LCO \\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00367-R02- SB.docx 1 of 10 General Assembly Substitute Bill No. 367 February Session, 2022 AN ACT CONCERNING THE SALE OF ELECTRONIC NICOTINE DELIVERY SYSTEMS AND VAPOR PRODUCTS AND INCREASING PENALTIES FOR UNDERAGE SALES OF SUCH SYSTEMS AND PRODUCTS, CIGARETTES AND TOBACCO PRODUCTS. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Subsection (a) of section 21a-415 of the general statutes is 1 repealed and the following is substituted in lieu thereof (Effective January 2 1, 2023): 3 (a) As used in this chapter and section [53-344] 2 of this act: 4 (1) "Authorized owner" means the owner or authorized designee of a 5 business entity that is applying for a registration or is registered with 6 the Department of Consumer Protection pursuant to this chapter; 7 (2) "Business entity" means any corporation, limited liability 8 company, association, partnership, sole proprietorship, government, 9 governmental subdivision or agency, business trust, estate, trust or any 10 other legal entity; 11 (3) "Dealer registration" means an electronic nicotine delivery system 12 certificate of dealer registration issued by the Commissioner of 13 Consumer Protection pursuant to this section; 14 Substitute Bill No. 367 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00367- R02-SB.docx } 2 of 10 (4) "Manufacturer registration" means an electronic nicotine delivery 15 system certificate of manufacturer registration issued by the 16 Commissioner of Consumer Protection pursuant to section 21a-415a to 17 any person who mixes, compounds, repackages or resizes any nicotine-18 containing electronic nicotine delivery system or vapor product; 19 (5) "Electronic cigarette liquid" means a liquid, including, but not 20 limited to, a concentrated plant extract or oil containing natural or 21 synthetic ingredients, that, when used in an electronic nicotine delivery 22 system or vapor product, produces a vapor that may or may not include 23 nicotine and [is] may be inhaled by the user of such electronic nicotine 24 delivery system or vapor product; 25 (6) "Electronic nicotine delivery system" means an electronic device 26 used in the delivery of nicotine or other substances to a person inhaling 27 from the device, and includes, but is not limited to, an electronic 28 cigarette, electronic cigar, electronic cigarillo, electronic pipe or 29 electronic hookah and any related device and any cartridge or other 30 component of such device, including, but not limited to, electronic 31 cigarette liquid; 32 (7) "Vapor product" means any product that employs a heating 33 element, power source, electronic circuit or other electronic, chemical or 34 mechanical means, regardless of shape or size, to produce a vapor that 35 may include nicotine and is inhaled by the user of such product. "Vapor 36 product" does not include a medicinal or therapeutic product that is (A) 37 used by a licensed health care provider to treat a patient in a health care 38 setting, (B) used by a patient, as prescribed or directed by a licensed 39 health care provider in any setting, or (C) any drug or device, as defined 40 in the federal Food, Drug and Cosmetic Act, 21 USC 321, as amended 41 from time to time, any combination product, as described in said act, 21 42 USC 353(g), as amended from time to time, or any biological product, as 43 described in 42 USC 262, as amended from time to time, and 21 CFR 44 600.3, as amended from time to time, authorized for sale by the United 45 States Food and Drug Administration; 46 Substitute Bill No. 367 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00367- R02-SB.docx } 3 of 10 (8) "Sale" or "sell" means an act done intentionally by any person, 47 whether done as principal, proprietor, agent, servant or employee, of 48 transferring, or offering or attempting to transfer, for consideration, 49 including bartering or exchanging, or offering to barter or exchange; 50 [and] 51 (9) "Deliver" or "delivering" means an act done intentionally by any 52 person, whether as principal, proprietor, agent, servant or employee, of 53 transferring, or offering or attempting to transfer, physical possession 54 or control of an electronic nicotine delivery system or vapor product; 55 and 56 (10) "Adult-only tobacco retail store" means a retail establishment, as 57 defined in section 19a-106a, that holds a dealer registration and 58 prohibits persons under the age of twenty-one from entering such 59 establishment. 60 Sec. 2. (NEW) (Effective January 1, 2023) For the period commencing 61 January 1, 2023, to June 30, 2026, inclusive, no business entity other than 62 an adult-only tobacco retail store or a principal, a proprietor, an agent, 63 a servant or an employee of such tobacco retail store shall sell, give, 64 deliver or possess with intent to sell in this state any electronic nicotine 65 delivery system or vapor product. 66 Sec. 3. Section 21a-415b of the general statutes is repealed and the 67 following is substituted in lieu thereof (Effective January 1, 2023): 68 (a) Each business entity with a dealer registration shall place and 69 maintain in legible condition at each point of sale of electronic nicotine 70 delivery systems or vapor products a notice to consumers that states (1) 71 the sale, giving or delivering of electronic nicotine delivery systems and 72 vapor products to any person under twenty-one years of age is 73 prohibited by section 53-344b, as amended by this act, (2) the use of false 74 identification by a person under twenty-one years of age to purchase an 75 electronic nicotine delivery system or a vapor product is prohibited, and 76 (3) the penalties and fines for violating the provisions of this section and 77 Substitute Bill No. 367 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00367- R02-SB.docx } 4 of 10 section 53-344b, as amended by this act. 78 (b) The Commissioner of Mental Health and Addiction Services, or 79 the commissioner's designee, shall conduct unannounced compliance 80 checks on business entities [holding] with a dealer registration by 81 engaging persons between the ages of sixteen and twenty to enter the 82 place of business of each such business entity to attempt to purchase an 83 electronic nicotine delivery system or a vapor product. The 84 commissioner shall conduct unannounced follow-up compliance checks 85 of all noncompliant business entities and shall refer all noncompliant 86 business entities to the Commissioner of Revenue Services. 87 (c) Upon receipt of a referral made pursuant to subsection (b) of this 88 section, the Commissioner of Revenue Services may, following a 89 hearing, impose a civil penalty and direct the Commissioner of 90 Consumer Protection to suspend or revoke the dealer registration of the 91 business entity that is the subject of such referral. The Commissioner of 92 Revenue Services shall provide such business entity with written notice 93 of the hearing, specifying the time and place of such hearing and 94 requiring such business entity to show cause why such dealer 95 registration should not be suspended or revoked. The written notice of 96 the hearing shall be mailed or delivered to such business entity not less 97 than ten days preceding the date of the hearing. Such notice may be 98 served personally or by registered or certified mail. 99 (d) If the Commissioner of Revenue Services finds, after a hearing 100 pursuant to subsection (c) of this section, that any person employed by 101 any business entity issued a dealer registration under section 21a-415, 102 as amended by this act, has sold, given or delivered an electronic 103 nicotine delivery system or vapor product to a person under twenty-one 104 years of age, other than a person under twenty-one years of age who is 105 delivering or accepting delivery in such person's capacity as an 106 employee, said commissioner shall, for the first violation, require such 107 employee to successfully complete an online prevention education 108 program administered by the Department of Mental Health and 109 Addiction Services not later than thirty days after said commissioner's 110 Substitute Bill No. 367 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00367- R02-SB.docx } 5 of 10 finding. [Said commissioner] The Commissioner of Revenue Services 111 shall assess any employee who fails to complete such program a civil 112 penalty of [two] four hundred dollars. Said commissioner shall assess 113 any employee a civil penalty of [two hundred fifty] five hundred dollars 114 for a second or subsequent violation on or before twenty-four months 115 after the date of the first violation. 116 (e) (1) If the Commissioner of Revenue Services finds, after a hearing 117 pursuant to subsection (c) of this section, that [(1)] (A) any business 118 entity issued a dealer registration under section 21a-415, as amended by 119 this act, has sold, given or delivered an electronic nicotine delivery 120 system or vapor product to a person under twenty-one years of age, 121 other than a person under twenty-one years of age who is delivering or 122 accepting delivery in such person's capacity as an employee, or [(2)] (B) 123 such person's employee has sold, given or delivered an electronic 124 nicotine delivery system or vapor product to a person under twenty-one 125 years of age, the commissioner shall, for the first violation, require the 126 authorized owner of such business entity to successfully complete an 127 online prevention education program administered by the Department 128 of Mental Health and Addiction Services not later than thirty days after 129 said commissioner's finding. [Said commissioner] The Commissioner of 130 Revenue Services shall assess any business entity issued a dealer 131 registration, whose authorized owner fails to complete such program, a 132 civil penalty of [three] six hundred dollars for the first violation. [Said 133 commissioner] 134 (2) The Commissioner of Revenue Services shall assess such business 135 entity a civil penalty of [seven hundred fifty] one thousand five hundred 136 dollars for a second violation on or before twenty-four months after the 137 date of the first violation. 138 (3) For a third violation by such business entity on or before twenty-139 four months after the date of the first violation, [said commissioner] the 140 Commissioner of Revenue Services shall assess such business entity a 141 civil penalty of [one] two thousand dollars and notify the Commissioner 142 of Consumer Protection that the dealer registration held by such 143 Substitute Bill No. 367 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00367- R02-SB.docx } 6 of 10 business entity under this chapter shall be suspended for not less than 144 thirty days. 145 (4) For a fourth violation on or before twenty-four months after the 146 date of the first violation, the Commissioner of Revenue Services shall 147 assess such business entity a civil penalty of [one] two thousand dollars 148 and notify the Commissioner of Consumer Protection that the dealer 149 registration held by such business entity under [said] this chapter shall 150 be revoked. The Commissioner of Revenue Services shall order such 151 business entity to conspicuously post a notice in a public place stating 152 that electronic nicotine delivery systems and vapor products cannot be 153 sold during the period of suspension or revocation and the reasons for 154 such suspension or revocation. Any sale of an electronic nicotine 155 delivery system or vapor product by such business entity during the 156 period of such suspension or revocation shall be deemed an additional 157 violation of this section. 158 (f) Upon receipt of notice of determination from the Commissioner of 159 Revenue Services made under subsection (e) of this section, the 160 Commissioner of Consumer Protection shall suspend or revoke the 161 dealer registration of the business entity that is the subject of said 162 determination. The Commissioner of Consumer Protection shall not be 163 required to hold a hearing in connection with any notice of 164 determination received from the Commissioner of Revenue Services 165 under this section. 166 (g) The Commissioner of Consumer Protection shall not issue a new 167 dealer registration to a former registrant whose dealer registration was 168 revoked unless the commissioner is satisfied that such business entity 169 that holds a dealer registration will comply with the provisions of this 170 chapter and any regulations related thereto, and section 53-344b, as 171 amended by this act. 172 Sec. 4. Section 12-295a of the general statutes is repealed and the 173 following is substituted in lieu thereof (Effective January 1, 2023): 174 Substitute Bill No. 367 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00367- R02-SB.docx } 7 of 10 (a) If the Commissioner of Revenue Services finds, after a hearing, 175 that any person employed by a dealer or distributor, as defined in 176 section 12-285, has sold, given or delivered cigarettes or tobacco 177 products to a person under twenty-one years of age other than a person 178 under twenty-one years of age who is delivering or accepting delivery 179 in such person's capacity as an employee, said commissioner shall, for 180 the first violation, require such person to successfully complete an 181 online tobacco prevention education program administered by the 182 Department of Mental Health and Addiction Services not later than 183 thirty days after said commissioner's finding. [Said commissioner] The 184 Commissioner of Revenue Services shall assess any person who fails to 185 complete such program a civil penalty of [two] four hundred dollars. 186 Said commissioner shall assess any person employed by a dealer or 187 distributor a civil penalty of [two hundred fifty] five hundred dollars 188 for a second or subsequent violation on or before twenty-four months 189 after the date of the first violation. 190 (b) (1) If the Commissioner of Revenue Services finds, after a hearing, 191 that any dealer or distributor has sold, given or delivered cigarettes or a 192 tobacco product to a person under twenty-one years of age other than a 193 person under twenty-one years of age who is delivering or accepting 194 delivery in such person's capacity as an employee, or such dealer or 195 distributor's employee has sold, given or delivered cigarettes or a 196 tobacco product to such person, said commissioner shall require such 197 dealer or distributor, for the first violation, to successfully complete an 198 online tobacco prevention education program administered by the 199 Department of Mental Health and Addiction Services not later than 200 thirty days after said commissioner's finding. [Said commissioner] The 201 Commissioner of Revenue Services shall assess any dealer or distributor 202 who fails to complete such program a civil penalty of [three] six 203 hundred dollars. [Said commissioner] 204 (2) The Commissioner of Revenue Services shall assess [any] such 205 dealer or distributor a civil penalty of [seven hundred fifty] one 206 thousand five hundred dollars for a second violation on or before 207 Substitute Bill No. 367 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00367- R02-SB.docx } 8 of 10 twenty-four months after the date of the first violation. 208 (3) For a third violation on or before twenty-four months after the 209 date of the first violation, [said commissioner] the Commissioner of 210 Revenue Services shall assess such dealer or distributor a civil penalty 211 of [one] two thousand dollars and suspend any license held by such 212 dealer or distributor under this chapter for not less than thirty days. 213 (4) For a fourth violation on or before twenty-four months after the 214 date of the first violation, [said commissioner] the Commissioner of 215 Revenue Services shall assess such dealer or distributor a civil penalty 216 of [one] two thousand dollars and revoke any license issued to such 217 dealer or distributor under this chapter. Said commissioner shall order 218 such distributor or dealer to conspicuously post a notice in a public 219 place within such distributor's or dealer's establishment stating that 220 cigarettes and tobacco products cannot be sold during the period of such 221 suspension or revocation and the reasons for such suspension or 222 revocation. Any sale of cigarettes or a tobacco product by such dealer or 223 distributor during such suspension or revocation shall be deemed an 224 additional violation of this subsection. 225 (c) (1) If the Commissioner of Revenue Services finds, after a hearing, 226 that any owner of an establishment in which a cigarette vending 227 machine or restricted cigarette vending machine is located has sold, 228 given or delivered cigarettes or tobacco products from any such 229 machine to a person under twenty-one years of age other than a person 230 under twenty-one years of age who is delivering or accepting delivery 231 in such person's capacity as an employee, or has allowed cigarettes or 232 tobacco products to be sold, given or delivered to such person from any 233 such machine, said commissioner shall require such owner, for the first 234 violation, to successfully complete an online tobacco prevention 235 education program administered by the Department of Mental Health 236 and Addiction Services not later than thirty days after said 237 commissioner's finding. [Said commissioner] The Commissioner of 238 Revenue Services shall assess any owner who fails to complete such 239 program a civil penalty of [five hundred] one thousand dollars. [Said 240 Substitute Bill No. 367 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00367- R02-SB.docx } 9 of 10 commissioner] 241 (2) The Commissioner of Revenue Services shall assess [any] such 242 owner a civil penalty of [seven hundred fifty] one thousand five 243 hundred dollars for a second violation on or before twenty-four months 244 after the date of the first violation. 245 (3) For a third violation on or before twenty-four months after the 246 date of the first violation, [said commissioner] the Commissioner of 247 Revenue Services shall assess such owner a civil penalty of [one] two 248 thousand dollars and immediately remove any such machine from such 249 establishment and no such machine may be placed in such 250 establishment for a period of one year following such removal. 251 (d) Any person aggrieved by any action of the [commissioner] 252 Commissioner of Revenue Services pursuant to this section may take 253 any appeal of such action as provided in sections 12-311 and 12-312. 254 Sec. 5. Subsection (b) of section 53-344 of the general statutes is 255 repealed and the following is substituted in lieu thereof (Effective January 256 1, 2023): 257 (b) Any person who sells, gives or delivers to any person under 258 twenty-one years of age cigarettes or a tobacco product shall be fined 259 not more than [three] six hundred dollars for the first offense, not more 260 than [seven hundred fifty] one thousand five hundred dollars for a 261 second offense on or before twenty-four months after the date of the first 262 offense and not more than [one] two thousand dollars for each 263 subsequent offense on or before twenty-four months after the date of the 264 first offense. The provisions of this subsection shall not apply to a person 265 under twenty-one years of age who is delivering or accepting delivery 266 of cigarettes or a tobacco product (1) in such person's capacity as an 267 employee, or (2) as part of a scientific study being conducted by an 268 organization for the purpose of medical research to further efforts in 269 cigarette and tobacco product use prevention and cessation, provided 270 such medical research has been approved by the organization's 271 Substitute Bill No. 367 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00367- R02-SB.docx } 10 of 10 institutional review board, as defined in section 21a-408. 272 Sec. 6. Subsection (b) of section 53-344b of the general statutes is 273 repealed and the following is substituted in lieu thereof (Effective January 274 1, 2023): 275 (b) Any person who sells, gives or delivers to any person under 276 twenty-one years of age an electronic nicotine delivery system or vapor 277 product in any form shall be fined not more than [three] six hundred 278 dollars for the first offense, not more than [seven hundred fifty] one 279 thousand five hundred dollars for a second offense on or before twenty-280 four months after the date of the first offense and not more than [one] 281 two thousand dollars for each subsequent offense on or before twenty-282 four months after the date of the first offense. The provisions of this 283 subsection shall not apply to a person under twenty-one years of age 284 who is delivering or accepting delivery of an electronic nicotine delivery 285 system or vapor product (1) in such person's capacity as an employee, 286 or (2) as part of a scientific study being conducted by an organization 287 for the purpose of medical research to further efforts in tobacco use 288 prevention and cessation, provided such medical research has been 289 approved by the organization's institutional review board, as defined in 290 section 21a-408.291 This act shall take effect as follows and shall amend the following sections: Section 1 January 1, 2023 21a-415(a) Sec. 2 January 1, 2023 New section Sec. 3 January 1, 2023 21a-415b Sec. 4 January 1, 2023 12-295a Sec. 5 January 1, 2023 53-344(b) Sec. 6 January 1, 2023 53-344b(b) FIN Joint Favorable Subst.