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*sb0279*
SENATE BILL 279
C2 6lr1128
SB 249/22 – FIN CF HB 918
By: Senator Hayes
Introduced and read first time: January 19, 2026
Assigned to: Finance
Committee Report: Favorable with amendments
Senate action: Adopted with floor amendments
Read second time: March 23, 2026
CHAPTER ______
AN ACT concerning 1
Baltimore City – Cigarettes, Other Tobacco Products, and Electronic Smoking 2
Devices – Local Laws Authorization Enforcement and Licensure 3
FOR the purpose of authorizing Baltimore City to enact and enforce local laws a certain 4
enforcement officer to enforce provisions regulating the sale and distribution of 5
cigarettes, other tobacco products, and electronic smoking devices, subject to certain 6
exceptions; authorizing the Executive Director of the Alcohol, Tobacco, and Cannabis 7
Commission to reprimand a licensee or suspe nd or revoke a license for a violation 8
identified under this Act; requiring the Comptroller to distribute a certain amount 9
of the licensure authorization request fees collected under certain provisions of this 10
Act to the Family League of Baltimore City, In c. in a certain manner; requiring an 11
applicant for a certain initial or renewal license to request a licensure authorization 12
from the Mayor and City Council of Baltimore City and pay a certain fee ; and 13
generally relating to the regulation of cigarettes, ot her tobacco products, and 14
electronic smoking devices in Baltimore City. 15
BY adding to 16
Article – Business Regulation 17
Section 16–308.4, 16.5–104, and 16.7–103 18
Annotated Code of Maryland 19
(2024 Replacement Volume and 2025 Supplement) 20
BY repealing and reenacting, with amendments, 21
Article – Business Regulation 22
2 SENATE BILL 279
Section 16 –102, 16–216, 16–302, 16 –308.2, 16.5 –102, 16.5 –203(b), 16.5–213, 1
16.7–102, and 16.7–202(b), and 16.7–212 2
Annotated Code of Maryland 3
(2024 Replacement Volume and 2025 Supplement) 4
BY adding to 5
Article – Business Regulation 6
Section 16–302.1, 16.5–201.1, and 16.7–201.1 7
Annotated Code of Maryland 8
(2024 Replacement Volume and 2025 Supplement) 9
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 10
That the Laws of Maryland read as follows: 11
Article – Business Regulation 12
16–308.4. 13
EXCEPT FOR THE ISSUAN CE OF LICENSES UNDER THIS TITLE OR THE 14
IMPOSITION OF TAXES ON CIGARETTES UNDER TITLE 12 OF THE TAX – GENERAL 15
ARTICLE, THE BALTIMORE CITY COUNCIL MAY ENACT AND THE MAYOR OF 16
BALTIMORE CITY MAY ENFORCE LOCAL LAWS THAT ARE AT LEAST AS STRINGENT AS 17
THE PROVISIONS OF THIS TITLE THAT REGULATE THE SALE AND DIST RIBUTION OF 18
CIGARETTES. 19
16.5–104. 20
EXCEPT FOR THE ISSUAN CE OF LICENSES UNDER THIS TITLE OR THE 21
IMPOSITION OF TAXES ON OTHE R TOBACCO PRODUCTS U NDER TITLE 12 OF THE 22
TAX – GENERAL ARTICLE, THE BALTIMORE CITY COUNCIL MAY ENACT AND THE 23
MAYOR OF BALTIMORE CITY MAY ENFORCE LOCA L LAWS THAT ARE AT L EAST AS 24
STRINGENT AS THE PRO VISIONS OF THIS TITL E THAT REGULATE THE SALE AND 25
DISTRIBUTION OF OTHER TOBACCO PRODUCTS. 26
16.7–103. 27
EXCEPT FOR THE ISSUAN CE OF LICENSES UNDER THIS TITLE , THE 28
BALTIMORE CITY COUNCIL MAY ENACT AND THE MAYOR OF BALTIMORE CITY MAY 29
ENFORCE LOCAL LAWS THAT ARE AT LEAST AS STRINGENT AS THE PROVISIONS OF 30
THIS TITLE THA T REGULATE THE SALE AND DISTRIBUTION OF ELECTRONIC 31
SMOKING DEVICES. 32
16–102. 33
SENATE BILL 279 3
(A) The Executive Director may delegate any power or duty of the Executive 1
Director under this title. 2
(B) (1) IN BALTIMORE CITY, AN A SPECIAL ENFORCEMENT OFFICER OF 3
THE TOBACCO USE PREVENTION AND CESSATION PROGRAM IN THE A BALTIMORE 4
CITY HEALTH DEPARTMENT AGENCY MAY ENFORCE THIS TIT LE, INCLUDING BY 5
ENTERING AND INSPECTING, AT A REASONABLE TIME, THE PREMISES OF A COUNTY 6
LICENSE HOLDER. 7
(2) SUBJECT TO THE HEARIN G PROVISIONS OF § 16–307 OF THIS 8
TITLE, THE EXECUTIVE DIRECTOR MAY REPRIMAN D A LICENSEE OR SUSP END OR 9
REVOKE A LICENSE FOR A VIOLATION IDENTIFIED UNDER PARAGRAPH (1) OF THIS 10
SUBSECTION. 11
16–216. 12
(a) (1) [The] EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION, 13
THE Executive Director shall pay into the General Fund of the State all license fees 14
collected under this title. 15
[(b)] (2) The General Assembly intends that these license fees be used to: 16
[(1)] (I) administer this title; and 17
[(2)] (II) enforce the Maryland Cigarette Sales Below Cost Act. 18
(B) (1) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY SHALL 19
REMIT 50% OF ALL LICENSURE AUTHORIZATION REQUEST FEES COLLECTED UNDER 20
§ 16–302.1 OF THIS TITLE TO THE COMPTROLLER. 21
(2) THE COMPTROLLER SHALL DIS TRIBUTE THE FEES TO THE 22
FAMILY LEAGUE OF BALTIMORE CITY, INC. IN A MANNER THAT IS: 23
(I) CONSISTENT WITH THE PROCESS ESTABLISHED BY THE 24
MAYOR AND CITY COUNCIL OF BALTIMORE CITY UNDER § 16–302.1 OF THIS TITLE; 25
AND 26
(II) PROPORTIONAL TO THE NUMBER OF LICENSEES 27
OPERATING IN EACH LEGISLATIVE DISTRICT. 28
16–302. 29
(a) For each county license, an applicant shall: 30
(1) submit an application to the clerk; and 31
4 SENATE BILL 279
(2) pay to the clerk a license fee of $300. 1
(b) (1) From each license fee collected under subsection (a) of this section, the 2
clerk shall distribute: 3
(i) $25 to the Executive Director; 4
(ii) in Montgomery County, $275 to the county to be used to enforce 5
existing laws banning the sale or distribution of tobacco, tobacco products, or electronic 6
smoking devices, as defined in § 16.7–101 of this article, to individuals under the age of 21 7
years; and 8
(iii) in all other counties, $275 to the Maryland Department of Health 9
to be used by the D epartment or its designee to enforce existing laws prohibiting the sale 10
or distribution of tobacco, tobacco products, or electronic smoking devices, as defined in § 11
16.7–101 of this article, to individuals under the age of 21 years. 12
(2) Funds distributed under paragraph (1)(ii) of this subsection may not be 13
used to supplant existing funding for the enforcement of laws banning the sale or 14
distribution of tobacco or tobacco products to individuals under the age of 21 years. 15
(C) IN BALTIMORE CITY, IN ADDI TION TO THE REQUIREM ENTS UNDER 16
SUBSECTION (A) OF THIS SECTION , AN APPLICANT FOR AN INITIAL OR RENEWAL 17
COUNTY LICENSE SHALL PROVIDE TO THE CLERK A LICENSURE AUTHORIZ ATION 18
ISSUED UNDER § 16–302.1 OF THIS SUBTITLE. 19
16–302.1. 20
(A) THIS SECTION APPLIES ONLY IN BALTIMORE CITY. 21
(B) BEFORE A PERSON MAY A PPLY FOR AN INITIAL OR RENEWAL COUNTY 22
LICENSE UNDER THIS T ITLE, THE PERSON SHALL REQ UEST A LICENSURE 23
AUTHORIZATION FROM THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY. 24
(C) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY MAY: 25
(1) ESTABLISH AND CHARGE A FEE FOR A LICENSUR E 26
AUTHORIZATION REQUES T MADE UNDER THIS SE CTION OR § 16.5–201.1 OR § 27
16.7–202.1 OF THIS ARTICLE; AND 28
(2) ESTABLISH A PROCESS TO ACCEPT AND APPROV E OR DENY 29
LICENSURE AUTHORIZAT ION REQUESTS MADE UN DER THIS SECTION AND §§ 30
16.5–201.1 AND 16.7–202.1 OF THIS ARTICLE. 31
SENATE BILL 279 5
(D) IF A PROCESS IS ESTAB LISHED UNDER SUBSECT ION (C) OF THIS 1
SECTION, THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY SHALL INCLUDE AS 2
PART OF THE PROCESS: 3
(1) A REQUIREMENT THAT AN APPLICANT IS: 4
(I) IN COMPLIANCE WITH A LL RELEVANT STATE AND LOCAL 5
LAWS; AND 6
(II) OTHERWISE ENTITLED TO BE LICENSED; AND 7
(2) A MECHANISM FOR INCL UDING THE BASIS FOR ANY DENIAL OF A 8
LICENSURE AUTHORIZAT ION REQUEST THAT IS REFERRED TO THE EXECUTIVE 9
DIRECTOR. 10
(D) IF AN APPLICANT IS DENIED A LICENSURE AUTHORIZATION REQUESTED 11
UNDER THIS SECTION, THE EXECUTIVE DIRECTOR MAY REVIEW THE BASIS FOR THE 12
DENIAL. 13
16–308.2. 14
(a) In this section, “unpackaged cigarette” means any cigarette not contained in 15
a sealed package of 20 or more cigarettes that are designed and intended to be sold as a 16
unit. 17
(b) This section applies only in Baltimore City. 18
(c) A person who holds a county license may not sell an unpackaged cigarette. 19
(d) (1) An enforcement officer of the Tobacco Use Prevention and Cessation 20
Program in the Baltimore City Health Department may enforce this section by entering 21
and inspecting, at a reasonable time, the premises of a county license holder. 22
(2) An enforcement officer shall report a violation of this section to a State’s 23
Attorney. 24
(3) SUBJECT TO THE HEARIN G PROVISIONS OF § 16–307 OF THIS 25
SUBTITLE, THE EXECUTIVE DIRECTOR MAY REPRIMAND A LICENSEE OR SUSP END 26
OR REVOKE A LICENSE FOR A VIOLATION IDEN TIFIED UNDER PARAGRA PH (1) OF 27
THIS SUBSECTION. 28
(e) Issuance of a citation by the Comptroller or the Executive Director for a 29
violation of § 16–215 of this title precludes a prosecution for a violation under this section 30
arising out of the same incident. 31
16.5–102. 32
6 SENATE BILL 279
(A) The Executive Director may delegate any power or duty of the Execu tive 1
Director. 2
(B) (1) IN BALTIMORE CITY, AN A SPECIAL ENFORCEMENT OFFICER OF 3
THE TOBACCO USE PREVENTION AND CESSATION PROGRAM IN THE A BALTIMORE 4
CITY HEALTH DEPARTMENT AGENCY MAY ENFORCE THIS TIT LE, INCLUDING BY 5
ENTERING AND INSPECTING, AT A REASONABLE TIME, THE PREMISES OF A COUNTY 6
LICENSE HOLDER. 7
(2) SUBJECT TO THE HEARIN G PROVISIONS OF § 16.5–209 OF THIS 8
TITLE, THE EXECUTIVE DIRECTOR MAY REPRIMAN D A LICENSEE OR SUSP END OR 9
REVOKE A LICENSE FOR A VIOLATION IDENTIFIED UNDER PARAGRAPH (1) OF THIS 10
SUBSECTION. 11
16.5–201.1. 12
(A) THIS SECTION APPLIES ONLY IN BALTIMORE CITY. 13
(B) BEFORE A PERSON MAY A PPLY FOR AN INITIAL OR RENEWAL COUNTY 14
LICENSE UNDER THIS T ITLE, THE PERSON SHALL REQUEST A LICE NSURE 15
AUTHORIZATION FROM THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY. 16
(C) IF AN APPLICANT IS DENIED A LICENSURE AUTHORIZATION REQUESTED 17
UNDER THIS SECTION, THE EXECUTIVE DIRECTOR MAY REVIEW THE BASIS FOR THE 18
DENIAL. 19
16.5–203. 20
(b) (1) An applicant for a license to act as an other tobacco products retailer or 21
a tobacconist: 22
(i) shall obtain a county license by submitting to the clerk an 23
application for each permanent or temporary place of business located in the same 24
enclosure and operated by the same applicant; and 25
(ii) except as provided in paragraph (2) of this subsection, shall pay 26
to the clerk a fee of $15. 27
(2) A person who has a license issued under Title 16 of this article to act as 28
a cigarette retailer or to act as a special cigarette retailer is not required to pay the license 29
fee. 30
(3) The application shall: 31
SENATE BILL 279 7
(i) be made on the form that the clerk requires; and 1
(ii) contain the information that the Executive Director requires. 2
(4) IN BALTIMORE CITY, IN ADDITION TO THE R EQUIREMENTS 3
UNDER PARAGRAPH (1) OF THIS SUBSECTION, AN APPLICANT FOR AN INITIAL OR 4
RENEWAL COUNTY LICEN SE SHALL PROVIDE TO THE CLERK A LICENSUR E 5
AUTHORIZATION ISSUED UNDER § 16.5–201.1 OF THIS SUBTITLE. 6
16.5–213. 7
(a) (1) (I) [The] EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS 8
SECTION, THE Executive Director shall pay into the General Fund of the State all license 9
fees collected under this title. 10
[(2)] (II) All license fees collected by the counties are subject to the 11
distribution provisions of § 17–206 of this article. 12
[(b)] (2) The General Assembly intends that these license fees be used to 13
administer this title. 14
(B) (1) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY SHALL 15
REMIT 50% OF ALL LICENSURE AUT HORIZATION REQUEST F EES COLLECTED IN 16
ACCORDANCE WITH § 16–302.1 OF THIS ARTICLE TO THE COMPTROLLER. 17
(2) THE COMPTROLLER SHALL DIS TRIBUTE THE FEES TO THE 18
FAMILY LEAGUE OF BALTIMORE CITY, INC. IN A MANNER THAT IS: 19
(I) CONSISTENT WITH THE PROCESS ESTABLISHED BY THE 20
MAYOR AND CITY COUNCIL OF BALTIMORE CITY UNDER § 16–302.1 OF THIS 21
ARTICLE; AND 22
(II) PROPORTIONAL TO THE NUMBER OF LICENSEES 23
OPERATING IN EACH LEGISLATIVE DISTRICT. 24
16.7–102. 25
(a) The Executive Director may delegate any power or duty of the Executive 26
Director under this title. 27
(b) (1) IN BALTIMORE CITY, AN A SPECIAL ENFORCEMENT OFFICER OF 28
THE TOBACCO USE PREVENTION AND CESSATION PROGRAM IN THE A BALTIMORE 29
CITY HEALTH DEPARTMENT AGENCY MAY ENFORCE THIS TIT LE, INCLUDING BY 30
ENTERING AND INSPECTING, AT A REASONABLE TIME, THE PREMISES OF A COUNTY 31
LICENSE HOLDER. 32
8 SENATE BILL 279
(2) SUBJECT TO THE HEARIN G PROVISIONS OF § 16.7–208 OF THIS 1
TITLE, THE EXECUTIVE DIRECTOR MAY REPRIMAN D A LICENSEE OR SUSP END OR 2
REVOKE A LICENSE FOR A VIOLATION IDENTIFIED UNDER PARAGRAPH (1) OF THIS 3
SUBSECTION. 4
(C) Any person licensed under Title 16 or Title 16.5 of this article, or an affiliate, 5
as defined under § 16–402(c) of this article, of a person licensed under Title 16 of this article: 6
(1) is authorized to manufacture, distribute, or sell electronic smoking 7
devices pursuant to this title in the same capacity as the person is licensed under Title 16 8
or Title 16.5 of this article; and 9
(2) may not be required to obtain an additional license under this title. 10
16.7–201.1. 11
(A) THIS SECTION APPLIES ONLY IN BALTIMORE CITY. 12
(B) BEFORE A PERSON MAY A PPLY FOR AN INITIAL OR RENEWAL COUNTY 13
LICENSE UNDER THIS T ITLE, THE PERSON SHALL REQ UEST A LICENSURE 14
AUTHORIZATION FROM THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY. 15
(C) IF AN APPLICANT IS DENIED A LICENSURE AUTHORIZATION REQUESTED 16
UNDER THIS SECTION, THE EXECUTIVE DIRECTOR MAY REVIEW THE BASIS FOR THE 17
DENIAL. 18
16.7–202. 19
(b) (1) An applicant for a license to act as an electronic smoking devices 20
retailer or a vape shop vendor: 21
(i) shall obtain a county license by submitting to the clerk an 22
application for each permanent or temporary place of business located in the same 23
enclosure and operated by the same applicant; and 24
(ii) except as provided in paragraph (2) of this subsection, shall pay 25
to the clerk a fee of $300. 26
(2) The application shall: 27
(i) be made on the form that the clerk requires; and 28
(ii) contain the information that the Executive Director requires. 29
SENATE BILL 279 9
(3) (i) From each license fee collected under this subsection, the clerk 1
shall distribute: 2
1. $25 to the Executive Director; and 3
2. $275 to the Maryland Department of Health to be used by 4
the Department or its designee to enforce existing laws prohibiting the sale or distribution 5
of tobacco, tobacco products, or electronic smoking devices, as defined in § 16.7–101 of this 6
title, to individuals under the age of 21 years. 7
(ii) Funds distributed under this subsection may not be used to 8
supplant existing funding for the enforcement of laws banning the sale or distribution of 9
tobacco, tobacco products, or electronic smoking devices to individuals under the age of 21 10
years. 11
(4) IN BALTIMORE CITY, IN ADDITION TO THE R EQUIREMENTS 12
UNDER PARAGRAPH (1) OF THIS SUBSECTION , AN APPLICANT FOR AN INITIAL OR 13
RENEWAL COUNTY LICEN SE SHALL PROVIDE TO THE CLERK A LICENSUR E 14
AUTHORIZATION ISSUED UNDER § 16.7–201.1 OF THIS SUBTITLE. 15
16.7–212. 16
(a) (1) (I) [The] EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS 17
SECTION, THE Executive Director shall pay into the General Fund of the State all license 18
fees collected under this title. 19
[(2)] (II) All license fees collected by the counties under this title are 20
subject to the distribution provisions of § 17–205 of this article. 21
[(b)] (2) The General Assembly intends that these license fees be used to 22
administer this title. 23
(B) (1) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY SHALL 24
REMIT 50% OF ALL LICENSURE AUTHORIZATION FEES COLLECTED IN ACCORDANCE 25
WITH § 16–302.1 OF THIS ARTICLE TO THE COMPTROLLER. 26
(2) THE COMPTROLLER SHALL DIS TRIBUTE THE FEES TO THE 27
FAMILY LEAGUE OF BALTIMORE CITY, INC. IN A MANNER THAT IS: 28
(I) CONSISTENT WITH THE PROCESS ESTABLISHED BY THE 29
MAYOR AND CITY COUNCIL OF BALTIMORE CITY UNDER § 16–302.1 OF THIS 30
ARTICLE; AND 31
(II) PROPORTIONAL TO THE NUMBER OF LICENSEES 32
OPERATING IN EACH LEGISLATIVE DISTRICT. 33
10 SENATE BILL 279
SECTION 2. AND BE IT FURTHER ENACTED, That the Mayor and City Counc il 1
of Baltimore City may not issue a licensure authorization under § 16 –302.1, § 16.5–201.1, 2
or § 16.7–201.1 of the Business Regulation Article, as enacted by Section 1 of this Act, for 3
an initial licensure applicant between October 1, 2026, and October 1, 2027, both inclusive. 4
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 5
October 1, 2026. 6
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.