Bill Text: AZ SB1272 | 2025 | Fifty-seventh Legislature 1st Regular | Introduced
Bill Title: Vapor products; regulation; directory
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2025-01-28 - Senate read second time [SB1272 Detail]
Download: Arizona-2025-SB1272-Introduced.html
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REFERENCE TITLE: vapor products; regulation; directory |
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State of Arizona Senate Fifty-seventh Legislature First Regular Session 2025
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SB 1272 |
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Introduced by Senator Payne
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An Act
amending sections 4-101, 4-112, 4-114, 4-118 and 4-209, Arizona Revised Statutes; amending title 4, Arizona Revised Statutes, by adding chapter 4; relating to vapor products.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Heading change
The title heading of title 4, Arizona Revised Statutes, is changed from "ALCOHOLIC BEVERAGES" to "ALCOHOLIC BEVERAGES AND VAPOR PRODUCTS".
Sec. 2. Section 4-101, Arizona Revised Statutes, is amended to read:
4-101. Definitions
In this title, unless the context otherwise requires:
1. "Act of violence":
(a) Means an incident that consists of a riot, a fight, an altercation or tumultuous conduct and that meets at least one of the following criteria:
(i) Bodily injuries are sustained by any person and the injuries would be obvious to a reasonable person.
(ii) Is of sufficient intensity as to require the intervention of a peace officer to restore normal order.
(iii) A weapon is brandished, displayed or used.
(iv) A licensee or an employee or contractor of the licensee fails to follow a clear and direct lawful order from a law enforcement officer or a fire marshal.
(b) Does not include the use of nonlethal devices by a peace officer.
2. "Aggrieved party" means a person who resides at, owns or leases property within a one-mile radius of premises proposed to be licensed and who filed a written request with the department to speak in favor of or opposition to the issuance of the license not later than sixty days after filing the application or fifteen days after action by the local governing body, whichever is sooner.
3. "Beer":
(a) Means any beverage obtained by the alcoholic fermentation, infusion or decoction of barley malt, hops, rice, bran or other grain, glucose, sugar or molasses, or any combination of them, and may include, as adjuncts in fermentation, honey, fruit, fruit juice, fruit concentrate, herbs, spices and other food materials.
(b) Includes beer aged in an empty wooden barrel previously used to contain wine or distilled spirits and as such is not considered a dilution or mixture of any other spirituous liquor.
4. "Biometric identity verification device" means a device authorized by the department that instantly verifies the identity and age of a person by an electronic scan of a biometric of the person, through a fingerprint, iris image, facial image or other biometric characteristic, or any combination of these characteristics, that references the person's identity and age against any record described in section 4-241, subsection K, and that meets all of the following conditions:
(a) The authenticity of the record was previously verified by an electronic authentication process.
(b) The identity of and information about the record holder was previously verified through either:
(i) A secondary, electronic authentication process or set of processes using commercially available data, such as a public records query or a knowledge-based authentication quiz.
(ii) Using a state or federal government system of records for digital authentication.
(c) The authenticated record was securely linked to biometrics contemporaneously collected from the verified record holder and is stored in a centralized, highly secured, encrypted biometric database.
5. "Board" means the state liquor board.
6. "Bona fide guest" means:
(a) An individual who is personally familiar to the member, who is personally sponsored by the member and whose presence as a guest is in response to a specific and personal invitation.
(b) In the case of a club that meets the criteria prescribed in paragraph 8, subdivision (a) of this section, a current member of the armed services of the United States who presents proper military identification and any member of a recognized veterans' organization of the United States and of any country allied with the United States during current or past wars or through treaty arrangements.
7. "Broken package" means any container of spirituous liquor on which the United States tax seal has been broken or removed or from which the cap, cork or seal placed on the container by the manufacturer has been removed.
8. "Club" includes any of the following organizations where the sale of spirituous liquor for consumption on the premises is made only to members, spouses of members, families of members, bona fide guests of members and guests at other events authorized in this title:
(a) A post, chapter, camp or other local unit composed solely of veterans and its duly recognized auxiliary that has been chartered by the Congress of the United States for patriotic, fraternal or benevolent purposes and that has, as the owner, lessee or occupant, operated an establishment for that purpose in this state.
(b) A chapter, aerie, parlor, lodge or other local unit of an American national fraternal organization that has, as the owner, lessee or occupant, operated an establishment for fraternal purposes in this state. An American national fraternal organization as used in this subdivision shall actively operate in at least thirty-six states or have been in active continuous existence for at least twenty years.
(c) A hall or building association of a local unit mentioned in subdivisions (a) and (b) of this paragraph of which all of the capital stock is owned by the local unit or the members and that operates the clubroom facilities of the local unit.
(d) A golf club that has more than fifty bona fide members and that owns, maintains or operates a bona fide golf links together with a clubhouse.
(e) A social club that has more than one hundred bona fide members who are actual residents of the county in which it is located, that owns, maintains or operates club quarters, that is authorized and incorporated to operate as a nonprofit club under the laws of this state, and that has been continuously incorporated and operating for a period of at least one year. The club shall have had, during this one-year period, a bona fide membership with regular meetings conducted at least once each month, and the membership shall be and shall have been actively engaged in carrying out the objects of the club. The club's membership shall consist of bona fide dues-paying members paying dues of at least $6 per year, payable monthly, quarterly or annually, which have been recorded by the secretary of the club, and the members at the time of application for a club license shall be in good standing having for at least one full year paid dues. At least fifty-one percent of the members shall have signified their intention to secure a social club license by personally signing a petition, on a form prescribed by the board, which shall also include the correct mailing address of each signer. The petition shall not have been signed by a member at a date earlier than one hundred eighty days before the filing of the application. The club shall qualify for exemption from the payment of state income taxes under title 43. It is the intent of this subdivision that a license shall not be granted to a club that is, or has been, primarily formed or activated to obtain a license to sell liquor, but solely to a bona fide club, where the sale of liquor is incidental to the main purposes of the club.
(f) An airline club operated by or for airlines that are certificated by the United States government and that maintain or operate club quarters located at airports with international status.
9. "Company" or "association", when used in reference to a corporation, includes successors or assigns.
10. "Control" means the power to direct or cause the direction of the management and policies of an applicant or licensee, whether through the ownership of voting securities or a partnership interest, by agreement or otherwise. Control is presumed to exist if a person has the direct or indirect ownership of or power to vote ten percent or more of the outstanding voting securities of the applicant or licensee or to control in any manner the election of one or more of the directors of the applicant or licensee. In the case of a partnership, control is presumed to mean the general partner or a limited partner who holds ten percent or more of the voting rights of the partnership. For the purposes of determining the percentage of voting securities owned, controlled or held by a person, there shall be aggregated with the voting securities attributed to the person the voting securities of an officer, partner, employee or agent of the person or a spouse, parent or child of the person. Control is also presumed to exist if a creditor of the applicant or licensee holds a beneficial interest in ten percent or more of the liabilities of the licensee. The presumptions in this paragraph regarding control are rebuttable.
11. "Controlling person" means a person directly or indirectly possessing control of an applicant or licensee.
12. "Craft distiller" means a distiller in the United States or in a territory or possession of the United States that holds a license pursuant to section 4-205.10.
13. "Craft producer" means a licensed farm winery, a licensed microbrewery or a licensed craft distiller.
14. "Department" means the department of liquor licenses and control.
15. "Director" means the director of the department of liquor licenses and control.
16. "Distilled spirits" includes alcohol, brandy, whiskey, rum, tequila, mescal, gin, absinthe, a compound or mixture of any of them or of any of them with any vegetable or other substance, alcohol bitters, bitters containing alcohol, fruits preserved in ardent spirits, and any alcoholic mixture or preparation, whether patented or otherwise, that may in sufficient quantities produce intoxication.
17. "Employee":
(a) Means any person who performs any service on licensed premises on a full-time, part-time or contract basis with consent of the licensee, whether or not the person is denominated an employee or independent contractor or otherwise. Employee
(b) Does not include a person who is exclusively on the premises for musical or vocal performances, for repair or maintenance of the premises or for the delivery of goods to the licensee.
18. "Farm winery" means a winery in the United States or in a territory or possession of the United States that holds a license pursuant to section 4-205.04.
19. "Government license" means a license to serve and sell spirituous liquor on specified premises available only to a state agency, state board, state commission, county, city, town, community college or state university or the national guard or Arizona coliseum and exposition center on application by the governing body of the state agency, state board, state commission, county, city, town, community college or state university or the national guard or Arizona exposition and state fair board.
20. "Legal drinking age" means twenty-one years of age or older.
21. "License" means a license or an interim retail permit issued pursuant to this title.
22. "Licensee" means a person who has been issued a license or an interim retail permit pursuant to this title or a special event licensee.
23. "License fees" means fees collected for license issuance, license application, license renewal, interim permit issuance and license transfer between persons or locations.
24. "Manager" means a natural person who meets the standards required of licensees and who has authority to organize, direct, carry on, control or otherwise operate a licensed business on a temporary or full-time basis.
25. "Menu food item" means a food item from a regular menu, special menu or happy hour menu that is prepared by the licensee or the licensee's employee.
26. "Microbrewery" means a brewery in the United States or in a territory or possession of the United States that meets the requirements of section 4-205.08.
27. "Mixed cocktail":
(a) Means any drink combined at the premises of an authorized licensee that contains a spirituous liquor and that is combined with at least one other ingredient, which may include additional spirituous liquors, fruit juice, vegetable juice, mixers, cream, flavored syrup or other ingredients except water, and that when combined contains more than one-half of one percent of alcohol by volume.
(b) Does not include a drink sold in an original manufacturer's packaging or any drink poured from an original manufacturer's package without the addition of all of the cocktail's other ingredients at the premises of the licensed bar, liquor store or restaurant.
28. "Off-sale retailer" means any person that operates a bona fide regularly established retail liquor store that sells spirituous liquors, wines and beer and any established retail store that sells commodities other than spirituous liquors and that is engaged in the sale of spirituous liquors only in the original unbroken package, to be taken away from the premises of the retailer and to be consumed off the premises.
29. "On-sale retailer" means any person operating an establishment where spirituous liquors are sold in the original container for consumption on or off the premises or in individual portions for consumption on the premises.
30. "Permanent occupancy" means the maximum occupancy of the building or facility as set by the office of the state fire marshal for the jurisdiction in which the building or facility is located.
31. "Person" includes a partnership, limited liability company, association, company or corporation, as well as a natural person.
32. "Premises" or "licensed premises":
(a) Means the area from which the licensee is authorized to sell, dispense or serve spirituous liquors under the provision of the license.
(b) Includes a patio that is not contiguous to the remainder of the premises or licensed premises if the patio is separated from the remainder of the premises or licensed premises by a public or private walkway or driveway not to exceed thirty feet, subject to rules the director may adopt to establish criteria for noncontiguous premises.
33. "Registered alcohol delivery contractor":
(a) Means a person who delivers spirituous liquor to a consumer on behalf of a bar, beer and wine bar, liquor store, beer and wine store or restaurant.
(b) Does not include:
(i) A motor carrier as defined in section 28-5201.
(ii) An independent contractor, a subcontractor of an independent contractor, an employee of an independent contractor or an employee of a subcontractor as provided in section 4-203, subsection J.
34. "Registered mail" includes certified mail.
35. "Registered retail agent" means any person who is authorized pursuant to section 4-222 to purchase spirituous liquors for and on behalf of the person and other retail licensees.
36. "Repeated acts of violence" means:
(a) For licensed premises with a permanent occupancy of two hundred or fewer persons, two or more acts of violence occurring within seven days or three or more acts of violence occurring within thirty days.
(b) For licensed premises with a permanent occupancy of more than two hundred but not more than four hundred persons, four or more acts of violence within thirty days.
(c) For licensed premises with a permanent occupancy of more than four hundred but not more than six hundred fifty persons, five or more acts of violence within thirty days.
(d) For licensed premises with a permanent occupancy of more than six hundred fifty but not more than one thousand fifty persons, six or more acts of violence within thirty days.
(e) For licensed premises with a permanent occupancy of more than one thousand fifty persons, seven or more acts of violence within thirty days.
37. "Sell" includes soliciting or receiving an order for, keeping or exposing for sale, directly or indirectly delivering for value, peddling, keeping with intent to sell and trafficking in.
38. "Spirituous liquor" includes alcohol, brandy, whiskey, rum, tequila, mescal, gin, wine, porter, ale, beer, any malt liquor or malt beverage, absinthe, a compound or mixture of any of them or of any of them with any vegetable or other substance, alcohol bitters, bitters containing alcohol, any liquid mixture or preparation, whether patented or otherwise, that produces intoxication, fruits preserved in ardent spirits, and beverages containing more than one-half of one percent of alcohol by volume.
39. "Tamperproof sealed" means designed to prevent consumption without the removal of a tamperproof cap, seal, cork or closure that has a device, mechanism or adhesive that clearly shows whether a container has been opened.
40. "Timely filed premarket tobacco product application" means an application that meets both of the following criteria:
(a) was filed pursuant to 21 united states code section 387j for a vapor product that contains nicotine derived from tobacco and that was marketed in the united states as of august 8, 2016.
(b) was submitted to the united states food and drug administration on or before september 9, 2020 and accepted for filing.
41. "vAPOR PRODUCT":
(a) MEANS ANY NONCOMBUSTIBLE PRODUCT that CONTAINs NICOTINE and THAT EMPLOYS A HEATING ELEMENT, POWER SOURCE, ELECTRONIC CIRCUIT OR OTHER ELECTRONIC, CHEMICAL OR MECHANICAL MEANS, REGARDLESS OF SHAPE OR SIZE, TO produce VAPOR FROM NICOTINE IN A SOLUTION.
(b) iNCLUDES A CONSUMABLE NICOTINE LIQUID SOLUTION SUITABLE FOR USE IN A VAPOR PRODUCT, WHETHER SOLD WITH THE PRODUCT OR SEPARATELY.
(c) dOES NOT INCLUDE ANY PRODUCT REGULATED BY THE UNITED STATES FOOD AND DRUG ADMINISTRATION UNDER subCHAPTER V OF THE FEDERAL FOOD, DRUG, AND COSMETIC ACT (52 stat. 1040; 21 united states code sections 351 through 360fff-8).
40. 42. "Vehicle" means any means of transportation by land, water or air, and includes everything made use of in any way for such transportation.
41. 43. "Vending machine" means a machine that dispenses merchandise through the means of coin, token, credit card or other nonpersonal means of accepting payment for merchandise received.
42. 44. "Veteran" means a person who has served in the United States air force, army, navy, marine corps or coast guard, as an active nurse in the services of the American red cross, in the army and navy nurse corps in time of war, or in any expedition of the armed forces of the United States, and who has received a discharge other than dishonorable.
43. 45. "Voting security" means any security presently entitling the owner or holder of the security to vote for the election of directors of an applicant or a licensee.
44. 46. "Wine" means the product obtained by the fermentation of grapes, other agricultural products containing natural or added sugar or cider or any such alcoholic beverage fortified with grape brandy and containing not more than twenty-four percent of alcohol by volume.
Sec. 3. Section 4-112, Arizona Revised Statutes, is amended to read:
4-112. Powers and duties of board and director of department of liquor licenses and control; investigations; county and municipal regulation; definition
A. The board shall:
1. Grant and deny applications in accordance with the provisions of this title.
2. Adopt rules in order to carry out the provisions of this section.
3. Hear appeals and hold hearings as provided in this section.
4. coordinate and share information with the attorney general regarding investigations and violations of chapter 4 of this title.
B. Except as provided in subsection A of this section, the director shall administer the provisions of this title, including and shall do the following:
1. Adopting adopt rules:
(a) For carrying out the provisions of this title.
(b) For the proper conduct of the business to be carried on under each specific type of spirituous liquor license.
(c) To enable and assist state officials and political subdivisions to collect taxes levied or imposed in connection with spirituous liquors.
(d) For the issuance and revocation of certificates of registration of retail agents, including provisions governing the shipping, storage and delivery of spirituous liquors by registered retail agents, the keeping of records and the filing of reports by registered retail agents.
(e) To establish requirements for licensees under section 4-209, subsection B, paragraph 12.
(f) To establish and maintain a directory of vapor products and manufacturers of vapor products, conduct inspections and take enforcement action.
2. Subject to title 41, chapter 4, article 4, employing employ necessary personnel and fixing fix their compensation pursuant to section 38-611.
3. Keeping keep an index record that is a public record open to public inspection and that contains the name and address of each licensee and the name and address of any person having an interest, either legal or equitable, in each license as shown by any written document that is placed on file in the office of the board.
4. Providing provide the board with supplies and personnel as directed by the board.
5. Responding respond in writing to any law enforcement agency that submits an investigative report to the department relating to a violation of this title, setting forth what action, if any, the department has taken or intends to take on the report and, if the report lacks sufficient information or is otherwise defective for use by the department, what the agency must do to remedy the report.
6. Taking take steps that are necessary to maintain effective liaison with the attorney general, the department of public safety and all local law enforcement agencies in the enforcement of this title, including the laws of this state against the consumption of spirituous liquor by persons under the legal drinking age.
7. Providing provide training to law enforcement agencies in the proper investigation and reporting of violations of this title.
C. The director shall establish within the department a separate investigations unit that has as its sole responsibility the investigation of compliance with this title, including the investigation of licensees alleged to have sold or distributed spirituous liquor in any form to persons under the legal drinking age. Investigations conducted by this unit may include covert undercover investigations.
D. All employees of the department of liquor licenses and control, except members of the state liquor board and the director of the department, shall be employed by the department in the manner prescribed by the department of administration.
E. The director may enter into a contract or agreement with any public agency for any joint or cooperative action as provided for by title 11, chapter 7, article 3.
F. The board or the director may take evidence, administer oaths or affirmations, issue subpoenas requiring attendance and testimony of witnesses, cause depositions to be taken and require by subpoena duces tecum the production of books, papers and other documents that are necessary for the enforcement of this title. Proceedings held during the course of a confidential investigation are exempt from title 38, chapter 3, article 3.1. If a person refuses to obey a subpoena or fails to answer questions as provided by this subsection, the board or the director may apply to the superior court in the manner provided in section 12-2212. The board or director may serve subpoenas by personal service or certified mail, return receipt requested.
G. The director may:
1. Examine books, records and papers of a licensee or a retailer, distributor or wholesaler of vapor products.
2. Require applicants, licensees, employees who serve, sell or furnish spirituous liquors to retail customers, managers and managing agents to take training courses approved by the director in spirituous liquor handling and spirituous liquor laws and rules. The director shall adopt rules that set standards for approving training courses. The director may suspend or revoke the previous approval of trainers who do not adhere to course administration requirements prescribed by the department or who do not meet course standards. If the director suspends or revokes the previous approval of a trainer pursuant to this paragraph, the trainer may appeal to the board pursuant to section 4-210.02 as if the suspension or revocation was a sanction against a licensee. After January 1, 2019, The rules for on-sale retailer basic training and on-sale retailer management training shall include security procedures for security personnel assigned to monitor admission of patrons, interaction with patrons, calls to law enforcement and strategies for use of force and for the use of de-escalation techniques. If the retailer uses a registered security guard, the retailer shall attempt to verify the validity and status of the security guard's registration certificate. The department's licensed investigators may participate and receive compensation as lecturers at approved training courses within this state's jurisdiction that are conducted by other entities but shall not participate in in-house training programs for licensees.
3. Delegate to employees of the department authority to exercise powers of the director in order to administer the department.
4. Regulate signs that advertise a spirituous liquor product at licensed retail premises.
5. Cause to be removed from the marketplace spirituous liquor that may be contaminated.
6. Regulate the age and conduct of erotic entertainers at licensed premises. The age limitation governing these erotic entertainers may be different from other employees of the licensee.
7. Issue and enforce cease and desist orders against any person or entity that sells beer, wine or spirituous liquor without an appropriate license or permit and impose penalties and take other action against retailers, distributors, wholesalers or MANUFACTURERS of vapor products.
8. Confiscate wines carrying a label including a reference to Arizona or any Arizona city, town or place unless at least seventy-five percent by volume of the grapes used in making the wine were grown in this state.
9. Accept and expend private grants of monies, gifts and devises for conducting educational programs for parents and students on the repercussions of underage alcohol consumption. State general fund monies shall not be expended for the purposes of this paragraph. If the director does not receive sufficient monies from private sources to carry out the purposes of this paragraph, the director shall not provide the educational programs prescribed in this paragraph. Grant monies received pursuant to this paragraph are nonlapsing and do not revert to the state general fund at the close of the fiscal year.
10. Procure fingerprint scanning equipment and provide fingerprint services to license applicants and licensees. The department may charge a fee for providing these services.
11. Accept electronic signatures on all department and licensee forms and documents and applications. The director may adopt requirements that would require facsimile signatures to be followed by original signatures within a specified time period.
12. For use after January 1, 2019, Adopt a form that is required to be used by all on-sale retailers that hire or designate employees to serve as security personnel. All security personnel job applicants and employees for on-sale retailers shall complete the form, which shall be notarized, before assignment to a security role. The form shall require the applicant or other person to disclose whether in the previous five years the person has been a registered sex offender or pled guilty to, pled no contest to or been convicted of any offense that constitutes assault, homicide, domestic violence, sexual misconduct, misconduct involving a deadly weapon or a drug violation that constitutes the illegal sale, manufacturing, cultivation or transportation for sale of marijuana, a dangerous drug or a narcotic drug. A licensee may not hire or assign to a role as security personnel any person who fails to complete the form or if the whose form discloses one of the listed offenses within the previous five years. The licensee shall maintain on file affidavits of all security personnel hired or designated by the licensee. The form may not be required for a peace officer who is certified by the Arizona peace officer standards and training board or other security personnel who hold a current security guard registration certificate or armed security guard registration certificate issued pursuant to title 32, chapter 26.
H. A county or municipality may enact and enforce ordinances regulating the age and conduct of erotic entertainers at licensed premises in a manner at least as restrictive as rules adopted by the director.
I. For the purposes of this section, "security personnel":
1. Includes individuals whose primary assigned responsibilities include the security and safety of employees and patrons of an on-sale retailer premises. Security personnel
2. Does not include a person whose primary responsibilities include checking the identification cards of patrons to determine compliance with age requirements.
Sec. 4. Section 4-114, Arizona Revised Statutes, is amended to read:
4-114. Interest in business prohibited; forfeiture of office
A. Except for a member designated by the governor to be appointed from the industry, no member of the board or the director or any employee of the department shall be financially interested directly or indirectly in any business that is licensed to deal in spirituous liquors or that manufacturers or sells vapor products.
B. Violation of this section by the director or any member of the board shall be deemed a resignation by such person, and a violation by an employee of the department shall result in his the employee's immediate dismissal.
Sec. 5. Section 4-118, Arizona Revised Statutes, is amended to read:
4-118. Inspection of premises
The director, the director's agents and any peace officer may, in enforcing the provisions of this title, visit during the hours in which the premises are occupied and inspect the premises of a licensee or a retAILER, DISTRIBUTOR OR WHOLESALER of vapor products.
Sec. 6. Section 4-209, Arizona Revised Statutes, is amended to read:
4-209. Fees for license, application, issuance, renewal, transfer and certification; late renewal penalty; seasonal operation; surcharges
A. A fee shall accompany an application for an original license or transfer of a license, or in case of renewal, shall be paid in advance. Every license expires annually, except that a license may be renewed for a two-year period pursuant to subsection M of this section if no compliance penalties have been issued to that location during the year before the renewal. A licensee who fails to renew the license on or before the due date shall pay a penalty of $150, which the licensee shall pay with the renewal fee. A license renewal that is deposited, properly addressed and postage prepaid in an official depository of the United States mail on or before the due date shall be deemed filed and received by the department on the date shown by the postmark or other official mark of the United States postal service stamped on the envelope. If the due date falls on a Saturday, Sunday or other legal holiday, the renewal shall be considered timely if it is received by the department on the next business day. The director may waive a late renewal penalty if good cause is shown by the licensee. A licensee who fails to renew the license on or before the due date may not sell, purchase or otherwise deal in spirituous liquor until the license is renewed. A license that is not renewed within sixty days after the due date is deemed terminated. The director may renew the terminated license if good cause is shown by the licensee. Except an application fee for a permit pursuant to section 4-203.07 and section 4-205.02, subsection K and leases pursuant to sections 4-203.06 and 4-203.07, an application fee for an original license or the transfer of a license shall be $100, which shall be retained by this state.
B. Issuance fees for original licenses shall be:
1. For an in-state producer's license to manufacture or produce spirituous liquor in this state, $1,500.
2. Except as provided in paragraph 15 of this subsection, for an out-of-state producer's, exporter's, importer's or rectifier's license, $200.
3. For a microbrewery license, $300.
4. For a wholesaler's license to sell spirituous liquors, $1,500.
5. For a government license issued in the name of a state agency, state commission, state board, county, city, town, community college or state university or the national guard, $100.
6. For a bar license, which is an on-sale retailer's license to sell all spirituous liquors primarily by individual portions and in the original containers, $1,500.
7. For a beer and wine bar license, which is an on-sale retailer's license to sell beer and wine primarily by individual portions and in the original containers, $1,500.
8. For a conveyance license issued to an operating railroad company, to sell all spirituous liquors in individual portions or in the original containers on all passenger trains operated by the railroad company, or to an operating airline company, to sell or serve spirituous liquors solely in individual portions on all passenger planes operated by the airline company, or to a boat operating in the waters of this state, to sell all spirituous liquors in individual portions or in the original containers for consumption on the boat, $1,500.
9. For a liquor store license, which is an off-sale retailer's license to sell all spirituous liquors, $1,500.
10. For a beer and wine store license, which is an off-sale retailer's license to sell beer and wine, $1,500.
11. For a hotel-motel license issued as such, to sell and serve spirituous liquors solely for consumption on the licensed premises of the hotel or motel, $1,500.
12. For a restaurant license issued as such, to sell and serve spirituous liquors solely for consumption on the licensed premises of the restaurant, $1,500. For a permit issued under section 4-205.02, subsection H allowing for the sale of beer for the consumption off the licensed premises pursuant to section 4-244, paragraph 32, subdivision (c), the director may charge a fee. For an application for a permit pursuant to section 4-203.07 and section 4-205.02, subsection K, the director may charge a fee. The director may establish and charge fees for lease applications pursuant to sections 4-203.06 and 4-203.07.
13. For a farm winery license, $100. The director may charge a licensed farm winery a fee pursuant to section 4-205.04, subsection K.
14. For a club license issued in the name of a bona fide club qualified under this title to sell all spirituous liquors on-sale, $1,000.
15. For an out-of-state winery that sells not more than two hundred forty gallons of wine in this state in a calendar year, $25.
16. The department may charge a fee for a craft distiller license.
17. The department may charge a fee for registering an alcohol delivery contractor pursuant to section 4-205.13.
C. The department may issue licenses with staggered renewal dates to distribute the renewal workload as uniformly as practicable throughout the twelve months of the calendar year. If a license is issued less than six months before the scheduled renewal date of the license, as provided by the department's staggered license renewal system, one-half of the annual license fee shall be charged.
D. The annual fees for licenses shall be:
1. For an in-state producer's license to manufacture or produce spirituous liquors in this state, $350.
2. Except as provided in paragraph 15 of this subsection, for an out-of-state producer's, exporter's, importer's or rectifier's license, $50.
3. For a microbrewery license, $300.
4. For a wholesaler's license, to sell spirituous liquors, $250.
5. For a government license issued to a county, city or town, community college or state university or the national guard, $100.
6. For a bar license, which is an on-sale retailer's license to sell all spirituous liquors primarily by individual portions and in the original containers, $150.
7. For a beer and wine bar license, which is an on-sale retailer's license to sell beer and wine primarily by individual portions and in the original containers, $75.
8. For a conveyance license issued to an operating railroad company, to sell all spirituous liquors in individual portions or in the original containers on all passenger trains operated by the railroad company, or to an operating airline company, to sell or serve spirituous liquors solely in individual portions on all passenger planes operated by the airline company, or to a boat operating in the waters of this state, to sell all spirituous liquor in individual portions or in the original containers for consumption on the boat, $225.
9. For a liquor store license, which is an off-sale retailer's license to sell all spirituous liquors, $50.
10. For a beer and wine store license, which is an off-sale retailer's license to sell beer and wine, $50.
11. For a hotel-motel license issued as such, to sell and serve spirituous liquors solely for consumption on the licensed premises of the hotel or motel, $500.
12. For a restaurant license issued as such, to sell and serve spirituous liquors solely for consumption on the licensed premises of the restaurant, $500, and for a restaurant license that is allowed to continue operating as a restaurant pursuant to section 4-213, subsection E, an additional amount established by the director. The department shall transfer this amount to the state treasurer for deposit in the state general fund. The director may establish an annual fee for a permit pursuant to section 4-203.07 and section 4-205.02, subsection K. The director may charge annual lease amounts pursuant to sections 4-203.06 and 4-203.07.
13. For a farm winery license, $100. The director may charge a licensed farm winery an annual fee pursuant to section 4-205.04, subsection K.
14. For a club license issued in the name of a bona fide club qualified under this title to sell all spirituous liquors on-sale, $150.
15. For an out-of-state winery that sells not more than two hundred forty gallons of wine in this state in a calendar year, $25.
16. The director may charge a fee for the annual renewal of a craft distiller license.
17. The department may charge a fee for the annual registration renewal of a registered alcohol delivery contractor pursuant to section 4-205.13.
E. Where the business of an on-sale retail licensee is seasonal, not extending over periods of more than six months in any calendar year, the licensee may designate the periods of operation and a license may be granted for those periods only, on payment of one-half of the fee prescribed in subsection D of this section.
F. Transfer fees from person to person for licenses transferred pursuant to section 4-203, subsection C shall be $300.
G. Transfer fees from location to location, as provided for in section 4-203, shall be $100.
H. Assignment fees for a change of agent, as provided for in section 4-202, subsection A, an acquisition of control, as provided for in section 4-203, subsection F, or a restructuring, as provided for in section 4-203, subsection H, shall be $100, except that where a licensee holds multiple licenses and requests multiple, simultaneous changes, the change of agent, acquisition of control or restructuring fee for the first license shall be $100 and the fee for all remaining licenses shall be $50 each, except that the aggregate fees shall not exceed $1,000 for all change of agents, $1,000 for all acquisitions of control and $1,000 for all restructurings.
I. No fee shall be charged by the department for an assignment of a liquor license in probate or an assignment pursuant to the provisions of a will or pursuant to a judicial decree in a domestic relations proceeding that assigns ownership of a business that includes a spirituous liquor license to one of the parties in the proceeding. In the case of nontransferable licenses, no fee shall be charged by the department for the issuance of a license for a licensed business pursuant to a transfer of the business in probate or pursuant to the provisions of a will or pursuant to a judicial decree in a domestic relations proceeding that assigns ownership of the business to one of the parties in the proceeding.
J. The director shall assess a surcharge of $30 on all licenses prescribed in subsection D, paragraphs 6, 7 and 12 of this section. Monies from the surcharge shall be used by the department exclusively for the costs of an auditor and support staff to review compliance by applicants and licensees with the requirements of section 4-205.02, subsection E. The department shall assess the surcharge as part of the annual license renewal fee.
K. The director shall assess a surcharge of $35 on all licenses prescribed in this section. Monies from the surcharge shall be used by the department exclusively for the costs of an enforcement program to investigate licensees who have been the subject of multiple complaints to the department. The enforcement program shall respond to complaints against licensees by neighborhood associations, by neighborhood civic groups and from municipal and county governments. The department shall assess the surcharge as part of the annual license renewal fee.
L. The director shall assess a surcharge of $20 on all licenses prescribed in subsection D, paragraphs 11 and 12 of this section and $35 on all other licenses prescribed in this section. Monies from the surcharge and from surcharges imposed pursuant to subsection K of this section shall be used by the department exclusively for the costs of a neighborhood association interaction and liquor enforcement management unit. The unit shall respond to complaints from neighborhood associations, neighborhood civic groups and local governing authorities regarding liquor violations. The director shall report the unit's activities and the use of monies from the surcharge or surcharges imposed pursuant to subsection K of this section to the board at each board meeting or as the board may direct.
M. Licenses may be renewed every two years with payment of license fees that are twice the amount designated in subsection D of this section and other applicable fees. Licensees renewing every two years must comply with annual reporting requirements. The director may adopt reasonable rules to allow licensees to renew every two years.
n. the department shall charge a fee for the certification REQUIRED pursuant to section 4-401. The department shall use all monies received from fees for certifications submitted pursuant to section 4-401 to implement and enforce section 4-401.
N. o. The department shall use all monies received from application fees for permits issued pursuant to section 4-205.02, subsection K, leases pursuant to sections 4-203.06 and 4-203.07 and registrations pursuant to section 4-205.13 for administrative costs associated with the permit, registration or lease and enforcement of this chapter.
Sec. 7. Title 4, Arizona Revised Statutes, is amended by adding chapter 4, to read:
CHAPTER 4
VAPOR PRODUCTS
ARTICLE 1. GENERAL PROVISIONS
4-401. Vapor products; certification; fees; directory; violation; classification; civil penalties; manufacturer's agent; surety bonds; annual report
A. On or before october 1, 2025 AND ANNUALLY THEREAFTER, each MANUFACTURER OF A VAPOR PRODUCT THAT IS SOLD FOR RETAIL SALE OR TO A CONSUMER, WHETHER DIRECTLY OR THROUGH AN IMPORTER, WHOLESALER, DISTRIBUTOR, RETAILER OR SIMILAR INTERMEDIARY OR INTERMEDIARIES, SHALL EXECUTE AND submit to THE DIRECTOR A CERTIFICATION ON A FORM AND IN A MANNER PRESCRIBED BY THE DIRECTOR and UNDER PENALTY OF PERJURY THAT THE MANUFACTURER IS COMPLIANT WITH THIS CHAPTER AND THAT, FOR EACH VAPOR PRODUCT SOLD FOR RETAIL SALE OR TO A CONSUMER, ONE OF THE FOLLOWING APPLIES:
1. tHE MANUFACTURER RECEIVED A MARKETING GRANTED ORDER FOR THE VAPOR PRODUCT FROM THE UNITED STATES FOOD AND DRUG ADMINISTRATION PURSUANT TO 21 united states code section 387j.
2. tHE MANUFACTURER SUBMITTED A TIMELY FILED PREMARKET TOBACCO PRODUCT APPLICATION FOR THE VAPOR PRODUCT TO THE UNITED STATES FOOD AND DRUG ADMINISTRATION PURSUANT TO 21 united states code section 387j AND THE APPLICATION meets one of the following criteria:
(a) REMAINS UNDER REVIEW BY THE UNITED STATES FOOD AND DRUG ADMINISTRATION.
(b) HAS RECEIVED A DENIAL ORDER THAT HAS BEEN AND REMAINS STAYED BY THE UNITED STATES FOOD AND DRUG ADMINISTRATION OR COURT ORDER, rescinded by the united states food and drug aDMINISTRATION OR VACATED BY A COURT.
b. THE MANUFACTURER IS NOT REQUIRED TO SUBMIT AN ADDITIONAL MARKETING GRANTED ORDER OR PREMARKET TOBACCO PRODUCT APPLICATION FOR THE VAPOR PRODUCT SOLElY BECAUSE OF CHANGES TO THE NAME, BRAND STYLE OR PACKAGING OF A VAPOR PRODUCT THAT IS COVERED UNDER subsection a, paragraph 1 or 2 of this section.
c. An annual CERTIFICATION filed pursuant to subsection a of this section SHALL comply with the following conditions:
1. SEPARATELY LIST EACH BRAND NAME, PRODUCT NAME, CATEGORY AND FLAVOR FOR EACH VAPOR PRODUCT THAT IS SOLD IN THIS STATE.
2. BE ACCOMPANIED BY either of the following:
(a) A COPY OF both:
(i) THE MARKETING GRANTED ORDER ISSUED BY THE UNITED STATES FOOD AND DRUG ADMINISTRATION PURSUANT TO 21 united states code SECTION 387j.
(ii) THE ACCEPTANCE LETTER ISSUED BY THE UNITED STATES FOOD AND DRUG ADMINISTRATION PURSUANT TO 21 united states code section 387j FOR A TIMELY FILED PREMARKET TOBACCO PRODUCT APPLICATIOn.
(b) A DOCUMENT ISSUED BY the UNITED STATES FOOD AND DRUG ADMINISTRATION OR BY A COURT CONFIRMING THAT THE TIMELY filed PREMARKET TOBACCO PRODUCT APPLICATION HAS RECEIVED A DENIAL ORDER THAT HAS BEEN AND REMAINS STAYED BY the UNITED STATES FOOD AND DRUG ADMINISTRATION OR COURT ORDER, RESCINDED BY the UNITED STATES FOOD AND DRUG ADMINISTRATION OR VACATED BY A COURT.
d. AN annual certification submitted pursuant to subsection a of this section shall be accompanied by A FEE FOR EACH VAPOR PRODUCT THE FIRST TIME A MANUFACTURER submits A CERTIFICATION FOR THAT VAPOR PRODUCT AND An annual fee FOR EACH VAPOR PRODUCT EACH TIME A MANUFACTURER SUBMITS AN ANNUAL CERTIFICATION FOR THAT VAPOR PRODUCT. THe fee shall be prescribed by the director pursuant to section 4-209.
e. INFORMATION SUBMITTED TO THE DEPARTMENT BY THE MANUFACTURER PURSUANT TO SUBSECTION C, paragraph 2 OF THIS SECTION SHALL BE CONSIDERED CONFIDENTIAL COMMERCIAL OR FINANCIAL INFORMATION AND IS EXEMPT FROM TITLE 39, CHAPTER 1, ARTICLE 2. THE MANUFACTURER MAY REDACT CERTAIN CONFIDENTIAL COMMERCIAL OR FINANCIAL INFORMATION PROVIDED UNDER SUBSECTION C, paragraph 2 of this section.
f. A MANUFACTURER REQUIRED TO SUBMIT A CERTIFICATION PURSUANT TO subsection a of THIS SECTION SHALL NOTIFY THE DIRECTOR WITHIN THIRTY DAYS after ANY MATERIAL CHANGE TO THE CERTIFICATION FORM, INCLUDING THE ISSUANCE OR DENIAL OF A MARKETING AUTHORIZATION OR OTHER ORDER BY THE UNITED STATES FOOD AND DRUG ADMINISTRATION PURSUANT TO 21 united states code section 387j OR ANY OTHER ORDER OR ACTION BY THE UNITED STATES FOOD AND DRUG ADMINISTRATION OR ANY COURT THAT AFFECTS THE ABILITY OF THE VAPOR PRODUCT TO BE INTRODUCED OR DELIVERED INTO INTERSTATE COMMERCE FOR COMMERCIAL DISTRIBUTION IN THE UNITED STATES.
g. Beginning december 1, 2025, THE DIRECTOR SHALL MAINTAIN AND MAKE PUBLICLY AVAILABLE ON THE DEPARTMENT'S OFFICIAL WEBSITE A DIRECTORY THAT LISTS ALL VAPOR PRODUCT MANUFACTURERS AND ALL VAPOR PRODUCTS FOR WHICH CERTIFICATION FORMS HAVE BEEN SUBMITTED AND APPROVED BY THE DIRECTOR. The directory shall iNCLUDe all of the following:
1. BRAND NAMES.
2. PRODUCT NAMES.
3. vapor product cATEGORIES.
4. Flavors.
h. THE DIRECTOR SHALL UPDATE THE DIRECTORY required pursuant to subsection G of this section AT LEAST MONTHLY. The director SHALL ESTABLISH A PROCESS TO PROVIDE RETAILERS, DISTRIBUTORS, WHOLESALERS AND OTHER RELEVANT PARTIES NOTICE OF THE INITIAL PUBLICATION OF THE DIRECTORY AND any CHANGES MADE TO THE DIRECTORY from THE PRior MONTH.
i. a manufacturer or VAPOR PRODUCT may not BE INCLUDED OR RETAINED IN THE DIRECTORY IF THE DIRECTOR DETERMINES THAT ANY OF THE FOLLOWING APPLies:
1. THE MANUFACTURER FAILED TO submit A COMPLETE AND ACCURATE CERTIFICATION AS REQUIRED BY SUBSECTION A of this section.
2. THE MANUFACTURER SUBMITTED A CERTIFICATION pursuant to subsection A of this section THAT DOES NOT COMPLY WITH THE REQUIREMENTS OF SUBSECTION C of this section.
3. tHE MANUFACTURER FAILED TO SUBMIT THE FEE REQUIRED BY SUBSECTION d OF THIS SECTION.
4. tHE MANUFACTURER SOLD vapor PRODUCTS IN THIS STATE that are REQUIRED TO BE CERTIFIED UNDER THIS section DURING A PERIOD WHEN EITHER THE MANUFACTURER OR THE vapor PRODUCT HAD NOT BEEN CERTIFIED AND LISTED ON THE DIRECTORY.
5. tHE INFORMATION PROVIDED BY THE MANUFACTURER AS PART OF THE CERTIFICATION IS DETERMINED BY THE DIRECTOR TO CONTAIN FALSE INFORMATION OR to CONTAIN MATERIAL MISREPRESENTATIONS OR OMISSIONS. a MANUFACTURER THAT KNOWINGLY FALSELY REPRESENTS, materially misrepresents or omits ANY INFORMATION REQUIRED BY A CERTIFICATION AND THAT ON NOTICE FROM THE DIRECTOR DOES NOT CORRECT THE FALSE material misrepresented or omitted INFORMATION is GUILTY OF A class 3 MISDEMEANOR FOR EACH FALSE REPRESENTATION, material misrepresentation or omission.
j. tHE DIRECTOR SHALL PROVIDE a MANUFACTURER NOTICE of deficiencies in a certification AND AN OPPORTUNITY TO CURE DEFICIENCIES in a certification BEFORE REMOVING the MANUFACTURER OR a VAPOR PRODUCT FROM THE DIRECTORY. tHE DIRECTOR MAY NOT REMOVE a MANUFACTURER OR a vAPOR PRODUCT FROM THE DIRECTORY for AT LEAST THIRTY DAYS AFTER the MANUFACTURER HAS BEEN GIVEN NOTICE by the director of an intended action to remove the manufacturer or vapor product from the directory. tHE NOTICE OF AN INTENDED ACTION to remove the manufacturer or vapor product from the directory SHALL CLEARLY DESCRIBE THE REASONS FOR THE INTENDED ACTION. NOTICE SHALL BE CONSIDERED SUFFICIENT AND BE DEEMED RECEIVED BY the MANUFACTURER IF THE NOTICE IS provided EITHER ELECTRONICALLY TO AN EMAIL ADDRESS OR BY fax to a NUMBER PROVIDED BY THE MANUFACTURER in the manufacturer's MOST RECENT CERTIFICATION. the mANUFACTURER has FIFTEEN DAYS after THE DATE OF SERVICE OF THE NOTICE OF THE INTENDED ACTION TO CURE THE DEFICIENCIES in the certification OR OTHERWISE ESTABLISH THAT THE MANUFACTURER OR VAPOR PRODUCT SHOULD BE INCLUDED IN THE DIRECTORY.
k. RETAILERS, distributors and wholesalers HAVE THIRTY DAYS TO SELL A MANUFACTURER'S VAPOR PRODUCTS THAT WERE IN THE RETAILER'S, distributor's or wholesaler's INVENTORY AS OF THE DATE OF REMOVAL OF the MANUFACTURER OR vapor product FROM THE DIRECTORY. tHIRTY DAYS after REMOVAL FROM THE DIRECTORY, THE VAPOR PRODUCTS OF A MANUFACTURER removed from the directory ARE SUBJECT TO SEIZURE, FORFEITURE AND DESTRUCTION OR DISPOSAL AND MAY NOT BE PURCHASED OR SOLD. THE COST OF SEIZURE, FORFEITURE AND DESTRUCTION OR DISPOSAL PURSUANT TO THIS SUBSECTION SHALL BE PAID BY THE PERSON OR ENTITY FROM WHOM THE VAPOR PRODUCTS ARE CONFISCATED.
l. BEGINNING december 1, 2025 OR ON THE DATE THAT THE DIRECTOR FIRST MAKES THE DIRECTORY AVAILABLE FOR PUBLIC INSPECTION, WHICHEVER IS LATER, VAPOR PRODUCTS NOT INCLUDED IN THE DIRECTORY MAY NOT BE sold, EITHER DIRECTLY OR THROUGH AN IMPORTER, DISTRIBUTOR, WHOLESALER, RETAILER OR SIMILAR INTERMEDIARY OR INTERMEDIARIES. tHE FOLLOWING EXCEPTIONS APPLY:
1. eACH RETAILER has SIXTY DAYS after THE DATE THAT THE DIRECTOR FIRST MAKES THE DIRECTORY AVAILABLE TO SELL VAPOR PRODUCTS THAT WERE IN THE RETAILER'S INVENTORY AND NOT INCLUDED IN THE DIRECTORY OR shall REMOVE THOSE VAPOR PRODUCTS FROM INVENTORY.
2. eACH DISTRIBUTOR OR WHOLESALER has SIXTY DAYS after THE DATE THAT THE DIRECTOR FIRST MAKES THE DIRECTORY AVAILABLE TO REMOVE THOSE VAPOR PRODUCTS INTENDED FOR RETAIL SALE FROM THE DISTRIBUTOR'S OR WHOLESALER'S INVENTORY.
m. sIXTY DAYS after the director makes THE DIRECTORY available, VAPOR PRODUCTS NOT LISTED IN THE DIRECTORY AND INTENDED FOR RETAIL SALE ARE SUBJECT TO SEIZURE, FORFEITURE, DESTRUCTION OR DISPOSAL AND MAY NOT BE PURCHASED OR SOLD FOR RETAIL SALE OR TO A CONSUMER EXCEPT AS PROVIDED IN SUBSECTIONS k AND l of this section. THE COST OF SEIZURE, FORFEITURE, DESTRUCTION OR DISPOSAL SHALL BE PAID BY THE PERSON OR ENTITY FROM WHOM THE VAPOR PRODUCTS ARE CONFISCATED.
n. tHE DIRECTOR OR THE ATTORNEY GENERAL MAY IMPOSE THE FOLLOWING CIVIL PENALTIES FOR VIOLATIONS OF THIS SECTION:
1. a RETAILER, DISTRIBUTOR, WHOLESALER OR IMPORTER WHO SELLS OR OFFERS FOR SALE A VAPOR PRODUCT FOR RETAIL SALE or TO A CONSUMER THAT IS NOT INCLUDED IN THE DIRECTORY SHALL BE SUBJECT TO A CIVIL PENALTY OF $500 FOR EACH day of the violation until the vapor product is removed from the market or PROPERLY listed in the directory. fOR A SECOND VIOLATION of this paragraph WITHIN A twelve-month PERIOD, THE CIVIL PENALTY SHALL BE AT LEAST $750 BUT NOT MORE THAN $1,000 PER day. fOR A THIRD or subsequent VIOLATION of this paragraph WITHIN A twelve-MONTH PERIOD, THE CIVIL PENALTY SHALL BE AT LEAST $1,000 BUT NOT MORE THAN $1,500 PER day.
2. a MANUFACTURER WHOSE VAPOR PRODUCTS ARE NOT LISTED IN THE DIRECTORY AND that CAUSES THE VAPOR PRODUCTS THAT ARE NOT LISTED TO BE SOLD FOR RETAIL SALE or TO A CONSUMER, WHETHER DIRECTLY OR THROUGH AN IMPORTER, DISTRIBUTOR, WHOLESALER, RETAILER OR SIMILAR INTERMEDIARY OR INTERMEDIARIES, IS SUBJECT TO A CIVIL PENALTY OF $10,000 FOR EACH INDIVIDUAL VAPOR PRODUCT OFFERED FOR SALE IN VIOLATION OF THIS SECTION UNTIL THE VAPOR PRODUCT THAT IS THE SUBJECT OF THE VIOLATION IS REMOVED FROM THE MARKET OR IS LISTED ON THE DIRECTORY. A SECOND OR SUBSEQUENT VIOLATION OF THIS PARAGRAPH SHALL CONSTITUTE AN UNFAIR OR DECEPTIVE ACT OR PRACTICE PURSUANT TO section 44-1522. THE ATTORNEY GENERAL MAY INVESTIGATE THE ACT OR PRACTICE AND TAKE ACTION PURSUANT TO TITLE 44, CHAPTER 10, ARTICLE 7.
o. iN AN ACTION TO ENFORCE THIS SECTION, THE DEPARTMENT SHALL BE ENTITLED TO RECOVER COSTS, INCLUDING THE COSTS OF INVESTIGATION, EXPERT WITNESS FEES AND REASONABLE ATTORNEY FEES.
p. aS A CONDITION TO HAVING A NAME OR VAPOR PRODUCT LISTED AND RETAINED IN THE DIRECTORY, a MANUFACTURER that is NOT REGISTERED TO DO BUSINESS IN this STATE SHALL APPOINT AND CONTINUALLY ENGAGE WITHOUT INTERRUPTION A REGISTERED AGENT IN THIS STATE FOR SERVICE OF PROCESS ON WHOM ALL PROCESS AND ANY ACTION ARISING OUT OF THE ENFORCEMENT OF THIS ARTICLE MAY BE SERVED. THE MANUFACTURER SHALL PROVIDE TO THE DIRECTOR THE NAME, ADDRESS AND TELEPHONE NUMBER OF THE MANUFACTURER'S AGENT AND SHALL PROVIDE ANY OTHER INFORMATION RELATING TO THE MANUFACTURER'S AGENT AS REQUESTED BY THE DIRECTOR. a MANUFACTURER LOCATED OUTSIDE OF THE UNITED STATES SHALL CAUSE EACH OF THE MANUFACTURER'S IMPORTERS OF ANY OF THE MANUFACTURER'S VAPOR PRODUCTS TO BE SOLD IN this STATE TO APPOINT AND CONTINUALLY ENGAGE WITHOUT INTERRUPTION THE SERVICES OF A REGISTERED AGENT IN THIS STATE. aLL OBLIGATIONS OF THIS SUBSECTION WITH RESPECT TO THE APPOINTMENT OF AN AGENT APPLY TO AN IMPORTER OF VAPOR PRODUCTS.
Q. a MANUFACTURER SHALL PROVIDE WRITTEN NOTICE TO THE DIRECTOR THIRTY DAYS before THE TERMINATION OF THE AUTHORITY OF AN AGENT APPOINTED PURSUANT TO SUBSECTION p OF THIS SECTION. NOt LESS THAN FIVE DAYS before THE TERMINATION OF AN EXISTING AGENT APPOINTMENT, the MANUFACTURER SHALL PROVIDE TO THE DIRECTOR THE NAME, ADDRESS AND TELEPHONE NUMBER OF THE MANUFACTURER'S NEWLY APPOINTED AGENT AND SHALL PROVIDE ANY OTHER INFORMATION RELATING TO THE NEW APPOINTMENT AS MAY BE REQUESTED BY THE DIRECTOR. if AN AGENT TERMINATES the APPOINTMENT, THE MANUFACTURER SHALL NOTIFY THE DIRECTOR OF THE TERMINATION WITHIN FIVE DAYS AND SHALL INCLUDE PROOF OF THE APPOINTMENT OF A NEW AGENT.
r. aNY NONRESIDENT OR FOREIGN MANUFACTURER THAT HAS NOT REGISTERED TO DO BUSINESS IN this STATE AS A FOREIGN CORPORATION OR BUSINESS ENTITY SHALL SUBMIT TO THE DIRECTOR A SURETY BOND OR OTHER CASH SECURITY PAYABLE TO this STATE IN THE AMOUNT OF $25,000. THE BOND SHALL BE POSTED BY A CORPORATE SURETY LOCATED WITHIN THE UNITED STATES. THE BOND SHALL BE CONDITIONED ON THE PERFORMANCE BY THE MANUFACTURER OF ALL REQUIREMENTS AND OBLIGATIONS IMPOSED BY THIS SECTION. A SURETY ON A MANUFACTURER'S BOND SHALL BE LIABLE UP TO THE AMOUNT OF THE BOND AND this STATE MAY EXECUTE ON SUCH SURETY BOND FOR THE PAYMENT OF fines and civil PENALTIES IMPOSED ON THE MANUFACTURER PURSUANT TO THIS SECTION AND FOR THE COSTS OF SEIZURE AND DESTRUCTION OF VAPOR PRODUCTS SOLD IN VIOLATION OF THIS SECTION. iF this STATE EXECUTES ON THE SURETY BOND, this STATE MAY REQUIRE THE MANUFACTURER TO PROVIDE AN ADDITIONAL BOND AS A CONDITION FOR RETAINING THE MANUFACTURER OR ITS VAPOR PRODUCTS IN THE DIRECTORY. a SURETY ON A BOND FURNISHED BY A MANUFACTURER SHALL BE RELEASED AND DISCHARGED FROM LIABILITY TO this STATE ACCRUING ON THE BOND SIXTY DAYS after THE DATE ON WHICH THE SURETY HAS LODGED WITH THE DIRECTOR A WRITTEN REQUEST TO BE RELEASED AND DISCHARGED. a RELEASE AND DISCHARGE does NOT RELIEVE, RELEASE OR DISCHARGE THE SURETY FROM LIABILITY ALREADY ACCRUED OR that ACCRUEs BEFORE THE SIXTY-DAY PERIOD expires. ON RECEIVING A WRITTEN REQUEST FROM A SURETY TO BE RELEASED AND DISCHARGED, THE DIRECTOR SHALL NOTIFY THE MANUFACTURER WHO FURNISHED THE BOND. UNLESS THE MANUFACTURER, ON OR BEFORE THE EXPIRATION OF THE SIXTY-DAY PERIOD, FILES WITH THE DIRECTOR A NEW BOND AND THE DIRECTOR APPROVES AND ACCEPTS THE SURETY, THE DIRECTOR SHALL REMOVE THE MANUFACTURER AND ITS VAPOR PRODUCTS FROM THE DIRECTORY.
s. eACH RETAILER, DISTRIBUTOR AND WHOLESALER THAT SELLS OR DISTRIBUTES VAPOR PRODUCTS IN THIS STATE SHALL BE SUBJECT TO UNANNOUNCED COMPLIANCE CHECKS FOR PURPOSES OF ENFORCING THIS SECTION. UNANNOUNCED FOLLOW-UP COMPLIANCE CHECKS OF ALL NONCOMPLIANT RETAILERS, DISTRIBUTORS AND WHOLESALERS SHALL BE CONDUCTED WITHIN THIRTY DAYS AFTER ANY VIOLATION OF THIS SECTION. THE DIRECTOR SHALL PUBLISH THE RESULTS OF ALL COMPLIANCE CHECKS AT LEAST ANNUALLY AND SHALL MAKE THE RESULTS AVAILABLE TO THE PUBLIC ON REQUEST.
t. THE DIRECTOR OR THE ATTORNEY GENERAL MAY ENFORCE THIS SECTION AND MAY DESIGNATE AGENTS TO ENFORCE THIS SECTION. tHE DIRECTOR, THE ATTORNEY GENERAL OR THEIR DESIGNEES MAY EXAMINE THE STOCK OF VAPOR PRODUCTS ON THE PREMISES AND THE BOOKS, PAPERS, INVOICES AND OTHER RECORDS OF A PERSON THAT POSSESSES, CONTROLS OR OCCUPIES A PREMISES WHERE VAPOR PRODUCTS ARE PLACED, STORED, SOLD OR OFFERED FOR SALE. eACH PERSON THAT POSSESSES, CONTROLS OR OCCUPIES A PREMISES WHERE VAPOR PRODUCTS ARE PLACED, SOLD OR OFFERED FOR SALE MUST ALLOW THE DIRECTOR, THE ATTORNEY GENERAL OR THEIR DESIGNEES THE MEANS, FACILITIES AND OPPORTUNITY FOR THE EXAMINATIONS AUTHORIZED BY THIS SECTION.
u. a VAPOR PRODUCT OFFERED FOR SALE IN VIOLATION OF THIS SECTION IS CONTRABAND AND MAY BE SEIZED WITHOUT A WARRANT BY THE DIRECTOR, THE ATTORNEY GENERAL OR THEIR DESIGNEES OR EMPLOYEES OR BY ANY LAW ENFORCEMENT OFFICER OF THIS STATE IF DIRECTED BY THE DIRECTOR OR ATTORNEY GENERAL.
V. tHE DIRECTOR AND THE ATTORNEY GENERAL MAY ESTABLISH RULES NECESSARY TO eFFECT THE PURPOSES OF THIS SECTION. tHE RULES SHALL ENSURE THAT THE DIRECTOR AND ATTORNEY GENERAL SHARE INFORMATION REGARDING INSPECTION AND ENFORCEMENT ACTIVITIES RELATED TO THIS CHAPTER.
w. bEGINNING jANUARY 1, 2026, AND ON OR BEFORE JANUARY 1 OF EACH YEAR, THE DIRECTOR SHALL PROVIDE TO THE PRESIDENT OF THE SENATE AND THE SPEAKER OF THE HOUSE OF REPRESENTATIVES A REPORT THAT PROVIDES ALL OF THE FOLLOWING:
1. tHE STATUS OF THE DIRECTORY, INCLUDING A DISCUSSION OF THE DATE OF INITIAL PUBLICATION, DATES OF UPDATED VERSIONS AND ISSUES THE DIRECTOR HAS ENCOUNTERED RELATING TO MAKING UPDATES TO THE DIRECTORy.
2. rEVENUE AND EXPENDITURES RELATED TO ADMINISTRATION OF THIS SECTION.
3. eNFORCEMENT ACTIVITIES UNDERTAKEN PURSUANT TO THIS SECTION.
