House Bill 574

AN ACT concerning

Alcoholic Beverages - Suppliers and Wholesalers - Stale Malt Products

FOR the purpose of allowing a supplier to enter into an agreement with a wholesaler
or authorized representative to replace stale or out-of-date malt beverage
products under certain circumstances; allowing a supplier to unilaterally submit
to the State Comptroller a plan for replacing products under certain
circumstances; specifying that the replacement plan may contain a certain
designation; specifying that certain provisions apply only to certain counties;
making this Act an emergency measure; and generally relating to suppliers and
wholesalers of alcoholic beverages.

BY repealing and reenacting, with amendments,
Article 2B - Alcoholic Beverages
Section 12-102
Annotated Code of Maryland

(1998 Replacement Volume and 1998 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article 2B - Alcoholic Beverages

12-102.

(a) In order to eliminate the undue stimulation of the sale of alcoholic
beverages and the practice of manufacturers and wholesalers in granting secret
discounts, rebates, allowances, free goods or other inducement to selected licensees
which contribute to a disorderly distribution of alcoholic beverages, it shall be
unlawful for any person licensed hereunder as a manufacturer or wholesaler to
discriminate directly or indirectly in price, discounts or the quality of merchandise
sold, between one dispensary and another dispensary, between one wholesaler and
another wholesaler or between one retailer and another retailer purchasing alcoholic
beverages bearing the same brand and trade name and of like age and quality. It shall
be unlawful for any nonresident dealer or nonresident unlicensed manufacturer to
use or promote the use of any such practices for the sale or distribution of alcoholic
beverages to or through the manufacturers, wholesalers or county dispensaries in this
State. This section shall not restrict a manufacturer or wholesaler or nonresident
dealer from limiting the quantity of alcoholic beverages to be sold to any licensee
under a voluntary or compulsory plan of ration and the word "purchase" shall not
imply that a manufacturer, wholesaler or nonresident dealer shall be required to sell
all licensees from whom they receive orders. The Comptroller may promulgate such
rules and regulations as are necessary to carry out the purpose of this section.

(b) A supplier, nonresident dealer, or wholesaler may not make a discount,
rebate, or depletion allowance that is offered on a product dependent on the pricing
policy or practice of the licensee who is invoiced for the product.