Struck = removed from the bill ·
added = the amendment's new text.
ENROLLEDHFAHB782 4872 3172 FOR OFFICE USE ONLY HOUSE FLOOR AMENDMENTS Regular Session HOUSEAmendments BILLproposed NO.by Representative Brass to Engrossed House Bill No.
782 BYby REPRESENTATIVESRepresentative BRASS,Brass BACALA,AMENDMENT BERAULT,NO. BILLINGS, ROBBY CARTER,CARVER,CHASSION,CHENEVERT,DOMANGUE,EDMONSTON, FISHER, GALLE, GREEN, HEBERT, JACKSON, TRAVIS JOHNSON, KNOX, LAFLEUR, TERRY LANDRY, MACK, MARTINEZ, MURRAY, NEWELL, ORGERON, SPELL, STAGNI, WILEY, WYBLE, AND ZERINGUE AN ACT To amend and reenact R.S.
26:1 On page 2, line 17, after "(36)" insert "(a)" AMENDMENT NO.
901(introductory2 paragraph),On (1)(introductorypage paragraph),2, andat (32)(introductorythe paragraph),beginning 903(1)of throughline (4),19, 911(B)(2),delete 916(B),"(a)" 918(A)(introductory paragraph) and (1)after and"structure" (3)delete and"of 926.1(J)which" andAMENDMENT (K),NO. and R.S.
47:843(C)(3),3 On page 2, on line 21, after "(ii)" delete "Which has" and toinsert enact"Has" R.S.AMENDMENT NO.
26:901(36),4 901.1(D),On 911(F),page 914.1,6, 918(E),line and15, 926,after and"authorized R.S.by" change "R.S.
47:841(B)(8),26:926" relative to vapor"R.S. and alternative nicotine products and modified risk tobacco products;
to26:916" provideAMENDMENT forNO. the definitions of an alternative nicotine product, a vapor product, and a nicotine analogue;
to5 provideOn forpage facts6, delete line 19 in its entirety and findings;insert "(6) Revenue received" Page 1 of 1 CODING:
to provide for an increase in permit fees;
to require a wholesale dealer to verify that a retail dealer has a valid permit;
to provide for requirements for certain permittedmanufacturersanddealersofvaporproducts;toprovideforlimitationsand requirements;
to except certain sales of vapor products relative to affiliated entities;
to provide for certain exceptions;
to provide for the suspension or revocation of permits;
to provide for the seizure and forfeiture of alternative nicotine and vapor products;
to provide for penalties;
to provide for submission of marketing approval of alternative nicotine products to the commissioner of the alcohol and tobacco commission;
to provide for imposition of tax;
to provide for use of stamps;
to provide for severability;
and to provide for related matters.
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782 ENROLLED Be it enacted by the Legislature of Louisiana:
Section 1.
R.S.
26:901(introductory paragraph), (1)(introductory paragraph), and (32)(introductory paragraph), 903(1) through (4), 911(B)(2), 916(B), 918(A)(introductory paragraph)and(1)and(3)and926.1(J) and (K)areherebyamendedandreenactedandR.S.
26:901(36),901.1(D),911(F),914.1,918(E),and926areherebyenactedtoreadasfollows:
§901.
Definitions As used in this Chapter, the following terms have the meaning meanings ascribed to them in this Section, unless the context clearly indicates otherwise:
(1) "Alternative nicotine product" means any noncombustible product containing nicotine or a nicotine analogue that is intended for human consumption, whether chewed,absorbed,dissolved, or ingested byanyother means.
"Alternative nicotine product" does not include any of the following:
* * * (32) "Vapor product" means any noncombustible product containing nicotine, a nicotine analogue, or other substances that employs employ a heating element, power source, electronic circuit, or other electronic, chemical, or mechanical means, regardless of shape or size, that can be used to produce vapor fromnicotineorothersubstances.
"Vaporproduct"includesanyelectroniccigarette, electroniccigar,electroniccigarillo,electronicpipe,orsimilarproductordevice,and anyvapor cartridge or other container of nicotine or nicotine analogue in a solution or other form that is intended to be used with or in an electronic cigarette,electronic cigar, electronic cigarillo, electronic pipe, or similar product or device.
"Vapor product" does not include any of the following:
* * * (36)(a) "Nicotine analogue" means a substance with either of the following characteristics:
(i) The chemical structure is substantially similar to the chemical structure of nicotine.
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782 ENROLLED (ii) 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.
(b) Factors relevant to determining whether a substance is a nicotine analogueincludebutarenotlimitedtothemarketing,advertising,andlabelingofthe substance, and whether the substance has been manufactured, formulated, sold, distributed, or marketed with the intent to avoid the provisions of this Chapter and other applicable provisions of law.
* * * §901.1.
Facts and findings * * * D.
The provisions of this Chapter shall not apply to lawful activities authorized pursuant to R.S.
40:1046 et seq.
or R.S.
40:966(F), and regulated by the Louisiana Department of Health.
* * * §903.
Permit fees The fees for each permit shall not exceed amounts provided for in the following schedule and in accordance with regulations promulgated pursuant to the provisions of the Administrative Procedure Act:
(1) Retail dealer permit – $ 25.00 $100.00 per year or any portion thereof.
(2) Vending machine operator – $75.00 $300.00 per year or any portion thereof.
(3) Vending machine – $5.00 $20.00 per machine per year or any portion thereof.
(4) Wholesale dealer – $75.00 $300.00 per year or any portion thereof.
* * * §911.
Acts prohibited * * * B.
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782 ENROLLED (2) No wholesale dealer shall sell tobacco products, alternative nicotine products, or vapor products for resale except to a retail dealer operating with either a valid registration certificate or a valid unsuspended permit.
A wholesale dealer shall verifythat a retail dealer is operating with either a valid registration certificate or a valid unsuspended permit prior to any sale of tobacco products, alternative nicotine products, or vapor products to a retail dealer.
* * * F.
Nopersonshallsell,give,serve,deliver,orfurnishtoapersoninthisstate a product that contains a nicotine analogue.
* * * §914.1.
Three-tier system for vapor products A.(1) AmanufacturerofvaporproductswithaLouisianapermitshallnotdo any of the following:
(a) HoldaretaildealerpermitissuedpursuanttothisChapterforthepurpose of selling vapor products to Louisiana consumers.
(b) Hold a wholesale dealer permit issued pursuant to this Chapter for the purpose of selling vapor products to Louisiana consumers.
(c) Possess any direct or indirect financial interest in a wholesale or retail dealer of vapor products with a Louisiana permit.
(d) Ship vapor products directly to a retail dealer with a Louisiana permit.
(e) Sell vapor products directlyto a retail dealer with a Louisiana permit for resale to Louisiana consumers.
(f) ShipvaporproductsdirectlytoaLouisianaconsumerfromanout-of-state or in-state seller.
(2)(a) AwholesaledealerofvaporproductswithaLouisianapermitshallnot hold a retail dealer permit issued pursuant to this Chapter for the purpose of selling vapor products to Louisiana consumers.
(b)(i) A wholesale dealer with a Louisiana permit may sell or distribute vapor products or any other product covered by this Chapter to a retail dealer with a Louisiana permit that is an affiliated entity of the wholesale dealer.
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782 ENROLLED (ii) The term "affiliated entity" as used in this Subparagraph means any person or entity that directly or indirectly controls, is controlled by, or is under common control with another person or entity.
(3) A retail dealer of vapor products with a Louisiana permit shall not do either of the following:
(a) Hold a wholesale dealer permit issued pursuant to this Chapter for the purpose of selling vapor products to another retail dealer with a Louisiana permit.
(b) Purchase vapor products from anyperson other than a wholesalerdealer with a Louisiana permit.
B.
The provisions of this Section do not apply to lawful marijuana or marijuanaproductsauthorizedpursuanttoR.S.
40:1046 etseq.andregulatedbythe Louisiana Department of Health.
* * * §916.
Suspensions or revocations * * * B.
The commissioner shall have shall conduct periodic examinations made of the businesses of all persons holding permits under in accordance with this Chapter or of locations where tobacco products, vapor products, or alternative nicotine products are reasonablybelieved to be sold without permits.
If a violation of the this Chapter or of any rule or regulation of the commissioner or the secretary is observed, the commissioner may give the permittee person a written warning.
If the permittee person has been previously warned or if the violation is of a sufficientlyserious nature, the commissioner mayinstruct anyagent or employee of the commissioner to prepare and file, upon information and belief based upon the facts in handavailable,apetition forassessingafine,orsuspension or revocationof the permit, setting forth the facts and circumstances of the violation, and shall thereupon summon the permittee person to appear and show cause why the permit should not be suspended or revoked or the fine not assessed.
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782 ENROLLED §918.
Civil penalties A.
Notwithstanding any other provision of this Chapter to the contrary, the commissioner may, in lieu of or in addition to revocation or suspension of a permit issuedunderpursuanttotheauthorityofthisChapter,imposethefollowingschedule of fines to be paid into the state treasury:
(1) For a first offense, not less than fifty dollars but not more than five hundred one thousand dollars.
* * * (3) Forathirdoffense,whichoccurswithintwoyearsofthefirstoffense,not less than five hundred dollars but not more than two thousand five hundred four thousand dollars.
* * * E.
Notwithstanding any other provision of this Chapter to the contrary, for a violation of R.S.
26:913, the commissioner mayimpose the following schedule of fines to be paid into the state treasury:
(1) For a first offense, not less than five hundred dollars but not more than one thousand dollars.
(2) For a second offense, which occurs within two years of the first offense, not less than one thousand dollars but not more than two thousand dollars.
(3) Forathirdoffense,whichoccurswithintwoyearsofthefirstoffense,not less than two thousand dollars but not more than four thousand dollars.
* * * §926.
Seizure and forfeiture of alternative nicotine products and vapor products in the possession of unpermitted retail dealers All alternative nicotine products and vapor products purchased, offered for sale, or sold for retail sale or to a consumer in this state in violation of this Chapter, including such products found on the premises of a business or any location operating without a permit in violation of this Chapter, are contraband and subject to forfeitureandshall not be purchasedor sold forretailsaleorto aconsumerin this state.Thecommissionermayseizeanddestroyordisposeofsuchproducts.
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782 ENROLLED of such seizure and destruction or disposal shall be borne bythe person from whom the products are confiscated.
Within twenty-one days of destroying or otherwise disposing of anysuchseizedproducts,thecommissioner shall provide an invoice to thepersonfrom whom the products areconfiscated,and payment shall be dueto the commissioner within twenty-one days of the person receiving the invoice.
§926.1.
Vapor product and alternative nicotine product directory * * * J.(1) The sale, offerfor sale,possession, or transportation of vapor products or alternative nicotine products not listed on the directory for sale in this state or to a person in this state byanyperson, includinga permitted wholesale dealer,or retail dealer, or a person without a permit, shall be subject to provisions of R.S.
47:858, 859, and 860 as if such wholesale dealer or retail dealer did not possess a valid permit.
the following penalties:
(a) For a first offense, one thousand dollars.
(b) For a second offense, which occurs within two years of the first offense, twothousanddollars,andthepermitofthepersonshallbesuspendedforsixmonths.
(c) For a third offense, which occurs within two years of the first offense, four thousand five hundred dollars, and the permit of the person shall be revoked.
(2) Eachunitofvaporproductoralternativenicotineproductsoldoroffered for sale, possessed, or transported shall constitute a separate violation for purposes of Paragraph (1) of this Subsection.
(3) The commissioner or the attorney general may bring an action in the courts of this state to enforce this Chapter and shall be entitled to recover the costs of the investigation, expert witness fees, the action, and reasonable attorneyfees.
(4) If a court determines that a person has violated this Section by having sold or distributed vapor products or alternative nicotine products not listed on the directorywithin the stateorto apersonin this state,thecourt shall order anyprofits, gains, gross receipts, or other benefits from the violation to be disgorged.
Revenue received pursuant to this Paragraph shall be used to recover the costs of the investigation, expert witness fees, the action, and reasonableattorneyfees, with any Page 7 of 9 CODING:
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782 ENROLLED remaining funds to be used bythe office of alcohol and tobacco control exclusively for compensating such agency for its costs expended in enforcing this Chapter, conducting the periodic examinations authorized by R.S.
26:916, and taking any resulting enforcement actions.
(5) A second or subsequent violation of R.S.
26:926.1 is an unfair and deceptive trade practice within the meaning of R.S.
51:1405(A).
(6) Revenuereceivedthroughfinesimposed bythis Sectionshallbeusedby the office of alcohol and tobacco control exclusively for conducting the periodic examinations authorized by R.S.
26:926 and taking any resulting enforcement actions.
K.
Any other violation of this Section shall result in a fine of five hundred dollars per offense be subject to the provisions of R.S.
26:918.
* * * Section 2.
R.S.
47:843(C)(3) is hereby amended and reenacted and R.S.
47:841(B)(8) is hereby enacted to read as follows:
§841.
Imposition of tax There is hereby levied a tax upon the sale, use, consumption, handling, or distribution of all cigars, cigarettes, smoking and smokeless tobacco, and vapor products and electronic cigarettes as defined herein, within the state of Louisiana, according to the classification and rates hereinafter set forth:
* * * B.
Cigarettes.
* * * (8) Any tax imposed pursuant to this Subsection shall be reduced by sixty five percent for anyproduct the secretaryof the United States Departmentof Health and Human Services determines to be a modified risk tobacco product pursuant to 21 U.S.C.
387k, as amended from time to time.
* * * §843.
Use of stamps or meter impression required;
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782 ENROLLED C.
Purchase of stamps * * * (3) Cigarette tax stamps shall be sold by the secretaryof the Department of Revenue to bonded, registered Louisiana tobacco dealers in the state of Louisiana who hold a valid stamping agent designation in accordance with R.S.
26:902(2)(a) and who have a direct purchasing contract with a manufacturer at a discount of five sixandone-halfpercentfromthefacevalue,whenpurchasedinquantitiesofnotless than one hundred dollars face value, and the same provisions and discount shall apply where when the metered stamping machine or device is used.
Wholesale tobacco dealers qualified to purchase Louisiana stamps with benefit of the discount described in this Paragraph shall receive the additional benefit of a ten percent discount on the purchase of Louisiana stamps to be applied to those products the United States Food and Drug Administration has determined to be a modified risk tobacco product.
* * * Section 3.
If any provision or item of this Act, or the application thereof, is held invalid, including, but not limited to, anyprovision in violation of the single object rule set forth in the Louisiana Constitution, Article3, Section 15(A), such invalidityshall not affect other provisions, items, or applications of this Act which can be given effect without the invalid provision, item, or application, and to this end the provisions of this Act are hereby declared severable.
SPEAKER OF THE HOUSE OF REPRESENTATIVES PRESIDENT OF THE SENATE GOVERNOR OF THE STATE OF LOUISIANA APPROVED:
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