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OLR Bill Analysis
HB 6450
AN ACT IMPLEMENTING THE GOVERNOR'S BUDGET
RECOMMENDATIONS CONCERNING PUBLIC HEALTH.
SUMMARY
Starting January 1, 2022, this bill prohibits e-cigarette dealers from
selling, delivering, giving, or possessing with the intent to sell, e-
cigarettes and vapor products with (1) a nicotine content great than 35
milligrams per milliliter (mg/ml) or (2) a flavoring agent other than
tobacco. It excludes from the flavor ban “modified risk tobacco
products” designated by the U.S. Department of Health and Human
Services (see BACKGROUND).
Additionally, the bill:
1. requires e-cigarette manufacturers to provide documentation to
e-cigarette dealers on the nicotine content of their products and
requires dealers to maintain the documentation (§ 2);
2. requires the Department of Mental Health and Addiction
Services (DMHAS) to conduct unannounced compliance checks
on e-cigarette dealers and refer non-compliant dealers to the
Department of Revenue Services (DRS) commissioner who may
impose civil penalties (§ 3);
3. increases the penalties for sales of cigarettes, tobacco products,
e-cigarettes, and vapor products to individuals under age 21
and extends the same increased penalties to e-cigarette dealers
who violate the bill’s flavor ban and nicotine content
requirements (§§ 3-6);
4. increases the penalties on owners of establishments with
cigarette vending machines and restricted cigarette vending
machines for sales to individuals under the legal age (§ 4); 2021HB-06450-R000237-BA.DOCX
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5. allows the state’s health insurance exchange to (a) impose
assessments on health carriers to cover the costs of the all-payer
claims database (APCD) and (b) with the Office of Policy and
Management’s (OPM) approval, enter into an agreement with
the Office of Health Strategy (OHS) to use these funds for the
APCD (§ 7); and
6. requires the amount annually appropriated from the Insurance
Fund to OHS, including the cost of fringe benefits for personnel,
to be reduced by the amount of Medicaid reimbursement the
state received for allowable administrative expenses (§ 8).
Lastly, the bill makes technical and conforming changes.
EFFECTIVE DATE: January 1, 2022
§§ 1-3 & 6 — E-CIGARETTES AND VAPOR PRODUCTS
Definition of Flavoring
Under the bill, flavored e-cigarettes and vapor products are those
with a flavoring agent that has been added for the purpose of flavoring
these products. It defines a “flavoring agent” as an additive:
1. used in accordance with good manufacturing practice principles
and in the minimum quantity required to produce its intended
effect;
2. (a) consisting of one or more ingredients generally recognized
as safe in food or drugs, (b) has been previously sanctioned for
such use by the state or federal government, (c) meets U.S.
Pharmacopeia standards, or (d) is an additive permitted for
direct addition to food for human consumption under FDA
regulations;
3. that is inert and produces no effect other than the instillation or
modification of flavor; and
4. is no greater than 5% of the product’s total weight.
2021HB-06450-R000237-BA.DOCX
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Nicotine Content
The bill prohibits e-cigarette dealers from selling e-cigarettes or
vapor products with a nicotine content greater than 35 mg/ml. It
requires e-cigarette manufacturers to provide documentation to
dealers on the nicotine content of these products (expressed as mg/ml)
that the manufacturers sell to them.
Under the bill, dealers must maintain this documentation at their
registered place of business for each product sold, delivered, or given
to them by a manufacturer. They must also provide the documentation
to DMHAS upon request, during any unannounced compliance check
the department conducts.
Compliance Checks
The bill requires the DMHAS commissioner, or her designee, to
conduct unannounced compliance checks on e-cigarette dealers to
determine whether they are complying with the bill’s flavor ban and
nicotine content requirements. Existing law already requires DMHAS
to conduct these checks for underage sales (i.e., sales to individuals
under age 21).
Under the bill, the department must refer e-cigarette dealers to the
DRS commissioner after the initial compliance check who (1) do not
produce documentation on the nicotine content of their products or (2)
sell products that violate the nicotine threshold. In the case of the
flavor ban, the department must refer non-compliant dealers to DRS
after completing an unannounced follow-up compliance check. The
DRS may impose a penalty (see Table 1 below).
§§ 3-6 — PENALTIES FOR UNDERAGE SALES
Existing law allows the DRS commissioner, after a hearing, to
impose civil penalties on e-cigarette dealers, cigarette dealers and
distributors, or their employees for sales to individuals under age 21.
The bill increases these penalties as shown in the table below and
extends the same penalties to e-cigarette dealers who violate the bill’s
flavor ban and nicotine content requirements. 2021HB-06450-R000237-BA.DOCX
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Table 1: Civil Penalties for Underage Sales
Current Law Under the Bill
Penalties on Cigarette Dealers and Distributors and E-Cigarette Dealers
1
st
violation $300, if they fail to complete an
online tobacco prevention
education program within 30
days
$600, if they fail to complete an
online tobacco prevention
education program within 30
days
2
nd
violation $750 $1,500
3
rd
violation $1,000, plus minimum 30-day
license suspension
$2,000, plus minimum 30-day
license suspension
4
th
violation $1,000, plus license revocation $2,000, plus license revocation
Penalties on Their Employees
1
st
violation $200, if the employee fails to
complete an online tobacco
education program within 30
days
$400, if the employee fails to
complete an online tobacco
education program within 30
days
2
nd
violation $250 $500
As under current law, the above fines for second and subsequent
violations may be imposed for violations that occur within 24 months
after the first violation.
Under the bill, as under current law, the DRS commissioner may
only impose the above fines on e-cigarette dealers (or their employees)
who violate the bill’s flavor ban and nicotine threshold if they are
referred to him by the DMHAS commissioner after completing
unannounced compliance checks (see above). For third and fourth
violations, the DRS commissioner must direct the Department of
Consumer Protection (DCP) commissioner to suspend or revoke the e-
cigarette dealer’s registration.
Before taking such action, existing law requires the DRS
commissioner to notify the e-cigarette dealer in writing of the hearing
time and location and require the dealer to show cause why the
registration should not be suspended or revoked. The notice must be
delivered personally, or by registered or certified mail at least 10 days
before the hearing date. When the DRS commissioner directs the DCP 2021HB-06450-R000237-BA.DOCX
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commissioner to suspend or revoke the dealer’s registration, the DCP
commissioner is not required to hold an additional hearing before
doing so.
§ 4 — VENDING MACHINE SALE S
Current law allows the DRS commissioner, after a hearing, to
impose penalties on owners of establishments with cigarette vending
machines and restricted cigarette vending machines (see
BACKGROUND) for sales to individuals under the legal age. The bill
increases these penalties as follows:
1. for a 1
st
violation, if the owner fails to successfully complete an
online tobacco education program within 30 days, from $500 to
$1,000;
2. for a 2
nd
violation, from $750 to $1,500; and
3. for a 3
rd
violation, from $1,000 to $2,000.
As under current law, the commissioner may impose fines for 2
nd
and 3
rd
violations that occur within 24 months after the date of the first
violation.
Existing law, unchanged by the bill, requires an establishment
owner who commits a third violation, to immediately remove the
vending machine from the establishment and prohibits any vending
machine at the establishment for one year after the removal.
By law, the DRS commissioner may also assess the following civil
penalties against a person, dealer, or distributor who violates the
vending machine laws: (1) $250 for a first violation and (2) $500 for a
second or third violation within 18 months. After the third violation,
the vending machine must be immediately removed from the area,
facility, or business where it is placed and such machines are
prohibited from the location for one year after the removal (CGS § 12-
289a(b)).
§ 7 — ALL PAYER CLAIMS DAT ABASE 2021HB-06450-R000237-BA.DOCX
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By law, the state’s health insurance exchange (HIE) charges
assessments or user fees to health carriers capable of offering a
qualified health plan through the exchange to cover the exchange’s
costs. The bill allows the HIE to also charge these assessments or user
fees to cover the costs of the state’s all-payer claims database. As under
current law, the HIE may impose interest and penalties on health
carriers for delinquent payments of these assessments or fees.
The bill also authorizes the HIE to enter into an agreement with
OHS to transfer the funds collected for the APCD’s operation and to
receive data from the ACPD database. Under the bill, the agreement
must be approved by OPM and is not considered proprietary.
By law, OHS administers the APCD, which collects data relating to
medical, pharmacy, dental, and other insurance claims information
from public and private health insurers.
§ 8 — INSURANCE FUND
Existing law requires insurance companies and hospital and
medical service corporations to annually pay into the Insurance Fund
an amount that covers OHS’s appropriation, including fringe benefits
and certain capital equipment purchases. The bill requires the
appropriation amount to be reduced by the amount of federal
Medicaid reimbursement it receives for allowable Medicaid
administrative expenses.
BACKGROUND
Modified Risk Tobacco Products (MRTP)
MRTPs are tobacco products designated by the federal Food and
Drug Administration as providing less harm or risk of tobacco-related
disease when compared to other commercially-marketed tobacco
products, such as combustible cigarettes.
To qualify as an MRTP, product manufacturers must show, among
other things, (1) scientific evidence that supports their claims about
reduced harm or risk, (2) that consumers can adequately understand
the information and appropriately perceive the relative risk of these 2021HB-06450-R000237-BA.DOCX
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products compared to other tobacco products, and (3) the use of the
MRTP will significantly reduce the harm and risk of tobacco-related
disease to individual users and benefit the health of the population as
a whole.
Cigarette Vending Machines
Existing law distinguishes between two types of machines that it
authorizes to dispense cigarettes. One is the traditional coin-operated
vending machine. The other is the “restricted cigarette vending
machine,” which (1) automatically deactivates and cannot be operated
after each sale and (2) requires a face-to-face interaction or display of
identification between the purchaser and employee of the business
where the machine is located.
Related Bill
sSB 326 (File 98), favorably reported by the Public Health
Committee, prohibits e-cigarette dealers and cigarette dealers and
distributors from selling, offering or displaying for sale, or possessing
with the intent to sell, flavored cigarettes, tobacco products, e-
cigarettes, and vapor products and extends current law’s underage
sale penalties for violations.
COMMITTEE ACTION
Public Health Committee
Joint Favorable
Yea 24 Nay 9 (03/12/2021)