The Supreme Court recently made news by ruling in a 5-4 decision that State laws banning mail or internet wine sales from out of state (but not local) wineries were unconstitutional. In several related cases, the Court held that the 21st amendment to the U.S. Constitution, which ended Prohibition and gave the States control over the sale of alcoholic beverages, does not overcome the Commerce Clause which bans discrimination in interstate commerce in favor of local businesses. This case does not affect Maryland law as it currently stands, but raises the subject of the various ways the law regulates the sale of beverage alcohol.
Maryland is unaffected by this decision, because Maryland law bans all wine shipments directly to consumers, regardless of whether the seller is an in state or out of state winery. To illustrate the variety of state laws affecting such sales, D.C. law allows consumers to receive one bottle of wine per month by mail, while Virginia law allows both in state and interstate direct shipping to private citizens. The recent decision is directed to treating in state and out of state producers differently, and the Supreme Court majority opinion reiterated the authority of the states to regulate sale of alcoholic beverages so long as they do not treat out of state producers differently.
Currently there are thirty two states that license private sales of alcoholic beverages by retailers and wholesalers. Eighteen states control the sale and distribution of such products by selling them directly through state owned distribution centers. Montgomery County, Maryland is the only county in the country that also only permits the sale of liquor (but not beer and wine) through Country owned stores.
This came about in 1933 at the end of Prohibition, when the County established a Liquor Control Board (which in 1951 became the Department of Liquor Control). That Department operates the various distribution centers in the County which sell liquor, as well as beer and wine. There is also a Board of License Commissioners, with five members appointed by the County Executive with approval of the County Council. It issues licenses to sellers of beer and wine in the County, and regulates these establishments.
That regulation includes inspections of establishments selling beer and wine, including assuring that proper identification is received from customers to make sure no sales to underage persons occur. The license issued to each seller includes hours when sales can be made, and prohibits gambling at such stores (except for the sale of Maryland lottery tickets). A conviction for unlawful sale of alcoholic beverages subjects the person who makes the sale to a fine of up to $1,000 dollars and/or up to two years in prison. The license holder for that establishment faces a fine of up to $20,000 per violation, and possible suspension or revocation of the liquor license.
The new Supreme Court opinion has raised the hopes of wine sellers and wine lovers that the Maryland legislature may change the law and allow mail or internet sale of wine directly to consumers. There are also critics who question why Montgomery County is in the liquor business, but the long history of these laws suggest that change is slow in coming.