<section article="gab" article_name="Alcoholic Beverages and Cannabis" number="1-101" title_number="1" title_name="Definitions; General Provisions" subtitle_number="1" subtitle_name="Definitions"> <level label="a"> <text>In this article the following words have the meanings indicated.</text> </level> <level label="b"> <level label="1"> <text>“Alcoholic beverage” means a spirituous, vinous, malt, or fermented liquor, liquid, or compound that:</text> <level label="i"> <text>contains at least one–half of 1% of alcohol by volume; and</text> </level> <level label="ii"> <text>is suitable for beverage purposes.</text> </level> </level> <level label="2"> <text>“Alcoholic beverage” includes alcohol, brandy, whiskey, rum, gin, cordial, beer, and wine.</text> </level> <level label="3"> <text>“Alcoholic beverage” does not include a confectionery food product that contains up to 5% of alcohol by volume and is regulated by the Maryland Department of Health under § 21–209 of the Health – General Article.</text> </level> </level> <level label="c"> <level label="1"> <text>“Beer” means a brewed alcoholic beverage.</text> </level> <level label="2"> <text>“Beer” includes:</text> <level label="i"> <text>ale;</text> </level> <level label="ii"> <text>porter;</text> </level> <level label="iii"> <text>stout;</text> </level> <level label="iv"> <text>hard cider that:</text> <level label="1"> <text>is derived primarily from apples, apple concentrate and water, pears, or pear concentrate and water; and</text> </level> <level label="2"> <text>contains no other fruit product but contains at least one–half of 1% and less than 8.5% of alcohol by volume;</text> </level> </level> <level label="v"> <text>an alcoholic beverage that contains:</text> <level label="1"> <text>6% or less alcohol by volume, derived primarily from the fermentation of grain, with not more than 49% of the alcoholic beverage’s overall alcohol content by volume obtained from flavors and other added nonbeverage ingredients containing alcohol; or</text> </level> <level label="2"> <text>more than 6% alcohol by volume, derived primarily from the fermentation of grain, with not more than 1.5% of the alcoholic beverage’s overall alcohol content by volume obtained from flavors and other added nonbeverage ingredients containing alcohol; and</text> </level> </level> <level label="vi"> <text>mead.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>“Cannabis” means the plant Cannabis sativa L. and any part of the plant, including all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a delta–9–tetrahydrocannabinol concentration greater than 0.3% on a dry weight basis.</text> </level> <level label="2"> <text>“Cannabis” includes cannabis products, seeds, seedlings, immature plants, and clones.</text> </level> <level label="3"> <text>“Cannabis” does not include hemp or hemp products, as defined in § 14–101 of the Agriculture Article.</text> </level> </level> <level label="e"> <text>“Central Repository” means the Criminal Justice Information System Central Repository of the Department of Public Safety and Correctional Services.</text> </level> <level label="f"> <text>“Club” means an association or a corporation that is:</text> <level label="1"> <text>organized and operated exclusively for educational, social, fraternal, patriotic, political, or athletic purposes; and</text> </level> <level label="2"> <text>nonprofit.</text> </level> </level> <level label="g"> <text>“Commission” means the Alcohol, Tobacco, and Cannabis Commission.</text> </level> <level label="h"> <level label="1"> <text>“Comptroller” means the Comptroller of the State.</text> </level> <level label="2"> <text>“Comptroller” includes a deputy, an inspector, a clerk, or any other individual authorized to act by the Comptroller.</text> </level> </level> <level label="i"> <text>“Consumer” means an individual at least 21 years old or a corporation not otherwise prohibited by this article or any other State law, that buys, possesses, keeps, or transports alcoholic beverages on which the taxes under Title 5 of the Tax – General Article have been paid, for the individual’s or corporation’s own use and not for sale.</text> </level> <level label="j"> <text>“County” means a county of the State or Baltimore City.</text> </level> <level label="k"> <level label="1"> <text>“Executive Director” means the Executive Director of the Commission.</text> </level> <level label="2"> <text>“Executive Director” includes a deputy, an inspector, a clerk, or any other individual authorized to act by the Executive Director.</text> </level> </level> <level label="l"> <level label="1"> <text>“Family beer” means homemade beer produced for home consumption and not for sale.</text> </level> <level label="2"> <text>“Family beer” includes beer produced at a family beer and wine facility that has been granted a permit under § 2–138 of this article.</text> </level> </level> <level label="m"> <level label="1"> <text>“Family wine” means homemade wine produced for home consumption and not for sale.</text> </level> <level label="2"> <text>“Family wine” includes wine produced at a family beer and wine facility that has been granted a permit under § 2–138 of this article.</text> </level> </level> <level label="n"> <level label="1"> <text>Subject to paragraph (2) of this subsection, “hotel” means an establishment that:</text> <level label="i"> <text>accommodates the public;</text> </level> <level label="ii"> <text>is equipped with at least 10 bedrooms and a dining room with facilities for preparing and serving regular meals; and</text> </level> <level label="iii"> <text>has average daily receipts from the rental of rooms and sale of food that exceed the average daily receipts from the sale of alcoholic beverages.</text> </level> </level> <level label="2"> <text>By regulation, a local licensing board may set a different standard as to what constitutes a hotel.</text> </level> </level> <level label="o"> <text>“Illicit alcoholic beverage” means an alcoholic beverage that has been manufactured, bottled, or rectified:</text> <level label="1"> <text>in the State at a location not licensed under this article; or</text> </level> <level label="2"> <text>outside the State at a location not licensed under the United States Internal Revenue Code or the laws of a foreign country.</text> </level> </level> <level label="p"> <text>“Jurisdiction” means a county or the City of Annapolis.</text> </level> <level label="q"> <text>“License” means an alcoholic beverages license issued under this article.</text> </level> <level label="r"> <level label="1"> <text>“License holder” means the holder of an alcoholic beverages license issued or a permit granted under this article.</text> </level> <level label="2"> <text>“License holder” includes:</text> <level label="i"> <text>a county liquor control board and a county dispensary; and</text> </level> <level label="ii"> <text>for the delivery and billing purposes of Title 2, Subtitle 3 and §§ 2–213 and 2–314 of this article, a corporation on behalf of which an individual has obtained a license.</text> </level> </level> </level> <level label="s"> <text>“Liquor” has the same meaning as “distilled spirits” under § 5–101(g) of the Tax – General Article.</text> </level> <level label="t"> <level label="1"> <text>“Local collecting agent” means:</text> <level label="i"> <text>in the City of Annapolis, the city clerk;</text> </level> <level label="ii"> <text>in Allegany County, Baltimore County, Howard County, Prince George’s County, or Wicomico County, the director of finance;</text> </level> <level label="iii"> <text>in Calvert County, Dorchester County, St. Mary’s County, or Somerset County, the treasurer of the county; or</text> </level> <level label="iv"> <text>in each other county, the board of license commissioners unless another governmental unit is expressly authorized to collect fees under this article.</text> </level> </level> <level label="2"> <text>“Local collecting agent” does not include a clerk of a circuit court.</text> </level> </level> <level label="u"> <text>“Local licensing board” means a board of license commissioners or other governmental unit of a jurisdiction that issues licenses.</text> </level> <level label="v"> <text>“Manufacturer’s license” means a license issued under Title 2, Subtitle 2 of this article that is:</text> <level label="1"> <text>a Class 1 distillery license;</text> </level> <level label="2"> <text>a Class 2 rectifying license;</text> </level> <level label="3"> <text>a Class 3 winery license;</text> </level> <level label="4"> <text>a Class 4 limited winery license;</text> </level> <level label="5"> <text>a Class 5 brewery license;</text> </level> <level label="6"> <text>a Class 6 pub–brewery license;</text> </level> <level label="7"> <text>a Class 7 micro–brewery license;</text> </level> <level label="8"> <text>a Class 8 farm brewery license; or</text> </level> <level label="9"> <text>a Class 9 limited distillery license.</text> </level> </level> <level label="w"> <text>“Mead” means a fermented alcoholic beverage consisting primarily of honey and water.</text> </level> <level label="x"> <text>“Off–sale” means the sale of alcoholic beverages that are to be consumed off the licensed premises.</text> </level> <level label="y"> <text>“On–sale” means the sale of alcoholic beverages that are to be consumed on the licensed premises.</text> </level> <level label="z"> <text>“Person” means:</text> <level label="1"> <text>an individual;</text> </level> <level label="2"> <text>an association, a partnership, a corporation, a trust, or any other entity, and the officers, directors, and other individuals in active control of the activities of the association, partnership, corporation, trust, or other entity; or</text> </level> <level label="3"> <level label="i"> <text>the State or a political subdivision of the State, or a unit or an instrumentality of the State or a political subdivision of the State; or</text> </level> <level label="ii"> <text>another state or a political subdivision of that state.</text> </level> </level> </level> <level label="aa"> <text>“Political subdivision” means a county or a municipality.</text> </level> <level label="bb"> <text>“Pomace brandy” means:</text> <level label="1"> <text>brandy that is distilled from the pulpy residue of wine pressing, including the skins, pips, and stalks of grapes; or</text> </level> <level label="2"> <text>a brandy, not exceeding 80 proof, that is distilled by a Class 4 limited winery license from wine produced under the Class 4 limited winery license with ingredients that include at least 51% Maryland–grown agricultural products.</text> </level> </level> <level label="cc"> <level label="1"> <text>Subject to paragraph (2) of this subsection, “restaurant” means an establishment that:</text> <level label="i"> <text>accommodates the public;</text> </level> <level label="ii"> <text>is equipped with a dining room with facilities for preparing and serving regular meals; and</text> </level> <level label="iii"> <text>has average daily receipts from the sale of food that exceed the average daily receipts from the sale of alcoholic beverages.</text> </level> </level> <level label="2"> <text>By regulation, a local licensing board may set a different standard as to what constitutes a restaurant.</text> </level> </level> <level label="dd"> <level label="1"> <text>“Retail dealer” means a person that sells an alcoholic beverage to any person other than a license holder.</text> </level> <level label="2"> <text>“Retail dealer” includes a county dispensary.</text> </level> </level> <level label="ee"> <text>“7–day license” means a license that is in effect every day of the week.</text> </level> <level label="ff"> <text>“6–day license” means a license that is in effect Monday through Saturday.</text> </level> <level label="gg"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, “state” means:</text> <level label="i"> <text>a state, possession, territory, or commonwealth of the United States; or</text> </level> <level label="ii"> <text>the District of Columbia.</text> </level> </level> <level label="2"> <text>When capitalized, “State” means Maryland.</text> </level> </level> <level label="hh"> <text>“Tobacco” includes cigarettes regulated under Title 16 of the Business Regulation Article and other tobacco and related products regulated under Title 16.5, 16.7, or 16.9 of the Business Regulation Article.</text> </level> <level label="ii"> <level label="1"> <text>“Wholesaler” means:</text> <level label="i"> <text>a person that purchases or imports an alcoholic beverage for sale to wholesale dealers or retail dealers only; or</text> </level> <level label="ii"> <text>a limited winery that sells wine to retail dealers.</text> </level> </level> <level label="2"> <text>“Wholesaler” includes:</text> <level label="i"> <text>a county liquor control board; and</text> </level> <level label="ii"> <text>a county wholesale dispensary.</text> </level> </level> </level> <level label="jj"> <text>“Wholesaler’s license” means a license issued under Title 2, Subtitle 3 of this article that is:</text> <level label="1"> <text>a Class 1 beer, wine, and liquor license;</text> </level> <level label="2"> <text>a Class 2 wine and liquor license;</text> </level> <level label="3"> <text>a Class 3 beer and wine license;</text> </level> <level label="4"> <text>a Class 4 beer license;</text> </level> <level label="5"> <text>a Class 5 wine license;</text> </level> <level label="6"> <text>a Class 6 limited wine license; or</text> </level> <level label="7"> <text>a Class 7 limited beer license.</text> </level> </level> <level label="kk"> <level label="1"> <text>“Wine” means a fermented beverage.</text> </level> <level label="2"> <text>“Wine” includes:</text> <level label="i"> <text>light wine;</text> </level> <level label="ii"> <text>sparkling wine that is naturally or artificially carbonated; and</text> </level> <level label="iii"> <text>fortified wine to which alcohol, spirits, or other ingredients are added.</text> </level> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="1-201" title_number="1" title_name="Definitions; General Provisions" subtitle_number="2" subtitle_name="Statement of Policy; Construction of Article"> <level label="a"> <level label="1"> <level label="i"> <text>To obtain respect and obedience to law and to foster and promote temperance, it is the policy of the State to regulate and control:</text> <level label="1"> <text>the manufacture, sale, distribution, transportation, and storage of alcoholic beverages in the State; and</text> </level> <level label="2"> <text>the transportation and distribution of alcoholic beverages into and out of the State.</text> </level> </level> <level label="ii"> <text>To carry out this policy in the best public interest, it is the intent of the General Assembly that the Commission, Executive Director, local licensing boards, liquor control boards, enforcement officers, and judges of the courts of the State be empowered to administer and enforce this article.</text> </level> </level> <level label="2"> <text>It is also the policy of the State to:</text> <level label="i"> <text>tax alcoholic beverages as provided in the Tax – General Article; and</text> </level> <level label="ii"> <text>deny to a political subdivision in the State, by public general or public local law, the power to impose a tax on distilled spirits, beer, wine, and all other alcoholic beverages.</text> </level> </level> <level label="3"> <text>The restrictions, regulations, provisions, and penalties contained in this article are for the protection, health, welfare, and safety of the people of the State.</text> </level> </level> <level label="b"> <level label="1"> <text>It continues to be the policy of the State to authorize the exercise of the powers provided by this article to displace or limit economic competition by regulating and engaging in the sale or distribution of alcoholic beverages to:</text> <level label="i"> <text>obtain respect and obedience to law;</text> </level> <level label="ii"> <text>foster and promote temperance;</text> </level> <level label="iii"> <text>prevent deceptive, destructive, and unethical business practices; and</text> </level> <level label="iv"> <text>promote the general welfare of its residents by controlling the sale and distribution of alcoholic beverages.</text> </level> </level> <level label="2"> <text>The officials and units granted powers by this article to regulate and engage in the alcoholic beverages industry may:</text> <level label="i"> <text>displace or limit economic competition by regulating and engaging in the sale or distribution of alcoholic beverages on an exclusive basis as provided in this article; and</text> </level> <level label="ii"> <text>adopt and enforce regulations authorized by this article notwithstanding any anticompetitive effect.</text> </level> </level> <level label="3"> <text>The powers granted to an official or a unit in accordance with this subsection do not:</text> <level label="i"> <text>grant to the official or unit powers in any substantive area not otherwise granted to the official or unit by other public general or public local law;</text> </level> <level label="ii"> <text>restrict the official or unit from exercising any power granted to the official or unit by other public general or public local law or otherwise;</text> </level> <level label="iii"> <text>authorize the official or unit or officers of the unit to engage in any activity that is beyond their power under a public general or public local law or otherwise; or</text> </level> <level label="iv"> <text>preempt or supersede the regulatory authority of a State unit under a public general law.</text> </level> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="1-202" title_number="1" title_name="Definitions; General Provisions" subtitle_number="2" subtitle_name="Statement of Policy; Construction of Article"> <level label="a"> <text>To the extent that a statement of a general rule of law conflicts or is inconsistent with an exception or a qualification applicable to a special area, particular person, or set of circumstances, the exception or qualification prevails.</text> </level> <level label="b"> <text>A provision in Division II of this article prevails over a conflicting or inconsistent provision in Division I of this article or a provision in the Tax – General Article relating to alcoholic beverages.</text> </level> <level label="c"> <text>A provision in Division III of this article prevails over a conflicting or inconsistent provision in Division I or Division II of this article or a provision in the Tax – General Article relating to cannabis.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="1-203" title_number="1" title_name="Definitions; General Provisions" subtitle_number="2" subtitle_name="Statement of Policy; Construction of Article"> <text>A municipality may not impose an additional license fee or tax other than the usual property tax on alcoholic beverages or the exercise of a privilege conferred by a license.</text> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="1-301" title_number="1" title_name="Definitions; General Provisions" subtitle_number="3" subtitle_name="Alcohol, Tobacco, and Cannabis Commission"> <text>In this subtitle, “Division director” means the director of the Field Enforcement Division of the Office of the Executive Director.</text> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="1-302" title_number="1" title_name="Definitions; General Provisions" subtitle_number="3" subtitle_name="Alcohol, Tobacco, and Cannabis Commission"> <text>There is an Alcohol, Tobacco, and Cannabis Commission.</text> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="1-303" title_number="1" title_name="Definitions; General Provisions" subtitle_number="3" subtitle_name="Alcohol, Tobacco, and Cannabis Commission"> <level label="a"> <level label="1"> <text>The Commission consists of five members to be appointed by the Governor with the advice and consent of the Senate.</text> </level> <level label="2"> <text>The presiding officer of either House of the General Assembly may recommend to the Governor a list of individuals for appointment to the Commission.</text> </level> <level label="3"> <text>Of the Commission members:</text> <level label="i"> <text>one shall be knowledgeable and experienced in public health matters;</text> </level> <level label="ii"> <text>one shall be knowledgeable and experienced in law enforcement matters;</text> </level> <level label="iii"> <text>one shall be knowledgeable and experienced in the alcoholic beverages industry; and</text> </level> <level label="iv"> <text>two shall be members of the public who are knowledgeable and experienced in fiscal matters and shall have substantial experience:</text> <level label="1"> <text>as an executive with fiduciary responsibilities in charge of a large organization or foundation;</text> </level> <level label="2"> <text>in an academic field relating to finance or economics; or</text> </level> <level label="3"> <text>as an accountant, an economist, or a financial analyst.</text> </level> </level> </level> <level label="4"> <text>In addition to the members appointed under paragraph (3) of this subsection, the Secretary of Health and the Secretary of State Police, or their designees, may participate in the Commission as ex officio nonvoting members.</text> </level> </level> <level label="b"> <text>At the time of appointment, each member of the Commission shall be:</text> <level label="1"> <text>at least 25 years old;</text> </level> <level label="2"> <text>a resident of the State who has resided in the State for at least 5 years;</text> </level> <level label="3"> <text>a qualified voter of the State; and</text> </level> <level label="4"> <text>an individual who has not been convicted of or granted probation before judgment for a serious crime or a crime that involves moral turpitude.</text> </level> </level> <level label="c"> <level label="1"> <text>The term of a member is 5 years.</text> </level> <level label="2"> <text>The terms of members are staggered as required by the terms provided for members of the Commission on June 30, 2020.</text> </level> <level label="3"> <text>At the end of a term, a member continues to serve until a successor is appointed and qualifies.</text> </level> <level label="4"> <text>A member who is appointed after a term has begun serves only for the rest of the term and until a successor is appointed and qualifies.</text> </level> <level label="5"> <text>A member may not serve for more than two full terms.</text> </level> </level> <level label="d"> <level label="1"> <text>Subject to the hearing requirements of this subsection, the Governor may remove a member for cause.</text> </level> <level label="2"> <text>Before the Governor removes a member, the Governor shall give the member notice and an opportunity for a public hearing.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="1-304" title_number="1" title_name="Definitions; General Provisions" subtitle_number="3" subtitle_name="Alcohol, Tobacco, and Cannabis Commission"> <level label="a"> <text>A member of the Commission may not:</text> <level label="1"> <text>have a direct or indirect financial interest, ownership, or management, including holding any stocks, bonds, or other similar financial interests, in the alcohol, tobacco, or cannabis industries;</text> </level> <level label="2"> <text>have an official relationship to a person who holds a license or permit under this article or Title 16, Title 16.5, Title 16.7, or Title 16.9 of the Business Regulation Article;</text> </level> <level label="3"> <text>be an elected official;</text> </level> <level label="4"> <text>receive or share in, directly or indirectly, the receipts or proceeds of any activities conducted in the alcohol, tobacco, or cannabis industries;</text> </level> <level label="5"> <text>have a beneficial interest in any contract for the manufacture or sale of any device or product or the provision of any independent consulting services in connection with a holder of a license or permit issued under this article or Title 16, Title 16.5, Title 16.7, or Title 16.9 of the Business Regulation Article; or</text> </level> <level label="6"> <text>accept a contribution of money or property worth at least $100 from an entity or individual associated with the alcohol, tobacco, or cannabis industries with respect to the regulation of alcohol, tobacco, or cannabis.</text> </level> </level> <level label="b"> <text>A member of the Commission shall file a financial disclosure statement with the State Ethics Commission in accordance with Title 5, Subtitle 6 of the General Provisions Article.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="1-305" title_number="1" title_name="Definitions; General Provisions" subtitle_number="3" subtitle_name="Alcohol, Tobacco, and Cannabis Commission"> <text>From among its members, the Commission annually shall elect a chair.</text> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="1-306" title_number="1" title_name="Definitions; General Provisions" subtitle_number="3" subtitle_name="Alcohol, Tobacco, and Cannabis Commission"> <level label="a"> <text>A majority of the full authorized membership of the Commission is a quorum.</text> </level> <level label="b"> <text>The Commission shall meet monthly at the times and places that the Commission determines.</text> </level> <level label="c"> <level label="1"> <text>The secretary of the Commission promptly shall send the Governor a certified copy of the minutes of each meeting of the Commission.</text> </level> <level label="2"> <text>The minutes shall include a copy of each regulation that is adopted.</text> </level> </level> <level label="d"> <text>Each member of the Commission is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the budget of the Commission.</text> </level> <level label="e"> <level label="1"> <text>With the advice of the Commission, the Executive Director may employ staff in accordance with the State budget.</text> </level> <level label="2"> <text>The staff of the Commission is in the State Personnel Management System.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="1-307" title_number="1" title_name="Definitions; General Provisions" subtitle_number="3" subtitle_name="Alcohol, Tobacco, and Cannabis Commission"> <level label="a"> <text>The Commission has the powers and duties set forth in this section.</text> </level> <level label="b"> <text>The Commission shall:</text> <level label="1"> <text>educate the public, by resource sharing and serving as an information clearinghouse, on such topics as:</text> <level label="i"> <text>recent increases in alcohol content for popular beer and other beverages;</text> </level> <level label="ii"> <text>the proper limits of drinking for adults;</text> </level> <level label="iii"> <text>the adverse consequences of surpassing those limits;</text> </level> <level label="iv"> <text>parental or adult responsibility for serving alcohol to underage individuals; and</text> </level> <level label="v"> <text>comparable topics relating to smoking, vaping, tobacco, other tobacco products, electronic nicotine delivery systems, cannabis, and cannabis products; and</text> </level> </level> <level label="2"> <text>subject to federal approval, ensure that all alcoholic beverages sold in the State with an alcohol content exceeding 4.5% by volume bear a large and conspicuous label stating the percentage of alcohol content.</text> </level> </level> <level label="c"> <level label="1"> <text>The Commission shall conduct studies of:</text> <level label="i"> <text>the operation and administration of similar laws in other states or countries; and</text> </level> <level label="ii"> <text>federal laws that may affect the operation of the alcohol, tobacco, or cannabis industries, the literature on those industries, and the reaction of residents of the State to existing and potential features of those industries.</text> </level> </level> <level label="2"> <text>The Commission shall submit to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly the studies required under this subsection.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="1-308" title_number="1" title_name="Definitions; General Provisions" subtitle_number="3" subtitle_name="Alcohol, Tobacco, and Cannabis Commission"> <text>The Commission shall develop best practices for:</text> <level label="1"> <text>the dedication of a minimum effective portion of the budget of a local licensing board to administrative enforcement activities, such as inspections, compliance checks, overservice, operations, and trade practice violations;</text> </level> <level label="2"> <text>the carrying out of compliance checks for alcoholic beverages licenses, in which each license is checked at least once a year;</text> </level> <level label="3"> <text>the development of guidelines for the minimum capacity of inspections carried out by inspectors of local licensing boards, based on the number and type of licensed outlets in the licensing jurisdiction;</text> </level> <level label="4"> <text>ensuring that alcoholic beverages inspections be based on data such as the violation history of the license holder, and calls for emergency assistance, emergency medical service, or nonemergency service, so that resources are being allocated based on where the greatest need is;</text> </level> <level label="5"> <text>the reporting of aggregate data between local police and local licensing boards;</text> </level> <level label="6"> <text>the development of mandatory State–provided training for liquor inspectors;</text> </level> <level label="7"> <text>reporting by the State to the affected local licensing board of a State–issued license or permit within 10 days after the State receives an application;</text> </level> <level label="8"> <text>the development of a public health impact statement for all changes to the State alcoholic beverages laws; and</text> </level> <level label="9"> <text>ensuring that:</text> <level label="i"> <text>all license holders, managers, and servers receive certification from an approved alcohol awareness program; and</text> </level> <level label="ii"> <text>at least one employee who is certified in an alcohol awareness program be on the licensed premises at all times when alcoholic beverages are served.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="1-309" title_number="1" title_name="Definitions; General Provisions" subtitle_number="3" subtitle_name="Alcohol, Tobacco, and Cannabis Commission"> <level label="a"> <text>With the advice and consent of the Senate, the Governor shall appoint an Executive Director of the Commission.</text> </level> <level label="b"> <text>The Executive Director serves at the pleasure of the Governor.</text> </level> <level label="c"> <text>The Executive Director shall:</text> <level label="1"> <text>have the training and experience, including knowledge of the Maryland alcohol, tobacco, and cannabis regulatory system, that is needed to direct the work of the Commission; and</text> </level> <level label="2"> <text>devote full time to the duties of office and may not engage in another profession or occupation.</text> </level> </level> <level label="d"> <text>The Executive Director may be a sworn police officer with the powers granted to an officer or employee of the Field Enforcement Division under § 1–313 of this subtitle.</text> </level> <level label="e"> <text>The Executive Director is entitled to the salary provided in the State budget.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="1-309.1" title_number="1" title_name="Definitions; General Provisions" subtitle_number="3" subtitle_name="Alcohol, Tobacco, and Cannabis Commission"> <level label="a"> <text>In this section, “Advisory Board” means the Advisory Board on Medical and Adult–Use Cannabis.</text> </level> <level label="b"> <text>There is an Advisory Board on Medical and Adult–Use Cannabis.</text> </level> <level label="c"> <text>The Advisory Board shall:</text> <level label="1"> <text>consider all matters submitted to it by the Office of Social Equity, the Governor, the Maryland Cannabis Administration, or the General Assembly; and</text> </level> <level label="2"> <text>study and make recommendations on:</text> <level label="i"> <text>the impact on the legal medical and adult–use cannabis industry in the State if the federal government:</text> <level label="1"> <text>reschedules cannabis from Schedule I to Schedule III under the federal Controlled Substances Act; or</text> </level> <level label="2"> <text>removes cannabis from the list of controlled substances under the federal Controlled Substances Act;</text> </level> </level> <level label="ii"> <text>measures to protect and promote the legal medical and adult–use cannabis industry in the State if cannabis is:</text> <level label="1"> <text>rescheduled from Schedule I to Schedule III; or</text> </level> <level label="2"> <text>removed from the federal Controlled Substances Act;</text> </level> </level> <level label="iii"> <text>measures to enable standard and micro cannabis licensees and small businesses to compete in interstate commerce related to the cultivation, manufacture, distribution, and testing of cannabis and cannabis products;</text> </level> <level label="iv"> <text>methods to ensure that there is an adequate supply of affordable cannabis and cannabis products for qualifying patients, including cannabis and cannabis products containing varying levels of potency; and</text> </level> <level label="v"> <text>methods to assist social equity applicants, social equity licensees, and small, minority, and women–owned businesses to:</text> <level label="1"> <text>access funds for operating or capital expenses associated with a business participating in the medical and adult–use cannabis industry;</text> </level> <level label="2"> <text>obtain financing from a lender, as defined in § 36–1401 of this article; and</text> </level> <level label="3"> <text>partner with operational cannabis licensees in ways that the social equity applicants or licensees or small, minority, or women–owned businesses retain ownership and control of the licenses and businesses.</text> </level> </level> </level> </level> <level label="d"> <level label="1"> <text>The Advisory Board consists of the following members, appointed by the Governor with the advice and consent of the Senate:</text> <level label="i"> <text>three members that have substantial experience in one or more of the following:</text> <level label="1"> <text>cannabis law, science, or policy;</text> </level> <level label="2"> <text>public health or health care;</text> </level> <level label="3"> <text>agriculture;</text> </level> <level label="4"> <text>finance; or</text> </level> <level label="5"> <text>addiction treatment;</text> </level> </level> <level label="ii"> <text>one academic researcher with at least 5 years of experience in social or health equity;</text> </level> <level label="iii"> <text>one representative of an independent testing laboratory registered under § 36–408 of this article;</text> </level> <level label="iv"> <text>two representatives who hold a standard grower license under § 36–401 of this article;</text> </level> <level label="v"> <text>two representatives who hold a standard processor license under § 36–401 of this article;</text> </level> <level label="vi"> <text>two representatives who hold a standard dispensary license under § 36–401 of this article;</text> </level> <level label="vii"> <text>two representatives who hold a micro grower license under § 36–401 of this article;</text> </level> <level label="viii"> <text>two representatives who hold a micro processor license under § 36–401 of this article;</text> </level> <level label="ix"> <text>two representatives who hold a micro dispensary license under § 36–401 of this article;</text> </level> <level label="x"> <text>one representative who holds an incubator space license under § 36–401 of this article;</text> </level> <level label="xi"> <text>one representative who holds an on–site consumption license under § 36–401 of this article;</text> </level> <level label="xii"> <text>one representative of an organization that advocates on behalf of patients who engage in the medical use of cannabis;</text> </level> <level label="xiii"> <text>one representative of an organization that advocates on behalf of consumers who engage in the adult use of cannabis; and</text> </level> <level label="xiv"> <text>one health care provider who is registered to certify patients to obtain medical cannabis under § 36–301 of this article.</text> </level> </level> <level label="2"> <text>The Advisory Board shall elect a chair from among its members.</text> </level> </level> <level label="e"> <text>The President of the Senate and the Speaker of the House may recommend to the Governor a list of individuals for appointment to the Advisory Board.</text> </level> <level label="f"> <level label="1"> <text>The term of a member of the Advisory Board is 4 years.</text> </level> <level label="2"> <text>At the end of a term, a member continues to serve until a successor is appointed and qualifies.</text> </level> <level label="3"> <text>An appointed member may not serve more than two full terms.</text> </level> <level label="4"> <text>The positions for members appointed under subsection (d)(1)(vii) through (xi) of this section become effective when the first licenses are issued under those respective license types.</text> </level> </level> <level label="g"> <text>An appointed member of the Advisory Board must be:</text> <level label="1"> <text>at least 25 years old;</text> </level> <level label="2"> <text>a resident of the State who has resided in the State for at least the immediately preceding 5 years before the appointment; and</text> </level> <level label="3"> <text>a registered voter of the State.</text> </level> </level> <level label="h"> <text>The Advisory Board shall establish at least two subcommittees to focus on medical and adult–use cannabis.</text> </level> <level label="i"> <text>To the extent practicable and consistent with federal and State law, the membership of the Advisory Board shall reflect the racial, ethnic, and gender diversity of the State.</text> </level> <level label="j"> <text>The Maryland Cannabis Administration shall provide staff for the Advisory Board.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="1-310" title_number="1" title_name="Definitions; General Provisions" subtitle_number="3" subtitle_name="Alcohol, Tobacco, and Cannabis Commission"> <text>The Executive Director and all employees in the Office of the Executive Director may not accept a contribution of money or property worth at least $100 from an entity or individual associated with the alcohol, tobacco, or cannabis industries with respect to regulation of alcohol, tobacco, or cannabis.</text> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="1-311" title_number="1" title_name="Definitions; General Provisions" subtitle_number="3" subtitle_name="Alcohol, Tobacco, and Cannabis Commission"> <level label="a"> <text>The Executive Director shall adopt regulations to discharge the duties under:</text> <level label="1"> <text>this article; and</text> </level> <level label="2"> <text>Titles 16, 16.5, 16.7, and 16.9 of the Business Regulation Article.</text> </level> </level> <level label="b"> <text>The Executive Director may adopt regulations regarding:</text> <level label="1"> <text>labeling and advertising similar to the regulations adopted by the Alcohol and Tobacco Tax and Trade Bureau of the United States Department of the Treasury;</text> </level> <level label="2"> <text>nature, form, and capacity of containers;</text> </level> <level label="3"> <text>credit sales;</text> </level> <level label="4"> <text>records to be kept by license holders and others engaged in the business;</text> </level> <level label="5"> <text>the amount of deposit on returnable beer containers that manufacturers and wholesalers of beer charge and collect; and</text> </level> <level label="6"> <text>any other subject the Executive Director considers necessary for the proper administration of the duties of the Executive Director under this article, Title 16, Title 16.5, Title 16.7, or Title 16.9 of the Business Regulation Article, or the provisions of the Tax – General Article relating to the alcoholic beverage tax or the tobacco tax.</text> </level> </level> <level label="c"> <level label="1"> <text>Any violation of a regulation adopted by the Executive Director under this article, Title 16, Title 16.5, Title 16.7, or Title 16.9 of the Business Regulation Article, or the provisions of the Tax – General Article relating to the alcoholic beverage tax or the tobacco tax is grounds to revoke or suspend a license.</text> </level> <level label="2"> <text>The violator is subject to the penalties provided under § 6–402(a) of this article.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="1-312" title_number="1" title_name="Definitions; General Provisions" subtitle_number="3" subtitle_name="Alcohol, Tobacco, and Cannabis Commission"> <text>By regulation, the Executive Director may:</text> <level label="1"> <text>establish or prohibit the maximum discounts that may be allowed by a manufacturer, wholesaler, or nonresident winery permit holder in the sale and distribution of wine and liquor; or</text> </level> <level label="2"> <text>prohibit the giving of discounts by a manufacturer, wholesaler, or nonresident winery permit holder in the sale and distribution of wine and liquor.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="1-313" title_number="1" title_name="Definitions; General Provisions" subtitle_number="3" subtitle_name="Alcohol, Tobacco, and Cannabis Commission"> <level label="a"> <text>There is a Field Enforcement Division in the Office of the Executive Director.</text> </level> <level label="b"> <level label="1"> <text>The Field Enforcement Division may employ officers and employees as provided in the State budget.</text> </level> <level label="2"> <text>The officers and employees of the Field Enforcement Division:</text> <level label="i"> <text>shall be sworn police officers;</text> </level> <level label="ii"> <text>shall have the powers, duties, and responsibilities of peace officers to enforce the provisions of this article relating to:</text> <level label="1"> <text>the unlawful importation of alcoholic beverages, tobacco, and cannabis into the State;</text> </level> <level label="2"> <text>the unlawful manufacture of alcoholic beverages, tobacco, and cannabis in the State;</text> </level> <level label="3"> <text>the transportation and distribution throughout the State of alcoholic beverages, tobacco, and cannabis that are manufactured illegally and on which any alcoholic beverages taxes, tobacco taxes, or cannabis taxes imposed by the State are due and unpaid; and</text> </level> <level label="4"> <text>the manufacture, sale, barter, transportation, distribution, or other form of owning, handling, or dispersing alcoholic beverages, tobacco, or cannabis by any person not licensed or authorized under this article, provisions of the Tax – General Article relating to alcoholic beverages, tobacco, or cannabis, or provisions of the Business Regulation Article relating to alcoholic beverages, tobacco, or cannabis;</text> </level> </level> <level label="iii"> <text>may issue a citation or other charging document to a person who has committed a violation of:</text> <level label="1"> <text>section 10–108 of the Criminal Law Article;</text> </level> <level label="2"> <text>Title 21, Subtitle 2D of the Health – General Article;</text> </level> <level label="3"> <text>Title 21, Subtitle 2E of the Health – General Article; and</text> </level> <level label="4"> <text>Title 21, Subtitle 2F of the Health – General Article; and</text> </level> </level> <level label="iv"> <text>may make cooperative arrangements for and work and cooperate with the Office of the Comptroller, local State’s Attorneys, sheriffs, bailiffs, police, and other prosecuting and peace officers to enforce this article.</text> </level> </level> </level> <level label="c"> <text>The Field Enforcement Division:</text> <level label="1"> <text>shall consult with and advise the local State’s Attorneys and other law enforcement officials and police officers regarding enforcement problems in their respective jurisdictions; and</text> </level> <level label="2"> <text>may recommend changes to improve the administration of this article, provisions of the Tax – General Article relating to alcoholic beverages, tobacco, and cannabis, and provisions of the Business Regulation Article relating to tobacco.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="1-314" title_number="1" title_name="Definitions; General Provisions" subtitle_number="3" subtitle_name="Alcohol, Tobacco, and Cannabis Commission"> <text>The Executive Director may delegate authority under this article, provisions of the Tax – General Article relating to alcoholic beverages and tobacco, and provisions of the Business Regulation Article relating to tobacco to the Division director or a designee to issue or refuse to issue licenses and permits.</text> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="1-315" title_number="1" title_name="Definitions; General Provisions" subtitle_number="3" subtitle_name="Alcohol, Tobacco, and Cannabis Commission"> <level label="a"> <text>Except as provided in subsection (b) of this section, the Executive Director may delegate authority to conduct hearings on violations of this article or of any regulations adopted under this article, the provisions of the Tax – General Article relating to alcoholic beverages or tobacco, or the provisions of the Business Regulation Article relating to tobacco to the Division director or any other employee of the Executive Director’s office.</text> </level> <level label="b"> <text>The Division director or any other employee of the Executive Director’s office delegated authority to conduct hearings under subsection (a) of this section:</text> <level label="1"> <text>may not impose a penalty provided for under this article or a provision of the Tax – General Article relating to alcoholic beverages; and</text> </level> <level label="2"> <text>shall report the findings and recommendations to the Executive Director to take the action that the Executive Director considers appropriate.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="1-316" title_number="1" title_name="Definitions; General Provisions" subtitle_number="3" subtitle_name="Alcohol, Tobacco, and Cannabis Commission"> <text>To provide a basis for annual comparison of the scope of the alcoholic beverages industry in the State and the consumption habits of residents of the State, the Executive Director shall submit to the Governor and, in accordance with § 2–1257 of the State Government Article, to the General Assembly, an annual report on or before December 1 of each year that includes statistical information on the alcoholic beverages business in the State that the Executive Director believes to be of interest to the public and the industry.</text> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="1-317" title_number="1" title_name="Definitions; General Provisions" subtitle_number="3" subtitle_name="Alcohol, Tobacco, and Cannabis Commission"> <level label="a"> <text>The Executive Director shall:</text> <level label="1"> <text>maintain a record of:</text> <level label="i"> <text>each license issued or approved under this article and Titles 16, 16.5, 16.7, and 16.9 of the Business Regulation Article; and</text> </level> <level label="ii"> <text>any revocation, suspension, or cancellation of a license and any restriction imposed on a license with a brief explanation of the reason for the action; and</text> </level> </level> <level label="2"> <text>allow any person to inspect the records at the Office of the Executive Director during regular business hours.</text> </level> </level> <level label="b"> <text>The records of licenses required under subsection (a) of this section and any indices or dockets created to maintain the records:</text> <level label="1"> <text>shall be retained for the later to occur of:</text> <level label="i"> <text>3 years after the date of the last record entry; or</text> </level> <level label="ii"> <text>the date on which all audit requirements have been complied with; and</text> </level> </level> <level label="2"> <text>may be destroyed after:</text> <level label="i"> <text>the retention period in item (1) of this subsection has expired; and</text> </level> <level label="ii"> <text>Title 10, Subtitle 6, Part III of the State Government Article has been complied with.</text> </level> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="1-318" title_number="1" title_name="Definitions; General Provisions" subtitle_number="3" subtitle_name="Alcohol, Tobacco, and Cannabis Commission"> <text>The Executive Director may:</text> <level label="1"> <text>under § 6–202 of this article, inspect and search a building, vehicle, or premises where alcoholic beverages are authorized to be kept, transported, manufactured, or sold;</text> </level> <level label="2"> <text>under § 6–203 of this article, use certain equipment and other means to measure the quantity and quality of alcoholic beverages; and</text> </level> <level label="3"> <text>under § 6–204 of this article, issue summonses for witnesses for hearings and inquiries.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="1-319" title_number="1" title_name="Definitions; General Provisions" subtitle_number="3" subtitle_name="Alcohol, Tobacco, and Cannabis Commission"> <text>The Executive Director shall enforce the provisions of this article and provisions of the Tax – General Article relating to alcoholic beverages applicable to:</text> <level label="1"> <text>the purchase or importation of alcoholic beverages by a department of liquor control, a liquor control board, or the Alcohol Beverage Services for Montgomery County; and</text> </level> <level label="2"> <text>the sale of alcoholic beverages to a wholesaler or retail dealer by a department of liquor control, a liquor control board, or the Alcohol Beverage Services for Montgomery County.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="1-320" title_number="1" title_name="Definitions; General Provisions" subtitle_number="3" subtitle_name="Alcohol, Tobacco, and Cannabis Commission"> <text>The Executive Director may:</text> <level label="1"> <text>investigate the manufacture, sale, purchase, use, and transportation of industrial alcohol unfit for beverage use to the extent reasonably necessary to prevent conversion into an alcoholic beverage fit for consumption; and</text> </level> <level label="2"> <text>request information and assistance from other administrative units of the State, county, and municipal governments, county and municipal police departments, and all prosecuting officers as considered necessary by the Executive Director to carry out this article and provisions of the Tax – General Article relating to alcoholic beverages.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="1-321" title_number="1" title_name="Definitions; General Provisions" subtitle_number="3" subtitle_name="Alcohol, Tobacco, and Cannabis Commission"> <level label="a"> <text>In order to increase efficiency and accuracy in the performance of their respective duties and responsibilities under this article and other laws relating to alcohol and tobacco, the Commission and the Comptroller shall:</text> <level label="1"> <text>cooperate and share information and personnel in investigations of licensed premises and other locations and materials relating to the enforcement of the alcohol and tobacco laws of the State;</text> </level> <level label="2"> <text>cooperate and share information and personnel in other matters relating to the manufacture, processing, importation, taxation, sale, and service of alcohol and tobacco in the State; and</text> </level> <level label="3"> <text>enter into a memorandum of understanding for cooperative activities in inspections and other enforcement activities relating to the alcohol and tobacco laws of the State.</text> </level> </level> <level label="b"> <level label="1"> <text>The Commission may enter into memoranda of understanding and other cooperative arrangements with federal, State, and local governmental units in carrying out this article and other alcohol and tobacco laws of the State in the interest of reducing duplication of efforts and reducing the overall costs of administration of inspection and enforcement programs to the State.</text> </level> <level label="2"> <text>The Executive Director may also enter into memoranda of understanding and other cooperative arrangements with federal, State, and local governmental units to address operational matters and efficiencies in carrying out this article and other alcohol and tobacco laws of the State.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="1-322" title_number="1" title_name="Definitions; General Provisions" subtitle_number="3" subtitle_name="Alcohol, Tobacco, and Cannabis Commission"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Administration” has the meaning stated in § 36–101 of this article.</text> </level> <level label="3"> <text>“Cannabis licensee” has the meaning stated in § 36–101 of this article.</text> </level> <level label="4"> <text>“Grant Program” means the Social Equity Partnership Grant Program.</text> </level> <level label="5"> <text>“Office” means the Office of Social Equity.</text> </level> <level label="6"> <level label="i"> <text>“Qualifying partnership” means a meaningful partnership between an operational cannabis licensee and a social equity licensee that:</text> <level label="1"> <text>supports or advises the social equity licensee; and</text> </level> <level label="2"> <text>is authorized by the Administration.</text> </level> </level> <level label="ii"> <text>“Qualifying partnership” includes a partnership through which the operational cannabis licensee provides any of the following to a social equity licensee:</text> <level label="1"> <text>training;</text> </level> <level label="2"> <text>mentorship; or</text> </level> <level label="3"> <text>shared commercial space or equipment.</text> </level> </level> </level> <level label="7"> <text>“Social equity licensee” has the meaning stated in § 36–101 of this article.</text> </level> </level> <level label="b"> <level label="1"> <text>There is a Social Equity Partnership Grant Program in the Office.</text> </level> <level label="2"> <text>The purpose of the Grant Program is to promote qualifying partnerships between operational cannabis licensees and social equity licensees.</text> </level> </level> <level label="c"> <level label="1"> <text>The Office shall implement and administer the Grant Program, including by clearly defining the parameters of a qualifying partnership.</text> </level> <level label="2"> <text>Subject to paragraph (3) of this subsection, the Office has discretion to approve, deny, or revoke qualifying partnerships.</text> </level> <level label="3"> <level label="i"> <text>The Office may approve qualifying partnerships where a cost or other fee is imposed by an operational cannabis licensee on a social equity licensee if the cost or other fee is substantially reduced from the market value.</text> </level> <level label="ii"> <text>Costs or other fees under subparagraph (i) of this paragraph may include charges for the rent of facilities or equipment.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>The Office shall award grants to operational cannabis licensees that have qualifying partnerships with a social equity licensee.</text> </level> <level label="2"> <text>Grant amounts shall be based on the nature of the qualifying partnership between the social equity licensee and the operational cannabis licensee.</text> </level> <level label="3"> <text>If an operational cannabis licensee has a license that was converted by the Administration under § 36–401(b)(1)(ii) of this article, the total amount of grants issued by the Office under this section to the licensee may not exceed:</text> <level label="i"> <text>the cost of the license conversion fee that was paid by the licensee; or</text> </level> <level label="ii"> <text>$250,000 per year per qualifying partnership.</text> </level> </level> </level> <level label="e"> <text>The Office may require a grant recipient that fails to fulfill the requirements of the grant to return all or part of the grant to the Grant Program.</text> </level> <level label="f"> <text>For fiscal year 2025 and each fiscal year thereafter, the Governor shall include in the annual budget bill an appropriation of $5,000,000 for the Grant Program, utilizing the Cannabis Regulation and Enforcement Fund established under § 36–206 of this article.</text> </level> <level label="g"> <text>The Office shall adopt regulations to:</text> <level label="1"> <text>implement the provisions of this section;</text> </level> <level label="2"> <text>administer the Grant Program;</text> </level> <level label="3"> <text>establish eligibility and grant application requirements;</text> </level> <level label="4"> <text>establish a process for reviewing grant applications and awarding grants to operational cannabis licensees; and</text> </level> <level label="5"> <text>specify criteria and procedures to monitor eligibility for the grants authorized under this section.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="1-323" title_number="1" title_name="Definitions; General Provisions" subtitle_number="3" subtitle_name="Alcohol, Tobacco, and Cannabis Commission"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Advertise” includes packaging, labeling, or electronic communication.</text> </level> <level label="3"> <level label="i"> <text>“Retailer” means a person that:</text> <level label="1"> <text>sells, prepares, or maintains unauthorized consumable products; or</text> </level> <level label="2"> <text>advertises, represents, or holds itself out as selling, preparing, or maintaining unauthorized consumable products.</text> </level> </level> <level label="ii"> <text>“Retailer” includes the following persons, if the person otherwise meets the definition established under subparagraph (i) of this paragraph:</text> <level label="1"> <text>a manufacturer;</text> </level> <level label="2"> <text>a wholesaler;</text> </level> <level label="3"> <text>a store;</text> </level> <level label="4"> <text>a restaurant;</text> </level> <level label="5"> <text>a hotel;</text> </level> <level label="6"> <text>a catering facility;</text> </level> <level label="7"> <text>a camp;</text> </level> <level label="8"> <text>a bakery;</text> </level> <level label="9"> <text>a delicatessen;</text> </level> <level label="10"> <text>a supermarket;</text> </level> <level label="11"> <text>a grocery store;</text> </level> <level label="12"> <text>a convenience store;</text> </level> <level label="13"> <text>a gas station;</text> </level> <level label="14"> <text>a food company; and</text> </level> <level label="15"> <text>a drink company.</text> </level> </level> </level> <level label="4"> <text>“Unauthorized consumable product” means:</text> <level label="i"> <text>a tianeptine product as defined in § 21–2D–01 of the Health – General Article;</text> </level> <level label="ii"> <text>a kratom product, as defined in § 21–2E–01 of the Health – General Article, that does not comply with Title 21, Subtitle 2E of the Health – General Article;</text> </level> <level label="iii"> <text>a phenibut product, as defined in § 21–2F–01 of the Health – General Article, that does not comply with Title 21, Subtitle 2F of the Health – General Article; and</text> </level> <level label="iv"> <text>a consumable product that contains a poisonous or deleterious substance in violation of a rule or regulation adopted under § 21–239(c) of the Health – General Article and is designated by the Secretary of Health for enforcement by the Executive Director.</text> </level> </level> </level> <level label="b"> <text>A retailer may not distribute, sell, expose for sale, or advertise for sale an unauthorized consumable product.</text> </level> <level label="c"> <text>The Executive Director may seize, confiscate, or destroy:</text> <level label="1"> <text>an unauthorized consumable product that is offered, advertised, or displayed for sale to a consumer in the State; and</text> </level> <level label="2"> <text>a product that is labeled, advertised, represented, or offered for sale as containing:</text> <level label="i"> <text>7–hydroxymitragynine in an amount that:</text> <level label="1"> <text>for a kratom product, is greater than the amount permitted under § 21–2E–02(b)(1)(iii) of the Health – General Article; or</text> </level> <level label="2"> <text>is greater than 1 milligram per serving;</text> </level> </level> <level label="ii"> <text>tianeptine sodium;</text> </level> <level label="iii"> <text>tianeptine sulfate; or</text> </level> <level label="iv"> <text>beta–phenyl–gamma–aminobutyric acid HCl.</text> </level> </level> </level> <level label="d"> <text>A product seized under subsection (c) of this section is presumed to be contraband and subject to summary forfeiture unless the person from whom the product was seized demonstrates the product is:</text> <level label="1"> <text>if applicable, in compliance with Title 21, Subtitle 2E of the Health – General Article; or</text> </level> <level label="2"> <text>authorized for sale and distribution for the purposes of human consumption by:</text> <level label="i"> <text>the Maryland Department of Health; or</text> </level> <level label="ii"> <text>the U.S. Food and Drug Administration.</text> </level> </level> </level> <level label="e"> <text>A retailer that violates subsection (b) of this section is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $5,000.</text> </level> <level label="f"> <text>In addition to the penalties established under this section:</text> <level label="1"> <text>the District Court may order the Executive Director, the Comptroller, or the applicable local licensing board or commission to:</text> <level label="i"> <text>suspend or revoke a license issued under this article or Title 16, 16.5, 16.7, or 17 of the Business Regulation Article; and</text> </level> <level label="ii"> <text>dispose of or destroy an unauthorized consumable product seized under subsection (c) of this section; and</text> </level> </level> <level label="2"> <text>a retailer that violates this section is liable for civil damages sustained by an individual that result from the violation.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="1-3A-01" title_number="1" title_name="Definitions; General Provisions" subtitle_number="3A" subtitle_name="Community Reinvestment and Repair Fund"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Executive Director” means the Executive Director of the Office of Social Equity.</text> </level> <level label="c"> <text>“Fund” means the Community Reinvestment and Repair Fund.</text> </level> <level label="d"> <text>“Office” means the Office of Social Equity.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="1-3A-02" title_number="1" title_name="Definitions; General Provisions" subtitle_number="3A" subtitle_name="Community Reinvestment and Repair Fund"> <level label="a"> <text>The General Assembly finds that:</text> <level label="1"> <text>the goal of regulation and taxation of cannabis in the State is to create a safe and regulated industry that benefits the public interest;</text> </level> <level label="2"> <text>the use of incarceration in enforcing prohibitions on the importation, manufacture, use, sale, and distribution of cannabis varied within the State by jurisdiction and racial classification;</text> </level> <level label="3"> <text>analysis of geographic and demographic characteristics revealed disparities in arrests, prosecution, and imprisonment for cannabis use, with a negative and disproportionate impact on some communities and neighborhoods within the State; and</text> </level> <level label="4"> <text>consequences of the disproportionate enforcement of cannabis–related offenses have contributed to the economic, public health, and social conditions of specific communities and have had significant and measurable effects on the social and financial resources available to the children, families, and local infrastructure of these communities.</text> </level> </level> <level label="b"> <text>The General Assembly therefore finds that the public interest is served by:</text> <level label="1"> <text>acknowledging and repairing the causes and consequences of disparities in arrests and imprisonment in prosecutions of cannabis–related offenses among specific populations and geographic regions;</text> </level> <level label="2"> <text>developing, among existing members of communities that have been disproportionately and negatively impacted, the capacity to ascertain and address the social and economic determinants that are fundamental to reducing the impact of longstanding inequities and improving economic, educational, and health outcomes; and</text> </level> <level label="3"> <text>being consistent with social equity principles and governance by allocating a significant portion of tax revenue from the adult–use cannabis market to the Community Reinvestment and Repair Fund for distribution to local jurisdictions to be administered by the local jurisdictions.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="1-3A-03" title_number="1" title_name="Definitions; General Provisions" subtitle_number="3A" subtitle_name="Community Reinvestment and Repair Fund"> <level label="a"> <level label="1"> <text>There is a Community Reinvestment and Repair Fund.</text> </level> <level label="2"> <text>The purpose of the Fund is to provide funds to community–based organizations that serve communities determined by the Office, in consultation with the Office of the Attorney General, to have been the most impacted by disproportionate enforcement of the cannabis prohibition before July 1, 2022.</text> </level> <level label="3"> <text>The Comptroller shall administer the Fund.</text> </level> <level label="4"> <level label="i"> <text>The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article.</text> </level> <level label="ii"> <text>The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.</text> </level> </level> <level label="5"> <text>The Fund consists of:</text> <level label="i"> <text>sales and use tax revenue distributed to the Fund under § 2–1302.2 of the Tax – General Article;</text> </level> <level label="ii"> <text>conversion fees paid by businesses under § 36–403 of this article; and</text> </level> <level label="iii"> <text>any other money from any other source accepted for the benefit of the Fund, in accordance with any conditions adopted by the Comptroller for the acceptance of donations or gifts to the Fund.</text> </level> </level> <level label="6"> <level label="i"> <text>The Fund may be used only for:</text> <level label="1"> <text>funding community–based initiatives intended to benefit low–income communities, including:</text> </level> <level label="A"> <text>behavioral health crisis response services;</text> </level> <level label="B"> <text>education and after–school programs;</text> </level> <level label="C"> <text>truancy and absenteeism intervention programs;</text> </level> <level label="D"> <text>housing and homelessness prevention initiatives;</text> </level> <level label="E"> <text>transportation improvements in high–density areas that have public transportation;</text> </level> <level label="F"> <text>job training and workforce development programs;</text> </level> <level label="G"> <text>community child care and recreational services; and</text> </level> <level label="H"> <text>programs that benefit individuals and families impacted by incarceration;</text> </level> <level label="2"> <text>funding community–based initiatives that serve disproportionately impacted areas, as defined in § 36–101 of this article; and</text> </level> <level label="3"> <text>any related administrative expenses incurred by a local government in administering the funds that do not exceed 15% of the funds received in the fiscal year.</text> </level> </level> <level label="ii"> <text>Money may not be expended from the Fund for law enforcement agencies or activities.</text> </level> <level label="iii"> <text>Money expended from the Fund is supplemental to and may not supplant funding that otherwise would be appropriated for preexisting local government programs.</text> </level> </level> <level label="7"> <level label="i"> <text>The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.</text> </level> <level label="ii"> <text>Any interest earnings of the Fund shall be credited to the General Fund of the State.</text> </level> </level> <level label="8"> <text>No part of the Fund may revert or be credited to:</text> <level label="i"> <text>the General Fund of the State; or</text> </level> <level label="ii"> <text>any other special fund of the State.</text> </level> </level> <level label="9"> <text>The Comptroller shall pay out money from the Fund.</text> </level> <level label="10"> <text>The Fund is subject to audit by the Office of Legislative Audits as provided for in § 2–1220 of the State Government Article.</text> </level> </level> <level label="b"> <level label="1"> <text>Based on the percentage allocable to each county determined by the Office, the Comptroller shall distribute funds from the Fund to each county in an amount that, for the period from July 1, 2002, to January 1, 2023, both inclusive, is proportionate to the total number of cannabis possession charges in the county compared to the total number of cannabis possession charges in the State.</text> </level> <level label="2"> <text>For any distribution of funds to a county under paragraph (1) of this subsection, the county shall hold the funds separately from other revenue and general funds.</text> </level> <level label="3"> <text>Subject to the limitations under subsection (a)(6) of this section, each county shall adopt a law establishing the purpose for which money received from the Fund may be used.</text> </level> </level> <level label="c"> <level label="1"> <text>The Office shall require each county to develop a plan for the distribution of funds to community–based organizations for use in accordance with this section.</text> </level> <level label="2"> <text>The plan developed by a county shall be:</text> <level label="i"> <text>established before distributing funds under this section;</text> </level> <level label="ii"> <text>developed in consultation with stakeholders; and</text> </level> <level label="iii"> <text>the subject of a public hearing before finalizing the plan.</text> </level> </level> <level label="3"> <text>On or before October 1, 2025, the Office shall adopt regulations to carry out this section.</text> </level> </level> <level label="d"> <text>On or before October 1, 2026, and each October 1 thereafter, each county shall submit a report to the Office on:</text> <level label="1"> <text>the amount of funds received from the Fund under subsection (b)(1) of this section;</text> </level> <level label="2"> <text>the organizations that received funding from the county under this section;</text> </level> <level label="3"> <text>the methods used by the county to solicit, review, and select organizations that may be eligible for funding under this section; and</text> </level> <level label="4"> <text>administrative expenses related to the county’s administration and distribution of the funds received under subsection (b)(1) of this section.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="1-401" title_number="1" title_name="Definitions; General Provisions" subtitle_number="4" subtitle_name="General Licensing Regulation"> <level label="a"> <text>Unless otherwise provided for in this article or the Tax – General Article, a person may not:</text> <level label="1"> <text>sell alcoholic beverages;</text> </level> <level label="2"> <text>allow alcoholic beverages to be sold;</text> </level> <level label="3"> <text>accept or deliver alcoholic beverages; or</text> </level> <level label="4"> <text>for the purpose of sale, transport, buy, possess, or keep alcoholic beverages or allow alcoholic beverages to be transported, bought, possessed, or kept:</text> <level label="i"> <text>in a vehicle, a water vessel, or an aircraft;</text> </level> <level label="ii"> <text>on any premises; or</text> </level> <level label="iii"> <text>under the person’s charge or control.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, a person may not buy, possess, store, import, transport, or keep alcoholic beverages or allow alcoholic beverages to be bought, possessed, stored, imported, transported, or kept:</text> <level label="i"> <text>in a vehicle, a water vessel, or an aircraft;</text> </level> <level label="ii"> <text>on any premises; or</text> </level> <level label="iii"> <text>under the person’s charge or control.</text> </level> </level> <level label="2"> <text>A person may perform an activity listed in paragraph (1) of this subsection if the person is:</text> <level label="i"> <text>a consumer;</text> </level> <level label="ii"> <text>subject to the requirements under this article, a license holder; or</text> </level> <level label="iii"> <text>an individual under the age of 21 years who possesses or is transporting alcoholic beverages for a lawful purpose:</text> <level label="1"> <text>with the knowledge and consent of the individual’s parent or guardian; or</text> </level> <level label="2"> <text>incident to the lawful employment of the individual under this article.</text> </level> </level> </level> </level> <level label="c"> <text>Except as provided in § 1–411 of this subtitle, an individual under the age of 21 years may not:</text> <level label="1"> <text>buy, consume, possess, store, import, transport, or keep alcoholic beverages for the individual’s own use; or</text> </level> <level label="2"> <text>buy, possess, store, import, transport, or keep alcoholic beverages for any purpose in a jurisdiction where prohibited under State law.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="1-402" title_number="1" title_name="Definitions; General Provisions" subtitle_number="4" subtitle_name="General Licensing Regulation"> <level label="a"> <text>A license or permit is not required for:</text> <level label="1"> <text>a county official who sells certain seized alcoholic beverages, as set out in Title 6, Subtitle 1 of this article;</text> </level> <level label="2"> <text>a sheriff, a receiver, an auctioneer, a trustee, an attorney, an executor, or an administrator who sells alcoholic beverages under a court order; or</text> </level> <level label="3"> <text>a common carrier, warehouseman, or other lienholder who sells alcoholic beverages under a lien.</text> </level> </level> <level label="b"> <text>Sales authorized by subsection (a) of this section may be made only to a license holder.</text> </level> <level label="c"> <text>If the purchaser in a sale described in subsection (a) of this section is a retail dealer, the seller shall pay the taxes imposed by § 5–102 of the Tax – General Article before delivery.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="1-403" title_number="1" title_name="Definitions; General Provisions" subtitle_number="4" subtitle_name="General Licensing Regulation"> <level label="a"> <level label="1"> <text>Unless otherwise provided for in this article, a person may not manufacture, blend, rectify, bottle, or allow to be manufactured, blended, rectified, or bottled any alcoholic beverages except on premises licensed under this article.</text> </level> <level label="2"> <text>A person may not buy, bargain, sell, borrow, loan, manufacture, possess, transport, or allow to be bought, bargained, sold, loaned, manufactured, possessed, or transported any personal property designed, used, or intended for use directly or immediately in connection with the unlawful manufacture of alcoholic beverages.</text> </level> </level> <level label="b"> <text>In addition to any other fine or penalty under this article, a person who violates this section is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 5 years or a fine not exceeding $10,000 or both.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="1-404" title_number="1" title_name="Definitions; General Provisions" subtitle_number="4" subtitle_name="General Licensing Regulation"> <text>Before a license or alcoholic beverages permit may be issued to an employer to engage in an activity in which the employer may employ a covered employee, as defined in § 9–101 of the Labor and Employment Article, the employer shall file with the Executive Director or local licensing board:</text> <level label="1"> <text>a certificate of compliance with the Maryland Workers’ Compensation Act; or</text> </level> <level label="2"> <text>the number of a workers’ compensation insurance policy or binder.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="1-405" title_number="1" title_name="Definitions; General Provisions" subtitle_number="4" subtitle_name="General Licensing Regulation"> <level label="a"> <text>A license may not be issued for a premises unless the premises conforms to all requirements set out in this article or the Tax – General Article.</text> </level> <level label="b"> <level label="1"> <text>This subsection does not apply to a Class 8 farm brewery license issued under § 2–210 of this article if the holder of the Class 8 farm brewery license holds a Class 8 farm brewery license first issued on or before July 1, 2015.</text> </level> <level label="2"> <text>A license or an alcoholic beverages permit may not be issued for a premises unless the premises conforms with all zoning laws, regulations, or ordinances passed in accordance with Division I of the Land Use Article.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="1-406" title_number="1" title_name="Definitions; General Provisions" subtitle_number="4" subtitle_name="General Licensing Regulation"> <level label="a"> <text>Warehouse receipts covering alcoholic beverages stored in public warehouses in the State, including government controlled warehouses, may be purchased or sold without a license or permit.</text> </level> <level label="b"> <text>Alcoholic beverages covered under subsection (a) of this section may be withdrawn or delivered in the State only to a licensed manufacturer or licensed wholesaler.</text> </level> <level label="c"> <text>The Executive Director may adopt regulations covering warehouse receipt transactions.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="1-407" title_number="1" title_name="Definitions; General Provisions" subtitle_number="4" subtitle_name="General Licensing Regulation"> <level label="a"> <level label="1"> <text>This article and the Tax – General Article do not prohibit a manufacturer or wholesaler from selling and delivering to a federally authorized purchaser:</text> <level label="i"> <text>subject to paragraph (2) of this subsection, wine and liquor without payment of taxes, if the wine and liquor are used only on the federal reservation in the State where the purchaser is assigned; and</text> </level> <level label="ii"> <text>beer.</text> </level> </level> <level label="2"> <text>The Comptroller may require that each order of wine or liquor be approved before purchase or delivery.</text> </level> </level> <level label="b"> <text>A tax on beer that is paid when the beer is purchased shall be refunded if:</text> <level label="1"> <text>a proper application is filed with the Comptroller within 90 days after the purchase; and</text> </level> <level label="2"> <text>the Comptroller approves.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="1-408" title_number="1" title_name="Definitions; General Provisions" subtitle_number="4" subtitle_name="General Licensing Regulation"> <level label="a"> <text>A person who manufactures, rectifies, blends, imports, distributes, transports, stores, warehouses, sells, or offers for sale alcoholic beverages or who holds a license to do those activities shall:</text> <level label="1"> <text>keep complete and accurate records of all alcoholic beverages purchased, sold, manufactured, rectified, blended, improved, brewed, fermented, distilled, produced, stored, warehoused, withdrawn from storage, imported, or transferred;</text> </level> <level label="2"> <text>on written request of the Comptroller, report on the form that the Comptroller requires information relating to the alcoholic beverages that are the subject of the records required to be kept; and</text> </level> <level label="3"> <text>on request of the Comptroller, make the report under oath.</text> </level> </level> <level label="b"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, each license holder shall keep records at the location designated in the license.</text> </level> <level label="2"> <text>If the license holder is allowed to have more than one location, the license holder may keep the records at the principal location.</text> </level> <level label="3"> <text>The records shall:</text> <level label="i"> <text>meet form and content requirements of the Comptroller;</text> </level> <level label="ii"> <text>be preserved for at least 2 years in a manner that ensures permanency; and</text> </level> <level label="iii"> <text>be made available for audit or inspection during regular business hours by the Comptroller or an authorized employee of the Comptroller.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>The Comptroller may without a hearing immediately suspend for a maximum of 30 days the license of a license holder who fails to comply with this section.</text> </level> <level label="2"> <text>A license suspended under this section is subject to an additional period of suspension or revocation after a hearing.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="1-409" title_number="1" title_name="Definitions; General Provisions" subtitle_number="4" subtitle_name="General Licensing Regulation"> <level label="a"> <text>A local licensing board shall:</text> <level label="1"> <text>maintain a record of:</text> <level label="i"> <text>each license that the local licensing board issues; and</text> </level> <level label="ii"> <text>any revocation, suspension, or cancellation of a license and any restriction imposed on a license with a brief explanation of the reason for the action; and</text> </level> </level> <level label="2"> <text>submit the record to the Executive Director; and</text> </level> <level label="3"> <text>allow any individual to inspect the records at the office of the local licensing board during regular business hours.</text> </level> </level> <level label="b"> <text>The records of licenses required under subsection (a) of this section and any indices or dockets created to maintain the records:</text> <level label="1"> <text>shall be retained for the later to occur of:</text> <level label="i"> <text>3 years after the date of the last record entry; or</text> </level> <level label="ii"> <text>the date on which all audit requirements have been complied with; and</text> </level> </level> <level label="2"> <text>may be destroyed after:</text> <level label="i"> <text>the retention period in item (1) of this subsection has expired; and</text> </level> <level label="ii"> <text>Title 10, Subtitle 6, Part III of the State Government Article has been complied with.</text> </level> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="1-410" title_number="1" title_name="Definitions; General Provisions" subtitle_number="4" subtitle_name="General Licensing Regulation"> <level label="a"> <level label="1"> <text>On written request of the Executive Director, each person, including a common carrier, that transports alcoholic beverages in the State in interstate or intrastate commerce shall report all consignments or deliveries of alcoholic beverages for the period that the Executive Director specifies.</text> </level> <level label="2"> <text>The reports shall be under oath and on the form that the Executive Director requires.</text> </level> </level> <level label="b"> <text>If required by the Executive Director, the reports shall state:</text> <level label="1"> <text>the name and address of the person to whom the delivery has been made;</text> </level> <level label="2"> <text>the name and address of the original consignee, if alcoholic beverages have been delivered to any person other than the originally named consignee;</text> </level> <level label="3"> <text>the point of origin;</text> </level> <level label="4"> <text>the point of delivery;</text> </level> <level label="5"> <text>the date of delivery;</text> </level> <level label="6"> <level label="i"> <text>the number and initials of each car, if the alcoholic beverages are shipped by rail;</text> </level> <level label="ii"> <text>the name of the water vessel, if the alcoholic beverages are shipped by water;</text> </level> <level label="iii"> <text>the license number of each truck, if the alcoholic beverages are shipped by truck; or</text> </level> <level label="iv"> <text>the manner in which the delivery was made, if the delivery is by other means;</text> </level> </level> <level label="7"> <text>each kind of alcoholic beverages contained in the shipment and the number of gallons of each kind; and</text> </level> <level label="8"> <text>any other information relative to shipments that the Executive Director requires.</text> </level> </level> <level label="c"> <text>This section does not authorize:</text> <level label="1"> <text>the consignment of alcoholic beverages from outside the State to a person within the State other than:</text> <level label="i"> <text>the holder of a permit, manufacturer’s license, or wholesaler’s license; or</text> </level> <level label="ii"> <text>a consumer under Title 2, Subtitle 1, Part V of this article; or</text> </level> </level> <level label="2"> <text>the consignment of alcoholic beverages from within the State to a person outside the State not authorized to receive the consignment under the law governing the point of destination.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="1-411" title_number="1" title_name="Definitions; General Provisions" subtitle_number="4" subtitle_name="General Licensing Regulation"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Authorized instructor” means an instructor at a qualified institution of higher education who:</text> <level label="i"> <text>teaches a course or program in enology, fermenting, brewing, or hospitality and tourism; and</text> </level> <level label="ii"> <text>is at least 21 years old.</text> </level> </level> <level label="3"> <text>“Qualified institution of higher education” means an institution of postsecondary education that:</text> <level label="i"> <text>generally limits enrollment to graduates of secondary schools;</text> </level> <level label="ii"> <text>awards degrees at the associate, baccalaureate, or graduate level; and</text> </level> <level label="iii"> <text>offers courses or programs in enology, fermenting, brewing, or hospitality and tourism.</text> </level> </level> <level label="4"> <text>“Qualified student” means a student who is:</text> <level label="i"> <text>at least 18 years old and under the age of 21 years; and</text> </level> <level label="ii"> <text>enrolled in a course or program in enology, fermenting, brewing, or hospitality and tourism offered by a qualified institution of higher education.</text> </level> </level> <level label="5"> <level label="i"> <text>“Taste” means to draw an alcoholic beverage into the mouth.</text> </level> <level label="ii"> <text>“Taste” does not include swallowing or otherwise consuming an alcoholic beverage.</text> </level> </level> </level> <level label="b"> <text>A qualified student may taste an alcoholic beverage if:</text> <level label="1"> <text>the qualified student:</text> <level label="i"> <text>tastes the alcoholic beverage:</text> <level label="1"> <text>for educational purposes as part of a course or program in enology, fermenting, brewing, or hospitality and tourism that the qualified student is enrolled in at a qualified institution of higher education; and</text> </level> <level label="2"> <text>only during the dates and times of the enology, fermenting, brewing, or hospitality and tourism course or program; and</text> </level> </level> <level label="ii"> <text>spits the alcoholic beverage out after tasting the alcoholic beverage;</text> </level> </level> <level label="2"> <text>an authorized instructor offers the alcoholic beverage only during the dates and times of the enology, fermenting, brewing, or hospitality and tourism course or program; and</text> </level> <level label="3"> <text>the alcoholic beverage remains under the control of an authorized instructor.</text> </level> </level> <level label="c"> <text>A qualified institution of higher education is not required to obtain a permit or license issued under this article to allow a qualified student to taste an alcoholic beverage in accordance with this section if the qualified institution does not impose an extra fee or charge for the alcoholic beverage tasted by a qualified student.</text> </level> </section>