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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0766*
HOUSE BILL 766
C2, A1 6lr2679
CF 6lr2156
By: Delegate A. Johnson
Introduced and read first time: February 4, 2026
Assigned to: Government, Labor, and Elections
A BILL ENTITLED
AN ACT concerning 1
Retail Tobacco Businesses and Establishment of a Premium Cigar Lounge 2
Alcoholic Beverages License 3
(Maryland Premium Cigar Lounge Act of 2026) 4
FOR the purpose of establishing a Class C–PCL (premium cigar lounge) alcoholic beverages 5
license for use in conjunction with a certain tobacco products retailer license; 6
authorizing a local licensing board to issue the license; prohibiting a county clerk 7
from issuing a certain tobacco products retailer license if th e location is adjacent to 8
a health care facility or a child care facility; exempting a holder of a certain tobacco 9
products retailer license from the Clean Indoor Air Act; requiring the holder of 10
certain licenses to submit an annual report to the Executive Director of the Alcohol, 11
Tobacco, and Cannabis Commission; and generally relating to retail tobacco 12
businesses and alcoholic beverages licenses. 13
BY adding to 14
Article – Alcoholic Beverages and Cannabis 15
Section 4–1002 16
Annotated Code of Maryland 17
(2024 Replacement Volume and 2025 Supplement) 18
BY repealing and reenacting, with amendments, 19
Article – Business Regulation 20
Section 16.5–204(b) 21
Annotated Code of Maryland 22
(2024 Replacement Volume and 2025 Supplement) 23
BY repealing and reenacting, without amendments, 24
Article – Health – General 25
Section 24–504 26
Annotated Code of Maryland 27
(2023 Replacement Volume and 2025 Supplement) 28
2 HOUSE BILL 766
BY repealing and reenacting, with amendments, 1
Article – Health – General 2
Section 24–505 3
Annotated Code of Maryland 4
(2023 Replacement Volume and 2025 Supplement) 5
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 6
That the Laws of Maryland read as follows: 7
Article – Alcoholic Beverages and Cannabis 8
4–1002. 9
(A) IN THIS SECTION, “TOBACCONIST” MEANS A RETAIL TOBACCO BUSINESS 10
THAT HOLDS A TOBACCO NIST LICENSE UNDER § 16.5–204 OF THE BUSINESS 11
REGULATION ARTICLE. 12
(B) THERE IS A CLASS C–PCL (PREMIUM CIGAR LOUNGE) LICENSE. 13
(C) (1) A LOCAL LICENSING BOAR D MAY ISSUE THE LICE NSE TO A 14
TOBACCONIST IF: 15
(I) THE TOBACCONIST OPER ATES AN ESTABLISHMEN T IN 16
WHICH PREMIUM CIGARS AND PIPE TOBACCO ARE SOLD AT RETAIL FOR 17
ON–PREMISES AND OFF–PREMISES USE; AND 18
(II) THE TOBACCONIST MEET S THE REQUIREMENTS O F THIS 19
SECTION. 20
(2) (I) A LOCAL LICENSING BOARD MAY ISSUE ONE CLASS C–PCL 21
LICENSE PER 150,000 RESIDENTS OF A COUNTY. 22
(II) IF A COUNTY HAS FEWER THAN 150,000 RESIDENTS, A 23
LOCAL LICENSING BOARD MAY ISSUE ONE CLASS C–PCL LICENSE IN THE COUNTY. 24
(D) THE LICENSE AUTHORIZE S THE HOLDER TO ALLO W A CUSTOMER T O 25
CONSUME ALCOHOLIC BEVERAGES ON THE PREMISES MONDAY THROUGH SUNDAY 26
FROM 10 A.M. TO 1 A.M. THE FOLLOWING DAY IF: 27
(1) THE ALCOHOLIC BEVERAGES ARE BROUGHT TO THE PREMISES BY 28
THE CUSTOMER; 29
HOUSE BILL 766 3
(2) THE CUSTOMER PURCHASES AND CONSUMES A PRODUCT SOLD BY 1
THE LICENSE HOLDER DURING THE TIME THE CUSTOMER IS ON THE PREMISES; AND 2
(3) THE LICENSE HOLDER H AS AT LEAST ONE EMPL OYEE PRESENT 3
AND WORKING WHO IS CERTIFIED IN AN ALCOHOL AWARENESS PROGRAM UNDER § 4
4–505 OF THIS TITLE. 5
(E) (1) THE LICENSED PREMISES IS EXEMPT FROM THE REQUIREMENTS 6
OF THE CLEAN INDOOR AIR ACT UNDER § 24–505 OF THE HEALTH – GENERAL 7
ARTICLE. 8
(2) A LOCAL LICENSING BOARD SHALL REQUIRE: 9
(I) A LICENSE APPLICATIO N TO INCLUDE A BUILD ING PLAN 10
DEMONSTRATING SUFFICIENT AIR FILTRATION AND EXHAUST; 11
(II) A LICENSE HOLDER TO DISPLAY IN A CONSPICUOUS PLACE 12
THAT SMOKING IS ALLOWED ON THE PREMISES; AND 13
(III) EACH EMPLOYEE OF A LICENSED ESTABLISHMENT TO SIGN 14
AN ACKNOWLEDGMENT THAT THE EMPLOYEE WILL BE SUBJECTED TO SECONDHAND 15
SMOKE. 16
(F) THE LICENSE HOLDER SHALL: 17
(1) HAVE AVERAGE DAILY R ECEIPTS FROM THE SAL E OF PREMIUM 18
CIGARS, PIPE TOBACCO, AND RELATED ACCESSORIES THAT ARE AT LEAS T 70% OF 19
THE TOTAL DAILY RECEIPTS FROM THE ESTABLISHMENT; AND 20
(2) ANNUALLY SUBMIT TO T HE EXECUTIVE DIRECTOR AND THE 21
LOCAL LICENSING BOAR D, IN A FORM THE EXECUTIVE DIRECTOR REQUIRES , A 22
SALES RATIO COMPLIANCE REPORT. 23
(G) THE ANNUAL LICENSE FEE IS $100. 24
Article – Business Regulation 25
16.5–204. 26
(b) (1) [The] EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS 27
SUBSECTION, THE clerk of the circuit court shall issue to each applicant who meets the 28
requirements of this subtitle a license to act as an other tobacco products retailer or a 29
tobacconist. 30
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(2) THE CLERK MAY NOT ISSUE A LICENSE TO ACT AS A TOBACCONIST 1
UNDER THIS SUBSECTION IF THE PLACE OF BUSINESS LISTED ON THE APPLICATION 2
FOR THE LICENSE IS A DJACENT TO A LICENSE D HEALTH CARE FACILI TY OR 3
LICENSED CHILD CARE FACILITY. 4
Article – Health – General 5
24–504. 6
Except as provided in § 24 –505 of this subtitle, beginning on February 1, 2008, a 7
person may not smoke or vape in: 8
(1) An indoor area open to the public; 9
(2) An indoor place in which meetings are open to the public in accordance 10
with Title 3 of the General Provisions Article; 11
(3) A government –owned or government –operated means of mass 12
transportation including buses, vans, trains, taxicabs, and limousines; or 13
(4) An indoor place of employment. 14
24–505. 15
(A) This subtitle does not apply to: 16
(1) Private homes, residences, including residences used as a business or 17
place of employment, unless being used by a person who is licensed or registered under 18
Title 5, Subtitle 5 of the Family Law Article to provide child care, and private vehicles, 19
unless being used for the public transportation of children, or as part of health care or child 20
care transportation; 21
(2) A hotel or motel room rented to one or more guests as long as the total 22
percent of hotel or motel rooms being so used does not exceed 25%; 23
(3) A retail tobacco business that is a sole proprietorship, limited liability 24
company, corporation, partnership, or other enterprise, in which: 25
(i) The primary activity is the retail sale of tobacco products and 26
accessories; and 27
(ii) The sale of other products [is incidental ] CONSTITUTES NOT 28
MORE THAN 30% OF THE RETAIL TOBACCO BUSINESS’S GROSS ANNUAL REVENUE; 29
HOUSE BILL 766 5
(4) Any facility of a manufacturer, importer, wholesaler, or distributor of 1
tobacco products or of any tobacco leaf dealer or processor in which employees of the 2
manufacturer, importer, wholesaler, distributor, or processor work or congregate; or 3
(5) A research or educational laboratory for the purpose of conducting 4
scientific research into the health effects of environmental smoke. 5
(B) THE ALCOHOL, TOBACCO, AND CANNABIS COMMISSION SHALL 6
MAINTAIN A REGISTRY OF RETAIL TOBACCO BUSINESSES THAT ARE EXEMPT FROM 7
THIS SUBTITLE IN ACCORDANCE WITH THIS SECTION. 8
SECTION 2. AND BE IT FURTHER ENACTED, That, on or before July 1, 2028, and 9
each July 1 thereafter, a person who holds a license to act as a tobacconist under § 10
16.5–204 of the Business Regulation Article and holds a Class C –PCL alcoholic beverages 11
license, as authorized under Section 1 of this Act, shall provide documentation to the 12
Executive Director of the Alcohol, Tobacco, and Cannabis Commission that shows not less 13
than 70% of the annual gross revenue from the business operated under both licenses is 14
derived from the sale of other tobacco products and related accessories. 15
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July 16
2, 2026. 17