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Maryland regulator says new law and tools are yielding seizures of illicit cannabis products

Transportation and the Environment Subcommittee · February 12, 2026

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Summary

The Alcohol, Tobacco and Cannabis Commission told the subcommittee it has seized more than $2.3 million in illicit cannabis product since receiving expanded authority under recent legislation and credited a new truth‑in‑labeling provision for speeding enforcement.

The Alcohol, Tobacco and Cannabis Commission briefed the subcommittee on its FY27 budget and enforcement activity following the 2023 launch of adult‑use cannabis and subsequent legislation.

DLS reported a FY27 ATCC allowance increase of roughly $315,000 (2.7%). Executive Director Jeff Kelly described constraints early in the adult‑use rollout, including a multi‑year injunction that limited the agency’s ability to take enforcement action against businesses that argued they operated lawfully before July 1, 2023. Kelly said the injunction "stymied enforcement" for more than two years but the passage of House Bill 12 gave ATCC authority to seize clearly mislabeled or youth‑targeted products and to charge vendors immediately.

Kelly said that in the seven months after ATCC gained that authority the agency removed over $2.3 million worth of illicit product from the market and filed more than 100 charges. He also described enhancements to the licensing portal (Maryland 1‑Stop), deployed in June 2025, that have shortened application processing times and improved reporting. On tobacco and alcohol work, ATCC reported completing thousands of inspections; it also released a state‑wide retailer tax‑adherence study showing widespread noncompliance in a sampled group of vaping retailers.

When asked about handling seized product, Kelly said ATCC maintains strict chain‑of‑custody and then incinerates items after legal disposition. The commission recommended concurrence with the governor’s allowance and told the committee it will continue to balance enforcement, licensing and education roles.

Ending: The committee accepted the briefing and posed follow‑up technical questions about enforcement trends and integration with other state enforcement partners.