LAWS OF MARYLAND

(4)  TO AFFIX TOBACCO TAX STAMPS TO UNSTAMPED
CIGARETTES IN THE MANNER REQUIRED UNDER § 12-304 OF THE TAX -
GENERAL ARTICLE;

(5)   TO TRANSPORT UNSTAMPED CIGARETTES IN THE STATE;
AND

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

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

(III)   IF THE COMPTROLLER SPECIFICALLY
AUTHORIZES, TO SELL UNSTAMPED CIGARETTES TO ANOTHER LICENSED
WHOLESALER; OR

(IV)  TO SERVICE ANOTHER WHOLESALER, RETAILER,
SUBWHOLESALER, 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: Items (1) through (4) and (6) of this
subsection are new language that in part repeats the
provisions of present CL § 11-501(1) and (m)(l) and
(2), which, by cross-reference in former Art. 56, §
66, applied to the business activities of a wholesaler
in this title, and in part is derived without
substantive change from the references to the business
activities of a distributor in former Art. 81, §
464(b) and (c), the first sentence of § 446, the first
sentence of § 451, and the references to the business
activities of an out-of-state vendor in § 447.

Item (5) of this subsection is new language added to
state expressly that which only was implied in the
former law -- i.e., that a cigarette wholesaler may
transport unstamped cigarettes.

This subsection is revised to define "engage in
business of a cigarette wholesaler" to clarify the
scope of business activities of a wholesaler. It is
also revised to combine general wholesale activities
with cigarette purchasing and stamping activities to
clarify the scope of a cigarette wholesaler's business

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Ch. 2