EXPLANATION: CAPITALS INDICATE MATTER ADDE D TO EXISTING LAW . [Brackets] indicate matter deleted from existing law. *hb0012* HOUSE BILL 12 A3 5lr0082 (PRE–FILED) CF SB 214 By: Chair, Economic Matters Committee (By Request – Departmental – Alcohol, Tobacco, and Cannabis Commission) Requested: September 19, 2024 Introduced and read first time: January 8, 2025 Assigned to: Economic Matters A BILL ENTITLED AN ACT concerning 1 Cannabis – Sale and Distribution – Tetrahydrocannabinol Offenses 2 FOR the purpose of authorizing the officers and employees of the Field Enforcement 3 Division of the Alcohol, Tobacco, and Cannabis Commission to issue a citation for a 4 certain violation; providing that the display or offering of tetrahydrocannabinol for 5 sale is prima facie evidence of selling tetrahydrocannabinol; prohibiting the sale or 6 distribution of certain products that contain tetrahydrocannabinol or are advertised 7 as containing tetrahydrocannabinol; authorizing the Executive Director of the 8 Commission to seize, destroy, or confiscate a certain unlawful product; and generally 9 relating to the sale and distribution of tetrahydrocannabinol and related offenses. 10 BY repealing and reenacting, with amendments, 11 Article – Alcoholic Beverages and Cannabis 12 Section 1–313 and 6–207 13 Annotated Code of Maryland 14 (2024 Replacement Volume) 15 BY repealing and reenacting, without amendments, 16 Article – Alcoholic Beverages and Cannabis 17 Section 36–1102(a) through (d) 18 Annotated Code of Maryland 19 (2024 Replacement Volume) 20 BY adding to 21 Article – Alcoholic Beverages and Cannabis 22 Section 36–1104 23 Annotated Code of Maryland 24 (2024 Replacement Volume) 25 2 HOUSE BILL 12 BY repealing and reenacting, without amendments, 1 Article – Criminal Law 2 Section 10–108 3 Annotated Code of Maryland 4 (2021 Replacement Volume and 2024 Supplement) 5 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 6 That the Laws of Maryland read as follows: 7 Article – Alcoholic Beverages and Cannabis 8 1–313. 9 (a) There is a Field Enforcement Division in the Office of the Executive Director. 10 (b) (1) The Field Enforcement Division may employ officers and employees as 11 provided in the State budget. 12 (2) The officers and employees of the Field Enforcement Division: 13 (i) shall be sworn police officers; 14 (ii) shall have the powers, duties, and responsibilities of peace 15 officers to enforce the provisions of this article relating to: 16 1. the unlawful importation of alcoholic beverages, tobacco, 17 and cannabis into the State; 18 2. the unlawful manufacture of alcoholic beverages, tobacco, 19 and cannabis in the State; 20 3. the transportation and distribution throughout the State 21 of alcoholic beverages, tobacco, and cannabis that are manufactured illegally and on which 22 any alcoholic beverages taxes, tobacco taxes, or cannabis taxes imposed by the State are 23 due and unpaid; and 24 4. the manufacture, sale, barter, transportation, 25 distribution, or other form of owning, handling, or dispersing alcoholic beverages, tobacco, 26 or cannabis by any person not licensed or authorized under this article, provisions of the 27 Tax – General Article relating to alcoholic beverages, tobacco, or cannabis, or provisions of 28 the Business Regulation Article relating to alcoholic beverages, tobacco, or cannabis; [and] 29 (iii) MAY ISSUE A CITATION OR OTHER CHARGING DO CUMENT TO 30 A PERSON WHO HAS COMMI TTED A VIOLATION OF § 10–108 OF THE CRIMINAL LAW 31 ARTICLE; AND 32 HOUSE BILL 12 3 (IV) may make cooperative arrangements for and work and cooperate 1 with the Office of the Comptroller, local State’s Attorneys, sheriffs, bailiffs, police, and other 2 prosecuting and peace officers to enforce this article. 3 (c) The Field Enforcement Division: 4 (1) shall consult with and advise the local State’s Attorneys and other law 5 enforcement officials and police officers regarding enforcement problems in their respective 6 jurisdictions; and 7 (2) may recommend changes to improve the administration of this article, 8 provisions of the Tax – General Article relating to alcoholic beverages, tobacco, and 9 cannabis, and provisions of the Business Regulation Article relating to tobacco. 10 6–207. 11 (A) IN THIS SECTION , “TETRAHYDROCANNABINOL ” HAS THE MEANING 12 STATED IN § 36–1102 OF THIS ARTICLE. 13 (B) In a prosecution for selling alcoholic beverages OR 14 TETRAHYDROCANNABINOL without an appropriate license, proof that the defendant 15 displayed or offered alcoholic beverages OR TETRAHYDROCANNABI NOL for sale, or kept 16 a place of business where alcoholic beverages OR TETRAHYDROCANNABI NOL were 17 displayed or offered for sale, is prima facie evidence that the defendant sold alcoholic 18 beverages OR TETRAHYDROCANNABIN OL. 19 36–1102. 20 (a) (1) In this section the following words have the meanings indicated. 21 (2) “Hemp” has the meaning stated in § 14–401 of the Agriculture Article. 22 (3) “Tetrahydrocannabinol” means: 23 (i) any tetrahydrocannabinol, including 24 delta–8–tetrahydrocannabinol, delta –9–tetrahydrocannabinol, and 25 delta–10–tetrahydrocannabinol, regardless of how derived; 26 (ii) any other cannabinoid, except cannabidiol that the 27 Administration determines to cause intoxication; and 28 (iii) any other chemically similar compound, substance, derivative, or 29 isomer of tetrahydrocannabinol, as identified by the Administration. 30 (4) “Tincture” means a solution that is: 31 4 HOUSE BILL 12 (i) dissolved in alcohol, glycerin, or vegetable oil; and 1 (ii) distributed in a dropper bottle of 4 ounces or less. 2 (b) (1) A person may not sell or distribute a product intended for human 3 consumption or inhalation that contains more than 0.5 milligrams of tetrahydrocannabinol 4 per serving or 2.5 milligrams of tetrahydrocannabinol per package unless the person is 5 licensed under § 36–401 of this title and the product complies with the: 6 (i) manufacturing standards established under § 36–203 of this 7 title; 8 (ii) laboratory testing standards established under § 36–203 of this 9 title; and 10 (iii) packaging and labeling standards established under § 36–203 of 11 this title. 12 (2) A person may not sell or distribute a product described under 13 paragraph (1) of this subsection to an individual under the age of 21 years. 14 (c) A person may not sell or distribute a cannabinoid product that is not derived 15 from naturally occurring biologically active chemical constituents. 16 (d) (1) Notwithstanding subsection (b) of this section and subject to paragraph 17 (2) of this subsection, it is not a violation of this section for a person to sell or distribute a 18 hemp–derived tincture intended for human consumption that contains: 19 (i) a ratio of cannabidiol to tetrahydrocannabinol of at least 15 to 1; 20 and 21 (ii) 2.5 milligrams or less of tetrahydrocannabinol per serving and 22 100 milligrams or less of tetrahydrocannabinol per package. 23 (2) To sell or distribute a hemp–derived tincture under this subsection, a 24 person must provide, as required by the Administration, tincture samples for the purpose 25 of testing to determine chemical potency and composition levels and to detect and quantify 26 contaminants. 27 36–1104. 28 (A) IN THIS SECTION , “TETRAHYDROCANNABINOL ” HAS THE MEANING 29 STATED IN § 36–1102 OF THIS SUBTITLE. 30 (B) A PERSON MAY NOT SELL OR DISTRIBUTE A PRODUCT CONTAINING 31 TETRAHYDROCANNABINOL THAT VIOLATES THE PO TENCY, PACKAGING, OR 32 HOUSE BILL 12 5 LABELING REQUIREMENT S UNDER § 36–203 OR § 36–203.1 OF THIS TITLE OR ANY 1 REGULATIONS ADOPTED UNDER THOSE SECTIONS . 2 (C) (1) A PERSON MAY NOT S ELL OR DISTRIBUTE A PRODUCT THAT IS 3 ADVERTISED AS CONTAI NING AN AMOUNT OF TE TRAHYDROCANNABINOL T HAT 4 VIOLATES § 36–1102 OF THIS SUBTITLE. 5 (2) ADVERTISING UNDER PAR AGRAPH (1) OF THIS SUBSECTION 6 INCLUDES PACKAGING , LABELING, OR ELECTRONIC COMMUN ICATION. 7 (D) THE EXECUTIVE DIRECTOR MAY SEIZE , DESTROY, OR CONFISCATE A 8 PRODUCT THAT IS : 9 (1) OFFERED OR DISPLAYED FOR SALE TO A CONSUM ER IN A 10 LOCATION THAT IS NOT APPROPRIATELY LICENS ED UNDER SUBTITLE 4 OF THIS 11 TITLE; AND 12 (2) THE SUBJECT OF A VIO LATION UNDER SUBSECTION (B) OR (C) OF 13 THIS SECTION. 14 (E) (1) IF A PERSON WHO IS NO T A CANNABIS LICENSE E VIOLATES 15 SUBSECTION (B) OR (C) OF THIS SECTION, THE PERSON: 16 (I) MAY BE CHARGED BY A CITATION; AND 17 (II) IS GUILTY OF A MISDE MEANOR AND ON CONVIC TION IS 18 SUBJECT TO A FINE NO T EXCEEDING $5,000. 19 (2) IF A CANNABIS LICENSE E VIOLATES SUBSECTIO N (B) OR (C) OF 20 THIS SECTION, THE LICENSEE IS SUBJ ECT TO DISCIPLINARY ACTION BY THE 21 ADMINISTRATION IN ACC ORDANCE WITH § 36–202 OF THIS TITLE. 22 Article – Criminal Law 23 10–108. 24 (a) A person who distributes products containing delta –8– or 25 delta–10–tetrahydrocannabinol, including a person licensed under Title 16, Title 16.5, Title 26 16.7, Title 16.9, or Title 17 of the Business Regulation Article, may not distribute, purchase 27 for sale, or sell a product containing delta–8– or delta–10–tetrahydrocannabinol to an 28 individual under the age of 21 years. 29 (b) In a prosecution for a violation of this section, it is a defense that the defendant 30 examined the purchaser’s or recipient’s driver’s license, or other valid identification issued 31 6 HOUSE BILL 12 by a governmental unit, that positively identified the purchaser or recipient as being at 1 least 21 years old. 2 (c) Any website owned, managed, or operated by a person who distributes or sells 3 a product containing delta–8– or delta–10–tetrahydrocannabinol shall employ a neutral 4 age–screening mechanism that verifies that the user is at least 21 years old, including by 5 using an age–gate, age–screen, or age–verification mechanism. 6 (d) A person who violates this section is guilty of a misdemeanor and on conviction 7 is subject to a fine not exceeding: 8 (1) $300 for a first violation; 9 (2) $1,000 for a second violation occurring within 2 years after the first 10 violation; and 11 (3) $3,000 for each subsequent violation occurring within 2 years after the 12 preceding violation. 13 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 14 1, 2025. 15