Title 16. Cigarettes — Subtitle 2. Cigarette Business Licenses

a license issued by the Executive Director under § 16–205(a) of this subtitle to:

a license issued by the clerk under § 16–205(b) of this subtitle to act as a retailer.

sells cigarettes to consumers through vending machines on fewer than 40 premises;

otherwise sells cigarettes to consumers; or

holds cigarettes for sale to consumers.

“Subwholesaler” means a person who:

“Subwholesaler” does not include a person who sells unstamped cigarettes or holds unstamped cigarettes for sale.

holds cigarettes for sale to consumers through vending machines on 40 or more premises; or

sells cigarettes to consumers through vending machines on 40 or more premises.

holds cigarettes for sale to another person for resale; or

sells cigarettes to another person for resale.

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.

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.

an established place of business, including warehouse facilities, for the sale of cigarettes; and

necessary equipment and vehicles for the storage and distribution of cigarettes.

an established place of business, including warehouse facilities, for the sale of cigarettes; and

necessary equipment and vehicles for the storage and distribution of cigarettes.

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

pay to the Executive Director a fee of $25.

An applicant for a license to act as a retailer shall:

The application shall:

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

pay to the Executive Director a fee of $25.

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

pay to the Executive Director a fee of:

obtain the county license required under § 16–301 of this title;

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

pay to the Executive Director a fee of $500.

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

pay to the Executive Director a fee of $750.

In addition to the license fee otherwise required under this section:

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.

sell unstamped cigarettes to:

except as otherwise prohibited or restricted under local law, this article, or the Criminal Law Article, distribute sample cigarettes to consumers located in Maryland;

store unstamped cigarettes in a licensed cigarette storage warehouse for subsequent shipment to licensed wholesalers, federal reservations, or persons out of state; and

upon approval of the Executive Director, act as an agent of a Maryland licensed wholesaler for stamping and distribution of cigarettes.

act as a retailer; and

buy stamped cigarettes from a subwholesaler or wholesaler.

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.

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.

act as a subwholesaler;

buy stamped cigarettes from a wholesaler or another subwholesaler; and

store stamped cigarettes and cigarettes with another state’s tax stamp at a licensed cigarette storage facility.

act as a vending machine operator; and

buy stamped cigarettes from a subwholesaler or wholesaler.

act as a wholesaler;

buy unstamped cigarettes directly from a cigarette manufacturer;

hold unstamped cigarettes;

buy tobacco tax stamps as authorized by § 12–303 of the Tax – General Article;

transport unstamped cigarettes in the State;

sell unstamped cigarettes to another licensed wholesaler if the Executive Director specifically authorizes;

upon approval of the Executive Director, designate a licensed manufacturer to act as its agent for the stamping and distribution of cigarettes; and

store stamped cigarettes and cigarettes with another state’s tax stamp at a licensed cigarette storage facility.

the date on which the current license expires;

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

the amount of the renewal fee.

otherwise is entitled to be licensed;

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

pays to the issuing official:

A licensed retailer or licensed vending machine operator may not assign the license.

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.

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.

A licensed retailer or licensed vending machine operator is not allowed a refund for the unexpired term of the license.

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

in the way that the Executive Director requires by regulation, shall:

A licensee shall post a sign in a location that is clearly visible to the consumer that states:

The sign required under this subsection shall be written in letters at least one–half inch high.

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.

Subject to paragraph (3) of this subsection, a licensed retailer may verify an individual’s age only:

A licensed retailer is not required to verify the age of an individual at least 30 years old.

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

fraudulently or deceptively uses a license;

fails to comply with the Maryland Cigarette Sales Below Cost Act or regulations adopted under that Act;

fails to comply with the provisions of Title 11, Subtitle 5A of the Commercial Law Article;

buys cigarettes for resale:

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

has not paid a tax due before October 1 of the year after the tax became due.

Title 12 of the Tax – General Article, or regulations adopted under that title; or

this title or regulations adopted under this title.

1 year has passed since the license was revoked; and

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

the applicant;

the business to be operated; and

the facts set forth in the application.

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

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

willfully and persistently engages in an act or omission that is a ground for discipline under § 16–210(a) of this subtitle; or

violates this title or Title 12 of the Tax – General Article, or regulations adopted under these titles.

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

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

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.

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

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

The Executive Director may accept the offer of compromise if:

The Executive Director may promulgate rules and regulations necessary to carry out the purposes of this subsection.

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.

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

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

reject any unstamped or improperly stamped cigarettes by:

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.

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.

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.

The General Assembly intends that these license fees be used to:

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.

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

shall get an invoice for each purchase of cigarettes;

shall keep a record of all cigarettes received, to which the subwholesaler and wholesaler shall post each day:

for cigarette sales to retailers:

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.

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:

Cigarettes in a vending machine or cigarettes transferred to retail stock by written memorandum need not be included in the inventory record.

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

allow the Executive Director to examine the records.

the name and address of the seller or consignor;

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

the quantity and brands of the cigarettes that are being transported.

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

the machine is not labeled as required by § 16–209(b)(2) of this subtitle.

holds any license required by this subtitle.

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

shall ensure that the containers or individual packages of cigarettes do not contain any information or markings that are false, misleading, or contrary to:

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

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.

A licensee who sells or ships cigarettes in violation of this section or causes cigarettes to be shipped in violation of this section is:

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.