Substitute For

SENATE BILL NO. 782

"Youth tobacco act,"

by amending the title and section 4 (MCL 722.644), as amended by 2019 PA 18, and by adding section 2d.

the people of the state of michigan enact:

TITLE

An act to prohibit the selling, giving, or furnishing of tobacco products, vapor products, and alternative nicotine products to minors; to prohibit the purchase, possession, or use of tobacco products, vapor products, and alternative nicotine products by minors; to regulate the retail sale of tobacco products, vapor products, alternative nicotine products, and liquid nicotine containers; to license persons that sell tobacco products, vapor products, or alternative nicotine products; to prescribe penalties and provide sanctions; to promulgate rules; and to prescribe the powers and duties of certain state agencies and departments.

Sec. 2d. (1) Beginning October 1, 2020, a person shall not sell a tobacco product, vapor product, or alternative nicotine product at retail unless that person is licensed under this section.

(2) An application for a license must be in a form prescribed by the department and signed under penalty of perjury. A person shall obtain a separate license for each location where a tobacco product, vapor product, or alternative nicotine product is sold. A person who sells a tobacco product, vapor product, or alternative nicotine product at more than 1 location may submit a single application to the department that lists each location where a vapor product is sold.

(3) The department shall grant a license to a person who submits a completed application and pays a licensing fee of not more than $100.00 per location to the department.

(4) The department shall issue a certificate of licensure to a person who is granted a license under this act.

(5) A person shall display the certificate of licensure, or a duplicate copy of the certificate of licensure, prominently and where visible to the public in the person's place of business where a tobacco product, vapor product, or alternative nicotine product is sold.

(6) Each license is valid for 1 year and must be renewed annually before December 31 of the year that the license expires. The cost of renewing the license must not exceed $75.00.

(7) The department may deny, suspend, revoke, or refuse to renew a license for good cause. For purposes of this subsection, "good cause" consists of instances in which the department determines that a person has done any of the following:

(a) Submitted a false or fraudulent application for a license.

(b) Provided a false statement in the application for a license.

(d) Displayed a false or fraudulent certificate of licensure in a place of business where a tobacco product, vapor product, or alternative nicotine product is sold.

(8) The department shall not deny, suspend, revoke, or refuse to renew a person's license under this section unless the person is given an opportunity for a hearing. A hearing and an appeal must be conducted under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.

(9) The department may promulgate rules under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, to implement this section.

(10) In addition to any other remedies provided by law, if the department determines that a person violated this section, the department may assess an administrative fine of not more than $500.00.

(11) The department shall use the fees and fines collected under this section for the administration and enforcement of this act.

(12) As used in this section:

(a) "Certificate of licensure" means a document issued by the department as evidence of authorization to sell a tobacco product, vapor product, or alternative nicotine product.

(b) "Department" means the department of treasury.

Sec. 4. As used in this act:

(a) "Alternative nicotine product" means a noncombustible product containing nicotine that is intended for human consumption, whether chewed, absorbed, dissolved, or ingested by any other means. Alternative nicotine product does not include a tobacco product, a vapor product, food, or a product regulated as a drug or device by the United States Food and Drug Administration under 21 USC 351 to 360fff-7.

(b) "Minor" means an individual who is less than 18 21 years of age.

(c) "Person who sells vapor products or alternative nicotine products at retail" means a person whose ordinary course of business consists, in whole or in part, of the retail sale of vapor products or alternative nicotine products.

(d) "Person who sells tobacco products at retail" means a person whose ordinary course of business consists, in whole or in part, of the retail sale of tobacco products subject to state sales tax.

(i) Until September 30, 2020, a person whose ordinary course of business consists, in whole or in part, of the retail sale of a tobacco product subject to state sales tax under the general sales tax act, 1933 PA 167, MCL 205.51 to 205.78, a vapor product, or an alternative nicotine product.

(ii) Beginning October 1, 2020, a person whose ordinary course of business consists, in whole or in part, of the retail sale of a tobacco product subject to state sales tax under the general sales tax act, 1933 PA 167, MCL 205.51 to 205.78, a vapor product, or an alternative nicotine product, and who is licensed under section 2d.

(d) (e) "Public place" means a public street, sidewalk, or park or any area open to the general public in a publicly owned or operated building or public place of business.

(e) (f) "Tobacco product" means a product that contains tobacco and is intended for human consumption, including, but not limited to, a cigarette, noncigarette smoking tobacco, or smokeless tobacco, as those terms are defined in section 2 of the tobacco products tax act, 1993 PA 327, MCL 205.422, and a cigar.

(f) (g) "Use a tobacco product, vapor product, or alternative nicotine product" means to smoke, chew, suck, inhale, or otherwise consume a tobacco product, vapor product, or alternative nicotine product.

(g) (h) "Vapor product" means a noncombustible product that employs 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 from nicotine or any other substance, other than marihuana, and the use or inhalation of which simulates smoking. Vapor product includes an electronic cigarette, electronic cigar, electronic cigarillo, electronic pipe, or similar product or device and a vapor cartridge or other container of nicotine or other substance, other than marihuana, 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 a product regulated as a drug or device by the United States Food and Drug Administration under 21 USC 351 to 360fff-7. As used in this subdivision, "marihuana" means that term as defined in section 7106 of the public health code, 1978 PA 368, MCL 333.7106. For purposes of this definition, "marihuana" and "marijuana" are synonymous.

Enacting section 1. This amendatory act does not take effect unless all of the following bills of the 100th Legislature are enacted into law:

(a) Senate Bill No. 781.

(b) Senate Bill No. 783.