HB 5228 — AN ACT CONCERNING ELECTRONIC NICOTINE DELIVERY SYSTEM AND VAPOR PRODUCT DEALERS.

715 sHB5228 File No.

715 (E) The name of the individual who shall serve as the fiduciary agent and guarantor for such applicant, which individual shall be personally liable in the event of any noncompliance that results in a debt owed to the department;

[and] (H) A certification that (i) an authorized owner or named designee of such applicant has successfully completed the online prevention education program administered by the Department of Mental Health sHB5228and /Addiction FileServices No.pursuant to section 17a-719, and (ii) all electronic nicotine delivery systems and vapor products offered for sale bytheapplicantcomplywithfederalandstatelaw,includingthefederal Food,Drug andCosmeticAct, 21USC 387et seq., asamendedfromtime to time;

235(I) 5In sHB5228the Filecase No.of an application for an initial dealer registration submitted on or after October 1, 2026, a certification that (i) such applicant's annual gross revenue from sales of cigarettes, drug paraphernalia, electronic nicotine delivery systems, nicotine products, synthetic nicotine, tobacco products and vapor products will not exceed fifty per cent of such applicant's annual gross revenue from all sales at the location that is to be operated under such dealer registration, and (ii) not more than twenty-five per cent of the total floor area dedicated to sales at the location that is to be operated under such dealer registration will be dedicated to sales of cigarettes, drug paraphernalia, electronic nicotine delivery systems, nicotine products, synthetic nicotine, tobacco products and vapor products;

235 and Addiction(J) ServicesIn pursuantthe tocase sectionof 17a-719;an application for renewal of a dealer registration sHB5228 / File No.

(I)715 InsHB5228 theFile caseNo. of an application for an initial dealer registration submitted on or after October 1, 2026, such information as the department requires to determine that (i) such applicant's annual gross revenue from sales of cigarettes, drug paraphernalia, electronic nicotine delivery systems, nicotine products, synthetic nicotine, tobacco products and vapor products will not exceed fifty per cent of such applicant's annual gross revenue from all sales at the location that is to be operated under such dealer registration, and (ii) not more than twenty-five per cent of the total floor area dedicated to sales at the location that is to be operated under such dealer registration will be dedicated to sales of cigarettes, drug paraphernalia, electronic nicotine delivery systems, nicotine products, synthetic nicotine, tobacco products and vapor products;

and715 (J) In the case of an application for renewal of a dealer registration initially issued on or after October 1, 2026, such information as the department requires to determine that, during the registration period immediately preceding such renewal, (i) such applicant's annual gross revenue from sales of cigarettes, drug paraphernalia, electronic nicotine delivery systems, nicotine products, synthetic nicotine, tobacco products and vapor products did not exceed fifty per cent of such applicant's annual gross revenue from all sales at the location operated under such dealer registration, and (ii) not more than twenty-five per cent of the total floor area dedicated to sales at the location operated under such dealer registration was dedicated to sales of cigarettes, drug paraphernalia, electronic nicotine delivery systems, nicotine products, synthetic nicotine, tobacco products and vapor products.

and (C) shall not issue a dealer registration or a renewal of a dealer sHB5228registration /to Filean No.applicant unless the applicant certifies that an authorized owner or named designee of the applicant has successfully completed the online prevention education program administered by the Department of Mental Health and Addiction Services pursuant to section 17a-719.

235(3) 6The sHB5228commissioner Fileshall No.issue a dealer registration or a renewal of a dealer registration toany suchapplicant not later thanthirty daysafter the date of application, unless the commissioner finds:

235(A) registrationThe toapplicant, anor applicantany unlessindividual thenamed applicantin certifiessuch thatapplication anpursuant authorizedto ownersubparagraph or(C) namedof designeesubdivision (1) of thethis applicantsubsection, has successfullymade completeda thematerially onlinefalse preventionor educationmisleading programstatement administeredin bysuch theapplication Departmentor ofin Mentalany Healthother andapplication Addictionmade Services pursuant to sectionthe 17a-719.commissioner;

(3) The commissioner shall issue a dealer registration to any such applicant not later than thirty days after the date of application, unless the commissioner finds:

(A) The applicant has made a materially false or misleading statement in such application or in any other application made to the commissioner;

(D)sHB5228 the/ applicantFile hasNo. a criminal history that is a sufficient basis for denial under section 46a-80;

[or]715 (E)sHB5228 inFile theNo. case of an application for a dealer registration submitted on or after October 1, 2026, that (i) such applicant does not satisfy the criteria established in subparagraph (I) of subdivision (1) of this subsection, or (ii) the commissioner has already issued one dealer registration for every two thousand five hundred residents of the town in which the location that is to be operated under such dealer registration will be located, as determined by the most recently completed decennial census;

715 (D)thethird-partylocalandnationalcriminalbackgroundcheckforany authorized owner or (F)named designee of the applicant has[has violateda anycriminal otherhistory provisionthat ofis] thisaffords section.a sufficient basis for denial under section 46a-80;

[or] (E) the applicant, any authorized owner of the applicant or any entity owned or managed by any individual named in the applicant's application pursuant to subparagraph (C) of subdivision (1) of this subsection (i) has [violated] committed multiple violations of any other provision of this section, (ii) is the subject of a delinquency assessment by theDepartmentofRevenue Services,or (iii)isthesubject ofany other adverse determination by a government agency;

or (F) in the case of an application for an initial dealer registration submitted on or after October 1, 2026, that the commissioner has already issued one dealer registration for every two thousand five hundred residents of the town in which the location that is to be operated under such dealer registration will be located, as determined by the most recently completed decennial census.

Each holder of a dealer registration shall sHB5228annually /attest Filein No.each renewal application as to whether such holder derived at least fifty per cent of its annual gross revenue from sales of cigarettes, drug paraphernalia, electronic nicotine delivery systems, nicotine products, synthetic nicotine, tobacco products and vapor products.

235(5) 7The applicant shall pay to the department a nonrefundable application fee of one thousand dollars, which fee shall be in addition to theannualfeeprescribedinsubsection(d)ofthissection.Anapplication sHB5228 / File No.

235715 annuallysHB5228 attestFile inNo. each renewal application as to whether such holder derived at least fifty per cent of its annual gross revenue from sales of cigarettes, drug paraphernalia, electronic nicotine delivery systems, nicotine products, synthetic nicotine, tobacco products and vapor products.

(5)715 The applicant shall pay to the department a nonrefundable application fee of one thousand dollars, which fee shall be in addition to theannualfeeprescribedinsubsection(d)ofthissection.Anapplication fee shall not be charged for an applicationto renew a dealer registration.

(e) (1) The Department of Consumer Protection may renew a dealer registration issued under this section that has expired if the applicant pays to the department any late fee imposed by the Commissioner of Consumer Protection pursuant to subsection (d) of section 21a-4, which late fee shall be in addition to the fees prescribed in this section for the dealer registration applied for.

(2) A person holding a dealer registration shall update, through the Department of Consumer Protection's online licensing system, any application information such person has provided to the department pursuant to this section, including, but not limited to, any contact information, ownership information or criminal histories of the individual owners of the business entity, not later than thirty days after any change in such information.

(3) A person holding a dealer registration shall be deemed to have constructive notice of communications sent by the Commissioner of Consumer Protection to an electronic mail address provided by such person.

(2) Notwithstanding the provisions of subdivision (1) of this subsection, any business entity with a dealer registration that has expiredforaperiodofninetycalendardaysorlessandthat,during such ninety-day period, sells, offers for sale or possesses with intent to sell an electronic nicotine delivery system or vapor product shall be fined not more than five hundred dollars for each day such business entity is in violationsHB5228 of/ theFile provisionsNo. of this subdivision.

(3)715 A person holding a dealer registration shall update, through the Department of Consumer Protection's online licensing system, any sHB5228 / File No.

235715 8violation sHB5228of Filethe No.provisions of this subdivision.

235[(3) A person holding a dealer registration shall update, through the Department of Consumer Protection's online licensing system, any application information such person has provided to the department pursuant to this section, including, but not limited to, any contact information, ownership information or criminal histories of the individual owners of the business entity, not later than thirty days after any change in such information.information.] (g) (1) For sufficient cause found as set forth in subdivision (2) of this subsection, the Commissioner of Consumer Protection may suspend or revoke a dealer registration, issue fines of not more than ten thousand dollars per violation, accept an offer in compromise or refuse to grant or renew a dealer registration, [or] place the registrant on probation, place conditions on such registrant or take other actions authorized by law.

(g) (1) For sufficient cause found as set forth in subdivision (2) of this subsection, the Commissioner of Consumer Protection may suspend or revoke a dealer registration, issue fines of not more than ten thousand dollars per violation, accept an offer in compromise or refuse to grant or renew a dealer registration, or place the registrant on probation, place conditions on such registrant or take other actions authorized by law.

(C) Any failure to maintain effective controls against diversion, theft or loss of electronic nicotine delivery systems and vapor products;

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235715 (D)(C) Any denial,failure suspension or revocation of a license or registration related to themaintain saleeffective ofcontrols cigarettes,against electronicdiversion, nicotinetheft delivery systems, tobacco products or vaporloss products, or any denial of a renewal of a license or registration related to the sale of cigarettes, electronic nicotine delivery systems,systems tobaccoand products or vapor products,products; by any federal, state or local government or a foreign jurisdiction;

(D) Any denial, suspension or revocation of a license or registration related to the sale of cigarettes, electronic nicotine delivery systems, tobacco products or vapor products, or any denial of a renewal of a license or registration related to the sale of cigarettes, electronic nicotine delivery systems, tobacco products or vapor products, by any federal, state or local government or a foreign jurisdiction;

(G) The possession,offerpossession, offer or saleofanysale illegalorof controlledsubstance,any illegal or controlled substance by the registrant, any owner of the registrant or any person with a financial interest in the registrant, unless otherwise permitted by applicable law;

(L) Advertising an electronic nicotine delivery system or vapor product in any manner that (i) is designed to appeal to individuals who are younger than twenty-one years of age by, among other things, (I) making use ofany spokespersonor celebritywho appealsto individuals who are under the legal age to purchase electronic nicotine delivery systemsor vapor products,(II) depicting any individualwho is younger than twenty-five years of age using an electronic nicotine delivery sHB5228 / File No.

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235715 are younger than twenty-one years of age by, among other things, (I) making use ofany spokespersonor celebritywho appealsto individuals who are under the legal age to purchase electronic nicotine delivery systemsor vapor products,(II) depicting any individualwho is younger than twenty-five years of age using an electronic nicotine delivery system or vapor product, (III) including any object, such as a toy, character or cartoon character, that suggests the presence of an individual who is younger than twenty-one years of age, or (IV) making use of any other depiction or method that is designed in any manner to be appealing to an individual who is younger than twenty-one years of age, or (ii) claims or implies that (I) any electronic nicotine delivery system or vapor product has any curative or therapeutic effect, or (II) any medical claim is true;

or[or] (N) Any failure to complymaintain withrecords, anyor provisionmake ofrecords thisimmediately chapteravailable orto anythe regulationdepartment, adoptedin pursuantaccordance towith the provisions of subdivision (4) of subsection (b) of this chapter.section;

(h) Upon refusal to issue or renew[(N)] a(O) dealerAny registration,failure theto Commissionercomply ofwith Consumerany Protectionprovision shall notify the applicant of thethis denialchapter andor ofany theregulation applicant'sadopted rightpursuant to requestthis achapter. hearing not later than ten days after the applicant receives the notice of denial.

(h) (1) Upon refusal to issue or renew a dealer registration, the Commissioner of Consumer Protection shall notify the applicant of the denial and of the applicant's right to request a hearing not later than ten days after the applicant receives the notice of denial.

(i)[(i)] (2) No person whose dealer registration has been revoked, includingsHB5228 the/ ownersFile ofNo. such registrant, shall apply for a dealer registration under this section for a period of one year after the date of such revocation.

(j)715 ThesHB5228 voluntaryFile surrenderNo. of a dealer registration, or the failure to renew a dealer registration, shall not prevent the Commissioner of Consumer Protection from suspending or revoking such dealer registration or imposing other penalties permitted by applicable law.

(k)715 Allincluding fees,the settlementowners amountsof such registrant, and finesany collectedperson with a financial interest in such registrant, shall apply for a dealer registration or have a financial interest in an applicant under this section sHB5228for /a Fileperiod No.of one year after the date of such revocation.

235[(j)] 11(3) sHB5228The Filevoluntary No.surrender of a dealer registration, or the failure to renew a dealer registration, shall not prevent the Commissioner of Consumer Protection from suspending or revoking such dealer registration or imposing other penalties permitted by applicable law.

235(i) shallThe beCommissioner depositedof inConsumer theProtection consumermay protectionimpose enforcementa accountcivil establishedpenalty of not more than five thousand dollars for each electronic nicotine delivery system and vapor product sold, offered for sale or marketed in sectionviolation 21a-8a.of this section.

For purposes of this subdivision, each such electronic nicotine delivery system or vapor product shall constitute a separate violation.

(j) (1) Any electronic nicotine delivery system or vapor product sold, offered for sale or marketed in violation of this section by a registrant shall be deemed a common nuisance and shall be subject to immediate seizure by thestate or localpolice.

The authorizedofficer shallholdsuch electronic nicotine delivery system or vapor product subject to confiscation and destruction by order of a court of competent jurisdiction.

All costs of such seizure, confiscation and destruction shall be borne by the registrant selling, offering for sale or marketing such electronic nicotine delivery system or vapor product.

(2) Any controlled substance or cannabis sold, offered for sale or marketed by a registrant in violation of chapter 420b, 420f or 420h, as applicable, or regulations adopted thereunder, shall be subject to the provisions of subdivision (1) of this subsection.

(k) A violation of this section shall be an unfair trade practice pursuant to subsection (a) of section 42-110b.

[(k)] (l) All fees, settlement amounts and fines collected under this section shall be deposited in the consumer protection enforcement sHB5228 / File No.

715 sHB5228 File No.

715 account established in section 21a-8a.

Section 1 October 1, 2026 21a-415 StatementsHB5228 of/ LegislativeFile Commissioners:No.

In715 Subsec.14 sHB5228 File No.

(c)(1)(I),715 "aThe dealerfollowing registration"Fiscal wasImpact changedStatement toand "anBill initialAnalysis dealerare registration"prepared for clarity;the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

and in Subsec.

(c)(1)(J)(ii),"registration" was changed to "dealer registration" for internal consistency.

GL Joint Favorable Subst.

sHB5228 / File No.

235 12 sHB5228 File No.

235 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

Agency Affected Fund-Effect FY 27 $ FY 28 $ ConsumerResources Protection,of Dept.the General Fund GF - Potential See Below See Below Revenue Gain Note:

GFGF=General –Fund CostMunicipal 43,436Impact: 55,248 Consumer Protection, Dept.

CannabisNone 83,836Explanation 109,114ThebillallowstheDepartmentofConsumerProtectiontoissueacivil Regulatorypenalty Fundof -up Costto State$5,000 Comptrollerfor -each Fringeelectronic GFnicotine –delivery Costsystem 49,708and 66,277vapor Benefits1product Note:sold that violates the provisions of the bill, resulting in a potential revenue gain to the General Fund to the extent violations occur.

GF=GeneralThe Fund;bill also makes various changes regarding dealers of electronic nicotine delivery systems and vapor products which do not have a fiscal impact.

Various=VariousHouse Municipal"A" Impact:strikes the underlying bill and its associated fiscal impact resulting in the impact described above.

NoneThe ExplanationOut Years The billannualized addsongoing reportingfiscal requirementsimpact andidentified addsabove towould thecontinue reasonsinto the Departmentfuture ofsubject Consumer Protection (DCP) can deny an e-cigarette dealer registration resulting in a cost to the state.number of violations.

To meet the requirements of the bill, DCP will have to hire a processing technician resulting in a General Fund cost of $43,436 in FY and$55,248 inFY 28, andadrug controlagent resulting inaCannabis Regulatory Fund cost of $83,836 in FY 27 and $109,114 in FY 28 .

In addition to the two new positions there will be associated fringe benefit costs of $49,708 in FY 27 and $66,277 in FY 28.

The two additional employees are needed to process the additional data collection required by the bill and ensure compliance measures are met by licensees.

In FY 1The fringe benefit costs for most state employees are budgeted centrally in accounts administered by the Comptroller.

The estimated active employee fringe benefit cost associated with most personnel changes is 41.82% of payroll in FY 27.

2The processing technician will be paid from the General Fund and the drug control agent will be paid from the Cannabis Regulatory Fund.

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235715 DCPOLR receivedBill overAnalysis 1,400sHB renewal5228 applications(as foramended e-cigaretteby licenses.House "A")* AN ACT CONCERNING ELECTRONIC NICOTINE DELIVERY SYSTEM AND VAPOR PRODUCT DEALERS.

TheSUMMARY OutThis Yearsbill Theexpands annualizedthe ongoingrequirements fiscalfor impactbusinesses identifiedthat abovesell wouldelectronic continuenicotine intodelivery thesystems future(ENDS) subjector tovapor employeeproducts, wagecommonly increasesknown andas inflation.e-cigarette dealers.

sHB5228By /law, Filee-cigarette No.dealers must have a dealer registration for each of their business locations and renew it annually.

235Among 14other sHB5228things, Filethe No.bill:

2351. OLR Bill Analysis sHB 5228 AN ACT CONCERNING ELECTRONIC NICOTINE DELIVERY SYSTEM AND VAPOR PRODUCT DEALERS.

SUMMARYexpands Thisthe billindividual addsowners towho themust reasonsprovide fortheir thecontact Departmentinformation ofand Consumera Protectionthird-party (DCP)background tocheck denyas anpart initialof ora renewaldealer’s e-cigaretteapplication dealer registration, to include whenanyone thewith applicantat (1)least has5%, overrather 50% of annual gross revenue from sales of certain nicotine-related products and (2) uses more than 25%10%, ofownership retailor salesinterest arearights; for selling these products.

The2. bill requires dealers to submit information as DCP requires to determine that not more than (1) 50% of the applicant’s annual gross revenue at the location will come from sales of cigarettes, drug paraphernalia, electronic nicotine delivery systems, nicotine products, synthetic nicotine, tobacco products, and vapor products and (2) 25% of the total floor area dedicated to sales at the location will be dedicated to sales of these products.

Forexpands renewals, the information mustdealer insteadregistration tieapplicants backmust provide to theinclude priora registrationcertification period’sthat sales, and the billENDS specificallyor requiresvapor DCPproducts tothey denysell thecomply renewalwith iffederal theseand thresholdsstate arelaws; exceeded.

The3. bill also adds to the grounds for DCP to deny initial registrations (but not renewals) to include when the proposed business is located in a municipality that already has one dealer for every 2,500 residents based on the most recently completed decennial census.

Thegenerally aboveexpands provisionsthe applycircumstances tounder (1)which initialthe applicationsDepartment submittedof onConsumer orProtection after(DCP) Octobermay 1,deny 2026,a dealer’s registration or (2)take renewalsother enforcement actions, including when certain dealers use more than 25% of registrationstheir initiallyretail issuedspace onto sell certain nicotine products or afterwhen a business proposes to locate in a municipality that date.already has a dealer for every 2,500 residents;

Existing4. law sets several other grounds for which DCP may refuse to grant or renew a dealer registration, such as fraudulent or deceitful sHB5228 / File No.

235extendstheexistingone-year 15reapplicationprohibitionto anyone with a financial interest in the e-cigarette dealer and prohibits anyone whose dealer registration was revoked from having a sHB5228 / File No.

235715 practicesorfailuretomaintaineffectivecontrolsagainsttheft,diversion,16 orsHB5228 loss.File No.

715 financial interest in another applicant for one year after the revocation date;

5.

authorizes the DCP commissioner to impose a civil penalty of up to $5,000 for each ENDS or vapor product sold in violation of the dealer registration law and requires these products to be deemed a common nuisance and subject to seizure by police;

6.

specifies that registered e-cigarette dealers are deemed to have constructive notice of communications the DCP commissioner sends to an email address they provided;

7.

makes violations of the dealer registration law a violation of the Connecticut Unfair Trade Practices Act (CUTPA, see BACKGROUND);

and 8.

makes technical and conforming changes.

*House Amendment “A” adds the provisions (1) expanding the information that must be provided to DCP, (2) adding reasons for denying a registration, (3) extending the reapplication prohibition, (4) implementing penalties, and (5) on constructive notice.

October 1, 2026 BACKGROUNDINDIVIDUAL RelatedOWNERS BillExisting sSBlaw 231,generally favorablyrequires reportedanyone byapplying for an initial or renewal e-cigarette dealer registration to provide the Generalname Lawand Committee,contact addsinformation additionaland reasonsa third-party background check for DCPthe tobusiness’s denyindividual anowners e-cigarette(those dealerwith registration.a direct or indirect financial interest in the applicant).

The bill expands this requirement to cover anyone with at least 5%, rather than10%, ownership or interest rights inthe business.

As under current law, this includes the total financial interest held by the individual owner and his or her spouse, parents, and children.

As under existing law, applicants do not need to provide this information if they are a publicly traded company listed on a national sHB5228 / File No.

715 17 sHB5228 File No.

715 stock exchange.

GROUNDS FOR DENYING AN INITIAL OR RENEWAL DEALER REGISTRATION Under current law, the DCP commissioner must issue a dealer registration within 30 days of the application unless he makes certain findings.

The bill extends the same timeframe and reasons for denying a dealer registration to renewals and expands the reasons for a denial to include the following:

1.

if an individual owner named in the application made materially false or misleading statements in a DCP application, rather than just the applicant;

2.

ifthebusinessowner’sornameddesignee’scriminalbackground check is sufficient for denying the registration under the existing law that prohibits state-issued credentials because of a prior criminalconviction,ratherthanifthecommissionerfindsthatthe applicant hasa criminalhistory sufficient to disqualify himor her for a state-issued credential under this law;

and 3.

if the applicant, its authorized owner, or any entity owned or managed by any individual owner named in the application (a) committed multiple violations of the e-cigarette dealer law, (b) is subject to a delinquency assessment by the Department of Revenue Services, or (c) is the subject of any other adverse determination by a government agency, rather than if the applicant violated any other provision of the e-cigarette dealer law.

The bill also adds to the grounds for DCP to deny initial registrations (but not renewals) submitted on or after October 1, 2026, to include whentheproposedbusinessislocatedinamunicipalitythatalreadyhas one dealer for every 2,500 residents based on the most recently completed decennial census.

sHB5228 / File No.

715 18 sHB5228 File No.

715 DEALERS THAT PRIMARILY SELL CERTAIN NICOTINE PRODUCTS The bill adds to the reasons for DCP to deny an initial or dealer registration to include when the applicant (1) has over 50% of annual gross revenue from sales of certain nicotine-related products and (2) uses more than 25% of retail sales area for selling these products.

Under the bill, for initial registrations, the applicant must certify that no more than (1) 50% of the applicant’s annual gross revenue at the location will come from sales of cigarettes, drug paraphernalia, ENDS, nicotine products, synthetic nicotine, tobacco products, and vapor products and (2) 25% of the total floor area dedicated to sales at the location will be dedicated to sales of these products.

For renewals, the applicant must submit the information DCP requires to determine these thresholds, which tie back to the prior registration period’s sales, and the bill specifically requires DCP to deny the renewal if these thresholds are exceeded.

The bill also requires these dealers to maintain the floor space information, subject to DCP inspection and copying, including floor plans showing the total floor area dedicated to sales and the portion dedicated to sales of the products listed above.

REGISTRATION REQUIREMENTS The bill expands the information applicants for an initial or renewal e-cigarette dealer registration must provide to include a certification that the ENDS and vapor products they offer for sale comply with federal and state law, including the federal Food, Drug and Cosmetic Act’s requirement for tobacco products.

SUFFICIENT CAUSE FOR DCP ENFORCEMENT ACTIONS Current law allows the DCP commissioner to take certain actions against an e-cigarette dealer for sufficient cause, including suspending, revoking, or refusing to grant or renew their registration.

Under current law, sufficient cause includes illegally possessing, offering, or selling any illegal or controlled substance.

The bill specifies that this applies to sHB5228 / File No.

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715 the registrant, its owner, or anyone with a financial interest in the registrant (presumably the individual owners named in the application, as described above).

The bill also makes any failure to maintain records or to make them immediately available to DCP sufficient cause for enforcement action.

REAPPLICATION PROHIBITION Currentlawprohibitsanyonewhosedealerregistrationwasrevoked, including the registrant’s owners, from applying for a dealer registration for one year after the revocation date.

The bill (1) extends this reapplication prohibition to anyone with a financial interest in the registrant and (2) bars anyone whose dealer registration was revoked from having a financial interest in another applicant for one year after the revocation date.

CIVIL PENALTY The bill authorizes the DCP commissioner to impose a civil penalty of up to $5,000 for each ENDS and vapor product sold, offered for sale, or marketed in violation of the dealer registration law.

Each of these products is a separate violation.

SEIZURE OF PRODUCTS IN VIOLATION OF THE LAW Under the bill, any ENDS or vapor products sold, offered for sale, or marketed in violation of the dealer registration law, as well as any controlled substance or cannabis sold, offered for sale, or marketed by a dealer in violation of state law, are a common nuisance and subject to immediate seizure by state or local police.

The officers must hold the products subject to confiscation and destruction by a court order and the seller or marketer is liable for all seizure, confiscation, and destruction costs.

BACKGROUND CUTPA By law, CUTPA prohibits businesses from engaging in unfair and sHB5228 / File No.

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715 deceptive acts or practices.

It allows the DCP commissioner, under specified procedures, to issue regulations defining an unfair trade practice, investigate complaints, issue cease and desist orders, order restitution in cases involving less than $10,000, impose civil penalties of up to $5,000, enter into consent agreements, ask the attorney general to seek injunctive relief, and accept voluntary statements of compliance.

It also allows individuals to sue.

Courts may issue restraining orders;

award actual and punitive damages, costs, and reasonable attorney’s fees;

and impose civil penalties of up to $5,000 for willful violations and up to $25,000 for a restraining order violation.

Related Bills sSB 231 (File 174), favorably reported by the General Law Committee, adds additional reasons for DCP to deny an e-cigarette dealer registration.

sHB 5539 (File 671), favorably reported by the Finance, Revenue and Bonding Committee, has similar provisions on expanded contact information, compliance certification, circumstances in which DCP may deny registration, reapplication prohibition, civil penalties, and constructive notice.

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