1. A. Criteria. In deciding whether to grant a Class 4 Limited Winery holder’s request for an exemption under Regulation .03 of this chapter, the Secretary shall consider how the following events or factors may have affected the person within the year before filing the application:

   1. (1) Weather disasters, including but not limited to excessive moisture, frost, winter kill, or hurricanes;
   2. (2) Disease;
   3. (3) Pest pressure;
   4. (4) Chemical damage;
   5. (5) Steps taken by the applicant to minimize the need for the requested exemption; and

   6. (6) Any other event or factor that the Secretary deems relevant for deciding whether to grant an applicant’s request for a 1-year exemption from the ingredient percentage requirement set forth in Alcoholic Beverages and Cannabis Article, §2-206(c)(2)(ii), Annotated Code of Maryland, including, but not limited to, whether the Secretary:

      1. (a) Determines that the event or factor is deemed to be one that was outside the control of the applicant; or
      2. (b) Has previously granted the Class 4 Limited Winery License holder an exemption from the ingredient percentage requirement set forth in Alcoholic Beverages and Cannabis Article, §2-206(c)(2)(ii), Annotated Code of Maryland, and, if so, the number of times that the person has been granted this exemption.

2. B. Basis for Exemption. The Secretary may grant the Class 4 Limited Winery License holder’s request for an exemption if the person can demonstrate that:

   1. (1) The failure to meet the ingredient percentage requirement set forth in Alcoholic Beverages and Cannabis Article, §2-206(c)(2)(ii), Annotated Code of Maryland, resulted from at least one of the events or factors identified in §A of this regulation; and
   2. (2) Despite having taken reasonable steps to secure at least 51 percent of the ingredients used in the annual production of the licensed holder’s wine are Maryland-grown agricultural products, the Class 4 Limited Winery License holder is unable to meet the statutory percentage requirement.
3. C. The Secretary may deny a Class 4 Limited Winery License holder’s request for an exemption if the person has been granted an exemption for each of the previous 4 years.

Authority: Agriculture Article, §2-103; and Alcoholic Beverages and Cannabis Article, §2-206; Annotated Code of Maryland

Effective date: December 11, 2025 (52:24 Md. R. 1199)