EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb1000*
HOUSE BILL 1000
A1, C2 3lr0512
By: Delegate Wilson
Introduced and read first time: February 10, 2023
Assigned to: Economic Matters
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 11, 2023
CHAPTER ______
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 Comptroller and Executive 12
Director to dispose of or destroy seized contraband; authorizing, rather than 13
requiring, the Comptroller and the Executive Director to sell seized contraband at 14
auction and providing for the disposition of the proceeds of the auctions; requiring 15
the Governor’s Office of Small, Minority, and Women Business Affairs to contract 16
with a third party to conduct a certain study concerning the alcoholic beverages 17
industry in the State; and generally relating to the Alcohol and Tobacco Commission. 18
BY repealing and reenacting, with amendments, 19
Article – Alcoholic Beverages 20
Section 2–151 and 2–152 21
Annotated Code of Maryland 22
(2016 Volume and 2022 Supplement) 23
2 HOUSE BILL 1000
BY repealing and reenacting, with amendments, 1
Article – Business Regulation 2
Section 16–210(a), 16–308.3, 16.5–208(a)(5) and (6), 16.5–217.1, 16.7–207(a)(5) and 3
(6), and 16.7–213.1 4
Annotated Code of Maryland 5
(2015 Replacement Volume and 2022 Supplement) 6
BY adding to 7
Article – Business Regulation 8
Section 16.5–208(a)(7) and 16.7–207(a)(7) 9
Annotated Code of Maryland 10
(2015 Replacement Volume and 2022 Supplement) 11
BY repealing and reenacting, without amendments, 12
Article – Health – General 13
Section 18–213.2(a)(1) and (7) and (b) and 24–307(b) 14
Annotated Code of Maryland 15
(2019 Replacement Volume and 2022 Supplement) 16
BY repealing and reenacting, with amendments, 17
Article – Health – General 18
Section 18–213.2(a)(8) and 24–307(c) and (f) 19
Annotated Code of Maryland 20
(2019 Replacement Volume and 2022 Supplement) 21
BY repealing and reenacting, with amendments, 22
Article – Tax – General 23
Section 2–303 and 13–841 24
Annotated Code of Maryland 25
(2022 Replacement Volume) 26
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 27
That the Laws of Maryland read as follows: 28
Article – Alcoholic Beverages 29
2–151. 30
(a) There is a common carrier permit. 31
(b) A holder of a common carrier permit may deliver wine, PREMIUM CIGARS , 32
OR PIPE TOBACCO from a location inside or outside the State to a consumer in the State 33
for the consumer’s personal use under this part. 34
(c) A person shall be issued a common carrier permit before the person may 35
engage in transporting wine from a direct wine shipper, OR PREMIUM CIGARS OR PI PE 36 HOUSE BILL 1000 3
TOBACCO FROM A HOLDE R OF A REMOTE TOBACC O SELLER LICENSE , ISSUED UNDER 1
§ 16.9–201 OF THE BUSINESS REGULATION ARTICLE, to a consumer. 2
(d) The term of a common carrier permit is 1 year and begins on July 1. 3
(e) To complete delivery of a shipment, the common carrier shall require from a 4
consumer at the address listed on the shipping label: 5
(1) the signature of the consumer or another individual at the address who 6
is at least 21 years old; and 7
(2) government–issued photographic identification showing that the 8
signing individual is at least 21 years old. 9
(f) A common carrier shall refuse delivery when the intended receiving individual 10
appears to be under the age of 21 years or refuses to present valid identification. 11
(g) At the time of initial application for a common carrier permit and on request 12
of the [Comptroller] EXECUTIVE DIRECTOR, a common carrier shall submit to the 13
[Comptroller] EXECUTIVE DIRECTOR information concerning the training of its drivers 14
in verifying the age of recipients of direct wine shipments under this part. 15
(h) At least once each year, in a manner acceptable to the [Comptroller] 16
EXECUTIVE DIRECTOR, a holder of a common carrier permit shall verify , AS 17
APPROPRIATE , that: 18
(1) the shipper of wine into the State under this part holds a valid direct 19
wine shipper’s permit; OR 20
(2) THE REMOTE TOBACCO S ELLER SHIPPING PREMI UM CIGARS OR 21
PIPE TOBACCO INTO TH E STATE HOLDS A VALID R EMOTE TOBACCO SELLER LICENSE 22
UNDER § 16.9–201 OF THE BUSINESS REGULATION ARTICLE. 23
(i) A holder of a common carrier permit that delivers wine solely under this part 24
may not be required to obtain a transportation permit issued under § 2–118 or § 2–119 of 25
this subtitle in addition to the common carrier permit. 26
(j) The permit fee is $100. 27
(K) A HOLDER OF A COMMON C ARRIER PERMIT MAY NO T REQUIRE A 28
SIGNATURE FOR A SHIP MENT DELIVERED TO A LICENSED TOBACCONIST . 29
2–152. 30
(a) A EXCEPT AS PROVIDED IN SUBSECTION (C) OF THIS SECTION, A common 31
carrier shall report quarterly to the [Comptroller] EXECUTIVE DIRECTOR: 32 4 HOUSE BILL 1000
(1) the date of each delivery of wine OR PREMIUM CIGARS OR PIPE 1
TOBACCO in the State; and 2
(2) the name and address of the direct wine shipper OR HOLDER OF A 3
REMOTE TOBACCO SELLE R LICENSE and the receiving consumer of each delivery. 4
(b) A common carrier shall maintain for 3 years complete and accurate records of 5
all information needed to verify compliance with this part. 6
(C) A COMMON CARRIER FOR P REMIUM CIGARS AND PI PE TOBACCO MAY 7
ELECT NOT TO REPORT AS REQUIRED UND ER SUBSECTION (A) OF THIS SECTION IF 8
THE COMMON CARRIER C OMPLIES WITH THE DEL IVERY REQUIREMENTS U NDER § 9
2–151(E) OF THIS SUBTITLE. 10
Article – Business Regulation 11
16–210. 12
(a) Subject to the hearing provisions of § 16–211 of this subtitle, the Executive 13
Director may deny a license to an applicant, reprimand a licensee, or suspend or revoke a 14
license if the applicant or licensee: 15
(1) fraudulently or deceptively obtains or attempts to obtain a license for 16
the applicant or licensee or for another person; 17
(2) fraudulently or deceptively uses a license; 18
(3) fails to comply with the Maryland Cigarette Sales Below Cost Act or 19
regulations adopted under that Act; 20
(4) fails to comply with the provisions of Title 11, Subtitle 5A of the 21
Commercial Law Article; 22
(5) buys cigarettes for resale: 23
(i) in violation of a license; or 24
(ii) from a person who is not a licensed cigarette manufacturer, 25
licensed subwholesaler, licensed vending machine operator, or licensed wholesaler; 26
(6) is convicted, under the laws of the United States or of any other state, 27
of: 28
(i) a felony; or 29
HOUSE BILL 1000 5
(ii) a misdemeanor that is a crime of moral turpitude and is directly 1
related to the fitness and qualification of the applicant or licensee; [or] 2
(7) has not paid a tax due before October 1 of the year after the tax became 3
due; OR 4
(8) USES THE LICENSED PR EMISES IN A MANNER T HAT DOES NOT 5
CONFORM TO ALL ZONIN G LAWS, REGULATIONS , OR ORDINANCES ADOPTE D IN 6
ACCORDANCE WITH THE LAND USE ARTICLE, ON A FINDING BY THE APPROPRIAT E 7
LOCAL ADMINISTRATIVE OFFICER OR UNIT RESP ONSIBLE FOR ZONING 8
ENFORCEMENT . 9
16–308.3. 10
(a) The Maryland Department of Health OR THE EXECUTIVE DIRECTOR may 11
conduct AN unannounced [inspections] INSPECTION OR SEARCH of a licensed [retailer] 12
RETAILER’S PREMISES, WITHOUT A WARRANT , to ensure the licensee’s compliance with 13
the provisions of this title and § 10–107 of the Criminal Law Article. 14
(b) The Maryland Department of Health OR THE EXECUTIVE DIRECTOR may 15
use an individual under the age of 21 years to assist in conducting an inspection under this 16
section. 17
16.5–208. 18
(a) Subject to the hearing provisions of § 16.5–209 of this subtitle, the Executive 19
Director may deny a license to an applicant, reprimand a licensee, or suspend or revoke a 20
license if the applicant or licensee: 21
(5) violates Title 12 of the Tax – General Article or regulations adopted 22
under that title; [or] 23
(6) violates this title or Title 16 of this article or regulations adopted under 24
these titles; OR 25
(7) USES THE L ICENSED PREMISES IN A MANNER THAT DOES N OT 26
CONFORM TO ALL ZONIN G LAWS, REGULATIONS , OR ORDINANCES ADOPTE D IN 27
ACCORDANCE WITH THE LAND USE ARTICLE, ON A FINDING BY THE APPROPRIATE 28
LOCAL ADMINISTRATIVE OFFICER OR UNIT RESP ONSIBLE FOR ZONING 29
ENFORCEMENT . 30
16.5–217.1. 31
(a) The Maryland Department of Health OR THE EXECUTIVE DIRECTOR may 32
conduct AN unannounced [inspections] INSPECTION OR SEARCH of a licensed [retailer] 33 6 HOUSE BILL 1000
RETAILER’S PREMISES, WITHOUT A WARRANT , to ensure the licensee’s compliance with 1
the provisions of this title and § 10–107 of the Criminal Law Article. 2
(b) The Maryland Department of Health OR THE EXECUTIVE DIRECTOR may 3
use an individual under the age of 21 years to assist in conducting an inspection under this 4
section. 5
(C) DURING AN INSPECTION OR SEARCH UNDER THIS SECTION , A PREMIUM 6
CIGAR OR PIPE TOBACC O LICENSED RETAILER IS NOT SUBJECT TO SE IZURE 7
WITHOUT A WARRANT . 8
16.7–207. 9
(a) Subject to the hearing provisions of § 16.7–208 of this subtitle, the Executive 10
Director may deny a license to an applicant, reprimand a licensee, or suspend or revoke a 11
license if the applicant or licensee: 12
(5) violates federal, State, or local law regarding the sale of electronic 13
smoking devices; [or] 14
(6) violates this title, Title 16, or Title 16.5 of this article or regulations 15
adopted under these titles; OR 16
(7) USES THE LICENSED PR EMISES IN A MANNER T HAT DOES NOT 17
CONFORM TO ALL ZONIN G LAWS, REGULATIONS , OR ORDINANCES ADOPTE D IN 18
ACCORDANCE WITH THE LAND USE ARTICLE, ON A FINDING BY THE APPROPRIA TE 19
LOCAL ADMINISTRATIVE OFFICER OR UNIT RESP ONSIBLE FOR ZONING 20
ENFORCEMENT . 21
16.7–213.1. 22
(a) The Maryland Department of Health OR THE EXECUTIVE DIRECTOR may 23
conduct AN unannounced [inspections] INSPECTION OR SEARCH of A licensed [retailers] 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
Article – Health – General 30
18–213.2. 31
(a) (1) In this section the following words have the meanings indicated. 32
HOUSE BILL 1000 7
(7) “First responder” means a: 1
(i) Firefighter; 2
(ii) Emergency medical technician; 3
(iii) Rescue squad member; 4
(iv) Law enforcement officer; 5
(v) Correctional officer; or 6
(vi) Sworn member of the State Fire Marshal’s office. 7
(8) “Law enforcement officer” means any individual who, in an official 8
capacity, is authorized by law to make arrests and who is a member of one of the following 9
law enforcement agencies: 10
(i) The Department of State Police; 11
(ii) The Baltimore City Police Department; 12
(iii) The police department, bureau, or force of any county; 13
(iv) The police department, bureau, or force of any incorporated city 14
or town; 15
(v) The office of the sheriff of any county; 16
(vi) The police department, bureau, or force of any bicounty agency 17
or constituent institution of the University System of Maryland, Morgan State University, 18
St. Mary’s College, or of any institution under the jurisdiction of the Maryland Higher 19
Education Commission; 20
(vii) The Maryland Aviation Administration police force of the 21
Department of Transportation, the Maryland Transit Administration police force of the 22
Department of Transportation, the Maryland Transportation Authority police force, and 23
the Maryland Port Administration police force of the Department of Transportation; 24
(viii) The law enforcement officers of the Department of Natural 25
Resources; 26
(ix) The Field Enforcement Bureau of the Comptroller’s Office; 27
(x) THE FIELD ENFORCEMENT DIVISION OF THE ALCOHOL 28
AND TOBACCO COMMISSION; 29
8 HOUSE BILL 1000
(XI) The Intelligence and Investigative Division of the Department of 1
Public Safety and Correctional Services; or 2
[(xi)] (XII) The Maryland Capitol Police of the Department of General 3
Services. 4
(b) If, while transporting a person to a medical care facility or while acting in the 5
performance of duty, a first responder comes into contact exposure while treating or 6
transporting a person who dies at the scene or while being transported and who is 7
subsequently determined, as a result of information obtained in conjunction with a 8
postmortem examination by the Chief Medical Examiner or a designee of the Chief Medical 9
Examiner to have had a contagious disease or virus at the time of death, the physician 10
performing the postmortem examination shall notify the first responder and the first 11
responder’s employer or the employer’s designee of the first responder’s possible contact 12
exposure to the contagious disease or virus. 13
24–307. 14
(b) A person who distributes tobacco products for commercial purposes, including 15
a person licensed under Title 16 of the Business Regulation Article, may not distribute to 16
an individual under the age of 21 years: 17
(1) A tobacco product; 18
(2) Tobacco paraphernalia; or 19
(3) A coupon redeemable for a tobacco product. 20
(c) (1) A person who violates subsection (b) of this section is subject to a civil 21
penalty not exceeding: 22
(i) $300 for a first violation; 23
(ii) $1,000 for a second violation occurring within 24 months after 24
the first violation; and 25
(iii) $3,000 for each subsequent violation occurring within 24 months 26
after the preceding violation. 27
(2) The local health departments shall report violations of subsection (b) of 28
this section to the [Comptroller’s Office] EXECUTIVE DIRECTOR OF THE ALCOHOL AND 29
TOBACCO COMMISSION. 30
(3) Issuance of a civil citation for a violation of this section precludes 31
prosecution under § 10–107 of the Criminal Law Article arising out of the same violation. 32
HOUSE BILL 1000 9
(4) If a violation is committed by a person acting on behalf of a retailer, the 1
civil penalty imposed under paragraph (1) of this subsection shall be paid by the retailer. 2
(f) (1) The Maryland Department of Health, in collaboration and consultation 3
with the [Office of the Comptroller] EXECUTIVE DIRECTOR OF THE ALCOHOL AND 4
TOBACCO COMMISSION, local health departments, and local law enforcement agencies, 5
shall develop ongoing strategies for enforcement of §§ 10–107 and 10–108 of the Criminal 6
Law Article. 7
(2) On or before October 1 each year, the Department shall report to the 8
General Assembly, in accordance with § 2–1257 of the State Government Article, on: 9
(i) The development of enforcement strategies required under 10
paragraph (1) of this subsection; and 11
(ii) Training and assistance to tobacco retailers to improve 12
compliance with § 10–107 of the Criminal Law Article. 13
Article – Tax – General 14
2–303. 15
The Comptroller shall distribute the proceeds from sales of contraband alcoholic 16
beverages and conveyances under § 13–841(a) OR (D) of this article to the General Fund. 17
13–841. 18
(a) (1) Contraband alcoholic beverages that are seized under this title and 19
forfeited may be disposed of or destroyed in the manner allowed under §§ 6–105, 6–106, 20
and 6–328 of the Alcoholic Beverages Article. 21
(2) The Comptroller OR THE EXECUTIVE DIRECTOR OF THE ALCOHOL 22
AND TOBACCO COMMISSION, AS APPROPRIATE, shall sell at public auction a 23
conveyance that is seized under this title in connection with contraband alcoholic beverages 24
and forfeited. 25
(b) (1) The Comptroller OR THE EXECUTIVE DIRECTOR OF THE ALCOHOL 26
AND TOBACCO COMMISSION, AS APPROPRIATE , shall sell MAY DISPOSE OF OR 27
DESTROY contraband tobacco products seized under this title and forfeited, OR MAY SELL 28
THE CONTRABAND TOBAC CO PRODUCTS to a State institution, a nonprofit charitable 29
institution, a licensed cigarette wholesaler, or a licensed cigarette manufacturer in the 30
manner the Comptroller OR EXECUTIVE DIRECTOR determines. 31
(2) The Comptroller OR THE EXECUTIVE DIRECTOR OF THE ALCOHOL 32
AND TOBACCO COMMISSION, AS APPROPRIATE , shall sell at public auction a 33 10 HOUSE BILL 1000
conveyance that is seized under this title in connection with contraband tobacco products 1
and forfeited. 2
(c) (1) If either the Comptroller or, on appeal, a court determines that seized 3
conveyance or motor fuel is not subject to forfeiture: 4
(i) the Comptroller is not required to return the motor fuel seized to 5
the owner or other interested person who filed the claim for return of the property, but may, 6
at the option of the Comptroller, pay to the person an amount equal to the value of the 7
motor fuel as determined by the average wholesale value on the date of seizure for the 8
Baltimore Terminal as reported by a nationally recognized oil price reporting service on the 9
date of seizure; and 10
(ii) the Comptroller shall return the conveyance to the registered 11
owner and shall have no further liability to the registered owner. 12
(2) If a seized conveyance or motor fuel is forfeited, the Comptroller shall: 13
(i) 1. Use the contraband motor fuel for any public purpose; or 14
2. sell the contraband motor fuel to any person; and 15
(ii) sell the seized conveyance to any person. 16
(d) (1) In the manner required under Title 2 of this article for distributions of 17
revenue, the Comptroller shall distribute the net proceeds from the sale of any conveyance 18
or other property under this section after paying: 19
[(1)] (I) the costs incurred in conjunction with the seizure and disposal of 20
the property; 21
[(2)] (II) the cost of the sale; and 22
[(3)] (III) any bona fide lien against the conveyance. 23
(2) IF THE EXECUTIVE DIRECTOR OF THE ALCOHOL AND TOBACCO 24
COMMISSION SELLS AT P UBLIC AUCTION A CONV EYANCE OR OTHER PROP ERTY 25
SEIZED UNDER THIS SE CTION, THE EXECUTIVE DIRECTOR SHALL TRANSF ER THE 26
NET PROCEEDS OF THE SALE TO THE COMPTROLLER FOR DISTR IBUTION UNDER 27
TITLE 2 OF THIS ARTICLE. 28
SECTION 2. AND BE IT FURTHER ENACTED, That: 29
(a) In this section, “Office” means the Governor’s Office of Small, Minority, and 30
Women Business Affairs. 31
HOUSE BILL 1000 11
(b) The Office shall contract with an independent consultant to complete a study 1
of the structure and composition of the wholesale and distribution sector of the alcoholic 2
beverages industry in the State and to make recommendations on identifying and 3
eliminating barriers to minority participation in that industry. 4
(c) The study shall include: 5
(1) current minority–owned business participation rates and data; 6
(2) historical minority–owned business participation rates and data; 7
(3) how the structure of the wholesale and distribution sector of the 8
Maryland alcoholic beverages industry compares to similar structures in other licensing 9
states; 10
(4) how the participation of minority–owned businesses in Maryland 11
compares to minority–owned business participation in other states, where available; and 12
(5) information about the procedures by which applicants procure exclusive 13
contracts to provide alcoholic beverage service for product brands within the State. 14
(d) The recommendations shall include: 15
(1) identifying barriers to minority participation within the distribution 16
tier of the alcoholic beverages industry; 17
(2) how the State can enhance minority–owned business participation in 18
the alcoholic beverage wholesalers and distribution industry; 19
(3) other data that may need to be collected or authorized to fully 20
understand the opportunity of minority business enterprises to participate in the alcoholic 21
beverage distribution industry; and 22
(4) whether a disparity study of authorization and utilization can and 23
should be conducted to identify potential discrimination within the industry that could 24
warrant remedial action. 25
(e) The Office shall consult with the Office of the Attorney General, the 26
Department of Transportation, and the Alcohol and Tobacco Commission in developing the 27
solicitation for an independent consultant under this section. 28
(f) (1) Each holder of a State or local alcoholic beverages license or permit 29
must cooperate with the Office and the independent consultant in providing the following 30
information: 31
(i) services provided by a wholesaler to a supplier or manufacturer 32
in exchange for distribution rights within the State; 33 12 HOUSE BILL 1000
(ii) a list of suppliers that licensed wholesalers distribute on behalf 1
of; 2
(iii) lists of brands distributed within the State by each wholesaler; 3
and 4
(iv) the percentage of wholesaler revenues for each brand owner 5
account service. 6
(2) Each holder of a State or local alcoholic beverages license or permit, or 7
applicant for a license or permit, shall cooperate with requests from the Office or the 8
independent consultant and provide the requested information within 75 days after 9
receiving the request. 10
(3) The Office of the Comptroller and each local licensing board shall 11
cooperate with requests from the Office or the independent consultant and provide the 12
requested information within 75 days after receiving the request. 13
(g) Information provided in accordance with this section by each holder of a State 14
or local alcoholic beverages license or permit, or applicant for a license or permit: 15
(1) shall: 16
(i) constitute confidential commercial information and confidential 17
financial information; and 18
(ii) be treated as confidential by the independent consultant and the 19
State; and 20
(2) may be: 21
(i) used only for purposes authorized under this section; and 22
(ii) disclosed to the public only in an anonymized or aggregated 23
format. 24
(h) On or before December 1, 2024, the Office shall submit the completed report 25
and recommendations, along with any additional information the Office considers 26
pertinent, to the Governor and, in accordance with § 2–1257 of the State Government 27
Article, the General Assembly. 28
SECTION 2. 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 29
July 1, 2023. 30