ENROLLED
ACT No. 414
2023 Regular Session
HOUSE BILL NO. 635
BY REPRESENTATIVE HOLLIS
1 AN ACT
2 To amend and reenact R.S. 22:831(B), R.S. 26:911(B)(1)(b), and R.S. 47:841(F) and to
3 enact R.S. 26:911(E) and 926 and Subpart Z of Part II-A of Chapter 1 of Subtitle I
4 of Title 39 of the Louisiana Revised Statutes of 1950, to be comprised of R.S.
5 39:100.210, relative to excise tax; to increase the rate of the excise tax levied on
6 vapor products and electronic cigarettes; to dedicate the avails of the tax levied on
7 vapor products and electronic cigarettes; to establish the Department of Wildlife
8 Fisheries, Office of State Fire Marshal, and Louisiana Public Defender Board
9 Compensation Fund; to provide funds to the office of alcohol and tobacco control for
10 the exclusive purpose of enforcement of vapor products and electronic cigarettes; to
11 provide for the deposit and use of the monies in the fund; to provide for certain
12 requirements and limitations; to prohibit retail dealers of electronic cigarette
13 products from purchasing such products from certain sources; to establish a vapor
14 product and alternative nicotine product directory; to authorize the commissioner of
15 the office of alcohol and tobacco control to impose fees and fines under certain
16 circumstances; to provide for criminal penalties for certain violations; to provide for
17 requirements and limitations; to provide for age verification; to provide for an
18 effective date; and to provide for related matters.
19 Be it enacted by the Legislature of Louisiana:
20 Section 1. R.S. 22:831(B) is hereby amended and reenacted to read as follows:
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1 §831. Fire, marine, transportation, casualty, surety, or other insurance
2 * * *
3 B. There is hereby created in the state treasury as a special fund the
4 Louisiana State Police Salary Fund, hereafter referred to in this Subsection as the
5 "fund". Monies in the Louisiana State Police Salary Fund fund shall be used in
6 amounts appropriated by the legislature to cover the cost of salary increases and
7 related benefits for members of the state police service and for special law
8 enforcement initiatives. After allocation of money to the Bond Security and
9 Redemption Fund as provided in Article VII, Section 9(B) of the Constitution of
10 Louisiana, the treasurer shall deposit in and credit to the fund amounts received as
11 follows:
12 (1) Taxes The avails of taxes collected under the provisions of this Section
13 in Fiscal Year 2002-2003 and ensuing fiscal years that are in excess of total
14 collections under the provisions of this Section in Fiscal Year 2000-2001, after first
15 having been credited to the Bond Security and Redemption Fund as required by
16 Article VII, Section 9(B) of the Constitution of Louisiana, shall be deposited into the
17 Louisiana State Police Salary Fund until the amount deposited in each fiscal year is
18 equal to fifteen million six hundred thousand dollars.
19 (2) The first twenty-two million dollars of the avails of the excise tax levied
20 pursuant to R.S. 47:841(F).
21 Section 2. R.S. 26:911(B)(1)(b) is hereby amended and reenacted and R.S.
22 26:911(E) and 926 are hereby enacted to read as follows:
23 §911. Acts prohibited
24 * * *
25 B.(1)
26 * * *
27 (b) No vapor retail dealer shall purchase alternative nicotine products, or
28 vapor products, or electronic cigarette products for resale except from a
29 manufacturer of those products or a wholesale dealer operating with a valid
30 unsuspended Louisiana wholesale dealer permit and a valid stamping agent
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1 designation permit pursuant to the provisions of R.S. 26:902(2)(a), except as
2 provided for in this Chapter.
3 * * *
4 E. No manufacturer shall sell any vapor products, electronic cigarettes, or
5 alternative nicotine products online to any person under the age of twenty-one.
6 (1) At the time of any online purchase of vapor products, electronic
7 cigarettes, or alternative nicotine products, a manufacturer shall obtain and verify the
8 age of the recipient through the use of a real-time electronic age verification platform
9 that shall be approved by the commissioner and such platform shall be capable of
10 both of the following:
11 (a) Verifying proof of age through authoritative digitized identification card
12 technology.
13 (b) Storing the recipient's name, age, date of birth, the expiration date of the
14 identification, and the date and time that the identification was verified.
15 (2) A manufacturer shall refuse the online purchase of any vapor products,
16 electronic cigarettes, or alternative nicotine products if either:
17 (a) The recipient does not produce a valid and current form of identification
18 as provided in this Subsection.
19 (b) There is reason to doubt the authenticity or correctness of the recipient's
20 identification.
21 (3) At the time of any delivery of any vapor products, electronic cigarettes,
22 or alternative nicotine products purchased online, a third-party delivery agent shall
23 obtain the recipient's signature and verify the age of the recipient through the use of
24 a real-time electronic age verification device that shall be approved by the
25 commissioner and such device shall be capable of the following:
26 (a) Verifying proof of age through authoritative digitized identification card
27 technology.
28 (b) Reading a valid state-issued driver's license, a valid state issued
29 identification card, a valid military identification card, or a valid passport.
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1 (c) Storing the recipient's name, age, date of birth, the expiration date of the
2 identification, and the date and time that the identification was scanned.
3 (4) The third party's delivery agent shall refuse delivery and return the vapor
4 products, electronic cigarettes, or alternative nicotine products to the manufacturer
5 if any of the following occur:
6 (a) The recipient does not produce a valid and current form of identification
7 as provided in this Section.
8 (b) There is reason to doubt the authenticity or correctness of the recipient's
9 identification.
10 (c) The recipient refuses to sign for the receipt of the delivery.
11 (5) Any violation of this Subsection shall result in a fine of five hundred
12 dollars per offense.
13 * * *
14 §926. Vapor product and alternative nicotine product directory
15 A. Beginning October 1, 2023, every vapor product manufacturer and
16 alternative nicotine product manufacturer whose products are sold in this state,
17 whether directly or through a wholesale dealer, retail dealer, or similar intermediary
18 or intermediaries, shall execute and deliver on a form prescribed by the
19 commissioner, a certification to the commissioner certifying, under penalty of
20 perjury, either of the following:
21 (1) The product was on the market in the United States as of August 8, 2016,
22 and the manufacturer has applied for a marketing order pursuant to 21 U.S.C. §387j
23 for the vapor product or alternative nicotine product by submitting a premarket
24 tobacco product application on or before September 9, 2020, to the United States
25 Food and Drug Administration, hereinafter referred to in this Section as "FDA" and
26 either of the following is true:
27 (a) The premarket tobacco product application for the vapor product or
28 alternative nicotine product remains under review by the FDA.
29 (b) The FDA has issued a no marketing order for the vapor product or
30 alternative nicotine product, but the agency or a federal court has issued a stay order
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1 or injunction during the pendency of the manufacturer's appeal of the no marketing
2 order, or the order has been appealed either to the FDA or a challenge to the order
3 filed with a federal court and the appeal or challenge is still pending.
4 (2) The manufacturer has received a marketing order or other authorization
5 under 21 U.S.C. 387j for the vapor product or alternative nicotine product from the
6 FDA.
7 B. In addition to the requirements of Subsection A of this Section, each
8 manufacturer shall provide a copy of the cover page of the premarket tobacco
9 application with evidence of receipt of the application by the FDA or a copy of the
10 cover page of the marketing order or other authorization issued pursuant to 21 U.S.C.
11 387j, whichever is applicable.
12 C. Any manufacturer submitting a certification pursuant to Subsection A of
13 this Section shall notify the commissioner within thirty days of any material change
14 to the certification, including issuance by the FDA of any of the following:
15 (1) A market order or other authorization pursuant to 21 U.S.C. 387j.
16 (2) An order requiring a manufacturer to remove a product from the market
17 either temporarily or permanently.
18 (3) Any notice of action taken by the FDA affecting the ability of the new
19 product to be introduced or delivered into interstate commerce for commercial
20 distribution.
21 (4) Any change in policy that results in a product no longer being exempt
22 from federal enforcement oversight.
23 D. The commissioner shall develop and maintain a directory listing all vapor
24 product manufacturers and alternative nicotine product manufacturers that have
25 provided certifications that comply with Subsection A of this Section and all
26 products that are listed in those certifications.
27 E. The commissioner shall do all of the following:
28 (1) Make the directory available for public inspection on its website by
29 November 1, 2023.
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1 (2) Update the directory as necessary in order to correct mistakes and to add
2 or remove vapor product manufacturers and alternative nicotine product
3 manufacturers or products manufactured by those manufacturers.
4 (3) Send monthly notifications to each wholesale dealer, retail dealer, or
5 manufacturer of vapor products and manufacturer of alternative nicotine products
6 that have qualified or registered with the commissioner, by electronic
7 communication, containing a list of all changes that have been made to the directory
8 in the previous month. In lieu of sending monthly notifications, the commissioner
9 may make the information available in a prominent place on the office of alcohol and
10 tobacco control's public website.
11 F. Notwithstanding Subsection A of this Section, if a vapor product
12 manufacturer or alternative nicotine product manufacturer can demonstrate to the
13 commissioner that the FDA has issued a rule, guidance, or any other formal
14 statement that temporarily exempts a vapor product or alternative nicotine product
15 from the federal premarket tobacco application requirements, the vapor product or
16 alternative product may be added to the directory upon request by the manufacturer
17 if the manufacturer provides sufficient evidence that the vapor product or alternative
18 nicotine product is compliant with the federal rule, guidance, or other formal
19 statement, as applicable.
20 G. Each certifying vapor product manufacturer or alternative nicotine product
21 manufacturer shall pay an initial fee of one hundred dollars per product stock
22 keeping unit or SKU to offset the costs incurred by the commissioner for processing
23 the certifications and operating the directory. The commissioner shall collect an
24 annual renewal fee of one hundred dollars per product stock keeping unit or SKU to
25 offset the costs associated with maintaining the directory and satisfying the
26 requirements of this Section. The fees received pursuant to this Section by the
27 commissioner shall be used by the office of alcohol and tobacco control exclusively
28 for processing the certifications and operating and maintaining the directory.
29 H. Beginning November 1, 2023, or on the date that the commissioner first
30 makes the directory available for public inspection on its website as provided in
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1 Subsection E of this Section, whichever is later, a vapor product manufacturer or
2 alternative nicotine product manufacturer who offers for sale a vapor product or
3 alternative nicotine product not listed on the directory is subject to a one thousand
4 dollars daily fine for each vapor product or alternative nicotine product offered for
5 sale in violation of this Section until the offending product is removed from the
6 market or until the offending product is properly listed on the directory.
7 I. No wholesale dealer or retail dealer shall be permitted to remit tax with
8 respect to a vapor product or alternative nicotine product unless such vapor product
9 or alternative nicotine product is listed on the directory, and the sale, possession, or
10 transportation of such vapor products or alternative nicotine products by any person,
11 including a permitted wholesale dealer or retail dealer, shall be subject to provisions
12 of R.S. 47:858, 859, and 860 as if such wholesale dealer or retail dealer did not
13 possess a valid permit.
14 J. Any other violation of this Section shall result in a fine of five hundred
15 dollars per offense.
16 K. The commissioner shall adopt rules for the implementation and
17 enforcement of this Section.
18 Section 3. Subpart Z of Part II-A of Chapter 1 of Subtitle I of Title 39 of the
19 Louisiana Revised Statutes of 1950, comprised of R.S. 39:100.210, is hereby enacted to read
20 as follows:
21 SUBPART Z. THE DEPARTMENT OF WILDLIFE AND FISHERIES,
22 OFFICE OF STATE FIRE MARSHAL, AND THE LOUISIANA PUBLIC
23 DEFENDER BOARD COMPENSATION FUND
24 §100.210. Department of Wildlife and Fisheries, Office of State Fire Marshal, and
25 Louisiana Public Defender Board Compensation Fund
26 A. There is hereby created, as a special fund in the state treasury, the
27 Department of Wildlife and Fisheries, Office of State Fire Marshal, and Louisiana
28 Public Defender Board Compensation Fund, hereafter referred to in this Section as
29 the "fund".
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1 B.(1) Notwithstanding any provision of law to the contrary, after compliance
2 with the requirements of Article VII, Section 9(B) of the Constitution of Louisiana,
3 relative to the Bond Security and Redemption Fund, and after a sufficient amount is
4 allocated from that fund to pay all of the obligations secured by the full faith and
5 credit of the state which become due and payable within any fiscal year, after the
6 first twenty-two million dollars of the avails of the tax levied pursuant to the
7 provisions of R.S. 47:841(F) is deposited into the Louisiana State Police Salary Fund
8 pursuant to the provisions of R.S. 22:831(B)(2), the treasurer shall deposit the next
9 six million dollars of the avails of the tax levied pursuant to the provisions of R.S.
10 47:841(F) into the fund. Monies in the fund shall be used solely as provided for in
11 Subsection C of this Section.
12 (2) Monies in the fund shall be invested by the treasurer in the same manner
13 as monies in the state general fund and interest earned on investment of such monies
14 shall be credited to the fund. Unexpended and unencumbered monies in the fund at
15 the end of the fiscal year shall remain in the fund.
16 C. Monies in the fund shall only be withdrawn subject to an appropriation by
17 the legislature and shall be distributed as follows:
18 (1) The first distribution to the office of alcohol and tobacco control shall be
19 six hundred thousand dollars. These funds shall be expended exclusively for the
20 purposes of the enforcement of vapor products and electronic cigarettes.
21 (2) The remaining funds shall be distributed and shared equally among the
22 following governmental units:
23 (a) The funds distributed to the Department of Wildlife and Fisheries shall
24 be used exclusively to cover the cost of salary increases and related benefits for
25 enforcement agents.
26 (b) The funds distributed to the Office of the State Fire Marshal shall be used
27 exclusively cover the cost of salary increases and related benefits for its employees.
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1 (c) The funds distributed to the Louisiana Public Defender Board shall be
2 used exclusively cover the cost of salary increases and related benefits for its
3 employees.
4 Section 4. R.S. 47:841(F) is hereby amended and reenacted to read as follows:
5 §841. Imposition of tax
6 * * *
7 F. Vapor products and electronic cigarettes. Upon vapor products and
8 electronic cigarettes, a tax of five fifteen cents per milliliter of consumable nicotine
9 liquid solution or other material containing nicotine that is depleted as a vapor
10 product is used.
11 * * *
12 Section 5. This Act shall become effective on July 1, 2023; if vetoed by the governor
13 and subsequently approved by the legislature, this Act shall become effective on July 1,
14 2023, or on the day following such approval by the legislature, whichever is later.
SPEAKER OF THE HOUSE OF REPRESENTATIVES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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