Read the full stored bill text
EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*sb0623*
SENATE BILL 623
C2, A1 6lr2156
CF HB 766
By: Senators Watson and Harris
Introduced and read first time: February 5, 2026
Assigned to: Finance
Committee Report: Favorable with amendments
Senate action: Adopted with floor amendments
Read second time: March 7, 2026
CHAPTER ______
AN ACT concerning 1
Retail Tobacco Tobacconist Businesses and Establishment of a Premium Cigar 2
Lounge 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 tobacconist 6
license; authorizing a local licensing board to issue the license; providing that a local 7
licensing board may authorize the owner or operator of a tobacconist that does not 8
hold an alcoholic beverages license to allow the consumption of alcoholic beverages 9
on the premises under certain circumstances; altering, for purposes of requirements 10
for other tobacco products business licenses, the definition of “pipe tobacco” to 11
exclude tobacco intended for use in a hoo kah or similar smoking device and the 12
definition of “tobacconist” to exclude retailers that do not derive at least a certain 13
percentage of revenues from the sale of premium cigars and pipe tobacco; prohibiting 14
a county clerk from issuing a certain tobacco products retailer tobacconist license if 15
the location is adjacent to shares a wall with a health care facility or a child care 16
facility; requiring a certain affidavit to be filed with the clerk of the circuit court 17
when renewing a tobacconist license; exempting a holder of a certain tobacco 18
products retailer license limiting an exemption for certain retail tobacco businesses 19
from the Clean Indoor Air Act to licensed tobacconists; requiring the holder of certain 20
licenses to submit an annual report to the Executive Director of the Alcohol, Tobacco, 21
and Cannabis Commission providing that a local alcoholic beverages license held by 22
a tobacconist shall be converted to a Class C –PCL alcoholic beverages license; 23
prohibiting a local licensing board from revoking or suspending a converted 24
2 SENATE BILL 623
Class C–PCL license under certain circumstances ; and generally relating to retail 1
tobacco tobacconist businesses and alcoholic beverages licenses. 2
BY repealing and reenacting, without amendments, 3
Article – Alcoholic Beverages and Cannabis 4
Section 4–204 5
Annotated Code of Maryland 6
(2024 Replacement Volume and 2025 Supplement) 7
BY adding to 8
Article – Alcoholic Beverages and Cannabis 9
Section 4–1002; and 4–1301 to be under the new subtitle “Subtitle 13. Unlicensed 10
Establishments” 11
Annotated Code of Maryland 12
(2024 Replacement Volume and 2025 Supplement) 13
BY repealing and reenacting, without amendments, 14
Article – Business Regulation 15
Section 16.5–101(a), (i), (j), and (q) 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) 16.5–101(p) and (t), 16.5 –203(b) and (e), 16.5 –204(b), and 21
16.5–206(c) 22
Annotated Code of Maryland 23
(2024 Replacement Volume and 2025 Supplement) 24
BY repealing and reenacting, without amendments, 25
Article – Health – General 26
Section 24–504 27
Annotated Code of Maryland 28
(2023 Replacement Volume and 2025 Supplement) 29
BY repealing and reenacting, with amendments, 30
Article – Health – General 31
Section 24–505 32
Annotated Code of Maryland 33
(2023 Replacement Volume and 2025 Supplement) 34
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 35
That the Laws of Maryland read as follows: 36
Article – Alcoholic Beverages and Cannabis 37
4–204. 38
SENATE BILL 623 3
(a) Except as otherwise provided in Division II of this article and subsection (b) 1
of this section, a local licensing board may not issue more than one license for use at the 2
same premises. 3
(b) The prohibition in subsection (a) of this section does not apply to a license 4
issued in accordance with §§ 4–1201 through 4–1205 of this title. 5
4–1002. 6
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 7
INDICATED. 8
(2) “OTHER TOBACCO PRODUCT S” HAS THE MEANING STAT ED IN § 9
16.5–101 OF THE BUSINESS REGULATION ARTICLE “SOCIAL EQUITY APPLICA NT” 10
MEANS AN APPLICANT F OR A CLASS C–PCL LICENSE THAT HAS AT LEAST 65% 11
OWNERSHIP AND CONTROL HELD BY ONE OR MORE INDIVIDUALS WHO: 12
(I) HAVE LIVED IN A DISP ROPORTIONATELY IMPACTED AREA 13
FOR AT LEAST 5 OF THE 10 YEARS IMMEDIATELY PRECEDING THE SUBMISSION OF 14
THE APPLICATION; 15
(II) ATTENDED A PUBLIC SC HOOL IN A DISPROPORT IONATELY 16
IMPACTED AREA FOR AT LEAST 5 YEARS; OR 17
(III) FOR AT LEAST 2 YEARS, ATTENDED A 4–YEAR INSTITUTION 18
OF HIGHER EDUCATION IN THE STATE WHERE AT LEAST 40% OF THE INDIVIDUALS 19
WHO ATTEND THE INSTITUTION OF HIGHER EDUCATION ARE ELIGIBLE FOR A PELL 20
GRANT. 21
(3) “TOBACCONIST” MEANS A RETAIL TOBAC CO BUSINESS THAT 22
HOLDS A TOBACCONIST LICENSE UNDER § 16.5–204 OF THE BUSINESS REGULATION 23
ARTICLE. 24
(B) THIS SECTION DOES NOT APPLY IN MONTGOMERY COUNTY. 25
(C) THERE IS A CLASS C–PCL (PREMIUM CIGAR LOUNGE) LICENSE. 26
(C) (D) (1) A LOCAL LICENSING BOARD MAY ISSUE THE LICE NSE TO A 27
TOBACCONIST IF: 28
(I) THE TOBACCONIST OPER ATES AN ESTABLISHMEN T IN 29
WHICH PREMIUM CIGARS AND P IPE TOBACCO ARE SOLD AT RETAIL FOR 30
ON–PREMISES AND OFF–PREMISES USE; AND 31
4 SENATE BILL 623
(II) THE TOBACCONIST MEET S THE REQUIREMENTS O F THIS 1
SECTION. 2
(2) (I) A LOCAL LICENSING BOAR D MAY NOT ISSUE MORE THAN 3
TWO NEW CLASS C–PCL LICENSES IN A SINGLE JURISDICTION DURING A CALENDAR 4
YEAR. 5
(II) 1. A SUBJECT TO SUBPARAGRA PHS (III) AND (IV) OF 6
THIS PARAGRAPH , A LOCAL LICENSING BOAR D MAY ISSUE ONE CLASS C–PCL 7
LICENSE PER 150,000 RESIDENTS OF A COUNTY. 8
(II) 2. IF A COUNTY HAS FEWER THAN 150,000 RESIDENTS, A 9
LOCAL LICENSING BOARD MAY ISSUE ONE CLASS C–PCL LICENSE IN THE COUNTY. 10
(III) A LOCAL LICENSING BOAR D MAY NOT ISSUE A NE W CLASS 11
C–PCL LICENSE FOR AN ESTAB LISHMENT LOCATED WIT HIN 5 MILES OF AN 12
ESTABLISHMENT WITH AN EXISTING CLASS C–PCL LICENSE. 13
(IV) THE ISSUANCE OF A CLASS C–PCL LICENSE IS SUBJECT TO 14
LOCAL REGULATIONS REGARDING THE TOTAL NUMBER OF ALCOHOLIC BEVERAGES 15
LICENSES THAT MAY BE ISSUED IN A SINGLE JURISDICTION. 16
(3) A LOCAL LICENSING BOAR D SHALL ESTABLISH A SCORING OR 17
WEIGHTED REVIEW PROCESS FOR A PPLICATIONS FOR A CLASS C–PCL LICENSE, 18
WHICH SHALL CONSIDER: 19
(I) WHETHER THE APPLICANT QUALIFIES AS A SOC IAL EQUITY 20
APPLICANT; 21
(II) THE APPLICANT ’S BUSINESS ACUMEN AN D OPERATIONAL 22
CAPACITY; 23
(III) THE APPLICANT’S YEARS OF EXPERIENCE IN THE TOBACCO, 24
HOSPITALITY, OR RELATED INDUSTRY; 25
(IV) WHETHER THE APPLICAN T RESIDES IN THE COU NTY OR 26
MUNICIPALITY IN WHICH THE LICENSE IS SOUGHT; 27
(V) ANY WRITTEN INPUT OR APPROVAL, AS REQUIRED BY THE 28
LOCAL LICE NSING BOARD , FROM RELEVANT LOCAL STAKEHOLDERS, INCLUDING 29
THE COUNTY , A MUNICIPAL CORPORAT ION, OR A RECOGNIZED COMM UNITY OR 30
BUSINESS ASSOCIATION; 31
SENATE BILL 623 5
(VI) THE ECONOMIC BENEFIT THE PROPOSED BUSINES S IS 1
EXPECTED TO PROVIDE TO THE LOCAL JURISDI CTION, INCLUDING JOB CREATION, 2
CAPITAL INVESTMENT, AND SUPPORT FOR LOCAL COMMERCE; AND 3
(VII) ANY OTHER FACTOR THA T THE LOCAL LICENSIN G BOARD 4
DETERMINES IS NECESS ARY TO PROMOTE EQUIT Y, COMMUNITY COMPATIBIL ITY, 5
AND RESPONSIBLE BUSINESS OPERATIONS. 6
(D) (E) THE LICENSE AUTHORIZES THE HOLDER TO ALLOW A CUSTOMER 7
TO CONSUME ALCOHOLIC BEVERAGES ON THE PRE MISES SELL ALCOHOLIC 8
BEVERAGES FOR ON–PREMISES CONSUMPTION MONDAY THROUGH SUNDAY FROM 9
10 A.M. TO 1 A.M. THE FOLLOWING DAY IF: 10
(1) THE ALCOHOLIC BEVERAGES ARE BROUGHT TO THE PREMISES BY 11
THE CUSTOMER; 12
(2) (1) THE CUSTOMER PURCHAS ES AND CONSUMES A PRODUCT 13
PREMIUM CIGAR OR PIP E TOBACCO SOLD BY THE LICENSE HOLDER DURING THE 14
TIME THE CUSTOMER IS ON THE PREMISES; AND 15
(3) (2) THE LICENSE HOLDER H AS AT LEAST ONE E MPLOYEE 16
PRESENT AND WORKING WHO IS CERTIFIED IN AN ALCOHOL AWARENESS PROGRAM 17
UNDER § 4–505 OF THIS TITLE. 18
(E) (F) (1) THE LICENSED PREMISES IS EXEMPT FROM THE 19
REQUIREMENTS OF THE CLEAN INDOOR AIR ACT UNDER § 24–505 OF THE HEALTH 20
– GENERAL ARTICLE. 21
(2) A LOCAL LICENSING BOARD SHALL REQUIRE: 22
(I) A LICENSE APPLICATIO N TO INCLUDE A BUILD ING PLAN 23
DEMONSTRATING SUFFICIENT DETAILED SPECIFICATI ONS FOR AIR FILTRATION 24
SYSTEMS AND EXHAUST SYSTEMS; 25
(II) A LICENSE HOLDER TO DISPLAY IN A CONSPICUOUS PLACE 26
THAT SMOKING IS ALLOWED ON THE PREMISES; AND 27
(III) EACH EMPLOYEE OF A LICENSED ESTABLISHMENT TO SIGN 28
AN ACKNOWLEDGMENT THAT ENUMERATES THE DANGERS OF SECONDHAND SMOKE 29
AND STATES THAT THE EMPLOYEE WILL BE SUBJECTED TO SECONDHAND SMOKE. 30
(3) AN ACKNOWLEDGMENT PROVIDED UNDER PARAGRAPH (2)(III) OF 31
THIS SUBSECTION SHAL L STATE THAT THE ACK NOWLEDGMENT DOES NOT 32
6 SENATE BILL 623
CONSTITUTE A WAIVER OF THE EMPLOYEE ’S RIGHTS UNDER FEDER AL, STATE, OR 1
LOCAL WORKPLACE SAFETY REGULATIONS. 2
(F) (G) (1) THE LICENSE HOLDER SHALL: 3
(1) HAVE AVERAGE DAILY R ECEIPTS FROM THE SAL E OF PREMIUM 4
CIGARS, PIPE TOBACCO, AND RELATED ACCESSORIES THAT ARE AT LEAS T 70% OF 5
THE TOTAL DAILY RECEIPTS FROM THE ESTABLISHMENT; AND 6
(2) ANNUALLY SUBMIT TO T HE EXECUTIVE DIRECTOR AND THE 7
LOCAL LICENSING BO ARD, IN A FORM THE EXECUTIVE DIRECTOR REQUIRES , A 8
SALES RATIO COMPLIAN CE REPORT A STATEMENT OF AVERA GE DAILY RECEIPTS 9
AND AN AFFIDAVIT OF A CERTIFIED PUBLIC A CCOUNTANT THAT VERIFY THAT THE 10
LICENSE HOLDER HAS M ET THE REQUIREMENTS OF A TOBACCONIST UND ER § 11
16.5–101 OF THE BUSINESS REGULATION ARTICLE. 12
(2) IF, BASED ON THE ANNUAL SUBMISSION REQUIRED UNDER THIS 13
SUBSECTION OR ANY OT HER INFORMATION AVAI LABLE TO THE LOCAL L ICENSING 14
BOARD, THE LOCAL LICENSING BOARD DETERMINES THAT A LICENSE HOLDER DOES 15
NOT MEET THE REQUIREMENTS OF A TOBACCONIST UNDER § 16.5–101 OF THE 16
BUSINESS REGULATION ARTICLE, THE LOCAL LICENSING BOARD MAY REVOKE OR 17
SUSPEND THE CLASS C–PCL LICENSE OR OTHERWISE DISCIPLINE THE LICEN SE 18
HOLDER IN ACCORDANCE WITH ENFORCEMENT POW ERS PROVIDED UNDER T HIS 19
ARTICLE AND ANY APPLICABLE LOCAL LAW OR REGULATION. 20
(H) A LICENSE HOLDER MAY NOT: 21
(1) ALLOW A PERSON TO US E CIGARETTES , ELECTRONIC SMOKING 22
DEVICES, OR CANNABIS ON THE LICENSED PREMISES; 23
(2) ALLOW AN INDIVIDUAL UNDER THE AGE OF 21 YEARS ON THE 24
LICENSED PREMISES; 25
(3) HAVE LIVE ENTERTAINMENT ON THE LICENSED PREMISES; OR 26
(4) OPERATE A COMMERCIAL KITCHEN ON THE LICENSED PREMISES. 27
(G) THE ANNUAL LICENSE FEE IS $100. 28
(I) A LOCAL LICENSING BOARD SHALL SET THE ANNUAL LICENSE FEE FOR 29
A CLASS C–PCL LICENSE BETWEEN $500 AND $2,500. 30
SUBTITLE 13. UNLICENSED ESTABLISHMENTS. 31
SENATE BILL 623 7
4–1301. 1
(A) (1) THIS SECTION APPLIES TO A TOBACCONIST: 2
(I) THAT ALLOWS ON –PREMISES CONSUMPTION OF PREMIUM 3
CIGARS AND PIPE TOBACCO; 4
(II) THAT DOES NOT HOLD AN ALCOHOLIC BEVERAGES LICENSE; 5
AND 6
(III) THAT IS OPEN TO THE PUBLIC. 7
(2) THIS SECTION DOES NOT APPLY IN MONTGOMERY COUNTY. 8
(B) A LOCAL LICENSING BOARD MAY AUTHORIZE THE OWNER OR OPERATOR 9
OF A TOBACCONIST TO ALLOW A CUSTOMER WHO IS AT LEAST 21 YEARS OLD TO 10
BRING ALCOHOLIC BEVE RAGES ONTO THE PREMI SES FOR PERSONAL 11
CONSUMPTION, PROVIDED THE CUSTOME R CONCURRENTLY BUYS AND CONSUMES 12
TOBACCO PRODUCTS. 13
(C) IF THE OWNER OR OPERA TOR OF THE TOBACCONI ST ALLOWS THE 14
CONSUMPTION OF ALCOH OLIC BEVERAGES ON TH E PREMI SES, THE OWNER OR 15
OPERATOR: 16
(1) MAY LIMIT THE AMOUNT AND TYPE OF ALCOHOLI C BEVERAGES 17
THAT MAY BE CONSUMED ON THE PREMISES; 18
(2) SHALL REQUIRE THAT AT LEAST ONE EMPLOYEE WHO IS WORKING 19
AND PRESENT ON THE P REMISES HAS BEEN TRA INED IN AN ALCOHOL A WARENESS 20
PROGRAM UNDER § 4–505 OF THIS TITLE; AND 21
(3) MAY NOT ALLOW: 22
(I) AN INDIVIDUAL TO CON SUME ALCOHOLIC BEVER AGES ON 23
THE PREMISES OF THE TOBACCONIST FROM 1 A.M. THROUGH 10 A.M.; 24
(II) A CUSTOMER TO DISTUR B THE PEACE , SAFETY, AND 25
WELFARE OF THE COMMUNITY; 26
(III) A PERSON TO USE CIGA RETTES, ELECTRONIC SMOKING 27
DEVICES, OR CANNABIS WHILE ON THE PREMISES; OR 28
(IV) AN INDIVIDUAL UNDER THE AGE OF 21 YEARS OLD TO 29
ENTER THE PREMISES. 30
8 SENATE BILL 623
(D) IF, BASED ON THE STATEME NT OF AVERAGE DAILY RECEIPTS AND 1
AFFIDAVIT REQUIRED U NDER § 16.5–206(C)(4) OF THE BUSINESS REGULATION 2
ARTICLE OR ANY OTHER INFORMATION AVAILABL E TO THE LOCAL LICEN SING 3
BOARD, THE LOCAL LICENSING BOARD DETERMINES THA T A TOBACCONIST 4
AUTHORIZED TO ALLOW ON–PREMISES CONSUMPTION DOES NOT MEET THE 5
REQUIREMENTS OF A TO BACCONIST UNDER § 16.5–101 OF THE BUSINESS 6
REGULATION ARTICLE, THE LOCAL LICENSING BOARD MAY REVOKE THE 7
AUTHORIZATION TO ALL OW ON –PREMISES CONSUMPTION OR OTHERWISE 8
DISCIPLINE THE TOBACCONIST IN ACCORDANCE WITH ENFO RCEMENT POWERS 9
PROVIDED UNDER THIS ARTICLE AND ANY APPL ICABLE LOCAL LAW OR 10
REGULATION. 11
(E) THE LOCAL LICENSING B OARD SHALL NOTIFY TH E EXECUTIVE 12
DIRECTOR OF EACH TOBA CCONIST AUTHORIZED T O ALLOW ON –PREMISES 13
CONSUMPTION OF ALCOHOLIC BEVERAGES UNDER THIS SECTION. 14
Article – Business Regulation 15
16.5–101. 16
(a) In this title the following words have the meanings indicated. 17
(i) “Licensed tobacconist” means a person licensed by the clerk of a circuit court 18
under § 16.5–204(b) of this title to act as a tobacconist. 19
(j) (1) “Other tobacco products” means, except as provided in paragraph (3) of 20
this subsection, a product that is: 21
(i) intended for human consumption or likely to be consumed, 22
whether smoked, heated, chewed, absorbed, dissolved, inhaled, or ingested in any other 23
manner, and that is made of or derived from, or that contains: 24
1. tobacco; or 25
2. nicotine; or 26
(ii) a component or part used in a consumable product described 27
under item (i) of this paragraph. 28
(2) “Other tobacco products” includes: 29
(i) cigars, premium cigars, pipe tobacco, chewing tobacco, snuff, and 30
snus; and 31
(ii) filters, rolling papers, pipes, and hookahs. 32
SENATE BILL 623 9
(3) “Other tobacco products” does not include: 1
(i) cigarettes; 2
(ii) electronic smoking devices; 3
(iii) drugs, devices, or combination products authorized for sale by 4
the U.S. Food and Drug Administration under the Federal Food, Drug, and Cosmetic Act; 5
or 6
(iv) tobacco pipes, as defined under § 11 –104 of the Tax – General 7
Article. 8
(p) (1) “Pipe tobacco” means any tobacco that, because of its appearance, type, 9
packaging, or labeling, is suitable for use and likely to be offered to, or purchased by, 10
consumers as tobacco to smoke in a pipe. 11
(2) “PIPE TOBACCO ” DOES NOT INCLUDE TOB ACCO THAT IS 12
INTENDED FOR USE IN A HOOKAH OR SIMILAR SMOKING DEVICE. 13
(q) “Premium cigars” means cigars that: 14
(1) have hand–rolled wrappers made from whole tobacco leaves where the 15
filler, binder, and wrapper are made of all tobacco, and may include adhesives or other 16
materials used to maintain size, texture, or flavor; or 17
(2) are designated as premium cigars by the Executive Director by 18
regulation. 19
(t) “Tobacconist” means an other tobacco products business that d erives at least 20
70% of its revenues, measured by average daily receipts, from the sale of [other tobacco 21
products] PREMIUM CIGARS , PIPE TOBACCO , and [tobacco–related] RELATED 22
accessories FOR ON–PREMISES OR OFF–PREMISES CONSUMPTION. 23
16.5–203. 24
(b) (1) An applicant for a license to act as an other tobacco products retailer or 25
a tobacconist: 26
(i) shall obtain a county license by submitting to the clerk an 27
application for each permanent or temporary place of business located in the same 28
enclosure and operated by the same applicant; and 29
(ii) except as provided in paragraph (2) of this subsection, shall pay 30
to the clerk a fee of $15. 31
10 SENATE BILL 623
(2) A person who has a license issued under Title 16 of this article to act as 1
a cigarette retailer or to act as a special cigarette retailer is not required to pay the license 2
fee. 3
(3) The application shall: 4
(i) be made on the form that the clerk requires; and 5
(ii) contain the information that the Executive Director requires. 6
(4) IF AN APPLICANT FOR A LICENSE TO ACT AS A TOBACCON IST 7
INTENDS TO ALLOW ON –PREMISES CONSUMPTION OF PREMIUM CIGARS OR PIPE 8
TOBACCO, THE APPLICANT SHALL INCLUDE WITH THE APP LICATION SUBMITTED 9
UNDER THIS SUBSECTIO N A BUILDING PLAN DE MONSTRATING DETAILED 10
SPECIFICATIONS FOR AIR FILTRATION SYSTEMS AND EXHAUST SYSTEMS. 11
(e) (1) A licensee shall display a license in the way that the Executive Director 12
requires by regulation. 13
(2) IF SMOKING IS ALLOWED ON THE PREMISES , A LICENSEE SHALL 14
DISPLAY IN A CONSPICUOUS PLACE THAT SMOKING IS ALLOWED ON THE PREMISES. 15
(3) A TOBACCONIST LICENSEE SHALL RETAIN RECORDS RELATED TO 16
AVERAGE DAILY RECEIPTS OF THE TOBACCONIST FOR A MINIMUM OF 2 YEARS. 17
(4) A TOBACCONIST LICENSEE MAY NOT SELL ALCOHOL IC 18
BEVERAGES UNLESS THE TOBACCONIST LICENSEE ALSO HOLDS A CLASS C–PCL 19
LICENSE ISSUED UNDER § 4–1002 OF THE ALCOHOLIC BEVERAGES AND CANNABIS 20
ARTICLE. 21
16.5–204. 22
(b) (1) [The] EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS 23
SUBSECTION, THE clerk of the circuit court shall issue to each applicant who meets the 24
requirements of this subtitle a license to act as an other tobacco products retailer or a 25
tobacconist. 26
(2) THE CLERK MAY NOT ISSUE A LICENSE TO ACT AS A TOBACCONIST 27
UNDER THIS SUBSECTION IF THE PLACE OF BUSINESS LISTED ON THE APPLICATION 28
FOR THE LICENSE IS ADJACENT TO SHARES A WALL WITH A LICENSED HEALTH CARE 29
FACILITY OR LICENSED CHILD CARE FACILITY. 30
SENATE BILL 623 11
(3) THE CLERK MAY RENEW A TOBACCONIST LICENSE ISSUED UNDER 1
THIS SECTION IF A LI CENSED HEALTH CARE F ACILITY OR LICENSED CHILD CARE 2
FACILITY RELOCATES TO SHARE A WALL WITH THE TOBACCONIST. 3
16.5–206. 4
(c) Before a license issued under this subtitle expires, the licensee may renew it 5
for an additional 1–year term, if the licensee: 6
(1) otherwise is entitled to be licensed; 7
(2) submits to the issuing official a renewal application on the form that 8
the issuing official requires; [and] 9
(3) pays to the issuing official the license fee required under § 16.5 –203 of 10
this subtitle; AND 11
(4) IS RENEWING A LICENS E TO ACT AS A TOBACC ONIST AND THE 12
LICENSEE FILES WITH THE CLERK OF THE CIR CUIT COURT A STATEME NT OF 13
AVERAGE DAILY RECEIP TS AND AN AFFIDAVIT OF A LICENSED CERTIF IED PUBLIC 14
ACCOUNTANT THAT VERI FY THE LICENSEE HAS MET THE REQUIREMENTS OF A 15
TOBACCONIST. 16
Article – Health – General 17
24–504. 18
Except as provided in § 24 –505 of this subtitle, beginning on February 1, 2008, a 19
person may not smoke or vape in: 20
(1) An indoor area open to the public; 21
(2) An indoor place in which meetings are open to the public in accordance 22
with Title 3 of the General Provisions Article; 23
(3) A government –owned or government –operated means of mass 24
transportation including buses, vans, trains, taxicabs, and limousines; or 25
(4) An indoor place of employment. 26
24–505. 27
(A) This subtitle does not apply to: 28
(1) Private homes, residences, including residences used as a business or 29
place of employment, unless being used by a person who is licensed or registered under 30
12 SENATE BILL 623
Title 5, Subtitle 5 of the Family Law Article to provide child care, and private vehicles, 1
unless being used for the public transportation of children, or as part of health care or child 2
care transportation; 3
(2) A hotel or motel room rented to one or more guests as long as the total 4
percent of hotel or motel rooms being so used does not exceed 25%; 5
(3) A TOBACCONIST AS DEFIN ED IN § 16.5–101 OF THE BUSINESS 6
REGULATION ARTICLE retail tobacco business that is a sole proprietorship, limited 7
liability company, corporation, partnership, or other enterprise, in which: 8
(i) The primary activity is the retail sale of tobacco products and 9
accessories; and 10
(ii) The sale of other products [is incidental ] CONSTITUTES NOT 11
MORE THAN 30% OF THE RETAIL TOBACCO BUSINESS’S GROSS ANNUAL REVENUE; 12
(4) Any facility of a manufacturer, importer, wholesaler, or distributor of 13
tobacco products or of any tobacco leaf dealer or processor in which employees of the 14
manufacturer, importer, wholesaler, distributor, or processor work or congregate; or 15
(5) A research or educational laboratory for the pur pose of conducting 16
scientific research into the health effects of environmental smoke. 17
(B) THE ALCOHOL, TOBACCO, AND CANNABIS COMMISSION SHALL 18
MAINTAIN A REGISTRY OF RETAIL TOBACCO BUSINESSES THAT ARE EXEMPT FROM 19
THIS SUBTITLE IN ACCORDANCE WITH THIS SECTION. 20
SECTION 2. AND BE IT FURTHER ENACTED, That, on or before July 1, 2028, and 21
each July 1 thereafter, a person who holds a license to act as a tobacconist under § 22
16.5–204 of the Business Regulation Article and holds a Class C –PCL alcoholic beverages 23
license, as authorized under Section 1 of this Act, shall provide documentation to the 24
Executive Director of the Alcohol, Tobacco, and Cannabis Commission that shows not less 25
than 70% of the annual gross revenue from the business operated under both licen ses is 26
derived from the sale of other tobacco products and related accessories: 27
(a) Notwithstanding § 4–1002(d) of the Alcoholic Beverages and Cannabis Article, 28
as enacted by Section 1 of this Act, a local alcoholic beverages license held by a tobacconist 29
prior to July 1, 2024, shall be converted to a Class C –PCL license under § 4 –1002 of the 30
Alcoholic Beverages and Cannabis Article, as enacted by Section 1 of this Act, regardless of 31
whether the conversion would cause the number of Class C–PCL licenses in the jurisdiction 32
to exceed the maximum number of licenses otherwise authorized under § 4 –1002(d) of the 33
Alcoholic Beverages and Cannabis Article, as enacted by Section 1 of this Act. 34
(b) A local licensing board may not suspend or revoke a converted Clas s C–PCL 35
license for noncompliance with sales percentages required under § 16.5 –101(t) of the 36
SENATE BILL 623 13
Business Regulation Article, as enacted by Section 1 of this Act, before July 1, 2028, at 1
which point the license holder shall demonstrate compliance with this Act. 2
(c) For purposes of determining whether a local licensing board may issue any 3
additional Class C–PCL licenses in the jurisdiction, a local licensing board shall count any 4
Class C–PCL license converted under this section toward the total number of: 5
(1) Class C–PCL licenses allowed in a single jurisdiction under § 4–1002(d) 6
of the Alcoholic Beverages and Cannabis Article, as enacted by Section 1 of this Act; and 7
(2) alcoholic beverages licenses issued in a jurisdiction if the jurisdiction 8
has local laws or regulations limiting the total amount of alcoholic beverages licenses issued 9
in the jurisdiction. 10
SECTION 3. AND BE IT FURTHER ENACTED, That , the Board of License 11
Commissioners for Howard County and Baltimore County , when issuing a Class C –PCL 12
license under § 4 –1002 of the Alcoholic Beverages and Cannabis Article, as enacted by 13
Section 1 of this Act, shall give preference to a licensed tobacconist that has been operating 14
in Howard County and Baltimore County, for at least the 5 years immediately p receding 15
the effective date of this Act. 16
SECTION 4. AND BE IT FURTHER ENACTED, That this Act shall take effect July 17
2, 2026. 18
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.