Bill > SSB1128

Introduced Session

This bill relates to the regulation of certain tobacco products. The bill requires a person who engages in the business of a device retailer through a retail outlet or delivery sales to receive and hold a permit as a tobacco retailer, comply with provisions applicable to a tobacco retailer, sell tobacco products in addition to devices at the retail outlet or through delivery sales, and hold a permit as a device retailer. The bill provides for the application for and issuance of device retailer permits by cities and counties depending upon the location of the retailer; requires the payment of a fee for each permit; and provides for annual expiration of the permits. The bill also requires device retailer permit holders to keep certain records and submit reports to the department of revenue; establishes requirements for the sale of devices including that a device retailer shall not sell, give, or otherwise supply a device to any person under 21 years of age S.F. _____ and must verify the age of all purchasers of devices; and provides that a device retailer shall only display and sell devices in a location where the device retailer ensures that the devices are not visible to a person younger than 21 years of age and where no person younger than 21 years of age is present or permitted to enter at any time. The bill establishes requirements for the delivery sale of devices including permit requirements and restrictions including all devices delivered by delivery sale directly to a resident of this state shall be delivered by a holder of a device delivery sale permit; that a device delivery sale permit holder shall only deliver devices by delivery sale to a resident of this state who is at least 21 years of age, for the resident’s personal use and consumption and not for resale; all devices delivered by delivery sale directly to a resident of this state shall be conspicuously labeled with the words “CONTAINS DEVICE: SIGNATURE OF PERSON AGE 21 OR OLDER REQUIRED FOR DELIVERY” or with an alternative wording preapproved by the director of revenue; a device delivery sale permit holder shall obtain valid proof of identity and age prior to delivery, and shall obtain the signature of a person age 21 or older as a condition of delivery; and that a device delivery sale permit holder shall maintain records of devices delivered which include certain information that must be maintained for five years. The bill provides for the imposition, collection, and payment of sales and excise taxes on the retail sale, including delivery sales, of devices. Moneys from permit fees, with the exception of city and county permit fees, and excise taxes imposed and collected under the bill, are to be deposited in the specialty courts program fund created in the bill and are appropriated to the governor’s office of drug control policy to be used for the purpose of the support of specialty courts to address underlying substance use disorder-related and mental health-related issues that contribute to the contact of S.F. _____ individuals with the justice system. The bill provides penalties for violations of the bill. The applicable provisions of Code chapter 453A (cigarette and tobacco taxes and regulation of alternative nicotine products and vapor products) including penalties and license suspension and revocation provisions and penalties applicable to those other than permit holders apply to tobacco retailers who are also device retailer permit holders or device delivery sale permit holders as well as to those who are not permit holders. Additionally, a person holding a device retailer permit or a device delivery sale permit who violates the bill by marketing or selling a device to be used or attempted to be used or that is capable of use in combination with tobacco, hemp, other plant materials, or a controlled substance, to knowingly or intentionally and primarily inhale the material or controlled substance through combustion, commits a serious misdemeanor and is also subject to permit revocation. A serious misdemeanor is punishable by confinement for no more than one year and a fine of at least $430 but not more than $2,560. If a person holding a device retailer permit or a device delivery sale permit willfully violates the bill, the department shall revoke the permit upon notice and hearing. In addition to any other applicable penalties, a device retailer permit holder or a device delivery sale permit holder who violates the Code chapter is subject to a civil penalty of $500 for a first violation, a civil penalty of $1,000 for a second violation, and a third violation constitutes grounds for suspension or revocation of the permit. A person other than a device retailer permit holder or a device delivery sale permit holder, including a person who engages in the business of a device retailer at a place of business or through delivery sales without holding an applicable, valid permit under the bill, who violates the Code chapter commits a serious misdemeanor and is also subject to a civil penalty of $1,000 for a first violation, a civil penalty of $2,000 for S.F. _____ a second violation, and a civil penalty of $5,000 for a third or subsequent violation.

Committee Categories

No sponsors listed

Other Sponsors (1)

Committee report approving bill, renumbered as SF 345. (on 02/21/2023)

Official Document