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ROBERT L. EHRLICH, JR., Governor Ch. 111
(2004 Replacement Volume and 2005 Supplement)
Preamble
WHEREAS, The United States Supreme Court, in Granholm v. Heald, 125 S.Ct.
1885 (2005) stated that differential treatment between in state in-State and
out of state out-of-State wineries constitutes explicit discrimination against
interstate commerce; and
WHEREAS, In the Granholm opinion the Supreme Court stated that many
small wineries do not produce enough wine or have sufficient consumer demand for
their wine to make it economical for wholesalers to carry their products; and
WHEREAS, Since 1951, Maryland wineries have been allowed to deliver their
products to restaurants, retailers, and permit holders throughout the State of
Maryland; and
WHEREAS, In Bushnell v. Ehrlich, a United States District Court case, a
Pennsylvania winery alleged that by allowing Maryland wineries to deliver their
product to restaurants, retailers, and permit holders, Maryland discriminates against
out of state wineries and violated the Commerce Clause of the United States
Constitution; and
WHEREAS, As a result of both the Granholm decision and the Bushnell suit.
the Maryland is interested in preventing deceptive, destructive, and unethical business
practices by controlling the sale and distribution of alcoholic beverages; and
WHEREAS, By regulating and controlling alcoholic beverages in accordance
with the three-tier system for sales and distribution, Maryland has been able to protect
the health, welfare, and safety of its citizens; and
WHEREAS, The Supreme Court in the Granholm opinion reaffirmed that the
three-tier system is legitimate; and
WHEREAS, The Comptroller of Maryland on February 1, 2006, issued an
Administrative Release that suspended the ability of Maryland's Class 4 limited
wineries to sell and deliver their product directly to Maryland restaurants, retailers,
and permit holders under Article 2B, § 2-205 of the Code; and
WHEREAS, Maryland currently has twenty-two licensed wineries that produce
and distribute wine; and
WHEREAS, Only four Maryland wineries use services of a wholesaler to
distribute their product; and
WHEREAS, Eighteen Maryland wineries sell a combined amount of more than
60,000 gallons of wine annually and distribute their wine themselves to restaurants,
retailers, and permit holders; and
WHEREAS, Maryland has taken substantial steps in the past years to promote
the growth of Maryland wineries, including the appropriation of $100,000 in the fiscal
year 2006 budget to create a fund for grants to expand Maryland wineries; and
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