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ARIZONA HOUSE OF REPRESENTATIVESFifty-fifth Legislature First Regular Session |
House: COM DPA 10-0-0-0 |
HB 2556: tobacco; vaping; penalties; legal age
Sponsor: Representative Osborne, LD 13
Caucus & COW
Overview
Prescribes age requirements, penalties and restrictions, and tax return reporting requirements relating to the purchase and sale of tobacco and vapor products.
A person who knowingly sells, gives or furnishes cigars, cigarettes or cigarette papers or smoking and chewing tobacco (tobacco products), a vapor product or any instrument or paraphernalia that is specifically designed for the smoking or ingestion of tobacco or shisha, including hookah or waterpipe, to a minor is guilty of a petty offense.
A minor who buys or possesses or knowingly accepts or receives tobacco product, vapor product or any instrument or paraphernalia that is specifically designed for the smoking or ingestion of tobacco or shisha, including hookah or waterpipe, is guilty of a petty offense.
A minor who misrepresents their age to any other person by means of a written instrument of identification with the intent to induce the other person to sell, give or furnish such products or instruments is guilty of a petty offense and is required to pay a fine of no more than $500. (A.R.S. § 13-3622)
Statute defines a minor as a person under 18 years of age (A.R.S. § 1-215).
Statute defines Shisha as any mixture of tobacco leaf and honey, molasses or dried fruit or any other sweetener. Vapor product means a noncombustible tobacco-derived product containing nicotine that employs a mechanical heating element, battery or circuit, regardless of shape or size, that can be used to heat a liquid nicotine solution contained in cartridges. Vapor product does not include any product that is regulated by the United States Food and Drug Administration (A.R.S. § 13-3622)
In 2019, The Federal Food, Drug, and Cosmetic Act was amended by legislation which established that it is unlawful for any retailer to sell tobacco products to any person younger than 21 years of age.
Provisions
Furnishing of Tobacco and Vapor Products (Sec. 1)
1. Replaces minor with a person who is under the minimum age of sale for tobacco products as set by the Federal Food, Drug, and Cosmetic Act.
2. Prescribes penalties and restrictions for enterprises that violate laws relating to the furnishing of tobacco and vapor products.
3. Specifies an enterprise that violates an imposed restriction is subject to additional fines and increased restrictions.
4. Prohibits a court from waiving a fine if the enterprise commits a second or subsequent violation after 3 years from the first violation.
5. Requires at least one owner or manager and one person serving in a nonmanagerial position to attend a tobacco retailer educational course, if ordered by a court.
Additional Tobacco & Vapor Products Retailer Tax Reporting Requirements (Sec. 4)
6. Specifies the additional reporting requirements begin January 1, 2022.
7. Mandates retailers to keep books and records that show the gross proceeds of sales of tobacco and vapor products and the gross proceeds of other sales separately.
8. Requires retailers, when filing tax returns, to report gross proceeds of sales of tobacco and vapor products separately from the gross proceeds of other sales in the method and manner prescribed by the Arizona Department of Revenue (ADOR).
a) Instructs ADOR to provide a method to register to report the gross proceeds of sales of tobacco and vapor products.
9. Specifies retailers may engage in the same activities and are subject to the same inspection requirements as other retailers.
10. Specifies ADOR's review or verification of a retailer's use of the proper business code or description of business activity does not constitute an audit of the taxpayer.
11. Classifies, as a class 3 misdemeanor, a retailer who knowingly prevents or hinders an ADOR inspection.
12. Classifies, as a class 2 misdemeanor, a retailer who knowingly fails or refuses to allow any lawful examination of any book, paper, account or other memoranda by ADOR.
Additional Civil Penalties (Sec. 2)
13. Outlines additional civil penalties for tobacco and vapor products retailers that fail to comply with laws relating to additional tax return reporting requirements, unless the retailer shows that the failure is due to a reasonable cause.
14. Outlines additional civil penalties payable to ADOR for retailers who violate laws relating to furnishing of tobacco and vapor products.
15. Allows ADOR, in administering civil penalties, to rely on violation information provided by the Attorney General (AG).
Miscellaneous
16. Requires the ADOR to release confidential information as requested by the AG for the purpose of determining compliance with or enforcing laws governing the furnishing of tobacco and vapor products. (Sec. 3)
17. Requires a person selling a tobacco or vapor product to report in the form and manner prescribed by ADOR. (Sec. 4)
18. Requires ADOR, upon notice from the AG that a court has imposed a second or subsequent violation on an enterprise, to provide the AG with certain TPT returns and any additional information.
a) Allows ADOR to adopt rules on provide such information. (Sec. 4)
19. Defines retailer, tobacco product, and vapor product. (Sec. 2, 4)
20. Directs ADOR to separately account for revenues collected from the gross proceeds of sales of tobacco and vapor products. (Sec. 5, 6)
21. Exempts ADOR from rulemaking requirements for one year after the effective date of this act. (Sec. 7)
22. Contains a conditional enactment clause. (Sec. 8)
Amendments
Committee on Commerce
1. Specifies the penalties on enterprises to violate furnishing of tobacco product laws only apply to the specific location in which the violation occurred.
2. Removes the section relating to penalties for retailers who fail to comply with tax return reporting requirements.
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6. HB 2556
7. Initials PRB Page 0 Caucus & COW
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