# Business Regulation (GBR)

## Title 16.5. Other Tobacco Products Licenses

### Subtitle 1. Definitions; General Provisions

#### Section 16.5-101

(a) In this title the following words have the meanings indicated.

(b) "County license" means a license issued by the clerk to sell other tobacco products at retail in a county.

(c) "Executive Director" means the Executive Director of the Alcohol and Tobacco Commission.

(d) "License" means:

  (1) a license issued by the Executive Director under Sec. 16.5-204(a) of this title to:

    (i) act as a licensed other tobacco products manufacturer;

    (ii) act as an other tobacco products wholesaler; or

    (iii) act as an other tobacco products storage warehouse; or

  (2) a license issued by the clerk under Sec. 16.5-204(b) of this title to act as an other tobacco products retailer or a tobacconist.

(e) "Licensed other tobacco products manufacturer" means a person licensed by the Executive Director under Sec. 16.5-204(a) of this title who:

  (1) manufactures or otherwise produces other tobacco products in the State intended for sale in the State, including other tobacco products intended for sale in the State through an importer; and

  (2)

    (i) sells other tobacco products on which the tobacco tax has not been paid to a licensed other tobacco products wholesaler in the State;

    (ii) sells other tobacco products on which the tobacco tax has not been paid and which may lawfully be sold in the State to a licensed other tobacco products wholesaler located outside of the State;

    (iii) unless otherwise prohibited or restricted under local law, this article, or the Criminal Law Article, distributes sample other tobacco products to consumers located in the State; or

    (iv) stores other tobacco products in another tobacco products warehouse in the State for subsequent shipment to licensed wholesalers, federal reservations, or persons outside of the State.

(f) "Licensed other tobacco products retailer" means a person licensed by the clerk under Sec. 16.5-204(b) of this title to act as an other tobacco products retailer.

(g) "Licensed other tobacco products storage warehouse" means a facility licensed by the Executive Director under Sec. 16.5-204(a) of this title to act as an other tobacco products storage warehouse.

(h) "Licensed other tobacco products wholesaler" means a person licensed by the Executive Director under Sec. 16.5-204(a) of this title to act as an other tobacco products wholesaler.

(i) "Licensed tobacconist" means a person licensed by the clerk of a circuit court under Sec. 16.5-204(b) of this title to act as a tobacconist.

(j)

  (1) "Other tobacco products" means, except as provided in paragraph (3) of this subsection, a product that is:

    (i) intended for human consumption or likely to be consumed, whether smoked, heated, chewed, absorbed, dissolved, inhaled, or ingested in any other manner, and that is made of or derived from, or that contains:

      (1) tobacco; or

      (2) nicotine; or

    (ii) a component or part used in a consumable product described under item (i) of this paragraph.

  (2) "Other tobacco products" includes:

    (i) cigars, premium cigars, pipe tobacco, chewing tobacco, snuff, and snus; and

    (ii) filters, rolling papers, pipes, and hookahs.

  (3) "Other tobacco products" does not include:

    (i) cigarettes;

    (ii) electronic smoking devices;

    (iii) drugs, devices, or combination products authorized for sale by the U.S. Food and Drug Administration under the Federal Food, Drug, and Cosmetic Act; or

    (iv) tobacco pipes, as defined under Sec. 11-104 of the Tax - General Article.

(k) "Other tobacco products manufacturer" means a person who:

  (1) manufactures or otherwise produces other tobacco products intended for sale in this State, including other tobacco products intended for sale in the United States through an importer;

  (2)

    (i) sells other tobacco products on which the tobacco tax has not been paid to a licensed other tobacco products wholesaler in Maryland;

    (ii) sells other tobacco products on which the tobacco tax has not been paid and which may lawfully be sold in Maryland to a licensed other tobacco products wholesaler located outside Maryland;

    (iii) unless otherwise prohibited or restricted under local law, this article, or the Criminal Law Article, distributes sample other tobacco products to consumers located in Maryland; or

    (iv) stores other tobacco products in another tobacco products storage warehouse in Maryland for subsequent shipment to licensed other tobacco products wholesalers, federal reservations, or persons out of state; or

  (3) is a licensed other tobacco products manufacturer under this title.

(l) "Other tobacco products retailer" means a person who:

  (1) sells other tobacco products to consumers; or

  (2) holds other tobacco products for sale to consumers.

(m) "Other tobacco products storage warehouse" means a storage facility in Maryland operated for the purpose of storing other tobacco products on which the tobacco tax has not been paid on behalf of an other tobacco products manufacturer.

(n) "Other tobacco products wholesaler" means a person who:

  (1) holds other tobacco products for sale to another person for resale; or

  (2) sells other tobacco products to another person for resale.

(o)

  (1) "Package" means a pack, box, carton, can, wrap, pouch, bag, or container of any kind designed for retail consumption in which other tobacco products are offered for sale, sold, or otherwise distributed.

  (2) "Package" includes not more than 10 cigars offered for sale, sold, or distributed as single cigars.

(p) "Pipe tobacco" means any tobacco that, because of its appearance, type, packaging, or labeling, is suitable for use and likely to be offered to, or purchased by, consumers as tobacco to smoke in a pipe.

(q) "Premium cigars" means cigars that:

  (1) have hand-rolled wrappers made from whole tobacco leaves where the filler, binder, and wrapper are made of all tobacco, and may include adhesives or other materials used to maintain size, texture, or flavor; or

  (2) are designated as premium cigars by the Executive Director by regulation.

(r) "Sell" means to exchange or transfer, or to agree to exchange or transfer, title or possession of property, in any manner or by any means, for consideration.

(s) "Sell other tobacco products at retail" means to sell other tobacco products to a consumer.

(t) "Tobacconist" means an other tobacco products business that derives at least 70% of its revenues, measured by average daily receipts, from the sale of other tobacco products and tobacco-related accessories.

#### Section 16.5-102

(a) The Executive Director may delegate any power or duty of the Executive Director.

(b)

  (1) In Baltimore City, a special enforcement officer in a Baltimore City agency may enforce this title, including by entering and inspecting, at a reasonable time, the premises of a county license holder.

  (2) Subject to the hearing provisions of Sec. 16.5-209 of this title, the Executive Director may reprimand a licensee or suspend or revoke a license for a violation identified under paragraph (1) of this subsection.

#### Section 16.5-103

Notwithstanding any other provision of this title, this title does not apply to a seller located outside the State when selling, holding for sale, shipping, or delivering premium cigars or pipe tobacco to consumers in the State.

### Subtitle 2. Other Tobacco Products Licenses

#### Section 16.5-201

(a) Except as provided in subsection (b) of this section, a person must have an appropriate license whenever the person acts as a licensed other tobacco products manufacturer, a licensed other tobacco products retailer, a licensed other tobacco products storage warehouse, a licensed other tobacco products wholesaler, or a licensed tobacconist in the State.

(b) A person need not obtain an other tobacco products retailer license under this subtitle to act as a retailer at a vending stand operated under a trader's license issued to Blind Industries and Services of Maryland.

(c) A license to act as an other tobacco products retailer or a tobacconist is required for each place of business where a person acts as an other tobacco products retailer or a tobacconist.

(d)

  (1) An other tobacco products manufacturer, or person connected with the business of an other tobacco products manufacturer or related by ownership, may not at the same time hold or have any financial interest in an other tobacco products wholesaler license or in any business of an other tobacco products wholesaler.

  (2) A person licensed as an other tobacco products wholesaler, or person connected with the business of a licensed other tobacco products wholesaler or related by ownership, may not at the same time hold or have any financial interest in an other tobacco products manufacturer license or in any business of an other tobacco products manufacturer.

#### Section 16.5-201.1

(a) This section applies only in Baltimore City.

(b) Before a person may apply for an initial or renewal county license under this title, the person shall request a licensure authorization from the Mayor and City Council of Baltimore City.

(c) If an applicant is denied a licensure authorization requested under this section, the Executive Director may review the basis for the denial.

#### Section 16.5-202

(a) An applicant for a license to act as a licensed other tobacco products manufacturer shall maintain in the State an established place of business for the manufacture and storage of other tobacco products.

(b) An applicant for a license to act as an other tobacco products storage warehouse shall maintain an established place of business for storage of other tobacco products on which the tobacco tax has not been paid.

(c) An applicant for a license to act as an other tobacco products wholesaler shall maintain:

  (1) an established place of business, including warehouse facilities, for the sale of other tobacco products; and

  (2) necessary equipment and vehicles for the storage and distribution of other tobacco products.

#### Section 16.5-203

(a) An applicant for a license to act as a licensed other tobacco products manufacturer shall:

  (1) submit an application to the Executive Director on the form and containing the information that the Executive Director requires; and

  (2) pay to the Executive Director a fee of $25.

(b)

  (1) An applicant for a license to act as an other tobacco products retailer or a tobacconist:

    (i) shall obtain a county license by submitting to the clerk an application for each permanent or temporary place of business located in the same enclosure and operated by the same applicant; and

    (ii) except as provided in paragraph (2) of this subsection, shall pay to the clerk a fee of $15.

  (2) A person who has a license issued under Title 16 of this article to act as a cigarette retailer or to act as a special cigarette retailer is not required to pay the license fee.

  (3) The application shall:

    (i) be made on the form that the clerk requires; and

    (ii) contain the information that the Executive Director requires.

  (4) In Baltimore City, in addition to the requirements under paragraph (1) of this subsection, an applicant for an initial or renewal county license shall provide to the clerk a licensure authorization issued under Sec. 16.5-201.1 of this subtitle.

(c) An applicant for a license to act as an other tobacco products storage warehouse shall:

  (1) submit an application to the Executive Director on the form and containing the information that the Executive Director requires; and

  (2) pay to the Executive Director a fee of $25.

(d)

  (1) An applicant for a license to act as an other tobacco products wholesaler shall:

    (i) submit an application to the Executive Director on the form and containing the information that the Executive Director requires; and

    (ii) except as provided in paragraph (2) of this subsection, pay to the Executive Director a fee of $250.

  (2) A person who has a license issued under Title 16 of this article to act as a cigarette wholesaler or to act as a cigarette subwholesaler is not required to pay the license fee.

(e) A licensee shall display a license in the way that the Executive Director requires by regulation.

(f) If a person has had a license revoked under Sec. 16.5-208 of this subtitle, the person may not reapply for a license within 1 year after the date when the prior license was revoked.

#### Section 16.5-204

(a) The Executive Director shall issue an appropriate license to each applicant who meets the requirements of this subtitle for a license to act as a licensed other tobacco products manufacturer, other tobacco products storage warehouse, or other tobacco products wholesaler.

(b) The clerk of the circuit court shall issue to each applicant who meets the requirements of this subtitle a license to act as an other tobacco products retailer or a tobacconist.

#### Section 16.5-205

(a) An other tobacco products manufacturer may:

  (1) sell other tobacco products on which the tobacco tax has not been paid to:

    (i) a licensed other tobacco products wholesaler located in Maryland;

    (ii) a licensed other tobacco products wholesaler located outside Maryland if the other tobacco products may be sold lawfully in Maryland; or

    (iii) a licensed tobacconist;

  (2) sell premium cigars or pipe tobacco on which the tobacco tax has not been paid to a licensed other tobacco products retailer;

  (3) except as otherwise prohibited or restricted under local law, this article, or the Criminal Law Article, distribute sample other tobacco products to consumers located in Maryland;

  (4) store other tobacco products on which the tobacco tax has not been paid in a licensed other tobacco products storage warehouse for subsequent shipment to licensed other tobacco products wholesalers, federal reservations, or persons out of state; and

  (5) on approval of the Executive Director, act as an agent of a Maryland other tobacco products wholesaler for distribution of other tobacco products.

(b) An other tobacco products retailer license authorizes the licensee to:

  (1) act as an other tobacco products retailer;

  (2) buy other tobacco products on which the tobacco tax has been paid from an other tobacco products wholesaler; and

  (3) buy premium cigars or pipe tobacco on which the tobacco tax has not been paid from an other tobacco products manufacturer.

(c)

  (1) An other tobacco products storage warehouse license authorizes the licensee to operate a storage facility in Maryland for the purpose of storing other tobacco products on which the tobacco tax has not been paid on behalf of a licensed other tobacco products manufacturer.

  (2) If an other tobacco products storage warehouse licensee is a licensed other tobacco products wholesaler, the other tobacco products storage warehouse license authorizes the holder to store other tobacco products on which the tobacco tax has been paid and other tobacco products on which the tobacco tax has been paid to another state.

(d) An other tobacco products wholesaler license authorizes the licensee to:

  (1) act as an other tobacco products wholesaler;

  (2) buy other tobacco products on which the tobacco tax has not been paid directly from an other tobacco products manufacturer;

  (3) hold other tobacco products on which the tobacco tax has not been paid;

  (4) transport other tobacco products on which the tobacco tax has not been paid in the State;

  (5) sell other tobacco products on which the tobacco tax has not been paid to another licensed other tobacco products wholesaler if the Executive Director specifically authorizes; and

  (6) store other tobacco products on which the tobacco tax has not been paid at a licensed other tobacco products storage warehouse.

(e) A tobacconist license authorizes the licensee to:

  (1) act as a tobacconist; and

  (2) buy other tobacco products on which the tobacco tax has not been paid from an other tobacco products manufacturer.

#### Section 16.5-206

(a) Unless a license is renewed for a 1-year term as provided in this section, the license expires on the first April 30 after its effective date.

(b) At least 1 month before a license issued under this subtitle expires, the issuing official shall mail to the licensee, at the last known address of the licensee, a renewal notice that states:

  (1) the date on which the current license expires; and

  (2) the date by which the issuing official must receive the renewal application for the renewal to be issued and mailed before the license expires.

(c) Before a license issued under this subtitle expires, the licensee may renew it for an additional 1-year term, if the licensee:

  (1) otherwise is entitled to be licensed;

  (2) submits to the issuing official a renewal application on the form that the issuing official requires; and

  (3) pays to the issuing official the license fee required under Sec. 16.5-203 of this subtitle.

(d) The issuing official shall renew the license of each licensee who meets the requirements of this section.

#### Section 16.5-207

(a)

  (1) A licensed other tobacco products retailer or a licensed tobacconist may not assign the license.

  (2) If a licensed other tobacco products wholesaler sells the licensee's other tobacco products business and pays to the Executive Director a license assignment fee of $10, the licensee may assign the license to the buyer of the business, if the buyer otherwise qualifies under this title for an other tobacco products wholesaler's license.

(b) If the other tobacco products business of a licensee is transferred because of bankruptcy, death, incompetency, receivership, or otherwise by operation of law, the Executive Director shall transfer the license without charge to the new owner of the licensee's business, if the transferee otherwise qualifies under this title for the license being transferred.

(c)

  (1) If a licensed other tobacco products wholesaler surrenders the license to the Executive Director and if no disciplinary proceedings are pending against the licensee, the Executive Director shall refund a pro rata part of the license fee for the unexpired term of the license.

  (2) A licensed other tobacco products retailer or a licensed tobacconist is not allowed a refund for the unexpired term of the license.

#### Section 16.5-208

(a) Subject to the hearing provisions of Sec. 16.5-209 of this subtitle, the Executive Director may deny a license to an applicant, reprimand a licensee, or suspend or revoke a license if the applicant or licensee:

  (1) fraudulently or deceptively obtains or attempts to obtain a license for the applicant or licensee or for another person;

  (2) fraudulently or deceptively uses a license;

  (3) buys other tobacco products for resale:

    (i) in violation of a license; or

    (ii) from a person who is not an other tobacco products manufacturer or licensed other tobacco products wholesaler;

  (4) is convicted, under the laws of the United States or of any other state, of:

    (i) a felony; or

    (ii) a misdemeanor that is a crime of moral turpitude and is directly related to the fitness and qualification of the applicant or licensee;

  (5) violates Title 12 of the Tax - General Article or regulations adopted under that title; or

  (6) violates this title or Title 16 of this article or regulations adopted under these titles.

(b) Subject to the hearing provisions of Sec. 16.5-209 of this subtitle, the Executive Director shall deny a license to any applicant who has had a license revoked under this section until:

  (1) 1 year has passed since the license was revoked; and

  (2) it satisfactorily appears to the Executive Director that the applicant will comply with this title and any regulations adopted under this title.

(c) Prior to the issuance or renewal of any license, the Executive Director shall conduct an investigation with regard to:

  (1) the applicant;

  (2) the business to be operated; and

  (3) the facts set forth in the application.

#### Section 16.5-209

(a) Except as otherwise provided in Sec. 10-226 of the State Government Article, before the Executive Director takes any final action under Sec. 16.5-208 of this subtitle, the Executive Director shall give the person against whom the action is contemplated an opportunity for a hearing before the Executive Director.

(b) The Executive Director shall give notice and hold the hearing in accordance with Title 10, Subtitle 2 of the State Government Article.

(c) The Executive Director may administer oaths in a proceeding under this section.

(d) The person against whom the action is contemplated may be represented at the hearing by counsel.

(e) If, after due notice, the person against whom the action is contemplated does not appear, nevertheless the Executive Director may hear and determine the matter.

#### Section 16.5-210

(a) Subject to the notice requirement of subsection (c) of this section, if a licensee engages in an act or omission that is a ground for discipline under Sec. 16.5-208 of this subtitle, the Executive Director may suspend the license for a consecutive period that:

  (1) for a first offense, is not less than 5 nor more than 20 business days; or

  (2) for a subsequent offense, is not less than 20 business days nor more than 6 months.

(b) Subject to the notice requirement under subsection (c) of this section, the Executive Director may revoke a license if a licensee:

  (1) willfully and persistently engages in an act or omission that is a ground for discipline under Sec. 16.5-208(a) of this subtitle; or

  (2) violates this title or Title 12 of the Tax - General Article or regulations adopted under these titles.

(c) If a license is suspended or revoked under this section:

  (1) the Executive Director shall give the licensee notice of the suspension or revocation; and

  (2) the suspension or revocation may not take effect until at least 5 business days following notice of the suspension or revocation.

(d) The transfer, renewal, or expiration of a license will not bar or abate a disciplinary action under this section.

(e)

  (1) Except for a violation of Sec. 10-107 of the Criminal Law Article, whenever any license issued under the provisions of this subtitle is suspended or revoked by the Executive Director, the licensee may, before the effective date of the suspension or revocation, petition the Executive Director for permission to make an offer of compromise consisting of a sum of money in lieu of serving the suspension or revocation.

  (2) Money paid in lieu of suspension or revocation shall be paid into the General Fund of the State.

  (3) An offer of compromise may not exceed $2,000 in the case of retail licensees and may not exceed $50,000 for other licensees.

  (4) The Executive Director may accept the offer of compromise if:

    (i) the public welfare and morals would not be impaired by allowing the licensee to operate during the period set for the suspension or revocation; and

    (ii) the payment of the sum of money will achieve the desired disciplinary purposes.

  (5) The Executive Director may adopt regulations to carry out this subsection.

#### Section 16.5-211

A party to a proceeding before the Executive Director who is aggrieved by a final decision of the Executive Director in a contested case, as defined in Sec. 10-202 of the State Government Article, is entitled to judicial review as provided in Sec.Sec. 10-222 and 10-223 of the State Government Article.

#### Section 16.5-212

(a) Except as otherwise provided in Sec. 16.5-201(b) of this subtitle, a person may not act, attempt to act, or offer to act as a licensed other tobacco products manufacturer, a licensed other tobacco products retailer, a licensed other tobacco products storage warehouse, a licensed other tobacco products wholesaler, or a licensed tobacconist in the State unless the person has an appropriate license.

(b)

  (1) A person who violates this section is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $1,000 or imprisonment not exceeding 30 days or both.

  (2) Each day that a violation of this section continues is a separate offense.

#### Section 16.5-213

(a)

  (1)

    (i) Except as provided in subsection (b) of this section, the Executive Director shall pay into the General Fund of the State all license fees collected under this title.

    (ii) All license fees collected by the counties are subject to the distribution provisions of Sec. 17-206 of this article.

  (2) The General Assembly intends that these license fees be used to administer this title.

(b)

  (1) The Mayor and City Council of Baltimore City shall remit 50% of all licensure authorization request fees collected in accordance with Sec. 16-302.1 of this article to the Comptroller.

  (2) The Comptroller shall distribute the fees to the Family League of Baltimore City, Inc. in a manner that is:

    (i) consistent with the process established by the Mayor and City Council of Baltimore City under Sec. 16-302.1 of this article; and

    (ii) proportional to the number of licensees operating in each legislative district.

#### Section 16.5-214

(a) Each other tobacco products wholesaler:

  (1) shall get an invoice for each purchase of other tobacco products;

  (2) shall keep a record of all other tobacco products received, to which the other tobacco products wholesaler shall post each day:

    (i) the invoice number;

    (ii) the date of receipt;

    (iii) the quantity received;

    (iv) the brand;

    (v) the manufacturer; and

    (vi) the name of the person from whom the other tobacco products are received;

  (3) for other tobacco products sales to other tobacco products retailers and tobacconists:

    (i) shall keep a record of the name and address of each other tobacco products retailer and tobacconist to whom a sale is made; and

    (ii) except for a transfer of other tobacco products to retail stock by a written memorandum, shall prepare for each sale an invoice that shows the political subdivision where the other tobacco products retailer and each tobacconist is located; and

  (4) shall keep a complete and accurate record of each sale of other tobacco products to an out-of-state person for resale to out-of-state consumers.

(b)

  (1) Except as provided in paragraph (2) of this subsection, each other tobacco products wholesaler shall make an inventory record each month of all other tobacco products on the premises or under the control of the other tobacco products wholesaler:

    (i) at the beginning or end of the month; or

    (ii) on another specific day of the month, if the other tobacco products wholesaler finds it more practical to take inventory on that day and notifies the Executive Director that inventory will be taken on that day.

  (2) Other tobacco products transferred to retail stock by written memorandum need not be included in the inventory record.

(c) Each other tobacco products wholesaler shall:

  (1) keep the records required by this section for 6 years or for a shorter time set by the Executive Director; and

  (2) allow the Executive Director to examine the records.

(d) A licensed other tobacco products retailer who purchases premium cigars or pipe tobacco from an other tobacco products manufacturer or a licensed tobacconist shall, for a period of 2 years, keep and maintain available for inspection at the license location during business hours:

  (1) all invoices and bills of lading; and

  (2) all records covering all purchases and sales of other tobacco products.

#### Section 16.5-214.1

(a) A licensed other tobacco products retailer shall post a sign in a location that is clearly visible to the consumer that states:

"No person under the age of 21 may be sold tobacco products".

(b) The sign required under this section shall be written in letters at least one-half inch high.

#### Section 16.5-214.2

(a)

  (1) This subsection does not apply to:

    (i) a licensed tobacconist; or

    (ii) the sale of premium cigars.

  (2) A licensed other tobacco products retailer may not display other tobacco products for sale unless the other tobacco products are located behind a counter in an area accessible only to the licensed other tobacco products retailer and employees of the licensed other tobacco products retailer.

(b)

  (1) A licensed other tobacco products retailer may not sell other tobacco products to an individual unless the licensed other tobacco products retailer verifies, in accordance with paragraph (2) of this subsection, that the individual is at least 21 years old.

  (2) Except as provided in paragraph (3) of this subsection, a licensed other tobacco products retailer may verify an individual's age only:

    (i) by means of a government-issued photo identification containing the individual's date of birth; and

    (ii) in a direct face-to-face exchange without the assistance of any electronic or mechanical device.

  (3) A licensed other tobacco products retailer is not required to verify the age of an individual at least 30 years old.

#### Section 16.5-215

(a) A person who transports other tobacco products by vehicle on a public road shall have in the vehicle a delivery ticket or an invoice that states:

  (1) the name and address of the seller or consignor;

  (2) the name and address of a buyer or consignee who is:

    (i) a person in the State authorized by Title 12 of the Tax - General Article to hold other tobacco products on which the tobacco tax has not been paid; or

    (ii) a person in another jurisdiction authorized to hold other tobacco products on which the tax imposed by that jurisdiction has not been paid; and

  (3) the quantity and brands of the other tobacco products that are being transported.

(b) The Executive Director by regulation may require a common carrier that brings other tobacco products into the State to submit to the Executive Director a copy of any freight bill relating to the other tobacco products shipment.

#### Section 16.5-216

(a) A person may not ship, import, or sell into or within this State any other tobacco products unless that person:

  (1)

    (i) is the owner of the brand;

    (ii) is the United States importer for the brand; or

    (iii) is a designated agent in Maryland of:

      (1) the owner of the brand; or

      (2) the United States importer of the brand; and

  (2) holds any license required by this subtitle.

(b) A person who ships, imports, or sells other tobacco products into or within this State:

  (1) shall comply with any federal and State requirements concerning the placement of warning labels or other information on the containers or individual packages of other tobacco products; and

  (2) shall ensure that the containers or individual packages of other tobacco products do not contain any information or markings that are false, misleading, or contrary to:

    (i) federal trademark or tax laws;

    (ii) the trademark law of this State under Title 1, Subtitle 4 of this article; or

    (iii) the tax laws of this State under Title 12 of the Tax - General Article.

(c) A person who ships, imports, or sells other tobacco products into or within this State in violation of this section is subject to disciplinary action by the Executive Director under Sec. 16.5-208 of this subtitle and to the penalty specified in Sec. 13-1015 of the Tax - General Article.

#### Section 16.5-217

(a) This section applies to a person who is engaged in the business of selling or distributing other tobacco products.

(b)

  (1) This subsection does not apply to the order, purchase, sale, or shipment of premium cigars or pipe tobacco by a licensed other tobacco products retailer or licensed tobacconist.

  (2) Except as provided in paragraph (3) of this subsection, a person covered under this section may not:

    (i) sell or ship other tobacco products, ordered or purchased by mail or through a computer network, telephonic network, or other electronic network by a consumer or other unlicensed recipient, directly to a consumer or other unlicensed recipient in this State; or

    (ii) cause other tobacco products, ordered or purchased by mail or through a computer network, telephonic network, or other electronic network by a consumer or other unlicensed recipient, to be shipped directly to a consumer or other unlicensed recipient in this State.

  (3) A licensed other tobacco products retailer or licensed tobacconist may deliver not more than two packages of other tobacco products directly to a consumer if the delivery is made by the licensed other tobacco products retailer or licensed tobacconist or an employee of the licensed other tobacco products retailer or licensed tobacconist.

(c)

  (1) A licensee who sells or ships other tobacco products in violation of this section or causes other tobacco products to be shipped in violation of this section is:

    (i) subject to discipline by the Executive Director under Sec. 16.5-208 of this subtitle; and

    (ii) guilty of a felony and on conviction is subject to a fine not exceeding $50 for each package of other tobacco products transported or imprisonment not exceeding 2 years or both.

  (2) A person other than a licensee who sells or ships other tobacco products in violation of this section or causes other tobacco products to be shipped in violation of this section is guilty of a felony and on conviction is subject to a fine not exceeding $50 for each package of other tobacco products transported or imprisonment not exceeding 2 years or both.

#### Section 16.5-217.1

(a)

  (1) Subject to paragraph (2) of this subsection, the Maryland Department of Health or its designee shall conduct at least one unannounced inspection of a licensed retailer to ensure the licensee's compliance with the provisions of this title and Sec. 10-107 of the Criminal Law Article each year.

  (2) If a licensed retailer violates any provision of this title or Sec. 10-107 of the Criminal Law Article, the Maryland Department of Health shall conduct an additional unannounced inspection within 180 days after the initial inspection.

(b) The Maryland Department of Health or its designee may use an individual under the age of 21 years to assist in conducting an inspection under this section.

(c) To determine the location of a licensed retailer subject to an unannounced inspection, the Maryland Department of Health or its designee shall use the list of licensed retailers as of December 31 of the previous calendar year.

#### Section 16.5-218

Unless otherwise specified in this title, a person who violates any provision of this title is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $1,000 or imprisonment not exceeding 30 days or both.

---

Md. Code Ann., Bus. Reg. (as displayed at mgaleg.maryland.gov, October 16, 2026)