vapor products

SB1367 - 572R - I Ver

REFERENCE TITLE:
vapor products

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SB 1367

Introduced by

Senators
Bolick: Leach, Ortiz, Payne

AN
ACT

Amending sections 13-3622, 36-798,
36-798.01, 36-798.02, 36-798.03, 36-798.05 and 36-798.06,
Arizona Revised Statutes; amending title 36, chapter 6, article 14, Arizona
Revised Statutes, by adding sections 36-798.08 and 36-798.09;
amending sections 42-3001, 42-3401, 42-3403, 42-3404 and 42-3405,
Arizona Revised Statutes; amending title 42, chapter 3, article 10, Arizona
Revised Statutes, by adding sections 42-3407, 42-3408 and 42-3409;
relating to vapor 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 product, vapor product and tobacco and shisha instruments
or paraphernalia; furnishing to underage persons; acceptance, receipt or
illegally obtaining by underage person; classification; 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
, nicotine
or shisha, including a hookah or waterpipe, to a
person who is under twenty-one years of age is guilty of a petty offense
and, notwithstanding section 13-802, shall pay a fine of at
least $2,500
.

B. 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,
nicotine or shisha, including a hookah or waterpipe, to a person who is under
twenty-one years of age is guilty of a class 1 misdemeanor.

B.
C.
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
, nicotine
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
, nicotine
or shisha, shall pay a fine of at least $100 or
perform at least thirty hours of community restitution.

C.
D.
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
, nicotine
or shisha, including a hookah or waterpipe, in
violation of subsection A
,

or
B
or c
of this section is guilty of a petty offense and,
notwithstanding section 13-802, shall pay a fine of not more than $500.

E. A person or business that is
eligible to participate in a state or local diversion or education program in
lieu of the penalties prescribed in this section may participate in the
diversion or education program not more than once per person or per business
location.

D.
F.
This
section does not apply to any of the following:

1. Cigars, cigarettes or cigarette papers, smoking
or chewing tobacco or any instrument or paraphernalia that is solely designed
for smoking or ingesting tobacco
, nicotine
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
, nicotine
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
, nicotine
or shisha.

E.
G.
For
the purposes of this section:

1. "Shisha" includes any mixture of
tobacco leaf and honey, molasses or dried fruit or any other sweetener.

2. "Tobacco product" 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.

(
f
) A product
containing nicotine or a nicotine analog, unless the product is a vapor product
or is regulated by the United States food and drug administration pursuant to
chapter V of the federal food, drug, and cosmetic act.

3. "Vapor product":

(a) Means a noncombustible
tobacco-derived

product
containing
that contains

nicotine
or a nicotine analog and
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.
END_STATUTE

Sec. 2.
Heading change

The article heading of title 35,
chapter 6, article 14, Arizona Revised Statutes, is changed from "TOBACCO
SALES" to "TOBACCO PRODUCT AND VAPOR PRODUCT SALES".

Sec. 3. Section 36-798, Arizona Revised
Statutes, is amended to read:

START_STATUTE
36-798.

Definitions

A.
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. "Nicotine analog" means
a substance that has a chemical structure that is substantially similar to the
chemical structure of nicotine or that has, purports to have or is represented
to have an effect on the central nervous system that is similar to or greater
than the effect of nicotine on the central nervous system.

6. "Retail tobacco vendor" means a person

who
or entity that

possesses
tobacco or
tobacco products
,
vapor products or shisha
for the purpose of selling them
to
the consumer
for consumption and not for resale.

7. "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. "Smoking tobacco" includes any tobacco
or tobacco product, other than cigarettes and cigars, that is intended to be
smoked.

9. "Tobacco products" includes cigarettes,
cigarette papers, cigars, smokeless tobacco
,

and
smoking tobacco
and any product that contains
nicotine or a nicotine analog, unless the product is a vapor product or is
regulated by the United States food and drug administration pursuant to chapter
V of the federal food, drug, and cosmetic act
.

10. "Vapor product":

(
a
) Means a
noncombustible product that contains nicotine and that employs a mechanical
heating element, battery or circuit, regardless of shape or size, that can be
used to heat a solution containing nicotine or a nicotine analog.

(
b
) Does not
include any product that is regulated by the United States food and drug
administration pursuant to chapter V of the federal food, drug, and cosmetic
act.

10.
11.
"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.

B. Factors relevant to determining
whether a substance is a nicotine analog pursuant to subsection A, PARAGRAPH 5
of this section include the marketing, advertising and labeling of the
substance and whether the substance has been manufactured, formulated, sold,
distributed or marketed with the intent to avoid the provisions of this article
or any other section of law governing nicotine analogs.

END_STATUTE

Sec. 4. Section 36-798.01, Arizona Revised Statutes, is amended to read:

START_STATUTE
36-798.01.

Selling or giving beedies or bidis; underage persons; violation;
classification; fine

A. It is unlawful for a retail tobacco vendor to
sell, furnish, give or provide beedies or bidis 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
and, notwithstanding section 13-802,
shall pay a fine of at least $2,500
.
END_STATUTE

Sec. 5. Section 36-798.02, Arizona Revised
Statutes, is amended to read:

START_STATUTE
36-798.02.

Sales of tobacco, tobacco products and vapor products; vending
machine signage; violation; classification

A. A person shall not sell tobacco
products through a vending machine unless the vending machine is located in
either:

A. Except as provided in subsection B
of this section, it is unlawful to sell or distribute tobacco, tobacco products
or vapor products either:

1. At a retail establishment in this
state by any means other than vendor-assisted sales where the customer
has no direct access to the product except through the assistance of the
seller.

2. From self-service displays or
vending machines.

B. Subsection A of this section does
not apply to:

1. Retail establishments if persons
who are under twenty-one years of age are not allowed in the
establishment and such prohibition is posted clearly on all entrances.

2. Sales allowed under sections 36-798.06
and 36-798.07.

1.
3.
A
bar.

2.
4.
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.
C.
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
or vapor products
and, on conviction, a fine of
up to
$300
$500
may be imposed.

C.
D.
This
article does not invalidate an ordinance of or prohibit the adoption of an
ordinance by a county, city or town to further restrict the location of vending
machines or specify different wording for the vending machine signs as required
by subsection
B
�C
of this section.

D.
E.
A
person who violates this section is guilty of a petty offense

and, notwithstanding section 13-802, shall pay a fine of at least $2,500
.

END_STATUTE

Sec. 6. Section 36-798.03, Arizona Revised
Statutes, is amended to read:

START_STATUTE
36-798.03.

Tobacco products and vapor products prohibition at schools and
school-related areas; exception; violation; classification

A. Tobacco products
and vapor
products
are prohibited on school grounds, inside school buildings, in
school parking lots or playing fields, in school buses or vehicles or at off-campus
school sponsored events. For purposes of this subsection,
"school" means any public, charter or private school where children
attend classes in kindergarten programs or grades one through twelve.

B. Subsection A of this section does not apply to an
adult who employs tobacco products
or vapor products
as a
necessary component of a school sanctioned tobacco prevention or cessation
program established pursuant to section 15-712.

C. A person who violates this section is guilty of a
petty offense.
END_STATUTE

Sec. 7. Section 36-798.05, Arizona Revised
Statutes, is amended to read:

START_STATUTE
36-798.05.

Unsolicited delivery of tobacco products; violation;
classification; civil penalties; definitions

A. It is unlawful for a person to deliver or cause
to be delivered to any residence in this state any tobacco products unsolicited
by at least one
adult
person who is at
least twenty-one years of age and
who resides at that address.

B. A person who knowingly violates subsection A of
this section is guilty of a class 2 misdemeanor.

C. A person who violates subsection A of this
section is subject to a civil penalty in an amount of not
to
exceed five thousand dollars
more than $5,000
for
each violation.� Each delivery of a tobacco product
shall
constitute
constitutes
a separate violation.

D. The attorney general may bring an action to
recover civil penalties and
,
as determined by the court,
taxable costs, such other fees and expenses reasonably incurred and reasonable
attorney fees, in the name of the state for a violation of this section.� All
civil penalties recovered shall be deposited, pursuant to sections 35-146
and 35-147, in the state general fund and all other monies recovered
shall be deposited, pursuant to sections 35-146 and 35-147, in the
antitrust enforcement revolving fund established by section 41-191.02.

E.
In
for the
purposes of
this section
, unless the context otherwise
requires
:

1. "Knowingly" has the same meaning
prescribed in section 13-105.

2. "Person" means an individual,
partnership, firm, association, corporation, limited liability company, limited
liability partnership, joint venture
,
or other
entity, other than an individual or entity engaged in the delivery of items for
hire.
END_STATUTE

Sec. 8. Section 36-798.06, Arizona Revised
Statutes, is amended to read:

START_STATUTE
36-798.06.

Delivery sales prohibited; common carriers; penalties;
forfeiture; unlawful practice; exceptions; violation; classification;
definitions

A. A person shall not do either of the following:

1. Cause a tobacco product
or vapor
product
to be ordered or purchased by anyone other than a licensed
person or a retailer who orders or purchases from a licensed person, including
by ordering or purchasing a tobacco product
or vapor product
.

2. Knowingly provide substantial assistance to a
person who violates this section.

B. A common carrier shall not knowingly transport a
tobacco product
or vapor product
for a person who is in
violation of this section.

C. Each order or purchase of a tobacco product
or vapor product
in violation of subsection A, paragraph 1 of
this section constitutes a separate violation under this section.

D. In addition to any other penalty, a person who
violates this section is subject to all of the following:

1. A civil penalty in an amount not to exceed $5,000
for each violation.

2. An injunction to restrain a threatened or actual
violation of this section.

3. Recovery by this state for:

(a) The costs of any investigation related to a
violation of this section.

(b) The cost of expert witness fees in any action
related to a violation of this section.

(c) The cost of the action related to a violation of
this section.

(d) Reasonable attorney fees.

4. All state tobacco taxes due under title 42,
chapter 3, except as prohibited under section 42-3402, and all
transaction privilege or use taxes due under title 42, chapter 5, including any
penalties and interest.

E. All tobacco products
or vapor
products
that are seized for a violation of this section shall be
forfeited to the state and destroyed pursuant to section 42-1124.

F. A violation of
this section is an unlawful practice under section 44-1522 and is in
addition to all other causes of action, remedies and penalties that are
available to this state. The attorney general may investigate and
take appropriate action pursuant to title 44, chapter 10, article 7.

G. This section does not apply to any of the
following:

1. The shipment of a tobacco product

or vapor product
to a foreign trade zone that is established under 19
United States Code sections 81a through 81u and title 44, chapter 18 and that
is located in this state if the tobacco product
or vapor product

is from outside of this country, was ordered by a distributor in another state
and is not distributed in this state.

2. A government employee who is acting in the course
of the employee's official duties.

3. The shipment of a tobacco product

or vapor product
to a university that is acquiring the tobacco product
or vapor product
to use to conduct basic and applied research,
if the tobacco product
or vapor product
is exempt from
federal excise tax under 26 United States Code section 5704(a).

H. A person who violates this section is guilty of a
class 6 felony.

I. For the purposes of this section:

1. "Licensed person" means a person who is
required to be licensed under section 42-3401.

2. "Order or purchase" means any of the
following:

(a) By mail or delivery service.

(b) Through the internet or a computer network.

(c) By telephone.

(d) Through any other electronic method.

3. "Person" means an individual,
partnership, firm, association, corporation, limited liability company or
partnership, joint venture or other entity.

4. "Retailer" has the same meaning
prescribed in section 42-5001.

5. "Tobacco product"
:

(
a
)
Means:

(
i
)
All
luxuries included in section 42-3052, paragraphs 5, 6 and 7.�
Tobacco product

(
ii
) A product
containing nicotine or a nicotine analog, unless the product is a vapor product
or is regulated by the United States food and drug administration pursuant to
chapter V of the federal food, drug, and cosmetic act.

(
b
)
Does
not include pipe tobacco or cigars.
END_STATUTE

Sec. 9. Title
36, chapter 6, article 14, Arizona Revised Statutes, is amended by adding
sections 36-798.08 and 36-798.09, to read:

START_STATUTE
36-798.08.

Retailers; signage; identification confirmation; violation; classification;
fine

A. A retailer may not sell, offer to
sell, furnish or give a tobacco product or vapor product unless the retailer
prominently displays a sign that reads as follows:

It is illegal for a person under twenty-one
years of age to purchase cigarettes, tobacco products or vapor products and, on
conviction, a fine of up to $500 may be imposed.

B. If a person reasonably appears to
be under thirty years of age, a retailer may not sell, offer to sell, furnish
or give a tobacco product or vapor product to the person without first
examining the person's government-issued photographic identification to
establish that the person is at least twenty-one years of age.

C. A retailer may not sell, offer to
sell, furnish or give a tobacco product or vapor product except in the
manufacturer's original packaging and may not open packaging and sell a portion
of the tobacco product or vapor product contained in the packaging.

D. A person who violates subsection B
or C of this section is guilty of a petty offense and, notwithstanding section
13-802, shall pay a fine of at least $500.
END_STATUTE

START_STATUTE
36-798.09.

Sale of vapor products; restrictions; violation; fine

A. A person may not sell in this
state a vapor product that is accompanied by, uses or has advertising,
labeling, packaging, trade dress, trademarks or branding or a design of the
product that:

1. Depicts a cartoon or cartoon-like
character that mimics a character primarily aimed at entertaining minors.

2. Includes an image of a celebrity
or a character in a comic book, movie, television show or video game, or a
mythical creature.

3. Imitates or mimics trademarks or
trade dress of products that are or have been primarily marketed to minors.

4. Includes a symbol that is
primarily used to market products to minors.

5. Imitates, mimics or replicates the
design of a product that is not a vapor product, including any of the
following:

(
a
) School
supplies commonly used by minors, including an eraser, highlighter, pen, pencil
or backpack.

(
b
) A
smartphone, smartwatch, smartphone case or smartwatch case, headphones, ear
buds or an external battery used to charge such devices.

(
c
) A cosmetic,
including lipstick.

(
d
) A toy.

6. Has entertainment features, such
as the ability to play games or play music or other audio or to display photos
or videos or any other similar electronic entertainment features.

B. A person who violates subsection a
of this section is guilty of a petty offense and, notwithstanding section
13-802, shall pay a fine of at least $500.
END_STATUTE

Sec. 10. Section 42-3001, Arizona Revised
Statutes, is amended to read:

START_STATUTE
42-3001.

Definitions

In this chapter, unless the context otherwise requires:

1. "Affix" and "affixed" include
imprinting tax meter stamps on packages and individual containers as authorized
by the department.

2. "Brand family" has the same meaning
prescribed in section 44-7111.

3. "Cavendish" means a tobacco product
that is smoked from a pipe and that meets one of the following criteria:

(a) Is described as cavendish, as containing cavendish
or as a cavendish blend on its packaging, labeling or promotional materials.

(b) Appears to have been processed or manufactured
with an amount of flavorings and humectants that exceeds twenty percent of the
weight of the tobacco contained in the product.

(c) Appears to be blended with or contain a tobacco
product described in subdivision (b) of this paragraph.

4. "Cider" means vinous liquor that is
made from the normal alcoholic fermentation of the juice of sound, ripe apples,
pears or other pome fruit, including flavored, sparkling and carbonated cider
and cider made from condensed apple, pear or other pome fruit must, and that
contains more than one-half of one percent of alcohol by volume but not more
than seven percent of alcohol by volume.

5. "Cigar" means any roll of tobacco
wrapped in leaf tobacco or in any substance containing tobacco other than any
roll of tobacco that is a cigarette, as defined in paragraph 6, subdivision (b)
of this section.

6. "Cigarette" means either of the
following:

(a) Any roll of tobacco wrapped in paper or any
substance not containing tobacco.

(b) Any roll of tobacco wrapped in any substance
containing tobacco that, because of its appearance, the type of tobacco used in
the filler or its packaging and labeling, is likely to be offered to or
purchased by a consumer as a cigarette described in subdivision (a) of this
paragraph.� This subdivision shall be interpreted consistently with the
classification guidelines established by the federal alcohol and tobacco tax
and trade bureau.

7. "Consumer" means a person in this state
that comes into possession of any luxury subject to the tax imposed by this
chapter and that, on coming into possession of the luxury, is not a distributor
intending to sell or distribute the luxury, a retailer or a wholesaler.

8. "Craft distiller" means a distiller in
the United States or in a territory or possession of the United States that
holds a license pursuant to section 4-205.10.

9. "Distributor" means any person that
manufactures, produces, ships, transports or imports into this state or in any
manner acquires or possesses for the purpose of making the first sale of the
following:

(a) Cigarettes without Arizona tax stamps affixed as
required by this article.

(b) Roll-your-own tobacco or other
tobacco products on which the taxes have not been paid as required by this
chapter.

(
c
) Vapor
products.

(
d
) Other
products that contain nicotine or a nicotine analog, unless the product is
regulated by the united states food and drug administration under chapter v of
the federal food, drug, and cosmetic act.

10. "Farm winery" has the same meaning
prescribed in section 4-101.

11. "First sale" means the initial sale or
distribution in intrastate commerce or the initial use or consumption of
cigarettes, roll-your-own tobacco or other tobacco products.

12. "Luxury" means any article, object or
device on which a tax is imposed under this chapter.

13. "Malt liquor" means any liquid that
contains more than one-half of one percent alcohol by volume and that is
made by the process of fermentation and not distillation of hops or grains, but
not including:

(a) Liquids made by the process of distillation of
such substances.

(b) Medicines that are unsuitable for beverage
purposes.

14. "Master settlement agreement" has the
same meaning prescribed in section 44-7101.

15. "Microbrewery" has the same meaning
prescribed in section 4-101.

16. "Nonparticipating manufacturer" has
the same meaning prescribed in section 44-7111.

17. "Other tobacco products" means tobacco
products other than cigarettes and roll-your-own tobacco.

18. "Participating manufacturer" has the
same meaning prescribed in section 44-7111.

19. "Person" means any individual, firm,
partnership, joint venture, association, corporation, municipal corporation,
estate, trust, club, society or other group or combination acting as a unit,
and the plural as well as the singular number.

20. "Place of
business"
:

(
a
)
Means a building, facility site or location where
an order is received or where tobacco products are sold, distributed or
transferred.�
Place of business

(
b
)
Does
not include a vehicle.

21. "Retailer" means any person that comes
into possession of any luxury subject to the taxes imposed by this chapter for
the purpose of selling it for consumption and not for resale.

22. "Roll-your-own tobacco"
means any tobacco that, because of its appearance, type, packaging or labeling,
is suitable for use and likely to be offered to or purchased by consumers as
tobacco for making cigarettes. This paragraph shall be interpreted consistently
with the term as used in section 44-7101. This paragraph shall
be interpreted consistently with the classification guidelines established by
the federal alcohol and tobacco tax and trade bureau.

23. "Smoking tobacco"
:

(
a
)
Means
any tobacco that, because of its appearance, type, packaging, labeling or
promotion, is suitable for use and likely to be offered to or purchased by
consumers as tobacco for making cigarettes or otherwise consumed by
burning.
Smoking tobacco

(
b
)
Includes
pipe tobacco and roll-your-own tobacco.

24. "Spirituous liquor"
:

(
a
)
Means
any liquid that contains more than one-half of one percent alcohol by
volume, that is produced by distillation of any fermented substance and that is
used or prepared for use as a beverage.
Spirituous
liquor

(
b
)
Does
not include medicines that are unsuitable for beverage purposes.

25. "Tobacco product manufacturer" has the
same meaning prescribed in section 44-7101.

26. "Tobacco
products" means
both of the following:

(
a
)
All luxuries included in section 42-3052,
paragraphs 5 through 9.

(
b
) Any other product
that contains nicotine
or a nicotine analog, unless the product is a vapor product or is regulated by
the united states food and drug administration under chapter v of the federal
food, drug, and cosmetic act.

27. "vapor
product" has the same meaning prescribed in section 36-798.

28. "vapor
product manufacturer" means a person or entity that manufactures,
fabricates, assembles, processes or labels a finished vapor product for sale in
this state.

27.
29.
"Vehicle" means a device
in, on or by which a person or property is or may be transported or drawn on
the roads of this state regardless of the means by which it is propelled or
whether it runs on a track.

28.
30.
"Vinous
liquor"
:

(
a
)
Means
any liquid that contains more than one-half of one percent alcohol by
volume and that is made by the process of fermentation of grapes, berries,
fruits, vegetables or other substances
.
�
But

(
b
)
Does
not include:

(a)

(
i
)
Liquids in which hops or grains are used in the
process of fermentation.

(b)

(
ii
)
Liquids made by the process of distillation of
hops or grains.

(c)

(
iii
)
Medicines that are unsuitable for beverage purposes.

29.
31.
"Wholesaler"
means a person that sells any spirituous, vinous or malt liquor taxed under
this chapter to retail dealers or for the purposes of resale only.
END_STATUTE

Sec. 11.
Heading change

The article heading of title 42,
chapter 3, article 10, Arizona Revised Statutes, is changed from
"DISTRIBUTORS AND RETAILERS OF TOBACCO PRODUCTS" to
"DISTRIBUTORS, RETAILERS AND MANUFACTURERS OF TOBACCO PRODUCTS AND VAPOR
PRODUCTS".

Sec. 12. Section 42-3401, Arizona Revised
Statutes, is amended to read:

START_STATUTE
42-3401.

Tobacco distributor licenses; application; conditions;
revocations and cancellations

A. Every person acquiring or possessing for the
purpose of making the initial sale or distribution in this state of any tobacco
products on which a tax is imposed by this chapter
, any tobacco
products on which a tax is not imposed by this chapter or vapor products

shall obtain from the department a license to sell tobacco
products. The application for the license shall be in the form
provided by the department and shall be accompanied by a fee of $25 for each
place of business listed in the application.� The form shall state that the
identity of the applicant will be posted to the department's website for public
inspection. The application for a license shall include the
applicant's name and address, the applicant's principal place of business, all
other places of business where the applicant's business is conducted for the
purpose of making the initial sale or distribution of tobacco products
or vapor products
in this state, including any location that
maintains an inventory of tobacco products
or vapor products
,
and any other information required by the department. The
applicant's principal place of business and other business locations may not
include a residential location or post office box address, except as allowed
under subsection D, paragraph 2, subdivision (c) of this
section. If the applicant is a firm, partnership, limited liability
company, limited liability partnership or association, the applicant shall list
the name and address of each of the applicant's members.� If the applicant is a
corporation, the application shall list the name and address of the applicant's
officers and any person who directly or indirectly owns an aggregate amount of
ten percent or more of the ownership interest in the corporation. If
a licensee is a corporation, firm, partnership, limited liability company,
limited liability partnership or association, the licensee under this
subsection shall notify the department in writing within thirty days after any
change in membership, legal entity status or ownership of more than fifty
percent of the total ownership interest in a single transaction. If
a licensee changes its business location, the licensee under this subsection
shall notify the department within thirty days after a change in
location. If the licensee is making a change in its business
location by adding or replacing one or more additional places of business that
are not currently listed on its application, the licensee must remit a fee of
$25 for each additional place of business.

B. For the purposes of subsection A of this section,
an applicant with a controlling interest in more than one business engaged in
activities as a distributor shall apply for a single license encompassing all
such businesses and list each place of business in its application.� For the
purposes of this subsection, "controlling interest" means direct or
indirect ownership of at least eighty percent of the voting shares of a
corporation or of the interests in a company, business or person other than a
corporation.

C. The department shall issue a license authorizing
the applicant to acquire or possess tobacco products
and vapor
products
in this state on the condition that the applicant complies with
this chapter and the rules of the department.� The license:

1. Shall be nontransferable. A licensee
may not transfer its license to a new owner when selling its business, and any
court-appointed trustee, receiver or other person shall obtain a license
in its own name in cases of liquidation, insolvency or bankruptcy or pursuant
to a court order if the business remains in operation as a distributor of
tobacco products
or vapor products
. In cases
of liquidation, insolvency or bankruptcy or pursuant to a court order, the
department will not consider a business as remaining in operation under this
paragraph if the court-appointed trustee, receiver or other person winds
up the business within sixty days after the order is issued.� A licensee shall
apply for a new license if it changes its legal entity status or otherwise
changes the legal structure of its business.

2. Shall be valid for one year unless earlier
canceled or revoked by the department.

3. Shall be displayed
in a conspicuous place at the licensee's place of business. If the
licensee operates from more than one place of business, the licensee must
display a copy of its license in a conspicuous place at each location.

D. As a condition of licensure under this section,
an applicant agrees to the following conditions:

1. A person may not hold or store any tobacco
products
or vapor products
, whether within or outside of
this state, for sale or distribution in this state by or on behalf of a
distributor at any place other than a location that has been disclosed to the
department pursuant to subsection A of this section.� This paragraph does not
include a person holding or storing tobacco products
or vapor
products
by or on behalf of the distributor when the tobacco products
or vapor products
are in transit to a distributor or retailer
as part of a lawful sale.

2. All tobacco products
or vapor
products
held or stored, whether within or outside of this state, for
sale or distribution in this state by or on behalf of a distributor:

(a) Shall be accessible to the department during
normal business hours without a judicial warrant or prior written consent of
the distributor.

(b) May not be held or stored in a vehicle, except
as allowed under section 42-3403, subsection B.

(c) May not be held or stored
at a residential location, unless the sole luxury for sale or distribution by
or on behalf of the distributor is taxed as a cigar under section 42-3052,
paragraph 8 or 9 and the product weight of the cigars is not more than five
hundred pounds.� If the product is held or stored at a residential location, as
a condition of licensure, the distributor shall provide written consent and
allow access to the department to inspect the stock of luxuries and all books,
papers, invoices, records and electronically stored data showing sales,
receipts and purchases of luxuries. The distributor shall submit the
written consent to the department with the license application or on demand of
the department.

3. Tobacco products
or vapor products

may be sold, transferred or distributed to a retailer located on an Indian
reservation in this state only if the retailer is registered with, and has a
registration identification number issued by, the department.

E. A person who is convicted of an offense described
in section 42-1127, subsection E is permanently ineligible to hold a
license issued under this section.

F. The department may not issue or renew a license
to an applicant and may revoke a license issued under subsection C of this
section if any of the following applies:

1. The applicant or licensee owes $1,000 or more in
delinquent taxes imposed on tobacco products under this chapter that are not
under protest or subject to a payment agreement.

2. The department has revoked any license held by
the applicant or licensee within the previous two years.

3. The applicant or licensee has been convicted of a
crime that relates to stolen or counterfeit cigarettes.

4. The applicant or licensee has imported cigarettes
into the United States for sale or distribution in violation of 19 United
States Code section 1681a.

5. The applicant or licensee has imported cigarettes
into the United States for sale or distribution without fully complying with
the federal cigarette labeling and advertising act (P.L. 89-92; 79 Stat. 282;
15 United States Code section 1331).

6. The applicant or licensee is in violation of
section 13-3711 or section 36-798.06, subsection A.

7. Pursuant to section 44-7111, section 6(a),
the applicant or licensee is in violation of section 44-7111, section
3(c).

8. The civil rights of the applicant or licensee
have been suspended under section 13-904. An applicant or
licensee whose civil rights have been suspended is ineligible to hold a license
for a period of five years following the restoration of the applicant's or
licensee's civil rights.

G. In addition to any other civil or criminal
penalty and except as otherwise provided in this section, the department may
deny the issuance or renewal of or revoke a license issued under subsection C
of this section if the person violates any requirement under this title more
than two times within a three-year period or fails to otherwise maintain the
conditions of licensure in this section.

H. The department shall publish on its website the
names of each person who is issued a license under subsection C of this
section, including any trade names or business names used by the
licensee. The department shall update the published names at least
once each month.

I. A person may not apply for or hold a
distributor's license if that person does not engage in the activities
described in subsection A of this section. In addition to any other
applicable penalty, the department may cancel the license of any licensee that
fails to incur any tax liability under this chapter for twelve consecutive
months.

J. Any revocation, cancellation or denial of a
license issued under this section by the department must comply with section 41-1092.11,
subsection B.

K. Notwithstanding any other law, for the purposes
of subsection F, paragraphs 1 and 2 of this section, section 42-1127,
subsection C and section 42-3461, subsection B, if a distributor has
listed in its application more than one place of business, any revocation,
cancellation, denial or nonrenewal of the distributor's license shall apply
only with effect to remove the place of business or business location at which
the activity occurred from the distributor's license.� If such a removal
occurs, the distributor
shall be
is

subject to restrictions that the department prescribes by rule.
END_STATUTE

Sec. 13. Section 42-3403, Arizona Revised
Statutes, is amended to read:

START_STATUTE
42-3403.

Tobacco product and vapor product retailers; vehicle as place of
business prohibited; exceptions

A. A retailer may sell any tobacco product
or vapor product
that is not otherwise prohibited by federal or
state law from sale for resale, but a retailer may not acquire or possess
unstamped cigarettes, or other tobacco products or cigarettes on which taxes
levied under this chapter have not been paid, unless the retailer holds a valid
license issued under section 42-3401.

B. A person may not use a vehicle as a place of
business for selling, transferring or otherwise distributing tobacco products
or vapor products
.� This subsection does not prohibit the
lawful delivery of other tobacco products
or vapor products

by a person who holds a valid license issued under section 42-3401, or by
that person's representative, using a vehicle that is owned, operated or
contracted by that person or that person's representative.� That person or that
person's representative is expressly allowed to use such a vehicle to carry and
store tax-paid other tobacco products in the normal course of performing
the person's or the person's representative's duties, including for the purpose
of selling other tobacco products to, and performing similar lawful
transactions with, retailers and distributors. If a vehicle is used
by a licensed distributor to carry and store tax-paid other tobacco
products, as a condition of licensure, the distributor shall provide written
consent and allow access to the department to inspect the stock of luxuries and
all books, papers, invoices, records and electronically stored data showing sales,
receipts and purchases of luxuries. The distributor shall submit the
written consent to the department with the license application or on demand of
the department.

C. This section does not prohibit business
activities that are allowed under sections 42-3454 and 42-3502 for
both taxed and untaxed tobacco products.
END_STATUTE

Sec. 14. Section 42-3404, Arizona Revised
Statutes, is amended to read:

START_STATUTE
42-3404.

Exemptions and exclusions of certain tobacco products from
tobacco taxes

A. The taxes imposed by this chapter do not apply
to:

1. Tobacco products that are sold to the United
States army, air force, navy, marine corps or coast guard exchanges and
commissaries and navy or coast guard ships' stores.

2. Tobacco products that are sold to the United
States department of veterans affairs.

3. Tobacco products that are non-tax-paid under
subtitle E, chapter 52 of the internal revenue code and that are under internal
revenue bond or customs control.

4. Tobacco products that are sold or transferred to
a law enforcement agency for use in a criminal investigation if the sale or
transfer is authorized by the department. A law enforcement agency
authorized by the department to receive or purchase tobacco products is not
required to:

(a) Be licensed as a distributor.

(b) Collect or remit the tax imposed by this chapter
with respect to authorized distributions.

5. Tobacco products that are sold by a distributor
licensed under section 42-3401 to a common carrier engaged in foreign
passenger service or to a retailer that sells tobacco products on the
facilities of the carrier that are dedicated to foreign passenger service.

6. Federally tax free tobacco products that are sold
or given for delivery directly from the manufacturer under internal revenue
bond to a veterans' home of this state or a hospital or domiciliary facility of
the United States department of veterans affairs for gratuitous issue to
veterans receiving hospitalization or domiciliary care.� The taxes are not
imposed with respect to the use or consumption of the tobacco products by the
institution, veteran patients or domiciliaries.

7. Tobacco products that are sold by a manufacturer
to a distributor licensed under section 42-3401.

8. Tobacco products that are manufactured outside
the United States and that are sold by an importer to a distributor licensed
under section 42-3401.

9. A product containing nicotine or a
nicotine analog or a vapor product.

B. Subsection A, paragraphs 1 and 2 of this section
do not apply after the first day of the first calendar month beginning more
than sixty days after existing federal law is amended to permit state taxation
of cigarettes sold by or through federal military installations.

C. Sales of tobacco products by a licensed
distributor to an instrumentality of the United States government must be
supported by a separate sales invoice and a properly completed federal
exemption certificate.� Each sales invoice must be numbered, be dated and show
the name of the seller, the name of the purchaser and the destination.

D. This section does
not affect the imposition of transaction privilege and use taxes pursuant to
chapter 5 of this title to any transactions described in subsection A of this
section if the transaction is otherwise subject to transaction privilege tax or
use tax.

E. The exemptions and exclusions provided in
subsection A of this section do not affect the taxability under this chapter of
tobacco products that are sold, given or transferred to a person in this state
subsequent to the transactions described in subsection A of this section.
END_STATUTE

Sec. 15. Section 42-3405, Arizona Revised
Statutes, is amended to read:

START_STATUTE
42-3405.

Tobacco and vapor product manufacturers, importers, distributors
and retailers; recordkeeping and invoicing requirements; retention period

A. Except for retail transactions with consumers,
each manufacturer, importer and distributor of tobacco products
and
each vapor product manufacturer, importer and distributor
shall maintain
copies of invoices or equivalent documentation for each facility and for each
transaction that involves the sale, purchase, transfer, consignment or receipt
of tobacco products
and vapor products
within this
state.� The invoices or equivalent documentation for each transaction shall be
in the form and manner prescribed by the department and shall indicate the name
and address of the other party and the quantity by brand style of the tobacco
products
or vapor products
involved in the transaction.

B. A distributor of tobacco products
or
vapor products
shall issue an invoice or equivalent documentation for
each transaction that involves the sale, purchase or consignment of tobacco
products
or vapor products
to a retailer. The
invoice or equivalent documentation must include the license number of the
distributor, which the retailer may use to ascertain whether the license is
current and valid.

C. Any retailer of tobacco products
or
vapor products
shall retain all invoices or equivalent documentation
received under subsection B of this section.

D. Records required under this section shall be
preserved on the premises described in the relevant license in a manner as to
ensure accessibility for inspection at reasonable hours by authorized personnel
of the department. With the department's permission, persons with
multiple places of business may retain centralized records
,

but shall transmit duplicates of the invoices or the equivalent documentation
to each place of business within three business days after a request by the
department.

E. The records required by this section shall be
retained for a period of four years after the date of the transaction.

F. On request, the
department and the United States secretary of the treasury or secretary's
designee shall have access to records required under this section and reports
required under section 42-3462. The department at its sole
discretion may share the records and reports required by this chapter with
other law enforcement officials of federal and state governments under
conditions that assume the confidentiality of taxpayer information contained in
the records and reports.
END_STATUTE

Sec. 16. Title 42, chapter 3, article 10,
Arizona Revised Statutes, is amended by adding sections 42-3407, 42-3408 and 42-3409,
to read:

START_STATUTE
42-3407.

Vapor product manufacturer license; rules; fees; certification;
application; bond; product list; civil penalties; violation; classification

A.
From and after January 31, 2027, a vapor product manufacturer may not
offer for sale or sell vapor products, whether directly or through an importer,
distributor or retailer or a similar intermediary or intermediaries, without a
valid vapor product manufacturer license.

B.
The department shall adopt rules to administer this
section and establish fees for an initial vapor product manufacturer license
and the renewal of the license. The department shall deposit,
pursuant to sections 35-146 and 35-147, the fees collected pursuant to
this section in the tobacco retail licensing fund established by section
42-3409.

C.
A vapor product manufacturer license is valid for one
year, unless the DEPARTMENT the department's designee suspends or revokes the
license, and must be renewed annually. A vapor product manufacturer
license may not be renewed if the vapor product manufacturer is liable for any
outstanding penalties pursuant to this section. The department may
receive and review vapor product manufacturer license applications
electronically.

D.
Each applicant for a vapor product manufacturer license
shall file a certification as provided in this section
as
a condition precedent to obtain a license. Without filing such certification,
the vapor product manufacturer
may not be issued a vapor
product manufacturer license and may not sell its vapor products in this state
or to a consumer in this state, whether directly or through a distributor or
retailer or a similar intermediary or intermediaries.

E.
A certification filed under this section
shall be made under penalty of perjury on a form and in a manner
prescribed by the department. The certification must include the following:

1.
The name and address of the applicant or, if the applicant
is a firm, partnership, limited liability company or association, the name and
address of each of its members or, if the applicant is a corporation, the name
and address of each of its officers and the address of its principal place of
business.

2.
The address of the principal place of business of the
applicant that is seeking a license.

3. Either
of the following:

(
a)
A copy of the prevent all cigarette trafficking act of
2009 registration form, or an equivalent successor form, designated by the
bureau of alcohol, tobacco, firearms and explosives of the United States
DEPARTMENT of justice as submitted by the applicant to the bureau of alcohol,
tobacco, firearms and explosives and an attestation that the applicant is in
compliance with, and will continue to comply with, all applicable requirements
of 15
United States Code sections 375 and 376
.

(
b
)
a statement explaining why the
prevent all cigarette trafficking act of 2009 is not applicable to the
applicant and the applicant's products.

4.
An attestation that the applicant will comply with all
applicable laws of
this state and all applicable laws of
the jurisdictio
n that encompass
es
the applicant's principal place of business.

5.
A list of each type or model of the applicant's vapor
product that is sold or offered for sale in this state, including for each
vapor product the vapor product name, vapor product category, volume of
nicotine by weight and total volume.

6.
An attestation that the
applicant's vapor products fully comply with the requirements of the
United
States customs and border protection,
including accurate entry summary forms
, or
equivalent successor
forms, and that the
applicant is not in violation of 18
United States Code
section 541, 542 or 545.� The department may request that the applicant provide
additional relevant documents, including copies of
other
United
States customs and border protection
forms, commercial invoices, cargo release results reports and airway
bills or bills of lading.

7.
For an applicant with a principal place of business
located outside
of the
United
States, a declaration, in a form prescribed by the department, from
each of
the applicant's importers into the
United States of any of
the applicant's brands
to be sold or offered for sale in t
his state, that the
importer accepts joint and several liability with the applicant for all
liability imposed in accordance with this
section,
including any fees, costs, attorney fees and penalties imposed under th
is chapter.

8.
Records reflecting the youth-access prevention
policies the applicant has implemented with respect to distributors and
retailers that sell
the applicant's vapor products in th
is state.

9.
Any other information as the department may require for
the purpose of administering this
chapter.

F.
A vapor product manufacturer
may not
cause to be sold or offer for sale at retail in this state or to a consumer in
this state any type or model of vapor product that is not included in the vapor
product list provided with
the vapor product
manufacturer's certification without first filing an amended certification on a
form and
in a manner prescribed by the department.

G.
Each vapor product manufacturer
that
obtains a license under this
section shall submit to the
department:

1.
Within thirty days of any changes to
the vapor
product manufacturer's vapor product
list submitted with the certification required by this section, a notice of the
changes.

2.
Every six months, an attestation that confirms the
information submitted in
the vapor product manufacturer's
license application remains accurate.� The department may request that the
vapor product manufacturer provide additional relevant documents related to the
attestation.

H.
Submission of an application or certification that
contains false information is a violation of title 44, chapter 10, article 7
and is subject to remedies available under title 44, chapter 10, article 7.�
The department may notify appropriate federal and state agencies regarding
false information submitted on an application or certification form.

I.
Any nonresident or foreign vapor produc
t manufacturer that has not registered to do business in th
is state as a foreign corporation or business entity, as a condition
precedent to receiving a vapor product manufacturer license, shall appoint and
continually engage without interruption the services of an agent
in this state to act as agent for the service of process on whom all
process, and any action or proceeding against
the vapor
product manufacturer concerning or arising out of the enforcement of this
section or provisions relating to the sale of the
vapor product manufacturer
's products in this
state, may be served in any manner authorized by law.
Service
on the agent constitute
s legal and valid service of process on the
vapor
product manufacturer.� The
vapor product manufacturer
shall provide the name, address, telephone number and proof of the appointment
and availability of
the agent to the department.
�The
vapor product manufacturer shall
notify the department at least thirty calendar days
before terminating the authority of an agent and provide proof to the
satisfaction of the department
of a new agent
's appointment at least five calendar days
before
terminating the existing agent appointment.�
If an agent
terminates an appointment, the
vapor product manufacturer
shall notify the department of the termination within five calendar days and
include proof to the satisfaction of the department of a new agent
's appointment.

J.
Any nonresident or foreign
vapor
product manufacturer that has not registered to do business in th
is state as a foreign corporation or business entity, as a condition
precedent to receiving a vapor product manufacturer
license
,
shall submit to the department a surety bond or other cash security payable to
this state in the amount of $25,000.� The bond shall be posted by a
corporate surety located within the
United States.� The
bond shall be conditioned on the performance by the
vapor
product manufacturer of the
requirements prescribed by
this section.� A surety on a
vapor product manufacturer's
bond
is liable
for up to the amount
of the bond, and
this state may execute on
the surety bond for the payment of fees and penalties imposed on the
vapor product manufacturer under this section and for the costs of
seizure and destruction of
vapor product sold or offered
for sale in violation of this section.� If
this state
executes on the surety bond,
the department may require
the
vapor product manufacturer to provide an additional
bond
before retaining the
vapor
product manufacturer or
the vapor product manufacturer's
vapor products on the lists on
department's
website. A surety on a bond furnished by a
vapor
product manufacturer as provided in this section shall be released and
discharged from liability to th
is state, accruing on the
bond after
sixty days from the date on which
the surety
provides a written request to be
released and discharged to the department. This
subsection does not relieve, release or discharge the surety from
liability already accrued or
that will accrue before the
sixty-day period
expires.� The department, on receiving
any such request, shall notify the
vapor product manufacturer

that furnished the bond. Unless the
vapor product manufacturer, on or before the sixty-day period
expires, files with the department a new bond, with the surety
approved by and acceptable to the department, the department shall cancel the
vapor product manufacturer
's vapor product
manufacturer license.

K.
a vapor product manufacturer license is nontransferable.�
If a
vapor product manufacturer ceases to do business by
reason of discontinuation, sale or transfer of the
vapor
product manufacturer's business, the
vapor product manufacturer
shall notify the department in writing at the time the discontinuance, sale or
transfer takes effect.

L.
Vapor products offered for sale in violation of this
section, including offering for sale vapor products manufactured by a business
that does not hold a valid vapor product manufacturer license, are subject to
seizure. All vapor products that are seized
as
a violation of this section
are forfeited to
this state and
shall be destroyed consistent
with
section 42
-1124.

M.
A vapor product manufacturer shall have established
sufficient contact with
this state for the exercise of
personal jurisdiction over the
vapor product manufacturer
in any matter or issue arising under this
section or
related to the sale of vapor products.

N.
The department shall maintain and make publicly available
on the department's official website lists of both of the following:

1. All
vapor product manufacturers
that are licensed
pursuant to this section.

2. all
vapor products included in the vapor product lists submitted by vapor product
manufacturers that are licensed pursuant to this section.

O.
From and after January 31, 2027, vapor products
that
are not included on the
a licensed vapor product
manufacturer's vapor product list may not be sold or offered for retail sale to
a consumer in this state, either directly or through an importer, distributor
or retailer or a similar intermediary or intermediaries.

P.
A retailer shall purchase vapor products only from a
distributor or licensed vapor product manufacturer
that
is licensed
pursuant to this section.

Q.
a Distributor shall purchase vapor products only from a
vapor product manufacturer
that is licensed
pursuant to this section.

R.
Any business operating as a vapor product manufacturer
without a vapor product manufacturer license:

1.
For a first violation, shall pay a civil penalty of
$2,500.

2.
For a second violation within a thirty
-six month period, shall pay a civil penalty of $5,000 and is
guilty of a class 2 misdemeanor.

3.
For a third or subsequent violation within a thirty
-six month period, shall pay a civil penalty of $10,000, is guilty of
a class 1 misdemeanor and is ineligible to be licensed as a vapor product
manufacturer for a period of thirty-six months after the date of a third
violation.�

4.
In addition, a business is ineligible to receive or renew
a vapor product manufacturer license for a period of thirty-six months after
the date of a third violation.

S.
A vapor product manufacturer that is licensed under this
section and that violates this section:

1.
For a first violation, shall pay a civil penalty of
$2,500.

2.
For a second violation within a thirty
-six month period, shall pay a civil penalty of $5,000, is
guilty of a class 2 misdemeanor and the vapor product manufacturer license
shall be suspended for
thirty days.

3.
For a third or subsequent violation within a thirty
-six month period, shall pay a civil penalty of $10,000 and is guilty
of a class 1 misdemeanor, and the vapor product manufacturer license shall be
revoked. A vapor product manufacturer license revoked pursuant to this
paragraph is ineligible to receive or renew a vapor product manufacturer
license for a period of thirty-six months after the date of the third
violation.

T. Civil
penalties collected pursuant to subsections R and S of this section shall be
deposited, pursuant to sections 35-146 and 35-147, in the tobacco retail
licensing fund established by section 42-3409.
END_STATUTE

START_STATUTE
42-3408.

Delegation of authority; compliance reporting

A.
The department may
:

1. Delegate
the enforcement and compliance inspections required under this article to any
county or law enforcement agency that accepts this delegation
.

2. Collaborate
with and use the findings of other state agencies to carry out the obligations
of this article and to ensure that the complaints received by other agencies or
a delegated licensing authority are forwarded to the department for timely
investigation and action.

B.
A delegated licensing authority or
any law enforcement agency or other local entity conducting compliance checks
to assess retail tobacco vendor compliance with the legal age for sales of
tobacco products
and vapor products shall report the
compliance check results to the department.
END_STATUTE

START_STATUTE
42-3409.

Tobacco retail licensing fund

The tobacco retail licensing fund is established
consisting of licensing fees and civil penalties collected pursuant to section
42-3407.� The department shall administer the fund.� monies in the fund
are subject to legislative appropriation. Monies in the fund shall be used for
the enforcement of title 36, chapter 6, article 14 and section 42-3407.
END_STATUTE

Sec. 17.
Effective date

This act is effective from and after
November 30, 2026.

Sec. 18.
Severability

If a provision of this act or its
application to any person or circumstance is held invalid, the invalidity does
not affect other provisions or applications of the act that can be given effect
without the invalid provision or application, and to this end the provisions of
this act are severable.