1 | 1 | | |
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2 | 2 | | HOUSE BILL 1008 |
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3 | 3 | | By Raper |
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4 | 4 | | |
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5 | 5 | | SENATE BILL 926 |
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6 | 6 | | By Gardenhire |
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7 | 7 | | |
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8 | 8 | | |
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9 | 9 | | SB0926 |
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10 | 10 | | 002755 |
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11 | 11 | | - 1 - |
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12 | 12 | | |
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13 | 13 | | AN ACT to amend Tennessee Code Annotated, Title 39, |
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14 | 14 | | Chapter 17, Part 15 and Title 62, relative to the |
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15 | 15 | | sale of vapor products. |
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16 | 16 | | |
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17 | 17 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE: |
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18 | 18 | | SECTION 1. Tennessee Code Annotated, Section 39-17-1510, is amended by |
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19 | 19 | | designating the existing language as subsection (a) and adding the following as a new |
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20 | 20 | | subsection (b): |
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21 | 21 | | Notwithstanding subsection (a), a person who sells or distributes a vapor product |
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22 | 22 | | to an individual under twenty-one (21) years of age in violation of § 39-17-1504(a) or § |
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23 | 23 | | 39-17-1507(b) commits a Class A misdemeanor. |
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24 | 24 | | SECTION 2. Tennessee Code Annotated, Title 62, Chapter 76, Part 1, is amended by |
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25 | 25 | | adding the following as a new section: |
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26 | 26 | | (a) As used in this section: |
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27 | 27 | | (1) "Accessory" means any product that is intended or reasonably |
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28 | 28 | | expected to be used for the human consumption of a vapor product; |
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29 | 29 | | (2) "Age-restricted vapor product business" means any business that: |
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30 | 30 | | (A) Requires persons to be twenty-one (21) years of age or older |
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31 | 31 | | to enter the premises of the business; |
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32 | 32 | | (B) Determines the age of the customer through authentication |
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33 | 33 | | and verification of the purchaser's photo identification; and |
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34 | 34 | | (C) Derives no less than seventy-five percent (75%) of its gross |
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35 | 35 | | sales from the sale of vapor products and accessories; |
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36 | 36 | | |
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37 | 37 | | |
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38 | 38 | | - 2 - 002755 |
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39 | 39 | | |
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40 | 40 | | (3) "Commissioner" means the commissioner of commerce and |
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41 | 41 | | insurance; |
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42 | 42 | | (4) "Department" means the department of commerce and insurance; |
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43 | 43 | | (5) "Retailer" means a person who sells vapor products to a consumer for |
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44 | 44 | | any purpose other than resale; and |
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45 | 45 | | (6) "Vapor product" means a noncombustible product that employs a |
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46 | 46 | | heating element, battery, power source, electronic circuit, or other electronic, |
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47 | 47 | | chemical, or mechanical means, regardless of shape or size and including the |
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48 | 48 | | component parts and accessories thereto, that can be used to deliver vaporized |
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49 | 49 | | nicotine or other substances to users inhaling from the device. "Vapor product" |
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50 | 50 | | includes, but is not limited to, any device deemed to be an electronic nicotine |
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51 | 51 | | delivery system by the United States food and drug administration, any electronic |
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52 | 52 | | cigarette, electronic cigar, electronic cigarillo, electronic pipe, or similar product |
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53 | 53 | | or device and every variation thereof, regardless of whether marketed as such, |
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54 | 54 | | and any vapor cartridge or other container of a liquid solution or other material |
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55 | 55 | | that is intended to be used with or in an electronic cigarette, electronic cigar, |
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56 | 56 | | electronic cigarillo, electronic pipe, or other similar product or device. |
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57 | 57 | | (b) |
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58 | 58 | | (1) Notwithstanding another law to the contrary and except as provided in |
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59 | 59 | | subdivision (b)(2), beginning December 1, 2025, no person, firm, or corporation |
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60 | 60 | | shall: |
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61 | 61 | | (A) Operate as a retailer selling vapor products in this state |
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62 | 62 | | without first obtaining a vapor product business license issued by the |
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63 | 63 | | department; or |
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64 | 64 | | |
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65 | 65 | | |
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66 | 66 | | - 3 - 002755 |
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67 | 67 | | |
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68 | 68 | | (B) Sell, at retail, a vapor product to a customer except through a |
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69 | 69 | | face-to-face sales transaction at a licensed, age-restricted vapor product |
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70 | 70 | | business. |
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71 | 71 | | (2) Persons engaged in display, exhibition, or sale of vapor products, |
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72 | 72 | | including flavored vapor products, at trade shows or exhibitions are not required |
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73 | 73 | | to obtain a vapor products business license; provided, that: |
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74 | 74 | | (A) Access to the portion of the trade show's venue where vapor |
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75 | 75 | | products are displayed, offered for sale, or sold is restricted to persons |
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76 | 76 | | who are twenty-one (21) years of age or older; |
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77 | 77 | | (B) Each attendee of the trade show, as a condition of admission |
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78 | 78 | | to the venue, presents a photo identification to verify age; and |
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79 | 79 | | (C) Manufacturers, distributors, or retailers whose vapor products |
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80 | 80 | | are displayed, offered for sale, or sold at the venue shall conduct a |
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81 | 81 | | secondary age authentication and verification prior to commencing the |
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82 | 82 | | retail sale transaction for any vapor product. |
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83 | 83 | | (c) |
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84 | 84 | | (1) Each application for a vapor products business license must be made |
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85 | 85 | | in a form prescribed by the department, along with the license fee, and any |
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86 | 86 | | supporting documentation required by the department. The license may be |
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87 | 87 | | renewed annually. The vapor products business license must be posted in a |
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88 | 88 | | conspicuous place on the premises of the business where vapor products are |
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89 | 89 | | sold. |
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90 | 90 | | (2) The license shall remain in full force and effect from the date of |
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91 | 91 | | issuance until the next occurring January 1 unless it is surrendered by the |
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92 | 92 | | licensee, suspended, or revoked. |
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93 | 93 | | |
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94 | 94 | | |
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95 | 95 | | - 4 - 002755 |
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96 | 96 | | |
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97 | 97 | | (3) The fee for each license is two hundred fifty dollars ($250) per year |
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98 | 98 | | for each licensed premises, and the fee is payable to the department. |
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99 | 99 | | (4) The license is not transferable from one (1) person to another or from |
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100 | 100 | | one (1) location to another location. A new license is required whenever a |
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101 | 101 | | retailer has a change in ownership. |
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102 | 102 | | (d) |
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103 | 103 | | (1) The commissioner shall approve or deny every application for a |
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104 | 104 | | license within sixty (60) days from the receipt of a completed application. |
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105 | 105 | | (2) If the application is denied, the: |
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106 | 106 | | (A) License is not issued; |
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107 | 107 | | (B) License fee is returned to the applicant; |
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108 | 108 | | (C) Applicant must be notified of the commissioner's denial, which |
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109 | 109 | | must include the reason for the denial; and |
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110 | 110 | | (D) Applicant may appeal the denial and request an |
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111 | 111 | | administrative hearing on the matter in accordance with the Uniform |
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112 | 112 | | Administrative Procedures Act, compiled in title 4, chapter 5. |
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113 | 113 | | (3) If the commissioner permanently revokes a license pursuant to |
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114 | 114 | | subsection (e), the commissioner shall: |
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115 | 115 | | (A) Notify the applicant within ten (10) days of the decision to |
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116 | 116 | | revoke the license; |
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117 | 117 | | (B) Commence a hearing on the license revocation in |
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118 | 118 | | accordance with the Uniform Administrative Procedures Act, compiled in |
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119 | 119 | | title 4, chapter 5; and |
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120 | 120 | | |
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121 | 121 | | |
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122 | 122 | | - 5 - 002755 |
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123 | 123 | | |
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124 | 124 | | (C) Issue a final order explaining the decision and facts |
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125 | 125 | | supporting the license revocation. A final order of the commissioner is |
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126 | 126 | | appealable to the chancery court in the jurisdiction of the licensee. |
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127 | 127 | | (4) The department shall promulgate rules in accordance with the |
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128 | 128 | | Uniform Administrative Procedures Act, compiled in title 4, chapter 5, to |
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129 | 129 | | implement this section, including establishing a procedure for administering |
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130 | 130 | | citations, issuing orders, and filing appeals under this section. |
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131 | 131 | | (e) |
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132 | 132 | | (1) The department shall: |
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133 | 133 | | (A) Investigate the information provided in each vapor product |
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134 | 134 | | business licensure application; and |
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135 | 135 | | (B) If the license is approved, conduct random inspections or |
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136 | 136 | | compliance checks of the licensee not less than once annually during |
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137 | 137 | | normal business hours or as deemed appropriate by the commissioner. |
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138 | 138 | | (2) Any violation found during a compliance check shall be rechecked by |
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139 | 139 | | the department's enforcement division: |
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140 | 140 | | (A) Not earlier than one (1) month nor later than three (3) months |
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141 | 141 | | after a notice of violation is issued to the licensee; or |
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142 | 142 | | (B) As soon as the commissioner deems practicable. |
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143 | 143 | | (3) Notwithstanding another law to the contrary and in addition to any |
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144 | 144 | | other fines or penalties that may apply, a retailer who violates subdivision (b)(1) |
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145 | 145 | | is subject to a civil penalty of: |
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146 | 146 | | (A) Five thousand dollars ($5,000) for the first violation; |
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147 | 147 | | (B) Ten thousand dollars ($10,000) for the second violation within |
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148 | 148 | | three (3) years; |
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149 | 149 | | |
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150 | 150 | | |
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151 | 151 | | - 6 - 002755 |
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152 | 152 | | |
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153 | 153 | | (C) Twenty-five thousand dollars ($25,000) and a fifteen-day |
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154 | 154 | | suspension of the vapor license for a third or subsequent violation within |
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155 | 155 | | three (3) years; and |
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156 | 156 | | (D) Revocation of the license shall occur upon the fourth violation |
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157 | 157 | | within three (3) years. |
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158 | 158 | | SECTION 3. For purposes of promulgating rules, this act takes effect upon becoming a |
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159 | 159 | | law, the public welfare requiring it. For all other purposes, this act takes effect July 1, 2025, the |
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160 | 160 | | public welfare requiring it. |
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