Code of Maryland Regulations
Title 14 - INDEPENDENT AGENCIES
Subtitle 23 - ALCOHOL AND TOBACCO COMMISSION
Chapter 14.23.01 - Alcoholic Beverages
Section 14.23.01.12 - Wholesaler Credit Sales of Beer to Worcester County Retailers
Universal Citation: MD Code Reg 14.23.01.12
Current through Register Vol. 51, No. 26, December 27, 2024
A. Beer Credit Sales.
(1) A licensed wholesaler may
sell beer on credit to retailers in Worcester County if the:
(a) Licensed retailer has held an alcoholic
beverage retail license in Worcester County for a minimum of 2 consecutive
years before the sale and delivery; and
(b) Licensed wholesaler complies with the
provisions of this regulation.
(2) A licensed wholesaler who sells and
delivers beer on credit to a retailer in Worcester County shall be paid in
full, including any interest charges, for the outstanding invoice not later
than the 10th calendar day after the date of delivery.
(3) A licensed wholesaler who has not
received payment in accordance with §A(2) of this regulation shall:
(a) Immediately discontinue beer sales,
credit or otherwise, to that licensed retailer; and
(b) Notify the Executive Director in writing
of the delinquency as soon as possible but not later than 12 noon on the next
business day.
B. Notification.
(1) Notification of a delinquency under
§A(3)(b) of this regulation may be in any form but shall contain at least
the following information:
(a) Name of the
licensed wholesaler filing the report;
(b) Name and trade name of the licensed
retailer;
(c) Full address of the
licensed retailer;
(d) Date and
number of the original invoice; and
(e) Amount of delinquency.
(2) The Executive Director shall
provide all other wholesalers of beer notice in writing of the delinquency
report received. The notice shall provide an effective date when all licensed
wholesalers are prohibited from making any sale or delivery of beer to that
account.
(3) A licensed wholesaler
who has previously reported a delinquency shall notify the Executive Director
upon receipt of full payment. The notification time frames are the same as with
the original notification. Upon notification from the Executive Director that
an account has been cleared, all licensed wholesalers, including the licensed
wholesaler who filed the original delinquent report, may resume credit sales
and deliveries to that account. Credit sales may be made at the discretion of
the licensed wholesaler.
(4) If a
licensed wholesaler becomes aware that a licensed retailer's check has been
returned by the bank unpaid, whether or not the check was issued as a payment
at the time of delivery or on the licensed retailer's 10-day credit account,
and the 10-day period specified in §A(2) of this regulation has expired,
the licensed wholesaler shall consider this a nonpayment and immediately report
this information to the Executive Director. A licensed wholesaler may elect to
redeposit a returned check if it is returned within 10 days of the original
invoice date. If a check is returned unpaid a second time, the licensed
wholesaler shall immediately file a report with the Executive Director.
Notification shall include a statement that the report was based on a returned
check.
C. Beer Credit Prohibition. In accordance with Alcoholic Beverages Article, § 33-504(b)(3), Annotated Code of Maryland, a licensed retailer who has been reported on three separate occasions within a single calendar year is prohibited from obtaining beer on credit for a period of 2 years from the date of the third report. For the purpose of this regulation, a specific beer purchase transaction between a licensed wholesaler and a licensed retailer constitutes an occasion. The Executive Director shall notify all licensed wholesalers of any retailers who meet this criterion.
Disclaimer: These regulations may not be the most recent version. Maryland may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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