HB319INTRODUCED Page 0 99A7MM-1 By Representatives Drummond, Hollis, Lawrence, Warren, Blackshear, McClammy, Gray, Travis, Easterbrook, Fincher, Hill, Jackson, Tillman, Plump, Jones, Bracy, Hassell, Butler, Gidley, Lamb, Givens, Holk-Jones, Estes, Faulkner, Baker, Pringle, Ingram, Sellers, Yarbrough, Shaw, Morris, Rogers, Lipscomb, Hurst, DuBose, Wood (D), Pettus, Marques, Sorrells, Smith, Stringer, Kitchens, Colvin, Woods, Treadaway, Ellis, Hulsey, Wood (R), Rehm, Brown, Robertson, Starnes, McCampbell, Whitt RFD: Boards, Agencies and Commissions First Read: 13-Apr-23 1 2 3 4 5 6 7 8 9 10 11 12 13 99A7MM-1 04/11/2023 CMH (L)bm 2023-164 Page 1 SYNOPSIS: Under existing law, the Alcoholic Beverage Control (ABC) Board regulates and enforces the sale of tobacco, tobacco products, alternative nicotine products, and electronic nicotine delivery systems. Under existing law, to assist with the enforcement of the laws prohibiting sales to a minor, an individual under 21 years of age may operate under the supervision of a law enforcement officer to attempt to purchase tobacco products, alternative nicotine products, and electronic nicotine delivery systems. The minor is prohibited from misrepresenting his or her age to the retail licensee. This bill would revise the definition of "electronic nicotine delivery system" to include delivery of substances other than tobacco. This bill would prohibit the minor from using a fake or forged identification and would require the minor to present his or her true identification when requested by the retail licensee. This bill would further provide for the distribution of tobacco products through a vending machine. Under existing law, there is no fee for a permit to distribute tobacco, tobacco products, electronic 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 HB319 INTRODUCEDHB319 INTRODUCED Page 2 nicotine delivery systems, or alternative nicotine products. This bill would require a one-time application fee and an annual permit fee for the distribution of those products. Under existing law, the board may assess a permit holder and, if applicable, an employee of the permit holder, an administrative penalty for a violation of the tobacco retail laws. This bill would increase the penalty that may be assessed. Under existing law, all fines collected by the ABC Board for the enforcement of the tobacco retail laws are distributed to the General Fund. This bill would create the Tobacco Licensing and Compliance Fund in the State Treasury and would distribute all fines, fees, and other funds collected in the administration and enforcement of the tobacco retail laws to the fund and provide for its administration. This bill would further provide for the membership of the advisory board to the Alcoholic Beverage Control Board. Under existing law, a minor under 21 years of age who possesses any tobacco, tobacco product, alternative nicotine product, electronic delivery system, or false proof of identification shall be issued a uniform nontraffic citation and fined. 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 HB319 INTRODUCEDHB319 INTRODUCED Page 3 This bill would increase the fine for a violation and would require the minor's driver license to be suspended on a third or subsequent conviction. This bill would increase the authorized administrative penalty for certain tobacco advertising violations. Under existing law, the Department of Revenue maintains a directory listing all e-liquid manufacturers and manufacturers of alternative nicotine authorized to be distributed in the state. This bill would require a manufacturer to meet certain requirements before being approved for the directory. This bill would also further provide for the requirement to post signage warning of the dangers of tobacco product use by tobacco retailers. This bill would provide rulemaking authority. Section 111.05 of the Constitution of Alabama of 2022, prohibits a general law whose purpose or effect would be to require a new or increased expenditure of local funds from becoming effective with regard to a local governmental entity without enactment by a 2/3 vote unless: it comes within one of a number of specified exceptions; it is approved by the affected entity; or the Legislature appropriates funds, or provides a local source of revenue, to the entity for the purpose. The purpose or effect of this bill would be to 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 HB319 INTRODUCEDHB319 INTRODUCED Page 4 require a new or increased expenditure of local funds within the meaning of the amendment. However, the bill does not require approval of a local governmental entity or enactment by a 2/3 vote to become effective because it comes within one of the specified exceptions contained in the amendment. A BILL TO BE ENTITLED AN ACT Relating to the Alcoholic Beverage Control Board; to amend Sections 28-11-2, 28-11-3, 28-11-5, 28-11-6.1, 28-11-7, 28-11-9, 28-11-10, 28-11-12, 28-11-13, 28-11-14, 28-11-16, 28-11-17.1, and 28-11-18, Code of Alabama 1975, to revise the definition of "electronic nicotine delivery system" to include delivery of substances other than tobacco; to further provide for the sale of tobacco and other related products to minors; to further provide for the distribution of tobacco products through a vending machine; to provide fees for the retail sale of certain tobacco products; to increase penalties for certain violations; to establish the Tobacco Licensing and Compliance Fund in the State Treasury and provide for its administration; to further provide for the membership of the advisory board to the Alcoholic 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 HB319 INTRODUCEDHB319 INTRODUCED Page 5 Beverage Control Board; to further provide for the requirement of tobacco retailers to post signage warning of the dangers of tobacco product use; to require the board to adopt rules; to repeal Sections 28-11-15 and 28-11-19, Code of Alabama 1975, and in connection therewith would have as its purpose or effect the requirement of a new or increased expenditure of local funds within the meaning of Section 111.05 of the Constitution of Alabama of 2022. BE IT ENACTED BY THE LEGISLATURE OF ALABAMA: Section 1. Sections 28-11-2, 28-11-3, 28-11-5, 28-11-6.1, 28-11-7, 28-11-9, 28-11-10, 28-11-12, 28-11-13, 28-11-14, 28-11-16, 28-11-17.1, and 28-11-18, Code of Alabama 1975, are amended to read as follows: "§28-11-2 For purposes of this chapter, the following terms have the following meanings unless the context clearly indicates otherwise: (1) ALTERNATIVE NICOTINE PRODUCT. The term alternative nicotine product includes any product that consists of or contains nicotine that can be ingested into the body by chewing, smoking, absorbing, dissolving, inhaling, snorting, sniffing, or by any other means. The term does not include a tobacco product, electronic nicotine delivery system, or any product that has been approved by the United States Food and Drug Administration for sale as a tobacco cessation product or for other medical purposes and that is being marketed and sold solely for that purpose. 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 HB319 INTRODUCEDHB319 INTRODUCED Page 6 (2) BOARD. The Alabama Alcoholic Beverage Control Board. (3) CHILD-RESISTANT PACKAGING. Liquid nicotine container packaging meeting the requirements of 15 U.S.C. § 1472a. (4) COMMISSIONER. The Commissioner of the Department of Revenue. (5) DELIVERY SALE OF ELECTRONIC NICOTINE DELIVERY SYSTEMS OR ALTERNATIVE NICOTINE PRODUCTS. The same meaning as in defined in Section 13A-12-3.1. The term also includes the delivery sale of e-liquids. (5)(6) DISTRIBUTION. To sell, barter, exchange, or give tobacco or tobacco products for promotional purposes or for gratis. (6)(7) ELECTRONIC NICOTINE DELIVERY SYSTEM. Any electronic device that uses a battery and heating element in combination with an e-liquid or tobacco , or substitutes thereof, to produce a vapor that delivers nicotine or other substances to the individual inhaling from the device to simulate smoking, and includes, but is not limited to, products that may be offered to, purchased by, or marketed to consumers as an electronic cigarette, electronic cigar, electronic cigarillo, electronic pipe, electronic hookah, vape pen, vape tool, vaping device, or any variation of these terms. The term also includes any e-liquid intended to be vaporized in any device included in this subdivision. (7)(8) ELECTRONIC NICOTINE DELIVERY SYSTEM RETAILER. Any retail business which offers for sale electronic nicotine 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 HB319 INTRODUCEDHB319 INTRODUCED Page 7 delivery systems. (8)(9) E-LIQUID. A liquid that contains nicotine or other substances and may include flavorings or other ingredients that are intended for use in an electronic nicotine delivery system. (9)(10) E-LIQUID MANUFACTURER. Any person who manufactures, fabricates, assembles, processes, mixes, prepares, labels, repacks, or relabels an e-liquid to be sealed in final packaging intended for consumer use. This term includes an owner of a brand or formula for an e-liquid who contracts with another person to complete the fabrication and assembly of the product to the brand or formula owner's standards. (11) E-LIQUID OR TOBACCO SUBSTITUTE. Products that may be used in conjunction with an electronic cigarette or other electronic battery-powered device to deliver nicotine or other substances, including, but not limited to CBD oil, THC oil, herbal extracts, and nicotine salts, or analogs thereof, into the body through the inhalation of vapor. (10)(12) FDA. The United States Food and Drug Administration. (11)(13) LIQUID NICOTINE CONTAINER. A bottle or other container of a liquid product that is intended to be vaporized and inhaled using an electronic nicotine delivery system. The term does not include a container holding liquid that is intended for use in a vapor product if the container is pre-filled and sealed by the manufacturer and is not intended to be opened by the consumer. 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 HB319 INTRODUCEDHB319 INTRODUCED Page 8 (12)(14) MINOR. Any individual under the age of 19 21 years of age. (13)(15) PERSON. Any natural person, firm, partnership, association, company, corporation, or other entity. Person does not include a manufacturer or wholesaler of tobacco or tobacco products nor does it include employees of the permit holder. (14)(16) PROOF OF IDENTIFICATION. Any one or more of the following documents used for purposes of determining the age of an individual purchasing, attempting to purchase, or receiving tobacco, tobacco products, electronic nicotine delivery systems, or alternative nicotine products: a. A valid driver'sdriver license issued by any state and bearing the photograph of the presenting individual. b. United States Uniform Service Identification. c. A valid passport. d. A valid identification card issued by any state agency for the purpose of identification and bearing the photograph and date of birth of the presenting individual. e. For legal mail order purposes only, a valid signed certification that will verify the individual is 21 years of age or older. (15)(17) RESPONSIBLE VENDOR PROGRAM. A program administered by the board to encourage and support vendors in training employees in legal and responsible sales practices. (16)(18) SAMPLER. Any business or person who distributes tobacco or tobacco products for promotional purposes. 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 HB319 INTRODUCEDHB319 INTRODUCED Page 9 (17)(19) SELF-SERVICE DISPLAY. A display that contains tobacco or tobacco products and is located in an area openly accessible to purchasers at retail and from which the purchasers can readily access tobacco or tobacco products without the assistance of the tobacco permit holder or an employee of the permit holder. A display case that holds tobacco or tobacco products behind locked doors does not constitute a self-service display. (18)(20) SPECIALTY RETAILER OF ELECTRONIC NICOTINE DELIVERY SYSTEMS. A business establishment at which any of the following are true: a. The trade name includes the words vape, vapor, or any variation of the terms which may indicate that the business sells electronic nicotine delivery systems or alternative nicotine products. a. b.The sale of electronic nicotine delivery systems accounts for more than 35 percent of the total quarterly gross receipts for the establishment The provided list of intended inventory includes 50 percent or more of electronic nicotine delivery systems or alternative nicotine products, or both, by quantity, by value, or both . c. At any time after a permit has been issued, the inventory maintained by the business includes 50 percent or more of electronic nicotine delivery systems or alternative nicotine products, or both, by quantity, by value, or both. b.d. Twenty percent or more of the public retail floor space is allocated for the offering, displaying, or storage of electronic nicotine delivery systems. 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 HB319 INTRODUCEDHB319 INTRODUCED Page 10 c.e. Twenty percent or more of the total shelf space, including retail floor shelf space and shelf space in areas accessible only to employees, is allocated for the offering, displaying, or storage of electronic nicotine delivery systems. d.f. The retail space features a self-service display for electronic nicotine delivery systems. e.g. Samples of electronic nicotine delivery systems are offered to customers. f.h. Liquids intended to be vaporized through the use of an electronic nicotine delivery system are may be produced at the facility or are may be produced by the owner of the establishment or any of its agents or employees for sale at the establishment . (19)(21) TOBACCO or TOBACCO PRODUCT. Any product made or derived from tobacco that is intended for human consumption, including any component, part, or accessory of a tobacco product, except for raw materials other than tobacco used in manufacturing a component, part, or accessory of a tobacco product, but does not include an article that is a drug under Section 201(g)(1) of the Federal Food, Drug, and Cosmetic Act, a device under Section 201(h) of the Federal Food, Drug, and Cosmetic Act, or a combination product described in Section 503(g) of the Federal Food, Drug, and Cosmetic Act. (20)(22) TOBACCO PERMIT. A permit issued by the board to allow the permit holder to engage in the distribution of tobacco, tobacco products, electronic nicotine delivery 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279 280 HB319 INTRODUCEDHB319 INTRODUCED Page 11 systems, or alternative nicotine products at the location identified in the permit. (21)(23) TOBACCO SPECIALTY STORE. A business that derives at least 75 percent of its revenue from tobacco or tobacco products." "§28-11-3 The board, in conjunction with federal, state, and local law enforcement agencies, shall enforce state and federal laws that prohibit the distribution of tobacco, tobacco products, alternative nicotine products, and electronic nicotine delivery systems to individuals under the age of 21 years. Notwithstanding the foregoing, for purposes of inspections and enforcement actions undertaken pursuant to this section, individuals under the age of 21 years may be enlisted to attempt to purchase or purchase tobacco, tobacco products, alternative nicotine products, and electronic nicotine delivery systems, provided that individuals under the age of 18 years shall have the prior written consent of a parent or legal guardian, and provided further that the individuals shall be directly supervised during the conduct of each inspection or enforcement action by an enforcement agent of the board or a law enforcement officer , or by a sheriff or head of police of any county, city, town, or other political subdivision, or by a deputy or officer thereof. No individual under the age of 21 years may misrepresent his or her age for the purpose of purchasing or attempting to purchase tobacco, tobacco products, alternative nicotine products, or electronic nicotine delivery systems. If questioned about his or her age 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 301 302 303 304 305 306 307 308 HB319 INTRODUCEDHB319 INTRODUCED Page 12 during an attempt to purchase or receive tobacco, tobacco products, alternative nicotine products, or electronic nicotine delivery systems, an individual under the age of 21 years shall state his or her true age. A photograph or video recording of any individual under the age of 21 years assisting in an inspection or enforcement action shall be taken prior to the investigation. The appearance of an individual under the age of 21 years participating in an inspection or enforcement action shall not be altered at the time of the inspection ." "§28-11-5 The board may use funding, if available, from the Department of Mental Health, other state or federal agencies, grants, and private or public organizations to enforce this chapter and to provide and distribute prevention materials related to tobacco, tobacco products, alternative nicotine products, and electronic nicotine delivery systems and nicotine prevention materials to retail tobacco merchants and specialty retailers of electronic nicotine delivery systems. The materials shall provide information regarding state and federal laws that prohibit access to tobacco, tobacco products, alternative nicotine products, and electronic nicotine delivery systems by individuals under the age of 21 years and other appropriate information. The board may also provide consultation services for establishing programs to minimize or eliminate sales of tobacco, tobacco products, alternative nicotine products, and electronic nicotine delivery systems to individuals under the age of 21 years 309 310 311 312 313 314 315 316 317 318 319 320 321 322 323 324 325 326 327 328 329 330 331 332 333 334 335 336 HB319 INTRODUCEDHB319 INTRODUCED Page 13 pursuant to the responsible vendor program." "§28-11-6.1 (a) No tobacco, tobacco product, alternative nicotine product, or electronic nicotine delivery system shall be distributed by use of a vending machine unless the machine : (1) Is is located in an area in which individuals under the age of 21 years are not permitted access ; or (2) Dispenses tobacco, tobacco products, alternative nicotine products, or electronic nicotine delivery systems through the operation of a device that requires the tobacco permit holder or an employee of the permit holder to control the distribution of the product . (b) No tobacco, tobacco product, alternative nicotine product, or electronic nicotine delivery system shall be distributed at retail by use of a vending machine if placed together with any non-tobacco product or non-nicotine product, other than matches, in the machine." "§28-11-7 (a) Any person who distributes tobacco, tobacco products, electronic nicotine delivery systems, or alternative nicotine products within this state shall first obtain a permit from the board for each location of distribution. There is no fee for the permit. Upon application, there shall be a one-time, nonrefundable filing fee of fifty dollars ($50), in addition to a permit fee of one hundred fifty dollars ($150), which shall be renewed annually. The fees collected under this subsection shall be distributed as follows: (1) Seventy-five percent of these funds shall be 337 338 339 340 341 342 343 344 345 346 347 348 349 350 351 352 353 354 355 356 357 358 359 360 361 362 363 364 HB319 INTRODUCEDHB319 INTRODUCED Page 14 deposited into the Tobacco Licensing and Compliance Fund to be used for operational costs of enforcing this chapter and tobacco and nicotine prevention education. (2) Twenty-five percent shall be deposited into the Public Safety Fund of the Alabama State Law Enforcement Agency to be used for the enforcement of this chapter. (b)(1)Any person who maintains No person may maintain a tobacco, tobacco product, electronic nicotine delivery system, or alternative nicotine product vending machine on his or her property in this state shall first obtain a permit from the board for each machine at each machine location. The permit for each machine shall be posted in a conspicuous place on the machine. unless the person is a permit holder of the board and the vending machine is located on the permitted premises of the permit holder. (2) On any application for a permit, the applicant shall document the location of any vending machine on the premises to be permitted. (3) A current permit holder in good standing with the board, after notification to the board, may place a machine on the permitted premises of the permit holder. (c) A permit shall be valid only for the location address specified in the permit application. (d) A permit is not transferable or assignable and shall be renewed annually. Notwithstanding the foregoing, if If a location for which a permit is has been obtained is sold or transferred, the permit , after submission of an application to transfer and a transfer fee of fifty dollars ($50), shall 365 366 367 368 369 370 371 372 373 374 375 376 377 378 379 380 381 382 383 384 385 386 387 388 389 390 391 392 HB319 INTRODUCEDHB319 INTRODUCED Page 15 may be transferred to the person obtaining control of the location and shall be valid for 30 days after the transfer during which time a new permit shall be obtained , subject to approval by the board . The transferee shall meet any requirements, established by rule of the board, required for a permit holder. The permitted transfer shall be effective for the duration of the license year, and the transferee shall renew the permit annually as provided in subsection (a). (e) If feasible, the board by rule may adopt procedures for the issuance and renewal of permits which combine tobacco permit procedures with the application and licensing procedures for alcoholic beverages." "§28-11-9 (a) Subject to the Alabama Administrative Procedure Act, Chapter 22 of Title 41, the board shall have full and final authority as to the suspension or revocation for cause of any permit issued pursuant to this chapter. (1) The board may appoint a hearing commission of at least three persons which may do all of the following: a. Hear and decide all contested applications for permits. b. Hear and decide all charges against any permit holder or employee of a permit holder for violations of this chapter, the law, or the rules of the board. c. Revoke or suspend permits as provided in this chapter. d. Levy administrative fines upon permit holders or employees of permit holders. 393 394 395 396 397 398 399 400 401 402 403 404 405 406 407 408 409 410 411 412 413 414 415 416 417 418 419 420 HB319 INTRODUCEDHB319 INTRODUCED Page 16 (2) No member of the hearing commission shall participate in the hearing or disposition of any application for a permit or charge against a permit holder or an employee of a permit holder if he or she has an interest therein or was involved in the investigation. (b) The board, or a hearing commission appointed by the board, upon finding that a permit holder or any partner, member, employee, officer, or director of the permit holder has violated any of the laws of this state or the United States relating to the manufacture, sale, possession, or transportation of tobacco, tobacco products, electronic nicotine delivery systems, or alternative nicotine products, or that the permit holder has acted in a manner prejudicial to the welfare, health, peace, temperance, and safety of the people of the community or of the state, may upon due notice and hearing, levy administrative fines or suspend or revoke the permit issued by the board, or a combination of all three. In all cases where the board or hearing commission shall levy an administrative fine or suspend or revoke a permit, it shall set forth its findings of fact, the evidence from which the findings of facts are made, and the reasons upon which its actions are based. (c) The fines as specified in subsection (e) shall be applicable per each violation. The permit holder or employee shall remit the administrative fine to the board within seven calendar days from the day that the administrative fine is levied. Failure by the permit holder to pay the administrative fine within that time period shall result in an automatic 421 422 423 424 425 426 427 428 429 430 431 432 433 434 435 436 437 438 439 440 441 442 443 444 445 446 447 448 HB319 INTRODUCEDHB319 INTRODUCED Page 17 suspension of the permit until the administrative fine is paid. (d) The maximum length of suspension of a permit pursuant to this chapter shall be one year. A permit holder shall be ineligible to hold a permit pursuant to this chapter for the location where the violation occurred until the expiration or removal of the suspension. A permit holder whose permit is revoked by the board or the hearing commission shall be, at the discretion of the board or hearing commission, ineligible to hold a permit pursuant to this chapter until the expiration of one year from the date the permit is revoked at the location where the violation occurred. (e) The following administrative fines may be levied for violations of this chapter against valid permit holders or employees, or both: (1) Upon conviction for For a first violation by the permit holder or an employee of the permit holder, the board or hearing commission may offer the permit holder an opportunity to provide training sessions administered by the Responsible Vendor Program in lieu of an administrative fine upon the permit holder and the employee, if the violation is by an employee, of not more than two hundred dollars ($200) five hundred dollars ($500) . (2) Upon conviction of For a second violation at the same location within a two-year four-year period, the board or hearing commission may levy an administrative fine upon the permit holder and the employee, if the violation is by an employee, of not more than four hundred dollars ($400) seven 449 450 451 452 453 454 455 456 457 458 459 460 461 462 463 464 465 466 467 468 469 470 471 472 473 474 475 476 HB319 INTRODUCEDHB319 INTRODUCED Page 18 hundred fifty dollars ($750) . (3) Upon conviction of a third or subsequent violation at the same location within a two-year period, the board or hearing commission may levy an administrative fine upon the permit holder and the employee, if the violation is by an employee, of not more than seven hundred fifty dollars ($750). (4)(3)Upon conviction of For a fourth third or subsequent violation at the same location within a two-year four-year period, the board or hearing commission may levy an administrative fine upon the permit holder and the employee, if the violation is by an employee, of not more than one thousand dollars ($1,000) and may suspend or revoke the permit. (f) Before imposition of any administrative fine, the permit holder shall be afforded all procedural rights to due process in addition to those rights guaranteed by the Alabama Administrative Procedure Act, Chapter 22 of Title 41." "§28-11-10 (a) The Tobacco Licensing and Compliance Fund is hereby created in the State Treasury. The fund shall be administered by the Licensing and Compliance Division of the board. All fees and other funds collected by the board pursuant to this chapter shall be deposited into the State General Fund State Treasury to the credit of the fund. Amounts deposited into the fund shall be budgeted and allotted in accordance with Sections 41-4-80 through 41-4-96 and Sections 41-19-1 through 41-19-12, Code of Alabama 1975 . Monies in the fund shall be used by the Licensing and Compliance Division of the board for 477 478 479 480 481 482 483 484 485 486 487 488 489 490 491 492 493 494 495 496 497 498 499 500 501 502 503 504 HB319 INTRODUCEDHB319 INTRODUCED Page 19 tobacco and nicotine prevention education, operational costs associated with regulating permitted locations, and the enforcement of this chapter. " "§28-11-12 (a) An advisory board shall be established to monitor the implementation of this chapter. The advisory board shall meet at least quarterly. Representation shall consist of one representative from each of the following: (1) The Office of the Governor. (2) The Office of the Attorney General. (3) The Department of Mental Health. (4) The Department of Public Health. (5) The Alcoholic Beverage Control Board. (6) The Senate as appointed by the Lieutenant Governor. (7) The House of Representatives as appointed by the Speaker of the House of Representatives. (8) The Alabama Oilmen's Association and the Alabama Convenience Store Operators Petroleum & Convenience Marketers of Alabama Association as appointed by the Governor and selected from three nominees submitted by the association. (9) The Alabama Retail Association as appointed by the Governor and selected from three nominees submitted by the association. (10) The Alabama Grocers' Association as appointed by the Governor and selected from three nominees submitted by the association. (11) The Alabama State Law Enforcement Agency. (12) The Department of Revenue. 505 506 507 508 509 510 511 512 513 514 515 516 517 518 519 520 521 522 523 524 525 526 527 528 529 530 531 532 HB319 INTRODUCEDHB319 INTRODUCED Page 20 (b) The membership of the advisory board shall be inclusive and reflect the racial, gender, geographic, urban/ruralurban, rural, and economic diversity of the state. (c) The chair of the advisory board shall be a representative from the board who shall be responsible for the conduct of the meetings and any correspondence derived therefrom. (d) Other than the legislative appointees, each representative shall be appointed by his or her respective department head, and shall hold the appointment for a one-year term. (e) A representative may be reappointed as deemed appropriate by his or her department head, or in the case of legislative appointees, the Lieutenant Governor or Speaker of the House of Representatives. (f) The advisory board may issue written recommendations for program modification to the board." "§28-11-13 (a)(1) It is unlawful for any individual under the age of 21 years to purchase, use, possess, or transport tobacco, a tobacco product, an electronic nicotine delivery system, or an alternative nicotine product within this state. (2) It shall not be unlawful for Notwithstanding subdivision (1), an individual under the age of 21 years who is an employee of a tobacco, tobacco product, electronic nicotine delivery system, or alternative nicotine product permit holder to may handle, transport, or sell tobacco, a tobacco product, an electronic nicotine delivery system, or an 533 534 535 536 537 538 539 540 541 542 543 544 545 546 547 548 549 550 551 552 553 554 555 556 557 558 559 560 HB319 INTRODUCEDHB319 INTRODUCED Page 21 alternative tobacco product , if provided the employee is acting within the line and scope of employment and the permit holder, or an employee of the permit holder who is 21 years of age or older, is present. (b) It is unlawful for any individual under the age of 21 years to present or offer to another person proof of identification which is false, fraudulent, or not actually his or her own proof of identification in order to buy, receive, or otherwise obtain, or attempt to buy, receive, or otherwise obtain, any tobacco, tobacco product, electronic nicotine delivery system, or alternative nicotine product. (c) If a minor an individual under 19 years of age is cited for any violation under this section, the citing agency shall make reasonable efforts to notify a parent, legal guardian, or legal custodian of the minor individual that the individual was cited for the violation. unless This subsection does not apply the minor if the individual has been emancipated by court order or operation of law." "§28-11-14 (a)(1) Any tobacco, tobacco product, alternative nicotine product, electronic nicotine delivery system, or false proof of identification found in the possession of an individual under the age of 21 years is contraband and subject to seizure by agents of the board or any law enforcement officer. (2) Prohibited tobacco, tobacco products, electronic nicotine delivery systems, and alternative nicotine products kept, stored, or deposited in any place in this state for the 561 562 563 564 565 566 567 568 569 570 571 572 573 574 575 576 577 578 579 580 581 582 583 584 585 586 587 588 HB319 INTRODUCEDHB319 INTRODUCED Page 22 purpose of unlawful sale or unlawful disposition or unlawful furnishing or distribution, and the vessels and receptacles in which the products are contained, are declared to be contraband and shall be seized and forfeited to the state and may be condemned for destruction pursuant to the procedures of Article 11 of Chapter 4. (3) Prohibited tobacco, tobacco products, electronic nicotine delivery systems, and alternative nicotine products may be searched for, seized, and ordered to be destroyed pursuant to the procedures of Article 11 of Chapter 4. (b) In any criminal prosecutions against a person for a violation of this chapter, on conviction, the court may order the destruction of any prohibited tobacco, tobacco products, electronic nicotine delivery systems, and alternative nicotine products which were (i) sold, offered for sale, possessed, or otherwise disposed of by the defendant, (ii) employed by the defendant for use or disposition at any unlawful establishment by the defendant, (iii) possessed or used in conducting the business of a tobacco dealer, or (iv) used as evidence in the case. (c) All fixtures, equipment, materials, and personal property used in substantial connection with the sale or possession of tobacco, tobacco products, electronic nicotine delivery systems, and alternative nicotine products involved in a knowing and intentional violation of this article shall be subject to the same seizure and forfeiture procedures as provided pursuant to Article 11 of Chapter 4. (d) The board shall dispose of electronic nicotine 589 590 591 592 593 594 595 596 597 598 599 600 601 602 603 604 605 606 607 608 609 610 611 612 613 614 615 616 HB319 INTRODUCEDHB319 INTRODUCED Page 23 delivery systems and alternative nicotine products seized under this section by destruction as provided by rule of the board. Any person from whom an electronic nicotine delivery system or alternative nicotine product is seized and destroyed pursuant to this section shall be subject to a fee, to be determined based on the cost of the destruction and disposal of the electronic nicotine delivery system or alternative nicotine product as hazardouse waste. (e)(1) Any individual under the age of who is 18 or more years of age but under 21 years of ageviolating who violates Section 28-11-13 shall be issued a citation similar to a uniform nontraffic citation and shall be fined not less than ten dollars ($10) fifty dollars ($50) nor more than fifty dollars ($50) two hundred dollars ($200) for each violation, and shall be assessed no other court costs or fees. In addition, on a third or subsequent conviction, including convictions in district court or municipal court, the court shall forward a record of the applicable convictions to the Secretary of the Alabama State Law Enforcement Agency and the secretary shall suspend the driving privileges or driver license of the individual for a period of not less than three months nor more than six months. (b)(2) Notwithstanding any other provision of law, the disposition of any violation of Section 28-11-13 for any individual 18 or more years of age but under 21 years of age shall be within the jurisdiction of the district or municipal court and not the juvenile court. Violations shall not be considered criminal offenses and shall be administratively 617 618 619 620 621 622 623 624 625 626 627 628 629 630 631 632 633 634 635 636 637 638 639 640 641 642 643 644 HB319 INTRODUCEDHB319 INTRODUCED Page 24 adjudicated by the district or municipal court. (f) Any individual under 18 years of age who violates Section 28-11-13 shall be adjudicated to have committed a delinquent act, as defined under Section 12-15-102, and shall be fined not less than fifty dollars ($50) nor more than two hundred dollars ($200). The disposition of the individual shall be subject to the exclusive jurisdiction of the juvenile court." "§28-11-16 (a)(1) A retailer or manufacturer of electronic nicotine delivery systems or alternative nicotine products may not advertise an electronic nicotine delivery system or an alternative nicotine product in any of the following ways: a. As a tobacco cessation product. b. As a healthier alternative to smoking. c. As available for purchase in any variety of flavors other than tobacco, mint, or menthol on any outdoor billboard. d. On any outdoor billboard located within 1,000 feet of any public or private K-12 school or public playground. (2) Paragraphs a. and b. of subdivision (1) are not applicable to products that have received an order from the FDA permitting the product to be marketed as a modified risk tobacco product, and are marketed in accordance with that order. (b)(1) A specialty retailer of electronic nicotine delivery systems or manufacturer of tobacco, tobacco products, electronic nicotine delivery systems, or alternative nicotine products may not in any way sponsor, finance, or advertise a 645 646 647 648 649 650 651 652 653 654 655 656 657 658 659 660 661 662 663 664 665 666 667 668 669 670 671 672 HB319 INTRODUCEDHB319 INTRODUCED Page 25 scholarship of any kind using the brand name of any tobacco product, alternative nicotine product, or electronic nicotine delivery system. (2) A specialty retailer of electronic nicotine delivery systems or manufacturer of tobacco, tobacco products, electronic nicotine delivery systems, or alternative nicotine products may not use the brand name of any tobacco product, alternative nicotine product, or electronic nicotine delivery system to advertise at or sponsor any event at a stadium, concert, sporting event, or other public performance event for which individuals aged 21 years or older make up less than 85 percent of the total age demographic of performing participants individuals performing at the event . (3) A specialty retailer of electronic nicotine delivery systems or manufacturer of tobacco, tobacco products, electronic nicotine delivery systems, or alternative nicotine products may not advertise a tobacco product, electronic nicotine delivery system, or alternative nicotine product in a newspaper, magazine, periodical, or other print or digital publication distributed in this state for which less than 85 percent of the viewership or readership of the publication is made up of individuals 21 years of age or older as measured by competent and reliable survey evidence. (c)(1) A violation of subsection (a) or subsection (b) shall result in a one hundred dollar ($100) three hundred dollar ($300) fine for the first occurrence. (2) A second or subsequent violation of subsection (a) or subsection (b) shall result in a five hundred dollar ($500) 673 674 675 676 677 678 679 680 681 682 683 684 685 686 687 688 689 690 691 692 693 694 695 696 697 698 699 700 HB319 INTRODUCEDHB319 INTRODUCED Page 26 seven hundred fifty dollar ($750) fine per occurrence. (3) Each day a violation of subsection (a) or subsection (b) persists shall constitute a separate and subsequent violation. (d) A retailer or manufacturer of tobacco, tobacco products, electronic nicotine delivery systems, or alternative nicotine products may not advertise, market, or offer for sale tobacco, a tobacco product, an electronic nicotine delivery system, or an alternative nicotine product in any of the following ways: (1) By using, in the labeling or design of the product, its packaging, or in its advertising or marketing materials, the terms "candy" or "candies," any variant of these words, or any other term referencing a type or brand of candy, including types or brands of candy that do not include the words "candy" or "candies" in their names or slogans. (2) By using, in the labeling or design of the product, its packaging, or in its advertising or marketing materials, the terms "cake" or "cakes" or "cupcake" or "cupcakes" or "pie" or "pies," any variant of these words, or any other term referencing a type or brand of cake, pastry, or pie, including types or brands of cakes, pastries, or pies that do not include the words "cake" or "cakes" or "cupcake" or "cupcakes" or "pie" or "pies" in their names or slogans. (3) By using, in the labeling or design of the product, its packaging, or in its advertising or marketing materials, trade dress, trademarks, branding, or other related imagery that imitates or replicates those of food brands or other 701 702 703 704 705 706 707 708 709 710 711 712 713 714 715 716 717 718 719 720 721 722 723 724 725 726 727 728 HB319 INTRODUCEDHB319 INTRODUCED Page 27 related products that are marketed to minors, including, but not limited to, breakfast cereal, cookies, juice drinks, soft drinks, frozen drinks, ice creams, sorbets, sherbets, and frozen pops. (4) By using, in the labeling or design of the product, its packaging, or in its advertising or marketing materials, trade dress, trademarks, branding, or other related imagery that depicts or signifies characters or symbols that are known to appeal primarily to minors, including, but not limited to, superheroes, comic book characters, video game characters, television show characters, movie characters, mythical creatures, unicorns, or that otherwise incorporates related imagery or scenery. (e) The board may adopt rules to implement this section, including rules regarding the suitability of labels and procedures to reject advertising that appeals to minors, including, but not limited to, the design of a product, its packaging, or its advertising or marketing materials, trade dress, trademarks, branding, or other related imagery. (f) Any item found in violation of subsection (d) is a prohibited item and shall be considered contraband and may be seized as provided by Section 28-11-14 by an agent of the board or any law enforcement officer. " "§28-11-17.1 (a)(1) Beginning March 1, 2022, or other date not Not more than 30 days following a premarket tobacco application submission deadline issued by the FDA , whichever is later , every e-liquid manufacturer and manufacturer of alternative 729 730 731 732 733 734 735 736 737 738 739 740 741 742 743 744 745 746 747 748 749 750 751 752 753 754 755 756 HB319 INTRODUCEDHB319 INTRODUCED Page 28 nicotine products whose products are sold in this state, whether directly or through a distributor, retailer, or similar intermediary or intermediaries, shall execute and deliver on a form prescribed by the commissioner, a certification to the commissioner certifying, under penalty of perjury, that the product does not contain any synthetic nicotine or nicotine derived from a source other than tobacco, that the product may be lawfully sold and possessed in this state, and that either of the following apply: a. The product was on the market in the United States as of August 8, 2016, and the manufacturer has applied for a marketing order pursuant to 21 U.S.C. § 387j for the e-liquid, e-liquid in combination with an electronic nicotine delivery system, or alternative nicotine product, whichever is applicable, by submitting a premarket tobacco product application on or before September 9, 2020, to the FDA; and either of the following is true: 1. The premarket tobacco product application for the product remains under review by the FDA. 2. The FDA has issued a no marketing order for the e-liquid, e-liquid in combination with an electronic nicotine delivery system, or alternative nicotine product, whichever is applicable, from the FDA; however, the agency or a federal court has issued a stay order or injunction during the pendency of the manufacturer's appeal of the no marketing order. b. The manufacturer has received a marketing order or other authorization under 21 U.S.C. § 387j for the e-liquid, 757 758 759 760 761 762 763 764 765 766 767 768 769 770 771 772 773 774 775 776 777 778 779 780 781 782 783 784 HB319 INTRODUCEDHB319 INTRODUCED Page 29 e-liquid in combination with an electronic nicotine delivery system, or alternative nicotine product, whichever is applicable, from the FDA. (2) In addition to the requirements in subdivision (1), each manufacturer shall provide : a.aA copy of the cover page of the premarket tobacco application with evidence of receipt of the application by the FDA or a copy of the cover page of the marketing order or other authorization issued pursuant to 21 U.S.C. § 387j, whichever is applicable. b. Information that clearly identifies each product, submission tracking number (STN), product name, product subcategory, characterizing flavor, FDA order date, and type of order. (b) Any manufacturer submitting a certification pursuant to subsection (a) shall notify the commissioner within 30 days of any material change to the certification, including issuance by the FDA of any of the following: (1) A market order or other authorization pursuant to 21 U.S.C. § 387j. (2) An order requiring a manufacturer to remove a product from the market either temporarily or permanently. (3) Any notice of action taken by the FDA affecting the ability of the new product to be introduced or delivered into interstate commerce for commercial distribution. (4) Any change in policy that results in a product no longer being exempt from federal enforcement oversight. (c) The commissioner shall develop and maintain a 785 786 787 788 789 790 791 792 793 794 795 796 797 798 799 800 801 802 803 804 805 806 807 808 809 810 811 812 HB319 INTRODUCEDHB319 INTRODUCED Page 30 directory listing all e-liquid manufacturers and manufacturers of alternative nicotine products that have provided certifications that comply with subsection (a) and all products that are listed in those certifications. (d) The commissioner shall do all of the following: (1) Make the directory available for public inspection on its website by May 1, 2022. (2) Update the directory as necessary in order to correct mistakes and to add or remove e-liquid manufacturers, manufacturers of alternative nicotine products, or products manufactured by those manufacturers consistent with the requirements of subsections (a) and (b) on a monthly basis. (3) Remove from the directory any product that the board determines is a prohibited item pursuant to Section 28-11-16(d). (3)(4) Send monthly notifications to each wholesaler, jobber, semijobber, retailer, importer, or distributor of tobacco products that have qualified or registered with the Department of Revenue, by electronic communication, containing a list of all changes that have been made to the directory in the previous month. In lieu of sending monthly notifications, the commissioner may make the information available in a prominent place on the Department of Revenue's public website. (4)(e) Information required to be listed in the directory shall not be subject to the confidentiality and disclosure provisions in Section 40-2A-10. (e)(f) Notwithstanding subsection (a), if an e-liquid manufacturer or manufacturer of alternative nicotine products 813 814 815 816 817 818 819 820 821 822 823 824 825 826 827 828 829 830 831 832 833 834 835 836 837 838 839 840 HB319 INTRODUCEDHB319 INTRODUCED Page 31 can demonstrate to the commissioner that the FDA has issued a rule, guidance, or any other formal statement that temporarily exempts a product from the federal premarket tobacco application requirements, the product may be added to the directory upon request by the manufacturer if the manufacturer provides sufficient evidence that the product is compliant with the federal rule, guidance, or other formal statement, as applicable. (f)(g) Each certifying e-liquid manufacturer and manufacturer of alternative nicotine products shall pay an initial fee of two thousand dollars ($2,000) to offset the costs incurred by the department for processing the certifications and operating the directory. The commissioner shall collect an annual renewal fee of five hundred dollars ($500) to offset the costs associated with maintaining the directory and satisfying the requirements of this section. The fees received under this section by the department shall be used by the department exclusively for processing the certifications and operating and maintaining the directory. After the payment of these expenses, two-thirds one-half of the remaining funds shall be deposited into the State General Fund, and the remaining one-third one-half shall be distributed evenly to the Alabama State Law Enforcement Agency and to the Licensing and Compliance Division of the board to be used for the enforcement of this chapter . (g)(h) Beginning on September 1, 2021, no e-liquid, e-liquid in combination with an electronic nicotine delivery system, or alternative nicotine product that, in the case of 841 842 843 844 845 846 847 848 849 850 851 852 853 854 855 856 857 858 859 860 861 862 863 864 865 866 867 868 HB319 INTRODUCEDHB319 INTRODUCED Page 32 any such product, contains synthetic nicotine or nicotine derived from a source other than tobacco may be sold or otherwise distributed in this state without first obtaining approval from the FDA for sale as a drug under Section 201(g)(1) of the Federal Food, Drug, and Cosmetic Act, a device under Section 201(h) of the Federal Food, Drug, and Cosmetic Act, a combination product described in Section 503(g) of the Federal Food, Drug, and Cosmetic Act, or some other medical purpose. (h)(i)(1) Beginning May 1, 2022, or on the date that the Department of Revenue first makes the directory available for public inspection on its website as provided in subsection (d), whichever is later, an An e-liquid manufacturer or manufacturer of alternative nicotine products or electronic nicotine delivery systems who offers for sale a product not listed on the directory is subject to a one thousand dollars ($1,000) daily fine for each product offered for sale in violation of this section until the offending product is removed from the market or until the offending product is properly listed on the directory. For purposes of this subdivision, "sale" includes a delivery sale of e-liquids or electronic nicotine delivery systems or alternative nicotine products, as defined under this chapter. (2) Any other violation of this section shall result in a fine of five hundred dollars ($500) per offense. (j)(1) When any retail permit holder offers for sale a product not listed on the directory, the board shall assess the following administrative penalties: 869 870 871 872 873 874 875 876 877 878 879 880 881 882 883 884 885 886 887 888 889 890 891 892 893 894 895 896 HB319 INTRODUCEDHB319 INTRODUCED Page 33 a. For a first offense within a four-year period, an administrative penalty of five hundred dollars ($500). b. For a second offense within a four-year period, an administrative penalty of seven hundred fifty dollars ($750). c. For a third or subsequent offense within a four-year period, an administrative penalty of one thousand dollars ($1,000). In addition, the board may suspend or revoke the permit of the permit holder. (2) All products offered for sale and not listed on the directory shall be considered a prohibited item and declared to be contraband and may be seized and forfeited as provided in Section 28-11-14 by agents of the board or any law enforcement officer. (i)(k) The commissioner Alcoholic Beverage Control Board and the Commissioner of Revenue shall adopt rules for the implementation and enforcement of this section." "§28-11-18 (a) All liquid nicotine containers offered for sale that are intended to be vaporized in an electronic nicotine delivery system shall be contained in child-resistant packaging. (b) A specialty retailer of tobacco, tobacco products, alternative nicotine products, or electronic nicotine delivery systems shall display in a prominent area of the retail store near the point of sale ,a an 8 1/2 x 11 inch sign or signs containingwhich contains the following statements: (1) "ALABAMA LAW STRICTLY PROHIBITS THE PURCHASE OF TOBACCO, TOBACCO PRODUCTS, ALTERNATIVE NICOTINE PRODUCTS , AND 897 898 899 900 901 902 903 904 905 906 907 908 909 910 911 912 913 914 915 916 917 918 919 920 921 922 923 924 HB319 INTRODUCEDHB319 INTRODUCED Page 34 ELECTRONIC NICOTINE DELIVERY SYSTEMS BY PERSONS UNDER THE AGE OF 21 YEARS. PROOF OF AGE IS REQUIRED. " (2) "THE USE OF SOME VAPING DEVICES MAY INCREASE YOUR RISK OF EXPOSURE TO POTENTIALLY TOXIC LEVELS OF HEAVY METALS SUCH AS LEAD, CHROMIUM, AND NICKEL." (3)(2) "WARNING: TOBACCO, TOBACCO PRODUCTS, ALTERNATIVE NICOTINE PRODUCTS, ELECTRONIC NICOTINE DELIVERY SYSTEMS, AND VAPING PRODUCTS OFFERED FOR SALE IN THIS STORE CONTAIN NICOTINE UNLESS OTHERWISE MARKED. NICOTINE IS A HIGHLY ADDICTIVE CHEMICAL WHICH CAN HARM BRAIN DEVELOPMENT IN CHILDREN AND ADOLESCENTS AND WHICH POSES SERIOUS HEALTH RISKS TO PREGNANT WOMEN AND THEIR BABIES." (c) In addition to the requirements of subsection (b), a retailer of alternative nicotine products or electronic nicotine delivery systems shall include the following statement on the required posted sign: "THE USE OF SOME VAPING DEVICES MAY INCREASE YOUR RISK OF EXPOSURE TO POTENTIALLY TOXIC LEVELS OF HEAVY METALS SUCH AS LEAD, CHROMIUM, AND NICKEL." (d) Posted signs required by this section, at a minimum, must accurately list the type of products sold at the retail establishment. If a retailer does not sell all of the product types listed in the statements described in subsections (b) or (c), the retailer may amend the products listed on the sign to accurately reflect the type of products sold." Section 2. The Alcoholic Beverage Control Board shall adopt rules to implement and administer Chapter 11 of Title 925 926 927 928 929 930 931 932 933 934 935 936 937 938 939 940 941 942 943 944 945 946 947 948 949 950 951 952 HB319 INTRODUCEDHB319 INTRODUCED Page 35 28, Code of Alabama 1975. Section 3. The following sections of the Code of Alabama 1975, are repealed: (1) Section 28-11-15, Code of Alabama 1975, relating to the posting of signs regarding the sale of tobacco and tobacco products. (2) Section 28-11-19, Code of Alabama 1975, relating to limitations on locations of specialty retailers of electronic nicotine delivery systems. Section 4. Although this bill would have as its purpose or effect the requirement of a new or increased expenditure of local funds, the bill is excluded from further requirements and application under Section 111.05 of the Constitution of Alabama of 2022, because the bill defines a new crime or amends the definition of an existing crime. Section 5. Section 2 of this act shall become effective immediately and the remaining sections of this act shall become effective on the first day of the third month following its passage and approval by the Governor, or its otherwise becoming law. 953 954 955 956 957 958 959 960 961 962 963 964 965 966 967 968 969 970 971 972