Bill Summary – FastDemocracy

-- S 0920
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     LC002809
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                         STATE             OF          RHODE              ISLAND
                                           IN GENERAL ASSEMBLY
                                         JANUARY SESSION, A.D. 2021
                                               ____________
                                                 AN ACT
                   RELATING TO HEALTH AND SAFETY -- DEPARTMENT OF HEALTH
                   Introduced By: Senators Acosta, Kallman, Bell, and Miller
                   Date Introduced: May 20, 2021
                   Referred To: Senate Special Legislation and Veterans Affairs
     It is enacted by the General Assembly as follows:
          SECTION 1. Title 23 of the General Laws entitled "HEALTH AND SAFETY" is hereby
 amended by adding thereto the following chapter:
                                            CHAPTER 1.12
   THE RHODE ISLAND VAPOR PRODUCTS REGULATORY AND LICENSURE ACT OF
                                                   2021
          23-1.12-1. Short title.
          This act shall be known and may be cited as the "Rhode Island Vapor Products Regulatory
 and Licensure Act of 2021."
          23-1.12-2. Application.
          This chapter applies to the following:
          (1) The commercial manufacturing, bottling, selling, bartering, or importing of e-liquid in
 this state;
          (2) The sale, possession, and use of e-liquid products in this state; and
          (3) The sale, possession, and use of any vapor product in this state.
          23-1.12-3. Purpose.
          The purpose of this chapter is to protect public health and safety by:
          (1) Ensuring the safety and security of e-liquid and vapor products manufactured for sale
 in this state;
          (2) Ensuring that e-liquid and vapor products manufactured or sold in this state conforms
 to appropriate standards related to labeling, marketing, and appearance; and
         (3) Ensuring that e-liquid and vapor products are not contaminated or adulterated by the
 inclusion of ingredients or other substances that might pose unreasonable threats to public health
 and safety.
         23-1.12-4. Definitions.
         As used in this chapter:
         (1) "Advertise" means the publication or dissemination of an advertisement.
         (2) "Advertisement" means and includes any written or verbal statement, illustration, or
 depiction which is calculated to induce sales of e-liquids or vapor products, including any written,
 printed, graphic, or other material, billboard, sign, or other outdoor display, public transit card,
 other periodical literature, publication, or in a radio or television broadcast, or in any other media;
 except that such term shall not include:
         (i) Any label affixed to any e-liquid or vapor product, or any individual covering, carton,
 or other wrapper of such container that constitutes a part of the labeling under provisions of this
 chapter; and
         (ii) Any editorial or other reading material (e.g., news release) in any periodical or
 publication or newspaper for the publication of which no money or valuable consideration is paid
 or promised, directly or indirectly, by any licensee, and which is not written by or at the direction
 of the licensee.
         (3) "Advertising sign" means any sign, poster, display, billboard, or any other stationary or
 permanently affixed advertisement promoting the sale of e-liquids or vapor products which are not
 manufactured, distributed, or sold on the same lot.
         (4) "Applicant" means a person who applies for a permit under this chapter.
         (5) "Delivery sale" means a sale of e-liquids or vapor products to a consumer in this state
 in which the consumer submits the order for the sale:
         (i) By telephone;
         (ii) Over the Internet; or
         (iii) Through the mail or another delivery system; and the e-liquids or vapor products are
 shipped through a delivery service. "Delivery sale" does not include a sale of e-liquids or vapor
 products not for personal consumption to a person who is a manufacturer, distributor, or retailer.
         (6) "Delivery service" means a person, including the United States Postal Service, that is
 engaged in the delivery of letters, packages, or containers.
         (7) "Department" means the Rhode Island department of health.
         (8) "Distributor" means a person who has a permit that:
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         (i) Distributes, sells, barters, or exchanges e-liquid or vapor products in this state for the
 purpose of resale; or
         (ii) Purchases e-liquid or vapor products directly from a manufacturer or distributor for the
 purpose of resale in this state.
         (9) "E-liquid" means a substance that:
         (i) May or may not contain nicotine;
         (ii) Is intended to be vaporized and inhaled using a vapor product; and
         (iii) Is a legal substance under the laws of this state and the laws of the United States.
         (iv) E-liquid does not include cannabis, THC or CBD as defined under the laws of this state
 and the laws of the United States.
         (10) "Employee" means a person who works directly in the service of another person under
 an express or implied contract of hire, and the employer has the direct right to control the details of
 work performance. The term does not include a person who works for any independent
 subcontractor, temporary service provider, or an entity or person not under the direct full control
 of the employer.
         (11) "Health-related statement" means any statement related to health, and includes
 statements of a curative or therapeutic nature that, expressly or by implication, suggest a
 relationship between the consumption of e-liquids or vapor products and health benefits, or effects
 on health.
         (12) "Flavoring" means a food grade additive or synthetic flavoring substance that is used
 to add flavor and that is not prohibited by the federal Food and Drug Administration as an additive
 in vapor products.
         (13) "Manufacturer" means a person located inside of this state, including any repacker
 and/or relabeler, that is engaged in manufacturing e-liquids or vapor products.
         (14) "Manufacturing" means the process by which an e-liquid or vapor product is
 fabricated, assembled, packaged or labeled, and is sealed in final packaging intended for consumer
 use.
         (15) "Market" or "marketing" means any act or process of promoting or selling of e-liquids
 or vapor products, including, but not limited to, sponsorship of sporting events, point-of-sale
 advertising, and promotion of products specifically designed to appeal to certain demographics.
         (16) "Minor" means an individual who is less than twenty-one (21) years of age.
         (17) "Packaging" means any receptacle that contains e-liquid or a vapor product.
         (18) "Permit" means a written authorization issued by the department entitling the holder
 to manufacture, sell, or otherwise deal in e-liquid or vapor products, as provided in this chapter.
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         (19) "Permittee" means a person who holds a valid permit under this chapter, including an
 agent of, employee of, or other person acting on behalf of, a permittee.
         (20) "Retailer" means a person, other than a manufacturer or distributor, who in the
 ordinary course of the person's regular trade or business:
         (i) Acquires any form of e-liquid or vapor products for the purpose of resale to final end
 consumer; and
         (ii) Sells an e-liquid or a vapor product to another person for money or other consideration.
         (21) "Sale" or "Sell" means give away, barter, exchange or otherwise furnish any vapor
 product to any individual of legal age.
         (22) "Shipping documents" means a bill of lading, airbill, or any document used as
 evidence that a delivery occurred by a delivery service.
         (23) "Tamper evident package" means a package having at least one indicator or barrier to
 entry that, if breached or missing, can reasonably be expected to provide visible evidence to
 consumers that tampering has occurred.
         (24) "Vapor product" means a powered vaporizer that converts e-liquid to a vapor intended
 for inhalation.
         23-1.12-5. Duties of the department.
         The department has the following duties and responsibilities:
         (1) To require the submission of information necessary to implement this chapter;
         (2) To issue permits;
         (3) To charge fees as set forth in this chapter. The fees charged under this chapter may not
 exceed the actual costs incurred by the department; and
         (4) To approve or deny a permit application made within sixty (60) days of receiving the
 application.
         23-1.12-6. Permit requirements; Application.
         (a) A manufacturer, distributor, or retailer shall not sell e-liquid or vapor products in this
 state without a permit issued by the department under this chapter.
         (b) A manufacturing permit issued by the department is valid for five (5) years from the
 date of issuance. An application for a manufacturing permit must include the following:
         (1) The name, telephone number, and address of the applicant;
         (2) The name, telephone number, and address of the manufacturing facility;
         (3) The name, telephone number, title, and address of the person responsible for the
 manufacturing facility;
         (4) Verification that the facility will comply with applicable tobacco products good
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 manufacturing practices promulgated under 21 U.S.C. 387f(e) of the federal Food, Drug, and
 Cosmetic Act;
          (5) Verification that the manufacturer will comply with the applicable ingredient listing
 required by 21 U.S.C. 387d(a)(l) of the federal Food, Drug, and Cosmetic Act;
          (6) A nonrefundable initial application fee of one thousand dollars ($1,000); and
          (7) The fees collected under this subsection shall be deposited in the vapor products
 compliance fund.
          (c) A distributor of e-liquid or vapor products may not distribute e-liquid or vapor products
 in this state without a valid permit issued by the department under this chapter. A distributor permit
 issued by the department is valid for one year from the date of issuance.
          (d) An application for a distributor permit must include the following:
          (1) The name, telephone number, and address of the applicant;
          (2) The name, telephone number, and address of the distribution facility;
          (3) The name, telephone number, title, and address of the person responsible for the
 distribution facility;
          (4) A nonrefundable initial application fee of five hundred dollars ($500); and
          (5) The fees collected under this subsection shall be deposited in the vapor products
 compliance fund.
          (e) A retailer of e-liquid or vapor products may not sell e-liquid or vapor products in this
 state without a valid permit issued by the department under this chapter. A retailer permit issued
 by the department is valid for one year from the date of issuance.
          (f) An application for a retailer permit must include the following:
          (1) The name, telephone number, and address of the applicant;
          (2) The name, telephone number, and address of the retail facility;
          (3) The name, telephone number, title, and address of the person responsible for the retail
 location;
          (4) A nonrefundable initial application fee not to exceed twenty-five dollars ($25.00); and
          (5) The fees collected under this subsection shall be deposited in the vapor products
 compliance fund.
          23-1.12-7. Permit transfer -- Notice of changes.
          (a) A permit may not be transferred:
          (1) From the permit holder to another person; or
          (2) From the location where the permit was approved or renewed to another location; unless
 approved by the department.
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         (b) The department shall allow a permit to be transferred under subsection (a) of this section
 if the permit has not been suspended or revoked and the new permit holder or location meets the
 requirements under this chapter.
         (c) If the information required for the initial or renewal permit changes, the permit holder
 shall notify the department within ten (10) business days of the change. If any change in the
 information required for an application results in a violation of this chapter, the department may
 impose a penalty as provided in this chapter.
         23-1.12-8. Issuance of permits; Reasons for denial.
         (a) The department shall grant or deny a completed application for a permit within sixty
 (60) days of receipt of the application. The department shall approve the application for issuance
 of a permit if the department determines that all the requirements under this chapter have been met.
         (b) If the completed application for a permit is denied, the department must state the reasons
 for the denial. If a completed application is denied under this section, the applicant may reapply
 within thirty (30) days after the date of the denial. There is no application fee for a reapplication
 under this subsection.
         23-1.12-9. Manufacturing, Labeling, Marketing and Safety requirements.
         (a) Manufacturers, distributors, and retailers shall comply with the following requirements:
         (1) An e-liquid container must use a child proof cap that has the child resistant effectiveness
 set forth in the federal poison prevention packaging standards, 16 CFR l 700.15(b)(l);
         (2) An e-liquid container must use a tamper evident package. The tamper evident package
 feature must be designed to and remain intact when handled in a reasonable manner during the
 manufacture, distribution, and retail display of the e-liquid container;
         (3) The label on an e-liquid container must meet the nicotine addictiveness warning
 statement requirements set forth in 21 CFR 1143.3; and
         (4) Retailers in this state shall display signage stating that "unaccompanied minors are not
 allowed on the premises", "products are not for sale to minors'', or "underage sales prohibited".
         (b) A manufacturer, distributor, or retailer of e-liquids or vapor products shall not sell, offer
 for sale, or distribute any e-liquid or vapor product with labeling or packaging made to be attractive
 to minors. The labeling or packaging of an e-liquid or vapor product is attractive to a minor if it
 uses packaging or labeling that does any of the following:
         (1) Contains the terms "candy'', "candies", "kandy", "kandeez", "bubble gum", "cotton
 candy", "gummy bear", "cupcake", "soda pop", "lollipop", or "milkshake", or variants in spelling
 of these terms;
         (2) Depicts images of juice boxes, soft drinks, cereal, candy, or desserts;
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           (3) Depicts images of cartoons, toys, superheroes, children, and any other likeness to
 images, characters, or phrases, such as "unicorn", that are or have been primarily marketed to
 minors;
           (4) Imitates or mimics trademark or trade dress of food products such as candy, cookies,
 cereal, juice boxes, or soft drinks that are or have primarily been marketed towards minors;
           (5) Depicts images or references to video games, movies, videos, or animated television
 shows known to appeal to minors;
           (6) Depicts the actual consumption of e-liquids or vapor products;
           (7) Depicts a minor using e-liquids or vapor products;
           (8) Makes any health, medicinal, or therapeutic claims about e-liquids or vapor products;
 and
           (9) Promotes overconsumption of e-liquids or vapor products.
           (c) A manufacturer, distributor, or retailer of e-liquids or vapor products shall not advertise
 or market any e-liquids or vapor products in a manner that does not adhere to the following:
           (1) All advertisements and marketing shall accurately and legibly identify the person
 responsible for its content;
           (2) Any advertising or marketing in broadcast, cable, radio, print, and digital
 communications, or any event marketing or sponsorships, shall only be made where at least eighty-
 five percent (85%) percent of the audience is reasonably expected to be twenty-one (21) years of
 age or older, as determined by reliable, up-to-date audience composition data;
           (3) All advertising shall be truthful and appropriately substantiated;
           (4) Advertise or market in a manner that is materially false or untrue;
           (5) Publish or disseminate advertising or marketing containing any statement concerning a
 brand or product that is inconsistent with any statement on the labeling thereof;
           (6) Advertise or market e-liquids or vapor products on an advertising sign within one
 thousand feet (1,000) of a day care center, schools offering instruction in kindergarten or any of
 grades one through twelve (12), inclusive, playground, or youth center. This shall not apply to the
 placement of advertising signs inside a licensed premises and which are not readable by normal
 unaided vision from a public place or the public way; provid