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*sb0807*
SENATE BILL 807
A1 (6lr3130)
ENROLLED BILL
— Finance/Government, Labor, and Elections —
Introduced by Senator Bailey
Read and Examined by Proofreaders:
_______________________________________________
Proofreader.
_______________________________________________
Proofreader.
Sealed with the Great Seal and presented to the Governor, for his approval this
_______ day of _______________ at _________________ _______ o’clock, ________M.
______________________________________________
President.
CHAPTER ______
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 l icense 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 doe s not comply with local zoning laws for 10
certain Class 8 farm brewery licenses and Class 10 farm distillery licenses; 11
authorizing the holder of a Class 10 farm distillery license to apply for and obtain 12
additional Class 10 farm distillery licenses under certain circumstances and a Class 13
8 liquor wholesaler’s license ; and generally relating to Class 8 farm brewery and 14
Class 10 farm distillery alcoholic beverages licenses. 15
2 SENATE BILL 807
BY repealing and reenacting, with amendments, 1
Article – Alcoholic Beverages and Cannabis 2
Section 1–405, and 2–210, and 2–212 3
Annotated Code of Maryland 4
(2024 Replacement Volume and 2025 Supplement) 5
BY adding to 6
Article – Alcoholic Beverages and Cannabis 7
Section 2–203.1 8
Annotated Code of Maryland 9
(2024 Replacement Volume and 2025 Supplement) 10
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 11
That the Laws of Maryland read as follows: 12
Article – Alcoholic Beverages and Cannabis 13
1–405. 14
(a) A license may not be issued for a premises unless the premises conforms to all 15
requirements set out in this article or the Tax – General Article. 16
(b) (1) [A] EXCEPT FOR THIS SUBSECTION DOES NOT APPLY TO A CLASS 17
8 FARM BREWERY LICENSE ISSUED UNDER § 2–210 OF THIS ARTICLE OR A CLASS 10 18
FARM DISTILLERY LICE NSE ISSUED UNDER § 2–203.1 OF THIS ARTICLE , A IF THE 19
HOLDER OF THE CLASS 8 FARM BREWERY LICENSE HOLDS A CLASS 8 FARM 20
BREWERY LICENSE FIRST ISSUED ON OR BEFORE JULY 1, 2015. 21
(2) A license or an alcoholic beverages permit may not be issued for a 22
premises unless the premises conform s with all zoning laws, regulations, or ordinances 23
passed in accordance with Division I of the Land Use Article. 24
2–203.1. 25
(A) THERE IS A CLASS 10 FARM DISTILLERY LICENSE. 26
(B) THE LICENSE MAY BE IS SUED ONLY TO A HOLDE R OF A CLASS 8 FARM 27
BREWERY LICENSE. 28
(C) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , A LICENSE 29
HOLDER MAY SELL AND DELIVER SPIRITS PRODUCED ON THE LICENSED FARM TO: 30
(I) A WHOLESALER LICENSED TO SELL AND DELIVER SPIRITS IN 31
THE STATE; OR 32
SENATE BILL 807 3
(II) A PERSON IN ANOTHER STATE AU THORIZED TO ACQUIRE 1
SPIRITS. 2
(2) THE DISTILLED SPIRITS TO BE SOLD AND DELIV ERED UNDER 3
PARAGRAPH (1) OF THIS SUBSECTION S HALL BE MANUFACTURED WITH AN 4
INGREDIENT FROM A MARYLAND AGRICULTURAL PRODUCT, INCLUDING CORN , 5
GRAIN, AND FRUIT, PRODUCED ON THE LICENSED FARM. 6
(3) THE LICENSED FARM SHALL BE: 7
(I) AN AGRIBUSINESS ENGA GED IN THE PRODUCTIO N, 8
SHOWCASING, PREPARATION, AND SALE OF FARM PRODUCTS; AND 9
(II) ACTIVELY ENGAGED IN AGRITOURISM BY EXPOSING THE 10
PUBLIC TO FARMING AND VALUE–ADDED FARMING PRACTICES. 11
(D) A LICENSE HOLDER MAY: 12
(1) (I) SUBJECT TO ITEM (II) OF THIS ITEM , ESTABLISH AND 13
OPERATE A PLANT ON T HE LICENSED FARM FOR DISTILLING, RECTIFYING, AND 14
BOTTLING BRANDY, RUM, WHISKEY, ALCOHOL, AND NEUTRAL SPIRITS; 15
(II) HAVE MORE THAN ONE L ICENSE ISSUED BY THE 16
COMMISSION AT THE SAME LOCATION IF THE LICENSE HOLDER: 17
1. MAINTAINS A SINGLE BRAND AT ANY TIME FOR EACH 18
PRODUCT OF BRANDY , RUM, WHISKEY, ALCOHOL, AND NEUTRAL SPIRIT T HAT IS 19
DISTILLED, RECTIFIED, AND SOLD; AND 20
2. DOES NOT MANUFACTURE OR RECTIFY A PRODUCT OF 21
ANY OTHER BRAND FOR A SEPARATE ENTITY; 22
(III) HOLD OR OBTAIN: 23
1. A CLASS 7 LIMITED BEER WHOLESA LER’S LICENSE ; 24
OR 25
2. A CLASS 8 LIQUOR WHOLESALER’S LICENSE; 26
(2) ACQUIRE BULK ALCOHOLIC BEVERAGES FROM THE HOLDER OF A 27
DISTILLERY OR RECTIF YING LICENSE IN THE STATE OR THE HOLDER O F A 28
NONRESIDENT DEALER’S PERMIT; 29
4 SENATE BILL 807
(3) AFTER ACQUIRING AN I NDIVIDUAL STORAGE PE RMIT UNDER § 1
2–113 OF THIS TITLE, STORE PRODUCTS MANUFACTURED ON THE LICENSED FARM; 2
(4) SELL AND DELIVER THE PRODUCTS MANUFACTURED UNDER THE 3
LICENSE FOR ON–PREMISES AND OFF–PREMISES CONSUMPTION; 4
(5) CONDUCT GUIDED TOURS OF THE PORTION OF TH E LICENSED 5
FARM USED FOR DISTILLING, RECTIFYING, AND BOTTLING; 6
(6) SERVE PRODUCTS THAT ARE MANUFACTURED ON THE LICENSED 7
FARM OR BY ANOTHER M ANUFACTURER IN THE STATE TO A CONSUMER A T NO 8
CHARGE OR FOR A FEE; 9
(7) SELL OR SERVE FOOD IF THE LICENSE HOLDER: 10
(I) IS LICENSED TO OPERATE A FOOD ESTABLISHMENT UNDER 11
TITLE 21, SUBTITLE 3 OF THE HEALTH – GENERAL ARTICLE; 12
(II) USES A LICENSED FOOD TRUCK; 13
(III) USES A LICENSED CATERER; OR 14
(IV) IS SELLING OR SERVIN G COTTAGE INDUSTRY F OOD 15
PREPARED ON THE FARM UNDER § 21–330.1 OF THE HEALTH – GENERAL ARTICLE; 16
AND 17
(8) IN ACCORDANCE WITH PARAGRAPH (C)(3) OF THIS SECTION: 18
(I) HOST FESTIVALS; 19
(II) PROVIDE LIVE MUSIC OR OTHER ENTERTAINMENT; OR 20
(III) RENT PORTIONS OF THE LICENSED FARM TO THE PUBLIC OR 21
PRIVATE INDIVIDUALS OR GROUPS FOR FUNCTIONS OR EVENTS, INCLUDING: 22
1. BANQUETS; 23
2. WEDDINGS; 24
3. ANNIVERSARY PARTIES; 25
4. BIRTHDAY PARTIES; 26
SENATE BILL 807 5
5. FUNDRAISERS; AND 1
6. OTHER SIMILAR CELEBRATIONS OR EVENTS. 2
(E) A LICENSE HOLDER MAY NOT: 3
(1) EXCEPT AS PROVIDED IN PARAGRAPH (D)(1) OF THIS SECTION: 4
(I) HOLD OR OBTAIN A WHOLESALER’S LICENSE; OR 5
(II) OWN, OPERATE, OR BE AFFILIATED IN ANY MANNER WITH 6
ANOTHER MANUFACTURER; OR 7
(2) DISTILL, RECTIFY, BOTTLE, OR SELL MORE THAN 100,000 8
GALLONS OF BRANDY , RUM, WHISKEY, ALCOHOL, OR NEUTRAL SPIRITS E ACH 9
CALENDAR YEAR. 10
(F) A CLASS 10 FARM DISTILLERY MAY BE LOCATED ONLY AT T HE PLACE 11
DESCRIBED IN THE LICENSE. 12
(G) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION A ND 13
NOTWITHSTANDING ANY LOCAL LAW , A LICENSE HOLDER MAY EXERCISE THE 14
PRIVILEGES OF A CLASS 10 FARM DISTILLERY LICENSE. 15
(2) THE COMMISSION HAS EXCLUS IVE REGULATORY AUTHO RITY 16
OVER THE OPERATION OF A CLASS 10 FARM DISTILLERY. 17
(H) THE ANNUAL LICENSE FEE: 18
(1) SHALL BE DETERMINED BY THE EXECUTIVE DIRECTOR; AND 19
(2) MAY NOT EXCEED $500. 20
2–210. 21
(a) There is a Class 8 farm brewery license. 22
(b) (1) Subject to paragraph (2) of this subsection, a license holder may sell 23
and deliver beer manufactured in a facility on the licensed farm or in a facility other than 24
one on the licensed farm to: 25
(i) a wholesaler licensed to sell and deliver beer in the State; or 26
6 SENATE BILL 807
(ii) a person in another state authorized to acquire beer. 1
(2) The beer to be sold and delivered under paragraph (1) of this subsection 2
shall be manufactured with an ingredient from a Maryland agricultural product, including 3
hops, grain, and fruit, produced on the licensed farm. 4
(3) THE LICENSED FARM SHALL BE: 5
(I) AN AGRIBUSINESS ENGA GED IN THE PRODUCTIO N, 6
SHOWCASING, PREPARATION, AND SALE OF FARM PRODUCTS; AND 7
(II) ACTIVELY ENGAGED IN AGRITOURISM BY EXPOS ING THE 8
PUBLIC TO FARMING AND VALUE–ADDED FARMING PRACTICES. 9
(c) A license holder may: 10
(1) (i) sell beer produced by the license holder OR ANOTHER 11
MANUFACTURER IN THE STATE for on–premises and off–premises consumption; 12
(ii) in an amount not exceeding 6 fluid ounces per brand, provide 13
samples of beer that the license holder produces to a consumer: 14
1. at no charge; or 15
2. for a fee; AND 16
(iii) sell or serve[: 17
1. bread and other baked goods; 18
2. chili; 19
3. chocolate; 20
4. crackers; 21
5. cured meat; 22
6. fruits (whole and cut); 23
7. hard and soft cheese (whole and cut); 24
8. salads and vegetables (whole and cut); 25
9. ice cream; 26
SENATE BILL 807 7
10. jam; 1
11. jelly; 2
12. vinegar; 3
13. pizza; 4
14. prepackaged sandwiches and other prepackaged foods 5
ready to be eaten; 6
15. soup; and 7
16. condiments; and 8
(iv) subject to subsection (e)(2) of this section, sell or serve any] food 9
if the license holder: 10
1. is licensed to operate a food establishment under Title 21, 11
Subtitle 3 of the Health – General Article; 12
2. USES A LICENSED FOOD TRUCK; 13
3. USES A LICENSED CATERER; OR 14
4. IS SELLING OR SERVIN G COTTAGE INDUSTRY F OOD 15
PREPARED ON THE FARM UNDER § 21–330.1 OF THE HEALTH – GENERAL ARTICLE; 16
(2) store, in a segregated area approved by the Executive Directo r, beer 17
produced by the license holder for sale and delivery to a wholesaler licensed in the State or 18
a person outside the State authorized to acquire the beer; 19
(3) brew, bottle, or contract for not more than 15,000 barrels of beer each 20
calendar year; 21
(4) contract with the holder of a Class 2 rectifying license, a Class 5 22
brewery license, or a Class 7 micro –brewery license to brew and bottle beer from 23
ingredients produced on the licensed farm; 24
(5) import, export, and transport its beer in accordance with this section; 25
(6) store, brew, and bottle beer in a facility listed on a permit issued to the 26
license holder in accordance with § 2–113 of this title, for sale and delivery to a wholesaler 27
licensed in the State or a person outside the St ate authorized to acquire the beer, or 28
shipment back to the licensed farm, if: 29
8 SENATE BILL 807
(i) the license holder does not serve or sell beer at the warehouse; 1
and 2
(ii) the Executive Director has full access at all times to the 3
warehouse to enforce this article; [and] 4
(7) enter into a temporary delivery agreement with a distributor only for 5
delivery of beer to a beer festival or a wine and beer festival, and the return of any unused 6
beer, if: 7
(i) the festival is in a sales territory for which the license holder does 8
not have a franchise with a distributor under the Beer Franchise Fair Dealing Act in Title 9
5, Subtitle 1 of this article; and 10
(ii) the temporary delivery agreement is in writing; AND 11
(8) IN ACCORDANCE WITH SUBSECTION (B)(3) OF THIS SECTION: 12
(I) HOST FESTIVALS; 13
(II) PROVIDE LIVE MUSIC OR OTHER ENTERTAINMENT; OR 14
(III) RENT PORTIONS OF THE LICENSED FARM TO THE PUBLIC OR 15
PRIVATE INDIVIDUALS OR GROUPS FOR FUNCTIONS OR EVENTS, INCLUDING: 16
1. BANQUETS; 17
2. WEDDINGS; 18
3. ANNIVERSARY PARTIES; 19
4. BIRTHDAY PARTIES; 20
5. FUNDRAISERS; AND 21
6. OTHER SIMILAR CELEBRATIONS OR EVENTS. 22
(d) [(1)] A Class 8 farm brewery may be located only at the place stated on the 23
license. 24
[(2) The place listed on the license shall be in compliance with § 1–405(b) of 25
this article.] 26
SENATE BILL 807 9
(e) (1) [Except as provided in ] SUBJECT TO paragraph (2) of this subsection 1
and notwithstanding any local law, a license holder may exercise the privileges of a Class 2
8 farm brewery license. 3
(2) [A li cense holder who sells foods under subsection (c)(1)(iv) of this 4
section shall meet the same ratio of gross receipts between food and alcoholic beverages 5
sales as a holder of a Class D beer and wine license or an equivalent license in the 6
jurisdiction, as the local licensing board determines ] THE COMMISSION EXECUTIVE 7
DIRECTOR HAS EXCLUSIVE REGULA TORY AUTHORITY OVER THE OPERATION OF A 8
CLASS 8 FARM BREWERY. 9
(3) EXCEPT AS PROVIDED IN A LOCAL FIRE SAFETY CODE, THE 10
COMMISSION EXECUTIVE DIRECTOR MAY NOT LIMIT THE NUMBER OF VISITORS ON 11
THE LICENSED PREMISES. 12
(f) (1) This subsection does not apply to a permit issued under § 2–140 of this 13
title. 14
(2) A license holder at the location listed on the license may exercise the 15
RETAIL privileges of the license each day from 10 a.m. to 10 p.m. 16
(g) Except as provided in Division II of this article, a Class 8 farm brewery license 17
allows the license holder to operate 7 days a week. 18
(h) Nothing in this section limits the application of relevant provisions of Title 21 19
of the Health – General Article, and regulations adopted under that title, to a license holder. 20
(i) (1) A license holder may sponsor a multibrewery activity at the location 21
issued on the license that: 22
(i) includes the products of other Maryland breweries; and 23
(ii) provides for the sale of products in the manner authorized under 24
the license. 25
(2) In a segregated area approved by the Executive Director at the location 26
listed on the license, a license holder may store the products of other Maryland breweries 27
for the multibrewery activity. 28
(3) The multibrewery activity: 29
(i) may be held from 10 a.m. to 10 p.m. each day; and 30
(ii) may not exceed 3 consecutive days. 31
(j) The annual license fee: 32
10 SENATE BILL 807
(1) shall be determined by the Executive Director; and 1
(2) may not exceed $200. 2
(k) (1) On or before December 1 each year, the Executive Director shall report 3
to the Senate FINANCE Committee [on Education, Energy, and the Environment] and the 4
House [Economic Matters ] GOVERNMENT, LABOR, AND ELECTIONS Committee, in 5
accordance with § 2–1257 of the State Government Article, the total beer production of each 6
Class 8 license holder in the preceding fiscal year, identified by jurisdiction and license 7
holder. 8
(2) Each holder of a Class 8 license shall report to the Executive Director 9
the information needed to prepare the annual report required under this subsection. 10
(3) The Executive Director shall include the information reported under 11
this subsection in the annual report submitted under § 1–316 of this article. 12
2–212. 13
(a) (1) This subsection does not apply to a Class 6 pub–brewery license. 14
(2) The holder of a distillery, FARM DISTILLERY , rectifying, winery, 15
limited winery, brewery, or farm brewery license may apply for and obtain, under a 16
different name, one or more additional distillery, FARM DISTILLERY, rectifying, winery, 17
limited winery, brewery, or farm brewery licenses for the same or different premises. 18
(3) (i) The holder of multiple manufacturer’s licenses at the same 19
location may allow the sampling, sales, and consumption of products produced under the 20
licenses at each of the licensed premises. 21
(ii) The sampling, sales, and consumption of products shall be 22
consistent with the authorization for each license. 23
(4) The additional licenses may be issued to different persons or under 24
trade names used by persons occupying all or a part of the same premises. 25
(5) A holder of a license listed in paragraph (2) of this subsection may hold 26
additional licenses listed in paragraph (2) of this subsection of the same or of a different 27
class. 28
(6) The holder of a micro –brewery license may app ly for and obtain not 29
more than one additional micro–brewery license for another premises. 30
SENATE BILL 807 11
(b) (1) The holder of a rectifying or winery license may apply for and obtain a 1
wholesaler’s license of any class for the same premises or elsewhere as provided under this 2
article. 3
(2) The holder of a Class 4 limited winery license may apply for and obtain 4
a Class 6 limited wine wholesaler’s license for the same premises or elsewhere as provided 5
under this article. 6
(3) (i) The holder of a Class 5 brewery license or Class 7 micro–brewery 7
license may apply for and obtain a Class 7 limited beer wholesaler’s license in accordance 8
with this paragraph. 9
(ii) A holder of a Class 5 brewery license that was selling the holder’s 10
own beer at wholesale in the State as of January 1, 2013, may obtain a Class 7 limited beer 11
wholesaler’s license to continue to sell the holder’s own beer at wholesale in the same 12
location in an amount that is not more than 5,000 barrels annually. 13
(iii) A holder of a Class 5 brewery license that produces in aggregate 14
from all its locations not more than 45,000 barrels of beer annually may obtain a Class 7 15
limited beer wholesaler’s license and distribute not more than 5,000 barrels of its own beer 16
annually. 17
(4) A holder of one or two Class 7 micro–brewery licenses that produces in 18
aggregate from all of its locations not more than 45,000 barrels of beer annually may obtain 19
a Class 7 limited beer wholesaler’s license and distribute beer that: 20
(i) totals annually not more than 5,000 barrels in aggregate from all 21
of its locations; and 22
(ii) has been brewed at the location from where it is distributed. 23
(5) The holder of a Class 1 distillery license may apply for and obtain a 24
Class 8 liquor wholesaler’s license for the same premises or elsewhere as provided under 25
this article. 26
(6) The holder of a Class 9 limited distillery license OR A CLASS 10 FARM 27
DISTILLERY LICENSE may apply for and obtain a Class 8 liquor wholesaler’s license, for 28
the same premises or elsewhere as provided under this article, and distribute its own liquor. 29
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 30
1, 2026. 31