Revision: Jan. 22, 2025, 5:21 p.m.
SB 80-FN - AS INTRODUCED
2025 SESSION
25-0933
08/05
SENATE BILL 80-FN
SPONSORS: Sen. Lang, Dist 2; Sen. Pearl, Dist 17; Rep. Almy, Graf. 17
COMMITTEE: Commerce
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ANALYSIS
This bill consolidates licensing, auditing, and enforcement responsibilities for wholesale and retail e-cigarettes sales under the liquor commission.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
25-0933
08/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Five
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Notice to Liquor Commission. Amend RSA 78:23 to read as follows:
78:23 Notice to Liquor Commission. The commissioner shall provide notice to the liquor commission of any violation of this chapter by a retailer, [whose license has been suspended or revoked by the commission] wholesaler, or manufacturer.
2 Definitions; Tobacco Product. Amend RSA 126-K:2, XI to read as follows:
XI. "Tobacco product" means any product containing, made or derived from tobacco or nicotine that is intended for human consumption, including but not limited to cigarettes, electronic cigarettes, loose tobacco, smokeless tobacco, and cigars. Tobacco products shall not include premium cigars or any product that has been approved by the United States Food and Drug Administration for sale as a tobacco cessation product and is being marketed and sold exclusively for such approved use. [or derived from tobacco including, but not limited to, cigarettes, smoking tobacco, cigars, chewing tobacco, snuff, pipe tobacco, smokeless tobacco, and smokeless cigarettes. "Tobacco product" shall not include drugs, devices, or combination products authorized for sale by the United States Food and Drug Administration, as those terms are defined in the federal Food, Drug, and Cosmetic Act.]
3 Definitions; E-Cigarette. Amend RSA 175:1, XXXI-a 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 or e-liquid. This term shall include such devices whether they are manufactured as e-cigarettes, e-cigars, or e-pipes, or under any other product name, and e-liquid. "E-liquid" means any liquid, oil, or wax product containing, but not limited to, nicotine or cannabis intended for use in devices used for inhalation.
4 Tobacco Products; Definitions. Amend RSA 175:1, LXIV-d to read as follows:
LXIV-d. "Tobacco products" means any product containing, made, or derived from tobacco or nicotine that is intended for human consumption, including but not limited to cigarettes, e-cigarettes, loose tobacco, smokeless tobacco, and cigars. Tobacco products shall not include premium cigars or any product that has been approved by the United States Food and Drug Administration for sale as a tobacco cessation product and is being marketed and sold exclusively for such approved use. [cigarettes, loose tobacco, and smokeless tobacco.]
LXIV-e. "Tobacco products manufacturer" means a person domiciled in the United States engaged in the business of importing, exporting, producing, or manufacturing tobacco products.
LXIV-f. "Tobacco products wholesaler" means any person engaged in the business of receiving, storing, purchasing, and selling tobacco products from any source for distribution to persons other than consumers, except those persons exempted from the tobacco tax under RSA 78:5.
[LXIV-e.] LXIV-g. "Vending machine" means any self-service device which, upon insertion of money, tokens, or any other form of payment, dispenses tobacco, cigarettes, or any other tobacco product.
5 Licenses; Manufacture, Wholesale Sales. 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 the manufacture, wholesale sales, or 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.
6 Retail Tobacco Licenses. Amend RSA 178:19-a to read as follows:
178:19-a Retail Tobacco [License] Licenses.
I. The commission may issue a retail tobacco license to a person engaged in the business of retail sales and distribution of tobacco products including e-cigarettes and alternative nicotine products 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.
I-a. The commission may issue a retail tobacco license to any business holding a license to sell alcoholic beverages under RSA 178 for an additional fee of $6 per licensed location.
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 21. Warning: violators of these provisions may be subject to a fine."
IV. All retail sales of tobacco, including 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.
V. The fee for a retail tobacco license shall be as determined in RSA 178:29, II(e).
VI. All New Hampshire tobacco licensees shall abide by all federal laws, regulations, and rules governing the sale, packaging, distribution and advertising of tobacco products, e-cigarettes, liquid nicotine, and alternative nicotine products.
VII. All retail tobacco licenses shall purchase their tobacco products from a licensed tobacco products wholesaler as defined in RSA 175:1, LXIV-f.
VIII. Each retailer shall keep complete and accurate records of all tobacco stamps purchased and all tobacco products manufactured, produced, imported, distributed, bought, and sold in this state. Complete records shall be safely preserved for 3 years to ensure permanency and accessibility for inspection by the liquor commission.
IX. The commission may adopt rules under RSA 541-A necessary to effect the purposes of this section.
7 New Sections; Tobacco Products; Licenses. Amend RSA 178 by inserting after section 19-d the following new sections:
178:19-e Tobacco Products Manufacturer.
I. No tobacco products manufacturer shall engage in the business of selling or distributing tobacco products, including e-cigarettes, in this state, unless it is registered with the secretary of state, it has obtained a certificate of good standing from the department of revenue administration, and it is licensed as a tobacco products manufacturer in this state, as applicable.
II. The fees for tobacco products manufacturer licenses and license renewals shall be as determined in RSA 178:29, V-a(a) and (d):
III. Any tobacco products manufacturer of tobacco products, including e-cigarettes, that ceases business operations requiring a license under this chapter during the license period shall inform the liquor commission in writing and relinquish its license to the liquor commission within 30 days after ceasing business operations.
IV. Each manufacturer shall keep complete and accurate records of all tobacco tamps purchased and all tobacco products manufactured, produced, imported, distributed, bought, and sold in this state. Complete records shall be safely preserved for 3 years to ensure permanency and accessibility for inspection by the liquor commission.
V. The commission shall adopt rules under RSA 541-A relative to this section.
178:19-f Tobacco Product Wholesaler.
I. No tobacco products wholesaler shall engage in the business of selling or distributing tobacco products, including e-cigarettes, in this state, unless it is registered with the secretary of state, it has obtained a certificate of good standing from the department of revenue administration, and it is licensed as a tobacco products wholesaler in this state, as applicable.
II. A wholesaler shall have a separate license for each location.
III. The fees for wholesaler licenses and license renewals shall be as determined in RSA 178:29, V-a(a) and (d):
IV. All wholesale tobacco licensees shall purchase their tobacco products from a licensed tobacco products manufacturer as defined in RSA 175:1 LXIV-f.
V. Any wholesaler of tobacco products, including e-cigarettes, that ceases business operations requiring a license under this chapter during the license period shall inform the liquor commission in writing and relinquish its license to the liquor commission within 30 days after ceasing business operations.
VI. Each wholesaler, shall keep complete and accurate records of all tobacco stamps purchased and all tobacco products manufactured, produced, imported, distributed, bought, and sold in this state. Complete records shall be safely preserved for 3 years to ensure permanency and accessibility for inspection by the liquor commission.
VII. The commission shall adopt rules under RSA 541-A relative to this section.
178:19-g Tobacco Product Seizure.
I. The commission with or without process may seize:
(a) Tobacco products taxed under RSA 78 that are possessed or controlled by a person for the purpose of selling or removing the tobacco products in violation of this chapter or RSA 78;
(b) Tobacco products that are removed, deposited, or concealed by a person intending to avoid payment of taxes imposed by RSA 78;
(c) An automobile, truck, boat, conveyance, or other type of vehicle used to remove or transport tobacco products by a person intending to avoid payment of taxes imposed by RSA 78; and
(d) Equipment, paraphernalia, or other tangible personal property used by a person intending to avoid payment of taxes imposed by RSA 78 found in the place where the tobacco products are found.
II. An item seized under this section is forfeited to the state and remains in the custody of the commission for disposition as provided by this section. The seized item is not subject to replevin.
III. The seizure, forfeiture, and sale of tobacco products or property under this section, with or without court action, is not a defense to criminal prosecution for an offense or from liability for a penalty under RSA 78 or this chapter.
8 Fees; Tobacco. RSA 178:29, V-a is repealed and reenacted to read as follows:
V-a. Annual tobacco licenses shall be as follows:
(a) Tobacco manufacturer, $100.
(b) Tobacco vending machine license, $35, plus $6 for each machine.
(c) Tobacco sampling license, $6.
(d) Tobacco product wholesaler, $250.
9 New Paragraphs; Penalties; Tobacco. Amend RSA 179:58 by inserting after paragraph II the following new paragraphs:
III. Any person who sells, offers for sale, or possesses with intent to sell in this state any tobacco products or e-cigarettes without the appropriate license, as provided in this title, shall be subject to criminal penalties as provided in RSA 21-J:39.
IV. Notwithstanding RSA 21-J:14, information regarding licenses issued pursuant to this chapter and RSA 126-K shall be public records.
10 Effective Date. This act shall take effect July 1, 2025.
25-0933
1/17/25
SB 80-FN- FISCAL NOTE
AS INTRODUCED
FISCAL IMPACT:
The Office of Legislative Budget Assistant is unable to complete a fiscal note for this bill as it is awaiting information from the Liquor Commission and Department of Revenue Administration. The Commission and Department were contacted on 1/13/25 for a fiscal note worksheet. When completed, the fiscal note will be forwarded to the Senate Clerk's Office.
AGENCIES CONTACTED:
Liquor Commission and Department of Revenue Administration