Whenever a person sells cigarettes at retail in a county, the person must have a county license for: each place of business; and each vending machine, if the applicant sells cigarettes through a vending machine.

For each county license, an applicant shall: submit an application to the clerk; and pay to the clerk a license fee of $300. From each license fee collected under subsection (a) of this section, the clerk shall distribute: $25 to the Executive Director; 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 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. 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. 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.

This section applies only in Baltimore City. 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. The Mayor and City Council of Baltimore City may: 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 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. 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: a requirement that an applicant is: in compliance with all relevant State and local laws; and otherwise entitled to be licensed; and a mechanism for including the basis for any denial of a licensure authorization request that is referred to the Executive Director. If an applicant is denied a licensure authorization requested under this section, the Executive Director may review the basis for the denial.

The clerk shall issue a county license to each applicant who meets the requirements of this subtitle.

A county license expires on the first anniversary of its effective date.

A county licensee shall display the county license in a conspicuous place: in the place of business for which it is issued; or on the premises where the machine is located, if the licensee sells cigarettes through a vending machine.

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: 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; violates § 16–308.1 of this subtitle; or fails to comply with the Maryland Cigarette Sales Below Cost Act and regulations adopted under it.

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. The Executive Director shall give notice and hold the hearing in accordance with Title 10, Subtitle 2 of the State Government Article. The Executive Director may administer oaths in a proceeding under this section. The person against whom the action is contemplated may be represented at the hearing by counsel. 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.

A person may not sell cigarettes at retail in a county unless the person has an appropriate county license.

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. Authorized employees of the Field Enforcement Division of the Executive Director’s Office may enforce the provisions of subsection (a) of this section.

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. This section applies only in Baltimore City. A person who holds a county license may not sell an unpackaged cigarette. 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. An enforcement officer shall report a violation of this section to a State’s Attorney. 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. 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.

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. 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. 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. 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.

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. 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: except as provided in items (2) and (3) of this subsection, $300; for a second violation occurring within 2 years after the first violation, $1,000; and for a third or subsequent violation occurring within 2 years after the preceding violation, $3,000.