SENATE BILL NO. 575
A bill to amend 1915 PA 31, entitled
"Youth tobacco act,"
by amending the title and section 4 (MCL 722.644), as amended by 2019 PA 18, and by adding sections 2d and 2e.
the people of the state of michigan enact:
An act to prohibit the selling, giving, or furnishing of tobacco products, vapor products, and alternative nicotine products to minors; to prohibit the purchase, possession, or use of tobacco products, vapor products, and alternative nicotine products by minors; to regulate the retail sale of tobacco products, vapor products, alternative nicotine products, and liquid nicotine containers; to require the registration of vapor products; to regulate and license persons that manufacture and persons that sell tobacco products, vapor products, or alternative nicotine products at retail; to prescribe penalties and provide sanctions; and to prescribe the powers and duties of certain state agencies and departments.
Sec. 2d. (1) Beginning January 1, 2022, a person shall not sell a tobacco product, vapor product, or alternative nicotine product at retail unless that person is licensed under this section.
(2) An application for a license must be in a form prescribed by the department and signed under penalty of perjury. A person shall obtain a separate license for each location where a tobacco product, vapor product, or alternative nicotine product is sold. A person who sells a tobacco product, vapor product, or alternative nicotine product at retail at more than 1 location may submit a single application to the department for each location where a tobacco product, vapor product, or alternative nicotine product is sold.
(3) The department shall grant a license to a person that submits a completed application and pays a licensing fee of not more than $250.00 per location to the department.
(4) The department shall issue a certificate of licensure to a person that is granted a license under this act.
(5) A person shall display the certificate of licensure, or a duplicate copy of the certificate of licensure, prominently and where visible to the public in the person's place of business where a tobacco product, vapor product, or alternative nicotine product is sold.
(6) Each license is valid for 1 year and must be renewed annually before December 31 of the year that the license expires. The cost of renewing the license must not exceed $100.00.
(7) The department may deny, suspend, revoke, or refuse to renew a license for good cause. For purposes of this subsection, "good cause" consists of instances in which the department determines that a person has done any of the following:
(a) Submitted a false or fraudulent application for a license.
(b) Provided a false statement in the application for a license.
(c) Possessed a false or fraudulent certificate of licensure.
(d) Displayed a false or fraudulent certificate of licensure in a place of business where a tobacco product, vapor product, or alternative nicotine product is sold.
(8) The department shall not deny, suspend, revoke, or refuse to renew a person's license under this section unless the person is given an opportunity for a hearing. A hearing and an appeal must be conducted under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
(9) The department may promulgate rules under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, to implement this section.
(10) In addition to any other remedies provided by law, if the department determines that a person violated this section, the department may assess an administrative fine of not more than $500.00 after notice and a hearing as provided under the administrative procedure act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
(11) Fees and fines collected under this section must be distributed as follows:
(a) Fifty-five percent to the local law enforcement department for the city, village, township, or county, as applicable, in which the licensed premises is located.
(b) Forty-one and one-half percent for the administration and enforcement of this act.
(c) Three and one-half percent to be credited to a special fund in the department for the purpose of promoting and sustaining programs for the prevention, rehabilitation, and treatment of individuals who suffered adverse effects from the use of a tobacco product, vapor product, or alternative nicotine product.
(12) As used in this section, "department" means the department of treasury.
Sec. 2e. (1) Beginning January 1, 2022, a person who sells tobacco products, vapor products, or alternative nicotine products at retail shall not sell a vapor product in this state unless the vapor product is registered with the department.
(2) Beginning January 1, 2022, a person that manufactures vapor products to be sold in this state must register those vapor products with the department.
(3) To register a vapor product under this section, a person that manufactures vapor products to be sold in this state shall execute and deliver an attestation under the penalty of perjury to the department certifying that 1 or more of the following conditions have been met as of the date of the certification:
(a) The vapor product was on the United States market as of August 8, 2016, and the person that manufactured the vapor product has applied for a marketing order for the vapor product by submitting a premarket tobacco product application on or before March 31, 2021, to the United States Food and Drug Administration.
(b) The person that manufactured the vapor product has received a marketing order or other authorization under 21 USC 387j for the vapor product from the United States Food and Drug Administration.
(4) A person that manufactures vapor products to be sold in this state must notify the department within 15 days of any material change to the attestation provided under subsection (3), including if the United States Food and Drug Administration has issued a marketing order or other authorization to that manufacturer, has issued a no marketing order to that manufacturer, or has ordered that manufacturer to remove the vapor product, either temporarily or permanently, from the United States market.
(5) On receipt of the attestation required under subsection (3), the department shall register the vapor product identified in the attestation and compile a directory that includes the following information:
(a) A list of persons that manufacture vapor products to be sold in this state that complied with the requirements of subsection (3).
(b) A list of vapor products registered in this state.
(6) Beginning January 1, 2023, the department shall make the directory required under subsection (5) available for public inspection on its website. The department shall periodically update the directory to correct mistakes, add new information that becomes available under subsection (5), or remove information from the directory.
(7) A person that violates subsection (1) or (2) is responsible for a state civil infraction and may be ordered to pay a civil fine as follows:
(a) For a first offense in a calendar year, not more than $500.00.
(b) For a second offense in a calendar year, not more than $1,000.00.
(c) For a third or subsequent offense in a calendar year, not more than $2,500.00.
(8) This state shall not, by rule or regulation, prohibit the sale of a vapor product that has been registered in accordance with subsection (3).
(9) As used in this section, "department" means the department of licensing and regulatory affairs.
(a) "Alternative nicotine product" means a noncombustible product containing nicotine that is intended for human consumption, whether chewed, absorbed, dissolved, or ingested by any other means. Alternative nicotine product does not include a tobacco product, a vapor product, food, or a product regulated as a drug or device by the United States Food and Drug Administration under 21 USC 351 to 360fff-7.
(b) "Certificate of licensure" means a document issued by the department of treasury as evidence to a person authorized to sell a tobacco product, vapor product, or alternative nicotine product at retail.
(c) "License" means the certificate of licensure issued by the department under section 2d.
(d) "Licensee" means the person issued a certificate of licensure under section 2d.
(e) "Licensed premises" means any portion of a building, structure, room, or enclosure on real estate that is owned, leased, used, controlled, or operated by a licensee.
(f) "Local law enforcement department" means a full-time police department or full-time ordinance enforcement department maintained by a city, village, or township in which the licensed premises is located, or if a full-time police department or full-time ordinance enforcement department is not maintained by a city, village, or township in which the licensed premises is located, the sheriff's department of the county in which the licensed premises is located.
(g) (b) "Minor" means an individual who is less than 18 21 years of age.
(c) "Person who sells vapor products or alternative nicotine products at retail" means a person whose ordinary course of business consists, in whole or in part, of the retail sale of vapor products or alternative nicotine products.
(h) (d) "Person who sells tobacco products at retail" means a person whose ordinary course of business consists, in whole or in part, of the retail sale of tobacco products subject to state sales tax under the general sales tax act, 1933 PA 167, MCL 205.51 to 205.78.
(i) "Person who sells tobacco products, vapor products, or alternative nicotine products at retail" means a person whose ordinary course of business consists, in whole or in part, of the retail sale of a tobacco products subject to sales tax under the general sales tax act, 1933 PA 167, MCL 205.51 to 205.78, vapor products, or alternative nicotine products.
(j) "Person who sells vapor products or alternative nicotine products at retail" means a person whose ordinary course of business consists, in whole or in part, of the retail sale of vapor products or alternative nicotine products.
(k) (e) "Public place" means a public street, sidewalk, or park or any area open to the general public in a publicly owned or operated building or public place of business.
(l) (f) "Tobacco product" means a product that contains tobacco and is intended for human consumption, including, but not limited to, a cigarette, noncigarette smoking tobacco, or smokeless tobacco, as those terms are defined in section 2 of the tobacco products tax act, 1993 PA 327, MCL 205.422, and a cigar.
(m) (g) "Use a tobacco product, vapor product, or alternative nicotine product" means to smoke, chew, suck, inhale, or otherwise consume a tobacco product, vapor product, or alternative nicotine product.
(n) (h) "Vapor product" means a noncombustible product that employs a heating element, power source, electronic circuit, or other electronic, chemical, or mechanical means, regardless of shape or size, that can be used to produce vapor from nicotine or any other substance, other than marihuana, and the use or inhalation of which simulates smoking. Vapor product includes an electronic cigarette, electronic cigar, electronic cigarillo, electronic pipe, or similar product or device and a vapor cartridge or other container of nicotine or other substance, other than marihuana, in a solution or other form that is intended to be used with or in an electronic cigarette, electronic cigar, electronic cigarillo, electronic pipe, or similar product or device. Vapor product does not include a product regulated as a drug or device by the United States Food and Drug Administration under 21 USC 351 to 360fff-7. As used in this subdivision, "marihuana" means that term as defined in section 7106 of the public health code, 1978 PA 368, MCL 333.7106. For purposes of this definition, "marihuana" and "marijuana" are synonymous.
Enacting section 1. This amendatory act does not take effect unless all of the following bills of the 101st Legislature are enacted into law:
(a) Senate Bill No. 572.
(c) Senate Bill No. 574.
(d) Senate Bill No.____ or House Bill No.____ (request no. 01404'21).