Bill > A4874

Introduced Session

This bill establishes certain requirements for licensure for manufacturers, wholesale dealers, distributors, and retail dealers of vapor products, which are defined to mean electronic smoking devices and related products, including the liquid nicotine cartridges used in the devices. Specifically, the bill will require annual licensure for each person engaging in the business of manufacturing, purchasing, selling, consigning, or distributing vapor products. Licenses will lapse on March 31 of the period for which they are issued and will be continued annually, provided the licensee pays the licensure fees and meets the requirements for continued licensure. The Director of the Division of Consumer Affairs in the Department of Law and Public Safety will be charged with administering and enforcing the provisions of the bill. The annual licensure fees established under the bill are as follows: $10 for a manufacturer license; $5 for a manufacturer representative license; $250 for a wholesale dealer license; $350 for a distributor license; $50 for a retail dealer license; and $50 for a retail dealer operating a vapor product vending machine license. Additionally, a fee of $1 will apply for issuance of an amended or duplicate license or certificate of licensure. Of the $50 fee paid to the director for issuance of each retail dealer license and each vending machine license, $30 is to be credited to the special projects and development fund in the Department of Health established pursuant to section 7 of P.L.1966, c.36 (C.26:2F-7), and $5 is to be credited each year to the division for administrative costs. The director is to determine and certify to the State Treasurer, on a monthly basis, the amount of revenues which are to be credited to the special projects and development fund in the Department of Health. In the case of a distributor who sells or intends to sell vapor products at two or more places of business, whether established or temporary, a separate license will be required for each place of business. In the case of a wholesale dealer who sells or intends to sell vapor products at 10 or more places of business, whether established or temporary, a separate license will be required for each place of business. In the case of a retail dealer who sells or intends to sell vapor products at two or more places of business, whether established or temporary, or whether in the same building or not, a separate license will be required for each place of business. A separate license will be required for each vending machine operated by a retail dealer. Each license or certificate of licensure issued under the bill is to be exhibited in the place of business for which it is issued and in such manner as may be prescribed by the director. Licensees will be required to notify the director of a change in address within 30 days of the change, or the license will be subject to revocation. The bill specifies that no person, including a licensed retail dealer, may create, produce, or modify any vapor product or nicotine solution for the purposes of sale or distribution within or without the State unless that person is a licensed manufacturer. Licenses issued under the bill may not be transferred or assigned, except that: (1) a vending machine license may be transferred to another machine owned by the retail dealer; and (2) a wholesale dealer or distributor license may be transferred or assigned, provided the assignee or transferee otherwise qualifies for licensure and pays a $5 transfer fee. In the case of death, bankruptcy, receivership, or incompetency of a licensee, or if for any other reason the business of the licensee devolves upon another by operation of law, the director will be permitted to extend the license for a limited time to the executor, administrator, trustee, receiver, or person upon whom the license devolved. The director may, upon notice and a hearing, suspend or revoke a license issued under the bill for a violation of the bill or any other provision of law, including, but not limited to, acting in a capacity that exceeds the licensee's scope of licensure. A disciplinary proceeding or action initiated under the bill will not be barred or abated by the expiration, transfer, surrender, continuance, renewal, or extension of the license that is the subject of the action or proceeding. The bill additionally revises various statutory provisions to include updated references to the licensure provisions established under the bill and to harmonize the terminology used throughout the statutes.

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Herbert Conaway (D)*, 

Reported out of Assembly Committee, 2nd Reading (on 06/01/2017)