2017 -- S 0232

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LC000468

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2017

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A N   A C T

RELATING TO HEALTH AND SAFETY -- DEPARTMENT OF HEALTH

     

     Introduced By: Senators Miller, Ruggerio, Doyle, Jabour, and Sosnowski

     Date Introduced: February 02, 2017

     Referred To: Senate Judiciary

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 23-1-56 of the General Laws in Chapter 23-1 entitled "Department

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of Health" is hereby amended to read as follows:

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     23-1-56. License.

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     (a) Each person engaging in the business of selling electronic nicotine-delivery system

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products in the state, including any distributor or dealer, shall secure a license annually from the

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department before engaging in that business or continuing to engage in it. A separate application

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and license is required for each place of business operated by a distributor or dealer. If the

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applicant for a license does not have a place of business in this state, the license shall be issued

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for such applicant's principal place of business, wherever located. A licensee shall notify the

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department within thirty (30) days in the event that it changes its principal place of business. A

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separate license is required for each class of business if the applicant is engaged in more than one

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of the activities required to be licensed by this section. No person shall maintain or operate, or

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cause to be operated, a vending machine for electronic nicotine-delivery systems without

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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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     (7) No license or permit for the business of selling electronic nicotine-delivery system

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products as defined in §11-9-13.4 shall be issued, renewed or maintained in this state for any

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person, including the owners of the business being licensed, who has not secured a license for

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cigarette products.

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     SECTION 2. Section 44-20-2 of the General Laws in Chapter 44-20 entitled "Cigarette

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Tax" is hereby amended to read as follows:

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     44-20-2. Importer, distributor, and dealer licenses required -- Licenses required.

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     Each person engaging in the business of selling cigarette and/or any tobacco products in

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this state, including any distributor or dealer, shall secure a license from the administrator before

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engaging in that business, or continuing to engage in it. A separate application and license is

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required for each place of business operated by a distributor or dealer; provided, that an operator

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of vending machines for cigarette products is not required to obtain a distributor's license for each

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

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

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notify the administrator within thirty (30) days in the event that it changes its principal place of

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business. A separate license is required for each class of business if the applicant is engaged in

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more than one of the activities required to be licensed by this section. No person shall maintain or

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operate or cause to be operated a vending machine for cigarette products without procuring a

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dealer's license for each machine; provided, that no person shall engage in the business of selling

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electronic nicotine-delivery systems as defined in §11-9-13.4 without first securing a license to

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sell cigarette and/or tobacco products in this state.

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     SECTION 3. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO HEALTH AND SAFETY -- DEPARTMENT OF HEALTH

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     This act would prohibit the sale of electronic nicotine-delivery systems without having a

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license to sell cigarettes and/or tobacco products.

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     This act would take effect upon passage.

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