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.
*hb1241*
HOUSE BILL 1241
C2 5lr3247
CF SB 842
By: Delegate Amprey
Introduced and read first time: February 7, 2025
Assigned to: Economic Matters
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 24, 2025
CHAPTER ______
AN ACT concerning 1
Other Tobacco Products and Electronic Smoking Devices – Seizure and 2
Wholesaler Licensure Record–Keeping Requirements 3
FOR the purpose of authorizing the Executive Director of the Alcohol, Tobacco, and 4
Cannabis Commission or a peace officer to seize other tobacco products and electronic 5
smoking devices that are sold or offered for sale in violation of certain provisions of 6
law without a warrant; establishing procedures for the return and destruction of 7
certain property seized by the Executive Director or a peace officer; establishing an 8
electronic smoking devices wholesaler license and certain record–keeping 9
requirements for electronic smoking devices wholesalers wholesaler distributors and 10
wholesaler importers; and generally relating to other tobacco products and electronic 11
smoking devices. 12
BY renumbering 13
Article – Business Regulation 14
Section 16.7–213.1 15
to be Section 16.7–213.2 16
Annotated Code of Maryland 17
(2024 Replacement Volume) 18
BY repealing and reenacting, without amendments, 19
Article – Business Regulation 20
Section 16.7–101(a) and (f) through (h) 21
Annotated Code of Maryland 22
(2024 Replacement Volume) 23 2 HOUSE BILL 1241
BY adding to 1
Article – Business Regulation 2
Section 16.5–217.2, 16.7–101(f), 16.7–213.1, and 16.7–213.3, and 16.7–213.4 3
Annotated Code of Maryland 4
(2024 Replacement Volume) 5
BY repealing and reenacting, without amendments, 6
Article – Business Regulation 7
Section 16.7–101(a) 8
Annotated Code of Maryland 9
(2024 Replacement Volume) 10
BY repealing and reenacting, with amendments, 11
Article – Business Regulation 12
Section 16.7–101(d) and (f) through (l), 16.7–201, 16.7–202(a), 16.7–203(a), 16.7–204, 13
16.7–206, and 16.7–211(a) 16.7–204(a) 14
Annotated Code of Maryland 15
(2024 Replacement Volume) 16
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 17
That Section(s) 16.7–213.1 of Article – Business Regulation of the Annotated Code of 18
Maryland be renumbered to be Section(s) 16.7–213.2. 19
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 20
as follows: 21
Article – Business Regulation 22
16.5–217.2. 23
(A) THE EXECUTIVE DIRECTOR OR A PEACE O FFICER MAY SEIZE OTH ER 24
TOBACCO PRODUCTS THA T ARE SOLD OR OFFERE D FOR SALE IN THE STATE IN 25
VIOLATION OF THIS TI TLE WITHOUT A WARRAN T. 26
(B) (1) THE EXECUTIVE DIRECTOR OR PEACE OFF ICER SHALL GIVE 27
NOTICE OF A SEIZURE TO THE PERSON FROM WHOM THE PROPERTY IS SEIZED A T 28
THE TIME OF SEIZURE . 29
(2) A NOTICE OF SEIZURE SH ALL STATE THE RIGHT OF THE OWNER 30
OR OTHER INTERESTED PERSON TO FILE A CLA IM FOR RETURN OF THE SEIZED 31
PROPERTY. 32
(C) A PEACE OFFICER WHO SE IZES OTHER TOBACCO P RODUCTS UNDER 33
SUBSECTION (A) OF THIS SECTION SHAL L DELIVER THE SEIZED OTHER TOBACCO 34 HOUSE BILL 1241 3
PRODUCTS TO THE EXECUTIVE DIRECTOR OR TAKE IT T O A LOCATION DESIGNA TED 1
BY THE EXECUTIVE DIRECTOR. 2
(D) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE OWNER 3
OR ANOTHER IN TERESTED PERSON MAY FILE A CLAIM FOR RET URN OF THE 4
PROPERTY WITH THE EXECUTIVE DIRECTOR WITHIN 30 DAYS AFTER THE SEIZU RE 5
OF THE PROPERTY . 6
(2) A PERSON FORFEITS ANY INTEREST IN, RIGHT TO, OR TITLE TO 7
THE OTHER TOBACCO PR ODUCTS SEIZED FOR VI OLATION OF THI S TITLE IF THE 8
PERSON FAILS TO TIME LY FILE A CLAIM FOR RETURN OF THE SEIZED PROPERTY 9
WITHIN THE TIME ALLO WED UNDER PARAGRAPH (1) OF THIS SUBSECTION . 10
(E) SUBJECT TO SUBSECTION (F) OF THIS SECTION , IF A PERSON FILES A 11
CLAIM FOR THE RETURN OF PROPERTY SEIZED UNDER SUBSECT ION (A) OF THIS 12
SECTION, THE EXECUTIVE DIRECTOR OR THE EXECUTIVE DIRECTOR’S DESIGNEE 13
SHALL: 14
(1) PROMPTLY ACT ON THE CLAIM AND HOLD AN IN FORMAL HEARING ; 15
AND 16
(2) UNLESS THE EXECUTIVE DIRECTOR OR THE EXECUTIVE 17
DIRECTOR’S DESIGNEE HAS SATISFACTORY EVIDENC E THAT THE OWNER OR 18
PERSON WAS NOT IN CO MPLIANCE WITH ANY PR OVISION OF THIS TITL E AT THE TIME 19
OF SEIZURE, DIRECT RETURN OF THE SEIZED PROPERTY . 20
(F) THE EXECUTIVE DIRECTOR OR THE EXECUTIVE DIRECTOR’S DESIGNEE 21
SHALL GRANT OR DENY THE CLAIM FOR RETURN OF S EIZED OTHER TOBACCO 22
PRODUCTS BY MAILING THE OWNER OR PERSON A NOTICE OF FINAL 23
DETERMINATION . 24
(G) A PERSON WHO POSSESSED OR OFFERED FOR SALE OTHER TOBACCO 25
PRODUCTS THAT ARE SE IZED UNDER THIS SECT ION IS NOT RELIEVED FROM 26
RESPONSIBILITY FOR: 27
(1) ANY PENALTY UNDER TH IS TITLE OR TITLE 16 OR TITLE 16.7 OF 28
THIS ARTICLE; OR 29
(2) REIMBURSEMENT OF THE COSTS OF TRANSPORTAT ION, STORAGE, 30
OR DISPOSAL OF THE S EIZED PROPERTY . 31
(H) (1) OTHER TOBACCO PRODUCT S SEIZED BY THE STATE UNDER THIS 32
TITLE SHALL BE TRANSPORTED , STORED, AND DESTROYED IN COM PLIANCE WITH 33
APPLICABLE LOCAL , STATE, AND FEDERAL LAW . 34 4 HOUSE BILL 1241
(2) THE EXECUTIVE DIRECTOR OR THE EXECUTIVE DIRECTOR’S 1
DESIGNEE SHALL KEEP A RECORD OF ALL PROP ERTY DESTROYED UNDER THIS 2
SUBSECTION THAT INCL UDES A DESCRIPTION OF : 3
(I) THE NATURE OF THE PR OPERTY; 4
(II) THE QUANTITY OF THE PROPERTY; 5
(III) THE REASON FOR THE S EIZURE OF THE PROPER TY; AND 6
(IV) THE MANNER OF DESTRU CTION. 7
(3) (I) THE EXECUTIVE DIRECTOR MAY IMPOSE A ND COLLECT 8
COSTS SUFFICIE NT TO COVER TRANSPOR TATION, STORAGE, AND DISPOSAL OF 9
OTHER TOBACCO PRODUC TS SEIZED BY THE STATE UNDER THIS SECT ION. 10
(II) FAILURE TO PAY COSTS UNDER SUBPARAGRAPH (I) OF THIS 11
PARAGRAPH SHALL BE C ONSIDERED GROUNDS FO R DENIAL OR REVOCATI ON OF A 12
LICENSE UNDER THIS TITLE . 13
(4) (I) THE EXECUTIVE DIRECTOR MAY RECOVER , IN AN ACTION 14
BROUGHT UNDER THIS S ECTION, REASONABLE EXPENSES INCURRED IN 15
INVESTIGATING AND PR EPARING THE CASE , INCLUDING ATTORNEY ’S FEES. 16
(II) FAILURE TO PAY EXPENS ES UNDER SUBPARAGRAP H (I) OF 17
THIS PARAGRAPH SHALL BE CONSIDERED GROUND S FOR DENIAL OR REVO CATION 18
OF A LICENSE UNDER T HIS TITLE. 19
(5) (I) THE EXECUTIVE DIRECTOR SHALL POST A NOTICE OF EACH 20
SEIZURE AND FORFEITU RE ON THE COMMISSION’S WEBSITE FOR A PERI OD OF NOT 21
LESS THAN 1 YEAR AFTER THE NOTICE OF S EIZURE UNDER SUBSECT ION (B) OF THIS 22
SECTION. 23
(II) NOTICE UNDER SUBPARAG RAPH (I) OF THIS PARAGRAPH 24
SHALL INCLUDE : 25
1. A DESCRIPTION OF THE PROPERTY SEIZED ; 26
2. THE REASON FOR THE S EIZURE; AND 27
3. THE TIME AND PLACE O F THE SEIZURE. 28
16.7–101. 29
HOUSE BILL 1241 5
(a) In this title the following words have the meanings indicated. 1
(d) “Electronic smoking devices manufacturer” means a person that: 2
(1) manufactures, mixes, or otherwise produces electronic smoking devices 3
intended for sale in the State, including electronic smoking devices intended for sale in the 4
United States through an importer; and 5
(2) (i) sells electronic smoking devices to a consumer, if the consumer 6
purchases or orders the devices through the mail, a computer network, a telephonic 7
network, or another electronic network, A LICENSED ELECTRONI C SMOKING DEVICES 8
WHOLESALER , a licensed electronic smoking devices wholesaler distributor, or a licensed 9
electronic smoking devices wholesaler importer in the State; 10
(ii) if the electronic smoking devices manufacturer also holds a 11
license to act as an electronic smoking devices retailer or a vape shop vendor, sells electronic 12
smoking devices in the same manner as a vape shop vendor to consumers located in the 13
State; or 14
(iii) unless otherwise prohibited or restricted under local law, this 15
article, or the Criminal Law Article, distributes sample electronic smoking devices to a 16
licensed electronic smoking devices retailer or vape shop vendor. 17
(F) “ELECTRONIC SMOKING DE VICES WHOLESALER” MEANS A PERSON 18
THAT: 19
(1) HOLDS ELECTRONIC SMO KING DEVICES FOR SAL E TO ANOTHER 20
PERSON FOR RESALE ; OR 21
(2) SELLS ELECTRONIC SMO KING DEVICES TO ANOT HER PERSON FOR 22
RESALE. 23
[(f)] (G) “Electronic smoking devices wholesaler distributor” means a person 24
that: 25
(1) obtains at least 70% of its electronic smoking devices from a holder of 26
an electronic smoking devices manufacturer license under this subtitle or a business entity 27
located in the United States; and 28
(2) (i) holds electronic smoking devices for sale to another person for 29
resale; or 30
(ii) sells electronic smoking devices to another person for resale. 31
[(g)] (H) “Electronic smoking devices wholesaler importer” means a person that: 32
6 HOUSE BILL 1241
(1) obtains at least 70% of its electronic smoking devices from a business 1
entity located in a foreign country; and 2
(2) (i) holds electronic smoking devices for sale to another person for 3
resale; or 4
(ii) sells electronic smoking devices to another person for resale. 5
[(h)] (I) “Executive Director” means the Executive Director of the Alcohol, 6
Tobacco, and Cannabis Commission. 7
[(i)] (J) “License” means: 8
(1) a license issued by the Executive Director under § 16.7–203(a) of this 9
title to: 10
(i) act as a licensed electronic smoking devices manufacturer; 11
(II) ACT AS A LICENSED EL ECTRONIC SMOKING DEV ICES 12
WHOLESALER ; 13
[(ii)] (III) act as a licensed electronic smoking devices wholesaler 14
distributor; or 15
[(iii)] (IV) act as a licensed electronic smoking devices wholesaler 16
importer; or 17
(2) a license issued by the clerk under § 16.7–203(b) of this title to: 18
(i) act as a licensed electronic smoking devices retailer; or 19
(ii) act as a licensed vape shop vendor. 20
[(j)] (K) “Sell” means to exchange or transfer, or to agree to exchange or 21
transfer, title or possession of property, in any manner or by any means, for consideration. 22
[(k)] (L) “Vape shop vendor” means an electronic smoking devices business that 23
sells electronic smoking devices and related accessories to consumers on the premises of its 24
place of business. 25
[(l)] (M) “Vaping liquid” means a liquid that: 26
(1) consists of propylene glycol, vegetable glycerin, or other similar 27
substance; 28
(2) may or may not contain natural or artificial flavors; 29 HOUSE BILL 1241 7
(3) may or may not contain nicotine; and 1
(4) converts to vapor intended for inhalation when heated in an electronic 2
device. 3
16.7–201. 4
(a) A person must hold an appropriate license before the person may act as: 5
(1) an electronic smoking devices manufacturer; 6
(2) an electronic smoking devices retailer; 7
(3) AN ELECTRONIC SMOKIN G DEVICES WHOLESALER ; 8
[(3)] (4) an electronic smoking devices wholesaler distributor; 9
[(4)] (5) an electronic smoking devices wholesaler importer; or 10
[(5)] (6) a vape shop vendor. 11
(b) A place of business in which a person acts as an electronic smoking devices 12
retailer or a vape shop vendor must hold an appropriate license. 13
16.7–202. 14
(a) (1) An applicant for a license to act as an electronic smoking devices 15
manufacturer, ELECTRONIC SMOKING D EVICES WHOLESALER , electronic smoking 16
devices wholesaler distributor, or electronic smoking devices wholesaler importer shall: 17
(i) obtain an appropriate county license by submitting an 18
application to the Executive Director on the form and containing the information that the 19
Executive Director requires; 20
(ii) indicate the licenses for which the applicant is applying; and 21
(iii) except as provided in paragraph (2) of this subsection, pay to the 22
Executive Director a fee of $25 for each license for which the applicant applies. 23
(2) An applicant for a license to act as an ELECTRONIC SMOKING 24
DEVICES WHOLESALER , electronic smoking devices wholesaler distributor, or electronic 25
smoking devices wholesaler importer shall pay to the Executive Director a fee of $150. 26
16.7–203. 27
8 HOUSE BILL 1241
(a) The Executive Director shall issue an appropriate license to each applicant 1
that meets the requirements of this subtitle for a license to act as an electronic smoking 2
devices manufacturer, ELECTRONIC SMOKING D EVICES WHOLESALER , electronic 3
smoking devices wholesaler distributor, or electronic smoking devices wholesaler importer. 4
16.7–204. 5
(a) An electronic smoking devices manufacturer license authorizes the licensee 6
to: 7
(1) sell electronic smoking devices to: 8
(i) a licensed electronic smoking devices wholesaler DISTRIBUTOR 9
OR ELECTRONIC SMOKIN G DEVICES WHOLESALER IMPORTER located in the State; 10
(ii) an electronic smoking devices wholesaler DISTRIBUTOR, 11
ELECTRONIC SMOKING D EVICES WHOLESALER IM PORTER, or retailer located outside 12
the State if the electronic smoking devices may be sold lawfully in Maryland; AND 13
(iii) a licensed vape shop vendor; [and 14
(iv) a consumer if: 15
1. the licensee manufactured the devices; and 16
2. the consumer purchases or orders the devices through the 17
mail, a computer network, a telephonic network, or another electronic network;] 18
(2) if the electronic smoking devices manufacturer licensee also holds a 19
license to act as an electronic smoking devices retailer or a vape shop vendor, transfer 20
electronic smoking devices to inventory for sale under the retail license or vape shop license; 21
and 22
(3) except as otherwise prohibited or restricted under local law, this article, 23
or the Criminal Law Article, distribute electronic smoking devices products to a licensed 24
electronic smoking devices retailer or vape shop vendor. 25
(b) An electronic smoking devices retailer license authorizes the licensee to: 26
(1) sell electronic smoking devices to consumers; 27
(2) buy electronic smoking devices from an ELECTRONIC SMOKING 28
DEVICES WHOLESALER , electronic smoking devices wholesaler distributor, or electronic 29
smoking devices wholesaler importer; 30
HOUSE BILL 1241 9
(3) if the electronic smoking devices retailer licensee also holds a license to 1
act as an electronic smoking devices manufacturer, sell at retail electronic smoking devices 2
manufactured under the manufacturer license; and 3
(4) except as otherwise prohibited or restricted under local law, this article, 4
the Criminal Law Article, or § 24–305 of the Health – General Article, distribute sample 5
electronic smoking devices products to consumers in the State. 6
(c) An ELECTRONIC SMOKING D EVICES WHOLESALER LI CENSE, electronic 7
smoking devices wholesaler distributor license, or electronic smoking devices wholesaler 8
importer license authorizes the licensee to: 9
(1) sell electronic smoking devices to electronic smoking devices retailers 10
and vape shop vendors; 11
(2) buy electronic smoking devices directly from an electronic smoking 12
devices manufacturer and an ELECTRONIC SMOKING D EVICES WHOLESALER , electronic 13
smoking devices wholesaler distributor, or electronic smoking devices wholesaler importer; 14
(3) hold electronic smoking devices; and 15
(4) sell electronic smoking devices to another licensed ELECTRONIC 16
SMOKING DEVICES WHOL ESALER, electronic smoking devices wholesaler distributor, or 17
electronic smoking devices wholesaler importer. 18
(d) A vape shop vendor license authorizes the licensee to: 19
(1) sell electronic smoking devices as a vape shop vendor to consumers on 20
the premises of the licensee’s place of business; 21
(2) if the vape shop vendor licensee also holds a license to act as an 22
electronic smoking devices manufacturer, sell at retail on the vape shop vendor premises 23
electronic smoking devices manufactured under the manufacturer license; and 24
(3) buy electronic smoking devices from an electronic smoking devices 25
manufacturer, AN ELECTRONIC SMOKIN G DEVICES WHOLESALER , an electronic 26
smoking devices wholesaler distributor, or an electronic smoking devices wholesaler 27
importer. 28
16.7–206. 29
(a) (1) A licensed electronic smoking devices retailer or a licensed vape shop 30
vendor may not assign the license. 31
(2) If a licensed ELECTRONIC SMOKING D EVICES WHOLESALER , 32
electronic smoking devices wholesaler distributor, or electronic smoking devices wholesaler 33 10 HOUSE BILL 1241
importer sells the licensee’s electronic smoking devices business and pays to the Executive 1
Director a license assignment fee of $10, the licensee may assign the license to the buyer of 2
the business if the buyer otherwise qualifies under this title for an electronic smoking 3
devices wholesaler’s distributor or importer license. 4
(b) If the electronic smoking devices business of a licensee is transferred because 5
of bankruptcy, death, incompetency, receivership, or otherwise by operation of law, the 6
Executive Director shall transfer the license without charge to the new owner of the 7
licensee’s business if the transferee otherwise qualifies under this title for the license being 8
transferred. 9
(c) (1) If a licensed ELECTRONIC SMOKING D EVICES WHOLESALER , 10
electronic smoking devices wholesaler distributor, or electronic smoking devices wholesaler 11
importer surrenders the license to the Executive Director and if no disciplinary proceedings 12
are pending against the licensee, the Executive Director shall refund a pro rata portion of 13
the license fee for the unexpired term of the license. 14
(2) A licensed electronic smoking devices retailer or a licensed vape shop 15
vendor is not allowed a refund for the unexpired term of the license. 16
16.7–211. 17
(a) A person may not act, attempt to act, or offer to act as an electronic smoking 18
devices manufacturer, an electronic smoking devices retailer, AN ELECTRONIC SMOKIN G 19
DEVICES WHOLESALER , an electronic smoking devices wholesaler distributor, an 20
electronic smoking devices wholesaler importer, or a vape shop vendor in the State unless 21
the person has an appropriate license. 22
16.7–213.1. 23
(A) EACH ELECTRONIC SMOKI NG DEVICES WHOLESALE R DISTRIBUTOR AND 24
ELECTRONIC SMOKING D EVICES WHOLESALER IM PORTER SHALL: 25
(1) RECEIVE AN INVOICE F OR EACH PURCHASE OF ELECTRONIC 26
SMOKING DEVICES ; 27
(2) KEEP A RECORD OF ALL ELECTRONIC SMOKING D EVICES 28
RECEIVED, TO WHICH THE ELECTRONIC SMOKING DEVICES WHOL ESALER 29
DISTRIBUTOR OR ELECT RONIC SMOKING DEVICE S WHOLESALER IMPORTE R SHALL 30
POST EACH DAY : 31
(I) THE INVOICE NUMBER ; 32
(II) THE DATE OF RECEIPT ; 33
(III) THE QUANTITY RECEIVE D; 34 HOUSE BILL 1241 11
(IV) THE BRAND; 1
(V) THE MANUFACTURER ; AND 2
(VI) THE NAME OF THE PERS ON FROM WHOM THE ELE CTRONIC 3
SMOKING DEVICES ARE RECEIVED; 4
(3) (I) KEEP A RECORD OF THE NAME AND ADDRESS OF EACH 5
ELECTRONIC SMOKING D EVICES RETAILER TO W HICH A SALE IS MADE ; AND 6
(II) PREPARE FOR EACH SA LE OF ELECTRONIC SMO KING 7
DEVICES TO A RETAILE R AN INVOICE THAT SH OWS THE POLITICAL SU BDIVISION 8
WHERE THE RETAILER I S LOCATED; AND 9
(4) KEEP A COMPLETE AND ACCURATE RECORD OF E ACH SALE OF 10
ELECTRONIC SMOKING D EVICES TO AN OUT –OF–STATE PERSON FOR RES ALE TO 11
OUT–OF–STATE CONSUMERS . 12
(B) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , 13
EACH ELECTRONIC SMOK ING DEVICES WHOLESAL ER DISTRIBUTOR AND 14
ELECTRONIC SMOKING D EVICES WHOLESALER IM PORTER SHALL MAKE AN 15
INVENTORY RECORD EAC H MONTH OF ALL ELECT RONIC SMOKING DEVICE S ON THE 16
PREMISES OR UNDER TH E CONTROL OF THE ELE CTRONIC SMOKING DEVI CES 17
WHOLESALER DISTRIBUTOR OR ELECT RONIC SMOKING DEVICE S WHOLESALER 18
IMPORTER: 19
(I) AT THE BEGINNING OR END OF THE MONTH; OR 20
(II) ON ANOTHER SPECIFIC DAY OF THE MONTH , IF THE 21
ELECTRONIC SMOKING D EVICES WHOLESALER DISTRIBUTOR OR ELECT RONIC 22
SMOKING DEVICES WHOL ESALER IMPORTER FINDS IT MORE PRACTI CABLE TO TAKE 23
INVENTORY ON THAT DA Y. 24
(2) ELECTRONIC SMOKING DE VICES TRANSFERRED TO RE TAIL 25
STOCK BY WRITTEN MEM ORANDUM NEED NOT BE INCLUDED IN THE INVE NTORY 26
RECORD. 27
(C) EACH ELECTRONIC SMOKI NG DEVICES WHOLESALE R DISTRIBUTOR AND 28
ELECTRONIC SMOKING D EVICES WHOLESALER IM PORTER SHALL: 29
(1) KEEP THE RECORDS REQ UIRED BY THIS SECTION FOR 6 YEARS OR 30
FOR A SHORTER TIME S ET BY THE EXECUTIVE DIRECTOR; AND 31
12 HOUSE BILL 1241
(2) ALLOW THE EXECUTIVE DIRECTOR TO EXAMINE T HE RECORDS. 1
16.7–213.3. 2
(A) THE EXECUTIVE DIRECTOR OR A PEACE OFFICER MAY SEIZE 3
ELECTRONIC SMOKING D EVICES THAT ARE SOLD OR OFFERED FOR SALE IN THE 4
STATE IN VIOLATION OF THIS TITLE WITHOUT A WARRANT. 5
(B) (1) THE EXECUTIVE DIRECTOR OR PEACE OFFICER SHALL GIVE 6
NOTICE OF A SEIZURE TO THE PERSON FROM W HICH THE PROPERTY IS SEIZED AT 7
THE TIME OF SEIZURE . 8
(2) A NOTICE OF SEIZURE SH ALL STATE THE RIGHT OF THE OWNER 9
OR OTHER INTERESTED PERSON TO FILE A CLA IM FOR RETURN OF THE SEIZED 10
PROPERTY. 11
(C) A PEACE OFFICER WHO SEIZES ELECTRONIC SMOKING D EVICES UNDER 12
SUBSECTION (A) OF THIS SECTION SHAL L DELIVER THE SEIZED PROPERTY TO THE 13
EXECUTIVE DIRECTOR OR TAKE IT T O A LOCATION DESIGNA TED BY THE EXECUTIVE 14
DIRECTOR. 15
(D) (C) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION, THE 16
OWNER OR INTERESTED PERSON MAY FILE A CL AIM FOR RETURN OF TH E PROPERTY 17
WITH THE EXECUTIVE DIRECTOR WITHIN 30 DAYS AFTER THE SEIZU RE OF THE 18
PROPERTY. 19
(2) A PERSON FORFEITS ANY INTEREST IN, RIGHT TO, OR TITLE TO 20
THE ELECTRONIC SMOKI NG DEVICES SEIZED FOR V IOLATION OF THIS TIT LE IF THE 21
PERSON FAILS TO TIME LY FILE A CLAIM FOR RETURN OF THE SEIZED PROPERTY 22
WITHIN THE TIME ALLO WED UNDER PARAGRAPH (1) OF THIS SUBSECTION . 23
(E) (D) SUBJECT TO SUBSECTION (F) (E) OF THIS SECTION, IF A PERSON 24
FILES A CLAIM FOR THE R ETURN OF PROPERTY SE IZED UNDER SUBSECTIO N (A) OF 25
THIS SECTION , THE EXECUTIVE DIRECTOR OR THE EXECUTIVE DIRECTOR’S 26
DESIGNEE SHALL : 27
(1) PROMPTLY ACT ON THE CLAIM AND HOLD AN INFORMAL A 28
HEARING IN ACCORDANCE WITH § 16.7–208 OF THIS SUBTITLE; AND 29
(2) UNLESS THE EXECUTIVE DIRECTOR OR THE EXECUTIVE 30
DIRECTOR’S DESIGNEE HAS SATIS FACTORY EVIDENCE THA T THE OWNER OR 31
PERSON WAS NOT IN CO MPLIANCE WITH ANY PR OVISION OF THIS TITL E AT THE TIME 32
OF SEIZURE, DIRECT RETURN OF THE SEIZED PROPERTY . 33
HOUSE BILL 1241 13
(F) (E) THE EXECUTIVE DIRECTOR OR THE EXECUTIVE DIRECTOR’S 1
DESIGNEE SHALL GRANT OR DENY THE CLAIM FO R RETURN OF SEIZED E LECTRONIC 2
SMOKING DEVICES BY M AILING THE OWNER OR PERSON A NOTICE OF F INAL 3
DETERMINATION . 4
(G) (F) A PERSON WHO POSSESSED OR OFFERED FOR SALE ELECTRONIC 5
SMOKING DEVICES THAT ARE SEIZED UNDER THI S SECTION IS NOT REL IEVED FROM 6
RESPONSIBILITY FOR : 7
(1) ANY PENALTY UNDER TH IS TITLE OR TITLE 16 OR TITLE 16.5 OF 8
THIS ARTICLE; OR 9
(2) REIMBURSEMENT OF THE COSTS OF TRANSPORTAT ION, STORAGE, 10
OR DISPOSAL OF THE SEIZ ED PROPERTY . 11
(H) (1) ELECTRONIC SMOKING DE VICES SEIZED BY THE STATE UNDER 12
THIS TITLE SHALL BE TRANSPORTED , STORED, AND DESTROYED IN COM PLIANCE 13
WITH APPLICABLE LOCA L, STATE, AND FEDERAL LAW . 14
(2) THE EXECUTIVE DIRECTOR, OR THE EXECUTIVE DIRECTOR’S 15
DESIGNEE, SHALL KEEP A RECORD OF ALL PROPERTY DEST ROYED UNDER THIS 16
SUBSECTION THAT INCL UDES A DESCRIPTION O F: 17
(I) THE NATURE OF THE PR OPERTY; 18
(II) THE QUANTITY OF THE PROPERTY; 19
(III) THE REASON FOR THE S EIZURE OF THE PROPER TY; AND 20
(IV) THE MANNER OF DESTRU CTION. 21
(3) (I) THE EXECUTIVE DIRECTOR MAY IMPOSE A ND COLLECT 22
COSTS SUFFICIENT TO COVER TRANSPORTATION , STORAGE, AND DISPOSAL OF 23
ELECTRONIC SMOKING D EVICES SEIZED BY THE STATE UNDER THIS SECT ION. 24
(II) FAILURE TO PAY COSTS UNDER SUBP ARAGRAPH (I) OF THIS 25
PARAGRAPH SHALL BE C ONSIDERED GROUNDS FO R DENIAL OR REVOCATI ON OF A 26
LICENSE UNDER THIS T ITLE. 27
(4) (I) THE EXECUTIVE DIRECTOR MAY RECOVER , IN AN ACTION 28
BROUGHT UNDER THIS S ECTION, REASONABLE EXPENSES INCURRED IN 29
INVESTIGATING AND PRE PARING THE CASE , INCLUDING ATTORNEY ’S FEES. 30
14 HOUSE BILL 1241
(II) FAILURE TO PAY EXPENS ES UNDER SUBPARAGRAP H (I) OF 1
THIS PARAGRAPH SHALL BE CONSIDERED GROUND S FOR DENIAL OR REVO CATION 2
OF A LICENSE UNDER T HIS TITLE. 3
(5) (I) THE EXECUTIVE DIRECTOR SHALL POST A NOTICE OF EACH 4
SEIZURE AND FORFEITU RE ON THE COMMISSION’S WEBSITE FOR A PERI OD OF NOT 5
LESS THAN 1 YEAR AFTER THE NOTIC E OF SEIZURE UNDER S UBSECTION (B) OF THIS 6
SECTION. 7
(II) NOTICE UNDER SUBPARAG RAPH (I) OF THIS PARAGRAPH 8
SHALL INCLUDE : 9
1. A DESCRIPTION OF THE PROPERTY SEIZED ; 10
2. THE REASON FOR THE S EIZURE; AND 11
3. THE TIME AND PLACE O F THE SEIZURE. 12
16.7–213.4. 13
THE EXECUTIVE DIRECTOR MAY ADOPT RE GULATIONS TO IMPLEME NT THIS 14
SUBTITLE. 15
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 16
October 1, 2025. 17
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.