Liquid nicotine and nicotine vapor products; certification, removal of exclusion from directory. (HB1069)

Introduced By

Del. Rodney Willett (D-Henrico) with support from co-patron Del. Betsy Carr (D-Richmond)

Progress

Introduced
Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law

Description

Liquid nicotine and nicotine vapor products; certification and directory; penalties. Requires every manufacturer of liquid nicotine or nicotine vapor products that are sold for retail sale in the Commonwealth to certify to the Attorney General that (i) the manufacturer has received a marketing authorization or similar order for the liquid nicotine or nicotine vapor product from the U.S. Food and Drug Administration (FDA) or (ii) (a) the liquid nicotine or nicotine vapor product was marketed in the United States as of August 8, 2016, or (b) the manufacturer submitted a premarket tobacco product application for the liquid nicotine or nicotine vapor product to the FDA on or before September 9, 2020, and such application either remains under review by the FDA or a final decision on the application has not otherwise taken effect. The bill requires a manufacturer to submit such a form for each liquid nicotine or nicotine vapor product that such manufacturer sells for retail sale in the Commonwealth. Under the bill, any manufacturer that falsely represents any of the information required by the certification requirement is guilty of a Class 3 misdemeanor for each false representation. The bill requires the Attorney General to establish and maintain a directory that lists all liquid nicotine or nicotine vapor product manufacturers and liquid nicotine and nicotine vapor products for which current and accurate certification forms have been submitted. The bill requires the Attorney General to remove or exclude from such directory any such product that is not in compliance and to notify the manufacturer of such noncompliance. The bill allows a 10-business-day period for a manufacturer to establish compliance. The bill requires that any such products that are removed from the list be sold or removed from retail sale within 30 days or become subject to seizure and requires a manufacturer, wholesaler, or retail dealer to notify each purchaser of a removed product that it has been removed from the directory at the time of delivery of such product. The bill entitles such a purchaser to a refund of the purchase price and creates a cause of action to recover such refund. The bill prohibits the sale, distribution, importation, or offer for sale of any liquid nicotine or nicotine vapor product that is not listed in the directory. The bill provides for a civil penalty of $1,000 per day for each product offered for sale in violation of the bill's provisions until the offending product is removed from the market or until the offending product is properly listed on the directory. The bill requires any person that receives, stores, sells, handles, or transports liquid nicotine or nicotine vapor products to preserve all records relating to the purchase, sale, exchange, receipt, or transportation of all liquid nicotine or nicotine vapor products for a period of three years. The bill provides that all such records are subject to audit or inspection at any time by any duly authorized representative of the Attorney General. Any person who violates the recordkeeping provisions of the bill is guilty of a Class 2 misdemeanor. Additionally, the bill provides that the Department of Taxation, the Attorney General, any other law-enforcement agency of the Commonwealth, or any federal law-enforcement agency conducting a criminal investigation involving the trafficking of liquid nicotine or nicotine vapor products may access at any time such records. The bill requires the Department of Taxation to impose a penalty of $1,000 for each day that a person fails or refuses to allow or cooperate with an audit, inspection, or investigation of such records. The bill authorizes the Attorney General and, with the concurrence of the Attorney General, any attorney for the Commonwealth, or the attorney for any city, county, or town to cause an action to enjoin any violation of the provisions of the bill. The circuit courts are authorized by the bill to (a) issue temporary or permanent injunctions to restrain and prevent violations of the provisions of the bill and (b) order forfeiture of any property seized for such a violation. The bill authorizes the Attorney General to issue a civil investigative demand. Under the bill, any retailer and wholesaler that sells or distributes any liquid nicotine or nicotine vapor product in the Commonwealth is subject to scheduled or unscheduled compliance checks carried out by the Attorney General, or an agent thereof, for enforcement purposes. The bill requires the Attorney General to provide an annual report to the General Assembly regarding the status of the directory, manufacturers and products included in the directory, and revenues and expenditures related to and enforcement activities undertaken pursuant to the requirements of the bill. Finally, the bill makes a violation of its provisions a prohibited practice under the Virginia Consumer Protection Act. This bill is identical to SB 550. Read the Bill »

Notes

According to the Fiscal Impact Estimates provided in the statement, the implementation of this bill is estimated to have the following fiscal implications: - Department of Taxation: It is mentioned that the Department of Taxation does not require additional funding for implementing this bill. However, the bill may result in an unknown positive state revenue impact through the assessment and collection of penalties authorized by the bill. - Office of the Attorney General and Department of Law (OAG): The OAG will collect and retain a fee of $2,000 for every first submission and resubmission of a product to the directory, along with a $500 annual fee each year thereafter. With an estimated 10,000 products needing registration, the annual revenue from device registration fees is expected to offset the fiscal impact of enforcement activities and litigation requirements after the first two years of implementation. The creation of a new unit within the FLAGS section to oversee compliance with the bill is estimated to cost approximately $1,647,861 per year. - Other: The bill establishes penalties for violations, with a Class 2 misdemeanor carrying a sentence of up to six months in jail and a fine of not more than $1,000. Additionally, Class 3 misdemeanors may result in fines up to $500, with the revenue collected deposited into the Literary Fund. However, the exact impact in terms of convictions and fines cannot be reliably estimated at this time. It is important to note that the impact on entities such as Circuit Courts and other law enforcement agencies is currently unknown, and the bill may require the establishment of a new fund code for the collection of fees related to liquid nicotine and vapor products.

Summary generated automatically by OpenAI.

Outcome

Bill Has Passed

History

DateAction
01/10/2024Committee
01/10/2024Prefiled and ordered printed; offered 01/10/24 24104971D
01/10/2024Referred to Committee on General Laws
01/23/2024Impact statement from DPB (HB1069)
01/26/2024Assigned GL sub: ABC/Gaming
02/06/2024House subcommittee amendments and substitutes offered
02/06/2024Subcommittee recommends reporting with substitute (8-Y 0-N)
02/06/2024Subcommittee recommends referring to Committee on Appropriations
02/06/2024Reported from General Laws with substitute (20-Y 0-N) (see vote tally)
02/06/2024Committee substitute printed 24107170D-H1
02/06/2024Referred to Committee on Appropriations
02/07/2024Assigned App. sub: Transportation & Public Safety
02/08/2024Impact statement from DPB (HB1069H1)
02/09/2024Subcommittee recommends reporting with amendments (6-Y 1-N)
02/09/2024Reported from Appropriations with amendment(s) (20-Y 0-N) (see vote tally)
02/09/2024House subcommittee amendments and substitutes offered
02/11/2024Read first time
02/12/2024Committee substitute agreed to 24107170D-H1
02/12/2024Committee amendment agreed to
02/12/2024Read second time
02/12/2024Committee on General Laws substitute agreed to 24107170D-H1
02/12/2024Committee on Appropriations amendment agreed to
02/12/2024Engrossed by House - committee substitute HB1069EH1
02/12/2024Printed as engrossed 24104971D-E
02/12/2024Engrossed bill reprinted 24107170D-EH1
02/13/2024Impact statement from DPB (HB1069E)
02/13/2024Read third time and passed House BLOCK VOTE (99-Y 0-N)
02/13/2024VOTE: Block Vote Passage (99-Y 0-N) (see vote tally)
02/14/2024Constitutional reading dispensed
02/14/2024Referred to Committee on Commerce and Labor
02/26/2024Senate committee, floor amendments and substitutes offered
02/26/2024Reported from Commerce and Labor with amendments (15-Y 0-N) (see vote tally)
02/26/2024Rereferred to Finance and Appropriations
02/27/2024Constitutional reading dispensed (39-Y 0-N) (see vote tally)
02/27/2024Reported from Finance and Appropriations (15-Y 0-N) (see vote tally)
02/28/2024Read third time
02/28/2024Reading of amendments waived
02/28/2024Committee amendments agreed to
02/28/2024Engrossed by Senate as amended
02/28/2024Passed Senate with amendments (37-Y 2-N) (see vote tally)
02/28/2024Senate amendments agreed to by House (94-Y 3-N)
02/28/2024VOTE: Adoption (94-Y 3-N) (see vote tally)
03/05/2024Enrolled
03/05/2024Bill text as passed House and Senate (HB1069ER)
03/06/2024Impact statement from DPB (HB1069ER)
03/11/2024Enrolled Bill communicated to Governor on March 11, 2024
03/11/2024G Governor's Action Deadline 11:59 p.m., April 8, 2024
04/08/2024Governor's recommendation received by House
04/17/2024House concurred in Governor's recommendation (92-Y 1-N)
04/17/2024VOTE: Adoption (92-Y 1-N)
04/17/2024Senate concurred in Governor's recommendation (39-Y 1-N)
04/17/2024G Governor's recommendation adopted
04/17/2024Reenrolled
04/17/2024Reenrolled bill text (HB1069ER2)
04/17/2024Signed by Speaker as reenrolled
04/17/2024Signed by President as reenrolled
04/17/2024Enacted, Chapter 828 (effective 7/1/25)

Map

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