(a)   There is a Class 7 micro-brewery (on- and off-sale) license.
  (b)   The license shall be issued:
    (1)   By the State Comptroller;
    (2)   Only in the following jurisdictions:
      (i)   Allegany County;
      (ii)   Baltimore City;
      (iii)   Baltimore County;
      (iv)   The City of Annapolis;
      (v)   Anne Arundel County;
      (vi)   Calvert County;
      (vii)   Carroll County;
      (viii)   Charles County;
      (ix)   Dorchester County;
      (x)   Frederick County;
      (xi)   Garrett County;
      (xii)   Harford County;
      (xiii)   Howard County;
      (xiv)   Montgomery County;
      (xv)   Prince George's County; and
      (xvi)   Talbot County;
    (3)   (i)   Only to a holder of a Class B beer, wine and liquor (on-sale) license
that is issued for use on the premises of a restaurant located in a
jurisdiction listed in paragraph (2) of this subsection; or
      (ii)   To a holder of a Class D alcoholic beverages license that is issued for
use on the premises of the existing Class D license if the premises are
located in the 22nd Alcoholic Beverages District of Prince George's
County; and
    (4)   In addition to item (3) of this subsection, in Montgomery County only
to a holder of a Class H beer and light wine license that is issued for
use on the premises of a restaurant located in the County.
  (c)   (1)   A holder of a Class 7 micro-brewery license:
      (i)   May brew and bottle malt beverages at the license location;
      (ii)   May obtain a Class 2 rectifying license for a premises located within 1
mile of the existing Class 7 micro-brewery location to bottle malt
beverages brewed at the micro-brewery location only;
      (iii)   May contract with the holder of a Class 5 brewery license, a Class 7
micro-brewery license, or a Class 2 rectifying license held under §
2-203 of this subtitle or the holder of a nonresident dealer's permit
to brew and bottle malt beverages on their behalf;
      (iv)   May store the finished product under an individual storage permit or at
a licensed public storage facility for subsequent sale and delivery to
a licensed wholesaler, an authorized person outside this State, and for
shipment back to the micro-brewery location for sale on the retail
premises;
      (v)   May not collectively brew, bottle, or contract for more than 22,500
barrels of malt beverages each calendar year; and
      (vi)   May enter into a temporary delivery agreement with a distributor only
for delivery of beer to a beer festival or wine and beer festival and
the return of any unused beer if:
        1.   The beer festival or wine and beer festival is in a sales territory for
which the holder does not have a franchise with a distributor under the
Beer Franchise Fair Dealing Act; and
        2.   The temporary delivery agreement is in writing.
    (2)   A Class 7 licensee who wishes to produce more than the barrelage
authorized under paragraph (1)(v) of this subsection shall divest of
any Class B, D, or any other retail license and obtain a Class 5
manufacturer's license.
    (3)   For the purposes of determining the barrelage limitation under
paragraph (1)(v) of this subsection, any salable beer produced under
contractual arrangements accrues only to the Class 7 micro-brewery
licensee who is the brand owner.
    (4)   In Allegany County only, the holder of a Class 7 license:
      (i)   May brew in one location and may contract for the bottling of the malt
beverage in another location; and
      (ii)   Need not meet the hotel/motel requirements for a Class B beer, wine and
liquor licensee but shall meet the requirements for those Class B
restaurants.
  (d)   (1)   The on-sale privilege authorizes the holder, each calendar year, to
sell at retail up to 4,000 barrels of beer brewed under this license to
customers for consumption on the licensed premises.
    (2)   The off-sale privilege authorizes the holder to sell and deliver beer
brewed under this license to:
      (i)   Any wholesaler licensed under this article to sell beer in this State;
or
      (ii)   Any person who is located in a state other than Maryland who is
authorized under the laws of that state to receive brewed beverages.
    (3)   (i)   This paragraph applies only in:
        1.   The City of Annapolis;
        2.   Anne Arundel County;
        3.   Baltimore City;
        4.   Baltimore County;
        5.   Calvert County;
        6.   Carroll County;
        7.   Charles County;
        8.   Dorchester County;
        9.   Frederick County;
        10.   Garrett County;
        11.   Harford County;
        12.   Howard County;
        13.   Montgomery County;
        14.   Prince George's County; and
        15.   Talbot County.
      (ii)   The holder may sell at retail beer brewed under this license to
customers for consumption off the licensed premises in refillable
containers that are sealed by the micro-brewery licensee at the time
of each refill.
  (e)   A holder of a Class 7 micro-brewery license:
    (1)   May not own, operate or be affiliated with any other manufacturer of
beer except for a Class 2 rectifying license authorized by subsection
(c)(1)(ii) of this section; and
    (2)   Notwithstanding § 2-201(b) of this subtitle, may not be granted a
wholesale alcoholic beverages license.
  (f)   (1)   The hours and days for consumer sales under this license are as
established for a Class B license in the respective jurisdictions
listed in subsection (b)(2) of this section.
    (2)   For Class D licensees in the 22nd Alcoholic Beverages District in
Prince George's County only, the hours and days for consumer sales
under this license are as established for a Class D license in Prince
George's County.
  (g)   In Montgomery County, a holder of a Class 7 micro-brewery license
shall enter into a written agreement with the Department of Liquor
Control for Montgomery County for the sale and resale of malt beverages
brewed under this license in accordance with this article.
  (h)   For Talbot County, the Office of the Comptroller of Maryland shall
specify which local license is the equivalent of the Class B beer, wine
and liquor license specified in subsection (b)(3) of this section.
  (i)   In Carroll County, the distance restriction requirement for
micro-breweries is found in § 9-207 of this
article.
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