SB 959

SENATE BILL 959
     A2  6lr3207
  CF HB 1526
     By: Carroll County Senators
     Introduced and read first time: February 10, 2026
     Assigned to: Rules
  A BILL ENTITLED
1 AN ACT concerning
2Carroll County – Alcoholic Beverages – Class 1 Distillery On–Premises
3Consumption Permit
4 FOR the purpose of establishing in Carroll County a Class 1 distillery on–premises
5      consumption permit; authorizing the Board of License Commissioners for Carroll
6      County to issue the permit to a holder of a Class 1 distillery license; authorizing the
7      holder of the permit to sell certain food, nonalcoholic beverages, and alcoholic
8      beverages for on–premises consumption; and generally relating to Class 1 distillery
9      on–premises consumption permits in Carroll County.
10 BY repealing and reenacting, without amendments,
11Article – Alcoholic Beverages and Cannabis
12Section 2–202(a), (e), and (i) and 16–102
13Annotated Code of Maryland
14(2024 Replacement Volume and 2025 Supplement)
15 BY repealing and reenacting, with amendments,
16Article – Alcoholic Beverages and Cannabis
17Section 16–401
18Annotated Code of Maryland
19(2024 Replacement Volume and 2025 Supplement)
20 BY adding to
21      Article – Alcoholic Beverages and Cannabis
22      Section 16–406
23      Annotated Code of Maryland
24      (2024 Replacement Volume and 2025 Supplement)
25SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
26 That the Laws of Maryland read as follows:
     EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
  [Brackets] indicate matter deleted from existing law.
  *sb0959*
2SENATE BILL 959
1Article – Alcoholic Beverages and Cannabis
2 2–202.
3(a)    There is a Class 1 distillery license.
4(e)    Subject to subsection (f) of this section, a license holder may conduct the
5 activities specified in subsections (c)(5) and (i)(2) of this section from 10 a.m. to 10 p.m. each
6 day.
7(i)    (1)    A local licensing board may grant an on–site consumption permit for
8 use at the location of the Class 1 distillery license to a holder of a Class 1 distillery license.
9(2)   (i)   The permit authorizes the holder to sell mixed drinks made from
10 liquor that the holder produces that is mixed with other nonalcoholic ingredients for
11 on–premises consumption.
12(ii)   The holder may not use more than an aggregate of 7,750 gallons
13 annually of liquor the holder produces for mixed drinks sold under subparagraph (i) of this
14 paragraph.
15(3)    A local licensing board:
16(i)     may establish and charge a permit fee; and
17(ii)    shall require the permit holder to:
181.    comply with the alcohol awareness requirements under §
19 4–505 of this article; and
202.    abide by all applicable trade practice restrictions.
21 16–102.
22This title applies only in Carroll County.
23 16–401.
24(a)    The following sections of Title 2, Subtitle 2 (“Manufacturer’s Licenses”) of
25 Division I of this article apply in the county without exception or variation:
26(1)    § 2–201 (“Issuance by Comptroller”);
27(2)    [§ 2–202 (“Class 1 distillery license”);
28(3)]   § 2–203 (“Class 9 limited distillery license”);
  SENATE BILL 959  3
1[(4)] (3)    § 2–204 (“Class 2 rectifying license”);
2[(5)] (4)    § 2–205 (“Class 3 winery license”);
3[(6)] (5)    § 2–207 (“Class 5 brewery license”);
4[(7)] (6)    § 2–210 (“Class 8 farm brewery license”);
5[(8)] (7)    § 2–211 (“Residency requirement”);
6[(9)] (8)    § 2–212 (“Additional licenses”);
7[(10)] (9)   § 2–213 (“Additional fees”);
8[(11)] (10) § 2–214 (“Sale or delivery restricted”);
9[(12)] (11) § 2–216 (“Interaction between manufacturing entities and
10 retailers”);
11[(13)] (12) § 2–217 (“Distribution of alcoholic beverages — Prohibited
12 practices”); and
13[(14)] (13) § 2–218 (“Restrictive agreements between producers and
14 retailers — Prohibited”).
15(b)    Section 2–215 (“Beer sale on credit to retail dealer prohibited”) of Division I of
16 this article does not apply in the county.
17(c)    The following sections of Title 2, Subtitle 2 (“Manufacturer’s Licenses”) of
18 Division I of this article apply in the county:
19§ 2–202 (“CLASS 1 DISTILLERY LICENSE”), SUBJECT TO § 16–406
  (1)
20 OF THIS SUBTITLE;
21(2)    § 2–206 (“Class 4 limited winery license”), subject to § 16–403 of this
22 subtitle;
23[(2)] (3)       § 2–208 (“Class 6 pub–brewery license”), subject to § 16–404 of
24 this subtitle; and
25[(3)] (4)    § 2–209 (“Class 7 micro–brewery license”), subject to § 16–405 of
26 this subtitle.
27 16–406.
4SENATE BILL 959
1      (A)   THERE IS A CLASS 1 DISTILLERY ON–SITE CONSUMPTION PERMIT.
2      (B)   THE PERMIT MAY BE ISSUED TO A HOLDER OF A CLASS 1 DISTILLERY
3 LICENSE.
4      (C)  THE PERMIT SERVES AS THE ON–PREMISES CONSUMPTION PERMIT
5 REQUIRED UNDER § 2–202(E) AND (I) OF THIS ARTICLE.
6      (D)   THE PERMIT AUTHORIZES THE HOLDER TO SELL:
7(1)   FOOD;
8(2)   NONALCOHOLIC BEVERAGES; AND
9(3) ALCOHOLIC BEVERAGES, INCLUDING BRANDY, RUM, WHISKEY,
10 AND NEUTRAL SPIRITS THAT ARE DISTILLED, RECTIFIED, BLENDED, AND BOTTLED
11 AT THE DISTILLERY FOR ON– AND OFF–PREMISES CONSUMPTION TO THE EXTENT
12 THE PERMIT HOLDER IS AUTHORIZED UNDER THE CLASS 1 DISTILLERY LICENSE.
13      (E)  THE AUTHORIZATION TO SELL FOOD AND NONALCOHOLIC BEVERAGES
14 UNDER THIS SECTION IS SUBJECT TO APPROVAL BY THE CARROLL COUNTY HEALTH
15 DEPARTMENT.
16      (F)   AN APPLICATION FOR A PERMIT UNDER THIS SECTION SHALL INCLUDE
17 A DIAGRAM OF THE PROPOSED AREA FOR CONSUMPTION UNDER THE PERMIT AND
18 SHOW CLEAR DELINEATION FROM THE MANUFACTURING AND PROCESSING
19 FACILITIES.
20      (G)   THE BOARD SHALL ADOPT REGULATIONS TO CARRY OUT THIS SECTION
21 AND TO SET THE ANNUAL PERMIT FEE.
22SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July
23 1, 2026.