New Hampshire 2025 Regular Session

New Hampshire Senate Bill SB80 Compare Versions

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1	1	SB 80-FN - AS AMENDED BY THE SENATE
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5	5	03/13/2025 0734s
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7	7	2025 SESSION
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9	9	25-0933
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11	11	08/05
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15	15	SENATE BILL80-FN
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19	19	AN ACTconsolidating licensing, auditing, and enforcement responsibilities for wholesale and retail e-cigarettes sales under the liquor commission.
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23	23	SPONSORS:Sen. Lang, Dist 2; Sen. Pearl, Dist 17; Rep. Almy, Graf. 17
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27	27	COMMITTEE:Commerce
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35	35	AMENDED ANALYSIS
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39	39	This bill consolidates licensing, auditing, and enforcement responsibilities for wholesale and retail e-cigarettes sales under the liquor commission. The bill also provides for tobacco tax certificates to be issued by the department of revenue administration and licenses issued by the liquor commission.
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47	47	Explanation:Matter added to current law appears in bold italics.
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49	49	Matter removed from current law appears [in brackets and struckthrough.]
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51	51	Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
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53	53	03/13/2025 0734s25-0933
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55	55	08/05
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59	59	STATE OF NEW HAMPSHIRE
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63	63	In the Year of Our Lord Two Thousand Twenty Five
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67	67	AN ACTconsolidating licensing, auditing, and enforcement responsibilities for wholesale and retail e-cigarettes sales under the liquor commission.
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71	71	Be it Enacted by the Senate and House of Representatives in General Court convened:
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75	75	1 Notice to Liquor Commission. Amend RSA 78:23 to read as follows:
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77	77	78:23 Notice to Liquor Commission. The commissioner shall provide notice to the liquor commission of a violation of this chapter by a retailer, [whose license has been suspended or revoked by the commission] wholesaler, or manufacturer that results in an assessment, penalty, seizure, suspension or revocation.
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79	79	2 Definitions; Tobacco Product. Amend RSA 126-K:2, XI to read as follows:
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81	81	XI. "Tobacco product" means any product containing, made or derived from tobacco or nicotine that is intended for human consumption, including but not limited to cigarettes, electronic cigarettes, loose tobacco, smokeless tobacco, and cigars. Tobacco products shall not include premium cigars or any product that has been approved by the United States Food and Drug Administration for sale as a tobacco cessation product and is being marketed and sold exclusively for such approved use. [or derived from tobacco including, but not limited to, cigarettes, smoking tobacco, cigars, chewing tobacco, snuff, pipe tobacco, smokeless tobacco, and smokeless cigarettes. "Tobacco product" shall not include drugs, devices, or combination products authorized for sale by the United States Food and Drug Administration, as those terms are defined in the federal Food, Drug, and Cosmetic Act.]
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83	83	3 Definitions; E-Cigarette. Amend RSA 175:1, XXXI-a to read as follows:
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85	85	XXXI-a. "E-cigarette" means any electronic smoking device composed of a mouthpiece, a heating element, a battery, and electronic circuits that may or may not contain nicotine or e-liquid. This term shall include such devices whether they are manufactured as e-cigarettes, e-cigars, or e-pipes, or under any other product name, and e-liquid. "E-liquid" means any liquid, oil, or wax product containing, but not limited to, nicotine or cannabis intended for use in devices used for inhalation.
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87	87	4 Tobacco Products; Definitions. Amend RSA 175:1, LXIV-d to read as follows:
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89	89	LXIV-d. "Tobacco products" means any product containing, made, or derived from tobacco or nicotine that is intended for human consumption, including but not limited to cigarettes, e-cigarettes, loose tobacco, smokeless tobacco, and cigars. Tobacco products shall not include premium cigars or any product that has been approved by the United States Food and Drug Administration for sale as a tobacco cessation product and is being marketed and sold exclusively for such approved use. [cigarettes, loose tobacco, and smokeless tobacco.]
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91	91	LXIV-e. "Tobacco products manufacturer" means a person domiciled in the United States engaged in the business of importing, exporting, producing, or manufacturing tobacco products.
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93	93	LXIV-f. "Tobacco products wholesaler" means any person engaged in the business of receiving, storing, purchasing, and selling tobacco products from any source for distribution to persons other than consumers, except those persons exempted from the tobacco tax under RSA 78:5.
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95	95	[LXIV-e.] LXIV-g. "Vending machine" means any self-service device which, upon insertion of money, tokens, or any other form of payment, dispenses tobacco, cigarettes, or any other tobacco product.
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97	97	5 Licenses; Manufacture, Wholesale Sales. Amend RSA 178:2, I to read as follows:
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99	99	I. The commission may issue licenses to individuals, partnerships, limited liability companies and partnerships, or corporations but not to unincorporated associations, on applications duly made therefor for the manufacture, warehousing, sale, offer for sale, or solicitation of orders for sale of liquor or beverages and for the manufacture, wholesale sales, or retail sales of tobacco products or e-cigarettes within the state, subject to the limitations and restrictions imposed by this title. The commission shall keep a full record of all applications for licenses, of all recommendations for and remonstrances against the granting of licenses, and of the action taken on such applications.
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101	101	6 Retail Tobacco Licenses. Amend RSA 178:19-a to read as follows:
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103	103	178:19-a Retail Tobacco [License] Licenses.
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105	105	I. The commission may issue a retail tobacco license to a person engaged in the business of retail sales and distribution of tobacco products including e-cigarettes and alternative nicotine products in this state. Each retail outlet shall have a separate license regardless of the fact that one or more outlets may be owned or controlled by a single person.
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107	107	I-a. The commission may issue a retail tobacco license to any business holding a license to sell alcoholic beverages under RSA 178 for an additional fee of $6 per licensed location.
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109	109	II. A retail tobacco license shall be prominently displayed on the premises described in it.
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111	111	III. The commission, when issuing or renewing a retail tobacco license, shall furnish a sign which shall read or be substantially similar to the following: "State Law prohibits the sale of tobacco products or e-cigarettes to persons under age 21. Warning: violators of these provisions may be subject to a fine."
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113	113	IV. All retail sales of tobacco, including e-cigarettes, shall be recorded on cash registers. No additional registers shall be added during the remainder of the year without prior approval of the commission. No rebate shall be allowed for cash registers discontinued during the license year.
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115	115	V. The fee for a retail tobacco license shall be as determined in RSA 178:29, II(e).
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117	117	VI. All New Hampshire tobacco licensees shall abide by all federal laws, regulations, and rules governing the sale, packaging, distribution and advertising of tobacco products, e-cigarettes, liquid nicotine, and alternative nicotine products.
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119	119	VII. All retail tobacco licenses shall purchase their tobacco products from a licensed tobacco products wholesaler as defined in RSA 175:1, LXIV-f.
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121	121	VIII. Each retailer shall keep complete and accurate records of all tobacco products bought and sold in this state. Complete records shall be safely preserved for 3 years to ensure permanency and accessibility for inspection by the liquor commission.
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123	123	IX. The commission may adopt rules under RSA 541-A necessary to effect the purposes of this section.
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125	125	7 New Sections; Tobacco Products; Licenses. Amend RSA 178 by inserting after section 19-d the following new sections:
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127	127	178:19-e Tobacco Products Manufacturer.
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129	129	I. No tobacco products manufacturer shall engage in the business of selling or distributing tobacco products, including e-cigarettes, in this state, unless it is registered with the secretary of state, it has obtained a tobacco tax certificate from the department of revenue administration, and it is licensed as a tobacco products manufacturer in this state, as applicable.
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131	131	II. The fees for tobacco products manufacturer licenses and license renewals shall be as determined in RSA 178:29, V-a(a) and (d):
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133	133	III. Any tobacco products manufacturer of tobacco products, including e-cigarettes, that ceases business operations requiring a license under this chapter during the license period shall inform the liquor commission in writing and relinquish its license to the liquor commission within 30 days after ceasing business operations.
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135	135	IV. Each manufacturer shall keep complete and accurate records of all tobacco products manufactured, produced, imported, distributed, bought, and sold in this state. Complete records shall be safely preserved for 3 years to ensure permanency and accessibility for inspection by the liquor commission.
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137	137	V. The commission shall adopt rules under RSA 541-A relative to this section.
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139	139	178:19-f Tobacco Product Wholesaler.
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141	141	I. No tobacco products wholesaler shall engage in the business of selling or distributing tobacco products, including e-cigarettes, in this state, unless it is registered with the secretary of state, it has obtained a tobacco tax certificate from the department of revenue administration, and it is licensed as a tobacco products wholesaler in this state, as applicable.
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143	143	II. A wholesaler shall have a separate license for each location.
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145	145	III. The fees for wholesaler licenses and license renewals shall be as determined in RSA 178:29, V-a(a) and (d):
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147	147	IV. All wholesale tobacco licensees shall purchase their tobacco products from a licensed tobacco products manufacturer as defined in RSA 175:1 LXIV-f.
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149	149	V. Any wholesaler of tobacco products, including e-cigarettes, that ceases business operations requiring a license under this chapter during the license period shall inform the liquor commission in writing and relinquish its license to the liquor commission within 30 days after ceasing business operations.
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151	151	VI. Each wholesaler, shall keep complete and accurate records of all tobacco stamps purchased and all tobacco products manufactured, produced, imported, distributed, bought, and sold in this state. Complete records shall be safely preserved for 3 years to ensure permanency and accessibility for inspection by the liquor commission.
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153	153	VII. The commission shall adopt rules under RSA 541-A relative to this section.
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155	155	178:19-g Tobacco Product Seizure.
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157	157	I. The commission with or without process may seize:
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159	159	(a) Tobacco products taxed under RSA 78 that are possessed or controlled by a person for the purpose of selling or removing the tobacco products in violation of this chapter or RSA 78;
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161	161	(b) Tobacco products that are removed, deposited, or concealed by a person intending to avoid payment of taxes imposed by RSA 78;
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163	163	(c) An automobile, truck, boat, conveyance, or other type of vehicle used to remove or transport tobacco products by a person intending to avoid payment of taxes imposed by RSA 78; and
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165	165	(d) Equipment, paraphernalia, or other tangible personal property used by a person intending to avoid payment of taxes imposed by RSA 78 found in the place where the tobacco products are found.
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167	167	II. An item seized under this section is forfeited to the state and remains in the custody of the commission for disposition as provided by this section. The seized item is not subject to replevin.
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169	169	III. The seizure, forfeiture, and sale of tobacco products or property under this section, with or without court action, is not a defense to criminal prosecution for an offense or from liability for a penalty under RSA 78 or this chapter.
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171	171	178:19-h Notice to Department of Revenue Administration. The commissioner shall provide notice to the department of revenue administration of a violation of RSA 178:19-a, 178:19-b, 178:19-c, 178:19-e, or 178:19-f by a retailer, wholesaler, or manufacturer that results in an assessment, penalty, seizure, suspension or revocation.
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173	173	8 Fees; Tobacco. RSA 178:29, V-a is repealed and reenacted to read as follows:
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175	175	V-a. Annual tobacco licenses shall be as follows:
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177	177	(a) Tobacco manufacturer, $100.
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179	179	(b) Tobacco vending machine license, $35, plus $6 for each machine.
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181	181	(c) Tobacco sampling license, $6.
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183	183	(d) Tobacco product wholesaler, $250.
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185	185	9 New Paragraphs; Penalties; Tobacco. Amend RSA 179:58 by inserting after paragraph II the following new paragraphs:
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187	187	III. Any person who sells, offers for sale, or possesses with intent to sell in this state any tobacco products or e-cigarettes without the appropriate license, as provided in this title, shall be subject to criminal penalties as provided in RSA 21-J:39.
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189	189	IV. Notwithstanding RSA 21-J:14, information regarding licenses issued pursuant to this chapter and RSA 126-K shall be public records.
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191	191	10 New Paragraph; Suspension or Revocation. Amend RSA 179:57 by inserting after paragraph I-a the following new paragraph:
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193	193	I-b. License suspension for a violation of RSA 78:26 shall be as provided in RSA 78:26, VII.
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195	195	11 Tobacco Tax; Licenses and Tobacco Tax Certificates Required. Amend RSA 78:6 - 78:9 to read as follows:
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197	197	78:6 Licenses and Tobacco Tax Certificates Required.
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199	199	I. No manufacturer or wholesaler shall engage in the business of selling or distributing tobacco products in this state, unless registered with the secretary of state, [and] licensed as a manufacturer or wholesaler in this state under RSA 178 and holding a tobacco tax certificate issued under this chapter, as applicable.
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201	201	II. No retailer or sampler shall engage in the business of selling or distributing tobacco products in this state, unless licensed to sell or distribute tobacco products under RSA 178.
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203	203	III. A wholesaler shall have a separate license and tobacco tax certificate for each location.
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205	205	IV. The fees for [licenses and license] tobacco tax certificates and tobacco tax certificate renewals shall be:
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207	207	(a) $100 for a manufacturer's [license] tobacco tax certificate; and
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209	209	(b) $250 for a wholesaler's [license] tobacco tax certificate.
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211	211	V. Each license and tobacco tax certificate shall be prominently displayed in the premises described in it.
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213	213	VI. Licenses and tobacco tax certificates shall not be transferable.
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215	215	VII. Any wholesaler or manufacturer that ceases business operations requiring a license or tobacco tax certificate under this chapter during the license or certificate period shall inform the department in writing and relinquish its license to the liquor commission and its tobacco tax certificate to the department within 30 days after ceasing business operations.
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217	217	VIII. Each manufacturer, wholesaler, sampler, and retailer shall keep complete and accurate records of all tobacco stamps purchased and all tobacco products manufactured, produced, imported, distributed, bought, and sold in this state. Complete records shall be safely preserved for 3 years to insure permanency and accessibility for inspection by the commissioner.
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219	219	IX. Any person who sells, offers for sale, or possesses with intent to sell in this state any tobacco products without the appropriate license and tobacco tax certificate, as provided in this section or RSA 178, shall be subject to criminal penalties as provided in RSA 21-J:39.
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221	221	X. Notwithstanding RSA 21-J:14, information regarding [licenses] tobacco tax certificates issued pursuant to this section, licenses issued pursuant to RSA 178 [as it pertains to licenses for the retail sale of tobacco products], and RSA 126-K[,] shall be public records.
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223	223	78:7 Tobacco Product Sales Between Licensees and Certificate Holders.
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225	225	I. No manufacturer or wholesaler shall sell tobacco products in this state to any manufacturer, wholesaler, retailer, or sampler that does not possess an appropriate [license] tobacco tax certificate issued by the commissioner [or] and license issued by the liquor commission under RSA 178.
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227	227	II. A manufacturer shall sell tobacco products, without indicia of tax paid under RSA 78:10 or RSA 78:14, as applicable, only to a wholesaler licensed by this state.
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229	229	III. A wholesaler shall purchase tobacco products, without indicia of tax paid under RSA 78:10 or RSA 78:14, as applicable, only from a manufacturer or wholesaler licensed by this state under RSA 178 and holding a tobacco tax certificate issued under this chapter.
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231	231	IV. A wholesaler shall sell tobacco products to a retailer or sampler in this state only if it provides indicia of tax paid under RSA 78:10 or RSA 78:14, as applicable, to the purchaser under RSA 178 and holding a tobacco tax certificate issued under this chapter.
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233	233	V. No retailer or sampler shall purchase tobacco products without indicia of tax paid under RSA 78:10 or RSA 78:14, as applicable. A retailer shall not sell tobacco products without indicia of tax paid under RSA 78:10 or RSA 78:14, as applicable.
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235	235	VI. A retailer shall neither purchase tobacco products from nor sell tobacco products to another retailer, unless the purchase or sale is a one-time transfer of the seller's entire tobacco product inventory and the seller discontinues the tobacco line of business. The selling retailer shall return its license to the liquor commission and shall file an inventory of the tobacco products transferred, along with indicia of tax paid, with the department, within 30 days of the transfer of the tobacco products.
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237	237	VII. Any person who violates a provision of this section may be subject to tobacco products seizure and license suspension or revocation under this chapter, and criminal penalties under RSA 21-J:39.
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239	239	78:8 [License] Tobacco Tax Certificate Application and Renewal.
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241	241	I. Manufacturers and wholesalers intending to engage in the business of selling or distributing tobacco products in this state shall apply to the department providing the applicable fee as provided in RSA 78:6, IV, and all information required by the commissioner through rules adopted under RSA 541-A.
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243	243	II. [Licenses] Tobacco tax certificates shall expire on June 30 in each even-numbered year.
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245	245	III. Manufacturers and wholesalers in good standing with the department may renew their [licenses] tobacco tax certificates upon application and payment of the applicable fees. A manufacturer or wholesaler is not in good standing with the department if the manufacturer or wholesaler is delinquent in its payment of applicable fees, fines, or penalties resulting from violations of this chapter, delinquent in its payment of any taxes, penalties, or interest due under any tax administered by the department, or delinquent in its payment of applicable fees, fines, or penalties resulting from violation of RSA 126-K.
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247	247	78:9 Denial of [License] Tobacco Tax Certificate Application.
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249	249	I. The commissioner may deny a manufacturer's or wholesaler's application for a [license] tobacco tax certificate, for any of the following reasons:
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251	251	(a) The applicant's [license] tobacco tax certificate was revoked by the commissioner under RSA 78:20.
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253	253	(b) The commissioner believes that the application is filed by a person as a subterfuge for the real person in interest whose [license] tobacco tax certificate was revoked by the commissioner under RSA 78:20.
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255	255	(c) The applicant, or a person or entity that owns or has a right to control any interest in the applicant, is not in good standing with the department as described in RSA 78:8, III.
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257	257	(d) The applicant, or a person or entity that owns or has a right to control any interest in the applicant, has been convicted of a crime provided for in this chapter, or in any other state for a crime related to tobacco tax, within a 2-year period prior to the date on which the application is filed.
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259	259	(e) The applicant, or a person or entity that owns or has a right to control any interest in the applicant, has been convicted of a crime involving theft or fraud in this state or any other state, within a 2-year period prior to the date on which the application is filed.
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261	261	(f) The commissioner, pursuant to rules adopted under RSA 541-A, determines that the applicant, or a person or entity that owns or has a right to control any interest in the applicant, is not financially responsible or otherwise not a suitable person to manufacture, or purchase or sell tobacco products at wholesale, in this state.
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263	263	II. The commissioner shall notify the applicant of the denial in writing.
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265	265	III. An applicant aggrieved by the denial of a license may petition for redetermination or reconsideration within 60 days after the commissioner issues the notice of denial in accordance with the procedures provided in RSA 21-J:28-b.
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267	267	12 Indicia of Tax Paid-Cigarettes; Stamps. Amend RSA 78:10, V to read as follows:
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269	269	V. A wholesaler or vending machine operator licensed under RSA 178 and holding a tobacco tax certificate may possess, with an intent to sell, cigarettes or little cigars bearing a foreign state's tax stamp or indicia only if the licensee is currently and legitimately doing business in that state.
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271	271	13 Indicia of Tax Paid - Other Tobacco Products. Amend RSA 78:14, III to read as follows:
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273	273	III. Indicia of tax paid includes, but is not limited to, all invoices from all wholesalers purchased from within the preceding 24 months. At a minimum, invoices shall contain the names and addresses of the seller and the purchaser, the license and tobacco tax certificate numbers of the seller and purchaser, the date of purchase of the product, the type and brand of each product, the quantity of each product, the purchase price of each product, and an affirmative statement from the wholesaler that all taxes on the product have been paid.
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275	275	14 Enforcement; Documentation Required. Amend RSA 78:15, IV-VII to read as follows:
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277	277	IV. Wholesalers, retailers, and samplers shall maintain their statements and records at the places of business identified in their [licenses] tobacco tax certificates for a period of 12 months from the date of manufacture, purchase, acquisition, or sale, whichever is later.
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279	279	V. The records required of wholesalers shall include a written statement containing:
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281	281	(a) The name and address of both the seller and the purchaser;
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283	283	(b) The date of delivery;
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285	285	(c) The quantity of tobacco products;
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287	287	(d) The trade name and brand of the tobacco products;
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289	289	(e) The price paid for each brand of tobacco products purchased; and
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291	291	(f) Any other records or statements as the commissioner may reasonably require.
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293	293	VI. Every manufacturer and wholesaler shall deliver with each sale or distribution of tobacco products a written statement, and retain a duplicate, containing:
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295	295	(a) The name or trade name and address of both the seller and the purchaser;
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297	297	(b) The date of delivery;
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299	299	(c) The quantity of tobacco products; and
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301	301	(d) The trade name or brand of the tobacco products, correctly itemizing the prices paid for each brand of tobacco products purchased.
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303	303	VII. No [licensee] tobacco tax certificate holder shall issue or accept any written statement that the [licensee] certificate holder knows to contain any statement that falsely indicates the name of the customer, the type of merchandise, the prices, discounts, or the terms of sale. Nor shall any [licensee] certificate holder insert, in any invoice given or accepted, any statement that makes the invoice a false record of the transaction it represents. Nor shall any [licensee] certificate holder give or accept any invoice that withholds statements so that the invoice does not truly reflect the transaction it represents.
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305	305	15 Enforcement; Suspension; Revocation; Penalties; Reinstatement. Amend RSA 78:19 - 78:22 to read as follows:
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307	307	78:19 Administrative Hearings on [License] Tobacco Tax Certificate Suspension or Revocation and Seizure and Forfeiture of Contraband Tobacco Products.
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309	309	I. Within 10 days after a seizure of tobacco products under RSA 78:18, the commissioner shall schedule and notice a hearing at which the owner shall have an opportunity to show cause as to why the seizure was inappropriate.
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311	311	II. To suspend or revoke a [license] tobacco tax certificate under RSA 78:20, the commissioner shall provide the [licensee] certificate holder with notice and a hearing at which the [licensee] certificate holder shall have an opportunity to show cause as to why the suspension or revocation is inappropriate.
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313	313	III. The commissioner shall issue a final order in writing following a hearing under paragraph I or II.
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315	315	IV. Within 30 days of the notice of a final order by the commissioner, the [licensee] certificate holder, owner, or other person, as applicable may appeal the final order by written application to the board of tax and land appeals. The board of tax and land appeals shall hear the appeal de novo.
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317	317	78:20 Suspension or Revocation of [License] Tobacco Tax Certificate.
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319	319	I. The commissioner, after notice and hearing under RSA 78:19, may suspend for a period of time not to exceed 90 days, or revoke any [license] tobacco tax certificate issued under this chapter or [RSA 178 as it relates to licensure for the retail sale or sampling of tobacco products,] or uphold the denial of a [license] tobacco tax certificate for any one of the following reasons:
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321	321	(a) The [licensee] certificate holder fails to file any return or report required by this chapter.
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323	323	(b) The [licensee] certificate holder files a return, report, or affidavit required by this chapter, which is false.
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325	325	(c) The [licensee] certificate holder fails to collect, truthfully account for, or pay over any tax due under this chapter.
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327	327	(d) The [licensee] certificate holder, or a person or entity that owns or has a right to control any interest in the [licensee] certificate holder, has been convicted of, or has admitted to sufficient facts to support a finding of guilt of, any violation under this chapter, any violation under federal law where the conduct underlying the conviction or admission relates to tobacco products, or any violation of law involving dishonesty or fraud, within a 5-year period in the case of a misdemeanor or within a 10-year period in the case of a felony.
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329	329	(e) Tobacco products without indicia of tax paid have been seized from the licensee's business premises and held by the department as contraband on one or more occasions during a 5-year period.
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331	331	(f) The [licensee] certificate holder has refused to permit, hindered, or obstructed an examination, investigation, or search authorized under RSA 78:16.
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333	333	(g) The [licensee] certificate holder, or a person or entity that owns or has a right to control any interest in the [licensee] certificate holder, is not a suitable person for licensure in New Hampshire, as determined by the commissioner pursuant to rules adopted under RSA 541-A.
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335	335	(h) The certificate holder has had a license issued under RSA 178 suspended or revoked.
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337	337	II. [License] Tobacco tax certificate suspension for a violation of RSA 78:26 shall be as provided in RSA 78:26, VII.
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339	339	78:21 Administrative Penalties.
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341	341	I. Administrative penalties for violation of RSA 78:26 shall be in accordance with RSA 78:26, VII.
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343	343	II. In addition to, or in lieu of, a period of [license] tobacco tax certificate suspension, the commissioner may assess an administrative fine against any wholesaler who satisfies RSA 78:2, III, who has sold tobacco product without indicia of tax paid, or against any retailer who has purchased tobacco products without indicia of tax paid, as follows:
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345	345	(a) First offense-$500.
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347	347	(b) Second offense-$1,500.
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349	349	(c) Third offense-$5,000.
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351	351	78:22 Reinstatement After Revocation. The commissioner may reinstate a revoked [license] tobacco tax certificate if he or she is satisfied that the former [licensee] certificate holder will comply with the provisions of this chapter.
352	352
353	353	16 New Paragraph; Importation of Certain Tobacco Products Prohibited; Federal Requirements; Cigarettes and Other Tobacco Products; Placement of Labels; Penalty; Definition of License. Amend RSA 78:26 by inserting after paragraph IX the following new paragraph:
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355	355	X. In this section, "license" means a license issued under RSA 178 and the tobacco tax certificate issued under this chapter.
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357	357	17 Tobacco Tax; Rulemaking; Tobacco Tax Certificates. Amend RSA 78:27 to read as follows:
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359	359	78:27 Rulemaking.
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361	361	The commissioner shall adopt rules under RSA 541-A relative to the following:
362	362
363	363	I. The use, purchase, and purpose of tobacco stamps.
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365	365	II. [License] Tobacco tax certificate application processes.
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367	367	III. Documentation required to be maintained by [licensees] tobacco tax certificate holders.
368	368
369	369	IV. Application of credits and refunds for taxes paid on other tobacco products.
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371	371	V. Roll-your-own tobacco.
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373	373	VI. Refund process for stamps on outdated, damaged, or unsaleable cigarettes.
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375	375	VII. Documentation and filing requirements for [licensees] tobacco tax certificate holders with regard to the Master Settlement Agreement.
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377	377	VIII. [Licenses] Tobacco tax certificates, forms, reports, and returns.
378	378
379	379	IX. Hearings procedures.
380	380
381	381	X. Any other matter necessary to the proper administration and enforcement of this chapter.
382	382
383	383	18 Effective Date. This act shall take effect July 1, 2025.
384	384
385	385
386	386
387	387	LBA
388	388
389	389	25-0933
390	390
391	391	Revised 2/18/25
392	392
393	393
394	394
395	395	SB 80-FN- FISCAL NOTE
396	396
397	397	AS INTRODUCED
398	398
399	399
400	400
401	401	AN ACTconsolidating licensing, auditing, and enforcement responsibilities for wholesale and retail e-cigarettes sales under the liquor commission.
402	402
403	403
404	404
405	405	FISCAL IMPACT: This bill does not provide funding, nor does it authorize new positions.
406	406
407	407
408	408	Estimated State Impact
409	409	FY 2025 FY 2026 FY 2027 FY 2028
410	410	Revenue $0 $0 $0 $0
411	411	Revenue Fund(s) None
412	412	Expenditures* $0 In excess of $340,000 In excess of $358,000 In excess of $368,000
413	413	Funding Source(s) Liquor Fund
414	414	Appropriations* $0 $0 $0 $0
415	415	Funding Source(s) None
416	416	Expenditure = Cost of bill Appropriation = Authorized funding to cover cost of bill
417	417
418	418
419	419
420	420
421	421
422	422	Estimated State Impact
423	423
424	424
425	425
426	426	FY 2025
427	427
428	428	FY 2026
429	429
430	430	FY 2027
431	431
432	432	FY 2028
433	433
434	434	Revenue
435	435
436	436	$0
437	437
438	438	$0
439	439
440	440	$0
441	441
442	442	$0
443	443
444	444	Revenue Fund(s)
445	445
446	446	None
447	447
448	448	Expenditures*
449	449
450	450	$0
451	451
452	452	In excess of $340,000
453	453
454	454	In excess of $358,000
455	455
456	456	In excess of $368,000
457	457
458	458	Funding Source(s)
459	459
460	460	Liquor Fund
461	461
462	462	Appropriations*
463	463
464	464	$0
465	465
466	466	$0
467	467
468	468	$0
469	469
470	470	$0
471	471
472	472	Funding Source(s)
473	473
474	474	None
475	475
476	476	Expenditure = Cost of bill Appropriation = Authorized funding to cover cost of bill
477	477
478	478
479	479
480	480	METHODOLOGY:
481	481
482	482	This bill consolidates licensing, auditing, and enforcement responsibilities for wholesale and retail e-cigarettes sales under the Liquor Commission. The Liquor Commission assumes the bill would transfer licensing of retail, wholesale and manufacturing including licensing revenue from the Department of Revenue Administration (DRA) to the Commission. The Commission does not anticipate an licensing revenue as a result of the bill and notes the bill does not provide for transfer of positions from the DRA to the Commission and does not provide any funding to the commission to carry out the new responsibilities. The Commission believes four additional positions would be needed; two Investigator I positions, one Examiner II and one Licensure Specialist. The estimated annual cost for these positions is $340,000 in FY 2026, $358,000 in FY 2027, and $368,000 in FY 2028. The Commission notes that DRA personnel are civilian positions and the Commission would employ law enforcement personnel including the necessary equipment not required for current DRA employees. In addition, the commission assumes it may need additional office space and new, secure, evidentiary storage space for any seizures made as a result of investigations. This storage space would be separate from current evidence storage areas used to carry out federal tobacco compliance programs. The Commission indicates it is unclear if it would utilize the licensing process, including hardware and software that is currently used by the DRA to carry out this responsibility.
483	483
484	484
485	485
486	486	The DRA assumes the bill would establish a requirement for wholesalers and manufacturers of tobacco products to be licensed with the Liquor Commission in addition to the DRA prior to engaging in business in this state. The DRA states as presently drafted, the bill could cause confusion between the licenses required which are both simply referred to as licenses, although in the proposed legislation, DRA’s license is referred to incorrectly as a certificate of good standing. DRA suggested that RSA 78 be amended in the bill to refer to a tobacco tax license with the appropriate reference to avoid confusion. The DRA assumes the bill would not result in any additional administrative costs that could not be absorbed with the current operating budget.
487	487
488	488
489	489
490	490	AGENCIES CONTACTED:
491	491
492	492	Liquor Commission and Department of Revenue Administration