2014 -- H 7021 SUBSTITUTE A AS AMENDED

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LC003029/SUB A/2

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

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A N   A C T

RELATING TO CRIMINAL OFFENSES -- SALE OF TOBACCO PRODUCTS TO THOSE

UNDER EIGHTEEN (18)

     

     Introduced By: Representative Helio Melo

     Date Introduced: January 08, 2014

     Referred To: House Judiciary

     It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 11-9-13, 11-9-13.1, 11-9-13.4, 11-9-13.6, 11-9-13.7, 11-9-13.8,

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11-9-13.10, 11-9-13.13 and 11-9-14 of the General Laws in Chapter 11-9 entitled "Children" are

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hereby amended to read as follows:

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     11-9-13. Purchase, sale or delivery of tobacco products to persons under eighteen --

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Posting notice of law. -- No person under eighteen (18) years of age shall purchase, nor shall any

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person sell, give, or deliver to any person under eighteen (18) years of age, any tobacco in the

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form of cigarettes, bidi cigarettes, cigars, little cigars, flavored cigars known as "blunts,"

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unflavored "blunts,", flavored and unflavored blunt wraps, cigarette rolling papers of any size or

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composition, cigarillos, and tiparillos, pipe tobacco, chewing tobacco, electronic nicotine-delivery

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systems, or snuff. Any person, firm, or corporation that owns, manages, or operates a place of

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business in which tobacco products are sold, including sales through cigarette vending machines,

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shall post notice of this law conspicuously in the place of business in letters at least three-eighths

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of an inch (3/8") high.

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     11-9-13.1. Cigarette and tobacco vending machines. -- (a) No cigarettes, nor any other

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tobacco product, nor electronic nicotine-delivery system product shall be sold from any device or

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vending machine which that is in an area not continuously supervised and in direct line of sight of

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an authorized person employed by the person, firm, or corporation that owns the business

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occupying the premises in which the device or vending machine is located, nor shall any tobacco

 

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product, nor electronic nicotine-delivery system product be sold from any device or vending

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machine which that is in an area supervised by such an authorized person unless the device or

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vending machine is equipped with an electronic locking device which that will not allow the

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device or vending machine to dispense a pack of cigarettes, or any other tobacco product, or

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electronic nicotine-delivery system product unless it is electronically unlocked from a secured

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position inaccessible to the public and under the supervision of an authorized person employed by

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the person, firm, or corporation that owns the business occupying the premises in which the

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device or vending machine is located. "Direct line of sight" means that the vending machine and

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the purchaser of cigarettes or electronic nicotine-delivery systems must be visible to the

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authorized person pressing the unlock button while the unlock button is being activated.

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Provided, a locking device shall not be required in an establishment licensed to sell alcoholic

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beverages which that limits access to persons over the age of twenty-one (21) years.

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      (b) No cigarettes, nor any other tobacco product, nor electronic nicotine-delivery system

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product shall be sold from any device or vending machine from which non-tobacco products are

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sold.

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      (c) No cigarettes shall be sold in packs which that contain less than twenty (20)

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cigarettes.

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      (d) Any person, firm, or corporation who or that owns a business occupying the premises

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in which a device or vending machine which that dispenses cigarettes, or any other tobacco

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product or electronic nicotine-delivery system product is located who or that shall violate any of

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the provisions of subsections (a) and (b) of this section shall for the first offense be subject to a

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fine of seventy-five dollars ($75.00), for the second offense, be subject to a fine of one hundred

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fifty dollars ($150), and for the third and any subsequent offense, be subject to a fine of five

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hundred dollars ($500); provided, that in the event that there are no offenses in three (3)

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successive years from the date of the last offense, then the next offense shall be treated as the first

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offense.

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      (e) Any person, firm, or corporation who or that shall violate subsection (c) of this

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section shall, for the first offense, be subject to a fine of seventy-five dollars ($75.00), for the

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second offense, be subject to a fine of one hundred fifty dollars ($150), and for the third and any

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subsequent offense, be subject to a fine of five hundred dollars ($500); provided, that in the event

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that there are no offenses in three (3) successive years from the date of the last offense, then the

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next offense shall be treated as the first offense.

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      (f) One-half ( 1/2) of all the fines collected pursuant to this section shall be transferred to

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the municipalities in which the citations originated. One-half ( 1/2) of all the fines collected

 

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pursuant to this section shall be transferred to the general fund.

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      (g) Severability. - If any provision of this section or the application of it to any person or

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circumstance is held invalid, that invalidity shall not affect other provisions or applications of this

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section, which can be given effect without the invalid provision or application, and to this end the

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provisions of this section are declared to be severable.

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     11-9-13.4. Definitions. -- As used in this chapter:

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      (1) "Bidi cigarette" means any product that (i) contains tobacco that is wrapped in

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temburni or tender leaf, or that is wrapped in any other material identified by rules of the

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Department of Health that is similar in appearance or characteristics to the temburni or tender

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leaf, and (ii) does not contain a smoke filtering device.

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      (2) "Court" means any appropriate district court of the state of Rhode Island.

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      (3) "Dealer" is synonymous with the term "retail tobacco products dealer".

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      (4) "Department of mental health, retardation and hospitals behavioral healthcare,

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developmental disabilities and hospitals" means the state of Rhode Island mental health,

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retardation behavioral healthcare, developmental disabilities and hospitals department, its

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employees, agents or assigns.

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      (5) "Department of taxation" means the state of Rhode Island taxation division, its

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employees, agents, or assigns.

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      (6) "License" is synonymous with the term "retail tobacco products dealer license" or

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"electronic nicotine-delivery system license."

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      (7) "License holder" is synonymous with the term "retail tobacco products dealer" or

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"electronic nicotine-delivery system license."

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      (8) "Person" means any individual person, firm, association, or corporation licensed as a

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retail dealer to sell tobacco products within the state.

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      (9) "Retail tobacco products dealer" means the holder of a license to sell tobacco

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products at retail.

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      (10) "Retail tobacco products dealer license" means a license to sell tobacco products at

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retail as issued by the department of taxation.

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      (11) "Spitting tobacco" also means snuff, powdered tobacco, chewing tobacco, dipping

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tobacco, pouch tobacco, or smokeless tobacco.

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      (12) "Tobacco product(s)" means any product containing tobacco, including bidi

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cigarettes, as defined in subdivision (1) of this section, which that can be used for, but whose use

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is not limited to, smoking, sniffing, chewing, or spitting of the product.

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      (13) "Underage individual" or "underage individuals" means any child under the age of

 

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eighteen (18) years of age.

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      (14) "Little cigars" means and includes any roll, made wholly or in part of tobacco,

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irrespective of size or shape, and irrespective of whether the tobacco is flavored, adulterated, or

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mixed with any other ingredient, where such roll has a wrapper or cover made of tobacco

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wrapped in leaf tobacco or any substance containing tobacco paper or any other material, except

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where such wrapper is wholly or in greater part made of tobacco and such roll weighs over three

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(3) pounds per thousand (1,000).

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     (15) "Electronic nicotine-delivery system" means an electronic device that may be used

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to simulate smoking in the delivery of nicotine or other substance to a person inhaling from the

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device, and includes, but is not limited to, an electronic cigarette, electronic cigar, electronic

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cigarillo, electronic pipe, or electronic hookah and any related device and any cartridge or other

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component of such device.

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     11-9-13.6. Duties of the department of mental health, retardation and hospitals

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Duties of the department of behavioral healthcare, developmental disabilities and hospitals.

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-- The department of mental health, retardation and hospitals behavioral healthcare,

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developmental disabilities and hospitals shall:

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      (1) Coordinate and promote the enforcement of the provisions of this chapter and serve

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as the primary liaison from this department to other state or local agencies, departments, or

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divisions on issues pertaining to stopping children's access to tobacco and electronic nicotine-

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delivery systems.

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      (2) Provide retail tobacco products dealers and electronic nicotine-delivery system

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dealers signs concerning the prohibition of sales to children under eighteen (18) years of age. The

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signs, conforming to the requirements of this chapter, shall be sold at cost. This sign, or an exact

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duplicate of it made privately, shall be displayed in all locations where tobacco products and/or

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electronic nicotine-delivery systems are sold.

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      (3) Investigate concurrently with other state and local officials violations of this chapter.

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      (4)(i) Utilize unannounced statewide compliance checks of tobacco product sales and/or

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electronic nicotine-delivery system sales including retail tobacco and/or electronic nicotine-

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delivery system over-the-counter sales, mail order sales initiated via mail, facsimile, telephone or

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internet ordering or other types of electronic communications, and tobacco and/or electronic

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nicotine-delivery systems vending machine sales as part of investigating compliance with the

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provisions of this chapter. Underage individuals, acting as agents for the department of mental

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health, retardation and hospitals behavioral healthcare, developmental disabilities and hospitals

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and with the written permission of a parent or guardian, may purchase, with impunity from

 

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prosecution, tobacco products and electronic nicotine-delivery system for the purposes of law

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enforcement or government research involving monitoring compliance with this chapter,

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provided that the underage individuals are supervised by an adult law enforcement official. Any

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individual participating in an unannounced compliance check of over-the-counter or vending

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machine sales, must state his or her accurate age if asked by the sales representative of the retail

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establishment being checked.

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      (ii) In fulfilling the requirement of unannounced statewide compliance checks, the

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department of mental health, retardation and hospitals behavioral healthcare, developmental

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disabilities and hospitals shall maintain complete records of the unannounced compliance checks,

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detailing, at least, the date of the compliance check,; the name and address of the retail

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establishment checked or the mail order company,; the results of the compliance check (sale/no

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sale),; whether the sale was made as an over-the-counter sale, a mail-order purchase or a tobacco

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and/or or electronic nicotine-delivery systems vending machine sale,; and if a citation was issued

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for any violation found. The records shall be subject to public disclosure. Further, the department

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of mental health, retardation and hospitals behavioral healthcare, developmental disabilities and

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hospitals shall report to the owner of each retail establishment checked or mail-order company,

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the results of any compliance check (sale/no sale) whether the sale was made as an over-the-

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counter sale, a mail-order purchase, or a tobacco and/or electronic nicotine-delivery systems

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vending machine sale, and if a citation was issued for any violation found.

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      (5) Seek enforcement, concurrently with other state and local officials, of the penalties as

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detailed in this chapter.

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      (6) Develop and disseminate community health education information and materials

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relating to this chapter.

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     11-9-13.7. Signs concerning sales to individuals under age eighteen (18). -- Signs

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provided by the department of behavioral healthcare, developmental disabilities and hospitals, or

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an exact duplicate of it made privately, shall: (1) Contain in red bold lettering a minimum of

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three-eighths ( 3/8") inch high on a white background the following wording in both English and

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Spanish:

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     THE SALE OF CIGARETTES, AND OTHER TOBACCO AND ELECTRONIC

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NICOTINE-DELIVERY SYSTEM PRODUCTS TO PERSONS UNDER THE AGE OF 18 IS

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AGAINST RHODE ISLAND LAW (Section §11-9-13.8(1), Rhode Island Statutes) PHOTO ID

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FOR PROOF OF AGE IS REQUIRED FOR PURCHASE.

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     (2) Contain the phone number at the department of behavioral healthcare, developmental

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disabilities and hospitals, where violations of sections §§11-9-13.2 -- 11-9-13.19 can be reported,

 

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in addition to any other information required by the department of behavioral healthcare,

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developmental disabilities and hospitals.

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     (3) Be displayed prominently for public view, wherever tobacco products are sold at each

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cash register, each tobacco and/or electronic-nicotine-delivery systems vending machine, or any

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other place from which tobacco products and/or electronic nicotine-delivery systems are sold.

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The signs shall be electronically available in both English and Spanish online at the department of

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behavioral healthcare, developmental disabilities and hospitals' website.

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     11-9-13.8. Prohibitions applicable to license holders and their employees and agents.

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-- A person that holds holding a license issued under chapter 20 of title 44 and/or § 23-1-56, or an

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employee or agent of that person, is prohibited from selling, distributing, or delivering a tobacco

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and/or electronic nicotine-delivery system product:

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      (1) To any individual that who is under eighteen (18) years of age; or

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      (2) In any form other than an original, factory-wrapped package; or

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      (3) As a single-cigarette sale (section §44-20-31), or as a sale of cigarettes by the

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individual piece, known as "loosies."

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     11-9-13.10. Prohibition on the distribution of free tobacco products. -- The

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distribution of free tobacco products and electronic nicotine-delivery systems or coupons or

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vouchers redeemable for free tobacco or electronic nicotine-delivery system products to any

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person under eighteen (18) years of age shall be prohibited. Further, the distribution of free

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tobacco products or electronic nicotine-delivery systems or coupons or vouchers redeemable for

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free tobacco or electronic nicotine-delivery system products shall be prohibited, regardless of the

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age of the person to whom the products, coupons, or vouchers are distributed, within five hundred

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(500) feet of any school. The attorney general shall bring an action for any violation of this

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section. Every separate, free tobacco product or electronic nicotine-delivery system or coupon or

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voucher redeemable for a free tobacco or electronic nicotine-delivery system product in violation

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of this section shall constitute a separate offense subject to a fine of five hundred dollars ($500).

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The penalty shall be assessed against the business or individual responsible for initiating the

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Rhode Island distribution of the free tobacco products or electronic nicotine-delivery systems or

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coupons or vouchers redeemable for free tobacco products or electronic nicotine-delivery

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systems.

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     11-9-13.13. Nature and size of penalties. -- (a) Any person or individual that who

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violates a requirement of section §11-9-13.6(2), display of specific signage, shall be subject to a

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fine in court of not less than thirty-five dollars ($35.00), nor more than five hundred dollars

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($500), per civil violation.

 

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      (b) The license holder is responsible for all violations of this section that occur at the

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location for which the license is issued. Any license holder that violates the prohibition of section

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§11-9-13.8(1) and/or (2) shall be subject to civil fines as follows:

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      (1) A fine of two hundred fifty dollars ($250) for the first violation within any thirty-six-

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(36) month (36) period;

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      (2) A fine of five hundred dollars ($500) for the second violation within any thirty-six-

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(36) month (36) period;

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      (3) A fine of one thousand dollars ($1,000) and a fourteen-(14) day (14) suspension of

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the license to sell tobacco products or electronic nicotine delivery systems for the third violation

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within any thirty-six-(36) month (36) period;

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      (4) A fine of one thousand five hundred dollars ($1,500) and a ninety-(90) day (90)

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suspension of the license to sell tobacco products or electronic nicotine-delivery systems for each

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violation in excess of three (3).

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      (c) Any person that violates a prohibition of section §11-9-13.8(3), sale of single

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cigarettes; section §11-9-13.8(2), regarding factory-wrapped packs; shall be subject to a penalty

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of five hundred dollars ($500) for each violation.

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      (d) The department of taxation and/or the department of health shall not issue a license to

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any individual, business, firm, association, or corporation the license of which has been revoked

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or suspended, to any corporation an officer of which has had his or her license revoked or

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suspended, or to any individual who is, or has been, an officer of a corporation the license of

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which has been revoked or suspended so long as such revocations or suspensions are in effect.

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      (e) The court shall suspend the imposition of a license suspension of the license secured

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from the Rhode Island tax administrator for violation of subdivisions (b)(3) and (b)(4) of this

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section if the court finds that the license holder has taken measures to prevent the sale of tobacco

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and/or electronic nicotine-delivery systems to minors and the license holder can demonstrate to

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the court that those measures have been taken and that employees have received training. No

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person shall sell tobacco products and/or electronic nicotine-delivery-system products at retail,

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without first being trained in the legal sale of tobacco and/or electronic nicotine-delivery system

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products. Training shall teach employees what constitutes a tobacco and/or electronic nicotine-

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delivery system product,; legal age of purchase,; acceptable identification,; how to refuse a direct

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sale to a minor or secondary sale to an adult,; and all applicable laws on tobacco sales and

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distribution. Dealers shall maintain records indicating that the provisions of this section were

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reviewed with all employees who conduct, or will conduct, tobacco and/or electronic nicotine-

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delivery systems sales. Each employee who sells or will sell tobacco and/or electronic nicotine-

 

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delivery system products shall sign an acknowledgement form attesting that the provisions of this

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section were reviewed with him/her or her. Each form shall be maintained by the retailer for as

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long as the employee is so employed and for no less than one year after termination of

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employment. The measures to prevent the sale of tobacco and/or electronic nicotine-delivery

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systems to minors shall be defined by the department of mental health, retardation and hospitals

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behavioral healthcare, developmental disabilities and hospitals in rules and regulations.

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     11-9-14. Use of tobacco by minors. -- No person under eighteen (18) years of age shall

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smoke or chew use or possess, when such possession is clearly visible, tobacco in any public

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street, place, or resort, any tobacco and/or electronic nicotine-delivery system in any form

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whatsoever. Any person under eighteen (18) years of age violating the provisions of this section

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shall be required to perform up to thirty (30) hours of community service or shall be required to

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enter into a tobacco treatment program, approved by any local substance abuse prevention task

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force, at the option of a minor charged with a violation of this section.

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     SECTION 2. Chapter 23-1 of the General Laws entitled "Department of Health" is

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hereby amended by adding thereto the following sections:

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     23-1-55. Electronic nicotine delivery system distributor, and dealer licenses required

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-- Definitions. – Definitions. – Whenever used in §§ 23-1-56 to 23-1-58, unless the context

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requires otherwise:

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     (1) "Dealer" means any person, whether located within or outside of this state, who sells

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or distributes electronic nicotine-delivery system products to a consumer in this state;

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     (2) "Distributor" means any person:

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     (i) Whether located within or outside of this state, other than a dealer, who sells or

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distributes electronic nicotine-delivery system products within or into this state. Such term shall

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not include any electronic nicotine-delivery system products manufacturer, export warehouse

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proprietor, or importer with a valid permit, if such person sells or distributes electronic nicotine-

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delivery system products in this state only to licensed distributors or to an export warehouse

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proprietor or another manufacturer with a valid permit;

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     (ii) Selling electronic nicotine-delivery system products directly to consumers in this state

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by means of at least twenty-five (25) electronic nicotine-delivery system product vending

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machines;

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     (iii) Engaged in this state in the business of manufacturing electronic nicotine-delivery

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system products or any person engaged in the business of selling electronic nicotine-delivery

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system products to dealers, or to other persons, for the purpose of resale only; provided that

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seventy-five percent (75%) of all electronic nicotine-delivery system products sold by that

 

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person in this state are sold to dealers or other persons for resale and selling electronic nicotine-

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delivery system products directly to at least forty (40) dealers or other persons for resale; or

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     (iv) Maintaining one or more regular places of business in this state for that purpose;

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provided, that seventy-five percent (75%) of the sold electronic nicotine-delivery system products

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are purchased directly from the manufacturer and selling electronic nicotine-delivery system

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products directly to at least forty (40) dealers or other persons for resale;

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     (3) "Electronic nicotine-delivery system" means the products as defined in § 11-9-

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13.4(15).

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     23-1-56. License. -- (a) Each person engaging in the business of selling electronic

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nicotine-delivery system products in the state, including any distributor or dealer, shall secure a

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license annually from the department before engaging in that business or continuing to engage in

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it. A separate application and license is required for each place of business operated by a

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distributor or dealer. If the applicant for a license does not have a place of business in this state,

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the license shall be issued for such applicant's principal place of business, wherever located. A

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licensee shall notify the department within thirty (30) days in the event that it changes its

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principal place of business. A separate license is required for each class of business if the

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applicant is engaged in more than one of the activities required to be licensed by this section. No

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person shall maintain or operate, or cause to be operated, a vending machine for electronic

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nicotine-delivery systems without procuring a dealer’s license for each machine.

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     (b) The director shall have authority to set a reasonable fee not to exceed twenty-five

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dollars ($25.00) for the issuance of the license.

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     (c) Each issued license shall be prominently displayed on the premises, if any, covered by

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the license.

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     (d) The director shall create and maintain a website setting forth the identity of all

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licensed persons under this section, itemized by type of license possessed, and shall update the

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site no less frequently than six (6) times per year.

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     (e) A manufacturer or importer may sell or distribute electronic nicotine-delivery systems

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to a person located or doing business within the state only if such person is a licensed distributor.

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An importer may obtain electronic nicotine-delivery systems only from a licensed manufacturer.

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A distributor may sell or distribute electronic nicotine-delivery systems to a person located or

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doing business within this state only if such person is a licensed distributor or dealer. A

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distributor may obtain electronic nicotine-delivery systems only from a licensed manufacturer,

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importer, or distributor. A dealer may obtain electronic nicotine-delivery systems only from a

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licensed distributor.

 

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     (f)(1) No license under this chapter may be granted, maintained, or renewed if the

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applicant, or any combination of persons owning directly or indirectly any interests in the

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applicant:

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     (i) Is delinquent in any tax filings for one month or more; or

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     (ii) Had a license under this chapter revoked within the past two (2) years.

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     (2) No person shall apply for a new license, or renewal of a license and no license shall

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be issued or renewed for any person, unless all outstanding fines, fees, or other charges relating to

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any license held by that person have been paid.

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     (3) No license shall be issued relating to a business at any specific location until all prior

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licenses relating to that location have been officially terminated and all fines, fees, or charges

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relating to the prior licenses have been paid or otherwise resolved or if the director has found that

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the person applying for the new license is not acting as an agent for the prior licensee who is

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subject to any such related fines, fees, or charges that are still due. Evidence of such agency status

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includes, but is not limited to, a direct familial relationship and/or employment, contractual, or

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other formal financial or business relationship with the prior licensee.

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     (4) No person shall apply for a new license pertaining to a specific location in order to

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evade payment of any fines, fees, or other charges relating to a prior license for that location.

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     (5) No new license shall be issued for a business at a specific location for which a license

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has already issued unless there is a bona fide, good faith change in ownership of the business at

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that location.

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     (6) No license or permit shall be issued, renewed or maintained for any person, including

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the owners of the business being licensed, who has been convicted of violating any criminal law

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relating to tobacco products and/or electronic nicotine-delivery system products, the payment of

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taxes, or fraud, or has been ordered to pay civil fines of more than twenty-five thousand dollars

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($25,000) for violations of any civil law relating to tobacco products and/or electronic nicotine-

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delivery system products, the payment of taxes, or fraud.

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     23-1-57. Penalties for unlicensed business. -- Any distributor or dealer who sells, offers

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for sale, or possesses with intent to sell, electronic nicotine-delivery system products without a

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license as provided in § 23-1-56, shall be fined in accordance with the provisions of, and the

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penalties contained in, § 23-1-58.

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     23-1-58. Penalty for operating without a dealer license. -- (a) Any individual or

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business who violates this chapter by selling or conveying an electronic nicotine-delivery system

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product without a retail license shall be cited for that violation and shall be required to appear in

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district court for a hearing on the citation.

 

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     (b) Any individual or business cited for a violation hereunder shall:

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     (1) Either post a five hundred dollar ($500) bond with the district court within ten (10)

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days of the citation; or

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     (2) Sign and accept the citation indicating a promise to appear in court.

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     (c) An individual or business who or that has accepted the citation may:

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     (1) Pay the five hundred dollar ($500) fine, either by mail or in person, within ten (10)

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days after receiving the citation; or

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     (2) If that individual or business has posted a bond, forfeit the bond by not appearing at

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the scheduled hearing. If the individual or business cited pays the five hundred dollar ($500) fine

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or forfeits the bond, that individual or business is deemed to have admitted the cited violation and

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to have waived the right to a hearing on the issue of commission on the violation.

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     (d) The court, after a hearing on a citation, shall make a determination as to whether a

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violation has been committed. If it is established that the violation did occur, the court shall

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impose a five hundred dollar ($500) fine in addition to any court costs or fees.

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     SECTION 3. This act shall take effect upon passage. The amendments to §§ 11-9-13, 11-

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9-13.1, 11-9-13.4, 11-9-13.7, 11-9-13.10 and 11-9-14 shall take effect on July 1, 2014 and the

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amendments to §§ 11-9-13.6, 11-9-13.8, 11-9-13.13, 23-1-55, 23-1-56, 23-1-57 and 23-1-58 shall

18

take effect on January 1, 2015.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO CRIMINAL OFFENSES -- SALE OF TOBACCO PRODUCTS TO THOSE

UNDER EIGHTEEN (18)

***

1

     This act would amend the definition of tobacco products to include vapor products and

2

alternative nicotine products for the purpose of prohibiting access by minors.

3

     This act would take effect upon passage.

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LC003029/SUB A/2 - Page 12 of 12