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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
House Engrossed
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, manufacturing, 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; Distributor License
4. Prohibits an individual, beginning January 1, 2028, from distributing alternative nicotine products for sale in Arizona without a license. (Sec. 7)
5. Specifies alternative nicotine products offered for sale must only be provided by a licensed manufacturer and must meet outlined requirements. (Sec. 7)
6. Requires a person desiring a license to distribute alternative nicotine products for sale to apply to DLLC and outlines the application's requirements. (Sec. 7)
7. Allows the Director to establish a fee for an alternative nicotine products distributor license. (Sec. 7)
8. Specifies the license is valid for two years. (Sec. 7)
9. Specifies a license to distribute alternative nicotine products for sale is not transferrable and may not be leased or subleased. (Sec. 7)
10. Requires a licensee to report any change in business ownership of the licensee within 30 days of the ownership change. (Sec. 7)
Alternative Nicotine Products; Manufacture License
11. Prohibits an individual, beginning January 1, 2028, from manufacturing alternative nicotine products for sale in Arizona without a license. (Sec. 7)
12. Establishes requirements for licensed manufacturers of alternative nicotine products. (Sec. 7)
13. Requires a person desiring a license to manufacture alternative nicotine products for sale to apply to DLLC and outlines the application's requirements. (Sec. 7)
14. Allows the Director to establish a fee for an alternative nicotine products manufacturing license. (Sec. 7)
15. Specifies the license is valid for two years. (Sec. 7)
16. Requires the licensee to pay DLLC an annual fee, as determined by the Director, for each stockkeeping unit of each alternative nicotine product to be manufactured and for sale in Arizona. (Sec. 7)
17. Declares a license to manufacture alternative nicotine products that are for sale is not transferrable and is prohibited from being leased or subleased. (Sec. 7)
18. Requires a licensee to report any change in business ownership of the licensee within 30 days of the ownership change. (Sec. 7)
19. Allows DLLC to:
a. conduct an audit to ensure licensed manufacturer compliance;
b. request a notarized attestation that the manufacturer's products sold in Arizona were imported in conformity with all United States customs and border requirements; and
c. request that the manufacturer provide any additional documentation deemed relevant. (Sec. 7)
Alternative Nicotine Products Violations
20. Prohibits a retailer or their employee from selling alternative nicotine products to a person under the age of 21. (Sec. 7)
21. Instructs the Director, upon notification of an alleged violation, to provide notice of the alleged violation to the retailer. (Sec. 7)
22. Prescribes the penalties for a retailer who, after a hearing, is found to have committed a violation. (Sec. 7)
23. Stipulates, for retailers ordered to attend an alternative nicotine products retailer educational course, the persons who must attend the course. (Sec. 7)
24. Allows the DLLC to coordinate with appropriate law enforcement agencies. (Sec. 7)
Alternative Nicotine Products Marketing
25. 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)
26. Stipulates alternative nicotine products sold or offered for sale without a license are deemed contraband and subject to seizure and destruction or disposal. (Sec. 7)
Sale and Identification Requirements
27. Requires the retailer 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)
28. Outlines the written instruments that constitute the only acceptable forms of identification. (Sec. 7)
Tobacco Product Violations
29. Requires the court to order a person or enterprise that violates tobacco age purchasing and furnishing requirements to attend a court-approved tobacco retailer education course and pay a fine of at least $500, but not more than $750. (Sec. 8)
30. Establishes escalating criminal penalties and sales bans for enterprises that commit multiple violations at the same location within 24 months. (Sec. 8)
31. Stipulates, for enterprises ordered to attend a tobacco retailer educational course, the persons who must attend the course. (Sec. 8)
Miscellaneous
32. Makes it unlawful, beginning January 1, 2028, for a retailer of alternative nicotine products to purchase the products from an unlicensed distributor or an unlicensed manufacturer of alternative nicotine products. (Sec. 6)
33. Stipulates a person that distributes, manufactures or sells alternative nicotine products for sale without a license is guilty of a class 5 felony and is:
a. required to pay a fine of at least $10,000;
b. prohibited from selling, giving or furnishing alternative nicotine products for a period of one year; and
c. subject to any other punishment deemed appropriate by the Director. (Sec. 7)
34. Removes vapor products from statute relating to unlawfully furnishing tobacco products to underage persons. (Sec. 8)
35. Includes alternative nicotine products to statute outlining the requirements for allowing a person who is at least the age of 18 to possess, accept, receive or use the product. (Sec. 9)
36. Defines alternative nicotine product as any noncombustible product that contains nicotine and that is intended for human consumption, whether chewed, absorbed, dissolved, ingested, inhaled or consumed by any other means. (Sec. 2, 9)
37. Excludes, as an alternative nicotine product, tobacco products or any product regulated as a drug or device by the FDA. (Sec. 2)
38. Includes a definition of nicotine. (Sec. 2)
39. Includes a delayed effective date. (Sec. 10)
40. Makes technical and conforming changes. (Sec. 1-9)
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44. Initials PB HB 4001
45. 2/4/2026 Page 0 House Engrossed
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