MD
Maryland House Bill HB1197

Maryland 2024 Regular Session

Maryland House Bill HB1197 Compare Versions

Only one version of the bill is available at this time.
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33 EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
44 [Brackets] indicate matter deleted from existing law.
55 *hb1197*
66
77 HOUSE BILL 1197
88 C2 4lr3098
99 CF 4lr3289
1010 By: Delegate Rogers
1111 Introduced and read first time: February 8, 2024
1212 Assigned to: Economic Matters
1313
1414 A BILL ENTITLED
1515
1616 AN ACT concerning 1
1717
1818 Business Regulation – Electronic Smoking Devices Manufacturers – 2
1919 Certifications 3
2020
2121 FOR the purpose of requiring a certain tobacco products manufacturer and a certain 4
2222 electronic smoking devices manufacturer to pay a certain cert ification fee; 5
2323 authorizing the Executive Director of the Alcohol, Tobacco, and Cannabis 6
2424 Commission and the Attorney General to take certain action relating to the licensure 7
2525 of certain electronic smoking devices manufacturers, wholesalers, importers, and 8
2626 retailers and vape shop vendors in certain circumstances; requiring an electronic 9
2727 smoking devices manufacturer to execute and deliver a certain certification to the 10
2828 Attorney General each year; requiring the Attorney General to develop and make 11
2929 available to the public a certain directory listing certain electronic smoking devices 12
3030 manufacturers; and generally relating to the regulation of tobacco products and 13
3131 electronic smoking devices. 14
3232
3333 BY repealing and reenacting, with amendments, 15
3434 Article – Business Regulation 16
3535 Section 16–3A–01; 16–503(a) and 16–504(a) to be under the amended subtitle 17
3636 “Subtitle 5. Certification Requirements for Tobacco Product Manufacturers”; 18
3737 16.5–101(j), 16.7–101, and 16.7–102; and 16.7–202 through 16.7–204, 19
3838 16.7–204.1, 16.7–207, 16.7–209, and 16.7–213.1 to be under the amended 20
3939 subtitle “Subtitle 2. Electronic Smoking Devices Licenses” 21
4040 Annotated Code of Maryland 22
4141 (2015 Replacement Volume and 2023 Supplement) 23
4242
4343 BY repealing and reenacting, without amendments, 24
4444 Article – Business Regulation 25
4545 Section 16.5–101(a) and (d) and 16.7–201 26
4646 Annotated Code of Maryland 27
4747 (2015 Replacement Volume and 2023 Supplement) 28
4848 2 HOUSE BILL 1197
4949
5050
5151 BY adding to 1
5252 Article – Business Regulation 2
5353 Section 16–509; and 16.7–301 through 16.7–307 to be under the new subtitle 3
5454 “Subtitle 3. Certification Requirements for Electronic Smoking Devices 4
5555 Manufacturers” 5
5656 Annotated Code of Maryland 6
5757 (2015 Replacement Volume and 2023 Supplement) 7
5858
5959 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 8
6060 That the Laws of Maryland read as follows: 9
6161
6262 Article – Business Regulation 10
6363
6464 16–3A–01. 11
6565
6666 (a) In this subtitle the following words have the meanings indicated. 12
6767
6868 (b) “Owner” means the person that owns or operates an establishment in which a 13
6969 vending machine is located. 14
7070
7171 (c) (1) “Tobacco product” means any product that is: 15
7272
7373 (i) intended for human inhalation, absorption, ingestion, smoking, 16
7474 heating, chewing, dissolving, or any other manner of consumption that is made of, derived 17
7575 from, or contains: 18
7676
7777 1. tobacco; or 19
7878
7979 2. nicotine; or 20
8080
8181 (ii) an accessory or a component used in any manner of consumption 21
8282 of a product described in item (i) of this paragraph. 22
8383
8484 (2) “Tobacco product” includes: 23
8585
8686 (i) cigarettes, cigars, pipe tobacco, chewing tobacco, snuff, and snus; 24
8787
8888 (ii) electronic smoking devices; and 25
8989
9090 (iii) filters, rolling papers, pipes, and liquids used in electronic 26
9191 smoking devices regardless of nicotine content. 27
9292
9393 (3) “Tobacco product” does not include a drug, device, or combination 28
9494 product authorized for sale AS A NICOTINE REPLAC EMENT PRODUCT by the U.S. Food 29
9595 and Drug Administration under the Federal Food, Drug, and Cosmetic Act. 30
9696 HOUSE BILL 1197 3
9797
9898
9999 (d) “Vending machine” means any mechanical, electronic, or similar self–service 1
100100 device that on insertion of a coin, coins, token, or other similar means dispenses a tobacco 2
101101 product. 3
102102
103103 Subtitle 5. [Escrow] CERTIFICATION Requirements for [Nonparticipating] Tobacco 4
104104 Product Manufacturers. 5
105105
106106 16–503. 6
107107
108108 (a) A tobacco product manufacturer whose cigarettes are sold in this State, 7
109109 whether directly or through a distributor, retailer or similar intermediary, shall: 8
110110
111111 (1) execute and deliver, on a form prescribed by the Attorney General, a 9
112112 certification to the Attorney General no later than the 30th day of April each year, certifying 10
113113 under penalty of perjury that, as of the date of the certification, the tobacco product 11
114114 manufacturer either: 12
115115
116116 [(1)] (I) is a participating manufacturer; or 13
117117
118118 [(2)] (II) is in full compliance with the Escrow Act; AND 14
119119
120120 (2) PAY TO THE COMPTROLLER A FEE OF $1,000. 15
121121
122122 16–504. 16
123123
124124 (a) Except as provided in subsection (b) of this section, the Attorney General shall 17
125125 develop and make available for public inspection a directory listing: 18
126126
127127 (1) all tobacco product manufacturers that THE ATTORNEY GENERAL 19
128128 HAS DETERMINED : 20
129129
130130 (I) have provided current and accurate certifications conforming to 21
131131 the requirements of § 16–503 of this subtitle; and 22
132132
133133 (II) ARE IN COMPLIANCE WI TH ALL APPLICABLE FE DERAL, 23
134134 STATE, AND LOCAL LAWS ; AND 24
135135
136136 (2) all brand families [that are] listed in [such] THE certifications THAT 25
137137 ARE COMPLIANT WITH A LL APPLICABLE FEDERA L, STATE, AND LOCAL LAWS . 26
138138
139139 16–509. 27
140140
141141 THE REVENUES FROM THE CERTIFICATION FEE ES TABLISHED UNDER § 28
142142 16–503 OF THIS SUBTITLE SHA LL BE DISTRIBUTED TO A SPECIAL FUND TO BE USED 29 4 HOUSE BILL 1197
143143
144144
145145 BY THE OFFICE OF THE ATTORNEY GENERAL FOR ENFORCEMENT OF THIS 1
146146 SUBTITLE. 2
147147
148148 16.5–101. 3
149149
150150 (a) In this title the following words have the meanings indicated. 4
151151
152152 (d) “License” means: 5
153153
154154 (1) a license issued by the Executive Director under § 16.5–204(a) of this 6
155155 title to: 7
156156
157157 (i) act as a licensed other tobacco products manufacturer; 8
158158
159159 (ii) act as an other tobacco products wholesaler; or 9
160160
161161 (iii) act as an other tobacco products storage warehouse; or 10
162162
163163 (2) a license issued by the clerk under § 16.5–204(b) of this title to act as 11
164164 an other tobacco products retailer or a tobacconist. 12
165165
166166 (j) (1) “Other tobacco products” means, except as provided in paragraph (3) of 13
167167 this subsection, a product that is: 14
168168
169169 (i) intended for human consumption or likely to be consumed, 15
170170 whether smoked, heated, chewed, absorbed, dissolved, inhaled, or ingested in any other 16
171171 manner, and that is made of or derived from, or that contains: 17
172172
173173 1. tobacco; or 18
174174
175175 2. nicotine; or 19
176176
177177 (ii) a component or part used in a consumable product described 20
178178 under item (i) of this paragraph. 21
179179
180180 (2) “Other tobacco products” includes: 22
181181
182182 (i) cigars, premium cigars, pipe tobacco, chewing tobacco, snuff, and 23
183183 snus; and 24
184184
185185 (ii) filters, rolling papers, pipes, and hookahs. 25
186186
187187 (3) “Other tobacco products” does not include: 26
188188
189189 (i) cigarettes; 27
190190
191191 (ii) electronic smoking devices; 28 HOUSE BILL 1197 5
192192
193193
194194
195195 (iii) drugs, devices, or combination products authorized for sale AS A 1
196196 NICOTINE REPLACEMENT PRODUCT by the U.S. Food and Drug Administration under 2
197197 the Federal Food, Drug, and Cosmetic Act; or 3
198198
199199 (iv) tobacco pipes, as defined under § 11–104 of the Tax – General 4
200200 Article. 5
201201
202202 16.7–101. 6
203203
204204 (a) In this title the following words have the meanings indicated. 7
205205
206206 (b) “County license” means a license issued by the clerk to sell electronic smoking 8
207207 devices to consumers in a county. 9
208208
209209 (c) (1) “Electronic smoking device” means a device that can be used to deliver 10
210210 aerosolized or vaporized nicotine to an individual inhaling from the device. 11
211211
212212 (2) “Electronic smoking device” includes: 12
213213
214214 (i) an electronic cigarette, an electronic cigar, an electronic cigarillo, 13
215215 an electronic pipe, an electronic hookah, a vape pen, NICOTINE SALTS, and vaping liquid; 14
216216 and 15
217217
218218 (ii) except as provided in paragraph (3) of this subsection, any 16
219219 component, part, CARTRIDGE, TANK, or accessory of such a device regardless of whether 17
220220 or not it is sold separately, including any substance intended to be aerosolized or vaporized 18
221221 during use of the device. 19
222222
223223 (3) “Electronic smoking device” does not include: 20
224224
225225 (i) a drug, device, or combination product authorized for sale AS A 21
226226 NICOTINE REPLACEMENT PRODUCT by the U.S. Food and Drug Administration under 22
227227 the Federal Food, Drug, and Cosmetic Act; or 23
228228
229229 (ii) a battery or battery charger when sold separately. 24
230230
231231 (d) “Electronic smoking devices manufacturer” means a person that: 25
232232
233233 (1) manufactures, mixes, or otherwise produces electronic smoking devices 26
234234 intended for sale in the State, including electronic smoking devices intended for sale in the 27
235235 United States through [an importer] A LICENSED ELECTRONI C SMOKING DEVICES 28
236236 WHOLESALER DISTRIBUTOR OR A LICENSED ELECTRONI C SMOKING DEVICES 29
237237 WHOLESALER IMPORTER ; and 30
238238 6 HOUSE BILL 1197
239239
240240
241241 (2) (i) sells electronic smoking devices to [a consumer, if the consumer 1
242242 purchases or orders the devices through the mail, a computer network, a telephonic 2
243243 network, or another electronic network,] a licensed electronic smoking devices wholesaler 3
244244 distributor[,] or a licensed electronic smoking devices wholesaler importer in the State; OR 4
245245
246246 (ii) if the electronic smoking devices manufacturer also holds a 5
247247 license to act as an electronic smoking devices retailer or a vape shop vendor, sells electronic 6
248248 smoking devices to consumers located in the State[; or 7
249249
250250 (iii) unless otherwise prohibited or restricted under local law, this 8
251251 article, or the Criminal Law Article, distributes sample electronic smoking devices to a 9
252252 licensed electronic smoking devices retailer or vape shop vendor]. 10
253253
254254 (e) “Electronic smoking devices retailer” means a person that: 11
255255
256256 (1) sells electronic smoking devices to consumers; OR 12
257257
258258 (2) holds electronic smoking devices for sale to consumers[; or 13
259259
260260 (3) unless otherwise prohibited or restricted under local law, this article, 14
261261 the Criminal Law Article, or § 24–305 of the Health – General Article, distributes sample 15
262262 electronic smoking devices to consumers in the State]. 16
263263
264264 (f) “Electronic smoking devices wholesaler distributer” means a person that: 17
265265
266266 (1) obtains [at least 70% of its] electronic smoking devices from [a holder 18
267267 of an]: 19
268268
269269 (I) A LICENSED electronic smoking devices manufacturer [license 20
270270 under this subtitle or a business entity located in the United States]; 21
271271
272272 (II) A LICENSED ELECTRONI C SMOKING DEVICES WH OLESALER 22
273273 DISTRIBUTOR; OR 23
274274
275275 (III) A LICENSED ELECTRONI C SMOKING DEVICES WH OLESALER 24
276276 IMPORTER; and 25
277277
278278 (2) (i) holds electronic smoking devices for sale to another person for 26
279279 resale; or 27
280280
281281 (ii) sells electronic smoking devices to another person for resale. 28
282282
283283 (g) “Electronic smoking devices wholesaler importer” means a person that: 29
284284 HOUSE BILL 1197 7
285285
286286
287287 (1) obtains at least 70% of its electronic smoking devices from a [business 1
288288 entity] LICENSED ELECTRONIC SMOKING DEVICES MANU FACTURER located in a 2
289289 foreign country; and 3
290290
291291 (2) (i) holds electronic smoking devices for sale to another person for 4
292292 resale; or 5
293293
294294 (ii) sells electronic smoking devices to another person for resale. 6
295295
296296 (h) “Executive Director” means the Executive Director of the Alcohol and Tobacco 7
297297 Commission. 8
298298
299299 (i) “License” means: 9
300300
301301 (1) a license issued by the Executive Director under § 16.7–203(a) of this 10
302302 title to: 11
303303
304304 (i) act as a licensed electronic smoking devices manufacturer; 12
305305
306306 (ii) act as a licensed electronic smoking devices wholesaler 13
307307 distributor; or 14
308308
309309 (iii) act as a licensed electronic smoking devices wholesaler importer; 15
310310 or 16
311311
312312 (2) a license issued by the clerk under § 16.7–203(b) of this title to: 17
313313
314314 (i) act as a licensed electronic smoking devices retailer; or 18
315315
316316 (ii) act as a licensed vape shop vendor. 19
317317
318318 (j) “Sell” means to exchange or transfer, or to agree to exchange or transfer, title 20
319319 or possession of property, in any manner or by any means, for consideration. 21
320320
321321 (k) “Vape shop vendor” means an electronic smoking devices business that derives 22
322322 at least 70% of its revenues, measured by average daily receipts, from the sale of electronic 23
323323 smoking devices and related accessories. 24
324324
325325 (l) “Vaping liquid” means a liquid that: 25
326326
327327 (1) consists of propylene glycol, vegetable glycerin, or other similar 26
328328 substance; 27
329329
330330 (2) may or may not contain natural or artificial flavors; 28
331331
332332 (3) may or may not contain nicotine; and 29
333333 8 HOUSE BILL 1197
334334
335335
336336 (4) converts to vapor intended for inhalation when heated in an electronic 1
337337 device. 2
338338
339339 16.7–102. 3
340340
341341 (a) The Executive Director may delegate any power or duty of the Executive 4
342342 Director under this title. 5
343343
344344 (b) Any person licensed under Title 16 or Title 16.5 of this article[, or an affiliate, 6
345345 as defined under § 16–402(c) of this article, of a person licensed under Title 16 of this 7
346346 article] WHO IS ALSO SEEKING TO MANUFACTURE , DISTRIBUTE, OR SELL 8
347347 ELECTRONIC SMOKING D EVICES: 9
348348
349349 (1) [is authorized to] MUST OBTAIN A LICENSE TO manufacture, 10
350350 distribute, or sell electronic smoking devices pursuant to this title in the same capacity as 11
351351 the person is licensed under Title 16 or Title 16.5 of this article; and 12
352352
353353 (2) may not be required to [obtain an additional license] PAY ANY 13
354354 ADDITIONAL APPLICA TION FEE under this title. 14
355355
356356 Subtitle 2. Electronic [Nicotine Delivery Systems] SMOKING DEVICES Licenses. 15
357357
358358 16.7–201. 16
359359
360360 (a) A person must hold an appropriate license before the person may act as: 17
361361
362362 (1) an electronic smoking devices manufacturer; 18
363363
364364 (2) an electronic smoking devices retailer; 19
365365
366366 (3) an electronic smoking devices wholesaler distributor; 20
367367
368368 (4) an electronic smoking devices wholesaler importer; or 21
369369
370370 (5) a vape shop vendor. 22
371371
372372 (b) A place of business in which a person acts as an electronic smoking devices 23
373373 retailer or a vape shop vendor must hold an appropriate license. 24
374374
375375 16.7–202. 25
376376
377377 (a) [(1)] An applicant for a license to act as an electronic smoking devices 26
378378 manufacturer, electronic smoking devices wholesaler distributor, or electronic smoking 27
379379 devices wholesaler importer shall: 28
380380 HOUSE BILL 1197 9
381381
382382
383383 [(i)] (1) obtain an appropriate [county] license by submitting an 1
384384 application to the Executive Director on the form and containing the information that the 2
385385 Executive Director requires; 3
386386
387387 [(ii)] (2) indicate the licenses for which the applicant is applying; 4
388388 and 5
389389
390390 [(iii)] (3) [except as provided in paragraph (2) of this subsection,] 6
391391 pay to the Executive Director a fee of [$25 for each license for which the applicant applies.]: 7
392392
393393 [(2)] (I) [An applicant] $750 FOR AN APPLICATION for a license to act 8
394394 as an electronic smoking devices wholesaler distributor or electronic smoking devices 9
395395 wholesaler importer [shall pay to the Executive Director a fee of $150]; AND 10
396396
397397 (II) $1,000 FOR AN APPLICATION F OR A LICENSE TO ACT AS AN 11
398398 ELECTRONIC SMOKING D EVICES MANUFACTURER . 12
399399
400400 (b) (1) An applicant for a license to act as an electronic smoking devices 13
401401 retailer or a vape shop vendor: 14
402402
403403 (i) shall obtain a county license by submitting to the clerk an 15
404404 application for each permanent or temporary place of business located in the same 16
405405 enclosure and operated by the same applicant; and 17
406406
407407 (ii) except as provided in paragraph (2) of this subsection, shall pay 18
408408 to the clerk a fee of [$25] $30. 19
409409
410410 (2) The application shall: 20
411411
412412 (i) be made on the form that the clerk requires; and 21
413413
414414 (ii) contain the information that the Executive Director requires. 22
415415
416416 (c) A licensee shall display a license in the way that the Executive Director 23
417417 requires by regulation. 24
418418
419419 (d) If a person has had a license revoked under § 16.7–207 of this subtitle, the 25
420420 person may not reapply for a license within 1 year after the date when the prior license was 26
421421 revoked. 27
422422
423423 16.7–203. 28
424424
425425 (a) The Executive Director shall issue an appropriate license to each applicant 29
426426 that meets the requirements of this subtitle for a license to act as an electronic smoking 30
427427 devices manufacturer, electronic smoking devices wholesaler distributor, or electronic 31
428428 smoking devices wholesaler importer. 32 10 HOUSE BILL 1197
429429
430430
431431
432432 (b) The clerk shall issue to each applicant that meets the requirements of this 1
433433 subtitle a license to act as an electronic smoking devices retailer or a vape shop vendor. 2
434434
435435 (c) The clerk shall forward a copy of an application received for each license 3
436436 issued under subsection (b) of this section to the Executive Director AND THE ATTORNEY 4
437437 GENERAL within 30 days after issuance of the license. 5
438438
439439 16.7–204. 6
440440
441441 (a) An electronic smoking devices manufacturer license authorizes the licensee 7
442442 to: 8
443443
444444 (1) sell electronic smoking devices to: 9
445445
446446 (i) a licensed electronic smoking devices wholesaler [located in the 10
447447 State] DISTRIBUTOR ; OR 11
448448
449449 (ii) [an electronic smoking devices wholesaler or retailer located 12
450450 outside the State if the electronic smoking devices may be sold lawfully in Maryland] A 13
451451 LICENSED ELECTRONIC SMOKING DEVICE S WHOLESALER IMPORTE R; AND 14
452452
453453 [(iii) a licensed vape shop vendor; and 15
454454
455455 (iv) a consumer if: 16
456456
457457 1. the licensee manufactured the devices; and 17
458458
459459 2. the consumer purchases or orders the devices through the 18
460460 mail, a computer network, a telephonic network, or another electronic network;] 19
461461
462462 (2) if the electronic smoking devices manufacturer licensee also holds a 20
463463 license to act as an electronic smoking devices retailer or a vape shop vendor, transfer 21
464464 electronic smoking devices to inventory for sale under the retail license or vape shop 22
465465 license[; and 23
466466
467467 (3) except as otherwise prohibited or restricted under local law, this article, 24
468468 or the Criminal Law Article, distribute electronic smoking devices products to a licensed 25
469469 electronic smoking devices retailer or vape shop vendor]. 26
470470
471471 (b) An electronic smoking devices retailer license authorizes the licensee to: 27
472472
473473 (1) sell electronic smoking devices to consumers; 28
474474 HOUSE BILL 1197 11
475475
476476
477477 (2) buy electronic smoking devices from [an] A LICENSED electronic 1
478478 smoking devices wholesaler distributor [or electronic smoking devices wholesaler 2
479479 importer]; AND 3
480480
481481 (3) if the electronic smoking devices retailer licensee also holds a license to 4
482482 act as an electronic smoking devices manufacturer, sell at retail electronic smoking devices 5
483483 manufactured under the manufacturer license[; and 6
484484
485485 (4) except as otherwise prohibited or restricted under local law, this article, 7
486486 the Criminal Law Article, or § 24–305 of the Health – General Article, distribute sample 8
487487 electronic smoking devices products to consumers in the State]. 9
488488
489489 (c) An electronic smoking devices wholesaler distributor license [or electronic 10
490490 smoking devices wholesaler importer license] authorizes the licensee to: 11
491491
492492 (1) sell electronic smoking devices to LICENSED electronic smoking devices 12
493493 retailers and LICENSED vape shop vendors; 13
494494
495495 (2) buy electronic smoking devices directly from [an] A LICENSED 14
496496 electronic smoking devices manufacturer [and an], A LICENSED electronic smoking devices 15
497497 wholesaler distributor, or A LICENSED electronic smoking devices wholesaler importer; 16
498498
499499 (3) hold electronic smoking devices; and 17
500500
501501 (4) sell electronic smoking devices to another licensed electronic smoking 18
502502 devices wholesaler distributor or electronic smoking devices wholesaler importer. 19
503503
504504 (d) A vape shop vendor license authorizes the licensee to: 20
505505
506506 (1) sell electronic smoking devices as a vape shop vendor; 21
507507
508508 (2) if the vape shop vendor licensee also holds a license to act as an 22
509509 electronic smoking devices manufacturer, sell at retail electronic smoking devices 23
510510 manufactured under the manufacturer license; and 24
511511
512512 (3) buy electronic smoking devices from [an electronic smoking devices 25
513513 manufacturer, an] A LICENSED electronic smoking devices wholesaler distributor[, or an 26
514514 electronic smoking devices wholesaler importer]. 27
515515
516516 (E) AN ELECTRONIC SMOKING DEVICES WHOLESALER I MPORTER LICENSE 28
517517 AUTHORIZES THE LICEN SEE TO: 29
518518
519519 (1) SELL ELECTRONIC SMOK ING DEVICES TO A LIC ENSED 30
520520 ELECTRONIC SMOKING D EVICES WHOLESALER DI STRIBUTOR OR A LICEN SED 31
521521 ELECTRONI C SMOKING DEVICES WH OLESALER IMPORTER ; 32 12 HOUSE BILL 1197
522522
523523
524524
525525 (2) BUY ELECTRONIC SMOKI NG DEVICES DIRECTLY FROM A 1
526526 LICENSED ELECTRONIC SMOKING DEVICES MANU FACTURER, A LICENSED 2
527527 ELECTRONIC SMOKING D EVICES WHOLESALER IM PORTER, OR A LICENSED 3
528528 ELECTRONIC SMOKING D EVICES WHOLESALER DI STRIBUTOR; AND 4
529529
530530 (3) HOLD ELECTRONIC SMOK ING DEVICES. 5
531531
532532 16.7–204.1. 6
533533
534534 (a) A retail OR VAPE SHOP VENDOR licensee shall post a sign in a location that 7
535535 is clearly visible to the consumer that states: 8
536536
537537 “No person under the age of 21 may be sold tobacco products without military 9
538538 identification”. 10
539539
540540 (b) The sign required under this section shall be written in letters at least 11
541541 one–half inch high. 12
542542
543543 16.7–207. 13
544544
545545 (a) Subject to the hearing provisions of § 16.7–208 of this subtitle, the Executive 14
546546 Director may deny a license to an applicant, reprimand a licensee, or suspend or revoke a 15
547547 license if the applicant or licensee: 16
548548
549549 (1) fraudulently or deceptively obtains or attempts to obtain a license for 17
550550 the applicant, licensee, or another person; 18
551551
552552 (2) fraudulently or deceptively uses a license; 19
553553
554554 (3) buys electronic smoking devices for resale: 20
555555
556556 (i) in violation of a license; or 21
557557
558558 (ii) from a person [that is not a licensed electronic smoking devices 22
559559 manufacturer or a licensed electronic smoking devices wholesaler] IN VIOLATION OF § 23
560560 16.7–211(A) OF THIS SUBTITLE ; 24
561561
562562 (4) is convicted, under the laws of the United States or of any other state, 25
563563 of: 26
564564
565565 (i) a felony; or 27
566566
567567 (ii) a misdemeanor that is a crime of moral turpitude and is directly 28
568568 related to the fitness and qualification of the applicant or licensee; 29
569569 HOUSE BILL 1197 13
570570
571571
572572 (5) violates federal, State, or local law regarding the sale of electronic 1
573573 smoking devices; or 2
574574
575575 (6) violates this title, Title 16, or Title 16.5 of this article or regulations 3
576576 adopted under these titles. 4
577577
578578 (b) Subject to the hearing provisions of § 16.7–208 of this subtitle, the Executive 5
579579 Director shall deny a license to any applicant that has had a license revoked under this 6
580580 section until: 7
581581
582582 (1) 1 year has passed since the license was revoked; and 8
583583
584584 (2) [it] THE APPLICANT satisfactorily [appears] DEMONSTRATES to the 9
585585 Executive Director that the applicant will comply with this title and any regulations 10
586586 adopted under this title. 11
587587
588588 (c) Prior to the issuance or renewal of any license, the Executive Director OR THE 12
589589 ATTORNEY GENERAL shall conduct an investigation with regard to: 13
590590
591591 (1) the applicant; 14
592592
593593 (2) the business to be operated; and 15
594594
595595 (3) the facts set forth in the application. 16
596596
597597 16.7–209. 17
598598
599599 (a) Subject to the notice requirement of subsection (c) of this section, if a licensee 18
600600 engages in an act or omission that is grounds for discipline under § 16.7–207 of this subtitle, 19
601601 the Executive Director may suspend the license for a consecutive period of time that: 20
602602
603603 (1) for a first offense, is not less than 5 and not more than 20 business days; 21
604604 and 22
605605
606606 (2) for a subsequent offense, is not less than 20 business days and not more 23
607607 than 6 months. 24
608608
609609 (b) Subject to the notice requirement under subsection (c) of this section, the 25
610610 Executive Director may revoke a license if a licensee willfully [and persistently] engages 26
611611 in an act or omission that is grounds for discipline under § 16.7–207(a) of this subtitle. 27
612612
613613 (c) If a license is suspended or revoked under this section: 28
614614
615615 (1) the Executive Director shall give the licensee notice of the suspension 29
616616 or revocation; and 30
617617 14 HOUSE BILL 1197
618618
619619
620620 (2) the suspension or revocation of a license may not bar or abate a 1
621621 disciplinary action under this section. 2
622622
623623 (d) The transfer, renewal, or expiration of a license may not bar or abate a 3
624624 disciplinary action under this section. 4
625625
626626 (e) (1) (i) Except as provided in subparagraph (ii) of this paragraph, if a 5
627627 license issued under the provisions of this subtitle is suspended or revoked by the Executive 6
628628 Director, the licensee may, before the effective date of the suspension or revocation, petition 7
629629 the Executive Director for permission to make an offer of compromise consisting of a sum 8
630630 of money in lieu of serving the suspension or revocation. 9
631631
632632 (ii) Subparagraph (i) of this paragraph does not apply if a license is 10
633633 suspended or revoked for a violation of § 24–305 of the Health – General Article, or any 11
634634 other federal, State, or local law prohibiting the sale of electronic smoking devices to 12
635635 individuals under the age of 21 years. 13
636636
637637 (2) Money paid in lieu of suspension or revocation shall be paid into the 14
638638 General Fund of the State. 15
639639
640640 (3) [An offer of compromise may not exceed $2,000 for retail licensees or 16
641641 $50,000 for other licensees. 17
642642
643643 (4)] The Executive Director may accept the offer of compromise if: 18
644644
645645 (i) the public welfare and morals would not be impaired by allowing 19
646646 the licensee to operate during the period set for the suspension or revocation; and 20
647647
648648 (ii) the payment of the sum of money will achieve the desired 21
649649 disciplinary purposes. 22
650650
651651 [(5)] (4) The Executive Director may adopt regulations to carry out this 23
652652 subsection. 24
653653
654654 16.7–213.1. 25
655655
656656 (a) The Maryland Department of Health OR THE EXECUTIVE DIRECTOR may 26
657657 conduct unannounced inspections of licensed retailers OR LICENSED VAPE SHO P 27
658658 VENDORS to ensure the licensee’s compliance with the provisions of this title and § 10–107 28
659659 of the Criminal Law Article. 29
660660
661661 (b) The Maryland Department of Health may use an individual under the age of 30
662662 21 years to assist in conducting an inspection under this section. 31
663663
664664 SUBTITLE 3. CERTIFICATION REQUIREMENTS FOR ELECTRONIC SMOKING 32
665665 DEVICES MANUFACTURERS . 33 HOUSE BILL 1197 15
666666
667667
668668
669669 16.7–301. 1
670670
671671 (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 2
672672 INDICATED. 3
673673
674674 (B) (1) “BRAND FAMILY ” MEANS ALL STYLES AND FLAVORS OF 4
675675 ELECTRONIC SMOKING D EVICES SOLD UNDER TH E SAME TRADEMARK , REGARDLESS 5
676676 OF WHETHER THE ELECT RONIC SMOKING DEVICE S ARE DIFFERENTIATED FROM 6
677677 ONE ANOTHER BY MEANS OF ADDITIONAL MODIFI ERS OR DESCRIPTORS D EPICTING 7
678678 FLAVORS, SHAPES, METHOD OF DELIVERY , DEVICE MODEL , POTENCY, NICOTINE 8
679679 LEVEL, OR ANY OTHER DIFFERE NTIATION. 9
680680
681681 (2) “BRAND FAMILY ” INCLUDES ANY USE OF A BRAND NAME , 10
682682 TRADEMARK , LOGO, SYMBOL, MOTTO, SELLING MESSAGE , RECOGNIZABLE PATTERN 11
683683 OF COLORS, OR ANY OTHER INDICIA OF PRODUCT IDENTIFIC ATION IDENTICAL OR 12
684684 SIMILAR TO, OR IDENTIFIABLE WITH , A PREVIOUSLY KNOW N BRAND OF ELECTRONI C 13
685685 SMOKING DEVICES , OTHER TOBACCO PRODUC TS, OR ELECTRONIC SMOKIN G DEVICE 14
686686 PRODUCTS. 15
687687
688688 (C) “BRAND STYLE” MEANS EACH INDIVIDUA L STYLE OR FLAVOR OF AN 16
689689 ELECTRONIC SMOKING D EVICE SOLD WITHIN A BRAND FAMILY , BUT 17
690690 DIFFERENTIATED FROM ONE ANOTHER BY MEANS OF ADDITION AL ADJECTIVES , 18
691691 MODIFIERS, OR DESCRIPTORS , INCLUDING THOSE DEPI CTING FLAVORS , SHAPES, 19
692692 METHOD OF DELIVERY , DEVICE MODEL , POTENCY, OR NICOTINE LEVEL . 20
693693
694694 (D) “DIRECTORY” MEANS THE LIST PUBLI SHED BY THE ATTORNEY 21
695695 GENERAL OF APPROVED E LECTRONIC SMOKING DEVICES MANU FACTURERS THAT 22
696696 HAVE SUBMITTED A CER TIFICATION IN ACCORD ANCE WITH THIS SUBTI TLE AND THE 23
697697 BRAND FAMILIES AND B RAND STYLES OF THEIR ELECTRONIC SMOKING D EVICES 24
698698 THAT HAVE BEEN DETER MINED BY THE ATTORNEY GENERAL AS CONFORMING TO 25
699699 THE REQUIREME NTS OF § 16.7–302 OF THIS SUBTITLE. 26
700700
701701 16.7–302. 27
702702
703703 (A) (1) AN ELECTRONIC SMOKING DEVICES MANUFACTURER WHOSE 28
704704 PRODUCTS ARE SOLD IN THE STATE SHALL EXECUTE A ND DELIVER, ON A FORM 29
705705 PRESCRIBED BY THE ATTORNEY GENERAL, A CERTIFICATION TO T HE ATTORNEY 30
706706 GENERAL NOT LA TER THAN JUNE 30 EACH YEAR, CERTIFYING UNDER PEN ALTY OF 31
707707 PERJURY THAT , AS OF THE DATE OF TH E CERTIFICATION , THE ELECTRONIC 32
708708 SMOKING DEVICES MANU FACTURER HAS RECEIVE D AUTHORIZATION FROM THE 33
709709 U.S. FOOD AND DRUG ADMINISTRATION TO SEL L ITS ELECTRONIC SMO KING 34
710710 DEVICES IN THE UNITED STATES. 35 16 HOUSE BILL 1197
711711
712712
713713
714714 (2) FOR EACH CERTIFICATIO N SUBMITTED UNDER PA RAGRAPH (1) 1
715715 OF THIS SUBSECTION A N ELECTRONIC SMOKING DEVICES MANUFACTURER SHALL 2
716716 PAY TO THE ATTORNEY GENERAL A FEE OF $1,000. 3
717717
718718 (B) IN THE CERTIFICATION SUBMITTED TO THE ATTORNEY GENERAL 4
719719 UNDER THIS SECTION , THE ELECTRONIC SMOKI NG DEVICES MANUFACTU RER 5
720720 SHALL: 6
721721
722722 (1) IDENTIFY ALL OF ITS ELECTRONIC SMOKING D EVICE BRAND 7
723723 FAMILIES THAT ARE BE ING SOLD IN THE UNITED STATES AS OF THE DATE OF 8
724724 CERTIFICATION ; 9
725725
726726 (2) IDENTIFY ANY ELECTRO NIC SMOKING DEVICES BRAND FAMILY 10
727727 THAT THE ELECTRONIC SMOKING DEVICES MANU FACTURER SEEKS TO SE LL IN THE 11
728728 STATE IN THE UPCOMING FISCAL YEAR; 12
729729
730730 (3) INDICATE WITH AN AST ERISK ANY BRAND FAMI LY SOLD IN THE 13
731731 STATE DURING THE PREC EDING 3 CALENDAR YEARS THAT ARE NO LONGER SOLD IN 14
732732 THE STATE AS OF THE DATE OF CERTIFICATION ; 15
733733
734734 (4) IDENTIFY BY NAME AND ADDRESS ANY OTHER MA NUFACTURER OF 16
735735 SUCH BRAND FAMILIES IN THE PRECEDING OR CURRENT FISCAL YEAR ; 17
736736
737737 (5) INDICATE WHETHER THE ELECTRONIC SMOKING D EVICES BRAND 18
738738 FAMILY BEING CERTIFI ED INCLUDES AN AEROSOLIZ ING DEVICE OR THE JU ICE, 19
739739 SALT, OR OTHER CONSUMABLE SUBSTANCE TO BE AERO SOLIZED OR BOTH ; 20
740740
741741 (6) INDICATE BY NUMBER T HE DECISION SUMMARY FOR THE MARKET 21
742742 ORDER AUTHORIZING TH E ELECTRONIC SMOKING DEVICE TO BE SOLD IN THE 22
743743 UNITED STATES AND INCLUDE A COPY OF TH E AUTHORIZATION BY T HE U.S. FOOD 23
744744 AND DRUG ADMINISTRATION ; AND 24
745745
746746 (7) IDENTIFY ANY OTHER I NFORMATION REQUIRED BY THE 25
747747 ATTORNEY GENERAL TO CONFIRM TH AT THE ELECTRONIC SM OKING DEVICES 26
748748 MANUFACTURER AND ITS BRAND FAMILIES ARE I N COMPLIANCE WI TH THIS TITLE 27
749749 AND ANY OTHER APPLIC ABLE FEDERAL , STATE, AND LOCAL LAWS . 28
750750
751751 (C) AN ELECTRONIC SMOKING DEVICES MANUFACTURER SHALL FURTHER 29
752752 CERTIFY THAT THE ELE CTRONIC SMOKING DEVI CES MANUFACTURER : 30
753753 HOUSE BILL 1197 17
754754
755755
756756 (1) IS REGISTERED TO DO BUSINESS IN THE STATE OR HAS 1
757757 APPOINTED A RESIDENT AGENT F OR SERVICE OF PROCES S AND PROVIDED NOTIC E 2
758758 OF THE APPOINTMENT A S REQUIRED UNDER § 16.7–304 OF THIS SUBTITLE; 3
759759
760760 (2) IS LICENSED BY THE EXECUTIVE DIRECTOR TO OPERATE A S AN 4
761761 ELECTRONIC SMOKING D EVICES MANUFACTURER IN THE STATE; AND 5
762762
763763 (3) IS IN FULL COMPLIANCE WITH ALL APPLICABLE LOCAL, STATE, 6
764764 AND FEDERAL LAWS REG ARDING THE MANUFACTU RE AND SALE OF ELECT RONIC 7
765765 SMOKING DEVICES . 8
766766
767767 (D) (1) AN ELECTRONIC SMOKING DEVICES MANUFACTURER MAY NOT 9
768768 INCLUDE A BRAND FAMI LY OR BRAND STYLE IN ITS CERTIFICATIO N UNLESS IT 10
769769 AFFIRMS UNDER PENALT Y OF PERJURY THAT : 11
770770
771771 (I) IT IS THE ENTITY THA T FABRICATES , MANUFACTURES , 12
772772 MIXES, OR OTHERWISE PRODUCE S THE ELECTRONIC SMO KING DEVICES INCLUDE D 13
773773 IN THE CERTIFICATION ; AND 14
774774
775775 (II) TO THE BEST OF THE E LECTRONIC SMOKING DE VICES 15
776776 MANUFACTURER ’S KNOWLEDGE , NO OTHER ELECTRONIC SMOKING DEVICES 16
777777 MANUFACTURER IS FABR ICATING, MANUFACTURING , MIXING, OR OTHERWISE 17
778778 PRODUCING ELECTRONIC SMOKING DEVICES FOR SALE IN THE UNITED STATES 18
779779 WITH THE SAME BR AND NAME AS A BRAND FAMILY INCLUDED IN T HE 19
780780 CERTIFICATION . 20
781781
782782 (2) NOTHING IN THIS SECTI ON MAY BE CONSTRUED AS LIMITING OR 21
783783 OTHERWISE AFFECTING THE STATE’S RIGHT TO REFUSE TO INCLUDE AN 22
784784 ELECTRONIC SMOKING D EVICE ON THE DIRECTO RY IF THE ATTORNEY GENERAL 23
785785 HAS REASON TO BELIEVE THA T A BRAND FAMILY OR BRAND STYLE INCLUDED IN A 24
786786 CERTIFICATION IS AN ELECTRONIC SMOKING D EVICE PRODUCED BY A DIFFERENT 25
787787 ELECTRONIC SMOKING D EVICES MANUFACTURER . 26
788788
789789 (E) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , AN 27
790790 ELECTRONIC SMOKING D EVICES MANUFACTURER THAT HAS NOT PREVIOU SLY 28
791791 SUBMITTED A CERTIFIC ATION WITH THE STATE OR THAT IS NOT LISTED IN THE 29
792792 DIRECTORY MAY SUBMIT AN INITIAL CERTIFICA TION WITH THE ATTORNEY 30
793793 GENERAL AT ANY POINT DURING THE YEAR . 31
794794
795795 (2) AN ELECTRONIC SMOKING DEVICES MAN UFACTURER THAT 32
796796 SUBMITS AN INITIAL C ERTIFICATION UNDER P ARAGRAPH (1) OF THIS SUBSECTION 33
797797 MUST SUBMIT AN ANNUA L CERTIFICATION IN A CCORDANCE WITH SUBSE CTION (A) 34
798798 OF THIS SECTION, UNLESS THE INITIAL C ERTIFICATION WAS SUB MITTED WITHIN 90 35 18 HOUSE BILL 1197
799799
800800
801801 DAYS OF THE DATE THE ANNUAL SUBMISSION IS REQ UIRED UNDER SUBSECTI ON (A) 1
802802 OF THIS SECTION. 2
803803
804804 (F) AN ELECTRONIC SMOKING DEVICES MANUFACTURER LISTED ON THE 3
805805 DIRECTORY SHALL UPDA TE ITS LISTING ON TH E DIRECTORY TO REFLE CT ANY 4
806806 ADDITION, DISCONTINUANCE , OR MODIFICATION TO I TS LISTED ELECTR ONIC 5
807807 SMOKING DEVICE BRAND FAMILIES BY EXECUTIN G AND DELIVERING A 6
808808 SUPPLEMENTAL CERTIFI CATION TO THE ATTORNEY GENERAL NOT LESS THAN 30 7
809809 CALENDAR DAYS PRIOR TO THE CHANGE . 8
810810
811811 16.7–303. 9
812812
813813 (A) EXCEPT AS PROVIDED IN SUBSECTION (B)(1) AND (2) OF THIS SECTION, 10
814814 THE ATTORNEY GENERAL SHALL DEVELOP AND MAKE AVAILABLE F OR PUBLIC 11
815815 INSPECTION A DIRECTO RY LISTING ALL ELECT RONIC SMOKING DEVICE S 12
816816 MANUFACTURERS THAT H AVE PROVIDED CURRENT AND ACCURATE 13
817817 CERTIFICATIONS COMPL YING WITH THE REQUIR EMENTS OF § 16.7–302 OF THIS 14
818818 SUBTITLE AND ALL APPROVED ELEC TRONIC SMOKING DEVIC E BRAND FAMILIES AND 15
819819 BRAND STYLES INCLUDE D IN THE CERTIFICATI ONS. 16
820820
821821 (B) (1) THE ATTORNEY GENERAL MAY NOT INCLU DE OR RETAIN ON THE 17
822822 DIRECTORY ANY BRAND FAMILIES OR BRAND ST YLES OF ANY ELECTRON IC SMOKING 18
823823 DEVICES MANUFAC TURER THAT FAILS TO PROVIDE THE REQUIRED CERTIFICATION , 19
824824 FEE, OR WHOSE CERTIFICATI ON THE ATTORNEY GENERAL DETERMINES IS NOT IN 20
825825 COMPLIANCE WITH § 16.7–302 OF THIS SUBTITLE , UNLESS THE ATTORNEY 21
826826 GENERAL HAS DETERMINE D THAT THE VIOLATION HAS BEEN CURED TO TH E 22
827827 SATISFACTION OF THE ATTORNEY GENERAL. 23
828828
829829 (2) THE ATTORNEY GENERAL SHALL UPDATE THE DIRECTORY AS 24
830830 NECESSARY TO CORRECT MISTAKES AND TO ADD OR REMOVE AN ELECTRO NIC 25
831831 SMOKING DEVICES MANU FACTURER OR ANY BRAN D FAMILY OR BRAND ST YLE OF AN 26
832832 ELECTRONIC SMOKING D EVICE TO KEEP THE DIRECTOR Y IN CONFORMITY WITH THE 27
833833 REQUIREMENTS OF THIS SUBTITLE. 28
834834
835835 (3) EACH LICENSED ELECTRO NIC SMOKING DEVICES WHOLESALER 29
836836 DISTRIBUTOR AND LICE NSED ELECTRONIC SMOK ING DEVICES WHOLESAL ER 30
837837 IMPORTER SHALL PROVI DE TO THE ATTORNEY GENERAL, AND UPDATE AS 31
838838 NECESSARY, CURRENT CONTACT INFO RMATION FOR THE PURP OSE OF RECEIVING 32
839839 ANY NOTIFICATIONS TH AT MAY BE REQUIRED B Y THIS SUBTITLE , INCLUDING A 33
840840 POINT OF CONTACT PER SON, A PHYSICAL LOCATION , AND AN ELECTRONIC MA IL 34
841841 ADDRESS. 35
842842 HOUSE BILL 1197 19
843843
844844
845845 (C) AN ELECTRONIC SMOKING DEVICES MANUFACTURER SHALL MA INTAIN 1
846846 ALL INVOICES AND DOC UMENTATION OF SALES , ALL APPROVAL LETTERS AND 2
847847 UNDERLYING APPLICATI ONS AND MATERIALS , AND ANY OTHER INFORM ATION 3
848848 RELIED ON FOR ITS CE RTIFICATION FOR A MI NIMUM PERIOD OF 5 YEARS, UNLESS 4
849849 OTHERWISE REQUIRED B Y LAW TO MAINTAIN THEM FOR A GREATER PERIOD OF 5
850850 TIME. 6
851851
852852 (D) AN INDIVIDUAL MAY NOT SELL, OFFER FOR SALE , POSSESS FOR SALE IN 7
853853 THE STATE, OR IMPORT FOR PERSON AL CONSUMPTION IN TH E STATE, ANY: 8
854854
855855 (1) ELECTRONIC SMOKING D EVICE, BRAND FAMILY , OR BRAND STYLE 9
856856 NOT INCLUDE D ON THE DIRECTORY ; OR 10
857857
858858 (2) ELECTRONIC SMOKING D EVICES MANUFACTURED BY AN 11
859859 ELECTRONIC SMOKING D EVICES MANUFACTURER THAT IS NOT INCLUDED ON THE 12
860860 DIRECTORY. 13
861861
862862 16.7–304. 14
863863
864864 (A) (1) ANY NONRESIDENT OR FO REIGN ELECTRONIC SMO KING DEVICES 15
865865 MANUFACTURER THAT HA S NOT REGISTERED TO DO BUS INESS IN THE STATE AS A 16
866866 FOREIGN CORPORATION OR BUSINESS ENTITY S HALL APPOINT , AND CONTINUALLY 17
867867 ENGAGE WITHOUT INTER RUPTION, THE SERVICES OF AN A GENT IN THE STATE TO 18
868868 ACT AS AN AGENT FOR THE SERVICE OF PROCE SS ON THE NONRESIDEN T OR 19
869869 FOREIGN ELECTRONIC SMOKING DEVICES MANUFACTURER , BEFORE ITS BRAND 20
870870 FAMILIES OR BRAND ST YLES MAY BE INCLUDED OR RETAINED ON THE D IRECTORY 21
871871 DESCRIBED IN § 16.7–303 OF THIS SUBTITLE . 22
872872
873873 (2) ANY PROCESS AND ANY A CTION OR PROCEEDING AGAINST A 23
874874 NONRESIDENT OR FOREI GN ELECTRONIC SMOKING DEVI CES MANUFACTURER 24
875875 CONCERNING OR ARISIN G OUT OF THE ENFORCE MENT OF THIS SUBTITL E OR THIS 25
876876 ARTICLE MAY BE SERVE D IN ANY MANNER AUTH ORIZED BY LAW. 26
877877
878878 (3) (I) THE SERVICE OF PROCES S ON THE DESIGNATED AGENT 27
879879 SHALL CONSTITUTE LEG AL AND VALID SER VICE OF PROCESS ON T HE ELECTRONIC 28
880880 SMOKING DEVICES MANU FACTURER. 29
881881
882882 (II) THE ELECTRONIC SMOKIN G DEVICES MANUFACTUR ER 30
883883 SHALL PROVIDE , TO THE SATISFACTION OF THE EXECUTIVE DIRECTOR AND THE 31
884884 ATTORNEY GENERAL, THE NAME, ADDRESS, TELEPHONE NUMBER , AND PROOF OF 32
885885 THE APPOINTMENT AND AV AILABILITY OF THE AG ENT TO THE EXECUTIVE 33
886886 DIRECTOR AND THE ATTORNEY GENERAL. 34
887887 20 HOUSE BILL 1197
888888
889889
890890 (B) (1) THE ELECTRONIC SMOKIN G DEVICES MANUFACTUR ER SHALL 1
891891 PROVIDE: 2
892892
893893 (I) NOTICE TO THE EXECUTIVE DIRECTOR AND THE ATTORNEY 3
894894 GENERAL NOT LESS THAN 30 CALENDAR DAYS PRIOR TO THE TE RMINATION OF THE 4
895895 AUTHORITY OF AN AGEN T; AND 5
896896
897897 (II) PROOF TO THE SATISFA CTION OF THE ATTORNEY GENERAL 6
898898 OF THE APPOINTMENT O F A NEW AGENT NOT LE SS THAN 5 CALENDAR DAYS PRIOR 7
899899 TO THE TERMINATION O F AN EXISTING AGENT APPOINTMENT . 8
900900
901901 (2) IF AN AGENT TERMINATES AN AGENCY APPOINTMEN T, THE 9
902902 ELECTRONIC SMOKING D EVICES MANUFACTURER SHALL: 10
903903
904904 (I) NOTIFY THE EXECUTIVE DIRECTOR AND THE ATTORNEY 11
905905 GENERAL OF THE TERMIN ATION WITHIN 5 CALENDAR DAYS ; AND 12
906906
907907 (II) INCLUDE PROOF TO THE SATISFACTION OF THE ATTORNEY 13
908908 GENERAL OF THE APPOIN TMENT OF A NEW AGENT . 14
909909
910910 16.7–305. 15
911911
912912 (A) (1) NOT LATER THAN 21 DAYS AFTER THE END O F EACH CALENDAR 16
913913 MONTH, AND MORE FREQUENTLY IF SO DIRECTED BY TH E EXECUTIVE DIRECTOR, 17
914914 EACH LICENSED ELECTR ONIC SMOKING DEVICES WHOLESALER DISTRIBUT OR 18
915915 SHALL SUBMIT TRUE AN D ACCURATE INFORMATI ON IN THE FORM AND M ANNER THE 19
916916 EXECUTIVE DIRECTOR REQUIRES TO FACILITATE COMPLIANC E WITH THIS 20
917917 SUBTITLE, INCLUDING A LIST BY BRAND FAMILY AND BRA ND STYLE OF THE TOTA L 21
918918 QUANTITY OF ELECTRON IC SMOKING DEVICES S OLD BY THE LICENSED ELECTRON IC 22
919919 SMOKING DEVICES WHOL ESALER TO A LICENSED ELECTRONIC SMOKING D EVICE 23
920920 RETAILER OR LICENSED VAPE SHOP VENDOR DUR ING THE PREVIOUS CAL ENDAR 24
921921 MONTH. 25
922922
923923 (2) A LICENSED ELECTRONIC SMOKING DEVICES WHOL ESALER 26
924924 DISTRIBUTOR SHALL MA INTAIN AND MAKE AVAILABLE TO THE EXECUTIVE 27
925925 DIRECTOR AND THE COMPTROLLER FOR A PER IOD OF 5 YEARS ALL INVOICES A ND 28
926926 DOCUMENTATION OF SAL ES OF ALL ELECTRONIC SMOKING DEVICES AND ANY 29
927927 OTHER INFORMATION RE LIED ON IN REPORTING TO THE EXECUTIVE DIRECTOR 30
928928 AND THE COMPTROLLER . 31
929929
930930 (B) (1) THE EXECUTIVE DIRECTOR MAY DISCLOSE TO THE ATTORNEY 32
931931 GENERAL AND THE COMPTROLLER ANY INFOR MATION RECEIVED UNDE R THIS 33
932932 SUBTITLE AND REQUEST ED BY THE ATTORNEY GENERAL OR THE COMPTROLLER 34 HOUSE BILL 1197 21
933933
934934
935935 FOR THE PURPOSES OF DETERMINING COMPLIAN CE WITH AND ENFORCEM ENT OF 1
936936 THE PROVISIONS OF THIS S UBTITLE. 2
937937
938938 (2) THE EXECUTIVE DIRECTOR, THE COMPTROLLER , AND THE 3
939939 ATTORNEY GENERAL, ONLY FOR PURPOSES OF ENFORCEMENT OF THIS TITLE OR 4
940940 CORRESPONDING LAWS O F OTHER STATES : 5
941941
942942 (I) SHALL SHARE WITH EAC H OTHER THE INFORMAT ION 6
943943 RECEIVED UNDER THIS TITLE OR TITLE 11 OF THE TAX – GENERAL ARTICLE; AND 7
944944
945945 (II) MAY SHARE THE INFORM ATION WITH OTHER FED ERAL, 8
946946 STATE, OR LOCAL AGENCIES . 9
947947
948948 (C) IN ADDITION TO ANY OT HER INFORMATION REQU IRED TO BE 10
949949 SUBMITTED BY LAW , THE EXECUTIVE DIRECTOR OR THE ATTORNEY GENERAL MAY 11
950950 REQUIRE A LICENSED E LECTRONIC SMOKING DE VICES MANUFACTURER , LICENSED 12
951951 ELECTRONIC SMOKING D EVICES WHOLESALER DI STRIBUTOR, LICENSED 13
952952 ELECTRONIC SMOKING D EVICES WHOLESALER IM PORTER, LICENSED ELECTRONIC 14
953953 SMOKING DEVICES RETA ILER, OR LICENSED VAPE SHO P VENDOR TO SUBMIT ANY 15
954954 ADDITIONAL INFORMATI ON, INCLUDING INVOICES , RECEIPTS, CORRESPONDENCE , 16
955955 CONFIRMATIONS OF APP ROVAL, MARKETING, ADVERTISING MATERIAL S, AND 17
956956 SAMPLES OF PACKAGING OR LABELING OF EACH BRAND FAMILY , AS IS NECESSARY 18
957957 TO ENABLE THE ATTORNEY GENERAL TO DETERMINE WHET HER A LICENSED 19
958958 ELECTRONIC SMOKING D EVICES MANUFACTURER IS IN COMPLIANCE WIT H THIS 20
959959 SUBTITLE AND ALL OTH ER APPLICABLE FEDERA L, STATE, AND LOCAL LAWS . 21
960960
961961 (D) THE EXECUTIVE DIRECTOR OR THE ATTORNEY GENERAL MAY ADOPT 22
962962 REGULATIONS REQUIRIN G A LICENSEE TO SUBMIT AN Y ADDITIONAL INFORMA TION 23
963963 OR DOCUMENTATION AS NECESSARY TO DETERMI NE THE ACCURACY OF A NY 24
964964 INFORMATION SUBMITTE D OR OTHERWISE PROMO TE COMPLIANCE WITH T HIS 25
965965 SUBTITLE. 26
966966
967967 16.7–306. 27
968968
969969 (A) (1) IN ADDITION TO OR INS TEAD OF ANY OTHER CI VIL OR CRIMINAL 28
970970 REMEDY PROVIDED BY L AW, ON A DETERMINATION T HAT A LICENSED ELECT RONIC 29
971971 SMOKING DEVICES WHOL ESALER DISTRIBUTOR H AS VIOLATED § 16.7–303(D) OR § 30
972972 16.7–305(A) OF THIS SUBTITLE OR ANY REGULATION ADOPT ED UNDER THIS TITLE , 31
973973 THE EXECUTIVE DIRECTOR MAY REVOKE O R SUSPEND THE LICENSE O F A LICENSED 32
974974 ELECTRONIC SMOKING D EVICES WHOLESALER DI STRIBUTOR IN THE MAN NER 33
975975 PROVIDED IN §§ 16.7–208 AND 16.7–209 OF THIS TITLE. 34
976976 22 HOUSE BILL 1197
977977
978978
979979 (2) EACH SALE OF AND EACH OFFER TO SELL ELECTR ONIC SMOKING 1
980980 DEVICES IN VIOLATION OF § 16.7–303(D) OF THIS SUBTITLE SHALL CONST ITUTE A 2
981981 SEPARATE VIOLATION . 3
982982
983983 (3) THE EXECUTIVE DIRECTOR MAY ALSO IMP OSE A CIVIL PENALTY 4
984984 IN AN AMOUNT NOT TO EXCEED THE GREATER O F: 5
985985
986986 (I) 500% OF THE RETAIL VALUE OF THE ELECTRONIC SM OKING 6
987987 DEVICES SOLD OR OFFE RED FOR SALE; OR 7
988988
989989 (II) $5,000 ON A DETERMINATION O F VIOLATION OF § 8
990990 16.7–303(D) OF THIS SUBTITLE OR ANY REGULATIONS ADOP TED UNDER THAT 9
991991 SECTION. 10
992992
993993 (4) A PENALTY IMPOSED UNDE R THIS SECTION SHALL BE IMPOSED IN 11
994994 THE MANNER PROVIDED UNDER § 16.7–209 OF THIS TITLE. 12
995995
996996 (B) (1) ANY ELECTRONIC SMOKING DE VICES THAT HAVE BEEN SOLD, 13
997997 OFFERED FOR SALE , OR POSSESSED FOR SAL E IN THE STATE, OR IMPORTED FOR 14
998998 PERSONAL CONSUMPTION IN THE STATE IN VIOLATION OF § 16.7–303(D) OF THIS 15
999999 SUBTITLE SHALL BE DE EMED CONTRABAND UNDE R §§ 13–836, 13–837, AND 13–839 16
10001000 OF THE TAX – GENERAL ARTICLE, AND THOSE ELECTRONIC SMOKING DEVICES 17
10011001 SHALL BE SUBJECT TO SEIZURE AND FORFEITU RE AS PROVIDED IN TH OSE 18
10021002 SECTIONS. 19
10031003
10041004 (2) SEIZED AND FORFEITED ELECTRONIC SMOKING D EVICES MAY 20
10051005 NOT BE RESOLD AND MA Y BE DESTROYED . 21
10061006
10071007 (C) THE ATTORNEY GENERAL, ON BEHALF OF THE EXECUTIVE DIRECTOR, 22
10081008 MAY SEEK AN INJUNCTI ON TO RESTRAIN A THR EATENED OR ACTUAL VI OLATION OF 23
10091009 § 16.7–303(D) OR § 16.7–305(A) OR (D) OF THIS SUBTITLE BY A LICENSED 24
10101010 ELECTRONIC SMOKING D EVICES WHOLESALER DI STRIBUTOR AND COMPEL THE 25
10111011 LICENSED ELECTRONIC SMOKING DEVICES WHOL ESALER DISTRIBUTOR T O COMPLY 26
10121012 WITH THOSE SECTIONS . 27
10131013
10141014 (D) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , A 28
10151015 PERSON WHO SELLS , DISTRIBUTES, ACQUIRES, HOLDS, OWNS, POSSESSES, 29
10161016 TRANSPORTS , IMPORTS, OR CAUSE S TO BE IMPORTED ELE CTRONIC SMOKING 30
10171017 DEVICES FOR RESALE T O A CONSUMER THAT TH E PERSON KNOWS OR SH OULD HAVE 31
10181018 KNOWN ARE INTENDED F OR DISTRIBUTION OR S ALE IN THE STATE IN VIOLATION OF 32
10191019 § 16.7–303(D) OF THIS SUBTITLE IS GUILTY OF A MISDEMEA NOR, AND ON 33
10201020 CONVICTION IS SUBJECT TO A FINE NOT EXCEEDING $5,000 OR IMPRISONMENT NOT 34
10211021 EXCEEDING 1 YEAR OR BOTH. 35 HOUSE BILL 1197 23
10221022
10231023
10241024
10251025 (2) THE PENALTIES IN PARA GRAPH (1) OF THIS SUBSECTION D O NOT 1
10261026 APPLY TO A PERSON WH O POSSESSES LESS THA N $100 WORTH OF ELECTRONIC 2
10271027 SMOKING DEVICES SOLE LY FOR PERSONAL C ONSUMPTION AND NOT F OR RESALE TO 3
10281028 A CONSUMER . 4
10291029
10301030 16.7–307. 5
10311031
10321032 (A) A DETERMINATION BY THE ATTORNEY GENERAL TO OMIT OR TO 6
10331033 DELETE FROM THE DIRE CTORY DESCRIBED IN § 16.7–303(A) OF THIS SUBTITLE A 7
10341034 BRAND FAMILY , A BRAND STYLE , OR AN ELECTRONIC SMO KING DEVICES 8
10351035 MANUFACTURER SHALL B E SUBJECT TO REVIEW IN ACCORDANCE WITH TITLE 10, 9
10361036 SUBTITLE 2 OF THE STATE GOVERNMENT ARTICLE. 10
10371037
10381038 (B) THE ATTORNEY GENERAL AND THE EXECUTIVE DIRECTOR MAY ADOPT 11
10391039 REGULATIONS NECESSAR Y TO CARRY OUT THIS SUBTITLE. 12
10401040
10411041 (C) IN ANY ACTION BROUGHT BY THE STATE TO ENFORCE THIS SUBTITLE, 13
10421042 THE STATE SHALL BE ENTITL ED TO RECOVER THE CO STS OF INVESTIGATION , 14
10431043 EXPERT WITNESS FEES , COSTS OF THE ACTION , AND REASONABLE ATTOR NEY’S 15
10441044 FEES. 16
10451045
10461046 (D) (1) IF A COURT OR OTHER A DJUDICATIVE BODY DET ERMINES THAT A 17
10471047 PERSON HAS VIOLATED THIS SUBTIT LE, THE COURT OR OTHER A DJUDICATIVE BODY 18
10481048 SHALL ORDER ANY PROF ITS, GAIN, GROSS RECEIPTS , OR OTHER BENEFIT FRO M THE 19
10491049 VIOLATION TO BE PAID TO THE ATTORNEY GENERAL. 20
10501050
10511051 (2) UNLESS OTHERWISE EXPR ESSLY PROVIDED , THE REMEDIES OR 21
10521052 PENALTIES PROVID ED BY THIS SUBTITLE ARE CUMULATIVE TO EA CH OTHER, AND 22
10531053 TO THE REMEDIES OR P ENALTIES AVAILABLE U NDER ALL OTHER LAWS OF THE 23
10541054 STATE. 24
10551055
10561056 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 25
10571057 October 1, 2024. 26