1. (a) There is a Class 9 limited distillery license.

2. (b) The limited distillery license may be issued only to a holder of a:

   1. (1) Class D beer, wine, and liquor license where sales for both on- and off-premises consumption are permitted for use on the premises for which the Class D license was issued; or
   2. (2) Class B beer, wine, and liquor license where sales for both on- and off-premises consumption are permitted for use on the premises for which the Class B license was issued.

3. (c) A holder of the limited distillery license:

   1. (1) may establish and operate a plant in the State for distilling, rectifying, and bottling brandy, rum, whiskey, alcohol, and neutral spirits if the holder:

      1. (i) maintains only one brand at any one time for each product of brandy, rum, whiskey, alcohol, and neutral spirits that is distilled, rectified, and sold; and
      2. (ii) does not manufacture or rectify product of any other brand for another entity;
   2. (2) may acquire bulk alcoholic beverages from the holder of a distillery or rectifying license in the State or from the holder of a nonresident dealer's permit;
   3. (3) after acquiring an individual storage permit, may store on the licensed premises those products manufactured under the license;
   4. (4) except as authorized under subsection (d)(1) of this section, may sell and deliver those products manufactured under the license only to a licensed wholesaler in the State or person authorized to acquire distilled spirits in another state and not to a county dispensary;
   5. (5) may sell the products manufactured under the license at retail in a manner consistent with the underlying Class D or Class B license;
   6. (6) may conduct guided tours of that portion of the licensed premises used for the limited distillery operation; and

   7. (7) may serve not more than three samples of products manufactured at the licensed premises, with each sample consisting of not more than one-half ounce from a single product, to persons who:

      1. (i) have attained the legal drinking age;
      2. (ii) participated in a guided tour; and
      3. (iii) are present on that portion of the premises used for the limited distillery operation.

4. (d) A holder of the limited distillery license may not:

   1. (1) apply for or possess a wholesaler's license, except for a Class 8 liquor wholesaler's license;
   2. (2) sell bottles of the products manufactured at the Class 9 limited distillery on that part of the premises used for the distillery operation;
   3. (3) except as provided in subsection (e) of this section, distill, rectify, bottle, or sell more than 100,000 gallons of brandy, rum, whiskey, alcohol, and neutral spirits each calendar year;
   4. (4) sell at retail on the premises of the Class D or Class B license, for on-premises or off-premises consumption, more than 31,000 gallons of the products manufactured under the license each calendar year; and
   5. (5) own, operate, or be affiliated in any manner with another manufacturer.
5. (e) To distill more than the gallonage specified in subsection (d)(3) of this section, a holder of the limited distillery license shall divest itself of any Class D or Class B retail license and obtain a Class 1 distillery license.
6. (f) A holder of the limited distillery license shall abide by all trade practice restrictions applicable to distilleries.

7. (g) The annual license fee:

   1. (1) shall be determined by the Executive Director; and
   2. (2) may not exceed $500.

Added by Acts 2016, c. 41, § 2, eff. July 1, 2016. Amended by Acts 2016, c. 308, § 1, eff. July 1, 2016; Acts 2018, c. 12, § 1, eff. April 5, 2018; Acts 2018, c. 326, § 1, eff. July 1, 2018; Acts 2021, c. 359, § 2, eff. May 18, 2021; Acts 2021, c. 360, § 2, eff. May 18, 2021; Acts 2021, c. 359, § 3, eff. May 18, 2021; Acts 2021, c. 360, § 3, eff. May 18, 2021; Acts 2023, c. 428, § 1, eff. July 1, 2023; Acts 2023, c. 429, § 1, eff. July 1, 2023; Acts 2024, c. 1039, § 1, eff. July 1, 2024; Acts 2024, c. 1040, § 1, eff. July 1, 2024.