The following is a summary of recent action that has taken place on tobacco-related bills pending in state legislatures:
Arizona: Senate Bill 1161, which prohibits the use of electronic benefit transfer cards in “a tobacco paraphernalia or vapor cigarette store” or for the purchase of cigarettes “or any other tobacco products,” died on adjournment on May 7.
California: Senate Bill 1470, which, for purposes of the tobacco store exception to the self-service display ban, revises the definition to include only those stores that primarily sell tobacco products and paraphernalia, passed Senate on April 28, 2016. Assembly Bill 1901, which makes it illegal for non-distributors to possess unaffixed cigarette tax stamps, passed Assembly on May 5, 2016.
California Governor Jerry Brown has signed or vetoed the following legislative bills: Assembly Bill 10b authorizing counties and cities to impose a tax on distributing cigarettes and tobacco products, was vetoed on May 4, 2016. Assembly Bill 11b requiring a $265 annual fee for retailers of cigarettes and tobacco products was signed by Governor Brown on May 4, 2016. Senate Bill 5b which other than for tax purposes, equates e-cigarettes with combustible cigarettes, prohibits sales of them to a minor, provides for licensing of retailers of e-cigarette products, requires child resistant packaging for liquid nicotine, defines e-cigarettes as tobacco products for purposes of state smoking restrictions, and expands the existing smoking ban to various other places including bars, restaurants and casinos was signed by Governor Brown on May 4. Senate Bill 7b, which increases the age to purchase tobacco products to 21 and deletes the existing prohibition on use and possession by those under 21, was signed by Governor Brown on May 4, 2016 and goes into effect on June 9, 2016.
Connecticut: House Bill 5624, which defines “person” for the purposes of licensure of e-cigarette sellers and manufacturers and removes the requirement that background checks be conducted prior to licensure, passed the House on April 29, 2016.
Hawaii: The following bills died upon adjournment of the legislature: House Bill 145 increasing the excise tax on other tobacco products, House Bill 749 imposing a Beach Clean Up Fee in an unspecified amount on each cigarette sold, House Bill 1176 requiring e-liquids to be in child resistant containers and makes e-liquids subject to the Hawaii Poison Prevention Packaging Act, Senate Bill 401 allowing a tax credit to certain cigar producers, Senate Bill 1032 increasing the retail permit fee and requires e-cigarette dealers to have a permit, Senate Bill 1220 for purposes of taxation expands the definition of tobacco products to include products containing nicotine and no tobacco and imposes an excise tax equal to 80% of the wholesale price on all tobacco products other than large cigars, Senate Bill changing the excise tax on large cigars from 70% of wholesale to the lesser of 50 cents or 50% of the wholesale price, Senate Bill 2689 increasing tobacco retailer licenses from $20 to $50 annually and requiring e-cigarette and related products dealers to have a tobacco retailer license, and Senate Bill 2690 increasing the cigarette tax by an unspecified amount.
Kansas: Senate Bill 149, which moves the effective date for the imposed tax on electronic cigarettes of $.20 per milliliter (passed during the 2015 Legislative Session) from July 1, 2016 to January 1, 2017, was signed by the Governor on May 11, 2016.
Louisiana: House Bill 71, requiring the stamping of cigarettes prior to selling, offering for sale, removing, or otherwise distributing the cigarettes instead of immediately upon receipt, passed the House unanimously and moved to the Senate.
Massachusetts: House Bill 1951 requiring local boards of health to receive approval of a town meeting or city council before banning the sale of legal tobacco products at wholesale or retail was ordered for investigation and study on May 5, 2016. House Bill 3469 requiring e-cigarette manufacturers to file a report annually for each brand identifying the concentration of any toxins contained in the vapor produced by an e-cigarette when used as intended by the manufacturer was ordered for investigation and study on May 5, 2016. Senate Bill 1453 increasing the on cigars (an additional 80% of wholesale) and smoking tobacco (an additional 90% of wholesale) and smokeless tobacco was ordered for investigation and study on May 12, 2016. Senate Bill 2269 (drafted from SB2234), which increases the purchase age to 21 for tobacco products (including electronic cigarettes) and prohibits the sale of tobacco products by pharmacies and imposes other product restrictions was referred to the Joint Committee on Health Care Financing on May 2, 2016.
New Hampshire: House Bill 1208, which changes several definitions to the tobacco tax laws, including the definition of a premium cigar by removing the criteria that cigars wholesale for $2.00 or more, was vetoed by the Governor on May 6, 2016.
New Jersey: Senate Bill 298 prohibiting the sale of flavored electronic smoking devices is scheduled for a hearing in the Senate Health, Human Services and Senior Citizens Committee on May 16, 2016. Senate Bill 2135 prohibiting the sale of tobacco products and electronic smoking devices at pharmacies is scheduled for a hearing in the Senate Health, Human Services and Senior Citizens Committee on May 16, 2016.
New York: The following three bills were reported from the Assembly Health Committee on May 4, 2016: Assembly Bill 852 requiring retailers of electronic cigarettes, not otherwise registered with the Department of Taxation and Finance to sell tobacco products, to register with the Department of Health; Assembly Bill 5164-A prohibiting the sale of discounted cigarettes and tobacco products and electronic cigarettes; and Assembly Bill 9731 prohibiting the distribution of electronic cigarettes without charge and the distribution of coupons unless distributed through newspapers, magazines and other types of publications.
Pennsylvania: Senate Bill 691, which adjusts the minimum mark-up for cigarettes from 6% to 7%, requires a signed contract of sale by the parties to a sale of cigarettes, provides for a violation for failure to pay in full for cigarettes within 14 days and asserts state preemption pertaining to dealers licensed under this article, was reported, as amended, from the Senate Appropriations Committee on May 9, 2016.
Rhode Island: The following three bills were ordered to be held for further study by the House Finance Committee: House Bill 7373 modifying the definition of little cigars to 4.5 pounds per thousand, requires little cigars be sold in packs of 20 or more and taxes little cigars as cigarettes; House Bill 7733 requiring a 15% minimum mark-up be added to the total cost of cigarettes sold by retailers; and House Bill 7737 increasing the tobacco purchase age to 21 (includes nicotine-delivery systems).
Vermont: House Bill 171, which prohibits the use of electronic cigarettes in the same places where the use of lighted tobacco products is banned and prohibits electronic cigarette displays on store counters, is eligible for the Governor’s desk. House Bill 872, which requires any retailer of tobacco substitutes (e-cigarettes, delivery devices, etc.) to obtain a tobacco substitute endorsement from the Department of Liquor Control along with paying a fee of $50, raises the annual fee for tobacco licensing or renewal from $100 to $110, and requires a manufacturer's registration fee for any person manufacturing tobacco substitutes for sale in the state of $1,000 per brand annually, was reported adopted in the House and Senate on May 6, 2016.