SENATE BILL NO. 782
February 05, 2020, Introduced by Senator
BULLOCK and referred to the Committee on Regulatory Reform.
A bill to amend 1915 PA 31, entitled
"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:
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 vapor 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 June 1, 2020, a
person shall not sell a vapor product 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 vapor product is sold. A person who sells a vapor 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 the licensing fee to the department. The department shall
establish a licensing fee for a license to offset the administrative costs of
the department in implementing this section, but the cost of the licensing fee
must not exceed $25.00 per license.
(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 vapor 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.
(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.
(c)
Possessed a false or fraudulent certificate of licensure.
(d)
Displayed a false or fraudulent certificate of licensure in a place of business
where a vapor 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.
(a)
"Certificate of licensure" means a document issued by the department
as evidence of authorization to sell a vapor product.
(b)
"Department" means the department of licensing and regulatory
affairs.
(c)
"License" means an authorization issued by the department under this
section to sell a vapor product.
(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.
(c)
"Person who sells alternative nicotine products at retail" means a
person whose ordinary course of business consists, in whole or in part, of the
retail sale of an alternative nicotine product.
(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.
(e)
"Person who sells vapor products at retail" means:
(i) Until May 31, 2020, a person whose
ordinary course of business consists, in whole or in part, of the retail sale
of a vapor product.
(ii) Beginning June 1, 2020, a person
whose ordinary course of business consists, in whole or in part, of the retail
sale of a vapor product and who is licensed under section 2d.
(f)
(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.
(g)
(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.
(h)
(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.
(i)
(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, 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 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.
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.
(c) Senate Bill No. 784.