HB 242 - AS AMENDED BY THE HOUSE

9Feb2017... 0037h

2017 SESSION

17-0457

05/09

HOUSE BILL 242

AN ACT relative to the definition and regulation of e-cigarettes.

SPONSORS: Rep. McBeath, Rock. 26

COMMITTEE: Commerce and Consumer Affairs

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AMENDED ANALYSIS

This bill changes the definition of e-cigarette to provide that the device may or may not contain nicotine.  The bill also includes e-cigarettes in the sale and licensure requirements of RSA 176 and RSA 178.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

9Feb2017... 0037h 17-0457

05/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Seventeen

AN ACT relative to the definition and regulation of e-cigarettes.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1  Youth Access To and Use of Tobacco Products; Definition of E-Cigarette.  Amend RSA 126-K:2, II-a to read as follows:

II-a.  "E-cigarette'' means any electronic smoking device composed of a mouthpiece, a heating element, a battery, and electronic circuits that [provides a vapor of pure] may or may not contain nicotine [mixed with propylene glycol to the user as the user simulates smoking].  This term shall include such devices whether they are manufactured as e-cigarettes, e-cigars, or e-pipes, or under any other product name.

2  Alcoholic Beverages; Definition of E-Cigarette Added.  Amend RSA 175:1, XXXI-a and XXXI-aa to read as follows:

XXXI-a.  "E-cigarette'' means any electronic smoking device composed of a mouthpiece, a heating element, a battery, and electronic circuits that may or may not contain nicotine.  This term shall include such devices whether they are manufactured as e-cigarettes, e-cigars, or e-pipes, or under any other product name.

XXXI-aa. "Farmers' market'' means an event or series of events at which 2 or more vendors of agricultural commodities gather for purposes of offering for sale such commodities to the public.  Commodities offered for sale must include, but are not limited to, products of agriculture, as defined in RSA 21:34-a.  "Farmers' market'' shall not include any event held upon any premises owned, leased, or otherwise controlled by any individual vendor selling therein.

[ XXXI-aa.] XXXI-aaa.  "Food'' means solid nutritive material as distinguished from drink.

3  Definition of License.  Amend RSA 175:1, XXXIX to read follows:

XXXIX.  "License'' means the authority granted by the commission to engage in the sale of liquor, wine, beverages, [or] tobacco products, or e-cigarettes otherwise unlawful unless evidenced by such document.

4  Definition of Retailer.  Amend RSA 175:1, LIX-a to read as follows:

LIX-a.  "Retailer,'' when used with respect to tobacco products or e-cigarettes, means any person who sells tobacco products or e-cigarettes to consumers, and any vending machine in which tobacco products are sold.

5  The Liquor Commission; Liquor Investigator.  Amend RSA 176:9, III to read as follows:

III.  The commissioner, deputy commissioner, assistant, or liquor investigator may enter any place where liquor, beverages, [or] tobacco products, or e-cigarettes are sold or manufactured, at any time, and may examine any license or permit issued or purported to have been issued under the terms of this title.  They shall make complaints for violations of this title.

6  Liquor Licenses and Fees; Licenses Required.  Amend RSA 178:1, VI to read as follows:

VI.  No person shall sell tobacco products or e-cigarettes to individuals or the public in any method or manner, directly or indirectly, or keep for sale any tobacco products or e-cigarettes without first registering to do business with the secretary of state and obtaining a license for such activity under the provisions of this title.  The commission shall provide a list of persons licensed under this section to the commissioner of the department of revenue administration upon request.

7  Licenses Authorized.  Amend RSA 178:2, I to read as follows:

I.  The commission may issue licenses to individuals, partnerships, limited liability companies and partnerships, or corporations but not to unincorporated associations, on applications duly made therefor for the manufacture, warehousing, sale, offer for sale, or solicitation of orders for sale of liquor or beverages and for retail sales of tobacco products or e-cigarettes within the state, subject to the limitations and restrictions imposed by this title.  The commission shall keep a full record of all applications for licenses, of all recommendations for and remonstrances against the granting of licenses, and of the action taken on such applications.

8  Combination License.  Amend RSA 178:18 to read as follows:

178:18  Combination License.  

I.  Off-premises licenses shall be issued only for grocery and drug stores not holding on-premises licenses.  Such licenses shall authorize the licensees to sell fortified wine, table wine, and beverages for consumption only off the premises designated in the licenses and not to other licensees for resale.  Such sale shall be made only in the immediate container in which the beverage, wine, or fortified wine was received by the off-premises combination licensee; except that in the case of the holder of a wholesale distributor license, beverages may be sold only in such barrels, bottles, or other containers as the commission may by rule prescribe.  Off-premises licenses may also authorize the licensee to sell tobacco products or e-cigarettes.  There shall be no restriction on the number of combination licenses held by any person.  The license shall authorize the licensee to transport and deliver beverages, tobacco products, e-cigarettes, and table or fortified wines ordered from and sold by the licensee in vehicles operated under the licensee's control or an employee's control.

II.  All sales of tobacco, e-cigarettes, beverages, fortified wines, and table wine shall be recorded on cash registers.  No additional registers shall be added during the remainder of the year without prior approval of the commission.  No rebate shall be allowed for cash registers discontinued during the license year.

III.  The commission may suspend the tobacco, e-cigarette, or alcohol sales portion of the license separately under the provisions of RSA 179:57; any revocation shall revoke the entire license.

9  Retail Wine License.  Amend RSA 178:19 to read as follows:

178:19  Retail Wine License.

I.  A retail wine license may be issued by the commission to any person operating a retail outlet in this state which shall allow the licensee to sell tobacco products, e-cigarettes, fortified wines, and table wines directly to individuals at retail on the premises for consumption off the premises; provided, however, that persons holding any license authorizing the sale of liquor or wine by the glass under this chapter shall sell the wines authorized pursuant to this section in a separate area of the premises from the areas licensed for on-premises consumption.  A separate license shall be required with respect to each place of business of an applicant.  The license shall authorize the licensee to transport and deliver fortified and table wines ordered from and sold by the commission and sold by the licensee in vehicles operated under the licensee's control or an employee's control.

II.  All sales of wine, [and] tobacco products, and e-cigarettes shall be recorded on cash registers.  No additional registers shall be added during the remainder of the year without prior approval of the commission.  No rebate shall be allowed for cash registers discontinued during the license year.

III.  On-premises licensees licensed under this chapter shall maintain separate rooms for storage, shelving, display, and sale of tobacco products, e-cigarettes, and fortified and table wine for consumption off the premises.  Such rooms shall be equipped with at least one cash register which shall be capable of separately registering wine sales, and such rooms shall have an attendant at all times while open for business.  Wine purchased for resale by virtue of the retail wine license shall be purchased on separate invoices from that wine intended for consumption in the dining room or lounge, and separate sales records shall be maintained for this purpose.

IV.  The commission may suspend the tobacco, e-cigarette, or alcohol sales portion of the license separately under the provisions of RSA 179:57; any revocation shall revoke the entire license.

10  Retail Tobacco License.  Amend RSA 178:19-a to read as follows:

178:19-a  Retail Tobacco License.  

I.  The commission may issue a retail tobacco license to a person engaged in the business of retail sales and distribution of tobacco products or e-cigarettes in this state.  Each retail outlet shall have a separate license regardless of the fact that one or more outlets may be owned or controlled by a single person.

II.  A retail tobacco license shall be prominently displayed on the premises described in it.

III.  The commission, when issuing or renewing a retail tobacco license, shall furnish a sign which shall read or be substantially similar to the following:  "State Law prohibits the sale of tobacco products or e-cigarettes to persons under age 18.  Warning:  violators of these provisions may be subject to a fine.''

11  Beer Specialty License.  Amend RSA 178:19-d, I to read as follows:

I.  A beer specialty license may be issued by the commission to any person operating a retail outlet in this state the primary business of which is the sale of beer as defined in RSA 175:1.  A beer specialty license shall allow the licensee to sell beverage, wine, [and] tobacco products, and e-cigarettes directly to individuals at retail on the premises for consumption off the premises; beer may be sold in such barrels, bottles, or other containers as the commission may by rule prescribe.

12  Beer Specialty License.  Amend RSA 178:19-d, V and VI to read as follows:

V.  All sales of beer, [and] tobacco products, and e-cigarettes shall be recorded on cash registers.  No additional registers shall be added during the remainder of the year without prior approval of the commission.  No rebate shall be allowed for cash registers discontinued during the license year.

VI.  The commission may suspend the tobacco, e-cigarette, or alcohol sales portion of the license separately under the provisions of RSA 179:57.

13  Effective Date.  This act shall take effect 60 days after its passage.

LBAO

17-0457

Amended 2/21/17

HB 242- FISCAL NOTE

AS AMENDED BY THE HOUSE (AMENDMENT #2017-0037h)

AN ACT (New Title) relative to the definition and regulation of e-cigarettes.

FISCAL IMPACT:      [ X ] State              [    ] County               [    ] Local              [    ] None

METHODOLOGY:

This bill as amended changes the definition of e-cigarettes to provide that the device may or may not contain nicotine.  It also includes e-cigarettes in the definition of tobacco products for sale and licensure of tobacco.  The Liquor Commission states it does not know how many additional licensees or locations will need regulation, so it cannot estimate expenses.  If the number of new licensees is great enough to require additional licensing personnel, the Commission states it will seek these new positions in the next biennial budget cycle.

AGENCIES CONTACTED:

Liquor Commission