EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *sb1056* SENATE BILL 1056 C2, E1, J2 4lr2097 CF HB 1180 By: Senator Kramer Introduced and read first time: February 2, 2024 Assigned to: Finance A BILL ENTITLED AN ACT concerning 1 Cigarettes, Other Tobacco Products, and Electronic Smoking Devices – 2 Revisions 3 (Tobacco Retail Modernization Act of 2024) 4 FOR the purpose of prohibiting licensees that sell cigarettes, other tobacco products, or 5 electronic smoking devices at retail from displaying cigarettes, other tobacco 6 products, or electronic smoking devices for sale unless located behind a counter; 7 requiring certain licensed retailers to verify an individual’s date of birth before 8 selling cigarettes, other tobacco products, or electronic smoking devices in a certain 9 manner; altering the application fee for a county license to sell cigarettes at retail; 10 requiring the Maryland Department of Health to conduct at least two unannounced 11 inspections of certain licensed retailers each year; repealing the electronic smoking 12 device retail license; altering the definition of “vape shop vendor” to require that the 13 vendor exclusively sell electronic smoking devices and related accessories to 14 consumers on the premises of its place of business; requiring certain licensees to 15 obtain an additional license in order to manufacture, distribute, or sell electronic 16 smoking devices; altering the penalty for distributing tobacco products or tobacco 17 paraphernalia to an individual under a certain age; authorizing the court to make 18 certain recommendations to the Executive Director of the Alcohol, Tobacco, and 19 Cannabis Commission regarding the suspension of certain licenses; prohibiting a 20 pharmacy from selling tobacco products, other tobacco products, and electronic 21 smoking devices; requiring the Alcohol, Tobacco, and Cannabis Commission, in 22 conjunction with the Maryland Department of Health, to submit a certain report on 23 or before a certain date; and generally relating to the sale of cigarettes, other tobacco 24 products, and electronic smoking devices. 25 BY repealing and reenacting, without amendments, 26 Article – Business Regulation 27 Section 16–201(a), (d), and (k) and 16.5–101(a), (f), (j), and (l) 28 Annotated Code of Maryland 29 (2015 Replacement Volume and 2023 Supplement) 30 2 SENATE BILL 1056 BY adding to 1 Article – Business Regulation 2 Section 16–209.1, 16.5–214.2, and 16.7–204.2 3 Annotated Code of Maryland 4 (2015 Replacement Volume and 2023 Supplement) 5 BY repealing and reenacting, with amendments, 6 Article – Business Regulation 7 Section 16–302, 16–308.3, 16.5–217.1, 16.7–101, 16.7–102, 16.7–201, 16.7–202, 8 16.7–203, 16.7–204, 16.7–204.1, 16.7–206, 16.7–211, and 16.7–213.1 9 Annotated Code of Maryland 10 (2015 Replacement Volume and 2023 Supplement) 11 BY repealing and reenacting, with amendments, 12 Article – Criminal Law 13 Section 10–107 14 Annotated Code of Maryland 15 (2021 Replacement Volume and 2023 Supplement) 16 BY repealing and reenacting, with amendments, 17 Article – Health Occupations 18 Section 12–403(c)(22) and (23) 19 Annotated Code of Maryland 20 (2021 Replacement Volume and 2023 Supplement) 21 BY adding to 22 Article – Health Occupations 23 Section 12–403(c)(24) 24 Annotated Code of Maryland 25 (2021 Replacement Volume and 2023 Supplement) 26 SECTION 1. BE IT ENACTED BY T HE GENERAL ASSEMBLY OF MARYLAND, 27 That the Laws of Maryland read as follows: 28 Article – Business Regulation 29 16–201. 30 (a) In this subtitle the following words have the meanings indicated. 31 (d) “Licensed retailer” means a person licensed by the clerk under § 16–205(b) of 32 this subtitle to act as a retailer. 33 (k) “Retailer” means a person who: 34 SENATE BILL 1056 3 (1) sells cigarettes to consumers through vending machines on fewer than 1 40 premises; 2 (2) otherwise sells cigarettes to consumers; or 3 (3) holds cigarettes for sale to consumers. 4 16–209.1. 5 (A) A LICENSED RETAILER MAY NOT DISPLAY CIGARETTES FOR SALE 6 UNLESS THE CIGARETTE S ARE LOCATED BEHIND A COUNTER IN AN AREA 7 ACCESSIBLE ONLY TO T HE LICENSED RETAILER AND EMPLOYEES OF THE LICENSED 8 RETAILER. 9 (B) (1) A LICENSED RETAILER MA Y NOT SELL CIGARETTE S TO AN 10 INDIVIDUAL UNLESS THE LICENSED RETAILER VERIFIES , IN ACCORDANCE WITH 11 PARAGRAPH (2) OF THIS SUBSECTION , THAT THE INDIVIDUAL IS: 12 (I) AT LEAST 21 YEARS OLD; OR 13 (II) 1. AT LEAST 18 YEARS OLD; AND 14 2. AN ACTIVE DUTY MEMBER OF THE MILITARY IN 15 POSSESSION OF A VALI D MILITARY IDENTIFIC ATION. 16 (2) A LICENSED RETAILER MA Y VERIFY AN INDIVIDUAL’S AGE ONLY: 17 (I) BY MEANS OF A GOVERNM ENT–ISSUED PHOTO 18 IDENTIFICATION CONTA INING THE INDIVIDUAL ’S DATE OF BIRTH; AND 19 (II) IN A DIRECT FACE –TO–FACE EXCHANGE WITHOU T THE 20 ASSISTANCE OF ANY EL ECTRONIC OR MECHANIC AL DEVICE. 21 16–302. 22 (a) For each county license, an applicant shall: 23 (1) submit an application to the clerk; and 24 (2) pay to the clerk a license fee of[: 25 (i) $25 in a county other than Cecil County or Montgomery County; 26 (ii) $50 in Cecil County; or 27 4 SENATE BILL 1056 (iii) $125 in Montgomery County] $300. 1 (b) (1) From each license fee collected under subsection (a) of this section, the 2 [Clerk of the Circuit Court for Montgomery County] CLERK shall distribute: 3 (i) $25 to the Executive Director; and 4 (ii) $100 to [Montgomery County] THE COUNTY to be used to 5 enforce existing laws banning the sale or distribution of tobacco or tobacco products to 6 individuals under the age of 21 years. 7 (2) Funds distributed under paragraph (1)(ii) of this subsection may not be 8 used to supplant existing funding for the enforcement of laws banning the sale or 9 distribution of tobacco or tobacco products to individuals under the age of 21 years. 10 16–308.3. 11 (a) The Maryland Department of Health [may] SHALL conduct AT LEAST TWO 12 unannounced inspections of a licensed retailer to ensure the licensee’s compliance with the 13 provisions of this title and § 10–107 of the Criminal Law Article EACH YEAR. 14 (b) The Maryland Department of Health may use an individual under the age of 15 21 years to assist in conducting an inspection under this section. 16 16.5–101. 17 (a) In this title the following words have the meanings indicated. 18 (f) “Licensed other tobacco products retailer” means a person licensed by the 19 clerk under § 16.5–204(b) of this title to act as an other tobacco products retailer. 20 (j) (1) “Other tobacco products” means, except as provided in paragraph (3) of 21 this subsection, a product that is: 22 (i) intended for human consumption or likely to be consumed, 23 whether smoked, heated, chewed, absorbed, dissolved, inhaled, or ingested in any other 24 manner, and that is made of or derived from, or that contains: 25 1. tobacco; or 26 2. nicotine; or 27 (ii) a component or part used in a consumable product described 28 under item (i) of this paragraph. 29 (2) “Other tobacco products” includes: 30 SENATE BILL 1056 5 (i) cigars, premium cigars, pipe tobacco, chewing tobacco, snuff, and 1 snus; and 2 (ii) filters, rolling papers, pipes, and hookahs. 3 (3) “Other tobacco products” does not include: 4 (i) cigarettes; 5 (ii) electronic smoking devices; 6 (iii) drugs, devices, or combination products authorized for sale by 7 the U.S. Food and Drug Administration under the Federal Food, Drug, and Cosmetic Act; 8 or 9 (iv) tobacco pipes, as defined under § 11–104 of the Tax – General 10 Article. 11 (l) “Other tobacco products retailer” means a person who: 12 (1) sells other tobacco products to consumers; or 13 (2) holds other tobacco products for sale to consumers. 14 16.5–214.2. 15 (A) A LICENSED OTHER TOBACC O PRODUCTS RETAILER MAY NOT DISPLAY 16 OTHER TOBACCO PRODUC TS FOR SALE UNLESS T HE OTHER TOBACCO PRO DUCTS 17 ARE LOCATED BEHIND A COUNTER IN AN AREA A CCESSIBLE ONLY TO TH E LICENSED 18 OTHER TOBACCO PRODUC TS RETAILER AND EMPLOYEES OF THE LICENSED OTHER 19 TOBACCO PRODUCTS RET AILER. 20 (B) (1) A LICENSED OTHER TOBAC CO PRODUCTS RETAILER MAY NOT 21 SELL CIGARETTES TO A N INDIVIDUAL UNLESS THE LICENSED OTHER TOBACCO 22 PRODUCTS RETAILER VERIFIES , IN ACCORDANCE WITH P ARAGRAPH (2) OF THIS 23 SUBSECTION, THAT THE INDIVIDUAL IS: 24 (I) AT LEAST 21 YEARS OLD; OR 25 (II) 1. AT LEAST 18 YEARS OLD; AND 26 2. AN ACTIVE DUTY MEMBER OF THE MILITARY IN 27 POSSESSION OF A VALI D MILITARY IDENTIFIC ATION. 28 6 SENATE BILL 1056 (2) A LICENSED OTHER TOBAC CO PRODUCTS RETAILER MAY VERIFY 1 AN INDIVIDUAL’S AGE ONLY: 2 (I) BY MEANS OF A GOVERNM ENT–ISSUED PHOTO 3 IDENTIFICATION CONTA INING THE INDIVIDUAL ’S DATE OF BIRTH; AND 4 (II) IN A DIRECT FACE –TO–FACE EXCHANGE WITHOU T THE 5 ASSISTANCE OF ANY EL ECTRONIC OR MECHANIC AL DEVICE. 6 16.5–217.1. 7 (a) The Maryland Department of Health [may] SHALL conduct AT LEAST TWO 8 unannounced inspections of a licensed retailer to ensure the licensee’s compliance with the 9 provisions of this title and § 10–107 of the Criminal Law Article EACH YEAR. 10 (b) The Maryland Department of Health may use an individual under the age of 11 21 years to assist in conducting an inspection under this section. 12 16.7–101. 13 (a) In this title the following words have the meanings indicated. 14 (b) “County license” means a license issued by the clerk to sell electronic smoking 15 devices to consumers in a county. 16 (c) (1) “Electronic smoking device” means a device that can be used to deliver 17 aerosolized or vaporized nicotine to an individual inhaling from the device. 18 (2) “Electronic smoking device” includes: 19 (i) an electronic cigarette, an electronic cigar, an electronic cigarillo, 20 an electronic pipe, an electronic hookah, a vape pen, and vaping liquid; and 21 (ii) except as provided in paragraph (3) of this subsection, any 22 component, part, or accessory of such a device regardless of whether or not it is sold 23 separately, including any substance intended to be aerosolized or vaporized during use of 24 the device. 25 (3) “Electronic smoking device” does not include: 26 (i) a drug, device, or combination product authorized for sale by the 27 U.S. Food and Drug Administration under the Federal Food, Drug, and Cosmetic Act; or 28 (ii) a battery or battery charger when sold separately. 29 (d) “Electronic smoking devices manufacturer” means a person that: 30 SENATE BILL 1056 7 (1) manufactures, mixes, or otherwise produces electronic smoking devices 1 intended for sale in the State, including electronic smoking devices intended for sale in the 2 United States through an importer; and 3 (2) (i) [sells electronic smoking devices to a consumer, if the consumer 4 purchases or orders the devices through the mail, a computer network, a telephonic 5 network, or another electronic network, a licensed electronic smoking devices wholesaler 6 distributor, or a licensed electronic smoking devices wholesaler importer in the State; 7 (ii)] if the electronic smoking devices manufacturer also holds a 8 license to act as [an electronic smoking devices retailer or] a vape shop vendor, sells 9 electronic smoking devices IN THE SAME MANNER A S A VAPE SHOP VENDOR to 10 consumers located in the State; or 11 [(iii)] (II) unless otherwise prohibited or restricted under local law, 12 this article, or the Criminal Law Article, distributes sample electronic smoking devices to 13 a licensed [electronic smoking devices retailer or] vape shop vendor. 14 [(e) “Electronic smoking devices retailer” means a person that: 15 (1) sells electronic smoking devices to consumers; 16 (2) holds electronic smoking devices for sale to consumers; or 17 (3) unless otherwise prohibited or restricted under local law, this article, 18 the Criminal Law Article, or § 24–305 of the Health – General Article, distributes sample 19 electronic smoking devices to consumers in the State.] 20 [(f)] (E) “Electronic smoking devices wholesaler distributor” means a person 21 that: 22 (1) obtains at least 70% of its electronic smoking devices from a holder of 23 an electronic smoking devices manufacturer license under this subtitle or a business entity 24 located in the United States; 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)] (F) “Electronic smoking devices wholesaler importer” means a person that: 29 (1) obtains at least 70% of its electronic smoking devices from a business 30 entity located in a foreign country; and 31 8 SENATE BILL 1056 (2) (i) holds electronic smoking devices for sale to another person for 1 resale; or 2 (ii) sells electronic smoking devices to another person for resale. 3 [(h)] (G) “Executive Director” means the Executive Director of the Alcohol [and], 4 Tobacco, AND CANNABIS Commission. 5 [(i)] (H) “License” means: 6 (1) a license issued by the Executive Director under § 16.7–203(a) of this 7 title to: 8 (i) act as a licensed electronic smoking devices manufacturer; 9 (ii) act as a licensed electronic smoking devices wholesaler 10 distributor; or 11 (iii) act as a licensed electronic smoking devices wholesaler importer; 12 or 13 (2) a license issued by the clerk under § 16.7–203(b) of this title to[: 14 (i) act as a licensed electronic smoking devices retailer; or 15 (ii)] act as a licensed vape shop vendor. 16 [(j)] (I) “Sell” means to exchange or transfer, or to agree to exchange or 17 transfer, title or possession of property, in any manner or by any means, for consideration. 18 [(k)] (J) “Vape shop vendor” means an electronic smoking devices business that 19 [derives at least 70% of its revenues, measured by average daily receipts, from the sale of] 20 EXCLUSIVELY SELLS electronic smoking devices and related accessories TO CONSUMERS 21 ON THE PREMISES OF I TS PLACE OF BUSINESS . 22 [(l)] (K) “Vaping liquid” means a liquid that: 23 (1) consists of propylene glycol, vegetable glycerin, or other similar 24 substance; 25 (2) may or may not contain natural or artificial flavors; 26 (3) may or may not contain nicotine; and 27 (4) converts to vapor intended for inhalation when heated in an electronic 28 device. 29 SENATE BILL 1056 9 16.7–102. 1 (a) The Executive Director may delegate any power or duty of the Executive 2 Director under this title. 3 (b) Any person licensed under Title 16 or Title 16.5 of this article, or an affiliate, 4 as defined under § 16–402(c) of this article, of a person licensed under Title 16 of this 5 article[: 6 (1) is authorized to manufacture, distribute, or sell electronic smoking 7 devices pursuant to this title in the same capacity as the person is licensed under Title 16 8 or Title 16.5 of this article; and 9 (2) may not be required to] MUST obtain an additional license under this 10 title IN ORDER TO MANUFACT URE, DISTRIBUTE, OR SELL ELECTRONIC S MOKING 11 DEVICES PURSUANT TO THIS TITLE. 12 16.7–201. 13 [(a)] A person must hold an appropriate license before the person may act as: 14 (1) an electronic smoking devices manufacturer; 15 (2) [an electronic smoking devices retailer; 16 (3)] an electronic smoking devices wholesaler distributor; 17 [(4)] (3) an electronic smoking devices wholesaler importer; or 18 [(5)] (4) a vape shop vendor. 19 [(b) A place of business in which a person acts as an electronic smoking devices 20 retailer or a vape shop vendor must hold an appropriate license.] 21 16.7–202. 22 (a) (1) An applicant for a license to act as an electronic smoking devices 23 manufacturer, electronic smoking devices wholesaler distributor, or electronic smoking 24 devices wholesaler importer shall: 25 (i) obtain an appropriate county license by submitting an 26 application to the Executive Director on the form and containing the information that the 27 Executive Director requires; 28 (ii) indicate the licenses for which the applicant is applying; and 29 10 SENATE BILL 1056 (iii) except as provided in paragraph (2) of this subsection, pay to the 1 Executive Director a fee of $25 for each license for which the applicant applies. 2 (2) An applicant for a license to act as an electronic smoking devices 3 wholesaler distributor or electronic smoking devices wholesaler importer shall pay to the 4 Executive Director a fee of $150. 5 (b) (1) An applicant for a license to act as [an electronic smoking devices 6 retailer or] a vape shop vendor: 7 (i) shall obtain a county license by submitting to the clerk an 8 application for each permanent or temporary place of business located in the same 9 enclosure and operated by the same applicant; and 10 (ii) except as provided in paragraph (2) of this subsection, shall pay 11 to the clerk a fee of $25. 12 (2) The application shall: 13 (i) be made on the form that the clerk requires; and 14 (ii) contain the information that the Executive Director requires. 15 (c) A licensee shall display a license in the way that the Executive Director 16 requires by regulation. 17 (d) If a person has had a license revoked under § 16.7–207 of this subtitle, the 18 person may not reapply for a license within 1 year after the date when the prior license was 19 revoked. 20 16.7–203. 21 (a) The Executive Director shall issue an appropriate license to each applicant 22 that meets the requirements of this subtitle for a license to act as an electronic smoking 23 devices manufacturer, electronic smoking devices wholesaler distributor, or electronic 24 smoking devices wholesaler importer. 25 (b) The clerk shall issue to each applicant that meets the requirements of this 26 subtitle a license to act as [an electronic smoking devices retailer or] a vape shop vendor. 27 (c) The clerk shall forward a copy of an application received for each license 28 issued under subsection (b) of this section to the Executive Director within 30 days after 29 issuance of the license. 30 16.7–204. 31 SENATE BILL 1056 11 (a) An electronic smoking devices manufacturer license authorizes the licensee 1 to: 2 (1) sell electronic smoking devices to: 3 (i) a licensed electronic smoking devices wholesaler located in the 4 State; 5 (ii) an electronic smoking devices wholesaler or retailer located 6 outside the State if the electronic smoking devices may be sold lawfully in Maryland; 7 (iii) a licensed vape shop vendor[; and 8 (iv) a consumer if: 9 1. the licensee manufactured the devices; and 10 2. the consumer purchases or orders the devices through the 11 mail, a computer network, a telephonic network, or another electronic network]; 12 (2) if the electronic smoking devices manufacturer licensee also holds a 13 license to act as [an electronic smoking devices retailer or] a vape shop vendor, transfer 14 electronic smoking devices to inventory for sale under the [retail license or] vape shop 15 license; and 16 (3) except as otherwise prohibited or restricted under local law, this article, 17 or the Criminal Law Article, distribute electronic smoking devices products to a licensed 18 [electronic smoking devices retailer or] vape shop vendor. 19 [(b) An electronic smoking devices retailer license authorizes the licensee to: 20 (1) sell electronic smoking devices to consumers; 21 (2) buy electronic smoking devices from an electronic smoking devices 22 wholesaler distributor or electronic smoking devices wholesaler importer; 23 (3) if the electronic smoking devices retailer licensee also holds a license to 24 act as an electronic smoking devices manufacturer, sell at retail electronic smoking devices 25 manufactured under the manufacturer license; and 26 (4) except as otherwise prohibited or restricted under local law, this article, 27 the Criminal Law Article, or § 24–305 of the Health – General Article, distribute sample 28 electronic smoking devices products to consumers in the State.] 29 [(c)] (B) An electronic smoking devices wholesaler distributor license or 30 electronic smoking devices wholesaler importer license authorizes the licensee to: 31 12 SENATE BILL 1056 (1) sell electronic smoking devices to [electronic smoking devices retailers 1 and] vape shop vendors; 2 (2) buy electronic smoking devices directly from an electronic smoking 3 devices manufacturer and an electronic smoking devices wholesaler distributor or 4 electronic smoking devices wholesaler importer; 5 (3) hold electronic smoking devices; and 6 (4) sell electronic smoking devices to another licensed electronic smoking 7 devices wholesaler distributor or electronic smoking devices wholesaler importer. 8 [(d)] (C) A vape shop vendor license authorizes the licensee to: 9 (1) sell electronic smoking devices as a vape shop vendor TO CONSUMERS 10 ON THE PREMISES OF T HE LICENSEE’S PLACE OF BUSINESS ; 11 (2) if the vape shop vendor licensee also holds a license to act as an 12 electronic smoking devices manufacturer, sell at retail ON THE VAPE SHOP VEN DOR 13 PREMISES electronic smoking devices manufactured under the manufacturer license; and 14 (3) buy electronic smoking devices from an electronic smoking devices 15 manufacturer, an electronic smoking devices wholesaler distributor, or an electronic 16 smoking devices wholesaler importer. 17 16.7–204.1. 18 (a) (1) A [retail licensee] VAPE SHOP VENDOR shall post a sign in a location 19 that is clearly visible to the consumer that states: 20 “No person under the age of 21 may be sold tobacco products without military 21 identification”. 22 [(b)] (2) The sign required under PARAGRAPH (1) OF this [section] 23 SUBSECTION shall be written in letters at least one–half inch high. 24 (B) (1) A VAPE SHOP VENDOR MAY NOT SELL CIGARETTES TO AN 25 INDIVIDUAL UNLESS TH E VAPE SHOP VENDOR V ERIFIES, IN ACCORDANCE WITH 26 PARAGRAPH (2) OF THIS SUBSECTION , THAT THE INDIVIDUAL IS: 27 (I) AT LEAST 21 YEARS OLD; OR 28 (II) 1. AT LEAST 18 YEARS OLD; AND 29 SENATE BILL 1056 13 2. AN ACTIVE DUTY MEMBER OF THE MILITARY IN 1 POSSESSION OF A VALI D MILITARY IDENTIFIC ATION. 2 (2) A VAPE SHOP VENDOR MAY VERIFY AN INDIVIDUAL ’S AGE ONLY: 3 (I) BY MEANS OF A GOVERNM ENT–ISSUED PHOTO 4 IDENTIFICATION CONTA INING THE INDIVIDUAL ’S DATE OF BIRTH; AND 5 (II) IN A DIRECT FACE –TO–FACE EXCHANGE WITHOU T THE 6 ASSISTANCE OF ANY EL ECTRONIC OR MECHANIC AL DEVICE. 7 16.7–204.2. 8 A VAPE SHOP VENDOR MAY NOT DISPLAY ELEC TRONIC SMOKING DEVIC ES FOR 9 SALE UNLESS THE ELECTRONIC SMOKING D EVICES ARE LOCATED BEHIND A 10 COUNTER IN AN AREA A CCESSIBLE ONLY TO TH E VAPE SHOP VENDOR AND 11 EMPLOYEES OF THE VAPE SHOP VENDOR . 12 16.7–206. 13 (a) (1) A [licensed electronic smoking devices retailer or a] licensed vape shop 14 vendor may not assign the license. 15 (2) If a licensed electronic smoking devices wholesaler distributor or 16 electronic smoking devices wholesaler importer sells the licensee’s electronic smoking 17 devices business and pays to the Executive Director a license assignment fee of $10, the 18 licensee may assign the license to the buyer of the business if the buyer otherwise qualifies 19 under this title for an electronic smoking devices wholesaler’s distributor or importer 20 license. 21 (b) If the electronic smoking devices business of a licensee is transferred because 22 of bankruptcy, death, incompetency, receivership, or otherwise by operation of law, the 23 Executive Director shall transfer the license without charge to the new owner of the 24 licensee’s business if the transferee otherwise qualifies under this title for the license being 25 transferred. 26 (c) (1) If a licensed electronic smoking devices wholesaler distributor or 27 electronic smoking devices wholesaler importer surrenders the license to the Executive 28 Director and if no disciplinary proceedings are pending against the licensee, the Executive 29 Director shall refund a pro rata portion of the license fee for the unexpired term of the 30 license. 31 (2) A [licensed electronic smoking devices retailer or a] licensed vape shop 32 vendor is not allowed a refund for the unexpired term of the license. 33 14 SENATE BILL 1056 16.7–211. 1 (a) A person may not act, attempt to act, or offer to act as an electronic smoking 2 devices manufacturer, [an electronic smoking devices retailer,] an electronic smoking 3 devices wholesaler distributor, an electronic smoking devices wholesaler importer, or a 4 vape shop vendor in the State unless the person has an appropriate license. 5 (b) (1) A person that violates this section is guilty of a misdemeanor and on 6 conviction is subject to a fine not exceeding $1,000 or imprisonment not exceeding 30 days 7 or both. 8 (2) Each day that a violation of this section continues is a separate offense. 9 16.7–213.1. 10 (a) The Maryland Department of Health [may] SHALL conduct AT LEAST TWO 11 unannounced inspections of licensed [retailers] VAPE SHOP VENDORS to ensure the 12 licensee’s compliance with the provisions of this title and § 10–107 of the Criminal Law 13 Article EACH YEAR. 14 (b) The Maryland Department of Health may use an individual under the age of 15 21 years to assist in conducting an inspection under this section. 16 Article – Criminal Law 17 10–107. 18 (a) This section does not apply to the distribution of a coupon that is redeemable 19 for a tobacco product, if the coupon is: 20 (1) contained in a newspaper, magazine, or other type of publication in 21 which the coupon is incidental to the primary purpose of the publication; or 22 (2) sent through the mail. 23 (b) (1) This subsection does not apply to the distribution of a tobacco product 24 or tobacco paraphernalia to: 25 (i) an individual under the age of 21 years who is acting solely as 26 the agent of the individual’s employer if the employer distributes tobacco products or 27 tobacco paraphernalia for commercial purposes; or 28 (ii) a purchaser or recipient who: 29 1. is at least 18 years of age; 30 2. is an active duty member of the military; and 31 SENATE BILL 1056 15 3. presents a valid military identification. 1 (2) A person who distributes tobacco products for commercial purposes, 2 including a person licensed under Title 16, Title 16.5, Title 16.7, or Title 16.9 of the 3 Business Regulation Article, may not distribute to an individual under the age of 21 years: 4 (i) a tobacco product; 5 (ii) tobacco paraphernalia; or 6 (iii) a coupon redeemable for a tobacco product. 7 (c) A person not described in subsection (b)(2) of this section may not: 8 (1) purchase for or sell a tobacco product to an individual under the age of 9 21 years, unless the individual: 10 (i) is at least 18 years of age; 11 (ii) is an active duty member of the military; and 12 (iii) presents a valid military identification; or 13 (2) distribute tobacco paraphernalia to an individual under the age of 21 14 years, unless the individual: 15 (i) is at least 18 years of age; 16 (ii) is an active duty member of the military; and 17 (iii) presents a valid military identification. 18 (d) In a prosecution for a violation of this section, it is a defense that the defendant 19 examined, IN A DIRECT, FACE–TO–FACE EXCHANGE , the purchaser’s or recipient’s 20 driver’s license or other valid identification issued by a government unit that positively 21 identified the purchaser or recipient as at least 21 years of age or as at least 18 years of age 22 and an active duty member of the military. 23 (e) (1) A person who violates this section is guilty of a misdemeanor and on 24 conviction is subject to a fine not exceeding: 25 (i) [$300] $500 for a first violation; 26 (ii) $1,000 for a second violation occurring within 2 years after the 27 first violation; and 28 16 SENATE BILL 1056 (iii) $3,000 for each subsequent violation occurring within 2 years 1 after the preceding violation. 2 (2) IN ADDITION TO THE PE NALTIES UNDER PARAGRAPH (1) OF THIS 3 SUBSECTION, IF A PERSON HOLDS A LICENSE UNDER TITLE 16, TITLE 16.5, TITLE 4 16.7, OR TITLE 16.9 OF THE BUSINESS REGULATION ARTICLE, THE COURT SHALL 5 ORDER THE EXECUTIVE DIRECTOR OF THE ALCOHOL, TOBACCO, AND CANNABIS 6 COMMISSION TO: 7 (I) SUSPEND THE LICENSE FOR: 8 1. A SECOND VIOLATION , NOT MORE THAN 90 DAYS; AND 9 2. EACH SUBSEQUENT VIOL ATION, NOT MORE THAN 180 10 DAYS; AND 11 (II) FOR EACH SUBSEQUENT VIOLATION, REVOKE THE LICENSE. 12 [(2)] (3) Issuance of a civil citation for the sale of a tobacco product to an 13 individual under the age of 21 years precludes a prosecution for a violation of § 24–307 of 14 the Health – General Article arising out of the same violation. 15 (f) For purposes of this section, each separate incident at a different time and 16 occasion is a violation. 17 Article – Health Occupations 18 12–403. 19 (c) Except as otherwise provided in this section, a pharmacy for which a 20 pharmacy permit has been issued under this title: 21 (22) (i) May provide to an ophthalmologist for office use, without a 22 patient–specific prescription: 23 1. Compound antibiotics for the emergency treatment of 24 bacterial endophthalmitis or viral retinitis; and 25 2. Compound antivascular endothelial growth factor agents 26 for the emergency treatment of neovascular glaucoma, wet macular degeneration, or 27 macular edema; and 28 (ii) Shall require the ophthalmologist to inform the pharmacy of the 29 identity of any patient to whom the drugs are administered; [and] 30 SENATE BILL 1056 17 (23) Subject to § 12–510 of this title, may provide compounded nonsterile 1 preparations or compounded sterile preparations without a patient–specific prescription to 2 a licensed veterinarian who intends to dispense the compounded nonsterile preparations 3 or compounded sterile preparations in accordance with § 2–313(c) of the Agriculture Article; 4 AND 5 (24) MAY NOT SELL TOBACCO PRODUCTS , OTHER TOBACCO 6 PRODUCTS, AS DEFINED IN § 16.5–101 OF THE BUSINESS REGULATION ARTICLE, OR 7 ELECTRONIC SMOKING D EVICES, AS DEFINED IN § 16.7–101 OF THE BUSINESS 8 REGULATION ARTICLE. 9 SECTION 2. AND BE IT FURTHER ENACTED, That, on or before December 31, 10 2024, the Alcohol, Tobacco, and Cannabis Commission, in conjunction with the Maryland 11 Department of Health, shall report to the Senate Finance Committee, the House Economic 12 Matters Committee, and the House Health and Government Operations Committee , in 13 accordance with § 2–1257 of the State Government Article, on: 14 (1) the number of retailers of cigarettes, other tobacco products, and 15 electronic smoking devices licensed under Title 16, Title 16.5, or Title 16.7 of the Business 16 Regulation Article, including information regarding the proximity of retailers to schools 17 and health care facilities; 18 (2) the processes and procedures currently used by the Alcohol, Tobacco, 19 and Cannabis Commission to maintain a list of all operating businesses that hold a license 20 under Title 16, Title 16.5, or Title 16.7 of the Business Regulation Article; 21 (3) the geographic density of businesses currently holding a license under 22 Title 16, Title 16.5, or Title 16.7 of the Business Regulation Article; 23 (4) the feasibility and resulting impact of limiting or establishing a 24 maximum number of licenses that could be issued under Title 16, Title 16.5, or Title 16.7 25 of the Business Regulation Article; and 26 (5) with regard to the use of tobacco, other tobacco products, and electric 27 smoking devices, including the use of flavored tobacco products, by individuals under the 28 age of 21 years in the State, an analysis of: 29 (i) its prevalence in the described population; 30 (ii) the public health impacts; and 31 (iii) the economic impacts. 32 SECTION 3. AND BE IT FURTHER ENACTED, That this A ct shall take effect 33 October 1, 2024. 34