Official Summary Text
HB2765 - 572R - House Bill Summary
ARIZONA HOUSE OF REPRESENTATIVES
57th
Legislature, 2nd Regular Session
Majority Research Staff
House:
IT DPA/SE 5-2-1-2
HB
2765
:
international trade commission
S/E:
vapor product manufacturer; rules; violations
Sponsor:
Representative Rivero, LD 27
Caucus
& COW
Summary
of Strike-Everything Amendment to HB 2765
Overview
Regulates vapor
products. Mandates rules and requirements for vapor product manufacturers and
for the Arizona Department of Revenue (DOR).
History
Current statute
tasks DOR with regulating the licensure of tobacco retailers, the taxation of
tobacco products and recordkeeping of importers, distributors and retailers of
tobacco products. Every person acquiring or possessing for the purposes of
making the initial sale or distribution in this state of any tobacco products
on which a luxury privilege tax is imposed must obtain from DOR a license to
sell tobacco products.
The application
for the tobacco distributor has a fee of $25 for each place of business listed
in the application. The applicant must include in the application form the
identity of the applicant, the applicant's place of business, any location that
maintains inventory of the tobacco products, and any other location requested
by DOR. If the applicant is a firm, partnership, limited liability company or
corporation, they must list the name and address of the members or officers (A.R.S.
�
42-3401
,
42-3404
,
42-3405
).
Provisions
Vapor
Product Manufacturer Licensing Fund
1.
Establishes
the Vapor Product Manufacturer Licensing Fund (Fund), consisting of licensing
fees and civil penalties which are subject to legislative appropriation. (Sec.
5)
2.
Requires DOR
to administer the Fund. (Sec. 5)
3.
Mandates
that Fund monies must be used for the enforcement of vapor product manufacturer
license regulation. (Sec. 5)
Vapor
Product Manufacturer License
4.
Allows a
vapor manufacturer whether directly or through an importer, distributor, retailer
or a similar intermediary, after December 31, 2026, to offer for sale or sell
vapor products only if they hold a valid vapor product manufacturer license.
(Sec. 5)
5.
Tasks DOR
with establishing the rules, fees and renewal associated with the vapor product
manufacturing license (license). (Sec. 5)
6.
Mandates that
DOR must deposit fees related to the license into the Fund. (Sec. 5)
7.
Stipulates that
a license is only valid for one year, unless DOR suspends or revokes the
license and must be renewed annually. (Sec. 5)
8.
Restricts
renewal for a license if the manufacturer is liable for any outstanding civil
penalties. (Sec. 5)
9.
Allows DOR
to receive and review license applications electronically. (Sec. 5)
10.
Asserts the
manufacturer's license is nontransferable. (Sec. 5)
Vapor
Product Certification
11.
Instructs
each license applicant to file, as prescribed, a certification as a condition
precedent to obtain a license. (Sec. 5)
12.
Prohibits a
vapor manufacturer, that has not filed the required certification, from being
issued a license and prohibits the manufacturer to sell its vapor products.
(Sec. 5)
13.
Requires the
certification to be made under penalty of perjury on a form and in a manner
prescribed by DOR. (Sec. 5)
14.
Lists the
certification's requirements. (Sec. 5)
15.
Restricts a
vapor manufacturer from selling at retail or to a consumer any type or model of
vapor products not included in the vapor product list found in the
manufacturer's certification without first filing a DOR-approved amended
certification. (Sec. 5)
16.
Tasks each
manufacturer that obtains a license to submit to DOR within 30 days a notice of
any changes to the manufacturer's vapor product list submitted with the required
certification and every six months, an attestation that confirms the
information submitted in the manufacturer's license application remains
accurate, as outlined. (Sec. 5)
17.
Asserts that
applications or certificates that contain false information violate consumer
fraud regulation and are subject to remedies pertaining to consumer fraud.
(Sec. 5)
18.
Allows DOR
to notify appropriate federal and state agencies regarding fraudulent
information submitted on an application or certificate form. (Sec. 5)
Nonresident
or Foreign Manufacturer
19.
Requires any
nonresident or foreign manufacturer not registered to do business relating to
vapor products in this state as a foreign corporation or business entity to;
a.
appoint and
continually engage the services of an agent for the service of process relating
to the sale of vapor products in this state, as prescribed;
b.
provide the
name, address, telephone number and proof of the appointment and availability
of the agent to DOR;
c.
notify DOR,
as outlined:
i.
at least 30
days before terminating the authority of the agent;
ii.
at least 5
days before terminating the existing agent of the new agent's appointment; and
iii.
within 5
days of an agent terminating an appointment and include satisfactory proof to DOR
of the new agent's appointment. (Sec. 5)
20.
Directs any
nonresident or foreign manufacturer not registered in this state to submit to
DOR a surety bond or other cash security payable to this state in the amount of
$25,000. (Sec. 5)
21.
Outlines
requirements pertaining to surety bonds for nonresident or foreign
manufacturers. (Sec. 5)
Vapor
Product Manufacturer and DOR Rules
22.
Requires a
manufacturer that ceases business because of discontinuation, sale or transfer
of the manufacturer's business to notify DOR in writing at the time that the
discontinuance, sale or transfer takes effect. (Sec. 5)
23.
Instructs a
vapor manufacturer to have established sufficient contact with this state for
the exercise of personal jurisdiction over the manufacturer in any matter or
issue related to the sale of vapor products. (Sec. 5)
24.
Tasks DOR
with maintaining and making publicly available on DOR's website all licensed
vapor product manufacturers and all vapor products included in the vapor
product list submitted by the licensed manufacturer. (Sec. 5)
25.
Restricts
the sale of vapor products that are not included on the manufacturer's vapor
products list to retail consumers in this state, either directly or through an
importer, distributor, retailer or a similar intermediary. (Sec. 5)
26.
Requires
retailers to only purchase vapor products from a distributor or licensed
manufacturer and for distributors to only purchase vapor products from licensed
manufacturers. (Sec. 5)
Violations
of Rules
27.
Subjects any
business operating as a vapor manufacturer without a license and a licensed
manufacturer found in violation to:
a.
a civil
penalty of $2,500 for their first violation;
b.
a civil
penalty of $5,000 and a class 2 misdemeanor, for their second violation within
36 months; and
c.
a civil
penalty $10,000, a class 1 misdemeanor, for their third or subsequent violation
within 36 months. An unlicensed manufacturer is ineligible to be licensed for
36 months and a manufacturer's license is to be revoked and is ineligible to
receive or renew a license for 36 months. (Sec. 5)
28.
Tasks DOR
with depositing the civil penalties collected for any violation of vapor
products rules into the Fund. (Sec. 5)
29.
Subjects
vapor products in violation of vapor regulation to seizure and destruction.
(Sec. 5)
Delegation
of Authority
30.
Allows DOR to
delegate the enforcement and compliance inspections to any county or law
enforcement agency that accepts this delegation and to collaborate and use the
findings of other state agencies to carry out the obligations as prescribed.
(Sec. 5)
31.
Requires the
delegated licensing authority or any law enforcement agency, conducting
compliance checks to assess retail tobacco vendor compliance with the legal age,
to report the compliance check results to DOR. (Sec. 5)
Miscellaneous
32.
Adds vapor
products to the list of items exempted from tobacco taxes. (Sec. 3)�
33.
Conforms vapor
products, vapor product manufacturer, importer and distributor to recordkeeping
requirements on tobacco products. (Sec. 4)
34.
Modifies the
heading of title 42, chapter 3, article 10. (Sec. 2)
35.
Contains an
effective date of December 31, 2026. (Sec. 6)
36.
Contains a
severability clause. (Sec. 7)
37.
Makes
conforming and technical changes. (Sec. 1 and 4)
38.
Defines pertinent
terms. (Sec. 1)
39.
40.
41.
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Current Bill Text
Read the full stored bill text
HB2765 - 572R - I Ver
REFERENCE TITLE:
international trade commission
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
HB 2765
Introduced by
Representative
Rivero
AN
ACT
AMENDING TITLE 41, CHAPTER 8, ARIZONA
REVISED STATUTES, BY ADDING ARTICLE 6; AMENDING TITLE 41, CHAPTER 27, ARTICLE
2, ARIZONA REVISED STATUTES, BY ADDING SECTION 41-3034.01; RELATING TO AGENCIES
OF THE LEGISLATIVE DEPARTMENT.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section
1. Title
41, chapter 8, Arizona Revised Statutes, is amended by adding article 6, to
read:
ARTICLE 6. International trade
COMMISSION
START_STATUTE
41-1391.
International trade commission; membership; duties; annual report
A. The international trade commission
is established consisting of the following:
1. The CHAIRPERSON OF THE HOUSE OF
REPRESENTATIVES INTERNATIONAL TRADE COMMITTEE, OR ITS SUCCESSOR COMMITTEE, OR
THE CHAIRPERSON'S DESIGNEE, who shall serve as the chairperson.
2. The CHAIRPERSON OF THE HOUSE OF
REPRESENTATIVES commerce COMMITTEE, OR ITS SUCCESSOR COMMITTEE, OR THE
CHAIRPERSON'S DESIGNEE.
3. THE CHAIRPERSON OF THE HOUSE OF
REPRESENTATIVES government COMMITTEE, OR ITS SUCCESSOR COMMITTEE, OR THE
CHAIRPERSON'S DESIGNEE.
4. THE CHAIRPERSON OF THE HOUSE OF
REPRESENTATIVES appropriations COMMITTEE, OR ITS SUCCESSOR COMMITTEE, OR THE
CHAIRPERSON'S DESIGNEE.
5. Two members of the house of
representatives who are appointed by the speaker of the house of
representatives.
6. Two members who represent the
business community in this state and who are appointed by the speaker of the
house of representatives.
7. Two MEMBERS WHO REPRESENT THE
BUSINESS COMMUNITY IN THIS STATE and who are APPOINTED BY THE chairperson of
the international trade commission.
B. All appointments shall be made not
later than December 31, 2026 and shall be for a term of four years.� All
vacancies shall be filled in the same manner as the initial appointment.�
Appointed members of the commission shall receive compensation as determined
pursuant to section 38-611 for each day actually spent in the performance
of official duties and are eligible for reimbursement of expenses pursuant to
title 38, chapter 4, article 2.
C. The commission shall:
1. Annually elect a vice chairperson
from among its members.
2. Meet at the call of the
chairperson.
3. Advance trade and investment
between this state and any country.
4. Initiate joint action on policy
issues of mutual interest between this state and ANY COUNTRY.
5. Promote business and academic
exchanges between this state and ANY COUNTRY.
6. Encourage mutual economic support
between this state and ANY COUNTRY.
7. Encourage mutual investment in the
infrastructure of this state and ANY COUNTRY.
8. On or before December 31, 2027 and
each year thereafter, submit a report to the speaker of the house of
representatives containing the commission's findings, results and
recommendations, including recommendations to add additional committee members.
END_STATUTE
Sec.
2. Title 41, chapter 27, article 2, Arizona Revised Statutes, is
amended by adding section 41-3034.01, to read:
START_STATUTE
41-3034.01.
International trade commission; termination July 1, 2034
A. The
international trade commission terminates on July 1, 2034.
B. Title 41, chapter 8, article 6 and
this section are repealed on January 1, 2035.
END_STATUTE
Sec. 3.
Purpose
Pursuant to section 41-2955,
subsection E, Arizona Revised Statutes, the legislature establishes the
international trade commission to encourage economic support and investment
between this state and any country.