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HB2778 - 572R - I Ver
REFERENCE TITLE:
retail licensing; electronic smoking devices
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
HB 2778
Introduced by
Representative
Liguori
AN
ACT
amending
sections 13-3622, 36-798, 36-798.01 and 36-798.02,
Arizona Revised Statutes; amending title 36, chapter 6, article 14, Arizona
Revised Statutes, by adding sections 36-798.08, 36-798.09, 36-798.10
and 36-798.11; relating to tobacco products.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 13-3622, Arizona Revised
Statutes, is amended to read:
START_STATUTE
13-3622.
Tobacco products; persons under twenty-one years of age;
classification; exceptions; definitions
A. A person who
knowingly
sells, gives or furnishes a tobacco product
, a vapor product or
any instrument or paraphernalia that is solely designed for smoking or
ingesting tobacco or shisha, including a hookah or waterpipe,
to a
person who is under twenty-one years of age is guilty of a petty offense.
B.
Except as
provided in section 36-798.07, a person who is under twenty-one years of
age and who buys, or has in the person's possession or knowingly accepts or
receives from any person, a tobacco product, a vapor product or any instrument
or paraphernalia that is solely designed for smoking or ingesting tobacco or
shisha, including a hookah or waterpipe, is guilty of a petty offense, and if
the offense involves any instrument or paraphernalia that is solely designed
for smoking or ingesting tobacco or shisha, shall pay a fine of at least $100
or perform at least thirty hours of community restitution.
C.
B.
A
person who is under twenty-one years of age
and
who
misrepresents the� person's age to another person by means of a written
instrument of identification with the intent to induce the other person to
sell, give or furnish a tobacco product
, a vapor product or any
instrument or paraphernalia that is solely designed for smoking or ingesting
tobacco or shisha, including a hookah or waterpipe, in violation of subsection
A or B of this section
is guilty of a petty offense and, notwithstanding
section 13-802, shall pay a fine of not more than
$500
$100
.
D.
C.
This
section does not apply to
any of the following:
1. Cigars, cigarettes or cigarette
papers, smoking or chewing
A
tobacco
product
or any instrument or paraphernalia that is solely
designed for smoking or ingesting tobacco or shisha, including a hookah or
waterpipe, if it is used or intended to be used in connection with a bona fide
practice of a religious belief and as an integral part of a religious or
ceremonial exercise.
2. Any instrument or paraphernalia
that is solely designed for smoking or ingesting tobacco or shisha, including a
hookah or waterpipe, that is given to or possessed by a person who is under
twenty-one years of age if the instrument or paraphernalia was a gift or
souvenir and is not used or intended to be used by the person who is under
twenty-one years of age to smoke or ingest tobacco or shisha.
E.
D.
For
the purposes of this section:
1. "Electronic
smoking device":
(
a
) Means any
device that may be used to deliver any aerosolized or vaporized substance to
the person who inhales from the device, including an e-cigarette, e-cigar,
e-pipe, vape pen or e-hookah.
(
b
) Includes:
(
i
) Any
component, part or accessory of the device.
(
ii
) Any
substance that is intended to be aerosolized or vaporized during the use of the
device, whether or not the substance contains nicotine.
(
c
) Does not
include drugs, devices or combination products authorized for sale by the
United States food and drug administration, as those terms are defined in the
federal food, drug, and cosmetic act or the regulations adopted pursuant to
that act.
1.
2.
"Shisha"
includes any mixture of tobacco leaf and honey, molasses or dried fruit or any
other sweetener.
2.
3.
"Tobacco
product"
:
(
a
)
Means
any of the following:
(a) Cigars.
(b) Cigarettes.
(c) Cigarette papers of any kind.
(d) Smoking tobacco of any kind.
(e) Chewing tobacco of any kind.
3. "Vapor product":
(a) Means a noncombustible tobacco-derived
product containing nicotine that employs a mechanical heating element, battery
or circuit, regardless of shape or size, that can be used to heat a liquid
nicotine solution contained in cartridges.�
(b) Does not include any product that
is regulated by the United States food and drug administration under chapter V
of the federal food, drug, and cosmetic act.
(
i
) A product
containing, made of or derived from tobacco or nicotine that is intended for
human consumption or is likely to be consumed, whether inhaled, absorbed or
ingested by any other means, including a cigarette, a cigar, pipe tobacco, shisha,
beedies, bidis, chewing tobacco, snuff or snus.
(
ii
) An
electronic smoking device and any substance that may be aerosolized or
vaporized by the device, whether or not the substance contains nicotine.
(
iii
) A
component, part or accessory of any product, electronic smoking device or
substance that is listed in item (
i
) or (
ii
) of this subdivision, whether or not any of these contain tobacco or
nicotine, including filters, rolling papers, blunt or hemp wraps and pipes.
(
b
) Does not
include drugs, devices or combination products authorized for sale by the
United States food and drug administration, as those terms are defined in the
federal food, drug, and cosmetic act or the regulations adopted pursuant to
that act
.
END_STATUTE
Sec. 2. Section 36-798, Arizona Revised Statutes, is amended to read:
START_STATUTE
36-798.
Definitions
In this article, unless the context otherwise requires:
1. "Bar" means that portion of any
premises licensed under section 4-209, subsection B, paragraph 6, 7, 11,
12 or 14 that is primarily used for
the
selling,
consumption
consuming
or serving
of
alcoholic beverages and that is not primarily used for
the consumption of
consuming
food on the
premises.
2. "Beedies" or "bidis" means a
product containing tobacco that is wrapped in temburni leaf (diospyros
melanoxylon) or tendu leaf (diospyros exculpra)
,
or
any other product that is offered to
,
or purchased
by
,
consumers as beedies or bidis.
3. "Cigar" means a roll of tobacco or any
lawful substitute for tobacco that is wrapped in tobacco.
4. "Cigarette" means a roll of tobacco or
any lawful substitute for tobacco that is wrapped in paper or in any substance
other than tobacco.
5. "Minor" means a person
who is under eighteen years of age.
5. "Department" means the
department of health services.
6.
"Electronic smoking device":
(
a
) Means any device that
may be used to deliver any aerosolized or vaporized substance to the person who
inhales from the device, including an e-cigarette, e-cigar, e-pipe,
vape pen or e-hookah.
(
b
) Includes:
(
i
) Any component, part or
accessory of the device.
(
ii
) Any substance that is
intended to be aerosolized or vaporized during the use of the device, whether
or not the substance contains nicotine.
(
c
) Does not include
drugs, devices or combination products authorized for sale by the United States
food and drug administration, as those terms are defined in the federal food,
drug, and cosmetic act or the regulations adopted pursuant to that act.
6.
7.
"Retail
tobacco vendor"
:
(
a
)
Means
a person
,
who possesses tobacco or tobacco
products for the purpose of selling them for consumption and not for resale
partnership, joint venture, society, club, trustee, true association,
organization or corporation that owns, operates or manages any tobacco retail
establishment
.
(
b
) Does not
include the nonmanagement employees of any tobacco retail establishment.
8. "Self-service
display":
(
a
) Means any
display from which customers may select a tobacco product without assistance
from the retail tobacco vendor or the retail tobacco vendor's representative,
agent or employee and without a direct person-to-person transfer
between the purchaser and the retail tobacco vendor or retail tobacco vendor's
representative, agent or employee.
(
b
) Includes a
vending machine.
7.
9.
"Smokeless
tobacco" includes shredded tobacco, snuff, cavendish and plug, twist and
other tobacco products that are intended for oral use but not for smoking.
8.
10.
"Smoking
tobacco" includes any tobacco or tobacco product, other than cigarettes
and cigars, that is intended to be smoked.
9.
11.
"Tobacco
products
product
"
:
includes cigarettes, cigarette papers, cigars,
smokeless tobacco and smoking tobacco.
(
a
) Means any of the
following:
(
i
) A product containing,
made of or derived from tobacco or nicotine that is intended for human
consumption or is likely to be consumed, whether inhaled, absorbed or ingested
by any other means, including a cigarette, a cigar, pipe tobacco, shisha,
beedies, bidis, chewing tobacco, snuff or snus.
(
ii
) An electronic smoking
device and any substance that may be aerosolized or vaporized by the device,
whether or not the substance contains nicotine.
(
iii
) A component, part or
accessory of any product, electronic smoking device or substance that is listed
in item (
i
) or (
ii
) of this subdivision, whether or
not any of these contain tobacco or nicotine, including filters, rolling
papers, blunt or hemp wraps and pipes.
(
b
) Does not include
drugs, devices or combination products authorized for sale by the United States
food and drug administration, as those terms are defined in the federal food,
drug, and cosmetic act or the regulations adopted pursuant to that act.
12. "Tobacco retail
establishment" MEANS any establishment at which a tobacco product is sold,
offered for sale, exchanged for any form of consideration or offered for
exchange for any form of consideration.
10.
13.
"Vending
machine" means any mechanical, electrical or electronic device that, on
insertion of money, tokens or any other form of payment, automatically
dispenses tobacco products.
END_STATUTE
Sec.
3. Section 36-798.01, Arizona Revised Statutes, is amended to read:
START_STATUTE
36-798.01.
Retail tobacco vendors; selling, furnishing, giving or providing
tobacco products; person under twenty-one years of age; prohibitions;
penalties; compliance checks
A. It is unlawful for a retail tobacco vendor
or a retail tobacco vendor's representative, agent or employee
to
sell, furnish, give or provide
beedies or bidis
a tobacco product
to a person who is under twenty-one
years of age in this state.
B. Any person who violates this
section is guilty of a class 3 misdemeanor.
B. Before distributing any tobacco
product, the retail tobacco vendor or the retail tobacco vendor's
representative, agent or employee shall verify that the purchaser is at least
twenty-one years of age.� Each retail tobacco vendor or retail tobacco
vendor's representative, agent or employee shall examine the purchaser's
government-issued photographic identification.� This verification is not
required for a person who is thirty years of age or older.� The fact that a
purchaser appeared to be thirty years of age or older does not constitute a
defense to a violation of this subsection.
C. If a retail tobacco vendor or the
retail tobacco vendor's representative, agent or employee violates this section
or section 13-3622 or 36-798.02, the retail tobacco vendor is subject to
the following penalties:
1. For a first violation, the retail
tobacco vendor or the retail tobacco vendor's representative, agent or employee
who is cited for the violation shall attend a tobacco-related education
class that is approved by the department, if available.� If an education class
is not available, the retail tobacco vendor is subject to a civil penalty of at
least $500 but not more than $750.
2. For a second violation within a
thirty-six-month period, a civil penalty of at least $750 but not more
than $1,000, and the retail tobacco vendor is prohibited from distributing
tobacco products for at least seven days.
3. For a third violation within a
thirty-six-month period, a civil penalty of at least $1,000 but not more
than $1,500, and the retail tobacco vendor is prohibited from distributing
tobacco products for at least thirty days.
4. For a fourth or any subsequent
violation within a thirty-six-month period, a civil penalty of at
least $1,000 but not more than $3,000, and the retail tobacco vendor is
prohibited from distributing tobacco products for a period of three years.
D. In addition to the penalties
imposed on the retail tobacco vendor for a violation of this section or section
13-3622 or 36-798.02, any person found to have violated this section
or section 13-3622 or 36-798.02
while acting as a
nonmanagement agent or employee of a retail tobacco vendor is subject to
noncriminal, nonmonetary penalties, including education classes or community
service.
E. The retail tobacco vendor is
subject to at least two unannounced compliance checks annually. The department
or its authorized designee shall conduct compliance checks by engaging persons
who are at least eighteen years of age and under twenty-one years of age
to enter the tobacco retail establishment to attempt to purchase tobacco
products.� Unannounced follow-up compliance checks of all noncompliant
retail tobacco vendors are required within three months after any violation of
this article.� The department shall publish and post online the results of all
compliance checks at least annually.
F. In addition to any other penalty,
a retail tobacco vendor that violates any provision of this article, the rules
adopted pursuant to this article or any federal law, state law or local
ordinance relating to tobacco product sales or marketing is subject to the
penalties prescribed in this section, including civil penalties and the
prohibition from distributing tobacco products as prescribed in subsection C of
this section.
G. The department shall deposit all
civil penalties collected pursuant to this section in the state general fund.
END_STATUTE
Sec. 4. Section 36-798.02, Arizona Revised
Statutes, is amended to read:
START_STATUTE
36-798.02.
Self-service displays; sales of tobacco products; penalties
A. A person
shall
may
not sell tobacco products through a
vending
machine
self-service display
unless the
vending machine
self-service display
is
located in either:
1. A bar
that does not allow persons
to enter who are under twenty-one years of age
.
2. An employee lounge area that is not open to the
public and the business in which the lounge area is located does not employ
minors
persons who are under twenty-one
years of age
.
B. A sign measuring at least eighty
square inches shall be obviously affixed to the front of each vending
machine. The sign shall state in block letters that it is illegal
for a person who is under twenty-one years of age to purchase cigarettes
or tobacco products and, on conviction, a fine of up to $300 may be imposed.
C.
B.
This
article does not invalidate an ordinance of or prohibit the adoption of an
ordinance by a county, city or town to further restrict
self-service
displays or
the location of
vending machines or specify
different wording for the vending machine signs as required by subsection B of
this section
self-service DISPLAYS
.
D.
C.
A
person who violates this section is
guilty of a petty offense
subject to the penalties prescribed in section 36-798.01
.
END_STATUTE
Sec. 5. Title 36, chapter 6, article 14,
Arizona Revised Statutes, is amended by adding sections 36-798.08, 36-798.09,
36-798.10 and 36-798.11, to read:
START_STATUTE
36-798.08.
Tobacco retail sales licenses; requirements; fees; penalties
A. Beginning January 1, 2028, a
retail tobacco vendor may not distribute tobacco products in this state without
a valid tobacco retail sales license.� A retail tobacco vendor that distributes
tobacco products in this state shall secure for each location, and display at
all times, a tobacco retail sales license issued by the department before
engaging or continuing to engage in such business.
B. The
department shall establish fees for an initial tobacco retail sales license and
the renewal of that license. The department shall deposit the fees
collected pursuant to this section in the tobacco retail sales licensing fund
established by section 36-798.10.
C. A
tobacco retail sales license is valid for one year, unless the license is
suspended or revoked by the department or the department's designee.� A tobacco
retail sales license may not be renewed if the retail tobacco vendor has any
outstanding penalties pursuant to this article.� The department may receive and
review tobacco retail sales license applications electronically.
D. If
a retail tobacco vendor applies for a tobacco retail sales license from the
department for a location that is within the jurisdiction of a local licensing authority,
the department may not issue a tobacco retail sales license to the retail
tobacco vendor until the retail tobacco vendor obtains the required local
license and provides a copy of the local license to the department.
E. A
tobacco retail sales license may not be issued or renewed to a retail tobacco
vendor until the retail tobacco vendor signs a form stating that the retail
tobacco vendor has read this article and has provided training to all employees
on the sale of tobacco products.� The training shall include the following
information:
1. That
it is illegal to sell tobacco products to persons who are under
twenty-one years of age
.
2. The
types of identification that are legally acceptable for the proof of age.
3. That
sales of TOBACCO products to persons who are under
twenty-one
years of age
subject
the retail tobacco vendor to penalties.
F. The tobacco retail sales license
is nontransferable. If a retail tobacco vendor ceases to be a
retailer at the licensed retail location by reason of discontinuation, sale or
transfer of the retail tobacco vendor's business, the retail tobacco vendor
shall notify the department in writing at the time the discontinuance, sale or
transfer takes effect.
G. Any business found to be selling
tobacco products without a tobacco retail sales license is subject to the
following:
1. For a first violation, a civil
penalty of at least $500 but not more than $1,000.
2. For a second violation within a
thirty-six-month period, a civil penalty of at least $500 but not
more than $1,000 and the department shall issue a cease and desist order
prohibiting the business from selling tobacco products and notifying the
business owner that the business is ineligible to receive a tobacco retail
sales license for a period of three years after the date of the second
violation
.
END_STATUTE
START_STATUTE
36-798.09.
Rulemaking; delegation of authority; collaboration; reporting
requirements
A. The department shall adopt rules
to establish a statewide tobacco retail sales license and to carry out this
article.
B. The department may delegate the
enforcement and compliance inspections required under this article to any
county that accepts this delegation.
C. The department may collaborate
with and use the findings of other agencies, including the attorney general's
office, local licensing authorities and law enforcement, to carry out the
obligations of this article and to ensure that the complaints received by other
agencies or local licensing authorities are forwarded to the department for
timely investigation and action.
D. A local licensing authority or any
law enforcement or other local entity conducting compliance checks to assess
retail tobacco vendor compliance with the minimum legal age of sale for tobacco
products shall report the compliance check results to the
department. Any violation shall be counted as a violation of the
retail tobacco vendor's tobacco retail sales license.�
END_STATUTE
START_STATUTE
36-798.10.
Tobacco retail sales licensing fund
The tobacco retail sales licensing fund is
established consisting of licensing fees collected pursuant to this
article. the department shall administer the fund.� The department
shall deposit, pursuant to sections 35-146 and 35-147, ninety
percent of all licensing fees collected under this article in the tobacco
retail sales licensing fund and the remaining ten percent in the state general
fund.� Monies in the fund are subject to legislative appropriation and shall be
used to administer and enforce this article.
END_STATUTE
START_STATUTE
36-798.11.
Local authority
This article does not restrict the authority of
any city, town or county to adopt and enforce additional laws, ordinances or
regulations that comply with the minimum applicable standards set forth in this
article.
END_STATUTE
Sec. 6.
Rulemaking
exemption
Notwithstanding any other law, for the
purposes of this act, the department of health services is exempt from the
rulemaking requirements of title 41, chapters 6 and 6.1, Arizona Revised
Statutes, for twenty-four months after the effective date of this act.