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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0075*
SENATE BILL 75
A1 6lr1125
SB 1139/24 – SRU (PRE–FILED)
By: Senator Hayes
Requested: October 8, 2025
Introduced and read first time: January 14, 2026
Assigned to: Finance
A BILL ENTITLED
AN ACT concerning 1
Alcoholic Beverages – Class A License – Food Retailers 2
FOR the purpose of authorizing a food retailer to offer to purchase a Class A license from a 3
Class A license holder under certain circumstances; authorizing a food retailer to 4
apply to a local licensing board for a Class A license under certain circumstances; 5
and generally relating to Class A alcoholic beverages licenses for food retailers. 6
BY repealing and reenacting, with amendments, 7
Article – Alcoholic Beverages and Cannabis 8
Section 4–205 and 4–303 9
Annotated Code of Maryland 10
(2024 Replacement Volume and 2025 Supplement) 11
BY adding to 12
Article – Alcoholic Beverages and Cannabis 13
Section 4–205.1 14
Annotated Code of Maryland 15
(2024 Replacement Volume and 2025 Supplement) 16
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 17
That the Laws of Maryland read as follows: 18
Article – Alcoholic Beverages and Cannabis 19
4–205. 20
(a) This section does not apply to: 21
(1) an establishment that already holds a Class A, Class B, or Class D beer 22
license, beer and wine license, or beer, wine, and liquor license; or 23
2 SENATE BILL 75
(2) a license holder that sells alcoholic beverages at discount prices. 1
(b) [A] EXCEPT AS PROVIDED IN § 4–205.1 OF THI S SUBTITLE , A local 2
licensing board may not issue a Class A, Class B, or Class D beer license, beer and wine 3
license, or beer, wine, and liquor license for use in conjunction with or on the premises of: 4
(1) a chain store; 5
(2) a supermarket; or 6
(3) a discount house. 7
4–205.1. 8
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 9
INDICATED. 10
(2) “FAIR MARKET VALUE” MEANS THE PRICE AT W HICH A CLASS A 11
LICENSE WOULD CHANGE HANDS BETWEEN A WILL ING LICENSE HOLDER A ND A 12
WILLING FOOD RETAILER WHEN: 13
(I) NEITHER PARTY IS ACTING UNDER COMPULSION; AND 14
(II) BOTH PARTIES HAVE KN OWLEDGE OF ALL OF TH E 15
RELEVANT FACTS. 16
(3) “FOOD RETAILER” MEANS A RETAIL ESTABLISHMENT THAT: 17
(I) OFFERS FOR SALE FOOD PRODUCTS IN AT LEAST FIVE OF 18
THE FOLLOWING CATEGORIES: 19
1. FRESH FRUITS AND VEGETABLES; 20
2. FRESH AND UNCOOKED M EAT, POULTRY, AND 21
SEAFOOD; 22
3. DAIRY PRODUCTS; 23
4. CANNED FOODS; 24
5. FROZEN FOODS; AND 25
6. DRY GROCERIES AND BAKED GOODS; 26
SENATE BILL 75 3
(II) ACCEPTS SUPPLEMENTAL NUTRITION ASSISTANCE 1
PROGRAM CREDITS AS PAYMENT FOR FOOD AND BEVERAGES; 2
(III) HAS A MINIMUM OF 3,200 SQUARE FEET; AND 3
(IV) EXCEPT AS PROVIDED IN DIVISION II OF THIS ARTICLE, HAS 4
A PRIMARY ENTRANCEWAY THAT IS AT LEAST: 5
1. 300 FEET FROM THE NEAREST POINT OF A PLACE OF 6
WORSHIP OR SCHOOL; AND 7
2. 100 FEET FROM ANY RESIDE NTIAL PROPERTY NOT 8
LOCATED IN THE SAME BUILDING OR STRUCTURE AS THE FOOD RETAILER. 9
(B) (1) A FOOD RETAILER LOCATE D LESS THAN 3,000 FEET FROM A 10
CLASS A LICENSE HOLDER MAY OFFER TO PURCHASE THE CLASS A LICENSE FROM 11
THE LICENSE HOLDER AT FAIR MARKET VALUE. 12
(2) A FOOD RETAILER THAT O BTAINS A LICENSE IN ACCORDANCE 13
WITH PARAGRAPH (1) OF THIS SUBSECTION M AY SELL ONLY BEER OR BEER AND 14
WINE UNDER THE LICENSE, REGARDLESS OF THE TYPE OF CLASS A LICENSE THAT 15
WAS PURCHASED. 16
(3) DEPENDING ON THE TYPE S OF LICENSES AVAILA BLE IN THE 17
JURISDICTION, THE LOCAL LICENSING BOARD SHALL ISSUE TO THE FOOD RETAILER 18
THAT OBTAINS A CLASS A LICENSE UNDER PARAGRAPH (1) OF THIS SUBSECTION: 19
(I) A CLASS A BEER LICENSE; 20
(II) A CLASS A BEER AND WINE LICENSE; OR 21
(III) A CLASS A BEER AND LIGHT WINE LICENSE. 22
(C) IF A LICENSE HOLDER D OES NOT ACCEPT A FOO D RETAILER’S OFFER, 23
THE FOOD RETAILER MA Y APPLY TO A LOCAL L ICENSING BOARD FOR A CLASS A 24
BEER OR BEER AND WINE LICENSE IN ACCO RDANCE WITH THE LOCA L LICENSING 25
BOARD’S RULES. 26
(D) (1) IF A LICENSE HOLDER ASSERTS THAT A FOOD RETAILER’S OFFER 27
WAS NOT AT FAIR MARKET VALUE, THE LICENSE HOLDER SHALL HAVE STANDING TO 28
SEEK JUDICIAL REVIEW. 29
4 SENATE BILL 75
(2) WHEN DETERMINING WHET HER A FOOD RETAILER ’S OFFER TO 1
PURCHASE A CLASS A LICENSE IS AT FAIR MARKET VALUE, THE FACT THAT A FOOD 2
RETAILER MAY NOT RECEIVE THE FULL BENEFIT OF THE LICENSE SHALL BE TAKEN 3
INTO ACCOUNT. 4
(3) AN APPLICATION FOR A CLASS A LICENSE IN ACCORDANCE WITH 5
SUBSECTION (C) OF THIS SECTION SHAL L BE STAYED PENDING A FINAL JUDICIAL 6
DETERMINATION. 7
(E) AN APPLICATION FOR A CLASS A BEER OR BEER AND WIN E LICENSE 8
MADE BY A FOOD RETAILER: 9
(1) IS PRESUMED TO BE IN THE BEST INTEREST OF THE COMMUNITY; 10
AND 11
(2) MAY NOT BE DENIED FOR ANY RE ASON OTHER THAN A RE ASON 12
TRADITIONALLY CONSIDERED BY A LOCAL LICENSING BOARD. 13
4–303. 14
[A] EXCEPT AS PROVIDED IN § 4–205.1 OF THIS TITLE , A Class A, Class B, or 15
Class D beer license, beer and wine license, or beer, wine, and liquor li cense may not be 16
transferred for use in conjunction with or on the premises of a chain store, supermarket, or 17
discount house unless: 18
(1) the establishment already holds a Class A, Class B, or Class D beer 19
license, beer and wine license, or beer, wine, and liquor license; or 20
(2) the license is transferred to a similar type of establishment. 21
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 22
1, 2026. 23