EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb1441*
HOUSE BILL 1441
C2 5lr3280
CF SB 918
By: Delegates Rogers, Boafo, Fraser–Hidalgo, and A. Johnson
Introduced and read first time: February 7, 2025
Assigned to: Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Business Regulation – Electronic Smoking Devices Manufacturers – 2
Certifications 3
FOR the purpose of authorizing the Executive Director of the Alcohol, Tobacco, and 4
Cannabis Commission and the Attorney General to take certain action relating to 5
the licensure of certain electronic smoking devices manufacturers, wholesalers, 6
importers, and retailers and vape shop vendors in certain circumstances; requiring 7
an electronic smoking devices manufacturer to execute and deliver a certain 8
certification to the Attorney General each year; requiring the Attorney General to 9
develop and make available to the public a certain directory listing certain electronic 10
smoking devices manufacturers; requiring electronic smoking devices 11
manufacturers to place a certain amount of money into a qualified escrow account 12
under certain circumstances; making a certain violation of this Act an unfair, 13
abusive, or deceptive trade practice that is subject to enforcement and penalties 14
under the Maryland Consumer Protection Act; and generally relating to the 15
regulation of electronic smoking devices. 16
BY repealing and reenacting, with amendments, 17
Article – Business Regulation 18
Section 16.7–101 and 16.7–102; and 16.7–202, 16.7–204, 16.7–207, and 16.7–213.1 19
to be under the amended subtitle “Subtitle 2. Electronic Smoking Devices 20
Licenses” 21
Annotated Code of Maryland 22
(2024 Replacement Volume) 23
BY repealing and reenacting, without amendments, 24
Article – Business Regulation 25
Section 16.7–201 26
Annotated Code of Maryland 27
(2024 Replacement Volume) 28
2 HOUSE BILL 1441
BY adding to 1
Article – Business Regulation 2
Section 16.7–301 through 16.7–309 to be under the new subtitle “Subtitle 3. 3
Certification Requirements for Electronic Smoking Devices Manufacturers” 4
Annotated Code of Maryland 5
(2024 Replacement Volume) 6
BY repealing and reenacting, with amendments, 7
Article – Commercial Law 8
Section 13–301(14)(xlii) 9
Annotated Code of Maryland 10
(2013 Replacement Volume and 2024 Supplement) 11
BY repealing and reenacting, without amendments, 12
Article – Commercial Law 13
Section 13–301(14)(xliii) 14
Annotated Code of Maryland 15
(2013 Replacement Volume and 2024 Supplement) 16
BY adding to 17
Article – Commercial Law 18
Section 13–301(14)(xliv) 19
Annotated Code of Maryland 20
(2013 Replacement Volume and 2024 Supplement) 21
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 22
That the Laws of Maryland read as follows: 23
Article – Business Regulation 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
(i) an electronic cigarette, an electronic cigar, an electronic cigarillo, 32
an electronic pipe, an electronic hookah, a vape pen, NICOTINE SALTS, and vaping liquid; 33
and 34
HOUSE BILL 1441 3
(ii) except as provided in paragraph (3) of this subsection, any 1
component, part, CARTRIDGE, TANK, or accessory of such a device regardless of whether 2
or not it is sold separately, including any substance intended to be aerosolized or vaporized 3
during use of the device. 4
(3) “Electronic smoking device” does not include: 5
(i) a drug, device, or combination product authorized for sale AS A 6
NICOTINE REPLA CEMENT PRODUCT by the U.S. Food and Drug Administration under 7
the Federal Food, Drug, and Cosmetic Act; or 8
(ii) a battery or battery charger when sold separately. 9
(d) “Electronic smoking devices manufacturer” means a person that: 10
(1) manufactures, mixes, or otherwise produces electronic smoking devices 11
intended for sale in the State, including electronic smoking devices intended for sale in the 12
United States through an importer; and 13
(2) (i) sells electronic smoking devices to [a consumer, if the consumer 14
purchases or orders the devices through the mail, a computer network, a telephonic 15
network, or another electronic network,] a licensed electronic smoking devices wholesaler 16
distributor[,] or a licensed electronic smoking devices wholesaler importer [in the State]; 17
(ii) if the electronic smoking devices manufacturer also holds a 18
license to act as an electronic smoking devices retailer or a vape shop vendor, sells electronic 19
smoking devices in the same manner as a vape shop vendor to consumers located in the 20
State; or 21
(iii) unless otherwise prohibited or restricted under local law, this 22
article, or the Criminal Law Article, distributes sample electronic smoking devices to a 23
licensed electronic smoking devices retailer or vape shop vendor. 24
(e) “Electronic smoking devices retailer” means a person that: 25
(1) sells electronic smoking devices to consumers; 26
(2) holds electronic smoking devices for sale to consumers; or 27
(3) unless otherwise prohibited or restricted under local law, this article, 28
the Criminal Law Article, or § 24–305 of the Health – General Article, distributes sample 29
electronic smoking devices to consumers in the State. 30
(f) “Electronic smoking devices wholesaler distributor” means a person that: 31
4 HOUSE BILL 1441
(1) [obtains at least 70% of its electronic smoking devices from a holder of 1
an electronic smoking devices manufacturer license under this subtitle or a business entity 2
located in the United States] IS NOT AN ELECTRONIC SMOKING DEVICES WHOL ESALER 3
IMPORTER; and 4
(2) (i) holds electronic smoking devices for sale to another person for 5
resale; or 6
(ii) sells electronic smoking devices to another person for resale. 7
(g) “Electronic smoking devices wholesaler importer” means a person that: 8
(1) obtains at least 70% of its electronic smoking devices from a [business 9
entity] LICENSED ELECTRONIC SMOKING DEVICES MANU FACTURER located in a 10
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) “Executive Director” means the Executive Director of the Alcohol, Tobacco, 15
and Cannabis Commission. 16
(i) “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) “Sell” means to exchange or transfer, or to agree to exchange or transfer, title 28
or possession of property, in any manner or by any means, for consideration. 29
HOUSE BILL 1441 5
(k) “Vape shop vendor” means an electronic smoking devices business that sells 1
electronic smoking devices and related accessories to consumers on the premises of its place 2
of business. 3
(l) “Vaping liquid” means a liquid that: 4
(1) consists of propylene glycol, vegetable glycerin, or other similar 5
substance; 6
(2) may or may not contain natural or artificial flavors; 7
(3) may or may not contain nicotine; and 8
(4) converts to vapor intended for inhalation when heated in an electronic 9
device. 10
16.7–102. 11
(a) The Executive Director may delegate any power or duty of the Executive 12
Director under this title. 13
(b) Any person [licensed under Title 16 or Title 16.5 of this article, or an affiliate, 14
as defined under § 16–402(c) of this article, of a person licensed under Title 16 of this article: 15
(1) is authorized to] WHO IS SEEKING TO MA NUFACTURE , DISTRIBUTE, 16
OR SELL ELECTRONIC S MOKING DEVICES IN THE STATE MUST OBTAIN A LICENSE TO 17
manufacture, distribute, or sell electronic smoking devices pursuant to this title [in the 18
same capacity as the person is licensed under Title 16 or Title 16.5 of this article; and 19
(2) may not be required to obtain an additional license under this title]. 20
Subtitle 2. Electronic [Nicotine Delivery Systems] SMOKING DEVICES Licenses. 21
16.7–201. 22
(a) A person must hold an appropriate license before the person may act as: 23
(1) an electronic smoking devices manufacturer; 24
(2) an electronic smoking devices retailer; 25
(3) an electronic smoking devices wholesaler distributor; 26
(4) an electronic smoking devices wholesaler importer; or 27
(5) a vape shop vendor. 28 6 HOUSE BILL 1441
(b) A place of business in which a person acts as an electronic smoking devices 1
retailer or a vape shop vendor must hold an appropriate license. 2
16.7–202. 3
(a) [(1)] An applicant for a license to act as an electronic smoking devices 4
manufacturer, electronic smoking devices wholesaler distributor, or electronic smoking 5
devices wholesaler importer shall: 6
[(i)] (1) obtain an appropriate [county] license by submitting an 7
application to the Executive Director on the form and containing the information that the 8
Executive Director requires; 9
[(ii)] (2) indicate the licenses for which the applicant is applying; 10
and 11
[(iii)] (3) [except as provided in paragraph (2) of this subsection,] 12
pay to the Executive Director a fee of [$25] $300 for each license for which the applicant 13
applies. 14
[(2) An applicant for a license to act as an electronic smoking devices 15
wholesaler distributor or electronic smoking devices wholesaler importer shall pay to the 16
Executive Director a fee of $150.] 17
(b) (1) An applicant for a license to act as an electronic smoking devices 18
retailer or a vape shop vendor: 19
(i) shall obtain a county license by submitting to the clerk an 20
application for each permanent or temporary place of business located in the same 21
enclosure and operated by the same applicant; and 22
(ii) except as provided in paragraph (2) of this subsection, shall pay 23
to the clerk a fee of $300. 24
(2) The application shall: 25
(i) be made on the form that the clerk requires; and 26
(ii) contain the information that the Executive Director requires. 27
(3) (i) From each license fee collected under this subsection, the clerk 28
shall distribute: 29
1. $25 to the Executive Director; and 30
HOUSE BILL 1441 7
2. $275 to the Maryland Department of Health to be used by 1
the Department or its designee to enforce existing laws prohibiting the sale or distribution 2
of tobacco, tobacco products, or electronic smoking devices, as defined in § 16.7–101 of this 3
title, to individuals under the age of 21 years. 4
(ii) Funds distributed under this subsection may not be used to 5
supplant existing funding for the enforcement of laws banning the sale or distribution of 6
tobacco, tobacco products, or electronic smoking devices to individuals under the age of 21 7
years. 8
(c) A licensee shall display a license in the way that the Executive Director 9
requires by regulation. 10
(d) If a person has had a license revoked under § 16.7–207 of this subtitle, the 11
person may not reapply for a license within 1 year after the date when the prior license was 12
revoked. 13
16.7–204. 14
(a) An electronic smoking devices manufacturer license authorizes the licensee 15
to: 16
(1) sell electronic smoking devices to: 17
(i) a licensed electronic smoking devices wholesaler [located in the 18
State] DISTRIBUTOR ; OR 19
(ii) an electronic smoking devices wholesaler [or retailer located 20
outside the State if the electronic smoking devices may be sold lawfully in Maryland; 21
(iii) a licensed vape shop vendor; and 22
(iv) a consumer if: 23
1. the licensee manufactured the devices; and 24
2. the consumer purchases or orders the devices through the 25
mail, a computer network, a telephonic network, or another electronic network] 26
IMPORTER; 27
(2) if the electronic smoking devices manufacturer licensee also holds a 28
license to act as an electronic smoking devices retailer or a vape shop vendor, transfer 29
electronic smoking devices to inventory for sale under the retail license or vape shop license; 30
and 31
8 HOUSE BILL 1441
(3) except as otherwise prohibited or restricted under local law, this article, 1
or the Criminal Law Article, distribute electronic smoking devices products to a licensed 2
electronic smoking devices retailer or vape shop vendor. 3
(b) An electronic smoking devices retailer license authorizes the licensee to: 4
(1) sell electronic smoking devices to consumers; 5
(2) buy electronic smoking devices from [an] A LICENSED electronic 6
smoking devices wholesaler distributor or LICENSED electronic smoking devices 7
wholesaler importer; 8
(3) if the electronic smoking devices retailer licensee also holds a license to 9
act as an electronic smoking devices manufacturer, sell at retail electronic smoking devices 10
manufactured under the manufacturer license; and 11
(4) except as otherwise prohibited or restricted under local law, this article, 12
the Criminal Law Article, or § 24–305 of the Health – General Article, distribute sample 13
electronic smoking devices products to consumers in the State. 14
(c) An electronic smoking devices wholesaler distributor license or electronic 15
smoking devices wholesaler importer license authorizes the licensee to: 16
(1) sell electronic smoking devices to LICENSED electronic smoking devices 17
retailers and LICENSED vape shop vendors; 18
(2) buy electronic smoking devices directly from [an] A LICENSED 19
electronic smoking devices manufacturer [and an], A LICENSED electronic smoking devices 20
wholesaler distributor, or A LICENSED electronic smoking devices wholesaler importer; 21
(3) hold electronic smoking devices; and 22
(4) sell electronic smoking devices to another licensed electronic smoking 23
devices wholesaler distributor or LICENSED electronic smoking devices wholesaler 24
importer. 25
(d) A vape shop vendor license authorizes the licensee to: 26
(1) sell electronic smoking devices as a vape shop vendor to consumers on 27
the premises of the licensee’s place of business; 28
(2) if the vape shop vendor licensee also holds a license to act as an 29
electronic smoking devices manufacturer, sell at retail on the vape shop vendor premises 30
electronic smoking devices manufactured under the manufacturer license; and 31
HOUSE BILL 1441 9
(3) buy electronic smoking devices from [an electronic smoking devices 1
manufacturer, an] A LICENSED electronic smoking devices wholesaler distributor[,] or 2
[an] A LICENSED electronic smoking devices wholesaler importer. 3
16.7–207. 4
(a) Subject to the hearing provisions of § 16.7–208 of this subtitle, the Executive 5
Director may deny a license to an applicant, reprimand a licensee, or suspend or revoke a 6
license if the applicant or licensee: 7
(1) fraudulently or deceptively obtains or attempts to obtain a license for 8
the applicant, licensee, or another person; 9
(2) fraudulently or deceptively uses a license; 10
(3) buys electronic smoking devices for resale: 11
(i) in violation of a license; or 12
(ii) from a person [that is not a licensed electronic smoking devices 13
manufacturer or a licensed electronic smoking devices wholesaler] IN VIOLATION OF § 14
16.7–211(A) OF THIS SUBTITLE ; 15
(4) is convicted, under the laws of the United States or of any other state, 16
of: 17
(i) a felony; or 18
(ii) a misdemeanor that is a crime of moral turpitude and is directly 19
related to the fitness and qualification of the applicant or licensee; 20
(5) violates federal, State, or local law regarding the sale of electronic 21
smoking devices; or 22
(6) violates this title, Title 16, or Title 16.5 of this article or regulations 23
adopted under these titles. 24
(b) Subject to the hearing provisions of § 16.7–208 of this subtitle, the Executive 25
Director shall deny a license to any applicant that has had a license revoked under this 26
section until: 27
(1) 1 year has passed since the license was revoked; and 28
(2) [it] THE APPLICANT satisfactorily [appears] DEMONSTRATES to the 29
Executive Director that the applicant will comply with this title and any regulations 30
adopted under this title. 31 10 HOUSE BILL 1441
(c) Prior to the issuance or renewal of any license, the Executive Director shall 1
conduct an investigation with regard to: 2
(1) the applicant; 3
(2) the business to be operated; and 4
(3) the facts set forth in the application. 5
16.7–213.1. 6
(a) (1) Subject to paragraph (2) of this subsection, the Maryland Department 7
of Health or its designee shall conduct at least one unannounced inspection of licensed 8
retailers or vape shop vendors to ensure the licensee’s compliance with the provisions of 9
this title and § 10–107 of the Criminal Law Article each year. 10
(2) If a licensed retailer or vape shop vendor violates any provision of this 11
title or § 10–107 of the Criminal Law Article, the Maryland Department of Health: 12
(I) shall conduct an additional unannounced inspection within 180 13
days after the initial inspection; AND 14
(II) MAY REFER THE LICENS ED RETAILER OR VAPE SHOP 15
VENDOR TO THE EXECUTIVE DIRECTOR FOR DISCIPLI NARY ACTION IN 16
ACCORDANCE WITH § 16.7–207 OF THIS SUBTITLE . 17
(b) The Maryland Department of Health or its designee may use an individual 18
under the age of 21 years to assist in conducting an inspection under this section. 19
(c) To determine the location of a licensed retailer or vape shop vendor subject to 20
an unannounced inspection, the Maryland Department of Health or its designee shall use 21
the list of licensed retailers or vape shop vendors as of December 31 of the previous calendar 22
year. 23
(D) THE EXECUTIVE DIRECTOR MAY CONDUCT UNANNOUNCED 24
INSPECTIONS OF A LIC ENSEE TO ENSURE THE LICENSEE’S COMPLIANCE WITH TH E 25
PROVISIONS OF THIS T ITLE AND § 10–107 OF THE CRIMINAL LAW ARTICLE. 26
SUBTITLE 3. CERTIFICATION REQUIREMENTS FOR ELECTRONIC SMOKING 27
DEVICES MANUFACTURERS . 28
16.7–301. 29
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 30
INDICATED. 31 HOUSE BILL 1441 11
(B) (1) “BRAND FAMILY ” MEANS ALL STYLES AND FLAVORS OF 1
ELECTRONIC SMOKING D EVICES SOLD UNDER TH E SAME TRADEMARK , REGARDLESS 2
OF WHETHER THE ELECT RONIC SMOKING DEVICE S ARE DIFFERENTIATED FROM 3
ONE ANOTHER BY MEANS OF ADDITIONAL MODIFI ERS OR DESCRIPTORS D EPICTING 4
FLAVORS, SHAPES, METHOD OF DELIVERY , DEVICE MODE L, POTENCY, NICOTINE 5
LEVEL, OR ANY OTHER DIFFERE NTIATION. 6
(2) “BRAND FAMILY ” INCLUDES ANY USE OF A BRAND NAME , 7
TRADEMARK , LOGO, SYMBOL, MOTTO, SELLING MESSAGE , RECOGNIZABLE PATTERN 8
OF COLORS, OR ANY OTHER INDICIA OF PRODUCT IDENTIFIC ATION IDENTICAL OR 9
SIMILAR TO OR IDENTIF IABLE WITH A PREVIOU SLY KNOWN BRAND OF E LECTRONIC 10
SMOKING DEVICES , OTHER TOBACCO PRODUC TS, OR ELECTRONIC SMOKIN G DEVICE 11
PRODUCTS. 12
(C) “BRAND STYLE” MEANS EACH INDIVIDUA L STYLE OR FLAVOR OF AN 13
ELECTRONIC SMOKING D EVICE SOLD WITHIN A BRAND FAMILY , BUT 14
DIFFERENTIATED FROM ONE ANOTHER BY MEANS OF ADDITIONAL ADJECT IVES, 15
MODIFIERS, OR DESCRIPTORS , INCLUDING THOSE DEPI CTING FLAVORS , SHAPES, 16
METHOD OF DELIVERY , DEVICE MODEL , POTENCY, OR NICOTINE LEVEL . 17
(D) “DIRECTORY” MEANS THE LIST PUBLI SHED BY THE ATTORNEY 18
GENERAL OF APPROVED E LECTRONIC SMOKING DE VICES MANUFACTURERS THAT 19
HAVE SUBMITTED A CER TIFICATION IN ACCORD ANCE WITH THIS SUBTI TLE AND THE 20
BRAND FAMILIES AND B RAND STYLES OF THEIR ELECTRONIC SMOKING D EVICES 21
THAT HAVE BEEN DETER MINED BY THE ATTORNEY GENERAL AS CONFORMING TO 22
THE REQUIREMENTS OF § 16.7–302 OF THIS SUBTITLE. 23
16.7–302. 24
(A) AN ELECTRONIC SMOKING DEVICES MANUFACTURER WHOSE 25
PRODUCTS ARE SOLD IN THE STATE SHALL EXECUTE A ND DELIVER, ON A FORM 26
PRESCRIBED BY THE ATTORNEY GENERAL, A CERTIFICATION TO THE ATTORNEY 27
GENERAL NOT LATER THA N JUNE 30 EACH YEAR. 28
(B) IN THE CERTIFICATION SUBMITTED TO THE ATTORNEY GENERAL 29
UNDER THIS SECTION , THE ELECTRONIC SMOKI NG DEVICES MANUFACTU RER 30
SHALL: 31
(1) IDENTIFY ALL OF ITS ELECTRONIC SMOKING D EVICE BRAND 32
FAMILIES THAT ARE BE ING SOLD IN THE UNITED STATES AS OF THE DATE OF 33
CERTIFICATION ; 34
12 HOUSE BILL 1441
(2) IDENTIFY ANY ELECTRO NIC SMOKING DEVICES BRAND FAMILY 1
THAT THE ELECTRONIC SMOKING DEVICES MANU FACTURER SEEKS TO SE LL IN THE 2
STATE IN THE UPCOMING FISCAL YEAR; 3
(3) INDICATE WITH AN AST ERISK ANY BRAND FAMI LY SOLD IN THE 4
STATE DURING THE PREC EDING 3 CALENDAR YEARS THAT IS NO LONGER SOLD IN 5
THE STATE AS OF THE DATE OF CERTIFICATION ; 6
(4) IF A BRAND FAMILY IN CLUDED IN THE CERTIF ICATION WAS MADE 7
BY ANOTHER MANUFACTU RER IN THE PRECEDING 3 CALENDAR YEARS , IDENTIFY BY 8
NAME AND ADDRESS THE OTHER MANUFACTURER ; 9
(5) INDICATE WHETHER THE ELECTRONIC SMOKING D EVICES BRAND 10
FAMILY AND BRAND STYLE BEING CERTIFIED INCLUD ES AN AEROSOLIZING D EVICE 11
OR THE VAPING LIQUID , NICOTINE SALT, OR OTHER CONSUMABLE SUBSTANCE TO 12
BE AEROSOLIZED OR BO TH; 13
(6) PROVIDE IMAGES , SPECIFICATIONS , OR OTHER 14
REPRESENTATIONS OF T HE SHAPE, DESIGN, LABELING AND PACKAGI NG, AND A 15
SAMPLE OF EACH ELECT RONIC SMOKING DEVICE FOR EACH BRAND FAMIL Y 16
INCLUDED IN THE CERT IFICATION; 17
(7) PROVIDE THE MARKETIN G, ADVERTISING, AND SOCIAL MEDIA 18
PLANS OR OTHER MATER IALS FOR EACH BRAND FAMILY INCLUDED IN T HE 19
CERTIFICATION ; 20
(8) PROVIDE ANY OTHE R INFORMATION NECESS ARY TO ENABLE THE 21
ATTORNEY GENERAL TO DETERMINE WHETHER THE ELECTRON IC SMOKING DEVICE 22
BRAND FAMILIES AND BRAND S TYLES BEING CERTIFIE D ARE INTENDED TO AP PEAL 23
TO YOUTH, DISGUISE OR MISREPRE SENT THE NATURE OF T HE PRODUCT , CLAIM IN 24
ANY WAY THAT THE ELECTRONIC SMOKING DEVICE IS A SMOKING CESSATION 25
PRODUCT OR NICOTINE REPLACEMENT THERAPY , OR OTHERWISE DECEIVE 26
CONSUMERS ; AND 27
(9) IDENTIFY ANY OTHER I NFORMATION REQUIRED BY THE 28
ATTORNEY GENERAL TO CONFIRM TH AT THE ELECTRONIC SM OKING DEVICES 29
MANUFACTURER AND ITS BR AND FAMILIES AND BRAND STYLES ARE IN COMPLIANCE 30
WITH THIS TITLE AND ANY OTHER APPLICABLE FEDERAL, STATE, AND LOCAL LAWS . 31
(C) AN ELECTRONIC SMOKING DEVICES MANUFACTURER SHALL FURTHER 32
CERTIFY THAT THE ELE CTRONIC SMOKING DEVI CES MANUFACT URER: 33
HOUSE BILL 1441 13
(1) IS REGISTERED TO DO BUSINESS IN THE STATE OR HAS 1
APPOINTED A RESIDENT AGENT FOR SERVICE OF PROCESS AND PROVIDED NOTICE 2
OF THE APPOINTMENT A S REQUIRED UNDER § 16.7–304 OF THIS SUBTITLE; 3
(2) IS LICENSED BY THE EXECUTIVE DIRECTOR TO OPERATE A S AN 4
ELECTRONIC SMOKING D EVICES MANUFACTURER IN THE STATE; AND 5
(3) IS IN FULL COMPLIANC E WITH ALL APPLICABL E LOCAL, STATE, 6
AND FEDERAL LAWS REG ARDING THE MANUFACTU RE AND SALE OF ELECT RONIC 7
SMOKING DEVICES . 8
(D) (1) AN ELECTRONIC SMOKING DEVICES MANUFACT URER MAY NOT 9
INCLUDE A BRAND FAMI LY OR BRAND STYLE IN ITS CERTIFICATION UN LESS IT 10
AFFIRMS UNDER PENALT Y OF PERJURY THAT : 11
(I) IT IS THE ENTITY THA T FABRICATES , MANUFACTURES , 12
MIXES, OR OTHERWISE PRODUCE S THE ELECTRONIC SMO KING DEVICES INCLUDE D 13
IN THE CERTIFICATION; AND 14
(II) TO THE BEST OF THE E LECTRONIC SMOKING DE VICES 15
MANUFACTURER ’S KNOWLEDGE , NO OTHER ELECTRONIC SMOKING DEVICES 16
MANUFACTURER IS FABR ICATING, MANUFACTURING , MIXING, OR OTHERWISE 17
PRODUCING ELECTRONIC SMOKING DEVICES FOR SALE IN THE UNITED STATES 18
WITH THE SAME BRAND NAME AS A BRAND FAMI LY INCLUDED IN THE 19
CERTIFICATION . 20
(2) NOTHING IN THIS SECTI ON MAY BE CONSTRUED AS LIMITING OR 21
OTHERWISE AFFECTING THE STATE’S RIGHT TO REFUSE TO INCLUDE AN 22
ELECTRONIC SMOKING D EVICE ON THE DIRECTO RY IF THE ATTORNEY GENERAL 23
HAS REASON TO BELIEV E THAT A BRAND FAMIL Y OR BRAND STYLE INC LUDED IN A 24
CERTIFICATION IS AN ELECTRONIC SMOKING D EVICE PRODUCED BY A DIFFERENT 25
ELECTRONIC SMOKING D EVICES MANUFACTURER . 26
(E) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , AN 27
ELECTRONIC SMOKING D EVICES MANUFACTURER THAT HAS NOT PREVIOU SLY 28
SUBMITTED A CERTIFIC ATION WITH THE STATE OR THAT IS NOT LISTED IN THE 29
DIRECTORY MAY SUBMIT AN INITIAL CERTIFICA TION WITH THE ATTORNEY 30
GENERAL AT ANY POINT DURING THE YEAR . 31
(2) AN ELECTRONIC SMOKING DEVICES MANUFACTURER THAT 32
SUBMITS AN INITIAL C ERTIFICATION UNDER P ARAGRAPH (1) OF THIS SUBSECTION 33
MUST SUBMIT AN ANNUA L CERTIFICATION IN A CCORDANCE WITH SUBSE CTION (A) 34
OF THIS SECTION, UNLESS THE INITIAL C ERTIFICATION WAS SUB MITTED WITHIN 90 35 14 HOUSE BILL 1441
DAYS OF THE DATE THE ANNUAL SUBMISSION IS REQUIRED UNDER SUBSE CTION (A) 1
OF THIS SECTION. 2
(F) AN ELECTRONIC SMOKING DEVICES MANUFACTURER LISTED ON THE 3
DIRECTORY SHALL UPDA TE ITS LISTING ON TH E DIRECTORY TO REFLE CT ANY 4
MATERIAL CHANGES TO ITS CERTIFICATION , INCLUDING A CHANGE I N 5
MANUFACTURING FACILI TY OR AN ADDITION TO , A DISCONTINUANCE FRO M, OR A 6
MODIFICATION OF ITS LISTED ELECTRONIC SM OKING DEVICE BRAND F AMILIES OR 7
BRAND STYLES BY EXEC UTING AND DELIVERING A SUPPLEMENTAL CERTI FICATION 8
TO THE ATTORNEY GENERAL NOT LESS THAN 30 CALENDAR DAYS PRIOR TO THE 9
CHANGE. 10
(G) (1) FOR EACH CERTIFICATIO N SUBMITTED UNDER SUBSECT ION (A) 11
OF THIS SECTION, THE ELECTRONIC SMOKI NG DEVICES MANUFACTU RER SHALL PAY 12
TO THE ATTORNEY GENERAL A FEE OF $1,000 FOR EACH ELECTRONIC SMOKING 13
DEVICE BRAND STYLE THE MANUFACTUR ER IS APPLYING TO IN CLUDE IN THE 14
DIRECTORY UNDER § 16.7–303 OF THIS SUBTITLE. 15
(2) THE REVENUES FROM THE CERTIFICATION FEE ES TABLISHED 16
UNDER PARAGRAPH (1) OF THIS SUBSECTION S HALL BE DISTRIBUTED TO A SPECIAL 17
FUND TO BE USED BY T HE OFFICE OF THE ATTORNEY GENERAL FOR ENFORCEME NT 18
OF THIS SUBTITLE. 19
16.7–303. 20
(A) EXCEPT AS PROVIDED IN SUBSECTION (B)(1) AND (2) OF THIS SECTION, 21
THE ATTORNEY GENERAL SHALL DEVELOP AND MAKE AVAILABLE F OR PUBLIC 22
INSPECTION A DIRECTO RY LISTING ALL ELECT RONIC SMOKING DEVICE S 23
MANUFACTURERS THAT H AVE PROVIDED CURRENT AND ACCURATE 24
CERTIFICATIONS COMPLYING W ITH THE REQUIREMENTS OF § 16.7–302 OF THIS 25
SUBTITLE AND ALL APP ROVED ELECTRONIC SMO KING DEVICE BRAND FA MILIES AND 26
BRAND STYLES INCLUDE D IN THE CERTIFICATI ONS. 27
(B) (1) THE ATTORNEY GENERAL MAY NOT INCLU DE OR RETAIN ON THE 28
DIRECTORY ANY BRAND FAMILIES OR BR AND STYLES OF ANY EL ECTRONIC SMOKING 29
DEVICES MANUFACTURER THAT FAILS TO PROVID E THE REQUIRED CERTI FICATION 30
OR FEE OR WHOSE CERT IFICATION THE ATTORNEY GENERAL DETERMINES IS NOT 31
IN COMPLIANCE WITH § 16.7–302 OF THIS SUBTITLE , UNLESS THE ATTORNEY 32
GENERAL HAS DETERMINE D THAT THE DEFICIENCY HAS BEEN CURED TO TH E 33
SATISFACTION OF THE ATTORNEY GENERAL. 34
(2) THE ATTORNEY GENERAL SHALL UPDATE THE DIRECTORY AS 35
NECESSARY TO CORRECT MISTAKES AND TO ADD OR REMOVE AN ELECTRO NIC 36 HOUSE BILL 1441 15
SMOKING DEVICES MANUFACTURER OR ANY BRAND FAMILY OR BRAN D STYLE OF AN 1
ELECTRONIC SMOKING D EVICE TO KEEP THE DI RECTORY IN CONFORMIT Y WITH THE 2
REQUIREMENTS OF THIS SUBTITLE. 3
(3) EACH LICENSED ELECTRO NIC SMOKING DEVICES WHOLESALER 4
DISTRIBUTOR AND LICE NSED ELECTRONIC SMOK ING DEVICES WHOLESALE R 5
IMPORTER SHALL PROVI DE TO THE ATTORNEY GENERAL, AND UPDATE AS 6
NECESSARY, CURRENT CONTACT INFO RMATION FOR THE PURP OSE OF RECEIVING 7
ANY NOTIFICATIONS TH AT MAY BE REQUIRED B Y THIS SUBTITLE , INCLUDING A 8
POINT OF CONTACT PER SON, A PHYSICAL LOCATION, AND AN E–MAIL ADDRESS . 9
(C) AN ELECTRONIC SMOKING DEVICES MANUFACTURER , AN ELECTRONIC 10
SMOKING DEVICES WHOL ESALER DISTRIBUTOR , AND AN ELECTRONIC SM OKING 11
DEVICES WHOLESALER I MPORTER SHALL MAINTA IN ALL INVOICES AND 12
DOCUMENTATION OF SAL ES, ALL APPR OVAL LETTERS AND UND ERLYING 13
APPLICATIONS AND MAT ERIALS, AND ANY OTHER INFORM ATION RELIED ON FOR ITS 14
CERTIFICATION FOR A MINIMUM PERIOD OF 5 YEARS, UNLESS OTHERWISE 15
REQUIRED BY LAW TO M AINTAIN THEM FOR A G REATER PERIOD OF TIM E. 16
(D) A PERSON MAY NOT SELL , OFFER FOR SALE , POSSESS FOR SALE IN THE 17
STATE, OR IMPORT FOR PERSON AL CONSUMPTION IN TH E STATE, ANY: 18
(1) ELECTRONIC SMOKING D EVICE, BRAND FAMILY , OR BRAND STYLE 19
NOT INCLUDED ON THE DIRECTORY; OR 20
(2) ELECTRONIC SMOKING D EVICES MANUFACTURED BY AN 21
ELECTRONIC SMOKING D EVICES MANUFACTURER THAT IS NOT INCLUDED ON THE 22
DIRECTORY. 23
(E) ANY ELECTRONIC SMOKIN G DEVICE, BRAND FAMILY , OR BRAND STYLE 24
NOT INCLUDED ON THE DIRECTORY: 25
(1) SHALL BE DEEMED CONT RABAND UNDER §§ 13–836, 13–837, AND 26
13–839 OF THE TAX – GENERAL ARTICLE; 27
(2) MAY NOT BE PURCHASED OR SOLD IN THE STATE; AND 28
(3) MAY BE SUBJECT TO SE IZURE, FORFEITURE, AND DISPOSAL. 29
16.7–304. 30
(A) (1) ANY NONRESIDENT OR FO REIGN ELECTRONIC SMO KING DEVICES 31
MANUFACTURER THAT HA S NOT REGISTERED TO DO BUSINESS IN THE STATE AS A 32 16 HOUSE BILL 1441
FOREIGN CORPORATION OR BUSINESS ENTITY S HALL APPOINT , AND CONTINUALLY 1
ENGAGE WITHOUT INTER RUPTION, THE SERVICES OF AN A GENT IN THE STATE TO 2
ACT AS AN AGENT FOR THE SERVICE OF PROCE SS ON THE NONRESIDEN T OR 3
FOREIGN ELECTRONIC S MOKING DEVICES MANUFACTURER BEFORE ITS BRAND 4
FAMILIES OR BRAND ST YLES MAY BE INCLUDED OR RETAINED ON THE D IRECTORY 5
DESCRIBED IN § 16.7–303 OF THIS SUBTITLE . 6
(2) ANY PROCESS AND ANY A CTION OR PROCEEDING AGAINST A 7
NONRESIDENT OR FOREI GN ELECTRONIC SMOKIN G DEVICES MANUFACTURER 8
CONCERNING OR ARISIN G OUT OF THE ENFORCE MENT OF THIS SUBTITL E OR THIS 9
ARTICLE MAY BE SERVE D IN ANY MANNER AUTH ORIZED BY LAW. 10
(3) (I) THE SERVICE OF PROCES S ON THE DESIGNATED AGENT 11
SHALL CONSTITUTE LEG AL AND VALID SERVICE OF PROCESS ON TH E ELECTRONIC 12
SMOKING DEVICES MANU FACTURER. 13
(II) THE ELECTRONIC SMOKIN G DEVICES MANUFACTUR ER 14
SHALL PROVIDE , TO THE SATISFACTION OF THE EXECUTIVE DIRECTOR AND THE 15
ATTORNEY GENERAL, THE NAME, ADDRESS, TELEPHONE NUMBER , AND PROOF OF 16
THE APPOINTMENT AND AVAILABILITY OF THE AGE NT TO THE EXECUTIVE 17
DIRECTOR AND THE ATTORNEY GENERAL. 18
(B) (1) THE ELECTRONIC SMOKIN G DEVICES MANUFACTUR ER SHALL 19
PROVIDE: 20
(I) NOTICE TO THE EXECUTIVE DIRECTOR AND THE ATTORNEY 21
GENERAL NOT LESS THAN 30 CALENDAR DAYS PRIOR TO THE TERMINATION OF THE 22
AUTHORITY OF AN AGEN T; AND 23
(II) PROOF TO THE SATISFA CTION OF THE ATTORNEY GENERAL 24
OF THE APPOINTMENT O F A NEW AGENT NOT LE SS THAN 5 CALENDAR DAYS PRIOR 25
TO THE TERMINATION O F AN EXISTING AGENT APPOINTMENT . 26
(2) IF AN AGENT TERMINATE S AN AGENCY APPOINTMEN T, THE 27
ELECTRONIC SMOKING D EVICES MANUFACTURER SHALL: 28
(I) NOTIFY THE EXECUTIVE DIRECTOR AND THE ATTORNEY 29
GENERAL OF THE TERMIN ATION WITHIN 5 CALENDAR DAYS ; AND 30
(II) INCLUDE PROOF TO THE SATISFACTION OF THE ATTORNEY 31
GENERAL OF TH E APPOINTMENT OF A N EW AGENT. 32
16.7–305. 33 HOUSE BILL 1441 17
(A) (1) NOT LATER THAN 21 DAYS AFTER THE END O F EACH CALENDAR 1
MONTH, OR OTHER REPORTING P ERIOD ESTABLISHED BY THE ATTORNEY GENERAL, 2
EACH LICENSED ELECTR ONIC SMOKING DEVICES WHOLESALER DISTRIBUT OR AND 3
LICENSED ELECTRONIC SMOKING DEVICES MANU FACTURER THAT ALSO H OLDS A 4
LICENSE TO ACT AS AN ELECTRONIC SMOKING D EVICES RETAILER OR V APE SHOP 5
VENDOR SHALL SUBMIT TRUE AN D ACCURATE INFORMATI ON IN THE FORM AND 6
MANNER THE ATTORNEY GENERAL REQUIRES TO F ACILITATE COMPLIANCE WITH 7
THIS SUBTITLE, INCLUDING A LIST BY BRAND FAMILY AND BRA ND STYLE OF THE 8
TOTAL QUANTITY OF EL ECTRONIC SMOKING DEV ICES SOLD DURING THE 9
REPORTING PERIOD BY THE LICENSED ELEC TRONIC SMOKING DEVIC ES 10
WHOLESALER DISTRIBUT OR TO: 11
(I) A LICENSED ELECTRONIC SMOKING D EVICES RETAILER OR 12
LICENSED VAPE SHOP V ENDOR; OR 13
(II) THE LICENSED ELECTRO NIC SMOKING DEVICES 14
MANUFACTURER THAT AL SO HOLDS A LICENSE T O ACT AS AN ELECTRON IC SMOKING 15
DEVICES RETAILER OR VAPE SHOP VENDOR . 16
(2) A LICENSED ELECTRONIC SMOKING DEVICES WHOL ESALER 17
DISTRIBUTOR OR LICENSED ELECTRON IC SMOKING DEVICES M ANUFACTURER THAT 18
ALSO HOLDS A LICENSE TO ACT AS AN ELECTRO NIC SMOKING DEVICES RETAILER OR 19
VAPE SHOP VENDOR SHALL MAINTAIN AND M AKE AVAILABLE TO THE EXECUTIVE 20
DIRECTOR, THE ATTORNEY GENERAL, AND THE COMPTROLLER FOR A PER IOD OF 5 21
YEARS ALL INVOICES A ND DOCUMENTATION OF SALES OF ALL ELECTRO NIC 22
SMOKING DEVICES AND ANY OTHER INFORMATIO N RELIED ON IN REPOR TING TO 23
THE EXECUTIVE DIRECTOR, THE ATTORNEY GENERAL, AND THE COMPTROLLER . 24
(B) (1) THE ATTORNEY GENERAL MAY DISCLOSE TO THE EXECUTIVE 25
DIRECTOR AND THE COMPTROLLER ANY INFOR MATION RECEIVED UNDE R THIS 26
SUBTITLE AND REQUEST ED BY THE EXECUTIVE DIRECTOR OR THE COMPTROLLER 27
FOR THE PURPOSES OF DETERMINING COMPLIAN CE WITH AND ENFORCEM ENT OF 28
THE PROVISIONS OF THI S SUBTITLE. 29
(2) THE EXECUTIVE DIRECTOR, THE COMPTROLLER , AND THE 30
ATTORNEY GENERAL, ONLY FOR PURPOSES OF ENFORCEMENT OF THIS TITLE OR 31
CORRESPONDING LAWS O F OTHER STATES : 32
(I) SHALL SHARE WITH EAC H OTHER THE INFORMAT ION 33
RECEIVED UND ER THIS SUBTITLE OR TITLE 11 OF THE TAX – GENERAL ARTICLE; 34
AND 35
18 HOUSE BILL 1441
(II) MAY SHARE THE INFORM ATION WITH OTHER FED ERAL, 1
STATE, OR LOCAL AGENCIES . 2
(C) IN ADDITION TO ANY OT HER INFORMATION REQU IRED TO BE 3
SUBMITTED BY LAW , THE EXECUTIVE DIRECTOR OR THE ATTORNEY GENERAL MAY 4
REQUIRE A LICENSEE TO SUBMIT ANY ADDITI ONAL INFORMATION , INCLUDING 5
INVOICES, RECEIPTS, CORRESPONDENCE , CONFIRMATIONS OF APP ROVAL, 6
MARKETING, ADVERTISING MATERIAL S, AND SAMPLES OF PACKA GING OR LABELING 7
OF EACH BRAND FAMILY , AS IS NECESSARY TO ENABLE THE ATTORNEY GENERAL TO 8
DETERMINE WHETHER A LICENSED ELECTRONIC SMOKING DEVICES 9
MANUFACTURER IS IN C OMPLIANCE WITH THIS SUBTITLE AND ALL OTH ER 10
APPLICABLE FEDERAL , STATE, AND LOCAL LAWS . 11
(D) THE EXECUTIVE DIRECTOR, THE ATTORNEY GENERAL, OR THE 12
COMPTROLLER MAY ADOPT R EGULATIONS REQUIRING A LICENSEE TO SUBMIT ANY 13
ADDITIONAL INFORMATI ON OR DOCUMENTATION AS NECESSARY TO DETE RMINE 14
THE ACCURACY OF ANY INFORMATION SUBMITTE D OR OTHERWISE PROMO TE 15
COMPLIANCE WITH THIS SUBTITLE. 16
16.7–306. 17
(A) (1) BEFORE INCLUSION ON THE DIR ECTORY UNDER § 16.7–303 OF 18
THIS SUBTITLE , A LICENSED ELECTRONI C SMOKING DEVICES MA NUFACTURER 19
SHALL DEPOSIT AND MA INTAIN $75,000 IN AN ESCROW FUND ES TABLISHED AT A 20
FEDERALLY OR STATE CHARTERED FINAN CIAL INSTITUTION AND GOVERNED BY A 21
QUALIFIED ESCROW AGREEME NT THAT HAS BEEN REV IEWED AND APPROVED B Y 22
THE ATTORNEY GENERAL. 23
(2) THE ATTORNEY GENERAL MAY AUTHORIZE A REDUCTION OF THE 24
AMOUNT REQUIRED TO B E DEPOSITED INTO A Q UALIFIED ESCROW FUND BY A 25
LICENSED ELECTRONIC SMOKING DEVICES MANU FACTURER OF UP TO $50,000 IF 26
THE ELECTRONIC SMOKI NG DEVICE BRAND FAMI LIES AND BRAND STYLES 27
INCLUDED IN THE MANU FACTURER’S CERTIFICATION SUBM ITTED UNDER THIS 28
SUBTITLE HAVE RECEIV ED A FINAL MARKETING ORDER AND ARE AUTHOR IZED BY 29
THE FEDERAL FOOD AND DRUG ADMINISTRATION. 30
(B) A LICENSED ELECTRONIC SMOKING DEVICES MANU FACTURER THAT 31
PLACES FUNDS INTO ES CROW IN ACCORDANCE W ITH SUBSECTION (A) OF THIS 32
SECTION SHALL RECEIV E THE INTEREST OR OT HER APPRECIATION ON THE FUNDS 33
AS EARNED. 34
(C) THE ATTORNEY GENERAL MAY RELEASE THE FUNDS FROM ESCRO W 35
ONLY TO: 36 HOUSE BILL 1441 19
(1) THE EXECUTIVE DIRECTOR TO SATISFY A NY UNPAID COSTS 1
ARISING OUT OF THE C OLLECTION, SEIZURE, STORAGE, DISPOSAL, OR OTHER 2
ENFORCEMENT COSTS RE SULTING FROM A VIOLA TION OF AN APPLICABL E FEDERAL, 3
STATE, OR LOCAL LAW BY THE LICENSED ELECTRONIC SMOKING DEVICES 4
MANUFACTURER ; OR 5
(2) A LICENSED ELECTRONI C SMOKING DEVICES MA NUFACTURER IF 6
THE LICENSED ELECTRO NIC SMOKING DEVICES MANUFACTURER : 7
(I) ELECTS TO CEASE SELL ING ELECTRONIC SMOKI NG DEVICES 8
IN THE STATE; 9
(II) DEMONSTRATES TO THE SATISFACTION OF THE ATTORNEY 10
GENERAL THAT THE LICE NSED ELECTRONIC SMOK ING DEVICES MANUFACT URER 11
HAS REMOVED ALL BRAN D FAMILIES AND BRAND STYLES MANUFACTURED BY THE 12
LICENSED ELECTRONIC SMOKING DEVICES MANU FACTURER FROM THE STATE; AND 13
(III) APPLIES TO THE ATTORNEY GENERAL FOR A RELEASE OF 14
THE FUNDS IN ESCROW . 15
(D) (1) EACH LICENSED ELECTRO NIC SMOKING DEVICES 16
MANUFACTURER THAT PL ACES FUNDS INTO ESCR OW IN ACCORDANCE WIT H 17
SUBSECTION (A) OF THIS SECTION SHAL L ANNUALLY CERTIFY T O THE ATTORNEY 18
GENERAL THAT IT IS IN COMPLIANCE WITH SUBS ECTION (A) OF THIS SECTION. 19
(2) IF THE ATTORNEY GENERAL NOTIFIES A LI CENSED ELECTRONIC 20
SMOKING DEVICES MANU FACTURER THAT THE AM OUNT IN ESCROW HAS F ALLEN 21
BELOW THE APPLICABLE AMOUNT REQUIRED UNDE R SUBSECTION (A) OF THIS 22
SECTION, THE LICENSED ELECTRO NIC SMOKING DEVICES MANUFACTURER SHALL 23
BRING THE AMOUNT IN ESCROW INTO COMPLIAN CE WITHIN 15 DAYS. 24
(3) THE ATTORNEY GENERAL MAY BRING A C IVIL ACTION ON BEHAL F 25
OF THE STATE AGAINST ANY LIC ENSED ELECTRONIC SMO KING DE VICES 26
MANUFACTURER THAT FA ILS TO PLACE INTO ES CROW THE FUNDS REQUI RED UNDER 27
SUBSECTION (A) OF THIS SECTION. 28
(4) (I) A LICENSED ELECTRONIC SMOKING DEVICES 29
MANUFACTURER THAT FA ILS TO PLACE INTO ES CROW THE FUNDS REQUI RED UNDER 30
SUBSECTION (A) OF THIS SECTION SHALL BE REQ UIRED WITHIN 15 DAYS TO PLACE 31
SUCH FUNDS INTO ESCR OW SO AS TO BRING TH E MANUFACTURER INTO 32
COMPLIANCE WITH THIS SECTION. 33
20 HOUSE BILL 1441
(II) EACH DAY THAT A LICEN SED ELECTRONIC SMOKI NG 1
DEVICES MANUFACTURER IS LISTED ON THE DIR ECTORY AND HAS LESS THAN THE 2
AMOUNT REQUIRED TO B E MAINTAINED IN AN E SCROW ACCOUNT UNDER 3
SUBSECTION (A) OF THIS SECTION SHAL L BE A SEPARATE VIOL ATION. 4
(III) THE COURT, ON A FINDING OF A VI OLATION OF SUBSECTIO N 5
(A) OF THIS SECTION, MAY IMPOSE A CIVIL P ENALTY TO BE PAID TO THE GENERAL 6
FUND OF THE STATE OF $500 FOR EACH DAY OF EACH VIOLATION. 7
16.7–307. 8
(A) A DETERMINATION BY THE ATTORNEY GENERAL TO OMIT OR TO 9
DELETE FROM THE DIRE CTORY DESCRIBED IN § 16.7–303 OF THIS SUBTITLE A 10
BRAND FAMILY , A BRAND STYLE , OR AN ELECTRONIC SM OKING DEVICES 11
MANUFACTURER SHALL B E SUBJECT TO REVIEW IN ACCORDANCE WITH TITLE 10, 12
SUBTITLE 2 OF THE STATE GOVERNMENT ARTICLE. 13
(B) (1) THE ATTORNEY GENERAL MAY NOT REMOV E A BRAND FAMILY , A 14
BRAND STYLE, OR AN ELECTRONIC SMO KING DEVICES MANUFAC TURER FROM T HE 15
DIRECTORY UNTIL AT L EAST 15 DAYS AFTER THE ELECT RONIC SMOKING DEVICE S 16
MANUFACTURER IS GIVE N NOTICE OF THE INTE NDED ACTION. 17
(2) NOTICE UNDER THIS SUB SECTION SHALL BE SUF FICIENT AND 18
SHALL BE DEEMED RECE IVED BY AN ELECTRONI C SMOKING DEVICES 19
MANUFACTURE R IF THE NOTICE IS S ENT ELECTRONICALLY T O THE ELECTRONIC 20
SMOKING DEVICES MANU FACTURER’S E–MAIL ADDRESS FROM TH E MOST RECENT 21
CERTIFICATION FILED , TO THE ELECTRONIC SM OKING DEVICES MANUFA CTURER’S 22
ADDRESS FROM THE MOS T RECENT CERTIFICATI ON FILED, OR TO THE 23
MANUFACTURER ’S REGISTERED AGENT F OR SERVICE OF PROCES S IN THE STATE. 24
(C) (1) IF THE ATTORNEY GENERAL REMOVES A BRA ND FAMILY, A 25
BRAND STYLE, OR AN ELECTRONIC SMO KING DEVICE FROM THE DIRECTORY, EACH 26
LICENSED RETAILER AN D LICENSED VAPE SHOP VENDOR SHALL HAVE 15 DAYS TO 27
REMOVE THE PRODUCT F ROM ITS INVENTORY AN D RETURN THE PRODUCT TO THE 28
ELECTRONIC SMOKING D EVICES MANUFACTURER FOR DISPOSAL. 29
(2) AFTER 15 DAYS FOLLOWING THE R EMOVAL OF A BRAND FA MILY, 30
A BRAND STYLE , OR AN ELECTRONIC SMO KING DEVICE FROM THE DIRECTORY, THE 31
PRODUCT: 32
(I) SHALL BE DEEMED CONT RABAND UNDER §§ 13–836, 33
13–837, AND 13–839 OF THE TAX – GENERAL ARTICLE; 34
HOUSE BILL 1441 21
(II) MAY NOT BE PURCHASED OR SOLD IN THE STATE; AND 1
(III) MAY BE SUBJECT TO SE IZURE, FORFEITURE, AND DISPOSAL. 2
(D) IN ANY ACTION BROUGHT BY THE STATE TO ENFORCE THIS SUBTITLE, 3
THE STATE SHALL BE ENTITL ED TO RECOVER THE CO STS OF SEIZURE, STORAGE, 4
AND DISPOSAL , EXPERT WITNESS FEES , COSTS OF THE ACTION , AND REASONABLE 5
ATTORNEY’S FEES. 6
(E) (1) IF A COURT OR OTHER A DJUDICATIV E BODY DETERMINES TH AT A 7
PERSON HAS VIOLATED THIS SUBTITLE, THE COURT OR OTHER A DJUDICATIVE BODY 8
SHALL ORDER ANY PROF ITS, GAIN, GROSS RECEIPTS , OR OTHER BENEFIT FRO M THE 9
VIOLATION TO BE PAID TO THE ATTORNEY GENERAL. 10
(2) UNLESS OTHERWISE EXPR ESSLY PROVIDED, THE REMEDIES OR 11
PENALTIES PROVIDED B Y THIS SUBTITLE ARE CUMULATIVE TO EACH O THER AND TO 12
THE REMEDIES OR PENA LTIES AVAILABLE UNDE R ALL OTHER LAWS OF THE STATE. 13
16.7–308. 14
THE ATTORNEY GENERAL OR THE EXECUTIVE DIRECTOR MAY ADOPT 15
REGULATIONS TO CA RRY OUT THIS SUBTITL E. 16
16.7–309. 17
(A) IN ADDITION TO OR INS TEAD OF ANY OTHER CI VIL OR CRIMINAL 18
REMEDY PROVIDED BY L AW: 19
(1) SUBJECT TO THE HEARI NG PROVISIONS OF § 16.7–208 OF THIS 20
TITLE, ON A DETERMINATION T HAT A LICENSEE HAS V IOLATED § 16.7–303(D) OF 21
THIS SUBTITLE OR ANY REGULATION ADOPTED U NDER THIS TITLE, OR A LICENSED 22
ELECTRONIC SMOKING D EVICES WHOLESALER DI STRIBUTOR OR LICENSE D 23
ELECTRONIC SMOKING D EVICES MANUFACTURER HAS VIOLATED § 16.7–305(A) OF 24
THIS SUBTITLE, THE EXECUTIVE DIRECTOR MAY IMPOSE A CIVIL PENALTY IN AN 25
AMOUNT NOT EXCEEDING THE GREATER OF : 26
(I) 500% OF THE RETAIL VALUE OF THE ELECTRONIC SM OKING 27
DEVICES THAT ARE THE SUBJECT OF THE VIOLA TION; OR 28
(II) $5,000; AND 29
(2) ON A DETERMINATION T HAT A LICENSEE HAS C OMMITTED A 30
SUBSEQUENT V IOLATION WITHIN 2 YEARS AFTER A VIOLAT ION OF § 16.7–303(D) OR 31 22 HOUSE BILL 1441
§ 16.7–305(A) OF THIS SUBTITLE OR ANY REGULATION ADOPT ED UNDER THIS TITLE , 1
THE EXECUTIVE DIRECTOR MAY REVOKE O R SUSPEND THE LICENS E OF THE 2
LICENSEE IN THE MANN ER PROVIDED UNDER § 16.7–209 OF THIS TITLE. 3
(B) EACH SALE OF AND EACH OFFER TO SELL ELECTR ONIC SMOKING 4
DEVICES IN VIOLATION OF § 16.7–303(D) OF THIS SUBTITLE SHA LL CONSTITUTE A 5
SEPARATE VIOLATION . 6
(C) IN ADDITION TO ANY PE NALTIES OTHERWISE PR OVIDED BY LAW , A 7
VIOLATION OF § 16.7–303(D) OF THIS SUBTITLE IS: 8
(1) AN UNFAIR, ABUSIVE, OR DECEPTIVE TRADE P RACTICE WITHIN 9
THE MEANING OF TITLE 13 OF THE COMMERCIAL LAW ARTICLE; AND 10
(2) SUBJECT TO THE ENFOR CEMENT AND PENALTY P ROVISIONS 11
CONTAINED IN TITLE 13 OF THE COMMERCIAL LAW ARTICLE. 12
(D) THE ATTORNEY GENERAL, ON THE ATTORNEY GENERAL’S OWN 13
INITIATIVE OR ON BEHALF OF THE EXECUTIVE DIRECTOR, MAY SEEK AN 14
INJUNCTION TO RESTRA IN A THREATENED OR A CTUAL VIOLATION OF § 16.7–303(D) 15
OR § 16.7–305(A) OR (D) OF THIS SUBTITLE BY A LICENSEE AND COMPE L THE 16
LICENSEE TO COMPLY WITH THOSE SECTIONS. 17
(E) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , A 18
PERSON WHO SELLS , DISTRIBUTES, ACQUIRES, HOLDS, OWNS, POSSESSES, 19
TRANSPORTS , IMPORTS, OR CAUSES TO BE IMPO RTED ELECTRONIC SMOK ING 20
DEVICES FOR RESALE TO A CONSUMER THAT THE PERSON KNOW S OR SHOULD HAVE 21
KNOWN ARE INTENDED F OR DISTRIBUTION OR S ALE IN THE STATE IN VIOLATION OF 22
§ 16.7–303(D) OF THIS SUBTITLE IS GUILTY OF A MISDEMEA NOR AND ON 23
CONVICTION IS SUBJEC T TO A FINE NOT EXCE EDING $5,000 OR IMPRISONMENT NOT 24
EXCEEDING 1 YEAR OR BOTH. 25
(2) THE PENALTIES IN PARA GRAPH (1) OF THIS SUBSECTION D O NOT 26
APPLY TO A PERSON WH O POSSESSES LESS THA N $100 WORTH OF ELECTRONIC 27
SMOKING DEVICES SOLE LY FOR PERSONAL CONS UMPTION AND NOT FOR RESALE TO 28
A CONSUMER . 29
Article – Commercial Law 30
13–301. 31
Unfair, abusive, or deceptive trade practices include any: 32
(14) Violation of a provision of: 33 HOUSE BILL 1441 23
(xlii) Section 12–6C–09.1 of the Health Occupations Article; [or] 1
(xliii) Title 14, Subtitle 48 of this article; or 2
(XLIV) SECTION 16.7–303(D) OF THE BUSINESS 3
REGULATION ARTICLE; OR 4
SECTION 2. AND BE IT FURTHER ENACTED, That, if any provision of this Act or 5
the application of any provision of this Act to any person or circumstance is held invalid for 6
any reason in a court of competent jurisdiction, the invalidity does not affect other 7
provisions or any other application of this Act that can be given effect without the invalid 8
provision or application, and for this purpose the provisions of this Act are declared 9
severable. 10
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 11
October 1, 2025. 12