds that: (1) the goal of regulation and taxation of cannabis in the State is to create a safe and regulated industry that benefits the public interest; (2) the use of incarceration in enforcing prohibitions on the importation, manufacture, use, sale, and distribution of cannabis varied within the State by jurisdiction and racial classification; (3) analysis of geographic and demographic characteristics revealed disparities in arrests, prosecution, and imprisonment for cannabis use, with a negative and disproportionate impact on some communities and neighborhoods within the State; and (4) consequences of the disproportionate enforcement of cannabis–related offenses have contributed to the economic, public health, and social conditions of specific communities and have had significant and measurable effects on the social and financial resources available to the children, families, and local infrastructure of these communities. (b) The General Assembly therefore finds that the public interest is served by: (1) acknowledging and repairing the causes and consequences of disparities in arrests and imprisonment in prosecutions of cannabis–related offenses among specific populations and geographic regions; (2) developing, among existing members of communities that have been disproportionately and negatively impacted, the capacity to ascertain and address the social and economic determinants that are fundamental to reducing the impact of longstanding inequities and improving economic, educational, and health outcomes; and (3) being consistent with social equity principles and governance by allocating a significant portion of tax revenue from the adult–use cannabis market to the Community Reinvestment and Repair Fund for distribution to local jurisdictions to be administered by the local jurisdictions.

Md. Code, Alcoholic Beverages and Cannabis § 1-3A-03

(a) (1) There is a Community Reinvestment and Repair Fund. (2) The purpose of the Fund is to provide funds to community–based organizations that serve communities determined by the Office, in consultation with the Office of the Attorney General, to have been the most impacted by disproportionate enforcement of the cannabis prohibition before July 1, 2022. (3) The Comptroller shall administer the Fund. (4) (i) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article. (ii) The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. (5) The Fund consists of: (i) sales and use tax revenue distributed to the Fund under § 2–1302.2 of the Tax – General Article; (ii) conversion fees paid by businesses under § 36–403 of this article; and (iii) any other money from any other source accepted for the benefit of the Fund, in accordance with any conditions adopted by the Comptroller for the acceptance of donations or gifts to the Fund. (6) (i) The Fund may be used only for: 1. funding community–based initiatives intended to benefit low–income communities, including: A. behavioral health crisis response services; B. education and after–school programs; C. truancy and absenteeism intervention programs; D. housing and homelessness prevention initiatives; E. transportation improvements in high–density areas that have public transportation; F. job training and workforce development programs; G. community child care and recreational services; and H. programs that benefit individuals and families impacted by incarceration; 2. funding community–based initiatives that serve disproportionately impacted areas, as defined in § 36–101 of this article; and 3. any related administrative expenses incurred by a local government in administering the funds that do not exceed 15% of the funds received in the fiscal year. (ii) Money may not be expended from the Fund for law enforcement agencies or activities. (iii) Money expended from the Fund is supplemental to and may not supplant funding that otherwise would be appropriated for preexisting local government programs. (7) (i) The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested. (ii) Any interest earnings of the Fund shall be credited to the General Fund of the State. (8) No part of the Fund may revert or be credited to: (i) the General Fund of the State; or (ii) any other special fund of the State. (9) The Comptroller shall pay out money from the Fund. (10) The Fund is subject to audit by the Office of Legislative Audits as provided for in § 2–1220 of the State Government Article. (b) (1) Based on the percentage allocable to each county determined by the Office, the Comptroller shall distribute funds from the Fund to each county in an amount that, for the period from July 1, 2002, to January 1, 2023, both inclusive, is proportionate to the total number of cannabis possession charges in the county compared to the total number of cannabis possession charges in the State. (2) For any distribution of funds to a county under paragraph (1) of this subsection, the county shall hold the funds separately from other revenue and general funds. (3) Subject to the limitations under subsection (a)(6) of this section, each county shall adopt a law establishing the purpose for which money received from the Fund may be used. (c) (1) The Office shall require each county to develop a plan for the distribution of funds to community–based organizations for use in accordance with this section. (2) The plan developed by a county shall be: (i) established before distributing funds under this section; (ii) developed in consultation with stakeholders; and (iii) the subject of a public hearing before finalizing the plan. (3) On or before October 1, 2025, the Office shall adopt regulations to carry out this section. (d) On or before October 1, 2026, and each October 1 thereafter, each county shall submit a report to the Office on: (1) the amount of funds received from the Fund under subsection (b)(1) of this section; (2) the organizations that received funding from the county under this section; (3) the methods used by the county to solicit, review, and select organizations that may be eligible for funding under this section; and (4) administrative expenses related to the county’s administration and distribution of the funds received under subsection (b)(1) of this section.

Md. Code, Alcoholic Beverages and Cannabis § 1-101

(a) In this article the following words have the meanings indicated. (b) (1) “Alcoholic beverage” means a spirituous, vinous, malt, or fermented liquor, liquid, or compound that: (i) contains at least one–half of 1% of alcohol by volume; and (ii) is suitable for beverage purposes. (2) “Alcoholic beverage” includes alcohol, brandy, whiskey, rum, gin, cordial, beer, and wine. (3) “Alcoholic beverage” does not include a confectionery food product that contains up to 5% of alcohol by volume and is regulated by the Maryland Department of Health under § 21–209 of the Health – General Article. (c) (1) “Beer” means a brewed alcoholic beverage. (2) “Beer” includes: (i) ale; (ii) porter; (iii) stout; (iv) hard cider that: 1. is derived primarily from apples, apple concentrate and water, pears, or pear concentrate and water; and 2. contains no other fruit product but contains at least one–half of 1% and less than 8.5% of alcohol by volume; (v) an alcoholic beverage that contains: 1. 6% or less alcohol by volume, derived primarily from the fermentation of grain, with not more than 49% of the alcoholic beverage’s overall alcohol content by volume obtained from flavors and other added nonbeverage ingredients containing alcohol; or 2. more than 6% alcohol by volume, derived primarily from the fermentation of grain, with not more than 1.5% of the alcoholic beverage’s overall alcohol content by volume obtained from flavors and other added nonbeverage ingredients containing alcohol; and (vi) mead. (d) (1) “Cannabis” means the plant Cannabis sativa L. and any part of the plant, including all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a delta–9–tetrahydrocannabinol concentration greater than 0.3% on a dry weight basis. (2) “Cannabis” includes cannabis products, seeds, seedlings, immature plants, and clones. (3) “Cannabis” does not include hemp or hemp products, as defined in § 14–101 of the Agriculture Article. (e) “Central Repository” means the Criminal Justice Information System Central Repository of the Department of Public Safety and Correctional Services. (f) “Club” means an association or a corporation that is: (1) organized and operated exclusively for educational, social, fraternal, patriotic, political, or athletic purposes; and (2) nonprofit. (g) “Commission” means the Alcohol, Tobacco, and Cannabis Commission. (h) (1) “Comptroller” means the Comptroller of the State. (2) “Comptroller” includes a deputy, an inspector, a clerk, or any other individual authorized to act by the Comptroller. (i) “Consumer” means an individual at least 21 years old or a corporation not otherwise prohibited by this article or any other State law, that buys, possesses, keeps, or transports alcoholic beverages on which the taxes under Title 5 of the Tax – General Article have been paid, for the individual’s or corporation’s own use and not for sale. (j) “County” means a county of the State or Baltimore City. (k) (1) “Executive Director” means the Executive Director of the Commission. (2) “Executive Director” includes a deputy, an inspector, a clerk, or any other individual authorized to act by the Executive Director. (l) (1) “Family beer” means homemade beer produced for home consumption and not for sale. (2) “Family beer” includes beer produced at a family beer and wine facility that has been granted a permit under § 2–138 of this article. (m) (1) “Family wine” means homemade wine produced for home consumption and not for sale. (2) “Family wine” includes wine produced at a family beer and wine facility that has been granted a permit under § 2–138 of this article. (n) (1) Subject to paragraph (2) of this subsection, “hotel” means an establishment that: (i) accommodates the public; (ii) is equipped with at least 10 bedrooms and a dining room with facilities for preparing and serving regular meals; and (iii) has average daily receipts from the rental of rooms and sale of food that exceed the average daily receipts from the sale of alcoholic beverages. (2) By regulation, a local licensing board may set a different standard as to what constitutes a hotel. (o) “Illicit alcoholic beverage” means an alcoholic beverage that has been manufactured, bottled, or rectified: (1) in the State at a location not licensed under this article; or (2) outside the State at a location not licensed under the United States Internal Revenue Code or the laws of a foreign country. (p) “Jurisdiction” means a county or the City of Annapolis. (q) “License” means an alcoholic beverages license issued under this article. (r) (1) “License holder” means the holder of an alcoholic beverages license issued or a permit granted under this article. (2) “License holder” includes: (i) a county liquor control board and a county dispensary; and (ii) for the delivery and billing purposes of Title 2, Subtitle 3 and §§ 2–213 and 2–314 of this article, a corporation on behalf of which an individual has obtained a license. (s) “Liquor” has the same meaning as “distilled spirits” under § 5–101(g) of the Tax – General Article. (t) (1) “Local collecting agent” means: (i) in the City of Annapolis, the city clerk; (ii) in Allegany County, Baltimore County, Howard County, Prince George’s County, or Wicomico County, the director of finance; (iii) in Calvert County, Dorchester County, St. Mary’s County, or Somerset County, the treasurer of the county; or (iv) in each other county, the board of license commissioners unless another governmental unit is expressly authorized to collect fees under this article. (2) “Local collecting agent” does not include a clerk of a circuit court. (u) “Local licensing board” means a board of license commissioners or other governmental unit of a jurisdiction that issues licenses. (v) “Manufacturer’s license” means a license issued under Title 2, Subtitle 2 of this article that is: (1) a Class 1 distillery license; (2) a Class 2 rectifying license; (3) a Class 3 winery license; (4) a Class 4 limited winery license; (5) a Class 5 brewery license; (6) a Class 6 pub–brewery license; (7) a Class 7 micro–brewery license; (8) a Class 8 farm brewery license; or (9) a Class 9 limited distillery license. (w) “Mead” means a fermented alcoholic beverage consisting primarily of honey and water. (x) “Off–sale” means the sale of alcoholic beverages that are to be consumed off the licensed premises. (y) “On–sale” means the sale of alcoholic beverages that are to be consumed on the licensed premises. (z) “Person” means: (1) an individual; (2) an association, a partnership, a corporation, a trust, or any other entity, and the officers, directors, and other individuals in active control of the activities of the association, partnership, corporation, trust, or other entity; or (3) (i) the State or a political subdivision of the State, or a unit or an instrumentality of the State or a political subdivision of the State; or (ii) another state or a political subdivision of that state. (aa) “Political subdivision” means a county or a municipality. (bb) “Pomace brandy” means brandy that is distilled from the pulpy residue of wine pressing, including the skins, pips, and stalks of grapes. (cc) (1) Subject to paragraph (2) of this subsection, “restaurant” means an establishment that: (i) accommodates the public; (ii) is equipped with a dining room with facilities for preparing and serving regular meals; and (iii) has average daily receipts from the sale of food that exceed the average daily receipts from the sale of alcoholic beverages. (2) By regulation, a local licensing board may set a different standard as to what constitutes a restaurant. (dd) (1) “Retail dealer” means a person that sells an alcoholic beverage to any person other than a license holder. (2) “Retail dealer” includes a county dispensary. (ee) “7–day license” means a license that is in effect every day of the week. (ff) “6–day license” means a license that is in effect Monday through Saturday. (gg) (1) Except as provided in paragraph (2) of this subsection, “state” means: (i) a state, possession, territory, or commonwealth of the United States; or (ii) the District of Columbia. (2) When capitalized, “State” means Maryland. (hh) “Tobacco” includes cigarettes regulated under Title 16 of the Business Regulation Article and other tobacco and related products regulated under Title 16.5, 16.7, or 16.9 of the Business Regulation Article. (ii) (1) “Wholesaler” means: (i) a person that purchases or imports an alcoholic beverage for sale to wholesale dealers or retail dealers only; or (ii) a limited winery that sells wine to retail dealers. (2) “Wholesaler” includes: (i) a county liquor control board; and (ii) a county wholesale dispensary. (jj) “Wholesaler’s license” means a license issued under Title 2, Subtitle 3 of this article that is: (1) a Class 1 beer, wine, and liquor license; (2) a Class 2 wine and liquor license; (3) a Class 3 beer and wine license; (4) a Class 4 beer license; (5) a Class 5 wine license; (6) a Class 6 limited wine license; or (7) a Class 7 limited beer license. (kk) (1) “Wine” means a fermented beverage. (2) “Wine” includes: (i) light wine; (ii) sparkling wine that is naturally or artificially carbonated; and (iii) fortified wine to which alcohol, spirits, or other ingredients are added.

Md. Code, Alcoholic Beverages and Cannabis § 1-201

(a) (1) (i) To obtain respect and obedience to law and to foster and promote temperance, it is the policy of the State to regulate and control: 1. the manufacture, sale, distribution, transportation, and storage of alcoholic beverages in the State; and 2. the transportation and distribution of alcoholic beverages into and out of the State. (ii) To carry out this policy in the best public interest, it is the intent of the General Assembly that the Commission, Executive Director, local licensing boards, liquor control boards, enforcement officers, and judges of the courts of the State be empowered to administer and enforce this article. (2) It is also the policy of the State to: (i) tax alcoholic beverages as provided in the Tax – General Article; and (ii) deny to a political subdivision in the State, by public general or public local law, the power to impose a tax on distilled spirits, beer, wine, and all other alcoholic beverages. (3) The restrictions, regulations, provisions, and penalties contained in this article are for the protection, health, welfare, and safety of the people of the State. (b) (1) It continues to be the policy of the State to authorize the exercise of the powers provided by this article to displace or limit economic competition by regulating and engaging in the sale or distribution of alcoholic beverages to: (i) obtain respect and obedience to law; (ii) foster and promote temperance; (iii) prevent deceptive, destructive, and unethical business practices; and (iv) promote the general welfare of its residents by controlling the sale and distribution of alcoholic beverages. (2) The officials and units granted powers by this article to regulate and engage in the alcoholic beverages industry may: (i) displace or limit economic competition by regulating and engaging in the sale or distribution of alcoholic beverages on an exclusive basis as provided in this article; and (ii) adopt and enforce regulations authorized by this article notwithstanding any anticompetitive effect. (3) The powers granted to an official or a unit in accordance with this subsection do not: (i) grant to the official or unit powers in any substantive area not otherwise granted to the official or unit by other public general or public local law; (ii) restrict the official or unit from exercising any power granted to the official or unit by other public general or public local law or otherwise; (iii) authorize the official or unit or officers of the unit to engage in any activity that is beyond their power under a public general or public local law or otherwise; or (iv) preempt or supersede the regulatory authority of a State unit under a public general law.

Md. Code, Alcoholic Beverages and Cannabis § 1-202

(a) To the extent that a statement of a general rule of law conflicts or is inconsistent with an exception or a qualification applicable to a special area, particular person, or set of circumstances, the exception or qualification prevails. (b) A provision in Division II of this article prevails over a conflicting or inconsistent provision in Division I of this article or a provision in the Tax – General Article relating to alcoholic beverages. (c) A provision in Division III of this article prevails over a conflicting or inconsistent provision in Division I or Division II of this article or a provision in the Tax – General Article relating to cannabis.

Md. Code, Alcoholic Beverages and Cannabis § 1-303

(a) (1) The Commission consists of five members to be appointed by the Governor with the advice and consent of the Senate. (2) The presiding officer of either House of the General Assembly may recommend to the Governor a list of individuals for appointment to the Commission. (3) Of the Commission members: (i) one shall be knowledgeable and experienced in public health matters; (ii) one shall be knowledgeable and experienced in law enforcement matters; (iii) one shall be knowledgeable and experienced in the alcoholic beverages industry; and (iv) two shall be members of the public who are knowledgeable and experienced in fiscal matters and shall have substantial experience: 1. as an executive with fiduciary responsibilities in charge of a large organization or foundation; 2. in an academic field relating to finance or economics; or 3. as an accountant, an economist, or a financial analyst. (4) In addition to the members appointed under paragraph (3) of this subsection, the Secretary of Health and the Secretary of State Police, or their designees, may participate in the Commission as ex officio nonvoting members. (b) At the time of appointment, each member of the Commission shall be: (1) at least 25 years old; (2) a resident of the State who has resided in the State for at least 5 years; (3) a qualified voter of the State; and (4) an individual who has not been convicted of or granted probation before judgment for a serious crime or a crime that involves moral turpitude. (c) (1) The term of a member is 5 years. (2) The terms of members are staggered as required by the terms provided for members of the Commission on June 30, 2020. (3) At the end of a term, a member continues to serve until a successor is appointed and qualifies. (4) A member who is appointed after a term has begun serves only for the rest of the term and until a successor is appointed and qualifies. (5) A member may not serve for more than two full terms. (d) (1) Subject to the hearing requirements of this subsection, the Governor may remove a member for cause. (2) Before the Governor removes a member, the Governor shall give the member notice and an opportunity for a public hearing.

Md. Code, Alcoholic Beverages and Cannabis § 1-304

(a) A member of the Commission may not: (1) have a direct or indirect financial interest, ownership, or management, including holding any stocks, bonds, or other similar financial interests, in the alcohol, tobacco, or cannabis industries; (2) have an official relationship to a person who holds a license or permit under this article or Title 16, Title 16.5, Title 16.7, or Title 16.9 of the Business Regulation Article; (3) be an elected official; (4) receive or share in, directly or indirectly, the receipts or proceeds of any activities conducted in the alcohol, tobacco, or cannabis industries; (5) have a beneficial interest in any contract for the manufacture or sale of any device or product or the provision of any independent consulting services in connection with a holder of a license or permit issued under this article or Title 16, Title 16.5, Title 16.7, or Title 16.9 of the Business Regulation Article; or (6) accept a contribution of money or property worth at least $100 from an entity or individual associated with the alcohol, tobacco, or cannabis industries with respect to the regulation of alcohol, tobacco, or cannabis. (b) A member of the Commission shall file a financial disclosure statement with the State Ethics Commission in accordance with Title 5, Subtitle 6 of the General Provisions Article.

Md. Code, Alcoholic Beverages and Cannabis § 1-306

(a) A majority of the full authorized membership of the Commission is a quorum. (b) The Commission shall meet monthly at the times and places that the Commission determines. (c) (1) The secretary of the Commission promptly shall send the Governor a certified copy of the minutes of each meeting of the Commission. (2) The minutes shall include a copy of each regulation that is adopted. (d) Each member of the Commission is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the budget of the Commission. (e) (1) With the advice of the Commission, the Executive Director may employ staff in accordance with the State budget. (2) The staff of the Commission is in the State Personnel Management System.

Md. Code, Alcoholic Beverages and Cannabis § 1-307

(a) The Commission has the powers and duties set forth in this section. (b) The Commission shall: (1) educate the public, by resource sharing and serving as an information clearinghouse, on such topics as: (i) recent increases in alcohol content for popular beer and other beverages; (ii) the proper limits of drinking for adults; (iii) the adverse consequences of surpassing those limits; (iv) parental or adult responsibility for serving alcohol to underage individuals; and (v) comparable topics relating to smoking, vaping, tobacco, other tobacco products, electronic nicotine delivery systems, cannabis, and cannabis products; and (2) subject to federal approval, ensure that all alcoholic beverages sold in the State with an alcohol content exceeding 4.5% by volume bear a large and conspicuous label stating the percentage of alcohol content. (c) (1) The Commission shall conduct studies of: (i) the operation and administration of similar laws in other states or countries; and (ii) federal laws that may affect the operation of the alcohol, tobacco, or cannabis industries, the literature on those industries, and the reaction of residents of the State to existing and potential features of those industries. (2) The Commission shall submit to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly the studies required under this subsection.

Md. Code, Alcoholic Beverages and Cannabis § 1-308

The Commission shall develop best practices for: (1) the dedication of a minimum effective portion of the budget of a local licensing board to administrative enforcement activities, such as inspections, compliance checks, overservice, operations, and trade practice violations; (2) the carrying out of compliance checks for alcoholic beverages licenses, in which each license is checked at least once a year; (3) the development of guidelines for the minimum capacity of inspections carried out by inspectors of local licensing boards, based on the number and type of licensed outlets in the licensing jurisdiction; (4) ensuring that alcoholic beverages inspections be based on data such as the violation history of the license holder, and calls for emergency assistance, emergency medical service, or nonemergency service, so that resources are being allocated based on where the greatest need is; (5) the reporting of aggregate data between local police and local licensing boards; (6) the development of mandatory State–provided training for liquor inspectors; (7) reporting by the State to the affected local licensing board of a State–issued license or permit within 10 days after the State receives an application; (8) the development of a public health impact statement for all changes to the State alcoholic beverages laws; and (9) ensuring that: (i) all license holders, managers, and servers receive certification from an approved alcohol awareness program; and (ii) at least one employee who is certified in an alcohol awareness program be on the licensed premises at all times when alcoholic beverages are served.

Md. Code, Alcoholic Beverages and Cannabis § 1-309

(a) With the advice and consent of the Senate, the Governor shall appoint an Executive Director of the Commission. (b) The Executive Director serves at the pleasure of the Governor. (c) The Executive Director shall: (1) have the training and experience, including knowledge of the Maryland alcohol, tobacco, and cannabis regulatory system, that is needed to direct the work of the Commission; and (2) devote full time to the duties of office and may not engage in another profession or occupation. (d) The Executive Director may be a sworn police officer with the powers granted to an officer or employee of the Field Enforcement Division under § 1–313 of this subtitle. (e) The Executive Director is entitled to the salary provided in the State budget.

Md. Code, Alcoholic Beverages and Cannabis § 1-309.1

§1–309.1. (a) In this section, “Advisory Board” means the Advisory Board on Medical and Adult–Use Cannabis. (b) There is an Advisory Board on Medical and Adult–Use Cannabis. (c) The Advisory Board shall: (1) consider all matters submitted to it by the Office of Social Equity, the Governor, the Maryland Cannabis Administration, or the General Assembly; and (2) study and make recommendations on: (i) the impact on the legal medical and adult–use cannabis industry in the State if the federal government: 1. reschedules cannabis from Schedule I to Schedule III under the federal Controlled Substances Act; or 2. removes cannabis from the list of controlled substances under the federal Controlled Substances Act; (ii) measures to protect and promote the legal medical and adult–use cannabis industry in the State if cannabis is: 1. rescheduled from Schedule I to Schedule III; or 2. removed from the federal Controlled Substances Act; (iii) measures to enable standard and micro cannabis licensees and small businesses to compete in interstate commerce related to the cultivation, manufacture, distribution, and testing of cannabis and cannabis products; (iv) methods to ensure that there is an adequate supply of affordable cannabis and cannabis products for qualifying patients, including cannabis and cannabis products containing varying levels of potency; and (v) methods to assist social equity applicants, social equity licensees, and small, minority, and women–owned businesses to: 1. access funds for operating or capital expenses associated with a business participating in the medical and adult–use cannabis industry; 2. obtain financing from a lender, as defined in § 36–1401 of this article; and 3. partner with operational cannabis licensees in ways that the social equity applicants or licensees or small, minority, or women–owned businesses retain ownership and control of the licenses and businesses. (d) (1) The Advisory Board consists of the following members, appointed by the Governor with the advice and consent of the Senate: (i) three members that have substantial experience in one or more of the following: 1. cannabis law, science, or policy; 2. public health or health care; 3. agriculture; 4. finance; or 5. addiction treatment; (ii) one academic researcher with at least 5 years of experience in social or health equity; (iii) one representative of an independent testing laboratory registered under § 36–408 of this article; (iv) two representatives who hold a standard grower license under § 36–401 of this article; (v) two representatives who hold a standard processor license under § 36–401 of this article; (vi) two representatives who hold a standard dispensary license under § 36–401 of this article; (vii) two representatives who hold a micro grower license under § 36–401 of this article; (viii) two representatives who hold a micro processor license under § 36–401 of this article; (ix) two representatives who hold a micro dispensary license under § 36–401 of this article; (x) one representative who holds an incubator space license under § 36–401 of this article; (xi) one representative who holds an on–site consumption license under § 36–401 of this article; (xii) one representative of an organization that advocates on behalf of patients who engage in the medical use of cannabis; (xiii) one representative of an organization that advocates on behalf of consumers who engage in the adult use of cannabis; and (xiv) one health care provider who is registered to certify patients to obtain medical cannabis under § 36–301 of this article. (2) The Advisory Board shall elect a chair from among its members. (e) The President of the Senate and the Speaker of the House may recommend to the Governor a list of individuals for appointment to the Advisory Board. (f) (1) The term of a member of the Advisory Board is 4 years. (2) At the end of a term, a member continues to serve until a successor is appointed and qualifies. (3) An appointed member may not serve more than two full terms. (4) The positions for members appointed under subsection (d)(1)(vii) through (xi) of this section become effective when the first licenses are issued under those respective license types. (g) An appointed member of the Advisory Board must be: (1) at least 25 years old; (2) a resident of the State who has resided in the State for at least the immediately preceding 5 years before the appointment; and (3) a registered voter of the State. (h) The Advisory Board shall establish at least two subcommittees to focus on medical and adult–use cannabis. (i) To the extent practicable and consistent with federal and State law, the membership of the Advisory Board shall reflect the racial, ethnic, and gender diversity of the State. (j) The Maryland Cannabis Administration shall provide staff for the Advisory Board.

Md. Code, Alcoholic Beverages and Cannabis § 1-310

The Executive Director and all employees in the Office of the Executive Director may not accept a contribution of money or property worth at least $100 from an entity or individual associated with the alcohol, tobacco, or cannabis industries with respect to regulation of alcohol, tobacco, or cannabis.

Md. Code, Alcoholic Beverages and Cannabis § 1-311

(a) The Executive Director shall adopt regulations to discharge the duties under: (1) this article; and (2) Titles 16, 16.5, 16.7, and 16.9 of the Business Regulation Article. (b) The Executive Director may adopt regulations regarding: (1) labeling and advertising similar to the regulations adopted by the Alcohol and Tobacco Tax and Trade Bureau of the United States Department of the Treasury; (2) nature, form, and capacity of containers; (3) credit sales; (4) records to be kept by license holders and others engaged in the business; (5) the amount of deposit on returnable beer containers that manufacturers and wholesalers of beer charge and collect; and (6) any other subject the Executive Director considers necessary for the proper administration of the duties of the Executive Director under this article, Title 16, Title 16.5, Title 16.7, or Title 16.9 of the Business Regulation Article, or the provisions of the Tax – General Article relating to the alcoholic beverage tax or the tobacco tax. (c) (1) Any violation of a regulation adopted by the Executive Director under this article, Title 16, Title 16.5, Title 16.7, or Title 16.9 of the Business Regulation Article, or the provisions of the Tax – General Article relating to the alcoholic beverage tax or the tobacco tax is grounds to revoke or suspend a license. (2) The violator is subject to the penalties provided under § 6–402(a) of this article.

Md. Code, Alcoholic Beverages and Cannabis § 1-312

By regulation, the Executive Director may: (1) establish or prohibit the maximum discounts that may be allowed by a manufacturer, wholesaler, or nonresident winery permit holder in the sale and distribution of wine and liquor; or (2) prohibit the giving of discounts by a manufacturer, wholesaler, or nonresident winery permit holder in the sale and distribution of wine and liquor.

Md. Code, Alcoholic Beverages and Cannabis § 1-313

(a) There is a Field Enforcement Division in the Office of the Executive Director. (b) (1) The Field Enforcement Division may employ officers and employees as provided in the State budget. (2) The officers and employees of the Field Enforcement Division: (i) shall be sworn police officers; (ii) shall have the powers, duties, and responsibilities of peace officers to enforce the provisions of this article relating to: 1. the unlawful importation of alcoholic beverages, tobacco, and cannabis into the State; 2. the unlawful manufacture of alcoholic beverages, tobacco, and cannabis in the State; 3. the transportation and distribution throughout the State of alcoholic beverages, tobacco, and cannabis that are manufactured illegally and on which any alcoholic beverages taxes, tobacco taxes, or cannabis taxes imposed by the State are due and unpaid; and 4. the manufacture, sale, barter, transportation, distribution, or other form of owning, handling, or dispersing alcoholic beverages, tobacco, or cannabis by any person not licensed or authorized under this article, provisions of the Tax – General Article relating to alcoholic beverages, tobacco, or cannabis, or provisions of the Business Regulation Article relating to alcoholic beverages, tobacco, or cannabis; (iii) may issue a citation or other charging document to a person who has committed a violation of § 10–108 of the Criminal Law Article; and (iv) may make cooperative arrangements for and work and cooperate with the Office of the Comptroller, local State’s Attorneys, sheriffs, bailiffs, police, and other prosecuting and peace officers to enforce this article. (c) The Field Enforcement Division: (1) shall consult with and advise the local State’s Attorneys and other law enforcement officials and police officers regarding enforcement problems in their respective jurisdictions; and (2) may recommend changes to improve the administration of this article, provisions of the Tax – General Article relating to alcoholic beverages, tobacco, and cannabis, and provisions of the Business Regulation Article relating to tobacco.

Md. Code, Alcoholic Beverages and Cannabis § 1-314

The Executive Director may delegate authority under this article, provisions of the Tax – General Article relating to alcoholic beverages and tobacco, and provisions of the Business Regulation Article relating to tobacco to the Division director or a designee to issue or refuse to issue licenses and permits.

Md. Code, Alcoholic Beverages and Cannabis § 1-315

(a) Except as provided in subsection (b) of this section, the Executive Director may delegate authority to conduct hearings on violations of this article or of any regulations adopted under this article, the provisions of the Tax – General Article relating to alcoholic beverages or tobacco, or the provisions of the Business Regulation Article relating to tobacco to the Division director or any other employee of the Executive Director’s office. (b) The Division director or any other employee of the Executive Director’s office delegated authority to conduct hearings under subsection (a) of this section: (1) may not impose a penalty provided for under this article or a provision of the Tax – General Article relating to alcoholic beverages; and (2) shall report the findings and recommendations to the Executive Director to take the action that the Executive Director considers appropriate.

Md. Code, Alcoholic Beverages and Cannabis § 1-316

To provide a basis for annual comparison of the scope of the alcoholic beverages industry in the State and the consumption habits of residents of the State, the Executive Director shall submit to the Governor and, in accordance with § 2–1257 of the State Government Article, to the General Assembly, an annual report on or before December 1 of each year that includes statistical information on the alcoholic beverages business in the State that the Executive Director believes to be of interest to the public and the industry.

Md. Code, Alcoholic Beverages and Cannabis § 1-317

(a) The Executive Director shall: (1) maintain a record of: (i) each license issued or approved under this article and Titles 16, 16.5, 16.7, and 16.9 of the Business Regulation Article; and (ii) any revocation, suspension, or cancellation of a license and any restriction imposed on a license with a brief explanation of the reason for the action; and (2) allow any person to inspect the records at the Office of the Executive Director during regular business hours. (b) The records of licenses required under subsection (a) of this section and any indices or dockets created to maintain the records: (1) shall be retained for the later to occur of: (i) 3 years after the date of the last record entry; or (ii) the date on which all audit requirements have been complied with; and (2) may be destroyed after: (i) the retention period in item (1) of this subsection has expired; and (ii) Title 10, Subtitle 6, Part III of the State Government Article has been complied with.

Md. Code, Alcoholic Beverages and Cannabis § 1-318

The Executive Director may: (1) under § 6–202 of this article, inspect and search a building, vehicle, or premises where alcoholic beverages are authorized to be kept, transported, manufactured, or sold; (2) under § 6–203 of this article, use certain equipment and other means to measure the quantity and quality of alcoholic beverages; and (3) under § 6–204 of this article, issue summonses for witnesses for hearings and inquiries.

Md. Code, Alcoholic Beverages and Cannabis § 1-319

The Executive Director shall enforce the provisions of this article and provisions of the Tax – General Article relating to alcoholic beverages applicable to: (1) the purchase or importation of alcoholic beverages by a department of liquor control, a liquor control board, or the Alcohol Beverage Services for Montgomery County; and (2) the sale of alcoholic beverages to a wholesaler or retail dealer by a department of liquor control, a liquor control board, or the Alcohol Beverage Services for Montgomery County.

Md. Code, Alcoholic Beverages and Cannabis § 1-320

The Executive Director may: (1) investigate the manufacture, sale, purchase, use, and transportation of industrial alcohol unfit for beverage use to the extent reasonably necessary to prevent conversion into an alcoholic beverage fit for consumption; and (2) request information and assistance from other administrative units of the State, county, and municipal governments, county and municipal police departments, and all prosecuting officers as considered necessary by the Executive Director to carry out this article and provisions of the Tax – General Article relating to alcoholic beverages.

Md. Code, Alcoholic Beverages and Cannabis § 1-321

(a) In order to increase efficiency and accuracy in the performance of their respective duties and responsibilities under this article and other laws relating to alcohol and tobacco, the Commission and the Comptroller shall: (1) cooperate and share information and personnel in investigations of licensed premises and other locations and materials relating to the enforcement of the alcohol and tobacco laws of the State; (2) cooperate and share information and personnel in other matters relating to the manufacture, processing, importation, taxation, sale, and service of alcohol and tobacco in the State; and (3) enter into a memorandum of understanding for cooperative activities in inspections and other enforcement activities relating to the alcohol and tobacco laws of the State. (b) (1) The Commission may enter into memoranda of understanding and other cooperative arrangements with federal, State, and local governmental units in carrying out this article and other alcohol and tobacco laws of the State in the interest of reducing duplication of efforts and reducing the overall costs of administration of inspection and enforcement programs to the State. (2) The Executive Director may also enter into memoranda of understanding and other cooperative arrangements with federal, State, and local governmental units to address operational matters and efficiencies in carrying out this article and other alcohol and tobacco laws of the State.

Md. Code, Alcoholic Beverages and Cannabis § 1-322

(a) (1) In this section the following words have the meanings indicated. (2) “Administration” has the meaning stated in § 36–101 of this article. (3) “Cannabis licensee” has the meaning stated in § 36–101 of this article. (4) “Grant Program” means the Social Equity Partnership Grant Program. (5) “Office” means the Office of Social Equity. (6) (i) “Qualifying partnership” means a meaningful partnership between an operational cannabis licensee and a social equity licensee that: 1. supports or advises the social equity licensee; and 2. is authorized by the Administration. (ii) “Qualifying partnership” includes a partnership through which the operational cannabis licensee provides any of the following to a social equity licensee: 1. training; 2. mentorship; or 3. shared commercial space or equipment. (7) “Social equity licensee” has the meaning stated in § 36–101 of this article. (b) (1) There is a Social Equity Partnership Grant Program in the Office. (2) The purpose of the Grant Program is to promote qualifying partnerships between operational cannabis licensees and social equity licensees. (c) (1) The Office shall implement and administer the Grant Program, including by clearly defining the parameters of a qualifying partnership. (2) Subject to paragraph (3) of this subsection, the Office has discretion to approve, deny, or revoke qualifying partnerships. (3) (i) The Office may approve qualifying partnerships where a cost or other fee is imposed by an operational cannabis licensee on a social equity licensee if the cost or other fee is substantially reduced from the market value. (ii) Costs or other fees under subparagraph (i) of this paragraph may include charges for the rent of facilities or equipment. (d) (1) The Office shall award grants to operational cannabis licensees that have qualifying partnerships with a social equity licensee. (2) Grant amounts shall be based on the nature of the qualifying partnership between the social equity licensee and the operational cannabis licensee. (3) If an operational cannabis licensee has a license that was converted by the Administration under § 36–401(b)(1)(ii) of this article, the total amount of grants issued by the Office under this section to the licensee may not exceed: (i) the cost of the license conversion fee that was paid by the licensee; or (ii) $250,000 per year per qualifying partnership. (e) The Office may require a grant recipient that fails to fulfill the requirements of the grant to return all or part of the grant to the Grant Program. (f) For fiscal year 2025 and each fiscal year thereafter, the Governor shall include in the annual budget bill an appropriation of $5,000,000 for the Grant Program, utilizing the Cannabis Regulation and Enforcement Fund established under § 36–206 of this article. (g) The Office shall adopt regulations to: (1) implement the provisions of this section; (2) administer the Grant Program; (3) establish eligibility and grant application requirements; (4) establish a process for reviewing grant applications and awarding grants to operational cannabis licensees; and (5) specify criteria and procedures to monitor eligibility for the grants authorized under this section.

Md. Code, Alcoholic Beverages and Cannabis § 1-401

(a) Unless otherwise provided for in this article or the Tax – General Article, a person may not: (1) sell alcoholic beverages; (2) allow alcoholic beverages to be sold; (3) accept or deliver alcoholic beverages; or (4) for the purpose of sale, transport, buy, possess, or keep alcoholic beverages or allow alcoholic beverages to be transported, bought, possessed, or kept: (i) in a vehicle, a water vessel, or an aircraft; (ii) on any premises; or (iii) under the person’s charge or control. (b) (1) Except as provided in paragraph (2) of this subsection, a person may not buy, possess, store, import, transport, or keep alcoholic beverages or allow alcoholic beverages to be bought, possessed, stored, imported, transported, or kept: (i) in a vehicle, a water vessel, or an aircraft; (ii) on any premises; or (iii) under the person’s charge or control. (2) A person may perform an activity listed in paragraph (1) of this subsection if the person is: (i) a consumer; (ii) subject to the requirements under this article, a license holder; or (iii) an individual under the age of 21 years who possesses or is transporting alcoholic beverages for a lawful purpose: 1. with the knowledge and consent of the individual’s parent or guardian; or 2. incident to the lawful employment of the individual under this article. (c) Except as provided in § 1–411 of this subtitle, an individual under the age of 21 years may not: (1) buy, consume, possess, store, import, transport, or keep alcoholic beverages for the individual’s own use; or (2) buy, possess, store, import, transport, or keep alcoholic beverages for any purpose in a jurisdiction where prohibited under State law.

Md. Code, Alcoholic Beverages and Cannabis § 1-402

(a) A license or permit is not required for: (1) a county official who sells certain seized alcoholic beverages, as set out in Title 6, Subtitle 1 of this article; (2) a sheriff, a receiver, an auctioneer, a trustee, an attorney, an executor, or an administrator who sells alcoholic beverages under a court order; or (3) a common carrier, warehouseman, or other lienholder who sells alcoholic beverages under a lien. (b) Sales authorized by subsection (a) of this section may be made only to a license holder. (c) If the purchaser in a sale described in subsection (a) of this section is a retail dealer, the seller shall pay the taxes imposed by § 5–102 of the Tax – General Article before delivery.

Md. Code, Alcoholic Beverages and Cannabis § 1-403

(a) (1) Unless otherwise provided for in this article, a person may not manufacture, blend, rectify, bottle, or allow to be manufactured, blended, rectified, or bottled any alcoholic beverages except on premises licensed under this article. (2) A person may not buy, bargain, sell, borrow, loan, manufacture, possess, transport, or allow to be bought, bargained, sold, loaned, manufactured, possessed, or transported any personal property designed, used, or intended for use directly or immediately in connection with the unlawful manufacture of alcoholic beverages. (b) In addition to any other fine or penalty under this article, a person who violates this section is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 5 years or a fine not exceeding $10,000 or both.

Md. Code, Alcoholic Beverages and Cannabis § 1-404

Before a license or alcoholic beverages permit may be issued to an employer to engage in an activity in which the employer may employ a covered employee, as defined in § 9–101 of the Labor and Employment Article, the employer shall file with the Executive Director or local licensing board: (1) a certificate of compliance with the Maryland Workers’ Compensation Act; or (2) the number of a workers’ compensation insurance policy or binder.

Md. Code, Alcoholic Beverages and Cannabis § 1-405

(a) A license may not be issued for a premises unless the premises conforms to all requirements set out in this article or the Tax – General Article. (b) A license or an alcoholic beverages permit may not be issued for a premises unless the premises conforms with all zoning laws, regulations, or ordinances passed in accordance with Division I of the Land Use Article.

Md. Code, Alcoholic Beverages and Cannabis § 1-406

(a) Warehouse receipts covering alcoholic beverages stored in public warehouses in the State, including government controlled warehouses, may be purchased or sold without a license or permit. (b) Alcoholic beverages covered under subsection (a) of this section may be withdrawn or delivered in the State only to a licensed manufacturer or licensed wholesaler. (c) The Executive Director may adopt regulations covering warehouse receipt transactions.

Md. Code, Alcoholic Beverages and Cannabis § 1-407

(a) (1) This article and the Tax – General Article do not prohibit a manufacturer or wholesaler from selling and delivering to a federally authorized purchaser: (i) subject to paragraph (2) of this subsection, wine and liquor without payment of taxes, if the wine and liquor are used only on the federal reservation in the State where the purchaser is assigned; and (ii) beer. (2) The Comptroller may require that each order of wine or liquor be approved before purchase or delivery. (b) A tax on beer that is paid when the beer is purchased shall be refunded if: (1) a proper application is filed with the Comptroller within 90 days after the purchase; and (2) the Comptroller approves.

Md. Code, Alcoholic Beverages and Cannabis § 1-408

(a) A person who manufactures, rectifies, blends, imports, distributes, transports, stores, warehouses, sells, or offers for sale alcoholic beverages or who holds a license to do those activities shall: (1) keep complete and accurate records of all alcoholic beverages purchased, sold, manufactured, rectified, blended, improved, brewed, fermented, distilled, produced, stored, warehoused, withdrawn from storage, imported, or transferred; (2) on written request of the Comptroller, report on the form that the Comptroller requires information relating to the alcoholic beverages that are the subject of the records required to be kept; and (3) on request of the Comptroller, make the report under oath. (b) (1) Except as provided in paragraph (2) of this subsection, each license holder shall keep records at the location designated in the license. (2) If the license holder is allowed to have more than one location, the license holder may keep the records at the principal location. (3) The records shall: (i) meet form and content requirements of the Comptroller; (ii) be preserved for at least 2 years in a manner that ensures permanency; and (iii) be made available for audit or inspection during regular business hours by the Comptroller or an authorized employee of the Comptroller. (c) (1) The Comptroller may without a hearing immediately suspend for a maximum of 30 days the license of a license holder who fails to comply with this section. (2) A license suspended under this section is subject to an additional period of suspension or revocation after a hearing.

Md. Code, Alcoholic Beverages and Cannabis § 1-409

(a) A local licensing board shall: (1) maintain a record of: (i) each license that the local licensing board issues; and (ii) any revocation, suspension, or cancellation of a license and any restriction imposed on a license with a brief explanation of the reason for the action; and (2) submit the record to the Executive Director; and (3) allow any individual to inspect the records at the office of the local licensing board during regular business hours. (b) The records of licenses required under subsection (a) of this section and any indices or dockets created to maintain the records: (1) shall be retained for the later to occur of: (i) 3 years after the date of the last record entry; or (ii) the date on which all audit requirements have been complied with; and (2) may be destroyed after: (i) the retention period in item (1) of this subsection has expired; and (ii) Title 10, Subtitle 6, Part III of the State Government Article has been complied with.

Md. Code, Alcoholic Beverages and Cannabis § 1-410

(a) (1) On written request of the Executive Director, each person, including a common carrier, that transports alcoholic beverages in the State in interstate or intrastate commerce shall report all consignments or deliveries of alcoholic beverages for the period that the Executive Director specifies. (2) The reports shall be under oath and on the form that the Executive Director requires. (b) If required by the Executive Director, the reports shall state: (1) the name and address of the person to whom the delivery has been made; (2) the name and address of the original consignee, if alcoholic beverages have been delivered to any person other than the originally named consignee; (3) the point of origin; (4) the point of delivery; (5) the date of delivery; (6) (i) the number and initials of each car, if the alcoholic beverages are shipped by rail; (ii) the name of the water vessel, if the alcoholic beverages are shipped by water; (iii) the license number of each truck, if the alcoholic beverages are shipped by truck; or (iv) the manner in which the delivery was made, if the delivery is by other means; (7) each kind of alcoholic beverages contained in the shipment and the number of gallons of each kind; and (8) any other information relative to shipments that the Executive Director requires. (c) This section does not authorize: (1) the consignment of alcoholic beverages from outside the State to a person within the State other than: (i) the holder of a permit, manufacturer’s license, or wholesaler’s license; or (ii) a consumer under Title 2, Subtitle 1, Part V of this article; or (2) the consignment of alcoholic beverages from within the State to a person outside the State not authorized to receive the consignment under the law governing the point of destination.

Md. Code, Alcoholic Beverages and Cannabis § 1-411

(a) (1) In this section the following words have the meanings indicated. (2) “Authorized instructor” means an instructor at a qualified institution of higher education who: (i) teaches a course or program in enology, fermenting, brewing, or hospitality and tourism; and (ii) is at least 21 years old. (3) “Qualified institution of higher education” means an institution of postsecondary education that: (i) generally limits enrollment to graduates of secondary schools; (ii) awards degrees at the associate, baccalaureate, or graduate level; and (iii) offers courses or programs in enology, fermenting, brewing, or hospitality and tourism. (4) “Qualified student” means a student who is: (i) at least 18 years old and under the age of 21 years; and (ii) enrolled in a course or program in enology, fermenting, brewing, or hospitality and tourism offered by a qualified institution of higher education. (5) (i) “Taste” means to draw an alcoholic beverage into the mouth. (ii) “Taste” does not include swallowing or otherwise consuming an alcoholic beverage. (b) A qualified student may taste an alcoholic beverage if: (1) the qualified student: (i) tastes the alcoholic beverage: 1. for educational purposes as part of a course or program in enology, fermenting, brewing, or hospitality and tourism that the qualified student is enrolled in at a qualified institution of higher education; and 2. only during the dates and times of the enology, fermenting, brewing, or hospitality and tourism course or program; and (ii) spits the alcoholic beverage out after tasting the alcoholic beverage; (2) an authorized instructor offers the alcoholic beverage only during the dates and times of the enology, fermenting, brewing, or hospitality and tourism course or program; and (3) the alcoholic beverage remains under the control of an authorized instructor. (c) A qualified institution of higher education is not required to obtain a permit or license issued under this article to allow a qualified student to taste an alcoholic beverage in accordance with this section if the qualified institution does not impose an extra fee or charge for the alcoholic beverage tasted by a qualified student.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://mgaleg.maryland.gov/mgawebsite/Laws/StatutesFetched: 10/16/2026
Md. Code, Alcoholic Beverages and Cannabis, Title 1 | Code of Maryland (Aug. 2026 snapshot) — Maryland | Corpus