Arizona 57th Legislature - Second Regular Session Status: In Committee 1 R cosponsors

HB 2765 — international trade commission

Last action — DPA/SE

  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed House
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 57th Legislature - Second Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there are no live odds of enactment. It would have to be reintroduced in the current session to move again.

Bill Text

What changed in the latest version

514 added · 79 removed

Plain-language change summary

The amendments to House Bill 2765 removed the entire section related to establishing an International Trade Commission in Arizona. Instead, the focus has shifted to updating the definitions related to tobacco products, specifically the term "Cavendish" and other terminology associated with taxation. This matters because these changes refine how certain tobacco products are categorized and taxed, which can impact regulation and enforcement in the state.

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REFERENCE TITLE:
Fifty-seventh Legislature International Trade Second Regular Session H.B.
international trade commission State of Arizona House of Representatives Fifty-seventh Legislature Second Regular Session HB 2765 Introduced by Representative Rivero AN ACT AMENDING TITLE 41, CHAPTER 8, ARIZONA REVISED STATUTES, BY ADDING ARTICLE 6;
2765 PROPOSED HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B.
AMENDING TITLE 41, CHAPTER 27, ARTICLE 2, ARIZONA REVISED STATUTES, BY ADDING SECTION 41-3034.01;
2765 (Reference to printed bill) Strike everything after the enacting clause and insert:
RELATING TO AGENCIES OF THE LEGISLATIVE DEPARTMENT.
"Section 1.
(TEXT OF BILL BEGINS ON NEXT PAGE) - i - HB 2765 Be it enacted by the Legislature of the State of Arizona:
Section 42-3001, Arizona Revised Statutes, is amended to read:
Section 1.
42-3001.
Title 41, chapter 8, Arizona Revised Statutes, is amended by adding article 6, to read:
Definitions In this chapter, unless the context otherwise requires:
ARTICLE 6.
INTERNATIONAL TRADE COMMISSION 41-1391.
International trade commission;
membership;
duties;
annual report A.
THE INTERNATIONAL TRADE COMMISSION IS ESTABLISHED CONSISTING OF THE FOLLOWING:
THE CHAIRPERSON OF THE HOUSE OF REPRESENTATIVES INTERNATIONAL TRADE COMMITTEE, OR ITS SUCCESSOR COMMITTEE, OR THE CHAIRPERSON'S DESIGNEE, WHO SHALL SERVE AS THE CHAIRPERSON.
"Affix" and "affixed" include imprinting tax meter stamps on packages and individual containers as authorized by the department.
THE CHAIRPERSON OF THE HOUSE OF REPRESENTATIVES COMMERCE COMMITTEE, OR ITS SUCCESSOR COMMITTEE, OR THE CHAIRPERSON'S DESIGNEE.
"Brand family" has the same meaning prescribed in section 44-7111.
THE CHAIRPERSON OF THE HOUSE OF REPRESENTATIVES GOVERNMENT COMMITTEE, OR ITS SUCCESSOR COMMITTEE, OR THE CHAIRPERSON'S DESIGNEE.
"Cavendish" means a tobacco product that is smoked from a pipe and that meets one of the following criteria:
(a) Is described as cavendish, as containing cavendish or as a cavendish blend on its packaging, labeling or promotional materials.
(b) Appears to have been processed or manufactured with an amount of flavorings and humectants that exceeds twenty percent of the weight of the tobacco contained in the product.
(c) Appears to be blended with or contain a tobacco product described in subdivision (b) of this paragraph.
THE CHAIRPERSON OF THE HOUSE OF REPRESENTATIVES APPROPRIATIONS COMMITTEE, OR ITS SUCCESSOR COMMITTEE, OR THE CHAIRPERSON'S DESIGNEE.
"Cider" means vinous liquor that is made from the normal alcoholic fermentation of the juice of sound, ripe apples, pears or other pome fruit, including flavored, sparkling and carbonated cider and cider made from condensed apple, pear or other pome fruit must, and that contains more than one-half of one percent of alcohol by volume but not more than seven percent of alcohol by volume.
TWO MEMBERS OF THE HOUSE OF REPRESENTATIVES WHO ARE APPOINTED BY THE SPEAKER OF THE HOUSE OF REPRESENTATIVES.
"Cigar" means any roll of tobacco wrapped in leaf tobacco or in any substance containing tobacco other than any roll of tobacco that is a cigarette, as defined in paragraph 6, subdivision (b) of this section.
TWO MEMBERS WHO REPRESENT THE BUSINESS COMMUNITY IN THIS STATE AND WHO ARE APPOINTED BY THE SPEAKER OF THE HOUSE OF REPRESENTATIVES.
"Cigarette" means either of the following:
(a) Any roll of tobacco wrapped in paper or any substance not containing tobacco.
(b) Any roll of tobacco wrapped in any substance containing tobacco that, because of its appearance, the type of tobacco used in the filler or its packaging and labeling, is likely to be offered to or purchased by a consumer as a cigarette described in subdivision (a) of this paragraph.
This subdivision shall be interpreted consistently with the classification guidelines established by the federal alcohol and tobacco tax and trade bureau.
TWO MEMBERS WHO REPRESENT THE BUSINESS COMMUNITY IN THIS STATE AND WHO ARE APPOINTED BY THE CHAIRPERSON OF THE INTERNATIONAL TRADE COMMISSION.
"Consumer" means a person in this state that comes into possession of any luxury subject to the tax imposed by this chapter and House Amendments to H.B.
2765 that, on coming into possession of the luxury, is not a distributor intending to sell or distribute the luxury, a retailer or a wholesaler.
8.
"Craft distiller" means a distiller in the United States or in a territory or possession of the United States that holds a license pursuant to section 4-205.10.
9.
"Distributor" means any person that manufactures, produces, ships, transports or imports into this state or in any manner acquires or possesses for the purpose of making the first sale of the following:
(a) Cigarettes without Arizona tax stamps affixed as required by this article.
(b) Roll-your-own tobacco or other tobacco products on which the taxes have not been paid as required by this chapter.
(c) VAPOR PRODUCTS.
(d) OTHER PRODUCTS THAT CONTAIN NICOTINE OR A NICOTINE ANALOG, UNLESS THE PRODUCT IS REGULATED BY THE UNITED STATES FOOD AND DRUG ADMINISTRATION UNDER CHAPTER V OF THE FEDERAL FOOD, DRUG, AND COSMETIC ACT.
10.
"Farm winery" has the same meaning prescribed in section 4-101.
11.
"First sale" means the initial sale or distribution in intrastate commerce or the initial use or consumption of cigarettes, roll-your-own tobacco or other tobacco products.
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12.
"Luxury" means any article, object or device on which a tax is imposed under this chapter.
13.
"Malt liquor" means any liquid that contains more than one-half of one percent alcohol by volume and that is made by the process of fermentation and not distillation of hops or grains, but not including:
(a) Liquids made by the process of distillation of such substances.
(b) Medicines that are unsuitable for beverage purposes.
14.
"Master settlement agreement" has the same meaning prescribed in section 44-7101.
15.
"Microbrewery" has the same meaning prescribed in section 4-101.
16.
"NICOTINE ANALOG" MEANS A SUBSTANCE THAT HAS A CHEMICAL STRUCTURE THAT IS SUBSTANTIALLY SIMILAR TO THE CHEMICAL STRUCTURE OF NICOTINE OR THAT HAS, PURPORTS TO HAVE OR IS REPRESENTED TO HAVE AN EFFECT ON THE CENTRAL NERVOUS SYSTEM THAT IS SIMILAR TO OR GREATER THAN THE EFFECT OF NICOTINE ON THE CENTRAL NERVOUS SYSTEM.
FACTORS RELEVANT TO DETERMINING WHETHER A SUBSTANCE IS A NICOTINE ANALOG INCLUDE THE MARKETING, ADVERTISING AND LABELING OF THE SUBSTANCE AND WHETHER THE SUBSTANCE HAS BEEN MANUFACTURED, FORMULATED, SOLD, DISTRIBUTED OR MARKETED WITH THE INTENT TO AVOID THE PROVISIONS OF THIS CHAPTER OR ANY OTHER SECTION OF LAW APPLICABLE TO NICOTINE ANALOGS.
16.
17.
"Nonparticipating manufacturer" has the same meaning prescribed in section 44-7111.
17.
18.
"Other tobacco products" means tobacco products other than cigarettes and roll-your-own tobacco.
18.
19.
"Participating manufacturer" has the same meaning prescribed in section 44-7111.
-2- House Amendments to H.B.
2765 19.
20 "Person" means any individual, firm, partnership, joint venture, association, corporation, municipal corporation, estate, trust, club, society or other group or combination acting as a unit, and the plural as well as the singular number.
20.
21.
"Place of business":
(a) Means a building, facility site or location where an order is received or where tobacco products are sold, distributed or transferred.
Place of business (b) Does not include a vehicle.
21.
22.
"Retailer" means any person that comes into possession of any luxury subject to the taxes imposed by this chapter for the purpose of selling it for consumption and not for resale.
22.
23.
"Roll-your-own tobacco" means any tobacco that, because of its appearance, type, packaging or labeling, is suitable for use and likely to be offered to or purchased by consumers as tobacco for making cigarettes.
This paragraph shall be interpreted consistently with the term as used in section 44-7101.
This paragraph shall be interpreted consistently with the classification guidelines established by the federal alcohol and tobacco tax and trade bureau.
23.
24.
"Smoking tobacco":
(a) Means any tobacco that, because of its appearance, type, packaging, labeling or promotion, is suitable for use and likely to be offered to or purchased by consumers as tobacco for making cigarettes or otherwise consumed by burning.
Smoking tobacco (b) Includes pipe tobacco and roll-your-own tobacco.
24.
25.
"Spirituous liquor":
(a) Means any liquid that contains more than one-half of one percent alcohol by volume, that is produced by distillation of any fermented substance and that is used or prepared for use as a beverage.
Spirituous liquor (b) Does not include medicines that are unsuitable for beverage purposes.
25.
26.
"Tobacco product manufacturer" has the same meaning prescribed in section 44-7101.
26.
27.
"Tobacco products" means all luxuries included in section 42-3052, paragraphs 5 through 9.
28.
"VAPOR PRODUCT":
(a) MEANS A NONCOMBUSTIBLE PRODUCT THAT CONTAINS NICOTINE OR A NICOTINE ANALOG AND THAT EMPLOYS A MECHANICAL HEATING ELEMENT, BATTERY OR CIRCUIT, REGARDLESS OF SHAPE OR SIZE, THAT CAN BE USED TO HEAT A SOLUTION CONTAINING NICOTINE OR A NICOTINE ANALOG.
(b) DOES NOT INCLUDE ANY PRODUCT THAT IS REGULATED BY THE UNITED STATES FOOD AND DRUG ADMINISTRATION UNDER CHAPTER V OF THE FEDERAL FOOD, DRUG, AND COSMETIC ACT.
29.
"VAPOR PRODUCT MANUFACTURER" MEANS A PERSON OR ENTITY THAT MANUFACTURES, FABRICATES, ASSEMBLES, PROCESSES OR LABELS A FINISHED VAPOR PRODUCT FOR SALE IN THIS STATE.
-3- House Amendments to H.B.
2765 27.
30.
"Vehicle" means a device in, on or by which a person or property is or may be transported or drawn on the roads of this state regardless of the means by which it is propelled or whether it runs on a track.
28.
31.
"Vinous liquor":
(a) Means any liquid that contains more than one-half of one percent alcohol by volume and that is made by the process of fermentation of grapes, berries, fruits, vegetables or other substances.
But (b) Does not include:
(a) (i) Liquids in which hops or grains are used in the process of fermentation.
(b) (ii) Liquids made by the process of distillation of hops or grains.
(c) (iii) Medicines that are unsuitable for beverage purposes.
29.
32.
"Wholesaler" means a person that sells any spirituous, vinous or malt liquor taxed under this chapter to retail dealers or for the purposes of resale only.
Sec.
2.
Heading change The article heading of title 42, chapter 3, article 10, Arizona Revised Statutes, is changed from "DISTRIBUTORS AND RETAILERS OF TOBACCO PRODUCTS" to "DISTRIBUTORS, RETAILERS AND MANUFACTURERS OF TOBACCO PRODUCTS AND VAPOR PRODUCTS".
Sec.
3.
Section 42-3404, Arizona Revised Statutes, is amended to read:
42-3404.
Exemptions and exclusions of certain tobacco products from tobacco taxes A.
The taxes imposed by this chapter do not apply to:
1.
Tobacco products that are sold to the United States army, air force, navy, marine corps or coast guard exchanges and commissaries and navy or coast guard ships' stores.
2.
Tobacco products that are sold to the United States department of veterans affairs.
3.
Tobacco products that are non-tax-paid under subtitle E, chapter 52 of the internal revenue code and that are under internal revenue bond or customs control.
4.
Tobacco products that are sold or transferred to a law enforcement agency for use in a criminal investigation if the sale or transfer is authorized by the department.
A law enforcement agency authorized by the department to receive or purchase tobacco products is not required to:
(a) Be licensed as a distributor.
(b) Collect or remit the tax imposed by this chapter with respect to authorized distributions.
5.
Tobacco products that are sold by a distributor licensed under section 42-3401 to a common carrier engaged in foreign passenger service or to a retailer that sells tobacco products on the facilities of the carrier that are dedicated to foreign passenger service.
-4- House Amendments to H.B.
2765 6.
Federally tax free tobacco products that are sold or given for delivery directly from the manufacturer under internal revenue bond to a veterans' home of this state or a hospital or domiciliary facility of the United States department of veterans affairs for gratuitous issue to veterans receiving hospitalization or domiciliary care.
The taxes are not imposed with respect to the use or consumption of the tobacco products by the institution, veteran patients or domiciliaries.
7.
Tobacco products that are sold by a manufacturer to a distributor licensed under section 42-3401.
8.
Tobacco products that are manufactured outside the United States and that are sold by an importer to a distributor licensed under section 42-3401.
9.
VAPOR PRODUCTS.
ALL APPOINTMENTS SHALL BE MADE NOT LATER THAN DECEMBER 31, 2026 AND SHALL BE FOR A TERM OF FOUR YEARS.
Subsection A, paragraphs 1 and 2 of this section do not apply after the first day of the first calendar month beginning more than sixty days after existing federal law is amended to permit state taxation of cigarettes sold by or through federal military installations.
ALL VACANCIES SHALL BE FILLED IN THE SAME MANNER AS THE INITIAL APPOINTMENT.
APPOINTED MEMBERS OF THE COMMISSION SHALL RECEIVE COMPENSATION AS DETERMINED PURSUANT TO SECTION 38-611 FOR EACH DAY ACTUALLY SPENT IN THE PERFORMANCE OF OFFICIAL DUTIES AND ARE ELIGIBLE FOR REIMBURSEMENT OF EXPENSES PURSUANT TO TITLE 38, CHAPTER 4, ARTICLE 2.
THE COMMISSION SHALL:
Sales of tobacco products by a licensed distributor to an instrumentality of the United States government must be supported by a separate sales invoice and a properly completed federal exemption certificate.
Each sales invoice must be numbered, be dated and show the name of the seller, the name of the purchaser and the destination.
D.
This section does not affect the imposition of transaction privilege and use taxes pursuant to chapter 5 of this title to any transactions described in subsection A of this section if the transaction is otherwise subject to transaction privilege tax or use tax.
E.
The exemptions and exclusions provided in subsection A of this section do not affect the taxability under this chapter of tobacco products that are sold, given or transferred to a person in this state subsequent to the transactions described in subsection A of this section.
Sec.
4.
Section 42-3405, Arizona Revised Statutes, is amended to read:
42-3405.
Tobacco and vapor product manufacturers, importers, distributors and retailers;
recordkeeping and invoicing requirements;
retention period A.
Except for retail transactions with consumers, each manufacturer, importer and distributor of tobacco products AND EACH VAPOR PRODUCT MANUFACTURER, IMPORTER AND DISTRIBUTOR shall maintain copies of invoices or equivalent documentation for each facility and for each transaction that involves the sale, purchase, transfer, consignment or receipt of tobacco products AND VAPOR PRODUCTS within this state.
The invoices or equivalent documentation for each transaction shall be in the form and manner prescribed by the department and shall indicate the name and address of the other party and the quantity by brand style of the tobacco products OR VAPOR PRODUCTS involved in the transaction.
B.
A distributor of tobacco products OR VAPOR PRODUCTS shall issue an invoice or equivalent documentation for each transaction that involves the sale, purchase or consignment of tobacco products OR VAPOR PRODUCTS to -5- House Amendments to H.B.
2765 a retailer.
The invoice or equivalent documentation must include the license number of the distributor, which the retailer may use to ascertain whether the license is current and valid.
C.
Any retailer of tobacco products OR VAPOR PRODUCTS shall retain all invoices or equivalent documentation received under subsection B of this section.
D.
Records required under this section shall be preserved on the premises described in the relevant license in a manner as to ensure accessibility for inspection at reasonable hours by authorized personnel of the department.
With the department's permission, persons with multiple places of business may retain centralized records, but shall transmit duplicates of the invoices or the equivalent documentation to each place of business within three business days after a request by the department.
E.
The records required by this section shall be retained for a period of four years after the date of the transaction.
F.
On request, the department and the United States secretary of the treasury or secretary's designee shall have access to records required under this section and reports required under section 42-3462.
The department at its sole discretion may share the records and reports required by this chapter with other law enforcement officials of federal and state governments under conditions that assume the confidentiality of taxpayer information contained in the records and reports.
Sec.
5.
Title 42, chapter 3, article 10, Arizona Revised Statutes, is amended by adding sections 42-3407, 42-3408 and 42-3409, to read:
42-3407.
Vapor product manufacturer license;
rules;
fees;
certification;
application;
bond;
product list;
civil penalties;
violation;
classification A.
FROM AND AFTER DECEMBER 31, 2026, A VAPOR PRODUCT MANUFACTURER MAY NOT OFFER FOR SALE OR SELL VAPOR PRODUCTS, WHETHER DIRECTLY OR THROUGH AN IMPORTER, DISTRIBUTOR OR RETAILER OR A SIMILAR INTERMEDIARY OR INTERMEDIARIES, WITHOUT A VALID VAPOR PRODUCT MANUFACTURER LICENSE.
B.
THE DEPARTMENT SHALL ADOPT RULES TO ADMINISTER THIS SECTION AND ESTABLISH FEES FOR AN INITIAL VAPOR PRODUCT MANUFACTURER LICENSE AND THE RENEWAL OF THE LICENSE.
THE DEPARTMENT SHALL DEPOSIT, PURSUANT TO SECTIONS 35-146 AND 35-147, THE FEES COLLECTED PURSUANT TO THIS SECTION IN THE VAPOR PRODUCT MANUFACTURER LICENSING FUND ESTABLISHED BY SECTION 42-3409.
C.
A VAPOR PRODUCT MANUFACTURER LICENSE IS VALID FOR ONE YEAR, UNLESS THE DEPARTMENT OR THE DEPARTMENT'S DESIGNEE SUSPENDS OR REVOKES THE LICENSE, AND MUST BE RENEWED ANNUALLY.
A VAPOR PRODUCT MANUFACTURER LICENSE MAY NOT BE RENEWED IF THE VAPOR PRODUCT MANUFACTURER IS LIABLE FOR ANY OUTSTANDING CIVIL PENALTIES PURSUANT TO THIS SECTION.
THE DEPARTMENT MAY RECEIVE AND REVIEW VAPOR PRODUCT MANUFACTURER LICENSE APPLICATIONS ELECTRONICALLY.
D.
EACH APPLICANT FOR A VAPOR PRODUCT MANUFACTURER LICENSE SHALL FILE A CERTIFICATION AS PROVIDED IN THIS SECTION AS A CONDITION PRECEDENT TO OBTAIN A LICENSE.
WITHOUT FILING THE CERTIFICATION, THE VAPOR PRODUCT -6- House Amendments to H.B.
2765 MANUFACTURER MAY NOT BE ISSUED A VAPOR PRODUCT MANUFACTURER LICENSE AND MAY NOT SELL ITS VAPOR PRODUCTS IN THIS STATE OR TO A CONSUMER IN THIS STATE, WHETHER DIRECTLY OR THROUGH A DISTRIBUTOR OR RETAILER OR A SIMILAR INTERMEDIARY OR INTERMEDIARIES.
E.
A CERTIFICATION FILED UNDER THIS SECTION SHALL BE MADE UNDER PENALTY OF PERJURY ON A FORM AND IN A MANNER PRESCRIBED BY THE DEPARTMENT.
THE CERTIFICATION MUST INCLUDE THE FOLLOWING:
ANNUALLY ELECT A VICE CHAIRPERSON FROM AMONG ITS MEMBERS.
THE NAME AND ADDRESS OF THE APPLICANT OR, IF THE APPLICANT IS A FIRM, PARTNERSHIP, LIMITED LIABILITY COMPANY OR ASSOCIATION, THE NAME AND ADDRESS OF EACH OF ITS MEMBERS OR, IF THE APPLICANT IS A CORPORATION, THE NAME AND ADDRESS OF EACH OF ITS OFFICERS AND THE ADDRESS OF ITS PRINCIPAL PLACE OF BUSINESS.
MEET AT THE CALL OF THE CHAIRPERSON.
THE ADDRESS OF THE PRINCIPAL PLACE OF BUSINESS OF THE APPLICANT THAT IS SEEKING A LICENSE.
ADVANCE TRADE AND INVESTMENT BETWEEN THIS STATE AND ANY COUNTRY.
EITHER OF THE FOLLOWING:
(a) A COPY OF THE PREVENT ALL CIGARETTE TRAFFICKING ACT OF 2009 REGISTRATION FORM, OR AN EQUIVALENT SUCCESSOR FORM, DESIGNATED BY THE BUREAU OF ALCOHOL, TOBACCO, FIREARMS AND EXPLOSIVES OF THE UNITED STATES DEPARTMENT OF JUSTICE AS SUBMITTED BY THE APPLICANT TO THE BUREAU OF ALCOHOL, TOBACCO, FIREARMS AND EXPLOSIVES AND AN ATTESTATION THAT THE APPLICANT IS IN COMPLIANCE WITH, AND WILL CONTINUE TO COMPLY WITH, ALL APPLICABLE REQUIREMENTS OF 15 UNITED STATES CODE SECTIONS 375 AND 376.
(b) A STATEMENT EXPLAINING WHY THE PREVENT ALL CIGARETTE TRAFFICKING ACT OF 2009 IS NOT APPLICABLE TO THE APPLICANT AND THE APPLICANT'S PRODUCTS.
INITIATE JOINT ACTION ON POLICY ISSUES OF MUTUAL INTEREST BETWEEN THIS STATE AND ANY COUNTRY.
AN ATTESTATION THAT THE APPLICANT WILL COMPLY WITH ALL APPLICABLE LAWS OF THIS STATE AND ALL APPLICABLE LAWS OF THE JURISDICTION THAT ENCOMPASSES THE APPLICANT'S PRINCIPAL PLACE OF BUSINESS.
PROMOTE BUSINESS AND ACADEMIC EXCHANGES BETWEEN THIS STATE AND ANY COUNTRY.
A LIST OF EACH TYPE OR MODEL OF THE APPLICANT'S VAPOR PRODUCT THAT IS SOLD OR OFFERED FOR SALE IN THIS STATE, INCLUDING FOR EACH VAPOR PRODUCT THE VAPOR PRODUCT NAME, VAPOR PRODUCT CATEGORY, VOLUME OF NICOTINE BY WEIGHT AND TOTAL VOLUME.
ENCOURAGE MUTUAL ECONOMIC SUPPORT BETWEEN THIS STATE AND ANY COUNTRY.
A NOTARIZED ATTESTATION THAT THE APPLICANT'S VAPOR PRODUCTS, AS WELL AS ALL COMPONENTS OR PARTS OF VAPOR PRODUCTS, FULLY COMPLY WITH THE REQUIREMENTS OF THE UNITED STATES CUSTOMS AND BORDER PROTECTION, INCLUDING ACCURATE ENTRY SUMMARY FORMS, OR EQUIVALENT SUCCESSOR FORMS, AND THAT THE APPLICANT IS NOT IN VIOLATION OF 18 UNITED STATES CODE SECTION 541, 542 OR 545.
THE DEPARTMENT MAY REQUEST THAT THE APPLICANT PROVIDE ADDITIONAL RELEVANT DOCUMENTS, INCLUDING COPIES OF OTHER UNITED STATES CUSTOMS AND BORDER PROTECTION FORMS, COMMERCIAL INVOICES, CARGO RELEASE RESULTS REPORTS AND AIRWAY BILLS OR BILLS OF LADING.
ENCOURAGE MUTUAL INVESTMENT IN THE INFRASTRUCTURE OF THIS STATE AND ANY COUNTRY.
FOR AN APPLICANT WITH A PRINCIPAL PLACE OF BUSINESS LOCATED OUTSIDE OF THE UNITED STATES, A DECLARATION, IN A FORM PRESCRIBED BY THE DEPARTMENT, FROM EACH OF THE APPLICANT'S IMPORTERS INTO THE UNITED STATES OF ANY OF THE APPLICANT'S BRANDS TO BE SOLD OR OFFERED FOR SALE IN THIS STATE, THAT THE IMPORTER ACCEPTS JOINT AND SEVERAL LIABILITY WITH THE APPLICANT FOR ALL LIABILITY IMPOSED IN ACCORDANCE WITH THIS SECTION, -7- House Amendments to H.B.
2765 INCLUDING ANY FEES, COSTS, ATTORNEY FEES AND PENALTIES IMPOSED UNDER THIS CHAPTER.
ON OR BEFORE DECEMBER 31, 2027 AND EACH YEAR THEREAFTER, SUBMIT A REPORT TO THE SPEAKER OF THE HOUSE OF REPRESENTATIVES CONTAINING THE - 1 - HB 2765 COMMISSION'S FINDINGS, RESULTS AND RECOMMENDATIONS, INCLUDING RECOMMENDATIONS TO ADD ADDITIONAL COMMITTEE MEMBERS.
ANY OTHER INFORMATION AS THE DEPARTMENT MAY REQUIRE FOR THE PURPOSE OF ADMINISTERING THIS CHAPTER.
Sec.
F.
A VAPOR PRODUCT MANUFACTURER MAY NOT CAUSE TO BE SOLD OR OFFER FOR SALE AT RETAIL IN THIS STATE OR TO A CONSUMER IN THIS STATE ANY TYPE OR MODEL OF VAPOR PRODUCT THAT IS NOT INCLUDED IN THE VAPOR PRODUCT LIST PROVIDED WITH THE VAPOR PRODUCT MANUFACTURER'S CERTIFICATION WITHOUT FIRST FILING AN AMENDED CERTIFICATION ON A FORM AND IN A MANNER PRESCRIBED BY THE DEPARTMENT.
G.
EACH VAPOR PRODUCT MANUFACTURER THAT OBTAINS A LICENSE UNDER THIS SECTION SHALL SUBMIT TO THE DEPARTMENT:
1.
WITHIN THIRTY DAYS OF ANY CHANGES TO THE VAPOR PRODUCT MANUFACTURER'S VAPOR PRODUCT LIST SUBMITTED WITH THE CERTIFICATION REQUIRED BY THIS SECTION, A NOTICE OF THE CHANGES.
Title 41, chapter 27, article 2, Arizona Revised Statutes, is amended by adding section 41-3034.01, to read:
EVERY SIX MONTHS, AN ATTESTATION THAT CONFIRMS THE INFORMATION SUBMITTED IN THE VAPOR PRODUCT MANUFACTURER'S LICENSE APPLICATION REMAINS ACCURATE.
41-3034.01.
THE DEPARTMENT MAY REQUEST THAT THE VAPOR PRODUCT MANUFACTURER PROVIDE ADDITIONAL RELEVANT DOCUMENTS RELATED TO THE ATTESTATION.
International trade commission;
H.
termination July 1, 2034 A.
SUBMISSION OF AN APPLICATION OR CERTIFICATION THAT CONTAINS FALSE INFORMATION IS A VIOLATION OF TITLE 44, CHAPTER 10, ARTICLE 7 AND IS SUBJECT TO REMEDIES AVAILABLE UNDER TITLE 44, CHAPTER 10, ARTICLE 7.
THE INTERNATIONAL TRADE COMMISSION TERMINATES ON JULY 1, 2034.
THE DEPARTMENT MAY NOTIFY APPROPRIATE FEDERAL AND STATE AGENCIES REGARDING FALSE INFORMATION SUBMITTED ON AN APPLICATION OR CERTIFICATION FORM.
I.
ANY NONRESIDENT OR FOREIGN VAPOR PRODUCT MANUFACTURER THAT HAS NOT REGISTERED TO DO BUSINESS IN THIS STATE AS A FOREIGN CORPORATION OR BUSINESS ENTITY, AS A CONDITION PRECEDENT TO RECEIVING A VAPOR PRODUCT MANUFACTURER LICENSE, SHALL APPOINT AND CONTINUALLY ENGAGE WITHOUT INTERRUPTION THE SERVICES OF AN AGENT IN THIS STATE TO ACT AS AGENT FOR THE SERVICE OF PROCESS ON WHOM ALL PROCESS, AND ANY ACTION OR PROCEEDING AGAINST THE VAPOR PRODUCT MANUFACTURER CONCERNING OR ARISING OUT OF THE ENFORCEMENT OF THIS SECTION OR PROVISIONS RELATING TO THE SALE OF THE VAPOR PRODUCT MANUFACTURER'S VAPOR PRODUCTS IN THIS STATE, MAY BE SERVED IN ANY MANNER AUTHORIZED BY LAW.
SERVICE ON THE AGENT CONSTITUTES LEGAL AND VALID SERVICE OF PROCESS ON THE VAPOR PRODUCT MANUFACTURER.
THE VAPOR PRODUCT MANUFACTURER SHALL PROVIDE THE NAME, ADDRESS, TELEPHONE NUMBER AND PROOF OF THE APPOINTMENT AND AVAILABILITY OF THE AGENT TO THE DEPARTMENT.
THE VAPOR PRODUCT MANUFACTURER SHALL NOTIFY THE DEPARTMENT AT LEAST THIRTY CALENDAR DAYS BEFORE TERMINATING THE AUTHORITY OF AN AGENT AND PROVIDE PROOF TO THE SATISFACTION OF THE DEPARTMENT OF A NEW AGENT'S APPOINTMENT AT LEAST FIVE CALENDAR DAYS BEFORE TERMINATING THE EXISTING AGENT APPOINTMENT.
IF AN AGENT TERMINATES AN APPOINTMENT, THE VAPOR PRODUCT MANUFACTURER SHALL NOTIFY THE DEPARTMENT OF THE TERMINATION WITHIN FIVE CALENDAR DAYS AND INCLUDE PROOF TO THE SATISFACTION OF THE DEPARTMENT OF A NEW AGENT'S APPOINTMENT.
J.
ANY NONRESIDENT OR FOREIGN VAPOR PRODUCT MANUFACTURER THAT HAS NOT REGISTERED TO DO BUSINESS IN THIS STATE AS A FOREIGN CORPORATION OR BUSINESS ENTITY, AS A CONDITION PRECEDENT TO RECEIVING A VAPOR PRODUCT -8- House Amendments to H.B.
2765 MANUFACTURER LICENSE, SHALL SUBMIT TO THE DEPARTMENT A SURETY BOND OR OTHER CASH SECURITY PAYABLE TO THIS STATE IN THE AMOUNT OF $25,000.
THE BOND SHALL BE POSTED BY A CORPORATE SURETY LOCATED WITHIN THE UNITED STATES.
THE BOND SHALL BE CONDITIONED ON THE PERFORMANCE BY THE VAPOR PRODUCT MANUFACTURER OF THE REQUIREMENTS PRESCRIBED BY THIS SECTION.
A SURETY ON A VAPOR PRODUCT MANUFACTURER'S BOND IS LIABLE FOR UP TO THE AMOUNT OF THE BOND, AND THIS STATE MAY EXECUTE ON THE SURETY BOND FOR THE PAYMENT OF FEES AND CIVIL PENALTIES IMPOSED ON THE VAPOR PRODUCT MANUFACTURER UNDER THIS SECTION AND FOR THE COSTS OF SEIZURE AND DESTRUCTION OF VAPOR PRODUCTS SOLD OR OFFERED FOR SALE IN VIOLATION OF THIS SECTION.
IF THIS STATE EXECUTES ON THE SURETY BOND, THE DEPARTMENT MAY REQUIRE THE VAPOR PRODUCT MANUFACTURER TO PROVIDE AN ADDITIONAL BOND BEFORE RETAINING THE VAPOR PRODUCT MANUFACTURER OR THE VAPOR PRODUCT MANUFACTURER'S VAPOR PRODUCTS ON THE LISTS ON THE DEPARTMENT'S WEBSITE.
A SURETY ON A BOND FURNISHED BY A VAPOR PRODUCT MANUFACTURER AS PROVIDED IN THIS SECTION SHALL BE RELEASED AND DISCHARGED FROM LIABILITY TO THIS STATE, ACCRUING ON THE BOND AFTER SIXTY DAYS FROM THE DATE ON WHICH THE SURETY PROVIDES A WRITTEN REQUEST TO BE RELEASED AND DISCHARGED TO THE DEPARTMENT.
THIS SUBSECTION DOES NOT RELIEVE, RELEASE OR DISCHARGE THE SURETY FROM LIABILITY ALREADY ACCRUED OR THAT WILL ACCRUE BEFORE THE SIXTY-DAY PERIOD EXPIRES.
THE DEPARTMENT, ON RECEIVING ANY SUCH REQUEST, SHALL NOTIFY THE VAPOR PRODUCT MANUFACTURER THAT FURNISHED THE BOND.
UNLESS THE VAPOR PRODUCT MANUFACTURER, ON OR BEFORE THE SIXTY-DAY PERIOD EXPIRES, FILES WITH THE DEPARTMENT A NEW BOND, WITH THE SURETY APPROVED BY AND ACCEPTABLE TO THE DEPARTMENT, THE DEPARTMENT SHALL CANCEL THE VAPOR PRODUCT MANUFACTURER'S VAPOR PRODUCT MANUFACTURER LICENSE.
K.
A VAPOR PRODUCT MANUFACTURER LICENSE IS NONTRANSFERABLE.
IF A VAPOR PRODUCT MANUFACTURER CEASES TO DO BUSINESS BY REASON OF DISCONTINUATION, SALE OR TRANSFER OF THE VAPOR PRODUCT MANUFACTURER'S BUSINESS, THE VAPOR PRODUCT MANUFACTURER SHALL NOTIFY THE DEPARTMENT IN WRITING AT THE TIME THE DISCONTINUANCE, SALE OR TRANSFER TAKES EFFECT.
L.
VAPOR PRODUCTS OFFERED FOR SALE IN VIOLATION OF THIS SECTION, INCLUDING OFFERING FOR SALE VAPOR PRODUCTS MANUFACTURED BY A BUSINESS THAT DOES NOT HOLD A VALID VAPOR PRODUCT MANUFACTURER LICENSE, ARE SUBJECT TO SEIZURE.
ALL VAPOR PRODUCTS THAT ARE SEIZED AS A VIOLATION OF THIS SECTION ARE FORFEITED TO THIS STATE AND SHALL BE DESTROYED CONSISTENT WITH SECTION 42-1124.
M.
A VAPOR PRODUCT MANUFACTURER SHALL HAVE ESTABLISHED SUFFICIENT CONTACT WITH THIS STATE FOR THE EXERCISE OF PERSONAL JURISDICTION OVER THE VAPOR PRODUCT MANUFACTURER IN ANY MATTER OR ISSUE ARISING UNDER THIS SECTION OR RELATED TO THE SALE OF VAPOR PRODUCTS.
N.
THE DEPARTMENT SHALL MAINTAIN AND MAKE PUBLICLY AVAILABLE ON THE DEPARTMENT'S OFFICIAL WEBSITE LISTS OF BOTH OF THE FOLLOWING:
1.
ALL VAPOR PRODUCT MANUFACTURERS THAT ARE LICENSED PURSUANT TO THIS SECTION.
2.
ALL VAPOR PRODUCTS INCLUDED IN THE VAPOR PRODUCT LISTS SUBMITTED BY VAPOR PRODUCT MANUFACTURERS THAT ARE LICENSED PURSUANT TO THIS SECTION.
-9- House Amendments to H.B.
2765 O.
FROM AND AFTER DECEMBER 31, 2026, VAPOR PRODUCTS THAT ARE NOT INCLUDED ON THE A LICENSED VAPOR PRODUCT MANUFACTURER'S VAPOR PRODUCT LIST MAY NOT BE SOLD OR OFFERED FOR RETAIL SALE TO A CONSUMER IN THIS STATE, EITHER DIRECTLY OR THROUGH AN IMPORTER, DISTRIBUTOR OR RETAILER OR A SIMILAR INTERMEDIARY OR INTERMEDIARIES.
P.
A RETAILER SHALL PURCHASE VAPOR PRODUCTS ONLY FROM A DISTRIBUTOR OR LICENSED VAPOR PRODUCT MANUFACTURER THAT IS LICENSED PURSUANT TO THIS SECTION.
Q.
A DISTRIBUTOR SHALL PURCHASE VAPOR PRODUCTS ONLY FROM A VAPOR PRODUCT MANUFACTURER THAT IS LICENSED PURSUANT TO THIS SECTION.
R.
ANY BUSINESS OPERATING AS A VAPOR PRODUCT MANUFACTURER WITHOUT A VAPOR PRODUCT MANUFACTURER LICENSE:
1.
FOR A FIRST VIOLATION, SHALL PAY A CIVIL PENALTY OF $2,500.
2.
FOR A SECOND VIOLATION WITHIN A THIRTY-SIX MONTH PERIOD, SHALL PAY A CIVIL PENALTY OF $5,000 AND IS GUILTY OF A CLASS 2 MISDEMEANOR.
3.
FOR A THIRD OR SUBSEQUENT VIOLATION WITHIN A THIRTY-SIX MONTH PERIOD, SHALL PAY A CIVIL PENALTY OF $10,000, IS GUILTY OF A CLASS 1 MISDEMEANOR AND IS INELIGIBLE TO BE LICENSED AS A VAPOR PRODUCT MANUFACTURER FOR A PERIOD OF THIRTY-SIX MONTHS AFTER THE DATE OF A THIRD VIOLATION.
S.
A VAPOR PRODUCT MANUFACTURER THAT IS LICENSED UNDER THIS SECTION AND THAT VIOLATES THIS SECTION:
1.
FOR A FIRST VIOLATION, SHALL PAY A CIVIL PENALTY OF $2,500.
2.
FOR A SECOND VIOLATION WITHIN A THIRTY-SIX MONTH PERIOD, SHALL PAY A CIVIL PENALTY OF $5,000 AND IS GUILTY OF A CLASS 2 MISDEMEANOR, AND THE VAPOR PRODUCT MANUFACTURER LICENSE SHALL BE SUSPENDED FOR THIRTY DAYS.
3.
FOR A THIRD OR SUBSEQUENT VIOLATION WITHIN A THIRTY-SIX MONTH PERIOD, SHALL PAY A CIVIL PENALTY OF $10,000 AND IS GUILTY OF A CLASS 1 MISDEMEANOR, AND THE VAPOR PRODUCT MANUFACTURER LICENSE SHALL BE REVOKED.
A VAPOR PRODUCT MANUFACTURER LICENSE REVOKED PURSUANT TO THIS PARAGRAPH IS INELIGIBLE TO RECEIVE OR RENEW A VAPOR PRODUCT MANUFACTURER LICENSE FOR A PERIOD OF THIRTY-SIX MONTHS AFTER THE DATE OF THE THIRD VIOLATION.
T.
THE DEPARTMENT SHALL DEPOSIT CIVIL PENALTIES COLLECTED PURSUANT TO SUBSECTIONS R AND S OF THIS SECTION IN THE VAPOR PRODUCT MANUFACTURER LICENSING FUND ESTABLISHED BY SECTION 42-3409.
42-3408.
Delegation of authority;
compliance reporting A.
THE DEPARTMENT MAY:
1.
DELEGATE THE ENFORCEMENT AND COMPLIANCE INSPECTIONS REQUIRED UNDER THIS ARTICLE TO ANY COUNTY OR LAW ENFORCEMENT AGENCY THAT ACCEPTS THIS DELEGATION.
2.
COLLABORATE WITH AND USE THE FINDINGS OF OTHER STATE AGENCIES TO CARRY OUT THE OBLIGATIONS OF THIS ARTICLE AND TO ENSURE THAT THE COMPLAINTS RECEIVED BY OTHER AGENCIES OR A DELEGATED LICENSING AUTHORITY ARE FORWARDED TO THE DEPARTMENT FOR TIMELY INVESTIGATION AND ACTION.
TITLE 41, CHAPTER 8, ARTICLE 6 AND THIS SECTION ARE REPEALED ON JANUARY 1, 2035.
A DELEGATED LICENSING AUTHORITY OR ANY LAW ENFORCEMENT AGENCY OR OTHER LOCAL ENTITY CONDUCTING COMPLIANCE CHECKS TO ASSESS RETAIL TOBACCO VENDOR COMPLIANCE WITH THE LEGAL AGE FOR SALES OF TOBACCO PRODUCTS AND -10- House Amendments to H.B.
2765 VAPOR PRODUCTS SHALL REPORT THE COMPLIANCE CHECK RESULTS TO THE DEPARTMENT.
42-3409.
Vapor product manufacturer licensing fund THE VAPOR PRODUCT MANUFACTURER LICENSING FUND IS ESTABLISHED CONSISTING OF LICENSING FEES AND CIVIL PENALTIES COLLECTED PURSUANT TO SECTION 42-3407.
THE DEPARTMENT SHALL ADMINISTER THE FUND.
MONIES IN THE FUND ARE SUBJECT TO LEGISLATIVE APPROPRIATION.
MONIES IN THE FUND SHALL BE USED FOR THE ENFORCEMENT OF SECTION 42-3407.
3.
6.
Purpose Pursuant to section 41-2955, subsection E, Arizona Revised Statutes, the legislature establishes the international trade commission to encourage economic support and investment between this state and any country.
Effective date This act is effective from and after December 31, 2026.
- 2 -
Sec.
7.
Severability If a provision of this act or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the act that can be given effect without the invalid provision or application, and to this end the provisions of this act are severable." Amend title to conform TERESA MARTINEZ 2765MARTINEZ SE.docx 02/16/2026 4:02 PM C:
ED 130XBNTCN -11-
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Action History

  1. DPA/SE

  2. House Second Reading

  3. House First Reading.

Sponsors

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1 sponsors · 0 co-sponsors · 92 not signed on

Sponsors (1)

Co-sponsors (0)

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Not signed on (92)

92 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Frequently asked questions

Who sponsors HB 2765?
HB 2765 is sponsored by Tony Rivero (Republican).
What is the current status of HB 2765?
This bill died with 57th Legislature - Second Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track HB 2765?
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