Bill
SB 934
Creates a Class C-PCL license for OTP tobacconists to sell beer, wine and liquor on-site (10am-1am) with 60% tobacco receipts, $2,000 fee, smoking allowed; bill withdrawn.
Status
- Introduced late January 2025 (sponsor: Sen. Watson). Assigned to Finance.
- Intended effective date: July 1, 2025.
- Later legislative action: bill was indefinitely postponed / withdrawn by sponsor (May 3, 2025) and reported as dying in Health Policy (June 16, 2025).
Purpose and intent
- Create a new, narrowly defined alcoholic beverages license (Class C–PCL, “premium cigar lounge”) to permit certain tobacco retailers to sell and permit on‑premises consumption of alcoholic beverages in establishments that primarily sell premium cigars and pipe tobacco.
Key provisions
- New license: Class C–PCL (Premium Cigar Lounge).
- Eligibility: Local boards may issue a Class C–PCL only to holders of an Other Tobacco Products (OTP) retailer license that operate establishments selling premium cigars and pipe tobacco for on‑ and off‑premises use and that meet statutory requirements.
- Geographic cap: One Class C–PCL per 150,000 county residents; counties with fewer than 150,000 residents may issue one license. Based on 2024 estimates, up to 44 statewide (distribution examples: Montgomery up to 7; Prince George’s 6; Baltimore County 5; Anne Arundel & Baltimore City 3 each; Howard 2).
- Authorized alcohol service: Sale of beer, wine, and liquor for consumption on premises, daily from 10:00 a.m. to 1:00 a.m. the following day.
- Indoor smoking exemption: Licensed premises would be exempted from Maryland’s Clean Indoor Air Act (i.e., smoking permitted on site) under amended Health – General provisions.
- Public health / facility requirements: Application must include building plans showing sufficient air filtration and exhaust; premises must conspicuously display that smoking is allowed; employees must sign acknowledgement that they will be exposed to secondhand smoke.
- Business threshold and compliance: At least 60% of average daily receipts must come from premium cigars, pipe tobacco, and related accessories; licensees must file an annual sales ratio compliance report with the ATCC executive director and the local board.
- Fees: Annual license fee set at $2,000.
- Related change: Shortens a prior moratorium window on issuing alcoholic beverage licenses to tobacconists (moves end date from July 1, 2026 to June 30, 2025).
Who would be affected
- OTP retailers and tobacconists meeting the sales threshold could apply for the new license and expand alcohol sales.
- Local boards of license commissioners would administer and issue licenses under population caps.
- Employees of licensed lounges would face increased exposure to secondhand smoke (statutorily acknowledged).
- Local governments: modest direct revenue from license fees ($2,000 per license); local boards to oversee compliance.
- Public health interests concerned with indoor smoking exemptions.
Fiscal and operational impacts
- State: Alcohol, Tobacco, and Cannabis Commission (ATCC) could administer the program with existing resources.
- Local: Each issued license would generate $2,000 annually in local revenue; monitoring/enforcement expected manageable with current local resources.
- Small businesses: Potentially meaningful economic benefit through additional alcohol sales for qualifying tobacco retailers.
Notes
- The bill includes detailed facility and reporting requirements intended to limit the license to businesses principally engaged in premium cigar/pipe tobacco retailing.
- Although the bill was introduced and advanced through initial steps, it was ultimately withdrawn by the sponsor and did not become law in this session.
Compiled from official sources — confirm details with the bill’s official record.
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