Bill Text: NJ A4429 | 2022-2023 | Regular Session | Introduced
Bill Title: Requires licensure for manufacturers, distributors, wholesale dealers, and retail dealers of electronic smoking devices and related products.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-06-29 - Introduced, Referred to Assembly Health Committee [A4429 Detail]
Download: New_Jersey-2022-A4429-Introduced.html
Sponsored by:
Assemblyman HERB CONAWAY, JR.
District 7 (Burlington)
SYNOPSIS
Requires licensure for manufacturers, distributors, wholesale dealers, and retail dealers of electronic smoking devices and related products.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning electronic smoking devices, amending various parts of the statutory law, and supplementing Title 45 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) "Director" means the Director of the Division of Consumer Affairs in the Department of Law and Public Safety.
"Distributor" means any person who brings or causes to be brought into this State vapor products purchased directly from the manufacturers thereof and stores, sells, or otherwise disposes of the same after they shall reach this State.
"Manufacturer" means any person who manufactures or produces, or causes to be manufactured or produced, vapor products and sells, uses, stores, or distributes the same regardless of whether they are intended for sale, use, or distribution within or without this State.
"Manufacturer's representative" means any person employed by a manufacturer who, for promotional purposes, sells, stores, handles, or distributes vapor products within this State, limited exclusively to vapor products manufactured by the employing manufacturer.
"Person" means any individual, firm, corporation, copartnership, joint venture, association, receiver, trustee, guardian, executor, administrator, or any other person acting in a fiduciary capacity, or any estate, trust, or group or combination acting as a unit, the State Government and any political subdivision thereof, and the plural as well as the singular, unless the intention to give a more limited meaning is disclosed by the context.
"Place of business" means any place where vapor products are sold or where vapor products are brought or kept for the purpose of sale or consumption, including, so far as applicable, any vessel, vehicle, airplane, train, or vapor product vending machine.
"Retail dealer" means any person who is engaged in this State in the business of selling vapor products at retail. Any person placing a vapor product vending machine at, on, or in any premises shall be deemed to be a retail dealer for each such vending machine.
"Vapor product" means any non-combustible product containing nicotine that employs a heating element, power source, electronic circuit, or other electronic, chemical, or mechanical means, regardless of shape or size, to produce vapor from nicotine in a solution or any form. "Vapor product" includes, but is not limited to, any electronic cigarette, electronic cigar, electronic cigarillo, electronic hookah, electronic pipe, or similar product or device, and any vapor cartridge or other container of nicotine in a solution or other form that is intended to be used with, or in, any such device. "Vapor product" does not include any product that is approved, and that is regulated as a prescription drug delivery service, by the United States Food and Drug Administration under Chapter V of the Food, Drug, and Cosmetic Act.
"Wholesale dealer" shall include any person, other than a distributor, who:
(1) Purchases vapor products from any other person who purchases from the manufacturer and who acquires such vapor products solely for the purpose of bona fide resale to retail dealers or to other persons for the purposes of resale only; or
(2) Services retail outlets by the maintenance of an established place of business for the purchase of vapor products, including, but not limited to, the maintenance of warehousing facilities for the storage and distribution of vapor products.
2. (New section) The director shall, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), establish requirements concerning the administration and enforcement of P.L. , c. (C. ) (pending before the Legislature as this bill), including, but not limited to:
a. Establishing forms, procedures, and requirements to apply for initial or continued licensure;
b. Establishing standards and requirements to approve or deny an application for initial or continued licensure;
c. Establishing standards and requirements to suspend or revoke a license issued pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill) for a violation of P.L. , c. (C. ) (pending before the Legislature as this bill) or any other provision of law;
d. Establishing the scope of conduct authorized pursuant to each license issued under section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill); and
e. Establishing any other standards, procedures, or requirements as the director deems necessary for the administration and enforcement of P.L. , c. (C. ) (pending before the Legislature as this bill).
3. (New section) a. No person shall engage in, or conduct the business of manufacturing, purchasing, selling, consigning, or distributing vapor products in this State without having first obtained the appropriate license for that purpose under this section or P.L.1948, c.65 (C.54:40A-1 et seq.). A manufacturer, manufacturer's representative, wholesale dealer, distributor, retail dealer, or retail dealer operating a vending machine who was issued a license under P.L.1948, c.65 (C.54:40A-1 et seq.) authorizing the license holder to engage in certain conduct concerning tobacco products shall be authorized to engage in the corresponding conduct with regard to vapor products for the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill), and the license holder shall not be required to obtain a separate license issued pursuant to this section. No person, including a licensed retail dealer, shall create, produce, or modify any vapor product or nicotine solution for the purposes of sale or distribution within or without this State unless that person is a licensed manufacturer.
b. A license issued pursuant to this section shall lapse on March 31 of the period for which it is issued, and shall be continued annually, provided that the licensee has paid the required fee and met any other requirements established by the director. Each license or certificate of licensure shall be exhibited in the place of business for which it is issued and in such manner as may be prescribed by the director.
c. (1) The following annual fees shall be paid to the director for each license issued or continued pursuant to this section:
(a) $10 for a manufacturer license;
(b) $5 for a manufacturer's representative license;
(c) $250 for a wholesale dealer license;
(d) $350 for a distributor license;
(e) $50 for a retail dealer license; and
(f) $50 for retail dealer operating a vapor product vending machine license.
(2) A fee of $1 shall be paid to the director for issuance of an amended or duplicate license or certificate of licensure.
(3) Of the $50 fee paid to the director for each license issued pursuant to subparagraphs (e) and (f) of paragraph (1) of this subsection, $30 shall be credited to the special projects and development fund in the Department of Health established pursuant to section 7 of P.L.1966, c.36 (C.26:2F-7) for the purposes specified therein, and $5 shall be credited each year to the division for administrative costs associated with this section and section 2 of P.L.1995, c.320 (C.26:3A2-20.1). The director shall determine and certify to the State Treasurer on a monthly basis the amount of revenues collected by the director which are to be credited to the special projects and development fund in the Department of Health.
d. (1) In the case of a distributor who sells or intends to sell vapor products at two or more places of business, whether established or temporary, a separate license shall be required for each place of business.
(2) In the case of a wholesale dealer who sells or intends to sell vapor products at 10 or more places of business, whether established or temporary, a separate license shall be required for each place of business.
(3) In the case of a retail dealer who sells or intends to sell vapor products at two or more places of business, whether established or temporary, or whether in the same building or not, a separate license shall be required for each place of business.
(4) Each vending machine for the sale of vapor products shall be separately licensed and be deemed a separate place of business.
e. A licensee shall notify the director of a change in address for the place of business for which a license has been issued pursuant to this section. Failure to provide this notice within 30 days after the change in address shall result in revocation of the license.
f. (1) Except as provided in paragraphs (2) and (3) of this section, no license shall be assignable or transferable. In the case of death, bankruptcy, receivership, or incompetency of the licensee, or if for any other reason the business of the licensee shall devolve upon another by operation of law, the director may, in the director's discretion, extend the license for a limited time to the executor, administrator, trustee, receiver, or person upon whom the license has devolved.
(2) A purchaser or assignee of a wholesale dealer or distributor license, or any other person upon whom the business of a licensed wholesale dealer or licensed distributor shall devolve by operation of law, shall, upon application to the director, be entitled to an assignment or transfer of the wholesale dealer or distributor license for the balance of the existing license period, provided that the applicant otherwise meets the requirements for licensure and pays to the director a transfer fee of $5.
(3) The license issued for each vending machine for the sale of vapor products may be transferred from machine to machine in the same ownership.
g. The director may, upon notice and a hearing, suspend or revoke a license issued pursuant to this section for a violation of any of the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill) or any other provision of law, including, but not limited to, acting in a capacity that exceeds the licensee's scope of licensure. A disciplinary proceeding or action initiated pursuant to this subsection shall not be barred or abated by the expiration, transfer, surrender, continuance, renewal, or extension of the license that is the subject of the action or proceeding.
4. Section 1 of P.L.2000, c.87 (C.2A:170-51.4) is amended to read as follows:
1. a. No person, either directly or indirectly by an agent or employee, or by a vending machine owned by the person or located in the person's establishment, shall sell, offer for sale, distribute for commercial purpose at no cost or minimal cost or with coupons or rebate offers, give or furnish, to a person under 21 years of age:
(1) any cigarettes made of tobacco or of any other matter or substance which can be smoked, or any cigarette paper or tobacco in any form, including smokeless tobacco; or
(2) any [electronic smoking device that can be used to deliver nicotine or other substances to the person inhaling from the device, including, but not limited to, an electronic cigarette, cigar, cigarillo, or pipe, or any cartridge or other component of the device or related product] vapor product, as that term is defined in section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill).
b. The establishment of all of the following shall constitute a defense to any prosecution brought pursuant to subsection a. of this section:
(1) that the purchaser of the tobacco product or [electronic smoking device] vapor product or the recipient of the promotional sample falsely represented, by producing either a driver's license or non-driver identification card issued by the New Jersey Motor Vehicle Commission, a similar card issued pursuant to the laws of another state or the federal government of Canada, or a photographic identification card issued by a county clerk, that the purchaser or recipient was of legal age to make the purchase or receive the sample;
(2) that the appearance of the purchaser of the tobacco product or [electronic smoking device] vapor product or the recipient of the promotional sample was such that an ordinary prudent person would believe the purchaser or recipient to be of legal age to make the purchase or receive the sample; and
(3) that the sale or distribution of the tobacco product or [electronic smoking device] vapor product was made in good faith, relying upon the production of the identification set forth in paragraph (1) of this subsection, the appearance of the purchaser or recipient, and in the reasonable belief that the purchaser or recipient was of legal age to make the purchase or receive the sample.
c. A person who violates the provisions of subsection a. of this section, including an employee of a retail dealer licensee under P.L.1948, c.65 (C.54:40A-1 et seq.) or P.L. , c. (C. ) (pending before the Legislature as this bill) who actually sells or otherwise provides a tobacco product or vapor product to a person under 21 years of age, shall be liable to a civil penalty of not less than $250 for the first violation, not less than $500 for the second violation, and $1,000 for the third and each subsequent violation. The civil penalty shall be collected pursuant to the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.), in a summary proceeding before the municipal court having jurisdiction. An official authorized by statute or ordinance to enforce the State or local health codes or a law enforcement officer having enforcement authority in that municipality may issue a summons for a violation of the provisions of subsection a. of this section, and may serve and execute all process with respect to the enforcement of this section consistent with the Rules of Court. A penalty recovered under the provisions of this subsection shall be recovered by and in the name of the State by the local health agency. The penalty shall be paid into the treasury of the municipality in which the violation occurred for the general uses of the municipality.
d. In addition to the provisions of subsection c. of this section, upon the recommendation of the municipality, following a hearing by the municipality, the Division of Taxation in the Department of the Treasury or the Division of Consumer Affairs in the Department of Law and Public Safety, as appropriate, may suspend or, after a second or subsequent violation of the provisions of subsection a. of this section, revoke [the] a license issued under section 202 of P.L.1948, c.65 (C.54:40A-4) or section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill) of a retail dealer. The licensee shall be subject to administrative charges, based on a schedule issued by the Director of the Division of Taxation or the Director of the Division of Consumer Affairs, as appropriate, which may provide for a monetary penalty in lieu of a suspension.
e. A penalty imposed pursuant to this section shall be in addition to any penalty that may be imposed pursuant to section 3 of P.L.1999, c.90 (C.2C:33-13.1).
(cf: P.L.2017, c.118, s.2)
5. Section 1 of P.L.2015, c.294 (C.2A:170-51.9) is amended to read as follows:
1. a. No person, either directly or indirectly by an agent or employee, or by a vending machine owned by the person or located in the person's establishment, shall sell, offer for sale, give, furnish, or distribute for commercial purpose at no cost or minimal cost or with coupons or rebate offers, to any other person, liquid nicotine in a liquid nicotine container, which is intended for use in a vapor product, unless the liquid nicotine is sold, offered for sale, given, furnished, or distributed for commercial purpose in a child-resistant container.
As used in this section:
(1) "Child-resistant container" means a container which is designed and constructed in a manner that meets the federal effectiveness specifications set forth in 16 C.F.R. 1700.15 and the special packaging testing requirements set forth in 16 CFR 1700.20, so that it is significantly difficult for a child five years of age or younger to open the package or otherwise risk exposure to liquid nicotine.
(2) "Liquid nicotine" means any solution containing nicotine which is designed or sold for use with an electronic smoking device.
(3) "Liquid nicotine container" means a bottle or other container of a liquid, wax, gel, or other substance containing nicotine, where the liquid or other contained substance is sold, marketed, or intended for use in a vapor product. "Liquid nicotine container" does not include a liquid or other substance containing nicotine in a cartridge that is sold, marketed, or intended for use in a vapor product, provided that such cartridge is prefilled and sealed by the manufacturer, with the seal remaining permanently intact through retail purchase and use; is only disposable and is not refillable; and is not intended to be opened by the consumer.
(4) "Vapor product" means any non-combustible product containing nicotine that employs a heating element, power source, electronic circuit, or other electronic, chemical, or mechanical means, regardless of shape or size, to produce vapor from nicotine in a solution or any form. "Vapor product" includes, but is not limited to, any electronic cigarette, electronic cigar, electronic cigarillo, electronic pipe, or similar product or device, and any vapor cartridge or other container of nicotine in a solution or other form that is intended to be used with, or in, any such device. "Vapor product" does not include any product that is approved, and that is regulated as a prescription drug delivery service, by the United States Food and Drug Administration under Chapter V of the Food, Drug, and Cosmetic Act.
b. A person who violates the provisions of subsection a. of this section shall be liable to a civil penalty of not less than $250 for the first violation, not less than $500 for the second violation, and $1,000 for the third and each subsequent violation. The civil penalty shall be collected pursuant to the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.), in a summary proceeding before the municipal court having jurisdiction. An official authorized by statute or ordinance to enforce the State or local health codes, or a law enforcement officer having enforcement authority in that municipality, may issue a summons for a violation of the provisions of subsection a. of this section, and may serve and execute all process with respect to the enforcement of this section consistent with the Rules of Court. A penalty recovered under the provisions of this subsection shall be recovered by and in the name of the State by the local health agency. The penalty shall be paid into the treasury of the municipality in which the violation occurred for the general uses of the municipality.
c. In addition to the provisions of subsection b. of this section, upon the recommendation of the municipality, following a hearing by the municipality, the Division of Taxation in the Department of the Treasury or the Division of [Taxation] Consumer Affairs in the Department of [the Treasury] Law and Public Safety, as appropriate, may suspend or, after a second or subsequent violation of the provisions of subsection a. of this section, revoke the license of a retail dealer issued under section 202 of P.L.1948, c.65 (C.54:40A-4) or section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill). The licensee shall be subject to administrative charges, based on a schedule issued by the Director of the Division of Taxation or the Director of the Division of [Taxation] Consumer Affairs, as appropriate, which may provide for a monetary penalty in lieu of a suspension.
(cf: P.L.2015, c.294, s.1)
6. Section 3 of P.L.1999, c.90 (C.2C:33-13.1) is amended to read as follows:
2C:33-13.1 Providing certain items to a person under 21 years of age, petty disorderly persons offense.
3. a. A person who sells or gives to a person under 21 years of age any cigarettes made of tobacco or of any other matter or substance which can be smoked, or any cigarette paper or tobacco in any form, including smokeless tobacco, or any [electronic smoking device that can be used to deliver nicotine or other substances to the person inhaling from the device, including, but not limited to, an electronic cigarette, cigar, cigarillo, or pipe, or any cartridge or other component of the device or related product] vapor product, as that term is defined in section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill), or any cannabis item as defined in section 3 of P.L.2021, c.16 (C.24:6I-33), including an employee of a retail dealer licensee under P.L.1948, c.65 (C.54:40A-1 et seq.) or P.L. , c. (C. ) (pending before the Legislature as this bill) or an employee of a licensed cannabis establishment, cannabis distributor, or cannabis delivery service under P.L.2021, c.16 (C.24:6I-31 et al.), who actually sells or otherwise provides a tobacco product, [electronic smoking device] vapor product, or cannabis item to a person under 21 years of age, shall be punished by a fine as provided for a petty disorderly persons offense. A person who has been previously punished under this section and who commits another offense under it may be punishable by a fine of twice that provided for a petty disorderly persons offense.
b. The establishment of all of the following shall constitute a defense to any prosecution brought pursuant to subsection a. of this section:
(1) that the purchaser or recipient of the tobacco product, [electronic smoking device] vapor product, or cannabis item falsely represented, by producing a driver's license or non-driver identification card issued by the New Jersey Motor Vehicle Commission, a similar card issued pursuant to the laws of another state or the federal government of Canada, a photographic identification card issued by a county clerk, or other form of government-issued identification described in subparagraph (a) of paragraph (6) of subsection a. of section 18 of P.L.2021, c.16 (C.24:6I-35), that the purchaser or recipient was of legal age to purchase or receive the tobacco product, [electronic smoking device] vapor product, or cannabis item;
(2) that the appearance of the purchaser or recipient of the tobacco product, [electronic smoking device] vapor product, or cannabis item was such that an ordinary prudent person would believe the purchaser or recipient to be of legal age to purchase or receive the tobacco product, [electronic smoking device] vapor product, or cannabis item; and
(3) that the sale or distribution of the tobacco product, [electronic smoking device] vapor product, or cannabis item was made in good faith, relying upon the production of the identification set forth in paragraph (1) of this subsection, the appearance of the purchaser or recipient, and in the reasonable belief that the purchaser or recipient was of legal age to purchase or receive the tobacco product, [electronic smoking device] vapor product, or cannabis item.
c. A penalty imposed pursuant to this section shall be in addition to any penalty that may be imposed pursuant to section 1 of P.L.2000, c.87 (C.2A:170-51.4) concerning tobacco products or [electronic smoking devices] vapor products, or section 64 of P.L.2021, c.16 (C.2C:35-10d) or section 6 of P.L.2021, c.25 (C.2A:170-51.11) concerning cannabis items.
(cf: P.L.2021, c.25, s.10)
7. Section 7 of P.L.1966, c.36 (C.26:2F-7) is amended to read as follows:
7. [(a)] a. There is hereby established a special projects and development fund which shall consist of all funds appropriated or otherwise made available for the purposes set forth in this section. The commissioner, with the approval of the Public Health Council, may make grants from the special projects and development fund to local health agencies, to hospitals, and to voluntary health agencies to provide State health assistance for new health services and for special health projects in order to stimulate continued development of health services and to assure the citizens of New Jersey the benefits of the most advanced health protection techniques.
[(b)] b. Except as provided in subsection [(c)] c. of this section, grants from the special projects and development fund for specific purposes shall be made on an annual basis for a period not in excess of 5 years and such grants shall be in diminishing amounts during this period. The commissioner shall determine the conditions applicable to each such grant including the extent of local financial participation to be required. Grants from the special projects and development fund to voluntary health agencies shall not exceed 40% of said fund.
[(c)] c. (1) Grants from the special projects and development fund shall be made on an annual basis to local health agencies for local enforcement efforts concerning the sale and commercial distribution of tobacco products and vapor products to persons under the age of 21 years, in an amount determined by the commissioner. The grants shall be distributed based on the number of cigarette retail dealer, vapor product retail dealer, and cigarette and vapor product vending machine licenses issued within a local health agency's jurisdictional authority in order to ensure Statewide coverage and Statewide consistency of enforcement efforts; except that the commissioner may designate up to 5% of available funds, annually, for incentive grants to local health agencies to enhance enforcement efforts.
Each grant recipient shall report quarterly to the commissioner on the number of compliance check inspections it has completed and the results of those compliance checks. The commissioner shall determine any other conditions applicable to the grants.
(2) Beginning in 1999, notwithstanding the provisions of paragraph (1) of this subsection to the contrary, the commissioner may make grants from the special projects and development fund to public and private local agencies to reduce teenage use of addictive substances.
(cf: P.L.2017, c.118, s.4)
8. Section 2 of P.L.1995, c.320 (C.26:3A2-20.1) is amended to read as follows:
2. a. The Commissioner of Health is authorized to enforce the provisions of section 1 of P.L.2000, c.87 (C.2A:170-51.4) with respect to the prohibition on the sale and commercial distribution of tobacco products and vapor products to persons under 21 years of age. The commissioner may delegate the enforcement authority provided in this section to local health agencies, subject to the availability of sufficient funding. The commissioner shall report quarterly to the Legislature on the enforcement program's progress, use of grants awarded pursuant to section 7 of P.L.1966, c.36 (C.26:2F-7), results of enforcement efforts and other matters the commissioner deems appropriate.
b. The Department of the Treasury shall provide the commissioner with information about retail tobacco dealer licensees and retail vapor product dealer licensees necessary to carry out the purpose of this section.
(cf: P.L.2017, c.118, s.5)
9. This act shall take effect the first day of the seventh month next following enactment, except that the Director of the Division of Consumer Affairs in the Department of Law and Public Safety may take any advance administrative action as may be necessary to implement the provisions of this act.
STATEMENT
This bill establishes certain requirements for licensure for manufacturers, wholesale dealers, distributors, and retail dealers of vapor products, which are defined to mean electronic smoking devices and related products, including the liquid nicotine cartridges used in the devices.
Specifically, the bill will require annual licensure for each person engaging in the business of manufacturing, purchasing, selling, consigning, or distributing vapor products. Licenses will lapse on March 31 of the period for which they are issued and will be continued annually, provided the licensee pays the licensure fees and meets the requirements for continued licensure. The Director of the Division of Consumer Affairs in the Department of Law and Public Safety will be charged with administering and enforcing the provisions of the bill. The bill clarifies that an individual holding a tobacco license issued under the "Cigarette Tax Act," P.L.1948, c.65 (C.54:40A-1 et seq.), will be deemed to hold the corresponding licensure for the purposes of the bill, authorizing the individual to engage in the same conduct permitted under the license for both tobacco and vapor products.
The annual vapor product licensure fees established under the bill are as follows: $10 for a manufacturer license; $5 for a manufacturer representative license; $250 for a wholesale dealer license; $350 for a distributor license; $50 for a retail dealer license; and $50 for a retail dealer operating a vapor product vending machine license. Additionally, a fee of $1 will apply for issuance of an amended or duplicate vapor product license or certificate of licensure.
Of the $50 fee paid to the director for issuance of each vapor product retail dealer license and each vending machine license, $30 is to be credited to the special projects and development fund in the Department of Health established pursuant to section 7 of P.L.1966, c.36 (C.26:2F-7), and $5 is to be credited each year to the division for administrative costs. The director is to determine and certify to the State Treasurer, on a monthly basis, the amount of revenues which are to be credited to the special projects and development fund in the Department of Health.
In the case of a vapor product distributor who sells or intends to sell vapor products at two or more places of business, whether established or temporary, a separate license will be required for each place of business. In the case of a vapor product wholesale dealer who sells or intends to sell vapor products at 10 or more places of business, whether established or temporary, a separate license will be required for each place of business. In the case of a vapor product retail dealer who sells or intends to sell vapor products at two or more places of business, whether established or temporary, or whether in the same building or not, a separate license will be required for each place of business. A separate vapor product license will be required for each vending machine operated by a vapor retail dealer. Each vapor product license or certificate of licensure issued under the bill is to be exhibited in the place of business for which it is issued and in such manner as may be prescribed by the director. Vapor product licensees will be required to notify the director of a change in address within 30 days of the change, or the license will be subject to revocation.
The bill specifies that no person, including a licensed vapor product retail dealer, may create, produce, or modify any vapor product or nicotine solution for the purposes of sale or distribution within or without the State unless that person is a licensed vapor manufacturer.
Vapor product licenses issued under the bill may not be transferred or assigned, except that: (1) a vapor product vending machine license may be transferred to another machine owned by the retail dealer; and (2) a vapor product wholesale dealer or distributor license may be transferred or assigned, provided the assignee or transferee otherwise qualifies for licensure and pays a $5 transfer fee. In the case of death, bankruptcy, receivership, or incompetency of a licensee, or if for any other reason the business of the vapor product licensee devolves upon another by operation of law, the director will be permitted to extend the license for a limited time to the executor, administrator, trustee, receiver, or person upon whom the license devolved.
The director may, upon notice and a hearing, suspend or revoke a vapor product license issued under the bill for a violation of the bill or any other provision of law, including, but not limited to, acting in a capacity that exceeds the licensee's scope of licensure. A disciplinary proceeding or action initiated under the bill will not be barred or abated by the expiration, transfer, surrender, continuance, renewal, or extension of the license that is the subject of the action or proceeding.
The bill additionally revises various statutory provisions to include updated references to the licensure provisions established under the bill and to harmonize the terminology used throughout the statutes. The bill does not otherwise revise the tobacco product licensure provisions under the "Cigarette Tax Act."
