(a) A distillery pub endorsement shall authorize the licensee to manufacture distilled spirits at one location from fruits or grains, to blend and rectify distilled spirits, and store distilled spirits transported to the on-premises retailer's license class C licensee for on-premises consumption, and for sale to licensed wholesalers for the purposes of resale to other licensees.

(b) A distillery pub endorsement shall be issued only to the licensee under an on-premises retailer's license, class C, in conjunction with the issuance of an on-premises retailer's license, class C.

(c) Except as provided for in subsection (c-1) [of this section], the location used to manufacture or age distilled spirits shall be on or immediately adjacent to the restaurant, tavern, multipurpose facility, hotel, or nightclub licensed to the distillery pub owner in accordance with subsection (b) of this section.

(c-1)(1) A licensee holding a distillery pub endorsement may manufacture distilled spirits at a location not on or immediately adjacent to the licensed premises; provided, that:

(A) The licensee obtains an off-site production permit, as defined by regulation;

(B) The location of the off-site production permit is within 600 feet of the licensed premises; and

(C) No on-premises or off-premises sales occur at the off-site production location.

(2) The minimum annual fee for an off-site production permit shall be $500 per year.

(d)(1) If a licensee has submitted a completed application for or is a holder of a distillery pub endorsement on or after February 7, 2018, the establishment shall only be permitted to sell distilled spirits to patrons in sealed bottles or other closed containers for off-premises consumption if the spirits are:

(A) Manufactured at the distillery pub endorsement holder's licensed premises;

(B) Manufactured by the holder of the distillery pub endorsement or an entity with a shared ownership interest of 5% or more in the location where the distillery pub endorsement is located, regardless of jurisdiction; or

(C) Manufactured by the holder of the distillery pub endorsement as a part of a collaboration with another distilled spirits manufacturer, regardless of jurisdiction.

(2) Sales of distilled spirits in accordance with this subsection shall be limited to the hours of 7:00 a.m. to 12:00 a.m., 7 days a week.

(d-1)(1) if the licensee has submitted a completed application for or is the holder of a distillery pub endorsement before February 7, 2018, the establishment may sell distilled spirits to patrons in sealed bottles or other closed containers for off-premises consumption if:

(A) Within 60 days of receiving the distillery pub endorsement, the licensee, at all times, makes distilled spirits manufactured at the licensed premises available to and offers it for sale to patrons or has distilled spirits that is in the process of being manufactured and currently undergoing the production process on the licensed premises; and

(B) The holder of the distillery pub endorsement has distilled spirits manufactured at the licensed premises available and offered for sale to patrons on the licensed premises for at least 90 days in a calendar year.

(2) The holder of the distillery pub endorsement shall maintain upon the licensed premises, either physically or electronically, books and records that reflect the days in which distilled spirits manufactured on the licensed premises were available and offered for sale to patrons. The holder of the distillery pub endorsement shall allow any ABRA investigator or any member of the Metropolitan Police Department a full opportunity to examine its records at any time during its business hours.

(3) It shall be a violation for the holder of a distillery pub endorsement issued pursuant to paragraph (1) of this subsection to not have manufacturing equipment on the licensed premises or to not be in compliance with paragraph (1)(A) of this subsection.

(4) In accordance with § 25-823, the Board may fine and revoke or suspend a distillery pub endorsement if the holder of the distillery pub endorsement fails to comply with the terms of this subsection.

(5) A distillery pub endorsement issued pursuant to this subsection shall expire upon the revocation, cancellation, or transfer of the license.

(e) [Repealed].

(f) A distillery pub endorsement shall be cancelled or revoked if the on-premises retailer's license class C licensee ceases operations or the license is revoked or cancelled.

(g) A distillery pub endorsement shall be automatically suspended whenever and for the same period that the licensee’s on-premises retailer’s license, class C, is suspended.

(h) A licensee holding distillery pub endorsements at separate locations in the District shall be permitted to transport distilled spirits for sale and consumption manufactured at one distillery pub facility to another distillery pub facility owned by the licensee.

(i) A licensee holding a distillery pub endorsement shall be authorized to sell and deliver spirits directly to a consumer for off-premises consumption if the spirits are:

(1) Manufactured at the distillery pub facility;

(2) Manufactured by the holder of the distillery pub endorsement or an entity, regardless of jurisdiction, with a shared ownership interest of 5% or more in the location where the distillery pub endorsement is located; or

(3) Manufactured by the holder of the distillery pub endorsement as part of a collaboration with another manufacturer, regardless of jurisdiction.

(Feb. 22, 2014, D.C. Law 20-78, § 2(b), 61 DCR 151; Oct. 30, 2018, D.C. Law 22-165, § 2(a)(10), 65 DCR 9366; Feb. 21, 2020, D.C. Law 23-54, § 2(a)(7), 67 DCR 28.)