Bill Text: NH HB680 | 2019 | Regular Session | Amended


Bill Title: Relative to the definition of tobacco product for purposes of the tobacco tax and retail tobacco licensing.

Spectrum: Strong Partisan Bill (Democrat 11-1)

Status: (Introduced) 2019-03-27 - Retained in Committee [HB680 Detail]

Download: New_Hampshire-2019-HB680-Amended.html

HB 680-FN - AS AMENDED BY THE HOUSE

 

27Feb2019... 0501h

2019 SESSION

19-0807

10/05

 

HOUSE BILL 680-FN

 

AN ACT relative to the definition of tobacco product for purposes of the tobacco tax and retail tobacco licensing.

 

SPONSORS: Rep. Martin, Hills. 23; Rep. Almy, Graf. 13; Rep. Berrien, Rock. 18; Rep. Campion, Graf. 12; Rep. Horrigan, Straf. 6; Rep. McBeath, Rock. 26; Rep. Southworth, Straf. 20; Rep. Heath, Hills. 14; Rep. Fothergill, Coos 1; Rep. McGhee, Hills. 40; Sen. Watters, Dist 4; Sen. Chandley, Dist 11

 

COMMITTEE: Commerce and Consumer Affairs

 

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AMENDED ANALYSIS

 

This bill defines what is a tobacco product for purposes of the tobacco tax and retail tobacco licensing, and adds products that can deliver nicotine to the user through inhalation of vapor.

 

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

27Feb2019... 0501h 19-0807

10/05

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Nineteen

 

AN ACT relative to the definition of tobacco product for purposes of the tobacco tax and retail tobacco licensing.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

1  Tobacco Tax; Definition; Tobacco Products.  RSA 78:1, XIV is repealed and reenacted to read as follows:

XIV.(a)  “Tobacco products” means:

(1)  Any product that is made from or derived from tobacco that is intended for human consumption or is likely to be consumed, whether smoked, heated, chewed, absorbed, dissolved, inhaled, or ingested by any other means, including, but not limited to, a cigarette, a cigar, pipe tobacco, chewing tobacco, snuff, and snus.

(2)  Any product that can deliver nicotine to the user through inhalation of vapor including any component part of such product, including a substance for use in the device regardless of whether the substance contains nicotine, and whether or not sold separately.

(b)  “Tobacco products” shall not include:

(1)  Drugs, devices, or combination products authorized for sale by the U.S. Food and Drug Administration, as those terms are defined in the Federal Food, Drug, and Cosmetic Act.

(2)  Premium cigars.

2  Liquor Commission; General Provisions; Definitions.  RSA 175:1, LXIV-d is repealed and reenacted to read as follows:

LXIV-d.(a)  “Tobacco products” means:

(1)  Any product that is made from or derived from tobacco that is intended for human consumption or is likely to be consumed, whether smoked, heated, chewed, absorbed, dissolved, inhaled, or ingested by any other means, including, but not limited to, a cigarette, a cigar, pipe tobacco, chewing tobacco, snuff, and snus.

(2)  Any product that can deliver nicotine to the user through inhalation of vapor including any component part of such product, including a substance for use in the device regardless of whether the substance contains nicotine, and whether or not sold separately.

(b)  “Tobacco products” shall not include drugs, devices, or combination products authorized for sale by the U.S. Food and Drug Administration, as those terms are defined in the Federal Food, Drug, and Cosmetic Act.

3  Effective Date.  This act shall take effect July 1, 2019.

 

LBAO

19-0807

Amended 2/28/19

 

HB 680-FN- FISCAL NOTE

AS AMENDED BY THE HOUSE (AMENDMENT #2019-0501h)

 

AN ACT relative to the definition of tobacco product for purposes of the tobacco tax and retail tobacco licensing.

 

FISCAL IMPACT:      [ X ] State              [    ] County               [    ] Local              [    ] None

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2020

FY 2021

FY 2022

FY 2023

   Appropriation

$0

$0

$0

$0

   Revenue

Potential Increase of $4,500,000

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

   Expenditures

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Funding Source:

  [ X ] General            [ X ] Education            [   ] Highway           [    ] Other

 

METHODOLOGY:

This bill modifies the definition of tobacco products under the Tobacco Tax and liquor laws for retail tobacco licenses.  The Tobacco Tax is imposed pursuant to RSA 78:7-c on tobacco products other than cigarettes at a rate of 65.03 percent of the wholesale price.

 

The Department of Revenue Administration cannot estimate the number of devices, component parts or amount of substance consumed through such devices that would be sold in New Hampshire, or the wholesale price of any such tobacco products.  The Department provided a comparison to the State of Pennsylvania, which imposes a tax on e-cigarette/vapor products at a rate of 40 percent of the wholesale price.  After adjusting for the population difference between the states and using the rate of 65.03 percent, the Department estimates a possible revenue increase of $4.5 million.

 

The New Hampshire State Liquor Commission (NHSLC)  indicates it currently licenses 1535 tobacco retailers: 158 tobacco only retailers, 1361 combination alcohol and tobacco licenses and 16 cigar bar retail tobacco licenses.  The NHSLC does not anticipate a significant increase or decrease in the number of licensees as a result of this bill.  The Division of Enforcement, Licensing and Education will need to educate new and existing licensees on the changes contained in the bill but the total cost to monitor and enforce the new provisions is indeterminable.

 

AGENCIES CONTACTED:

Department of Revenue Administration and Liquor Commission

 

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