Revises provisions relating to nicotine products. (BDR 32-989)

Existing law requires the Department of Taxation to regulate and collect a tax on cigarettes and other tobacco products and distinguishes alternative nicotine products and vapor products from other tobacco products for such purposes. (Chapter 370 of NRS) Existing law also requires: (1) manufacturers of tobacco products whose cigarettes are sold in this State to execute and deliver a certification to the Attorney General; and (2) the Department to create and maintain a directory of all manufacturers that have executed and delivered such certifications. (NRS 370.665, 370.675) Section 6 of this bill similarly requires manufacturers of vapor products to execute and deliver a certification to the Attorney General. Section 7 of this bill requires such a manufacturer to notify the Attorney General not later than 30 days after any material change to the certification. Section 8 of this bill requires the Department to create and maintain a directory of all manufacturers of vapor products that have executed and delivered a certification indicating compliance with federal marketing authorization requirements. Section 9 of this bill requires the Department to provide a manufacturer of vapor products notice and an opportunity to cure any violation or deficiency before removing the manufacturer or any vapor products from the directory. Section 9 prohibits a wholesale dealer from purchasing vapor products that have been removed from the directory and requires a retail dealer or wholesale dealer who receives notice of the removal of a product or manufacturer from the directory to take certain actions. Section 10 of this bill prohibits vapor products that are not included in the directory, on or after the date the Department first makes the directory available for public inspection, from being sold in this State or to a consumer in this State. Sections 11 and 12 of this bill require nonresident and foreign manufacturers of vapor products to appoint an agent in this State for service of process and to submit a bond payable to the State, respectively. Section 13 of this bill provides for annual unannounced compliance checks on each retailer, distributor and wholesaler that sells or distributes vapor products in this State. Section 14 of this bill provides civil penalties for selling or offering for sale any vapor product not included in the directory. Section 14.5 of this bill creates the Account for Vapor Product Enforcement in the State General Fund. Section 15 of this bill requires the Department to prepare and submit to the Legislature an annual report regarding the directory and section 16 of this bill requires the Department to adopt regulations to carry out the provisions of sections 2-16 of this bill. Sections 3, 4 and 5 define certain terms for purposes of implementing the provisions of this bill, including “vapor product,” which is defined for such purposes to mean any noncombustible product containing nicotine. Section 17 of this bill authorizes the seizure of any cigarette, product containing, made or derived from tobacco, vapor product, alternative nicotine product or product containing, made or derived from nicotine sold by a person without a license. Section 18 of this bill prohibits a person from selling, giving, delivering or furnishing to a person a nicotine analogue and defines the term “nicotine analogue” for such purposes. Section 19.5 of this bill authorizes the seizure of nicotine analogue products under certain circumstances. Section 20 of this bill authorizes the Department to share information obtained in investigations with federal, state or local agencies for purposes of enforcement of corresponding laws of other states. Section 21 of this bill exempts certain information provided in a certification executed and delivered pursuant to section 6 from the requirement that public records and public books be open to inspection. Section 21.5 of this bill makes an appropriation to the Office of the Attorney General for the purposes of carrying out the provisions of sections 2-16.

• Jeff StoneR
• Melanie ScheibleD