2019 -- H 5830

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LC002037

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2019

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A N   A C T

RELATING TO BUSINESSES AND PROFESSIONS -- LOCAL TOBACCO CONTROL ACT

     

     Introduced By: Representatives Maldonado, Ucci, Barros, McNamara, and Blazejewski

     Date Introduced: March 08, 2019

     Referred To: House Municipal Government

     It is enacted by the General Assembly as follows:

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     SECTION 1. Title 5 of the General Laws entitled "BUSINESSES AND PROFESSIONS"

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is hereby amended by adding thereto the following chapter:

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CHAPTER 89

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LOCAL TOBACCO CONTROL ACT

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     5-89-1. Short title.

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     This chapter shall be known and may be cited as the "Local Tobacco Control Act".

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     5-89-2. Definitions.

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     As used in this chapter:

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     (1) "Applicant" means any person who has applied for permission to engage in any act or

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activity that is regulated pursuant to the provisions of this chapter.

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     (2) "License" means any license required by this chapter.

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     (3) "License fee" means any monies required by law to be paid for the issuance or

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renewal of any license required by this chapter.

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     (4) "Local licensing authority" means the town councils or license boards of the several

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towns, the mayor and city council or license bureau of a city.

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     (5) "Person" means any natural person, partnership, firm, joint stock company,

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corporation, or employee thereof, or other legal entity.

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     (6) "Sale" means any transfer of goods for money, trade, barter, or other consideration.

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     (7) "Tobacco product" means any product containing tobacco or nicotine, and related

 

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devices, including, but not limited to, cigarettes, cigars, pipe tobacco, snuff, chewing tobacco,

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dipping tobacco, bidis, snus, dissolvable tobacco products, electronic nicotine-delivery systems as

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defined in § 11-9-13.9 and any liquids for use in electronic nicotine-delivery systems; provided,

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however, that such term shall not include any product that has been approved by the United States

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Food and Drug Administration, pursuant to its authority over drugs.

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     5-89-3. Applicant license qualifications.

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     In order to be eligible for a license, an applicant must:

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     (1) Be a citizen of the United States or a resident alien;

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     (2) Not have been convicted, in any jurisdiction, of violating state or federal tobacco

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control laws;

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     (3) Not have been declared by any court of competent jurisdiction incompetent by reason

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of mental defect or disease unless the court has subsequently determined that his or her

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competency has been restored;

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     (4) Comply with any other requirements set by local ordinance.

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     (5) Submit a complete application, by the terms of the local licensing authority's

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ordinance, including a license fee.

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     5-89-4. Investigation and action on application.

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     After an examination of the application's contents, receipt of a license fee, and any further

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inquiry and investigation that is deemed proper and necessary as to the good character,

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competency, and integrity of the applicant and the persons named in the application, the local

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licensing authority shall, as soon as practicable, issue a license in a form prescribed by it to the

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applicant or notify the applicant of a denial of the license application. Persons shall file

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applications with the local licensing authority where his or her business is located.

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     5-89-5. Grounds for denial of application for license or renewal of license.

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     The local licensing authority shall deny the application for or renewal of license if it finds

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that the applicant:

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     (1) Has violated any provision of chapter 9 of title 11, this chapter, or rules and local

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ordinances promulgated consistent with this chapter;

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     (2) Committed any act that would disqualify the applicant under § 5-89-8 or the applicant

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has failed to meet the qualifications in § 5-89-3;

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     (3) Practices fraud, deceit, or misrepresentation;

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     (4) Makes a material misstatement in the application for issuance or renewal of a license;

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or

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     (5) Demonstrates incompetence or untrustworthiness in actions affecting the conduct of

 

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the business, required to be licensed under this chapter.

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     5-89-6. Procedure for approval or denial of application - Hearings.

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     The local licensing authority, in approving or denying an application for a license or

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renewal of a license, shall proceed as follows:

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     (1) If the application is approved, the local licensing authority shall issue a license in the

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form provided in this chapter and local ordinances promulgated consistent with this chapter;

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     (2) If the application is denied, the local licensing authority shall notify the applicant or

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licensee, in writing, of the denial and state the reasons for its action;

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     (3) Within fifteen (15) days from the receipt of notice, the applicant or licensee may

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request a hearing in writing;

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     (4) If a request for a hearing is received in a timely manner, the local licensing authority

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shall set a date for a hearing and notify the parties of the time and place of the hearing;

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     (5) All hearings shall be held in accordance with the provisions of chapter 35 of title 42.

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     5-89-7. Renewal of licenses.

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     Each license shall expire one year after its date of issuance. Subject to the power of the

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local licensing authority to deny, revoke, or suspend a license, and set any additional

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requirements on licensees by ordinance, any license shall be renewable by the local licensing

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authority for the next one-year period upon proper application for renewal including payment of

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license fees. An application for renewal of a license must be received by the local licensing

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authority on a form provided by the authority not less than thirty (30) days prior to the expiration

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date of the license, and the authority shall notify the licensee of its intent to refuse to renew the

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license as soon as practicable. The licensee may, within fifteen (15) days after receipt of the

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notice of intent to refuse to renew a license, request a hearing on the refusal in the manner

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prescribed by this chapter. A licensee is permitted to continue to engage in business while its

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renewal application is pending. Upon renewal of any license the local licensing authority shall

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issue a renewed license.

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     5-89-8. Grounds for suspension and revocation of licenses.

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     (a) A license may be suspended or revoked if the licensee:

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     (1) Violates any provisions of federal tobacco control law, chapter 9 of title11, or other

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Rhode Island tobacco control law, including this chapter, and any rules and local ordinances

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promulgated consistent with this chapter;

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     (2) Practices fraud, deceit or misrepresentation;

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     (3) Makes a material misstatement in the application for or renewal of the license;

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     (b) While pursuing an appeal at the local licensing authority, or if the licensee does not

 

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seek a hearing, the licensee shall immediately cease to conduct business subject to licensing for

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the time period provided in the order of suspension or permanently in the case of revocation and

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shall post a notification, visible to customers and containing lettering a minimum of three-eighths

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inch (3/8") high, that it is not licensed to sell or distribute tobacco products.

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     5-89-9. Change in status of licensee.

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     The licensee shall notify the local licensing authority, in writing, within five (5) days of

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any material change in the information previously furnished or required to be furnished to the

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local licensing authority or any occurrence that could reasonably be expected to affect the

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licensee's privilege to a license under this chapter or local ordinances promulgated consistent with

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this chapter.

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     5-89-10. Prohibited activities.

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     It is unlawful for any person to knowingly commit any of the following:

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     (1) Sell any tobacco product to a person in Rhode Island or provide any service under this

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chapter to a Rhode Island person without possessing a valid license:

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     (2) Employ any individual to sell any tobacco product or provide any service or required

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to be licensed under this chapter without possessing a valid license;

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     (3) Sell or furnish any tobacco product to any person under the age of eighteen (18), or a

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higher age set by local ordinance for sales of tobacco products; or

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     (4) Violate federal tobacco control law, the prohibitions of chapter 9 of title 11, or other

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Rhode Island tobacco control law including any applicable local ordinance adopted consistent

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with this chapter or prohibitions on sales contained in this chapter.

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     5-89-11. Licensee business procedures.

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     Any licensee shall, after notice from the local licensing authority, discontinue any

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advertising or the use of any advertisement, which in the opinion of the local licensing authority

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tends to mislead the public. Misleading advertising includes advertising or displaying tobacco

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products while the licensee's license to sell such products is suspended. Failure to comply with

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such order of the local licensing authority shall be cause for revocation of the license.

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     5-89-12. Judicial review.

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     (a) Any person aggrieved by a final decision or order of the local licensing authority

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made after a hearing or rehearing whether or not a petition for a hearing was filed, may obtain

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judicial review of the decision by appeal to the superior court in accordance with chapter 35 of

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title 42.

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     (b) Filing of an appeal does not stay enforcement of the decision or order of the local

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licensing authority unless the stay is obtained from the court upon application in accordance with

 

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the rules of court or from the local licensing authority upon any terms and conditions that it

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deems proper.

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     5-89-13. Engaging in business without a license - Penalties.

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     Any person who, without a license, engages in the general business of tobacco retailer or

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holds himself or herself out as a tobacco retailer, shall be punished by a fine of not less than two

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hundred dollars ($200) nor more than five thousand dollars ($5000), or imprisonment in the adult

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correctional institutions not exceeding six (6) months, or by both fine and imprisonment.

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     5-89-14. License fees and fines not a tax.

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     (a) License fees shall be set to cover all costs of administration and enforcement of this

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chapter by the local licensing authority. Such fees are due upon application, and license fees are

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only refundable at the discretion of a local licensing authority, even in the case of denial of the

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application. Such fees are not a tax.

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     (b) Local licensing authorities shall have the power to set fines appropriately to protect

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public health and encourage licensed retailer compliance with Rhode Island tobacco control law

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including this chapter and ordinances consistent with this chapter. Such fines are not a tax.

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     5-89-15. Severability.

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     If any provision of this chapter or the application of it to any person or circumstance is

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held invalid, that invalidity shall not affect other provisions or applications of this chapter, which

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can be given effect without the invalid provision or application, and to this end the provisions of

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this chapter are declared to be severable.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO BUSINESSES AND PROFESSIONS -- LOCAL TOBACCO CONTROL ACT

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     This act would create a comprehensive resolution scheme for cities and towns to follow

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concerning the sale and control of tobacco in their communities.

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     This act would take effect upon passage.

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