HB1283 advances some parts of the Class 5 law, while restricting certain activities for new licensees. All components of the law go into effect July 1, 2017. Download a one-pager version of this page.
#1: Contract Brewing.
The new law allows a Class 5 to contract brew, a new ability not previously authorized (though commonly practiced). Class 5 may contract brew at a Class 2/5/7/8 or holder of non-resident dealer permit.
Offer samples of up to 18 oz per person, per visit to an individual taking guided tour or participating in organized activity. (changed from 6 x 3-oz samples)
#3: Sales for Off-Premise Consumption.
A Class 5 may sell 288 oz of packaged beer to go per person, per visit, to a person who participated in a guided tour, promotional event or other organized activity. Sales of beer to go or in growlers must be brewed on-site or be brands owned by Class 5 or affiliate brewery.
#4: License for On-Premise Consumption.
Class 5s must obtain a Class D License or special on-site consumption permit from a local liquor Board in order to sell for on-premise consumption. The new law changes it from mandated issuance to at a local liquor Board’s discretion.
#5: Sales for On-Premise Consumption.
The law increases the amount of its own beer a Class 5 brewery may sell from 500 to 2,000 barrels annually. Brewers reaching 80% of the limit may request from the Comptroller the ability to purchase another 1,000 barrels from their wholesaler.
On-premise beer sales consist of: 1) beer produced on-site; 2) beer brewed on-site under contract for an entity that does not hold Class 5; 3) beer brewed off-site if it’s beer the Class 5 or one of its affiliates owns AND it accounts for no more than 25% of all sales for on-premise consumption (or sales or 1.2% of overall production at brewery).
For a brewery that produces (on-site and through affiliates) more than 1 million barrels annually, beer that’s contract-brewed off-site or produced by an affiliate brand returned for on-premise sale must be purchased through a wholesaler.
#6: Hours for On-Premise Consumption.
1) Existing Class 5s and those who applied for TTB approval by April 1 keep current hours afforded by the local Class D; 2) New applicants or Class D license transfer to new owners: 10am to 10pm.
Class 5s comply with all applicable trade practice regulations (as is implied under current law), and must have one alcohol server-certified person on-staff.
For more information contact Brewers Association of Maryland if you have questions about brewery laws or regulations.