SB 1008

SENATE BILL 1008
     A3, A1  6lr2699
     By: Senator Hershey
     Constitutional Requirements Complied with for Introduction in the last 35 Days of Session
     Introduced and read first time: February 28, 2026
     Assigned to: Rules
  A BILL ENTITLED
1 AN ACT concerning
2   Alcohol and Cannabis – Cannabinoid Beverages Off–Premises Sales Permit –
3Establishment
4 FOR the purpose of authorizing the holder of a Class 1 wholesaler’s license to acquire and
5      deliver, under certain circumstances, cannabinoid beverages to the holder of an
6      alcoholic beverages license with an off–sale privilege that has been issued a certain
7      permit; authorizing a local board of license commissioners to issue the permit to a
8      holder of an alcoholic beverages license with an off–sale privilege, which authorizes
9      the holder to sell cannabinoid beverages for off–premises consumption, subject to
10      certain limitations; altering the distribution of the sales and use tax collected from
11      the sale of cannabinoid beverages; exempting certain cannabinoid beverage sales
12      involving a Class 1 wholesaler from the sales and use tax; and generally relating to
13      cannabinoid beverages off–premises sales permits.
14 BY repealing and reenacting, without amendments,
15Article – Alcoholic Beverages and Cannabis
16Section 1–101(a) and (d), 2–315(a), 36–101(a), and 36–1102(a)
17Annotated Code of Maryland
18(2024 Replacement Volume and 2025 Supplement)
19 BY adding to
20      Article – Alcoholic Beverages and Cannabis
21      Section 1–101(c–1) and 4–1108
22      Annotated Code of Maryland
23      (2024 Replacement Volume and 2025 Supplement)
24 BY repealing and reenacting, with amendments,
25Article – Alcoholic Beverages and Cannabis
26Section 2–302, 2–310, 2–313, 2–314, 2–315(b) and (c), 2–316, 36–202, and 36–1102(b)
27Annotated Code of Maryland
     EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
  [Brackets] indicate matter deleted from existing law.
  *sb1008*
2SENATE BILL 1008
1(2024 Replacement Volume and 2025 Supplement)
2 BY repealing
3Article – Alcoholic Beverages and Cannabis
4Section 36–101(c–1)
5Annotated Code of Maryland
6(2024 Replacement Volume and 2025 Supplement)
7 BY repealing and reenacting, with amendments,
8Article – Tax – General
9Section 2–1302.2
10Annotated Code of Maryland
11(2022 Replacement Volume and 2025 Supplement)
12(As enacted by Chapters 604 and 605 of the Acts of the General Assembly of 2025)
13 BY repealing and reenacting, without amendments,
14Article – Tax – General
15Section 11–104(k)
16Annotated Code of Maryland
17(2022 Replacement Volume and 2025 Supplement)
18 BY repealing and reenacting, with amendments,
19Article – Tax – General
20Section 11–245
21Annotated Code of Maryland
22(2022 Replacement Volume and 2025 Supplement)
23SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
24 That the Laws of Maryland read as follows:
25Article – Alcoholic Beverages and Cannabis
26 1–101.
27(a)   In this article the following words have the meanings indicated.
28     (C–1) “CANNABINOID BEVERAGE” MEANS A BEVERAGE INTENDED FOR
29 HUMAN CONSUMPTION BY ORAL INGESTION THAT:
30(1)   IS SUITABLE FOR BEVERAGE PURPOSES;
31(2)  CONTAINS 5 MILLIGRAMS OR LESS OF TETRAHYDROCANNABINOL,
32 AS DEFINED IN § 36–1102 OF THIS ARTICLE, PER SERVING;
33(3) IS CONTAINED AS A SINGLE–SERVING PRODUCT, AS DEFINED IN §
34 36–101 OF THIS ARTICLE;
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1(4) IS LAWFULLY PRODUCED BY A CANNABIS LICENSEE, AS DEFINED
2 IN § 36–101 OF THIS ARTICLE; AND
3(5)    COMPLIES WITH:
4(I)  THE LABORATORY TESTING STANDARDS ESTABLISHED
5 UNDER § 36–203 OF THIS ARTICLE; AND
6(II)
  THE PACKAGING AND LABELING STANDARDS ESTABLISHED
7 UNDER §§ 36–203 AND 36–203.1 OF THIS ARTICLE.
8(d)   (1)    “Cannabis” means the plant Cannabis sativa L. and any part of the
9 plant, including all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of
10 isomers, whether growing or not, with a delta–9–tetrahydrocannabinol concentration
11 greater than 0.3% on a dry weight basis.
12(2)    “Cannabis” includes cannabis products, seeds, seedlings, immature
13 plants, and clones.
14(3)   “Cannabis” does not include hemp or hemp products, as defined in §
15 14–101 of the Agriculture Article.
16 2–302.
17(a)    There is a Class 1 beer, wine, [and] liquor, AND CANNABINOID BEVERAGE
18 wholesaler’s license.
19(b)    The license authorizes the license holder to:
20(1)    (I)     acquire beer, wine, and liquor from:
21[(i)]   1.   a license holder that is authorized to sell and deliver the
22 beer, wine, and liquor to a wholesaler; and
23[(ii)] 2.    a holder of a nonresident dealer’s permit or a resident
24 dealer’s permit that is authorized to sell and deliver beer, wine, and liquor; and
25[(2)] (II)     sell and deliver beer, wine, and liquor from the licensed premises
26 to:
27[(i)]   1.    a license holder or permit holder in the State; and
28[(ii)] 2.     an authorized person outside the State; AND
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1(2)    (I)
  ACQUIRE CANNABINOID BEVERAGES FROM A LICENSED
2 CANNABIS PROCESSOR; AND
3(II)
  DELIVER CANNABINOID BEVERAGES TO THE HOLDER OF AN
4 ALCOHOLIC BEVERAGES LICENSE WITH AN OFF–SALE PRIVILEGE THAT HAS BEEN
5 ISSUED A PERMIT UNDER § 4–1108 OF THIS ARTICLE.
6(c)    The annual license fee is $2,000.
7(d)    The license holder may use an additional location for the warehousing, sale,
8 and delivery of beer, wine, [and] liquor, AND CANNABINOID BEVERAGES:
9(1)    if approved by the Executive Director following submission of a
10 separate application for each location; and
11(2)    on the payment of a $2,000 fee for each additional location.
12 2–310.
13(a)    This section does not apply to a holder of a nonresident winery permit.
14(b)    Before a holder of a wholesaler’s license may sell and deliver alcoholic
15 beverages OR CANNABINOID BEVERAGES acquired by the wholesaler to a holder of a retail
16 license, the alcoholic beverages AND CANNABINOID BEVERAGES shall come to rest on the
17 licensed premises of the wholesaler.
18 2–313.
19(a)    Subject to subsection (b) of this section, a holder of a wholesaler’s license may
20 not sell or deliver alcoholic beverages OR CANNABINOID BEVERAGES to a person in the
21 State that does not hold a license or permit under this article.
22(b)    This section does not prohibit a holder of a Class 4 limited winery license and
23 a Class 6 limited wine wholesaler’s license from also holding a Class A light wine license or
24 a Class A wine license issued under Division II of this article.
25 2–314.
26(a)A holder of a wholesaler’s license may not sell beer OR CANNABINOID
27 BEVERAGES to a retail dealer on terms other than for cash on delivery.
28(b)   A suit or civil action to enforce or collect a claim for credit extended or enforce
29 payment of a check given for payment in violation of this section may not be maintained in
30 the State.
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1(c)    A person that violates this section is subject to the penalties provided in §
2 6–402 of this article.
3 2–315.
4(a)      (1)   In this section the following words have the meanings indicated.
5(2)   “Advertisement” includes a graphic or nongraphic sign, display, poster,
6 and placard.
7(3)   “Wholesaling entity” means:
8(i)    a holder of a wholesaler’s license or a person connected with the
9 business of the holder; or
10(ii)   a nonresident dealer or resident dealer of alcoholic beverages.
11(b)  (1)   Except as provided in paragraph (2) of this subsection, a wholesaling
12 entity may not have a financial interest in:
13(i)
  the premises on or in which a license holder sells alcoholic
14 beverages OR CANNABINOID BEVERAGES at retail; or
15(ii)   a business that a license holder conducts.
16(2)    A holder of a Class 6 limited wine wholesaler’s license may have a
17 financial interest in not more than one Class A licensed premises.
18(3)     A wholesaling entity may not lend money or any other thing of value,
19 make a gift, or offer a gratuity to a retail dealer.
20(4)    A retail dealer may not accept, receive, or make use of money, a gift, or
21 an advertisement provided by a wholesaling entity or become indebted to a wholesaling
22 entity except for the purchase of alcoholic beverages, CANNABINOID BEVERAGES, and
23 allied products purchased for resale.
24(5)  A wholesaling entity other than a wholesaler of beer [and], malt
25 beverages, AND CANNABINOID BEVERAGES may not provide an advertisement to a retail
26 dealer.
27(c)      (1)   This subsection applies only to brewed products AND CANNABINOID
28 BEVERAGES.
29(2)    (i)    Subject to subparagraph (iii) of this paragraph, a nonresident
30 dealer, resident dealer, or [beer] wholesaler may not provide to a retail license holder an
31 advertisement that:
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11.    is worth more than $150; and
22. advertises the beer [or], malt products, OR
3 CANNABINOID BEVERAGES of a particular brewer, nonresident dealer, resident dealer,
4 [or] beer wholesaler, OR LICENSED CANNABIS PROCESSOR.
5(ii)  An advertisement provided in accordance with this subsection
6 shall contain brand information that is prominent, permanent, and equal to the life and
7 value of the utilitarian character of the advertising item.
8(iii) An advertisement that is manufactured by a [beer] wholesaler
9 and provided to the holder of a retail license may not be worth more than $50 to the holder
10 of the retail license where the advertisement advertises the beer [or], malt products, OR
11 CANNABINOID BEVERAGES of the [beer] wholesaler.
12 2–316.
13(a)   The purpose of this section is to eliminate the undue stimulation of the sale of
14 alcoholic beverages AND CANNABINOID BEVERAGES and the practice of wholesalers
15 granting secret discounts, rebates, allowances, free goods, or other inducements to selected
16 license holders that contribute to a disorderly distribution of alcoholic beverages AND
17 CANNABINOID BEVERAGES.
18(b)  (1)    A licensed wholesaler, resident dealer, or nonresident winery permit
19 holder may not discriminate directly or indirectly in price, discounts, or the quality of
20 merchandise sold between:
21(i)     one dispensary and another dispensary;
22(ii)    one wholesaler and another wholesaler; or
23(iii) one retailer and another retailer that purchases alcoholic
24 beverages OR CANNABINOID BEVERAGES that bear the same brand and trade name, and
25 are similar in age and quality.
26(2)    A nonresident dealer, resident dealer, nonresident winery permit
27 holder, or nonresident unlicensed manufacturer may not use or promote the use of a
28 practice prohibited under paragraph (1) of this subsection to sell or distribute alcoholic
29 beverages to or through a licensed manufacturer, licensed wholesaler, or county dispensary.
30(c)    A supplier, nonresident dealer, resident dealer, nonresident winery permit
31 holder, or wholesaler may not make a discount, rebate, or depletion allowance that is
32 offered on a product dependent on the pricing policy or practice of the license holder who is
33 invoiced for the product.
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1(d)   (1)    This section does not restrict a wholesaler, nonresident dealer, resident
2 dealer, or nonresident winery permit holder from limiting the quantity of alcoholic
3 beverages OR CANNABINOID BEVERAGES to be sold to a license holder under a voluntary
4 or compulsory rationing plan.
5(2)    A wholesaler, nonresident dealer, resident dealer, or nonresident
6 winery permit holder is not required to sell to all license holders from whom orders are
7 received.
8 4–1108.
9(A)    THIS SECTION APPLIES ONLY IN A JURISDICTION WHERE THE LOCAL
10 LICENSING BOARD HAS ADOPTED REGULATIONS TO AUTHORIZE THE DELIVERY OF
11 CANNABINOID BEVERAGES TO THE HOLDER OF AN ALCOHOLIC BEVERAGES LICENSE
12 WITH AN OFF–SALE PRIVILEGE.
13(B)    A LOCAL LICENSING BOARD MAY ISSUE A CANNABINOID BEVERAGES
14 OFF–PREMISES SALES PERMIT TO THE HOLDER OF AN ALCOHOLIC BEVERAGES
15 LICENSE WITH AN OFF–SALE PRIVILEGE IN THE COUNTY.
16(C)    THE PERMIT AUTHORIZES THE HOLDER TO:
17(1) RECEIVE SHIPMENTS OF CANNABINOID BEVERAGES FROM THE
18 HOLDER OF A CLASS 1 WHOLESALER’S LICENSE; AND
19(2)
  SELL CANNABINOID BEVERAGES TO INDIVIDUALS AT LEAST 21
20 YEARS OLD FOR OFF–PREMISES CONSUMPTION.
21     (D)      (1)    A LOCAL LICENSING BOARD SHALL DETERMINE THE TERM OF THE
22 PERMIT.
23(2)    THE HOURS OF SALE FOR A CANNABINOID BEVERAGES
24 OFF–PREMISES SALES PERMIT ARE THE SAME AS THOSE FOR THE UNDERLYING
25 LICENSE.
26(E)  THE EXECUTIVE DIRECTOR MAY ADOPT REGULATIONS TO ENFORCE
27 THIS SECTION.
28 36–101.
29(a)    In this title the following words have the meanings indicated.
30[(c–1) “Cannabinoid beverage” means a beverage intended for human consumption
31 by oral ingestion that:
8SENATE BILL 1008
1(1)   is suitable for beverage purposes;
2(2)     contains 5 milligrams or less of tetrahydrocannabinol, as defined in §
3 36–1102 of this title, per serving;
4(3)   is contained as a single–serving product;
5(4)   is lawfully produced by a cannabis licensee; and
6(5)   complies with:
7(i)    the laboratory testing standards established under § 36–203 of
8 this title; and
9(ii)    the packaging and labeling standards established under §§
10 36–203 and 36–203.1 of this title.]
11 36–202.
12(a)    The Administration shall:
13(1)    develop and maintain a seed–to–sale tracking system that tracks
14 cannabis from either the seed or immature plant stage until the cannabis is sold to a
15 patient, caregiver, HOLDER OF A CLASS 1 WHOLESALER’S LICENSE ISSUED UNDER §
16 2–302 OF THIS ARTICLE, or consumer;
17(2)   conduct financial and criminal background investigations of any person
18 who submits an application for a cannabis license or a cannabis licensee, as required under
19 this title;
20(3)    develop a process for consumers and qualifying patients to purchase
21 clones and seeds, seedlings, stalks, roots, and stems of the cannabis plant for cultivation in
22 accordance with § 5–601.2 of the Criminal Law Article;
23(4)    solicit, evaluate, and issue or deny applications for cannabis licenses
24 and cannabis registrations, including:
25(i)    licenses to operate a cannabis business in accordance with this
26 title; and
27(ii)   registration for independent testing laboratories, transporters,
28 security guard companies, waste disposal companies, and cannabis nurseries;
29(5)   award or deny:
  SENATE BILL 1008  9
1(i)    a license to operate a cannabis business in accordance with this
2 title; and
3(ii)   registration to independent testing laboratories, transporters,
4 security guard companies, waste disposal companies, cannabis nurseries, and any other
5 type of cannabis business authorized by the Administration;
6(6)   conduct announced and unannounced inspections of any business
7 licensed or registered under this title to ensure compliance with this title;
8(7)    after a determination that a violation of this title or a regulation
9 adopted under this title has occurred, suspend, fine, restrict, or revoke cannabis licenses
10 and cannabis registrations, whether active, expired, or surrendered, or impose any other
11 penalty authorized by this title or any regulation adopted under this title;
12(8)   (i)    give notice and hold a hearing in accordance with Title 10,
13 Subtitle 2 of the State Government Article, for any:
141.    contested cannabis license or registration denial; or
152.    violation of this title or any regulation adopted under this
16 title;
17(ii)   administer oaths in a proceeding under this section; and
18(iii) subject to subsection (b)(3) of this section, allow the person
19 against whom the action is contemplated to be represented at the hearing by counsel;
20(9)   adopt regulations necessary to carry out its duties under this title; and
21(10) perform any other power authorized or duty required under this title or
22 any other provision of State law.
23(b)     The Administration may:
24(1)   issue a subpoena for the attendance of a witness to testify or the
25 production of evidence in connection with:
26(i)    any disciplinary action under this title; or
27(ii)   any investigation or proceeding initiated for an alleged violation
28 of this title;
29(2)   delegate the hearing authority authorized under subsection (a)(8) of
30 this section to an employee within the Administration;
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1(3)   if, after due notice, the person against whom a disciplinary action is
2 contemplated does not appear at a hearing, hear and determine the matter; and
3(4)    after a hearing under this subsection, fine a cannabis licensee or
4 suspend, restrict, or revoke a cannabis license or a cannabis registration for a violation of:
5(i)    this title or a regulation adopted under this title; or
6(ii)  any other State law or regulation related to cannabis or the
7 operations of a cannabis business or registrant.
8(C)    (1)    THE SEED–TO–SALE TRACKING OF A CANNABINOID BEVERAGE
9 SHALL END WHEN A LICENSED CANNABIS PROCESSOR CONVEYS A CANNABINOID
10 BEVERAGE TO THE HOLDER OF A CLASS 1 WHOLESALER’S LICENSE.
11(2)
  WHEN THE HOLDER OF A CLASS 1 WHOLESALER’S LICENSE TAKES
12 POSSESSION OF A CANNABINOID BEVERAGE FOR DISTRIBUTION, ENFORCEMENT
13 AUTHORITY OVER THE CANNABINOID BEVERAGE SHALL TRANSFER TO THE
14 EXECUTIVE DIRECTOR.
15 36–1102.
16(a)    (1)    In this section the following words have the meanings indicated.
17(2)    “Hemp” has the meaning stated in § 14–401 of the Agriculture Article.
18(3)    “Tetrahydrocannabinol” means:
19(i) any  tetrahydrocannabinol,  including  delta
20 –8–tetrahydrocannabinol,        delta–9–tetrahydrocannabinol,  and  delta
21 –10–tetrahydrocannabinol, regardless of how derived;
22(ii)  any other cannabinoid,  except    cannabidiol     that    the
23 Administration determines to cause intoxication; and
24(iii) any other chemically similar compound, substance, derivative, or
25 isomer of tetrahydrocannabinol, as identified by the Administration.
26(4)    “Tincture” means a solution that is:
27(i)    dissolved in alcohol, glycerin, or vegetable oil; and
28(ii)   distributed in a dropper bottle of 4 ounces or less.
29      (b)   (1)    A person may not sell or distribute a product intended for human
30 consumption or inhalation that contains more than 0.5 milligrams of tetrahydrocannabinol
  SENATE BILL 1008  11
1 per serving or 2.5 milligrams of tetrahydrocannabinol per package unless the person is
2 licensed under § 36–401 of this title OR HOLDS A PERMIT UNDER § 4–1108 OF THIS
3 ARTICLE and the product complies with [the]:
4(i)     THE manufacturing standards established under § 36–203 of this
5 title;
6(ii)    THE laboratory testing standards established under § 36–203 of
7 this title; and
8(iii)   THE packaging and labeling standards established under §
9 36–203 of this title.
10(2)     A person may not sell or distribute a product described under
11 paragraph (1) of this subsection to an individual under the age of 21 years.
12Article – Tax – General
13 2–1302.2.
14(A)   [After] EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION,
15 AFTER making the distributions required under §§ 2–1301 through 2–1302.1 of this
16 subtitle, of the sales and use tax collected under § 11–104(k) of this article from the sale of
17 cannabis, as defined in § 1–101 of the Alcoholic Beverages and Cannabis Article, the
18 Comptroller quarterly shall distribute:
19(1)      75% of the revenues as follows:
20(i)   to the Cannabis Regulation and Enforcement Fund, established
21 under § 36–206 of the Alcoholic Beverages and Cannabis Article, an amount necessary to
22 defray the entire cost of the operations and administrative expenses of the Maryland
23 Cannabis Administration established under Title 36 of the Alcoholic Beverages and
24 Cannabis Article;
25(ii)  to the Department of Social and Economic Mobility Special Fund,
26 established under § 9–4107 of the State Government Article, an amount necessary to defray
27 the operations and administrative expenses of the Office of Social Equity within the
28 Department of Social and Economic Mobility;
29(iii)   after making the distribution required under items (i) and (ii) of
30 this item:
311.     35% to the Community Reinvestment and Repair Fund
32 under § 1–322 of the Alcoholic Beverages and Cannabis Article for fiscal years 2024 through
33 2033;
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12.     5% to counties, which shall be allocated to each county
2 based on the percentage of revenue collected from that county, except that a county shall
3 distribute to a municipality located in the county 50% of the allocation received under this
4 item that is attributable to the sales and use tax revenue generated by a dispensary located
5 in that municipality;
63.    5% to the Cannabis Public Health Fund established under
7 § 13–4505 of the Health – General Article; and
84.    for fiscal years 2024 through 2028, 5% to the Cannabis
9 Business Assistance Fund established under § 5–1901 of the Economic Development
10 Article; and
11(iv) any balance remaining after the distributions required under
12 items (i), (ii), and (iii) of this item to the General Fund of the State; and
13(2)   25% of the revenue to the General Fund of the State.
14(B) WITHIN 10 DAYS AFTER THE END OF EACH QUARTER, THE
15 COMPTROLLER SHALL DISTRIBUTE TO THE GENERAL FUND OF THE STATE THE
16 SALES AND USE TAX COLLECTED UNDER § 11–104(K) OF THIS ARTICLE FROM THE
17 SALE OF CANNABINOID BEVERAGES, AS DEFINED IN § 1–101 OF THE ALCOHOLIC
18 BEVERAGES AND CANNABIS ARTICLE.
19 11–104.
20(k)   The sales and use tax rate for cannabis, as defined in § 1–101 of the Alcoholic
21 Beverages and Cannabis Article is:
22(1)   for fiscal years 2024 through 2025, 9%; and
23(2)   for fiscal year 2026 and each fiscal year thereafter, 12%.
24 11–245.
25The sales and use tax does not apply to the sale of:
26(1)    medical cannabis under Title 36 of the Alcoholic Beverages and
27 Cannabis Article;
28(2)    cannabis between cannabis businesses that are licensed under Title 36
29 of the Alcoholic Beverages and Cannabis Article; [or]
30(3)    cannabis between a cannabis business licensed under Title 36 of the
31 Alcoholic Beverages and Cannabis Article and a cannabis nursery registered under Title
32 36 of the Alcoholic Beverages and Cannabis Article;
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1(4) A CANNABINOID BEVERAGE BETWEEN A CANNABIS BUSINESS
2 LICENSED UNDER TITLE 36 OF THE ALCOHOLIC BEVERAGES AND CANNABIS
3 ARTICLE AND THE HOLDER OF A CLASS 1 WHOLESALER’S LICENSE ISSUED UNDER §
4 2–302 OF THE ALCOHOLIC BEVERAGES AND CANNABIS ARTICLE; OR
5(5) A CANNABINOID BEVERAGE BETWEEN THE HOLDER OF A CLASS 1
6 WHOLESALER’S LICENSE ISSUED UNDER § 2–302 OF THE ALCOHOLIC BEVERAGES
7 AND CANNABIS ARTICLE AND THE HOLDER OF AN ALCOHOLIC BEVERAGES LICENSE
8 WITH AN OFF–SALE PRIVILEGE THAT HAS BEEN ISSUED A PERMIT UNDER § 4–1108
9 OF THE ALCOHOLIC BEVERAGES AND CANNABIS ARTICLE.
10SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July
11 1, 2026.