EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. Underlining indicates amendments to bill. Strike out indicates matter stricken from the bill by amendment or deleted from the law by amendment. *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 Committee Report: Favorable with amendments Senate action: Adopted Read second time: March 4, 2024 CHAPTER ______ 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 or tobacco 10 products at retail; repealing certain exceptions that authorize the sale, distribution, 11 or purchase of tobacco products, tobacco paraphernalia, and electronic smoking 12 devices to or for individuals under a certain age who are active duty military 13 members; requiring the Maryland Department of Health to conduct at least two 14 certain unannounced inspections of certain licensed retailers each year; repealing 15 the electronic smoking device retail license; altering the definition of “vape shop 16 vendor” to require that the vendor exclusively sell electronic smoking devices and 17 related accessories to consumers on the premises of its place of business; requiring 18 certain licensees to obtain an additional license in order to manufacture, distribute, 19 or sell electronic smoking devices; altering the penalty for distributing tobacco 20 products or tobacco paraphernalia to an individual under a certain age; authorizing 21 the court to make certain recommendations to the Executive Director of the Alcohol, 22 Tobacco, and Cannabis Commission regarding the suspension of certain licenses; 23 prohibiting a pharmacy from selling tobacco products, other tobacco products, and 24 electronic smoking devices; requiring the Alcohol, Tobacco, and Cannabis 25 2 SENATE BILL 1056 Commission, in conjunction with the Maryland Department of Health , the 1 Comptroller, and the State Department of Education, to submit a certain report on 2 or before a certain date; and generally relating to the sale of cigarettes, other tobacco 3 products, and electronic smoking devices. 4 BY repealing and reenacting, without amendments, 5 Article – Business Regulation 6 Section 16–201(a), (d), and (k) and 16.5–101(a), (f), (j), and (l) 7 Annotated Code of Maryland 8 (2015 Replacement Volume and 2023 Supplement) 9 BY adding to 10 Article – Business Regulation 11 Section 16–209.1, 16.5–214.2, and 16.7–204.2 12 Annotated Code of Maryland 13 (2015 Replacement Volume and 2023 Supplement) 14 BY repealing and reenacting, with amendments, 15 Article – Business Regulation 16 Section 16–302, 16–308.3, 16.5–217.1, 16.7–101, 16.7–102, 16.7–201, 16.7–202, 17 16.7–203, 16.7–204, 16.7–204.1, 16.7–206, 16.7–211, and 16.7–213.1 18 Annotated Code of Maryland 19 (2015 Replacement Volume and 2023 Supplement) 20 BY repealing and reenacting, with amendments, 21 Article – Criminal Law 22 Section 10–107 23 Annotated Code of Maryland 24 (2021 Replacement Volume and 2023 Supplement) 25 BY repealing and reenacting, with amendments, 26 Article – Health – General 27 Section 24–305 and 24–307 28 Annotated Code of Maryland 29 (2023 Replacement Volume) 30 BY repealing and reenacting, with amendments, 31 Article – Health Occupations 32 Section 12–403(c)(22) and (23) 33 Annotated Code of Maryland 34 (2021 Replacement Volume and 2023 Supplement) 35 BY adding to 36 Article – Health Occupations 37 Section 12–403(c)(24) 38 Annotated Code of Maryland 39 (2021 Replacement Volume and 2023 Supplement) 40 SENATE BILL 1056 3 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1 That the Laws of Maryland read as follows: 2 Article – Business Regulation 3 16–201. 4 (a) In this subtitle the following words have the meanings indicated. 5 (d) “Licensed retailer” means a person licensed by the clerk under § 16–205(b) of 6 this subtitle to act as a retailer. 7 (k) “Retailer” means a person who: 8 (1) sells cigarettes to consumers through vending machines on fewer than 9 40 premises; 10 (2) otherwise sells cigarettes to consumers; or 11 (3) holds cigarettes for sale to consumers. 12 16–209.1. 13 (A) A LICENSED RETAILER MA Y NOT DISPLAY CIGARE TTES FOR SALE 14 UNLESS THE CIGARETTE S ARE LOCATED BEHIND A COUNTER IN AN AREA 15 ACCESSIBLE ONLY TO T HE LICENSED RETAILER AND EMPLOYEES OF THE LICENSED 16 RETAILER. 17 (B) (1) A LICENSED RETAILER MAY NOT SELL CIGARET TES TO AN 18 INDIVIDUAL UNLESS TH E LICENSED RETAILER VERIFIES, IN ACCORDANCE WITH 19 PARAGRAPH (2) OF THIS SUBSECTION , THAT THE INDIVIDUAL IS: 20 (I) AT LEAST 21 YEARS OLD; OR 21 (II) 1. AT LEAST 18 YEARS OLD; AND 22 2. AN ACTIVE DUTY MEM BER OF THE MILITARY IN 23 POSSESSION OF A VALI D MILITARY IDENTIFIC ATION. 24 (2) A SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION , A LICENSED 25 RETAILER MAY VERIFY AN INDIVIDUAL’S AGE ONLY: 26 (I) BY MEANS OF A GOVERN MENT–ISSUED PHOTO 27 IDENTIFICATION CONTA INING THE INDIVIDUAL’S DATE OF BIRTH; AND 28 4 SENATE BILL 1056 (II) IN A DIRECT FACE –TO–FACE EXCHANGE WITHOU T THE 1 ASSISTANCE OF ANY EL ECTRONIC OR MECHANIC AL DEVICE. 2 (3) A LICENSED RETAILER IS NOT REQUIRED TO VERI FY THE AGE OF 3 AN INDIVIDUAL AT LEAST 30 YEARS OLD. 4 16–302. 5 (a) For each county license, an applicant shall: 6 (1) submit an application to the clerk; and 7 (2) pay to the clerk a license fee of[: 8 (i) $25 in a county other than Cecil County or Montgomery County; 9 (ii) $50 in Cecil County; or 10 (iii) $125 in Montgomery County] $300. 11 (b) (1) From each license fee collected under subsection (a) of this section, the 12 [Clerk of the Circuit Court for Montgomery County] CLERK shall distribute: 13 (i) $25 to the Executive Director; and 14 (ii) $100 IN MONTGOMERY COUNTY, $275 to [Montgomery 15 County] THE COUNTY to be used to enforce existing laws banning the sale or distribution 16 of tobacco or, tobacco products, OR ELECTRONIC SMOKIN G DEVICES, AS DEFINED IN § 17 16.7–101 OF THIS ARTICLE, to individuals under the age of 21 years; AND 18 (III) IN ALL OTHER COUNTIE S, $275 TO THE MARYLAND 19 DEPARTMENT OF HEALTH TO BE USED BY THE DEPARTMENT OR ITS DES IGNEE TO 20 ENFORCE EXISTING LAW S PROHIBITING THE SA LE OR DISTRIBUTION O F TOBACCO, 21 TOBACCO PRODUCTS , OR ELECTRONIC SMOKIN G DEVICES, AS DEFINED IN § 22 16.7–101 OF THIS ARTICLE, TO INDIVIDUALS UNDER THE AGE OF 21 YEARS. 23 (2) Funds distributed under paragraph (1)(ii) of this subsection may not be 24 used to supplant existing funding for the enforcement of laws banning the sale or 25 distribution of tobacco or tobacco products to individuals under the age of 21 years. 26 16–308.3. 27 (a) (1) The SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 28 Maryland Department of Health OR ITS DESIGNEE [may] SHALL conduct AT LEAST TWO 29 SENATE BILL 1056 5 ONE unannounced inspections of a licensed retailer to ensure the licensee’s compliance with 1 the provisions of this title and § 10–107 of the Criminal Law Article EACH YEAR. 2 (2) IF A LICENSED RETAILE R VIOLATES ANY PROVI SION OF THIS 3 TITLE OR § 10–107 OF THE CRIMINAL LAW ARTICLE, THE MARYLAND DEPARTMENT 4 OF HEALTH SHALL CONDUCT AN ADDITIONAL UNANNO UNCED INSPECTION WIT HIN 5 180 DAYS AFTER THE INITI AL INSPECTION. 6 (b) The Maryland Department of Health OR ITS DESIGNEE may use an 7 individual under the age of 21 years to assist in conducting an inspection under this section. 8 (C) TO DETERMINE THE LOCA TION OF A LICENSED R ETAILER SUBJECT TO 9 AN UNANNOUNCED INSPE CTION, THE MARYLAND DEPARTMENT OF HEALTH OR ITS 10 DESIGNEE SHALL USE T HE LIST OF LICENSED RETAILERS AS OF DECEMBER 31 OF 11 THE PREVIOUS CALENDA R YEAR. 12 16.5–101. 13 (a) In this title the following words have the meanings indicated. 14 (f) “Licensed other tobacco products retailer” means a person licensed by the 15 clerk under § 16.5–204(b) of this title to act as an other tobacco products retailer. 16 (j) (1) “Other tobacco products” means, except as provided in paragraph (3) of 17 this subsection, a product that is: 18 (i) intended for human consumption or likely to be consumed, 19 whether smoked, heated, chewed, absorbed, dissolved, inhaled, or ingested in any other 20 manner, and that is made of or derived from, or that contains: 21 1. tobacco; or 22 2. nicotine; or 23 (ii) a component or part used in a consumable product described 24 under item (i) of this paragraph. 25 (2) “Other tobacco products” includes: 26 (i) cigars, premium cigars, pipe tobacco, chewing tobacco, snuff, and 27 snus; and 28 (ii) filters, rolling papers, pipes, and hookahs. 29 (3) “Other tobacco products” does not include: 30 6 SENATE BILL 1056 (i) cigarettes; 1 (ii) electronic smoking devices; 2 (iii) drugs, devices, or combination products authorized for sale by 3 the U.S. Food and Drug Administration under the Federal Food, Drug, and Cosmetic Act; 4 or 5 (iv) tobacco pipes, as defined under § 11–104 of the Tax – General 6 Article. 7 (l) “Other tobacco products retailer” means a person who: 8 (1) sells other tobacco products to consumers; or 9 (2) holds other tobacco products for sale to consumers. 10 16.5–214.2. 11 (A) (1) THIS SUBSECTION DOES NOT APPLY TO: 12 (I) A LICENSED TOBACCONIST ; OR 13 (II) THE SALE OF PREMIUM CIGARS. 14 (2) A LICENSED OTHER TOBAC CO PRODUCTS RETAILER MAY NOT 15 DISPLAY OTHER TOBACC O PRODUCTS FOR SALE UNLESS THE OTHER TOB ACCO 16 PRODUCTS ARE LOCATED BEHIND A COUNTER IN AN AREA ACCESSIBLE O NLY TO THE 17 LICENSED OTHER TOBAC CO PRODUCTS RETAILER AND EMPLOYEES OF THE 18 LICENSED OTHER TOBAC CO PRODUCTS RETAILER . 19 (B) (1) A LICENSED OTHER TOBAC CO PRODUCTS RETAILER MAY NOT 20 SELL CIGARETTES OTHER TOBACCO PRODUC TS TO AN INDIVIDUAL UNL ESS THE 21 LICENSED OTHER TOBAC CO PRODUCTS RETAILER VER IFIES, IN ACCORDANCE WITH 22 PARAGRAPH (2) OF THIS SUBSECTION , THAT THE INDIVIDUAL IS: 23 (I) AT LEAST 21 YEARS OLD; OR 24 (II) 1. AT LEAST 18 YEARS OLD; AND 25 2. AN ACTIVE DUTY MEMBE R OF THE MILITARY IN 26 POSSESSION OF A VALI D MILITARY IDENTIFICATION . 27 SENATE BILL 1056 7 (2) A EXCEPT AS PROVIDED IN PARAGRAPH (3) OF THIS SUBSECTION , 1 A LICENSED OTHER TOBAC CO PRODUCTS RETAILER MAY VERIFY AN INDIVI DUAL’S 2 AGE ONLY: 3 (I) BY MEANS OF A GOVERN MENT–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 (3) A LICENSED OTHER TOBAC CO PRODUCTS RETAILER IS NOT 8 REQUIRED TO VERIFY T HE AGE OF AN INDIVIDUAL AT LEAST 30 YEARS OLD. 9 16.5–217.1. 10 (a) (1) The SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 11 Maryland Department of Health OR ITS DESIGNEE [may] SHALL conduct AT LEAST TWO 12 ONE unannounced inspections of a licensed retailer to ensure the licensee’s compliance with 13 the provisions of this title and § 10–107 of the Criminal Law Article EACH YEAR. 14 (2) IF A LICENSED RETAILE R VIOLATES ANY PROVI SION OF THIS 15 TITLE OR § 10–107 OF THE CRIMINAL LAW ARTICLE, THE MARYLAND DEPARTMENT 16 OF HEALTH SHALL CONDUCT AN ADDITIONAL UNANNO UNCED INSPECTION WIT HIN 17 180 DAYS AFTER THE INITI AL INSPECTION. 18 (b) The Maryland Department of Health OR ITS DESIGNEE may use an 19 individual under the age of 21 years to assist in conducting an inspection under this section. 20 (C) TO DETERMINE THE LOCA TION OF A LICENSED R ETAILER SUBJECT TO 21 AN UNANNOUNCED INSPE CTION, THE MARYLAND DEPARTMENT OF HEALTH OR ITS 22 DESIGNEE SHALL USE T HE LIST OF LICENSED RETAILERS AS OF DECEMBER 31 OF 23 THE PREVIOUS CALENDA R YEAR. 24 16.7–101. 25 (a) In this title the following words have the meanings indicated. 26 (b) “County license” means a license issued by the clerk to sell electronic smoking 27 devices to consumers in a county. 28 (c) (1) “Electronic smoking device” means a device that can be used to deliver 29 aerosolized or vaporized nicotine to an individual inhaling from the device. 30 (2) “Electronic smoking device” includes: 31 8 SENATE BILL 1056 (i) an electronic cigarette, an electronic cigar, an electronic cigarillo, 1 an electronic pipe, an electronic hookah, a vape pen, and vaping liquid; and 2 (ii) except as provided in paragraph (3) of this subsection, any 3 component, part, or accessory of such a device regardless of whether or not it is sold 4 separately, including any substance intended to be aerosolized or vaporized during use of 5 the device. 6 (3) “Electronic smoking device” does not include: 7 (i) a drug, device, or combination product authorized for sale by the 8 U.S. Food and Drug Administration under the Federal Food, Drug, and Cosmetic Act; or 9 (ii) a battery or battery charger when sold separately. 10 (d) “Electronic smoking devices manufacturer” means a person that: 11 (1) manufactures, mixes, or otherwise produces electronic smoking devices 12 intended for sale in the State, including electronic smoking devices intended for sale in the 13 United States through an importer; and 14 (2) (i) [sells electronic smoking devices to a consumer, if the consumer 15 purchases or orders the devices through the mail, a computer network, a telephonic 16 network, or another electronic network, a licensed electronic smoking devices wholesaler 17 distributor, or a licensed electronic smoking devices wholesaler importer in the State; 18 (ii)] if the electronic smoking devices manufacturer also holds a 19 license to act as [an electronic smoking devices retailer or] a vape shop vendor, sells 20 electronic smoking devices IN THE SAME MANNER A S A VAPE SHOP VENDOR to 21 consumers located in the State; or 22 [(iii)] (II) unless otherwise prohibited or restricted under local law, 23 this article, or the Criminal Law Article, distributes sample electronic smoking devices to 24 a licensed [electronic smoking devices retailer or] vape shop vendor. 25 [(e) “Electronic smoking devices retailer” means a person that: 26 (1) sells electronic smoking devices to consumers; 27 (2) holds electronic smoking devices for sale to consumers; or 28 (3) unless otherwise prohibited or restricted under local law, this article, 29 the Criminal Law Article, or § 24–305 of the Health – General Article, distributes sample 30 electronic smoking devices to consumers in the State.] 31 SENATE BILL 1056 9 [(f)] (E) “Electronic smoking devices wholesaler distributor” means a person 1 that: 2 (1) obtains at least 70% of its electronic smoking devices from a holder of 3 an electronic smoking devices manufacturer license under this subtitle or a business entity 4 located in the United States; and 5 (2) (i) holds electronic smoking devices for sale to another person for 6 resale; or 7 (ii) sells electronic smoking devices to another person for resale. 8 [(g)] (F) “Electronic smoking devices wholesaler importer” means a person that: 9 (1) obtains at least 70% of its electronic smoking devices from a business 10 entity located in a foreign country; and 11 (2) (i) holds electronic smoking devices for sale to another person for 12 resale; or 13 (ii) sells electronic smoking devices to another person for resale. 14 [(h)] (G) “Executive Director” means the Executive Director of the Alcohol [and], 15 Tobacco, AND CANNABIS Commission. 16 [(i)] (H) “License” means: 17 (1) a license issued by the Executive Director under § 16.7–203(a) of this 18 title to: 19 (i) act as a licensed electronic smoking devices manufacturer; 20 (ii) act as a licensed electronic smoking devices wholesaler 21 distributor; or 22 (iii) act as a licensed electronic smoking devices wholesaler importer; 23 or 24 (2) a license issued by the clerk under § 16.7–203(b) of this title to[: 25 (i) act as a licensed electronic smoking devices retailer; or 26 (ii)] act as a licensed vape shop vendor. 27 [(j)] (I) “Sell” means to exchange or transfer, or to agree to exchange or 28 transfer, title or possession of property, in any manner or by any means, for consideration. 29 10 SENATE BILL 1056 [(k)] (J) “Vape shop vendor” means an electronic smoking devices business that 1 [derives at least 70% of its revenues, measured by average daily receipts, from the sale of] 2 EXCLUSIVELY SELLS electronic smoking devices and related accessories TO CONSUMERS 3 ON THE PREMISES OF I TS PLACE OF BUSINESS . 4 [(l)] (K) “Vaping liquid” means a liquid that: 5 (1) consists of propylene glycol, vegetable glycerin, or other similar 6 substance; 7 (2) may or may not contain natural or artificial flavors; 8 (3) may or may not contain nicotine; and 9 (4) converts to vapor intended for inhalation when heated in an electronic 10 device. 11 16.7–102. 12 (a) The Executive Director may delegate any power or duty of the Executive 13 Director under this title. 14 (b) Any person licensed under Title 16 or Title 16.5 of this article, or an affiliate, 15 as defined under § 16–402(c) of this article, of a person licensed under Title 16 of this 16 article[: 17 (1) is authorized to manufacture, distribute, or sell electronic smoking 18 devices pursuant to this title in the same capacity as the person is licensed under Title 16 19 or Title 16.5 of this article; and 20 (2) may not be required to] MUST obtain an additional license under this 21 title IN ORDER TO MANUFACT URE, DISTRIBUTE, OR SELL ELECTRONIC S MOKING 22 DEVICES PURSUANT TO THIS TITLE. 23 16.7–201. 24 [(a)] A person must hold an appropriate license before the person may act as: 25 (1) an electronic smoking devices manufacturer; 26 (2) [an electronic smoking devices retailer; 27 (3)] an electronic smoking devices wholesaler distributor; 28 [(4)] (3) an electronic smoking devices wholesaler importer; or 29 SENATE BILL 1056 11 [(5)] (4) a vape shop vendor. 1 [(b) A place of business in which a person acts as an electronic smoking devices 2 retailer or a vape shop vendor must hold an appropriate license.] 3 16.7–202. 4 (a) (1) An applicant for a license to act as an electronic smoking devices 5 manufacturer, electronic smoking devices wholesaler distributor, or electronic smoking 6 devices wholesaler importer shall: 7 (i) obtain an appropriate county license by submitting an 8 application to the Executive Director on the form and containing the information that the 9 Executive Director requires; 10 (ii) indicate the licenses for which the applicant is applying; and 11 (iii) except as provided in paragraph (2) of this subsection, pay to the 12 Executive Director a fee of $25 for each license for which the applicant applies. 13 (2) An applicant for a license to act as an electronic smoking devices 14 wholesaler distributor or electronic smoking devices wholesaler importer shall pay to the 15 Executive Director a fee of $150. 16 (b) (1) An applicant for a license to act as [an electronic smoking devices 17 retailer or] a vape shop vendor: 18 (i) shall obtain a county license by submitting to the clerk an 19 application for each permanent or temporary place of business located in the same 20 enclosure and operated by the same applicant; and 21 (ii) except as provided in paragraph (2) of this subsection, shall pay 22 to the clerk a fee of $25 $300. 23 (2) The application shall: 24 (i) be made on the form that the clerk requires; and 25 (ii) contain the information that the Executive Director requires. 26 (3) (I) FROM EACH LICENSE FEE COLLECTED UNDER THIS 27 SUBSECTION, THE CLERK SHALL DIST RIBUTE: 28 1. $25 TO THE EXECUTIVE DIRECTOR; AND 29 12 SENATE BILL 1056 2. $275 TO THE MARYLAND DEPARTMENT OF HEALTH 1 TO BE USED BY THE DEPARTMENT OR ITS DES IGNEE TO ENFORCE EXI STING LAWS 2 PROHIBITING THE SALE OR DISTRIBUTION OF T OBACCO, TOBACCO PRODUCTS , OR 3 ELECTRONIC SMOKING D EVICES, AS DEFINED IN § 16.7–101 OF THIS ARTICLE , TO 4 INDIVIDUALS UNDER THE AGE OF 21 YEARS. 5 (II) FUNDS DISTRIBUTED UND ER THIS SUBSECTION M AY NOT BE 6 USED TO SUPPLANT EXI STING FUNDING FOR TH E ENFORCEMENT OF LAW S BANNING 7 THE SALE OR DISTRIBU TION OF TOBACCO , TOBACCO PRODUCTS , OR ELECTRONIC 8 SMOKING DEVICES TO I NDIVIDUALS UNDER THE AGE OF 21 YEARS. 9 (c) A licensee shall display a license in the way that the Executive Director 10 requires by regulation. 11 (d) If a person has had a license revoked under § 16.7–207 of this subtitle, the 12 person may not reapply for a license within 1 year after the date when the prior license was 13 revoked. 14 16.7–203. 15 (a) The Executive Director shall issue an appropriate license to each applicant 16 that meets the requirements of this subtitle for a license to act as an electronic smoking 17 devices manufacturer, electronic smoking devices wholesaler distributor, or electronic 18 smoking devices wholesaler importer. 19 (b) The clerk shall issue to each applicant that meets the requirements of this 20 subtitle a license to act as [an electronic smoking devices retailer or] a vape shop vendor. 21 (c) The clerk shall forward a copy of an application received for each license 22 issued under subsection (b) of this section to the Executive Director within 30 days after 23 issuance of the license. 24 16.7–204. 25 (a) An electronic smoking devices manufacturer license authorizes the licensee 26 to: 27 (1) sell electronic smoking devices to: 28 (i) a licensed electronic smoking devices wholesaler located in the 29 State; 30 (ii) an electronic smoking devices wholesaler or retailer located 31 outside the State if the electronic smoking devices may be sold lawfully in Maryland; 32 (iii) a licensed vape shop vendor[; and 33 SENATE BILL 1056 13 (iv) a consumer if: 1 1. the licensee manufactured the devices; and 2 2. the consumer purchases or orders the devices through the 3 mail, a computer network, a telephonic network, or another electronic network]; 4 (2) if the electronic smoking devices manufacturer licensee also holds a 5 license to act as [an electronic smoking devices retailer or] a vape shop vendor, transfer 6 electronic smoking devices to inventory for sale under the [retail license or] vape shop 7 license; and 8 (3) except as otherwise prohibited or restricted under local law, this article, 9 or the Criminal Law Article, distribute electronic smoking devices products to a licensed 10 [electronic smoking devices retailer or] vape shop vendor. 11 [(b) An electronic smoking devices retailer license authorizes the licensee to: 12 (1) sell electronic smoking devices to consumers; 13 (2) buy electronic smoking devices from an electronic smoking devices 14 wholesaler distributor or electronic smoking devices wholesaler importer; 15 (3) if the electronic smoking devices retailer licensee also holds a license to 16 act as an electronic smoking devices manufacturer, sell at retail electronic smoking devices 17 manufactured under the manufacturer license; and 18 (4) except as otherwise prohibited or restricted under local law, this article, 19 the Criminal Law Article, or § 24–305 of the Health – General Article, distribute sample 20 electronic smoking devices products to consumers in the State.] 21 [(c)] (B) An electronic smoking devices wholesaler distributor license or 22 electronic smoking devices wholesaler importer license authorizes the licensee to: 23 (1) sell electronic smoking devices to [electronic smoking devices retailers 24 and] vape shop vendors; 25 (2) buy electronic smoking devices directly from an electronic smoking 26 devices manufacturer and an electronic smoking devices wholesaler distributor or 27 electronic smoking devices wholesaler importer; 28 (3) hold electronic smoking devices; and 29 (4) sell electronic smoking devices to another licensed electronic smoking 30 devices wholesaler distributor or electronic smoking devices wholesaler importer. 31 14 SENATE BILL 1056 [(d)] (C) A vape shop vendor license authorizes the licensee to: 1 (1) sell electronic smoking devices as a vape shop vendor TO CONSUMERS 2 ON THE PREMISES OF T HE LICENSEE’S PLACE OF BUSINESS ; 3 (2) if the vape shop vendor licensee also holds a license to act as an 4 electronic smoking devices manufacturer, sell at retail ON THE VAPE SHOP VEN DOR 5 PREMISES electronic smoking devices manufactured under the manufacturer license; and 6 (3) buy electronic smoking devices from an electronic smoking devices 7 manufacturer, an electronic smoking devices wholesaler distributor, or an electronic 8 smoking devices wholesaler importer. 9 16.7–204.1. 10 (a) (1) A [retail licensee] VAPE SHOP VENDOR shall post a sign in a location 11 that is clearly visible to the consumer that states: 12 “No person under the age of 21 may be sold tobacco products without military 13 identification”. 14 [(b)] (2) The sign required under PARAGRAPH (1) OF this [section] 15 SUBSECTION shall be written in letters at least one–half inch high. 16 (B) (1) A VAPE SHOP VEND OR MAY NOT SELL CIGARETTES ELECTRONIC 17 SMOKING DEVICES TO AN INDIVIDUAL UNL ESS THE VAPE SHOP VE NDOR VERIFIES , 18 IN ACCORDANCE WITH P ARAGRAPH (2) OF THIS SUBSECTION , THAT THE INDIVIDUAL 19 IS: 20 (I) AT LEAST 21 YEARS OLD; OR 21 (II) 1. AT LEAST 18 YEARS OLD; AND 22 2. AN ACTIVE DUTY MEMBE R OF THE MILITARY IN 23 POSSESSION OF A VALI D MILITARY IDENTIFIC ATION. 24 (2) A EXCEPT AS PROVIDED IN PARAGRAPH (3) OF THIS SUBSECTION , 25 A VAPE SHOP VENDOR MAY VERIFY AN INDIVIDUAL ’S AGE ONLY: 26 (I) BY MEANS OF A GOVERNMENT –ISSUED PHOTO 27 IDENTIFICATION CONTA INING THE INDIVIDUAL ’S DATE OF BIRTH; AND 28 (II) IN A DIRECT FACE –TO–FACE EXCHANGE WITHOU T THE 29 ASSISTANCE OF ANY EL ECTRONIC OR MECHANIC AL DEVICE. 30 SENATE BILL 1056 15 (3) A LICENSED VAPE SHOP V ENDOR IS NOT REQUIRE D TO VERIFY 1 THE AGE OF AN INDIVIDUAL AT LEAST 30 YEARS OLD. 2 16.7–204.2. 3 A VAPE SHOP VENDOR MAY NOT DISPLAY ELECTRON IC SMOKING DEVICES F OR 4 SALE UNLESS THE ELEC TRONIC SMOKING DEVIC ES ARE LOCATED BEHIN D A 5 COUNTER IN AN AREA A CCESSIBLE ONLY TO TH E VAPE SHOP VENDOR A ND 6 EMPLOYEES OF THE VAP E SHOP VENDOR . 7 16.7–206. 8 (a) (1) A [licensed electronic smoking devices retailer or a] licensed vape shop 9 vendor may not assign the license. 10 (2) If a licensed electronic smoking devices wholesaler distributor or 11 electronic smoking devices wholesaler importer sells the licensee’s electronic smoking 12 devices business and pays to the Executive Director a license assignment fee of $10, the 13 licensee may assign the license to the buyer of the business if the buyer otherwise qualifies 14 under this title for an electronic smoking devices wholesaler’s distributor or importer 15 license. 16 (b) If the electronic smoking devices business of a licensee is transferred because 17 of bankruptcy, death, incompetency, receivership, or otherwise by operation of law, the 18 Executive Director shall transfer the license without charge to the new owner of the 19 licensee’s business if the transferee otherwise qualifies under this title for the license being 20 transferred. 21 (c) (1) If a licensed electronic smoking devices wholesaler distributor or 22 electronic smoking devices wholesaler importer surrenders the license to the Executive 23 Director and if no disciplinary proceedings are pending against the licensee, the Executive 24 Director shall refund a pro rata portion of the license fee for the unexpired term of the 25 license. 26 (2) A [licensed electronic smoking devices retailer or a] licensed vape shop 27 vendor is not allowed a refund for the unexpired term of the license. 28 16.7–211. 29 (a) A person may not act, attempt to act, or offer to act as an electronic smoking 30 devices manufacturer, [an electronic smoking devices retailer,] an electronic smoking 31 devices wholesaler distributor, an electronic smoking devices wholesaler importer, or a 32 vape shop vendor in the State unless the person has an appropriate license. 33 16 SENATE BILL 1056 (b) (1) A person that violates this section is guilty of a misdemeanor and on 1 conviction is subject to a fine not exceeding $1,000 or imprisonment not exceeding 30 days 2 or both. 3 (2) Each day that a violation of this section continues is a separate offense. 4 16.7–213.1. 5 (a) (1) The SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 6 Maryland Department of Health OR ITS DESIGNEE [may] SHALL conduct AT LEAST TWO 7 ONE unannounced inspections of licensed [retailers] VAPE SHOP VENDORS to ensure the 8 licensee’s compliance with the provisions of this title and § 10–107 of the Criminal Law 9 Article EACH YEAR. 10 (2) IF A LICENSED VAPE SH OP VENDOR VIOLATES A NY PROVISION OF 11 THIS TITLE OR § 10–107 OF THE CRIMINAL LAW ARTICLE, THE MARYLAND 12 DEPARTMENT OF HEALTH SHALL CONDUCT AN ADDITIONAL UNANNO UNCED 13 INSPECTION WITHIN 180 DAYS AFTER THE INITI AL INSPECTION. 14 (b) The Maryland Department of Health OR ITS DESIGNEE may use an 15 individual under the age of 21 years to assist in conducting an inspection under this section. 16 (C) TO DETERMINE THE LOCA TION OF A LICENSED V APE SHOP VENDOR 17 SUBJECT TO AN UNANNO UNCED INSPECTION , THE MARYLAND DEPARTMENT OF 18 HEALTH OR ITS DESIGNE E SHALL USE THE LIST OF LICENSED VAPE SHO P VENDORS 19 AS OF DECEMBER 31 OF THE PREVIOUS CALE NDAR YEAR. 20 Article – Criminal Law 21 10–107. 22 (a) This section does not apply to the distribution of a coupon that is redeemable 23 for a tobacco product, if the coupon is: 24 (1) contained in a newspaper, magazine, or other type of publication in 25 which the coupon is incidental to the primary purpose of the publication; or 26 (2) sent through the mail. 27 (b) (1) This subsection does not apply to the distribution of a tobacco product 28 or tobacco paraphernalia to: 29 (i) an individual under the age of 21 years who is acting solely as 30 the agent of the individual’s employer if the employer distributes tobacco products or 31 tobacco paraphernalia for commercial purposes; or 32 SENATE BILL 1056 17 (ii) a purchaser or recipient who: 1 1. is at least 18 years of age; 2 2. is an active duty member of the military; and 3 3. presents a valid military identification. 4 (2) A person who distributes tobacco products for commercial purposes, 5 including a person licensed under Title 16, Title 16.5, Title 16.7, or Title 16.9 of the 6 Business Regulation Article, PERSONALLY OR THROUG H AN EMPLOYEE , may not 7 distribute to an individual under the age of 21 years: 8 (i) a tobacco product; 9 (ii) tobacco paraphernalia; or 10 (iii) a coupon redeemable for a tobacco product. 11 (c) A person not described in subsection (b)(2) of this section may not: 12 (1) purchase for or sell a tobacco product to an individual under the age of 13 21 years, unless the individual: 14 (i) is at least 18 years of age; 15 (ii) is an active duty member of the military; and 16 (iii) presents a valid military identification; or 17 (2) distribute tobacco paraphernalia to an individual under the age of 21 18 years, unless the individual: 19 (i) is at least 18 years of age; 20 (ii) is an active duty member of the military; and 21 (iii) presents a valid military identification. 22 (d) In a prosecution for a violation of this section, it is a defense that the defendant 23 examined, IN A DIRECT, FACE–TO–FACE EXCHANGE , the purchaser’s or recipient’s 24 driver’s license or other valid identification issued by a government unit that positively 25 identified the purchaser or recipient as at least 21 years of age or as at least 18 years of age 26 and an active duty member of the military. 27 (e) (1) A person who violates this section is guilty of a misdemeanor and on 28 conviction is subject to a fine not exceeding: 29 18 SENATE BILL 1056 (i) [$300] $500 for a first violation; 1 (ii) $1,000 for a second violation occurring within 2 years after the 2 first violation; and 3 (iii) $3,000 for each subsequent violation occurring within 2 years 4 after the preceding violation. 5 (2) IN ADDITION TO THE PE NALTIES UNDER PARAGR APH (1) OF THIS 6 SUBSECTION, IF A PERSON HOLDS A LICENSE UNDER TITLE 16, TITLE 16.5, TITLE 7 16.7, OR TITLE 16.9 OF THE BUSINESS REGULATION ARTICLE, THE COURT SHALL 8 ORDER THE EXECUTIVE DIRECTOR OF THE ALCOHOL, TOBACCO, AND CANNABIS 9 COMMISSION TO : 10 (I) SUSPEND THE LICENSE FOR: 11 1. A SECOND VIOLATION , NOT MORE THAN 90 DAYS; AND 12 2. EACH SUBSEQUENT VIOL ATION, NOT MORE THAN 180 13 DAYS; AND 14 (II) FOR EACH SUBSEQUENT VIOLATION, REVOKE THE LICENSE . 15 (3) FOR A DETERMINATION M ADE BY A COURT UNDER PARAGRAPH 16 (2) OF THIS SUBSECTION , THE CLERK OF THE COU RT SHALL SEND A COPY OF THE 17 FINAL ORDER ISSUED B Y THE COURT TO THE EXECUTIVE DIRECTOR OF THE 18 ALCOHOL, TOBACCO, AND CANNABIS COMMISSION. 19 [(2)] (3) (4) Issuance of a civil citation for the sale of a tobacco product to an 20 individual under the age of 21 years precludes a prosecution for a violation of § 24–307 of 21 the Health – General Article arising out of the same violation. 22 (f) For purposes of this section, each separate incident at a different time and 23 occasion is a violation. 24 Article – Health – General 25 24–305. 26 (a) This section does not apply to a tobacco product that is regulated under Title 27 16 of the Business Regulation Article. 28 (b) (1) [Except] SUBJECT TO PARAGRAPH (3) AND EXCEPT as provided in 29 paragraph (2) of this subsection, a person may not [sell]: 30 SENATE BILL 1056 19 (I) SELL, distribute, or offer for sale to an individual under the age 1 of 21 years an electronic smoking device, as defined in § 16.7–101(c) of the Business 2 Regulation Article; 3 (II) DISPLAY ELECTRONIC SM OKING DEVICES , AS DEFINED IN § 4 16.7–101(C) OF THE BUSINESS REGULATION ARTICLE, FOR SALE UNLESS THE 5 ELECTRONIC SMOKING D EVICES ARE LOCATED BE HIND A COUNTER IN AN AREA 6 ACCESSIBLE ONLY TO T HE PERSON AND EMPLOY EES OF THE PERSON ; OR 7 (III) EXCEPT AS PROVIDED IN PARAGRAPH (4) OF THIS 8 SUBSECTION, SELL ELECTRONIC SMOK ING DEVICES, AS DEFINED IN § 16.7–101(C) 9 OF THE BUSINESS REGULATION ARTICLE, UNLESS THE PERSON VE RIFIES THAT THE 10 INDIVIDUAL IS AT LEA ST 21 YEARS OLD. 11 (2) This subsection does not apply to[: 12 (i) An] AN electronic smoking device that contains or delivers 13 nicotine intended for human consumption if the device has been approved by the United 14 States Food and Drug Administration for sale as a tobacco cessation product and is being 15 marketed and sold solely for this purpose[; or 16 (ii) A purchaser or recipient who: 17 1. Is at least 18 years of age; 18 2. Is an active duty member of the military; and 19 3. Presents a valid military identification]. 20 (3) SUBJECT TO PARAGRAPH (4) OF THIS SUBSECTION , A PERSON 21 MAY VERIFY AN INDIVI DUAL’S AGE ONLY: 22 (I) BY MEANS OF A GOVERNM ENT–ISSUED PHOTO 23 IDENTIFICATION CONTA INING THE INDIVIDUAL ’S DATE OF BIRTH; AND 24 (II) IN A DIRECT FACE –TO–FACE EXCHANGE INCLUD ING THE 25 ASSISTANCE OF ANY EL ECTRONIC OR MECHANIC AL DEVICE. 26 (4) A PERSON IS NOT REQUIR ED TO VERIFY THE AGE OF AN 27 INDIVIDUAL AT LEAST 30 YEARS OLD. 28 (c) (1) A person that violates this section is subject to a civil penalty not 29 exceeding: 30 20 SENATE BILL 1056 (i) $300 for a first violation; 1 (ii) $1,000 for a second violation occurring within 24 months after 2 the first violation; and 3 (iii) $3,000 for each subsequent violation occurring within 24 months 4 after the preceding violation. 5 (2) Issuance of a civil citation for a violation of this section precludes 6 prosecution under § 10–107 of the Criminal Law Article arising out of the same violation. 7 (3) If a violation is committed by a person acting on behalf of a retailer, the 8 civil penalty imposed under paragraph (1) of this subsection shall be paid by the retailer. 9 (d) In a prosecution for a violation of this section, it is a defense that the defendant 10 examined the purchaser’s or recipient’s driver’s license or other valid identification issued 11 by a government unit that positively identified the purchaser or recipient as at least 21 12 years of age [or as at least 18 years of age and an active duty member of the military]. 13 (e) (1) In this subsection, “designee” means a retired sworn law enforcement 14 officer employed by THE DEPARTMENT OR a county health officer or an employee of THE 15 DEPARTMENT OR a local health department trained in civil enforcement. 16 (2) [A] THE SECRETARY, THE SECRETARY’S DESIGNEE, A sworn law 17 enforcement officer, a county health officer, or a designee of a county health officer may 18 issue a civil citation for a violation of this section. 19 (3) A citation issued under this section shall include: 20 (i) The name and address of the person charged; 21 (ii) The nature of the violation; 22 (iii) The location and time of the violation; 23 (iv) The amount of the civil penalty; 24 (v) The manner, location, and time in which the civil penalty may be 25 paid; 26 (vi) A notice stating the person’s right to elect to stand trial for the 27 violation; and 28 (vii) A warning that failure to pay the civil penalty or to contest 29 liability in a timely manner in accordance with the citation: 30 1. Is an admission of liability; and 31 SENATE BILL 1056 21 2. May result in entry of a default judgment that may include 1 the civil penalty, court costs, and administrative expenses. 2 (4) The [sworn law enforcement officer] SECRETARY, SECRETARY’S 3 DESIGNEE, county health officer, or COUNTY HEALTH OFFICE R’S designee shall retain a 4 copy of the citation issued under this section. 5 (5) (i) 1. A person who receives a citation from THE SECRETARY, 6 THE SECRETARY’S DESIGNEE, a county health officer, or A COUNTY HEALTH OFFI CER’S 7 designee under this section may elect to stand trial for the violation by filing a notice of 8 intention to stand trial with the county health officer or designee at least 5 days before the 9 date set in the citation for the payment of the civil penalty. 10 2. After receiving a notice of intention to stand trial under 11 subsubparagraph 1 of this subparagraph, the SECRETARY, SECRETARY’S DESIGNEE, 12 county health officer, or COUNTY HEALTH OFFICE R’S designee shall forward the notice 13 and a copy of the citation to the District Court. 14 (ii) A person who receives a citation from a sworn law enforcement 15 officer under this section may elect to stand trial for the violation by filing a notice of 16 intention to stand trial and a copy of the citation with the District Court at least 5 days 17 before the date set in the citation for payment of the civil penalty. 18 (6) (i) After receiving a citation and notice under this section, the 19 District Court shall schedule the case for trial and notify the defendant of the trial date. 20 (ii) In a proceeding before the District Court, a violation of this 21 section shall be prosecuted in the same manner and to the same extent as a municipal 22 infraction under §§ 6–108 through 6–115 of the Local Government Article. 23 (7) The District Court shall remit any penalties collected for a violation of 24 this section to the county in which the violation occurred. 25 (8) Adjudication of a violation of this section is not a criminal conviction for 26 any purpose. 27 24–307. 28 (a) (1) This section does not apply to the distribution of a coupon that is 29 redeemable for a tobacco product if the coupon is: 30 (i) Contained in a newspaper, a magazine, or any other type of 31 publication in which the coupon is incidental to the primary purpose of the publication; or 32 (ii) Sent through the mail. 33 22 SENATE BILL 1056 (2) This section does not apply to the distribution of a tobacco product or 1 tobacco paraphernalia to[: 2 (i) An] AN individual under the age of 21 years who is acting solely 3 as the agent of the individual’s employer if the employer distributes tobacco products or 4 tobacco paraphernalia for commercial purposes[; or 5 (ii) A purchaser or recipient who: 6 1. Is at least 18 years of age; 7 2. Is an active duty member of the military; and 8 3. Presents a valid military identification]. 9 (b) (1) A person who distributes tobacco products for commercial purposes, 10 including a person licensed under Title 16, Title 16.5, Title 16.7, or Title 16.9 of the 11 Business Regulation Article, may not [distribute]: 12 (I) DISTRIBUTE to an individual under the age of 21 years: 13 [(1)] 1. A tobacco product; 14 [(2)] 2. Tobacco paraphernalia; or 15 [(3)] 3. A coupon redeemable for a tobacco product; OR 16 (II) DISPLAY TOBACCO PRODU CTS FOR SALE UNLESS THE 17 TOBACCO PRODUCTS ARE LOCATED BEHIND A COU NTER IN AN AREA ACCE SSIBLE 18 ONLY TO THE PERSON A ND EMPLOYEES OF THE PERSON; OR 19 (III) EXCEPT AS PROVIDED IN PARAGRAPH (3) OF THIS 20 SUBSECTION, SELL TOBACCO PRODUCT S UNLESS THE PERSON VERIFIES THAT THE 21 INDIVIDUAL IS AT LEA ST 21 YEARS OLD. 22 (2) A PERSON WHO DISTRIBUT ES TOBACCO PRODUCTS MAY VERIFY 23 AN INDIVIDUAL’S AGE ONLY: 24 (I) BY MEANS OF A GOVERNM ENT–ISSUED PHOTO 25 IDENTIFICATION CONTAINING THE INDIV IDUAL’S DATE OF BIRTH; AND 26 (II) IN A DIRECT FACE –TO–FACE EXCHANGE INCLUD ING THE 27 ASSISTANCE OF ANY EL ECTRONIC OR MECHANIC AL DEVICE. 28 SENATE BILL 1056 23 (3) A PERSON WHO DISTRIBUT ES TOBACCO PRODUCTS IS NOT 1 REQUIRED TO VERIFY T HE AGE OF AN INDIVID UAL AT LEAST 30 YEARS OLD. 2 (c) (1) A person who violates subsection (b) of this section is subject to a civil 3 penalty not exceeding: 4 (i) $300 for a first violation; 5 (ii) $1,000 for a second violation occurring within 24 months after 6 the first violation; and 7 (iii) $3,000 for each subsequent violation occurring within 24 months 8 after the preceding violation. 9 (2) The local health departments shall report violations of subsection (b) of 10 this section to the Executive Director of the Alcohol [and], Tobacco, AND CANNABIS 11 Commission. 12 (3) Issuance of a civil citation for a violation of this section precludes 13 prosecution under § 10–107 of the Criminal Law Article arising out of the same violation. 14 (4) If a violation is committed by a person acting on behalf of a retailer, the 15 civil penalty imposed under paragraph (1) of this subsection shall be paid by the retailer. 16 (d) In a prosecution for a violation of subsection (b) of this section, it is a defense 17 that the defendant examined the purchaser’s or recipient’s driver’s license or other valid 18 identification issued by a governmental unit that positively identified the purchaser or 19 recipient as at least 21 years old [or as at least 18 years of age and an active duty member 20 of the military]. 21 (e) (1) In this subsection, “designee” means a retired sworn law enforcement 22 officer employed by THE SECRETARY OR a county health officer or an employee of a local 23 health department trained in civil enforcement. 24 (2) [A] THE SECRETARY, THE SECRETARY’S DESIGNEE, A sworn law 25 enforcement officer, a county health officer, or a designee of a county health officer may 26 issue a civil citation for a violation of subsection (b) of this section. 27 (3) A citation issued under this subsection shall include: 28 (i) The name and address of the person charged; 29 (ii) The nature of the violation; 30 (iii) The location and time of the violation; 31 24 SENATE BILL 1056 (iv) The amount of the civil penalty; 1 (v) The manner, location, and time in which the civil penalty may be 2 paid; 3 (vi) A notice stating the person’s right to elect to stand trial for the 4 violation; and 5 (vii) A warning that failure to pay the civil penalty or to contest 6 liability in a timely manner in accordance with the citation: 7 1. Is an admission of liability; and 8 2. May result in entry of a default judgment that may include 9 the civil penalty, court costs, and administrative expenses. 10 (4) The SECRETARY, SECRETARY’S DESIGNEE, county health officer, or 11 designee shall retain a copy of the citation issued under this subsection. 12 (5) (i) A person who receives a citation from THE SECRETARY, THE 13 SECRETARY’S DESIGNEE, a county health officer, or designee under this subsection may 14 elect to stand trial for the violation by filing a notice of intention to stand trial with the 15 county health officer or designee at least 5 days before the date set in the citation for the 16 payment of the civil penalty. 17 (ii) After receiving a notice of intention to stand trial under 18 subparagraph (i) of this paragraph, the county health officer or designee shall forward the 19 notice and a copy of the citation to the District Court. 20 (6) (i) After receiving a citation and notice under this subsection, the 21 District Court shall schedule the case for trial and notify the defendant of the trial date. 22 (ii) In a proceeding before the District Court, a violation of 23 subsection (b) of this section shall be handled in the same manner as a municipal infraction 24 under §§ 6–108 through 6–115 of the Local Government Article. 25 (7) The District Court shall remit any penalties collected for a violation of 26 subsection (b) of this section to the county in which the violation occurred. 27 (8) Adjudication of a violation of subsection (b) of this section is not a 28 criminal conviction for any purpose. 29 (f) (1) The Maryland Department of Health, in collaboration and consultation 30 with [the Office of the Comptroller,] the Executive Director of the Alcohol [and], Tobacco, 31 AND CANNABIS Commission, local health departments, and local law enforcement 32 agencies, shall develop ongoing strategies for enforcement of §§ 10–107 and 10–108 of the 33 Criminal Law Article. 34 SENATE BILL 1056 25 (2) On or before October 1 each year, the Department shall report to the 1 General Assembly, in accordance with § 2–1257 of the State Government Article, on: 2 (i) The development of enforcement strategies required under 3 paragraph (1) of this subsection; and 4 (ii) Training and assistance to tobacco retailers to improve 5 compliance with § 10–107 of the Criminal Law Article. 6 SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 7 as follows: 8 Article – Health Occupations 9 12–403. 10 (c) Except as otherwise provided in this section, a pharmacy for which a 11 pharmacy permit has been issued under this title: 12 (22) (i) May provide to an ophthalmologist for office use, without a 13 patient–specific prescription: 14 1. Compound antibiotics for the emergency treatment of 15 bacterial endophthalmitis or viral retinitis; and 16 2. Compound antivascular endothelial growth factor agents 17 for the emergency treatment of neovascular glaucoma, wet macular degeneration, or 18 macular edema; and 19 (ii) Shall require the ophthalmologist to inform the pharmacy of the 20 identity of any patient to whom the drugs are administered; [and] 21 (23) Subject to § 12–510 of this title, may provide compounded nonsterile 22 preparations or compounded sterile preparations without a patient–specific prescription to 23 a licensed veterinarian who intends to dispense the compounded nonsterile preparations 24 or compounded sterile preparations in accordance with § 2–313(c) of the Agriculture Article; 25 AND 26 (24) MAY NOT SELL TOBACCO PRODUCTS, OTHER TOBACCO 27 PRODUCTS, AS DEFINED IN § 16.5–101 OF THE BUSINESS REGULATION ARTICLE, OR 28 ELECTRONIC SMOKING DEVI CES, AS DEFINED IN § 16.7–101 OF THE BUSINESS 29 REGULATION ARTICLE. 30 SECTION 2. 3. AND BE IT FURTHER ENACTED, That, on or before December 31, 31 2024 October 1, 2025, the Alcohol, Tobacco, and Cannabis Commission, in conjunction with 32 26 SENATE BILL 1056 the Maryland Department of Health, the Comptroller, and the State Department of 1 Education, shall report to the Senate Finance Committee, the House Economic Matters 2 Committee, and the House Health and Government Operations Committee, in accordance 3 with § 2–1257 of the State Government Article, on: 4 (1) the number of retailers of cigarettes, other tobacco products, and 5 electronic smoking devices licensed under Title 16, Title 16.5, or Title 16.7 of the Business 6 Regulation Article, including information regarding the proximity of retailers to schools 7 and health care facilities; 8 (2) the processes and procedures currently used by the Alcohol, Tobacco, 9 and Cannabis Commission to maintain a list of all operating businesses that hold a license 10 under Title 16, Title 16.5, or Title 16.7 of the Business Regulation Article; 11 (3) the geographic density of businesses currently holding a license under 12 Title 16, Title 16.5, or Title 16.7 of the Business Regulation Article; 13 (4) the feasibility and resulting impact of limiting or establishing a 14 maximum number of licenses that could be issued under Title 16, Title 16.5, or Title 16.7 15 of the Business Regulation Article; and 16 (5) with regard to the use of tobacco, other tobacco products, and electric 17 smoking devices, including the use of flavored tobacco products, by individuals under the 18 age of 21 years in the State, an analysis of: 19 (i) its prevalence in the described population; 20 (ii) the public health impacts; and 21 (iii) the economic impacts. 22 SECTION 4. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall take 23 effect October 1, 2025. 24 SECTION 3. 5. AND BE IT FURTHER ENACTED, That , except as provided in 25 Section 4 of this Act, this Act shall take effect October 1, 2024. 26