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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0959*
SENATE BILL 959
A2 6lr3207
CF HB 1526
By: Carroll County Senators
Introduced and read first time: February 10, 2026
Assigned to: Rules
A BILL ENTITLED
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 Commiss ioners 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 certain food, nonalcoholic beverages, and alcoholic 7
beverages for on–premises consumption; and generally relating to Class 1 distillery 8
on–premises consumption permits in Carroll County. 9
BY repealing and reenacting, without amendments, 10
Article – Alcoholic Beverages and Cannabis 11
Section 2–202(a), (e), and (i) and 16–102 12
Annotated Code of Maryland 13
(2024 Replacement Volume and 2025 Supplement) 14
BY repealing and reenacting, with amendments, 15
Article – Alcoholic Beverages and Cannabis 16
Section 16–401 17
Annotated Code of Maryland 18
(2024 Replacement Volume and 2025 Supplement) 19
BY adding to 20
Article – Alcoholic Beverages and Cannabis 21
Section 16–406 22
Annotated Code of Maryland 23
(2024 Replacement Volume and 2025 Supplement) 24
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 25
That the Laws of Maryland read as follows: 26
2 SENATE BILL 959
Article – Alcoholic Beverages and Cannabis 1
2–202. 2
(a) There is a Class 1 distillery license. 3
(e) Subject to subsection (f) of this section, a license holder may conduct the 4
activities specified in subsections (c)(5) and (i)(2) of this section from 10 a.m. to 10 p.m. each 5
day. 6
(i) (1) A local licensing board may grant an on –site consumption permit for 7
use at the location of the Class 1 distillery license to a holder of a Class 1 distillery license. 8
(2) (i) The permit authorizes the holder to sell mixed drinks made from 9
liquor that the holder produces that is mixed with other nonalcoholic ingredients for 10
on–premises consumption. 11
(ii) The holder may not use more than an aggregate of 7,750 gallons 12
annually of liquor the holder produces for mixed drinks sold under subparagraph (i) of this 13
paragraph. 14
(3) A local licensing board: 15
(i) may establish and charge a permit fee; and 16
(ii) shall require the permit holder to: 17
1. comply with the alcohol awareness requirements under § 18
4–505 of this article; and 19
2. abide by all applicable trade practice restrictions. 20
16–102. 21
This title applies only in Carroll County. 22
16–401. 23
(a) The following sections of Title 2, Subtitle 2 (“Manufacturer’s Licenses”) of 24
Division I of this article apply in the county without exception or variation: 25
(1) § 2–201 (“Issuance by Comptroller”); 26
(2) [§ 2–202 (“Class 1 distillery license”); 27
(3)] § 2–203 (“Class 9 limited distillery license”); 28
SENATE BILL 959 3
[(4)] (3) § 2–204 (“Class 2 rectifying license”); 1
[(5)] (4) § 2–205 (“Class 3 winery license”); 2
[(6)] (5) § 2–207 (“Class 5 brewery license”); 3
[(7)] (6) § 2–210 (“Class 8 farm brewery license”); 4
[(8)] (7) § 2–211 (“Residency requirement”); 5
[(9)] (8) § 2–212 (“Additional licenses”); 6
[(10)] (9) § 2–213 (“Additional fees”); 7
[(11)] (10) § 2–214 (“Sale or delivery restricted”); 8
[(12)] (11) § 2 –216 (“Interaction between manufacturing entities and 9
retailers”); 10
[(13)] (12) § 2 –217 (“Distribution of alcoholic beverages — Prohibited 11
practices”); and 12
[(14)] (13) § 2 –218 (“Restrictive agre ements between producers and 13
retailers — Prohibited”). 14
(b) Section 2–215 (“Beer sale on credit to retail dealer prohibited”) of Division I of 15
this article does not apply in the county. 16
(c) The following sections of Title 2, Subtitle 2 (“Manufacturer’s Licenses”) of 17
Division I of this article apply in the county: 18
(1) § 2–202 (“CLASS 1 DISTILLERY LICENSE”), SUBJECT TO § 16–406 19
OF THIS SUBTITLE; 20
(2) § 2–206 (“Class 4 limited winery license”), subject to § 16 –403 of this 21
subtitle; 22
[(2)] (3) § 2–208 (“Class 6 pub –brewery license”), subject to § 16 –404 of 23
this subtitle; and 24
[(3)] (4) § 2–209 (“Class 7 micro–brewery license”), subject to § 16–405 of 25
this subtitle. 26
16–406. 27
4 SENATE BILL 959
(A) THERE IS A CLASS 1 DISTILLERY ON–SITE CONSUMPTION PERMIT. 1
(B) THE PERMIT MAY BE ISSUED TO A HOLDER OF A CLASS 1 DISTILLERY 2
LICENSE. 3
(C) THE PERMIT SERVES AS THE ON –PREMISES CONSUMPTION PERMIT 4
REQUIRED UNDER § 2–202(E) AND (I) OF THIS ARTICLE. 5
(D) THE PERMIT AUTHORIZES THE HOLDER TO SELL: 6
(1) FOOD; 7
(2) NONALCOHOLIC BEVERAGES; AND 8
(3) ALCOHOLIC BEVERAGES , INCLUDING BRANDY , RUM, WHISKEY, 9
AND NEUTRAL SPIRITS THAT ARE DISTILLED, RECTIFIED, BLENDED, AND BOTTLED 10
AT THE DISTILLERY FO R ON– AND OFF–PREMISES CONSUMPTION TO THE EXTENT 11
THE PERMIT HOLDER IS AUTHORIZED UNDER THE CLASS 1 DISTILLERY LICENSE. 12
(E) THE AUTHORIZATION TO SELL FOOD AND NONALC OHOLIC BEVERAGES 13
UNDER THIS SECTION IS SUBJECT TO APPROVAL BY THE CARROLL COUNTY HEALTH 14
DEPARTMENT. 15
(F) AN APPLICATION FOR A PERMIT UNDER THIS SECTION SHALL INCLUDE 16
A DIAGRAM OF THE PROPOSED AREA FOR CONSUMPTION UNDER THE PERMIT AND 17
SHOW CLEAR DELINEATI ON FROM THE MANUFACT URING AND PROCESSING 18
FACILITIES. 19
(G) THE BOARD SHALL ADOPT REGULATIONS TO CARRY OUT THIS SECTION 20
AND TO SET THE ANNUAL PERMIT FEE. 21
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 22
1, 2026. 23