| 1 | 1 | | General Assembly Raised Bill No. 7059 |
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| 2 | 2 | | January Session, 2015 LCO No. 6136 |
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| 3 | 3 | | *06136_______FIN* |
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| 4 | 4 | | Referred to Committee on FINANCE, REVENUE AND BONDING |
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| 5 | 5 | | Introduced by: |
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| 6 | 6 | | (FIN) |
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| 7 | 7 | | |
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| 8 | 8 | | General Assembly |
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| 9 | 9 | | |
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| 10 | 10 | | Raised Bill No. 7059 |
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| 11 | 11 | | |
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| 12 | 12 | | January Session, 2015 |
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| 13 | 13 | | |
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| 14 | 14 | | LCO No. 6136 |
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| 15 | 15 | | |
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| 16 | 16 | | *06136_______FIN* |
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| 17 | 17 | | |
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| 18 | 18 | | Referred to Committee on FINANCE, REVENUE AND BONDING |
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| 19 | 19 | | |
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| 20 | 20 | | Introduced by: |
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| 21 | 21 | | |
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| 22 | 22 | | (FIN) |
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| 23 | 23 | | |
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| 24 | 24 | | AN ACT ESTABLISHING REGISTRATION FEES FOR SELLERS AND MANUFACTURERS OF ELECTRONIC CIGARETTE PRODUCTS. |
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| 25 | 25 | | |
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| 26 | 26 | | Be it enacted by the Senate and House of Representatives in General Assembly convened: |
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| 27 | 27 | | |
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| 28 | 28 | | Section 1. Subsection (a) of section 53-344b of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2016): |
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| 29 | 29 | | |
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| 30 | 30 | | (a) As used in this section and sections 2 and 3 of this act: |
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| 31 | 31 | | |
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| 32 | 32 | | (1) "Electronic nicotine delivery system" means an electronic device that may be used to simulate smoking in the delivery of nicotine or other substance to a person inhaling from the device, and includes, but is not limited to, an electronic cigarette, electronic cigar, electronic cigarillo, electronic pipe or electronic hookah and any related device and any cartridge, electronic cigarette liquid or other component of such device; |
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| 33 | 33 | | |
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| 34 | 34 | | (2) "Cardholder" means any person who presents a driver's license or an identity card to a seller or seller's agent or employee, to purchase or receive an electronic nicotine delivery system or vapor product from such seller or seller's agent or employee; |
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| 35 | 35 | | |
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| 36 | 36 | | (3) "Identity card" means an identification card issued in accordance with the provisions of section 1-1h; |
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| 37 | 37 | | |
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| 38 | 38 | | (4) "Transaction scan" means the process by which a seller or seller's agent or employee checks, by means of a transaction scan device, the validity of a driver's license or an identity card; |
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| 39 | 39 | | |
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| 40 | 40 | | (5) "Transaction scan device" means any commercial device or combination of devices used at a point of sale that is capable of deciphering in an electronically readable format the information encoded on the magnetic strip or bar code of a driver's license or an identity card; |
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| 41 | 41 | | |
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| 42 | 42 | | (6) "Sale" or "sell" means an act done intentionally by any person, whether done as principal, proprietor, agent, servant or employee, of transferring, or offering or attempting to transfer, for consideration, an electronic nicotine delivery system or vapor product, including bartering or exchanging, or offering to barter or exchange, an electronic nicotine delivery system or vapor product; |
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| 43 | 43 | | |
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| 44 | 44 | | (7) "Give" or "giving" means an act done intentionally by any person, whether done as principal, proprietor, agent, servant or employee, of transferring, or offering or attempting to transfer, without consideration, an electronic nicotine delivery system or vapor product; |
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| 45 | 45 | | |
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| 46 | 46 | | (8) "Deliver" or "delivering" means an act done intentionally by any person, whether as principal, proprietor, agent, servant or employee, of transferring, or offering or attempting to transfer, physical possession or control of an electronic nicotine delivery system or vapor product; [and] |
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| 47 | 47 | | |
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| 48 | 48 | | (9) "Vapor product" means any product that employs a heating element, power source, electronic circuit or other electronic, chemical or mechanical means, regardless of shape or size, to produce a vapor that may or may not include nicotine, that is inhaled by the user of such product; and |
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| 49 | 49 | | |
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| 50 | 50 | | (10) "Electronic cigarette liquid" means a liquid that, when used in an electronic nicotine delivery system or vapor product, produces a vapor that may or may not include nicotine and is inhaled by the user of such electronic nicotine delivery system or vapor product. |
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| 51 | 51 | | |
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| 52 | 52 | | Sec. 2. (NEW) (Effective January 1, 2016) (a) On and after March 1, 2016, no person in this state may sell, offer for sale or possess with intent to sell an electronic nicotine delivery system or vapor product unless such person has obtained an electronic nicotine delivery system certificate of dealer registration from the Commissioner of Consumer Protection pursuant to this section. An electronic nicotine delivery system certificate of dealer registration shall allow the sale of electronic nicotine delivery systems or vapor products. A holder of an electronic nicotine delivery system certificate of dealer registration shall post such registration in a prominent location adjacent to electronic nicotine delivery system products or vapor products offered for sale. |
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| 53 | 53 | | |
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| 54 | 54 | | (b) (1) On or after January 1, 2016, any person desiring an electronic nicotine delivery system certificate of dealer registration or a renewal of such a certificate of dealer registration shall make a sworn application therefor to the Department of Consumer Protection upon forms to be furnished by the department, showing the name and address of the applicant, the location of the place of business which is to be operated under such certificate of dealer registration and a financial statement setting forth all elements and details of any business transactions connected with the application. The application shall also indicate any crimes of which the applicant has been convicted. Applicants shall submit documents sufficient to establish that state and local building, fire and zoning requirements will be met at the location of any sale. The department may, in its discretion, conduct an investigation to determine whether a certificate of dealer registration shall be issued to an applicant. |
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| 55 | 55 | | |
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| 56 | 56 | | (2) The commissioner shall issue an electronic nicotine delivery system certificate of dealer registration to any such applicant not later than thirty days after the date of application unless the commissioner finds: (A) The applicant has wilfully made a materially false statement in such application or in any other application made to the commissioner; (B) the applicant has neglected to pay any taxes due to this state; or (C) the applicant has been convicted of violating any of the cigarette or other tobacco products tax laws of this or any other state or the cigarette tax laws of the United States or has such a criminal record that the commissioner reasonably believes that such applicant is not a suitable person to be issued a license, provided no refusal shall be rendered under this subdivision except in accordance with the provisions of sections 46a-80 and 46a-81 of the general statutes. |
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| 57 | 57 | | |
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| 58 | 58 | | (3) A certificate of dealer registration issued under this section shall be renewed annually and may be suspended or revoked at the discretion of the Department of Consumer Protection. Any person aggrieved by a denial of an application, refusal to renew a dealer registration or suspension or revocation of a dealer registration may appeal in the manner prescribed for permits under section 30-55 of the general statutes. An electronic nicotine delivery system certificate of dealer registration shall not constitute property, nor shall it be subject to attachment and execution, nor shall it be alienable, except that it shall descend to the estate of a deceased holder of a certificate of dealer registration by the laws of testate or intestate succession. |
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| 59 | 59 | | |
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| 60 | 60 | | (4) The applicant shall pay to the department a nonrefundable application fee of one hundred dollars, which fee shall be in addition to the annual fee prescribed in subsection (c) of this section. An application fee shall not be charged for an application to renew a certificate of dealer registration. |
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| 61 | 61 | | |
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| 62 | 62 | | (5) In any case in which a certificate of dealer registration has been issued to a partnership, if one or more of the partners dies or retires, the remaining partner or partners need not file a new application for the unexpired portion of the current certificate of dealer registration, and no additional fee for such unexpired portion shall be required. Notice of any such change shall be given to the department and the certificate of dealer registration shall be endorsed to show correct ownership. Whenever any partnership changes by reason of the addition of one or more partners, a new application and the payment of new application and annual fees shall be required. |
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| 63 | 63 | | |
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| 64 | 64 | | (c) The annual fee for an electronic nicotine delivery system certificate of dealer registration shall be five hundred dollars. |
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| 65 | 65 | | |
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| 66 | 66 | | (d) The department may renew a certificate of dealer registration issued under this section that has expired if the applicant pays to the department any fine imposed by the commissioner pursuant to subsection (c) of section 21a-4 of the general statutes, which fine shall be in addition to the fees prescribed in this section for the certificate of dealer registration applied for. The provisions of this subsection shall not apply to any certificate of dealer registration which is the subject of administrative or court proceedings. |
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| 67 | 67 | | |
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| 68 | 68 | | (e) (1) Any person in this state who knowingly sells, offers for sale or possesses with intent to sell an electronic nicotine delivery system or vapor product without a certificate of dealer registration as required under this section shall be fined not more than fifty dollars for each day of such violation, except that the commissioner may waive all or any part of such fine if it is proven to the commissioner's satisfaction that the failure to obtain or renew such certificate of dealer registration was due to reasonable cause. |
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| 69 | 69 | | |
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| 70 | 70 | | (2) Notwithstanding the provisions of subdivision (1) of this subsection, any person whose electronic nicotine delivery system certificate of dealer registration has expired and who knowingly sells, offers for sale or possesses with intent to sell an electronic nicotine delivery system or vapor product, where such person's period of operation without such certificate of dealer registration is not more than ninety days from the date of expiration of such certificate of dealer registration, shall have committed an infraction and shall be fined ninety dollars. |
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| 71 | 71 | | |
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| 72 | 72 | | (3) Notwithstanding the provisions of subdivisions (1) and (2) of this subsection, no penalty shall be imposed under this subsection unless the commissioner sends written notice of any violation to the person who is subject to a penalty under subdivision (1) or (2) of this subsection and allows such person sixty days from the date such notice was sent to cease such violation and comply with the requirements of this section. Such written notice shall be sent, within available appropriations, by mail evidenced by a certificate of mailing or other similar United States Postal Service form from which the date of deposit can be verified. |
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| 73 | 73 | | |
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| 74 | 74 | | Sec. 3. (NEW) (Effective January 1, 2016) (a) On and after March 1, 2016, no person in this state may manufacture an electronic nicotine delivery system or vapor product unless such person has obtained an electronic nicotine delivery system certificate of manufacturer registration from the Commissioner of Consumer Protection pursuant to this section. An electronic nicotine delivery system certificate of manufacturer registration shall allow the manufacture of electronic nicotine delivery systems or vapor products in this state. For the purposes of this section, "manufacturer" means any person who mixes, compounds, repackages or resizes any nicotine-containing electronic nicotine delivery system or vapor product. |
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| 75 | 75 | | |
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| 76 | 76 | | (b) (1) On or after January 1, 2016, any person desiring an electronic nicotine delivery system certificate of manufacturer registration or a renewal of such a certificate of manufacturer registration shall make a sworn application therefor to the Department of Consumer Protection upon forms to be furnished by the department, showing the name and address of the applicant, the location of the place of business which is to be operated under such certificate of manufacturer registration and a financial statement setting forth all elements and details of any business transactions connected with the application. The application shall also indicate any crimes of which the applicant has been convicted. Applicants shall submit documents sufficient to establish that state and local building, fire and zoning requirements will be met at the place of manufacture. The department may, in its discretion, conduct an investigation to determine whether a certificate of manufacturer registration shall be issued to an applicant. |
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| 77 | 77 | | |
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| 78 | 78 | | (2) The commissioner shall issue an electronic nicotine delivery system certificate of manufacturer registration to any such applicant not later than thirty days after the date of application unless the commissioner finds: (A) The applicant has wilfully made a materially false statement in such application or in any other application made to the commissioner; (B) the applicant has neglected to pay any taxes due to this state; (C) the applicant has been convicted of violating any of the cigarette or other tobacco products tax laws of this or any other state or the cigarette tax laws of the United States or has such a criminal record that the commissioner reasonably believes that such applicant is not a suitable person to be issued a license, provided no refusal shall be rendered under this subdivision except in accordance with the provisions of sections 46a-80 and 46a-81 of the general statutes. |
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| 79 | 79 | | |
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| 80 | 80 | | (3) A certificate of manufacturer registration issued under this section shall be renewed annually and may be suspended or revoked at the discretion of the Department of Consumer Protection. Any person aggrieved by a denial of an application, refusal to renew a certificate of manufacturer registration or suspension or revocation of a certificate of manufacturer registration may appeal in the manner prescribed for permits under section 30-55 of the general statutes. An electronic nicotine delivery system certificate of manufacturer registration shall not constitute property, nor shall it be subject to attachment and execution, nor shall it be alienable, except that it shall descend to the estate of a deceased holder of a certificate of manufacturer registration by the laws of testate or intestate succession. |
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| 81 | 81 | | |
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| 82 | 82 | | (4) The applicant shall pay to the department a nonrefundable application fee of one hundred dollars, which fee shall be in addition to the annual fee prescribed in subsection (c) of this section. An application fee shall not be charged for an application to renew a certificate of manufacturer registration. |
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| 83 | 83 | | |
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| 84 | 84 | | (5) In any case in which a certificate of manufacturer registration has been issued to a partnership, if one or more of the partners dies or retires, the remaining partner or partners need not file a new application for the unexpired portion of the current certificate of manufacturer registration, and no additional fee for such unexpired portion shall be required. Notice of any such change shall be given to the department and the certificate of manufacturer registration shall be endorsed to show correct ownership. Whenever any partnership changes by reason of the addition of one or more partners, a new application and the payment of new application and annual fees shall be required. |
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| 85 | 85 | | |
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| 86 | 86 | | (c) The annual fee for an electronic nicotine delivery system certificate of manufacturer registration shall be five hundred dollars. |
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| 87 | 87 | | |
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| 88 | 88 | | (d) The department may renew a certificate of manufacturer registration issued under this section that has expired if the applicant pays to the department any fine imposed by the commissioner pursuant to subsection (c) of section 21a-4 of the general statutes, which fine shall be in addition to the fees prescribed in this section for the certificate of manufacturer registration applied for. The provisions of this subsection shall not apply to any certificate of manufacturer registration which is the subject of administrative or court proceedings. |
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| 89 | 89 | | |
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| 90 | 90 | | (e) (1) Any person in this state who knowingly manufactures an electronic nicotine delivery system or vapor product without a certificate of manufacturer registration as required under this section shall be fined not more than fifty dollars for each day of such violation, except that the commissioner may waive all or any part of such fine if it is proven to the commissioner's satisfaction that the failure to obtain or renew such certificate of manufacturer registration was due to reasonable cause. |
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| 91 | 91 | | |
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| 92 | 92 | | (2) Notwithstanding the provisions of subdivision (1) of this subsection, any person whose electronic nicotine delivery system certificate of manufacturer registration has expired and who manufactures in this state an electronic nicotine delivery system or vapor product, where such person's period of operation without such certificate of manufacturer registration is not more than ninety days from the date of expiration of such certificate of manufacturer registration, shall have committed an infraction and shall be fined ninety dollars. |
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| 93 | 93 | | |
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| 94 | 94 | | (3) Notwithstanding the provisions of subdivisions (1) and (2) of this subsection, no penalty shall be imposed under this subsection unless the commissioner sends written notice of any violation to the person who is subject to a penalty under subdivision (1) or (2) of this subsection and allows such person sixty days from the date such notice was sent to cease such violation and comply with the requirements of this section. Such written notice shall be sent, within available appropriations, by mail evidenced by a certificate of mailing or other similar United States Postal Service form from which the date of deposit can be verified. |
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| 95 | 95 | | |
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| 96 | 96 | | Sec. 4. (Effective from passage) Not later than thirty days after the federal Food and Drug Administration's proposed rule deeming tobacco products to be subject to the federal Food, Drug and Cosmetic Act, 21 CFR Parts 1100, 1140 and 1143, becomes final, the joint standing committee of the General Assembly having cognizance of matters relating to public health shall hold a public hearing for the purpose of reviewing such rule and determining whether the committee recommends amendments to the general statutes concerning products subject to the rule, which products may include, but need not be limited to, electronic nicotine delivery systems, vapor products and electronic cigarette liquid. |
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| 97 | 97 | | |
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| 98 | 98 | | |
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| 99 | 99 | | |
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| 100 | 100 | | |
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| 101 | 101 | | This act shall take effect as follows and shall amend the following sections: |
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| 102 | 102 | | Section 1 January 1, 2016 53-344b(a) |
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| 103 | 103 | | Sec. 2 January 1, 2016 New section |
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| 104 | 104 | | Sec. 3 January 1, 2016 New section |
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| 105 | 105 | | Sec. 4 from passage New section |
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| 106 | 106 | | |
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| 107 | 107 | | This act shall take effect as follows and shall amend the following sections: |
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| 108 | 108 | | |
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| 109 | 109 | | Section 1 |
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| 110 | 110 | | |
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| 111 | 111 | | January 1, 2016 |
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| 112 | 112 | | |
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| 113 | 113 | | 53-344b(a) |
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| 114 | 114 | | |
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| 115 | 115 | | Sec. 2 |
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| 116 | 116 | | |
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| 117 | 117 | | January 1, 2016 |
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| 118 | 118 | | |
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| 119 | 119 | | New section |
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| 120 | 120 | | |
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| 121 | 121 | | Sec. 3 |
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| 122 | 122 | | |
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| 123 | 123 | | January 1, 2016 |
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| 124 | 124 | | |
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| 125 | 125 | | New section |
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| 126 | 126 | | |
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| 127 | 127 | | Sec. 4 |
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| 128 | 128 | | |
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| 129 | 129 | | from passage |
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| 130 | 130 | | |
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| 131 | 131 | | New section |
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| 132 | 132 | | |
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| 133 | 133 | | Statement of Purpose: |
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| 134 | 134 | | |
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| 135 | 135 | | To add electronic cigarette liquid to the electronic nicotine delivery systems and vapor products that require proof of age by transaction scan prior to sale, establish a dealer and manufacturer registration and associated fees and fines related to such registration, and require the Public Health Committee to review the federal Food and Drug Administration's proposed rule regarding tobacco products and recommend amendments to the general statutes, if any, regarding such electronic nicotine delivery systems and vapor products. |
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| 136 | 136 | | |
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| 137 | 137 | | [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.] |
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