§ 33-504

Maryland § 33-504

• Jurisdiction: Maryland
• Article gab: Alcoholic Beverages and Cannabis
• Title: 33

Text

(a) (1) Notwithstanding § 2–314 of this article, a wholesaler may sell beer on credit to a retail dealer if:

(i) the retail dealer has been doing business for at least 2 years; and

(ii) the term of credit extended to the retail dealer does not exceed 10 days, with no grace period.

(2) A wholesaler that extends credit under this subsection may establish different prices for cash and credit transactions.

(b) (1) (i) A wholesaler may not intentionally deliver beer to a retail dealer to whom any wholesaler has extended credit under this section if the retail dealer:

1. fails to pay the balance owed or makes a payment on the debt by bad check; and

2. is currently listed on the county beer credit control list in accordance with regulations that the Executive Director issues.

(ii) A wholesaler who violates this paragraph is subject to a fine not exceeding $1,000 for each delivery.

(2) The Board may not transfer or renew the license of a retail dealer if the dealer was extended credit under this section and owes a balance on the debt at the time of the transfer or renewal.

(3) A retail dealer that fails to satisfy a debt on credit extended under this section on three separate occasions within a single calendar year may not obtain beer on credit for 2 years after the third occurrence.

(4) (i) A retail dealer may request a hearing with the Executive Director within 10 days after being listed on the county beer credit control list for failure to comply with this section.

(ii) The Executive Director shall remove immediately from the county beer credit control list a retail dealer who requests a hearing, pending the disposition of the hearing.

(c) A suit or civil action to enforce or collect a claim for credit extended in violation of this section may not be maintained in the State.

(d) The Executive Director shall enforce subsections (a) and (b) of this section and shall adopt regulations to carry out those subsections.