A cannabis licensee may not sell, transfer, or deliver cannabis or cannabis products unless the licensee verifies by means of a valid driver’s license or other government–issued photo identification containing the bearer’s date of birth that: for adult–use cannabis, the consumer is at least 21 years old; or for medical cannabis, the patient or caregiver is: registered with the Administration; and at least 18 years old. Except as provided in subparagraph (ii) of this paragraph, a licensee that sells, transfers, or delivers cannabis or cannabis products in violation of subsection (a) of this section is subject to a civil penalty of: $500 for a first violation; $1,000 for a second violation occurring within 24 months after the first violation; and $5,000 for each subsequent violation occurring within 24 months after the immediately preceding violation. A violation of subsection (a) of this section that occurs more than 24 months after the immediately preceding violation shall be treated as a first violation. The Administration may deny a cannabis license to an applicant, reprimand a cannabis licensee, or suspend or revoke a cannabis license if the applicant or licensee violates subsection (a) of this section two or more times in a 24–month period. In a hearing for an alleged violation of this section, it is a defense that an agent of the defendant examined the consumer’s, patient’s, or caregiver’s driver’s license or other valid identification issued by a governmental unit that positively identified the consumer, patient, or caregiver as meeting the minimum age specified in subsection (a) of this section. A cannabis licensee may not: sell, transfer, or deliver cannabis to an individual who is visibly intoxicated; offer cannabis or cannabis products as a prize, premium, or consideration for a lottery, contest, game of chance, game of skill, or competition of any kind; or conduct direct–to–consumer Internet sales of adult–use cannabis on or before July 1, 2025. A cannabis licensee that violates paragraph (1) of this subsection is subject to a fine not exceeding $1,000, suspension or revocation of a license, or both.

In this section the following words have the meanings indicated. “Hemp” has the meaning stated in § 14–401 of the Agriculture Article. “Tetrahydrocannabinol” means: any tetrahydrocannabinol, including delta–8–tetrahydrocannabinol, delta–9–tetrahydrocannabinol, and delta–10–tetrahydrocannabinol, regardless of how derived; any other cannabinoid, except cannabidiol that the Administration determines to cause intoxication; and any other chemically similar compound, substance, derivative, or isomer of tetrahydrocannabinol, as identified by the Administration. “Tincture” means a solution that is: dissolved in alcohol, glycerin, or vegetable oil; and distributed in a dropper bottle of 4 ounces or less. A person may not sell or distribute a product intended for human consumption or inhalation that contains more than 0.5 milligrams of tetrahydrocannabinol per serving or 2.5 milligrams of tetrahydrocannabinol per package unless the person is licensed under § 36–401 of this title and the product complies with the: manufacturing standards established under § 36–203 of this title; laboratory testing standards established under § 36–203 of this title; and packaging and labeling standards established under § 36–203 of this title. A person may not sell or distribute a product described under paragraph (1) of this subsection to an individual under the age of 21 years. A person may not sell or distribute a cannabinoid product that is not derived from naturally occurring biologically active chemical constituents. Notwithstanding subsection (b) of this section and subject to paragraph (2) of this subsection, it is not a violation of this section for a person to sell or distribute a hemp–derived tincture intended for human consumption that contains: a ratio of cannabidiol to tetrahydrocannabinol of at least 15 to 1; and 5 milligrams or less of tetrahydrocannabinol per serving and 100 milligrams or less of tetrahydrocannabinol per package. To sell or distribute a hemp–derived tincture under this subsection, a person must provide, as required by the Administration, tincture samples for the purpose of testing to determine chemical potency and composition levels and to detect and quantify contaminants. A person who violates subsection (b) of this section: may be charged by a citation; and is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $5,000. A person who violates subsection (c) of this section: may be charged by a citation; and is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $10,000.

In this section, “genuine ownership” means an ownership interest in an applicant, a cannabis licensee, or a registrant that is evidenced by record ownership in which the owner, regardless of the amount of capital or assets that the owner contributes to the applicant, licensee, or registrant, enjoys the customary incidents of ownership and shares in the profits and losses of the cannabis license or registration proportionate to the percentage of the owner’s interest in the cannabis license or registration. A person may not apply for or hold a cannabis license or registration under this title if an ownership interest in the license or registration is: nominal or without the benefits and risks of genuine ownership or control; and for the limited purpose of satisfying the requirements under this title for cannabis licensees or registrants, including requirements for social equity licensees or registrants. A person who violates subsection (b) of this section is guilty of a misdemeanor and on conviction is subject to a fine of not more than $2,500 or imprisonment for not more than 1 year or both. Subject to the hearing provisions of § 36–202 of this title, the Administration shall deny an application for a cannabis license or registration or revoke a cannabis license or registration under this title if the applicant, cannabis licensee, or registrant is: determined by the Administration to be in violation of subsection (b) of this section; or convicted of violating subsection (b) of this section.

In this section, “tetrahydrocannabinol” has the meaning stated in § 36–1102 of this subtitle. A person may not sell or distribute a product containing tetrahydrocannabinol that violates the potency, packaging, or labeling requirements under § 36–203 or § 36–203.1 of this title or any regulations adopted under those sections. A person may not sell or distribute a product that is advertised as containing an amount of tetrahydrocannabinol that violates § 36–1102 of this subtitle. Advertising under paragraph (1) of this subsection includes packaging, labeling, or electronic communication. The Executive Director may seize, destroy, or confiscate a product that is: offered or displayed for sale to a consumer in a location that is not appropriately licensed under Subtitle 4 of this title; and the subject of a violation under subsection (b) or (c) of this section. If a person who is not a cannabis licensee violates subsection (b) or (c) of this section, the person: may be charged by a citation; and is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $5,000. If a cannabis licensee violates subsection (b) or (c) of this section, the licensee is subject to disciplinary action by the Administration in accordance with § 36–202 of this title.