Ch. 2                                    LAWS OF MARYLAND

"ENGAGE IN THE BUSINESS OF A CIGARETTE SUBWHOLESALER" MEANS
TO:

(1)  BUY CIGARETTES FROM ANOTHER SUBWHOLESALER OR A
WHOLESALER; AND

(2)  (I) POSSESS CIGARETTES FOR SALE TO ANOTHER
SUBWHOLESALER, A RETAILER, OR A VENDING MACHINE OPERATOR FOR
RESALE;

(II)  SELL CIGARETTES TO ANOTHER SUBWHOLESALER,
A RETAILER, OR VENDING MACHINE OPERATOR FOR RESALE; OR

(III)  SERVICE ANOTHER SUBWHOLESALER, RETAILER,
OR VENDING MACHINE OPERATOR BY MAINTAINING:

1.  AN ESTABLISHED PLACE OF BUSINESS,
INCLUDING WAREHOUSE FACILITIES, FOR THE SALE OF CIGARETTES;

2.  ADEQUATE INVENTORY;

3.  PROPER ACCOUNTING RECORDS; AND

4.  NECESSARY EQUIPMENT AND VEHICLES FOR
THE STORAGE AND DISTRIBUTION OF CIGARETTES.

REVISOR'S NOTE: This subsection is new language that in
part is added to reflect the business activities of a
person licensed as a wholesaler in present CL §
11-501(1) and (m)(2) and in part is new language
derived without substantive change from former Art.
81, § 464(c).

This subsection is revised to define the term "engage
in the business of a cigarette subwholesaler" to
clarify the business activities of a person licensed
as a subwholesaler and to distinguish the activities
of a "subwholesaler" from those of a "wholesaler". As
to "wholesaler", see the Revisor's Note to this
section.

In paragraph (2)(ii) of this subsection, the former
reference to a subwholesaler as being a person "who
does not qualify as a distributor" is deleted as
surplusage.

Defined terms: "Cigarette" § 607
"Licensed wholesaler" § 610
"Retailer" § 610 "Sell" § 607
"Subwholesaler" § 610
"Unstamped cigarettes" § 610

(D) ENGAGE IN THE BUSINESS OF A CIGARETTE VENDING MACHINE
OPERATOR.

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