AB279 - Revises provisions relating to tobacco. (BDR 32-158)

A.B. 279 - *AB279* ASSEMBLY BILL NO. 279–ASSEMBLYMEMBERS ORENTLICHER; AND GONZÁLEZ FEBRUARY 24, 2025 ____________ Referred to Committee on Revenue SUMMARY—Revises provisions relating to tobacco. (BDR 32-158) FISCAL NOTE: Effect on Local Government: May have Fiscal Impact. Effect on the State: Yes. ~ EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. AN ACT relating to tobacco; prohibiting the sale, import, export, possession or constructive possession of certain vapor products; prohibiting the sale of cigarettes to persons born after a certain date except on the premises of certain gaming establishments; revising provisions authorizing boards of county commissioners to adopt certain ordinances related to tobacco products; providing penalties; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law makes it a crime for a person to knowingly sell or possess for the 1 purpose of sale a contraband tobacco product. (NRS 370.405) Existing law also 2 makes it a crime for a person to otherwise import, export, possess or constructively 3 possess a contraband tobacco product. (NRS 370.410) Section 3 of this bill 4 includes as a contraband tobacco product a vapor product that has not been 5 approved by the Federal Government for introduction or delivery for introduction 6 into interstate commerce. Section 3 thereby makes it a crime for a person to: (1) 7 sell or possess for the purpose of sale such a vapor product; and (2) otherwise 8 import, export, possess or constructively possess such a vapor product. Section 1 of 9 this bill requires the Department of Taxation to create and maintain on its Internet 10 website and otherwise make available for public inspection a directory that lists 11 each vapor product that has been approved by the United States Secretary of Health 12 and Human Services for introduction or delivery for introduction into interstate 13 commerce. Section 2 of this bill applies the definitions in existing law governing 14 cigarettes to section 1. 15 Existing law: (1) prohibits a person from selling, distributing or offering to sell 16 cigarettes, cigarette paper or various other products derived from nicotine to any 17 person under the age of 21 years; (2) provides for the imposition of a civil penalty 18 – 2 – - *AB279* against a person or business that violates that prohibition; and (3) makes it a 19 misdemeanor to knowingly sell or distribute such products to a person under the 20 age of 21 years through the use of a computer network, telephonic network or other 21 electronic network. (NRS 202.24935, 370.321, 370.521) Sections 4 and 6 of this 22 bill additionally prohibit the sale, distribution or offer for sale of cigarettes to any 23 person who was born after December 31, 2004, unless the sale, distribution or offer 24 to sell occurs on the premises of a property where gaming is conducted under a 25 nonrestricted license for gaming. Sections 5 and 7 of this bill make certain 26 revisions to provisions which facilitate compliance with and enforcement of the 27 existing prohibition on the sale, distribution or offer for sale of cigarettes and 28 certain other products to persons under the age of 21 years to apply those 29 provisions to the sale of cigarettes to persons born after December 31, 2004. 30 Existing law authorizes a board of county commissioners to adopt an ordinance 31 to prohibit a child who is under 18 years of age from: (1) purchasing, attempting to 32 purchase, possessing, attempting to possess or using tobacco products; or (2) falsely 33 representing his or her age to purchase, obtain or possess tobacco products. (NRS 34 244.3572) Section 8 of this bill authorizes a board of county commissioners to 35 adopt such an ordinance concerning a person who is under 21 years of age in 36 accordance with existing state law prohibiting the sale of tobacco products to such a 37 person. (NRS 202.24935, 370.521) Section 8 also authorizes a board of county 38 commissioners to adopt such an ordinance prohibiting a person born after 39 December 31, 2004, from: (1) purchasing, attempting to purchase, possessing, 40 attempting to possess or smoking cigarettes, except on the premises of a property 41 where gaming is conducted under a nonrestricted license for gaming; or (2) falsely 42 representing his or her age to purchase, obtain or possess cigarettes. 43 THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. Chapter 370 of NRS is hereby amended by adding 1 thereto a new section to read as follows: 2 1. The Department shall create and maintain on its Internet 3 website and otherwise make available for public inspection a 4 directory that lists each vapor product that has been approved by 5 the United States Secretary of Health and Human Services for 6 introduction or delivery for introduction into interstate commerce 7 pursuant to 21 U.S.C. § 387j. 8 2. The Department shall update the directory as necessary to 9 correct mistakes and to add or remove a vapor product to keep the 10 directory in conformity with the requirements of this section. 11 3. Any determination of the Department not to include in or 12 to remove from the directory a vapor product is a final decision for 13 the purposes of judicial review. 14 Sec. 2. NRS 370.007 is hereby amended to read as follows: 15 370.007 As used in NRS 370.007 to 370.430, inclusive, and 16 370.505 to 370.530, inclusive, and section 1 of this act, unless the 17 context otherwise requires, the words and terms defined in NRS 18 370.008 to 370.055, inclusive, have the meanings ascribed to them 19 in those sections. 20 – 3 – - *AB279* Sec. 3. NRS 370.025 is hereby amended to read as follows: 1 370.025 “Contraband tobacco products” means any: 2 1. Counterfeit cigarettes; 3 2. Other counterfeit tobacco product; 4 3. Cigarettes or “roll-your-own” tobacco offered for sale in this 5 State by a manufacturer, or cigarettes or “roll-your-own” tobacco of 6 a brand family or style, that is not listed in the directory created 7 pursuant to NRS 370.675; 8 4. Cigarettes bearing a tribal stamp issued by the Department 9 which are sold or offered for sale at a retail location that is not 10 located on qualified tribal land; [or] 11 5. Cigarettes or other tobacco product: 12 (a) Exported from or imported into this State, or mailed, 13 shipped, delivered, sold, exchanged, transported, distributed or held 14 for distribution within the borders of this State by any person in 15 violation of any of the provisions of this chapter; 16 (b) In any way held in the possession or constructive possession 17 of any person not authorized under this chapter to possess or 18 constructively possess the cigarettes or other tobacco product; or 19 (c) Being offered for sale in any form other than in an unopened 20 package in violation of subsection 1 of NRS 202.2493 [.] ; or 21 6. Vapor product that has not been approved by the United 22 States Secretary of Health and Human Services for introduction 23 or delivery for introduction into interstate commerce pursuant to 24 21 U.S.C. § 387j. 25 Sec. 4. NRS 370.521 is hereby amended to read as follows: 26 370.521 1. Except as otherwise provided in subsections 2, 4 27 and 5, a person shall not sell, distribute or offer to sell [cigarettes,] : 28 (a) Cigarettes to any person who was born after December 31, 29 2004, unless the sale, distribution or offer to sell occurs on the 30 premises of a property where gaming is conducted under a 31 nonrestricted license for gaming issued pursuant to NRS 463.170; 32 or 33 (b) Cigarettes, cigarette paper, any product containing, made or 34 derived from tobacco, any vapor product, any alternative nicotine 35 product or any product containing, made or derived from nicotine to 36 any person under the age of 21 years. 37 2. A person shall be deemed to be in compliance with the 38 provisions of subsection 1 if, before the person sells, distributes or 39 offers to sell to another any item described in subsection 1, the 40 person: 41 (a) Demands that the other person present a valid driver’s 42 license, permanent resident card, tribal identification card or other 43 written or documentary evidence which shows that the other person 44 – 4 – - *AB279* was born after December 31, 2004, or is 21 years of age or older [;] 1 , as applicable; 2 (b) Is presented a valid driver’s license, permanent resident card, 3 tribal identification card or other written or documentary evidence 4 which shows that the other person was born after December 31, 5 2004, or is 21 years of age or older [;] , as applicable; and 6 (c) Reasonably relies upon the driver’s license, permanent 7 resident card, tribal identification card or other written or 8 documentary evidence presented by the other person. 9 3. Except as otherwise provided in this subsection, a person 10 shall not sell, distribute or offer to sell cigarettes, cigarette paper or 11 other tobacco products to any person under 40 years of age without 12 first performing age verification through enhanced controls that 13 utilize a scanning technology or other automated, software-based 14 system to verify that the person was born after December 31, 2004, 15 or is 21 years of age or older [.] , as applicable. A person who 16 violates this subsection is liable for a civil penalty of $100 for each 17 offense. The provisions of this subsection do not apply to a person 18 selling, distributing or offering to sell cigarettes, cigarette paper or 19 other tobacco products in a face-to-face transaction that occurs in an 20 area within a casino where loitering by persons who are under 21 21 years of age is already prohibited pursuant to NRS 463.350. As used 22 in this subsection, “casino” means an establishment which holds a 23 nonrestricted license as defined in NRS 463.0177 and which is 24 operating 16 or more slot machines together with any other game, 25 race book or sports pool. 26 4. The employer of a person who was born after December 31, 27 2004, or is under 21 years of age , as applicable, may, for the 28 purpose of allowing the person to handle or transport any item 29 described in subsection 1 in the course of the person’s lawful 30 employment, provide an item described in subsection 1 to [the] that 31 person . [under 21 years of age.] 32 5. The provisions of this section do not apply to any product 33 regulated by the United States Food and Drug Administration under 34 Subchapter V of the Federal Food, Drug, and Cosmetic Act, 21 35 U.S.C. §§ 351 et seq. 36 6. A person who violates subsection 1 is liable for a civil 37 penalty of: 38 (a) For the first violation within a 24-month period, $100. 39 (b) For the second violation within a 24-month period, $250. 40 (c) For the third and any subsequent violation within a 24-month 41 period, $500. 42 7. If an employee or agent of a licensee has violated 43 subsection 1: 44 – 5 – - *AB279* (a) For the first violation within a 24-month period at the same 1 premises, the licensee is liable for a civil penalty of $2,500. 2 (b) For the second violation within a 24-month period at the 3 same premises, the licensee is liable for a civil penalty of $5,000. 4 (c) For the third violation within a 24-month period at the same 5 premises, the licensee is liable for a civil penalty of $7,500. 6 (d) For the fourth and any subsequent violation within a 24- 7 month period at the same premises, the licensee is liable for a civil 8 penalty of $10,000. 9 8. A peace officer or any person performing an inspection 10 pursuant to NRS 202.2496 may issue a notice of infraction for a 11 violation of this section. A notice of infraction must be issued on a 12 form prescribed by the Department and must contain: 13 (a) The location at which the violation occurred; 14 (b) The date and time of the violation; 15 (c) The name of the establishment at which the violation 16 occurred; 17 (d) The signature of the person who issued the notice of 18 infraction; 19 (e) A copy of the section which allegedly is being violated; 20 (f) Information advising the person to whom the notice of 21 infraction is issued of the manner in which, and the time within 22 which, the person must submit an answer to the notice of infraction; 23 and 24 (g) Such other pertinent information as the peace officer or 25 person performing the inspection pursuant to NRS 202.2496 26 determines is necessary. 27 9. A notice of infraction issued pursuant to subsection 8 or a 28 facsimile thereof must be filed with the Department and retained by 29 the Department and is deemed to be a public record of matters 30 which are observed pursuant to a duty imposed by law and is prima 31 facie evidence of the facts alleged in the notice. 32 10. A person to whom a notice of infraction is issued pursuant 33 to subsection 8 shall respond to the notice by: 34 (a) Admitting the violation stated in the notice and paying to the 35 State of Nevada the applicable civil penalty set forth in subsection 3, 36 6 or 7. 37 (b) Denying liability for the infraction by notifying the 38 Department and requesting a hearing in the manner indicated on the 39 notice of infraction. Upon receipt of a request for a hearing pursuant 40 to this paragraph, the Department shall provide the person 41 submitting the request an opportunity for a hearing pursuant to 42 chapter 233B of NRS. 43 11. Any money collected by the State of Nevada from a civil 44 penalty pursuant to this section must be deposited in a separate 45 – 6 – - *AB279* account in the State General Fund to be used for the enforcement of 1 this section and NRS 202.2493 and 202.2494. 2 12. As used in this section, “licensee” means a person who 3 holds a license issued by the Department pursuant to this chapter. 4 Sec. 5. NRS 202.2493 is hereby amended to read as follows: 5 202.2493 1. A person shall not sell, distribute or offer to sell 6 cigarettes, any smokeless product made or derived from tobacco or 7 any alternative nicotine product in any form other than in an 8 unopened package which originated with the manufacturer and 9 bears any health warning required by federal law. A person who 10 violates this subsection shall be punished as provided in chapter 370 11 of NRS. As used in this subs [Text truncated for display. Full text available on LegiScan.]