EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb1000*
HOUSE BILL 1000
A1, C2 3lr0512
By: Delegate Wilson
Introduced and read first time: February 10, 2023
Assigned to: Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Alcohol and Tobacco Commission – Updates 2
FOR the purpose of requiring a person to hold a common carrier permit to ship premium 3
cigars or pipe tobacco in the State; requiring a remote tobacco seller shipping 4
premium cigars or pipe tobacco into the State to at least annually verify certain 5
license information as a condition of holding the common carrier permit; authorizing 6
the Executive Director of the Alcohol and Tobacco Commission to take certain action 7
regarding a certain license if the use of the licensed premises does not conform to 8
certain provisions of law relating to land use; authorizing the Executive Director to 9
conduct certain inspections and searches in a certain manner; including the Field 10
Enforcement Division of the Commission in the list of law enforcement agencies that 11
must receive a certain notification; authorizing the Executive Director to sell seized 12
contraband at auction and providing for the disposition of the proceeds of the 13
auctions; and generally relating to the Alcohol and Tobacco Commission. 14
BY repealing and reenacting, with amendments, 15
Article – Alcoholic Beverages 16
Section 2–151 and 2–152 17
Annotated Code of Maryland 18
(2016 Volume and 2022 Supplement) 19
BY repealing and reenacting, with amendments, 20
Article – Business Regulation 21
Section 16–210(a), 16–308.3, 16.5–217.1, and 16.7–213.1 22
Annotated Code of Maryland 23
(2015 Replacement Volume and 2022 Supplement) 24
BY repealing and reenacting, without amendments, 25
Article – Health – General 26
Section 18–213.2(a)(1) and (7) and (b) and 24–307(b) 27
Annotated Code of Maryland 28 2 HOUSE BILL 1000
(2019 Replacement Volume and 2022 Supplement) 1
BY repealing and reenacting, with amendments, 2
Article – Health – General 3
Section 18–213.2(a)(8) and 24–307(c) and (f) 4
Annotated Code of Maryland 5
(2019 Replacement Volume and 2022 Supplement) 6
BY repealing and reenacting, with amendments, 7
Article – Tax – General 8
Section 2–303 and 13–841 9
Annotated Code of Maryland 10
(2022 Replacement Volume) 11
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12
That the Laws of Maryland read as follows: 13
Article – Alcoholic Beverages 14
2–151. 15
(a) There is a common carrier permit. 16
(b) A holder of a common carrier permit may deliver wine, PREMIUM CIGARS , 17
OR PIPE TOBACCO from a location inside or outside the State to a consumer in the State 18
for the consumer’s personal use under this part. 19
(c) A person shall be issued a common carrier permit before the person may 20
engage in transporting wine from a direct wine shipper, OR PREMIUM CIGARS OR PIPE 21
TOBACCO FROM A HOLDE R OF A REMOTE TOBACC O SELLER LICENSE , ISSUED UNDER 22
§ 16.9–201 OF THE BUSINESS REGULATION ARTICLE, to a consumer. 23
(d) The term of a common carrier permit is 1 year and begins on July 1. 24
(e) To complete delivery of a shipment, the common carrier shall require from a 25
consumer at the address listed on the shipping label: 26
(1) the signature of the consumer or another individual at the address who 27
is at least 21 years old; and 28
(2) government–issued photographic identification showing that the 29
signing individual is at least 21 years old. 30
(f) A common carrier shall refuse delivery when the intended receiving individual 31
appears to be under the age of 21 years or refuses to present valid identification. 32
HOUSE BILL 1000 3
(g) At the time of initial application for a common carrier permit and on request 1
of the [Comptroller] EXECUTIVE DIRECTOR, a common carrier shall submit to the 2
[Comptroller] EXECUTIVE DIRECTOR information concerning the training of its drivers 3
in verifying the age of recipients of direct wine shipments under this part. 4
(h) At least once each year, in a manner acceptable to the [Comptroller] 5
EXECUTIVE DIRECTOR, a holder of a common carrier permit shall verify, AS 6
APPROPRIATE , that: 7
(1) the shipper of wine into the State under this part holds a valid direct 8
wine shipper’s permit; OR 9
(2) THE REMOTE TOBACCO S ELLER SHIPPING PREMIUM CIG ARS OR 10
PIPE TOBACCO INTO TH E STATE HOLDS A VALID R EMOTE TOBACCO SELLER LICENSE 11
UNDER § 16.9–201 OF THE BUSINESS REGULATION ARTICLE. 12
(i) A holder of a common carrier permit that delivers wine solely under this part 13
may not be required to obtain a transportation permit issued under § 2–118 or § 2–119 of 14
this subtitle in addition to the common carrier permit. 15
(j) The permit fee is $100. 16
2–152. 17
(a) A common carrier shall report quarterly to the [Comptroller] EXECUTIVE 18
DIRECTOR: 19
(1) the date of each delivery of wine OR PREMIUM CIGARS OR PIPE 20
TOBACCO in the State; and 21
(2) the name and address of the direct wine shipper OR HOLDER OF A 22
REMOTE TOBACCO SELLE R LICENSE and the receiving consumer of each delivery. 23
(b) A common carrier shall maintain for 3 years complete and accurate records of 24
all information needed to verify compliance with this part. 25
Article – Business Regulation 26
16–210. 27
(a) Subject to the hearing provisions of § 16–211 of this subtitle, the Executive 28
Director may deny a license to an applicant, reprimand a licensee, or suspend or revoke a 29
license if the applicant or licensee: 30
4 HOUSE BILL 1000
(1) fraudulently or deceptively obtains or attempts to obtain a license for 1
the applicant or licensee or for another person; 2
(2) fraudulently or deceptively uses a license; 3
(3) fails to comply with the Maryland Cigarette Sales Below Cost Act or 4
regulations adopted under that Act; 5
(4) fails to comply with the provisions of Title 11, Subtitle 5A of the 6
Commercial Law Article; 7
(5) buys cigarettes for resale: 8
(i) in violation of a license; or 9
(ii) from a person who is not a licensed cigarette manufacturer, 10
licensed subwholesaler, licensed vending machine operator, or licensed wholesaler; 11
(6) is convicted, under the laws of the United States or of any other state, 12
of: 13
(i) a felony; or 14
(ii) a misdemeanor that is a crime of moral turpitude and is directly 15
related to the fitness and qualification of the applicant or licensee; [or] 16
(7) has not paid a tax due before October 1 of the year after the tax became 17
due; OR 18
(8) USES THE LICENS ED PREMISES IN A MANNER THAT DOES NOT 19
CONFORM TO ALL ZONIN G LAWS, REGULATIONS , OR ORDINANCES ADOPTED IN 20
ACCORDANCE WITH THE LAND USE ARTICLE. 21
16–308.3. 22
(a) The Maryland Department of Health OR THE EXECUTIVE DIRECTOR may 23
conduct AN unannounced [inspections] INSPECTION OR SEARCH of a licensed [retailer] 24
RETAILER’S PREMISES, WITHOUT A WARRANT , to ensure the licensee’s compliance with 25
the provisions of this title and § 10–107 of the Criminal Law Article. 26
(b) The Maryland Department of Health OR THE EXECUTIVE DIRECTOR may 27
use an individual under the age of 21 years to assist in conducting an inspection under this 28
section. 29
16.5–217.1. 30
HOUSE BILL 1000 5
(a) The Maryland Department of Health OR THE EXECUTIVE DIRECTOR may 1
conduct AN unannounced [inspections] INSPECTION OR SEARCH of a licensed [retailer] 2
RETAILER’S PREMISES, WITHOUT A WARRANT , to ensure the licensee’s compliance with 3
the provisions of this title and § 10–107 of the Criminal Law Article. 4
(b) The Maryland Department of Health OR THE EXECUTIVE DIRECTOR may 5
use an individual under the age of 21 years to assist in conducting an inspection under this 6
section. 7
16.7–213.1. 8
(a) The Maryland Department of Health OR THE EXECUTIVE DIRECTOR may 9
conduct AN unannounced [inspections] INSPECTION OR SEARCH of A licensed [retailers] 10
RETAILER’S PREMISES, WITHOUT A WARRANT , to ensure the licensee’s compliance with 11
the provisions of this title and § 10–107 of the Criminal Law Article. 12
(b) The Maryland Department of Health OR THE EXECUTIVE DIRECTOR may 13
use an individual under the age of 21 years to assist in conducting an inspection under this 14
section. 15
Article – Health – General 16
18–213.2. 17
(a) (1) In this section the following words have the meanings indicated. 18
(7) “First responder” means a: 19
(i) Firefighter; 20
(ii) Emergency medical technician; 21
(iii) Rescue squad member; 22
(iv) Law enforcement officer; 23
(v) Correctional officer; or 24
(vi) Sworn member of the State Fire Marshal’s office. 25
(8) “Law enforcement officer” means any individual who, in an official 26
capacity, is authorized by law to make arrests and who is a member of one of the following 27
law enforcement agencies: 28
(i) The Department of State Police; 29
6 HOUSE BILL 1000
(ii) The Baltimore City Police Department; 1
(iii) The police department, bureau, or force of any county; 2
(iv) The police department, bureau, or force of any incorporated city 3
or town; 4
(v) The office of the sheriff of any county; 5
(vi) The police department, bureau, or force of any bicounty agency 6
or constituent institution of the University System of Maryland, Morgan State University, 7
St. Mary’s College, or of any institution under the jurisdiction of the Maryland Higher 8
Education Commission; 9
(vii) The Maryland Aviation Administration police force of the 10
Department of Transportation, the Maryland Transit Administration police force of the 11
Department of Transportation, the Maryland Transportation Authority police force, and 12
the Maryland Port Administration police force of the Department of Transportation; 13
(viii) The law enforcement officers of the Department of Natural 14
Resources; 15
(ix) The Field Enforcement Bureau of the Comptroller’s Office; 16
(x) THE FIELD ENFORCEMENT DIVISION OF THE ALCOHOL 17
AND TOBACCO COMMISSION; 18
(XI) The Intelligence and Investigative Division of the Department of 19
Public Safety and Correctional Services; or 20
[(xi)] (XII) The Maryland Capitol Police of the Department of General 21
Services. 22
(b) If, while transporting a person to a medical care facility or while acting in the 23
performance of duty, a first responder comes into contact exposure while treating or 24
transporting a person who dies at the scene or while being transported and who is 25
subsequently determined, as a result of information obtained in conjunction with a 26
postmortem examination by the Chief Medical Examiner or a designee of the Chief Medical 27
Examiner to have had a contagious disease or virus at the time of death, the physician 28
performing the postmortem examination shall notify the first responder and the first 29
responder’s employer or the employer’s designee of the first responder’s possible contact 30
exposure to the contagious disease or virus. 31
24–307. 32
HOUSE BILL 1000 7
(b) A person who distributes tobacco products for commercial purposes, including 1
a person licensed under Title 16 of the Business Regulation Article, may not distribute to 2
an individual under the age of 21 years: 3
(1) A tobacco product; 4
(2) Tobacco paraphernalia; or 5
(3) A coupon redeemable for a tobacco product. 6
(c) (1) A person who violates subsection (b) of this section is subject to a civil 7
penalty not exceeding: 8
(i) $300 for a first violation; 9
(ii) $1,000 for a second violation occurring within 24 months after 10
the first violation; and 11
(iii) $3,000 for each subsequent violation occurring within 24 months 12
after the preceding violation. 13
(2) The local health departments shall report violations of subsection (b) of 14
this section to the [Comptroller’s Office] EXECUTIVE DIRECTOR OF THE ALCOHOL AND 15
TOBACCO COMMISSION. 16
(3) Issuance of a civil citation for a violation of this section precludes 17
prosecution under § 10–107 of the Criminal Law Article arising out of the same violation. 18
(4) If a violation is committed by a person acting on behalf of a retailer, the 19
civil penalty imposed under paragraph (1) of this subsection shall be paid by the retailer. 20
(f) (1) The Maryland Department of Health, in collaboration and consultation 21
with the [Office of the Comptroller] EXECUTIVE DIRECTOR OF THE ALCOHOL AND 22
TOBACCO COMMISSION, local health departments, and local law enforcement agencies, 23
shall develop ongoing strategies for enforcement of §§ 10–107 and 10–108 of the Criminal 24
Law Article. 25
(2) On or before October 1 each year, the Department shall report to the 26
General Assembly, in accordance with § 2–1257 of the State Government Article, on: 27
(i) The development of enforcement strategies required under 28
paragraph (1) of this subsection; and 29
(ii) Training and assistance to tobacco retailers to improve 30
compliance with § 10–107 of the Criminal Law Article. 31
Article – Tax – General 32 8 HOUSE BILL 1000
2–303. 1
The Comptroller shall distribute the proceeds from sales of contraband alcoholic 2
beverages and conveyances under § 13–841(a) OR (D) of this article to the General Fund. 3
13–841. 4
(a) (1) Contraband alcoholic beverages that are seized under this title and 5
forfeited may be disposed of or destroyed in the manner allowed under §§ 6–105, 6–106, 6
and 6–328 of the Alcoholic Beverages Article. 7
(2) The Comptroller OR THE EXECUTIVE DIRECTOR OF THE ALCOHOL 8
AND TOBACCO COMMISSION, AS APPROPRIATE , shall sell at public auction a 9
conveyance that is seized under this title in connection with contraband alcoholic beverages 10
and forfeited. 11
(b) (1) The Comptroller OR THE EXECUTIVE DIRECTOR OF THE ALCOHOL 12
AND TOBACCO COMMISSION, AS APPROPRIATE, shall sell contraband tobacco products 13
seized under this title and forfeited to a State institution, a nonprofit charitable institution, 14
a licensed cigarette wholesaler, or a licensed cigarette manufacturer in the manner the 15
Comptroller OR EXECUTIVE DIRECTOR determines. 16
(2) The Comptroller OR THE EXECUTIVE DIRECTOR OF THE ALCOHOL 17
AND TOBACCO COMMISSION, AS APPROPRIATE , shall sell at public auction a 18
conveyance that is seized under this title in connection with contraband tobacco products 19
and forfeited. 20
(c) (1) If either the Comptroller or, on appeal, a court determines that seized 21
conveyance or motor fuel is not subject to forfeiture: 22
(i) the Comptroller is not required to return the motor fuel seized to 23
the owner or other interested person who filed the claim for return of the property, but may, 24
at the option of the Comptroller, pay to the person an amount equal to the value of the 25
motor fuel as determined by the average wholesale value on the date of seizure for the 26
Baltimore Terminal as reported by a nationally recognized oil price reporting service on the 27
date of seizure; and 28
(ii) the Comptroller shall return the conveyance to the registered 29
owner and shall have no further liability to the registered owner. 30
(2) If a seized conveyance or motor fuel is forfeited, the Comptroller shall: 31
(i) 1. use the contraband motor fuel for any public purpose; or 32
2. sell the contraband motor fuel to any person; and 33 HOUSE BILL 1000 9
(ii) sell the seized conveyance to any person. 1
(d) (1) In the manner required under Title 2 of this article for distributions of 2
revenue, the Comptroller shall distribute the net proceeds from the sale of any conveyance 3
or other property under this section after paying: 4
[(1)] (I) the costs incurred in conjunction with the seizure and disposal of 5
the property; 6
[(2)] (II) the cost of the sale; and 7
[(3)] (III) any bona fide lien against the conveyance. 8
(2) IF THE EXECUTIVE DIRECTOR OF THE ALCOHOL AND TOBACCO 9
COMMISSION SELLS AT PUBLIC AUCT ION A CONVEYANCE OR OTHER PROPERTY 10
SEIZED UNDER THIS SE CTION, THE EXECUTIVE DIRECTOR SHALL TRANSF ER THE 11
NET PROCEEDS OF THE SALE TO THE COMPTROLLER FOR DISTR IBUTION UNDER 12
TITLE 2 OF THIS ARTICLE. 13
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 14
1, 2023. 15