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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
House: COM DPA 9-1-0-1 |
HB4001: alternative nicotine products; regulation.
Sponsor: Representative Weninger, LD 13
Caucus & COW
Overview
Establishes licensure requirements for alternative nicotine products.
History
The U.S. Food and Drug Administration (FDA) is responsible for protecting public health by ensuring the safety, efficacy and security of human drugs, biological products, medical devices and food supply. Additionally, the FDA maintains specific authority to oversee the distribution, sale and consumption of tobacco and nicotine products (21 U.S.C. § 387a).
The Federal Food, Drug, and Cosmetic Act, under the FDA, establishes a national minimum age of 21 years old for the purchase of any tobacco product (21 U.S.C. § 387f). Statute clarifies that a tobacco product refers to any product made or derived from tobacco, or containing nicotine from any source, that is intended for human consumption, including any component, part or accessory of tobacco product (21 U.S.C. § 321).
The FDA also establishes Good Manufacturing Practice (GMP) requirements to ensure the design, manufacture, packing and storage of tobacco and nicotine products meet quality and safety standards to protect public health (21 U.S.C. § 387f).
The Prevent All Cigarette Trafficking (PACT) act mandates that any person shipping tobacco or nicotine products into Arizona for profit must register their business with the U.S. Attorney General and the Arizona Department of Revenue and submit monthly invoices of the products delivered (15 U.S.C. § 376).
The Department of Liquor Licenses and Control (DLLC) governs the sale and distribution of spirituous liquor and regulated goods within Arizona. The DLLC maintains the authority to grant or deny licenses, hear appeals and establish necessary regulations for industry conduct. The Director (Director) of the DLLC is responsible for adopting administrative rules, ensuring licensee compliance, overseeing a specialized investigations unit and initiating regulatory actions to ensure public safety and the integrity of the marketplace. Additionally, the Director is required to: 1) partner with the Department of Public Safety (DPS) and local law enforcement to prevent underage alcohol consumption by individuals under 21 years old; and 2) establish a separate investigations unit responsible for investigating licensees alleged to have sold or distributed spirituous liquor in any form to individuals under 21 years old (A.R.S. § 4-112).
Statute specifies that knowingly selling or furnishing tobacco or vapor products to an individual under 21 years old is classified as a petty offense. Additionally, any person under the age of 21 years old who purchases or possesses these products is also guilty of a petty offense. Tobacco product applies to cigars; cigarettes or cigarette papers; and smoking and chewing tobacco. Vapor product applies to noncombustible, tobacco-derived products using a heating element or battery to heat a liquid nicotine solution (A.R.S. § 13-3622).
Provisions
Director Responsibilities
1. Requires the Director to partner with DPS and local law enforcement to enforce laws against the sale or possession of alternative nicotine products by persons under the age of 21. (Sec. 3)
2. Adds that DLLC's investigations unit must investigate licensees alleged to have sold or distributed alternative nicotine products to persons under the age of 21. (Sec. 3)
3. Authorizes the Director to:
a. remove contaminated alternative nicotine products from the marketplace;
b. accept and expend private grants for conducting education programs on the repercussions of the sale or possession of alternative nicotine products by persons under the age of 21; and
c. visit during occupied hours and inspect the premises of an alternative nicotine products licensee. (Sec. 3, 4)
Alternative Nicotine Products Licensure
4. Prohibits an individual from selling alternative nicotine products in Arizona without a license. (Sec. 7)
5. Requires a person desiring a license to sell alternative nicotine products in Arizona to apply to DLLC and outlines the information an applicant must provide. (Sec. 7)
6. Allows the Director to determine the fee for an alternative nicotine product retail license. (Sec.7)
7. Specifies the license is valid for one year and authorizes the sale of alternative nicotine products only at the location provided on the license. (Sec.7)
8. Declares a license to sell alternative nicotine products is not transferrable and is prohibited from being leased or subleased. (Sec. 7)
9. Requires the licensee to report any change in business ownership of the licensee within 30 days of the ownership change. (Sec. 7)
Manufacture Alternative Nicotine Products Licensure
10. Prohibits an individual from manufacturing alternative nicotine products in Arizona without a license. (Sec. 7)
11. Requires a person desiring a license to manufacture alternative nicotine products in Arizona to apply to DLLC and outlines the information an applicant must provide. (Sec. 7)
12. Allows the Director to determine the fee for an alternative nicotine product manufacturing license. (Sec. 7)
13. Specifies the license is valid for one year. (Sec. 7)
14. Requires the licensee to pay DLLC an annual fee, as determined by the Director, for each stock keeping unit of each alternative nicotine product to be manufactured in Arizona. (Sec. 7)
15. Declares a license to manufacture alternative nicotine products is not transferrable and is prohibited from being leased or subleased. (Sec. 7)
16. Requires the licensee to report any change in ownership of the business of the licensee within 30 days of the ownership change. (Sec. 7)
Alternative Nicotine Products Violations
17. Prohibits a licensee or their employee from selling alternative nicotine products to a person under the age of 21. (Sec. 7)
18. Instructs the Director, upon notification of an alleged violation, to provide notice of the alleged violation to the licensee. (Sec. 7)
19. Prescribes the penalties for a licensee who, after a hearing, is found to have committed a violation. (Sec. 7)
20. Stipulates, for licensees ordered to attend an alternative nicotine products retailer educational course, the persons who must attend the course. (Sec. 7)
Alternative Nicotine Products Requirements
21. Requires all alternative nicotine products manufactured and sold in Arizona to:
a. have received a written marketing order from the FDA; or
b. be processed and packaged within a U.S. based FDA registered facility or a certified good manufacturing practices facility. (Sec. 7)
22. Requires all consumable material of an alternative nicotine product sold in Arizona to be entirely manufactured and assembled in the U.S. by January 1, 2028. (Sec. 7)
Alternative Nicotine Products Marketing
23. Prohibits a licensee from marketing, advertising or selling alternative nicotine products in containers that:
a. depicts cartoon character that mimics a character primarily aimed at entertaining;
b. mimics a trademark or includes a symbol aimed at minors;
c. includes the image or name of a celebrity; or
d. is meant to disguise the appearance of the alternative nicotine product. (Sec. 7)
Sale and Identification Requirements
24. Requires the licensee questioning whether an individual purchasing, attempting to purchase or procuring an alternative nicotine product is under the age of 21 to:
a. demand and review the validity of the identification and confirm the photograph and date of birth of the individual; and
b. scan the identification using an electronic scanning device. (Sec. 7)
25. Outlines the written instruments that constitute the only acceptable forms of identification. (Sec. 7)
Miscellaneous
26. Defines alternative nicotine product as any noncombustible product that contains nicotine and that is intended for human consumption, whether chewed, absorbed, dissolved, ingested or consumed by any other means. (Sec. 2)
27. Excludes, as an alternative nicotine product, tobacco products or any product regulated as a drug or device by the FDA. (Sec. 2)
28. Makes technical and conforming changes. (Sec. 1-6)
Amendments
Committee on Commerce
1. Exempts a person who is licensed to sell spirituous liquor and who is selling alternative nicotine products from the licensing fee requirement.
2. Adds that a person who sells or manufactures alternative nicotine products for sale without a license is guilty of class 5 felony and subjected to other penalties.
3. Revises the information that must be submitted in the application for a manufacture alternative nicotine product license.
4. Removes language outlining the additional alternative nicotine products requirements.
5. Includes a definition of nicotine.
6. Makes clarifying changes.
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10. Initials PB HB 4001
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