2024 ATCC Commision Meetings
- Meeting Agenda
- Minutes
ATCC Public Meeting #45, September 2024 at 3:00pm
This transcript was computer generated and might contain errors.
Alan Silverstein: It’s three o’clock. We do not have a quorum but we’re going to start the meeting and if we get enough commissioners on we can go back and do the roll call and the approval of the minutes of August 15th. So, Mr. Eckris, you are leading the charge today for the executive director. I’ll let you get started, Mr. Poole welcome.
Robert Poole: Hey, thank you Sorry but I’m late. actually felt just one minute later apologize.
Thomas Akras -ATCC-: But thank you very…
Alan Silverstein: Go ahead, John.
Thomas Akras -ATCC-: Mr. Chair and good afternoon. Everybody just dumping into the Executive Director report wanted to highlight on an email was sent out prior to this meeting that the ATCC had restructured. Its organization recently as of effective as 9/11, 2024 over the last year, we’ve seen a lot of growth in our agency. We started out back in 2021 is an agency with, I think approximately 27 pins, we grew slowly but surely and in the last year, we added an additional approximately some odd positions. So we’re now an agency of about 60 to 65 persons. And in order to ensure that
Thomas Akras -ATCC-: We had an efficient and expeditious communication timely information. We created three divisions, we stalled the field enforcement division, that is our law enforcement division. We have the legal legislative division of, which I’m the director and we have the newly minted regulatory licensing and Administrative Services Division of which Andrew Waters who’s on the call. Now, has been named the director of so we essentially took a lot of the civilian positions outside of the law enforcement silo. And so now licensing and administrative services reports directly to the Executive Director Again this improves communication, this improves the flow of information and it allows the executive director to get that information a timely fashion. Get those decision points in a timely fashion and be able to pull the trigger with those informed decisions quickly. So that was something.
Thomas Akras -ATCC-: That we discussed last week was effective, 9/11 would be an organization chart that we post on our website, subsequent to this meeting. And with that I’ll take any questions and if there are no questions, I’ll move on to our report out for our various divisions.
Thomas Akras -ATCC-: All right, seeing no questions. Some highlights with the Field Enforcement Division for in this. If you recall, we change the way we recorded these statistics. Now we’re looking at full months, so this is September 19th. The information that I’m going to be giving you is for the month of August before we used to do, these kind of month to month the 15th or the 19th. And it was awkward timing. We’re just doing full months now. but this is the full month of August 2024. There were a hundred and thirty. Nine alcoholic beverage, inspections retail locations, 225 Tobacco, and inspections in 15. Cannabis advisories were issued if you recall. these are the pamphlets and the information the advisories in regards to who can and cannot sell cannabis. those were the 15 advisors that were talking about. So that’s all work up from the field.
Thomas Akras -ATCC-: Enforcement Division, reportable incidents. And these are from inspections from 21 reportable incidents and with seizures that occurred. And so I’m going to go over the amount and the number of tax loss. Associated with that amount, there were 54,953 sticks of other tobacco products yielding, a tax loss of 38,000 467.10, There were 600 84 packs of cigarettes yielding, a tax loss of 3,420 239, bottles of distilled, spirits confiscated, 255, containers of beer, into containers of wine. So those were the reportable incidents occurring across the state of Maryland and with this extra personnel that we have not only the cannabis enforcement that we’re doing but also you’re seeing these large upticks in tobacco cases as well. So
00:05:00
Thomas Akras -ATCC-: are really proud of our team going out there. Getting a lot of this work done. There are no questions. I’m going to hand the mic over to our newly minted director, Andrew Waters. So that he could provide a readout regarding the Regulatory Licensing and Administrative Services Division.
ANDREW WATERS -ATCC-: Thanks Tom. So we have two vacancies that we’re hoping to get filled very quickly interviews start next week for our fiscal services, supervisor and their main role is being responsible for analyzing and…
Alan Silverstein: Right.
ANDREW WATERS -ATCC-: preparing our budget and manage the agencies finances and the second being licensing unit supervisor, they of course, run the licensing unit and they both can’t get here soon enough as we enter our October renewal which is by far our biggest period,
ANDREW WATERS -ATCC-: roughly 5,000 permits that essentially a three-man team need to renew these include storage solicitors out of state. Suppliers on top of the 50,000 vehicle identification cards, which are issued to our alcohol transporters that come in and out of the state regularly throughout the year. Within the last month are very small. Team has issued and renewed, 510 licenses and permits. So we are very much in the full swing of our renewal period.
ANDREW WATERS -ATCC-: Compact.
Thomas Akras -ATCC-: Thank you very much and we’ll move over to the Legal and Legislative Division. Report want to bring everybody’s attention To September 12 2024. We were grateful and excited to host, the Senate Finance Committee at our location. We provided them a tour of our location to include our offices and as always to star of the show, really our storage unit where we secure a lot of Properties, kind of showing, members of the Finance Committee. Exactly. You know what we’re doing to support the legal markets that sell these products in the state of Maryland, and really wrap our arms around and address the illicit markets on that deal in alcohol, tobacco and unlicensed. Cannabis, we’re really excited to show the tour, give information.
Thomas Akras -ATCC-: members of the Senate Finance Committee as to the internal work that we’re doing or administrative processes our licensing. So on, and so forth. And actually want to, now take an opportunity and give the Chairman a couple of minutes to talk about his impressions of the Senate Finance Committee visit to our office.
Alan Silverstein: Thank you I had the opportunity to work with Senator Kramer before he sponsored the legislation that created ATC and then ATCC he seemed to be very pleased with the way the agency has evolved coming out of the controller’s office. There were a number of good questions for members of the Senate Finance Committee, many of whom really weren’t
Alan Silverstein: Knowledgeable about all of the working pieces and Jeff did a great job our executive director and outlining our responsibilities. And the things that we do to make sure that the system is being properly carried on from licensing, to inspections to enforcement and I think everybody always enjoys going down and seeing the product that has been seized, didn’t realize What a arduous product placement? It is, I had a chance to be on one of the busts that was made about a year and a half ago, and our agents were very courteous when they went in. But I didn’t realize that they had a
Alan Silverstein: Take a look at every illicit stick, mark them down. And then when we got back to the office, the same process was done again, when it went downstairs into the processing room. So that, we made sure that everything that was collected, was brought in an accounted for, and the fact is, if you’re going to court, you got to make sure you’ve got a chain of custody, and they did a great job doing that. Our office space is outstanding compared to where we had been previously and especially with the number of people that we currently have, and I would encourage anybody who was in the area to make a call and stop in and visit and learn a little bit more about our operations. Thank you.
00:10:00
Thomas Akras -ATCC-: Thank you Mr. And again we thank chair beitel and all the members of the Senate Finance Committee for coming and touring our location. And to echo the Chairman we would welcome. folks from around the state to come in and particularly, stakeholders involved with the work that we do to come in and take a look at our agency and things that we’re doing here. So, appreciate the words, Mr. Chair. I want to pivot to the work group that was held yesterday for Tobacconists. And I’ll get a little bit of background in history. So what we’re talking about Bill 244 was passed this past legislative session, and it did a number of things. It
Thomas Akras -ATCC-: First of all rp Do the Clean Indoor, Air Act, which prohibits smoking indoors, it included incorporated vaping into that. So now that you can’t vape in indoor public places.
Thomas Akras -ATCC-: the year was a military exemption, I think component to that as well. Whereas before, if you’re 18 to 21, if you had shown your military ID you can actually purchase tobacco products that in 2019, the Feds had raised the age to 21. Maryland law caught up last year and codified that restriction in this law as well. And then lastly and relevant to, this conversation was the work group which was created which studied tobacconists specifically tobacconists and tobacconists are licenses. We’re in over 70% of the product that they sell, our other tobacco products. So we’re talking, it’s more specifically about premium, cigars pipe tobacco, things of that nature, where there were tobacconists around the state who had been able to have beverage licenses issue to them, they’re about 13.
Thomas Akras -ATCC-: 14 Of these licensed holders in the state and at the time during the legislative session, there was concern that, first of all, how did these licenses get issued and the legislature thought it would be good to study this particular issue because there were counties I think the Senator Watson out of Prince George’s County had wanted to introduce a bill that would have allowed a cigarette lounge license to take effect. In Prince George’s County that legislation did not make it through the chamber and there was a moratorium put on any new Beverage licenses being issued to Tobacconists.
Thomas Akras -ATCC-: And as a result, there was a request to have a done a work group. Get together to study this particular issue yesterday, was the first meeting of the work group Senator Beidal was present Senator Watson. I was a online delegate parents was president on President Delegate Jackson was present online and there were representatives from Senator Lamb’s office as well. Among, various stakeholders representatives from the other Tobacco Products Association and health stakeholders who all met to discuss this issue. They’re going to be three more meetings. Held The goal is to get a study recommendations published by July 1st 2025. On this issue. I think it’s an important topic. It was a lively discussion and we’re going to be reporting back to the commission in the months to come once we have further meetings, and
Thomas Akras -ATCC-: more information, there’s a really good meeting but just wanted to kind of bring that to the attention of the commission because those are the things that were involved with that I want to turn the mic over to Mike win our communications officer to walk you through our new and improved website as well as our new footprint that we’re starting to the footprint we’re trying to establish in the social media world. So with that Mike you want to take it away.
MICHAEL NGUYEN -ATCC-: Hi, yeah, thanks Tom. And I appreciate the opportunity to talk about the things that we’re doing in communications at ATCC so Can you advance to next slide? Jessica
00:15:00
MICHAEL NGUYEN -ATCC-: So before I talked about the website, let’s just take a step back and for the fiscal year. 24, 25, these four? Items are key messaging goals that I’m looking to do diesel probably change year to year, but since we’re Fairly new and especially our communications department is new. These are the ones that I feel like the most important. So the first one is to clarify the atcc’s role. So when I got here I felt like there’s a lot of confusion of exactly what our agency does and especially coming from the comptrollers and we needed to define Exactly our responsibilities and how we regulate. And
MICHAEL NGUYEN -ATCC-: Are industries. Then next thing that we hear a lot about the three tier system as it’s referred to the alcohol, manufacturing distribution and retail area. So, I wanted to make sure we educate our stakeholders on that and then going back to ifying, our role because there’s confusion, what we do How We Relate to America, Maryland, Comptrollers and Maryland Campus Administration?
MICHAEL NGUYEN -ATCC-: Because we came from the Comptrollers. we want to tell How we separate and what we specifically do. how to controller collects taxes and then how a Maryland, can this administration regulates that industry then overall and this is probably a Central theme in DEFINITELY is advocate for responsible practices, where if it’s from manufacturing distribution and so Next slide.
MICHAEL NGUYEN -ATCC-: So yeah, so here’s our new website and I’ve been very careful to tell people internally. This is a update not exactly a new website because the biggest change is that we switched over to a new website platform and the reason why we needed to switch is because we are a small agency and we need to be able to respond to our stakeholders as quickly as possible. So this new platform, we switch over to WordPress. It’s a widely used platform and there’s a lot of versatility with it. So again, we needed to agility to be able to update our stakeholders. Quickly and specially that we’re doing all this house. we needed to have the tools available to build things that makes it easier for
MICHAEL NGUYEN -ATCC-: users get to what they need. So that guy relates to the next point where we’re improving to navigation and my goal for the front page is, like, When people come to our website, I want them to be able to find what they need as soon as possible. rather than just having a lot of Background information about ATCC because we already have a whole page in the website for that, but if you’re coming here, you need to Give information about alcohol tobacco cannabis. You have that right in front of you as soon as you log on. And then overall this is building the foundation for future growth. So we
MICHAEL NGUYEN -ATCC-: we have a lot of exciting things plan with most recently. We just relaunched our licensed database which we developed completely in-house. And we have similar tools that we’re going to provide to help not only Our stakeholders who visit our website, but help our processes internally behind the scenes as well. Next slide.
MICHAEL NGUYEN -ATCC-: so related to getting All of our stakeholders to understand what we do. We launched our newsletter. So we had our first issue last quarter so we just have our second issue this past summer just came out in the end of August. And our plan is to release a newsletter every quarter. and this issue we have a lot of interesting articles. We’re talking about how we’re working with local agencies, like Baltimore City, Police, to Baltimore Sheriff’s Office and the Boomer Liquor Board. In this specific instance, through focus on underage drinking. efforts to and then, we also
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MICHAEL NGUYEN -ATCC-: a few months ago, we released a pamphlet to explore to explain the cannabis reform to act. And then we’re in this issue, we go a little bit deeper on that and then I also want to have people to get to know what the people. That works at the ATCC. So in this issue, we highlight the trade practices and give them an opportunity to talk about what they do, how they?
MICHAEL NGUYEN -ATCC-: how they are resource to the industry, to make sure the industries are operating, respoly responsibly plus just getting to know the people in the department as well. and finally, in this issue, we also recently launched our legislative manual, but in the newsletter we also Provided if you broke it down a little bit further to explain to new laws that came in effect on July 1st. Next slide.
MICHAEL NGUYEN -ATCC-: And then, literally last week, we launched the multiple social media platforms. and this was a process that we put a lot of thought in. So could have just as easily when I first started almost a year ago, just opened up a whole bunch of social media accounts but we wanted to be thoughtful of what we want to do. So we want to do that because we want it.
MICHAEL NGUYEN -ATCC-: Make sure that we’re not just opening accounts and it’s not doing anything for us and here and some of our goals that we were trying to do with our social media. We want people to really know about what what we do, and what our functions are at, the ATCC help businesses, and help the community, understands the rules regarding the three industries that we work in. Make sure we share clear and accurate information. Yeah, as they come and then most importantly, we want to build trust with the public and we do that by being open and consistent. So that’s why it was important that I not just open all these accounts and not have a consistent plan because we want to make sure that
MICHAEL NGUYEN -ATCC-: Where fulfilling our goals. so next,
MICHAEL NGUYEN -ATCC-: So, That’s basically our new communication products in nutshell, I happy to take questions and as you can see, we have our QR codes, just in case you want to follow us on social media. But if there’s any questions, I’m happy to take them now. If not, I’ll hand it back to Tom.
Thomas Akras -ATCC-: Mike, could you drop if you don’t mind maybe in the chat or maybe have Jessica dropped in the chat, the website links to, maybe the LinkedIn, the Instagram just, if you can as well. I love the QR codes but III sometimes am guilty of being a little bit less tech savvy than others. And so,…
MICHAEL NGUYEN -ATCC-: Okay.
Thomas Akras -ATCC-: if folks feel more comfortable, clicking on a link, they have that option.
MICHAEL NGUYEN -ATCC-: okay, I just dropped in just in case you’re not subscribed to our newsletter, the first link I put in is to subscribe to our newsletter and then As we wrap up, I’ll put into links to the rest of our social media. Okay.
Thomas Akras -ATCC-: And Mr. Chair just so that, we started with zero followers last week and are we at 99,000 Mike?
MICHAEL NGUYEN -ATCC-: Yeah, he keeps it up adding to extra K on it, but when I told him we gain followers in a matter of days, but that number is actually higher now. So we got about 126 last time I checked
00:25:00
Thomas Akras -ATCC-: Great work. Mike great work.
MICHAEL NGUYEN -ATCC-: All right.
Thomas Akras -ATCC-: And with that if nobody has any questions. I’ll touch on the last piece of our presentation with the Ola audit very quickly. The Ola audit team was here on site from early to mid June to let’s say mid to late August. They’ve made a couple of inquiries in regards to some of our inventory and some other records that they’ve asked for with the last week or so we’ve provided them with that information. So we believe that the end of the audit will be coming soon and we should have some kind of report out within the next week coming weeks. We’re not sure but we’ve fulfilled all of the requests as per the Ola audit and so just looking forward to closing that out shortly I believe with that that covers the agenda today. Mr. Chair I did see Eric Morrissette
Alan Silverstein: I did too.
Thomas Akras -ATCC-: Commissioner jump on to. So we may have a corn with Commissioner Morrissette is present.
Alan Silverstein: So it looks like we have Commissioner Poole the mission of Morrissette and myself which would be a quorum. And so I’m going to ask for an approval of the August 15th, 2024 meeting minutes, I need a motion All right, Commissioner Poole. Second.
Alan Silverstein: I’ll do the second all those in favor, signify by saying I have it so this is an official meeting and those minutes have been recorded and approved. There’s only new business. Than anybody has.
Alan Silverstein: okay, if not Commissioner Poole, you turn on your mic, Thank you. Good to hear you.
Robert Poole: Yes, sir.
Alan Silverstein: I need a motion to adjourn.
Robert Poole: I make a motion to adjourn.
Alan Silverstein: I’ll second the motion, all in favor I, Okay. And I see Commissioner Morrissette waving.
Robert Poole: All right.
Alan Silverstein: So I want to thank everybody for joining us today. I want to thank Mr. Eckris and our staff, for the information. They’ve given us, I think our website is really good and it’s only going to get better. So I wish everybody a great day and we’ll see you next month. Thank you.
Robert Poole: Great, thank you, sir.
James Hock -State Police-: Thank you.
Thomas Akras -ATCC-: Thank you.
Meeting ended after 00:36:57 👋
This editable transcript was computer generated and might contain errors. People can also change the text after it was created.
Public Meeting #42, June 2024 at 3:00pm
This transcript was computer generated and might contain errors.
Alan Silverstein: Okay, it is three o’clock pm. I’m gonna open the meeting of the Alcohol Tobacco and cannabis commission. And first thing we’re going to do is a roll call. So we have commissioner buck. Okay Vice chair.
Alan Silverstein: Barbara wall We have secretary,…
Barbara a: I’m here.
Alan Silverstein: Robert Poole. And myself Alan Silverstein as chairman Nicole a meeting to order. I need a motion for approval of the May 16th 2024 meeting minutes.
Barbara a: some
Elizabeth Buck: second
Robert Poole: I’ll second.
Alan Silverstein: okay, all those in favor signify by saying I post same sign the ice habit,…
Elizabeth Buck: I
Alan Silverstein: Mr. Actress is going to be stepping in for our executive director. And so I’m going to start off with the enforcement activity.
Thomas Akras -ATCC-: Thank you very much, Mr. Chair and good afternoon to all the Commissioners as the chairman said I’m stepping up for Jeff Kelly, but those are shoes. I could never fill. So hopefully I’ll do his shoes some justice. We’ll start with the enforcement activity in between May 16th. Our last meeting and June 19th. Our field operations Bureau conducted 372. Tobacco and cannabis inspections. There were 233 alcohol inspections and 47 cannabis advisories issued and just as a side note with those advisories you recall this was a document that we created. essentially just text back in November to advise individuals about the Cannabis reformat passage and subsequent lawsuit actually now have a one-pager that we just got printed up and it came back to us, either he was
Thomas Akras -ATCC-: Today or Tuesday, which is a nice glossy document. It’s an easy to read one pager. We’re going to be posting that on our website. I’ll make sure I email all the Commissioners that they have a copy of it, but we’re going to be actually giving out that one page which is easy to read has accessible information. There’s actually a QR code on the document that you can scan and get the actual advisory. So we think it’s much more user friendly and just a better way of getting out that information. I’m going to be giving you a time frame and I see here on my document. It’s from February through April 17th. These are twenty there were 24 reportable incidents and I’d say when you hear these numbers.
Thomas Akras -ATCC-: You can really tell the impact of The Hires that we’ve had over the last six months or so and our field operations. Bureau is really getting out there. There were 113,758 sticks of OTP which yields a tax loss of approximately 77,720.98. There were 2,524 packs of cigarettes that were seized yielding a tax laws of 4,525 and 61 containers of distilled spirits to just give you a sense of the breath and in terms of our agent to operate between Oakland and Ocean City. These incidents took place in 10 counties Allegheny and Arundel Baltimore City caliber County Dorchester County Frederick County Harford County George’s County Washington County will comical County. So we are everywhere in the state of Maryland doing this en.
Thomas Akras -ATCC-: Work so just very excited about the work that we’re doing unless anybody has any questions. I’m going to go on to our next subject, which is HR and Staffing.
Alan Silverstein: Please let’s note that commissioner. Morrissette has joined us.
00:05:00
Thomas Akras -ATCC-: For the record. Thank you, Mr. Chair, hrn Staffing. We do have some open positions within our agency. The first is the regulatory research section manager. This position was previously occupied by Andrew Waters when he became the assistant director this position opened up we are currently now advertising for the position. The application period has closed the applications are being reviewed and we’re going to be conducting phone interviews and in person interviews in the next couple of weeks the idea being we are looking to hire in July, so we’re moving pretty quickly.
Thomas Akras -ATCC-: There were two licensing specialist positions that opened up and the application process for these positions closed maybe about two to three weeks ago even today agents are finishing up the first round of phone interviews. There will be in-person interviews in the coming week or so. Again, we’re looking to hire this position in July of 2024. So really excited we’re trying to move quickly, we here at the atcc really want to get quality employees to come on board as soon as possible really don’t like having open vacancies, and we’ve been lucky enough to
Thomas Akras -ATCC-: Over the last year to really fill our vacancies. We’re almost down to zero at the beginning of this year. So we really want to get to that zero number moving forward. we do have a presentation I’m going to give a quick recap how to slide show of some of the laws that pass during this General Assembly session that are applicable to the Alcohol Tobacco Canada’s commission and we can cue that up where I’ve got Jessica who will queue up the PowerPoint anybody have any questions about those matters before I move. to the 2024 General Assembly recap
Thomas Akras -ATCC-: Okay, great.
Jessica Honeycutt -ATCC-: I’m coming. Sorry.
Thomas Akras -ATCC-: No problem at all, Jessica. Thank you.
Jessica Honeycutt -ATCC-: Can you see it now? I just had to turn on my camera.
Thomas Akras -ATCC-: Yep, no problem are very can. See that just quickly move through these PowerPoint slides want to go to the first slide. It was very busy session. We’re only going to cover the Statewide legislation that was passed this year that affects Alcohol Tobacco. We’ll do some touches on cannabis as always the alcohol bills. There are a lot of alcohol bills that are introduced every year. This year was no different. They’re about 50 to 60 alcoholic beverage bills that we’re introduced but we’re only going to talk about four or five because these are the Statewide bills that are really within our Authority and control the first but this was a Statewide House Bill 808. They’re already heard of doordash or instacart or things of that nature. This was a bill that authorizes local jurisdictions, not the atcc but local jurisdictions to pass rules and regulations that will allow third party contract.
Thomas Akras -ATCC-: Think doordash think instacart think GrubHub to contract with retailers. Within that jurisdiction to conduct deliveries on behalf of retailers.
Thomas Akras -ATCC-: Only within that jurisdiction so if I’m Joe’s liquor store in Baltimore County, I can contract with doordash and they could only deliver in Baltimore County. this is only allowed if the county opts in to allowing for local delivery. This doesn’t mandate counties to have local delivery. They have to opt in by passing rules and regulations which will allow for Direct Delivery. And as a part of the Direct Delivery for these third-party contractors, there’s going to be certain age verification that they need to do have to, be alcohol awareness train and their escalating penalties that range from fines to three to 6,000 to suspensions and revocations. But remember this is all overseen by the local jurisdiction the local liquor boards. This is not something that’s overseen by the atcc.
Thomas Akras -ATCC-: There are no questions. I’m going to move on to the next slide.
Thomas Akras -ATCC-: Thank this bill is actually very much in our wheelhouse. This is Senate Bill 1041. This is direct consumer delivery from Maryland manufacturers, and I’ll just kind of do a little bit of time traveling if you recall in 2020 during the pandemic then Governor Hogan issue an executive order which allowed Maryland manufacturers to Conduct consumer delivery and direct consumer shipping. This is when all of the wineries breweries and distilleries were closed for premise consumption. And in order to ensure that these businesses, had an economic Lifeline the governor signing executive order allowing manufacturers to ship and deliver.
00:10:00
Thomas Akras -ATCC-: In the subsequent legislative years 2021 2022 2023 there was temporary legislation that was passed to allow Marilyn manufacturers to continue shipping and doing delivery to consumers in the state of Maryland this past legislative session the legislature took up 1041 because the Sunset date for Marilyn manufacturers to ship and deliver is going to be June 30th 2024 coming up in 10 days. And so the legislature considered a bill That originally would have allowed direct shipping and direct consumer delivery. That was not the bill that did passed only allows for Marilyn manufacturers to conduct to Consumer delivery.
Thomas Akras -ATCC-: IE that cannot use a common carrier they can’t use FedEx they can’t use DHL they can’t use any of those common carriers to provide electric delivery services to customers now the industries that are greatly impacted by our breweries and distilleries their wineries have the ability to provide direct consumer shipping and so they can continue to ship but this bill allows for wineries breweries and distilleries to do direct to Consumer delivery, which means an employee of the manufacturer is going to be taking the product and delivering it to the consumer. There’s going to be certain checklists that they need to follow to ensure that the person purchasing is The purchaser is indeed 21 years or older.
Thomas Akras -ATCC-: There are limits on the amount of product that can be sold to an address throughout the calendar year and we’re going to be pushing out and advisory as well as the applications and all of the associated documents that you’re going to need to fill out a review tomorrow. We’ve been in contact with the industry and have informed them of this we’re going to be visiting industry locations to kind of talk to stakeholders within the winery industry and Brewery industry kind of give them more information about this so there will be a marketing campaign and Outreach campaign to ensure that individuals do know what’s coming. We’re gonna work diligently with those Marilyn manufacturers to ensure that come to life first. They’re really is a smooth transition for direct consumer delivery. next slide, please.
Elizabeth Buck: Question for you is a consumer. And not say a liquor store or is it someone at home?
Thomas Akras -ATCC-: No consumer cannot be another licensed location has to be a person, 21 years and older. That’s a very good question commissioner Buck because what you don’t want is fourth tier that’s being created. That’s a Bob good question. Was that the information that you needed or do you have follow-up? I see commissioner.
Robert Poole: Hey, look what when you say employee, can you please define what you mean by employee? So if I have a company and I want to and I hire a contractor solely for the purpose of delivering or can they be a regular employee and other function?
Thomas Akras -ATCC-: They have to be an employee. The idea was that we’re not talking about third-party contractors. We’re not opening up the door or a doordash to be associated with wineries breweries and distilleries. You have to be employee of the company. You have to be at least 18 years old and you have to undergo a certain alcohol awareness training and on top of that there’s a documentary proof that you need to have to show the individual that you’re delivering. The alcoholic beverage Is indeed the percher is indeed 21 years and older and you’ve seen that identification.
Thomas Akras -ATCC-: A problem two other bills in regards to our Marilyn manufacturers. The first is House Bill 1083 Senate bill one zero zero one this essentially wineries the definition and wineries were
Thomas Akras -ATCC-: back on one second wineries were defined as these manufacturing units which used Maryland grapes or fruit to produce product and there was a conversation in the legislature that stated that actually this definition was a little bit limiting because people wanted to produce onion wine, they want to produce dandelion one. They want to produce a lot of other wines that weren’t necessarily considered fruit or grapes. And so the conversation came. what terms now should we use to allow for these other kinds of products which the market demands to come into our three tier system particularly through our manufacturers. And so that’s where the term Maryland grown Agricultural Product came from. So now that term encompasses folks that do an onion wine. I want to say don’t quote me, but I want to say Lisa more does and onion line that they do is, seasonal line and that’s a product. that is really in Dem.
00:15:00
Thomas Akras -ATCC-: and so that’s kind of the idea behind changing the term to Maryland grown agricultural products. And there was another component of this bill which allows for Maryland manufacturers currently can buy bulk wine from another Winery. Allen finished product would be in a bottle. It would then come to the manufacturer. This is wine that is made in bulk and another licensed facility in the state of Maryland and then it’s blended with the manufacturers own product that he or she makes so the current threshold is 25% this rage did to 75% so technical changes, but also technical changes that open it up the Maryland products that open up a wider range of Maryland products to Consumers across the state of Maryland.
Thomas Akras -ATCC-: And then lastly there was the winery Vineyard Economic Development grant program. This is a program that was initiated a year or two ago through Department of Commerce where there are certain expenditures that particularly wineries can be reimbursed for if they do Capital expenditures to build out their manufacturing facilities. This is a technical change to allow for kind of Greater time period for reimbursement. Next slide please.
Thomas Akras -ATCC-: Before I jump in tobacco to anybody of any questions about those two other bills. seeing There were some pretty big tobacco bills that passed this year. I’ll actually start at the bottom and work my way up. The first is the public health services and protections act household 42 Senate bill to 20 this bill eliminated. The military exemption that allowed Maryland retailers to sell tobacco products to somebody who’s between the age of 18 and 21, but who had a valid military ID in Pardon me in 2019 the federal government changed the law there used to be a military exem Via the FDA that changed in 2019. So this bill essentially brings Maryland law in line with Federal requirements.
Thomas Akras -ATCC-: The Clean Indoor Air Act House Bill 238 Senate Bill 244 this bill if we’re aware of the Clean Indoor Air Act, you cannot use smoke inside a public indoor area. I think restaurants bars. things of that nature this essentially adds vaping to that, list of prohibited use of tobacco products within an indoor public space and this bill also did something else this bill put a moratorium on alcoholic beverage licenses to tobacconists currently there. Are you tobacconists around the state of Maryland who have alcoholic beverage licenses generally speaking to back anist is a entity
Thomas Akras -ATCC-: business that we’re in 70% or more of their products are tobacco products think of cigar shop that you would go to and some of these license these have been able to obtain alcoholic beverage licenses because there’s a little bit of a loophole in the law, which says that if you can
Thomas Akras -ATCC-: You can have licenses if there’s an example if the use of the alcoholic beverage essentially is less than 30% of,…
Alan Silverstein: answer
Thomas Akras -ATCC-: your main product that you’re selling you could get a liquor license. So what this bill did and I’m being very general and I diving into the specific technical terms. But what this bill is it put a Prohibition on that and there’s going to be a study that’s going to be done over the next year or so which discusses the tobacconist ic Peace. So there’s a two year prohibition on any new to backness getting new alcoholic beverage licenses are in any tobacconists getting new alcoholic beverage licenses.
Thomas Akras -ATCC-: The last one we’ll talk about is the tobacco retail modernization Act of 2024. This bill does a number of things but bigger things it increases the fees for the annual Tobacco products license, for example, if you were going to get a local tobacco products license would be 25 dollars normally that you go to your Clerk. You get the license now. It’s $300. they’re going to be required inspections that are to be done by the health departments for all of these license locations Health departments are at least going to have to inspect the location once if there’s another violation or by inspect, it could be health department inspection. It could be a attempted underage by inspection by
00:20:00
Thomas Akras -ATCC-: a debt or something of that nature and this actually increases the penalties for individuals or for businesses that sell tobacco products to minors The District Court Canal suspend and revoke and when these cases are taken to court a lot of local jurisdictions will issue citations and the health department code local police departments will issue citations on the criminal code. So when these citations make their way to District Court has more leeway and actually sanctioning the license holder and the license itself that is very two other things with these bills. Tobacco products now have to be behind the counter essentially they can’t be behind the person selling the product. They can’t necessarily be out in front of the product. Now there’s an exception for tobacconists and folks
Thomas Akras -ATCC-: Other tobacco products you can’t go into us a cigar shop per se and all the cigars are going to be behind the retail that’s not what was contemplated by this. This was more of convenience stores think of other stores where you don’t want, underage individuals having access to those tobacco products.
Thomas Akras -ATCC-: And then lastly this requires a face transaction to ensure that state identifications are checked before sales. There’s a little bit of a loophole and some jurisdictions that there were certain kiosks. For example. I’m sure if you’ve gone to Royal Farms or if you’ve gone to other places people are moving to a key or McDonald’s even people are moving to the kiosk format. you’ll go to the kiosk will actually order the things that you were gonna order or buy things are gonna work and you can pay at the kiosity Lee. This will require face transaction, no matter what the circumstances is, if we’re dealing with the tobacco products. So retailers gonna have to come out they’re gonna have to say, Mr. Acuras and see your ID verified that you’re at your 21 years old you’re joining on your old now, you can purchase the product. So this closes and addresses any kind of issue that we’re seeing there. next one
Thomas Akras -ATCC-: It just a couple of things about cannabis and these are really light touches because I really want to concentrate on what they do with the atccc, when it comes to cannabis. we’ve got the Cannabis reflect.
Thomas Akras -ATCC-: And this applies to alterations. This is House Bill 253. What hospital 253 does is it at least as applied to the atccc? It reduces the number of Commissioners from seven to five if you recall of the commission was expanded because at the time when the bill was written it was contemplated that the atccc in the MCA would be together under one house and the atcc commission. We do a lot of reporting and regards to cannabis. It’d be a role in The Advisory Council in relation to cannabis given the fact that our agencies are our separate and independent from each other the legislature contemplated the reason for the expansion and actually brought that back down because right now the Maryland cannabis Administration that oversees The Advisory Council, it really does the studies related to Canada. So that part of us down there’s another High Point.
Thomas Akras -ATCC-: In household 253 which defines a cannabis nursery and we saw a little bit of gray area. Here we saw.
Thomas Akras -ATCC-: A number of locations open up and they were selling seeds and they were selling plants but the plants had net yet matured. So there was a concern as to whether or not these were hemp products whether these were cannabis products this clarifies that in the law will go down to House Bill 272 and there were other things that House Bill 253 did last and I almost forgot this I was still 253 allows of the atcc to actually charge folks who are selling intoxicating THC products via citation and not a statement of criminal charges. So think about going down in the court commissioner filling out statement of charges, to move forward with these misdemeanor cases now, we can actually issue a citation. So those as they affect the atcc there were other changes in House Bill 253, but I think those are more in the MCA world
00:25:00
Thomas Akras -ATCC-: Want to just concentrate on the atcc just briefly hostile 272 was another bill that passed IT addresses just generally speaking these straw owners. And so there’s more review that the MCA can do to ensure that applicants for these NCAA licenses are the actual applicants and not to straw owners lastly. There were some restrictions on Licensing locations for cannabis licenses. And again, this is overseen by the Maryland cannabis Administration certain restrictions at anyone that associated with the alcoholic beverage industry particularly. The retail industry is aware. There are existing restrictions on new package good stores that are going to be located within a place of worship or School. You see these, throughout the alcoholic beverage article and I think
Thomas Akras -ATCC-: Of those bills and that is it for believe that that’s the last slide,…
Thomas Akras -ATCC-: The idea behind this legislation was to align those similar restrictions that you see with alcoholic beverage’s marry up with cannabis. isn’t it Jessica? That’s the last slide for the Maryland general assembly recap. We can close out the slideshow if you have any questions or concern So we see a little bit of that here and these are a good examples. So you see the prohibition in regards to a licensed dispensary and playgrounds or recreation centers Library public parks. You also see a protest of renewal. That’s that third bullet point for those folks who are familiar with the retail industry protest of renewals when 10 or about any of the slides, please feel free. If not, we can move on to new business and I can inform the commission of some other things. Mr. Chair…
Thomas Akras -ATCC-:
Thomas Akras -ATCC-:
Thomas Akras -ATCC-:
Alan Silverstein: We’re ready to go to new business.
Thomas Akras -ATCC-: Thank you, First thing we want to talk about Fells Point enforcement.
Thomas Akras -ATCC-: more residents within a certain area of the location file with the local liquor board a complaint essentially saying this place is acting like a nuisance can happen during renewal and…
Thomas Akras -ATCC-: We have been active and engaged in regards to supporting the Baltimore City police department and…
Thomas Akras -ATCC-: at that time if the complaint is properly filed the local board or…
Thomas Akras -ATCC-: Baltimore city Liquor Board in terms of having our agents positioned in Fell’s point to really hone in now we are …
Thomas Akras -ATCC-: commission will hear the case and determine whether or not the alcohol beverage license should be renewed in this case. It’s something very similar.
Thomas Akras -ATCC-: since everybody in the commission knows we have limited jurisdiction when it comes to alcoholic beverage’s real really focusing and…
Thomas Akras -ATCC-: 10 signatories making a complaint but this complaint will be heard by the Maryland cannabis Administration not a board or…
Thomas Akras -ATCC-: honing on the sales of alcoholic beverage’s that are happening out in the streets.
Thomas Akras -ATCC-: commission but MCA and there’s some distance requirements there too. So I wanted to just give a big broad overview.
Thomas Akras -ATCC-: Essentially. We see folks rulers that are walking around we see folks, selling alcoholic beverages out of their cars what we’re issuing our presentation or Traders licenses and our sales and use tax which is what we can do and that allows us to seize that product right we want to do is
Thomas Akras -ATCC-: Address the issue which is facilitating access of these alcoholic beverages to underage persons. And so that is our role with the Baltimore City police department and I believe last week was the week before we issued a citation and recover 27 containers what you’re seeing is these baggies kind of like think pouches where folks will have these mixed drinks made they’ll bring them in couches with a punch straw and a folks will sell them out of pools. What we’re doing is working with Baltimore City Police Department working with licenses. Info’s Point who may see individuals that are doing this get information from Instagram get information where that folks that are pretty conspicuous about what it is that they’re doing and we’re really honing in our investigators on those folks and really making sure that in our
00:30:00
Thomas Akras -ATCC-: Pain, we’re trying to support the Baltimore City police department and the local liquor board in the best way that we can to ensure limitation of these alcoholic beverages to underage individuals but I’ll say it, both from me being a former executive secretary of the liquor board Baltimore city and in my current position, it’s not the licensees that are out there selling, these alcoholic beverage’s to minors at the bars in the restaurants. what we’re seeing you individuals that are coming in from outside of Fell’s Point bringing these pre-manufactured made products into Fell’s point. So we’re here to support, the public safety. We’re here to support the licensed. In there if there are concerns that you’re seeing please contact us. we want to be. Of the solution and that’s the way we view the atcc.
Thomas Akras -ATCC-: any questions
Thomas Akras -ATCC-: All We will it’s a little Bittersweet,…
Alan Silverstein: No.
Thomas Akras -ATCC-: what I want to say, but I will say what I was going to say and then I’ll pass it to the chair.
Thomas Akras -ATCC-: This is our last meeting with Barbara wall as a commissioner wall has been with the commission since the very beginning in January of 2021 during his time.
Thomas Akras -ATCC-: Establishments that are doing the right thing and so that is our role and…
Thomas Akras -ATCC-: She was nominated commercial wall.
Thomas Akras -ATCC-: we have a schedule throughout the summer.
Thomas Akras -ATCC-: As of Vice chairs retained this position out her commission.
Thomas Akras -ATCC-: We’re going to be helping and assisting supporting Baltimore City.
Thomas Akras -ATCC-: We at the atcc from the agency perspective are thankful and…
Thomas Akras -ATCC-: We have a schedule all the way up until the end of July if needs the cold Baltimore city that we will look at the facts on the ground as they are and…
Thomas Akras -ATCC-: appreciative for her expertise and everything. She brought to the table in terms of the conversation regarding alcohol.
Thomas Akras -ATCC-: making sure we need to extend that deployment into August and…
Thomas Akras -ATCC-: Tobacco products regulation. So we’re thankful for her contributions and…
Thomas Akras -ATCC-: September we meet with Baltimore City.
Thomas Akras -ATCC-: wish her in her new Endeavors,…
Thomas Akras -ATCC-: I’d say every two weeks members of our field operations Bureau Baltimore City to discuss kind of a plan of action and…
Thomas Akras -ATCC-: Mr. Chair.
Alan Silverstein: I just want to Echo what you’ve said, it’s been a pleasure to work with you and have you as a member of the commission as Vice chair.
Thomas Akras -ATCC-: how we can best Baltimore city.
Alan Silverstein: We’re gonna miss you and…
Thomas Akras -ATCC-: And not only we do this I say this at the outset knowledge would do this for Baltimore City.
Alan Silverstein: we wish you best of luck.
Barbara a: Thank you so much. It’s been a joy to work with all of…
Thomas Akras -ATCC-: We do this in any jurisdiction. We are very familiar working Prince George’s County very familiar with work when Montgomery County very familiar with working with counties from Oakland Ocean City in terms of doing this enforcement.
Barbara a: And I really enjoyed being here and it’s amazing that it’s been four years now. I can’t believe that but I appreciate all that we’ve done together and I’ll be checking in occasionally to…
Thomas Akras -ATCC-: So, if for folks…
Barbara a: how it goes after I’m going.
Thomas Akras -ATCC-: who are on the call if there are ISS that
Alan Silverstein: Thank you. Any other commission member of any comments?
Elizabeth Buck: I think you’ve been wonderful and…
Eric Morrissette: you guys
Elizabeth Buck: a blessing for us and I’m really grateful and I also want to know how did you get out of it when I still got two years to go?
Barbara a: politics
Eric Morrissette: Know I just want to can you guys hear me? I’m not sure if my sound is working…
Alan Silverstein: Yes again, Eric.
Eric Morrissette: but I might like my airport gate right now and I didn’t want the moment to pass it to say how much I’m gonna miss you Barbara and appreciate your thoughtful missing collaboration and all you brought to say that he said and so Thank you and we’ll still stay in touch, but I’ll miss you here.
Barbara a: Thank you so much.
Robert Poole: I’d like to Second Eric’s comment.
Barbara a: I appreciate it.
Alan Silverstein: We have a new member that will be joining us next month and…
Thomas Akras -ATCC-: that’s
Alan Silverstein: a hurricane that cont contacted me today. We’ve had a brief conversation. We’re going to have another conversation this week and look forward to Come on board. Anybody else have any other business? If not, I take a motion for adjournment.
Elizabeth Buck: so moved
Robert Poole: second
Alan Silverstein: The second. All right, all those in favor AI I pose same sign. you next month on July 18th.
00:35:00
Elizabeth Buck: And bye.
James E. Hock Jr -State Police-: You next month everyone.
Alan Silverstein: books, July 18,… excuse me Take care.
- Meeting Agenda
- Minutes
Public Meeting #40, April 2024 at 3:00pm
This transcript was computer generated and might contain errors.
Alan Silverstein: All right commission members, please announce that you’re here with us today. This is the April 18th. 2024, Maryland Alcohol Tobacco and cannabis commission meeting. Commissioner Silverstein is here.
Robert Poole: Robert Poole’s here
Alan Silverstein: We have more set. commissioner buck
Alan Silverstein: commissioner wall
Jeffrey Kelly -ATCC-: just Chair it just to let you know we did have prior commitments from Commissioners buck and…
Alan Silverstein: if not Go ahead.
Jeffrey Kelly -ATCC-: wall just tried calling Kershaw hall went right to voicemail. We did not ever hear back from commissioner Morissette.
Alan Silverstein: okay, we’re going to begin the meeting and I wouldn’t ask for the executive directors report.
Jeffrey Kelly -ATCC-: So it’s our second month now without a quorum. So this will be an unofficial report and we know minutes made of this we’ll just combine it but what we did this month was because we didn’t have a quorum last month is we combined the numbers from our last actual meeting which was on February 15th. the numbers are pretty big but they’re not big because it’s two months worth. It’s big because we have a full staff of Agents now and they’re doing a lot of work. So for the last two months now they did 722 tobacco and 7 430 alcohol inspections and all the Cannabis inspections. They found 67 locations that had some type of product on scene that probably wouldn’t be authorized but for the injunction that we’re under right now. and then they found that in 67 different locations.
Jeffrey Kelly -ATCC-: And this is what’s kind of Staggering the volume of seizures and in the values the tax losses. From other tobacco products the seizure was 307,300 to individual Stakes of other. Tobacco products worth almost 215,000 of tax loss. It’s just under 1600 packs of cigarettes yielding a tax loss of over 12,000 or 58 bottles of spirits 48 cans of beer and these took place in 15 of our 25 jurisdictions 24 counties and then Baltimore City Allegheny and Arundel Baltimore Baltimore County Caroline Charles Dorchester Frederick Harford Montgomery Prince George’s Summit, Washington and blister County.
Jeffrey Kelly -ATCC-: Jumping over to human resources on our staffing issue. We just completed at Friday our one vacancy, which was for our assistant director rather in charge of the regulatory administrative Services Bureau. we’ve winners this down from a large amount of people to the top. 18 and then from the 18 window down to 10 and just completed the last 10 so I expect By weeks after sooner. We will have made a selection from those final 10 candidates. So that will bring us to full Staffing at that moment.
Jeffrey Kelly -ATCC-: really the general assembly session since we last it ended last Monday. And from our perspective there were two bills. We were interested in one of them was our budget Bill and as we asked for it passed unscathed which is terrific. So not only gives us the money to operate for another year as we would but they added extra money in that we’d asked to make considerable technology improvements. So give us an extra 1.1 million dollars for these improvements which is huge for us. And what most of that money is going to be spent on is building out our licensing and permitting platform which we expect it to be able to
Jeffrey Kelly -ATCC-: Two things one is going to allow the applicant to go online through a portal and create an account and to all of their business with us from that portal and secondly be able to receive documentation back through all of it. So they’re going to enter in the information in the portal. They’re going to be able to make payment in the portal. Our team is going to make sure all the eyes are dotted the t’s are crossed and then once so, we’ll be able to issue The permits or licenses back to them and if all this works as well as we certainly hope it does we may next year to see about look for legislation that might allow us to issue electronic copies of licenses rather than hard copies, which will save us a ton in mailing and quite frankly. It’s how most people want to do business now, they don’t want to get the mailings. So that was big for us having our budget remain intact and it was the beefed up a little bit so that we could really have these advances and Technology.
00:10:00
Jeffrey Kelly -ATCC-: The second bill that passed is this cannabis build this year that was really to correct the bill from last year and to make certain modifications and it was a big Bill but there were two areas that we were particularly interested in. One of them is one that’ll help us operationally currently when our agents find Cannabis violations are only recourse for placing charges is to get a funded application for statement of charges have a court commissioner issue the charge a summons or a warrant or whatever the appropriate. What we asked for because the three charges that we can charge for specifically are misdemeanors. We asked for the ability to charge one civil side on criminal citation rather as opposed to having to get a summons and the general somebody has approved that both Chambers did and it’s sitting on the governor’s desk be fully expected to sign that by April 25th.
Jeffrey Kelly -ATCC-: Which if he does even better is it reduces our number of commission members from Seven back to five as you may recall when cannabis became legalized and they fought cannabis the whole Administration was going to be within our commission they added two new positions to account for that cannabis element. So our commission when it didn’t happen, we ended up with these two positions that understandably were never filled. But it left us with a new Quorum number. We had to make a four which is that we suffered last week and our last month rather and to some extent again this month. This should be our last month of that problem. as I expect the governor signs up Bill on April 25th, our core will be reduced to three we’ll have five members as we have currently. Actual sitting members and our Quorum will be reduced to three. So hopefully this is the last month we have an issue with Quorum moving With that Mr. Chair, I turned the floor back over to you. Thank you.
Alan Silverstein: Does anybody have any new business?
Alan Silverstein: if not I know we’re going to get a new member to the commission and look forward to having them join us. And I thank you all for your time and we’ll see you again next month. Thanks.
Jeffrey Kelly -ATCC-: Thank you.
James E. Hock Jr -State Police-: Thank you.
- Meeting Agenda
- Minutes
Public Meeting #39, March 2024 at 3:00pm
This transcript was computer generated and might contain errors.
Alan Silverstein: I’ll tell you what, let’s We’ll start with the executive director’s report. And then when we get a quorum we can cover the approval minutes. Go from there. All right. Mr. Kelly
Jeffrey Kelly -ATCC-: Yes service chair. Thank you very much. we are mentioned before we’re fully staffed on our agents and generally when I report out on some of the work we’ve done reporting out on a couple of hundred inspections, maybe and It doesn’t or so significant incidents. So starting with the enforcement activity, we conducted 277 alcohol inspections last month. 436 tobacco inspections and 436
Jeffrey Kelly -ATCC-: cannabis THC inspections and they’re going to be identical almost always now from now on and I just want to explain that for a moment when we do an alcohol inspection or tobacco inspection. We’re target-driven because we know those places possess licenses, we have a list of those licenses and we go and visit them the idea behind the Cannabis inspections is these are places except for those that are licensed by MCA. They’re not licensed. And so we don’t know where they are. We don’t have it. We know what the target is to find them but we find quite often there are at many of the places that sell tobacco products as well. So when we do it Tobacco inspection, we do the very obvious inspection of the macro products we see and then we do a further inspection just to see if there are cannabis products in those locations most times. They’re not always check anyway, and we record that as an inspection for cannabis, but all of those cannabis inspections we conducted within the last
Jeffrey Kelly -ATCC-: Month in 38 places. We did find the Cannabis products. And in that we are still restricted from what type of enforcement action we could take we still are educating. So at those 38 locations, we left behind the advisory that we published a few months back to let them know what the law is what the temporary injunction is currently and that’s something to change and their obligations to stay in tune with what might be happening. But that’s what we have. So other 436 38 locations had some type of cannabis product and we left the appropriate training documentation behind.
Jeffrey Kelly -ATCC-: I mentioned about the reportable incidents of all those inspections 41 of them wearing this period of time from that one that 731 individual pieces of other tobacco products were seized the tax loss relative to that was 125,000. 125,516.20. We recovered 1,718 packs of unstamped cigarettes yielding attacks loss of 6,442.25 and I’m just going to add into that something we’re starting to see with more regularity is not just the unstamped cigarettes where they’re stem from another state or have no stamp on them, but we’re starting to find some now with regularity where the stamps are Maryland appear to be Maryland, but they are truly counterfeit stamps, which is not something over the years and I’ve been doing this for 21 years not over the years.
Jeffrey Kelly -ATCC-: We didn’t have a lot of fraudulent stamps but recently. They’re starting to come in as fraudulent stamps as well. So it’s just an interesting little side we
Robert Poole: What’s the Maryland statute on that Jeff?
Jeffrey Kelly -ATCC-: It’s the fact that their counterfeit isn’t what we act going. It’s the fact that they’re unstamped cigarettes. And so possession is a possession of 30 or less 30 or fewer cartons is something we can issue by way of citation. But if it’s more than that, it’s a felony charge of ing. without licenses to do such so it varies and it depends on the quantity as well. But where we really kind of get caught is where I guess it hurts is it’s the loss of the product from the store and then the subsequent fine if you’re transporting is $150 a carton the first time and three hundred dollars a carton for any second and subsequent offense and that’s really pretty significant. But here it’s possession maybe sell or try to sell without it’s a relatively minor charge these so they hit really gets to be financially.
Jeffrey Kelly -ATCC-: Anything with our alcohol inspections. We took seven containers of distilled spirits and 48 containers of beer and I like to always go down and give you a sense of just how broadly we are able to take these enforcement actions across the state. So these took place in Baltimore City and Arundel Baltimore Caroline Charles Dorchester Frederick Harford Montgomery Prince George’s Somerset, Talbot, Washington and Worcester County. So again, very broadly across the state that we’re finding these violations. It’s not just in one place. Give you an update on our human resources and Staffing positions. We did fill our policy annals, which was the last position that we had when we became the atcc from additional pins. we filled that position on the 13th of March.
00:10:00
Jeffrey Kelly -ATCC-: And we do have one additional vacancy from an existing employee who retired in December. We conducted the first round of pre-screening interviews by way of telephone. So to narrow the list out a little bit. We just completed that on Tuesday and we’ll be starting the in-person interviews to make our final selection the first week of April. So hopefully by our next meeting we will have a selection made and somebody on board or very close to onboard but Where virtual we have one vacancy, which is really outstanding and we did get some Kudos from the general assembly for having only one vacancy at this point. Legislatively speaking. We had both of our hearings for the senate in the house for our budget. They went extremely well again, the committee’s commented on the enthusiasm and the very positive culture that we maintain here at the atcc they commented on our work to keep vacancies down to work with replacing these positions as quickly as possible and about a week ago the Senate issue their report in passing.
Jeffrey Kelly -ATCC-: The budget from their perspective and they’re the ones who are moving the budget this year. They take turns each year this year. It’s the Senate next year to be the house. And the senate in his comments while they did strike money because there is a deficit this year. They did strike money from many different agencies for a variety of reasons. They took zero from us the recommendations to cut us at all and to fund us fully. And very happy to say that the house hearing I believe was yesterday or today on their budget and same thing while they had some changes to make and some cuts to make Zero from us leaving our budget entirely intact the two budgets are slightly different. So we’ll go to conference to iron out those differences but regarding our element of both buds be our left hole. So really happy to say that is one of the big elements. We certainly hope. It passes through James expect the will now one of the big elements is some Modern organization in our licensing platform our system, it’ll be bringing us into the 21st century, which will be
Jeffrey Kelly -ATCC-: Be terrific and I see commissioner all is coming on board now, Mr. Chairs. Just to make that note.
Alan Silverstein: Okay.
Jeffrey Kelly -ATCC-: It’s 3:10. and the second point that I bring up is one of the handful of lawsuits that are against us currently. we refer to as the Furlong case, it’s a Maryland residence and a Washington State Brewery who are suing us for not allowing them to Direct ship that Washington State Brewers product to consumers in Maryland. during under executive order and then immediately after covid and up till June this June 30th legislatively Maryland manufacturers were given a privilege of being able to sell directly to Consumers that ends June 30th, unless the general assembly does something else with it that ends it’s a sunset. So it ends just by operation of law. This lawsuit is suing me in the governor and all of you. For not issuing the license or allowing us out of State Brewery to ship directly into the state.
Jeffrey Kelly -ATCC-: The Attorney General who’s representing us at the time filed two motions one just to dismiss the case and the second one was to remove the commissioner saying that the Commissioners don’t have the specific licensing Authority and shouldn’t be held liable and I just got word minutes ago that the judge Rule and that element the case is going to still move forward. But on the element of you having to be defendants in this case you have been removed. So that’s good news is The case against each of you has been dismissed.
Jeffrey Kelly -ATCC-: And lastly just a point of our organization as you know, the Maryland Department of Health has an ex-officio position here and have been Dana Moncrief. Mdh. It’s a little Elizabeth Crum who is our representative? I haven’t had the opportunity to meet Elizabeth yet in great detail. But if Elizabeth I saw you were here. If you’d like to come on Cameron introduce yourself, that would be terrific.
Elizabeth Kromm -MDH-: Thank you so much. So, my name is Elizabeth crom. I’m the director of the prevention health promotion Administration within the Maryland Department of Health. And so that’s the areas of cancer and chronic disease which includes tobacco and cannabis and Maternal Child environmental health infectious disease both the epidemiology and outbreak response side as well as the prevention side. grateful to be here and I see Dana’s still on and Dana’s your expert in all things tobacco, and we’ll continue to be so.
Jeffrey Kelly -ATCC-: And as usual Elizabeth, I think we have met before but it’s been virtual. It’s not In person okay and we were looking to have an in-person meeting just to explain that we were looking at but it kind of didn’t work. We’re gonna have that many people so we consulted with the chair and made an executive decision to push that off. We still have these regularly scheduled for the court the third meeting of each quarter and if it works out for us it does it’s fine. If not, that’s okay too. So Mr. Chair with that that finishes my report and turn it back over to you.
00:15:00
Alan Silverstein: Elizabeth welcome. I look forward to hearing from you in the future. you say Vice chair Barbara wall is on.
Jeffrey Kelly -ATCC-: Come on, I thought I saw her name flash up.
Alan Silverstein: I saw Barbara aid…
Jeffrey Kelly -ATCC-: So I believe she …
Alan Silverstein: but not a Barbara Dougie.
Jeffrey Kelly -ATCC-: you know what? Yes. Yeah.
Barbara a: me I’m here.
Alan Silverstein: Okay. We need four members to have a quorum. Is that not correct? at this current time
Jeffrey Kelly -ATCC-: is That is correct. And so in that you
Alan Silverstein: Right because electrician added two more people and the governor’s not appoint anybody. So we’re not going to be able to approve the minutes of February 15th will do that at our next meeting. Okay, is there any new business?
Jeffrey Kelly -ATCC-: Mr. Chair, I’ll just add to that if I might very quickly do about the two extra positions. there is a corrective bill in this year for cannabis to just do a whole bunch of different things. Our two parts of it are one to let us write citations tickets for violations since they are misdemeanors. So that’s part of that corrective bill in the second part is to bring us back to five appointed members from which we will have our quarmed far those are active and are moving well and I expect that so this may be a problem that fixes itself wants to build passes and becomes long
Alan Silverstein: Okay, anybody else have anything that? If not, I’m going to join the meeting and we’ll see you next month. Thank you.
Jeffrey Kelly -ATCC-: Thank you.
Public Meeting #38, February 2024 at 3:00pm
This transcript was computer generated and might contain errors.
Alan Silverstein: Alright, if it’s 302 and my computers are wrong. I’m sorry. Alright. we’re gonna call the February meeting of the Alcohol Tobacco and…
Jeffrey Kelly -ATCC-: in fact instruction
Barbara a: worked out for Eric
Alan Silverstein: cannabis commission to order and we’ll take role commissioner chairman Al Silverstein here Vice chair Barbara wall is with us commissioner, Eric Morissette and commissioner Betty buck. So we have a quorum. And I need a motion to approve the January 18th 2024 meeting minutes.
Person 32: so moved
Eric: almost a second.
Alan Silverstein: alright, we got a motion second all those in favor signify by saying I O same sign.
Eric: alright
Person 32: I
Alan Silverstein: Okay, Mr. Executive director.
Jeffrey Kelly -ATCC-: Thank you, Mr. Chair, since our last meeting of report first one at the enforcement activity our agents and our agents conducted 250. Tobacco inspections 159 alcohol inspections and all of those inspections yielded 22 reportable events. And as I mentioned in the past that that’s not to say that none of our significant they all are but generally chose a lot of compliance and in 22 instances, we found compliance wasn’t present in such a manner that we had to do a little bit more work on it from those 22 events. We uncovered 57,174 sticks of other tobacco products getting a tax loss of 38,221 dollars and forty cents. We found 748 packs of unstamped cigarettes for a tax loss of 2,800 five dollars. And 45 containers of distilled Spirits which generated a tax loss of $20 one cent.
Jeffrey Kelly -ATCC-: All these incidents occurred again, very broadly across the state. They include Allegheny County City Baltimore County Carroll County Cecil County Harford County Montgomery County Wicomico County and Worcester County. It’s pretty busy week and I’m gonna slip into HR and segging into that to say that on Jill on February 7th. We hired the last three agents that we had for our vacant positions and we hired an additional person on our reporting and data unit as well, so we are down to
00:05:00
Jeffrey Kelly -ATCC-: One vacancy from the new positions. We got effective this fiscal year and that’s a policy analyst that person has been selected. They currently live in California. So they’re moving here for the job and they’ve an offers been made and accepted and we are simply waiting for me to get here. We expect to have them on board by February 13th, and I see pools for the record commissioner pools with us so we can just make note of that. So that’s March 13th. After as of now and forgetting that policy anals for just a moment. We do have one new vacancy that someone who retired last month that’s our director of our regulatory administrative Services Bureau. She retired after at many years of service. And so now we have that as a vacancy that job position has been advertised and will close one Monday the nineteenth and then we expect to move very quickly with interviews and filling that position as well.
Jeffrey Kelly -ATCC-: something I’m just real proud of this gang here that I get to work with every day. Last Thursday one week ago. was the culmination of a couple of weeks build up and that specifically was we had decided to try and do some volunteer service work in our Baltimore City neighborhood that we’re here and so Jessica Honeycutt, just an incredible ate for us executive associate. She put together a visit to a place called The Franciscan Center, which is in the middle of Baltimore. So our people collected a lot of personal hygiene items personal needs toiletries, and we donated them last Thursday morning and then several people stayed back as well to prepare meals.
Jeffrey Kelly -ATCC-: To serve meals and to help really with a bunch of clothing that people needed help them find what they were looking for was almost like a small retail establishment, but nothing costs anything but nonetheless be served as retailers for the day if you will and it’s really to serve all the clients that were there. So we had just a terrific showing from the atccc and it really brought together the team quite well the team consisted of several people who were there that day Other people who contributed items and then still some people who said they might want to participate all the fort down to so it’s just a good event all the way around. I’m really proud of the work that these true servants are they just have service in their hearts and they demonstrated that last week. So we hope to do that a couple of times a year for all works out for us.
Jeffrey Kelly -ATCC-: Jumping into a legal and legislative work so far this year important dates for us are this coming Monday, which is President’s Day. It’s also what is a colloquially known as alcohol day and commissioner Buck again is very familiar with that day.
Person 32: Yeah.
Jeffrey Kelly -ATCC-: It’s a day to avoid Annapolis if you can because it’s a busy day. that hearing is an economic matters in the house. It’s a very busy day where we go through all the bills that have some
Jeffrey Kelly -ATCC-: Reach out into alcohol. So it is just a day where it’s pretty much standing room only for a long time unless you get there very early and they can be long days that’s on Monday on Tuesday. It’s kind of House Tobacco day, which is also an economic matters. That’s not typically a big thing from year to year. But this year it is really surrounding electronic smoking devices. They’re a lot of different bills and a lot of different interest levels of that. So that’s actually become a significant day this year. I believe on Thursday next week is the Senate tobacco day. And then I know for certain Friday is the Senate alcohol day.
Person 32: Okay.
Jeffrey Kelly -ATCC-: So it’s a busy week for us. We’re gonna rest up a little bit but what we can on Saturday and Sunday and hit it Monday, it’s gonna be busy a couple of other important dates for us on February 29th in the House Appropriations. Our budget hearing is taking place. So that’s with our subcommittee Appropriations and some committee that sees oversees us. We’ve already done some work and meeting with the delegate who is
Jeffrey Kelly -ATCC-: Share of that subcommittee. We actually met with the chief of staff laid out our budget for fy25 and as I mentioned to you last month, we’ve got a very healthy budget, I should say it this way. We asked for certain things from the governor and it looks like he’s Staffing as we met his Target and asked for a little bit more and it looks like for us the allowance indicates that and now we’re going to the general assembly and hoping that we get that appropriated. So we had a good meeting with delegate Chair Lewis last week and I hope that’s going to go well and then concurrent a commencement with that on March 4th. We have our budget hearing before the Senate.
00:10:00
Jeffrey Kelly -ATCC-: And we met yesterday with Senator Sara elfirth who is the chair of our budget and Taxation committee that oversees our budget and again had a very robust good healthy discussion. And if all goes well and we do receive the Appropriations at the governor’s created allowance for I feel like we’re going to be in pretty good shape for 25 to really settle in and make a few technology improvements that are going to mean a lot to our shareholders are the businesses quite frankly anybody who’s got one of our licenses. I think you’re going to really be impacted with some dramatic improvements and Technology. Last thing I’d like to move on to is and two things I guess one is you may have seen on our agenda and the minutes a little bit of a different logo and Motif and styling of our letterhead. So we were trying to put together something that’s really our brand.
Jeffrey Kelly -ATCC-: We will ultimately have to get all this approved by the governor’s Communications office and we’ve sent it up there for that. But in the meantime, they said just go ahead and start using it for now and we’ll let you know as we go along but we wanted to make something I was a little more current more of us, just starting again hitting the ground floor with a new logo. And so you’ll start seeing that repeated at our website, I mentioned that TL last month and then the other thing that came up commissioner pool you made mention of wanting to maybe have some person meetings. So we’d like to have a schedule where the last meeting of each quarter. So before a year we set as being In person and understanding that’s not always going to be feasible for anybody and we don’t want to not have a quorum because we can’t do that. So I’m sure we’re going to make technological.
Jeffrey Kelly -ATCC-: A little bit do something technology wise to make sure we still can keep our quorums and that’s the only thing that stops IT. But if this works out and if it’s something that commission would like to take up we would be prepared to start with our next meeting on March 21st, if you’re not that’s fine, but right now we have March 21st. June 20th September 19th and December 19th earmarked as days we could hold in-person meeting. So I leave that to you to ultimately debate and decide but that’s what we are suggesting is maybe something that would be reasonable with again always have the virtual backup if necessary. So with that Mr. Chair and Commissioners at the conclusion of my report.
Alan Silverstein: Thank you very much. I take a motion to approve the quarterly in-person schedule.
Jeffrey Kelly -ATCC-: just
Alan Silverstein: parent I need a second.
Barbara a: slow motion
Person 32: Second, okay?
Robert Poole: a
Alan Silverstein: okay, we have motion a second all those in favor signify by saying I O same sign ice habit.
Eric: alright
Alan Silverstein: So we will have quarterly in-person meetings. And for those who are not able to attend will still be able to bring you in the format that we’re using now.
Robert Poole: And I’m hoping Alan we will have Refreshments at those events, correct?
Alan Silverstein: You should see if you haven’t mentioned a new office and they have a refreshment bar. And be perfect. We’ll come in early.
Robert Poole: Alright. Thank you.
Jeffrey Kelly -ATCC-: We like to think that the place we’re in now is our refreshment. You’re just gonna feel it when you walk in here. We are still a state operation with limited budget so We’ll see what we can do on that.
Alan Silverstein: we can always chip and Police two dollars a piece and…
Jeffrey Kelly -ATCC-: Sure.
Alan Silverstein: make sure that the donuts are fresh.
Jeffrey Kelly -ATCC-: That’s right.
Eric: do
Jeffrey Kelly -ATCC-: And we do have a Dunkin’ Donuts in our complex here within the year and…
Alan Silverstein: I would
Eric: although
Jeffrey Kelly -ATCC-: walking distance so we can for
Alan Silverstein: Life is good. I would mention that Mr. Kelly and I had an opportunity to visit Cota which is one of the marijuana operations that grow both inside and outside in Cambridge a couple weeks ago and it was extremely extremely eye-opening to me to see their quality. Process, how everything is followed just the scientific end of it and the Laboratories to make sure that the product is a quality product. And we appreciated that opportunity and if other opportunities come up and we will be more than happy to let you know if you would like to join us. so
Person 32: I would love that.
Robert Poole: Yep.
Eric: yes, and
Alan Silverstein: Yeah, because we do have What are an Egypt seven six or seven other th major Growers around the state?
Jeffrey Kelly -ATCC-: Therefore and call to this one in particular invited us back specifically and they said really the time to come would be in the fall because the fall is when the outdoor grow which is huge. The outdoor grow is being harvested. This is just really a very interesting and active time and it’s amazing to see as chair said the Work that goes into this all before you sell one item in for retail the work that goes behind at the science that goes into at the infrastructure that has to take place. Just so much research and development. It’s an amazing operation and they’re building out still and I think one of the things that was really interesting about call today is they’re one of very few if any other of the states existing license holders that
00:15:00
Jeffrey Kelly -ATCC-: Are filing to be an incubator site to help really new companies come in and learn the business to teach them how to do the business so that as it grows people can start with some base and knowledge instead of having to start from a position of no knowledge and really enhancing the opportunity for Success. So it’s a fascinating place. And the chairman introduced me to a very nice place to grab lunch while you’re there too. So let’s think about that in the fall as a possible place to go.
Eric: Sounds great.
Alan Silverstein: Alright, so anybody else have any business for us for today? If not, I’d ask for a motion to adjourn.
Person 32: so moved a second
Alan Silverstein: alright and…
Eric: second
Alan Silverstein: most and all those in favor signify by saying I o same side motion carries.
Eric: alright
Alan Silverstein: Once again, I just want to say that kudos to Mr. Kelly and his staff for being able to do such a good job of Staffing up getting quality people.
Eric: Yes.
Alan Silverstein: I know that’s been a challenge for lots of departments and we’re actually a model department when it comes to doing that. congratulations and keep up the good work. Thank you..
Jeffrey Kelly -ATCC-: Thank you.
Person 32: and my
Robert Poole: basically
Jeffrey Kelly -ATCC-: alright
Barbara a: Bye.
Public Meeting #37, January 2024 at 3:00pm
This transcript was computer generated and might contain errors.
Alan Silverstein: Okay, it is three o’clock and is January 19th? 2024, Maryland Alcohol Tobacco and cannabis commissioner as meeting. Alan Silverstein is here. chair Barbara, Wahl. Is present secretary Robert Poole is present commissioner Eric Morrissette is present and commissioner Betty buck as president. So I asked for an approval of the December 21st, 2023 meeting minutes.
Eric: interpolist
Elizabeth Buck: second
Alan Silverstein: okay, got a motion second all those in favor signify by saying I Have it motion carries,…
Barbara a: I
Alan Silverstein: Mr. Kelly our executive director. You report please.
Jeffrey Kelly -ATCC-: Thank you, Mr. Good afternoon. Everybody Happy 2024 and so you kind of forget already that we’re into a new year. So since our last meeting we’ve had 22 events that require further investigation from our agents. And it’s variety of alcohol and tobacco so just give you a list of the totals what I don’t have unfortunately free right now are the tax laws for each of these which I do like to include when I can I’m making attachment to the official record for the minutes, but I don’t have that right at this moment. So so far since our last meeting we have 47,611 pieces of other tobacco products. That’s a lot. 1,973 packs of unstamped cigarettes 20 containers of the stilled Spirits 151 containers of beer
00:20:00
Jeffrey Kelly -ATCC-: And the jurisdictions these all occurred in Baltimore City Prince George’s County by Comico Somerse Dorchester County Queen. Anne’s County Montgomery County Cecil County and then repeats of some of those counties as well. So we’ve been pretty active across the state as is usually the case very proud of this team that we’re building up here. it’s a Workforce to admire. They work really very hard. Since our last meeting also we’ve continued to conduct cannabis Outreach events. However, we’re waiting on the number of places that we have to go. So we only had one and that was with the Maryland judiciary we did that last week. So it was an opportunity to meet during more or less in service training of the judges across the state. It’s the second time that we had an opportunity to prevent to present before members of the Judiciary and it went very well.
Jeffrey Kelly -ATCC-: We’ve done so much of the Outreach of Let’s say the 25 major jurisdictions being the 23 counties and Apple City in Baltimore City. And then also some City organizations and smaller municipalities. We’ve done 21 of these Outreach programs so far and of those 25 major we have five more to go through and that is bear with me just say please Annapolis City Charles County Garrett County Harford County and Howard County and when we meet with them just to again refresh you on this we’re meeting with that government entity. We’re meeting with the state’s orn We’re meeting with the local police department and other interested individuals. So we’re really trying to hit all of these individual jurisdictions. Let them know. what and then establish points of contact with them. We’ve been got a lot of good feedback on that.
Jeffrey Kelly -ATCC-: Regarding our staffing of all the vacancies that we’ve had. I’m very happy to report that we have only eight vacancies remaining in total right now. Two of those will be filled next week. Three more of those will be filled in about three weeks and then the remaining three. I don’t have dates yet, but I expect there will be fully staffed by the time we next meet. So I’d be surprised if all eight weren’t filled by the time we meet in February and worst case I think maybe seven of them would be filled but I fully expect we could be having all eight filled by the next time we meet so that’s really pretty terrific. We got 21 new positions in July and one of those positions that we had to hire for was our excellent. person who’s been really just instrumental in getting us to one board people so quickly from that point on.
Jeffrey Kelly -ATCC-: Yesterday the governor dropped his budget to the general assembly and I’m very happy to say that the allocation for the atcc was virtually what we asked for and it really does two things it gives us a lot of Hope for 2025 to be very smooth financially and actually see some great advancements in technology. We think we’re going to be able to improve our licensing systems that a lot of it will go online reducing the need for hard copies and mail so we’re really very excited about that and the beauty
Jeffrey Kelly -ATCC-: We’re only talking a little over five months away. Assuming the general assembly passes that so if you happen across any members of the general assembly in your passings given the thumbs up and the pat on the back and the encouraging words to pass our budget as it’s presented that would be wonderful. The second part of that is a deficiency request that we made for fy24 again, the idea that deficiency request is we’re asking for money this fiscal year to get us through this fiscal year that we didn’t have in our budget previously. The reason we didn’t have it is when we submitted last year’s this year’s budget fy24. It was last summer a year ago. It was in 22. We didn’t know we were going to be in a new spot. We didn’t know we’re gonna have rent and have to take care of ourselves. And so we’ve asked the generals as the governor’s office for help there. And again, he and his team were very generous with us and helping us get through this year. If the general assembly supports all of that. So again in passing when you get the opportunity if you get
Jeffrey Kelly -ATCC-: To the police encourage General Assembly to support the governor’s allocation for us that will be really very helpful for us. Another thing. I didn’t get into yet is just the amount of inspections. I started last month and I kind of want to keep up on that to let you know what inspections we conducted even though they didn’t necessarily want any further investigation.
Jeffrey Kelly -ATCC-: So regarding tobacco inspections, we inspected 188 locations and just to give you a sense of that we try to do about 125 a month. So we had a really good month. It’s a very robust month, especially considering a major holiday season and a lot of people taking leave. We still did an awful lot of inspections and for our year-to-day goal. We are at 74% our fiscal year today. We are at 74% of the total number of inspections. We wanted to do throughout the year. We’re already at just six months into the year. So just 50% of the way through with alcohol. We conducted 174 inspections which represents almost 59% of the total for our year. So again, it’s over 50% which is terrific.
00:25:00
Jeffrey Kelly -ATCC-: And regarding our cannabis inspections. We conducted a hundred eight of them last month and that puts us at 75% of what our annual inspection requirement is, so We’re Leaps and Bounds ahead of schedule and conducting these investigations and we think we’re making a positive impact and again just when we are required to do these inspections that lead to investigations. our agents are doing a really good job. You have a lot to be proud of what this crew that works here. That completes my report for the month Mr. Chair. Turn it back to you. Thank you.
Robert Poole: Yeah, after the meeting that we had earlier in January. I’d like to propose a quarterly in-person meeting. Obviously, there’s going to be some difficulties and these difficulties will attribute throughout the year? However, I would suggest that we at least try in order to develop rapport with each other and with others to have these meetings in person.
Elizabeth Buck: I think it’s a great idea.
Alan Silverstein: And we can do a combination of virtual and…
Eric: Yeah.
Alan Silverstein: in-person of somebody’s not able to join us. I support that idea, too. So we’ll leave it up to Mr. Kelly executive director Kelly and…
Robert Poole: EXC
Alan Silverstein: his staff to schedule.
Eric: But I have a question. Is there a way for us to ignitely? I’m in DC and then during the work day and it’s hard to get to Annapolis. But I really do want to see all of you good folks in if they’re away for us to work the schedule and actually fly for you all just some relatively recent news as of last week on the acting under Secretary of Commerce. for the US Department of Commerce, so it’s like I’m also going through a bit of a transition in terms of reading a federal agency these days, so I have some more kind of control over my time and I want to make sure that carving out time to make the fields be honestly and for us all have an opportunity to talk about these things in person, but I want to make sure that doesn’t conflict with any of the stuff that folks are telling you have to do here.
Alan Silverstein: Yeah, I think we can put a sample schedule together and see how we can work to best arrangements for everybody concerned and…
Eric: but
Eric: Okay.
Alan Silverstein: like I said, but we have to Virtual for somebody we can do that to.
Eric: Thank you.
Barbara a: if Eric
Alan Silverstein: Anybody else have any other new business?
Eric: Thanks.
Jeffrey Kelly -ATCC-: I’ll just if I could just adding on to all of this that’s not going to be a problem. we have the room for that and I spoke to one of our Incredibly bright colleagues today and just about having a blended hybrid person meeting when we may want to do that actually for some other meeting. I have next week. So very timely and he said he assured me that we’d be able to have the person and also a fairly good Virtual meeting blend if we need to do that, so we should be able to make that accommodation.
Eric: Perfect.
Alan Silverstein: Yeah, because we still want to be able to let everybody who’s interested come in and listen to the meeting because it is an open meeting. So All right.
Eric: Absolutely.
Alan Silverstein: All right, if there is no other business to conduct I take a motion for adjournment.
Robert Poole: A second it.
Alan Silverstein: I need a motion,…
Eric: commissioner
Alan Silverstein: please. Okay.
Robert Poole:
Alan Silverstein: We have second but all those in favor signify by saying I propose same side motion carries. See you all next month.
Eric: Yeah.
Barbara a: Thank you.
Jeffrey Kelly -ATCC-: You all right.
- Meeting Agenda
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Public Commission Meetings takes place on the 3rd Thursday of every month.
2023 Meetings
2022 ATCC Commision Meetings
January 20, 2022
Disclaimer: Transcripts are generated and may contain errors, including typos or misinterpretations of the spoken content, and may not follow the video content precisely. While we strive for accuracy, please verify critical information independently.
Chairman Alan Silverstein: Elizabeth Betty Buck with us, we have Eric Morrissette with us, and we have Barbara Wahl and myself, Alan Silverstein, so we have a quorum today. First order of business is approval of the December 16th meeting. I need a motion for approval.
Unidentified Speaker: I move.
Unidentified Speaker: Barbara. Second, please.
Unidentified Speaker: Eric, I have a second.
Chairman Alan Silverstein: Motion and a second. All those in favor signify by saying aye.
All Commissioners: Aye.
Chairman Alan Silverstein: Oppose, same sign. Motion carries. Executive director’s report, Mr. Kelly.
Executive Director Jeff Kelly: Thank you, Mr. Chair. Happy January in 2022, everybody, starting our beginning of our second year, and it’s pretty neat. Excuse me, we had a pretty interesting and fairly busy period of time since our last meeting in December. We had eight incidents for which people were charged or referred, either for charges or referred to local liquor boards for other actions. Of those, four of them were strictly alcohol-related incidents. One of them was an alcohol and tobacco-related incident, and the remaining three were tobacco incidents.
I’ll tell you about seizures first and OTP other tobacco products. We seized over nearly 9,400 sticks of other tobacco products, 26 packages of cigarettes, 116 containers of spirits, 65 containers of beer, and two containers of wine. Of those four alcohol cases, what I kind of wanted to draw your attention to is that two of them, well, three of them actually, something that is a little bit unusual for us. One is there was an instance where a wholesaler made a delivery to a retailer, or at least it made a delivery to someone who didn’t have a license. Likely, this was somebody who was a retailer who didn’t have the license any longer. Either they chose not to have it for whatever reason or were ineligible to get it renewed, but in any event, the wholesalers are obligated to check and verify that whoever they make deliveries to have a license in place, and in this case, they did not do that. So they have been charged, and we are working through that process internally.
In two other instances, again, these are cases of wholesalers committing acts that they’re not supposed to do. Wholesalers can’t give anything of value to a retailer. That means they can’t give them something physically, an item that’s physically usable. It means they can’t give them help or work or do anything other than the very strictly laid out provisions that are in the law and in our code. In this instance, we had two different wholesalers that went to retailers and were stocking shelves for them. They can’t do that. What wholesalers may do is drop off product in the store, of course. They may set up displays, set up a display in the store, but they can’t come back and replenish the display. They can rotate stock on shelves if they have dates that become expired. They can do that, but they can’t come there and just give labor away by restocking shelves. Oftentimes, during the holidays, some retailers might look to some of their wholesalers and see if they can get a little help stocking shelves. That’s what we think happened here. So two of those are for that. I bring that out because it’s really different than the usual, which might be purchasing. Usually, it’s what a retailer is doing, purchasing other than a wholesaler making a sale they shouldn’t make, but in this case, it was a wholesaler doing something a little bit wrong, either selling to an unlicensed individual or entity or providing some other services too. Just interesting, and these will carry out through our system. Just to bring your attention to it, on February 21st, that’s what is generally considered Betty’s very commission. Very this alcohol day in the house. It’s President’s Day. Every year during President’s Day, the house has alcohol day. That’s a day where you bring your lunch and your dinner and coolers of water because they are usually very long days where all of the alcohol bills receive their hearings. So this year it’s going to be virtual. It was last year too, and the nice part about it being virtual is you get a seat if you want, and it didn’t take like six hours or seven hours like they ordinarily do for other years. Nonetheless, you might want to tune in on the 21st and just see what’s going on.
Also, since the General Assembly started a little over a week ago now, there have been nine alcohol bills that have been introduced. Eight of them are local bills. One of them is a Statewide bill. I’ll talk about the Statewide first. It’s actually a bill just to create a study. This is to study minority involvement and historic involvement in the alcohol industry. So the Governor’s Office is assigned this responsibility. The ATC is one of many people who are to participate and help along with the study. I believe we do it at the end of this year, but we’re not obligated to staff it. We’re just going to provide information, I’m sure, and some historical context.
The other eight were, I mentioned local bills, and just briefly what that means is if you already know it, I apologize for oversimplifying it, but there’s usually Statewide bills or local bills. Statewide bills get a lot of consideration of scrutiny before they become passed or not. Local bills get some level of that scrutiny, but frequently a local bill is simply a bill that one particular county or jurisdiction, Baltimore City or one of the counties, would introduce that only impacts that county. For example, Montgomery County might want to have alcohol movie theaters. So there’s a bill, a local bill by the local delegation that all supports this, say we want to have these movie theaters with alcohol licenses in them. Please pass our bill. If the local jurisdiction is in favor of it, most of the time the General Assembly just gives them a courtesy and passes the bill. Every reason I said significant, we see more and more local bills now each year where they don’t introduce a Statewide Cinema bill or movie theater bill. They do it by jurisdiction. Growlers, I think, maybe a good example that uses these resalable beer containers. It started off in a handful of districts, and now it’s pretty much Statewide, but little by little you might see it happen one after year. It kind of gives you an idea of what the trend is going to be moving forward.
The tobacco bills, both bills are very similar in what they do. One’s a Statewide bill, one’s a local bill. The local is Baltimore City only. The Statewide is for everybody, obviously, and they both do the same thing, though. Right now, the state has the preeminent authority of regulating and enforcing the state, creating laws for state tobacco usage. These two bills would allow Baltimore City specifically, and the other, the entire state, the ability to enact their own laws and do their own enforcement on tobacco violations. Caveat being that anything that they enact has to be at least as stringent as existing state law. So they can’t make something less stringent than state law, but with these bills, they would be able to make something a little bit tougher, and that they would have the authority to carry that out as well.
Then, if I could, I just wanted to just very, very briefly introduce one of our representatives from the Maryland Department of Health, Dana Monro. Dana has been a 15-year veteran of the Department of Health who spent the entire time in the Center for Tobacco Prevention and Control. She currently serves as its director. She holds a master’s degree in Health Science from Johns Hopkins Bloomberg School of Public Health, a bachelor from Penn State University, and she’s a certified health education specialist. Interestingly also, because I just had a completely unrelated question of her recently, she’s also the state lead for the Pediatric initiative of COVID vaccines. I’m not saying it in the proper order, but she’s the lead for making sure that we figure out a way to help get the vaccine to pediatric patients for COVID. I just happen to have one of our industry members contact me yesterday and said, “I’m in trouble. My daughter needs help. She’s allergic to the vaccine. Do you have any way we can go?” I was able to reach out to Dana, who’s working to help us get some information on that. So just happenstance that we have another great resource here for a variety of reasons. I say welcome aboard, Dana. I’m glad to have you, and I’m sure the other Commissioners are glad to have you here as well. Mr. Chair, when we get to new business, I have just a little bit that I’ll bring you up to date on some other issue, but that will be the standard report.
Chairman Alan Silverstein: Can I ask a question?
Executive Director Jeff Kelly: Sure.
Chairman Alan Silverstein: And I don’t know if I’m allowed to know the answer, but Jeff, you had to know I was going to ask you this. Were the two distributors that stocked the shelves competitive distributors in the same store by chance?
Executive Director Jeff Kelly: I think that’s a fair statement.
Chairman Alan Silverstein: Okay, that’s what I figured.
Executive Director Jeff Kelly: That’s a fair statement. And, you know, interestingly, yes, that’s, yes. But I’ll say this. Now that we’re kind of aware of how this happens, it’s going to be a little bit easier for us to spot it in other stores now too because this really opened up new avenues of investigation for us. So I think we’re going to be a little better at being able to crack down on this also.
Chairman Alan Silverstein: Because it happens a lot.
Executive Director Jeff Kelly: That’s my understanding, and I’m hoping that the industry will… The industry has always been very good at self-policing, but this is one area they’ve never really done a pretty good job back. Everybody’s been kind of quiet about this, and probably because it’s more widespread than we may know. But you’ve just gotten a little peek behind the curtain, if you will, with this most recent case, and that’s why I’m saying it publicly as well, is to those industry members who are listening in today, you’re forewarned, you can’t do it. And we have ways of finding out what’s going on now.
Chairman Alan Silverstein: I don’t think it’s always been like that. I think it’s just gotten worse lately because some of the bigger retailers are just putting a lot of pressure.
Executive Director Jeff Kelly: Oh, I know that. I mean, I’m hearing things now. On busy weekends, they’re putting out all calls to their solicitors who are the salespeople and saying, “I need help stocking my shelves this weekend. They’re empty,” and people are stopping what they’re doing and going into stock the shelves, which has never been and is not legal. But people are doing it because, quite honestly, the pain of doing it hasn’t necessarily outweighed the pleasure of getting paid more for helping. And our job is not to administer pain or pleasure but to make sure that all the rules are being followed equally, and that’s what we’re doing.
Chairman Alan Silverstein: Thank you.
Executive Director Jeff Kelly: Sure.
Chairman Alan Silverstein: Thank you. Brooke is here from the Maryland Department of Health. You have an update for us?
Brooke Torton: Yes, hi there. Thank you so much for having me. Brooke Torton, managing director of the Legal Resource Center for Public Health Policy, funded by the Maryland Department of Health. And Jeff, you took care of some of this for me, so I’m going to be quick. I just wanted to provide a brief legislative update. So I’ll just provide it just a tad more detail, Jeff, and add one bill to that. So Jeff referenced two bills. One is just Baltimore City and one was related Statewide, and this deals with tobacco preemption at the state level. So preemption at the state level prevents locals from passing laws generally speaking relating to tobacco in their jurisdiction. So the brief background I want to discuss is in 2013, there was a court decision, and it’s as a result of this court decision that we are in this position where we must go back to the legislature. The legislature is the one that has to give the authority back to the locals. Prior to 2013, locals for a few decades were passing laws relating to tobacco, but it was a court decision in 2013 that put a stop to this essentially. So there is a movement to get this bill passed based on the needs and the desire of locals to get… have the ability, the authority to pass laws that they feel would… that they’re in the best position to kind of know what’s happening in their communities and they can kind of come up with solutions that’s impacting their population. So that’s just a little bit of the background as to how we got to where we are. The second piece I want to mention is there is a bill that is related to authorizing pharmacists to furnish nicotine replacement therapy to people that come to them directly. So that is a bill, it’s SB62 and HB28. It’s actually being heard today at 4:00, the house version, at 4:00 today in HGO. I don’t believe the Senate bill has a hearing date yet, but essentially the idea of this bill is that it removes the barriers where patients have to go visit their doctor, you know, get a script, then go to the pharmacist. It’s just to kind of make it more accessible and easier for folks to get access to NRT, and this bill has been introduced in prior years as well. So this isn’t a new concept, and so look out if you’re interested. The hearing should be up around 4:00 today. If you visit the legislature’s website, you can go ahead and listen if you’re interested in that.
Chairman Alan Silverstein: Thank you very much, Brooke. We appreciate having you join us today. New business, Jeff?
Executive Director Jeff Kelly: Thank you. First is just to say that we may be able to do a presentation on something that’s really becoming up-and-coming and a concern perhaps, and that is synthetic tobacco. So what we’re hoping is to get on the agenda for next month synthetic tobacco, what it is, how it’s impacted, if it’s something we’re going to regulate or how we’re going to do that. And I would just say a couple of years ago, and you’re probably all aware of this, synthetic cannabinoids came out. So these were synthetic things that acted a lot like cannabis would act, but they weren’t illegal because cannabis was illegal, but these chemical compounds were not. So the General Assembly started learning what the chemical compounds were and then writing laws specific to them, saying… and the chemical name was in the bill saying this is no longer an illegal product in Maryland. So the wise chemist went back and changed that just a little bit and made it something else. And so next year another bill, and we found ourselves chasing all of this. Then we end up with a more general bill that simply said if it acts like a cannabinoid and it’s kind of like a cannabinoid, it could be enforced. We can go ahead and enforce it. The problem with that, it’s a great thought, but the problem was you still have to have lab work done to say that it acts like a cannabinoid and it’s kind of built like a cannabinoid, and there wasn’t any lab work available for that. So we became a little ineffective in how we could enforce the synthetic cannabinoids. So now we’re going to be dealing with perhaps synthetic tobacco products. And I’ll tell you that there is a lot of interest in the General Assembly. I’ve gotten quite a few calls about it generally, and Dana and I were talking. We might go to do something next month that’ll address this a little bit more and give you just more of a sense of what’s on the radar and what may be coming down the pipe.
That’s item one. And just two things that are off-business here. I happened to meet a week ago with the chairman of the Economic Matters Committee. It’s a brand new chairman, Chairman C.T. Wilson from Charles County. He seems like a real nice fellow, absolutely supportive of this commission. So if there’s anything he can do, he wants to do it to help us. He said specifically if we have any legislative needs this year to come to him directly. He’d be more than happy to introduce bills for us. There’s a timeline on that because it’s all got to be done within the next few weeks. If there’s something that’s burning you guys and you want to talk about it, please let’s talk about it. We can do that offline, and if it’s something that we want to take to him and ask him to bill for, that’s great. But I think he’s going to be a terrific partner. His committee regulates alcohol, tobacco, and a whole host of other things. He’s got a real interest in this, and he’s also going to be responsible for drafting policy for cannabis if and when cannabis is passed, which, you know, it’s subject to referendum this year perhaps. And if it’s passed the referendum and they decide to enact it, then he’s going to be developing policy on that. He’s already kind of laying that work out. He’s going to be leaning on this commission very heavily for input and wants all of our concerns and worries about tobacco and alcohol out of the way so we can focus on cannabis full-time when and if this should pass.
The last thing I like to mention in new business is yesterday Governor Hogan introduced his budget allowances to the General Assembly for consideration. Scheduled for a series of hearings and whatnot, but we’ve got ours. Now the way the budget works is the Department of Budget and Management sends us a number, and the number they sent us originally was roughly $3.7 million. So they say that’s your target budget. Figure out a way to spend it and see if you need that much, and if you need more, you’re going to have to do something different, but that’s what you’re getting, we think, preliminarily. Send us in your budget for that. So we do budget submission from that, and then we were allowed to do something called an over-the-target budget, which we’ve only been around now for a year and we didn’t really know what we were going to need, and we didn’t have budgeting allotments previously because nobody knew. We have a better sense of where we are and what additional needs we have, so we supplemented our budget with what’s called the over-the-target budget, and we asked for a certain amount of bodies, people, and some to support that operation. And I’d have to say that the Department of Budget and Management and the Governor were very generous to us and have included in their allowance for us to the General Assembly seven additional agents and one additional administrative position and the supplement funding behind that that we’ll need to equip and train and carry that out. So I’m just thrilled that we got that. I really am. It amounts to an additional, oh gosh, like $1.6 million additional, so it’s almost a 50% increase in what we had to get more staff and more people out there because that’s where we’ve really been short. We don’t have the agents in the field. This will go a long way, of course, to the extent that it passes. It doesn’t take effect until July 1st, but I hope to have a list lined up and ready by July 1 if we’re able to get this.
That’s it, Mr. Chair. Thank you.
Chairman Alan Silverstein: Does any of the other members of the commission or anybody else have any questions or any other business before us? If not, I take a motion for adjournment.
Unidentified Speaker: So moved.
Chairman Alan Silverstein: All right, Betty Buck. I need a second.
Unidentified Speaker: Second.
Chairman Alan Silverstein: Eric Morrissette. Motion and a second. All those in favor signify by saying aye.
All Commissioners: Aye.
Chairman Alan Silverstein: Opposed, same sign. I want to thank everybody for joining us today. We’ll see you next month. Thank you. Take care.
- Meeting Agenda – Unavailable
- Minutes
February 17, 2022
Disclaimer: Transcripts are generated and may contain errors, including typos or misinterpretations of the spoken content, and may not follow the video content precisely. While we strive for accuracy, please verify critical information independently.
Unidentified Speaker: So synthetic nicotine, it’s created in a lab and it’s not derived from tobacco. I can’t necessarily explain specifically the science that goes into that, but I can tell you that it is extremely expensive to make and this is a new and kind of developing area that we’ve seen. Some manufacturers have begun to use synthetic nicotine in their products. The reason for that is the FDA asserts regulatory authority over tobacco and derivatives of tobacco. So back in 2016, when they published the deeming rule, they defined tobacco products as products that were derivative of the tobacco plant. Nicotine is a derivative of the tobacco plant, and that is how the FDA extended its authority to include these electronic smoking devices because they include liquid nicotine product and nicotine is a derivative of tobacco. At the time, I don’t know that they were kind of anticipating that industry may then switch to these synthetic nicotine products that are created in a lab and are not derivatives from the actual plant.
Moving forward a little bit, I just want to give a really brief history on this because Puff Bar is the main company that we’ve heard about being someone that’s using the synthetic nicotine in their products instead of nicotine that’s derived from the tobacco plant. So back in July of 2020, Puff Bar gets a warning letter from the FDA telling them to remove their product from the market. The reason they were telling them to remove their products from the market was because they actually introduced them after 2016. The FDA, in 2016 when they asserted their authority over tobacco products, they said, “We’re not going to issue enforcement against those who have their electronic smoking devices on the market still. We’re going to let you submit your pre-market tobacco product application, but that applies to products that are already on the market.” Now Puff Bar just went ahead and introduced them after that date. So the FDA says, “You were introduced after this date. Whether or not you submit a pre-market tobacco product application, our enforcement discretion doesn’t apply to you.” That was back in July of 2020.
Then moving forward a little bit in February of 2021, Puff Bar announces that their products that they’re selling are actually including synthetic nicotine, not nicotine that is a derivative of tobacco. Presumably, that’s how they feel they can get around the FDA regulation. The FDA has spoken out and said they’re going to be handling this on a case-by-case basis. So we have yet to see anything else specifically, any other word on this, but of course, we are tracking very specifically what they’re going to do and what they’re saying.
Here in Maryland, the Alcohol and Tobacco Commission has authority over the licensing and the taxation of tobacco products. At the Legal Resource Center, we’ve been asked quite a bit, “Do our laws cover synthetic nicotine?” We see what’s happening at the federal level. Are laws in Maryland broad enough to encompass these products? So we engage in analysis and we have concluded that, yes, our definitions are broad enough to include these products. We also spoke with the Office of the Attorney General, and they concur with this position that, yes, our definitions are broad enough to encompass these products. The definition of other tobacco products and electronic smoking devices does vary some across our licensing, taxation, and sales restriction, but like I said, there is some variation there, but they are broad enough.
I’m just going to get into that and show you the language here on the screen and show you a little more specifically what I am referring to. Licensing for other tobacco products, I’ve included the language here, the definition, just a select part of this here, and as you’ll see, they’re talking about other tobacco products include the products that are intended for human consumption and that are made of or derived from anything that contains tobacco or nicotine. They don’t specify whether it has to be nicotine as a derivative of the tobacco plant or just any type of nicotine. It’s just nicotine. And so again, now we’re looking at the electronic smoking devices on the licensing article there. So anything that can be used, any device that can be used to deliver aerosolized or vaporized nicotine to an individual. They’re not qualifying what nicotine means. This could be a derivative of tobacco, could be synthetic, or who knows, maybe some other type of nicotine down the road. So here, looking at licensing, it looks like we are certainly covered for products that contain synthetic nicotine.
Taxation, here in our taxation article for other tobacco products and electronic smoking devices, it’s referring to the business regulation article definitions for each. You’ll see the 16.5 101 and 16.7 101, and so because they’re deferring to those definitions, and I’ve just talked a little bit about what they’re saying and what that means there, it’s the same definition. So the same explanation that I just provided applies there as well.
All right, now as far as sales are concerned, I know the Alcohol and Tobacco Commission, this isn’t necessarily your specific area. You don’t regulate in this area, but just to let you know, we wanted to make it clear that the same analysis applies here as well. When we’re looking at the civil penalties for those who sell electronic smoking devices to people under 21, they’re referring to that same definition in the business regulation article. The licensing provisions for electronic smoking devices, same definition there. And then for the criminal penalty for selling to those under 21, they include a definition of tobacco product here, but it’s the same exact concept here. You’ll see I have in quotes, it’s, you know, we’re talking about human inhalation, absorption, etc. of a product that’s made of, derived from, or contains tobacco or nicotine. So same thing, our sales statutes should apply as well to synthetic nicotine products.
I think Tom mentioned briefly there was a bill, HB 11227. It’s really our thought and our position that this doesn’t do anything. This bill, we think the language is clear enough, but I would note that specifically what that bill does as far as the language is concerned, it amends the sales restriction to specifically include the word synthetic nicotine, and it also would amend the licensing article. It doesn’t make any reference to the taxation piece of this, and it also amends that tobacco use cessation programming, which is managed by MDH. So there isn’t any kind of implications for regulatory power, and that definition there is pretty narrow, so we don’t think it would cover synthetic nicotine. But that has no impact on the regulatory scheme or the sales to those under 21. So we don’t see this bill as really doing anything but just kind of complicating the mix. I have other thoughts on that as well, but just wanted to make that point and make that clear.
I have included here on my, on the last slide, my phone number, email address, and name. If we have any time, I’m, of course, happy to take questions now.
Unidentified Speaker: Thank you for the presentation, Brooke. Anybody have any questions? Chair, director, any comments?
Executive Director Jeff Kelly: Yes, sir. If I may. Thank you. Only to say that thank you, Brooke, very much for that. Yes, we were also involved in the discussion with the general, not general, with the council, the AG, the assistant attorney generals assigned to the Department of Health and to legislative services also. Tom was very much involved in that work. We also concur. We think existing language is there for us to take enforcement action when the term nicotine is used to cover synthetic. We don’t see that that is an issue either. Not sure really if the bill helps us or hurts us, but regardless, we feel very much empowered and authorized to act on that as it exists.
Unidentified Speaker: Right. Thank you. Anybody else have any comments or questions?
Unidentified Speaker: Okay. I think at this point, unless there’s anybody else who has any comments, I’m going to ask for a motion to adjourn. Anybody want?
Unidentified Speaker: Okay, I wondered if you want to stay on for the rest of the day. I need a second, please.
Unidentified Speaker: Second.
Unidentified Speaker: Okay, I have a motion and a second. All those in favor signify by saying aye.
All Commissioners: Aye.
Unidentified Speaker: Opposed, same sign. All right. Thank you all very much. Thomas, welcome aboard. Mr. Kelly, I think we’re moving in the right direction. Thank you for keeping us informed on the legislative issues. I just should note that I will be appearing before the Senate Appointments Committee Monday the 21st at 5:00 to get formal approval to be on the commission. I was appointed in May of last year and the legislature was not in session. So wish me luck.
Unidentified Speaker: Good luck, Al.
Unidentified Speaker: All right, thank you. Take care. Have a great.
Unidentified Speaker: Thank you all. Bye-bye.
Unidentified Speaker: Bye-bye.
“Maryland Alcohol and Tobacco Commission Meeting – April 21, 2022“
Disclaimer: Transcripts are generated and may contain errors, including typos or misinterpretations of the spoken content, and may not follow the video content precisely. While we strive for accuracy, please verify critical information independently.
Unidentified Speaker: Eric Morett here. Robert P here. Barbara Wahl here. Al Silverstein here. I need an approval of the February 17, 2022 meeting minutes as presented.
Unidentified Speaker: I’ll move.
Eric Morett: Eric, second.
Barbara Wahl: I’ll second.
Chairman Alan Silverstein: Barbara, second. All those in favor signify by saying aye.
All Commissioners: Aye.
Chairman Alan Silverstein: Opposed, same sign. Okay, executive director’s report, Mr. Kelly.
Executive Director Jeff Kelly: Thank you, Mr. Chair. Good afternoon, everybody, and glad to be back together. It’s been two months since we’ve been together. Over the last two months, I’m giving you a total cumulative report for the last two months since we’ve last met. We had 14 different incidents of alcohol and tobacco-related events. Within that, 16 people have been charged, and we’ve made quite a few seizures. In the area of other tobacco products sticks, we’re close to 62,000 that were seized. With unstamped cigarette packs, just under 5,000. Nearly 400 containers of distilled spirits were seized, 52 containers of beer, and 837 containers of wine. These incidents have resulted from across the state. I’m just going to read off a few of the counties to give you a sense of it: Carroll, Frederick, Harford County, Allegany, Cecil, Prince George’s, Baltimore County, Baltimore City, and Washington County. So you can see these incidents take place across the entire state.
Also, this is renewal time for us. It is for the local boards. Just to give you a flavor of this again, we issue licenses to the first two tiers, the manufacturers and the suppliers, and all the local boards across the state issue licenses to the retailers. This is the time period for the retailers to issue their licenses across the state. It’s a very busy time for the local boards to issue these, and they do somewhere close to 8,000 licenses. So it’s quite a bit. And we do our licenses as well for our manufacturers and our wholesalers, just those two elements that possess our licenses. And we issue about 700 of those. They all expire April 30th to be renewed for May 1st. So we’re well underway for the renewal. We have quite a few that have already filed their renewal paperwork and will be issuing their certificates next week, printing these out next Monday if everything goes well and having them out by probably Tuesday or Wednesday in the mail. I’m going to get back to that in just a minute because I do want to make another comment on it.
We put out three training and information advisories since we last met. One of them was about the instructions for the renewal for these licenses that we issue that we’re putting out right now. We’ve found that we had to put out these advisories each month or so before we actually send out the renewal coupons. Now, years ago, to renew, you had to fill out a long four-page form to renew, and Commissioner Buck can tell you all about that. It was kind of a pain. You had to fill in a lot of boxes. It was the same thing every year. So we really shortened this up. Now it’s a coupon at the bottom of a piece of paper that you have to fill out. You have to put four things on there. We already know what license you want. You have to put out how much money you’re going to send us; that’s in one box. You have to check another box to tell us if you’re a caterer. If you’re not a caterer, you don’t need to check it. It’s very explicit. If you check it, you’re a caterer. The third box is the signature of the licensee or an officeholder of the business, and the fourth thing is the signature of the property owner. Those are the four things that are required.
Out of the 700 renewals that we sent out and received back, 400 of them were missing at least one of those items. Now, when we send out these advisories, we send them out saying we’ve done this now. This is our third time. This is our third go-round. Here’s what we’re seeing as errors. Please don’t clip the coupon off of the advisory that we’re giving you and send that in. We send you a personalized advisory in the mail. We give them very explicit instructions that are only four steps: make sure you’ve done the following. And still, 57% of them are not correct.
So here are our options: last year, we fixed everything. This year, we’re fixing it again. Against my better judgment, really, we’re fixing them again because it’s just faster for our team to fix the 400 errors than it is to let people really just not be renewed and have 400 license holders not have licenses, which is tempting but probably not realistic. So we’re fixing all of those. We’ll have all of those done and completed by the week’s end, by tomorrow or early Monday, so that we renew our licenses and everybody will be up to date. But it’s a real problem. And again, it’s such a simple process now, and it’s kind of a maddening problem. So that is why we waste some of our advisories that we do each year to give these very explicit instructions. So I say that because you’re going to hear me mention these a couple of times throughout the year.
So that was one of them. We issued an instruction sheet saying please work really hard to try and get this right. The second one was about really emphasizing to tobacco retailers a lot of violation increases. As I mentioned, we seized almost 62,000 sticks of OTP, other tobacco products. That’s a lot. And we’re seeing a lot of that. We’re seeing more loose cigarette sales, we’re seeing more unstamped cigarette sales through our regular retailers and businesses in the state. So the second one we addressed directly to these retailers and said, hey, look, here are the rules. Here’s where you get your tobacco from. You have to buy cigarettes from this entity, and here’s what they have to look like, and they’ve got to have the stamp on it. You have to buy other tobacco products from these entities; they’re the only ones allowed to sell in Maryland. And never may you ever open up a pack of cigarettes and sell cigarettes individually. You may not. We’re seeing a lot of it, and we’re charging for it. So we were kind of putting people on notice that we’re not lightening up on the enforcement side. So please do your best to tighten up.
Then our third advisory that was put out was another reminder of how to fill out these coupons to our direct wine shippers. These are people who have permits from outside, a few inside of the state and mostly outside of the state, to sell wine directly from their wineries. There are several conditions that exist in order to be a direct wine shipper. If you meet those conditions, then you’re allowed to ship directly to a consumer in our state. And we probably have somewhere around 1,200 of these that are across the country. So we’re getting those that expire on June 30th and renew on July 1st. We sent out an advisory just recently to let them know you’re about to get this coupon. Please pay attention to the just a couple of areas you have to fill out. Pay a lot of attention. If you don’t, you will be delayed in getting a new one and really just kind of putting them on alert, making them be responsible for this themselves.
So that’s the advisories. Next month, the dust is still settling around the general assembly’s work this year and the governor’s decisions on what he’s going to do with many of the bills. Next month, we’ll have a very detailed presentation on what bills passed, which ones were kind of significant and maybe didn’t pass. We’ll answer any questions you have. So we’ll put together a fairly decent presentation for you for that for next month. But in the meantime, a couple of things that were interesting for us passed.
One, we had our two budget hearings and our budget bill, and we really flew through. And the chairman was there for both of those hearings, and thank you, Mr. Chair, for being present for that. It makes a big difference, you know, as he would tell you. I think they were very easy hearings for us, fortunately, this year. We’ll take that. And the question from both committees, really the big question for both committees was, is that enough money? Because the governor allocated a decent increase for us and it’s been well either has been or will be appropriated very soon, effective July 1st. The long and short of it is it’s giving us seven new sworn agent positions, which we sorely need, and an additional non-sworn non-agent administrative position in the office, which again we really need. And for those who visited, you see how busy a handful of people are doing these licenses, keeping up on that. So it was great for us for the budget. I love the general assembly’s questions of, is that enough? Do you need more? And I’m excited to go back next year if we’re able to accomplish even more and say, yeah, we were wrong, we did need some more, and we’d like to get that.
So that went well. Another bill was House Bill 1253. That was really just a corrective bill, but just to give you a sense of it, in moving the ATC and all the responsibilities from the comptroller to its individual commission, independent commission, all throughout the tobacco regulations, the tobacco laws, alcohol regulations, alcohols, all throughout those, it mentions comptroller. And when the general assembly created us, they said essentially we expect the ATC to be the successor agency everywhere we say the comptroller will do something relative to the regulation or enforcement of alcohol and tobacco, we mean the ATC. And there are tons of places in all the laws and regs that still say comptroller. So each year we go through and we try to clean it up. This House Bill 1253 went a long way toward that. If you care to take a look at it, it reads pretty easily, but it goes through a variety of areas in the tobacco tax law and in the alcohol tax, I’m sorry, tobacco law and the alcohol law to just migrate responsibility, specifically stating the ATC is responsible and may do a variety of things relative to that.
We’ve been undergoing a transformation in the COMAR, which are the Code of Maryland Regulations, the regs that we enact. They all live within the house of the comptroller still. We are about a month away, maybe less, from completing the conversion of those regs from the comptroller to us as an independent agency. There are really not going to be any substantive changes. Everything that was in regulation before, even though some of it needs to be fixed or modernized or updated, it’s not going to happen now. We’re just simply taking the time now to move everything so we don’t have to go through a lot of hearings. We’re just moving identical information over to us. Once we get it, we’re going to undergo a massive reevaluation of our regs and see what needs to be updated. Of course, we’ll keep you informed and bring you in on all these as we’re moving along. But that’s the intent over some time. Truthfully, it’ll probably be after June or July because it may take that long logistically to move all the regs under the ATC.
And the last thing is cannabis. We’ll have more to report on that next month as well. But it was an interesting year. House Bill 1, which sets cannabis up for a referendum to the states, I’m sorry, to the citizens of the state, passed and will be voted on in November. And my understanding is it’s like in the mid-70s, polls indicate that the population is supportive of cannabis. So there’s a good likelihood that that would pass. It doesn’t do anything except to say do we support this or not, generally speaking. Then another bill was House Bill 837. That bill spent a lot of time going through expungements and starting to set up in a very small way, starting to set up some framework for policy about how we’ll handle cannabis, but it really didn’t get into that so much. But one of the interesting things in the uncodified section of it, and specifically section 8, it said if this bill does, if House Bill 1 and the referendum pass, then effective, I believe it’s January 1st, 2023, the medical cannabis commission will migrate under the office of the executive director. So we’re going to have that to deal with if that passes, at least elements of it. I’m not really sure how much of it, we’re going to have to dissect that. But next week, we’ll be meeting with the Cannabis Commission executive leadership and trying to figure out what that really means and what it will look like. But it does talk about us sort of absorbing that commission, at least elements of it, and how we should make that happen. And next month, we’ll have a bigger presentation on the outcome of the cannabis legislation as well.
Our website, you know, our website’s not great, but we’re working on it. We are in discussions with the state’s Department of Information Technologies, which is called DoIT, and also the comptroller’s information technologies division. Either of those may be eligible or be able to do the website for us. We’re looking at both of them to see what they can offer, where we reasonably should be expecting to live. We still use a lot of the comptroller’s resources, which require us, as you all have, to have specific types of email addresses through the comptroller’s frameworks of firewalls and whatnot. So we just have to weigh all of that and figure out where we’re going. But we’re making great progress on getting a website that we all want it to be: educational, informative, useful, easy to navigate. We’re working very hard on that.
Mr. Chair, that’s it for my report. I would just add this: the chair was able to stop by a while back and we were able to get a photograph of him and an ID card issued to him. If any of you would like to get that, let me know. We have to make an appointment for you, which is not a big deal. But if it’s convenient for you and you want to do that, we’ll get you set up for an appointment because that all takes place in Annapolis. It’s very convenient and close. It’s just in another building with another entity that does it. So if you’re interested in that, let me know. We’ll get you set up for a photograph and get you your ID cards issued as well. That’s it, Mr. Chair.
Chairman Alan Silverstein: You’re muted. You’re on mute, sir. Oh, you’re on mute. You’re still muted.
Chairman Alan Silverstein: I was going to say the advantage of that is going through security, and it expedites that process. So I’d encourage you to do that. Do we have any new business?
Unidentified Speaker: Can you hear me?
Chairman Alan Silverstein: We can hear you.
Unidentified Speaker: Oh, okay. No new business. Scared me for a minute there. Do we have any other new business at this time? If not, I take a motion for adjournment.
Unidentified Speaker: I’ll move.
Eric Morett: Second, Morett.
Unidentified Speaker: Second by Miss Buck. All those in favor signify by saying aye.
All Commissioners: Aye.
Chairman Alan Silverstein: Opposed, same sign. I want to thank everybody who has sat in on the meeting. If anybody wants to participate or has any information that’s germane, please get with Mr. Kelly for the next agenda. Thank you all very much. We’ll see you next month.
Unidentified Speaker: Thank you.
Unidentified Speaker: Thanks, guys.
Unidentified Speaker: Thank you
- Meeting Agenda – Unavailable
- Minutes
March 17, 2022
No Video available for this meeting.
April 21, 2022
Disclaimer: Transcripts are generated and may contain errors, including typos or misinterpretations of the spoken content, and may not follow the video content precisely. While we strive for accuracy, please verify critical information independently.
Unidentified Speaker: Eric Morett here. Robert P here. Barbara Wahl here. Al Silverstein here. I need an approval of the February 17, 2022 meeting minutes as presented.
Unidentified Speaker: I’ll move.
Eric Morett: Eric, second.
Barbara Wahl: I’ll second.
Chairman Alan Silverstein: Barbara, second. All those in favor signify by saying aye.
All Commissioners: Aye.
Chairman Alan Silverstein: Opposed, same sign. Okay, executive director’s report, Mr. Kelly.
Executive Director Jeff Kelly: Thank you, Mr. Chair. Good afternoon, everybody, and glad to be back together. It’s been two months since we’ve been together. Over the last two months, I’m giving you a total cumulative report for the last two months since we’ve last met. We had 14 different incidents of alcohol and tobacco-related events. Within that, 16 people have been charged, and we’ve made quite a few seizures. In the area of other tobacco products sticks, we’re close to 62,000 that were seized. With unstamped cigarette packs, just under 5,000. Nearly 400 containers of distilled spirits were seized, 52 containers of beer, and 837 containers of wine. These incidents have resulted from across the state. I’m just going to read off a few of the counties to give you a sense of it: Carroll, Frederick, Harford County, Allegany, Cecil, Prince George’s, Baltimore County, Baltimore City, and Washington County. So you can see these incidents take place across the entire state.
Also, this is renewal time for us. It is for the local boards. Just to give you a flavor of this again, we issue licenses to the first two tiers, the manufacturers and the suppliers, and all the local boards across the state issue licenses to the retailers. This is the time period for the retailers to issue their licenses across the state. It’s a very busy time for the local boards to issue these, and they do somewhere close to 8,000 licenses. So it’s quite a bit. And we do our licenses as well for our manufacturers and our wholesalers, just those two elements that possess our licenses. And we issue about 700 of those. They all expire April 30th to be renewed for May 1st. So we’re well underway for the renewal. We have quite a few that have already filed their renewal paperwork and will be issuing their certificates next week, printing these out next Monday if everything goes well and having them out by probably Tuesday or Wednesday in the mail. I’m going to get back to that in just a minute because I do want to make another comment on it.
We put out three training and information advisories since we last met. One of them was about the instructions for the renewal for these licenses that we issue that we’re putting out right now. We’ve found that we had to put out these advisories each month or so before we actually send out the renewal coupons. Now, years ago, to renew, you had to fill out a long four-page form to renew, and Commissioner Buck can tell you all about that. It was kind of a pain. You had to fill in a lot of boxes. It was the same thing every year. So we really shortened this up. Now it’s a coupon at the bottom of a piece of paper that you have to fill out. You have to put four things on there. We already know what license you want. You have to put out how much money you’re going to send us; that’s in one box. You have to check another box to tell us if you’re a caterer. If you’re not a caterer, you don’t need to check it. It’s very explicit. If you check it, you’re a caterer. The third box is the signature of the licensee or an officeholder of the business, and the fourth thing is the signature of the property owner. Those are the four things that are required.
Out of the 700 renewals that we sent out and received back, 400 of them were missing at least one of those items. Now, when we send out these advisories, we send them out saying we’ve done this now. This is our third time. This is our third go-round. Here’s what we’re seeing as errors. Please don’t clip the coupon off of the advisory that we’re giving you and send that in. We send you a personalized advisory in the mail. We give them very explicit instructions that are only four steps: make sure you’ve done the following. And still, 57% of them are not correct.
So here are our options: last year, we fixed everything. This year, we’re fixing it again. Against my better judgment, really, we’re fixing them again because it’s just faster for our team to fix the 400 errors than it is to let people really just not be renewed and have 400 license holders not have licenses, which is tempting but probably not realistic. So we’re fixing all of those. We’ll have all of those done and completed by the week’s end, by tomorrow or early Monday, so that we renew our licenses and everybody will be up to date. But it’s a real problem. And again, it’s such a simple process now, and it’s kind of a maddening problem. So that is why we waste some of our advisories that we do each year to give these very explicit instructions. So I say that because you’re going to hear me mention these a couple of times throughout the year.
So that was one of them. We issued an instruction sheet saying please work really hard to try and get this right. The second one was about really emphasizing to tobacco retailers a lot of violation increases. As I mentioned, we seized almost 62,000 sticks of OTP, other tobacco products. That’s a lot. And we’re seeing a lot of that. We’re seeing more loose cigarette sales, we’re seeing more unstamped cigarette sales through our regular retailers and businesses in the state. So the second one we addressed directly to these retailers and said, hey, look, here are the rules. Here’s where you get your tobacco from. You have to buy cigarettes from this entity, and here’s what they have to look like, and they’ve got to have the stamp on it. You have to buy other tobacco products from these entities; they’re the only ones allowed to sell in Maryland. And never may you ever open up a pack of cigarettes and sell cigarettes individually. You may not. We’re seeing a lot of it, and we’re charging for it. So we were kind of putting people on notice that we’re not lightening up on the enforcement side. So please do your best to tighten up.
Then our third advisory that was put out was another reminder of how to fill out these coupons to our direct wine shippers. These are people who have permits from outside, a few inside of the state and mostly outside of the state, to sell wine directly from their wineries. There are several conditions that exist in order to be a direct wine shipper. If you meet those conditions, then you’re allowed to ship directly to a consumer in our state. And we probably have somewhere around 1,200 of these that are across the country. So we’re getting those that expire on June 30th and renew on July 1st. We sent out an advisory just recently to let them know you’re about to get this coupon. Please pay attention to the just a couple of areas you have to fill out. Pay a lot of attention. If you don’t, you will be delayed in getting a new one and really just kind of putting them on alert, making them be responsible for this themselves.
So that’s the advisories. Next month, the dust is still settling around the general assembly’s work this year and the governor’s decisions on what he’s going to do with many of the bills. Next month, we’ll have a very detailed presentation on what bills passed, which ones were kind of significant and maybe didn’t pass. We’ll answer any questions you have. So we’ll put together a fairly decent presentation for you for that for next month. But in the meantime, a couple of things that were interesting for us passed.
One, we had our two budget hearings and our budget bill, and we really flew through. And the chairman was there for both of those hearings, and thank you, Mr. Chair, for being present for that. It makes a big difference, you know, as he would tell you. I think they were very easy hearings for us, fortunately, this year. We’ll take that. And the question from both committees, really the big question for both committees was, is that enough money? Because the governor allocated a decent increase for us and it’s been well either has been or will be appropriated very soon, effective July 1st. The long and short of it is it’s giving us seven new sworn agent positions, which we sorely need, and an additional non-sworn non-agent administrative position in the office, which again we really need. And for those who visited, you see how busy a handful of people are doing these licenses, keeping up on that. So it was great for us for the budget. I love the general assembly’s questions of, is that enough? Do you need more? And I’m excited to go back next year if we’re able to accomplish even more and say, yeah, we were wrong, we did need some more, and we’d like to get that.
So that went well. Another bill was House Bill 1253. That was really just a corrective bill, but just to give you a sense of it, in moving the ATC and all the responsibilities from the comptroller to its individual commission, independent commission, all throughout the tobacco regulations, the tobacco laws, alcohol regulations, alcohols, all throughout those, it mentions comptroller. And when the general assembly created us, they said essentially we expect the ATC to be the successor agency everywhere we say the comptroller will do something relative to the regulation or enforcement of alcohol and tobacco, we mean the ATC. And there are tons of places in all the laws and regs that still say comptroller. So each year we go through and we try to clean it up. This House Bill 1253 went a long way toward that. If you care to take a look at it, it reads pretty easily, but it goes through a variety of areas in the tobacco tax law and in the alcohol tax, I’m sorry, tobacco law and the alcohol law to just migrate responsibility, specifically stating the ATC is responsible and may do a variety of things relative to that.
We’ve been undergoing a transformation in the COMAR, which are the Code of Maryland Regulations, the regs that we enact. They all live within the house of the comptroller still. We are about a month away, maybe less, from completing the conversion of those regs from the comptroller to us as an independent agency. There are really not going to be any substantive changes. Everything that was in regulation before, even though some of it needs to be fixed or modernized or updated, it’s not going to happen now. We’re just simply taking the time now to move everything so we don’t have to go through a lot of hearings. We’re just moving identical information over to us. Once we get it, we’re going to undergo a massive reevaluation of our regs and see what needs to be updated. Of course, we’ll keep you informed and bring you in on all these as we’re moving along. But that’s the intent over some time. Truthfully, it’ll probably be after June or July because it may take that long logistically to move all the regs under the ATC.
And the last thing is cannabis. We’ll have more to report on that next month as well. But it was an interesting year. House Bill 1, which sets cannabis up for a referendum to the states, I’m sorry, to the citizens of the state, passed and will be voted on in November. And my understanding is it’s like in the mid-70s, polls indicate that the population is supportive of cannabis. So there’s a good likelihood that that would pass. It doesn’t do anything except to say do we support this or not, generally speaking. Then another bill was House Bill 837. That bill spent a lot of time going through expungements and starting to set up in a very small way, starting to set up some framework for policy about how we’ll handle cannabis, but it really didn’t get into that so much. But one of the interesting things in the uncodified section of it, and specifically section 8, it said if this bill does, if House Bill 1 and the referendum pass, then effective, I believe it’s January 1st, 2023, the medical cannabis commission will migrate under the office of the executive director. So we’re going to have that to deal with if that passes, at least elements of it. I’m not really sure how much of it, we’re going to have to dissect that. But next week, we’ll be meeting with the Cannabis Commission executive leadership and trying to figure out what that really means and what it will look like. But it does talk about us sort of absorbing that commission, at least elements of it, and how we should make that happen. And next month, we’ll have a bigger presentation on the outcome of the cannabis legislation as well.
Our website, you know, our website’s not great, but we’re working on it. We are in discussions with the state’s Department of Information Technologies, which is called DoIT, and also the comptroller’s information technologies division. Either of those may be eligible or be able to do the website for us. We’re looking at both of them to see what they can offer, where we reasonably should be expecting to live. We still use a lot of the comptroller’s resources, which require us, as you all have, to have specific types of email addresses through the comptroller’s frameworks of firewalls and whatnot. So we just have to weigh all of that and figure out where we’re going. But we’re making great progress on getting a website that we all want it to be: educational, informative, useful, easy to navigate. We’re working very hard on that.
Mr. Chair, that’s it for my report. I would just add this: the chair was able to stop by a while back and we were able to get a photograph of him and an ID card issued to him. If any of you would like to get that, let me know. We have to make an appointment for you, which is not a big deal. But if it’s convenient for you and you want to do that, we’ll get you set up for an appointment because that all takes place in Annapolis. It’s very convenient and close. It’s just in another building with another entity that does it. So if you’re interested in that, let me know. We’ll get you set up for a photograph and get you your ID cards issued as well. That’s it, Mr. Chair.
Chairman Alan Silverstein: You’re muted. You’re on mute, sir. Oh, you’re on mute. You’re still muted.
Chairman Alan Silverstein: I was going to say the advantage of that is going through security, and it expedites that process. So I’d encourage you to do that. Do we have any new business?
Unidentified Speaker: Can you hear me?
Chairman Alan Silverstein: We can hear you.
Unidentified Speaker: Oh, okay. No new business. Scared me for a minute there. Do we have any other new business at this time? If not, I take a motion for adjournment.
Unidentified Speaker: I’ll move.
Eric Morett: Second, Morett.
Unidentified Speaker: Second by Miss Buck. All those in favor signify by saying aye.
All Commissioners: Aye.
Chairman Alan Silverstein: Opposed, same sign. I want to thank everybody who has sat in on the meeting. If anybody wants to participate or has any information that’s germane, please get with Mr. Kelly for the next agenda. Thank you all very much. We’ll see you next month.
Unidentified Speaker: Thank you.
Unidentified Speaker: Thanks, guys.
Unidentified Speaker: Thank you
May 19, 2022
Disclaimer: Transcripts are generated and may contain errors, including typos or misinterpretations of the spoken content, and may not follow the video content precisely. While we strive for accuracy, please verify critical information independently.
Commissioner Morat: Here.
Commissioner Robert P: Here.
Chairman Alan Silverstein: Here. I need a motion for approval of the April 21, 2022, meeting minutes.
Unidentified Speaker: I’ll move.
Commissioner Eric Morrissette: Second.
Chairman Alan Silverstein: All those in favor signify by saying aye.
All Commissioners: Aye.
Chairman Alan Silverstein: Opposed, same sign. Motion carries. Field enforcement directory report, Mr. George.
Mr. Bill George: Good afternoon, Mr. Chair. Thank you. For those on the meeting that are unfamiliar with me, my name is Bill George. I’m the director of the field enforcement division for the Alcohol and Tobacco Commission. We’ve been very busy since the last meeting.
As far as the enforcement effort goes, we’ve had eight violations that we’ve discovered working in the field. Our agents, three of which were alcohol violations exclusively, four of which were tobacco violations, and then the eighth violation was one that included both alcohol and tobacco violations. We discovered and investigated violations in a variety of different jurisdictions, which include Baltimore City, Prince George’s County, Cecil County, Harford County, Washington County, Anne Arundel County, and Montgomery County.
As a result of those investigations, our agents seized quite a bit of contraband product. That would include 4,220 packs of contraband cigarettes, 938 sticks of contraband other tobacco products, 143 containers of contraband hookah tobacco, 14,940 containers of contraband chewing tobacco and snuff, 222 containers of distilled spirits, 496 containers of wine, and 1,073 containers of beer.
These investigations also resulted in criminal charges being placed against 10 individuals. The charges ranged from transportation of both untaxed cigarettes and other tobacco products, possession of untaxed cigarettes and other tobacco products, alcohol sales without a license, and possession of untaxed alcohol products.
One of the highlights of this past month since the last meeting was our collaboration with the partners that we work with. That collaboration and partnership ranged in levels from providing support such as security during the execution of a search warrant to full operational support. Our strongest partners in just about all of our efforts are the agents and inspectors of the Comptroller Field Enforcement Bureau.
This month, along with other agencies, we had the support from the Baltimore City Police Department, the Prince George’s County Police Department, the Montgomery County Police Department, Maryland State Police, the Maryland Transportation Authority Police, and liquor board members from Baltimore City, Montgomery County, and Anne Arundel County.
One of the more pressing and ongoing investigative efforts we’ve been working on has been a, it continues to be ongoing, so while speaking in general terms, we’re working with the Baltimore City Police Department and the liquor board in the city, offering the expertise of our agents in both surveillance techniques and the enforcement of unlicensed sales of alcoholic beverages. That particular operation opened up for us the weekend of Friday, the 22nd of April, and I’m pleased to say that on that opening weekend, we were able to impact the problem that was being addressed in a positive way by carrying out an enforcement action that involved charging two individuals and a seizure of contraband alcoholic beverages.
It seems to have set the tone for the problem in the area. It’s continued since that point, and things are going well, and the ATC as a viable exceptional partner. I’m happy to say that our inspection goals as an agency of retailers of alcohol and tobacco products have exceeded our goals by the end of April.
So basically, in short, we have met all of our goals for doing our retail inspections. Anything past the end of April is going to be exceeding the goals even further and I’m sure will yield a plethora of additional enforcement action. In addition to both the inspection and enforcement action, our regulatory administrative services bureau works through a renewal period for the statewide alcohol and tobacco licenses.
In the interim between the last meeting and this meeting, those licenses expired after April 30th. As a result, I’m happy to say that our licensing unit has 619 of those licenses active and renewed for the 2022-2023 license cycle. There are still 128 licenses that continue to be pending renewal for a variety of different reasons, and we’re working through those.
Also, over in the administrative services side, the research and administrative support unit has prepared a feasibility study that’s due to the governor’s office and the General Assembly for final editing. The study is to assess the feasibility of maintaining a statewide database of all the alcoholic beverage licensees and to update that annually, and a database of individuals trained and licensed by an authorized alcohol awareness training program. I estimate by the time we meet again, that feasibility study will be complete and sometime in the interim, you will be presented with it. The commission will. That is all I have unless there are any questions.
Chairman Alan Silverstein: The only comment I would have, and I think fellow commissioners would echo it, we think the staff is doing an outstanding job meeting and exceeding those goals, and we know it’s due to the leadership on all levels. We thank you all very much for what you’re doing on behalf of the Alcohol and Tobacco Commission.
Mr. Bill George: Thank you, Mr. Chair. I appreciate that. I’ll yield back to you, Mr. Chair.
Chairman Alan Silverstein: Okay. We’re going to have a legal and legislative report. Tom?
Tom: Thank you, Mr. Chair. Prior to me beginning, I see that Roman numeral two on the agenda is approval of the April 21, 2022, minutes. I don’t know if the commission had an opportunity to approve those minutes. I just don’t want to necessarily skip an agenda item. I’ll defer to you.
Chairman Alan Silverstein: I think we did approve those minutes.
Tom: Those were okay. Sorry, I apologize.
Chairman Alan Silverstein: Thank you for trying to keep us on track.
Tom: I’m going to now share my screen. I apologize if there’s a delay. I am much more Zoom-oriented, but I’m going to go ahead. Can everyone see my screen right now?
All Commissioners: Yes.
Tom: Great. I’m going to go through these materials. This is essentially all of the alcohol, tobacco, cannabis, and legislation that was passed or did not pass this past legislative session. I’ll also provide an update to the commission on our alcohol compliance bulletin, our COMAR update, and our MOU update. Please bear with me and we will go through all of these items.
First, we’ll jump into alcoholic beverage legislation. The first bill that passed, and it had actually been introduced a number of times, was House Bill 7, Senate Bill 772, and House Bill 324. This bill requires that a study be conducted by the Governor’s Office of Small, Minority, and Women-Owned Businesses for the purposes of gauging minority participation in the wineries, distilleries, and breweries industry. This bill had been introduced three times prior and it just didn’t get across the finish line. This year it did. The Alcohol and Tobacco Commission will be involved in the study. I believe the process starts at the beginning of the new fiscal year and we’ll keep the commission abreast of any developments with the study.
Senate Bill 476 and House Bill 550 was an extension of the direct shipping ability of Maryland’s breweries, distilleries, and wineries. If you recall, during the COVID-19 pandemic, there was a Governor’s executive order which granted the ability to do direct shipping from the manufacturer to the customer during the pandemic. Once the executive order was rescinded, there was legislation passed in 2021 which allowed for the shipping privilege to continue until the end of this year, this calendar year. This legislation extended it out until June 30, 2022.
The next bill is Senate Bill 569 and House Bill 924. This is a very nuanced bill dealing with Maryland wineries. Most generally, Maryland wineries have to use at least 51% of their grapes or grape juice used in the manufacturing of wine from Maryland. If they can’t meet that threshold, they have to get a waiver, and they’ve extended the deadline for the waiver until 2024. Senate Bill 594 and then we’ll cover Senate Bill 698 and House Bill 854 together. Senate Bill 594 creates the Winery and Vineyard Economic Development Grant Program. Essentially, this is a new fund for wineries to recuperate some of the capital investment costs they are either going to outlay in the future or they’ve already outlaid. It requires the Department of Commerce to come up with criteria and guidance on awarding these monies.
Senate Bill 698 and House Bill 854 creates a new commission and reconstitutes a current commission, the Maryland Alcohol Manufacturing Advisory Commission, formerly called the Advisory Commission on Maryland Wine and Grape Growing. This commission used to provide information to the Director of Agriculture as to whether or not certain thresholds were met so that wineries could get a waiver for that 51% rule. This bill includes wineries, breweries, and distilleries and creates a fund to issue grants to nonprofits and local jurisdictions to promote the winery, brewery, and distillery industries. This could be tours, information to grape growers on how to grow certain strands of grapes or barley for breweries. It’s a pretty interesting grant program, and we’ll see how it plays out after July 1. The Alcohol and Tobacco Commission will be part of recommendations to the Department of Agriculture.
House Bill 1253 was a cleanup bill. As part of House Bill 1052 passed in 2019, the powers formerly held within the Comptroller’s Office and the field enforcement division were transferred over to the Alcohol and Tobacco Commission. While that first piece of legislation dealt with a lot of alcohol and tobacco laws, there are still quite a few Alcohol and Tobacco laws which need to be amended to ensure that the appropriate powers and authority are with the Alcohol and Tobacco Commission. So House Bill 1253 was a part of that, taking some tobacco regulations and putting them within the ambit of the Alcohol and Tobacco Commission. It also allows the Alcohol and Tobacco Commission to enter into MOUs, particularly the office of the executive director with other agencies, state and federal, in order to continue to enforce alcohol and tobacco regulations and state laws.
Here are some statewide bills just briefly that didn’t pass. There was another grocery bill, and for those of you who are not familiar, there’s been a push in the legislature the last couple of years to have a conversation to allow grocery stores to sell beer and wine. We had a couple of bills dealing with that, House Bill 506 and House Bill 858. They did not make it out of committee. They did not receive favorable reports. Another bill was Senate Bill 793, the ready-to-go cocktails. You see them at your local liquor store. They are like the margarita in a can. Currently, those are taxed at spirit levels, which are $1.50 per gallon. The industry wanted to have this product taxed at the beer rate, which is essentially 40 cents per gallon. That did not come out of committee, so this is still an ongoing conversation.
Some local bills that did not pass. There was a bill in Montgomery County that would have awarded a Class D beer and wine license, a retail license to a Class 8 farm brewery. It would have allowed the farm brewery to sell other people’s beer and wine, and that was looked at as something that was undermining the three-tier system. In Washington County, there was House Bill 1117, which would have allowed retail establishments, B licenses, C licenses, D licenses to buy from other retailers. This would wholly undermine the three-tier system. That was defeated as well.
Tobacco-related legislation. There was no major tobacco-related legislation that passed the General Assembly this year. There were a few bills out there that would have allowed local jurisdictions to regulate the sale and distribution of cigarettes and electronic smoking devices, but those bills died in committee. There was one that would have allowed local jurisdictions across the state, one that would have allowed this privilege in Baltimore City, and then in Prince George’s County, there was some other legislation introduced late in the session that would have limited other tobacco product licenses from being issued specifically in Prince George’s County.
Now, on to the cannabis-related legislation. House Bill 1 is a constitutional amendment that is going to be before the voters this November 2022. It asks a simple question: Do you favor the legalization of the use of cannabis by an individual who is at least 21 years of age on or after July 1, 2023, in the state of Maryland? If that referendum passes, then we come back to House Bill 837, which kicks off a lot of other things. There are funds created by this piece of legislation, amendments to the criminal law article dealing with penalties for possession of cannabis, some tax write-offs for 2022, and it requires a number of studies to be conducted by the Maryland Medical Cannabis Commission.
There is a section in the uncodified language which requires the Maryland Medical Cannabis Commission and the Alcohol and Tobacco Commission to conduct a study on how the Maryland Medical Cannabis Commission comes under the ambit of the office of the executive director of the Alcohol and Tobacco Commission. I want to thank Will Tilburg, the executive director of the Maryland Medical Cannabis Commission. We’ve met with that organization twice already and are set to meet again next week to have an ongoing conversation as instructed by the legislature to see how we combine those organizations and make recommendations to the legislature. That recommendation is due by January 2023.
Some other statewide bills that did not pass. Senator Feldman’s bill created a regulatory structure and taxing structure for cannabis contingent on the passage of the constitutional amendment. It did not pass, but some recommendations made it into House Bill 837. Senator Carter and Delegate Moon’s bills would have been straight legalization and created a structure for taxing and regulation, but they did not pass. The conversation on cannabis is postponed, and we will have a fuller conversation on taxing and regulation in 2023 if the constitutional amendment is approved by voters.
I’ll now move on to the alcohol compliance bulletin. This past Monday, we issued Alcohol Compliance Bulletin 22001. Before the constitution of the Alcohol and Tobacco Commission, the field enforcement division of the Comptroller’s Office used to issue advisories, releases, and bulletins on tobacco and alcohol-related matters. We are carrying over that structure, rebranding it, and renaming it. Specifically, this bulletin provides interpretive guidance to stakeholders on regulations. It’s one thing to read a regulation, but we want to make this information as accessible as possible.
In our most recent bulletin, we looked at social media and the usage of social media by wholesalers and solicitors to the benefit of retailers, differentiating between promoting the product and promoting the retail establishment. Wholesalers and solicitors cannot give something of value prohibited by state law or relieve a retailer of an ordinary business expense. Creating a social media template or an advertisement for a retailer is in violation of the rules. This bulletin aims to maintain balance in the marketplace.
If there are no questions about the bulletin, I’ll move on to the COMAR update. The Alcohol and Tobacco Commission and the Comptroller’s Office have been working diligently together to recodify regulations in the name of the Comptroller to the Alcohol and Tobacco Commission. We worked with the head of law and policy for the Comptroller, Krista Surman, and we are in the final processes before submitting them to the Division of State Documents for publication in the Maryland Register. Later in the year, we will look at updating rules and regulations concerning electronic smoking devices, other tobacco products, and social media use.
Finally, the MOU update. In 2020, the legislature passed Senate Bill 911, authorizing the Alcohol and Tobacco Commission and the Comptroller’s Office to enter into an MOU for sharing information, personnel, and resources. Our current MOU with the Comptroller’s Office ends on June 30, 2022. We are drafting an amended document with minor changes due to the passage of House Bill 1253. Once reviewed by the Attorney General and Comptroller’s Office, we will present it to the commission for final review and signature.
Does anyone have any questions?
Chairman Alan Silverstein: Any new business?
Unidentified Speaker: No new business.
Chairman Alan Silverstein: Thank you for an excellent presentation. Thank you, Mr. George, for stepping in today for our executive director. Commissioner Morat, Commissioner Robert P, thank you for making a quorum. We look forward to seeing everyone next month. I need a motion for adjournment.
Unidentified Speaker: Motion.
Unidentified Speaker: Second.
Chairman Alan Silverstein: All those in favor signify by saying aye.
All Commissioners: Aye.
Chairman Alan Silverstein: Motion carried. Thank you all. Have a great month.
June 16, 2022
Disclaimer: Transcripts are generated and may contain errors, including typos or misinterpretations of the spoken content, and may not follow the video content precisely. While we strive for accuracy, please verify critical information independently.
Commissioner Morrissette: Here.
Commissioner Wahl: Here.
Chairman Alan Silverstein: Here. I need a motion for approval of the May 19, 2022, meeting minutes.
Unidentified Speaker: I’ll move.
Commissioner Morrissette: Second.
Chairman Alan Silverstein: All those in favor signify by saying aye.
All Commissioners: Aye.
Chairman Alan Silverstein: Opposed, same sign. Motion carries. Field enforcement director’s report, Bill.
Mr. Bill George: Thank you, Mr. Chair. Good afternoon, Commissioners and everyone else who’s on the meeting. It’s an honor to speak with you this afternoon. We’ve had a very active period since our last meeting.
Our enforcement agents working in the field have discovered 14 separate violations since that meeting. Eight of which were in retail inspections, one was an inspection of a statewide alcohol permit holder, one was an out-of-state surveillance operation that resulted in a violation, and four separate surveillance operations that revealed street vendors of alcoholic beverages. There were six alcohol violations and eight tobacco violations.
The jurisdictions where these violations were discovered include Baltimore City, Baltimore County, Prince George’s County, Garrett County, and Montgomery County. As a result, our agents seized 294 packs of untaxed cigarettes, 55,783 sticks of other tobacco products, and seven containers of distilled spirits. These violations resulted in investigations that led to 15 separate individuals being charged with criminal violations ranging from possession of untaxed cigarettes and other tobacco products, alcohol sales without a license, to possession of alcoholic beverages from other than a wholesaler in a retail establishment.
In addition to the inspection and enforcement activities, our regulatory administrative services bureau licensing unit issued 187 licenses and permits since our last meeting. We have also been busy preparing a new application for remote tobacco sellers’ licenses. The application is in a final approved state and is currently in the Comptroller’s forms group for final adjustments. It will soon be available online. The license cycle is new and will begin July 1st.
Last month, I spoke of a feasibility study that we were working on and was due to the Governor’s office and the General Assembly. I expected to have it to you prior to or be able to present a version of it to you during this meeting, but due to staffing issues with key members involved in the production of that being out on extended sick leave, it’s not complete. However, that particular feasibility study looks at the feasibility of maintaining a statewide database of all alcoholic beverage licenses to be updated annually and a database of individuals trained and licensed by authorized alcohol awareness training programs. I hope to have the final version to you soon.
As far as enforcement goes and the activities of our administrative services bureau, that’s it for me. If you have any questions, I’m glad to entertain them.
Chairman Alan Silverstein: What is a remote tobacco seller’s license?
Mr. Bill George: It is a license now required for anyone who wants to sell premium tobacco, pipe tobacco, or premium cigars into the state from out of state. Previously, it could be done but didn’t require this license. We are requiring a license now and some other tax implications relative to that, which the Comptroller’s office is requiring. But for a business to sell into the state from out of state those products, the premium cigar and the pipe tobacco, there’s now a license required.
Unidentified Speaker: I had a quick question to that as well. Is that regulatory or legislative?
Mr. Bill George: That particular license was created by legislation and goes into effect July 1st, 2022.
Chairman Alan Silverstein: Thank you. You’re welcome.
Chairman Alan Silverstein: Legal and legislative director report, Tom?
Tom: Thank you, Mr. Chair. Members of the commission, just very quickly to give the commission an update. If you recall, I discussed last meeting House Bill 837 which required the Alcohol and Tobacco Commission and the Maryland Medical Cannabis Commission to work together to create recommendations for the structure of an agency if the legislature intends to take the Maryland Medical Cannabis Commission and put it under the Alcohol and Tobacco Commission. The study is due at the end of December 2022. We are making some headway and some progress, and when we put things down to paper, we will share with the commission some of the preliminary findings that we’ve made in cooperation with the Maryland Medical Cannabis Commission. We’re not at that stage yet; we’re early in the discussions, but we just want to let the commission know those discussions are ongoing and will continue throughout the summer.
The next matter is the rules and regulations update. As the commission was made aware last month, the Alcohol and Tobacco Commission representatives, the office of the executive director, his staff, as well as the head of law and policy from the Comptroller’s office, have been working together over the last couple of months to do a recodification of the current COMAR regulations that are in the name of the Comptroller but actually pertain to the Alcohol and Tobacco Commission that does those actual things in terms of monitoring trade practices within the Alcohol and Tobacco industry. We’ve recodified that language and submitted it to the Attorney General’s office for review. It’s currently being reviewed right now. We should have a final stamp of approval within the coming weeks. At that time, we will submit those draft rules and regulations to the division of state documents for approval and publication in the Maryland Register.
This part one is just a recodification. Part two will be building out something more robust, where the Alcohol and Tobacco Commission hasn’t necessarily addressed areas like electronic smoking devices, other tobacco products, alcohol awareness, and tweaks that we could see in the rules and regulations. But that’s more of a second half of the year task. The first half of the year is just to ensure that we get these COMAR regulations in the name of the Alcohol and Tobacco Commission so that our authority to regulate in these matters is clear.
If anybody has any other questions, I’ll move to the next matter.
As to Commissioner Morrissette’s question raised at the last meeting regarding shelf stocking, we had talked about bulletins and things that the agency does, and we specifically discussed shelf stocking and we would discuss that specific issue at today’s meeting. I created a very quick PowerPoint presentation to roll through just to give more information to the board and stakeholders regarding shelf stocking. If nobody has any preliminary questions, I’ll move on to share my screen.
Can everybody see my screen?
All Commissioners: Yes.
Tom: Great. We’re going to talk about wholesaler-retailer relationships, services to a retailer, shelf management, and then finally shelf stocking. The law is clear on the prohibitions between wholesalers and retailers, as stated in 23-315 of the Alcoholic Beverages Article. It restricts a wholesaler from having a financial interest in a licensed retail establishment and prevents the wholesaler from giving a thing of value, a gift, or a gratuity to a retailer. The retail dealer also cannot accept or receive a gift or advertisement provided by a wholesaler. This rule aims to maintain a fair playing field in the marketplace.
Shelf management concepts and programs benefit the licensed retailer in marketing all of the retailer’s products. These include data provisions on sales, shelf management plans, designs, and schemes. Wholesalers can provide written plans, create diagrams and blueprints, and provide sales information. However, they cannot implement these plans or physically participate in stocking or rearranging shelves.
Shelf stocking is different from shelf management. A wholesaler is strictly prohibited from stocking shelves, pricing items, and arranging products. They may rotate products to ensure freshness but cannot open cases, place individual bottles on shelves, or rearrange alcoholic beverages in storage and sales areas. The exceptions are for beer, malt beverages, wine coolers, and spirit coolers due to their limited shelf life. Wholesalers can dust their own products but cannot use dusting as a guise for stocking shelves.
Does anybody have any questions?
Commissioner Morrissette: Can we make this presentation available on our website?
Tom: Yes, we are working on our website and will include this presentation as part of our educational information for stakeholders and citizens of Maryland.
Unidentified Speaker: Thank you, Tom. That was very thorough. This is a tough subject in our industry. Large retailers try to push distributors around to make us do this, and we appreciate these rules and regulations because it stops us from being pushed around and keeps things fair for the smaller liquor stores.
Randy: Tom, this was a great presentation. One question that might come up is regarding wine vintages. Sometimes you’ll have a 2022 vintage on the shelf but a 2021 vintage behind it. Can wholesalers rotate these products to ensure the correct vintage is visible?
Tom: That’s a great question. The rules currently allow for rotation of beer, malt beverages, wine coolers, and spirit coolers due to limited shelf life. This exception has not traditionally been applied to spirits and wine. Wholesalers can provide shelf management plans to retailers, advising them on how best to rotate these products. The distinction is that products with a specific expiration date can be rotated by wholesalers, but other products like wine should be managed by the retailer’s staff.
Chairman Alan Silverstein: Thank you. Any other questions or comments?
Unidentified Speaker: No additional questions.
Chairman Alan Silverstein: New business. The memorandum of understanding for FY 2022. Each of the Commissioners received a copy of the MOU among the Comptroller of Maryland, the Alcohol and Tobacco Commission, and the Executive Director of the Alcohol and Tobacco Commission. This MOU lays out the roles and responsibilities, how equipment is shared, and how everything is moved through COMAR and the legislation created in 2019. If there are no questions, we need to approve it, and I need to put my signature on it. I ask for a motion to approve the MOU.
Unidentified Speaker: So moved.
Unidentified Speaker: Second.
Chairman Alan Silverstein: All those in favor signify by saying aye.
All Commissioners: Aye.
Chairman Alan Silverstein: Opposed, same sign. Motion carries. I will sign this and get it over to you, Tom. Thank you. Any other matters to bring before the commission?
Tom: The Comptroller’s office is in its final stages of review of the MOU, and it was approved by the Attorney General. If there are any changes, I will let you and the commission know.
Chairman Alan Silverstein: Motion for adjournment?
Unidentified Speaker: So moved.
Unidentified Speaker: Second.
Chairman Alan Silverstein: All those in favor signify by saying aye.
All Commissioners: Aye.
Chairman Alan Silverstein: Opposed, same sign. Thank you all for joining us. See you next month.
Unidentified Speaker: Thank you. Have a good one.
Unidentified Speaker: Thank you.
July 21, 2022
Disclaimer: Transcripts are generated and may contain errors, including typos or misinterpretations of the spoken content, and may not follow the video content precisely. While we strive for accuracy, please verify critical information independently.
Chairman Alan Silverstein: It is now 3:00. We’re going to open the meeting with a roll call. We’ll start with Commissioner Buck.
Commissioner Buck: Here.
Commissioner Morrissette: Here.
Commissioner Robert P.: Here.
Commissioner Wahl: Here.
Chairman Alan Silverstein: Here. I need a motion for approval of the June 21, 2022, meeting minutes.
Unidentified Speaker: I’ll move.
Commissioner Morrissette: Second.
Chairman Alan Silverstein: All those in favor signify by saying aye.
All Commissioners: Aye.
Chairman Alan Silverstein: Opposed, same sign. Motion carries. We have Mr. George with us today substituting for the executive director. You want to start off with the enforcement activity, sir?
Mr. Bill George: Thank you, Mr. Chair. I’ll be glad to do that. Good afternoon, Commissioners and all attendees. It’s been, as usual, very active for our field operations bureau, our officers out in the field doing inspection and enforcement.
During the period since our last meeting, they discovered 13 separate violations. Twelve of which came as a result of retail inspections of both alcohol and tobacco retailers. One was an undercover purchase of alcohol from an unlicensed establishment that resulted in the execution of a search warrant. One of those inspections escalated to a second search as a result of a search warrant of a vehicle parked on the curtilage of a business. There were two alcohol violations and eleven tobacco violations.
The jurisdictions where our enforcement activity occurred include Baltimore City, Prince George’s County, Anne Arundel County, Allegany County, Washington County, and Wicomico County. They yielded a plethora of different contraband products including 3,210 packs of untaxed cigarettes, 97,519 sticks of untaxed other tobacco products, 54 containers of infused distilled spirits with fruit juices in pouches, 61 containers of distilled spirits, 190 containers of beer, and 24 containers of wine. These investigations resulted in 15 individuals being charged with various criminal violations ranging from possession of untaxed cigarettes and other tobacco products, selling other tobacco products at retail from a source other than a licensed wholesaler, and alcohol sales without a license.
Additionally, our regulatory administrative services bureau has been active during this period. Since the last meeting, we’ve been renewing our direct wine shipping permits and our common carrier permits. We’ve renewed 1,041 of those. Additionally, we’ve issued 246 other licenses during that period. They also published a training and information advisory that went out through the gov delivery system, and it was the first of this fiscal year, so it’s numbered 23001. That went out on Friday, the 15th. It was due to multiple inquiries from the alcohol industry seeking guidance and asking questions about our class six limited wine wholesalers license and our class seven limited beer wholesalers license. It provided clarification of the privileges and limitations of both licenses along with identifying other commonly observed trade practice violations among those license types.
The gov delivery system is an interesting method of getting it out to subscribers that are interested, whether they’re in the industry or any interested parties. It allows us to track the percentage of deliveries that are successful and the number of subscribers who open the attachment. This particular advisory went out Friday afternoon fairly late in the day. As of about an hour ago, it was 99% successful in the deliveries and 37% of the subscribers opened the attachment. I was hoping it would be higher, but it’s 37% at this point.
Our executive team has continued to meet as a work group with the Maryland Medical Cannabis executive team. The report is due to the General Assembly. The report details recommendations from both agencies on how we can effectively combine ensuring operational efficiency without negatively impacting pay, benefits, rights, and pensions of the employees. It’s due in December of this year, and we’re running ahead of schedule. The report will be done well in advance of the due date.
Our executive team here at the Alcohol and Tobacco Commission was invited by one of the state Maryland-licensed industry members within the medical cannabis industry for a presentation and a tour. Myself and my colleagues Tom Akras and Jeff Hann took a tour. This particular licensee has a license as a grower, manufacturer, processor, and dispensary. They have all three classes of the license. They took us through a very informative presentation and tour of all three facilities. It was fascinating and impressive with their commitment to quality control within all three facilities and the integrity of their brand and product lines. I look forward to the challenge ahead if we become their regulators. It was truly an eye-opening experience.
I have some new business to discuss. Our office has been contacted by a representative of the University of Maryland. They were looking for guidance regarding their development of a fermentation science program that will have classes such as viticulture, enology, brewing, distilling, and corresponding sensory analysis labs. The guidance they were looking for was whether there might be a workaround or exception to allow students under 21 years of age in those classes or labs to essentially “sip and spit” alcoholic beverages without consuming them as part of the curricula. My colleague Tom Akras conducted thorough research on that request and prepared a comprehensive response. Essentially, there is no exception to the law, and it would be unlawful to do what they want to do in the classroom at this point. That type of exception exists in other parts of the country. Our executive team feels this would be a great opportunity for the commission to get involved, potentially working with the University of Maryland on legislation that could create such an exception or simply weigh in.
Mr. Chairman, that is all I have. I’ll yield back to you unless you have any questions.
Chairman Alan Silverstein: Let’s discuss the new business right now, please.
Mr. Bill George: Our office has been contacted by a representative of the University of Maryland regarding their development of a fermentation science program. They wanted guidance on allowing students under 21 years of age in those classes or labs to “sip and spit” alcoholic beverages as part of the curricula. My colleague Tom Akras researched this request and found that there is no exception to the law, and it would be unlawful. An exception exists in other parts of the country, and our executive team feels this is an opportunity for the commission to get involved.
Mr. Kelly and I have discussed this, and we believe all five commissioners can react to whatever is proposed and drafted by our staff and then make a recommendation. If that is okay with the rest of you.
Commissioner Morrissette: Yes, I agree.
Chairman Alan Silverstein: Thank you. Any other questions or comments?
Unidentified Speaker: No additional questions.
Chairman Alan Silverstein: Any new business?
Unidentified Speaker: No new business.
Chairman Alan Silverstein: Motion for adjournment?
Unidentified Speaker: So moved.
Unidentified Speaker: Second.
Chairman Alan Silverstein: All those in favor signify by saying aye.
All Commissioners: Aye.
Chairman Alan Silverstein: Opposed, same sign. Thank you all for joining us. See you next month.
Unidentified Speaker: Thank you.
Unidentified Speaker: Thank you.
August 18, 2022
Disclaimer: Transcripts are generated and may contain errors, including typos or misinterpretations of the spoken content, and may not follow the video content precisely. While we strive for accuracy, please verify critical information independently.
Chairman Alan Silverstein: It is now 3:00. We’re going to open the meeting with a roll call. We’ll start with Commissioner Buck.
Commissioner Buck: Here.
Commissioner Morrissette: Here.
Commissioner Robert P.: Here.
Commissioner Wahl: Here.
Chairman Alan Silverstein: Here. I need a motion for approval of the July 21, 2022, meeting minutes.
Unidentified Speaker: I’ll move.
Commissioner Morrissette: Second.
Chairman Alan Silverstein: All those in favor signify by saying aye.
All Commissioners: Aye.
Chairman Alan Silverstein: Opposed, same sign. Motion carries. We have Mr. George with us today substituting for the executive director. You want to start off with the enforcement activity, sir?
Mr. Bill George: Thank you, Mr. Chair. I’ll be glad to do that. Good afternoon, Commissioners and all attendees. It’s been, as usual, very active for our field operations bureau, our officers out in the field doing inspection and enforcement. During the period since our last meeting, they discovered 13 separate violations. Twelve of which came as a result of retail inspections of both alcohol and tobacco retailers. One was an undercover purchase of alcohol from an unlicensed establishment that resulted in the execution of a search warrant. One of those inspections escalated to a second search as a result of a search warrant of a vehicle parked on the curtilage of a business. There were two alcohol violations and eleven tobacco violations.
The jurisdictions where our enforcement activity occurred include Baltimore City, Prince George’s County, Anne Arundel County, Allegany County, Washington County, and Wicomico County. They yielded a plethora of different contraband products including 3,210 packs of untaxed cigarettes, 97,519 sticks of untaxed other tobacco products, 54 containers of infused distilled spirits with fruit juices in pouches, 61 containers of distilled spirits, 190 containers of beer, and 24 containers of wine. These investigations resulted in 15 individuals being charged with various criminal violations ranging from possession of untaxed cigarettes and other tobacco products, selling other tobacco products at retail from a source other than a licensed wholesaler, and alcohol sales without a license.
Additionally, our regulatory administrative services bureau has been active during this period. Since the last meeting, we’ve been renewing our direct wine shipping permits and our common carrier permits. We’ve renewed 1,041 of those. Additionally, we’ve issued 246 other licenses during that period. They also published a training and information advisory that went out through the gov delivery system, and it was the first of this fiscal year, so it’s numbered 23001. That went out on Friday, the 15th. It was due to multiple inquiries from the alcohol industry seeking guidance and asking questions about our class six limited wine wholesalers license and our class seven limited beer wholesalers license. It provided clarification of the privileges and limitations of both licenses along with identifying other commonly observed trade practice violations among those license types.
The gov delivery system is an interesting method of getting it out to subscribers that are interested, whether they’re in the industry or any interested parties. It allows us to track the percentage of deliveries that are successful and the number of subscribers who open the attachment. This particular advisory went out Friday afternoon fairly late in the day. As of about an hour ago, it was 99% successful in the deliveries and 37% of the subscribers opened the attachment. I was hoping it would be higher, but it’s 37% at this point.
Our executive team has continued to meet as a work group with the Maryland Medical Cannabis executive team. The report is due to the General Assembly. The report details recommendations from both agencies on how we can effectively combine ensuring operational efficiency without negatively impacting pay, benefits, rights, and pensions of the employees. It’s due in December of this year, and we’re running ahead of schedule. The report will be done well in advance of the due date.
Our executive team here at the Alcohol and Tobacco Commission was invited by one of the state Maryland-licensed industry members within the medical cannabis industry for a presentation and a tour. Myself and my colleagues Tom Akras and Jeff Hann took a tour. This particular licensee has a license as a grower, manufacturer, processor, and dispensary. They have all three classes of the license. They took us through a very informative presentation and tour of all three facilities. It was fascinating and impressive with their commitment to quality control within all three facilities and the integrity of their brand and product lines. I look forward to the challenge ahead if we become their regulators. It was truly an eye-opening experience.
I have some new business to discuss. Our office has been contacted by a representative of the University of Maryland. They were looking for guidance regarding their development of a fermentation science program that will have classes such as viticulture, enology, brewing, distilling, and corresponding sensory analysis labs. The guidance they were looking for was whether there might be a workaround or exception to allow students under 21 years of age in those classes or labs to essentially “sip and spit” alcoholic beverages without consuming them as part of the curricula. My colleague Tom Akras conducted thorough research on that request and prepared a comprehensive response. Essentially, there is no exception to the law, and it would be unlawful to do what they want to do in the classroom at this point. That type of exception exists in other parts of the country. Our executive team feels this would be a great opportunity for the commission to get involved, potentially working with the University of Maryland on legislation that could create such an exception or simply weigh in.
Mr. Chairman, that is all I have. I’ll yield back to you unless you have any questions.
Chairman Alan Silverstein: Let’s discuss the new business right now, please.
Mr. Bill George: Our office has been contacted by a representative of the University of Maryland regarding their development of a fermentation science program. They wanted guidance on allowing students under 21 years of age in those classes or labs to “sip and spit” alcoholic beverages as part of the curricula. My colleague Tom Akras researched this request and found that there is no exception to the law, and it would be unlawful. An exception exists in other parts of the country, and our executive team feels this is an opportunity for the commission to get involved.
Mr. Kelly and I have discussed this, and we believe all five commissioners can react to whatever is proposed and drafted by our staff and then make a recommendation. If that is okay with the rest of you.
Commissioner Morrissette: Yes, I agree.
Chairman Alan Silverstein: Thank you. Any other questions or comments?
Unidentified Speaker: No additional questions.
Chairman Alan Silverstein: Any new business?
Unidentified Speaker: No new business.
Chairman Alan Silverstein: Motion for adjournment?
Unidentified Speaker: So moved.
Unidentified Speaker: Second.
Chairman Alan Silverstein: All those in favor signify by saying aye.
All Commissioners: Aye.
Chairman Alan Silverstein: Opposed, same sign. Thank you all for joining us. See you next month.
Unidentified Speaker: Thank you.
Unidentified Speaker: Thank you.
September 15, 2022
Disclaimer: Transcripts are generated and may contain errors, including typos or misinterpretations of the spoken content, and may not follow the video content precisely. While we strive for accuracy, please verify critical information independently.
Chairman Alan Silverstein: Chairman Silverstein is here, so we have a quorum. We can start the meeting. We’re going to start with approval of the August 18, 2022 meeting minutes. Are there any additions or corrections to the minutes?
Unidentified Speaker: If not, I’d accept a motion.
Commissioner Buck: So moved.
Commissioner Wahl: I’ll second.
Chairman Alan Silverstein: Commissioner Buck moved, Commissioner Wahl seconded. All those in favor signify by saying aye.
All Commissioners: Aye.
Chairman Alan Silverstein: Opposed, same sign. Motion carries. Executive director’s report, Mr. Akras?
Mr. Tom Akras: Thank you, Mr. Chair. I’m just going to switch screens. We’re going to go to the PowerPoint. Can everybody see my screen?
All Commissioners: Yes.
Mr. Tom Akras: Okay, great. In our license and permitting division, just a quick executive report on the regulatory administrative Services Bureau. Since our last meeting, the regulatory administrative Services Bureau has issued 55 licenses and/or permits. We also mailed out over 5,300 renewal coupons for permit year 2023. The permit period, just for the commission, is from November 1st to October 31st. These permits include the non-resident dealer permits, the solicitor permits, and the public transportation permits. We talk about three individuals doing a lot of the work here. This is just another example of the hard work that our men and women in the Licensing Division do each and every day for us.
Next, we’re going to move on to the field operations Bureau. I wanted to put to scale exactly the work that our investigators and agents are doing out there. Since our last meeting, there have been 12 incidents and investigations that resulted in criminal charges against 13 defendants. These instances included random retail inspections, targeted inspections that resulted from complaints received, an investigation and a subsequent search warrant of an unlicensed retailer of both alcohol beverages and tobacco products. The contraband included 5,153 pieces of untaxed other tobacco products. This includes cigars and containers of pipe tobacco and 2,726 packs of cigarettes. Seized alcoholic beverages included 2,586 containers of beer and 785 containers of wine. These incidents occurred in Baltimore City, Baltimore County, Frederick County, Washington County, and Prince George’s County.
5,153 sticks is a large number for the time period and it just goes to show the field operations Bureau continues to be on track and meet and exceed established goals. If none of the Commissioners have questions, I can move on to the Maryland code and COMAR update.
Unidentified Speaker: Was that large amount at that one place in Prince George’s County a liquor store? Was it an actual store?
Mr. Tom Akras: On August 28, 2022, or August 31st, the 16,000—oh, sorry—the 16,000 wine. This was the search warrant of an unlicensed retailer of alcohol and tobacco products. So this was an individual that did not have a license but was selling without a license.
Unidentified Speaker: Okay, that’s a good question.
Mr. Tom Akras: Do any other Commissioners have any other questions for me?
Chairman Alan Silverstein: Okay, I’ll move on to the next update. There’s a reason why there are people celebrating on the left-hand side of this PowerPoint slide. As the commission knows, this year, the ATC, along with the Comptroller’s office, took on the task of rewriting the rules and regulations that currently are vested with the Comptroller and transitioning them over to the Alcohol and Tobacco Commission. We submitted a copy of our proposed rules and regulations to the Administrative Executive and Legislative Review Committee on or about August 18, 2022. We were preliminarily informed that we got the okay. Just today, we received verification from the Division of State Documents that our rules and regulations are slated for publication on October 7, 2022. This means, give or take, middle of December, we’ll have final publication of our rules and regulations and we’ll be able to move forward with the authority that the legislature wanted us to have when they passed House Bill 1052.
Does anybody have any questions about that?
Chairman Alan Silverstein: After the publication of these rules and regulations, when does this take effect?
Mr. Tom Akras: That’s a good question, Mr. Chair. On October 7, the rules and regulations will be published. There will be a 30-day period for public comment, followed by another set of days for review of public comment and decision whether to incorporate or not those comments into the rules and regulations. After that time period, and this is why I’m saying estimated is December, there will be the final publication and the issuance of the rules and regulations. So, first publication for public comment October 7, final publication rules in hand, we have the ATC authority middle to end of December. Does that answer your question?
Chairman Alan Silverstein: Yes, it does. Thank you.
Mr. Tom Akras: If there are no further questions, I’ll move on to new business. This is a first for the ATC. It’s the Alcohol Tobacco Commission’s Alcoholic Beverage Summit of 2022. As per Executive Director Kelly, he wanted to have a summit where we get all stakeholders around the table to voice their opinions and their concerns regarding some of the rules and regulations that we currently have now in the books. We always talked about the rewrite of the rules and regulations being a two-step process. The first step is transferring the authority from the Comptroller to the Alcohol Tobacco Commission. The next step is to modernize our rules and regulations. There are certain issues when it comes to credit control, trade practices, delivery, technology, and advertising where we’ve heard a lot of comments and concerns raised by individuals in the industry, members of the retail faction, members of the hotel faction, just stakeholders across the board.
Through this summit, it’s our goal to come up with an agenda that outlines the topics that I mentioned and hear the concerns and the issues raised by these stakeholders. This will inform us when we go back to the drawing board and start to write out some proposed rules and regulations that can address some of the modernization issues that some stakeholders have raised. There is a link on our website, and I have the link up here right now. It’s actually a live active link on our website where you can go to an AT Summit page. In the next week, we’re going to populate that link with an agenda and some other documents related to the summit. If there are any questions specifically about the summit, we have an email address that we’ve created. It’s down at the bottom of your screen, ATCSummit2022@MDc.gov. We ask that you would email any of your questions or concerns specifically about the summit to that email address. Both Jeff Hann, the assistant director of the Legal Legislative Division, and myself will have access to that email and will be responding appropriately. The meeting is going to be open to the public. It’ll be a public link. All you will need to do is click on the link and you’ll be able to access the Teams meeting. We’re excited to have this event. We want to hear from our stakeholders and this is going to help us be a better agency in terms of hearing the questions and concerns and those informing the next steps when it comes to our rules and regulations.
Do you have any questions, Commissioners, about this matter?
Unidentified Speaker: You’ll be sending us an email with all that information and providing us with the link so we can download the information prior to?
Mr. Tom Akras: Sure, sure, sure. We will be sending out something to the commission with the agenda and all the materials that I mentioned. They’ll also be available on our website as well.
Unidentified Speaker: Good, great. Thank you. Next item?
Mr. Tom Akras: The next item is the Advisory Commission on Alcohol Manufacturing. Just as a heads up to the commission, House Bill 854, Senate Bill 698 passed this legislative session and it created the Advisory Commission on Maryland Alcohol Manufacturing within the Department of Commerce. This commission replaced the Governor’s Advisory Commission on Maryland Wine and Grape Growing. This commission does a few new things. It provides oversight of the Maryland Alcohol Manufacturing Promotion Fund, which is a fund to promote the alcoholic beverages industry in the state of Maryland. It helps address issues relevant to the growth of the alcoholic beverage industry and identify strategies to facilitate the growth of viticulture, which means cultivation of grape vines and other products. So, it’s a commission that advises the Department of Commerce on these issues. It also provides consultation to the Secretary of Agriculture on whether or not to grant certain exemptions for class four limited wineries in terms of those wineries that may not have access to 20 acres of farmland or may not be able to get 51% or more of their juice from Maryland-grown grapes.
The commission itself was prior to this change in law something else. It is now something new, but in both cases, the prior commission and this commission, there was always a representative from the Field Enforcement Division with the Comptroller’s office and now with the Alcohol and Tobacco Commission. When this agency separated from the Comptroller’s office, what we would ask the commission today is to nominate an individual from the Alcohol and Tobacco Commission to sit and represent the ATC on the Advisory Commission on Maryland Alcohol Manufacturing. On the previous commission, Executive Director Kelly was the representative for the Comptroller’s office. Is that not correct?
Executive Director Kelly: That is correct.
Unidentified Speaker: I think it would be great for Jeff to continue doing it. He’s got the knowledge and he knows the players and it would be best for us, I think, for him to do it.
Commissioner Wahl: I concur with you, Commissioner.
Chairman Alan Silverstein: That sounds good to me. I will take a motion that we nominate Executive Director Kelly to represent us on the Advisory Commission on Maryland Alcohol Manufacturing. I need a motion for that.
Unidentified Speaker: So moved.
Unidentified Speaker: Second.
Chairman Alan Silverstein: I have a motion and a second. All those in favor signify by saying aye.
All Commissioners: Aye.
Chairman Alan Silverstein: The ayes have it. Please congratulate Executive Director Kelly.
Mr. Tom Akras: I will, and we will forward Executive Director Kelly’s name to the Department of Commerce as the ATC’s representative on this commission. Does anybody else who is on this call have any business to bring before the commission?
Chairman Alan Silverstein: I just want to remind everybody our next regular meeting date is October 20th at 3:00. I would take a motion for adjournment.
Unidentified Speaker: So moved.
Unidentified Speaker: Second.
Chairman Alan Silverstein: All those in favor signify by saying aye.
All Commissioners: Aye.
Chairman Alan Silverstein: Motion carries. Good afternoon, ladies and gentlemen, and thank you for joining us.
Unidentified Speaker: Thank you.
Unidentified Speaker: Thank you.
October 20, 2022
Disclaimer: Transcripts are generated and may contain errors, including typos or misinterpretations of the spoken content, and may not follow the video content precisely. While we strive for accuracy, please verify critical information independently.
Chairman Alan Silverstein: Alan Silverstein is on board. Vice-chair Barbara Wahl is here with us and secretary Robert Poole, so we have a quorum. We’re going to open the meeting, and the first thing we’re going to do is ask for approval of the September 15, 2022, meeting minutes.
Barbara Wahl: I agree.
Commissioner Morrissette: Barbara makes a motion. I’ll second the motion.
Chairman Alan Silverstein: All those in favor signify by saying aye.
All Commissioners: Aye.
Chairman Alan Silverstein: Opposed, same sign. Motion carries. Mr. Executive Director?
Mr. Tom Akras: Thank you, Mr. Chair. I appreciate that. Since our last meeting in September, there have been 13 people charged in 10 different incidents of a variety of alcohol and tobacco violations. These occurred in Garrett County, Prince George’s County, Anne Arundel, Montgomery, and Worcester counties, and Baltimore City. The totals of our seizures were 45,659 pieces of other tobacco products, 944 packages of contraband cigarettes, and 53 containers of spirits.
Regarding our licenses and permits, since our last meeting, we’ve issued 58 new licenses or permits, and October 31st is the date on which all of our general permits expire and must be renewed for November 1st. So far, of all the permits set to expire at the end of the month, 938 have renewed, and 3,841 are pending renewal.
Also, in the interim since our last meeting, we held our Alcohol Summit, and I know several of you were there, Mr. Chair and Mr. Secretary, as well as Mr. Hawk. We appreciate everybody attending that. Just to give you a sense of how successful we think it was, we had about 115 attendees, and what’s really significant about that is this thing was scheduled to last for two hours. It lasted for nearly two hours, and we had an overwhelming majority of people stay on for the whole two hours. I think there was a lot of interest, and we hit the mark. We have a lot of work to do now because this group gave us a lot of things to consider. We’re boiling that down into a few topics that we think we can actually do some work on, and we’re going to publish that list of topics within the next two weeks. We will solidify the selection of the workgroup moving forward. I expect that to be around maybe 10 to 12 people, hopefully manageable and small enough that we can actually get something done. It will be a cross-section of representation among the various industries, regulators, and a couple of at-large positions for people who aren’t necessarily affiliated in some other way but have a real desire to have some input or at least hear what’s going on.
The last thing I’d like to report on is our agency reports. Specifically, this is one that the Maryland General Assembly mandated that the Maryland Medical Cannabis Commission and the Alcohol and Tobacco Commission get together and put together a report that combines our two agencies. I’m going to do something that I haven’t done in over a year or more, and that is try to share my screen. Bear with me, and I apologize in advance for how I’m sure I’m not going to get it right, but I’m going to try because I’d like to show you this. Just this past Tuesday evening, a workgroup of the Maryland General Assembly got together to start work on cannabis, not just the medical cannabis element but consideration of adult-use cannabis should the population of Maryland approve House Bill One in the referendum on adult use.
Bear with me. I’m going to give this a shot. I make no promises.
How about now?
All Commissioners: Yes, you’re good.
Mr. Tom Akras: I accidentally got it. Great. I’m not sure if I can get back out of it again, so it might be up for a while. I’m going to go through a few slides rather quickly because all the slides aren’t going to be that important. I’ve highlighted some key points.
In House Bill One, the General Assembly stated it’s their intent that, should the citizens of Maryland pass the referendum, the Executive Director of the Alcohol and Tobacco Commission will be the successor agency. This means the Maryland Medical Cannabis Commission, as we know it, won’t exist and it will all be part of the Alcohol and Tobacco Commission.
We had a series of meetings to discuss how this merger would work. We’ve met 12 times, the most recent and last time being a week ago this past Tuesday to finalize the report. We knew we had until the end of this calendar year to get the report done, but when the General Assembly indicated they were going to meet sooner, we felt pressure to get this out well in advance of our deadline. I’m glad we started working on it early. We took into consideration all the people, equipment, and needs of both agencies.
One of the mandates was to try and find operational efficiencies. There are some things we can merge and others we can’t. We’ll keep our office space in the Treasury Building in Annapolis and the MMCC will keep its office space near the airport for now.
One point of the merger is to ensure all printed materials, letterheads, and business cards are used up before ordering new ones with the merged agency’s name.
This is what our proposed organizational chart would look like. The executive director’s position is at the top. The Field Enforcement Division, led by Bill George, will remain largely intact. The Legal Legislative Division, led by Tom Akras, will also stay intact, with assistant attorneys general from the Cannabis Commission moving into this area. The Public Health and Business Operations Division will handle procurement, HR, finance, communications, and research.
A new division, the Cannabis Regulatory Enforcement Division, will be the current Cannabis Commission moved over in its entirety, with some functions merged into the Public Health and Business Operations Division. This structure allows for uninterrupted service on day one and a period to implement any changes gradually.
There are a few areas we couldn’t combine yet, like enforcement, as our agents are sworn officers with police powers, while the Cannabis Commission’s inspectors are civilians. We might need our sworn officers to assist in some instances.
Laboratories are another area. We use the Comptroller’s Motor Fuel Lab in Jessup for alcohol testing. The MMCC uses private labs and is building a reference lab for cannabis testing.
IT services are currently separate, with us using the Comptroller’s office and the MMCC using the Department of Information Technology. We’ll figure out a way to merge these later if appropriate.
Quality assurance is more of an issue for the Cannabis Commission as they handle calls from patients and providers, which isn’t something we deal with.
That’s the end of the presentation. Now I can stop sharing. Thank you for indulging me in that long report.
Chairman Alan Silverstein: Thank you. I had the opportunity to sit in on a session, and I was very impressed with the professionalism of our staff and their staff. Hopefully, the legislature will accept it and move forward with it.
Next, we have the MDH Deputy Director report.
Dana: Hi everyone. It’s Dana. My camera isn’t working, so I guess that’s not me right now. I just wanted to provide an update. We had a great meeting with Jeff and his team last week. We were able to talk through several of the inspections and enforcement issues with tobacco retailers. We’ll be partnering moving forward.
We have three levels of inspections: FDA, Sinar, and local Health Department. The FDA contract requires us to conduct enforcement inspections across the state with underage purchasers. The Sinar program, linked to the Behavioral Health Administration, requires randomized inspections statewide. Local Health Departments conduct enforcement and educational visits. If a retailer is found to have multiple violations, they are referred to the ATC for a hearing, which can lead to license suspension or revocation.
We’re hearing that violation rates are high, so we need to get back out there to educate retailers. There is confusion about flavored electronic smoking devices. The FDA banned flavored pod-based devices except for tobacco and menthol. The ATC expanded that to include all flavored disposable products. We need to provide additional education and work with Jeff and his team to include this information in the bulletin.
If anyone knows of any underage purchasers willing to assist us, please pass along their names. They get paid, and it’s a contractual position through the department.
Chairman Alan Silverstein: Thank you, Dana. Do we have any new business to discuss today? If not, I’d make a motion for adjournment. I need a second, please.
Robert Poole: Second.
Chairman Alan Silverstein: All those in favor signify by saying aye.
All Commissioners: Aye.
Chairman Alan Silverstein: Motion carries. Thank you all for participating. See you next month.
Unidentified Speaker: Thank you.
Unidentified Speaker: Thank you.
November 17, 2022
Plug in microphones and speakers, and life is good. I agree. Worst case scenario, we do what we did last time where I was typing in, which is not ideal, so I’m happy.
The legislation passed, so it’s a bit of a different world now. I was at a legislative meeting yesterday, and Senator Eard said she was at a budget meeting. There’s a $7 billion surplus right now, which is interesting. It’s different from the old days when we talked about deficits, so there’s a lot of opportunity.
Are you getting admittance popping up on your screen? No? I keep admitting people. You’re the head of the whole show; it’s good to be here. You’re doing a fine job. Thank you. Let me know when you want to take over. I had my minute in the sun; it was glorious and enough.
I was telling people yesterday I got my first deer of the season, unfortunately with my wife’s car at 6:30 in the morning, coming back from BWI. You probably weren’t in the frame of mind for that at the time. Just driving along in a little Mini Cooper, and it jumps over the rail, hits the door, and slides to the front. Was the deer bigger than the car? It was, but we’re going to get it fixed.
Jeff, you’re on mute. Hi Jeff. Good afternoon, everybody. Good to see you. Good to see you too.
I think I came in on the end of a deer story. I took my daughter-in-law to the airport at 3:30, and on the way back at 6:30, a buck jumped over the rail and into the side of my wife’s Mini Cooper. I talked to the insurance company today; they’re going to cut me a check, and we’re going to fix it. I was able to drive it home, but it’s a 2005 with 43,000 miles. I didn’t want to lose that.
It’s worth much more than you’d get for it. The guy said it was worth $6,900, so they’re going to pay out, and we’re going to use some used parts. Life will be better. Ken said she wanted to be buried in that car, so we have to take care of it.
Are we expecting the usual folks? Yes. There’s Eric. Hey Eric, welcome. Good to see you. Mr. Co, how are you? Good to be seen. Do we know if Betty Buck is going to join us? I think she was a yes. We’ll wait a minute or two.
Good afternoon, everyone. This is Jim Hawk. I apologize for my voice; I have my first cold since 2019. As long as it doesn’t come over the internet, I’m happy. I caught it from my wife and son.
It’s 3 o’clock, so we’re going to start the meeting with a roll call. Chairman Silverstein, present. Vice Chair Barbara Wall, present. Commissioner Eric Morset, present. Commissioner Robert P, present. Commissioner Betty Buck, are you with us yet? All right, we have a quorum. I need a motion for approval of the October 20, 2022, meeting minutes. I’ll motion to approve. Second. All those in favor signify by saying aye. Aye. Opposed? Same sign.
Mr. Kelly, thank you, Mr. Chair. Good afternoon, everybody. For the record, I had verification that Betty would be attending today, so I expect she may be on briefly.
Just a quick rundown of what’s happened since we last met. We had nine different incidents over the period of the month. We do a lot more than nine things, but something that rises to the point of getting a case number is significantly fewer. We had nine incidents last month, and one right before airtime in Cecil County on I-95. That’s not counted in that group; we’ll talk about that next month.
All incidents were tobacco-related; we had no alcohol violations this month. We seized over 28,000 sticks of other tobacco products and 180 packs of unstamped cigarettes.
Regarding reports, we’re in the middle of completing a couple. One is our annual alcohol and tobacco tax report. It’s the repository of almost all significant data, including stats, facts, and figures. This includes a separate report from each of the breweries, outlining their production and sales. This report is due on December 1st. Another report, in conjunction with the Department of Health, is to see the impact of the governor’s executive orders expanding privileges for the alcohol industry, focusing on economic and health impacts. We’re in the final phases of completing it, due by the end of the year.
Lastly, we had a small role in a report on minority participation in the alcohol industry. We provided contacts and information to the Governor’s Office of Small, Minority & Women Business Affairs.
That’s the extent of my report for this month. New business: I have to pay attention to politics. We had an election last week, and a variety of things will happen. We’re getting a new governor, and I expect at some point we’ll be contacted by a transition team member to discuss the future of the ATC. Also, of great significance was the referendum created by House Bill 1 last year, which supports the legalization of adult-use cannabis for people over 21. By about 65%, Maryland citizens passed that referendum, requiring the General Assembly to create policies and laws to implement it.
House Bill 837, which started addressing some policy issues, indicates that if House Bill 1 passes, the Maryland Medical Cannabis Commission would fall within the office of the executive director of the Alcohol and Tobacco Commission. This doesn’t happen immediately, but the intent is clear. With that, I’d like to introduce Mr. Will Tilberg, the executive director of the Maryland Medical Cannabis Commission, to give us a primer on what his commission does.
Thank you, Jeff. Good afternoon, everybody. I have some slides to assist. If I can share my screen…
Sure, go ahead.
Alright, thank you, Will. I just want to say I had an opportunity to sit in on a session where your commission met to discuss personnel reallocation. I was very impressed with the professionalism on both sides and the quality of the report. Thank you, Jeff, for everything Tom did on our behalf. Any comments or questions?
Yes, first of all, I apologize for being late. I struggled to get on Teams. I know nothing about cannabis, so any educational materials would be appreciated.
Absolutely, happy to help. As for THC quantity limits, there is ongoing debate about what’s safe to include in products. Presently, our medical program has limits on THC in edibles. We recommend similar caps for adult use, but it’s up to the General Assembly. We are also looking at tying taxation to THC levels.
Have there been studies on the efficacy of the claims made by manufacturers, and are there any adverse indications?
Medical claims can’t be made without FDA-level data. Clinical trials can’t be performed due to cannabis being a Schedule I substance. There is growing evidence that cannabinoids like THC and CBD are effective for chronic pain and PTSD, but specific product claims are not supported by clinical trials.
I’m happy to share our medical cannabis starter kit and keep this conversation going.
Thank you, Mr. Tilberg. How can we get involved in the Research and Education Committee?
The committee is part of our commission, but there’s also the Public Health Advisory Council created in January. They will solicit public comment on a wide range of issues. Email me at william.tilberg@maryland.gov for more information.
Any other questions?
I have one, Will. You mentioned the monthly dosage limit. How is that tracked?
It’s tracked in real-time through both Metric and Maryland OneStop, which patients can log into to see their remaining allotment. Dispensaries typically use third-party POS systems connected to Metric.
Thank you, Mr. Kelly. Anything else?
No, Mr. Chair, that’s all for us today.
Thank you, Will. We’ll need more information as we go forward. Legislative committees are already discussing this issue. I need a motion to adjourn.
So moved. Second. All those in favor signify by saying aye. Aye. We are adjourned. Have a great Thanksgiving.
December 15, 2022
Hello, Barbara. Hello, how are you? Good, thank you. I’m assuming you were born and raised here. Yes, I was born and raised here. I’m the only one.
Hi guys, I don’t know if you see me, but I see you. No, we don’t see you; we just see your name. Okay, it’s good to have you on board. I’ll figure it out. It’s funny.
Hello, Bill. Ah, there you are, Betty. You’re muted. Okay, I figured it out. Took me a minute. No, that’s okay. You’re better at selling beer than I am at computer savviness. It’s probably more profitable too. Yeah, I for one am good at selling beer.
Good to see you. Good to see you, Mr. P. Good to see everybody. Good to see Barbara, Betty, Eric, and of course, Mr. Chairman. Nice to have a full component today. About three more minutes, and we’ll get started.
Okay, it is 3:00. We call the Maryland Alcohol and Tobacco Commission December 15, 2022, meeting to order and open the meeting with a roll call. Vice Chair Barbara Wall, here. Secretary Robert P, here. Commissioner Eric Morett, here. Commissioner Betty Buck, here. I’m Chairman Al Silverstein. I ask for approval of the November 17, 2022, minutes. Need a motion. So moved. Okay, Barbara. Second. Robert P. Commissioner P seconded the motion. All those in favor signify by saying aye. Aye. Opposed? Same sign. Motion carries.
Executive Director’s report, Mr. Kelly. Good afternoon, Mr. Chair and Commissioners. We’ve had another good period of time since our last meeting. We had eight incidents that we charged someone on: six relative to tobacco products and two for alcohol.
Our seizures for the month were significant as well. With other tobacco products, nearly 58,000 pieces were seized, and over 12,300 packs of cigarettes. The tax hit to Maryland on that is $3.75 per pack, totaling over $46,000 in tax loss since we last met on cigarettes alone.
Regarding beer, wine, and spirits, we seized 333 containers of beer, 10 containers of wine, and 38 containers of spirits. We took these actions in Cecil County, Montgomery County, Baltimore City, Prince George’s County, and Frederick County. Another sizeable seizure will be reported next month as we finalize the numbers.
In terms of licensing and permits, we’re still in the permit renewal period, not licensing period. Our new system, operating for the last couple of years, is working well, sometimes too well. Previously, people renewing permits filled out a four-page application every year. Now, they get a single piece of paper with a coupon at the bottom. This system is efficient but often suspends incomplete documents. We had about a thousand in suspension last meeting, requiring significant human hours to resolve.
Reports we’re working on include the annual alcohol and tobacco tax report, which is in final review stages. We are verifying information and waiting for a few counties’ violation data. The report is typically 40-50 pages long, filled with facts and figures.
Another report that will get national attention is about ready-to-drink (RTD) products. This includes beer-based, wine-based, and spirit-based drinks. Last year, there was interest in changing the tax rates for these products. We were charged with studying what other states are doing. The report is nearly complete but needs more information on the financial impact of tax changes in other states. We aim to complete it by the year’s end.
We aim to keep our database updated. Local boards send us monthly updates on retail licensees. We’ve taken control back from the controller’s office to ensure reliability. Currently, all but two jurisdictions are on board. The database will be live with accurate information soon.
The credit control list ensures retailers make timely payments to wholesalers. If a retailer fails to pay, they are listed and can only make cash payments until the debt is settled. This system was previously unreliable but is now up-to-date, barring two jurisdictions, which we expect to resolve by the month’s end.
I hope to bring a public health expert next month to provide a 101-type lecture, which I found insightful. She will explain public health responsibilities related to our commission. If not next month, we aim for February.
Mr. Chair, that’s it.
Alright, can you hear me? Yes, perfect. I had one question about the RTD report. When will it be done, and will it baseline our revenue and compare it to other states? The report is due December 31st. We’re asking for an extension to gather more fiscal impact data from other states, though we aim to complete it on time.
Who benefits from charging the wine rate for a distilled spirit? Beer is taxed at 8 cents a gallon, wine at 40 cents, and spirits at $1.50. Taxing the entire 12-ounce container of an RTD spirit at the spirits rate is the issue. It’s a complex subject, and we’re treading carefully to support the General Assembly’s decisions.
Thank you, Jeff. Any new business? If not, I want to wish everyone a happy holiday.
Dana Monroe from the Maryland Department of Health, you had a question? Yes, Jeff, is the retailer tracking system just for alcohol retailers or for tobacco as well? It’s for alcohol retailers only.
Thank you. If no further business, happy holidays to everyone.