.04 Record Keeping and Licensing.

A. Holders of any cigarette license shall keep and maintain available for inspection during business hours, for a period of 2 years, the following:

(1) All invoices and bills of lading;

(2) All records covering all purchases and sales of cigarettes; and

(3) All records of merchandise sold in connection with cigarettes.

B. The records in §A of this regulation shall be maintained and available for inspection at the license location.

C. Wholesale Sale of Cigarettes.

(1) Each sale of cigarettes shall be accompanied by an invoice showing the following:

(a) The date, name, and address of the seller;

(b) The name and address of the buyer;

(c) The quantity and brands sold;

(d) The price charged for each of the brands of cigarettes covered by the invoices;

(e) The license number of the cigarette license of the seller; and

(f) The method of delivery (whether delivered by the seller to the buyer's place of business or picked up by the buyer).

(2) Licensed wholesalers shall maintain a record of the current retailer's cigarette license numbers of all persons to whom they sell cigarettes at wholesale.

(3) All cash sales made under the provisions of Commercial Law Article, §11-503(a), shall indicate cash sale on the invoice.

(4) A sale shall be presumed to have been made on other than a cash basis unless otherwise indicated.

D. Cigarette Vending Machine Requirements.

(1) A licensee who sells cigarettes at retail through a vending machine shall display on each machine:

(a) A label that indicates the licensee's name, address, and telephone number; and

(b) The label provided by the Comptroller that states the:

(i) Age requirement for the purchase of cigarettes, and

(ii) Penalty as provided by Criminal Law Article, §10-107, Annotated Code of Maryland.

(2) Operators of cigarette vending machines not covered in §D(1)(a) shall display the retailer's cigarette license on the machines they operate.

E. Other holders of retailer's cigarette licenses shall visibly display the license on the premises where cigarettes are sold.

F. A person selling cigarettes both at wholesale and at retail as provided in Commercial Law Article, §11-501 (m)(3), shall purchase both a wholesaler's cigarette license and a retailer's cigarette license or retailer's cigarette licenses.

G. The licensee described in §F shall maintain the following records:

(1) All purchases in which the licensee received discounts ordinarily allowed to wholesalers by other wholesalers; and

(2) Records reflecting which of the licensee's sales were wholesale sales.

H. A vending machine operator holding a cigarette license shall notify the Comptroller within 10 days of the following:

(1) Discontinuance of a location; or

(2) Addition of a new location.