Arkansas 2023 Regular Session

Arkansas House Bill HB1725 Latest Draft

Bill / Draft Version Filed 04/03/2023

                            Stricken language would be deleted from and underlined language would be added to present law. 
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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 
 
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 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 
 
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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 
 
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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 
 
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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 
 
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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 
 
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 (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 
 
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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 
 
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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 
 
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 (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 
 
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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 
 
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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 
 
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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 
 
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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 
 
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 (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