Bill > A5120

Introduced Session

This bill increases the penalties that apply to any retailer that sells tobacco or vapor products to a person younger than 21 years of age. Current law provides that a person who violates the prohibition against underage sales is liable to a civil penalty of not less than $250 for a first offense, not less than $500 for a second offense, and $500 for a third or subsequent offense. In addition, a person's cigarette retail dealer license may be suspended following a first violation or revoked following a second or subsequent violation, based on the recommendation of the municipality and following a hearing, provided that the current law allows for the imposition of an administrative penalty in lieu of suspension or revocation. The bill will increase these penalties to $500 for a first offense, $1,000 for a second offense, and $2,000 for a third or subsequent offense, and clarify that all penalties are assessed against the retailer where the prohibited sale is made, and not against an employee who makes a prohibited sale. The bill further provides for mandatory three-year suspension of a retail dealer or vapor business license following a third and each subsequent violation, except that a license may be revoked following a fourth or subsequent violation, based on the recommendation of the municipality. A retailer subject to adverse licensure action will also be subject to administrative penalties. The bill removes language authorizing the assessment of an administrative penalty in lieu of license suspension or revocation. Current law also provides that a person who sells a tobacco or vapor product to a person under 21 years of age is liable to the $500 fine applicable to petty disorderly persons offenses, which fine is doubled for a subsequent offense. The bill increases this fine by providing that a retailer that makes a prohibited underage sale is liable to the $1,000 fine applicable to disorderly persons offenses, which fine will still be doubled for a subsequent violation. Current law provides that a person who purchases tobacco products for someone younger than 21 years of age is guilty of a petty disorderly persons offense, which offense is punishable by imprisonment for up to 30 days, a fine of up to $500, or both. The bill provides that the offense also applies to the purchase of vapor products for someone younger than 21 years of age. The bill requires that, no later than 90 days after the effective date of the bill, all tobacco and vapor product retailers are to acquire and begin using an electronic age verification system to prevent sales of tobacco and vapor products to persons under age 21. The bill additionally requires that, unless the retailer restricts access to the retailer's establishment to persons age 21 years and older, all tobacco and vapor products are to be maintained in a manner that restricts public access to the products, which may include maintaining the products behind the sales counter, in a locked cabinet, or in an area of the establishment that is restricted to employees only. Current law requires all cigarette sales to take place in a face-to-face transaction unless the seller has ensured that all State taxes have been paid on the cigarettes and takes certain enumerated steps to verify that the purchaser is over 21 years of age. The bill establishes identical requirements for vapor products and adds a new requirement for mail order cigarettes and vapor products requiring age verification at the time of delivery. The bill revises the current requirement that vaping liquids be sold in child-resistant containers to additionally: (1) prohibit the sale of vaping liquids that contain nicotine in a concentration of more than two percent; (2) prohibit the sale of vaping liquids products that were mixed with any other substance by any entity other than the manufacturer; and (3) prohibit the sale of any vapor product that is not included in the database to be established pursuant to the bill. The current penalties for sale of a vaping liquid that is not in a child-resistant container are $250 for a first violation, $500 for a second violation, and $1,000 for a third or subsequent violation, in addition to possible license suspension or revocation. The bill makes these penalties applicable to any sale prohibited under the bill, and doubles the penalties to $500 for a first offense, $1,000 for a second offense, and $2,000 for a third or subsequent offense. In addition, a retailer will be subject to a mandatory three-year license suspension following a third and each subsequent violation, and a potential license revocation following a fourth or subsequent violation, if recommended by the municipality. Violators subject to adverse licensure action will also be subject to administrative penalties. The bill prohibits the sale of electronic smoking devices that are designed to mimic the appearance of another object, when the appearance of the electronic smoking device makes it difficult for the average person to determine, based on casual observance, whether the item is the object it is designed to mimic or an electronic smoking device. Prohibited designs will include, but not be limited to, devices designed to resemble a pen or other writing utensil, flash drive or universal serial bus drive, mobile phone, clothing, jewelry, cosmetic product, eating utensil, or personal hygiene product; however, it will not be prohibited to sell an electronic smoking device designed to resemble a product traditionally used for the consumption of tobacco, such as a cigarette, cigarette pack, pipe, cigar, or hookah. A violation of this prohibition will be punishable by a civil penalty of $1,000 for a first offense and $2,000 for a second or subsequent offense, plus a mandatory three-year license suspension following a third and each subsequent violation, and a possible license revocation following a fourth or subsequent violation, if recommended by the municipality. Violators subject to adverse licensure action will also be subject to administrative penalties. The bill clarifies that the various restrictions on the sale of tobacco and vapor products do not apply to any medical cannabis, paraphernalia, or related supplies dispensed to or on behalf of a registered medical cannabis patient by an alternative treatment center under the "Jake Honig Compassionate Use Medical Cannabis Act," P.L.2009, c.307 (C.24:6I-1 et al.). The bill requires the Commissioner of Health to establish standards for compliance inspections, including undercover compliance purchases, conducted by the Department of Health and by local boards of health, which may include annual reporting concerning the results of compliance inspections. Current law provides for a $50 licensure fee for tobacco retail dealers and vapor businesses. The bill increases these licensure fees to $500. The bill further authorizes municipalities to assess an additional permit fee against vapor businesses, provided that the full amount of any permit fees collected, less administrative costs, are to be used to fund compliance inspections, including undercover compliance purchases, made by the local health agency. The bill prohibits pharmacy practice sites, and business entities that have a pharmacy practice site located on the premises, from selling or offering for sale any tobacco product, including vapor products. A violation of this prohibition will be punishable by a civil penalty of $1,000 for a first offense and $2,000 for a second or subsequent offense. In addition, pharmacy practice sites will be subject to disciplinary action by the Board of Pharmacy, and business entities with a pharmacy practice site located on the premises will be subject to disciplinary action by any agency, board, or office having jurisdiction. The prohibition will not apply to smoking cessation products approved by the federal Food and Drug Administration, and will not restrict the dispensing of medical cannabis and related supplies if the pharmacy holds a medical cannabis dispensary permit. The bill requires the Director of the Division of Taxation to adopt, by regulation, requirements for the establishment of an electronic database that will be used to track all vapor products sold in New Jersey for the purpose of ensuring product integrity and compliance with State and federal law. Additionally, the director will be required to adopt requirements for the development of a standardized tracking feature to be included on all vapor products sold in the State that may be used to identify illicit, counterfeit, adulterated, or otherwise illegal or unsafe vapor products in the State.

AI Summary

Committee Categories

Herbert Conaway (D)*,  Valerie Vainieri Huttle (D)*, 

Introduced, Referred to Assembly Health Committee (on 12/10/2020)

Official Document