# Business Regulation (GBR)

## Title 16.7. Electronic Smoking Devices Licenses

### Subtitle 1. Definitions; General Provisions

#### Section 16.7-101

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

(b) "County license" means a license issued by the clerk to sell electronic smoking devices to consumers in a county.

(c)

  (1) "Electronic smoking device" means a device that can be used to deliver aerosolized or vaporized nicotine to an individual inhaling from the device.

  (2) "Electronic smoking device" includes:

    (i) an electronic cigarette, an electronic cigar, an electronic cigarillo, an electronic pipe, an electronic hookah, a vape pen, and vaping liquid; and

    (ii) except as provided in paragraph (3) of this subsection, any component, part, or accessory of such a device regardless of whether or not it is sold separately, including any substance intended to be aerosolized or vaporized during use of the device.

  (3) "Electronic smoking device" does not include:

    (i) a drug, device, or combination product authorized for sale by the U.S. Food and Drug Administration under the Federal Food, Drug, and Cosmetic Act; or

    (ii) a battery or battery charger when sold separately.

(d) "Electronic smoking devices manufacturer" means a person that:

  (1) manufactures, mixes, or otherwise produces electronic smoking devices intended for sale in the State, including electronic smoking devices intended for sale in the United States through an importer; and

  (2)

    (i) sells electronic smoking devices to a consumer, if the consumer purchases or orders the devices through the mail, a computer network, a telephonic network, or another electronic network, a licensed electronic smoking devices wholesaler distributor, or a licensed electronic smoking devices wholesaler importer in the State;

    (ii) if the electronic smoking devices manufacturer also holds a license to act as an electronic smoking devices retailer or a vape shop vendor, sells electronic smoking devices in the same manner as a vape shop vendor to consumers located in the State; or

    (iii) unless otherwise prohibited or restricted under local law, this article, or the Criminal Law Article, distributes sample electronic smoking devices to a licensed electronic smoking devices retailer or vape shop vendor.

(e) "Electronic smoking devices retailer" means a person that:

  (1) sells electronic smoking devices to consumers;

  (2) holds electronic smoking devices for sale to consumers; or

  (3) unless otherwise prohibited or restricted under local law, this article, the Criminal Law Article, or Sec. 24-305 of the Health - General Article, distributes sample electronic smoking devices to consumers in the State.

(f) "Electronic smoking devices wholesaler distributor" means a person that:

  (1) obtains at least 70% of its electronic smoking devices from a holder of an electronic smoking devices manufacturer license under this subtitle or a business entity located in the United States; and

  (2)

    (i) holds electronic smoking devices for sale to another person for resale; or

    (ii) sells electronic smoking devices to another person for resale.

(g) "Electronic smoking devices wholesaler importer" means a person that:

  (1) obtains at least 70% of its electronic smoking devices from a business entity located in a foreign country; and

  (2)

    (i) holds electronic smoking devices for sale to another person for resale; or

    (ii) sells electronic smoking devices to another person for resale.

(h) "Executive Director" means the Executive Director of the Alcohol, Tobacco, and Cannabis Commission.

(i) "License" means:

  (1) a license issued by the Executive Director under Sec. 16.7-203(a) of this title to:

    (i) act as a licensed electronic smoking devices manufacturer;

    (ii) act as a licensed electronic smoking devices wholesaler distributor; or

    (iii) act as a licensed electronic smoking devices wholesaler importer; or

  (2) a license issued by the clerk under Sec. 16.7-203(b) of this title to:

    (i) act as a licensed electronic smoking devices retailer; or

    (ii) act as a licensed vape shop vendor.

(j) "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.

(k) "Vape shop vendor" means an electronic smoking devices business that sells electronic smoking devices and related accessories to consumers on the premises of its place of business.

(l) "Vaping liquid" means a liquid that:

  (1) consists of propylene glycol, vegetable glycerin, or other similar substance;

  (2) may or may not contain natural or artificial flavors;

  (3) may or may not contain nicotine; and

  (4) converts to vapor intended for inhalation when heated in an electronic device.

#### Section 16.7-102

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

(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. 16.7-208 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.

(c) Any person licensed under Title 16 or Title 16.5 of this article, or an affiliate, as defined under Sec. 16-402(c) of this article, of a person licensed under Title 16 of this article must obtain an additional license under this title in order to manufacture, distribute, or sell electronic smoking devices under this title.

### Subtitle 2. Electronic Smoking Devices Licenses

#### Section 16.7-201

(a) A person must hold an appropriate license before the person may act as:

  (1) an electronic smoking devices manufacturer;

  (2) an electronic smoking devices retailer;

  (3) an electronic smoking devices wholesaler distributor;

  (4) an electronic smoking devices wholesaler importer; or

  (5) a vape shop vendor.

(b) A place of business in which a person acts as an electronic smoking devices retailer or a vape shop vendor must hold an appropriate license.

#### Section 16.7-201.1

(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 16.7-202

(a)

  (1) An applicant for a license to act as an electronic smoking devices manufacturer, electronic smoking devices wholesaler distributor, or electronic smoking devices wholesaler importer shall:

    (i) obtain an appropriate county license by submitting an application to the Executive Director on the form and containing the information that the Executive Director requires;

    (ii) indicate the licenses for which the applicant is applying; and

    (iii) except as provided in paragraph (2) of this subsection, pay to the Executive Director a fee of $25 for each license for which the applicant applies.

  (2) An applicant for a license to act as an electronic smoking devices wholesaler distributor or electronic smoking devices wholesaler importer shall pay to the Executive Director a fee of $150.

  (3) An applicant for a license to act as an electronic smoking devices retailer or vape shop vendor may not be required to pay an additional licensure fee if the applicant holds a license issued under:

    (i) Sec. 16-205(b) of this article; or

    (ii) Sec. 16.5-204(b) of this article.

(b)

  (1) An applicant for a license to act as an electronic smoking devices retailer or a vape shop vendor:

    (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 $300.

  (2) The application shall:

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

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

  (3)

    (i) From each license fee collected under this subsection, the clerk shall distribute:

      (1) $25 to the Executive Director; and

      (2) $275 to the Maryland Department of Health to be used by the Department or its designee to enforce existing laws prohibiting the sale or distribution of tobacco, tobacco products, or electronic smoking devices, as defined in Sec. 16.7-101 of this title, to individuals under the age of 21 years.

    (ii) Funds distributed under this subsection may not be used to supplant existing funding for the enforcement of laws banning the sale or distribution of tobacco, tobacco products, or electronic smoking devices to individuals under the age of 21 years.

  (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. 16.7-201.1 of this subtitle.

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

(d) If a person has had a license revoked under Sec. 16.7-207 of this subtitle, the person may not reapply for a license within 1 year after the date when the prior license was revoked.

#### Section 16.7-203

(a) The Executive Director shall issue an appropriate license to each applicant that meets the requirements of this subtitle for a license to act as an electronic smoking devices manufacturer, electronic smoking devices wholesaler distributor, or electronic smoking devices wholesaler importer.

(b) The clerk shall issue to each applicant that meets the requirements of this subtitle a license to act as an electronic smoking devices retailer or a vape shop vendor.

(c) The clerk shall forward a copy of an application received for each license issued under subsection (b) of this section to the Executive Director within 30 days after issuance of the license.

#### Section 16.7-204

(a) An electronic smoking devices manufacturer license authorizes the licensee to:

  (1) sell electronic smoking devices to:

    (i) a licensed electronic smoking devices wholesaler located in the State;

    (ii) an electronic smoking devices wholesaler or retailer located outside the State if the electronic smoking devices may be sold lawfully in Maryland; and

    (iii) a licensed vape shop vendor;

  (2) if the electronic smoking devices manufacturer licensee also holds a license to act as an electronic smoking devices retailer or a vape shop vendor, transfer electronic smoking devices to inventory for sale under the retail license or vape shop license; and

  (3) except as otherwise prohibited or restricted under local law, this article, or the Criminal Law Article, distribute electronic smoking devices products to a licensed electronic smoking devices retailer or vape shop vendor.

(b) An electronic smoking devices retailer license authorizes the licensee to:

  (1) sell electronic smoking devices to consumers;

  (2) buy electronic smoking devices from an electronic smoking devices wholesaler distributor or electronic smoking devices wholesaler importer;

  (3) if the electronic smoking devices retailer licensee also holds a license to act as an electronic smoking devices manufacturer, sell at retail electronic smoking devices manufactured under the manufacturer license; and

  (4) except as otherwise prohibited or restricted under local law, this article, the Criminal Law Article, or Sec. 24-305 of the Health - General Article, distribute sample electronic smoking devices products to consumers in the State.

(c) An electronic smoking devices wholesaler distributor license or electronic smoking devices wholesaler importer license authorizes the licensee to:

  (1) sell electronic smoking devices to electronic smoking devices retailers and vape shop vendors;

  (2) buy electronic smoking devices directly from an electronic smoking devices manufacturer and an electronic smoking devices wholesaler distributor or electronic smoking devices wholesaler importer;

  (3) hold electronic smoking devices; and

  (4) sell electronic smoking devices to another licensed electronic smoking devices wholesaler distributor or electronic smoking devices wholesaler importer.

(d) A vape shop vendor license authorizes the licensee to:

  (1) sell electronic smoking devices as a vape shop vendor to consumers on the premises of the licensee's place of business;

  (2) if the vape shop vendor licensee also holds a license to act as an electronic smoking devices manufacturer, sell at retail on the vape shop vendor premises electronic smoking devices manufactured under the manufacturer license; and

  (3) buy electronic smoking devices from an electronic smoking devices manufacturer, an electronic smoking devices wholesaler distributor, or an electronic smoking devices wholesaler importer.

#### Section 16.7-204.1

(a)

  (1) A retail licensee or vape shop vendor 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".

  (2) The sign required under paragraph (1) of this subsection shall be written in letters at least one-half inch high.

(b)

  (1) A retail licensee or vape shop vendor may not sell electronic smoking devices to an individual unless the retail licensee or vape shop vendor 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 retail licensee or vape shop vendor 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 retailer or vape shop vendor is not required to verify the age of an individual at least 30 years old.

#### Section 16.7-204.2

A retailer or vape shop vendor may not display electronic smoking devices for sale unless the electronic smoking devices are located behind a counter in an area accessible only to the retailer or vape shop vendor and employees of the retailer or vape shop vendor.

#### Section 16.7-205

(a) Unless a license is renewed for a 1-year term as provided in this section, the license expires on the date set by the issuing official.

(b) At least 1 month before a license issued under this subtitle expires, the issuing official shall send to the licensee a renewal notice that states the date on which the current license expires.

(c) Before a license issued under this subtitle expires, the licensee may renew the license 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. 16.7-203 of this subtitle.

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

#### Section 16.7-206

(a)

  (1) A licensed electronic smoking devices retailer or a licensed vape shop vendor may not assign the license.

  (2) If a licensed electronic smoking devices wholesaler distributor or electronic smoking devices wholesaler importer sells the licensee's electronic smoking devices 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 electronic smoking devices wholesaler's distributor or importer license.

(b) If the electronic smoking devices 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 electronic smoking devices wholesaler distributor or electronic smoking devices wholesaler importer 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 portion of the license fee for the unexpired term of the license.

  (2) A licensed electronic smoking devices retailer or a licensed vape shop vendor is not allowed a refund for the unexpired term of the license.

#### Section 16.7-207

(a) Subject to the hearing provisions of Sec. 16.7-208 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, licensee, or another person;

  (2) fraudulently or deceptively uses a license;

  (3) buys electronic smoking devices for resale:

    (i) in violation of a license; or

    (ii) from a person that is not a licensed electronic smoking devices manufacturer or a licensed electronic smoking devices 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 federal, State, or local law regarding the sale of electronic smoking devices; or

  (6) violates this title, Title 16, or Title 16.5 of this article or regulations adopted under these titles.

(b) Subject to the hearing provisions of Sec. 16.7-208 of this subtitle, the Executive Director shall deny a license to any applicant that 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 16.7-208

(a) Except as otherwise provided in Sec. 10-226 of the State Government Article, before the Executive Director takes any final action under Sec. 16.7-207 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 which the action is contemplated may be represented at the hearing by counsel.

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

#### Section 16.7-209

(a) Subject to the notice requirement of subsection (c) of this section, if a licensee engages in an act or omission that is grounds for discipline under Sec. 16.7-207 of this subtitle, the Executive Director may suspend the license for a consecutive period of time that:

  (1) for a first offense, is not less than 5 and not more than 20 business days; and

  (2) for a subsequent offense, is not less than 20 business days and not 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 willfully and persistently engages in an act or omission that is grounds for discipline under Sec. 16.7-207(a) of this subtitle.

(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 of a license may not bar or abate a disciplinary action under this section.

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

(e)

  (1)

    (i) Except as provided in subparagraph (ii) of this paragraph, if a 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.

    (ii) Subparagraph (i) of this paragraph does not apply if a license is suspended or revoked for a violation of Sec. 24-305 of the Health - General Article, or any other federal, State, or local law prohibiting the sale of electronic smoking devices to individuals under the age of 21 years.

  (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 for retail licensees or $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 16.7-210

A party to a proceeding before the Executive Director that 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 16.7-211

(a) A person may not act, attempt to act, or offer to act as an electronic smoking devices manufacturer, an electronic smoking devices retailer, an electronic smoking devices wholesaler distributor, an electronic smoking devices wholesaler importer, or a vape shop vendor in the State unless the person has an appropriate license.

(b)

  (1) A person that 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 16.7-212

(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 under this title are subject to the distribution provisions of Sec. 17-205 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 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 16.7-213

(a) A person may not ship, import, or sell into or within the State any electronic smoking devices unless the person holds any license required by this subtitle.

(b) A person that ships, imports, or sells electronic smoking devices into or within the 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 electronic smoking devices; and

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

    (i) federal trademark laws; or

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

(c) A person that ships, imports, or sells electronic smoking devices into or within the State in violation of this section is subject to disciplinary action by the Executive Director under Sec. 16.7-207 of this subtitle.

#### Section 16.7-213.1

(a) Each electronic smoking devices wholesaler distributor and electronic smoking devices wholesaler importer shall:

  (1) receive an invoice for each purchase of electronic smoking devices;

  (2) keep a record of all electronic smoking devices received, to which the electronic smoking devices wholesaler distributor or electronic smoking devices wholesaler importer 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 electronic smoking devices are received;

  (3)

    (i) keep a record of the name and address of each electronic smoking devices retailer to which a sale is made; and

    (ii) prepare for each sale of electronic smoking devices to a retailer an invoice that shows the political subdivision where the retailer is located; and

  (4) keep a complete and accurate record of each sale of electronic smoking devices 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 electronic smoking devices wholesaler distributor and electronic smoking devices wholesaler importer shall make an inventory record each month of all electronic smoking devices on the premises or under the control of the electronic smoking devices wholesaler distributor or electronic smoking devices wholesaler importer:

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

    (ii) on another specific day of the month, if the electronic smoking devices wholesaler distributor or electronic smoking devices wholesaler importer finds it more practicable to take inventory on that day.

  (2) Electronic smoking devices transferred to retail stock by written memorandum need not be included in the inventory record.

(c) Each electronic smoking devices wholesaler distributor and electronic smoking devices wholesaler importer 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.

#### Section 16.7-213.2

(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 licensed retailers or vape shop vendors 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 or vape shop vendor 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 or vape shop vendor subject to an unannounced inspection, the Maryland Department of Health or its designee shall use the list of licensed retailers or vape shop vendors as of December 31 of the previous calendar year.

#### Section 16.7-213.3

(a) The Executive Director may seize electronic smoking devices that are sold or offered for sale in the State in violation of this title without a warrant.

(b)

  (1) The Executive Director shall give notice of a seizure to the person from which the property is seized at the time of seizure.

  (2) A notice of seizure shall state the right of the owner or other interested person to file a claim for return of the seized property.

(c)

  (1) Subject to paragraph (2) of this subsection, the owner or interested person may file a claim for return of the property with the Executive Director within 30 days after the seizure of the property.

  (2) A person forfeits any interest in, right to, or title to the electronic smoking devices seized for violation of this title if the person fails to timely file a claim for return of the seized property within the time allowed under paragraph (1) of this subsection.

(d) Subject to subsection (e) of this section, if a person files a claim for the return of property seized under subsection (a) of this section, the Executive Director or the Executive Director's designee shall:

  (1) act on the claim and hold a hearing in accordance with Sec. 16.7-208 of this subtitle; and

  (2) unless the Executive Director or the Executive Director's designee has satisfactory evidence that the owner or person was not in compliance with any provision of this title at the time of seizure, direct return of the seized property.

(e) The Executive Director or the Executive Director's designee shall grant or deny the claim for return of seized electronic smoking devices by mailing the owner or person a notice of final determination.

(f) A person who possessed or offered for sale electronic smoking devices that are seized under this section is not relieved from responsibility for:

  (1) any penalty under this title or Title 16 or Title 16.5 of this article; or

  (2) reimbursement of the costs of transportation, storage, or disposal of the seized property.

#### Section 16.7-213.4

The Executive Director may adopt regulations to implement this subtitle.

#### Section 16.7-214

Unless otherwise specified in this title, a person that 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.

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