Stricken language would be deleted from and underlined language would be added to present law. *JMB372* 04-03-2023 12:57:41 JMB372 State of Arkansas As Engrossed: H4/3/23 1 94th General Assembly A Bill 2 Regular Session, 2023 HOUSE BILL 1725 3 4 By: Representative L. Johnson 5 By: Senators J. Petty, J. Boyd 6 7 For An Act To Be Entitled 8 AN ACT TO AMEND THE ARKANSAS TOBACCO PRO DUCTS TAX ACT 9 OF 1977; TO INFORM T HE PUBLIC OF HEALTH RISKS CAUSED 10 BY VAPOR PRODUCTS, E -LIQUID PRODUCTS, AND ALTERNATIVE 11 NICOTINE PRODUCTS; T O PREVENT CONTAMINAT ION, 12 ADULTERATION, OR INC LUSION OF INGREDIENT S OR OTHER 13 SUBSTANCES IN VAPOR PRODUCTS, E-LIQUID PRODUCTS, OR 14 ALTERNATIVE NICOTINE PRODUCTS THAT MIGHT CAUSE HARM 15 TO PUBLIC HEALTH AND SAFETY; TO ENSURE TH E SAFETY OF 16 ARKANSAS YOUTH; AND FOR OTHER PURPOSES. 17 18 19 Subtitle 20 TO INFORM THE PUBLIC OF HEALTH RISKS 21 CAUSED BY VAPOR PRODUCTS, E -LIQUID 22 PRODUCTS, AND ALTERNATIVE NICOTINE 23 PRODUCTS; AND TO ENSURE THE SAFETY OF 24 ARKANSAS YOUTH. 25 26 27 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 28 29 SECTION 1. Arkansas Code 19 -6-831(b)(2), concerning the creation of 30 the Arkansas Tobacco Control Revenue Fund, is amended to read as follows: 31 (2) The fund also shall consist of any other revenues authorized 32 by law, including without limitation all certification fees collected by 33 Arkansas Tobacco Control under § 20 -65-201 et seq. and all civil penalties 34 collected by Arkansas Tobacco Control under § 20 -65-204(c). 35 36 As Engrossed: H4/3/23 HB1725 2 04-03-2023 12:57:41 JMB372 SECTION 2. Arkansas Code 19 -6-831(c)(1), concerning the creation of 1 the Arkansas Tobacco Control Revenue Fund, is amended to read as follows: 2 (c)(1) The fund shall be used for expenses incurred by Arkansas 3 Tobacco Control in the organization, maintenance, operation, and merchant 4 education and training with regard to enforcement of § 5 -27-227, § 20-65-201 5 et seq., the Arkansas Tobacco Products Tax Act of 19 77, § 26-57-201 et seq., 6 and the Unfair Cigarette Sales Act, § 4 -75-701 et seq. 7 8 SECTION 3. Arkansas Code Title 20, is amended to add an additional 9 chapter to read as follows: 10 CHAPTER 65 — TOBACCO PRODUCTS, VA POR PRODUCTS, ALTERN ATIVE NICOTINE PRODU CTS, 11 AND E-LIQUID PRODUCTS 12 13 Subchapter 1 — General Provisions 14 15 20-65-101. Definitions. 16 As used in this chapter, unless otherwise specified in this chapter: 17 (1)(A) “Alternative nicotine product” means a product that 18 consists of or contains nicotine from an y source that can be ingested into 19 the body by chewing, smoking, absorbing, dissolving, inhaling, snorting, 20 sniffing, or by any other means. 21 (B) “Alternative nicotine product” does not include a: 22 (i) Tobacco product; 23 (ii) Vapor product; 24 (iii) Product that is a drug under 21 U.S.C. § 25 321(g)(1); 26 (iv) Product that is a device under 21 U.S.C. § 27 321(h); or 28 (v) Product that constitutes a combination drug, 29 device, or biological product as described in 21 U.S.C. § 353(g); 30 (2) “Annual” or “annually” means the fiscal year from July 1 31 through the next June 30; 32 (3) “Brand family” means all styles of vapor products, 33 alternative nicotine products, and e -liquid products sold under the same 34 trademark and differentiated from another style by means of additional 35 modifiers or descriptors, and includes any brand name alone or in conjunction 36 As Engrossed: H4/3/23 HB1725 3 04-03-2023 12:57:41 JMB372 with any other word, trademark, logo, symbol, motto, selling message, 1 recognizable pattern of colors, or any other indicia of product 2 identification identical or similar to or identifiable with a previously 3 known brand of vapor products, alternative nicotine product, or e -liquid 4 products; 5 (4) “Childcare facility” means the same as provided in § 20 -78-6 202(2); 7 (5)(A) “Child-resistant packaging” mea ns packaging that is 8 designed or constructed to be: 9 (i) Significantly difficult for a child under five 10 (5) years of age to: 11 (a) Open; or 12 (b) Obtain a toxic or harmful amount of the 13 substance contained in the packaging within a reasonable t ime; and 14 (ii) Not difficult for an average adult to use 15 properly. 16 (B) “Child-resistant packaging” does not mean packaging 17 that children cannot open or obtain a toxic or harmful amount within a 18 reasonable time when tested in accordance with the method described in 16 19 C.F.R. § 1700.20, as it existed on January 1, 2015; 20 (6) “Consumer” means a member of the public at large; 21 (7)(A) “E-liquid container” means a bottle or other container of 22 e-liquid that is sold or provided for mixing at retail a nd is marketed or 23 intended for use in a vapor product. 24 (B) "E-liquid container" does not include e -liquid 25 contained in a cartridge that is sold, marketed, or intended for use in a 26 vapor product if the cartridge is prefilled and sealed by the manufactur er 27 and is not intended to be opened by the consumer; 28 (8) “E-liquid” and “e-liquid product” means a liquid product, 29 which may or may not contain nicotine, that is inhaled when using a vapor 30 product, and that may or may not include without limitation prop ylene glycol, 31 vegetable glycerin, nicotine from any source, and flavorings; 32 (9) “Healthcare facility” means the same as in § 20 -27-1803(6); 33 (10)(A) “Manufacturer” means a person that manufactures, 34 fabricates, assembles, or processes a tobacco product or manufactures or 35 fabricates a vapor product, alternative nicotine product, or e -liquid 36 As Engrossed: H4/3/23 HB1725 4 04-03-2023 12:57:41 JMB372 product, including without limitation federally licensed importers and 1 federally licensed distributors that deal in tobacco products, vapor 2 products, alternative nico tine products, or e-liquid products. 3 (B) “Manufacturer” includes a sales entity affiliate of 4 the manufacturer or any other entity representing the manufacturer with 5 regard to the sale of tobacco products, vapor products, alternative nicotine 6 products, or e-liquid products produced by the manufacturer to wholesalers or 7 permitted retailers. 8 (C) “Manufacturer” specifically includes a person that 9 mixes, compounds, repackages, or resizes e -liquid products or vapor products; 10 (11) “School” means: 11 (A) Any buildings, parking lots, playing fields, 12 playgrounds, school buses, or other school vehicles; or 13 (B) Any off-campus school-sponsored or school-sanctioned 14 events with respect to any public, open -enrollment public charter school, or 15 private school where children attend classes in kindergarten through grade 16 twelve (K-12); 17 (12) “Tobacco products” means all products containing tobacco 18 for consumption, including without limitation cigarettes, cigars, little 19 cigars, cigarillos, chewing tobacco, smokel ess tobacco, snuff, smoking 20 tobacco, including pipe tobacco, and smoking tobacco substitutes; and 21 (13) “Vapor product” means an electronic oral device of any size 22 or shape that contains a vapor of nicotine, e -liquid, or any other substance 23 that when used or inhaled simulates smoking, regardless of whether a visible 24 vapor is produced, including without limitation a device that: 25 (A) Is composed of a heating element, battery, electronic 26 circuit, chemical process, mechanical device, or a combination of h eating 27 element, battery, electronic circuit, chemical process, or mechanical device; 28 (B) Works in combination with a cartridge, other 29 container, or liquid delivery device containing nicotine, e -liquid, or any 30 other substance and manufactured for use wi th vapor products; 31 (C) Is manufactured, distributed, marketed, or sold as any 32 type or derivation of a vapor product, e -cigarette, e-cigar, e-pipe, or any 33 other product name or descriptor; and 34 (D) Does not include a product regulated as a drug or 35 device by the Federal Food, Drug, and Cosmetic Act, 21 U.S.C. § 301 et seq., 36 As Engrossed: H4/3/23 HB1725 5 04-03-2023 12:57:41 JMB372 as it existed on January 1, 2015. 1 2 20-65-102. Safety inspections — Child-resistant packaging. 3 (a) In order to ensure that the citizens of this state receive only 4 tobacco products, vapor products, alternative nicotine products, or e -liquid 5 products that are fresh, uncontaminated, unadulterated, and otherwise free of 6 substances that might cause harm to public health and safety and to ensure 7 the safety of Arkansas youth, the Directo r of Arkansas Tobacco Control may: 8 (1) Inspect or cause to be inspected any tobacco product, vapor 9 product, alternative nicotine product, or e -liquid container in places of 10 storage or distribution authorized under state law; 11 (2) In addition to any authorization or remedy under law, 12 require any tobacco products, vapor products, alternative nicotine products, 13 or e-liquid containers found to be contaminated, adulterated, damaged, or not 14 fresh be removed from stock and be either returned to the proper w holesaler 15 or manufacturer for disposal according to law or delivered to the director 16 for destruction or disposal; 17 (3) Prescribe any form, application, certificate, or other 18 documentation or record to be used in the administration and enforcement of 19 this chapter; and 20 (4) Promulgate rules necessary to implement and effectuate the 21 purposes of this chapter. 22 (b) All alternative nicotine products and e -liquid containers sold at 23 retail in this state shall satisfy the child -resistant packaging 24 effectiveness standards described in § 20 -65-101 and the requirements of the 25 Federal Nicotine Poisoning Prevention Act, Public Law No. 114 -116 (2016), 15 26 U.S.C. § 1472a. 27 28 20-65-103. Prohibition on use in certain settings. 29 It is a violation of this chapter for any pe rson to use a tobacco 30 product, vapor product, alternative nicotine product, or e -liquid product in 31 or on the grounds of any school, childcare facility, or healthcare facility. 32 33 20-65-104. Advertising prohibitions for vapor product, alternative 34 nicotine product, e-liquid product, or e -liquid containers. 35 A person shall not advertise, market, or offer for sale in this state 36 As Engrossed: H4/3/23 HB1725 6 04-03-2023 12:57:41 JMB372 any tobacco products, vapor products, alternative nicotine products, e -liquid 1 products, or e-liquid containers by using, in the labelin g or design of the 2 product, its packaging, or in its advertising or marketing materials, trade 3 dress, trademarks, branding, or other related imagery that: 4 (1) Imitates or replicates those of food brands or other related 5 products that are commonly market ed to children or minors, including, but not 6 limited to, breakfast cereal, cookies, juice drinks, soft drinks, frozen 7 drinks, ice creams, sorbets, sherbets, and frozen pops; 8 (2) Depicts or signifies characters or symbols that are known to 9 a reasonable person to appeal primarily to or are commonly associated with 10 children or minors, including, but not limited to, superheroes, cartoons or 11 cartoon characters, including anime characters, comic book characters, video 12 game characters, television show character s, movie characters, mythical 13 creatures, unicorns, or that otherwise incorporates related imagery or 14 scenery; or 15 (3) Uses the terms “candy”, “candies”, “cake”,” “cakes”, “pies”, 16 or “cupcakes” or any variant of these terms when that variant term is used in 17 a manner to market to children or minors or known to a reasonable person to 18 appeal primarily to children or minors, or any other term referencing a type 19 or brand of candy, cakes, pastries, or pies, including types or brands of 20 candy, cakes, pastries, or pies that do not include the words “candy”, 21 “candies”, “cake”, “cakes”, “pies”, or “cupcakes” in their names, labels, or 22 slogans. 23 24 20-65-105. Contaminated or adulterated tobacco products, vapor 25 products, alternative nicotine products, or e -liquid products. 26 (a) It is a violation of this chapter for any person to offer for sale 27 in this state or offer for sale or sell to persons located in this state any 28 contaminated or adulterated tobacco products, vapor product, alternative 29 nicotine product, or e -liquid product. 30 (b) A tobacco product, vapor product, alternative nicotine product, or 31 e-liquid product in this state is contaminated or adulterated if the product: 32 (1) Consists in whole or in part of any filthy, putrid, or 33 decomposed substance; 34 (2) Contains any added poisonous or deleterious substance that 35 may render the product injurious to public health; or 36 As Engrossed: H4/3/23 HB1725 7 04-03-2023 12:57:41 JMB372 (3) Does not have an approved certification as required § 20 -65-1 202. 2 3 Subchapter 2 — Manufacturer Directory for Vapor Products, Alternative 4 Nicotine Products, or E-liquid Products 5 6 20-65-201. Definitions. 7 As used in this subchapter: 8 (1) “Alternative nicotine product” has the same meaning as in § 9 20-65-101(1); 10 (2) “E-liquid” and “e-liquid product” means a liquid product 11 containing nicotine from any source that is inhaled when using a vapor 12 product, and that may or may not include without limitation propylene glycol, 13 vegetable glycerin, and flavorings; and 14 (3) “Vapor product” means an electronic oral device of any size 15 or shape that contains a vapor of nicotine or e -liquid that when used or 16 inhaled simulates smoking, regardless of whether a visible vapor is produced, 17 including without limitation a device that: 18 (A) Is composed of a heating element, battery, electronic 19 circuit, chemical process, mechanical device, or a combination of heating 20 element, battery, electronic circuit, chemical process, or mechanical device; 21 (B) Works in combination with a cartridge, other 22 container, or liquid delivery device containing nicotine from an y source or 23 e-liquid and manufactured for use with vapor products; 24 (C) Is manufactured, distributed, marketed, or sold as any 25 type or derivation of a vapor product, e -cigarette containing nicotine from 26 any source, e-cigar containing nicotine from any s ource, e-pipe containing 27 nicotine from any source, or any other vapor product name or descriptor; and 28 (D) Does not include a product regulated as a drug or 29 device by the Federal Food, Drug, and Cosmetic Act, 21 U.S.C. § 301 et seq., 30 as it existed on January 1, 2015. 31 32 20-65-202. Establishment. 33 (a) The Director of Arkansas Tobacco Control shall develop and 34 maintain a directory listing all manufacturers that have provided 35 certifications that comply with this subchapter and each vapor product, 36 As Engrossed: H4/3/23 HB1725 8 04-03-2023 12:57:41 JMB372 alternative nicotine product, and e -liquid product that is listed in those 1 certifications. 2 (b) The director shall: 3 (1) Make the directory available for public inspection on 4 Arkansas Tobacco Control's website by July 1, 2024; and 5 (2) Update the directory as necessary in order to correct 6 mistakes and to add or remove manufacturers or a vapor product, alternative 7 nicotine product, or e -liquid product consistent with the requirements of 8 this section on a monthly basis. 9 (c) A person or entity is deemed to have received notice that a vapor 10 product, alternative nicotine product, or e -liquid product of a manufacturer 11 is not included in the directory maintained by Arkansas Tobacco Control under 12 this section at the time Arkansas Tobacco Control’s website fails to lis t any 13 vapor product, alternative nicotine product, or e -liquid product in the 14 directory or at the time the director removes the vapor product, alternative 15 nicotine product, or e -liquid product from the directory. 16 (d)(1)(A) The director may not remove the manufacturer or its vapor 17 product, alternative nicotine product, or e -liquid product from the directory 18 until at least fifteen (15) days after the manufacturer has been given notice 19 of an intended action. 20 (B) Notice shall be sufficient and be deemed i mmediately 21 received by a manufacturer if the notice is sent either electronically or by 22 facsimile to an email address or facsimile number, as the case may be, 23 provided by the manufacturer in the manufacturer’s most recent certification 24 filed under this sub chapter. 25 (2) The vapor product, alternative nicotine product, or e -liquid 26 product manufacturer shall have fifteen (15) days from the date of service of 27 the notice of the director’s intended action to establish that the vapor 28 product, alternative nicotin e product, or e-liquid product manufacturer or 29 its vapor product, alternative nicotine product, or e -liquid product should 30 be included in the directory. 31 (3) If after fifteen (15) days from the date of service of the 32 notice of the director’s intended act ion the manufacturer of vapor product, 33 alternative nicotine product, or e -liquid product remains in noncompliance, 34 and the manufacturer has not requested a hearing before the Arkansas Tobacco 35 Control Board within fifteen (15) days of notice of the director ’s intended 36 As Engrossed: H4/3/23 HB1725 9 04-03-2023 12:57:41 JMB372 action, the manufacturer and its vapor product, alternative nicotine product, 1 or e-liquid product shall be removed from the directory. 2 (4) Every manufacturer shall provide and update as necessary an 3 email address to the Director of Arkansas Tobacco Control for the purpose of 4 receiving any notifications as may be required by this subchapter. 5 (e)(1) Beginning June 1, 2024, a vapor product, alternative nicotine 6 product, or e-liquid product shall not be offered for sale in this state or 7 sold to a person located in this state unless the manufacturer certifies 8 before that date on a form prescribed by the director, under penalty of 9 perjury, either: 10 (A) The vapor product, alternative nicotine product, or e -11 liquid product was on the market in the United States as of August 8, 2016, 12 and the manufacturer has applied for a marketing order under 21 U.S.C. § 387j 13 for the vapor product, alternative nicotine product, or e -liquid product, 14 whichever is applicable, by submitting a premarket tobacco product 15 application on or before September 9, 2020, if the product contains tobacco -16 derived nicotine, or May 14, 2022, if the product contains nontobacco -derived 17 nicotine, to the United States Food and Drug Administration, and either: 18 (i) The premarket tobacc o application for the vapor 19 product, alternative nicotine product, or e -liquid product remains under 20 review by the United States Food and Drug Administration; 21 (ii) The United States Food and Drug Administration 22 has issued a no marketing order for the vapor product, alternative nicotine 23 product, or e-liquid product, whichever is applicable, but the United States 24 Food and Drug Administration or a federal court has issued a stay order or 25 injunction during the pendency of the manufacturer's appeal of the no 26 marketing order; or 27 (iii) The United States Food and Drug Administration 28 has not issued a marketing order or denial order for the vapor product, 29 alternative nicotine product, or e -liquid product, but the manufacturer has 30 amended, supplemented, or r efiled the premarket tobacco application for the 31 vapor product, alternative nicotine product, or e -liquid product to address 32 written recommended corrections from the United States Food and Drug 33 Administration within six (6) months from the date the manufac turer received 34 the written recommended corrections from the United States Food and Drug 35 Administration; or 36 As Engrossed: H4/3/23 HB1725 10 04-03-2023 12:57:41 JMB372 (B) The manufacturer has received a marketing order or 1 other authorization under 21 U.S.C. § 387j for the vapor product, alternative 2 nicotine product, or e-liquid product from the United States Food and Drug 3 Administration. 4 (2) In addition to the requirements in subsection (e) of this 5 section, each manufacturer shall provide to Arkansas Tobacco Control a copy 6 of the cover page of the: 7 (A) Premarket tobacco application with evidence of receipt 8 of the application by the United States Food and Drug Administration; 9 (B) Marketing order or other authorization issued under 21 10 U.S.C. § 387j; and 11 (C) If applicable under subdivision (e)(1)(A)( iii) of this 12 section, the written recommended corrections from the United States Food and 13 Drug Administration with dates of receipt. 14 15 20-65-203. Material change to certification. 16 A manufacturer shall notify the Director of Arkansas Tobacco Control 17 within thirty (30) days of any material change to the information provided in 18 § 20-65-202, including issuance by the United States Food and Drug 19 Administration of: 20 (1) A market order or other authorization issued under 21 U.S.C. 21 § 387j; 22 (2) An order requiring a manufacturer to remove a vapor product, 23 alternative nicotine product, or e -liquid product from the market either 24 temporarily or permanently; 25 (3) Any notice of action taken by the United States Food and 26 Drug Administration affecting the abili ty of the new vapor product, 27 alternative nicotine product, or e -liquid product to be introduced or 28 delivered into interstate commerce for commercial distribution; 29 (4) Any change in policy that results in a vapor product, 30 alternative nicotine product, o r e-liquid product no longer being exempt from 31 oversight of the United States Food and Drug Administration; or 32 (5) Evidence that the United States Food and Drug Administration 33 has provided the manufacturer with written recommended corrections or 34 requests for amendments, supplemental documentation, or refiling of the 35 premarket tobacco application for the vapor prod uct, alternative nicotine 36 As Engrossed: H4/3/23 HB1725 11 04-03-2023 12:57:41 JMB372 product, or e-liquid product. 1 2 20-65-204. Fees — Violations. 3 (a)(1) Each certifying manufacturer shall pay an initial fee of one 4 thousand dollars ($1,000) for each brand family of vapor products, 5 alternative nicotine products, or e-liquid products to offset the costs 6 incurred by Arkansas Tobacco Control for processing the certifications and 7 operating the directory under § 20 -65-202. 8 (2) The Director of Arkansas Tobacco Control shall collect an 9 annual fee of five hundred doll ars ($500) for each brand family of vapor 10 products, alternative nicotine products, or e -liquid products to offset the 11 costs associated with maintaining the directory and satisfying the 12 requirements of this subchapter. 13 (3) Any certification fees collecte d under this section shall be 14 deposited into the Arkansas Tobacco Control Revenue Fund established under § 15 19-6-831. 16 (b)(1) If a manufacturer can demonstrate to the director that the 17 United States Food and Drug Administration has issued a rule, guidance, or 18 any other formal statement that temporarily exempts a vapor product, 19 alternative nicotine product, or e -liquid product from the federal premarket 20 tobacco application requirements, the vapor product, alternative nicotine 21 product, or e-liquid product may be added to the directory upon request by 22 the manufacturer if the manufacturer provides sufficient evidence that the 23 vapor product, alternative nicotine product, or e -liquid product is compliant 24 with the federal rule, guidance, or other formal statement, as applicable. 25 (2) Beginning on and after July 1, 2024, or on the date that 26 Arkansas Tobacco Control first makes the directory available for public 27 inspection on its website as provided in § 20 -65-202, whichever is later, a 28 manufacturer who offers for s ale a vapor product, alternative nicotine 29 product, or e-liquid product that is not listed on the directory is subject 30 to a civil penalty of one thousand dollars ($1,000) daily for each vapor 31 product, alternative nicotine product, or e -liquid product offere d for sale 32 in violation of § 20 -65-202 until the vapor product, alternative nicotine 33 product, or e-liquid product is removed from the market or properly listed on 34 the directory. 35 (3) In addition to any penalty prescribed by law, a corporation, 36 As Engrossed: H4/3/23 HB1725 12 04-03-2023 12:57:41 JMB372 partnership, sole proprietor, limited partnership, or association engaged in 1 the manufacture of vapor products, alternative nicotine products, or e -liquid 2 products that knowingly makes a false certification under this subchapter is 3 subject to a civil penalty of not less than seventy-five thousand dollars 4 ($75,000) but not more than two hundred fifty thousand dollars ($250,000) for 5 each false certification. 6 (4) Beginning on July 1, 2024, or on the date that the Arkansas 7 Tobacco Control first makes the directory ava ilable for public inspection on 8 its website as provided in this subchapter, whichever is later, it is 9 unlawful for any person or entity to sell, offer, or possess in this state, 10 or import for personal consumption in this state, vapor products, alternative 11 nicotine products, or e -liquid products that the person or entity knows is 12 not included in the directory maintained by the director under this 13 subchapter. 14 (5) A person or entity is deemed to have received notice that a 15 manufacturer is not included in th e directory maintained by Arkansas Tobacco 16 Control under this subsection at the time Arkansas Tobacco Control’s website 17 fails to list any manufacturer in the directory or at the time the director 18 removes the manufacturer from the directory. 19 (6) If a vapor product, alternative nicotine product, or e -20 liquid product or a manufacturer of a vapor product, alternative nicotine 21 product, or e-liquid product is removed from the directory established and 22 maintained by the director under § 20 -65-202, each wholesaler shall have 23 sixty (60) days from the date any vapor product, alternative nicotine 24 product, or e-liquid product is removed from the directory to remove any 25 vapor product, alternative nicotine product, or e -liquid product from the 26 wholesaler’s inventory an d physical location where the wholesaler takes 27 orders for, receives orders for, or sells the vapor product, alternative 28 nicotine product, or e -liquid product. 29 (7) If a vapor product, alternative nicotine product, or e -30 liquid product or a manufacturer of a vapor product, alternative nicotine 31 product, or e-liquid product is removed from the directory established and 32 maintained by the director under § 20 -65-201, each retailer shall have one 33 hundred twenty (120) days from the date any vapor product, alternat ive 34 nicotine product, or e -liquid product is removed from the directory to remove 35 any vapor product, alternative nicotine product, or e -liquid product from the 36 As Engrossed: H4/3/23 HB1725 13 04-03-2023 12:57:41 JMB372 retailer’s inventory and permitted location. 1 (c)(1) In addition to the other fines and forfeit ures, a person who 2 violates § 20-65-202 may be subject to a penalty for vapor products, 3 alternative nicotine products, or e -liquid products held, sold, or offered 4 for sale and confiscated by Arkansas Tobacco Control under state law in the 5 amount of: 6 (A) Twenty-five dollars ($25.00) for each individual vapor 7 product, alternative nicotine product, or e -liquid product up to twenty (20) 8 individual vapor products, alternative nicotine products, or e -liquid 9 products; and 10 (B) Fifty dollars ($50.00) for eac h individual vapor 11 product, alternative nicotine product, or e -liquid product in excess of 12 twenty (20) individual vapor products, alternative nicotine products, or e -13 liquid products. 14 (2) The penalty under subdivision (c)(1) of this section shall 15 be held to be in the nature of a civil penalty and may be collected by civil 16 or administrative action and may be levied by the Arkansas Tobacco Control 17 Board or any circuit court of this state. 18 (3) A penalty assessed under subsection (c) of this section 19 shall be deposited into the Arkansas Tobacco Control Revenue Fund established 20 under § 19-6-831. 21 22 SECTION 4. Arkansas Code § 26 -57-203(4), concerning the definition of 23 "child-resistant packaging" within the Arkansas Tobacco Products Tax Act of 24 1977, is repealed to be codified in a more appropriate section. 25 (4)(A) “Child-resistant packaging” means packaging that is 26 designed or constructed to be: 27 (i) Significantly difficult for children under five 28 (5) years of age to: 29 (a) Open; or 30 (b) Obtain a toxic or harmful amount of the 31 substance contained therein within a reasonable time; and 32 (ii) Not difficult for an average adult to use 33 properly. 34 (B) “Child-resistant packaging” does not mean packaging 35 that children cannot open or obtain a toxic or harmful amount within a 36 As Engrossed: H4/3/23 HB1725 14 04-03-2023 12:57:41 JMB372 reasonable time when tested in accordance with the method described in 16 1 C.F.R. § 1700.20, as it existed on January 1, 2015; 2 3 SECTION 5. Arkansas Code 26 -57-247(b), concerning seizure, forfeiture, 4 and disposition of tobacco products and other property, is amended to read as 5 follows: 6 (b) The Director of Arkansas Tobacco Control may seize and hold for 7 disposition of the courts o r the Arkansas Tobacco Control Board all tobacco 8 products, alternative nicotine products, or e -liquid products found in the 9 possession of a person dealing in, or a consumer of, tobacco products, vapor 10 products, alternative nicotine products, or e -liquid products if: 11 (1) Prima facie evidence exists that the full amount of excise 12 tax due on the tobacco products has not been paid to the Secretary of the 13 Department of Finance and Administration; 14 (2) Tobacco products, vapor products, alternative nicotine 15 products, or e-liquid products are in the possession of a wholesaler who does 16 not possess a current Arkansas wholesale permit; 17 (3) A retail establishment does not possess a current Arkansas 18 retail permit; or 19 (4) The tobacco products, vapor products, alternative nicotine 20 products, or e-liquid products have been offered for sale to the public at 21 another location without a current Arkansas retail permit .; or 22 (5) Tobacco products, vapor products, alternative nicotine 23 products, or e-liquid products are possessed, sold, or offered for sale in 24 violation of Title 20, Chapter 65. 25 26 SECTION 6. Arkansas Code § 26 -57-254 is repealed to be codified in a 27 more appropriate section. 28 26-57-254. Safety inspections on permitted products — Restrictions on 29 use of e-liquid products and alternative nicotine products — Definitions. 30 (a) In order to assure that the citizens of this state receive only 31 tobacco products, vapor products, alternative nicotine products, or e -liquid 32 products that are fresh and not contaminated, and to ensure the safety of 33 Arkansas youth, the Director of Arkansas Tobacco Control is authorized under 34 this subchapter to: 35 (1) Inspect or cause to be inspected any tobacco product, vapor 36 As Engrossed: H4/3/23 HB1725 15 04-03-2023 12:57:41 JMB372 product, alternative nicotine product, or e -liquid container in places of 1 storage or distribution authorized under this subchapter; and 2 (2) Require any tobacco products, vapor products, alternative 3 nicotine products, or e -liquid containers found to be contaminated, damaged, 4 or not fresh be removed from stock and be either returned to the proper 5 wholesaler or manufacturer for disposal according to law or delivered to the 6 Director of Arkansas Tobacco Control for destruction or disposal. 7 (b)(1) It is a violation for any person to use a tobacco product, 8 vapor product, alternative nicotine product, or e -liquid product in or on the 9 grounds of any school, childcare facility, or healthcare facility. 10 (2) As used in subdivision (b)(1) of this section: 11 (A) “Childcare facility” means the same as provided in § 12 20-78-202(2); 13 (B) “Healthcare facility” means the same as provided in § 14 20-27-1803(6); and 15 (C) “School” means: 16 (i) Any buildings, parking lots, playing fields, 17 playgrounds, school buses, or other school vehicles; or 18 (ii) Any off-campus school-sponsored or school-19 sanctioned events with respect to any public, charter, or private school 20 where children attend classes in kindergarten programs or grades one through 21 twelve (1-12). 22 (c) On and after July 22, 2015, all alternative nicotine products and 23 e-liquid containers containing nicotine sold at retail in this state shall 24 satisfy the child-resistant packaging effectiveness standards described in § 25 26-57-203 when tested in accordance with the method described by 16 C.F.R. § 26 1700.20, as it existed on January 1, 2015. 27 (d) As used in this section, “e -liquid container” means a bottle or 28 other container of e -liquid that is sold or provided for mixing at retail and 29 is marketed or intended for use in a vapor product, but does not include e -30 liquid contained in a c artridge that is sold, marketed, or intended for use 31 in a vapor product if the cartridge is prefilled and sealed by the 32 manufacturer and is not intended to be opened by the consumer. 33 34 SECTION 7. Arkansas Code 26 -57-255(g)(3)(A), concerning the creation 35 of the Arkansas Tobacco Control Board, is amended to read as follows: 36 As Engrossed: H4/3/23 HB1725 16 04-03-2023 12:57:41 JMB372 (A) Conduct public hearings when appropriate regarding a 1 permit authorized under this subchapter or in violation of this subchapter, 2 the Unfair Cigarette Sales Act, § 4 -75-701 et seq., § 5-27-227, Title 20, 3 Chapter 65, or any other federal, state, or local statute, ordinance, rule, 4 or regulation concerning the sale of tobacco products, vapor products, 5 alternative nicotine products, or e -liquid products to minors or the rules 6 promulgated by Arkansas Tobacco Control. 7 8 SECTION 8. Arkansas Code 26 -57-255(g)(3)(B), concerning the creation 9 of the Arkansas Tobacco Control Board, is amended to read as follows: 10 (B) After notice and hearing held in accordance with the 11 Arkansas Administrative Procedure Act, § 25 -15-201 et seq., if the board 12 finds a violation of this subchapter, the Unfair Cigarette Sales Act, § 4 -75-13 701 et seq., Title 20, Chapter 65, or the rules promulgated by Arkansas 14 Tobacco Control, the board may suspend or revoke any or all permits issued by 15 the director to any person. 16 17 SECTION 9. Arkansas Code 26 -57-255(g)(3)(C), concerning the creation 18 of the Arkansas Tobacco Control Board, is amended to r ead as follows: 19 (C) The board may levy a civil penalty in an amount not to 20 exceed five thousand dollars ($5,000) for each violation against a person 21 found to be in violation of this subchapter, the Unfair Cigarette Sales Act, 22 4-75-701 et seq., Title 20, Chapter 65, or the rules promulgated by Arkansas 23 Tobacco Control. 24 25 SECTION 10. Arkansas Code 26 -57-256(a), concerning the powers of 26 Arkansas Tobacco Control, is amended to add an additional subdivision to read 27 as follows: 28 (7)(A) Develop and maintain a directory as described under § 20 -29 65-202. 30 (B) Arkansas Tobacco Control shall impose a civil penalty 31 set under § 20-65-204 for a violation of § 20 -65-201 et seq. 32 33 /s/L. Johnson 34 35 36