HB 2359

Present law requires e very dealer or distributor of tobacco products to pay to the department of revenue for exclusive state purposes, taxes in addition to all other taxes or fees, for the privilege of selling cigarettes and tobacco products in this state. T he tax rate on vapor products is 10% of the wholesale cost price. As used in this bill, a "v apor product "" means a noncombustible product containing consumable material, whether natural or synthetic, that employs a mechanical heating element, battery, electronic circuit, or other mechanism, regardless of shape or size, that can be used to produce or emit a visible or non-visible vapor, but such term d oes not include a product regulated by the federal Food, Drug, and Cosmetic Act . As used in that definition, a ""c onsumable material "" means a liquid nicotine solution intended for use in a vapor product . This bill revises the definition of ""consumable material"" to, instead, mean a liquid nicotine solution, whether natural or synthetic, or a liquid nicotine analogue intended for use in a vapor product . PENALTY Present law provides that a retailer, distributor, wholesaler, or importer who sells or offers for sale a vapor product for retail sale in this state to anyone under 21 is subject to a fine of $2, 500 for the first offense, and a fine of at least $ 20, 000 and loss of licensure for any subsequent offense. This bill clarifies that such fines are issued by the alcoholic beverage commission ."