<section article="gbr" article_name="Business Regulation" number="16.5-101" title_number="16.5" title_name="Other Tobacco Products Licenses" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <level label="a"> <text>In this title the following words have the meanings indicated.</text> </level> <level label="b"> <text>“County license” means a license issued by the clerk to sell other tobacco products at retail in a county.</text> </level> <level label="c"> <text>“Executive Director” means the Executive Director of the Alcohol and Tobacco Commission.</text> </level> <level label="d"> <text>“License” means:</text> <level label="1"> <text>a license issued by the Executive Director under § 16.5–204(a) of this title to:</text> <level label="i"> <text>act as a licensed other tobacco products manufacturer;</text> </level> <level label="ii"> <text>act as an other tobacco products wholesaler; or</text> </level> <level label="iii"> <text>act as an other tobacco products storage warehouse; or</text> </level> </level> <level label="2"> <text>a license issued by the clerk under § 16.5–204(b) of this title to act as an other tobacco products retailer or a tobacconist.</text> </level> </level> <level label="e"> <text>“Licensed other tobacco products manufacturer” means a person licensed by the Executive Director under § 16.5–204(a) of this title who:</text> <level label="1"> <text>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</text> </level> <level label="2"> <level label="i"> <text>sells other tobacco products on which the tobacco tax has not been paid to a licensed other tobacco products wholesaler in the State;</text> </level> <level label="ii"> <text>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;</text> </level> <level label="iii"> <text>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</text> </level> <level label="iv"> <text>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.</text> </level> </level> </level> <level label="f"> <text>“Licensed other tobacco products retailer” means a person licensed by the clerk under § 16.5–204(b) of this title to act as an other tobacco products retailer.</text> </level> <level label="g"> <text>“Licensed other tobacco products storage warehouse” means a facility licensed by the Executive Director under § 16.5–204(a) of this title to act as an other tobacco products storage warehouse.</text> </level> <level label="h"> <text>“Licensed other tobacco products wholesaler” means a person licensed by the Executive Director under § 16.5–204(a) of this title to act as an other tobacco products wholesaler.</text> </level> <level label="i"> <text>“Licensed tobacconist” means a person licensed by the clerk of a circuit court under § 16.5–204(b) of this title to act as a tobacconist.</text> </level> <level label="j"> <level label="1"> <text>“Other tobacco products” means, except as provided in paragraph (3) of this subsection, a product that is:</text> <level label="i"> <text>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:</text> <level label="1"> <text>tobacco; or</text> </level> <level label="2"> <text>nicotine; or</text> </level> </level> <level label="ii"> <text>a component or part used in a consumable product described under item (i) of this paragraph.</text> </level> </level> <level label="2"> <text>“Other tobacco products” includes:</text> <level label="i"> <text>cigars, premium cigars, pipe tobacco, chewing tobacco, snuff, and snus; and</text> </level> <level label="ii"> <text>filters, rolling papers, pipes, and hookahs.</text> </level> </level> <level label="3"> <text>“Other tobacco products” does not include:</text> <level label="i"> <text>cigarettes;</text> </level> <level label="ii"> <text>electronic smoking devices;</text> </level> <level label="iii"> <text>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</text> </level> <level label="iv"> <text>tobacco pipes, as defined under § 11–104 of the Tax – General Article.</text> </level> </level> </level> <level label="k"> <text>“Other tobacco products manufacturer” means a person who:</text> <level label="1"> <text>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;</text> </level> <level label="2"> <level label="i"> <text>sells other tobacco products on which the tobacco tax has not been paid to a licensed other tobacco products wholesaler in Maryland;</text> </level> <level label="ii"> <text>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;</text> </level> <level label="iii"> <text>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</text> </level> <level label="iv"> <text>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</text> </level> </level> <level label="3"> <text>is a licensed other tobacco products manufacturer under this title.</text> </level> </level> <level label="l"> <text>“Other tobacco products retailer” means a person who:</text> <level label="1"> <text>sells other tobacco products to consumers; or</text> </level> <level label="2"> <text>holds other tobacco products for sale to consumers.</text> </level> </level> <level label="m"> <text>“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.</text> </level> <level label="n"> <text>“Other tobacco products wholesaler” means a person who:</text> <level label="1"> <text>holds other tobacco products for sale to another person for resale; or</text> </level> <level label="2"> <text>sells other tobacco products to another person for resale.</text> </level> </level> <level label="o"> <level label="1"> <text>“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.</text> </level> <level label="2"> <text>“Package” includes not more than 10 cigars offered for sale, sold, or distributed as single cigars.</text> </level> </level> <level label="p"> <text>“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.</text> </level> <level label="q"> <text>“Premium cigars” means cigars that:</text> <level label="1"> <text>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</text> </level> <level label="2"> <text>are designated as premium cigars by the Executive Director by regulation.</text> </level> </level> <level label="r"> <text>“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.</text> </level> <level label="s"> <text>“Sell other tobacco products at retail” means to sell other tobacco products to a consumer.</text> </level> <level label="t"> <text>“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.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="16.5-102" title_number="16.5" title_name="Other Tobacco Products Licenses" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <level label="a"> <text>The Executive Director may delegate any power or duty of the Executive Director.</text> </level> <level label="b"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>Subject to the hearing provisions of § 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.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="16.5-103" title_number="16.5" title_name="Other Tobacco Products Licenses" subtitle_number="1" subtitle_name="Definitions; General Provisions"> <text>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.</text> </section> <section article="gbr" article_name="Business Regulation" number="16.5-201" title_number="16.5" title_name="Other Tobacco Products Licenses" subtitle_number="2" subtitle_name="Other Tobacco Products Licenses"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>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.</text> </level> <level label="c"> <text>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.</text> </level> <level label="d"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="16.5-201.1" title_number="16.5" title_name="Other Tobacco Products Licenses" subtitle_number="2" subtitle_name="Other Tobacco Products Licenses"> <level label="a"> <text>This section applies only in Baltimore City.</text> </level> <level label="b"> <text>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.</text> </level> <level label="c"> <text>If an applicant is denied a licensure authorization requested under this section, the Executive Director may review the basis for the denial.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="16.5-202" title_number="16.5" title_name="Other Tobacco Products Licenses" subtitle_number="2" subtitle_name="Other Tobacco Products Licenses"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>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.</text> </level> <level label="c"> <text>An applicant for a license to act as an other tobacco products wholesaler shall maintain:</text> <level label="1"> <text>an established place of business, including warehouse facilities, for the sale of other tobacco products; and</text> </level> <level label="2"> <text>necessary equipment and vehicles for the storage and distribution of other tobacco products.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="16.5-203" title_number="16.5" title_name="Other Tobacco Products Licenses" subtitle_number="2" subtitle_name="Other Tobacco Products Licenses"> <level label="a"> <text>An applicant for a license to act as a licensed other tobacco products manufacturer shall:</text> <level label="1"> <text>submit an application to the Executive Director on the form and containing the information that the Executive Director requires; and</text> </level> <level label="2"> <text>pay to the Executive Director a fee of $25.</text> </level> </level> <level label="b"> <level label="1"> <text>An applicant for a license to act as an other tobacco products retailer or a tobacconist:</text> <level label="i"> <text>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</text> </level> <level label="ii"> <text>except as provided in paragraph (2) of this subsection, shall pay to the clerk a fee of $15.</text> </level> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <text>The application shall:</text> <level label="i"> <text>be made on the form that the clerk requires; and</text> </level> <level label="ii"> <text>contain the information that the Executive Director requires.</text> </level> </level> <level label="4"> <text>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 § 16.5–201.1 of this subtitle.</text> </level> </level> <level label="c"> <text>An applicant for a license to act as an other tobacco products storage warehouse shall:</text> <level label="1"> <text>submit an application to the Executive Director on the form and containing the information that the Executive Director requires; and</text> </level> <level label="2"> <text>pay to the Executive Director a fee of $25.</text> </level> </level> <level label="d"> <level label="1"> <text>An applicant for a license to act as an other tobacco products wholesaler shall:</text> <level label="i"> <text>submit an application to the Executive Director on the form and containing the information that the Executive Director requires; and</text> </level> <level label="ii"> <text>except as provided in paragraph (2) of this subsection, pay to the Executive Director a fee of $250.</text> </level> </level> <level label="2"> <text>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.</text> </level> </level> <level label="e"> <text>A licensee shall display a license in the way that the Executive Director requires by regulation.</text> </level> <level label="f"> <text>If a person has had a license revoked under § 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.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="16.5-204" title_number="16.5" title_name="Other Tobacco Products Licenses" subtitle_number="2" subtitle_name="Other Tobacco Products Licenses"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>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.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="16.5-205" title_number="16.5" title_name="Other Tobacco Products Licenses" subtitle_number="2" subtitle_name="Other Tobacco Products Licenses"> <level label="a"> <text>An other tobacco products manufacturer may:</text> <level label="1"> <text>sell other tobacco products on which the tobacco tax has not been paid to:</text> <level label="i"> <text>a licensed other tobacco products wholesaler located in Maryland;</text> </level> <level label="ii"> <text>a licensed other tobacco products wholesaler located outside Maryland if the other tobacco products may be sold lawfully in Maryland; or</text> </level> <level label="iii"> <text>a licensed tobacconist;</text> </level> </level> <level label="2"> <text>sell premium cigars or pipe tobacco on which the tobacco tax has not been paid to a licensed other tobacco products retailer;</text> </level> <level label="3"> <text>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;</text> </level> <level label="4"> <text>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</text> </level> <level label="5"> <text>on approval of the Executive Director, act as an agent of a Maryland other tobacco products wholesaler for distribution of other tobacco products.</text> </level> </level> <level label="b"> <text>An other tobacco products retailer license authorizes the licensee to:</text> <level label="1"> <text>act as an other tobacco products retailer;</text> </level> <level label="2"> <text>buy other tobacco products on which the tobacco tax has been paid from an other tobacco products wholesaler; and</text> </level> <level label="3"> <text>buy premium cigars or pipe tobacco on which the tobacco tax has not been paid from an other tobacco products manufacturer.</text> </level> </level> <level label="c"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="d"> <text>An other tobacco products wholesaler license authorizes the licensee to:</text> <level label="1"> <text>act as an other tobacco products wholesaler;</text> </level> <level label="2"> <text>buy other tobacco products on which the tobacco tax has not been paid directly from an other tobacco products manufacturer;</text> </level> <level label="3"> <text>hold other tobacco products on which the tobacco tax has not been paid;</text> </level> <level label="4"> <text>transport other tobacco products on which the tobacco tax has not been paid in the State;</text> </level> <level label="5"> <text>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</text> </level> <level label="6"> <text>store other tobacco products on which the tobacco tax has not been paid at a licensed other tobacco products storage warehouse.</text> </level> </level> <level label="e"> <text>A tobacconist license authorizes the licensee to:</text> <level label="1"> <text>act as a tobacconist; and</text> </level> <level label="2"> <text>buy other tobacco products on which the tobacco tax has not been paid from an other tobacco products manufacturer.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="16.5-206" title_number="16.5" title_name="Other Tobacco Products Licenses" subtitle_number="2" subtitle_name="Other Tobacco Products Licenses"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>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:</text> <level label="1"> <text>the date on which the current license expires; and</text> </level> <level label="2"> <text>the date by which the issuing official must receive the renewal application for the renewal to be issued and mailed before the license expires.</text> </level> </level> <level label="c"> <text>Before a license issued under this subtitle expires, the licensee may renew it for an additional 1–year term, if the licensee:</text> <level label="1"> <text>otherwise is entitled to be licensed;</text> </level> <level label="2"> <text>submits to the issuing official a renewal application on the form that the issuing official requires; and</text> </level> <level label="3"> <text>pays to the issuing official the license fee required under § 16.5–203 of this subtitle.</text> </level> </level> <level label="d"> <text>The issuing official shall renew the license of each licensee who meets the requirements of this section.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="16.5-207" title_number="16.5" title_name="Other Tobacco Products Licenses" subtitle_number="2" subtitle_name="Other Tobacco Products Licenses"> <level label="a"> <level label="1"> <text>A licensed other tobacco products retailer or a licensed tobacconist may not assign the license.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="b"> <text>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.</text> </level> <level label="c"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>A licensed other tobacco products retailer or a licensed tobacconist is not allowed a refund for the unexpired term of the license.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="16.5-208" title_number="16.5" title_name="Other Tobacco Products Licenses" subtitle_number="2" subtitle_name="Other Tobacco Products Licenses"> <level label="a"> <text>Subject to the hearing provisions of § 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:</text> <level label="1"> <text>fraudulently or deceptively obtains or attempts to obtain a license for the applicant or licensee or for another person;</text> </level> <level label="2"> <text>fraudulently or deceptively uses a license;</text> </level> <level label="3"> <text>buys other tobacco products for resale:</text> <level label="i"> <text>in violation of a license; or</text> </level> <level label="ii"> <text>from a person who is not an other tobacco products manufacturer or licensed other tobacco products wholesaler;</text> </level> </level> <level label="4"> <text>is convicted, under the laws of the United States or of any other state, of:</text> <level label="i"> <text>a felony; or</text> </level> <level label="ii"> <text>a misdemeanor that is a crime of moral turpitude and is directly related to the fitness and qualification of the applicant or licensee;</text> </level> </level> <level label="5"> <text>violates Title 12 of the Tax – General Article or regulations adopted under that title; or</text> </level> <level label="6"> <text>violates this title or Title 16 of this article or regulations adopted under these titles.</text> </level> </level> <level label="b"> <text>Subject to the hearing provisions of § 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:</text> <level label="1"> <text>1 year has passed since the license was revoked; and</text> </level> <level label="2"> <text>it satisfactorily appears to the Executive Director that the applicant will comply with this title and any regulations adopted under this title.</text> </level> </level> <level label="c"> <text>Prior to the issuance or renewal of any license, the Executive Director shall conduct an investigation with regard to:</text> <level label="1"> <text>the applicant;</text> </level> <level label="2"> <text>the business to be operated; and</text> </level> <level label="3"> <text>the facts set forth in the application.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="16.5-209" title_number="16.5" title_name="Other Tobacco Products Licenses" subtitle_number="2" subtitle_name="Other Tobacco Products Licenses"> <level label="a"> <text>Except as otherwise provided in § 10–226 of the State Government Article, before the Executive Director takes any final action under § 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.</text> </level> <level label="b"> <text>The Executive Director shall give notice and hold the hearing in accordance with Title 10, Subtitle 2 of the State Government Article.</text> </level> <level label="c"> <text>The Executive Director may administer oaths in a proceeding under this section.</text> </level> <level label="d"> <text>The person against whom the action is contemplated may be represented at the hearing by counsel.</text> </level> <level label="e"> <text>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.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="16.5-210" title_number="16.5" title_name="Other Tobacco Products Licenses" subtitle_number="2" subtitle_name="Other Tobacco Products Licenses"> <level label="a"> <text>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 § 16.5–208 of this subtitle, the Executive Director may suspend the license for a consecutive period that:</text> <level label="1"> <text>for a first offense, is not less than 5 nor more than 20 business days; or</text> </level> <level label="2"> <text>for a subsequent offense, is not less than 20 business days nor more than 6 months.</text> </level> </level> <level label="b"> <text>Subject to the notice requirement under subsection (c) of this section, the Executive Director may revoke a license if a licensee:</text> <level label="1"> <text>willfully and persistently engages in an act or omission that is a ground for discipline under § 16.5–208(a) of this subtitle; or</text> </level> <level label="2"> <text>violates this title or Title 12 of the Tax – General Article or regulations adopted under these titles.</text> </level> </level> <level label="c"> <text>If a license is suspended or revoked under this section:</text> <level label="1"> <text>the Executive Director shall give the licensee notice of the suspension or revocation; and</text> </level> <level label="2"> <text>the suspension or revocation may not take effect until at least 5 business days following notice of the suspension or revocation.</text> </level> </level> <level label="d"> <text>The transfer, renewal, or expiration of a license will not bar or abate a disciplinary action under this section.</text> </level> <level label="e"> <level label="1"> <text>Except for a violation of § 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.</text> </level> <level label="2"> <text>Money paid in lieu of suspension or revocation shall be paid into the General Fund of the State.</text> </level> <level label="3"> <text>An offer of compromise may not exceed $2,000 in the case of retail licensees and may not exceed $50,000 for other licensees.</text> </level> <level label="4"> <text>The Executive Director may accept the offer of compromise if:</text> <level label="i"> <text>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</text> </level> <level label="ii"> <text>the payment of the sum of money will achieve the desired disciplinary purposes.</text> </level> </level> <level label="5"> <text>The Executive Director may adopt regulations to carry out this subsection.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="16.5-211" title_number="16.5" title_name="Other Tobacco Products Licenses" subtitle_number="2" subtitle_name="Other Tobacco Products Licenses"> <text>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 § 10–202 of the State Government Article, is entitled to judicial review as provided in §§ 10–222 and 10–223 of the State Government Article.</text> </section> <section article="gbr" article_name="Business Regulation" number="16.5-212" title_number="16.5" title_name="Other Tobacco Products Licenses" subtitle_number="2" subtitle_name="Other Tobacco Products Licenses"> <level label="a"> <text>Except as otherwise provided in § 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.</text> </level> <level label="b"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>Each day that a violation of this section continues is a separate offense.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="16.5-213" title_number="16.5" title_name="Other Tobacco Products Licenses" subtitle_number="2" subtitle_name="Other Tobacco Products Licenses"> <level label="a"> <level label="1"> <level label="i"> <text>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.</text> </level> <level label="ii"> <text>All license fees collected by the counties are subject to the distribution provisions of § 17–206 of this article.</text> </level> </level> <level label="2"> <text>The General Assembly intends that these license fees be used to administer this title.</text> </level> </level> <level label="b"> <level label="1"> <text>The Mayor and City Council of Baltimore City shall remit 50% of all licensure authorization request fees collected in accordance with § 16–302.1 of this article to the Comptroller.</text> </level> <level label="2"> <text>The Comptroller shall distribute the fees to the Family League of Baltimore City, Inc. in a manner that is:</text> <level label="i"> <text>consistent with the process established by the Mayor and City Council of Baltimore City under § 16–302.1 of this article; and</text> </level> <level label="ii"> <text>proportional to the number of licensees operating in each legislative district.</text> </level> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="16.5-214" title_number="16.5" title_name="Other Tobacco Products Licenses" subtitle_number="2" subtitle_name="Other Tobacco Products Licenses"> <level label="a"> <text>Each other tobacco products wholesaler:</text> <level label="1"> <text>shall get an invoice for each purchase of other tobacco products;</text> </level> <level label="2"> <text>shall keep a record of all other tobacco products received, to which the other tobacco products wholesaler shall post each day:</text> <level label="i"> <text>the invoice number;</text> </level> <level label="ii"> <text>the date of receipt;</text> </level> <level label="iii"> <text>the quantity received;</text> </level> <level label="iv"> <text>the brand;</text> </level> <level label="v"> <text>the manufacturer; and</text> </level> <level label="vi"> <text>the name of the person from whom the other tobacco products are received;</text> </level> </level> <level label="3"> <text>for other tobacco products sales to other tobacco products retailers and tobacconists:</text> <level label="i"> <text>shall keep a record of the name and address of each other tobacco products retailer and tobacconist to whom a sale is made; and</text> </level> <level label="ii"> <text>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</text> </level> </level> <level label="4"> <text>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.</text> </level> </level> <level label="b"> <level label="1"> <text>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:</text> <level label="i"> <text>at the beginning or end of the month; or</text> </level> <level label="ii"> <text>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.</text> </level> </level> <level label="2"> <text>Other tobacco products transferred to retail stock by written memorandum need not be included in the inventory record.</text> </level> </level> <level label="c"> <text>Each other tobacco products wholesaler shall:</text> <level label="1"> <text>keep the records required by this section for 6 years or for a shorter time set by the Executive Director; and</text> </level> <level label="2"> <text>allow the Executive Director to examine the records.</text> </level> </level> <level label="d"> <text>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:</text> <level label="1"> <text>all invoices and bills of lading; and</text> </level> <level label="2"> <text>all records covering all purchases and sales of other tobacco products.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="16.5-214.1" title_number="16.5" title_name="Other Tobacco Products Licenses" subtitle_number="2" subtitle_name="Other Tobacco Products Licenses"> <level label="a"> <text>A licensed other tobacco products retailer shall post a sign in a location that is clearly visible to the consumer that states:</text> <text>“No person under the age of 21 may be sold tobacco products”.</text> </level> <level label="b"> <text>The sign required under this section shall be written in letters at least one–half inch high.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="16.5-214.2" title_number="16.5" title_name="Other Tobacco Products Licenses" subtitle_number="2" subtitle_name="Other Tobacco Products Licenses"> <level label="a"> <level label="1"> <text>This subsection does not apply to:</text> <level label="i"> <text>a licensed tobacconist; or</text> </level> <level label="ii"> <text>the sale of premium cigars.</text> </level> </level> <level label="2"> <text>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.</text> </level> </level> <level label="b"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>Except as provided in paragraph (3) of this subsection, a licensed other tobacco products retailer may verify an individual’s age only:</text> <level label="i"> <text>by means of a government–issued photo identification containing the individual’s date of birth; and</text> </level> <level label="ii"> <text>in a direct face–to–face exchange without the assistance of any electronic or mechanical device.</text> </level> </level> <level label="3"> <text>A licensed other tobacco products retailer is not required to verify the age of an individual at least 30 years old.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="16.5-215" title_number="16.5" title_name="Other Tobacco Products Licenses" subtitle_number="2" subtitle_name="Other Tobacco Products Licenses"> <level label="a"> <text>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:</text> <level label="1"> <text>the name and address of the seller or consignor;</text> </level> <level label="2"> <text>the name and address of a buyer or consignee who is:</text> <level label="i"> <text>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</text> </level> <level label="ii"> <text>a person in another jurisdiction authorized to hold other tobacco products on which the tax imposed by that jurisdiction has not been paid; and</text> </level> </level> <level label="3"> <text>the quantity and brands of the other tobacco products that are being transported.</text> </level> </level> <level label="b"> <text>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.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="16.5-216" title_number="16.5" title_name="Other Tobacco Products Licenses" subtitle_number="2" subtitle_name="Other Tobacco Products Licenses"> <level label="a"> <text>A person may not ship, import, or sell into or within this State any other tobacco products unless that person:</text> <level label="1"> <level label="i"> <text>is the owner of the brand;</text> </level> <level label="ii"> <text>is the United States importer for the brand; or</text> </level> <level label="iii"> <text>is a designated agent in Maryland of:</text> <level label="1"> <text>the owner of the brand; or</text> </level> <level label="2"> <text>the United States importer of the brand; and</text> </level> </level> </level> <level label="2"> <text>holds any license required by this subtitle.</text> </level> </level> <level label="b"> <text>A person who ships, imports, or sells other tobacco products into or within this State:</text> <level label="1"> <text>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</text> </level> <level label="2"> <text>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:</text> <level label="i"> <text>federal trademark or tax laws;</text> </level> <level label="ii"> <text>the trademark law of this State under Title 1, Subtitle 4 of this article; or</text> </level> <level label="iii"> <text>the tax laws of this State under Title 12 of the Tax – General Article.</text> </level> </level> </level> <level label="c"> <text>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 § 16.5–208 of this subtitle and to the penalty specified in § 13–1015 of the Tax – General Article.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="16.5-217" title_number="16.5" title_name="Other Tobacco Products Licenses" subtitle_number="2" subtitle_name="Other Tobacco Products Licenses"> <level label="a"> <text>This section applies to a person who is engaged in the business of selling or distributing other tobacco products.</text> </level> <level label="b"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>Except as provided in paragraph (3) of this subsection, a person covered under this section may not:</text> <level label="i"> <text>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</text> </level> <level label="ii"> <text>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.</text> </level> </level> <level label="3"> <text>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.</text> </level> </level> <level label="c"> <level label="1"> <text>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:</text> <level label="i"> <text>subject to discipline by the Executive Director under § 16.5–208 of this subtitle; and</text> </level> <level label="ii"> <text>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.</text> </level> </level> <level label="2"> <text>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.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="16.5-217.1" title_number="16.5" title_name="Other Tobacco Products Licenses" subtitle_number="2" subtitle_name="Other Tobacco Products Licenses"> <level label="a"> <level label="1"> <text>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 § 10–107 of the Criminal Law Article each year.</text> </level> <level label="2"> <text>If a licensed retailer violates any provision of this title or § 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.</text> </level> </level> <level label="b"> <text>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.</text> </level> <level label="c"> <text>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.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="16.5-218" title_number="16.5" title_name="Other Tobacco Products Licenses" subtitle_number="2" subtitle_name="Other Tobacco Products Licenses"> <text>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.</text> </section>