Alcoholic Beverages - Class 8 Farm Brewery and Class 10 Farm Distillery Licenses

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb1590*

HOUSE BILL 1590
A1 6lr3696
CF SB 807
By: Delegate Ziegler
Introduced and read first time: February 15, 2026
Assigned to: Rules and Executive Nominations

A BILL ENTITLED

AN ACT concerning 1

Alcoholic Beverages – Class 8 Farm Brewery and Class 10 Farm Distillery 2
Licenses 3

FOR the purpose of establishing a Class 10 farm distillery license that authorizes a license 4
holder to distill, rectify, bottle, and sell at wholesale or retail distilled spirits 5
produced on the licensed farm; requiring that a holder of a Class 8 farm brewery 6
license or a Class 10 farm distillery license engage in certain agritourism activity; 7
altering certain standards and requirements for food service under a Class 8 farm 8
brewery license; providing an exception to a prohibition against issuing an alcoholic 9
beverages license for a premises that does not comply with local zoning laws for Class 10
8 farm brewery and Class 10 farm distillery licenses; authorizing the holder of a 11
Class 10 farm distillery license to apply for and obtain additional Class 10 farm 12
distillery licenses under certain circumstances and a Class 8 liquor wholesaler’s 13
license; and generally relating to Class 8 farm brewer y and Class 10 farm distillery 14
alcoholic beverages licenses. 15

BY repealing and reenacting, with amendments, 16
Article – Alcoholic Beverages and Cannabis 17
Section 1–405, 2–210, and 2–212 18
Annotated Code of Maryland 19
(2024 Replacement Volume and 2025 Supplement) 20

BY adding to 21
Article – Alcoholic Beverages and Cannabis 22
Section 2–203.1 23
Annotated Code of Maryland 24
(2024 Replacement Volume and 2025 Supplement) 25

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 26
That the Laws of Maryland read as follows: 27

2 HOUSE BILL 1590

Article – Alcoholic Beverages and Cannabis 1

1–405. 2

(a) A license may not be issued for a premises unless the premises conforms to all 3
requirements set out in this article or the Tax – General Article. 4

(b) [A] EXCEPT FOR A CLASS 8 FARM BREWERY LICENSE ISSUED UNDER § 5
2–210 OF THIS ARTICLE OR A CLASS 10 FARM DISTILLERY LICENSE ISSUED UNDER 6
§ 2–203.1 OF THIS ARTICLE, A license or an alcoholic beverages permit may not be issued 7
for a premises unless the premises conforms with all zoning laws, regulations, or ordinances 8
passed in accordance with Division I of the Land Use Article. 9

2–203.1. 10

(A) THERE IS A CLASS 10 FARM DISTILLERY LICENSE. 11

(B) THE LICENSE MAY BE IS SUED ONLY TO A HOLDE R OF A CLASS 8 FARM 12
BREWERY LICENSE. 13

(C) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , A LICENSE 14
HOLDER MAY SELL AND DELIVER SPIRITS PRODUCED ON THE LICENSED FARM TO: 15

(I) A WHOLESALER LICENSED TO SELL AND DELIVER SPIRITS IN 16
THE STATE; OR 17

(II) A PERSON IN ANOTHER STATE AUTHORIZED TO ACQUIRE 18
SPIRITS. 19

(2) THE DISTILLED SPIRITS TO BE SOLD AND DELIV ERED UNDER 20
PARAGRAPH (1) OF THIS SUBSECTION S HALL BE MANUFACTURED WITH AN 21
INGREDIENT FROM A MARYLAND AGRICULTURAL PRODUCT, INCLUDING CORN , 22
GRAIN, AND FRUIT, PRODUCED ON THE LICENSED FARM. 23

(3) THE LICENSED FARM SHALL BE: 24

(I) AN AGRIBUSINESS ENGA GED IN THE PRODUCTIO N, 25
SHOWCASING, PREPARATION, AND SALE OF FARM PRODUCTS; AND 26

(II) ACTIVELY ENGAGED IN AGRITOURISM BY EXPOS ING THE 27
PUBLIC TO FARMING AND VALUE–ADDED FARMING PRACTICES. 28

(D) A LICENSE HOLDER MAY: 29

HOUSE BILL 1590 3

(1) (I) SUBJECT TO ITEM (II) OF THIS ITEM , ESTABLISH AND 1
OPERATE A PLANT ON T HE LICENSED FARM FOR DISTILLING, RECTIFYING, AND 2
BOTTLING BRANDY, RUM, WHISKEY, ALCOHOL, AND NEUTRAL SPIRITS; 3

(II) HAVE MORE THAN ONE L ICENSE ISSUED BY THE 4
COMMISSION AT THE SAME LOCATION IF THE LICENSE HOLDER: 5

1. MAINTAINS A SINGLE BRAND AT ANY TIME FOR EACH 6
PRODUCT OF BRANDY , RUM, WHISKEY, ALCOHOL, AND NEUTRAL SPIRIT T HAT IS 7
DISTILLED, RECTIFIED, AND SOLD; AND 8

2. DOES NOT MANUFACTURE OR RECTIFY A PRODUCT OF 9
ANY OTHER BRAND FOR A SEPARATE ENTITY; 10

(III) HOLD OR OBTAIN: 11

1. A CLASS 7 LIMITED BEER WHOLESA LER’S LICENSE ; 12
OR 13

2. A CLASS 8 LIQUOR WHOLESALER’S LICENSE; 14

(2) ACQUIRE BULK ALCOHOLIC BEVERAGES FROM THE HOLDER OF A 15
DISTILLERY OR RECTIF YING LICENSE IN THE STATE OR THE HOLDER O F A 16
NONRESIDENT DEALER’S PERMIT; 17

(3) AFTER ACQUIRING AN I NDIVIDUAL STORAGE PE RMIT UNDER § 18
2–113 OF THIS TITLE, STORE PRODUCTS MANUFACTURED ON THE LICENSED FARM; 19

(4) SELL AND DELIVER THE PRODUCTS MANUFACTURED UNDER THE 20
LICENSE FOR ON–PREMISES AND OFF–PREMISES CONSUMPTION; 21

(5) CONDUCT GUIDED TOURS OF THE PORTION OF TH E LICENSED 22
FARM USED FOR DISTILLING, RECTIFYING, AND BOTTLING; 23

(6) SERVE PRODUCTS THAT ARE MANUFACTURED ON THE LICENSED 24
FARM OR BY ANOTHER M ANUFACTURER IN THE STATE TO A CONSUMER A T NO 25
CHARGE OR FOR A FEE; 26

(7) SELL OR SERVE FOOD IF THE LICENSE HOLDER: 27

(I) IS LICENSED TO OPERATE A FOOD ESTABLISHMENT UNDER 28
TITLE 21, SUBTITLE 3 OF THE HEALTH – GENERAL ARTICLE; 29

4 HOUSE BILL 1590

(II) USES A LICENSED FOOD TRUCK; 1

(III) USES A LICENSED CATERER; OR 2

(IV) IS SELLING OR SERVIN G COTTAGE INDUSTRY F OOD 3
PREPARED ON THE FARM UNDER § 21–330.1 OF THE HEALTH – GENERAL ARTICLE; 4
AND 5

(8) IN ACCORDANCE WITH PARAGRAPH (C)(3) OF THIS SECTION: 6

(I) HOST FESTIVALS; 7

(II) PROVIDE LIVE MUSIC OR OTHER ENTERTAINMENT; OR 8

(III) RENT PORTIONS OF THE LICENSED FARM TO THE PUBLIC OR 9
PRIVATE INDIVIDUALS OR GROUPS FOR FUNCTIONS OR EVENTS, INCLUDING: 10

1. BANQUETS; 11

2. WEDDINGS; 12

3. ANNIVERSARY PARTIES; 13

4. BIRTHDAY PARTIES; 14

5. FUNDRAISERS; AND 15

6. OTHER SIMILAR CELEBRATIONS OR EVENTS. 16

(E) A LICENSE HOLDER MAY NOT: 17

(1) EXCEPT AS PROVIDED IN PARAGRAPH (D)(1) OF THIS SECTION: 18

(I) HOLD OR OBTAIN A WHOLESALER’S LICENSE; OR 19

(II) OWN, OPERATE, OR BE AFFILIATED IN ANY MANNER WITH 20
ANOTHER MANUFACTURER; OR 21

(2) DISTILL, RECTIFY, BOTTLE, OR SELL MORE THAN 100,000 22
GALLONS OF BRANDY , RUM, WHISKEY, ALCOHOL, OR NEUTRAL SPIRITS EACH 23
CALENDAR YEAR. 24

(F) A CLASS 10 FARM DISTILLERY MAY BE LOCATED ONLY AT T HE PLACE 25
HOUSE BILL 1590 5

DESCRIBED IN THE LICENSE. 1

(G) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION A ND 2
NOTWITHSTANDING ANY LOCAL LAW , A LICENSE HOLDER MAY EXERCISE THE 3
PRIVILEGES OF A CLASS 10 FARM DISTILLERY LICENSE. 4

(2) THE COMMISSION HAS EXCLUS IVE REGULATORY AUTHO RITY 5
OVER THE OPERATION OF A CLASS 10 FARM DISTILLERY. 6

(H) THE ANNUAL LICENSE FEE: 7

(1) SHALL BE DETERMINED BY THE EXECUTIVE DIRECTOR; AND 8

(2) MAY NOT EXCEED $500. 9

2–210. 10

(a) There is a Class 8 farm brewery license. 11

(b) (1) Subject to paragraph (2) of this subsection, a license holder may sell 12
and deliver beer manufactured in a facility on the licensed farm or in a facility other than 13
one on the licensed farm to: 14

(i) a wholesaler licensed to sell and deliver beer in the State; or 15

(ii) a person in another state authorized to acquire beer. 16

(2) The beer to be sold and delivered under paragraph (1) of this subsection 17
shall be manufactured with an ingredient from a Maryland agricultural product, including 18
hops, grain, and fruit, produced on the licensed farm. 19

(3) THE LICENSED FARM SHALL BE: 20

(I) AN AGRIBUSINESS ENGA GED IN THE PRODUCTIO N, 21
SHOWCASING, PREPARATION, AND SALE OF FARM PRODUCTS; AND 22

(II) ACTIVELY ENGAGED IN AGRITOURISM BY EXPOS ING THE 23
PUBLIC TO FARMING AND VALUE–ADDED FARMING PRACTICES. 24

(c) A license holder may: 25

(1) (i) sell beer produced by the license holder OR ANOTHER 26
MANUFACTURER IN THE STATE for on–premises and off–premises consumption; 27

6 HOUSE BILL 1590

(ii) in an amount not exceeding 6 fluid ounces per brand, provide 1
samples of beer that the license holder produces to a consumer: 2

1. at no charge; or 3

2. for a fee; AND 4

(iii) sell or serve[: 5

1. bread and other baked goods; 6

2. chili; 7

3. chocolate; 8

4. crackers; 9

5. cured meat; 10

6. fruits (whole and cut); 11

7. hard and soft cheese (whole and cut); 12

8. salads and vegetables (whole and cut); 13

9. ice cream; 14

10. jam; 15

11. jelly; 16

12. vinegar; 17

13. pizza; 18

14. prepackaged sandwiches and other prepackaged foods 19
ready to be eaten; 20

15. soup; and 21

16. condiments; and 22

(iv) subject to subsection (e)(2) of this section, sell or serve any] food 23
if the license holder: 24

1. is licensed to operate a food establishment under Title 21, 25
Subtitle 3 of the Health – General Article; 26
HOUSE BILL 1590 7

2. USES A LICENSED FOOD TRUCK; 1

3. USES A LICENSED CATERER; OR 2

4. IS SELLING OR SERVIN G COTTAGE IND USTRY FOOD 3
PREPARED ON THE FARM UNDER § 21–330.1 OF THE HEALTH – GENERAL ARTICLE; 4

(2) store, in a segregated area approved by the Executive Director, beer 5
produced by the license holder for sale and delivery to a wholesaler licensed in the State or 6
a person outside the State authorized to acquire the beer; 7

(3) brew, bottle, or contract for not more than 15,000 barrels of beer each 8
calendar year; 9

(4) contract with the holder of a Class 2 rectifying license, a Class 5 10
brewery license, or a Class 7 mi cro–brewery license to brew and bottle beer from 11
ingredients produced on the licensed farm; 12

(5) import, export, and transport its beer in accordance with this section; 13

(6) store, brew, and bottle beer in a facility listed on a permit issued to the 14
license holder in accordance with § 2–113 of this title, for sale and delivery to a wholesaler 15
licensed in the State or a person outside the State authorized to acquire the beer, or 16
shipment back to the licensed farm, if: 17

(i) the license holder does not serve or sell beer at the warehouse; 18
and 19

(ii) the Executive Director has full access at all times to the 20
warehouse to enforce this article; [and] 21

(7) enter into a temporary delivery agreement with a distributor only for 22
delivery of beer to a beer festival or a wine and beer festival, and the return of any unused 23
beer, if: 24

(i) the festival is in a sales territory for which the license holder does 25
not have a franchise with a distributor under the Beer Franchise Fair Dealing Act in Title 26
5, Subtitle 1 of this article; and 27

(ii) the temporary delivery agreement is in writing; AND 28

(8) IN ACCORDANCE WITH SUBSECTION (B)(3) OF THIS SECTION: 29

(I) HOST FESTIVALS; 30

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(II) PROVIDE LIVE MUSIC OR OTHER ENTERTAINMENT; OR 1

(III) RENT PORTIONS OF THE LICENSED FARM TO THE PUBLIC OR 2
PRIVATE INDIVIDUALS OR GROUPS FOR FUNCTIONS OR EVENTS, INCLUDING: 3

1. BANQUETS; 4

2. WEDDINGS; 5

3. ANNIVERSARY PARTIES; 6

4. BIRTHDAY PARTIES; 7

5. FUNDRAISERS; AND 8

6. OTHER SIMILAR CELEBRATIONS OR EVENTS. 9

(d) [(1)] A Class 8 farm brewery may be located only at the place stated on the 10
license. 11

[(2) The place listed on the license shall be in compliance with § 1–405(b) of 12
this article.] 13

(e) (1) [Except as provided in ] SUBJECT TO paragraph (2) of this subsection 14
and notwithstanding any local law, a license holder may exercise the privileges of a Class 15
8 farm brewery license. 16

(2) [A license holder who sells foods under subsection (c)(1)(iv) of this 17
section shall meet the same ratio of gross receipts between food and alcoholic beverages 18
sales as a holder of a Class D beer and wine license or an equivalent license in the 19
jurisdiction, as the local licensing board determines] THE COMMISSION HAS EXCLUSIVE 20
REGULATORY AUTHORITY OVER THE OPERATION OF A CLASS 8 FARM BREWERY. 21

(3) EXCEPT AS PROVIDED IN A LOCAL FIRE SAFETY CODE, THE 22
COMMISSION MAY NOT LI MIT THE NUMBER OF VI SITORS ON THE LICENS ED 23
PREMISES. 24

(f) (1) This subsection does not apply to a permit issued under § 2–140 of this 25
title. 26

(2) A license holder at the location listed on the license may exercise the 27
RETAIL privileges of the license each day from 10 a.m. to 10 p.m. 28

(g) Except as provided in Division II of this article, a Class 8 farm brewery license 29
allows the license holder to operate 7 days a week. 30
HOUSE BILL 1590 9

(h) Nothing in this section limits the application of relevant provisions of Title 21 1
of the Health – General Article, and regulations adopted under that title, to a license holder. 2

(i) (1) A license holder may spo nsor a multibrewery activity at the location 3
issued on the license that: 4

(i) includes the products of other Maryland breweries; and 5

(ii) provides for the sale of products in the manner authorized under 6
the license. 7

(2) In a segregated area approved by the Executive Director at the location 8
listed on the license, a license holder may store the products of other Maryland breweries 9
for the multibrewery activity. 10

(3) The multibrewery activity: 11

(i) may be held from 10 a.m. to 10 p.m. each day; and 12

(ii) may not exceed 3 consecutive days. 13

(j) The annual license fee: 14

(1) shall be determined by the Executive Director; and 15

(2) may not exceed $200. 16

(k) (1) On or before December 1 each year, the Executive Director shall report 17
to the Senate FINANCE Committee [on Education, Energy, and the Environment] and the 18
House [Economic Matters ] GOVERNMENT, LABOR, AND ELECTIONS Committee, in 19
accordance with § 2–1257 of the State Government Article, the total beer production of each 20
Class 8 license holder in the preceding fiscal year, identified by jurisdiction and license 21
holder. 22

(2) Each holder of a Class 8 license shall report to the Executive Director 23
the information needed to prepare the annual report required under this subsection. 24

(3) The Executive Director shall include the information reported under 25
this subsection in the annual report submitted under § 1–316 of this article. 26

2–212. 27

(a) (1) This subsection does not apply to a Class 6 pub–brewery license. 28

(2) The holder of a distillery, FARM DISTILLERY , rectifying, winery, 29
limited winery, brewery, or farm brewery license may apply for and obtain, under a 30
10 HOUSE BILL 1590

different name, one or more additional distillery, FARM DISTILLERY, rectifying, winery, 1
limited winery, brewery, or farm brewery licenses for the same or different premises. 2

(3) (i) The holder of multiple manufacturer’s licenses at the same 3
location may allow the sampling, sales, and consumption of prod ucts produced under the 4
licenses at each of the licensed premises. 5

(ii) The sampling, sales, and consumption of products shall be 6
consistent with the authorization for each license. 7

(4) The additional licenses may be issued to different persons or u nder 8
trade names used by persons occupying all or a part of the same premises. 9

(5) A holder of a license listed in paragraph (2) of this subsection may hold 10
additional licenses listed in paragraph (2) of this subsection of the same or of a different 11
class. 12

(6) The holder of a micro –brewery license may apply for and obtain not 13
more than one additional micro–brewery license for another premises. 14

(b) (1) The holder of a rectifying or winery license may apply for and obtain a 15
wholesaler’s license of any class for the same premises or elsewhere as provided under this 16
article. 17

(2) The holder of a Class 4 limited winery license may apply for and obtain 18
a Class 6 limited wine wholesaler’s license for the same premises or elsewhere as provided 19
under this article. 20

(3) (i) The holder of a Class 5 brewery license or Class 7 micro–brewery 21
license may apply for and obtain a Class 7 limited beer wholesaler’s license in accordance 22
with this paragraph. 23

(ii) A holder of a Class 5 brewery license that was selling the holder’s 24
own beer at wholesale in the State as of January 1, 2013, may obtain a Class 7 limited beer 25
wholesaler’s license to continue to sell the holder’s own beer at wholesale in the same 26
location in an amount that is not more than 5,000 barrels annually. 27

(iii) A holder of a Class 5 brewery license that produces in aggregate 28
from all its locations not more than 45,000 barrels of beer annually may obtain a Class 7 29
limited beer wholesaler’s license and distribute not more than 5,000 barrels of its own beer 30
annually. 31

(4) A holder of one or two Class 7 micro–brewery licenses that produces in 32
aggregate from all of its locations not more than 45,000 barrels of beer annually may obtain 33
a Class 7 limited beer wholesaler’s license and distribute beer that: 34

HOUSE BILL 1590 11

(i) totals annually not more than 5,000 barrels in aggregate from all 1
of its locations; and 2

(ii) has been brewed at the location from where it is distributed. 3

(5) The holder of a Class 1 distillery license may apply for and obtain a 4
Class 8 liquor wholesaler’s license for the same premises or elsewhere as provided under 5
this article. 6

(6) The holder of a Class 9 limited distillery license OR A CLASS 10 FARM 7
DISTILLERY LICENSE may apply for and obtain a Class 8 liquor wholesaler’s license, for 8
the same premises or elsewhere as provided under this article, and distribute its own liquor. 9

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 10
1, 2026. 11