<section article="gbr" article_name="Business Regulation" number="16-101" title_number="16" title_name="Cigarettes" 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>“Cigarette” means any size or shaped roll for smoking that is made of tobacco or tobacco mixed with another ingredient and wrapped in paper or in any other material except tobacco.</text> </level> <level label="c"> <text>“County license” means a license issued by the clerk to sell cigarettes at retail in a county.</text> </level> <level label="d"> <text>“Executive Director” means the Executive Director of the Alcohol and Tobacco Commission.</text> </level> <level label="e"> <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="f"> <level label="1"> <text>“Sell cigarettes at retail” means to sell cigarettes to a consumer.</text> </level> <level label="2"> <text>“Sell cigarettes at retail” includes selling cigarettes through a vending machine.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="16-102" title_number="16" title_name="Cigarettes" 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 under this title.</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 § 16–307 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="16-201" title_number="16" title_name="Cigarettes" subtitle_number="2" subtitle_name="Cigarette Business Licenses"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“License” means:</text> <level label="1"> <text>a license issued by the Executive Director under § 16–205(a) of this subtitle to:</text> <level label="i"> <text>act as a manufacturer;</text> </level> <level label="ii"> <text>act as a subwholesaler;</text> </level> <level label="iii"> <text>act as a vending machine operator;</text> </level> <level label="iv"> <text>act as a wholesaler; or</text> </level> <level label="v"> <text>act as a storage warehouse; or</text> </level> </level> <level label="2"> <text>a license issued by the clerk under § 16–205(b) of this subtitle to act as a retailer.</text> </level> </level> <level label="c"> <text>“Licensed manufacturer” means a person licensed by the Executive Director under § 16–205(a) of this subtitle to act as a manufacturer.</text> </level> <level label="d"> <text>“Licensed retailer” means a person licensed by the clerk under § 16–205(b) of this subtitle to act as a retailer.</text> </level> <level label="e"> <text>“Licensed storage warehouse” means a facility licensed by the Executive Director under § 16–205(a) of this subtitle to act as a storage warehouse.</text> </level> <level label="f"> <text>“Licensed subwholesaler” means a person licensed by the Executive Director under § 16–205(a) of this subtitle to act as a subwholesaler.</text> </level> <level label="g"> <text>“Licensed vending machine operator” means a person licensed by the Executive Director under § 16–205(a) of this subtitle to act as a vending machine operator.</text> </level> <level label="h"> <text>“Licensed wholesaler” means a person licensed by the Executive Director under § 16–205(a) of this subtitle to act as a wholesaler.</text> </level> <level label="i"> <text>“Manufacturer” means a person who:</text> <level label="1"> <level label="i"> <text>operates one or more cigarette manufacturing plants; or</text> </level> <level label="ii"> <text>is a participating manufacturer; and</text> </level> </level> <level label="2"> <level label="i"> <text>sells unstamped cigarettes to a licensed cigarette wholesaler located in Maryland;</text> </level> <level label="ii"> <text>sells unstamped cigarettes that may lawfully be sold in Maryland to a licensed cigarette wholesaler located outside of Maryland;</text> </level> <level label="iii"> <text>unless otherwise prohibited or restricted under local law, this article, or the Criminal Law Article, distributes sample cigarettes to consumers located in Maryland; or</text> </level> <level label="iv"> <text>stores unstamped cigarettes in a cigarette storage warehouse in Maryland for subsequent shipment to licensed wholesalers, federal reservations, or persons out of state.</text> </level> </level> </level> <level label="j"> <text>“Participating manufacturer” has the meaning stated in § 16–501 of this title.</text> </level> <level label="k"> <text>“Retailer” means a person who:</text> <level label="1"> <text>sells cigarettes to consumers through vending machines on fewer than 40 premises;</text> </level> <level label="2"> <text>otherwise sells cigarettes to consumers; or</text> </level> <level label="3"> <text>holds cigarettes for sale to consumers.</text> </level> </level> <level label="l"> <text>“Stamped cigarettes” means a package of cigarettes to which tobacco tax stamps are affixed in the amount and manner required by § 12–304 of the Tax – General Article.</text> </level> <level label="m"> <text>“Storage warehouse” means a storage facility in Maryland operated for the purpose of storing unstamped cigarettes on behalf of a licensed cigarette manufacturer.</text> </level> <level label="n"> <level label="1"> <text>“Subwholesaler” means a person who:</text> <level label="i"> <text>holds stamped cigarettes for sale to another person for resale; or</text> </level> <level label="ii"> <text>sells stamped cigarettes to another person for resale.</text> </level> </level> <level label="2"> <text>“Subwholesaler” does not include a person who sells unstamped cigarettes or holds unstamped cigarettes for sale.</text> </level> </level> <level label="o"> <text>“Unstamped cigarettes” means a package of cigarettes to which tobacco tax stamps are not affixed in the amount and manner required by § 12–304 of the Tax – General Article.</text> </level> <level label="p"> <text>“Vending machine operator” means a person who:</text> <level label="1"> <text>holds cigarettes for sale to consumers through vending machines on 40 or more premises; or</text> </level> <level label="2"> <text>sells cigarettes to consumers through vending machines on 40 or more premises.</text> </level> </level> <level label="q"> <text>“Wholesaler” means a person who:</text> <level label="1"> <text>holds cigarettes for sale to another person for resale; or</text> </level> <level label="2"> <text>sells cigarettes to another person for resale.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="16-202" title_number="16" title_name="Cigarettes" subtitle_number="2" subtitle_name="Cigarette Business 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 manufacturer, retailer, storage warehouse, subwholesaler, vending machine operator, or wholesaler in the State.</text> </level> <level label="b"> <text>A person need not get a retailer license 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 a retailer is required for each place of business where a person acts as a retailer.</text> </level> <level label="d"> <level label="1"> <text>A person licensed as a manufacturer, or person connected with the business of a licensed manufacturer or related by ownership, may not at the same time hold or have any financial interest in a wholesaler license or in any business of a wholesaler.</text> </level> <level label="2"> <text>A person licensed as a wholesaler, or person connected with the business of a licensed wholesaler or related by ownership, may not at the same time hold or have any financial interest in a manufacturer license or in any business of a manufacturer.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="16-203" title_number="16" title_name="Cigarettes" subtitle_number="2" subtitle_name="Cigarette Business Licenses"> <level label="a"> <text>An applicant for a license to act as a manufacturer shall maintain an established place of business for the manufacture and storage of cigarettes.</text> </level> <level label="b"> <text>An applicant for a license to act as a storage warehouse shall maintain an established place of business for the storage of unstamped cigarettes.</text> </level> <level label="c"> <text>An applicant for a license to act as a subwholesaler shall maintain:</text> <level label="1"> <text>an established place of business, including warehouse facilities, for the sale of cigarettes; and</text> </level> <level label="2"> <text>necessary equipment and vehicles for the storage and distribution of cigarettes.</text> </level> </level> <level label="d"> <text>An applicant for a license to act as a vending machine operator shall maintain an established place of business, including warehouse facilities, for the purchase, storage, and distribution of cigarettes.</text> </level> <level label="e"> <text>An applicant for a license to act as a wholesaler shall maintain:</text> <level label="1"> <text>an established place of business, including warehouse facilities, for the sale of cigarettes; and</text> </level> <level label="2"> <text>necessary equipment and vehicles for the storage and distribution of cigarettes.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="16-204" title_number="16" title_name="Cigarettes" subtitle_number="2" subtitle_name="Cigarette Business Licenses"> <level label="a"> <text>An applicant for a license to act as a 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 a retailer shall:</text> <level label="i"> <text>obtain the county license required under § 16–301 of this title;</text> </level> <level label="ii"> <text>submit 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="iii"> <text>pay to the clerk a fee of $30.</text> </level> </level> <level label="2"> <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> <level label="c"> <text>An applicant for a license to act as a 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"> <text>An applicant for a license to act as a subwholesaler 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:</text> <level label="i"> <text>$500 for a 1–year term; or</text> </level> <level label="ii"> <text>the amount that results when $500 is prorated to the nearest month, if the application is for less than a 1–year term.</text> </level> </level> </level> <level label="e"> <text>An applicant for a license to act as a vending machine operator shall:</text> <level label="1"> <text>obtain the county license required under § 16–301 of this title;</text> </level> <level label="2"> <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="3"> <text>pay to the Executive Director a fee of $500.</text> </level> </level> <level label="f"> <text>An applicant for a license to act as a wholesaler 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 $750.</text> </level> </level> <level label="g"> <text>If a person has had a license revoked under § 16–210 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> <level label="h"> <level label="1"> <text>In addition to the license fee otherwise required under this section:</text> <level label="i"> <text>an applicant for the initial issuance of a license issued by the Executive Director under this title shall pay to the Executive Director a nonrefundable application fee of $200; and</text> </level> <level label="ii"> <text>an applicant for renewal of a license issued by the Executive Director under this title shall pay to the Executive Director a renewal fee of $30.</text> </level> </level> <level label="2"> <text>The application and renewal fees required under this subsection do not apply to a license that is issued by the clerk or to a storage warehouse license application.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="16-205" title_number="16" title_name="Cigarettes" subtitle_number="2" subtitle_name="Cigarette Business 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 manufacturer, storage warehouse, subwholesaler, vending machine operator, or wholesaler.</text> </level> <level label="b"> <text>The clerk shall issue to each applicant who meets the requirements of this subtitle a license to act as a retailer.</text> </level> <level label="c"> <text>The Executive Director shall provide to the Prevention and Health Promotion Administration each year the name and address of each person licensed under subsection (b) of this section.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="16-206" title_number="16" title_name="Cigarettes" subtitle_number="2" subtitle_name="Cigarette Business Licenses"> <level label="a"> <text>A manufacturer license authorizes the licensee to:</text> <level label="1"> <text>sell unstamped cigarettes to:</text> <level label="i"> <text>a licensed cigarette wholesaler located in Maryland; and</text> </level> <level label="ii"> <text>a licensed cigarette wholesaler located outside of Maryland if the unstamped cigarettes may lawfully be sold in Maryland;</text> </level> </level> <level label="2"> <text>except as otherwise prohibited or restricted under local law, this article, or the Criminal Law Article, distribute sample cigarettes to consumers located in Maryland;</text> </level> <level label="3"> <text>store unstamped cigarettes in a licensed cigarette storage warehouse for subsequent shipment to licensed wholesalers, federal reservations, or persons out of state; and</text> </level> <level label="4"> <text>upon approval of the Executive Director, act as an agent of a Maryland licensed wholesaler for stamping and distribution of cigarettes.</text> </level> </level> <level label="b"> <text>A retailer license authorizes the licensee to:</text> <level label="1"> <text>act as a retailer; and</text> </level> <level label="2"> <text>buy stamped cigarettes from a subwholesaler or wholesaler.</text> </level> </level> <level label="c"> <level label="1"> <text>A storage warehouse license authorizes the licensee to operate a storage facility in Maryland for the purpose of storing unstamped cigarettes on behalf of a licensed cigarette manufacturer.</text> </level> <level label="2"> <text>If a storage warehouse licensee is a licensed cigarette wholesaler or licensed cigarette subwholesaler, the storage warehouse license authorizes the holder to store stamped cigarettes and cigarettes with another state’s tax stamp.</text> </level> </level> <level label="d"> <text>A subwholesaler license authorizes the licensee to:</text> <level label="1"> <text>act as a subwholesaler;</text> </level> <level label="2"> <text>buy stamped cigarettes from a wholesaler or another subwholesaler; and</text> </level> <level label="3"> <text>store stamped cigarettes and cigarettes with another state’s tax stamp at a licensed cigarette storage facility.</text> </level> </level> <level label="e"> <text>A vending machine operator license authorizes the licensee to:</text> <level label="1"> <text>act as a vending machine operator; and</text> </level> <level label="2"> <text>buy stamped cigarettes from a subwholesaler or wholesaler.</text> </level> </level> <level label="f"> <text>A wholesaler license authorizes the licensee to:</text> <level label="1"> <text>act as a wholesaler;</text> </level> <level label="2"> <text>buy unstamped cigarettes directly from a cigarette manufacturer;</text> </level> <level label="3"> <text>hold unstamped cigarettes;</text> </level> <level label="4"> <text>buy tobacco tax stamps as authorized by § 12–303 of the Tax – General Article;</text> </level> <level label="5"> <text>transport unstamped cigarettes in the State;</text> </level> <level label="6"> <text>sell unstamped cigarettes to another licensed wholesaler if the Executive Director specifically authorizes;</text> </level> <level label="7"> <text>upon approval of the Executive Director, designate a licensed manufacturer to act as its agent for the stamping and distribution of cigarettes; and</text> </level> <level label="8"> <text>store stamped cigarettes and cigarettes with another state’s tax stamp at a licensed cigarette storage facility.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="16-207" title_number="16" title_name="Cigarettes" subtitle_number="2" subtitle_name="Cigarette Business 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;</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; and</text> </level> <level label="3"> <text>the amount of the renewal fee.</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:</text> <level label="i"> <text>the license fee required under § 16–204 of this subtitle; and</text> </level> <level label="ii"> <text>if the license is issued by the Executive Director, the renewal fee required under § 16–204(h) of this subtitle.</text> </level> </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="16-208" title_number="16" title_name="Cigarettes" subtitle_number="2" subtitle_name="Cigarette Business Licenses"> <level label="a"> <level label="1"> <text>A licensed retailer or licensed vending machine operator may not assign the license.</text> </level> <level label="2"> <text>If a licensed subwholesaler or licensed wholesaler sells the licensee’s cigarette 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.</text> </level> </level> <level label="b"> <text>If the cigarette 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.</text> </level> <level label="c"> <level label="1"> <text>If a licensed subwholesaler or licensed 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 retailer or licensed vending machine operator is not allowed a refund for the unexpired term of the license.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="16-209" title_number="16" title_name="Cigarettes" subtitle_number="2" subtitle_name="Cigarette Business Licenses"> <level label="a"> <text>A licensee shall display a license in the way that the Executive Director requires by regulation.</text> </level> <level label="b"> <text>A licensee who sells cigarettes through a vending machine:</text> <level label="1"> <text>shall place each package of cigarettes in the machine so that when the package is visible the tax stamps required by § 12–304 of the Tax – General Article are also visible; and</text> </level> <level label="2"> <text>in the way that the Executive Director requires by regulation, shall:</text> <level label="i"> <text>identify each vending machine with a conspicuous label that states the licensee’s name, address, and telephone number; and</text> </level> <level label="ii"> <text>display on a conspicuous label applicable prohibitions and penalties under § 10–107 of the Criminal Law Article.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>A licensee 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="2"> <text>The sign required under this subsection shall be written in letters at least one–half inch high.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="16-209.1" title_number="16" title_name="Cigarettes" subtitle_number="2" subtitle_name="Cigarette Business Licenses"> <level label="a"> <text>A licensed retailer may not display cigarettes for sale unless the cigarettes are located behind a counter in an area accessible only to the licensed retailer and employees of the licensed retailer.</text> </level> <level label="b"> <level label="1"> <text>A licensed retailer may not sell cigarettes to an individual unless the licensed 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>Subject to paragraph (3) of this subsection, a licensed 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 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="16-210" title_number="16" title_name="Cigarettes" subtitle_number="2" subtitle_name="Cigarette Business Licenses"> <level label="a"> <text>Subject to the hearing provisions of § 16–211 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>fails to comply with the Maryland Cigarette Sales Below Cost Act or regulations adopted under that Act;</text> </level> <level label="4"> <text>fails to comply with the provisions of Title 11, Subtitle 5A of the Commercial Law Article;</text> </level> <level label="5"> <text>buys cigarettes 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 a licensed cigarette manufacturer, licensed subwholesaler, licensed vending machine operator, or licensed wholesaler;</text> </level> </level> <level label="6"> <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; or</text> </level> </level> <level label="7"> <text>has not paid a tax due before October 1 of the year after the tax became due.</text> </level> </level> <level label="b"> <text>Subject to the hearing provisions of § 16–211 of this subtitle, the Executive Director may suspend or revoke a license if the licensee violates:</text> <level label="1"> <text>Title 12 of the Tax – General Article, or regulations adopted under that title; or</text> </level> <level label="2"> <text>this title or regulations adopted under this title.</text> </level> </level> <level label="c"> <text>Subject to the hearing provisions of § 16–211 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="d"> <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="16-211" title_number="16" title_name="Cigarettes" subtitle_number="2" subtitle_name="Cigarette Business 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 § 16–210 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="16-212" title_number="16" title_name="Cigarettes" subtitle_number="2" subtitle_name="Cigarette Business 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 § 16–210 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 § 16–210(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 shall not exceed $2,000 in the case of retail licensees, and shall 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 promulgate rules and regulations necessary to carry out the purposes of this subsection.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="16-213" title_number="16" title_name="Cigarettes" subtitle_number="2" subtitle_name="Cigarette Business 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, may take an appeal as allowed in §§ 10–222 and 10–223 of the State Government Article.</text> </section> <section article="gbr" article_name="Business Regulation" number="16-214" title_number="16" title_name="Cigarettes" subtitle_number="2" subtitle_name="Cigarette Business Licenses"> <level label="a"> <text>Except as otherwise provided in § 16-202(b) of this subtitle, a person may not act, attempt to act, or offer to act as a manufacturer, retailer, storage warehouse, subwholesaler, vending machine operator, or wholesaler 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 of $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="16-215" title_number="16" title_name="Cigarettes" subtitle_number="2" subtitle_name="Cigarette Business Licenses"> <level label="a"> <text>Unless authorized by a license, a person may not accept delivery of unstamped cigarettes.</text> </level> <level label="b"> <text>On receipt of a package of cigarettes, a retailer, subwholesaler, or vending machine operator immediately shall:</text> <level label="1"> <text>examine the package to find out whether tobacco tax stamps are affixed properly to the package as required by § 12-304 of the Tax - General Article; and</text> </level> <level label="2"> <text>reject any unstamped or improperly stamped cigarettes by:</text> <level label="i"> <text>returning them to the seller or consignor; or</text> </level> <level label="ii"> <text>delivering them to a common carrier for return to the seller or consignor.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>There is a presumption that any unstamped cigarettes in the possession of a retailer, subwholesaler, vending machine operator, or wholesaler are held in violation of this subtitle.</text> </level> <level label="2"> <text>A retailer, subwholesaler, vending machine operator, or wholesaler who holds unstamped cigarettes has the burden to prove that the cigarettes are not held in violation of this subtitle.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="16-216" title_number="16" title_name="Cigarettes" subtitle_number="2" subtitle_name="Cigarette Business Licenses"> <level label="a"> <level label="1"> <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="2"> <text>The General Assembly intends that these license fees be used to:</text> <level label="i"> <text>administer this title; and</text> </level> <level label="ii"> <text>enforce the Maryland Cigarette Sales Below Cost Act.</text> </level> </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 under § 16–302.1 of this title 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 title; 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="16-218" title_number="16" title_name="Cigarettes" subtitle_number="2" subtitle_name="Cigarette Business Licenses"> <level label="a"> <text>Each subwholesaler and each wholesaler:</text> <level label="1"> <text>shall get an invoice for each purchase of cigarettes;</text> </level> <level label="2"> <text>shall keep a record of all cigarettes received, to which the subwholesaler and 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; and</text> </level> <level label="v"> <text>the name of the person from whom the cigarettes are received;</text> </level> </level> <level label="3"> <text>for cigarette sales to retailers:</text> <level label="i"> <text>shall keep a record of the name and address of each retailer to whom a sale is made; and</text> </level> <level label="ii"> <text>except for a transfer of cigarettes to retail stock by a written memorandum, shall prepare for each sale an invoice that shows the political subdivision where the retailer is located; and</text> </level> </level> <level label="4"> <text>shall keep a complete and accurate record of each sale of cigarettes 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 subwholesaler and each wholesaler shall make an inventory record each month of all cigarettes on the premises or under the control of the subwholesaler or 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 subwholesaler or 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>Cigarettes in a vending machine or cigarettes transferred to retail stock by written memorandum need not be included in the inventory record.</text> </level> </level> <level label="c"> <text>Each subwholesaler and each 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> </section> <section article="gbr" article_name="Business Regulation" number="16-219" title_number="16" title_name="Cigarettes" subtitle_number="2" subtitle_name="Cigarette Business Licenses"> <level label="a"> <text>A person who transports cigarettes by vehicle on a public road shall have in the vehicle a delivery ticket or 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 unstamped cigarettes on which the tobacco tax has not been paid; or</text> </level> <level label="ii"> <text>a person in another jurisdiction authorized to hold cigarettes 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 cigarettes that are being transported.</text> </level> </level> <level label="b"> <text>The Executive Director by regulation may require a common carrier that brings cigarettes into the State to submit to the Executive Director a copy of any freight bill relating to the cigarette shipment.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="16-220" title_number="16" title_name="Cigarettes" subtitle_number="2" subtitle_name="Cigarette Business Licenses"> <level label="a"> <text>The Executive Director shall seal a vending machine to prevent the sale or removal of cigarettes from the machine if:</text> <level label="1"> <text>a tax stamp is not visible on each visible package of cigarettes in the machine, as required by § 16–209(b)(1) of this subtitle; or</text> </level> <level label="2"> <text>the machine is not labeled as required by § 16–209(b)(2) of this subtitle.</text> </level> </level> <level label="b"> <text>If the violation for which a vending machine is sealed has been corrected in the presence of the Executive Director or the Executive Director’s designee, the Executive Director shall remove the seal.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="16-221" title_number="16" title_name="Cigarettes" subtitle_number="2" subtitle_name="Cigarette Business Licenses"> <level label="a"> <text>Except as otherwise provided in § 16–220 of this subtitle, a person may not remove or tamper with a seal placed on a vending machine by the Executive Director.</text> </level> <level label="b"> <text>A person who willfully violates this section is guilty of a misdemeanor and, on conviction, is subject to a fine not exceeding $1,000 or imprisonment not exceeding 1 year or both.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="16-222" title_number="16" title_name="Cigarettes" subtitle_number="2" subtitle_name="Cigarette Business Licenses"> <level label="a"> <text>A person may not ship, import, or sell into or within this State any brand of cigarette 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 cigarettes 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 cigarettes; and</text> </level> <level label="2"> <text>shall ensure that the containers or individual packages of cigarettes 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 cigarettes into or within this State in violation of this section is subject to disciplinary action by the Executive Director under § 16–210 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="16-223" title_number="16" title_name="Cigarettes" subtitle_number="2" subtitle_name="Cigarette Business Licenses"> <level label="a"> <text>This section applies to a person who is engaged in the business of selling or distributing cigarettes.</text> </level> <level label="b"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, a person covered under this section may not:</text> <level label="i"> <text>sell or ship cigarettes, 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 cigarettes, 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="2"> <text>A licensed retailer may deliver no more than two cartons of cigarettes directly to a consumer if the delivery is made by the licensed retailer or an employee of the licensed retailer.</text> </level> </level> <level label="c"> <level label="1"> <text>A licensee who sells or ships cigarettes in violation of this section or causes cigarettes to be shipped in violation of this section is:</text> <level label="i"> <text>subject to discipline by the Executive Director under § 16–210 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 carton of cigarettes 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 cigarettes in violation of this section or causes cigarettes 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 carton of cigarettes transported or imprisonment not exceeding 2 years or both.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="16-301" title_number="16" title_name="Cigarettes" subtitle_number="3" subtitle_name="License to Sell Cigarettes at Retail in Counties"> <text>Whenever a person sells cigarettes at retail in a county, the person must have a county license for:</text> <level label="1"> <text>each place of business; and</text> </level> <level label="2"> <text>each vending machine, if the applicant sells cigarettes through a vending machine.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="16-302" title_number="16" title_name="Cigarettes" subtitle_number="3" subtitle_name="License to Sell Cigarettes at Retail in Counties"> <level label="a"> <text>For each county license, an applicant shall:</text> <level label="1"> <text>submit an application to the clerk; and</text> </level> <level label="2"> <text>pay to the clerk a license fee of $300.</text> </level> </level> <level label="b"> <level label="1"> <text>From each license fee collected under subsection (a) of this section, the clerk shall distribute:</text> <level label="i"> <text>$25 to the Executive Director;</text> </level> <level label="ii"> <text>in Montgomery County, $275 to the county to be used to enforce existing laws banning the sale or distribution of tobacco, tobacco products, or electronic smoking devices, as defined in § 16.7–101 of this article, to individuals under the age of 21 years; and</text> </level> <level label="iii"> <text>in all other counties, $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 § 16.7–101 of this article, to individuals under the age of 21 years.</text> </level> </level> <level label="2"> <text>Funds distributed under paragraph (1)(ii) of this subsection may not be used to supplant existing funding for the enforcement of laws banning the sale or distribution of tobacco or tobacco products to individuals under the age of 21 years.</text> </level> </level> <level label="c"> <text>In Baltimore City, in addition to the requirements under subsection (a) of this section, an applicant for an initial or renewal county license shall provide to the clerk a licensure authorization issued under § 16–302.1 of this subtitle.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="16-302.1" title_number="16" title_name="Cigarettes" subtitle_number="3" subtitle_name="License to Sell Cigarettes at Retail in Counties"> <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>The Mayor and City Council of Baltimore City may:</text> <level label="1"> <text>establish and charge a fee for a licensure authorization request made under this section or § 16.5–201.1 or § 16.7–202.1 of this article; and</text> </level> <level label="2"> <text>establish a process to accept and approve or deny licensure authorization requests made under this section and §§ 16.5–201.1 and 16.7–202.1 of this article.</text> </level> </level> <level label="d"> <text>If a process is established under subsection (c) of this section, the Mayor and City Council of Baltimore City shall include as part of the process:</text> <level label="1"> <text>a requirement that an applicant is:</text> <level label="i"> <text>in compliance with all relevant State and local laws; and</text> </level> <level label="ii"> <text>otherwise entitled to be licensed; and</text> </level> </level> <level label="2"> <text>a mechanism for including the basis for any denial of a licensure authorization request that is referred to the Executive Director.</text> </level> </level> <level label="e"> <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="16-303" title_number="16" title_name="Cigarettes" subtitle_number="3" subtitle_name="License to Sell Cigarettes at Retail in Counties"> <text>The clerk shall issue a county license to each applicant who meets the requirements of this subtitle.</text> </section> <section article="gbr" article_name="Business Regulation" number="16-304" title_number="16" title_name="Cigarettes" subtitle_number="3" subtitle_name="License to Sell Cigarettes at Retail in Counties"> <text>A county license expires on the first anniversary of its effective date.</text> </section> <section article="gbr" article_name="Business Regulation" number="16-305" title_number="16" title_name="Cigarettes" subtitle_number="3" subtitle_name="License to Sell Cigarettes at Retail in Counties"> <text>A county licensee shall display the county license in a conspicuous place:</text> <level label="1"> <text>in the place of business for which it is issued; or</text> </level> <level label="2"> <text>on the premises where the machine is located, if the licensee sells cigarettes through a vending machine.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="16-306" title_number="16" title_name="Cigarettes" subtitle_number="3" subtitle_name="License to Sell Cigarettes at Retail in Counties"> <text>Subject to the hearing provisions of § 16–307 of this subtitle, the Executive Director may deny a county license to an applicant, reprimand a county licensee, or suspend or revoke a county 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>violates § 16–308.1 of this subtitle; or</text> </level> <level label="4"> <text>fails to comply with the Maryland Cigarette Sales Below Cost Act and regulations adopted under it.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="16-307" title_number="16" title_name="Cigarettes" subtitle_number="3" subtitle_name="License to Sell Cigarettes at Retail in Counties"> <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 § 16–306 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="16-308" title_number="16" title_name="Cigarettes" subtitle_number="3" subtitle_name="License to Sell Cigarettes at Retail in Counties"> <text>A person may not sell cigarettes at retail in a county unless the person has an appropriate county license.</text> </section> <section article="gbr" article_name="Business Regulation" number="16-308.1" title_number="16" title_name="Cigarettes" subtitle_number="3" subtitle_name="License to Sell Cigarettes at Retail in Counties"> <level label="a"> <text>A person who holds a county license may not sell herbal incense or potpourri that includes a noncontrolled substance with a chemical structure that is substantially similar to the chemical structure of a controlled dangerous substance as defined in § 5–101 of the Criminal Law Article.</text> </level> <level label="b"> <text>Authorized employees of the Field Enforcement Division of the Executive Director’s Office may enforce the provisions of subsection (a) of this section.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="16-308.2" title_number="16" title_name="Cigarettes" subtitle_number="3" subtitle_name="License to Sell Cigarettes at Retail in Counties"> <level label="a"> <text>In this section, “unpackaged cigarette” means any cigarette not contained in a sealed package of 20 or more cigarettes that are designed and intended to be sold as a unit.</text> </level> <level label="b"> <text>This section applies only in Baltimore City.</text> </level> <level label="c"> <text>A person who holds a county license may not sell an unpackaged cigarette.</text> </level> <level label="d"> <level label="1"> <text>An enforcement officer of the Tobacco Use Prevention and Cessation Program in the Baltimore City Health Department may enforce this section by entering and inspecting, at a reasonable time, the premises of a county license holder.</text> </level> <level label="2"> <text>An enforcement officer shall report a violation of this section to a State’s Attorney.</text> </level> <level label="3"> <text>Subject to the hearing provisions of § 16–307 of this subtitle, 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> <level label="e"> <text>Issuance of a citation by the Comptroller or the Executive Director for a violation of § 16–215 of this title precludes a prosecution for a violation under this section arising out of the same incident.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="16-308.3" title_number="16" title_name="Cigarettes" subtitle_number="3" subtitle_name="License to Sell Cigarettes at Retail in Counties"> <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="16-309" title_number="16" title_name="Cigarettes" subtitle_number="3" subtitle_name="License to Sell Cigarettes at Retail in Counties"> <level label="a"> <text>Except as provided in subsection (b) of this section, a person who violates this subtitle is guilty of a misdemeanor and, on conviction, is subject to a fine of $100.</text> </level> <level label="b"> <text>A person who violates § 16–308.1 of this subtitle is guilty of a misdemeanor and on conviction is subject to a fine not exceeding:</text> <level label="1"> <text>except as provided in items (2) and (3) of this subsection, $300;</text> </level> <level label="2"> <text>for a second violation occurring within 2 years after the first violation, $1,000; and</text> </level> <level label="3"> <text>for a third or subsequent violation occurring within 2 years after the preceding violation, $3,000.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="16-3A-01" title_number="16" title_name="Cigarettes" subtitle_number="3A" subtitle_name="Tobacco Product Vending Machines"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Owner” means the person that owns or operates an establishment in which a vending machine is located.</text> </level> <level label="c"> <level label="1"> <text>“Tobacco product” means any product that is:</text> <level label="i"> <text>intended for human inhalation, absorption, ingestion, smoking, heating, chewing, dissolving, or any other manner of consumption that is made of, derived from, or contains:</text> <level label="1"> <text>tobacco; or</text> </level> <level label="2"> <text>nicotine; or</text> </level> </level> <level label="ii"> <text>an accessory or a component used in any manner of consumption of a product described in item (i) of this paragraph.</text> </level> </level> <level label="2"> <text>“Tobacco product” includes:</text> <level label="i"> <text>cigarettes, cigars, pipe tobacco, chewing tobacco, snuff, and snus;</text> </level> <level label="ii"> <text>electronic smoking devices; and</text> </level> <level label="iii"> <text>filters, rolling papers, pipes, and liquids used in electronic smoking devices regardless of nicotine content.</text> </level> </level> <level label="3"> <text>“Tobacco product” does not include 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.</text> </level> </level> <level label="d"> <text>“Vending machine” means any mechanical, electronic, or similar self–service device that on insertion of a coin, coins, token, or other similar means dispenses a tobacco product.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="16-3A-02" title_number="16" title_name="Cigarettes" subtitle_number="3A" subtitle_name="Tobacco Product Vending Machines"> <text>A person may not sell or dispense or offer to sell or dispense a tobacco product through a vending machine in the State, unless the vending machine is located in an establishment that individuals under the age of 21 years are prohibited by law from entering at any time.</text> </section> <section article="gbr" article_name="Business Regulation" number="16-3A-03" title_number="16" title_name="Cigarettes" subtitle_number="3A" subtitle_name="Tobacco Product Vending Machines"> <text>A person who violates this subtitle is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $100.</text> </section> <section article="gbr" article_name="Business Regulation" number="16-3B-01" title_number="16" title_name="Cigarettes" subtitle_number="3B" subtitle_name="Miscellaneous Prohibited Act; Penalty"> <level label="a"> <text>A person may not violate a regulation adopted by the Executive Director that applies to a person who sells cigarettes at retail.</text> </level> <level label="b"> <text>A person who violates this section is guilty of a misdemeanor and, on conviction, is subject to a fine of $100.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="16-401" title_number="16" title_name="Cigarettes" subtitle_number="4" subtitle_name="Tobacco Product Manufacturers Escrow Act"> <level label="a"> <text>Cigarette smoking presents serious public health concerns to the State and to the citizens of the State. The United States Surgeon General has determined that smoking causes lung cancer, heart disease, and other serious diseases, and that there are hundreds of thousands of tobacco–related deaths in the United States each year. These diseases most often do not appear until many years after the person in question begins smoking.</text> </level> <level label="b"> <text>Cigarette smoking also presents serious financial concerns for the State. Under certain health care programs, the State may have a legal obligation to provide medical assistance to eligible persons for health conditions associated with cigarette smoking, and those persons may have a legal entitlement to receive the medical assistance.</text> </level> <level label="c"> <text>Under these programs, the State pays millions of dollars each year to provide medical assistance for these persons for health conditions associated with cigarette smoking.</text> </level> <level label="d"> <text>It is the policy of the State that financial burdens imposed on the State by cigarette smoking be borne by tobacco product manufacturers rather than by the State to the extent that such manufacturers either determine to enter into a settlement with the State or are found culpable by the courts.</text> </level> <level label="e"> <text>On November 23, 1998, leading United States tobacco product manufacturers entered into a settlement agreement, entitled the “Master Settlement Agreement”, with the State. The Master Settlement Agreement obligates these manufacturers, in return for a release of past, present, and certain future claims against them as described in the Agreement, to pay substantial sums to the State (tied in part to their volume of sales); to fund a national foundation devoted to the interests of public health; and to make substantial changes in their advertising and marketing practices and corporate culture, with the intention of reducing underage smoking.</text> </level> <level label="f"> <level label="1"> <text>It would be contrary to the policy of the State if tobacco product manufacturers who determine not to enter into such a settlement could use a resulting cost advantage to derive large, short–term profits in the years before liability may arise without ensuring that the State will have an eventual source of recovery from them if they are proven to have acted culpably.</text> </level> <level label="2"> <text>It is thus in the interest of the State to require such tobacco product manufacturers to establish a reserve fund to guarantee a source of compensation in order to prevent them from deriving large, short–term profits and then becoming judgment–proof before liability may arise.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="16-402" title_number="16" title_name="Cigarettes" subtitle_number="4" subtitle_name="Tobacco Product Manufacturers Escrow Act"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Adjusted for inflation” means increased in accordance with the formula for inflation adjustment set forth in Exhibit C to the Master Settlement Agreement.</text> </level> <level label="c"> <level label="1"> <text>“Affiliate” means a person who directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or control with, another person.</text> </level> <level label="2"> <text>For the purposes of paragraph (1) of this subsection:</text> <level label="i"> <text>“owns”, “is owned”, and “ownership” mean ownership of an equity interest, or the equivalent thereof, of 10 percent or more; and</text> </level> <level label="ii"> <text>“person” means an individual, partnership, committee, association, corporation, or any other organization or group of persons.</text> </level> </level> </level> <level label="d"> <text>“Allocable share” has the meaning that is stated in the Master Settlement Agreement.</text> </level> <level label="e"> <level label="1"> <text>“Cigarette” means any product that contains nicotine, is intended to be burned or heated under ordinary conditions of use, and consists of or contains:</text> <level label="i"> <text>any roll of tobacco wrapped in paper or in any substance not containing tobacco;</text> </level> <level label="ii"> <text>tobacco, in any form, that is functional in the product, which, because of its appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to be offered to, or purchased by, consumers as a cigarette; or</text> </level> <level label="iii"> <text>any roll of tobacco wrapped in any substance containing tobacco which, because of its appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to be offered to, or purchased by, consumers as a cigarette described in item (i) of this paragraph.</text> </level> </level> <level label="2"> <text>“Cigarette” includes “roll–your–own” tobacco (i.e., any tobacco which, because of its appearance, type, packaging, or labeling is suitable for use and likely to be offered to or purchased by consumers as tobacco for making cigarettes). For purposes of this definition of “cigarette”, 0.09 ounces of “roll–your–own” tobacco shall constitute one individual “cigarette”.</text> </level> </level> <level label="f"> <text>“Master Settlement Agreement” means the settlement agreement and related documents entered into on November 23, 1998, by the State and leading United States tobacco product manufacturers.</text> </level> <level label="g"> <text>“Qualified escrow fund” means an escrow arrangement with a federally or State chartered financial institution having no affiliation with any tobacco product manufacturer and having assets of at least $1,000,000,000 where such arrangement requires that such financial institution hold the principal of the escrowed funds for the benefit of releasing parties and prohibits the tobacco product manufacturer that places the funds into escrow from using, accessing, or directing the use of the principal of the funds except as consistent with § 16–403(b) of this subtitle.</text> </level> <level label="h"> <text>“Released claims” means released claims as that term is defined in the Master Settlement Agreement.</text> </level> <level label="i"> <text>“Releasing parties” means releasing parties as that term is defined in the Master Settlement Agreement.</text> </level> <level label="j"> <level label="1"> <text>“Tobacco product manufacturer” means an entity that, after June 1, 1999, directly (and not exclusively through any affiliate):</text> <level label="i"> <text>manufactures cigarettes anywhere that such manufacturer intends them to be sold in the United States, including cigarettes intended to be sold in the United States through an importer (except where such importer is an original participating manufacturer (as that term is defined in the Master Settlement Agreement) that will be responsible for the payments under the Master Settlement Agreement with respect to such cigarettes as a result of the provisions of subsection II(mm) of the Master Settlement Agreement and that pays the taxes specified in subsection II(z) of the Master Settlement Agreement, and provided that the manufacturer of such cigarettes does not market or advertise the cigarettes in the United States);</text> </level> <level label="ii"> <text>is the first purchaser anywhere for resale in the United States of cigarettes manufactured anywhere that the manufacturer does not intend to be sold in the United States; or</text> </level> <level label="iii"> <text>becomes a successor of an entity described in item (i) or (ii) of this paragraph or paragraph (2) of this subsection.</text> </level> </level> <level label="2"> <text>The term “tobacco product manufacturer” shall not include an affiliate of a tobacco product manufacturer unless such affiliate itself falls within any provisions of paragraph (1)(i), (ii), or (iii) of this subsection.</text> </level> </level> <level label="k"> <text>“Units sold” means the number of individual cigarettes:</text> <level label="1"> <text>sold in the State by the applicable tobacco product manufacturer, whether directly or through a distributor, retailer, or similar intermediary or intermediaries, during the year in question; and</text> </level> <level label="2"> <text>as measured by excise taxes collected by the State on packs (or “roll–your–own” tobacco containers) bearing the excise tax stamp of the State or on unstamped “roll–your–own” tobacco containers, with each 0.09 ounces of “roll–your–own” tobacco equaling one (1) unit sold. The State Comptroller shall promulgate regulations necessary to ascertain the amount of State excise tax paid on the cigarettes of such tobacco product manufacturer for each year.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="16-403" title_number="16" title_name="Cigarettes" subtitle_number="4" subtitle_name="Tobacco Product Manufacturers Escrow Act"> <level label="a"> <text>Any tobacco product manufacturer that sells cigarettes to consumers within the State, whether directly or through a distributor, retailer, or similar intermediary or intermediaries, after June 1, 1999, shall either:</text> <level label="1"> <text>become a participating manufacturer, as that term is defined in section II(jj) of the Master Settlement Agreement, and generally perform its financial obligations under the Master Settlement Agreement; or</text> </level> <level label="2"> <text>place into a qualified escrow fund by April 15 of the year following the year in question the following amounts, as such amounts are adjusted for inflation:</text> <level label="i"> <text>for 1999, $.0094241 per unit sold after June 1, 1999;</text> </level> <level label="ii"> <text>for 2000, $.0104712 per unit sold;</text> </level> <level label="iii"> <text>for each of 2001 and 2002, $.0136125 per unit sold;</text> </level> <level label="iv"> <text>for each of 2003, 2004, 2005, and 2006, $.0167539 per unit sold; and</text> </level> <level label="v"> <text>for 2007 and each year thereafter, $.0188482 per unit sold.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>A tobacco product manufacturer that places funds into escrow in accordance with subsection (a)(2) of this section shall receive the interest or other appreciation on the funds as earned.</text> </level> <level label="2"> <text>The funds themselves shall be released from escrow only under the following circumstances:</text> <level label="i"> <text>to pay a judgment or settlement on any released claim brought against such tobacco product manufacturer by the State or any releasing party located or residing in the State. Funds shall be released from escrow under this subparagraph:</text> <level label="1"> <text>in the order in which they were placed into escrow; and</text> </level> <level label="2"> <text>only to the extent and at the time necessary to make payments required under such judgment or settlement;</text> </level> </level> <level label="ii"> <text>to the extent that a tobacco product manufacturer establishes that the amount it was required to place into escrow on account of units sold in the State in a particular year was greater than the Master Settlement Agreement payments, as determined pursuant to section IX(i) of that Agreement, including after final determination of all adjustments, that such manufacturer would have been required to make on account of such units sold had it been a participating manufacturer, the excess shall be released from escrow and revert back to such tobacco manufacturer; or</text> </level> <level label="iii"> <text>to the extent funds are not released from escrow under item (i) or (ii) of this paragraph, funds shall be released from escrow and revert to such tobacco product manufacturer 25 years after the date on which they were placed into escrow.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>Each tobacco product manufacturer that elects to place funds into escrow pursuant to subsection (a)(2) of this section shall annually certify to the Attorney General that it is in compliance with subsections (a)(2) and (b) of this section.</text> </level> <level label="2"> <text>The Attorney General may bring a civil action on behalf of the State against any tobacco product manufacturer that fails to place into escrow the funds required under this section.</text> </level> <level label="3"> <level label="i"> <text>Any tobacco product manufacturer that fails in any year to place into escrow the funds required under this section shall be required within 15 days to place such funds into escrow as will bring the manufacturer into compliance with this section.</text> </level> <level label="ii"> <text>The court, upon a finding of a violation of subsection (a)(2) or (b) of this section, may impose a civil penalty, to be paid to the General Fund of the State:</text> <level label="1"> <text>in an amount not to exceed 5 percent of the amount improperly withheld from escrow per day of the violation; and</text> </level> <level label="2"> <text>in a total amount not to exceed 100 percent of the original amount improperly withheld from escrow.</text> </level> </level> </level> <level label="4"> <level label="i"> <text>If a tobacco product manufacturer has knowingly violated subsection (a)(2) or (b) of this section, the manufacturer shall be required within 15 days to place such funds into escrow as will bring it into compliance with this section.</text> </level> <level label="ii"> <text>Upon a finding of a knowing violation of subsection (a)(2) or (b) of this section, the court may impose a civil penalty, to be paid to the General Fund of the State:</text> <level label="1"> <text>in an amount not to exceed 15 percent of the amount improperly withheld from escrow per day of the violation; and</text> </level> <level label="2"> <text>in a total amount not to exceed 300 percent of the original amount improperly withheld from escrow.</text> </level> </level> </level> <level label="5"> <text>In the case of a second knowing violation of subsection (a)(2) or (b) of this section, the tobacco product manufacturer shall be prohibited from selling cigarettes to consumers within the State, whether directly or through a distributor, retailer, or similar intermediary or intermediaries, for a period not to exceed 2 years.</text> </level> <level label="6"> <text>Each failure to make the annual deposit required under this section shall constitute a separate violation.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="16-501" title_number="16" title_name="Cigarettes" subtitle_number="5" subtitle_name="Escrow Requirements for Nonparticipating Tobacco Product Manufacturers"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <level label="1"> <text>“Brand family” means all styles of cigarettes sold under the same trademark, regardless of whether the cigarettes are differentiated from one another by means of additional modifiers or descriptors such as “menthol”, “lights”, “kings”, “100s”, or other differentiation.</text> </level> <level label="2"> <text>“Brand family” includes any use of a brand name (alone or in conjunction with any other word) trademark, logo, symbol, motto, selling message, recognizable pattern of colors, or any other indicia of product identification identical or similar to, or identifiable with, a previously known brand of cigarettes.</text> </level> </level> <level label="c"> <text>“Cigarette” has the meaning stated in § 16–402(e) of this title (the Escrow Act).</text> </level> <level label="d"> <text>“Comptroller” means the Comptroller of the State or any authorized agent of the Comptroller who is responsible for collection of the excise tax on cigarettes.</text> </level> <level label="e"> <text>“Escrow Act” means Subtitle 4 of this title.</text> </level> <level label="f"> <text>“Executive Director” includes an agent or employee of the Alcohol and Tobacco Commission responsible for the enforcement of State tobacco laws and regulations.</text> </level> <level label="g"> <text>“Licensed wholesaler” means a wholesaler who is licensed under Subtitle 2 of this title to act as a wholesaler and any person who is an authorized agent of the licensed wholesaler for the stamping and distribution of cigarettes.</text> </level> <level label="h"> <text>“Master Settlement Agreement” has the meaning stated in § 16–402(f) of this title (the Escrow Act).</text> </level> <level label="i"> <text>“Nonparticipating manufacturer” means any tobacco product manufacturer that is not a participating manufacturer.</text> </level> <level label="j"> <text>“Participating manufacturer” has the meaning stated in section II(jj) of the Master Settlement Agreement and all amendments to the Agreement.</text> </level> <level label="k"> <text>“Qualified escrow fund” has the meaning stated in § 16–402(g) of this title (the Escrow Act).</text> </level> <level label="l"> <text>“Tobacco product manufacturer” has the meaning stated in § 16–402(j) of this title (the Escrow Act).</text> </level> <level label="m"> <text>“Units sold” has the meaning stated in § 16–402(k) of this title (the Escrow Act).</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="16-502" title_number="16" title_name="Cigarettes" subtitle_number="5" subtitle_name="Escrow Requirements for Nonparticipating Tobacco Product Manufacturers"> <level label="a"> <text>Violations of the Escrow Act, an act concerning nonparticipating manufacturers and deposits of funds into escrow accounts, threaten the integrity of the tobacco Master Settlement Agreement, the fiscal soundness of the State, and the public health.</text> </level> <level label="b"> <text>Enacting procedural enhancements will help prevent violations and aid the enforcement of the Escrow Act and thereby safeguard the Master Settlement Agreement, the fiscal soundness of the State, and the public health.</text> </level> <level label="c"> <text>The provisions of this subtitle are not intended to and may not be interpreted to amend the Escrow Act.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="16-503" title_number="16" title_name="Cigarettes" subtitle_number="5" subtitle_name="Escrow Requirements for Nonparticipating Tobacco Product Manufacturers"> <level label="a"> <text>A tobacco product manufacturer whose cigarettes are sold in this State, whether directly or through a distributor, retailer or similar intermediary, shall execute and deliver, on a form prescribed by the Attorney General, a certification to the Attorney General no later than the 30th day of April each year, certifying under penalty of perjury that, as of the date of the certification, the tobacco product manufacturer either:</text> <level label="1"> <text>is a participating manufacturer; or</text> </level> <level label="2"> <text>is in full compliance with the Escrow Act.</text> </level> </level> <level label="b"> <level label="1"> <text>A participating manufacturer shall include in its certification a list of its brand families.</text> </level> <level label="2"> <text>The participating manufacturer shall update the list at least 30 calendar days prior to any addition or modification to its brand families by executing and delivering a supplemental certification to the Attorney General.</text> </level> </level> <level label="c"> <level label="1"> <text>A nonparticipating manufacturer shall include in its certification a complete list of all of its brand families.</text> </level> <level label="2"> <text>The certification shall:</text> <level label="i"> <text>separately list each brand family of cigarettes and the number of units sold for each brand family that was sold in the State during the preceding calendar year;</text> </level> <level label="ii"> <text>list each of its brand families that have been sold in the State at any time during the current calendar year;</text> </level> <level label="iii"> <text>indicate by an asterisk any brand family sold in the State during the preceding calendar year that is no longer being sold in the State as of the date of such certification; and</text> </level> <level label="iv"> <text>identify by name and address any other manufacturer of such brand families in the preceding or current calendar year.</text> </level> </level> <level label="3"> <text>The nonparticipating manufacturer shall update the list at least 30 calendar days prior to any addition or modification of its brand families by executing and delivering a supplemental certification to the Attorney General.</text> </level> </level> <level label="d"> <level label="1"> <text>In the case of a nonparticipating manufacturer, the certification shall further certify that the nonparticipating manufacturer:</text> <level label="i"> <text>is registered to do business in the State or has appointed a resident agent for service of process and provided notice of the appointment as required by § 16–505 of this subtitle;</text> </level> <level label="ii"> <text>has established and continues to maintain a qualified escrow fund, and has executed a qualified escrow agreement that has been reviewed and approved by the Attorney General and that governs the qualified escrow fund; and</text> </level> <level label="iii"> <text>is in full compliance with the Escrow Act and this subtitle and any regulations adopted in accordance with the Escrow Act and this subtitle.</text> </level> </level> <level label="2"> <text>The certification shall include:</text> <level label="i"> <text>the name, address and telephone number of the financial institution in which the nonparticipating manufacturer has established a qualified escrow fund required under § 16–403(a)(2) of this title (the Escrow Act) and all regulations adopted under it;</text> </level> <level label="ii"> <text>the account number of the qualified escrow fund and subaccount number for the State of Maryland;</text> </level> <level label="iii"> <text>the amount the nonparticipating manufacturer placed in the fund for cigarettes sold in the State during the preceding calendar year, the date and amount of each deposit, and any additional information the Attorney General considers necessary to confirm the information required by this subparagraph; and</text> </level> <level label="iv"> <text>the amount of and date of any withdrawal or transfer of funds the nonparticipating manufacturer made at any time from the fund or from any other qualified escrow fund into which the nonparticipating manufacturer made escrow payments under § 16–403(a)(2) of this title (the Escrow Act) and all regulations adopted under that section.</text> </level> </level> </level> <level label="e"> <level label="1"> <text>A tobacco product manufacturer may not include a brand family in its certification unless:</text> <level label="i"> <text>in the case of a participating manufacturer, the participating manufacturer affirms that the brand family is deemed to be its cigarettes for purposes of calculating its payments under the Master Settlement Agreement for the relevant year, in the volume and shares determined in accordance with the Master Settlement Agreement; and</text> </level> <level label="ii"> <text>in the case of a nonparticipating manufacturer, the nonparticipating manufacturer affirms that the brand family is deemed to be its cigarettes for purposes of the Escrow Act.</text> </level> </level> <level label="2"> <text>Nothing in this section may be construed as limiting or otherwise affecting the State’s right to maintain that a brand family constitutes cigarettes of a different tobacco product manufacturer for purposes of calculating payments under the Master Settlement Agreement or for purposes of the Escrow Act.</text> </level> <level label="3"> <text>The tobacco product manufacturer shall maintain all invoices and documentation of sales and any other information relied upon for its certification for a period of 5 years, unless otherwise required by law to maintain them for a greater period of time.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="16-504" title_number="16" title_name="Cigarettes" subtitle_number="5" subtitle_name="Escrow Requirements for Nonparticipating Tobacco Product Manufacturers"> <level label="a"> <text>Except as provided in subsection (b) of this section, the Attorney General shall develop and make available for public inspection a directory listing all tobacco product manufacturers that have provided current and accurate certifications conforming to the requirements of § 16-503 of this subtitle and all brand families that are listed in such certifications.</text> </level> <level label="b"> <level label="1"> <text>The Attorney General may not include or retain in the directory the name or brand families of any nonparticipating manufacturer that fails to provide the required certification or whose certification the Attorney General determines is not in compliance with § 16–503(c)(3) and (d) of this subtitle, unless the Attorney General has determined that the violation has been cured to the satisfaction of the Attorney General.</text> </level> <level label="2"> <text>Neither a tobacco product manufacturer nor a brand family may be included or retained in the directory if the Attorney General concludes, in the case of a nonparticipating manufacturer, that:</text> <level label="i"> <text>any escrow payment required under § 16–403(a)(2) of this title (the Escrow Act) for any period for any brand family, whether or not listed by such nonparticipating manufacturer, has not been fully paid into a qualified escrow fund governed by a qualified escrow agreement that has been approved by the Attorney General; or</text> </level> <level label="ii"> <text>any outstanding final judgment, including interest on the judgment, for a violation of the Escrow Act has not been fully satisfied for the brand family or the manufacturer.</text> </level> </level> <level label="3"> <text>The Attorney General shall update the directory as necessary in order to correct mistakes and to add or remove a tobacco product manufacturer or brand family to keep the directory in conformity with the requirements of this subtitle.</text> </level> <level label="4"> <text>Each licensed wholesaler shall provide and update as necessary an electronic mail address to the Attorney General for the purpose of receiving any notifications that may be required by this subtitle.</text> </level> </level> <level label="c"> <text>A person may not:</text> <level label="1"> <text>affix a stamp to a package or other container of cigarettes of a tobacco product manufacturer or brand family not included in the directory; or</text> </level> <level label="2"> <text>sell, offer or possess for sale in this State, or import for personal consumption in this State, cigarettes of a tobacco product manufacturer or brand family not included in the directory.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="16-505" title_number="16" title_name="Cigarettes" subtitle_number="5" subtitle_name="Escrow Requirements for Nonparticipating Tobacco Product Manufacturers"> <level label="a"> <level label="1"> <text>Any nonresident or foreign nonparticipating manufacturer that has not registered to do business in the State as a foreign corporation or business entity shall, as a condition precedent to having its brand families included or retained in the directory described in § 16-504 of this subtitle, appoint and continually engage without interruption the services of an agent in the United States to act as an agent for the service of process on the nonresident or foreign nonparticipating manufacturer.</text> </level> <level label="2"> <text>Any process and any action or proceeding against the nonresident or foreign nonparticipating manufacturer concerning or arising out of the enforcement of this subtitle or the Escrow Act may be served in any manner authorized by law.</text> </level> <level label="3"> <text>The service of process shall constitute legal and valid service of process on the nonparticipating manufacturer. The nonparticipating manufacturer shall provide, to the satisfaction of the Attorney General, the name, address, phone number, and proof of the appointment and availability of the agent to the Attorney General.</text> </level> </level> <level label="b"> <level label="1"> <text>The nonparticipating manufacturer shall provide:</text> <level label="i"> <text>notice to the Attorney General at least 30 calendar days prior to termination of the authority of an agent; and</text> </level> <level label="ii"> <text>proof to the satisfaction of the Attorney General of the appointment of a new agent not less than 5 calendar days prior to the termination of an existing agent appointment.</text> </level> </level> <level label="2"> <text>If an agent terminates an agency appointment, the nonparticipating manufacturer shall:</text> <level label="i"> <text>notify the Attorney General of the termination within 5 calendar days; and</text> </level> <level label="ii"> <text>include proof to the satisfaction of the Attorney General of the appointment of a new agent.</text> </level> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="16-506" title_number="16" title_name="Cigarettes" subtitle_number="5" subtitle_name="Escrow Requirements for Nonparticipating Tobacco Product Manufacturers"> <level label="a"> <level label="1"> <text>Not later than 21 days after the end of each calendar quarter, and more frequently if so directed by the Comptroller, each licensed wholesaler shall submit complete and accurate information in the form and manner the Comptroller requires to facilitate compliance with this title, including a list by brand family of the total number of cigarettes, or in the case of roll–your–own cigarettes, the equivalent stick count for which the licensed wholesaler affixed stamps during the previous calendar quarter or otherwise paid the tax due for the cigarettes.</text> </level> <level label="2"> <text>The licensed wholesaler shall maintain and make available to the Comptroller for a period of 5 years all invoices and documentation of sales of all nonparticipating manufacturer cigarettes and any other information relied on in reporting to the Comptroller.</text> </level> </level> <level label="b"> <level label="1"> <text>The Comptroller may disclose to the Attorney General and the Executive Director any information received under this subtitle and requested by the Attorney General or the Executive Director for purposes of determining compliance with and enforcement of the provisions of this title.</text> </level> <level label="2"> <text>The Comptroller, the Attorney General, and the Executive Director shall share with each other the information received under this subtitle and may share the information with other federal, State, or local agencies only for purposes of enforcement of this subtitle, the Escrow Act, or corresponding laws of other states.</text> </level> </level> <level label="c"> <text>The Attorney General may require at any time from a nonparticipating manufacturer proof, from the financial institution in which the manufacturer has established a qualified escrow fund for the purpose of compliance with the Escrow Act, of the amount of money in the escrow fund, exclusive of interest, the amount and date of each deposit to the escrow fund, and the amount and date of each withdrawal from the escrow fund.</text> </level> <level label="d"> <text>In addition to any other information required to be submitted by law, the Comptroller, the Attorney General, or the Executive Director may require a licensed wholesaler or tobacco product manufacturer to submit any additional information, including samples of the packaging or labeling of each brand family, as is necessary to enable the Attorney General to determine whether a tobacco product manufacturer is in compliance with this subtitle.</text> </level> <level label="e"> <level label="1"> <text>To promote compliance with this subtitle, the Attorney General may adopt regulations requiring a tobacco product manufacturer subject to the requirements of § 16-503(a) of this subtitle to make the escrow deposits required in quarterly installments during the year in which the sales covered by the deposits are made.</text> </level> <level label="2"> <text>The Attorney General may require production of information sufficient to enable the Attorney General to determine the adequacy of the amount of the installment deposit.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="16-507" title_number="16" title_name="Cigarettes" subtitle_number="5" subtitle_name="Escrow Requirements for Nonparticipating Tobacco Product Manufacturers"> <level label="a"> <level label="1"> <text>In addition to or instead of any other civil or criminal remedy provided by law, on a determination that a licensed wholesaler has violated § 16–504(c) or § 16–506(a) of this subtitle or any regulation adopted under this subtitle, the Executive Director may revoke or suspend the license of any licensed wholesaler in the manner provided under §§ 16–211 and 16–212 of this title.</text> </level> <level label="2"> <text>Each stamp affixed and each offer to sell cigarettes in violation of § 16–504(c) of this subtitle shall constitute a separate violation.</text> </level> <level label="3"> <text>The Executive Director may also impose a civil penalty in an amount not to exceed the greater of 500% of the retail value of the cigarettes sold or $5,000 on a determination of violation of § 16–504(c) of this subtitle or any regulations adopted under that section.</text> </level> </level> <level label="b"> <level label="1"> <text>Any cigarettes that have been sold, offered for sale or possessed for sale in this State, or imported for personal consumption in this State in violation of § 16–504(c) of this subtitle shall be deemed contraband under §§ 13–836, 13–837, and 13–839 of the Tax – General Article, and those cigarettes shall be subject to seizure and forfeiture as provided in those sections.</text> </level> <level label="2"> <text>All cigarettes seized and forfeited may not be resold and shall be destroyed.</text> </level> </level> <level label="c"> <level label="1"> <text>The Attorney General, on behalf of the Comptroller or the Executive Director, may seek an injunction to restrain a threatened or actual violation of § 16–504(c), § 16–506(a), or § 16–506(d) of this subtitle by a licensed wholesaler and compel the licensed wholesaler to comply with those sections.</text> </level> <level label="2"> <text>In any action brought under this section, the State shall be entitled to recover the costs of investigation, costs of the action, and reasonable attorney’s fees.</text> </level> </level> <level label="d"> <text>A person who sells, distributes, acquires, holds, owns, possesses, transports, imports, or causes to be imported, cigarettes that the person knows or should know are intended for distribution or sale in the State in violation of § 16–504(c) of this subtitle is guilty of a misdemeanor, and on conviction is subject to a fine not exceeding $5,000 or imprisonment not exceeding 1 year or both.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="16-508" title_number="16" title_name="Cigarettes" subtitle_number="5" subtitle_name="Escrow Requirements for Nonparticipating Tobacco Product Manufacturers"> <level label="a"> <text>A determination by the Attorney General to omit or to delete from the directory described in § 16-504 of this subtitle a brand family or tobacco product manufacturer shall be subject to review in accordance with Title 10, Subtitle 2 of the State Government Article.</text> </level> <level label="b"> <text>The Attorney General, the Comptroller, and the Executive Director may adopt regulations to carry out this subtitle.</text> </level> <level label="c"> <text>In any action brought by the State to enforce this subtitle, the State shall be entitled to recover the costs of investigation, expert witness fees, costs of the action, and reasonable attorney’s fees.</text> </level> <level label="d"> <level label="1"> <text>If a court determines that a person has violated this subtitle, the court shall order any profits, gain, gross receipts, or other benefit from the violation to be paid to the State Treasurer for deposit into the Cigarette Restitution Fund established under § 7-317 of the State Finance and Procurement Article.</text> </level> <level label="2"> <text>Unless otherwise expressly provided, the remedies or penalties provided by this subtitle are cumulative to each other, and to the remedies or penalties available under all other laws of this State.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="16-601" title_number="16" title_name="Cigarettes" subtitle_number="6" subtitle_name="Fire Safety Performance Standard for Cigarettes"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Cigarette” has the meaning stated in § 16–101 of this title.</text> </level> <level label="c"> <text>“Consumer testing” means an assessment of cigarettes that is conducted by a manufacturer or conducted under the control and direction of a manufacturer for the purpose of evaluating consumer acceptance of the cigarettes by using only the quantity of cigarettes that is reasonably necessary for the assessment.</text> </level> <level label="d"> <text>“Manufacturer” has the meaning stated in § 16–201 of this title.</text> </level> <level label="e"> <text>“Quality control and quality assurance program” means laboratory procedures implemented to ensure that:</text> <level label="1"> <text>operator bias, systematic and nonsystematic methodological errors, and equipment–related problems do not affect the results of the testing; and</text> </level> <level label="2"> <text>the testing repeatability remains within the required repeatability value for any test trial used to certify cigarettes under this subtitle.</text> </level> </level> <level label="f"> <text>“Repeatability” means the range of values within which the repeat results of cigarette test trials from a single laboratory fall 95% of the time.</text> </level> <level label="g"> <text>“Retailer” has the meaning stated in § 16–201 of this title.</text> </level> <level label="h"> <level label="1"> <text>“Sale” means the exchange or transfer, or the agreement to exchange or transfer, title or possession of property in any manner or by any means for consideration.</text> </level> <level label="2"> <text>“Sale” includes:</text> <level label="i"> <text>the giving or distribution of cigarettes as samples, prizes, gifts, or in connection with consumer testing; and</text> </level> <level label="ii"> <text>the exchange of cigarettes for any consideration other than money.</text> </level> </level> </level> <level label="i"> <text>“Subwholesaler” has the meaning stated in § 16–201 of this title.</text> </level> <level label="j"> <text>“Vending machine operator” has the meaning stated in § 16–201 of this title.</text> </level> <level label="k"> <text>“Wholesaler” has the meaning stated in § 16–201 of this title.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="16-602" title_number="16" title_name="Cigarettes" subtitle_number="6" subtitle_name="Fire Safety Performance Standard for Cigarettes"> <text>** CONTINGENCY – IN EFFECT – CHAPTER 497 OF 2007 **</text> <level label="a"> <text>Except as provided in § 16–602.1 of this subtitle, cigarettes may not be manufactured in this State or sold or offered for sale to any person in this State unless:</text> <level label="1"> <text>the cigarettes have been tested in accordance with the test method and meet the performance standard specified in this section; and</text> </level> <level label="2"> <text>the manufacturer has filed a written certification with the Executive Director in accordance with § 16–603 of this subtitle.</text> </level> </level> <level label="b"> <text>The performance standard for cigarettes sold or offered for sale in the State includes all of the requirements in subsection (e)(1) of this section.</text> </level> <level label="c"> <level label="1"> <text>Testing of cigarettes shall be conducted in accordance with the American Society of Testing and Materials (ASTM) standard E2187–04 “Standard Test Method for Measuring the Ignition Strength of Cigarettes”.</text> </level> <level label="2"> <text>The Executive Director, in consultation with the State Fire Prevention Commission, may adopt a subsequent ASTM standard test method for measuring the ignition strength of cigarettes on a finding that the subsequent method does not result in a change in the percentage of full–length burns exhibited by any tested cigarette when compared to the percentage of full–length burns the same cigarette would exhibit when tested in accordance with ASTM standard E2187–04 and the performance standard of this section.</text> </level> </level> <level label="d"> <text>Testing of cigarettes shall be conducted on 10 layers of filter paper.</text> </level> <level label="e"> <level label="1"> <text>No more than 25% of the cigarettes tested in a test trial shall exhibit full–length burns.</text> </level> <level label="2"> <text>Forty replicate tests shall comprise a complete test trial for each cigarette tested.</text> </level> </level> <level label="f"> <text>The performance standard required by this section shall only be applied to a complete test trial.</text> </level> <level label="g"> <level label="1"> <text>Each laboratory that conducts tests in accordance with this section shall:</text> <level label="i"> <text>have current accreditation pursuant to Standard ISO/IEC 17025 of the International Organization for Standardization, subsequent laboratory standardization, or another comparable accreditation as determined by the Executive Director; and</text> </level> <level label="ii"> <text>implement a quality control and quality assurance program that includes a procedure to determine the repeatability of the testing results.</text> </level> </level> <level label="2"> <text>The repeatability value shall be no greater than 0.19.</text> </level> </level> <level label="h"> <level label="1"> <text>Each cigarette listed in a certification that uses lowered permeability bands in the cigarette paper to achieve compliance with the performance standard of this section shall have at least two nominally identical bands on the paper surrounding the tobacco column.</text> </level> <level label="2"> <text>At least one complete band shall be located at least 15 millimeters from the lighting end of the cigarette.</text> </level> <level label="3"> <text>For a cigarette on which the bands are positioned by design, at least two bands shall be located at least 15 millimeters from the lighting end and 10 millimeters from the filter end of the tobacco column.</text> </level> <level label="4"> <text>For an unfiltered cigarette, the two complete bands shall be located at least 15 millimeters from the lighting end and 10 millimeters from the labeled end of the tobacco column.</text> </level> </level> <level label="i"> <level label="1"> <text>If the Executive Director determines that a cigarette cannot be tested in accordance with the test method required by this section, the manufacturer of the cigarette shall propose to the Executive Director a test method and performance standard for that cigarette.</text> </level> <level label="2"> <text>The Executive Director, in consultation with the State Fire Prevention Commission, may approve a test method and performance standard that the Executive Director determines is equivalent to the requirements of this section, and the manufacturer may use that test method and performance standard for certification of a cigarette in accordance with § 16–603 of this subtitle.</text> </level> <level label="3"> <level label="i"> <text>The Executive Director, in consultation with the State Fire Prevention Commission, shall approve a test method and performance standard used in another state if the Executive Director determines that:</text> <level label="1"> <text>the other state has enacted a reduced cigarette ignition propensity standard that includes a test method and performance standard that are the same as the requirements of this section; and</text> </level> <level label="2"> <text>the officials responsible for implementing the requirements in the other state have approved of the alternative test method and performance standard for a particular cigarette under a legal provision comparable to this section.</text> </level> </level> <level label="ii"> <text>A manufacturer may use a test method and performance standard approved under subparagraph (i) of this paragraph for certification in accordance with § 16–603 of this subtitle of the cigarette used in the approved test method.</text> </level> </level> </level> <level label="j"> <text>This section does not require additional testing for cigarettes that are tested in a manner consistent with the requirements of this section for any other purpose.</text> </level> <level label="k"> <level label="1"> <text>Each manufacturer shall retain copies of the reports of all tests conducted on all cigarettes offered for sale for 3 years.</text> </level> <level label="2"> <level label="i"> <text>On request, the manufacturer shall provide the data retained under paragraph (1) of this subsection to the Executive Director, the State Fire Prevention Commission, or the Attorney General within 60 days after receiving the request, for the purpose of ensuring compliance with this section.</text> </level> <level label="ii"> <text>A manufacturer who does not provide the data within 60 days of a request is subject to a civil penalty not to exceed $10,000 for each day after the 60th day that the violation continues.</text> </level> </level> </level> <level label="l"> <text>This subtitle shall be implemented in accordance with the implementation and substance of the New York fire safety standards for cigarettes.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="16-602.1" title_number="16" title_name="Cigarettes" subtitle_number="6" subtitle_name="Fire Safety Performance Standard for Cigarettes"> <text>** CONTINGENCY – IN EFFECT – CHAPTER 497 OF 2007 **</text> <level label="a"> <text>Cigarettes that are sold or distributed for the purpose of consumer testing in a controlled setting in which the cigarettes are either smoked on the site of the testing or returned to the testing administrator at the conclusion of the testing are not subject to the certification requirements of § 16–602 of this subtitle.</text> </level> <level label="b"> <level label="1"> <text>Except as provided in subsection (c) of this section, cigarettes that are sold or distributed for the purpose of consumer testing in any setting other than a controlled setting as described in subsection (a) of this section are subject to the certification requirements of § 16–602 of this subtitle.</text> </level> <level label="2"> <text>A manufacturer certification under this subsection may not be subject to § 16–605 of this subtitle.</text> </level> </level> <level label="c"> <level label="1"> <level label="i"> <text>The manufacturer may submit to the Executive Director, as “confidential under seal”, descriptors for each cigarette sold or distributed for the purpose of consumer testing under subsection (b)(1) of this section.</text> </level> <level label="ii"> <text>Descriptors shall include brand, style, length, circumference, flavor, and package.</text> </level> </level> <level label="2"> <text>Notwithstanding any other provision of law, the information submitted in accordance with paragraph (1) of this subsection:</text> <level label="i"> <text>is not subject to disclosure under State law or discovery in civil litigation; and</text> </level> <level label="ii"> <text>may be used by the Executive Director or the Attorney General for the purpose of enforcing the provisions of this title.</text> </level> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="16-603" title_number="16" title_name="Cigarettes" subtitle_number="6" subtitle_name="Fire Safety Performance Standard for Cigarettes"> <text>** CONTINGENCY – IN EFFECT – CHAPTER 497 OF 2007 **</text> <level label="a"> <level label="1"> <text>Each manufacturer shall submit to the Executive Director written certification attesting that each cigarette has been tested in accordance with and has met the performance standard required under § 16–602 of this subtitle.</text> </level> <level label="2"> <text>A certification under paragraph (1) of this subsection may not list more than 50 cigarettes.</text> </level> </level> <level label="b"> <text>The description of each cigarette listed in the certification shall include:</text> <level label="1"> <text>the brand or trade name on the package;</text> </level> <level label="2"> <text>the style, such as light or ultra light;</text> </level> <level label="3"> <text>the length in millimeters;</text> </level> <level label="4"> <text>the circumference in millimeters;</text> </level> <level label="5"> <text>the flavor, such as menthol or chocolate, if applicable;</text> </level> <level label="6"> <text>whether filtered or nonfiltered;</text> </level> <level label="7"> <text>a package description, such as a soft pack or box;</text> </level> <level label="8"> <text>the mark approved in accordance with § 16–604 of this subtitle;</text> </level> <level label="9"> <text>if different from the manufacturer, the name, address, and telephone number of the laboratory that conducted the test; and</text> </level> <level label="10"> <text>the date of the testing.</text> </level> </level> <level label="c"> <text>The certification shall be made available to:</text> <level label="1"> <text>the Attorney General and the State Fire Prevention Commission for purposes consistent with this subtitle; and</text> </level> <level label="2"> <text>the Executive Director for the purpose of ensuring compliance with this section.</text> </level> </level> <level label="d"> <level label="1"> <text>Each cigarette certified under this section shall be recertified every 3 years.</text> </level> <level label="2"> <text>If a manufacturer of a cigarette that has been certified under this section makes a change that is likely to alter the cigarette’s compliance with the performance standard under § 16–602(e) of this subtitle, that cigarette may not be sold in this State until the manufacturer, in accordance with § 16–602 of this subtitle, retests and maintains the proper records of the testing.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="16-604" title_number="16" title_name="Cigarettes" subtitle_number="6" subtitle_name="Fire Safety Performance Standard for Cigarettes"> <text>** CONTINGENCY – IN EFFECT – CHAPTER 497 OF 2007 **</text> <level label="a"> <text>Cigarettes that have been certified in accordance with § 16–603 of this subtitle shall be marked in accordance with the requirements of this section.</text> </level> <level label="b"> <text>The marking shall:</text> <level label="1"> <text>consist of:</text> <level label="i"> <text>any marking in use and approved for sale in New York under the New York fire safety standards for cigarettes; or</text> </level> <level label="ii"> <text>the letters “FSC” to signify Fire Standards Compliant;</text> </level> </level> <level label="2"> <text>be in a font of at least 8 point type; and</text> </level> <level label="3"> <text>be permanently printed, stamped, engraved, or embossed on the package at or near the area of the UPC code, if present.</text> </level> </level> <level label="c"> <text>A manufacturer may propose an alternative marking that:</text> <level label="1"> <text>meets the criteria under subsection (b)(2) and (3) of this section; and</text> </level> <level label="2"> <text>consists of a visible combination of alphanumeric or symbolic characters or text permanently stamped, engraved, embossed, or printed:</text> <level label="i"> <text>in conjunction with the UPC code; or</text> </level> <level label="ii"> <text>on the cigarette pack or cellophane wrap.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>A manufacturer shall request approval of a proposed marking from the Executive Director.</text> </level> <level label="2"> <level label="i"> <text>The Executive Director shall approve a marking specified in subsection (b)(1) of this section.</text> </level> <level label="ii"> <text>A marking is deemed approved if the Executive Director fails to act within 10 business days after receiving a request for approval.</text> </level> </level> <level label="3"> <text>A manufacturer may not use a modified marking unless the modification has been approved in accordance with this section.</text> </level> <level label="4"> <text>A manufacturer shall use only one marking on all brands that the manufacturer markets.</text> </level> <level label="5"> <text>A marking or modified marking approved by the Executive Director shall be applied uniformly on all brands marketed and on all packages, including packs, cartons, and cases marketed by that manufacturer.</text> </level> </level> </section> <section article="gbr" article_name="Business Regulation" number="16-605" title_number="16" title_name="Cigarettes" subtitle_number="6" subtitle_name="Fire Safety Performance Standard for Cigarettes"> <text>** CONTINGENCY – IN EFFECT – CHAPTER 497 OF 2007 **</text> <level label="a"> <text>The manufacturer shall:</text> <level label="1"> <text>provide a copy of each certification to each wholesaler to which the manufacturer sells cigarettes; and</text> </level> <level label="2"> <text>provide sufficient copies of an illustration of the packaging marking approved and used by the manufacturer in accordance with § 16–604 of this subtitle for each retailer, subwholesaler, and vending machine operator that purchases cigarettes from the wholesaler.</text> </level> </level> <level label="b"> <text>The wholesaler shall provide a copy of the illustration to each retailer, subwholesaler, and vending machine operator to which the wholesaler sells cigarettes.</text> </level> <level label="c"> <text>Each retailer, subwholesaler, vending machine operator, and wholesaler shall allow the Executive Director or designee of the Executive Director to inspect the markings on cigarette packaging at any time.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="16-606" title_number="16" title_name="Cigarettes" subtitle_number="6" subtitle_name="Fire Safety Performance Standard for Cigarettes"> <text>** CONTINGENCY – IN EFFECT – CHAPTER 497 OF 2007 **</text> <text>Any cigarettes sold or offered for sale in the State that do not comply with the performance standard required by § 16–602 of this subtitle are deemed to be contraband and subject to §§ 13–836, 13–837, and 13–839 of the Tax – General Article.</text> </section> <section article="gbr" article_name="Business Regulation" number="16-607" title_number="16" title_name="Cigarettes" subtitle_number="6" subtitle_name="Fire Safety Performance Standard for Cigarettes"> <text>** CONTINGENCY – IN EFFECT – CHAPTER 497 OF 2007 **</text> <text>The Executive Director:</text> <level label="1"> <text>may adopt regulations necessary to carry out and administer this subtitle;</text> </level> <level label="2"> <text>in consultation with the State Fire Prevention Commission, may adopt regulations for the conduct of random inspections of retailers, subwholesalers, vending machine operators, and wholesalers to ensure compliance with this subtitle; and</text> </level> <level label="3"> <text>may establish a $250 fee for each certification required under § 16–603 of this subtitle to cover the expenses of administering this subtitle.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="16-608" title_number="16" title_name="Cigarettes" subtitle_number="6" subtitle_name="Fire Safety Performance Standard for Cigarettes"> <text>** CONTINGENCY – IN EFFECT – CHAPTER 497 OF 2007 **</text> <level label="a"> <level label="1"> <text>A manufacturer or other person that knowingly sells or offers for sale cigarettes other than by retail sale in violation of § 16–602 of this subtitle is subject to a civil penalty not to exceed $100 for each package of cigarettes sold or offered for sale.</text> </level> <level label="2"> <text>Under this subsection, a total amount of civil penalties imposed on a manufacturer or other person may not exceed $100,000 during any 30–day period.</text> </level> </level> <level label="b"> <level label="1"> <text>Except as provided in paragraphs (2) and (3) of this subsection, a retailer, subwholesaler, wholesaler, or other person that knowingly sells cigarettes in violation of § 16–602 of this subtitle is subject to a civil penalty not to exceed $100 for each package of cigarettes sold.</text> </level> <level label="2"> <text>Under this subsection, a total amount of civil penalties imposed on a retailer may not exceed $25,000 during any 30–day period.</text> </level> <level label="3"> <text>Under this subsection, a total amount of civil penalties imposed on a subwholesaler, wholesaler, or other person may not exceed $100,000 during any 30–day period.</text> </level> </level> <level label="c"> <text>A manufacturer that knowingly makes a false certification under § 16–603 of this subtitle is subject to a civil penalty of at least $75,000 and not exceeding $250,000 for each false certification.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="16-609" title_number="16" title_name="Cigarettes" subtitle_number="6" subtitle_name="Fire Safety Performance Standard for Cigarettes"> <text>** CONTINGENCY – IN EFFECT – CHAPTER 497 OF 2007 **</text> <level label="a"> <text>To enforce this subtitle:</text> <level label="1"> <text>the Attorney General may bring an action to enjoin any acts in violation of this subtitle and to recover civil penalties authorized under § 16–608 of this subtitle; or</text> </level> <level label="2"> <text>the Attorney General or the Executive Director may examine the books, papers, invoices, and records of a person in possession, control, or occupancy of a building, structure, or land where cigarettes are placed, stored, sold, or offered for sale.</text> </level> </level> <level label="b"> <text>Money collected from civil penalties recovered under this section shall be distributed to the Senator William H. Amoss Fire, Rescue, and Ambulance Fund.</text> </level> </section> <section article="gbr" article_name="Business Regulation" number="16-610" title_number="16" title_name="Cigarettes" subtitle_number="6" subtitle_name="Fire Safety Performance Standard for Cigarettes"> <text>** CONTINGENCY – IN EFFECT – CHAPTER 497 OF 2007 **</text> <level label="a"> <text>A police officer or other authorized personnel as determined by regulations may seize cigarettes in the possession of a retailer, subwholesaler, vending machine operator, or wholesaler that have not been marked in accordance with § 16–604 of this subtitle.</text> </level> <level label="b"> <level label="1"> <text>Subject to paragraph (2) of this subsection, cigarettes seized under this section shall be destroyed.</text> </level> <level label="2"> <text>The true holder of the trademark rights in the cigarette brand shall be provided the opportunity to inspect any cigarettes seized under this section before the cigarettes are destroyed.</text> </level> </level> </section>