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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
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*hb1526*
HOUSE BILL 1526
A2 6lr3204
CF SB 959
By: Carroll County Delegation
Introduced and read first time: February 13, 2026
Assigned to: Government, Labor, and Elections
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 9, 2026
CHAPTER ______
AN ACT concerning 1
Carroll County – Alcoholic Beverages – Class 1 Distillery On–Premises 2
Consumption Permit 3
FOR the purpose of establishing in Carroll County a Class 1 distillery on –premises 4
consumption permit; authorizing the Board of License Commissioners for Carroll 5
County to issue the permit to a holder of a Class 1 distillery license; authorizing the 6
holder of the permit to sell, prepare, and serve certain food, nonalcoholic beverages, 7
and alcoholic beverages for on–premises consumption; authorizing the holder of the 8
permit to use the licensed premises for events; and generally relating to Class 1 9
distillery on–premises consumption permits in Carroll County. 10
BY repealing and reenacting, without amendments, 11
Article – Alcoholic Beverages and Cannabis 12
Section 2–202(a), (e), and (i) and 16–102 13
Annotated Code of Maryland 14
(2024 Replacement Volume and 2025 Supplement) 15
BY repealing and reenacting, with amendments, 16
Article – Alcoholic Beverages and Cannabis 17
Section 16–401 18
Annotated Code of Maryland 19
(2024 Replacement Volume and 2025 Supplement) 20
BY adding to 21
Article – Alcoholic Beverages and Cannabis 22
2 HOUSE BILL 1526
Section 16–406 1
Annotated Code of Maryland 2
(2024 Replacement Volume and 2025 Supplement) 3
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 4
That the Laws of Maryland read as follows: 5
Article – Alcoholic Beverages and Cannabis 6
2–202. 7
(a) There is a Class 1 distillery license. 8
(e) Subject to subsection (f) of this section, a license holder may conduct the 9
activities specified in subsections (c)(5) and (i)(2) of this section from 10 a.m. to 10 p.m. each 10
day. 11
(i) (1) A local licensing boar d may grant an on –site consumption permit for 12
use at the location of the Class 1 distillery license to a holder of a Class 1 distillery license. 13
(2) (i) The permit authorizes the holder to sell mixed drinks made from 14
liquor that the holder produces that is mixed with other nonalcoholic ingredients for 15
on–premises consumption. 16
(ii) The holder may not use more than an aggregate of 7,750 gallons 17
annually of liquor the holder produces for mixed drinks sold under subparagraph (i) of this 18
paragraph. 19
(3) A local licensing board: 20
(i) may establish and charge a permit fee; and 21
(ii) shall require the permit holder to: 22
1. comply with the alcohol awareness requirements under § 23
4–505 of this article; and 24
2. abide by all applicable trade practice restrictions. 25
16–102. 26
This title applies only in Carroll County. 27
16–401. 28
(a) The following sections of Title 2, Subtitle 2 (“Manufacturer’s Licenses”) of 29
Division I of this article apply in the county without exception or variation: 30
HOUSE BILL 1526 3
(1) § 2–201 (“Issuance by Comptroller”); 1
(2) [§ 2–202 (“Class 1 distillery license”); 2
(3)] § 2–203 (“Class 9 limited distillery license”); 3
[(4)] (3) § 2–204 (“Class 2 rectifying license”); 4
[(5)] (4) § 2–205 (“Class 3 winery license”); 5
[(6)] (5) § 2–207 (“Class 5 brewery license”); 6
[(7)] (6) § 2–210 (“Class 8 farm brewery license”); 7
[(8)] (7) § 2–211 (“Residency requirement”); 8
[(9)] (8) § 2–212 (“Additional licenses”); 9
[(10)] (9) § 2–213 (“Additional fees”); 10
[(11)] (10) § 2–214 (“Sale or delivery restricted”); 11
[(12)] (11) § 2 –216 (“Interaction between manufacturing entities and 12
retailers”); 13
[(13)] (12) § 2 –217 (“Distribution of alcoholic beverages — Prohibited 14
practices”); and 15
[(14)] (13) § 2 –218 (“Restrictive agreements between producers and 16
retailers — Prohibited”). 17
(b) Section 2–215 (“Beer sale on credit to retail dealer prohibited”) of Division I of 18
this article does not apply in the county. 19
(c) The following sections of Title 2, Subtitle 2 (“Manufacturer’s Licenses”) of 20
Division I of this article apply in the county: 21
(1) § 2–202 (“CLASS 1 DISTILLERY LICENSE”), SUBJECT TO § 16–406 22
OF THIS SUBTITLE; 23
(2) § 2–206 (“Class 4 limited winery license”), subject to § 16 –403 of this 24
subtitle; 25
[(2)] (3) § 2–208 (“Class 6 pub –brewery license”), subject to § 16 –404 of 26
this subtitle; and 27
4 HOUSE BILL 1526
[(3)] (4) § 2–209 (“Class 7 micro–brewery license”), subject to § 16–405 of 1
this subtitle. 2
16–406. 3
(A) THERE IS A CLASS 1 DISTILLERY ON–SITE CONSUMPTION PERMIT. 4
(B) THE PERMIT MAY BE ISSUED TO A HOLDER OF A CLASS 1 DISTILLERY 5
LICENSE. 6
(C) THE PERMIT SERVES AS THE ON –PREMISES CONSUMPTION PERMIT 7
REQUIRED UNDER § 2–202(E) AND (I) OF THIS ARTICLE. 8
(D) (1) THE PERMIT AUTHORIZES THE HOLDER TO SELL , PREPARE, AND 9
SERVE: 10
(1) (I) FOOD; 11
(2) (II) NONALCOHOLIC BEVERAGES; AND 12
(3) (III) ALCOHOLIC BEVERAGES , INCLUDING BRANDY , RUM, 13
WHISKEY, AND NEUTRAL SPIRITS THAT ARE DISTILLED, RECTIFIED, BLENDED, AND 14
BOTTLED AT THE DISTILLERY FOR ON– AND OFF–PREMISES CONSUMPTION TO THE 15
EXTENT THE PERMIT HO LDER IS AUTHORIZED U NDER THE CLASS 1 DISTILLERY 16
LICENSE. 17
(E) (2) THE AUTHORIZATION TO SELL, PREPARE, AND SERVE FOOD AND 18
NONALCOHOLIC BEVERAG ES UNDER THIS SECTION SUBSECTION IS SUBJECT TO 19
APPROVAL BY THE CARROLL COUNTY HEALTH DEPARTMENT. 20
(E) (1) THE PERMIT AUTHORIZES THE HOLDER TO USE TH E LICENSED 21
PREMISES FOR EVENTS. 22
(2) ANY ON–PREMISES CONSUMPTION OF ALCOHOLIC BEVERAGES AT 23
AN EVENT HELD IN ACCORDANCE WITH PARAGRAPH (1) OF THIS SUBSECTION SHALL 24
COMPLY WITH SUBSECTION (D) OF THIS SECTION. 25
(F) AN APPLICATION FOR A PERMIT UNDER THIS SECTION SHALL INCLUDE 26
A DIAGRAM OF THE PRO POSED AREA FOR CONSU MPTION UNDER THE PER MIT AND 27
SHOW CLEAR DELINEATI ON FROM THE MANUFACT URING AND PROCESSING 28
FACILITIES. 29
HOUSE BILL 1526 5
(G) THE BOARD SHALL ADOPT REGULATIONS TO CARRY OUT THIS SECTION 1
AND TO SET THE ANNUAL PERMIT FEE. 2
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 3
1, 2026. 4
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.