HB 195 — TOBACCO PRODUCTS ACT

"nicotine liquid" means a liquid or other substance containing nicotine where the liquid or substance is sold, marketed or intended for use in an electronic nicotine delivery system;

HTRCº Q.

provided that the sale is not for resale;resale;»HTRC HTRCºQ.

R."retailer" means any person, partnership, joint venture, society, club, trustee, trust, association, organization or corporation that owns or operates any tobacco retail establishment engaging in the sale of tobacco products.

"self-service"Retailer" display"does meansnot amean displaythe tonon-management whichemployees theof publican hash accessowner withoutor theoperator assistance of aany retailertobacco orretail theestablishment;»HTRC retailer'su employee;» r R.

and"self-service S.display" means a display to which t h g e l i the public has access without the assistance of a retailer or h r i s the retailer's employee;

"tobaccoand product"h means, a product made or derived from tobacco or nicotine that is intended for human consumption, whether smoked, chewed, absorbed, dissolved, inhaled, snorted, sniffed or ingested by any other means, including cigars, cigarettes, chewing tobacco, pipe tobacco, e eh 17S. snuff, e-cigarettes or electronic nicotine delivery systems.

"tobacco product" means a product made or t u g e b l e e , gh derived from tobacco or nicotine that is intended for human n d 18d SECTIONi 3.= = o h consumption, whether smoked, chewed, absorbed, dissolved, l ] b ,d i a º r inhaled, snorted, sniffed or ingested by any other means, e r = t e w d m a n o including cigars, cigarettes, chewing tobacco, pipe tobacco, d m :

[NEWb MATERIALr ]e PROHIBITEDt SALES--º =o t n = l.216665.1GLGAIC ]February 1913, MANUFACTURING--LABELING--MARKETING--SAFETY2020 REQUIREMENTS.--(10:34am) s k m e - 5 - e a ln e d r ie 20l A.u [ A d snuff, e-cigarettes or electronic nicotine delivery systems.

ASECTION person3. shall not knowingly, intentionally or t e a t negligently sell, offer to sell, barter or give a tobacco m m 21 e d r e 22 product to a minor.

c[NEW eMATERIAL] rPROHIBITED cSALES-- 23MANUFACTURING--LABELING--MARKETING--SAFETY B.REQUIREMENTS.-- A.

A licenseeperson shall not sell,knowingly, offerintentionally toor sellnegligently orsell, eoffer ato nsell, bbarter 24or delivergive a tobacco product into a formminor. other than an original u [ manufacturer-sealed package.

.216665.1GLGB. - 5 - C.

A licensee shall not sell, offer to sell or deliver a tobacco product in a form other than an original manufacturer-sealed package.

C.

h D.

A manufacturer shall not produce and a u » r distributor or retailer shall not sell tobacco products that t h g e l i are knowingly attractive to minors.

h r i s SECTION 4.

[NEW MATERIAL ] DIVISION--LICENSE ISSUANCE-- h , e h MANUFACTURE, DISTRIBUTION OR SALE OF TOBACCO PRODUCTS.-- t u g e b l e e , gh A.

Except as provided in Subsection C of this n d d i = = o h section, the division shall issue licenses for the manufacture, l ] b ,d i a º r distribution or sale of tobacco products in New Mexico to e r = t e w d m a n o applicants who meet the requirements of the Tobacco Products ed em 17: Act.

b r e t º o t n = .216665.1GLGAIC February 13, 2020 (10:34am) s k m e - 6 - e a n e d 18r B.e l u [ A d Act.

TheB. division shall issue or renew a license for = = l ] 19 the:

aThe ldivision rshall iissue 20or (1)renew manufacturea oflicense tobacco products for athe: term t e a t of one year;

m(1) mmanufacture 21 e d r e 22 (2) distribution of tobacco products for a c e r c 23 term of one year;

and(2) edistribution a n b 24 (3) retail sale of tobacco products for a term u [ of one year.year;

.216665.1GLGand -(3) 6retail -sale C.of tobacco products for a term of one year.

C.

(1) the applicant has had a manufacturer, distributor or retailer license revoked by the division or by another state, unless it is determined by the director upon a showing by the applicant or licensee that issuing, retaining, h transferring or renewing the license is in the best interest of u » r the public;

t h g e l i (2) the applicant is not in compliance with h r i s Subsection G of Section 7-12-9.1 NMSA 1978;

h , e h (3) the location for the license or license t u g e b l e e , gh transfer is within three hundred feet of a school;

provided n d d i = = o h that this restriction does not apply to a location at which l ] b ,d i a º r tobacco products have been lawfully manufactured, distributed e r = t e w d m a n o or sold prior to July 1, 2020;

or e e 17 (4) the location for the license would result e e n d 18m in: a violation of a zoning or other ordinance of a governing = = l ] 19 body in which the proposed location would exist.

b r e t º o t n = .216665.1GLGAIC February 13, 2020 (10:34am) s k m e - 7 - e a ln e d r ie 20l SECTIONu 5.[ A d (4) the location for the license would result in a violation of a zoning or other ordinance of a governing body in which the proposed location would exist.

[NEWSECTION MATERIAL5. ] MANUFACTURER LICENSE t e a t REQUIREMENTS--APPLICATION AND RENEWAL REQUIREMENTS--FEES.-- m m 21 e d r e 22 A.

A[NEW personMATERIAL shall] notMANUFACTURER manufactureLICENSE tobaccoREQUIREMENTS--APPLICATION productsAND cRENEWAL eREQUIREMENTS--FEES.-- rA. c 23 at any location in the state without first obtaining a e a n b 24 manufacturer license issued by the division to that person for u [ that location.

.216665.1GLGA -person 7shall -not B.manufacture tobacco products at any location in the state without first obtaining a manufacturer license issued by the division to that person for that location.

B.

(a) if the applicant is a firm, partnership or association, the name and address of each of its h members contributing ten percent or more of the total value of u » r contributions made to the firm, partnership or association and t h g e l i each member entitled to ten percent or more of the profits h r i s earned by the firm, partnership or association;

or h , e h (b) if the applicant is a corporation, t u g e b l e e , gh the name and address of its registered agent, the names and n d d i = = o h addresses of all officers and directors and those stockholders l ] b ,d i a º r owning ten percent or more of the voting stock of the e r = t e w d m a n o corporation;

and e e 17 (c) any additional information the e e n d 18m director: may require to ensure full disclosure of the = = l ] 19 applicant's structure and financial responsibility;

ab l r ie 20t (2)º theo addresst ofn the= applicant's.216665.1GLGAIC principalFebruary t13, 2020 (10:34am) s k m e - 8 - e a tn placee ofd businessr ande everyl locationu where[ A d (c) any additional information the applicantdirector mmay mrequire 21to eensure dfull rdisclosure eof 22the manufacturesapplicant's tobaccostructure products;and financial responsibility;

c(2) e r c 23 (3) documentation as required by the divisionaddress eof a n b 24 affirming that the applicantapplicant's willprincipal complyplace withof applicablebusiness and uevery [location properwhere tobacco products manufacturing practices as required .216665.1GLG - 8 - pursuant to 21 USCA Section 387d(a) and will comply with any applicable health directives issued by the departmentapplicant ofmanufactures healthtobacco pursuantproducts; to the Public Health Act;

(3) documentation as required by the division affirming that the applicant will comply with applicable and proper tobacco products manufacturing practices as required pursuant to 21 USCA Section 387d(a) and will comply with any applicable health directives issued by the department of health pursuant to the Public Health Act;

h and u » r (5) a nonrefundable licenseHTRCº license»HTRC t h g e l i HTRCºapplication»HTRC fee not to exceed oneHTRCºone thousand h r i s dollars ($1,000)($1,000)»HTRC HTRCºeight hundred fifty dollars h , e h ($850)»HTRC per location.location HTRCºor a renewal fee not to exceed t u g e b l e e , gh five hundred dollars ($500) per location»HTRC.

n d d i = = o h SECTION 6.

[NEW MATERIALMATERIAL] ] DISTRIBUTOR LICENSE l ] b ,d i a º r REQUIREMENTS--APPLICATION AND RENEWAL REQUIREMENTS--FEES.-- e r = t e w d m a n o A.

A person shall not distribute tobacco products fromd anym location: in the state without first obtaining a distributor license issued by the division to that person for that location.

b r e t º o t n = .216665.1GLGAIC February 13, 2020 (10:34am) s k m e 17- B.9 - e a n e d r e l u [ A d from any location in the state without first obtaining a distributor license issued by the division to that person for that location.

AnB. application for a distributor license or e e n d 18 distributor license renewal shall be submitted on a form = = l ] 19 prescribed by the division and shall include:

aAn lapplication rfor ia 20distributor (1)license theor name,distributor telephonelicense number,renewal mailingshall tbe esubmitted on a tform addressprescribed andby emailthe addressdivision ofand theshall applicantinclude: and:

m(1) m 21 e d r e 22 (a) if the applicantname, istelephone anumber, firm,mailing c e r c 23 partnership or association, the name and address of each of its e a n b 24 members contributing ten percent or more of the total value of u [ contributions made to the firm, partnership or association and .216665.1GLGemail -address 9 - each member entitled to ten percent or more of the profitsapplicant earnedand: by the firm, partnership or association;

or (b) if the applicant is a corporation, the name and address of its registered agent, the names and addresses of all officers and directors and those stockholders owning ten percent or more of the voting stock of the corporation;

and (c) any additional information the director may require to ensure full disclosure of the applicant's structure and financial responsibility;

(2) the address of the applicant's principal place of business and every location from which the applicant distributes tobacco products;

and (3) a nonrefundable application fee not to exceed one thousand dollars ($1,000) per location.

SECTION 7.

[NEW MATERIAL ] RETAILER LICENSE REQUIREMENTS-- e e 17 APPLICATION AND RENEWAL REQUIREMENTS--FEES.-- e e n d 18 A.

A person shall not sell tobacco products at any = = l ] 19 location in the state without first obtaining a retailer a l r i 20 license issued by the division to that person or that person's t e a t employer for that location.

m m 21 e d r e 22 B.

An application for a retailer license or for a c e r c 23 retailer license renewal shall be submitted on a form e a n b 24 prescribed by the division and shall include:

u [ (1) the name, telephone number, mailing .216665.1GLG - 10 - address and email address of the applicant and:

or (b) if the applicant is a corporation, the name and address of its registered agent, the names and h addresses of all officers and directors and those stockholders u » r owning ten percent or more of the voting stock of the t h g e l i corporation;

and h r i s (c) any additional information the h , e h director may require to ensure full disclosure of the t u g e b l e e , gh applicant's structure and financial responsibility;

n d d i = = o h (2) the address of the applicant's principal l ] b ,d i a º r place of business and every location from which the applicant e r = t e w d m a n o distributes tobacco products;

and d m :

b r e t º o t n = .216665.1GLGAIC February 13, 2020 (10:34am) s k m e - 10 - e a n e d r e l u [ A d (3) a nonrefundable application fee not to exceed HTRCºone thousand dollars ($1,000)»HTRC HTRCºeight hundred fifty dollars ($850)»HTRC per location HTRCºor a renewal fee not to exceed five hundred dollars ($500) per location»HTRC.

SECTION 7.

[NEW MATERIAL] RETAILER LICENSE REQUIREMENTS-- APPLICATION AND RENEWAL REQUIREMENTS--FEES.-- A.

A person shall not sell tobacco products at any location in the state without first obtaining a retailer license issued by the division to that person or that person's employer for that location.

B.

An application for a retailer license or for a retailer license renewal shall be submitted on a form prescribed by the division and shall include:

(1) the name, telephone number, mailing address and email address of the applicant and:

h (a) if the applicant is a firm, u » r partnership or association, the name and address of each of its t h g e l i members contributing ten percent or more of the total value of h r i s contributions made to the firm, partnership or association and h , e h each member entitled to ten percent or more of the profits t u g e b l e e , gh earned by the firm, partnership or association;

or n d d i = = o h (b) if the applicant is a corporation, l ] b ,d i a º r the name and address of its registered agent, the names and e r = t e w d m a n o addresses of all officers and directors and those stockholders d m :

b r e t º o t n = .216665.1GLGAIC February 13, 2020 (10:34am) s k m e - 11 - e a n e d r e l u [ A d owning ten percent or more of the voting stock of the corporation;

(2) the address of the applicant's principal e e 17 place of business and every location where the applicant sells e e n d 18 tobacco products;

and = = l ] 19 (3) a nonrefundable application fee not to exceed HTRCº one thousand dollars ($1,000)»HTRC HTRCºeight hundred fifty dollars ($850) per location or a lrenewal rfee inot 20to exceed onefive thousandhundred dollars ($1,000).($500)per location»HTRC.

t e a t SECTION 8.

[NEW MATERIALMATERIAL] ] LICENSE APPLICATION INFORMATION m m 21 e d r e 22 CHANGES.--If the information submitted in an application c e r c 23 pursuant to the Tobacco Products Act for a license or for a e a n b 24 license renewal changes, the licensee shall notify the division uh [ within ten business days of the change.

If a change in the .216665.1GLGg -o 11t -hr information required for an application results in a violation g e i k of the Tobacco Products Act, the director may impose an h r i s administrative penalty as provided in that act.

h , t, e u g SECTION 9.

[NEW MATERIAL ] ISSUANCE OF LICENSES--REASONS e b l e e h FOR DENIAL.-- n d d i = = o h HTRCº A.

TheBeginning divisionJanuary shall1, grant2021, orthe denydivision anl application] forb ,d i a licenseº ore forr ai license= renewalr madeshall pursuantbegin toissuing thelicenses.»HTRC Tobaccot Productse Actw afterd them completea applicationn iso submittedHTRCºA.»HTRC toHTRCºB.»HTRC theThe division.division shall d m :

b e d s º o t n = .216665.1GLGAIC February 13, 2020 (10:34am) s k m e - 12 - e a n e d r e l u [ A d grant or deny an application for a license or for a license renewal made pursuant to the Tobacco Products Act after the complete application is submitted to the division.

B.HTRCº B.»HTRC HTRCºC.»HTRC If a complete application for a license or for a license renewal is denied, the division shall state the reasons for the denial.

IfThe aapplicant completemay applicationreapply forwithin athirty licensedays orafter for a license renewal is denied, the divisiondate shallof state the reasons for the denial.

The applicantdivision mayshall reapplynot withincharge thirtya daysfee efor ea 17reapplication aftermade thewithin datethat ofperiod. the denial.

TheSECTION division10. shall not charge a e e n d 18 fee for a reapplication made within that period.

=[NEW =MATERIAL l ] 19LICENSE SECTIONTRANSFER--NOTICE 10.OF CHANGES.-- A.

[NEWA MATERIALlicense ]issued LICENSEpursuant TRANSFER--NOTICEto OFthe aTobacco lh rProducts iAct 20shall CHANGES.--not tbe etransferred afrom the licensee to g o t A.hr another person.

Ag license issued pursuant to the Tobacco m m 21 e di rk eB. 22 Products Act shall not be transferred from the licensee to c e r c 23 another person.

eThe transfer of a nlicense from one location to h r i s another may be approved by the division, provided that the h , t, licensee shall submit an application for license location e u g e b 24l B.e e h transfer to the division for review.

The transferdivision ofshall aallow licensen fromd oned locationi to= u= [o anotherh maythe betransfer approvedunless byany of the division,conditions provided thatin theSections .216665.1GLGl -] 12b -,d licenseei shalla submitº ane application4 forand license9 locationof transfer to the divisionTobacco forProducts review.Act apply.

Ther divisioni shall= allowr thet transfere unlessw anyd ofm thea conditionsn providedo inSECTION Sections11. 4 and 9 of the Tobacco Products Act apply.

SECTION[NEW 11.MATERIAL ] TOBACCO PRODUCTS d m :

[NEWb MATERIALe ]d TOBACCOs PRODUCTSº o t n = .216665.1GLGAIC February 13, 2020 (10:34am) s k m e - 13 - e a n e d r e l u [ A d ADMINISTRATION FUND--CREATED--PURPOSE.--The "tobacco products administration fund" is created as a nonreverting fund in the state treasury.

Disbursements from the fund shall be made by warrant of the secretary of finance and administration pursuant to e e 17 vouchers signed by the superintendent of regulation and e e n d 18 licensing or the superintendent's authorized representative.

= = l ] 19 SECTION 12.

[NEW MATERIAL ] FEES AND ADMINISTRATIVE a l r i 20 PENALTIES RETAINED BY THE DIVISION.--ApplicationDIVISION.--HTRCºApplication»HTRC HTRCºAll»HTRC fees and t e a t administrative penalties collected by h the division pursuant to m m 21 e d r e 22 the Tobacco Products Act shall be depositedg intoo thet tobaccohr cdeposited einto rthe ctobacco 23 products administration fund.

g e ai nk b 24 SECTION 13.

[NEW MATERIAL ] HEARING PROCEDURE.--If the uh [r i s division suspends or revokes a license or imposes an .216665.1GLGh -, 13t, -e u g administrative penalty against a licensee, the licensee shall e b l e e h be entitled to a hearing pursuant to the rules promulgated by n d d i = = o h the division.

The hearing shall be conducted by the director l ] b ,d i a º e or a hearing officer appointed by the director and shall be r i = r t e w d m a n o held in the county in which the licensee is located.

Hearings shalld bem open: to the public.

b e d s º o t n = .216665.1GLGAIC February 13, 2020 (10:34am) s k m e - 14 - e a n e d r e l u [ A d shall be open to the public.

Except as provided in Subsection C of this section, evidence of the age and identity of a person attempting to procure tobacco products in person shall be shown e e 17 by a valid document that contains a picture of that person and e e n d 18 is issued by a federal, state, county, municipal orHTRCº foreign, =tribal»HTRC =or lforeign ] 19 government, including a motor vehicle driver's license or an a l r i 20 identification card.

t e a t C.

For each sale made through a delivery sales mh m 21 e d r e 22 method, age verification shall be completed through an cu e» r c 23 independent, third-party age verification service that et ah ng be 24l i establishes that a consumer is of legal age by comparing uh [r i s information available from public records to personal .216665.1GLGh -, 14e -h information entered by the consumer during the ordering t u g e b l e e , gh process.

n d d i = = o h D.

The following are defenses for a retailer or l ] b ,d i a º r distributor accused of selling or distributing tobacco products e r = t e w d m a n o to a person who is a minor:

(1)d them consumer: produced a driver's license or an identification card in accordance with Subsection B of this section indicating that the consumer was of legal age to make the purchase;

b r e t º o t n = .216665.1GLGAIC February 13, 2020 (10:34am) s k m e - 15 - e a n e d r e l u [ A d (1) the consumer produced a driver's license or an identification card in accordance with Subsection B of this section indicating that the consumer was of legal age to make the purchase;

[NEW MATERIAL ] VENDING MACHINES--RESTRICTIONS ON SALES OF TOBACCO PRODUCTS.-- e e 17 A.

Except as provided in SubsectionHTRCºSubsection BB»HTRC ofHTRCºSubsections thisB eand eC»HTRC nof dthis 18 section, a retailer selling goods at a retail location in New = = l ] 19 Mexico shall not use a self-service display for tobacco a l r i 20 products.

t e a t B.

Tobacco products may be sold by vending machines m m 21 e d r e 22 only in age-controlled locations where minors are not c e r c 23 permitted.

e a n b 24 SECTION 16.

[NEW MATERIAL ] DISTRIBUTION OF TOBACCO u [ PRODUCTS AS FREE SAMPLES PROHIBITED.-- .216665.1GLG - 15 - A.

A person shall not provide free samples of tobacco products without the express written approval of the director.

Tobacco products may be sold by vending machines h only in age-controlled locations where minors are not g o t hr permitted.

g e i k HTRCº C.

The sales and display of cigars may be h r i s allowed only in age-controlled locations where minors are not h , t, e u g permitted.»HTRC e b l e e h SECTION 16.

[NEW MATERIAL] DISTRIBUTION OF TOBACCO n d d i = = o h PRODUCTS AS FREE SAMPLES PROHIBITED.-- l ] b ,d i a º e r i = r A.

A person shall not provide free samples of t e w d m a n o tobacco products without the express written approval of the d m :

b e d s º o t n = .216665.1GLGAIC February 13, 2020 (10:34am) s k m e - 16 - e a n e d r e l u [ A d director.

B.

"A PERSON WHO SELLS TOBACCO PRODUCTS TO A PERSON LESS THAN 21 YEARS OF AGE IS SUBJECT TO A FINE OF UP TO $1,000 AND IS GUILTY OF A CRIMINAL MISDEMEANOR.".

e e 17 SECTION 18.

[NEW MATERIAL ] DELIVERY SALES.-- e e n d 18 A.

Before a retailer ships tobacco products for a =h = l ] 19 delivery sale, the retailer shall receive full payment for the ag lo rt ihr 20 purchase and shall accept payment from the consumer by a:

tg e ai tk (1) check drawn on an account in the mh m 21 e d r ei 22s consumer's name;

ch e, rt, c 23 (2) credit card issued in the consumer's name;

e au ng e b 24l e e h or un [d d i = = o h (3) debit card issued in the consumer's name.

.216665.1GLGl -] 16b -,d i a º e B.

A retailer may ship tobacco products only to a r i = r t e w d m a n o consumer whose age has been verified pursuant to Section 14 of thed Tobaccom Products: Act.

b e d s º o t n = .216665.1GLGAIC February 13, 2020 (10:34am) s k m e - 17 - e a n e d r e l u [ A d the Tobacco Products Act.

[NEW MATERIAL ] CRIMINAL PENALTIES.--In addition to any administrative penalties that may be imposed by the division, a personHTRCºperson»HTRC HTRCºretailer»HTRC who violates Section 3 or SectionsHTRCºSections 16 throughthrough»HTRC 18 of the Tobacco Products Act is guilty of a misdemeanor and shall be sentenced pursuant to the provisions of Section 31-19-1 NMSA 1978.

[NEW MATERIAL ] CRIMINAL PENALTIES--UNLICENSED ACTIVITIES.--A person who manufactures, distributes or sells tobacco products without a license required pursuant to the Tobacco Products Act is guilty of a misdemeanor and shall be e e 17 sentenced in accordance with the provisions of Section 31-19-1 e e n d 18 NMSA 1978.

Contraband tobacco products seized by the division =h = l ] 19 or by a law enforcement agency as evidence of unlicensed ag lo rt ihr 20 activities shall be retained as evidence to the extent tg e ai tk necessary.

Contraband tobacco products no longer needed as mh m 21 e d r ei 22s evidence shall be destroyed.

ch e, rt, ce 23u g SECTION 21.

[NEW MATERIAL ] MANUFACTURERS, DISTRIBUTORS e ab nl be 24e h AND RETAILERS--VIOLATIONS--LICENSE SUSPENSION OR REVOCATION-- un [d d i = = o h ADMINISTRATIVE PENALTIES.--The division may suspend or revoke a .216665.1GLGl -] 17b -,d i a º e license of a licensee, require the use of identification verificationr softwarei for= ar designatedt periode ofw timed orm impose an administrative penalty against a licenseen ino anverification amountsoftware notfor toa exceeddesignated tenperiod thousand dollars ($10,000), or any combination thereof, if the division finds that the licensee, an employee of thetime licensee or aimpose contractord actingm on: behalf of the licensee has violated a provision of the Tobacco Products Act;

b e d s º o t n = .216665.1GLGAIC February 13, 2020 (10:34am) s k m e - 18 - e a n e d r e l u [ A d an administrative penalty against a licensee in an amount not to exceed ten thousand dollars ($10,000), or any combination thereof, if the division finds that the licensee, an employee of the licensee or a contractor acting on behalf of the licensee has violated a provision of the Tobacco Products Act;

[NEW MATERIAL ] MONITORED COMPLIANCE-- INSPECTIONS.--The alcoholic beverage control division of the regulation and licensing department, the department of public safety and the appropriate law enforcement authorities in each county and municipality may conduct random, unannounced e e 17 inspections of facilities where tobacco products are sold, e e n d 18 manufactured or distributed to ensure compliance with the =h = l ] 19 provisions of the Tobacco Products Act.

au l» r i 20 SECTION 23.

[NEW MATERIAL ] AUTHORITY OF DEPARTMENT OF t h g e al ti PUBLIC SAFETY.-- mh m 21 e d r ei 22s A.

The department of public safety has authority ch , e rh c 23 over all investigations and enforcement activities required et au ng e b 24l e e , gh under the Tobacco Products Act, except for those provisions un [d d i = = o h relating to the issuance, denial, suspension or revocation and .216665.1GLGl -] 18b -,d i a º r administrative sanctions of licenses unless its assistance is e r = t e w d m a n o requested by the director.

B.d m :

b r e t º o t n = .216665.1GLGAIC February 13, 2020 (10:34am) s k m e - 19 - e a n e d r e l u [ A d B.

The director may request the department e e 17 of public safety to provide investigatory and enforcement e e n d 18 support as deemed necessary.

=h = l ] 19 SECTION 25.

[NEW MATERIAL ] ADMINISTRATIVE AUTHORITY AND au l» r i 20 POWERS.-- t h g e al ti A.

For the purpose of administering the licensing mh m 21 e d r ei 22s provisions of the Tobacco Products Act, the director is ch , e rh c 23 authorized to examine and to require the production of any et au ng e b 24l e e , gh pertinent records, books, information or evidence, to require un [d d i = = o h the presence of any person and to require that person to .216665.1GLGl -] 19b -,d i a º r testify under oath concerning the subject matter of the inquiry e r = t e w d m a n o and to make a permanent record of the proceedings.

B.d m :

b r e t º o t n = .216665.1GLGAIC February 13, 2020 (10:34am) s k m e - 20 - e a n e d r e l u [ A d B.

After service of a subpoena upon a person, if a person neglects or refuses to appear or produce records or other evidence in response to the subpoena or neglects or refuses to give testimony, as required, the director may invoke e e 17 the aid of the district courts in the enforcement of the e e n d 18 subpoena.

In appropriate cases, the court shall issue its =h = l ] 19 order requiring the person to appear and testify or produce the au l» r i 20 books or records and may, upon failure of the person to comply t h g e al ti with the order, punish the person for contempt.

mh m 21 e d r ei 22s SECTION 26.

[NEW MATERIAL ] ADMINISTRATIVE RULES AND ch , e rh c 23 ORDERS--PRESUMPTION OF CORRECTNESS.-- et au ng e b 24l e e , gh A.

The director shall issue and file as required by un [d d i = = o h law all rules and orders necessary to perform the duties and to .216665.1GLGl -] 20b -,d i a º r administer the applicable provisions of the Tobacco Products e r = t e w d m a n o Act.

B.d m :

b r e t º o t n = .216665.1GLGAIC February 13, 2020 (10:34am) s k m e - 21 - e a n e d r e l u [ A d B.

Distribution of the rule shall be made to e e 17 interested persons and their comments shall be invited.

After e e n d 18 the proposed rule has been on file for thirty days and a public =h = l ] 19 hearing has been held, the director may issue the rule as a ag lo rt ihr 20 final rule by filing as required by law.

tg e ai tk D.

A rule or order issued by the director is mh m 21 e d r ei 22s presumed to be a proper implementation of the licensing ch e, rt, c 23 provisions of the Tobacco Products Act.

e au ng e b 24l e e h E.

All rules and orders shall be applied un [d d i = = o h prospectively only.

.216665.1GLGl -] 21b -,d SECTIONi a º e HTRCºSECTION 27.

[NEW MATERIALMATERIAL] ] EXPLICIT NONPREEMPTION.--Nothingr ini the= Tobaccor Productst Acte shallw bed construedm toa preemptn oro NONPREEMPTION.--Nothing in anythe mannerTobacco precludeProducts specificAct provisionsshall ofbe ad countym or: municipal ordinance;

providedb thate thed provisionss ofº sucho countyt orn municipal= ordinance.216665.1GLGAIC areFebruary inclusive13, of2020 all(10:34am) minimums standardsk andm e - 22 - e a n e d r e l u [ A d construed to preempt or in any manner preclude specific provisions of thea Tobaccocounty Productsor Act.municipal ordinance;

SECTIONprovided 28.that the provisions of such county or municipal ordinance are inclusive of all minimum standards and provisions of the Tobacco Products Act.»HTRC HTRCºSECTION 27.

[NEW MATERIALMATERIAL] ]PREEMPTION.--When APPLICABILITY.--Thea provisionsmunicipality ofor thecounty, Tobaccoincluding Productsa Acthome dorule notmunicipality applyor toan theurban lawfulcounty, purchaseadopts oran useordinance byor a minorregulation pertaining to sales of atobacco tobacco-cessationproducts, productthe approvedordinance byor regulation shall be consistent with the federalprovisions foodof andthe drugTobacco administration.Products Act.»HTRC SECTION 28.

[NEW MATERIAL] APPLICABILITY.--The provisions of the Tobacco Products Act do not apply to the lawful purchase or use by a minor of a tobacco-cessation product approved by the federal food and drug administration.

APPROPRIATION.--Three hundred fifty thousand h dollars ($350,000) is appropriated from the general fund to the u » r t h HTRCº tobacco products administration fundfund»HTRC HTRCºalcoholic g e l i beverage control division of the regulation and licensing h r i s department»HTRC for expenditure in fiscal year 2021 and h , e h t u g subsequent fiscal years to administer the provisions of the e b l e e , gh Tobacco Products Act.

Any unexpended or eunencumbered ebalance 17n unencumberedd balanced i = = o h remaining at the end of a fiscal year e e n d 18 shall not revert to the l ] b ,d i a º r e r = general fund.

=t =e lw ]d 19m a n o SECTION 30.

REPEAL.--Sections 30-49-1 through 30-49-13 ad l r i 20 NMSA 1978 (being Laws 1993, Chapter 244, Sections 1 through 12 t e a t m m: 21 and Laws 2015, Chapter 98, Section 12, as amended) are e d r e 22 repealed.

cb r e rt cº o t n = .216665.1GLGAIC February 13, 2020 (10:34am) s k m e - 23 SECTION- 31.e a n e d r e l u [ A d NMSA 1978 (being Laws 1993, Chapter 244, Sections 1 through 12 and Laws 2015, Chapter 98, Section 12, as amended) are repealed.

EFFECTIVESECTION DATE.--The31. effective date of the e a n b 24 provisions of this act is July 1, 2020.

uEFFECTIVE [DATE.--The -effective 22date -of .216665.1GLGthe provisions of HTRCº Sections 1 through 28 and 30 of»HTRC this act is HTRCºJuly 1, 2020»HTRC HTRCºJanuary 1, 2021»HTRC.

- 24 - » g o » r h t i k l i g t h s , e h t l i w l b l e e , g n d l h = = b , a l º d i a r e r = , a t e d m a n o d m :

b r e t º o t n = .216665.1GLGAIC February 13, 2020 (10:34am) s k em e e a n e d r e l u [ A d