ATCC presses technology upgrades as it intensifies enforcement of unlicensed THC and tobacco products

The Alcohol, Tobacco and Cannabis Commission’s fiscal 2026 allowance decreases slightly to about $12 million as the agency implements technology upgrades and expands enforcement against unlicensed cannabis and contraband tobacco products.

David Pervert, the DLS analyst for the commission, told the subcommittee the commission’s FY2026 budget falls 1.3 percent to approximately $12 million and that about 29 percent of the allowance is reimbursable funds tied to a memorandum of understanding with the Maryland Cannabis Administration that assigns joint enforcement responsibilities. DLS reported that the commission has 60 regular positions and one contractual full‑time equivalent and that the budget includes decreases tied to one‑time online licensing costs and contract reductions for cannabis enforcement, offset by personnel and fringe increases.

Jeff Kelly, the commission’s executive director, told the committee the agency has used recent appropriations to secure office space, a contraband storage facility, and contractual upgrades: a new online licensing platform that will connect with the state’s 1‑stop business portal; a Lexipol contract to codify consistent policies and in‑service training for investigators; and a Colossus records management system to permit information sharing with other law‑enforcement agencies. Kelly said those systems will reduce paper processes and improve case and data management.

Thomas Akers, director of the commission’s legal and legislative division, described enforcement trends. The commission reported increased in‑state inspections and a 54 percent rise in confiscated “other tobacco products” (hookah, single cigars, chewing tobacco and similar products) in FY2024 and a 40 percent reduction in confiscated cigarette packs. Akers and Kelly said part of the shift stems from changing interdiction patterns — including fewer proactive interdiction deployments by outside agencies and fewer visual stops at toll plazas — and from a focus on in‑state tobacco retailers that also sell illicit THC products.

DLS and commission staff disagreed with a DLS data entry error: DLS’s analysis reported 156 unlicensed cannabis inspections in FY2024, while the commission told the subcommittee it had recorded 2,953 THC inspections; the commission said earlier DBM reporting submitted to DLS was incorrect and promised corrected MFR figures moving forward. The commission agreed to DLS’s recommendation to add measures in the FY2027 managing for results submission that track cannabis violations and seized contraband.

Kelly and Akers also told the panel about lab testing constraints: the commission currently relies on a single private laboratory (in Philadelphia) that can quantify THC levels and has limited sample capacity and turnaround; the commission said the Maryland Cannabis Administration expects to have in‑state testing capacity later in 2025, which would speed sample analysis.

On policy, Kelly flagged a pending labeling bill intended to prohibit marketing that appeals to children (cartoon characters, bright colors, candy flavors). He said labeling restrictions would allow enforcement without laboratory quantification in some cases because packaging that targets underage consumers would be non‑compliant under proposed standards.

Why this matters: the ATCC enforces licensing and consumer‑safety rules for alcohol, tobacco and cannabis products; technology and data improvements are intended to increase inspection efficiency and cross‑agency enforcement of unlicensed THC products that may pose consumer safety risks.