EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb1197*
HOUSE BILL 1197
C2 4lr3098
CF 4lr3289
By: Delegate Rogers
Introduced and read first time: February 8, 2024
Assigned to: Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Business Regulation – Electronic Smoking Devices Manufacturers – 2
Certifications 3
FOR the purpose of requiring a certain tobacco products manufacturer and a certain 4
electronic smoking devices manufacturer to pay a certain cert ification fee; 5
authorizing the Executive Director of the Alcohol, Tobacco, and Cannabis 6
Commission and the Attorney General to take certain action relating to the licensure 7
of certain electronic smoking devices manufacturers, wholesalers, importers, and 8
retailers and vape shop vendors in certain circumstances; requiring an electronic 9
smoking devices manufacturer to execute and deliver a certain certification to the 10
Attorney General each year; requiring the Attorney General to develop and make 11
available to the public a certain directory listing certain electronic smoking devices 12
manufacturers; and generally relating to the regulation of tobacco products and 13
electronic smoking devices. 14
BY repealing and reenacting, with amendments, 15
Article – Business Regulation 16
Section 16–3A–01; 16–503(a) and 16–504(a) to be under the amended subtitle 17
“Subtitle 5. Certification Requirements for Tobacco Product Manufacturers”; 18
16.5–101(j), 16.7–101, and 16.7–102; and 16.7–202 through 16.7–204, 19
16.7–204.1, 16.7–207, 16.7–209, and 16.7–213.1 to be under the amended 20
subtitle “Subtitle 2. Electronic Smoking Devices Licenses” 21
Annotated Code of Maryland 22
(2015 Replacement Volume and 2023 Supplement) 23
BY repealing and reenacting, without amendments, 24
Article – Business Regulation 25
Section 16.5–101(a) and (d) and 16.7–201 26
Annotated Code of Maryland 27
(2015 Replacement Volume and 2023 Supplement) 28
2 HOUSE BILL 1197
BY adding to 1
Article – Business Regulation 2
Section 16–509; and 16.7–301 through 16.7–307 to be under the new subtitle 3
“Subtitle 3. Certification Requirements for Electronic Smoking Devices 4
Manufacturers” 5
Annotated Code of Maryland 6
(2015 Replacement Volume and 2023 Supplement) 7
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 8
That the Laws of Maryland read as follows: 9
Article – Business Regulation 10
16–3A–01. 11
(a) In this subtitle the following words have the meanings indicated. 12
(b) “Owner” means the person that owns or operates an establishment in which a 13
vending machine is located. 14
(c) (1) “Tobacco product” means any product that is: 15
(i) intended for human inhalation, absorption, ingestion, smoking, 16
heating, chewing, dissolving, or any other manner of consumption that is made of, derived 17
from, or contains: 18
1. tobacco; or 19
2. nicotine; or 20
(ii) an accessory or a component used in any manner of consumption 21
of a product described in item (i) of this paragraph. 22
(2) “Tobacco product” includes: 23
(i) cigarettes, cigars, pipe tobacco, chewing tobacco, snuff, and snus; 24
(ii) electronic smoking devices; and 25
(iii) filters, rolling papers, pipes, and liquids used in electronic 26
smoking devices regardless of nicotine content. 27
(3) “Tobacco product” does not include a drug, device, or combination 28
product authorized for sale AS A NICOTINE REPLAC EMENT PRODUCT by the U.S. Food 29
and Drug Administration under the Federal Food, Drug, and Cosmetic Act. 30
HOUSE BILL 1197 3
(d) “Vending machine” means any mechanical, electronic, or similar self–service 1
device that on insertion of a coin, coins, token, or other similar means dispenses a tobacco 2
product. 3
Subtitle 5. [Escrow] CERTIFICATION Requirements for [Nonparticipating] Tobacco 4
Product Manufacturers. 5
16–503. 6
(a) A tobacco product manufacturer whose cigarettes are sold in this State, 7
whether directly or through a distributor, retailer or similar intermediary, shall: 8
(1) execute and deliver, on a form prescribed by the Attorney General, a 9
certification to the Attorney General no later than the 30th day of April each year, certifying 10
under penalty of perjury that, as of the date of the certification, the tobacco product 11
manufacturer either: 12
[(1)] (I) is a participating manufacturer; or 13
[(2)] (II) is in full compliance with the Escrow Act; AND 14
(2) PAY TO THE COMPTROLLER A FEE OF $1,000. 15
16–504. 16
(a) Except as provided in subsection (b) of this section, the Attorney General shall 17
develop and make available for public inspection a directory listing: 18
(1) all tobacco product manufacturers that THE ATTORNEY GENERAL 19
HAS DETERMINED : 20
(I) have provided current and accurate certifications conforming to 21
the requirements of § 16–503 of this subtitle; and 22
(II) ARE IN COMPLIANCE WI TH ALL APPLICABLE FE DERAL, 23
STATE, AND LOCAL LAWS ; AND 24
(2) all brand families [that are] listed in [such] THE certifications THAT 25
ARE COMPLIANT WITH A LL APPLICABLE FEDERA L, STATE, AND LOCAL LAWS . 26
16–509. 27
THE REVENUES FROM THE CERTIFICATION FEE ES TABLISHED UNDER § 28
16–503 OF THIS SUBTITLE SHA LL BE DISTRIBUTED TO A SPECIAL FUND TO BE USED 29 4 HOUSE BILL 1197
BY THE OFFICE OF THE ATTORNEY GENERAL FOR ENFORCEMENT OF THIS 1
SUBTITLE. 2
16.5–101. 3
(a) In this title the following words have the meanings indicated. 4
(d) “License” means: 5
(1) a license issued by the Executive Director under § 16.5–204(a) of this 6
title to: 7
(i) act as a licensed other tobacco products manufacturer; 8
(ii) act as an other tobacco products wholesaler; or 9
(iii) act as an other tobacco products storage warehouse; or 10
(2) a license issued by the clerk under § 16.5–204(b) of this title to act as 11
an other tobacco products retailer or a tobacconist. 12
(j) (1) “Other tobacco products” means, except as provided in paragraph (3) of 13
this subsection, a product that is: 14
(i) intended for human consumption or likely to be consumed, 15
whether smoked, heated, chewed, absorbed, dissolved, inhaled, or ingested in any other 16
manner, and that is made of or derived from, or that contains: 17
1. tobacco; or 18
2. nicotine; or 19
(ii) a component or part used in a consumable product described 20
under item (i) of this paragraph. 21
(2) “Other tobacco products” includes: 22
(i) cigars, premium cigars, pipe tobacco, chewing tobacco, snuff, and 23
snus; and 24
(ii) filters, rolling papers, pipes, and hookahs. 25
(3) “Other tobacco products” does not include: 26
(i) cigarettes; 27
(ii) electronic smoking devices; 28 HOUSE BILL 1197 5
(iii) drugs, devices, or combination products authorized for sale AS A 1
NICOTINE REPLACEMENT PRODUCT by the U.S. Food and Drug Administration under 2
the Federal Food, Drug, and Cosmetic Act; or 3
(iv) tobacco pipes, as defined under § 11–104 of the Tax – General 4
Article. 5
16.7–101. 6
(a) In this title the following words have the meanings indicated. 7
(b) “County license” means a license issued by the clerk to sell electronic smoking 8
devices to consumers in a county. 9
(c) (1) “Electronic smoking device” means a device that can be used to deliver 10
aerosolized or vaporized nicotine to an individual inhaling from the device. 11
(2) “Electronic smoking device” includes: 12
(i) an electronic cigarette, an electronic cigar, an electronic cigarillo, 13
an electronic pipe, an electronic hookah, a vape pen, NICOTINE SALTS, and vaping liquid; 14
and 15
(ii) except as provided in paragraph (3) of this subsection, any 16
component, part, CARTRIDGE, TANK, or accessory of such a device regardless of whether 17
or not it is sold separately, including any substance intended to be aerosolized or vaporized 18
during use of the device. 19
(3) “Electronic smoking device” does not include: 20
(i) a drug, device, or combination product authorized for sale AS A 21
NICOTINE REPLACEMENT PRODUCT by the U.S. Food and Drug Administration under 22
the Federal Food, Drug, and Cosmetic Act; or 23
(ii) a battery or battery charger when sold separately. 24
(d) “Electronic smoking devices manufacturer” means a person that: 25
(1) manufactures, mixes, or otherwise produces electronic smoking devices 26
intended for sale in the State, including electronic smoking devices intended for sale in the 27
United States through [an importer] A LICENSED ELECTRONI C SMOKING DEVICES 28
WHOLESALER DISTRIBUTOR OR A LICENSED ELECTRONI C SMOKING DEVICES 29
WHOLESALER IMPORTER ; and 30
6 HOUSE BILL 1197
(2) (i) sells electronic smoking devices to [a consumer, if the consumer 1
purchases or orders the devices through the mail, a computer network, a telephonic 2
network, or another electronic network,] a licensed electronic smoking devices wholesaler 3
distributor[,] or a licensed electronic smoking devices wholesaler importer in the State; OR 4
(ii) if the electronic smoking devices manufacturer also holds a 5
license to act as an electronic smoking devices retailer or a vape shop vendor, sells electronic 6
smoking devices to consumers located in the State[; or 7
(iii) unless otherwise prohibited or restricted under local law, this 8
article, or the Criminal Law Article, distributes sample electronic smoking devices to a 9
licensed electronic smoking devices retailer or vape shop vendor]. 10
(e) “Electronic smoking devices retailer” means a person that: 11
(1) sells electronic smoking devices to consumers; OR 12
(2) holds electronic smoking devices for sale to consumers[; or 13
(3) unless otherwise prohibited or restricted under local law, this article, 14
the Criminal Law Article, or § 24–305 of the Health – General Article, distributes sample 15
electronic smoking devices to consumers in the State]. 16
(f) “Electronic smoking devices wholesaler distributer” means a person that: 17
(1) obtains [at least 70% of its] electronic smoking devices from [a holder 18
of an]: 19
(I) A LICENSED electronic smoking devices manufacturer [license 20
under this subtitle or a business entity located in the United States]; 21
(II) A LICENSED ELECTRONI C SMOKING DEVICES WH OLESALER 22
DISTRIBUTOR; OR 23
(III) A LICENSED ELECTRONI C SMOKING DEVICES WH OLESALER 24
IMPORTER; and 25
(2) (i) holds electronic smoking devices for sale to another person for 26
resale; or 27
(ii) sells electronic smoking devices to another person for resale. 28
(g) “Electronic smoking devices wholesaler importer” means a person that: 29
HOUSE BILL 1197 7
(1) obtains at least 70% of its electronic smoking devices from a [business 1
entity] LICENSED ELECTRONIC SMOKING DEVICES MANU FACTURER located in a 2
foreign country; and 3
(2) (i) holds electronic smoking devices for sale to another person for 4
resale; or 5
(ii) sells electronic smoking devices to another person for resale. 6
(h) “Executive Director” means the Executive Director of the Alcohol and Tobacco 7
Commission. 8
(i) “License” means: 9
(1) a license issued by the Executive Director under § 16.7–203(a) of this 10
title to: 11
(i) act as a licensed electronic smoking devices manufacturer; 12
(ii) act as a licensed electronic smoking devices wholesaler 13
distributor; or 14
(iii) act as a licensed electronic smoking devices wholesaler importer; 15
or 16
(2) a license issued by the clerk under § 16.7–203(b) of this title to: 17
(i) act as a licensed electronic smoking devices retailer; or 18
(ii) act as a licensed vape shop vendor. 19
(j) “Sell” means to exchange or transfer, or to agree to exchange or transfer, title 20
or possession of property, in any manner or by any means, for consideration. 21
(k) “Vape shop vendor” means an electronic smoking devices business that derives 22
at least 70% of its revenues, measured by average daily receipts, from the sale of electronic 23
smoking devices and related accessories. 24
(l) “Vaping liquid” means a liquid that: 25
(1) consists of propylene glycol, vegetable glycerin, or other similar 26
substance; 27
(2) may or may not contain natural or artificial flavors; 28
(3) may or may not contain nicotine; and 29
8 HOUSE BILL 1197
(4) converts to vapor intended for inhalation when heated in an electronic 1
device. 2
16.7–102. 3
(a) The Executive Director may delegate any power or duty of the Executive 4
Director under this title. 5
(b) Any person licensed under Title 16 or Title 16.5 of this article[, or an affiliate, 6
as defined under § 16–402(c) of this article, of a person licensed under Title 16 of this 7
article] WHO IS ALSO SEEKING TO MANUFACTURE , DISTRIBUTE, OR SELL 8
ELECTRONIC SMOKING D EVICES: 9
(1) [is authorized to] MUST OBTAIN A LICENSE TO manufacture, 10
distribute, or sell electronic smoking devices pursuant to this title in the same capacity as 11
the person is licensed under Title 16 or Title 16.5 of this article; and 12
(2) may not be required to [obtain an additional license] PAY ANY 13
ADDITIONAL APPLICA TION FEE under this title. 14
Subtitle 2. Electronic [Nicotine Delivery Systems] SMOKING DEVICES Licenses. 15
16.7–201. 16
(a) A person must hold an appropriate license before the person may act as: 17
(1) an electronic smoking devices manufacturer; 18
(2) an electronic smoking devices retailer; 19
(3) an electronic smoking devices wholesaler distributor; 20
(4) an electronic smoking devices wholesaler importer; or 21
(5) a vape shop vendor. 22
(b) A place of business in which a person acts as an electronic smoking devices 23
retailer or a vape shop vendor must hold an appropriate license. 24
16.7–202. 25
(a) [(1)] An applicant for a license to act as an electronic smoking devices 26
manufacturer, electronic smoking devices wholesaler distributor, or electronic smoking 27
devices wholesaler importer shall: 28
HOUSE BILL 1197 9
[(i)] (1) obtain an appropriate [county] license by submitting an 1
application to the Executive Director on the form and containing the information that the 2
Executive Director requires; 3
[(ii)] (2) indicate the licenses for which the applicant is applying; 4
and 5
[(iii)] (3) [except as provided in paragraph (2) of this subsection,] 6
pay to the Executive Director a fee of [$25 for each license for which the applicant applies.]: 7
[(2)] (I) [An applicant] $750 FOR AN APPLICATION for a license to act 8
as an electronic smoking devices wholesaler distributor or electronic smoking devices 9
wholesaler importer [shall pay to the Executive Director a fee of $150]; AND 10
(II) $1,000 FOR AN APPLICATION F OR A LICENSE TO ACT AS AN 11
ELECTRONIC SMOKING D EVICES MANUFACTURER . 12
(b) (1) An applicant for a license to act as an electronic smoking devices 13
retailer or a vape shop vendor: 14
(i) shall obtain a county license by submitting to the clerk an 15
application for each permanent or temporary place of business located in the same 16
enclosure and operated by the same applicant; and 17
(ii) except as provided in paragraph (2) of this subsection, shall pay 18
to the clerk a fee of [$25] $30. 19
(2) The application shall: 20
(i) be made on the form that the clerk requires; and 21
(ii) contain the information that the Executive Director requires. 22
(c) A licensee shall display a license in the way that the Executive Director 23
requires by regulation. 24
(d) If a person has had a license revoked under § 16.7–207 of this subtitle, the 25
person may not reapply for a license within 1 year after the date when the prior license was 26
revoked. 27
16.7–203. 28
(a) The Executive Director shall issue an appropriate license to each applicant 29
that meets the requirements of this subtitle for a license to act as an electronic smoking 30
devices manufacturer, electronic smoking devices wholesaler distributor, or electronic 31
smoking devices wholesaler importer. 32 10 HOUSE BILL 1197
(b) The clerk shall issue to each applicant that meets the requirements of this 1
subtitle a license to act as an electronic smoking devices retailer or a vape shop vendor. 2
(c) The clerk shall forward a copy of an application received for each license 3
issued under subsection (b) of this section to the Executive Director AND THE ATTORNEY 4
GENERAL within 30 days after issuance of the license. 5
16.7–204. 6
(a) An electronic smoking devices manufacturer license authorizes the licensee 7
to: 8
(1) sell electronic smoking devices to: 9
(i) a licensed electronic smoking devices wholesaler [located in the 10
State] DISTRIBUTOR ; OR 11
(ii) [an electronic smoking devices wholesaler or retailer located 12
outside the State if the electronic smoking devices may be sold lawfully in Maryland] A 13
LICENSED ELECTRONIC SMOKING DEVICE S WHOLESALER IMPORTE R; AND 14
[(iii) a licensed vape shop vendor; and 15
(iv) a consumer if: 16
1. the licensee manufactured the devices; and 17
2. the consumer purchases or orders the devices through the 18
mail, a computer network, a telephonic network, or another electronic network;] 19
(2) if the electronic smoking devices manufacturer licensee also holds a 20
license to act as an electronic smoking devices retailer or a vape shop vendor, transfer 21
electronic smoking devices to inventory for sale under the retail license or vape shop 22
license[; and 23
(3) except as otherwise prohibited or restricted under local law, this article, 24
or the Criminal Law Article, distribute electronic smoking devices products to a licensed 25
electronic smoking devices retailer or vape shop vendor]. 26
(b) An electronic smoking devices retailer license authorizes the licensee to: 27
(1) sell electronic smoking devices to consumers; 28
HOUSE BILL 1197 11
(2) buy electronic smoking devices from [an] A LICENSED electronic 1
smoking devices wholesaler distributor [or electronic smoking devices wholesaler 2
importer]; AND 3
(3) if the electronic smoking devices retailer licensee also holds a license to 4
act as an electronic smoking devices manufacturer, sell at retail electronic smoking devices 5
manufactured under the manufacturer license[; and 6
(4) except as otherwise prohibited or restricted under local law, this article, 7
the Criminal Law Article, or § 24–305 of the Health – General Article, distribute sample 8
electronic smoking devices products to consumers in the State]. 9
(c) An electronic smoking devices wholesaler distributor license [or electronic 10
smoking devices wholesaler importer license] authorizes the licensee to: 11
(1) sell electronic smoking devices to LICENSED electronic smoking devices 12
retailers and LICENSED vape shop vendors; 13
(2) buy electronic smoking devices directly from [an] A LICENSED 14
electronic smoking devices manufacturer [and an], A LICENSED electronic smoking devices 15
wholesaler distributor, or A LICENSED electronic smoking devices wholesaler importer; 16
(3) hold electronic smoking devices; and 17
(4) sell electronic smoking devices to another licensed electronic smoking 18
devices wholesaler distributor or electronic smoking devices wholesaler importer. 19
(d) A vape shop vendor license authorizes the licensee to: 20
(1) sell electronic smoking devices as a vape shop vendor; 21
(2) if the vape shop vendor licensee also holds a license to act as an 22
electronic smoking devices manufacturer, sell at retail electronic smoking devices 23
manufactured under the manufacturer license; and 24
(3) buy electronic smoking devices from [an electronic smoking devices 25
manufacturer, an] A LICENSED electronic smoking devices wholesaler distributor[, or an 26
electronic smoking devices wholesaler importer]. 27
(E) AN ELECTRONIC SMOKING DEVICES WHOLESALER I MPORTER LICENSE 28
AUTHORIZES THE LICEN SEE TO: 29
(1) SELL ELECTRONIC SMOK ING DEVICES TO A LIC ENSED 30
ELECTRONIC SMOKING D EVICES WHOLESALER DI STRIBUTOR OR A LICEN SED 31
ELECTRONI C SMOKING DEVICES WH OLESALER IMPORTER ; 32 12 HOUSE BILL 1197
(2) BUY ELECTRONIC SMOKI NG DEVICES DIRECTLY FROM A 1
LICENSED ELECTRONIC SMOKING DEVICES MANU FACTURER, A LICENSED 2
ELECTRONIC SMOKING D EVICES WHOLESALER IM PORTER, OR A LICENSED 3
ELECTRONIC SMOKING D EVICES WHOLESALER DI STRIBUTOR; AND 4
(3) HOLD ELECTRONIC SMOK ING DEVICES. 5
16.7–204.1. 6
(a) A retail OR VAPE SHOP VENDOR licensee shall post a sign in a location that 7
is clearly visible to the consumer that states: 8
“No person under the age of 21 may be sold tobacco products without military 9
identification”. 10
(b) The sign required under this section shall be written in letters at least 11
one–half inch high. 12
16.7–207. 13
(a) Subject to the hearing provisions of § 16.7–208 of this subtitle, the Executive 14
Director may deny a license to an applicant, reprimand a licensee, or suspend or revoke a 15
license if the applicant or licensee: 16
(1) fraudulently or deceptively obtains or attempts to obtain a license for 17
the applicant, licensee, or another person; 18
(2) fraudulently or deceptively uses a license; 19
(3) buys electronic smoking devices for resale: 20
(i) in violation of a license; or 21
(ii) from a person [that is not a licensed electronic smoking devices 22
manufacturer or a licensed electronic smoking devices wholesaler] IN VIOLATION OF § 23
16.7–211(A) OF THIS SUBTITLE ; 24
(4) is convicted, under the laws of the United States or of any other state, 25
of: 26
(i) a felony; or 27
(ii) a misdemeanor that is a crime of moral turpitude and is directly 28
related to the fitness and qualification of the applicant or licensee; 29
HOUSE BILL 1197 13
(5) violates federal, State, or local law regarding the sale of electronic 1
smoking devices; or 2
(6) violates this title, Title 16, or Title 16.5 of this article or regulations 3
adopted under these titles. 4
(b) Subject to the hearing provisions of § 16.7–208 of this subtitle, the Executive 5
Director shall deny a license to any applicant that has had a license revoked under this 6
section until: 7
(1) 1 year has passed since the license was revoked; and 8
(2) [it] THE APPLICANT satisfactorily [appears] DEMONSTRATES to the 9
Executive Director that the applicant will comply with this title and any regulations 10
adopted under this title. 11
(c) Prior to the issuance or renewal of any license, the Executive Director OR THE 12
ATTORNEY GENERAL shall conduct an investigation with regard to: 13
(1) the applicant; 14
(2) the business to be operated; and 15
(3) the facts set forth in the application. 16
16.7–209. 17
(a) Subject to the notice requirement of subsection (c) of this section, if a licensee 18
engages in an act or omission that is grounds for discipline under § 16.7–207 of this subtitle, 19
the Executive Director may suspend the license for a consecutive period of time that: 20
(1) for a first offense, is not less than 5 and not more than 20 business days; 21
and 22
(2) for a subsequent offense, is not less than 20 business days and not more 23
than 6 months. 24
(b) Subject to the notice requirement under subsection (c) of this section, the 25
Executive Director may revoke a license if a licensee willfully [and persistently] engages 26
in an act or omission that is grounds for discipline under § 16.7–207(a) of this subtitle. 27
(c) If a license is suspended or revoked under this section: 28
(1) the Executive Director shall give the licensee notice of the suspension 29
or revocation; and 30
14 HOUSE BILL 1197
(2) the suspension or revocation of a license may not bar or abate a 1
disciplinary action under this section. 2
(d) The transfer, renewal, or expiration of a license may not bar or abate a 3
disciplinary action under this section. 4
(e) (1) (i) Except as provided in subparagraph (ii) of this paragraph, if a 5
license issued under the provisions of this subtitle is suspended or revoked by the Executive 6
Director, the licensee may, before the effective date of the suspension or revocation, petition 7
the Executive Director for permission to make an offer of compromise consisting of a sum 8
of money in lieu of serving the suspension or revocation. 9
(ii) Subparagraph (i) of this paragraph does not apply if a license is 10
suspended or revoked for a violation of § 24–305 of the Health – General Article, or any 11
other federal, State, or local law prohibiting the sale of electronic smoking devices to 12
individuals under the age of 21 years. 13
(2) Money paid in lieu of suspension or revocation shall be paid into the 14
General Fund of the State. 15
(3) [An offer of compromise may not exceed $2,000 for retail licensees or 16
$50,000 for other licensees. 17
(4)] The Executive Director may accept the offer of compromise if: 18
(i) the public welfare and morals would not be impaired by allowing 19
the licensee to operate during the period set for the suspension or revocation; and 20
(ii) the payment of the sum of money will achieve the desired 21
disciplinary purposes. 22
[(5)] (4) The Executive Director may adopt regulations to carry out this 23
subsection. 24
16.7–213.1. 25
(a) The Maryland Department of Health OR THE EXECUTIVE DIRECTOR may 26
conduct unannounced inspections of licensed retailers OR LICENSED VAPE SHO P 27
VENDORS to ensure the licensee’s compliance with the provisions of this title and § 10–107 28
of the Criminal Law Article. 29
(b) The Maryland Department of Health may use an individual under the age of 30
21 years to assist in conducting an inspection under this section. 31
SUBTITLE 3. CERTIFICATION REQUIREMENTS FOR ELECTRONIC SMOKING 32
DEVICES MANUFACTURERS . 33 HOUSE BILL 1197 15
16.7–301. 1
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 2
INDICATED. 3
(B) (1) “BRAND FAMILY ” MEANS ALL STYLES AND FLAVORS OF 4
ELECTRONIC SMOKING D EVICES SOLD UNDER TH E SAME TRADEMARK , REGARDLESS 5
OF WHETHER THE ELECT RONIC SMOKING DEVICE S ARE DIFFERENTIATED FROM 6
ONE ANOTHER BY MEANS OF ADDITIONAL MODIFI ERS OR DESCRIPTORS D EPICTING 7
FLAVORS, SHAPES, METHOD OF DELIVERY , DEVICE MODEL , POTENCY, NICOTINE 8
LEVEL, OR ANY OTHER DIFFERE NTIATION. 9
(2) “BRAND FAMILY ” INCLUDES ANY USE OF A BRAND NAME , 10
TRADEMARK , LOGO, SYMBOL, MOTTO, SELLING MESSAGE , RECOGNIZABLE PATTERN 11
OF COLORS, OR ANY OTHER INDICIA OF PRODUCT IDENTIFIC ATION IDENTICAL OR 12
SIMILAR TO, OR IDENTIFIABLE WITH , A PREVIOUSLY KNOW N BRAND OF ELECTRONI C 13
SMOKING DEVICES , OTHER TOBACCO PRODUC TS, OR ELECTRONIC SMOKIN G DEVICE 14
PRODUCTS. 15
(C) “BRAND STYLE” MEANS EACH INDIVIDUA L STYLE OR FLAVOR OF AN 16
ELECTRONIC SMOKING D EVICE SOLD WITHIN A BRAND FAMILY , BUT 17
DIFFERENTIATED FROM ONE ANOTHER BY MEANS OF ADDITION AL ADJECTIVES , 18
MODIFIERS, OR DESCRIPTORS , INCLUDING THOSE DEPI CTING FLAVORS , SHAPES, 19
METHOD OF DELIVERY , DEVICE MODEL , POTENCY, OR NICOTINE LEVEL . 20
(D) “DIRECTORY” MEANS THE LIST PUBLI SHED BY THE ATTORNEY 21
GENERAL OF APPROVED E LECTRONIC SMOKING DEVICES MANU FACTURERS THAT 22
HAVE SUBMITTED A CER TIFICATION IN ACCORD ANCE WITH THIS SUBTI TLE AND THE 23
BRAND FAMILIES AND B RAND STYLES OF THEIR ELECTRONIC SMOKING D EVICES 24
THAT HAVE BEEN DETER MINED BY THE ATTORNEY GENERAL AS CONFORMING TO 25
THE REQUIREME NTS OF § 16.7–302 OF THIS SUBTITLE. 26
16.7–302. 27
(A) (1) AN ELECTRONIC SMOKING DEVICES MANUFACTURER WHOSE 28
PRODUCTS ARE SOLD IN THE STATE SHALL EXECUTE A ND DELIVER, ON A FORM 29
PRESCRIBED BY THE ATTORNEY GENERAL, A CERTIFICATION TO T HE ATTORNEY 30
GENERAL NOT LA TER THAN JUNE 30 EACH YEAR, CERTIFYING UNDER PEN ALTY OF 31
PERJURY THAT , AS OF THE DATE OF TH E CERTIFICATION , THE ELECTRONIC 32
SMOKING DEVICES MANU FACTURER HAS RECEIVE D AUTHORIZATION FROM THE 33
U.S. FOOD AND DRUG ADMINISTRATION TO SEL L ITS ELECTRONIC SMO KING 34
DEVICES IN THE UNITED STATES. 35 16 HOUSE BILL 1197
(2) FOR EACH CERTIFICATIO N SUBMITTED UNDER PA RAGRAPH (1) 1
OF THIS SUBSECTION A N ELECTRONIC SMOKING DEVICES MANUFACTURER SHALL 2
PAY TO THE ATTORNEY GENERAL A FEE OF $1,000. 3
(B) IN THE CERTIFICATION SUBMITTED TO THE ATTORNEY GENERAL 4
UNDER THIS SECTION , THE ELECTRONIC SMOKI NG DEVICES MANUFACTU RER 5
SHALL: 6
(1) IDENTIFY ALL OF ITS ELECTRONIC SMOKING D EVICE BRAND 7
FAMILIES THAT ARE BE ING SOLD IN THE UNITED STATES AS OF THE DATE OF 8
CERTIFICATION ; 9
(2) IDENTIFY ANY ELECTRO NIC SMOKING DEVICES BRAND FAMILY 10
THAT THE ELECTRONIC SMOKING DEVICES MANU FACTURER SEEKS TO SE LL IN THE 11
STATE IN THE UPCOMING FISCAL YEAR; 12
(3) INDICATE WITH AN AST ERISK ANY BRAND FAMI LY SOLD IN THE 13
STATE DURING THE PREC EDING 3 CALENDAR YEARS THAT ARE NO LONGER SOLD IN 14
THE STATE AS OF THE DATE OF CERTIFICATION ; 15
(4) IDENTIFY BY NAME AND ADDRESS ANY OTHER MA NUFACTURER OF 16
SUCH BRAND FAMILIES IN THE PRECEDING OR CURRENT FISCAL YEAR ; 17
(5) INDICATE WHETHER THE ELECTRONIC SMOKING D EVICES BRAND 18
FAMILY BEING CERTIFI ED INCLUDES AN AEROSOLIZ ING DEVICE OR THE JU ICE, 19
SALT, OR OTHER CONSUMABLE SUBSTANCE TO BE AERO SOLIZED OR BOTH ; 20
(6) INDICATE BY NUMBER T HE DECISION SUMMARY FOR THE MARKET 21
ORDER AUTHORIZING TH E ELECTRONIC SMOKING DEVICE TO BE SOLD IN THE 22
UNITED STATES AND INCLUDE A COPY OF TH E AUTHORIZATION BY T HE U.S. FOOD 23
AND DRUG ADMINISTRATION ; AND 24
(7) IDENTIFY ANY OTHER I NFORMATION REQUIRED BY THE 25
ATTORNEY GENERAL TO CONFIRM TH AT THE ELECTRONIC SM OKING DEVICES 26
MANUFACTURER AND ITS BRAND FAMILIES ARE I N COMPLIANCE WI TH THIS TITLE 27
AND ANY OTHER APPLIC ABLE FEDERAL , STATE, AND LOCAL LAWS . 28
(C) AN ELECTRONIC SMOKING DEVICES MANUFACTURER SHALL FURTHER 29
CERTIFY THAT THE ELE CTRONIC SMOKING DEVI CES MANUFACTURER : 30
HOUSE BILL 1197 17
(1) IS REGISTERED TO DO BUSINESS IN THE STATE OR HAS 1
APPOINTED A RESIDENT AGENT F OR SERVICE OF PROCES S AND PROVIDED NOTIC E 2
OF THE APPOINTMENT A S REQUIRED UNDER § 16.7–304 OF THIS SUBTITLE; 3
(2) IS LICENSED BY THE EXECUTIVE DIRECTOR TO OPERATE A S AN 4
ELECTRONIC SMOKING D EVICES MANUFACTURER IN THE STATE; AND 5
(3) IS IN FULL COMPLIANCE WITH ALL APPLICABLE LOCAL, STATE, 6
AND FEDERAL LAWS REG ARDING THE MANUFACTU RE AND SALE OF ELECT RONIC 7
SMOKING DEVICES . 8
(D) (1) AN ELECTRONIC SMOKING DEVICES MANUFACTURER MAY NOT 9
INCLUDE A BRAND FAMI LY OR BRAND STYLE IN ITS CERTIFICATIO N UNLESS IT 10
AFFIRMS UNDER PENALT Y OF PERJURY THAT : 11
(I) IT IS THE ENTITY THA T FABRICATES , MANUFACTURES , 12
MIXES, OR OTHERWISE PRODUCE S THE ELECTRONIC SMO KING DEVICES INCLUDE D 13
IN THE CERTIFICATION ; AND 14
(II) TO THE BEST OF THE E LECTRONIC SMOKING DE VICES 15
MANUFACTURER ’S KNOWLEDGE , NO OTHER ELECTRONIC SMOKING DEVICES 16
MANUFACTURER IS FABR ICATING, MANUFACTURING , MIXING, OR OTHERWISE 17
PRODUCING ELECTRONIC SMOKING DEVICES FOR SALE IN THE UNITED STATES 18
WITH THE SAME BR AND NAME AS A BRAND FAMILY INCLUDED IN T HE 19
CERTIFICATION . 20
(2) NOTHING IN THIS SECTI ON MAY BE CONSTRUED AS LIMITING OR 21
OTHERWISE AFFECTING THE STATE’S RIGHT TO REFUSE TO INCLUDE AN 22
ELECTRONIC SMOKING D EVICE ON THE DIRECTO RY IF THE ATTORNEY GENERAL 23
HAS REASON TO BELIEVE THA T A BRAND FAMILY OR BRAND STYLE INCLUDED IN A 24
CERTIFICATION IS AN ELECTRONIC SMOKING D EVICE PRODUCED BY A DIFFERENT 25
ELECTRONIC SMOKING D EVICES MANUFACTURER . 26
(E) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , AN 27
ELECTRONIC SMOKING D EVICES MANUFACTURER THAT HAS NOT PREVIOU SLY 28
SUBMITTED A CERTIFIC ATION WITH THE STATE OR THAT IS NOT LISTED IN THE 29
DIRECTORY MAY SUBMIT AN INITIAL CERTIFICA TION WITH THE ATTORNEY 30
GENERAL AT ANY POINT DURING THE YEAR . 31
(2) AN ELECTRONIC SMOKING DEVICES MAN UFACTURER THAT 32
SUBMITS AN INITIAL C ERTIFICATION UNDER P ARAGRAPH (1) OF THIS SUBSECTION 33
MUST SUBMIT AN ANNUA L CERTIFICATION IN A CCORDANCE WITH SUBSE CTION (A) 34
OF THIS SECTION, UNLESS THE INITIAL C ERTIFICATION WAS SUB MITTED WITHIN 90 35 18 HOUSE BILL 1197
DAYS OF THE DATE THE ANNUAL SUBMISSION IS REQ UIRED UNDER SUBSECTI ON (A) 1
OF THIS SECTION. 2
(F) AN ELECTRONIC SMOKING DEVICES MANUFACTURER LISTED ON THE 3
DIRECTORY SHALL UPDA TE ITS LISTING ON TH E DIRECTORY TO REFLE CT ANY 4
ADDITION, DISCONTINUANCE , OR MODIFICATION TO I TS LISTED ELECTR ONIC 5
SMOKING DEVICE BRAND FAMILIES BY EXECUTIN G AND DELIVERING A 6
SUPPLEMENTAL CERTIFI CATION TO THE ATTORNEY GENERAL NOT LESS THAN 30 7
CALENDAR DAYS PRIOR TO THE CHANGE . 8
16.7–303. 9
(A) EXCEPT AS PROVIDED IN SUBSECTION (B)(1) AND (2) OF THIS SECTION, 10
THE ATTORNEY GENERAL SHALL DEVELOP AND MAKE AVAILABLE F OR PUBLIC 11
INSPECTION A DIRECTO RY LISTING ALL ELECT RONIC SMOKING DEVICE S 12
MANUFACTURERS THAT H AVE PROVIDED CURRENT AND ACCURATE 13
CERTIFICATIONS COMPL YING WITH THE REQUIR EMENTS OF § 16.7–302 OF THIS 14
SUBTITLE AND ALL APPROVED ELEC TRONIC SMOKING DEVIC E BRAND FAMILIES AND 15
BRAND STYLES INCLUDE D IN THE CERTIFICATI ONS. 16
(B) (1) THE ATTORNEY GENERAL MAY NOT INCLU DE OR RETAIN ON THE 17
DIRECTORY ANY BRAND FAMILIES OR BRAND ST YLES OF ANY ELECTRON IC SMOKING 18
DEVICES MANUFAC TURER THAT FAILS TO PROVIDE THE REQUIRED CERTIFICATION , 19
FEE, OR WHOSE CERTIFICATI ON THE ATTORNEY GENERAL DETERMINES IS NOT IN 20
COMPLIANCE WITH § 16.7–302 OF THIS SUBTITLE , UNLESS THE ATTORNEY 21
GENERAL HAS DETERMINE D THAT THE VIOLATION HAS BEEN CURED TO TH E 22
SATISFACTION OF THE ATTORNEY GENERAL. 23
(2) THE ATTORNEY GENERAL SHALL UPDATE THE DIRECTORY AS 24
NECESSARY TO CORRECT MISTAKES AND TO ADD OR REMOVE AN ELECTRO NIC 25
SMOKING DEVICES MANU FACTURER OR ANY BRAN D FAMILY OR BRAND ST YLE OF AN 26
ELECTRONIC SMOKING D EVICE TO KEEP THE DIRECTOR Y IN CONFORMITY WITH THE 27
REQUIREMENTS OF THIS SUBTITLE. 28
(3) EACH LICENSED ELECTRO NIC SMOKING DEVICES WHOLESALER 29
DISTRIBUTOR AND LICE NSED ELECTRONIC SMOK ING DEVICES WHOLESAL ER 30
IMPORTER SHALL PROVI DE TO THE ATTORNEY GENERAL, AND UPDATE AS 31
NECESSARY, CURRENT CONTACT INFO RMATION FOR THE PURP OSE OF RECEIVING 32
ANY NOTIFICATIONS TH AT MAY BE REQUIRED B Y THIS SUBTITLE , INCLUDING A 33
POINT OF CONTACT PER SON, A PHYSICAL LOCATION , AND AN ELECTRONIC MA IL 34
ADDRESS. 35
HOUSE BILL 1197 19
(C) AN ELECTRONIC SMOKING DEVICES MANUFACTURER SHALL MA INTAIN 1
ALL INVOICES AND DOC UMENTATION OF SALES , ALL APPROVAL LETTERS AND 2
UNDERLYING APPLICATI ONS AND MATERIALS , AND ANY OTHER INFORM ATION 3
RELIED ON FOR ITS CE RTIFICATION FOR A MI NIMUM PERIOD OF 5 YEARS, UNLESS 4
OTHERWISE REQUIRED B Y LAW TO MAINTAIN THEM FOR A GREATER PERIOD OF 5
TIME. 6
(D) AN INDIVIDUAL MAY NOT SELL, OFFER FOR SALE , POSSESS FOR SALE IN 7
THE STATE, OR IMPORT FOR PERSON AL CONSUMPTION IN TH E STATE, ANY: 8
(1) ELECTRONIC SMOKING D EVICE, BRAND FAMILY , OR BRAND STYLE 9
NOT INCLUDE D ON THE DIRECTORY ; OR 10
(2) ELECTRONIC SMOKING D EVICES MANUFACTURED BY AN 11
ELECTRONIC SMOKING D EVICES MANUFACTURER THAT IS NOT INCLUDED ON THE 12
DIRECTORY. 13
16.7–304. 14
(A) (1) ANY NONRESIDENT OR FO REIGN ELECTRONIC SMO KING DEVICES 15
MANUFACTURER THAT HA S NOT REGISTERED TO DO BUS INESS IN THE STATE AS A 16
FOREIGN CORPORATION OR BUSINESS ENTITY S HALL APPOINT , AND CONTINUALLY 17
ENGAGE WITHOUT INTER RUPTION, THE SERVICES OF AN A GENT IN THE STATE TO 18
ACT AS AN AGENT FOR THE SERVICE OF PROCE SS ON THE NONRESIDEN T OR 19
FOREIGN ELECTRONIC SMOKING DEVICES MANUFACTURER , BEFORE ITS BRAND 20
FAMILIES OR BRAND ST YLES MAY BE INCLUDED OR RETAINED ON THE D IRECTORY 21
DESCRIBED IN § 16.7–303 OF THIS SUBTITLE . 22
(2) ANY PROCESS AND ANY A CTION OR PROCEEDING AGAINST A 23
NONRESIDENT OR FOREI GN ELECTRONIC SMOKING DEVI CES MANUFACTURER 24
CONCERNING OR ARISIN G OUT OF THE ENFORCE MENT OF THIS SUBTITL E OR THIS 25
ARTICLE MAY BE SERVE D IN ANY MANNER AUTH ORIZED BY LAW. 26
(3) (I) THE SERVICE OF PROCES S ON THE DESIGNATED AGENT 27
SHALL CONSTITUTE LEG AL AND VALID SER VICE OF PROCESS ON T HE ELECTRONIC 28
SMOKING DEVICES MANU FACTURER. 29
(II) THE ELECTRONIC SMOKIN G DEVICES MANUFACTUR ER 30
SHALL PROVIDE , TO THE SATISFACTION OF THE EXECUTIVE DIRECTOR AND THE 31
ATTORNEY GENERAL, THE NAME, ADDRESS, TELEPHONE NUMBER , AND PROOF OF 32
THE APPOINTMENT AND AV AILABILITY OF THE AG ENT TO THE EXECUTIVE 33
DIRECTOR AND THE ATTORNEY GENERAL. 34
20 HOUSE BILL 1197
(B) (1) THE ELECTRONIC SMOKIN G DEVICES MANUFACTUR ER SHALL 1
PROVIDE: 2
(I) NOTICE TO THE EXECUTIVE DIRECTOR AND THE ATTORNEY 3
GENERAL NOT LESS THAN 30 CALENDAR DAYS PRIOR TO THE TE RMINATION OF THE 4
AUTHORITY OF AN AGEN T; AND 5
(II) PROOF TO THE SATISFA CTION OF THE ATTORNEY GENERAL 6
OF THE APPOINTMENT O F A NEW AGENT NOT LE SS THAN 5 CALENDAR DAYS PRIOR 7
TO THE TERMINATION O F AN EXISTING AGENT APPOINTMENT . 8
(2) IF AN AGENT TERMINATES AN AGENCY APPOINTMEN T, THE 9
ELECTRONIC SMOKING D EVICES MANUFACTURER SHALL: 10
(I) NOTIFY THE EXECUTIVE DIRECTOR AND THE ATTORNEY 11
GENERAL OF THE TERMIN ATION WITHIN 5 CALENDAR DAYS ; AND 12
(II) INCLUDE PROOF TO THE SATISFACTION OF THE ATTORNEY 13
GENERAL OF THE APPOIN TMENT OF A NEW AGENT . 14
16.7–305. 15
(A) (1) NOT LATER THAN 21 DAYS AFTER THE END O F EACH CALENDAR 16
MONTH, AND MORE FREQUENTLY IF SO DIRECTED BY TH E EXECUTIVE DIRECTOR, 17
EACH LICENSED ELECTR ONIC SMOKING DEVICES WHOLESALER DISTRIBUT OR 18
SHALL SUBMIT TRUE AN D ACCURATE INFORMATI ON IN THE FORM AND M ANNER THE 19
EXECUTIVE DIRECTOR REQUIRES TO FACILITATE COMPLIANC E WITH THIS 20
SUBTITLE, INCLUDING A LIST BY BRAND FAMILY AND BRA ND STYLE OF THE TOTA L 21
QUANTITY OF ELECTRON IC SMOKING DEVICES S OLD BY THE LICENSED ELECTRON IC 22
SMOKING DEVICES WHOL ESALER TO A LICENSED ELECTRONIC SMOKING D EVICE 23
RETAILER OR LICENSED VAPE SHOP VENDOR DUR ING THE PREVIOUS CAL ENDAR 24
MONTH. 25
(2) A LICENSED ELECTRONIC SMOKING DEVICES WHOL ESALER 26
DISTRIBUTOR SHALL MA INTAIN AND MAKE AVAILABLE TO THE EXECUTIVE 27
DIRECTOR AND THE COMPTROLLER FOR A PER IOD OF 5 YEARS ALL INVOICES A ND 28
DOCUMENTATION OF SAL ES OF ALL ELECTRONIC SMOKING DEVICES AND ANY 29
OTHER INFORMATION RE LIED ON IN REPORTING TO THE EXECUTIVE DIRECTOR 30
AND THE COMPTROLLER . 31
(B) (1) THE EXECUTIVE DIRECTOR MAY DISCLOSE TO THE ATTORNEY 32
GENERAL AND THE COMPTROLLER ANY INFOR MATION RECEIVED UNDE R THIS 33
SUBTITLE AND REQUEST ED BY THE ATTORNEY GENERAL OR THE COMPTROLLER 34 HOUSE BILL 1197 21
FOR THE PURPOSES OF DETERMINING COMPLIAN CE WITH AND ENFORCEM ENT OF 1
THE PROVISIONS OF THIS S UBTITLE. 2
(2) THE EXECUTIVE DIRECTOR, THE COMPTROLLER , AND THE 3
ATTORNEY GENERAL, ONLY FOR PURPOSES OF ENFORCEMENT OF THIS TITLE OR 4
CORRESPONDING LAWS O F OTHER STATES : 5
(I) SHALL SHARE WITH EAC H OTHER THE INFORMAT ION 6
RECEIVED UNDER THIS TITLE OR TITLE 11 OF THE TAX – GENERAL ARTICLE; AND 7
(II) MAY SHARE THE INFORM ATION WITH OTHER FED ERAL, 8
STATE, OR LOCAL AGENCIES . 9
(C) IN ADDITION TO ANY OT HER INFORMATION REQU IRED TO BE 10
SUBMITTED BY LAW , THE EXECUTIVE DIRECTOR OR THE ATTORNEY GENERAL MAY 11
REQUIRE A LICENSED E LECTRONIC SMOKING DE VICES MANUFACTURER , LICENSED 12
ELECTRONIC SMOKING D EVICES WHOLESALER DI STRIBUTOR, LICENSED 13
ELECTRONIC SMOKING D EVICES WHOLESALER IM PORTER, LICENSED ELECTRONIC 14
SMOKING DEVICES RETA ILER, OR LICENSED VAPE SHO P VENDOR TO SUBMIT ANY 15
ADDITIONAL INFORMATI ON, INCLUDING INVOICES , RECEIPTS, CORRESPONDENCE , 16
CONFIRMATIONS OF APP ROVAL, MARKETING, ADVERTISING MATERIAL S, AND 17
SAMPLES OF PACKAGING OR LABELING OF EACH BRAND FAMILY , AS IS NECESSARY 18
TO ENABLE THE ATTORNEY GENERAL TO DETERMINE WHET HER A LICENSED 19
ELECTRONIC SMOKING D EVICES MANUFACTURER IS IN COMPLIANCE WIT H THIS 20
SUBTITLE AND ALL OTH ER APPLICABLE FEDERA L, STATE, AND LOCAL LAWS . 21
(D) THE EXECUTIVE DIRECTOR OR THE ATTORNEY GENERAL MAY ADOPT 22
REGULATIONS REQUIRIN G A LICENSEE TO SUBMIT AN Y ADDITIONAL INFORMA TION 23
OR DOCUMENTATION AS NECESSARY TO DETERMI NE THE ACCURACY OF A NY 24
INFORMATION SUBMITTE D OR OTHERWISE PROMO TE COMPLIANCE WITH T HIS 25
SUBTITLE. 26
16.7–306. 27
(A) (1) IN ADDITION TO OR INS TEAD OF ANY OTHER CI VIL OR CRIMINAL 28
REMEDY PROVIDED BY L AW, ON A DETERMINATION T HAT A LICENSED ELECT RONIC 29
SMOKING DEVICES WHOL ESALER DISTRIBUTOR H AS VIOLATED § 16.7–303(D) OR § 30
16.7–305(A) OF THIS SUBTITLE OR ANY REGULATION ADOPT ED UNDER THIS TITLE , 31
THE EXECUTIVE DIRECTOR MAY REVOKE O R SUSPEND THE LICENSE O F A LICENSED 32
ELECTRONIC SMOKING D EVICES WHOLESALER DI STRIBUTOR IN THE MAN NER 33
PROVIDED IN §§ 16.7–208 AND 16.7–209 OF THIS TITLE. 34
22 HOUSE BILL 1197
(2) EACH SALE OF AND EACH OFFER TO SELL ELECTR ONIC SMOKING 1
DEVICES IN VIOLATION OF § 16.7–303(D) OF THIS SUBTITLE SHALL CONST ITUTE A 2
SEPARATE VIOLATION . 3
(3) THE EXECUTIVE DIRECTOR MAY ALSO IMP OSE A CIVIL PENALTY 4
IN AN AMOUNT NOT TO EXCEED THE GREATER O F: 5
(I) 500% OF THE RETAIL VALUE OF THE ELECTRONIC SM OKING 6
DEVICES SOLD OR OFFE RED FOR SALE; OR 7
(II) $5,000 ON A DETERMINATION O F VIOLATION OF § 8
16.7–303(D) OF THIS SUBTITLE OR ANY REGULATIONS ADOP TED UNDER THAT 9
SECTION. 10
(4) A PENALTY IMPOSED UNDE R THIS SECTION SHALL BE IMPOSED IN 11
THE MANNER PROVIDED UNDER § 16.7–209 OF THIS TITLE. 12
(B) (1) ANY ELECTRONIC SMOKING DE VICES THAT HAVE BEEN SOLD, 13
OFFERED FOR SALE , OR POSSESSED FOR SAL E IN THE STATE, OR IMPORTED FOR 14
PERSONAL CONSUMPTION IN THE STATE IN VIOLATION OF § 16.7–303(D) OF THIS 15
SUBTITLE SHALL BE DE EMED CONTRABAND UNDE R §§ 13–836, 13–837, AND 13–839 16
OF THE TAX – GENERAL ARTICLE, AND THOSE ELECTRONIC SMOKING DEVICES 17
SHALL BE SUBJECT TO SEIZURE AND FORFEITU RE AS PROVIDED IN TH OSE 18
SECTIONS. 19
(2) SEIZED AND FORFEITED ELECTRONIC SMOKING D EVICES MAY 20
NOT BE RESOLD AND MA Y BE DESTROYED . 21
(C) THE ATTORNEY GENERAL, ON BEHALF OF THE EXECUTIVE DIRECTOR, 22
MAY SEEK AN INJUNCTI ON TO RESTRAIN A THR EATENED OR ACTUAL VI OLATION OF 23
§ 16.7–303(D) OR § 16.7–305(A) OR (D) OF THIS SUBTITLE BY A LICENSED 24
ELECTRONIC SMOKING D EVICES WHOLESALER DI STRIBUTOR AND COMPEL THE 25
LICENSED ELECTRONIC SMOKING DEVICES WHOL ESALER DISTRIBUTOR T O COMPLY 26
WITH THOSE SECTIONS . 27
(D) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , A 28
PERSON WHO SELLS , DISTRIBUTES, ACQUIRES, HOLDS, OWNS, POSSESSES, 29
TRANSPORTS , IMPORTS, OR CAUSE S TO BE IMPORTED ELE CTRONIC SMOKING 30
DEVICES FOR RESALE T O A CONSUMER THAT TH E PERSON KNOWS OR SH OULD HAVE 31
KNOWN ARE INTENDED F OR DISTRIBUTION OR S ALE IN THE STATE IN VIOLATION OF 32
§ 16.7–303(D) OF THIS SUBTITLE IS GUILTY OF A MISDEMEA NOR, AND ON 33
CONVICTION IS SUBJECT TO A FINE NOT EXCEEDING $5,000 OR IMPRISONMENT NOT 34
EXCEEDING 1 YEAR OR BOTH. 35 HOUSE BILL 1197 23
(2) THE PENALTIES IN PARA GRAPH (1) OF THIS SUBSECTION D O NOT 1
APPLY TO A PERSON WH O POSSESSES LESS THA N $100 WORTH OF ELECTRONIC 2
SMOKING DEVICES SOLE LY FOR PERSONAL C ONSUMPTION AND NOT F OR RESALE TO 3
A CONSUMER . 4
16.7–307. 5
(A) A DETERMINATION BY THE ATTORNEY GENERAL TO OMIT OR TO 6
DELETE FROM THE DIRE CTORY DESCRIBED IN § 16.7–303(A) OF THIS SUBTITLE A 7
BRAND FAMILY , A BRAND STYLE , OR AN ELECTRONIC SMO KING DEVICES 8
MANUFACTURER SHALL B E SUBJECT TO REVIEW IN ACCORDANCE WITH TITLE 10, 9
SUBTITLE 2 OF THE STATE GOVERNMENT ARTICLE. 10
(B) THE ATTORNEY GENERAL AND THE EXECUTIVE DIRECTOR MAY ADOPT 11
REGULATIONS NECESSAR Y TO CARRY OUT THIS SUBTITLE. 12
(C) IN ANY ACTION BROUGHT BY THE STATE TO ENFORCE THIS SUBTITLE, 13
THE STATE SHALL BE ENTITL ED TO RECOVER THE CO STS OF INVESTIGATION , 14
EXPERT WITNESS FEES , COSTS OF THE ACTION , AND REASONABLE ATTOR NEY’S 15
FEES. 16
(D) (1) IF A COURT OR OTHER A DJUDICATIVE BODY DET ERMINES THAT A 17
PERSON HAS VIOLATED THIS SUBTIT LE, THE COURT OR OTHER A DJUDICATIVE BODY 18
SHALL ORDER ANY PROF ITS, GAIN, GROSS RECEIPTS , OR OTHER BENEFIT FRO M THE 19
VIOLATION TO BE PAID TO THE ATTORNEY GENERAL. 20
(2) UNLESS OTHERWISE EXPR ESSLY PROVIDED , THE REMEDIES OR 21
PENALTIES PROVID ED BY THIS SUBTITLE ARE CUMULATIVE TO EA CH OTHER, AND 22
TO THE REMEDIES OR P ENALTIES AVAILABLE U NDER ALL OTHER LAWS OF THE 23
STATE. 24
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 25
October 1, 2024. 26