Maryland recently passed legislation expanding local licensing boards’ authority, allowing retailers to obtain permits for direct-to-consumer delivery of beer, wine, and liquor.[1] This new law authorizes local licensing boards to establish delivery permits to third-party contractors for the delivery of alcohol within the jurisdiction where the sale was made.[2] The law is expected to significantly benefit small businesses by enabling them to increase sales through alcohol delivery.[3]

Until now, Maryland generally prohibited retail delivery of alcoholic beverages. However, with a growing demand for home deliveries, the new law aligns with consumer trends like the surge in grocery and meal delivery services.[4]

Retailers are now authorized to deliver alcohol from their premises directly to consumers.[5] These deliveries can be completed by either the retail license holder or by a third-party contractor, independent contractor, or agent, as long as they hold a Local Delivery Service Permit (“permit”) issued by the Local Licensing Board (“the Board”).[6]

Before any deliveries can be made, an application for the permit must be submitted to the Board.[7] To obtain the permit, the applicant must meet the Board’s criteria.[8] The Board sets the requirements and can impose an annual fee for the permit, which is currently $1,000.[9] If a retail license holder contracts with a permit holder for alcohol deliveries, both parties must establish a method that ensures the retail license holder retains control over sales and payments made by customers.[10] Permit holders may make sales and deliveries over the phone, internet, or other electronic means.[11]

Alcohol can only be sold in its original sealed container and during the retail license holder’s regular business hours.[12] Permit holders are not allowed to pre-sell or store alcoholic beverages for delivery; they may only fulfill specific customer orders as requested.[13] Only individuals who are 21 years or older, with valid identification, may purchase or receive deliveries, and they must be within the jurisdiction of the retail license holder.[14]

Violations of the permit system requirements come with significant penalties for retailers. A first violation results in a $1,000 fine, a second violation leads to a $3,000 fine and a 30-day suspension, and a third violation incurs a $6,000 fine and a 60-day suspension.[15] Any additional violations will result in revocation of the permit.[16]

This legal change marks a significant shift in how Marylanders can access alcohol. Retailers now have the flexibility to offer delivery options, expanding consumer convenience and stimulating local economies.

Cameron Luzarraga is a third-year law student at the University of Baltimore School of Law and an Associate Editor for Law Forum. He received his Bachelor of Arts in Government and Politics from the University of Maryland, College Park. Cameron has experience in public service, having interned with the U.S. Department of the Treasury, NASA Office of the Inspector General, and, during law school, the U.S. Securities and Exchange Commission. As President of the UB Environmental Law Society, he plans to pursue a career in environmental law after graduation.

[1] Alcoholic Beverages – Retail Delivery – Local Delivery Service Permit, ch. 774, 2024 Md. Laws; see H.D. 808, 2024 Gen. Assem., 446th Sess. (Md. 2024) (enacted).

[2] Hundreds of New Laws Go Into Effect Monday, Md. Matters (July 1, 2024), https://marylandmatters.

org/2024/07/01/hundred-of-new-laws-go-into-effect-on-monday/.

[3] Fiscal and Policy Note for House Bill 808, Dep’t Legis. Serv., https://mgaleg.maryland.gov/

2024RS/fnotes/bil_0008/hb0808.pdf.

[4] See Hundreds of New Laws Go Into Effect Monday, supra note 2.

[5] Md. Code Ann., Alc. Bev. and Cannabis § 4-507(b)(2) (LexisNexis 2024).

[6] § 4-507(b)(2)(i) – (iii) (referencing the Local Service Delivery Scheme under Md. Code Ann., Alc. Bev. and Cannabis § 4-1107 (LexisNexis 2024)).

[7] Alc. Bev. and Cannabis § 4-1107(M)(1).

[8] Id. at § 4-1107(B), (D).

[9] Id. at § 4-1107(D)(1)-(2), (E)(1)-(2).

[10] Id. at § 4-1107(M)(2).

[11] Id. at § 4-1107(F)(2).

[12] Id. at § 4-1107(H)(1)-(2).

[13] Md. Code Ann., Alc. Bev. and Cannabis § 4-1107(L)(1)-(2) (LexisNexis 2024).

[14] Id. at § 4-1107(G)(1)-(2) (requiring “proof of age on receipt of the alcoholic beverages”).

[15] Id. at § 4-1107(K)(1)-(3) (noting that penalties are to be imposed when a local delivery service permit holder violates Alc. Bev. and Cannabis § 4-1107).

[16] Id. at § 4-1107(K)(4).