SB 623

SENATE BILL 623
      C2, A1  6lr2156
  CF HB 766
     By: Senators Watson and Harris
     Introduced and read first time: February 5, 2026
     Assigned to: Finance
     Committee Report: Favorable with amendments
     Senate action: Adopted with floor amendments
     Read second time: March 7, 2026
  CHAPTER ______
1 AN ACT concerning
2 Retail Tobacco Tobacconist Businesses and Establishment of a Premium Cigar
3Lounge Alcoholic Beverages License
4(Maryland Premium Cigar Lounge Act of 2026)
5 FOR the purpose of establishing a Class C–PCL (premium cigar lounge) alcoholic beverages
6      license for use in conjunction with a certain tobacco products retailer tobacconist
7      license; authorizing a local licensing board to issue the license; providing that a local
8      licensing board may authorize the owner or operator of a tobacconist that does not
9      hold an alcoholic beverages license to allow the consumption of alcoholic beverages
10      on the premises under certain circumstances; altering, for purposes of requirements
11      for other tobacco products business licenses, the definition of “pipe tobacco” to
12      exclude tobacco intended for use in a hookah or similar smoking device and the
13      definition of “tobacconist” to exclude retailers that do not derive at least a certain
14      percentage of revenues from the sale of premium cigars and pipe tobacco; prohibiting
15      a county clerk from issuing a certain tobacco products retailer tobacconist license if
16      the location is adjacent to shares a wall with a health care facility or a child care
17      facility; requiring a certain affidavit to be filed with the clerk of the circuit court
18      when renewing a tobacconist license; exempting a holder of a certain tobacco
19      products retailer license limiting an exemption for certain retail tobacco businesses
20      from the Clean Indoor Air Act to licensed tobacconists; requiring the holder of certain
21      licenses to submit an annual report to the Executive Director of the Alcohol, Tobacco,
22      and Cannabis Commission providing that a local alcoholic beverages license held by
23      a tobacconist shall be converted to a Class C–PCL alcoholic beverages license;
24      prohibiting a local licensing board from revoking or suspending a converted
     EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
  [Brackets] indicate matter deleted from existing law.
  Underlining indicates amendments to bill.
  Strike out indicates matter stricken from the bill by amendment or deleted from the law by
  amendment.
  *sb0623*
2SENATE BILL 623
1Class C–PCL license under certain circumstances; and generally relating to retail
2tobacco tobacconist businesses and alcoholic beverages licenses.
3 BY repealing and reenacting, without amendments,
4Article – Alcoholic Beverages and Cannabis
5Section 4–204
6Annotated Code of Maryland
7(2024 Replacement Volume and 2025 Supplement)
8 BY adding to
9      Article – Alcoholic Beverages and Cannabis
10      Section 4–1002; and 4–1301 to be under the new subtitle “Subtitle 13. Unlicensed
11Establishments”
12      Annotated Code of Maryland
13      (2024 Replacement Volume and 2025 Supplement)
14 BY repealing and reenacting, without amendments,
15Article – Business Regulation
16Section 16.5–101(a), (i), (j), and (q)
17Annotated Code of Maryland
18(2024 Replacement Volume and 2025 Supplement)
19 BY repealing and reenacting, with amendments,
20Article – Business Regulation
21Section 16.5–204(b) 16.5–101(p) and (t), 16.5–203(b) and (e), 16.5–204(b), and
2216.5–206(c)
23Annotated Code of Maryland
24(2024 Replacement Volume and 2025 Supplement)
25 BY repealing and reenacting, without amendments,
26Article – Health – General
27Section 24–504
28Annotated Code of Maryland
29(2023 Replacement Volume and 2025 Supplement)
30 BY repealing and reenacting, with amendments,
31Article – Health – General
32Section 24–505
33Annotated Code of Maryland
34(2023 Replacement Volume and 2025 Supplement)
35SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
36 That the Laws of Maryland read as follows:
37Article – Alcoholic Beverages and Cannabis
38 4–204.
  SENATE BILL 623  3
1(a)    Except as otherwise provided in Division II of this article and subsection (b)
2 of this section, a local licensing board may not issue more than one license for use at the
3 same premises.
4(b)    The prohibition in subsection (a) of this section does not apply to a license
5 issued in accordance with §§ 4–1201 through 4–1205 of this title.
6 4–1002.
7(A)    (1)   IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS
8 INDICATED.
9(2)“OTHER TOBACCO PRODUCTS” HAS THE MEANING STATED IN §
10 16.5–101 OF THE BUSINESS REGULATION ARTICLE “SOCIAL EQUITY APPLICANT”
11 MEANS AN APPLICANT FOR A CLASS C–PCL LICENSE THAT HAS AT LEAST 65%
12 OWNERSHIP AND CONTROL HELD BY ONE OR MORE INDIVIDUALS WHO:
13(I)
  HAVE LIVED IN A DISPROPORTIONATELY IMPACTED AREA
14 FOR AT LEAST 5 OF THE 10 YEARS IMMEDIATELY PRECEDING THE SUBMISSION OF
15 THE APPLICATION;
16(II)
  ATTENDED A PUBLIC SCHOOL IN A DISPROPORTIONATELY
17 IMPACTED AREA FOR AT LEAST 5 YEARS; OR
18(III) FOR AT LEAST 2 YEARS, ATTENDED A 4–YEAR INSTITUTION
19 OF HIGHER EDUCATION IN THE STATE WHERE AT LEAST 40% OF THE INDIVIDUALS
20 WHO ATTEND THE INSTITUTION OF HIGHER EDUCATION ARE ELIGIBLE FOR A PELL
21 GRANT.
22(3)
  “TOBACCONIST” MEANS A RETAIL TOBACCO BUSINESS THAT
23 HOLDS A TOBACCONIST LICENSE UNDER § 16.5–204 OF THE BUSINESS REGULATION
24 ARTICLE.
25(B)    THIS SECTION DOES NOT APPLY IN MONTGOMERY COUNTY.
26(C)    THERE IS A CLASS C–PCL (PREMIUM CIGAR LOUNGE) LICENSE.
27(C) (D)      (1)    A LOCAL LICENSING BOARD MAY ISSUE THE LICENSE TO A
28 TOBACCONIST IF:
29(I)
  THE TOBACCONIST OPERATES AN ESTABLISHMENT IN
30 WHICH PREMIUM CIGARS AND PIPE TOBACCO ARE SOLD AT RETAIL FOR
31 ON–PREMISES AND OFF–PREMISES USE; AND
4SENATE BILL 623
1(II)   THE TOBACCONIST MEETS THE REQUIREMENTS OF THIS
2 SECTION.
3(2)(I) A LOCAL LICENSING BOARD MAY NOT ISSUE MORE THAN
4 TWO NEW CLASS C–PCL LICENSES IN A SINGLE JURISDICTION DURING A CALENDAR
5 YEAR.
6(II) 1.   A SUBJECT TO SUBPARAGRAPHS (III) AND (IV) OF
7 THIS PARAGRAPH, A LOCAL LICENSING BOARD MAY ISSUE ONE CLASS C–PCL
8 LICENSE PER 150,000 RESIDENTS OF A COUNTY.
9(II)   2.
  IF A COUNTY HAS FEWER THAN 150,000 RESIDENTS, A
10 LOCAL LICENSING BOARD MAY ISSUE ONE CLASS C–PCL LICENSE IN THE COUNTY.
11(III) A LOCAL LICENSING BOARD MAY NOT ISSUE A NEW CLASS
12 C–PCL LICENSE FOR AN ESTABLISHMENT LOCATED WITHIN 5 MILES OF AN
13 ESTABLISHMENT WITH AN EXISTING CLASS C–PCL LICENSE.
14(IV)   THE ISSUANCE OF A CLASS C–PCL LICENSE IS SUBJECT TO
15 LOCAL REGULATIONS REGARDING THE TOTAL NUMBER OF ALCOHOLIC BEVERAGES
16 LICENSES THAT MAY BE ISSUED IN A SINGLE JURISDICTION.
17(3)
  A LOCAL LICENSING BOARD SHALL ESTABLISH A SCORING OR
18 WEIGHTED REVIEW PROCESS FOR APPLICATIONS FOR A CLASS C–PCL LICENSE,
19 WHICH SHALL CONSIDER:
20(I)    WHETHER THE APPLICANT QUALIFIES AS A SOCIAL EQUITY
21 APPLICANT;
22(II)   THE APPLICANT’S BUSINESS ACUMEN AND OPERATIONAL
23 CAPACITY;
24(III) THE APPLICANT’S YEARS OF EXPERIENCE IN THE TOBACCO,
25 HOSPITALITY, OR RELATED INDUSTRY;
26(IV)
  WHETHER THE APPLICANT RESIDES IN THE COUNTY OR
27 MUNICIPALITY IN WHICH THE LICENSE IS SOUGHT;
28(V)
  ANY WRITTEN INPUT OR APPROVAL, AS REQUIRED BY THE
29 LOCAL LICENSING BOARD, FROM RELEVANT LOCAL STAKEHOLDERS, INCLUDING
30 THE COUNTY, A MUNICIPAL CORPORATION, OR A RECOGNIZED COMMUNITY OR
31 BUSINESS ASSOCIATION;
  SENATE BILL 623  5
1(VI)
  THE ECONOMIC BENEFIT THE PROPOSED BUSINESS IS
2 EXPECTED TO PROVIDE TO THE LOCAL JURISDICTION, INCLUDING JOB CREATION,
3 CAPITAL INVESTMENT, AND SUPPORT FOR LOCAL COMMERCE; AND
4(VII) ANY OTHER FACTOR THAT THE LOCAL LICENSING BOARD
5 DETERMINES IS NECESSARY TO PROMOTE EQUITY, COMMUNITY COMPATIBILITY,
6 AND RESPONSIBLE BUSINESS OPERATIONS.
7      (D) (E)     THE LICENSE AUTHORIZES THE HOLDER TO ALLOW A CUSTOMER
8 TO CONSUME ALCOHOLIC BEVERAGES ON THE PREMISES SELL ALCOHOLIC
9 BEVERAGES FOR ON–PREMISES CONSUMPTION MONDAY THROUGH SUNDAY FROM
10 10 A.M. TO 1 A.M. THE FOLLOWING DAY IF:
11(1)   THE ALCOHOLIC BEVERAGES ARE BROUGHT TO THE PREMISES BY
12 THE CUSTOMER;
13(2) (1)  THE CUSTOMER PURCHASES AND CONSUMES A PRODUCT
14 PREMIUM CIGAR OR PIPE TOBACCO SOLD BY THE LICENSE HOLDER DURING THE
15 TIME THE CUSTOMER IS ON THE PREMISES; AND
16(3) (2)    THE LICENSE HOLDER HAS AT LEAST ONE EMPLOYEE
17 PRESENT AND WORKING WHO IS CERTIFIED IN AN ALCOHOL AWARENESS PROGRAM
18 UNDER § 4–505 OF THIS TITLE.
19      (E) (F)   (1) THE LICENSED PREMISES IS EXEMPT FROM THE
20 REQUIREMENTS OF THE CLEAN INDOOR AIR ACT UNDER § 24–505 OF THE HEALTH
21 – GENERAL ARTICLE.
22(2)   A LOCAL LICENSING BOARD SHALL REQUIRE:
23(I)A LICENSE APPLICATION TO INCLUDE A BUILDING PLAN
24 DEMONSTRATING SUFFICIENT DETAILED SPECIFICATIONS FOR AIR FILTRATION
25 SYSTEMS AND EXHAUST SYSTEMS;
26(II)
  A LICENSE HOLDER TO DISPLAY IN A CONSPICUOUS PLACE
27 THAT SMOKING IS ALLOWED ON THE PREMISES; AND
28(III) EACH EMPLOYEE OF A LICENSED ESTABLISHMENT TO SIGN
29 AN ACKNOWLEDGMENT THAT ENUMERATES THE DANGERS OF SECONDHAND SMOKE
30 AND STATES THAT THE EMPLOYEE WILL BE SUBJECTED TO SECONDHAND SMOKE.
31(3)   AN ACKNOWLEDGMENT PROVIDED UNDER PARAGRAPH (2)(III) OF
32 THIS SUBSECTION SHALL STATE THAT THE ACKNOWLEDGMENT DOES NOT
6SENATE BILL 623
1 CONSTITUTE A WAIVER OF THE EMPLOYEE’S RIGHTS UNDER FEDERAL, STATE, OR
2 LOCAL WORKPLACE SAFETY REGULATIONS.
3      (F) (G)     (1)   THE LICENSE HOLDER SHALL:
4(1)  HAVE AVERAGE DAILY RECEIPTS FROM THE SALE OF PREMIUM
5 CIGARS, PIPE TOBACCO, AND RELATED ACCESSORIES THAT ARE AT LEAST 70% OF
6 THE TOTAL DAILY RECEIPTS FROM THE ESTABLISHMENT; AND
7(2)  ANNUALLY SUBMIT TO THE EXECUTIVE DIRECTOR AND THE
8 LOCAL LICENSING BOARD, IN A FORM THE EXECUTIVE DIRECTOR REQUIRES, A
9 SALES RATIO COMPLIANCE REPORT A STATEMENT OF AVERAGE DAILY RECEIPTS
10 AND AN AFFIDAVIT OF A CERTIFIED PUBLIC ACCOUNTANT THAT VERIFY THAT THE
11 LICENSE HOLDER HAS MET THE REQUIREMENTS OF A TOBACCONIST UNDER §
12 16.5–101 OF THE BUSINESS REGULATION ARTICLE.
13(2)   IF, BASED ON THE ANNUAL SUBMISSION REQUIRED UNDER THIS
14 SUBSECTION OR ANY OTHER INFORMATION AVAILABLE TO THE LOCAL LICENSING
15 BOARD, THE LOCAL LICENSING BOARD DETERMINES THAT A LICENSE HOLDER DOES
16 NOT MEET THE REQUIREMENTS OF A TOBACCONIST UNDER § 16.5–101 OF THE
17 BUSINESS REGULATION ARTICLE, THE LOCAL LICENSING BOARD MAY REVOKE OR
18 SUSPEND THE CLASS C–PCL LICENSE OR OTHERWISE DISCIPLINE THE LICENSE
19 HOLDER IN ACCORDANCE WITH ENFORCEMENT POWERS PROVIDED UNDER THIS
20 ARTICLE AND ANY APPLICABLE LOCAL LAW OR REGULATION.
21      (H)   A LICENSE HOLDER MAY NOT:
22(1) ALLOW A PERSON TO USE CIGARETTES, ELECTRONIC SMOKING
23 DEVICES, OR CANNABIS ON THE LICENSED PREMISES;
24(2) ALLOW AN INDIVIDUAL UNDER THE AGE OF 21 YEARS ON THE
25 LICENSED PREMISES;
26(3)   HAVE LIVE ENTERTAINMENT ON THE LICENSED PREMISES; OR
27(4)   OPERATE A COMMERCIAL KITCHEN ON THE LICENSED PREMISES.
28      (G)   THE ANNUAL LICENSE FEE IS $100.
29      (I) A LOCAL LICENSING BOARD SHALL SET THE ANNUAL LICENSE FEE FOR
30 A CLASS C–PCL LICENSE BETWEEN $500 AND $2,500.
31SUBTITLE 13. UNLICENSED ESTABLISHMENTS.
  SENATE BILL 623  7
1 4–1301.
2(A)   (1)   THIS SECTION APPLIES TO A TOBACCONIST:
3(I)
  THAT ALLOWS ON–PREMISES CONSUMPTION OF PREMIUM
4 CIGARS AND PIPE TOBACCO;
5(II)   THAT DOES NOT HOLD AN ALCOHOLIC BEVERAGES LICENSE;
6 AND
7(III) THAT IS OPEN TO THE PUBLIC.
8(2)   THIS SECTION DOES NOT APPLY IN MONTGOMERY COUNTY.
9(B) A LOCAL LICENSING BOARD MAY AUTHORIZE THE OWNER OR OPERATOR
10 OF A TOBACCONIST TO ALLOW A CUSTOMER WHO IS AT LEAST 21 YEARS OLD TO
11 BRING ALCOHOLIC BEVERAGES ONTO THE PREMISES FOR PERSONAL
12 CONSUMPTION, PROVIDED THE CUSTOMER CONCURRENTLY BUYS AND CONSUMES
13 TOBACCO PRODUCTS.
14(C) IF THE OWNER OR OPERATOR OF THE TOBACCONIST ALLOWS THE
15 CONSUMPTION OF ALCOHOLIC BEVERAGES ON THE PREMISES, THE OWNER OR
16 OPERATOR:
17(1)MAY LIMIT THE AMOUNT AND TYPE OF ALCOHOLIC BEVERAGES
18 THAT MAY BE CONSUMED ON THE PREMISES;
19(2)
  SHALL REQUIRE THAT AT LEAST ONE EMPLOYEE WHO IS WORKING
20 AND PRESENT ON THE PREMISES HAS BEEN TRAINED IN AN ALCOHOL AWARENESS
21 PROGRAM UNDER § 4–505 OF THIS TITLE; AND
22(3)   MAY NOT ALLOW:
23(I)AN INDIVIDUAL TO CONSUME ALCOHOLIC BEVERAGES ON
24 THE PREMISES OF THE TOBACCONIST FROM 1 A.M. THROUGH 10 A.M.;
25(II)
  A CUSTOMER TO DISTURB THE PEACE, SAFETY, AND
26 WELFARE OF THE COMMUNITY;
27(III) A PERSON TO USE CIGARETTES, ELECTRONIC SMOKING
28 DEVICES, OR CANNABIS WHILE ON THE PREMISES; OR
29(IV)   AN INDIVIDUAL UNDER THE AGE OF 21 YEARS OLD TO
30 ENTER THE PREMISES.
8SENATE BILL 623
1(D) IF, BASED ON THE STATEMENT OF AVERAGE DAILY RECEIPTS AND
2 AFFIDAVIT REQUIRED UNDER § 16.5–206(C)(4) OF THE BUSINESS REGULATION
3 ARTICLE OR ANY OTHER INFORMATION AVAILABLE TO THE LOCAL LICENSING
4 BOARD, THE LOCAL LICENSING BOARD DETERMINES THAT A TOBACCONIST
5 AUTHORIZED TO ALLOW ON–PREMISES CONSUMPTION DOES NOT MEET THE
6 REQUIREMENTS OF A TOBACCONIST UNDER § 16.5–101 OF THE BUSINESS
7 REGULATION ARTICLE, THE LOCAL LICENSING BOARD MAY REVOKE THE
8 AUTHORIZATION TO ALLOW ON–PREMISES CONSUMPTION OR OTHERWISE
9 DISCIPLINE THE TOBACCONIST IN ACCORDANCE WITH ENFORCEMENT POWERS
10 PROVIDED UNDER THIS ARTICLE AND ANY APPLICABLE LOCAL LAW OR
11 REGULATION.
12(E)THE LOCAL LICENSING BOARD SHALL NOTIFY THE EXECUTIVE
13 DIRECTOR OF EACH TOBACCONIST AUTHORIZED TO ALLOW ON–PREMISES
14 CONSUMPTION OF ALCOHOLIC BEVERAGES UNDER THIS SECTION.
15Article – Business Regulation
16 16.5–101.
17(a)   In this title the following words have the meanings indicated.
18(i)   “Licensed tobacconist” means a person licensed by the clerk of a circuit court
19 under § 16.5–204(b) of this title to act as a tobacconist.
20(j)   (1)    “Other tobacco products” means, except as provided in paragraph (3) of
21 this subsection, a product that is:
22(i)  intended for human consumption or likely to be consumed,
23 whether smoked, heated, chewed, absorbed, dissolved, inhaled, or ingested in any other
24 manner, and that is made of or derived from, or that contains:
251.      tobacco; or
262.      nicotine; or
27(ii)  a component or part used in a consumable product described
28 under item (i) of this paragraph.
29(2)    “Other tobacco products” includes:
30(i)    cigars, premium cigars, pipe tobacco, chewing tobacco, snuff, and
31 snus; and
32(ii)   filters, rolling papers, pipes, and hookahs.
  SENATE BILL 623  9
1(3)   “Other tobacco products” does not include:
2(i)    cigarettes;
3(ii)   electronic smoking devices;
4(iii) drugs, devices, or combination products authorized for sale by
5 the U.S. Food and Drug Administration under the Federal Food, Drug, and Cosmetic Act;
6 or
7(iv)   tobacco pipes, as defined under § 11–104 of the Tax – General
8 Article.
9(p)   (1) “Pipe tobacco” means any tobacco that, because of its appearance, type,
10 packaging, or labeling, is suitable for use and likely to be offered to, or purchased by,
11 consumers as tobacco to smoke in a pipe.
12(2)
  “PIPE TOBACCO” DOES NOT INCLUDE TOBACCO THAT IS
13 INTENDED FOR USE IN A HOOKAH OR SIMILAR SMOKING DEVICE.
14(q)    “Premium cigars” means cigars that:
15(1)   have hand–rolled wrappers made from whole tobacco leaves where the
16 filler, binder, and wrapper are made of all tobacco, and may include adhesives or other
17 materials used to maintain size, texture, or flavor; or
18(2)   are designated as premium cigars by the Executive Director by
19 regulation.
20(t)    “Tobacconist” means an other tobacco products business that derives at least
21 70% of its revenues, measured by average daily receipts, from the sale of [other tobacco
22 products] PREMIUM CIGARS, PIPE TOBACCO, and [tobacco–related] RELATED
23 accessories FOR ON–PREMISES OR OFF–PREMISES CONSUMPTION.
24 16.5–203.
25(b)    (1)    An applicant for a license to act as an other tobacco products retailer or
26 a tobacconist:
27(i)   shall obtain a county license by submitting to the clerk an
28 application for each permanent or temporary place of business located in the same
29 enclosure and operated by the same applicant; and
30(ii) except as provided in paragraph (2) of this subsection, shall pay
31 to the clerk a fee of $15.
10SENATE BILL 623
1(2)    A person who has a license issued under Title 16 of this article to act as
2 a cigarette retailer or to act as a special cigarette retailer is not required to pay the license
3 fee.
4(3)    The application shall:
5(i)    be made on the form that the clerk requires; and
6(ii)   contain the information that the Executive Director requires.
7(4)
  IF AN APPLICANT FOR A LICENSE TO ACT AS A TOBACCONIST
8 INTENDS TO ALLOW ON–PREMISES CONSUMPTION OF PREMIUM CIGARS OR PIPE
9 TOBACCO, THE APPLICANT SHALL INCLUDE WITH THE APPLICATION SUBMITTED
10 UNDER THIS SUBSECTION A BUILDING PLAN DEMONSTRATING DETAILED
11 SPECIFICATIONS FOR AIR FILTRATION SYSTEMS AND EXHAUST SYSTEMS.
12(e)    (1) A licensee shall display a license in the way that the Executive Director
13 requires by regulation.
14(2)IF SMOKING IS ALLOWED ON THE PREMISES, A LICENSEE SHALL
15 DISPLAY IN A CONSPICUOUS PLACE THAT SMOKING IS ALLOWED ON THE PREMISES.
16(3)
  A TOBACCONIST LICENSEE SHALL RETAIN RECORDS RELATED TO
17 AVERAGE DAILY RECEIPTS OF THE TOBACCONIST FOR A MINIMUM OF 2 YEARS.
18(4)    A
  TOBACCONIST LICENSEE MAY NOT SELL ALCOHOLIC
19 BEVERAGES UNLESS THE TOBACCONIST LICENSEE ALSO HOLDS A CLASS C–PCL
20 LICENSE ISSUED UNDER § 4–1002 OF THE ALCOHOLIC BEVERAGES AND CANNABIS
21 ARTICLE.
22 16.5–204.
23(b)(1) [The] EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS
24 SUBSECTION, THE clerk of the circuit court shall issue to each applicant who meets the
25 requirements of this subtitle a license to act as an other tobacco products retailer or a
26 tobacconist.
27(2)    THE CLERK MAY NOT ISSUE A LICENSE TO ACT AS A TOBACCONIST
28 UNDER THIS SUBSECTION IF THE PLACE OF BUSINESS LISTED ON THE APPLICATION
29 FOR THE LICENSE IS ADJACENT TO SHARES A WALL WITH A LICENSED HEALTH CARE
30 FACILITY OR LICENSED CHILD CARE FACILITY.
  SENATE BILL 623  11
1(3)     THE CLERK MAY RENEW A TOBACCONIST LICENSE ISSUED UNDER
2 THIS SECTION IF A LICENSED HEALTH CARE FACILITY OR LICENSED CHILD CARE
3 FACILITY RELOCATES TO SHARE A WALL WITH THE TOBACCONIST.
4 16.5–206.
5(c)    Before a license issued under this subtitle expires, the licensee may renew it
6 for an additional 1–year term, if the licensee:
7(1)     otherwise is entitled to be licensed;
8(2)      submits to the issuing official a renewal application on the form that
9 the issuing official requires; [and]
10(3)     pays to the issuing official the license fee required under § 16.5–203 of
11 this subtitle; AND
12(4)
  IS RENEWING A LICENSE TO ACT AS A TOBACCONIST AND THE
13 LICENSEE FILES WITH THE CLERK OF THE CIRCUIT COURT A STATEMENT OF
14 AVERAGE DAILY RECEIPTS AND AN AFFIDAVIT OF A LICENSED CERTIFIED PUBLIC
15 ACCOUNTANT THAT VERIFY THE LICENSEE HAS MET THE REQUIREMENTS OF A
16 TOBACCONIST.
17Article – Health – General
18 24–504.
19Except as provided in § 24–505 of this subtitle, beginning on February 1, 2008, a
20 person may not smoke or vape in:
21(1)     An indoor area open to the public;
22(2)    An indoor place in which meetings are open to the public in accordance
23 with Title 3 of the General Provisions Article;
24(3)   A government–owned or government–operated means of mass
25 transportation including buses, vans, trains, taxicabs, and limousines; or
26(4)     An indoor place of employment.
27 24–505.
28(A)    This subtitle does not apply to:
29(1)  Private homes, residences, including residences used as a business or
30 place of employment, unless being used by a person who is licensed or registered under
12SENATE BILL 623
1 Title 5, Subtitle 5 of the Family Law Article to provide child care, and private vehicles,
2 unless being used for the public transportation of children, or as part of health care or child
3 care transportation;
4(2)    A hotel or motel room rented to one or more guests as long as the total
5 percent of hotel or motel rooms being so used does not exceed 25%;
6(3)    A TOBACCONIST AS DEFINED IN § 16.5–101 OF THE BUSINESS
7 REGULATION ARTICLE retail tobacco business that is a sole proprietorship, limited
8 liability company, corporation, partnership, or other enterprise, in which:
9(i)    The primary activity is the retail sale of tobacco products and
10 accessories; and
11The sale of other products [is incidental] CONSTITUTES NOT
  (ii)
12 MORE THAN 30% OF THE RETAIL TOBACCO BUSINESS’S GROSS ANNUAL REVENUE;
13(4)   Any facility of a manufacturer, importer, wholesaler, or distributor of
14 tobacco products or of any tobacco leaf dealer or processor in which employees of the
15 manufacturer, importer, wholesaler, distributor, or processor work or congregate; or
16(5)    A research or educational laboratory for the purpose of conducting
17 scientific research into the health effects of environmental smoke.
18(B)    THE ALCOHOL, TOBACCO, AND CANNABIS COMMISSION SHALL
19 MAINTAIN A REGISTRY OF RETAIL TOBACCO BUSINESSES THAT ARE EXEMPT FROM
20 THIS SUBTITLE IN ACCORDANCE WITH THIS SECTION.
21SECTION 2. AND BE IT FURTHER ENACTED, That, on or before July 1, 2028, and
22 each July 1 thereafter, a person who holds a license to act as a tobacconist under §
23 16.5–204 of the Business Regulation Article and holds a Class C–PCL alcoholic beverages
24 license, as authorized under Section 1 of this Act, shall provide documentation to the
25 Executive Director of the Alcohol, Tobacco, and Cannabis Commission that shows not less
26 than 70% of the annual gross revenue from the business operated under both licenses is
27 derived from the sale of other tobacco products and related accessories:
28(a)   Notwithstanding § 4–1002(d) of the Alcoholic Beverages and Cannabis Article,
29 as enacted by Section 1 of this Act, a local alcoholic beverages license held by a tobacconist
30 prior to July 1, 2024, shall be converted to a Class C–PCL license under § 4–1002 of the
31 Alcoholic Beverages and Cannabis Article, as enacted by Section 1 of this Act, regardless of
32 whether the conversion would cause the number of Class C–PCL licenses in the jurisdiction
33 to exceed the maximum number of licenses otherwise authorized under § 4–1002(d) of the
34 Alcoholic Beverages and Cannabis Article, as enacted by Section 1 of this Act.
35(b)   A local licensing board may not suspend or revoke a converted Class C–PCL
36 license for noncompliance with sales percentages required under § 16.5–101(t) of the
  SENATE BILL 623  13
1 Business Regulation Article, as enacted by Section 1 of this Act, before July 1, 2028, at
2 which point the license holder shall demonstrate compliance with this Act.
3(c)   For purposes of determining whether a local licensing board may issue any
4 additional Class C–PCL licenses in the jurisdiction, a local licensing board shall count any
5 Class C–PCL license converted under this section toward the total number of:
6(1)    Class C–PCL licenses allowed in a single jurisdiction under § 4–1002(d)
7 of the Alcoholic Beverages and Cannabis Article, as enacted by Section 1 of this Act; and
8(2)    alcoholic beverages licenses issued in a jurisdiction if the jurisdiction
9 has local laws or regulations limiting the total amount of alcoholic beverages licenses issued
10 in the jurisdiction.
11SECTION 3. AND BE IT FURTHER ENACTED, That, the Board of License
12 Commissioners for Howard County and Baltimore County, when issuing a Class C–PCL
13 license under § 4–1002 of the Alcoholic Beverages and Cannabis Article, as enacted by
14 Section 1 of this Act, shall give preference to a licensed tobacconist that has been operating
15 in Howard County and Baltimore County, for at least the 5 years immediately preceding
16 the effective date of this Act.
17SECTION 4. AND BE IT FURTHER ENACTED, That this Act shall take effect July
18 2, 2026.
     Approved:
     ________________________________________________________________________________
  Governor.
     ________________________________________________________________________________
  President of the Senate.
     ________________________________________________________________________________
  Speaker of the House of Delegates.