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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb1008*
SENATE BILL 1008
A3, A1 6lr2699
By: Senator Hershey
Constitutional Requirements Complied with for Introduction in the last 35 Days of Session
Introduced and read first time: February 28, 2026
Assigned to: Rules
A BILL ENTITLED
AN ACT concerning 1
Alcohol and Cannabis – Cannabinoid Beverages Off–Premises Sales Permit – 2
Establishment 3
FOR the purpose of authorizing the holder of a Class 1 wholesaler’s license to acquire and 4
deliver, under certain circumstances, cannabinoid beverages to the holder of an 5
alcoholic beverages license with an off–sale privilege that has been issued a certain 6
permit; authorizing a local board of license commissioners to issue the permit to a 7
holder of an alcoholic beverages license with an off–sale privilege, which authorizes 8
the holder to sell cannabinoid beverages for off –premises consumption, subject to 9
certain limitations; altering the distribution of the sales and us e tax collected from 10
the sale of cannab inoid beverages ; exempting certain cannabinoid beverage sales 11
involving a Class 1 wholesaler from the sales and use tax; and generally relating to 12
cannabinoid beverages off–premises sales permits. 13
BY repealing and reenacting, without amendments, 14
Article – Alcoholic Beverages and Cannabis 15
Section 1–101(a) and (d), 2–315(a), 36–101(a), and 36–1102(a) 16
Annotated Code of Maryland 17
(2024 Replacement Volume and 2025 Supplement) 18
BY adding to 19
Article – Alcoholic Beverages and Cannabis 20
Section 1–101(c–1) and 4–1108 21
Annotated Code of Maryland 22
(2024 Replacement Volume and 2025 Supplement) 23
BY repealing and reenacting, with amendments, 24
Article – Alcoholic Beverages and Cannabis 25
Section 2–302, 2–310, 2–313, 2–314, 2–315(b) and (c), 2–316, 36–202, and 36–1102(b) 26
Annotated Code of Maryland 27
2 SENATE BILL 1008
(2024 Replacement Volume and 2025 Supplement) 1
BY repealing 2
Article – Alcoholic Beverages and Cannabis 3
Section 36–101(c–1) 4
Annotated Code of Maryland 5
(2024 Replacement Volume and 2025 Supplement) 6
BY repealing and reenacting, with amendments, 7
Article – Tax – General 8
Section 2–1302.2 9
Annotated Code of Maryland 10
(2022 Replacement Volume and 2025 Supplement) 11
(As enacted by Chapters 604 and 605 of the Acts of the General Assembly of 2025) 12
BY repealing and reenacting, without amendments, 13
Article – Tax – General 14
Section 11–104(k) 15
Annotated Code of Maryland 16
(2022 Replacement Volume and 2025 Supplement) 17
BY repealing and reenacting, with amendments, 18
Article – Tax – General 19
Section 11–245 20
Annotated Code of Maryland 21
(2022 Replacement Volume and 2025 Supplement) 22
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 23
That the Laws of Maryland read as follows: 24
Article – Alcoholic Beverages and Cannabis 25
1–101. 26
(a) In this article the following words have the meanings indicated. 27
(C–1) “CANNABINOID BEVERAGE” MEANS A BEVERAGE INT ENDED FOR 28
HUMAN CONSUMPTION BY ORAL INGESTION THAT: 29
(1) IS SUITABLE FOR BEVERAGE PURPOSES; 30
(2) CONTAINS 5 MILLIGRAMS OR LESS OF TETRAHYDROCANNABINOL, 31
AS DEFINED IN § 36–1102 OF THIS ARTICLE, PER SERVING; 32
(3) IS CONTAINED AS A SINGLE–SERVING PRODUCT, AS DEFINED IN § 33
36–101 OF THIS ARTICLE; 34
SENATE BILL 1008 3
(4) IS LAWFULLY PRODUCED BY A CANNABIS LICENSEE, AS DEFINED 1
IN § 36–101 OF THIS ARTICLE; AND 2
(5) COMPLIES WITH: 3
(I) THE LABORATORY TESTI NG STANDARDS ESTABLI SHED 4
UNDER § 36–203 OF THIS ARTICLE; AND 5
(II) THE PACKAGING AND LABELING STANDARDS ESTABLISHED 6
UNDER §§ 36–203 AND 36–203.1 OF THIS ARTICLE. 7
(d) (1) “Cannabis” means the plant Cannabis sativa L. and any part of the 8
plant, including all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of 9
isomers, whether growing or not, with a delta –9–tetrahydrocannabinol concentration 10
greater than 0.3% on a dry weight basis. 11
(2) “Cannabis” includes cannabis products, seeds, seedlings, immature 12
plants, and clones. 13
(3) “Cannabis” does not include hemp or hemp products, as defined in § 14
14–101 of the Agriculture Article. 15
2–302. 16
(a) There is a Class 1 beer, wine, [and] liquor, AND CANNABINOID BEVERAGE 17
wholesaler’s license. 18
(b) The license authorizes the license holder to: 19
(1) (I) acquire beer, wine, and liquor from: 20
[(i)] 1. a license holder that is authorized to sell and deliver the 21
beer, wine, and liquor to a wholesaler; and 22
[(ii)] 2. a holder of a nonresident dealer’s permit or a resident 23
dealer’s permit that is authorized to sell and deliver beer, wine, and liquor; and 24
[(2)] (II) sell and deliver beer, wine, and liquor from the licensed premises 25
to: 26
[(i)] 1. a license holder or permit holder in the State; and 27
[(ii)] 2. an authorized person outside the State; AND 28
4 SENATE BILL 1008
(2) (I) ACQUIRE CANNABINOID BEVERAGES FROM A LICENSED 1
CANNABIS PROCESSOR; AND 2
(II) DELIVER CANNABINOID BEVERAGES TO THE HOLDER OF AN 3
ALCOHOLIC BEVERAGES LICENSE WITH AN OFF–SALE PRIVILEGE THAT HAS BEEN 4
ISSUED A PERMIT UNDER § 4–1108 OF THIS ARTICLE. 5
(c) The annual license fee is $2,000. 6
(d) The license holder may use an additional location for the warehousing, sale, 7
and delivery of beer, wine, [and] liquor, AND CANNABINOID BEVERAGES: 8
(1) if approved by the Executive Director following submission of a 9
separate application for each location; and 10
(2) on the payment of a $2,000 fee for each additional location. 11
2–310. 12
(a) This section does not apply to a holder of a nonresident winery permit. 13
(b) Before a holder of a wholesaler’s license may sell and deliver alcoholic 14
beverages OR CANNABINOID BEVERAGES acquired by the wholesaler to a holder of a retail 15
license, the alcoholic beverages AND CANNABINOID BEVERAGES shall come to rest on the 16
licensed premises of the wholesaler. 17
2–313. 18
(a) Subject to subsection (b) of this section, a holder of a wholesaler’s license may 19
not sell or deliver alcoholic beverages OR CANNABINOID BEVERAGES to a person in the 20
State that does not hold a license or permit under this article. 21
(b) This section does not prohibit a holder of a Class 4 limited winery license and 22
a Class 6 limited wine wholesaler’s license from also holding a Class A light wine license or 23
a Class A wine license issued under Division II of this article. 24
2–314. 25
(a) A holder of a wholesaler’s license may not sell beer OR CANNABINOID 26
BEVERAGES to a retail dealer on terms other than for cash on delivery. 27
(b) A suit or civil action to enforce or collect a claim for credit extended or enforce 28
payment of a check given for payment in violation of this section may not be maintained in 29
the State. 30
SENATE BILL 1008 5
(c) A person that violates this section is subject to the penalties provided in § 1
6–402 of this article. 2
2–315. 3
(a) (1) In this section the following words have the meanings indicated. 4
(2) “Advertisement” includes a graphic or nongraphic sign, display, poster, 5
and placard. 6
(3) “Wholesaling entity” means: 7
(i) a holder of a wholesaler’s license or a person connected with the 8
business of the holder; or 9
(ii) a nonresident dealer or resident dealer of alcoholic beverages. 10
(b) (1) Except as provided in paragraph (2) of this subsection, a wholesaling 11
entity may not have a financial interest in: 12
(i) the premises on or in which a license holder sells alcoholic 13
beverages OR CANNABINOID BEVERAGES at retail; or 14
(ii) a business that a license holder conducts. 15
(2) A holder of a Class 6 limited wine wholesaler’s license may have a 16
financial interest in not more than one Class A licensed premises. 17
(3) A wholesaling entity may not lend money or any other thing of value, 18
make a gift, or offer a gratuity to a retail dealer. 19
(4) A retail dealer may not accept, receive, or make use of money, a gift, or 20
an advertisement provided by a wholesaling entity or become indebted to a wholesaling 21
entity except for the purchase of alcoholic bevera ges, CANNABINOID BEVERAGES, and 22
allied products purchased for resale. 23
(5) A wholesaling entity other than a wholesaler of beer [and], malt 24
beverages, AND CANNABINOID BEVERAGES may not provide an advertisement to a retail 25
dealer. 26
(c) (1) This subsection applies only to brewed products AND CANNABINOID 27
BEVERAGES. 28
(2) (i) Subject to subparagraph (iii) of this paragraph, a nonresident 29
dealer, resident dealer, or [beer] wholesaler may not provide to a retail license holder an 30
advertisement that: 31
6 SENATE BILL 1008
1. is worth more than $150; and 1
2. advertises the beer [or], malt products , OR 2
CANNABINOID BEVERAGES of a particular brewer, nonresident dealer, resident dealer, 3
[or] beer wholesaler, OR LICENSED CANNABIS PROCESSOR. 4
(ii) An advertisement prov ided in accordance with this subsection 5
shall contain brand information that is prominent, permanent, and equal to the life and 6
value of the utilitarian character of the advertising item. 7
(iii) An advertisement that is manufactured by a [beer] wholesaler 8
and provided to the holder of a retail license may not be worth more than $50 to the holder 9
of the retail license where the advertisement advertises the beer [or], malt products, OR 10
CANNABINOID BEVERAGES of the [beer] wholesaler. 11
2–316. 12
(a) The purpose of this section is to eliminate the undue stimulation of the sale of 13
alcoholic beverages AND CANNABINOID BEVE RAGES and the practice of wholesalers 14
granting secret discounts, rebates, allowances, free goods, or other inducements to selected 15
license holders that contribute to a disorderly distribution of alcoholic beverages AND 16
CANNABINOID BEVERAGES. 17
(b) (1) A licensed wholesaler, resident dealer, or nonresident winery permit 18
holder may not discriminate directly or indirectly in price, discounts, or the quality of 19
merchandise sold between: 20
(i) one dispensary and another dispensary; 21
(ii) one wholesaler and another wholesaler; or 22
(iii) one retailer and another retailer that purchases alcoholic 23
beverages OR CANNABINOID BEVERAGES that bear the same brand and trade name, and 24
are similar in age and quality. 25
(2) A nonresident dealer, resident dealer, nonr esident winery permit 26
holder, or nonresident unlicensed manufacturer may not use or promote the use of a 27
practice prohibited under paragraph (1) of this subsection to sell or distribute alcoholic 28
beverages to or through a licensed manufacturer, licensed wholesaler, or county dispensary. 29
(c) A supplier, nonresident dealer, resident dealer, nonresident winery permit 30
holder, or wholesaler may not make a discount, rebate, or depletion allowance that is 31
offered on a product dependent on the pricing policy or practice of the license holder who is 32
invoiced for the product. 33
SENATE BILL 1008 7
(d) (1) This section does not restrict a wholesaler, nonresident dealer, resident 1
dealer, or nonresident winery permit holder from limiting the quantity of alcoholic 2
beverages OR CANNABINOID BEVERAGES to be sold to a license holder under a voluntary 3
or compulsory rationing plan. 4
(2) A wholesaler, nonresident dealer, resident dealer, or nonresident 5
winery permit holder is not required to sell to all license holders from whom orders are 6
received. 7
4–1108. 8
(A) THIS SECTION APPLIES ONLY IN A JURISDICTI ON WHERE THE LOCAL 9
LICENSING BOARD HAS ADOPTED REGULATIONS TO AUTHORIZE THE DEL IVERY OF 10
CANNABINOID BEVERAGES TO THE HOLDER OF AN ALCOHOLIC BEVERAGES LICENSE 11
WITH AN OFF–SALE PRIVILEGE. 12
(B) A LOCAL LICENSING BOARD MAY ISSUE A CANNABIN OID BEVERAGE S 13
OFF–PREMISES SALE S PERMIT TO THE HOLDER OF AN ALCOHOLIC BEVERAG ES 14
LICENSE WITH AN OFF–SALE PRIVILEGE IN THE COUNTY. 15
(C) THE PERMIT AUTHORIZES THE HOLDER TO: 16
(1) RECEIVE SHIPMENTS OF CANNABINOID BEVERAGE S FROM THE 17
HOLDER OF A CLASS 1 WHOLESALER’S LICENSE; AND 18
(2) SELL CANNABINOID BEV ERAGES TO INDIVIDUAL S AT LEAST 21 19
YEARS OLD FOR OFF–PREMISES CONSUMPTION. 20
(D) (1) A LOCAL LICENSING BOARD SHALL DETERMINE THE TERM OF THE 21
PERMIT. 22
(2) THE HOURS OF SALE FOR A CANNABINOID BEVERA GES 23
OFF–PREMISES SALE S PERMIT ARE THE SAME AS THOSE FOR THE UND ERLYING 24
LICENSE. 25
(E) THE EXECUTIVE DIRECTOR MAY ADOPT RE GULATIONS TO ENFORCE 26
THIS SECTION. 27
36–101. 28
(a) In this title the following words have the meanings indicated. 29
[(c–1) “Cannabinoid beverage” means a beverage intended for human consumption 30
by oral ingestion that: 31
8 SENATE BILL 1008
(1) is suitable for beverage purposes; 1
(2) contains 5 milligrams or less of tetrahydrocannabinol, as defined in § 2
36–1102 of this title, per serving; 3
(3) is contained as a single–serving product; 4
(4) is lawfully produced by a cannabis licensee; and 5
(5) complies with: 6
(i) the laboratory testing standards established under § 36 –203 of 7
this title; and 8
(ii) the packaging and labeling standards established under §§ 9
36–203 and 36–203.1 of this title.] 10
36–202. 11
(a) The Administration shall: 12
(1) develop and maintain a seed –to–sale tracking system that tracks 13
cannabis from either the seed or immature plant stage until the cannabis is sold to a 14
patient, caregiver, HOLDER OF A CLASS 1 WHOLESALER’S LICENSE ISSUED UNDER § 15
2–302 OF THIS ARTICLE, or consumer; 16
(2) conduct financial and criminal background investigations of any person 17
who submits an application for a cannabis license or a cannabis licensee, as required under 18
this title; 19
(3) develop a process for consumers and qualifying patients to purchase 20
clones and seeds, seedlings, stalks, roots, and stems of the cannabis plant for cultivation in 21
accordance with § 5–601.2 of the Criminal Law Article; 22
(4) solicit, evaluate, and issue or deny applications for cannabis licenses 23
and cannabis registrations, including: 24
(i) licenses to operate a cannabis business in accordance with th is 25
title; and 26
(ii) registration for independent testing laboratories, transporters, 27
security guard companies, waste disposal companies, and cannabis nurseries; 28
(5) award or deny: 29
SENATE BILL 1008 9
(i) a license to operate a cannabis business in accordance with th is 1
title; and 2
(ii) registration to independent testing laboratories, transporters, 3
security guard companies, waste disposal companies, cannabis nurseries, and any other 4
type of cannabis business authorized by the Administration; 5
(6) conduct announce d and unannounced inspections of any business 6
licensed or registered under this title to ensure compliance with this title; 7
(7) after a determination that a violation of this title or a regulation 8
adopted under this title has occurred, suspend, fine, restrict, or revoke cannabis licenses 9
and cannabis registrations, whether active, expired, or surrendered, or impose any other 10
penalty authorized by this title or any regulation adopted under this title; 11
(8) (i) give notice and hold a hearing in accordance with Title 10, 12
Subtitle 2 of the State Government Article, for any: 13
1. contested cannabis license or registration denial; or 14
2. violation of this title or any regulation adopted under this 15
title; 16
(ii) administer oaths in a proceeding under this section; and 17
(iii) subject to subsection (b)(3) of this section, allow the person 18
against whom the action is contemplated to be represented at the hearing by counsel; 19
(9) adopt regulations necessary to carry out its duties under this title; and 20
(10) perform any other power authorized or duty required under this title or 21
any other provision of State law. 22
(b) The Administration may: 23
(1) issue a subpoena for the attendance of a witness to testify or the 24
production of evidence in connection with: 25
(i) any disciplinary action under this title; or 26
(ii) any investigation or proceeding initiated for an alleged violation 27
of this title; 28
(2) delegate the hearing authority authorized under subsection (a)(8) of 29
this section to an employee within the Administration; 30
10 SENATE BILL 1008
(3) if, after due notice, the person against whom a disciplinary action is 1
contemplated does not appear at a hearing, hear and determine the matter; and 2
(4) after a hearing under this subsection, fine a cannabis licensee or 3
suspend, restrict, or revoke a cannabis license or a cannabis registration for a violation of: 4
(i) this title or a regulation adopted under this title; or 5
(ii) any other State law or regulation related to cannabis or the 6
operations of a cannabis business or registrant. 7
(C) (1) THE SEED –TO–SALE TRACKING OF A CANNABINOID BEV ERAGE 8
SHALL END WHEN A LIC ENSED CANNABIS PROCE SSOR C ONVEYS A CANNABINOID 9
BEVERAGE TO THE HOLDER OF A CLASS 1 WHOLESALER’S LICENSE. 10
(2) WHEN THE HOLDER OF A CLASS 1 WHOLESALER’S LICENSE TAKES 11
POSSESSION OF A CANN ABINOID BEVERAGE FOR DISTRIBUTION, ENFORCEMENT 12
AUTHORITY OVER THE C ANNABINOID BEVERAGE SHALL T RANSFER TO THE 13
EXECUTIVE DIRECTOR. 14
36–1102. 15
(a) (1) In this section the following words have the meanings indicated. 16
(2) “Hemp” has the meaning stated in § 14–401 of the Agriculture Article. 17
(3) “Tetrahydrocannabinol” means: 18
(i) any tetrahydro cannabinol, including delta 19
–8–tetrahydrocannabinol, delta –9–tetrahydrocannabinol, and delta 20
–10–tetrahydrocannabinol, regardless of how derived; 21
(ii) any other cannabinoid, except cannabidiol that the 22
Administration determines to cause intoxication; and 23
(iii) any other chemically similar compound, substance, derivative, or 24
isomer of tetrahydrocannabinol, as identified by the Administration. 25
(4) “Tincture” means a solution that is: 26
(i) dissolved in alcohol, glycerin, or vegetable oil; and 27
(ii) distributed in a dropper bottle of 4 ounces or less. 28
(b) (1) A person may not sell or distribute a product intended for human 29
consumption or inhalation that contains more than 0.5 milligrams of tetrahydrocannabinol 30
SENATE BILL 1008 11
per serving or 2.5 milligrams of tetrahydrocannabinol per package unless the person is 1
licensed under § 36 –401 of this title OR HOLDS A PERMIT UN DER § 4–1108 OF THIS 2
ARTICLE and the product complies with [the]: 3
(i) THE manufacturing standards established under § 36–203 of this 4
title; 5
(ii) THE laboratory testing standards established under § 36–203 of 6
this title; and 7
(iii) THE packaging and labeling standards established under § 8
36–203 of this title. 9
(2) A person may not sell or distribute a product described under 10
paragraph (1) of this subsection to an individual under the age of 21 years. 11
Article – Tax – General 12
2–1302.2. 13
(A) [After] EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION , 14
AFTER making the distributions required under §§ 2 –1301 through 2 –1302.1 of this 15
subtitle, of the sales and use tax collected under § 11–104(k) of this article from the sale of 16
cannabis, as defined in § 1 –101 of the Alcoholic Beverages and Cannabis Article, the 17
Comptroller quarterly shall distribute: 18
(1) 75% of the revenues as follows: 19
(i) to the Cannabis Regulation and Enforcement Fund, established 20
under § 36–206 of the Alcoholic Beverages and Cannabis Article, an amount necessary to 21
defray the entire co st of the operations and administrative expenses of the Maryland 22
Cannabis Administration established under Title 36 of the Alcoholic Beverages and 23
Cannabis Article; 24
(ii) to the Department of Social and Economic Mobility Special Fund, 25
established under § 9–4107 of the State Government Article, an amount necessary to defray 26
the operations and administrative expenses of the Office of Social Equity within the 27
Department of Social and Economic Mobility; 28
(iii) after making the distribution required under items (i) and (ii) of 29
this item: 30
1. 35% to the Community Reinvestment and Repair Fund 31
under § 1–322 of the Alcoholic Beverages and Cannabis Article for fiscal years 2024 through 32
2033; 33
12 SENATE BILL 1008
2. 5% to counties, which shall be allocated to each county 1
based on the percentage of revenue collected from that county, except that a county shall 2
distribute to a municipality located in the county 50% of the allocation received under this 3
item that is attributable to the sales and use tax revenue generated by a dispensary located 4
in that municipality; 5
3. 5% to the Cannabis Public Health Fund established under 6
§ 13–4505 of the Health – General Article; and 7
4. for fiscal years 2024 through 2028, 5% to the Cannabis 8
Business Assistance Fund established under § 5 –1901 of the Economic Development 9
Article; and 10
(iv) any balance remaining after the distributions required under 11
items (i), (ii), and (iii) of this item to the General Fund of the State; and 12
(2) 25% of the revenue to the General Fund of the State. 13
(B) WITHIN 10 DAYS AFTER THE END OF EAC H QUARTER , THE 14
COMPTROLLER SHALL DIS TRIBUTE TO THE GENERAL FUND OF THE STATE THE 15
SALES AND USE TAX CO LLECTED UNDER § 11–104(K) OF THIS ARTICLE FROM THE 16
SALE OF CANNABINOID BEVERAGES, AS DEFINED IN § 1–101 OF THE ALCOHOLIC 17
BEVERAGES AND CANNABIS ARTICLE. 18
11–104. 19
(k) The sales and use tax rate for cannabis, as defined in § 1–101 of the Alcoholic 20
Beverages and Cannabis Article is: 21
(1) for fiscal years 2024 through 2025, 9%; and 22
(2) for fiscal year 2026 and each fiscal year thereafter, 12%. 23
11–245. 24
The sales and use tax does not apply to the sale of: 25
(1) medical cannabis under Title 36 of the Alcoholic Beverages and 26
Cannabis Article; 27
(2) cannabis between cannabis businesses that are licensed under Title 36 28
of the Alcoholic Beverages and Cannabis Article; [or] 29
(3) cannabis between a cannabis business licensed under Title 36 of the 30
Alcoholic Beverages and Cannabis Article and a cannabis n ursery registered under Title 31
36 of the Alcoholic Beverages and Cannabis Article; 32
SENATE BILL 1008 13
(4) A CANNABINOID BEVERA GE BETWEEN A CANNABI S BUSINESS 1
LICENSED UNDER TITLE 36 OF THE ALCOHOLIC BEVERAGES AND CANNABIS 2
ARTICLE AND THE HOLDER OF A CLASS 1 WHOLESALER’S LICENSE ISSUED UNDER § 3
2–302 OF THE ALCOHOLIC BEVERAGES AND CANNABIS ARTICLE; OR 4
(5) A CANNABINOID BEVERAGE BETWEEN THE HOLDER OF A CLASS 1 5
WHOLESALER’S LICENSE ISSUED UNDER § 2–302 OF THE ALCOHOLIC BEVERAGES 6
AND CANNABIS ARTICLE AND THE HOLDER OF AN ALCOHOLIC BEVERAGES LICENSE 7
WITH AN OFF–SALE PRIVILEGE THAT HAS BEEN ISSUED A PE RMIT UNDER § 4–1108 8
OF THE ALCOHOLIC BEVERAGES AND CANNABIS ARTICLE. 9
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 10
1, 2026. 11