An act amending the act of April 9, 1929 (P.L.343, No.176), known as The Fiscal Code, in cigarette sales and licensing, further providing for definitions and providing for presumed cost of doing business by retailer; providing for tobacco products; and making repeals.

SENATE AMENDED
PRIOR PRINTER'S NOS. 1660, 1950, 2531 PRINTER'S NO. 2675
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1425
Session of
2025
INTRODUCED BY McNEILL, JAMES, BRIGGS, SHUSTERMAN, SANCHEZ,
VENKAT, GIRAL, HILL-EVANS, STEELE, SCHLOSSBERG, KHAN,
FREEMAN, SAMUELSON, HADDOCK, ECKER, KAIL, KLUNK, REICHARD,
SCHWEYER, MULLINS, MARCELL, TWARDZIK, RIGBY, KERWIN,
C. WILLIAMS, GILLEN, CURRY, WEBSTER, RIVERA AND A. BROWN,
MAY 7, 2025
SENATOR PITTMAN, RULES AND EXECUTIVE NOMINATIONS, IN SENATE, RE-
REPORTED AS AMENDED, DECEMBER 8, 2025
AN ACT
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
act relating to tax reform and State taxation by codifying
and enumerating certain subjects of taxation and imposing
taxes thereon; providing procedures for the payment,
collection, administration and enforcement thereof; providing
for tax credits in certain cases; conferring powers and
imposing duties upon the Department of Revenue, certain
employers, fiduciaries, individuals, persons, corporations
and other entities; prescribing crimes, offenses and
penalties," in tobacco products tax, further providing for
definitions, for incidence and rate of tax, for licensing of
wholesalers and for licensing of retailers DEALERS AND
MANUFACTURERS AND FOR LICENSING OF MANUFACTURERS and
providing for electronic nicotine delivery system directory.
AMENDING THE ACT OF APRIL 9, 1929 (P.L.343, NO.176), ENTITLED
"AN ACT RELATING TO THE FINANCES OF THE STATE GOVERNMENT;
PROVIDING FOR CANCER CONTROL, PREVENTION AND RESEARCH, FOR
AMBULATORY SURGICAL CENTER DATA COLLECTION, FOR THE JOINT
UNDERWRITING ASSOCIATION, FOR ENTERTAINMENT BUSINESS
FINANCIAL MANAGEMENT FIRMS, FOR PRIVATE DAM FINANCIAL
ASSURANCE AND FOR REINSTATEMENT OF ITEM VETOES; PROVIDING FOR
THE SETTLEMENT, ASSESSMENT, COLLECTION, AND LIEN OF TAXES,
BONUS, AND ALL OTHER ACCOUNTS DUE THE COMMONWEALTH, THE
COLLECTION AND RECOVERY OF FEES AND OTHER MONEY OR PROPERTY
DUE OR BELONGING TO THE COMMONWEALTH, OR ANY AGENCY THEREOF,
INCLUDING ESCHEATED PROPERTY AND THE PROCEEDS OF ITS SALE,
THE CUSTODY AND DISBURSEMENT OR OTHER DISPOSITION OF FUNDS
AND SECURITIES BELONGING TO OR IN THE POSSESSION OF THE
<--
<--
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
COMMONWEALTH, AND THE SETTLEMENT OF CLAIMS AGAINST THE
COMMONWEALTH, THE RESETTLEMENT OF ACCOUNTS AND APPEALS TO THE
COURTS, REFUNDS OF MONEYS ERRONEOUSLY PAID TO THE
COMMONWEALTH, AUDITING THE ACCOUNTS OF THE COMMONWEALTH AND
ALL AGENCIES THEREOF, OF ALL PUBLIC OFFICERS COLLECTING
MONEYS PAYABLE TO THE COMMONWEALTH, OR ANY AGENCY THEREOF,
AND ALL RECEIPTS OF APPROPRIATIONS FROM THE COMMONWEALTH,
AUTHORIZING THE COMMONWEALTH TO ISSUE TAX ANTICIPATION NOTES
TO DEFRAY CURRENT EXPENSES, IMPLEMENTING THE PROVISIONS OF
SECTION 7(A) OF ARTICLE VIII OF THE CONSTITUTION OF
PENNSYLVANIA AUTHORIZING AND RESTRICTING THE INCURRING OF
CERTAIN DEBT AND IMPOSING PENALTIES; AFFECTING EVERY
DEPARTMENT, BOARD, COMMISSION, AND OFFICER OF THE STATE
GOVERNMENT, EVERY POLITICAL SUBDIVISION OF THE STATE, AND
CERTAIN OFFICERS OF SUCH SUBDIVISIONS, EVERY PERSON,
ASSOCIATION, AND CORPORATION REQUIRED TO PAY, ASSESS, OR
COLLECT TAXES, OR TO MAKE RETURNS OR REPORTS UNDER THE LAWS
IMPOSING TAXES FOR STATE PURPOSES, OR TO PAY LICENSE FEES OR
OTHER MONEYS TO THE COMMONWEALTH, OR ANY AGENCY THEREOF,
EVERY STATE DEPOSITORY AND EVERY DEBTOR OR CREDITOR OF THE
COMMONWEALTH," IN CIGARETTE SALES AND LICENSING, FURTHER
PROVIDING FOR DEFINITIONS AND PROVIDING FOR PRESUMED COST OF
DOING BUSINESS BY RETAILER; PROVIDING FOR TOBACCO PRODUCTS;
AND MAKING REPEALS.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definition of "contraband" in section 1201-A
of the act of March 4, 1971 (P.L.6, No.2), known as the Tax
Reform Code of 1971, is amended and the section is amended by
adding definitions to read:
Section 1201-A. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Brand family." All styles of electronic cigarettes that
contain nicotine, sold under the same trademark and
differentiated from another style by means of additional
modifiers or descriptors. The term includes any brand name alone
or in conjunction with any other word, trademark, logo, symbol,
motto, selling message, recognizable pattern of colors or any
other indicia of product identification identical or similar to
or identifiable with a previously known brand of electronic
20250HB1425PN2675 - 2 -
<--
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
cigarettes that contain nicotine.
* * *
"Contraband." Any tobacco product for which the tax imposed
by this article has not been paid[.] in accordance with this act
and any electronic cigarette that contains nicotine for retail
sale in this Commonwealth , which is either not listed or is
removed from the electronic nicotine delivery system directory
in violation of section 1235-A. The term includes tobacco
products for which property rights no longer exist under this
article and tobacco products sold, offered, distributed or
possessed for sale and tobacco products acquired, held, owned,
possessed, transported, imported or caused to be imported that
the person knows or should know are intended for retail
distribution or retail sale in this Commonwealth in violation of
this act.
"Costs of destruction." The costs incurred from the time of
seizure through to the time of destruction. The term includes,
but is not limited to, costs of seizure, transportation, storage
and destruction, including personnel costs, wages and outside
contractor costs associated with the activities.
* * *
"Electronic cigarette that contains nicotine." An electronic
cigarette labeled, advertised or marketed as containing nicotine
or an electronic cigarette determined by the department or the
Attorney General to contain nicotine. The term includes an
electronic cigarette that bears the same brand name as an
electronic cigarette determined to contain nicotine by the
department or Attorney General.
"FDA." The United States Food and Drug Administration.
"Importer." A person in any state or territory of the United
20250HB1425PN2675 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
States to whom electronic cigarettes that contain nicotine that
are manufactured outside the United States are shipped,
delivered or consigned for resale.
* * *
"Timely filed premarket tobacco product application." An
application under 21 U.S.C. § 387j (relating to application for
review of certain tobacco products) for an electronic cigarette
that contains nicotine derived from tobacco marketed in the
United States as of August 8, 2016, that was submitted to the
FDA on or before September 9, 2020, and was accepted for filing
by the FDA.
"Tobacco noncompliance database." The database of persons,
including manufacturers, importers, distributors, wholesalers
and retailers, that are listed by the department ATTORNEY
GENERAL on its publicly accessible Internet website in
accordance with section 1235-A(t).
* * *
Section 2. Section 1202-A(b) of the act is amended to read:
SECTION 2. SECTIONS 1202-A(B), 1220-A AND 1221-A OF THE ACT
ARE AMENDED TO READ:
Section 1202-A. Incidence and rate of tax.
* * *
(b) Retailer.--A retailer may only purchase tobacco products
from a licensed [dealer. If the tax is not collected by the
seller from the retailer, the tax is imposed on the retailer at
the time of purchase at the same rate as in subsections (a) and
(a.1) based on the retailer's purchase price of the tobacco
products. The retailer shall remit the tax to the department.]
wholesaler.
* * *
20250HB1425PN2675 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Section 3. Section 1222-A(a) of the act is amended by adding
paragraphs and the section is amended by adding a subsection to
read:
Section 1222-A. Licensing of wholesalers.
(a) Requirements.--Applicants for a wholesale license or
renewal of that license shall meet the following requirements:
* * *
(8) The applicant shall have submitted the surety bond
required by subsection (c), accurately represented the size
and cost of its inventory and other information required by
the surety bond and timely provided any requested financial
statement and additional records.
(9) The information provided by the wholesaler in its
application shall not contain false information or material
misrepresentations or omissions.
* * *
(c) Surety bond.--The applicant shall, at the time of
application, file with the department a surety bond payable to
the Commonwealth in an amount fixed by the department of at
least $25,000. The following shall apply:
(1) The required surety bond:
(i) Shall be subject to execution under paragraph
(4).
(ii) Shall be conditioned on the wholesaler's
compliance with the requirements of this act.
(iii) Shall be posted by a surety bond company
located within this Commonwealth and approved by the
department.
(iv) Must state that the wholesaler will faithfully
comply with the provisions of this article during the
20250HB1425PN2675 - 5 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
effective period of the license.
(2) The department may require a wholesaler to furnish a
bond in excess of $25,000, as necessary to ensure the
wholesaler's compliance with this act. The following shall
apply:
(i) For the purpose of determining whether an
existing bond is sufficient, the department may, by
written notice, require a wholesaler to furnish an
inventory by brand and cost, financial statement and
additional records in the form as the department may
prescribe to determine whether additional bonding is
warranted when compared to the risk of unrecouped costs
of destruction of contraband to the Commonwealth.
(ii) Upon failure of a wholesaler to furnish an
inventory by brand and cost, financial statement or
additional requested records within thirty 30 days of
written notice, or upon a determination that the
wholesaler misrepresented the information or the volume
of its product shipped into or within the United States,
the department may deny, suspend or revoke the
wholesaler's license.
(3) A surety on a wholesaler's bond shall be liable up
to the amount of the bond, and the Commonwealth may execute
on the surety bond:
(i) for costs of destruction of the wholesaler's
product to the extent it exceeds the amounts recovered
from the person from whom the product is confiscated or a
surety for the person; and
(ii) to recover civil penalties, costs and fees
assessed against the wholesaler.
20250HB1425PN2675 - 6 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(4) A surety on a bond furnished by a wholesaler as
provided in this section shall be released and discharged
from liability to the Commonwealth accruing on the bond after
expiration of sixty 60 days from the date upon which the
surety shall have lodged with the Attorney General a written
request to be released and discharged. The following shall
apply:
(i) This paragraph shall not operate to relieve,
release or discharge the surety from liability already
accrued or which shall accrue before the expiration of
the 60-day period.
(ii) The Attorney General shall, upon receiving any
such request, notify the wholesaler who furnished the
bond. Unless the wholesaler, on or before the expiration
of the 60-day period, files with the department a new
bond, with corporate surety approved by and acceptable to
the department, the department shall revoke the
wholesaler's license.
(iii) If a new bond is furnished by the wholesaler,
the department shall cancel and surrender the old bond of
the wholesaler as soon as it is satisfied that the new
bond provides adequate security for the wholesaler's
obligations.
Section 4. Section 1223-A of the act is amended to read:
Section 1223-A. Licensing of retailers.
Applicants for a retail license or renewal of that license
shall meet the following requirements:
(1) The premises in which the applicant proposes to
conduct business are adequate to protect the revenues.
(2) The applicant shall not have failed to disclose any
20250HB1425PN2675 - 7 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
material information required by the department.
(3) The applicant shall not have any material false
statement in the application.
(4) The applicant shall not have violated any provision
of this article.
(5) The applicant shall have filed all required State
tax reports and paid any State taxes not subject to a timely
perfected administrative or judicial appeal or subject to a
duly authorized deferred payment plan.
(6) The applicant shall have submitted a surety bond
accurately representing the size and cost of the applicant's
inventory and timely provided any requested financial
statement and additional records.
SECTION 1220-A. LICENSING OF DEALERS AND MANUFACTURERS.
(A) PROHIBITION.--[NO PERSON, UNLESS] UNLESS ALL SALES OF
TOBACCO PRODUCTS ARE EXEMPT FROM PENNSYLVANIA TOBACCO PRODUCTS
TAX, NO PERSON SHALL SELL, TRANSFER OR DELIVER ANY TOBACCO
PRODUCTS IN THIS COMMONWEALTH WITHOUT FIRST OBTAINING THE PROPER
LICENSE PROVIDED FOR IN THIS ARTICLE.
(B) APPLICATION.--AN APPLICANT FOR A DEALER'S OR
MANUFACTURER'S LICENSE SHALL COMPLETE AND FILE AN APPLICATION
WITH THE DEPARTMENT. THE APPLICATION SHALL BE IN THE FORM AND
CONTAIN INFORMATION PRESCRIBED BY THE DEPARTMENT [AND]. THE
APPLICANT SHALL SET FORTH TRUTHFULLY AND ACCURATELY THE
INFORMATION [DESIRED] REQUESTED BY THE DEPARTMENT[.] WHICH IS
RELEVANT TO THE ADMINISTRATION, COLLECTION AND ENFORCEMENT OF
THE TAX. IF THE APPLICATION IS APPROVED, THE DEPARTMENT SHALL
LICENSE THE DEALER OR MANUFACTURER FOR A PERIOD OF ONE YEAR [AND
THE]. THE LICENSE MAY BE RENEWED ANNUALLY THEREAFTER.
(C) DISCRETIONARY DENIAL OF APPLICATIONS.--THE DEPARTMENT
20250HB1425PN2675 - 8 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
MAY DENY AN APPLICATION IF THERE IS A REASONABLE BASIS TO
DETERMINE THE APPLICATION IS FILED BY A PERSON AS SUBTERFUGE FOR
A DIFFERENT PARTY OF INTEREST WHOSE LICENSE HAS PREVIOUSLY BEEN
DENIED, CANCELED OR REVOKED FOR CAUSE OR A VIOLATION UNDER THIS
ARTICLE OR A VIOLATION UNDER ARTICLE XII.
SECTION 1221-A. LICENSING OF MANUFACTURERS.
(A) LICENSE.--ANY MANUFACTURER DOING BUSINESS WITHIN THIS
COMMONWEALTH SHALL FIRST OBTAIN A LICENSE TO SELL TOBACCO
PRODUCTS BY SUBMITTING AN APPLICATION TO THE DEPARTMENT
CONTAINING THE INFORMATION REQUESTED BY THE DEPARTMENT AND
DESIGNATING A PROCESS AGENT. IF A MANUFACTURER DESIGNATES NO
PROCESS AGENT, THE MANUFACTURER SHALL BE DEEMED TO HAVE MADE THE
SECRETARY OF STATE ITS AGENT FOR THE SERVICE OF PROCESS IN THIS
COMMONWEALTH.
(B) REQUIREMENTS.--IN ADDITION TO THE GENERAL RULE
REQUIREMENT, APPLICANTS FOR A MANUFACTURER LICENSE OR RENEWAL OF
A MANUFACTURER LICENSE SHALL MEET THE FOLLOWING REQUIREMENTS:
(1) THE PREMISES ON WHICH THE APPLICANT PROPOSES TO
CONDUCT BUSINESS ARE ADEQUATE TO PROTECT THE REVENUE.
(2) THE APPLICANT IS A PERSON OF REASONABLE FINANCIAL
STABILITY AND REASONABLE BUSINESS EXPERIENCE.
(3) THE APPLICANT, OR ANY SHAREHOLDER CONTROLLING MORE
THAN 10% OF THE STOCK, IF THE APPLICANT IS A CORPORATION OR
ANY OFFICER OR DIRECTOR IF THE APPLICANT IS A CORPORATION,
SHALL NOT HAVE BEEN CONVICTED OF ANY CRIME INVOLVING MORAL
TURPITUDE.
(4) THE APPLICANT SHALL NOT HAVE FAILED TO DISCLOSE ANY
MATERIAL INFORMATION REQUIRED BY THE DEPARTMENT, INCLUDING
INFORMATION THAT THE APPLICANT HAS COMPLIED WITH THIS ARTICLE
BY PROVIDING A SIGNED STATEMENT UNDER PENALTY OF PERJURY.
20250HB1425PN2675 - 9 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(5) THE APPLICANT SHALL NOT HAVE MADE ANY MATERIAL FALSE
STATEMENT IN THE APPLICATION.
(6) THE APPLICANT SHALL NOT HAVE VIOLATED ANY PROVISION
OF THIS ARTICLE.
(7) THE APPLICANT SHALL HAVE FILED ALL REQUIRED STATE
TAX REPORTS AND PAID ANY STATE TAXES NOT SUBJECT TO A TIMELY
PERFECTED ADMINISTRATIVE OR JUDICIAL APPEAL OR SUBJECT TO A
DULY AUTHORIZED DEFERRED PAYMENT PLAN.
(C) MULTIPLE LOCATIONS.--THE MANUFACTURER LICENSE SHALL BE
VALID FOR ONE SPECIFIC LOCATION ONLY. MANUFACTURERS WITH MORE
THAN ONE LOCATION SHALL OBTAIN A LICENSE FOR EACH LOCATION.
Section 5 3. The act is amended by adding a section to read:
Section 1235-A. Electronic nicotine delivery system directory .
(a) Intent.--It is the intent of the General Assembly under
this section to establish effective tools for use by the
department and the Attorney General to prevent and deter the
sale of electronic cigarettes that contain nicotine in the
Commonwealth which have not been certified under subsection (b).
To accomplish this, thi s section requires annual manufacturer
and product certifications and a public directory listing all
certified manufacturers and electronic cigarettes that contain
nicotine. In addition , this section authorizes the department
and the Attorney General, and their agents, to perform regular
inspections of businesses who sell or store electronic
cigarettes that contain nicotine, inspect the books and records
of the persons and impose penalties for noncompliance . This
section requires the Attorney General to annually report to the
General Assembly on the effectiveness of the enforcement
activities taken under thi s section , to ide ntify all resources
used in the enforcement activities and their costs and to set
20250HB1425PN2675 - 10 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
the level consistent with any enforcement activities to the
amount budgeted by the General Assembly for the enforcement
activities.
(b) Certification.--
(1) Within 60 days of the effective date of this
subsection and annually thereafter, every manufacturer of
electronic cigarettes that contain nicotine that are sold for
retail sale in this Commonwealth, whether directly or through
an importer, wholesaler, distributor, retailer or similar
intermediary or intermediaries, shall execute and deliver to
the Attorney General a certification, under penalty of
perjury on a form and in the manner prescribed by the
Attorney General, that the manufacturer is compliant with
this section , agrees to continue to comply with this section ,
has posted the surety bond required by sections 1222-A and
1223-A SUBSECTION (K) a nd that, for each electronic cigarette
that contains nicotine:
(i) the manufacturer has received a marketing
granted order for the electronic cigarette that contains
nicotine from the FDA in accordance with 21 U.S.C. § 387j
(relating to application for review of certain tobacco
products);
(ii) the manufacturer has submitted a timely filed
premarket tobacco product application for the electronic
cigarette that contains nicotine to the FDA under 21
U.S.C. § 387j and the application either remains under
review by the FDA or has received a denial order that has
been and remains stayed by the FDA or court order,
rescinded by the FDA, or vacated by a court; or
(iii) the manufacturer was not required to submit an
20250HB1425PN2675 - 11 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
additional premarket tobacco product application for the
electronic cigarette that contains nicotine because the
electronic cigarette that contains nicotine reflects
changes to the name, brand style or packaging of an
electronic cigarette that contains nicotine that is
covered under subparagraph (i) or (ii).
(2) To the extent that 21 U.S.C. § 387j is amended or
the Federal Government issues subsequent regulations,
official guidance or a formal policy statement changing
compliance requirements or standards for an electronic
cigarette that contains nicotine to become federally
compliant, each manufacturer of an electronic cigarette that
contains nicotine that is sold for retail sale or to a
consumer in this Commonwealth shall submit documentation to
the Attorney General substantiating compliance with the new
Federal requirements or standards within 30 days of the date
compliance is mandated. Failure to substantiate compliance
with a new Federal mandate shall be grounds for removal of
the manufacturer and its electronic cigarettes that contain
nicotine from the directory established under this section.
(c) Declaration.--The form prescribed by the Attorney
General under subsection (b) must require each manufacturer to:
(1) Specify the name under which the manufacturer
transacts or intends to transact business, the address of the
location of the manufacturer's principal place of business,
the manufacturer's email address and the brand name,
category, such as e-liquid, power unit, device, e-liquid
cartridge, e-liquid pod or disposable, product name and
flavor of each electronic cigarette that contains nicotine
that is sold in this Commonwealth.
20250HB1425PN2675 - 12 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(2) For electronic cigarettes that contain nicotine
manufactured outside of the United States, provide a complete
list of its importers into the United States who sell the
products into the Commonwealth and the brand families sold by
the importers, including the importer's name, address,
contact name, phone number and email address at which the
importer can be reached, and a declaration signed by each
importer on a form prescribed by the Attorney General. The
declaration shall state the following:
(i) The importer accepts joint and several liability
with the manufacturer for payment of civil penalties,
costs, expenses and attorney fees related to this
section .
(ii) The importer consents to personal jurisdiction
in this Commonwealth for the purposes of claims by the
Commonwealth for payment of civil penalties, costs,
expenses and attorney fees.
(iii) The importer has appointed an agent for
service of process in this Commonwealth according to the
same requirements under this section.
(iv) The importer holds a valid permit under 26
U.S.C. § 5713 (relating to permit).
(v) The importer agrees to provide any information
required under this section.
(d) Content.--Each annual certification form required by
subsections (b) and (c) shall be accompanied by:
(1) A copy of:
(i) the marketing granted order issued by the FDA
under 21 U.S.C. § 387j;
(ii) the acceptance letter issued by the FDA under
20250HB1425PN2675 - 13 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
21 U.S.C. § 387j for a timely filed premarket tobacco
product application; or
(iii) a document issued by the FDA or by a court
confirming that the premarket tobacco product application
has received a denial order that has been and remains
stayed by the FDA or court order, rescinded by the FDA or
vacated by a court.
(2) A payment of $2,000 for each brand family of
electronic cigarette that contains nicotine, plus $200 for
each brand style of the product, the first time a
manufacturer submits a certification form for that brand
family of electronic cigarette that contains nicotine and a
payment of $1,000 annually thereafter for each brand family
of electronic cigarette that contains nicotine, plus $100 for
each brand style of the product.
(e) Confidentiality.--Except to the extent that the FDA or
the manufacturer has made the information public or a third
party disclosed the information and the manufacturer has not
taken legal action to prevent further disclosure, the
information submitted by the manufacturer under subsection (d)
(1) and (h) shall be considered confidential commercial or
financial information for purposes of the act of February 14,
2008 (P.L.6, No.3), known as the Right-to-Know Law. The
manufacturer may redact confidential commercial or financial
information provided under subsection (d)(1) and (h). The
Attorney General or department shall not disclose the
information except as required or authorized by law.
(f) Notification.--A manufacturer required to submit a
certification form under subsections (b) and (c) shall notify
the Attorney General within 30 days of any material change to
20250HB1425PN2675 - 14 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
the certification form, including the issuance or denial of a
marketing order by the FDA under 21 U.S.C. § 387j, or any other
order or action by the FDA or any court that affects the ability
of the electronic cigarette that contains nicotine to be
introduced or delivered into interstate commerce for commercial
distribution in the United States.
(g) Directory.-- Within 120 days from the effective date of
this subsection , the Attorney General shall maintain and make
available on the Attorney General's publicly accessible Internet
website a directory that lists all manufacturers of electronic
cigarettes that contain nicotine, brand names, categories, such
as e-liquid, e-liquid cartridge, e-liquid pod or disposable,
product names and flavors for which certification forms have
been submitted and approved by the Attorney General and shall
update the directory at least monthly to ensure accuracy. The
Attorney General shall establish a process to provide licensed
retailers, distributors and wholesalers notice of the initial
publication of the directory and changes made to the directory
in the prior month.
(h) Compliance.--The department and the Attorney General may
require a manufacturer to submit additional information as
necessary to determine compliance with this section, including,
but not limited to, samples of the packaging or labeling of each
brand family and style, each stock keeping unit number for each
brand style included in the certification for listing on the
directory, copies of invoices and other sales records for each
brand family of electronic cigarettes that contain nicotine sold
in this Commonwealth, and any documents related to the
manufacturer's premarket tobacco application, to determine
whether a manufacturer is in compliance with this section . T he
20250HB1425PN2675 - 15 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Attorney General may require manufacturers to provide a sworn
affidavit as to the authenticity of any documents submitted by
the manufacturer in support of its certification or in response
to a request by the Attorney General.
(i) Nondisclosure.--A manufacturer or the manufacturer's
electronic cigarette that contains nicotine may not be included
or retained in the directory if the Attorney General determines
that any of the following apply:
(1) The manufacturer failed to provide a complete and
accurate certification as required by subsection (b).
(2) The manufacturer submitted a certification that does
not comply with the requirements of subsections (b), (c) and
(d)(1).
(3) The manufacturer failed to include with its
certification the payment required by subsection (d)(2).
(4) If the manufacturer is located outside of the United
States, the manufacturer failed to provide the information
and declaration required by subsection (c)(2).
(5) The manufacturer failed to provide the surety bond
required by subsect ion (k) or misrepresented any of the
information required by the surety bond.
(6) The information provided by the manufacturer in its
certification is determined by the Attorney General to
contain false information or material misrepresentations or
omissions.
(j) Denial.--The Attorney General may deny a manufacturer's
certification if any of the following apply:
(1) The manufacturer sold products in this Commonwealth
required to be certified under this section during a period
when either the manufacturer or the brand family had not been
20250HB1425PN2675 - 16 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
certified and listed on the directory.
(2) The manufacturer was denied listing or involuntarily
removed from another state's electronic cigarette directory
and the agency decision is final and no longer subject to
appeal, if the other state's directory has requirements
similar to those of the directory under this section.
(3) The manufacturer failed to provide any information
requested under subsection (h).
(4) The information provided by the manufacturer in its
certification or under subsection (h) is determined to
contain false information or material misrepresentations or
omissions.
(5) The manufacturer failed to submit complete and
accurate reports as required by the Prevent All Cigarette
Trafficking Act of 2009 (Pub. L. No. 111-154).
(6) The manufacturer has been convicted of violating 18
Pa.C.S. § 6305 (relating to sale of tobacco products) .
(7) The manufacturer failed to adhere to the Federal
nicotine packaging standard required by 15 U.S.C. § 1472a
(relating to special packaging for liquid nicotine
containers). For purposes of this paragraph, all electronic
cigarettes constitute "liquid nicotine containers" under the
Federal nicotine packaging standard.
(k) Surety bond.--
(1) Manufacturers seeking to certify to sell electronic
cigarettes that contain nicotine shall at the time of
certification to the Attorney General submit a surety bond
payable to the Commonwealth in an amount fixed by the
Attorney General of at least $50,000.
(2) The required surety bond:
20250HB1425PN2675 - 17 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(i) Shall be subject to execution under paragraph
(4).
(ii) Shall be conditioned on the manufacturer's
compliance with the requirements of this section .
(iii) Shall be posted by a surety bond company
located within this Commonwealth and approved by the
Attorney General.
(iv) Must state that the manufacturer will
faithfully comply with the provisions of this article
during the effective period of the certification.
(3) The Attorney General may require a manufacturer to
furnish a bond in excess of $50,000, as necessary to ensure
the manufacturer's compliance with this section . For the
purpose of determining whether an existing bond is
sufficient, the Attorney General may, by written notice,
require a manufacturer to furnish an inventory by brand and
cost, financial statement and additional records in the form
as the department ATTORNEY GENERAL may prescribe to determine
whether additional bonding is warranted when compared to the
risk of unrecouped costs of destruction of contraband to the
Commonwealth. Upon failure of a manufacturer to furnish an
inventory by brand and cost, financial statement or
additional requested records within 30 days of written
notice, or upon a determination that the manufacturer
misrepresented the information or the volume of its product
shipped into or within the United States, the Attorney
General may deny listing or remove the manufacturer from the
directory.
(4) A surety on a manufacturer's bond shall be liable up
to the amount of the bond, and the Commonwealth may execute
20250HB1425PN2675 - 18 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
on the surety bond:
(i) for costs of destruction of the manufacturer's
product to the extent it exceeds the amounts recovered
from the person from whom such product is confiscated or
a surety for the person; and
(ii) to recover civil penalties, costs and fees
assessed against the wholesaler MANUFACTURER under this
section .
(5) A surety on a bond furnished by a manufacturer as
provided in this section shall be released and discharged
from liability to the Commonwealth accruing on the bond after
expiration of 60 days from the date upon which the surety
shall have lodged with the Attorney General a written request
to be released and discharged. This paragraph shall not
operate to relieve, release or discharge the surety from
liability already accrued or which shall accrue before the
expiration of the 60-day period. The Attorney General shall,
upon receiving a request, notify the manufacturer who
furnished the bond. Unless the manufacturer, on or before the
expiration of the 60-day period, files with the department
ATTORNEY GENERAL a new bond, with corporate surety approved
by and acceptable to the Attorney General, the Attorney
General shall deny or remove the listing of the manufacturer.
If a new bond is furnished by a manufacturer, the Attorney
General shall cancel and surrender the old bond of the
manufacturer as soon as the bond is satisfied the new bond
provides adequate security for the manufacturer's
obligations.
(l) Removal from directory.--The Attorney General shall
provide manufacturers notice and an opportunity to cure
20250HB1425PN2675 - 19 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
deficiencies before denying a certification or removing
manufacturers or products from the directory. The following
shall apply:
(1) The Attorney General may not remove the manufacturer
or its products from the directory until at least 30 business
days after the manufacturer has been given notice of an
intended action stating the reasons for removal. Notice shall
be sufficient and deemed immediately received by a
manufacturer if the notice is sent either electronically or
by facsimile to an email address or facsimile number provided
by the manufacturer in its most recent certification filed
under subsections (a), (b), (c) and (d).
(2) The manufacturer of electronic cigarettes that
contain nicotine shall have 30 business days from the date of
service of the notice of the Attorney General's intended
action to cure the deficiencies or otherwise establish that
the manufacturer or its products should be included in the
directory.
(m) Returns.--If a product is removed from the directory,
each retailer, distributor, wholesaler and importer shall have
30 business days from the day such product is removed from the
directory to sell the product or remove the product from its
inventory and return the product to the manufacturer for
disposal. Manufacturers shall accept returns of and provide
refunds for such products and shall dispose of such products in
compliance with all Federal, State and local environmental laws
and regulations. After 30 business days following removal from
the directory, the product identified in the notice of removal
is contraband, may not be purchased or sold for retail sale in
this Commonwealth and is subject to seizure, forfeiture and
20250HB1425PN2675 - 20 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
destruction. The cost of the seizure, forfeiture and destruction
shall be borne by the person from whom the product is
confiscated, except that no product may be seized from a
consumer who has made a bona fide purchase of the product. The
department and the Attorney General may store and dispose of the
seized products as appropriate, in accordance with Federal,
State and local laws pertaining to storage and disposal of such
products.
(n) Prohibition.--Except as provided in paragraphs (1) and
(2), within 120 days of the effective date of this subsection or
on the date that the Attorney General first makes the directory
available for public inspection on its official website,
whichever is later, electronic cigarettes that contain nicotine
not included in the directory under subsection (g) may not be
sold for retail sale in this Commonwealth either directly or
through an importer, distributor, wholesaler, retailer or
similar intermediary or intermediaries. The following shall
apply:
(1) Each retailer shall have 120 days from the date that
the Attorney General first makes the directory available for
inspection on its publicly accessible Internet website to
sell products that were in its inventory and not included in
the directory or to remove those products from its inventory.
(2) Each distributor or wholesaler shall have 120 days
from the date that the Attorney General first makes the
directory available for inspection on its publicly accessible
Internet website to remove the products intended for retail
sale in this Commonwealth from its inventory.
(3) After 120 days following publication of the
directory, electronic cigarettes that contain nicotine not
20250HB1425PN2675 - 21 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
listed in the directory and intended for retail sale in the
Commonwealth are contraband and are subject to seizure,
forfeiture and destruction, and may not be purchased or sold
for retail sale in this Commonwealth. The cost of the
seizure, forfeiture and destruction shall be borne by the
person from whom the products are confiscated, except that no
products may be seized from a consumer who has made a bona
fide purchase of such product. The DEPARTMENT AND THE
Attorney General may store and dispose of the seized products
as appropriate, in accordance with Federal, State and local
laws pertaining to storage and disposal of the products.
(4) Each distributor or wholesaler possessing electronic
cigarettes that contain nicotine not listed in the directory
and held solely for sale in a jurisdiction outside of this
Commonwealth shall physically separate the electronic
cigarettes from any electronic cigarettes held for sale in
this Commonwealth. A distributor's or wholesaler's ordering
system shall have measures designed to prevent sale within
this Commonwealth of electronic cigarettes that contain
nicotine not listed in the directory.
(o) Penalties.--The following penalties shall apply to
violations of this section:
(1) A retailer, distributor, wholesaler or importer who
sells or offers for sale an electronic cigarette that
contains nicotine for retail sale in this Commonwealth that
is not included in the directory shall be subject to:
(i) A civil penalty of $500 for each product offered
for sale in violation of this section until the offending
product is removed from the market or until the offending
product is properly listed on the directory. The Attorney
20250HB1425PN2675 - 22 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
General, an agent or the department may negotiate the
civil penalty for a first offense to an amount sufficient
to cover the costs of seizure, storage and disposal
DESTRUCTION of contraband electronic cigarettes that
contain nicotine, provided that the retailer demonstrates
compliance with removal or proper listing within 30
business days of the violation notice. Nothing in this
section shall limit the Attorney General or department
from seeking the full penalty due, absent an agreement
with the violator stating otherwise.
(ii) For a second violation within a 12-month
period, a civil penalty of at least $750 but not more
than $1,000 per day per product, and the license of the
licensee shall be suspended for at least 14 days.
(iii) For a third violation within a 12-month
period, a civil penalty of at least $1,000 but not more
than $1,500 per day per product, and the license of the
licensee shall be revoked.
(2) A manufacturer whose electronic cigarettes that
contain nicotine are not listed in the directory and are sold
for retail sale in this Commonwealth, whether directly or
through an importer, distributor, wholesaler, retailer or
similar intermediary or intermediaries, shall be subject to a
civil penalty of $1,000 for each product offered for sale in
violation of this section until the offending product is
removed from the market or until the offending product is
properly listed on the directory. Any manufacturer that
falsely represents any information required by subsection
(b), (c) or (g) commits a misdemeanor of the third degree for
each false representation.
20250HB1425PN2675 - 23 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(3) A person, including any manufacturer, importer,
wholesaler, distributor or retailer, who sells or offers to
sell an electronic cigarette that contains nicotine to an
importer or dealer listed in the tobacco noncompliance
database shall be subject to a civil penalty of $500 for each
product sold to or offered to be sold to the person. A
consumer who has made a bona fide purchase of the product
shall not be subject to the penalties in this section.
(4) A person, including any manufacturer, importer,
wholesaler, distributor or retailer, who purchases for retail
sale in this Commonwealth an electronic cigarette that
contains nicotine from a person listed in the tobacco
noncompliance database shall be subject to a civil penalty of
$500 for each product purchased. A consumer who has made a
bona fide purchase of such product shall not be subject to
the penalties in this section.
(5) A person, including any manufacturer, importer,
wholesaler, distributor or retailer that violates both
paragraphs (3) and (4) related to the same product shall be
subject to the penalties provided under this section o nly
once and not compounded or consecutively.
(6) A violation of this section shall be deemed to be an
unfair or deceptive act or practice in violation of the act
of December 17, 1968 (P.L.1224, No.387), known as the Unfair
Trade Practices and Consumer Protection Law.
(7) For purposes of this subsection, the term "each
product" shall mean each individual electronic cigarette that
contains nicotine offered for sale, notwithstanding whether
the electronic cigarette that contains nicotine bears the
same stock keeping unit number.
20250HB1425PN2675 - 24 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(8) A wholesaler licensee who, after stating that a
product not listed in the directory was intended to be sold
outside of this Commonwealth, is found to have sold the
unlisted product to a retailer in this Commonwealth shall be
subject to additional penalty of $500 per each unlisted
product sold to the retailer. Paragraph (5) shall not be
construed to apply to this paragraph.
(9) In an action to enforce this section , the
Commonwealth shall be entitled to recover costs, including
the costs of investigation, expert witness fees and
reasonable attorney fees.
(10) Contraband identified under this article shall be
destroyed by the department OR THE ATTORNEY GENERAL . The
following apply to the cost of destruction:
(i) Costs associated with the destruction of
contraband shall be borne by the person from which the
contraband is confiscated.
(ii) If there is no bond for the department to draw
on, or if the bond amount is insufficient to cover the
costs associated with the destruction of the identified
contraband, the costs shall be assessed against the
person from which the contraband is confiscated. Costs
assessed under this subparagraph shall be added to the
amount of the tax liability administered by the
department as a cost of collection and may be collected
in any way authorized for collection of the underlying
tax.
(p) Tobacco Products Administration Cash Fund.--All costs,
including costs of investigation and costs of destruction,
certification fees, product testing costs, expert witness fees,
20250HB1425PN2675 - 25 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
attorney fees, civil penalties and amounts recovered on surety
bonds collected by the department and the Attorney General under
this section shall be remitted to the State Treasurer for credit
to the Tobacco Products Administration Cash Fund and used for
administration and enforcement of this section. ALL AMOUNTS
RECEIVED OR RECOVERED BY THE DEPARTMENT OR THE ATTORNEY GENERAL
UNDER THIS SECTION, INCLUDING, BUT NOT LIMITED TO, COSTS OF
INVESTIGATION, COSTS OF DESTRUCTION, CERTIFICATION FEES, PRODUCT
TESTING COSTS, EXPERT WITNESS FEES, ATTORNEY FEES, CIVIL
PENALTIES AND AMOUNTS RECOVERED ON SURETY BONDS, SHALL BE
REMITTED TO THE STATE TREASURER FOR CREDIT TO THE TOBACCO
PRODUCTS ADMINISTRATION CASH FUND AND USED FOR ADMINISTRATION
AND ENFORCEMENT OF THIS SECTION.
(q) Enforcement.--To enforce the provisions of this section,
the department or the Attorney General, or their designees,
including any Commonwealth or local enforcement officer, may
examine the books, papers, invoices and other records of any
person in possession, control or occupancy of any premises in
the Commonwealth where electronic cigarettes that contain
nicotine are placed, stored, sold or offered for sale, including
the stock of electronic cigarettes that contain nicotine on the
premises. Each person in the possession, control or occupancy of
any premises where electronic cigarettes that contain nicotine
are placed, sold or offered for sale shall give the department
or the Attorney General, or their designees, including any
Commonwealth or local enforcement officer, the means, facilities
and opportunity for the examinations authorized by this section.
A person that willfully refuses t o cooperate with or permit an
examination as provided under this section shall be subject to
the criminal penalties, fines and costs provided under section
20250HB1425PN2675 - 26 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
1214-A .
(r) Violations.--A person who violates this section shall be
subject to the criminal penalties, fines and costs otherwise
provided by this article. The Commonwealth may seek injunctive
relief or other order to prevent a threatened or actual
violation of, or to ensure compliance by, a person with this
section.
(s) Compliance.--Each retailer, distributor, wholesaler,
importer and any similar intermediary that sells or distributes
electronic cigarettes that contain nicotine in this Commonwealth
shall be subject to unannounced compliance checks. The
department and the Attorney General shall jointly publish the
results of all compliance checks ON A PUBLICLY ACCESSIBLE
INTERNET WEBSITE at least annually and shall make the results
available to the public on request.
(t) Database.--The Attorney General shall maintain , provide
via electronic mail to each licensed wholesaler that has
provided the Attorney General with a current and valid
electronic mail address and publish on its publicly accessible
Internet website a tobacco noncompliance database listing every
person, including any manufacturer, importer, wholesaler,
distributor or retailer that has three or more violations under
this section within the preceding 12 months. The person shall
remain listed on the tobacco noncompliance database through the
end of the 12th full calendar month after the person's most
recent violation under this section.
(u) Agent for service of process.--Any nonresident
manufacturer of electronic cigarettes that contain nicotine
shall, as a condition precedent to being included in the
directory created in this section, appoint and continually
20250HB1425PN2675 - 27 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
engage without interruption the services of an agent in the
Commonwealth to act as agent for the service of process on whom
all process, and any action or proceeding against it concerning
or arising out of the enforcement of this section, may be served
in any manner authorized by law. Service by certified mail on
the agent shall constitute legal and valid service of process on
the manufacturer. The manufacturer shall provide the name,
address, telephone number, email address and proof of the
appointment and availability of such agent to the department and
Attorney General. The following shall apply:
(1) The manufacturer shall provide notice to the
department and Attorney General 30 calendar days prior to
termination of the authority of an agent and shall further
provide proof, as required by the department and Attorney
General, of the appointment of a new agent no less than five
calendar days prior to the termination of an existing agent
appointment. If an agent terminates an agency appointment,
the manufacturer shall notify the department and Attorney
General of the termination within five calendar days and
shall include proof, as required by the department and
Attorney General, of the appointment of a new agent.
(2) Any manufacturer whose electronic cigarettes that
contain nicotine are sold in this Commonwealth without the
appointment of an agent as required by this section shall be
deemed to have appointed the Secretary of State as its agent
for service of process. The appointment of the Secretary of
State under this subsection shall not satisfy the condition
precedent required to be included or retained in the
directory.
(v) Foreign importers.--In the case of a manufacturer
20250HB1425PN2675 - 28 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
located outside of the United States, each importer into the
United States of the manufacturer's brand families that are sold
in this Commonwealth shall bear joint and several liability with
the manufacturer for payment of all civil penalties, fees, costs
and attorney fees due under this section .
(w) Determination.--A determination by Attorney General to
not include or to remove from the directory a manufacturer or a
product shall be subject to review by the filing of a petition
for review with Commonwealth Court within 21 days of the
determination. No party other than the manufacturer may
challenge a determination by the department or Attorney General.
(x) Resale.--No retailer shall purchase electronic
cigarettes that contain nicotine for resale except from a
licensed wholesaler operating with a valid license issued in
accordance with section 1222-A.
(y) Regulations.--The department or the Attorney General may
promulgate rules necessary to effectuate the purposes of this
section.
(z) Report.--Beginning July 1 after the effective date of
this subsection and annually thereafter, the Attorney General
shall provide a report to the General Assembly regarding the
status of the directory, manufacturers and products included in
the directory, revenue and expenditures related to
administration of this section and enforcement activities
undertaken in accordance with this section.
(aa) Publication.--The department and the Attorney General
shall share documents and information obtained pursuant to this
section with other Federal, State and local agencies as
necessary to enforce this section, similar statutes of other
states or localities, and other tobacco-related laws and
20250HB1425PN2675 - 29 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
regulations.
Section 6 4. This act shall take effect in 60 days.
SECTION 1. THE DEFINITION OF "COST OF THE RETAILER" IN
SECTION 202-A OF THE ACT OF APRIL 9, 1929 (P.L.343, NO.176),
KNOWN AS THE FISCAL CODE, IS AMENDED TO READ:
SECTION 202-A. DEFINITIONS.--AS USED IN THIS ARTICLE--
* * *
"COST OF THE RETAILER" SHALL MEAN THE BASIC COST OF
CIGARETTES TO THE RETAILER PLUS THE COST OF DOING BUSINESS BY
THE RETAILER IN EXCESS OF THE BASIC COST OF CIGARETTES,
EXPRESSED AS A PERCENTAGE AND APPLIED TO THE BASIC COST OF
CIGARETTES. IN THE ABSENCE OF FILING OF SATISFACTORY PROOF OF A
LESSER OR HIGHER COST OF DOING BUSINESS BY THE RETAILER MAKING
THE SALE, THE COST OF DOING BUSINESS BY THE RETAILER SHALL BE
PRESUMED TO BE [SEVEN] THE PER CENTUM AS PROVIDED IN SECTION
234-A OF THE BASIC COST OF CIGARETTES TO THE RETAILER. WHEN A
RETAILER ESTABLISHES A LESSER COST OF DOING BUSINESS THAN THE
PRESUMPTIVE [SEVEN] PER CENTUM COST OF DOING BUSINESS AS
PROVIDED IN SECTION 234-A, SUCH LESSER COST OF DOING BUSINESS
MAY BE USED TO COMPUTE THE COST OF THE RETAILER FOR A PERIOD OF
TIME NO GREATER THAN TWELVE MONTHS, AT THE END OF WHICH TIME THE
COST TO THE RETAILER SHALL BE COMPUTED USING THE PRESUMPTIVE
[SEVEN] PER CENTUM COST OF DOING BUSINESS AS PROVIDED IN SECTION
234-A, UNLESS THE RETAILER AGAIN ESTABLISHES A LESSER COST OF
DOING BUSINESS. ANY FRACTIONAL PART OF A CENT IN SUCH COST PER
CARTON SHALL BE ROUNDED OFF TO THE NEXT HIGHER CENT. IN THE CASE
OF ANY PERSON WHO PURCHASES CIGARETTES FOR SALE AT RETAIL FROM
ANY MANUFACTURER OF CIGARETTES WITHOUT RESORT TO A WHOLESALER AS
SUCH, SUCH PERSON SHALL BE DEEMED, FOR THE PURPOSES OF THIS
ARTICLE, TO BE ENGAGED IN THE SALE OF CIGARETTES AS A STAMPING
20250HB1425PN2675 - 30 -
<--
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
AGENT, WHOLESALER AND RETAILER AND AS SUCH SHALL BE SUBJECT TO
ALL MARK-UP PROVISIONS OF THIS ARTICLE IN THE ORDER NAMED.
* * *
SECTION 2. THE ACT IS AMENDED BY ADDING A SECTION TO READ:
SECTION 234-A. PRESUMED COST OF DOING BUSINESS BY
RETAILER.--THE PRESUMED COST OF DOING BUSINESS BY A RETAILER
MAKING THE SALE SHALL BE THE FOLLOWING PER CENTUM:
(1) EXCEPT AS PROVIDED UNDER PARAGRAPHS (2) AND (3), SEVEN
PER CENTUM.
(2) BEGINNING 60 DAYS AFTER THE EFFECTIVE DATE OF THIS
SECTION OR MARCH 1, 2026, WHICHEVER IS LATER, EIGHT AND ONE-HALF
PER CENTUM.
(3) BEGINNING ONE YEAR AFTER THE IMPLEMENTATION OF THE RATE
UNDER PARAGRAPH (2), NINE AND ONE-HALF PER CENTUM.
SECTION 3. THE ACT IS AMENDED BY ADDING AN ARTICLE TO READ:
ARTICLE II-I
TOBACCO PRODUCTS
SECTION 201-I. SCOPE OF ARTICLE.
THIS ARTICLE RELATES TO TOBACCO PRODUCTS.
SECTION 202-I. DEFINITIONS.
THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ARTICLE
SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
CONTEXT CLEARLY INDICATES OTHERWISE:
"BRAND FAMILY." ALL STYLES OF ELECTRONIC CIGARETTES THAT
CONTAIN NICOTINE, SOLD UNDER THE SAME TRADEMARK AND
DIFFERENTIATED FROM ANOTHER STYLE BY MEANS OF ADDITIONAL
MODIFIERS OR DESCRIPTORS. THE TERM INCLUDES ANY BRAND NAME ALONE
OR IN CONJUNCTION WITH ANY OTHER WORD, TRADEMARK, LOGO, SYMBOL,
MOTTO, SELLING MESSAGE, RECOGNIZABLE PATTERN OF COLORS OR ANY
OTHER INDICIA OF PRODUCT IDENTIFICATION IDENTICAL OR SIMILAR TO
20250HB1425PN2675 - 31 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
OR IDENTIFIABLE WITH A PREVIOUSLY KNOWN BRAND OF ELECTRONIC
CIGARETTES THAT CONTAIN NICOTINE.
"CONTRABAND." ANY TOBACCO PRODUCT FOR WHICH THE TAX IMPOSED
BY ARTICLE XII-A OF THE TAX REFORM CODE OF 1971 HAS NOT BEEN
PAID IN ACCORDANCE WITH THE TAX REFORM CODE OF 1971 AND ANY
ELECTRONIC CIGARETTE THAT CONTAINS NICOTINE FOR RETAIL SALE IN
THIS COMMONWEALTH, WHICH IS EITHER NOT LISTED OR IS REMOVED FROM
THE ELECTRONIC NICOTINE DELIVERY SYSTEM DIRECTORY IN VIOLATION
OF SECTION 206-I. THE TERM INCLUDES TOBACCO PRODUCTS FOR WHICH
PROPERTY RIGHTS NO LONGER EXIST UNDER THIS ARTICLE AND TOBACCO
PRODUCTS SOLD, OFFERED, DISTRIBUTED OR POSSESSED FOR SALE AND
TOBACCO PRODUCTS ACQUIRED, HELD, OWNED, POSSESSED, TRANSPORTED,
IMPORTED OR CAUSED TO BE IMPORTED THAT THE PERSON KNOWS OR
SHOULD KNOW ARE INTENDED FOR RETAIL DISTRIBUTION OR RETAIL SALE
IN THIS COMMONWEALTH IN VIOLATION OF THE TAX REFORM CODE OF
1971.
"COSTS OF DESTRUCTION." THE COSTS INCURRED FROM THE TIME OF
SEIZURE THROUGH TO THE TIME OF DESTRUCTION. THE TERM INCLUDES,
BUT IS NOT LIMITED TO, COSTS OF SEIZURE, TRANSPORTATION, STORAGE
AND DESTRUCTION, INCLUDING PERSONNEL COSTS, WAGES AND OUTSIDE
CONTRACTOR COSTS ASSOCIATED WITH THE ACTIVITIES.
"DEPARTMENT." THE DEPARTMENT OF REVENUE OF THE COMMONWEALTH.
"ELECTRONIC CIGARETTE THAT CONTAINS NICOTINE." AN ELECTRONIC
CIGARETTE LABELED, ADVERTISED OR MARKETED AS CONTAINING NICOTINE
OR AN ELECTRONIC CIGARETTE DETERMINED BY THE DEPARTMENT OR THE
ATTORNEY GENERAL TO CONTAIN NICOTINE. THE TERM INCLUDES AN
ELECTRONIC CIGARETTE THAT BEARS THE SAME BRAND NAME AS AN
ELECTRONIC CIGARETTE DETERMINED TO CONTAIN NICOTINE BY THE
DEPARTMENT OR ATTORNEY GENERAL.
"FDA." THE UNITED STATES FOOD AND DRUG ADMINISTRATION.
20250HB1425PN2675 - 32 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
"IMPORTER." A PERSON IN ANY STATE OR TERRITORY OF THE UNITED
STATES TO WHOM ELECTRONIC CIGARETTES THAT CONTAIN NICOTINE THAT
ARE MANUFACTURED OUTSIDE THE UNITED STATES ARE SHIPPED,
DELIVERED OR CONSIGNED FOR RESALE.
"TAX REFORM CODE OF 1971." THE ACT OF MARCH 4, 1971 (P.L.6,
NO.2), KNOWN AS THE TAX REFORM CODE OF 1971.
"TIMELY FILED PREMARKET TOBACCO PRODUCT APPLICATION." AN
APPLICATION UNDER 21 U.S.C. § 387J (RELATING TO APPLICATION FOR
REVIEW OF CERTAIN TOBACCO PRODUCTS) FOR AN ELECTRONIC CIGARETTE
THAT CONTAINS NICOTINE DERIVED FROM TOBACCO MARKETED IN THE
UNITED STATES AS OF AUGUST 8, 2016, THAT WAS SUBMITTED TO THE
FDA ON OR BEFORE SEPTEMBER 9, 2020, AND WAS ACCEPTED FOR FILING
BY THE FDA.
"TOBACCO NONCOMPLIANCE DATABASE." THE DATABASE OF PERSONS,
INCLUDING MANUFACTURERS, IMPORTERS, WHOLESALERS AND RETAILERS,
THAT ARE LISTED BY THE ATTORNEY GENERAL ON ITS PUBLICLY
ACCESSIBLE INTERNET WEBSITE IN ACCORDANCE WITH SECTION 206-I(T).
SECTION 203-I. PURCHASE OF TOBACCO PRODUCTS.
A RETAILER LICENSED UNDER ARTICLE XII-A OF THE T AX REFORM
CODE OF 1971 MAY ONLY PURCHASE TOBACCO PRODUCTS FROM A LICENSED
WHOLESALER.
SECTION 204-I. LICENSING OF DEALERS AND MANUFACTURERS.
NOTWITHSTANDING SECTION 1220-A OF THE TAX REFORM CODE OF
1971, THE FOLLOWING SHALL APPLY TO AN APPLICATION FOR A LICENSE
UNDER SECTION 1220-A OF THE TAX REFORM CODE OF 1971:
(1) THE APPLICANT SHALL SET FORTH TRUTHFULLY AND
ACCURATELY THE INFORMATION REQUESTED BY THE DEPARTMENT WHICH
IS RELEVANT TO THE ADMINISTRATION, COLLECTION AND ENFORCEMENT
OF THE TAX.
(2) IF THE APPLICATION IS APPROVED, THE DEPARTMENT SHALL
20250HB1425PN2675 - 33 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
LICENSE THE DEALER OR MANUFACTURER FOR A PERIOD OF ONE YEAR.
THE LICENSE MAY BE RENEWED ANNUALLY THEREAFTER.
(3) THE DEPARTMENT MAY DENY AN APPLICATION IF THERE IS A
REASONABLE BASIS TO DETERMINE THAT THE APPLICATION IS FILED
BY A PERSON AS SUBTERFUGE FOR A DIFFERENT PARTY OF INTEREST
WHOSE LICENSE HAS PREVIOUSLY BEEN DENIED, CANCELED OR REVOKED
FOR CAUSE OR A VIOLATION UNDER THIS ARTICLE OR A VIOLATION
UNDER ARTICLE XII OF THE TAX REFORM CODE OF 1971.
SECTION 205-I. LICENSING OF MANUFACTURERS.
(A) REQUIREMENTS.--IN ADDITION TO THE REQUIREMENTS UNDER
SECTION 1221-A OF THE TAX REFORM CODE OF 1971, APPLICANTS FOR A
MANUFACTURER LICENSE OR RENEWAL OF A MANUFACTURER LICENSE UNDER
ARTICLE XII-A OF THE TAX REFORM CODE OF 1971 SHALL MEET THE
FOLLOWING REQUIREMENTS:
(1) THE PREMISES ON WHICH THE APPLICANT PROPOSES TO
CONDUCT BUSINESS ARE ADEQUATE TO PROTECT THE REVENUE.
(2) THE APPLICANT IS A PERSON OF REASONABLE FINANCIAL
STABILITY AND REASONABLE BUSINESS EXPERIENCE.
(3) THE APPLICANT, OR ANY SHAREHOLDER CONTROLLING MORE
THAN 10% OF THE STOCK, IF THE APPLICANT IS A CORPORATION OR
ANY OFFICER OR DIRECTOR IF THE APPLICANT IS A CORPORATION,
SHALL NOT HAVE BEEN CONVICTED OF ANY CRIME INVOLVING MORAL
TURPITUDE.
(4) THE APPLICANT SHALL NOT HAVE FAILED TO DISCLOSE ANY
MATERIAL INFORMATION REQUIRED BY THE DEPARTMENT, INCLUDING
INFORMATION THAT THE APPLICANT HAS COMPLIED WITH THIS ARTICLE
BY PROVIDING A SIGNED STATEMENT UNDER PENALTY OF PERJURY.
(5) THE APPLICANT SHALL NOT HAVE MADE ANY MATERIAL FALSE
STATEMENT IN THE APPLICATION.
(6) THE APPLICANT SHALL NOT HAVE VIOLATED ANY PROVISION
20250HB1425PN2675 - 34 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
OF THIS ARTICLE.
(7) THE APPLICANT SHALL HAVE FILED ALL REQUIRED STATE
TAX REPORTS AND PAID ANY STATE TAXES NOT SUBJECT TO A TIMELY
PERFECTED ADMINISTRATIVE OR JUDICIAL APPEAL OR SUBJECT TO A
DULY AUTHORIZED DEFERRED PAYMENT PLAN.
(B) MULTIPLE LOCATIONS.--A MANUFACTURER LICENSE GRANTED
UNDER ARTICLE XII-A OF THE TAX REFORM CODE OF 1971 SHALL BE
VALID FOR ONE SPECIFIC LOCATION ONLY. MANUFACTURERS WITH MORE
THAN ONE LOCATION SHALL OBTAIN A LICENSE FOR EACH LOCATION.
SECTION 206-I. ELECTRONIC NICOTINE DELIVERY SYSTEM DIRECTORY.
(A) INTENT.--IT IS THE INTENT OF THE GENERAL ASSEMBLY UNDER
THIS SECTION TO ESTABLISH EFFECTIVE TOOLS FOR USE BY THE
DEPARTMENT AND THE ATTORNEY GENERAL TO PREVENT AND DETER THE
SALE OF ELECTRONIC CIGARETTES THAT CONTAIN NICOTINE IN THE
COMMONWEALTH WHICH HAVE NOT BEEN CERTIFIED UNDER SUBSECTION (B).
TO ACCOMPLISH THIS, THIS SECTION REQUIRES ANNUAL MANUFACTURER
AND PRODUCT CERTIFICATIONS AND A PUBLIC DIRECTORY LISTING ALL
CERTIFIED MANUFACTURERS AND ELECTRONIC CIGARETTES THAT CONTAIN
NICOTINE. IN ADDITION, THIS SECTION AUTHORIZES THE DEPARTMENT
AND THE ATTORNEY GENERAL, AND THEIR AGENTS, TO PERFORM REGULAR
INSPECTIONS OF BUSINESSES WHO SELL OR STORE ELECTRONIC
CIGARETTES THAT CONTAIN NICOTINE, INSPECT THE BOOKS AND RECORDS
OF THE PERSONS AND IMPOSE PENALTIES FOR NONCOMPLIANCE. THIS
SECTION REQUIRES THE ATTORNEY GENERAL TO ANNUALLY REPORT TO THE
GENERAL ASSEMBLY ON THE EFFECTIVENESS OF THE ENFORCEMENT
ACTIVITIES TAKEN UNDER THIS SECTION, TO IDENTIFY ALL RESOURCES
USED IN THE ENFORCEMENT ACTIVITIES AND THEIR COSTS AND TO SET
THE LEVEL CONSISTENT WITH ANY ENFORCEMENT ACTIVITIES TO THE
AMOUNT BUDGETED BY THE GENERAL ASSEMBLY FOR THE ENFORCEMENT
ACTIVITIES.
20250HB1425PN2675 - 35 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(B) CERTIFICATION.--
(1) WITHIN 60 DAYS OF THE EFFECTIVE DATE OF THIS
SUBSECTION AND ANNUALLY THEREAFTER, EVERY MANUFACTURER OF
ELECTRONIC CIGARETTES THAT CONTAIN NICOTINE THAT ARE SOLD FOR
RETAIL SALE IN THIS COMMONWEALTH, WHETHER DIRECTLY OR THROUGH
AN IMPORTER, WHOLESALER, RETAILER OR SIMILAR INTERMEDIARY OR
INTERMEDIARIES, SHALL EXECUTE AND DELIVER TO THE ATTORNEY
GENERAL A CERTIFICATION, UNDER PENALTY OF PERJURY ON A FORM
AND IN THE MANNER PRESCRIBED BY THE ATTORNEY GENERAL, THAT
THE MANUFACTURER IS COMPLIANT WITH THIS SECTION, AGREES TO
CONTINUE TO COMPLY WITH THIS SECTION, HAS POSTED THE SURETY
BOND REQUIRED BY SUBSECTION (K) AND THAT, FOR EACH ELECTRONIC
CIGARETTE THAT CONTAINS NICOTINE:
(I) THE MANUFACTURER HAS RECEIVED A MARKETING
GRANTED ORDER FOR THE ELECTRONIC CIGARETTE THAT CONTAINS
NICOTINE FROM THE FDA IN ACCORDANCE WITH 21 U.S.C. § 387J
(RELATING TO APPLICATION FOR REVIEW OF CERTAIN TOBACCO
PRODUCTS);
(II) THE MANUFACTURER HAS SUBMITTED A TIMELY FILED
PREMARKET TOBACCO PRODUCT APPLICATION FOR THE ELECTRONIC
CIGARETTE THAT CONTAINS NICOTINE TO THE FDA UNDER 21
U.S.C. § 387J AND THE APPLICATION EITHER REMAINS UNDER
REVIEW BY THE FDA OR HAS RECEIVED A DENIAL ORDER THAT HAS
BEEN AND REMAINS STAYED BY THE FDA OR COURT ORDER,
RESCINDED BY THE FDA, OR VACATED BY A COURT; OR
(III) THE MANUFACTURER WAS NOT REQUIRED TO SUBMIT AN
ADDITIONAL PREMARKET TOBACCO PRODUCT APPLICATION FOR THE
ELECTRONIC CIGARETTE THAT CONTAINS NICOTINE BECAUSE THE
ELECTRONIC CIGARETTE THAT CONTAINS NICOTINE REFLECTS
CHANGES TO THE NAME, BRAND STYLE OR PACKAGING OF AN
20250HB1425PN2675 - 36 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
ELECTRONIC CIGARETTE THAT CONTAINS NICOTINE THAT IS
COVERED UNDER SUBPARAGRAPH (I) OR (II).
(2) TO THE EXTENT THAT 21 U.S.C. § 387J IS AMENDED OR
THE FEDERAL GOVERNMENT ISSUES SUBSEQUENT REGULATIONS,
OFFICIAL GUIDANCE OR A FORMAL POLICY STATEMENT CHANGING
COMPLIANCE REQUIREMENTS OR STANDARDS FOR AN ELECTRONIC
CIGARETTE THAT CONTAINS NICOTINE TO BECOME FEDERALLY
COMPLIANT, EACH MANUFACTURER OF AN ELECTRONIC CIGARETTE THAT
CONTAINS NICOTINE THAT IS SOLD FOR RETAIL SALE OR TO A
CONSUMER IN THIS COMMONWEALTH SHALL SUBMIT DOCUMENTATION TO
THE ATTORNEY GENERAL SUBSTANTIATING COMPLIANCE WITH THE NEW
FEDERAL REQUIREMENTS OR STANDARDS WITHIN 30 DAYS OF THE DATE
COMPLIANCE IS MANDATED. FAILURE TO SUBSTANTIATE COMPLIANCE
WITH A NEW FEDERAL MANDATE SHALL BE GROUNDS FOR REMOVAL OF
THE MANUFACTURER AND ITS ELECTRONIC CIGARETTES THAT CONTAIN
NICOTINE FROM THE DIRECTORY ESTABLISHED UNDER THIS SECTION.
(C) DECLARATION.--THE FORM PRESCRIBED BY THE ATTORNEY
GENERAL UNDER SUBSECTION (B) MUST REQUIRE EACH MANUFACTURER TO:
(1) SPECIFY THE NAME UNDER WHICH THE MANUFACTURER
TRANSACTS OR INTENDS TO TRANSACT BUSINESS, THE ADDRESS OF THE
LOCATION OF THE MANUFACTURER'S PRINCIPAL PLACE OF BUSINESS,
THE MANUFACTURER'S EMAIL ADDRESS AND THE BRAND NAME,
CATEGORY, SUCH AS E-LIQUID, POWER UNIT, DEVICE, E-LIQUID
CARTRIDGE, E-LIQUID POD OR DISPOSABLE, PRODUCT NAME AND
FLAVOR OF EACH ELECTRONIC CIGARETTE THAT CONTAINS NICOTINE
THAT IS SOLD IN THIS COMMONWEALTH.
(2) FOR ELECTRONIC CIGARETTES THAT CONTAIN NICOTINE
MANUFACTURED OUTSIDE OF THE UNITED STATES, PROVIDE A COMPLETE
LIST OF ITS IMPORTERS INTO THE UNITED STATES WHO SELL THE
PRODUCTS INTO THE COMMONWEALTH AND THE BRAND FAMILIES SOLD BY
20250HB1425PN2675 - 37 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
THE IMPORTERS, INCLUDING THE IMPORTER'S NAME, ADDRESS,
CONTACT NAME, PHONE NUMBER AND EMAIL ADDRESS AT WHICH THE
IMPORTER CAN BE REACHED, AND A DECLARATION SIGNED BY EACH
IMPORTER ON A FORM PRESCRIBED BY THE ATTORNEY GENERAL. THE
DECLARATION SHALL STATE THE FOLLOWING:
(I) THE IMPORTER ACCEPTS JOINT AND SEVERAL LIABILITY
WITH THE MANUFACTURER FOR PAYMENT OF CIVIL PENALTIES,
COSTS, EXPENSES AND ATTORNEY FEES RELATED TO THIS
SECTION.
(II) THE IMPORTER CONSENTS TO PERSONAL JURISDICTION
IN THIS COMMONWEALTH FOR THE PURPOSES OF CLAIMS BY THE
COMMONWEALTH FOR PAYMENT OF CIVIL PENALTIES, COSTS,
EXPENSES AND ATTORNEY FEES.
(III) THE IMPORTER HAS APPOINTED AN AGENT FOR
SERVICE OF PROCESS IN THIS COMMONWEALTH ACCORDING TO THE
SAME REQUIREMENTS UNDER THIS SECTION.
(IV) THE IMPORTER HOLDS A VALID PERMIT UNDER 26
U.S.C. § 5713 (RELATING TO PERMIT).
(V) THE IMPORTER AGREES TO PROVIDE ANY INFORMATION
REQUIRED UNDER THIS SECTION.
(D) CONTENT.--EACH ANNUAL CERTIFICATION FORM REQUIRED BY
SUBSECTIONS (B) AND (C) SHALL BE ACCOMPANIED BY:
(1) A COPY OF:
(I) THE MARKETING GRANTED ORDER ISSUED BY THE FDA
UNDER 21 U.S.C. § 387J;
(II) THE ACCEPTANCE LETTER ISSUED BY THE FDA UNDER
21 U.S.C. § 387J FOR A TIMELY FILED PREMARKET TOBACCO
PRODUCT APPLICATION; OR
(III) A DOCUMENT ISSUED BY THE FDA OR BY A COURT
CONFIRMING THAT THE PREMARKET TOBACCO PRODUCT APPLICATION
20250HB1425PN2675 - 38 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
HAS RECEIVED A DENIAL ORDER THAT HAS BEEN AND REMAINS
STAYED BY THE FDA OR COURT ORDER, RESCINDED BY THE FDA OR
VACATED BY A COURT.
(2) A PAYMENT OF $2,000 FOR EACH BRAND FAMILY OF
ELECTRONIC CIGARETTE THAT CONTAINS NICOTINE, PLUS $200 FOR
EACH BRAND STYLE OF THE PRODUCT, THE FIRST TIME A
MANUFACTURER SUBMITS A CERTIFICATION FORM FOR THAT BRAND
FAMILY OF ELECTRONIC CIGARETTE THAT CONTAINS NICOTINE AND A
PAYMENT OF $1,000 ANNUALLY THEREAFTER FOR EACH BRAND FAMILY
OF ELECTRONIC CIGARETTE THAT CONTAINS NICOTINE, PLUS $100 FOR
EACH BRAND STYLE OF THE PRODUCT.
(E) CONFIDENTIALITY.--EXCEPT TO THE EXTENT THAT THE FDA OR
THE MANUFACTURER HAS MADE THE INFORMATION PUBLIC OR A THIRD
PARTY DISCLOSED THE INFORMATION AND THE MANUFACTURER HAS NOT
TAKEN LEGAL ACTION TO PREVENT FURTHER DISCLOSURE, THE
INFORMATION SUBMITTED BY THE MANUFACTURER UNDER SUBSECTION (D)
(1) AND (H) SHALL BE CONSIDERED CONFIDENTIAL COMMERCIAL OR
FINANCIAL INFORMATION FOR PURPOSES OF THE ACT OF FEBRUARY 14,
2008 (P.L.6, NO.3), KNOWN AS THE RIGHT-TO-KNOW LAW. THE
MANUFACTURER MAY REDACT CONFIDENTIAL COMMERCIAL OR FINANCIAL
INFORMATION PROVIDED UNDER SUBSECTION (D)(1) AND (H). THE
ATTORNEY GENERAL OR DEPARTMENT SHALL NOT DISCLOSE THE
INFORMATION EXCEPT AS REQUIRED OR AUTHORIZED BY LAW.
(F) NOTIFICATION.--A MANUFACTURER REQUIRED TO SUBMIT A
CERTIFICATION FORM UNDER SUBSECTIONS (B) AND (C) SHALL NOTIFY
THE ATTORNEY GENERAL WITHIN 30 DAYS OF ANY MATERIAL CHANGE TO
THE CERTIFICATION FORM, INCLUDING THE ISSUANCE OR DENIAL OF A
MARKETING ORDER BY THE FDA UNDER 21 U.S.C. § 387J, OR ANY OTHER
ORDER OR ACTION BY THE FDA OR ANY COURT THAT AFFECTS THE ABILITY
OF THE ELECTRONIC CIGARETTE THAT CONTAINS NICOTINE TO BE
20250HB1425PN2675 - 39 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
INTRODUCED OR DELIVERED INTO INTERSTATE COMMERCE FOR COMMERCIAL
DISTRIBUTION IN THE UNITED STATES.
(G) DIRECTORY.--WITHIN 120 DAYS FROM THE EFFECTIVE DATE OF
THIS SUBSECTION, THE ATTORNEY GENERAL SHALL MAINTAIN AND MAKE
AVAILABLE ON THE ATTORNEY GENERAL'S PUBLICLY ACCESSIBLE INTERNET
WEBSITE A DIRECTORY THAT LISTS ALL MANUFACTURERS OF ELECTRONIC
CIGARETTES THAT CONTAIN NICOTINE, BRAND NAMES, CATEGORIES, SUCH
AS E-LIQUID, E-LIQUID CARTRIDGE, E-LIQUID POD OR DISPOSABLE,
PRODUCT NAMES AND FLAVORS FOR WHICH CERTIFICATION FORMS HAVE
BEEN SUBMITTED AND APPROVED BY THE ATTORNEY GENERAL AND SHALL
UPDATE THE DIRECTORY AT LEAST MONTHLY TO ENSURE ACCURACY. THE
ATTORNEY GENERAL SHALL ESTABLISH A PROCESS TO PROVIDE LICENSED
RETAILERS AND WHOLESALERS NOTICE OF THE INITIAL PUBLICATION OF
THE DIRECTORY AND CHANGES MADE TO THE DIRECTORY IN THE PRIOR
MONTH.
(H) COMPLIANCE.--THE ATTORNEY GENERAL MAY REQUIRE A
MANUFACTURER TO SUBMIT ADDITIONAL INFORMATION AS NECESSARY TO
DETERMINE COMPLIANCE WITH THIS SECTION, INCLUDING, BUT NOT
LIMITED TO, SAMPLES OF THE PACKAGING OR LABELING OF EACH BRAND
FAMILY AND STYLE, EACH STOCK KEEPING UNIT NUMBER FOR EACH BRAND
STYLE INCLUDED IN THE CERTIFICATION FOR LISTING ON THE
DIRECTORY, COPIES OF INVOICES AND OTHER SALES RECORDS FOR EACH
BRAND FAMILY OF ELECTRONIC CIGARETTES THAT CONTAIN NICOTINE SOLD
IN THIS COMMONWEALTH, AND ANY DOCUMENTS RELATED TO THE
MANUFACTURER'S PREMARKET TOBACCO APPLICATION, TO DETERMINE
WHETHER A MANUFACTURER IS IN COMPLIANCE WITH THIS SECTION. THE
ATTORNEY GENERAL MAY REQUIRE MANUFACTURERS TO PROVIDE A SWORN
AFFIDAVIT AS TO THE AUTHENTICITY OF ANY DOCUMENTS SUBMITTED BY
THE MANUFACTURER IN SUPPORT OF ITS CERTIFICATION OR IN RESPONSE
TO A REQUEST BY THE ATTORNEY GENERAL.
20250HB1425PN2675 - 40 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(I) NONDISCLOSURE.--A MANUFACTURER OR THE MANUFACTURER'S
ELECTRONIC CIGARETTE THAT CONTAINS NICOTINE MAY NOT BE INCLUDED
OR RETAINED IN THE DIRECTORY IF THE ATTORNEY GENERAL DETERMINES
THAT ANY OF THE FOLLOWING APPLY:
(1) THE MANUFACTURER FAILED TO PROVIDE A COMPLETE AND
ACCURATE CERTIFICATION AS REQUIRED BY SUBSECTION (B).
(2) THE MANUFACTURER SUBMITTED A CERTIFICATION THAT DOES
NOT COMPLY WITH THE REQUIREMENTS OF SUBSECTIONS (B), (C) AND
(D)(1).
(3) THE MANUFACTURER FAILED TO INCLUDE WITH ITS
CERTIFICATION THE PAYMENT REQUIRED BY SUBSECTION (D)(2).
(4) IF THE MANUFACTURER IS LOCATED OUTSIDE OF THE UNITED
STATES, THE MANUFACTURER FAILED TO PROVIDE THE INFORMATION
AND DECLARATION REQUIRED BY SUBSECTION (C)(2).
(5) THE MANUFACTURER FAILED TO PROVIDE THE SURETY BOND
REQUIRED BY SUBSECTION (K) OR MISREPRESENTED ANY OF THE
INFORMATION REQUIRED BY THE SURETY BOND.
(6) THE INFORMATION PROVIDED BY THE MANUFACTURER IN ITS
CERTIFICATION IS DETERMINED BY THE ATTORNEY GENERAL TO
CONTAIN FALSE INFORMATION OR MATERIAL MISREPRESENTATIONS OR
OMISSIONS.
(J) DENIAL.--THE ATTORNEY GENERAL MAY DENY A MANUFACTURER'S
CERTIFICATION IF ANY OF THE FOLLOWING APPLY:
(1) THE MANUFACTURER SOLD PRODUCTS IN THIS COMMONWEALTH
REQUIRED TO BE CERTIFIED UNDER THIS SECTION DURING A PERIOD
WHEN EITHER THE MANUFACTURER OR THE BRAND FAMILY HAD NOT BEEN
CERTIFIED AND LISTED ON THE DIRECTORY.
(2) THE MANUFACTURER WAS DENIED LISTING OR INVOLUNTARILY
REMOVED FROM ANOTHER STATE'S ELECTRONIC CIGARETTE DIRECTORY
AND THE AGENCY DECISION IS FINAL AND NO LONGER SUBJECT TO
20250HB1425PN2675 - 41 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
APPEAL, IF THE OTHER STATE'S DIRECTORY HAS REQUIREMENTS
SIMILAR TO THOSE OF THE DIRECTORY UNDER THIS SECTION.
(3) THE MANUFACTURER FAILED TO PROVIDE ANY INFORMATION
REQUESTED UNDER SUBSECTION (H).
(4) THE INFORMATION PROVIDED BY THE MANUFACTURER IN ITS
CERTIFICATION OR UNDER SUBSECTION (H) IS DETERMINED TO
CONTAIN FALSE INFORMATION OR MATERIAL MISREPRESENTATIONS OR
OMISSIONS.
(5) THE MANUFACTURER FAILED TO SUBMIT COMPLETE AND
ACCURATE REPORTS AS REQUIRED BY THE PREVENT ALL CIGARETTE
TRAFFICKING ACT OF 2009 (PUBLIC LAW 111-154, 124 STAT. 1087).
(6) THE MANUFACTURER HAS BEEN CONVICTED OF VIOLATING 18
PA.C.S. § 6305 (RELATING TO SALE OF TOBACCO PRODUCTS) .
(7) THE MANUFACTURER FAILED TO ADHERE TO THE FEDERAL
NICOTINE PACKAGING STANDARD REQUIRED BY 15 U.S.C. § 1472A
(RELATING TO SPECIAL PACKAGING FOR LIQUID NICOTINE
CONTAINERS). FOR PURPOSES OF THIS PARAGRAPH, ALL ELECTRONIC
CIGARETTES CONSTITUTE "LIQUID NICOTINE CONTAINERS" UNDER THE
FEDERAL NICOTINE PACKAGING STANDARD.
(K) SURETY BOND.--
(1) MANUFACTURERS SEEKING TO CERTIFY TO SELL ELECTRONIC
CIGARETTES THAT CONTAIN NICOTINE SHALL AT THE TIME OF
CERTIFICATION TO THE ATTORNEY GENERAL SUBMIT A SURETY BOND
PAYABLE TO THE COMMONWEALTH IN AN AMOUNT FIXED BY THE
ATTORNEY GENERAL OF AT LEAST $50,000.
(2) THE REQUIRED SURETY BOND:
(I) SHALL BE SUBJECT TO EXECUTION UNDER PARAGRAPH
(4).
(II) SHALL BE CONDITIONED ON THE MANUFACTURER'S
COMPLIANCE WITH THE REQUIREMENTS OF THIS SECTION.
20250HB1425PN2675 - 42 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(III) SHALL BE POSTED BY A SURETY BOND COMPANY
LOCATED WITHIN THIS COMMONWEALTH AND APPROVED BY THE
ATTORNEY GENERAL.
(IV) MUST STATE THAT THE MANUFACTURER WILL
FAITHFULLY COMPLY WITH THE PROVISIONS OF THIS ARTICLE
DURING THE EFFECTIVE PERIOD OF THE CERTIFICATION.
(3) THE ATTORNEY GENERAL MAY REQUIRE A MANUFACTURER TO
FURNISH A BOND IN EXCESS OF $50,000, AS NECESSARY TO ENSURE
THE MANUFACTURER'S COMPLIANCE WITH THIS SECTION. FOR THE
PURPOSE OF DETERMINING WHETHER AN EXISTING BOND IS
SUFFICIENT, THE ATTORNEY GENERAL MAY, BY WRITTEN NOTICE,
REQUIRE A MANUFACTURER TO FURNISH AN INVENTORY BY BRAND AND
COST, FINANCIAL STATEMENT AND ADDITIONAL RECORDS IN THE FORM
AS THE ATTORNEY GENERAL MAY PRESCRIBE TO DETERMINE WHETHER
ADDITIONAL BONDING IS WARRANTED WHEN COMPARED TO THE RISK OF
UNRECOUPED COSTS OF DESTRUCTION OF CONTRABAND TO THE
COMMONWEALTH. UPON FAILURE OF A MANUFACTURER TO FURNISH AN
INVENTORY BY BRAND AND COST, FINANCIAL STATEMENT OR
ADDITIONAL REQUESTED RECORDS WITHIN 30 DAYS OF WRITTEN
NOTICE, OR UPON A DETERMINATION THAT THE MANUFACTURER
MISREPRESENTED THE INFORMATION OR THE VOLUME OF ITS PRODUCT
SHIPPED INTO OR WITHIN THE UNITED STATES, THE ATTORNEY
GENERAL MAY DENY LISTING OR REMOVE THE MANUFACTURER FROM THE
DIRECTORY.
(4) A SURETY ON A MANUFACTURER'S BOND SHALL BE LIABLE UP
TO THE AMOUNT OF THE BOND, AND THE COMMONWEALTH MAY EXECUTE
ON THE SURETY BOND:
(I) FOR COSTS OF DESTRUCTION OF THE MANUFACTURER'S
PRODUCT TO THE EXTENT IT EXCEEDS THE AMOUNTS RECOVERED
FROM THE PERSON FROM WHOM SUCH PRODUCT IS CONFISCATED OR
20250HB1425PN2675 - 43 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
A SURETY FOR THE PERSON; AND
(II) TO RECOVER CIVIL PENALTIES, COSTS AND FEES
ASSESSED AGAINST THE MANUFACTURER UNDER THIS SECTION.
(5) A SURETY ON A BOND FURNISHED BY A MANUFACTURER AS
PROVIDED IN THIS SECTION SHALL BE RELEASED AND DISCHARGED
FROM LIABILITY TO THE COMMONWEALTH ACCRUING ON THE BOND AFTER
EXPIRATION OF 60 DAYS FROM THE DATE UPON WHICH THE SURETY
SHALL HAVE LODGED WITH THE ATTORNEY GENERAL A WRITTEN REQUEST
TO BE RELEASED AND DISCHARGED. THIS PARAGRAPH SHALL NOT
OPERATE TO RELIEVE, RELEASE OR DISCHARGE THE SURETY FROM
LIABILITY ALREADY ACCRUED OR WHICH SHALL ACCRUE BEFORE THE
EXPIRATION OF THE 60-DAY PERIOD. THE ATTORNEY GENERAL SHALL,
UPON RECEIVING A REQUEST, NOTIFY THE MANUFACTURER WHO
FURNISHED THE BOND. UNLESS THE MANUFACTURER, ON OR BEFORE THE
EXPIRATION OF THE 60-DAY PERIOD, FILES WITH THE ATTORNEY
GENERAL A NEW BOND, WITH CORPORATE SURETY APPROVED BY AND
ACCEPTABLE TO THE ATTORNEY GENERAL, THE ATTORNEY GENERAL
SHALL DENY OR REMOVE THE LISTING OF THE MANUFACTURER. IF A
NEW BOND IS FURNISHED BY A MANUFACTURER, THE ATTORNEY GENERAL
SHALL CANCEL AND SURRENDER THE OLD BOND OF THE MANUFACTURER
AS SOON AS THE BOND IS SATISFIED THE NEW BOND PROVIDES
ADEQUATE SECURITY FOR THE MANUFACTURER'S OBLIGATIONS.
(L) REMOVAL FROM DIRECTORY.--THE ATTORNEY GENERAL SHALL
PROVIDE MANUFACTURERS NOTICE AND AN OPPORTUNITY TO CURE
DEFICIENCIES BEFORE DENYING A CERTIFICATION OR REMOVING
MANUFACTURERS OR PRODUCTS FROM THE DIRECTORY. THE FOLLOWING
SHALL APPLY:
(1) THE ATTORNEY GENERAL MAY NOT REMOVE THE MANUFACTURER
OR ITS PRODUCTS FROM THE DIRECTORY UNTIL AT LEAST 30 BUSINESS
DAYS AFTER THE MANUFACTURER HAS BEEN GIVEN NOTICE OF AN
20250HB1425PN2675 - 44 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
INTENDED ACTION STATING THE REASONS FOR REMOVAL. NOTICE SHALL
BE SUFFICIENT AND DEEMED IMMEDIATELY RECEIVED BY A
MANUFACTURER IF THE NOTICE IS SENT EITHER ELECTRONICALLY OR
BY FACSIMILE TO AN EMAIL ADDRESS OR FACSIMILE NUMBER PROVIDED
BY THE MANUFACTURER IN ITS MOST RECENT CERTIFICATION FILED
UNDER SUBSECTIONS (A), (B), (C) AND (D).
(2) THE MANUFACTURER OF ELECTRONIC CIGARETTES THAT
CONTAIN NICOTINE SHALL HAVE 30 BUSINESS DAYS FROM THE DATE OF
SERVICE OF THE NOTICE OF THE ATTORNEY GENERAL'S INTENDED
ACTION TO CURE THE DEFICIENCIES OR OTHERWISE ESTABLISH THAT
THE MANUFACTURER OR ITS PRODUCTS SHOULD BE INCLUDED IN THE
DIRECTORY.
(M) RETURNS.--IF A PRODUCT IS REMOVED FROM THE DIRECTORY,
EACH RETAILER, WHOLESALER AND IMPORTER SHALL HAVE 30 BUSINESS
DAYS FROM THE DAY SUCH PRODUCT IS REMOVED FROM THE DIRECTORY TO
SELL THE PRODUCT OR REMOVE THE PRODUCT FROM ITS INVENTORY AND
RETURN THE PRODUCT TO THE MANUFACTURER FOR DISPOSAL.
MANUFACTURERS SHALL ACCEPT RETURNS OF AND PROVIDE REFUNDS FOR
SUCH PRODUCTS AND SHALL DISPOSE OF SUCH PRODUCTS IN COMPLIANCE
WITH ALL FEDERAL, STATE AND LOCAL ENVIRONMENTAL LAWS AND
REGULATIONS. AFTER 30 BUSINESS DAYS FOLLOWING REMOVAL FROM THE
DIRECTORY, THE PRODUCT IDENTIFIED IN THE NOTICE OF REMOVAL IS
CONTRABAND, MAY NOT BE PURCHASED OR SOLD FOR RETAIL SALE IN THIS
COMMONWEALTH AND IS SUBJECT TO SEIZURE, FORFEITURE AND
DESTRUCTION. THE COST OF DESTRUCTION SHALL BE BORNE BY THE
PERSON FROM WHOM THE PRODUCT IS CONFISCATED, EXCEPT THAT NO
PRODUCT MAY BE SEIZED FROM A CONSUMER WHO HAS MADE A BONA FIDE
PURCHASE OF THE PRODUCT. THE DEPARTMENT AND THE ATTORNEY
GENERAL MAY STORE AND DISPOSE OF THE SEIZED PRODUCTS AS
APPROPRIATE, IN ACCORDANCE WITH FEDERAL, STATE AND LOCAL LAWS
20250HB1425PN2675 - 45 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
PERTAINING TO STORAGE AND DISPOSAL OF SUCH PRODUCTS.
(N) PROHIBITION.--EXCEPT AS PROVIDED IN PARAGRAPHS (1) AND
(2), WITHIN 120 DAYS OF THE EFFECTIVE DATE OF THIS SUBSECTION OR
ON THE DATE THAT THE ATTORNEY GENERAL FIRST MAKES THE DIRECTORY
AVAILABLE FOR PUBLIC INSPECTION ON ITS OFFICIAL WEBSITE,
WHICHEVER IS LATER, ELECTRONIC CIGARETTES THAT CONTAIN NICOTINE
NOT INCLUDED IN THE DIRECTORY UNDER SUBSECTION (G) MAY NOT BE
SOLD FOR RETAIL SALE IN THIS COMMONWEALTH EITHER DIRECTLY OR
THROUGH AN IMPORTER, WHOLESALER, RETAILER OR SIMILAR
INTERMEDIARY OR INTERMEDIARIES. THE FOLLOWING SHALL APPLY:
(1) EACH RETAILER SHALL HAVE 120 DAYS FROM THE DATE THAT
THE ATTORNEY GENERAL FIRST MAKES THE DIRECTORY AVAILABLE FOR
INSPECTION ON ITS PUBLICLY ACCESSIBLE INTERNET WEBSITE TO
SELL PRODUCTS THAT WERE IN ITS INVENTORY AND NOT INCLUDED IN
THE DIRECTORY OR TO REMOVE THOSE PRODUCTS FROM ITS INVENTORY.
(2) EACH WHOLESALER SHALL HAVE 120 DAYS FROM THE DATE
THAT THE ATTORNEY GENERAL FIRST MAKES THE DIRECTORY AVAILABLE
FOR INSPECTION ON ITS PUBLICLY ACCESSIBLE INTERNET WEBSITE TO
REMOVE THE PRODUCTS INTENDED FOR RETAIL SALE IN THIS
COMMONWEALTH FROM ITS INVENTORY.
(3) AFTER 120 DAYS FOLLOWING PUBLICATION OF THE
DIRECTORY, ELECTRONIC CIGARETTES THAT CONTAIN NICOTINE NOT
LISTED IN THE DIRECTORY AND INTENDED FOR RETAIL SALE IN THE
COMMONWEALTH ARE CONTRABAND AND ARE SUBJECT TO SEIZURE,
FORFEITURE AND DESTRUCTION, AND MAY NOT BE PURCHASED OR SOLD
FOR RETAIL SALE IN THIS COMMONWEALTH. THE COST OF
DESTRUCTION SHALL BE BORNE BY THE PERSON FROM WHOM THE
PRODUCTS ARE CONFISCATED, EXCEPT THAT NO PRODUCTS MAY BE
SEIZED FROM A CONSUMER WHO HAS MADE A BONA FIDE PURCHASE OF
SUCH PRODUCT. THE DEPARTMENT AND THE ATTORNEY GENERAL MAY
20250HB1425PN2675 - 46 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
STORE AND DISPOSE OF THE SEIZED PRODUCTS AS APPROPRIATE, IN
ACCORDANCE WITH FEDERAL, STATE AND LOCAL LAWS PERTAINING TO
STORAGE AND DISPOSAL OF THE PRODUCTS.
(4) EACH WHOLESALER POSSESSING ELECTRONIC CIGARETTES
THAT CONTAIN NICOTINE NOT LISTED IN THE DIRECTORY AND HELD
SOLELY FOR SALE IN A JURISDICTION OUTSIDE OF THIS
COMMONWEALTH SHALL PHYSICALLY SEPARATE THE ELECTRONIC
CIGARETTES FROM ANY ELECTRONIC CIGARETTES HELD FOR SALE IN
THIS COMMONWEALTH. A WHOLESALER'S ORDERING SYSTEM SHALL HAVE
MEASURES DESIGNED TO PREVENT SALE WITHIN THIS COMMONWEALTH OF
ELECTRONIC CIGARETTES THAT CONTAIN NICOTINE NOT LISTED IN THE
DIRECTORY.
(O) PENALTIES.--THE FOLLOWING PENALTIES SHALL APPLY TO
VIOLATIONS OF THIS SECTION:
(1) A RETAILER, WHOLESALER OR IMPORTER WHO SELLS OR
OFFERS FOR SALE AN ELECTRONIC CIGARETTE THAT CONTAINS
NICOTINE FOR RETAIL SALE IN THIS COMMONWEALTH THAT IS NOT
INCLUDED IN THE DIRECTORY SHALL BE SUBJECT TO:
(I) A CIVIL PENALTY OF $500 FOR EACH PRODUCT OFFERED
FOR SALE IN VIOLATION OF THIS SECTION UNTIL THE OFFENDING
PRODUCT IS REMOVED FROM THE MARKET OR UNTIL THE OFFENDING
PRODUCT IS PROPERLY LISTED ON THE DIRECTORY. THE ATTORNEY
GENERAL, AN AGENT OR THE DEPARTMENT MAY NEGOTIATE THE
CIVIL PENALTY FOR A FIRST OFFENSE TO AN AMOUNT SUFFICIENT
TO COVER THE COSTS OF DESTRUCTION OF CONTRABAND
ELECTRONIC CIGARETTES THAT CONTAIN NICOTINE, PROVIDED
THAT THE RETAILER DEMONSTRATES COMPLIANCE WITH REMOVAL OR
PROPER LISTING WITHIN 30 BUSINESS DAYS OF THE VIOLATION
NOTICE. NOTHING IN THIS SECTION SHALL LIMIT THE ATTORNEY
GENERAL OR DEPARTMENT FROM SEEKING THE FULL PENALTY DUE,
20250HB1425PN2675 - 47 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
ABSENT AN AGREEMENT WITH THE VIOLATOR STATING OTHERWISE.
(II) FOR A SECOND VIOLATION WITHIN A 12-MONTH
PERIOD, A CIVIL PENALTY OF AT LEAST $750 BUT NOT MORE
THAN $1,000 PER DAY PER PRODUCT, AND THE LICENSE OF THE
LICENSEE SHALL BE SUSPENDED FOR AT LEAST 14 DAYS.
(III) FOR A THIRD VIOLATION WITHIN A 12-MONTH
PERIOD, A CIVIL PENALTY OF AT LEAST $1,000 BUT NOT MORE
THAN $1,500 PER DAY PER PRODUCT, AND THE LICENSE OF THE
LICENSEE SHALL BE REVOKED.
(2) A MANUFACTURER WHOSE ELECTRONIC CIGARETTES THAT
CONTAIN NICOTINE ARE NOT LISTED IN THE DIRECTORY AND ARE SOLD
FOR RETAIL SALE IN THIS COMMONWEALTH, WHETHER DIRECTLY OR
THROUGH AN IMPORTER, WHOLESALER, RETAILER OR SIMILAR
INTERMEDIARY OR INTERMEDIARIES, SHALL BE SUBJECT TO A CIVIL
PENALTY OF $1,000 FOR EACH PRODUCT OFFERED FOR SALE IN
VIOLATION OF THIS SECTION UNTIL THE OFFENDING PRODUCT IS
REMOVED FROM THE MARKET OR UNTIL THE OFFENDING PRODUCT IS
PROPERLY LISTED ON THE DIRECTORY. ANY MANUFACTURER THAT
FALSELY REPRESENTS ANY INFORMATION REQUIRED BY SUBSECTION
(B), (C) OR (G) COMMITS A MISDEMEANOR OF THE THIRD DEGREE FOR
EACH FALSE REPRESENTATION.
(3) A PERSON, INCLUDING ANY MANUFACTURER, IMPORTER,
WHOLESALER OR RETAILER, WHO SELLS OR OFFERS TO SELL AN
ELECTRONIC CIGARETTE THAT CONTAINS NICOTINE TO AN IMPORTER OR
DEALER LISTED IN THE TOBACCO NONCOMPLIANCE DATABASE SHALL BE
SUBJECT TO A CIVIL PENALTY OF $500 FOR EACH PRODUCT SOLD TO
OR OFFERED TO BE SOLD TO THE PERSON. A CONSUMER WHO HAS MADE
A BONA FIDE PURCHASE OF THE PRODUCT SHALL NOT BE SUBJECT TO
THE PENALTIES IN THIS SECTION.
(4) A PERSON, INCLUDING ANY MANUFACTURER, IMPORTER,
20250HB1425PN2675 - 48 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
WHOLESALER OR RETAILER, WHO PURCHASES FOR RETAIL SALE IN THIS
COMMONWEALTH AN ELECTRONIC CIGARETTE THAT CONTAINS NICOTINE
FROM A PERSON LISTED IN THE TOBACCO NONCOMPLIANCE DATABASE
SHALL BE SUBJECT TO A CIVIL PENALTY OF $500 FOR EACH PRODUCT
PURCHASED. A CONSUMER WHO HAS MADE A BONA FIDE PURCHASE OF
SUCH PRODUCT SHALL NOT BE SUBJECT TO THE PENALTIES IN THIS
SECTION.
(5) A PERSON, INCLUDING ANY MANUFACTURER, IMPORTER,
WHOLESALER OR RETAILER THAT VIOLATES BOTH PARAGRAPHS (3) AND
(4) RELATED TO THE SAME PRODUCT SHALL BE SUBJECT TO THE
PENALTIES PROVIDED UNDER THIS SECTION ONLY ONCE AND NOT
COMPOUNDED OR CONSECUTIVELY.
(6) A VIOLATION OF THIS SECTION SHALL BE DEEMED TO BE AN
UNFAIR OR DECEPTIVE ACT OR PRACTICE IN VIOLATION OF THE ACT
OF DECEMBER 17, 1968 (P.L.1224, NO.387), KNOWN AS THE UNFAIR
TRADE PRACTICES AND CONSUMER PROTECTION LAW.
(7) FOR PURPOSES OF THIS SUBSECTION, THE TERM "EACH
PRODUCT" SHALL MEAN EACH INDIVIDUAL ELECTRONIC CIGARETTE THAT
CONTAINS NICOTINE OFFERED FOR SALE, NOTWITHSTANDING WHETHER
THE ELECTRONIC CIGARETTE THAT CONTAINS NICOTINE BEARS THE
SAME STOCK KEEPING UNIT NUMBER.
(8) A WHOLESALER LICENSEE WHO, AFTER STATING THAT A
PRODUCT NOT LISTED IN THE DIRECTORY WAS INTENDED TO BE SOLD
OUTSIDE OF THIS COMMONWEALTH, IS FOUND TO HAVE SOLD THE
UNLISTED PRODUCT TO A RETAILER IN THIS COMMONWEALTH SHALL BE
SUBJECT TO ADDITIONAL PENALTY OF $500 PER EACH UNLISTED
PRODUCT SOLD TO THE RETAILER. PARAGRAPH (5) SHALL NOT BE
CONSTRUED TO APPLY TO THIS PARAGRAPH.
(9) IN AN ACTION TO ENFORCE THIS SECTION, THE
COMMONWEALTH SHALL BE ENTITLED TO RECOVER COSTS, INCLUDING
20250HB1425PN2675 - 49 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
THE COSTS OF INVESTIGATION, EXPERT WITNESS FEES AND
REASONABLE ATTORNEY FEES.
(10) CONTRABAND IDENTIFIED UNDER THIS ARTICLE SHALL BE
DESTROYED BY THE DEPARTMENT OR THE ATTORNEY GENERAL. THE
FOLLOWING APPLY TO THE COST OF DESTRUCTION:
(I) COSTS ASSOCIATED WITH THE DESTRUCTION OF
CONTRABAND SHALL BE BORNE BY THE PERSON FROM WHICH THE
CONTRABAND IS CONFISCATED.
(II) IF THERE IS NO BOND FOR THE DEPARTMENT TO DRAW
ON, OR IF THE BOND AMOUNT IS INSUFFICIENT TO COVER THE
COSTS ASSOCIATED WITH THE DESTRUCTION OF THE IDENTIFIED
CONTRABAND, THE COSTS SHALL BE ASSESSED AGAINST THE
PERSON FROM WHICH THE CONTRABAND IS CONFISCATED. COSTS
ASSESSED UNDER THIS SUBPARAGRAPH SHALL BE ADDED TO THE
AMOUNT OF THE TAX LIABILITY ADMINISTERED BY THE
DEPARTMENT AS A COST OF COLLECTION AND MAY BE COLLECTED
IN ANY WAY AUTHORIZED FOR COLLECTION OF THE UNDERLYING
TAX.
(P) TOBACCO PRODUCTS ADMINISTRATION CASH FUND.-- ALL AMOUNTS
RECEIVED OR RECOVERED BY THE DEPARTMENT OR THE ATTORNEY GENERAL
UNDER THIS SECTION, INCLUDING, BUT NOT LIMITED TO, COSTS OF
INVESTIGATION, COSTS OF DESTRUCTION, CERTIFICATION FEES, PRODUCT
TESTING COSTS, EXPERT WITNESS FEES, ATTORNEY FEES, CIVIL
PENALTIES AND AMOUNTS RECOVERED ON SURETY BONDS, SHALL BE
REMITTED TO THE STATE TREASURER FOR CREDIT TO THE TOBACCO
PRODUCTS ADMINISTRATION CASH FUND AND USED FOR ADMINISTRATION
AND ENFORCEMENT OF THIS SECTION.
(Q) ENFORCEMENT.--TO ENFORCE THE PROVISIONS OF THIS SECTION,
THE DEPARTMENT OR THE ATTORNEY GENERAL, OR THEIR DESIGNEES MAY
EXAMINE THE BOOKS, PAPERS, INVOICES AND OTHER RECORDS OF ANY
20250HB1425PN2675 - 50 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
PERSON IN POSSESSION, CONTROL OR OCCUPANCY OF ANY PREMISES IN
THE COMMONWEALTH WHERE ELECTRONIC CIGARETTES THAT CONTAIN
NICOTINE ARE PLACED, STORED, SOLD OR OFFERED FOR SALE, INCLUDING
THE STOCK OF ELECTRONIC CIGARETTES THAT CONTAIN NICOTINE ON THE
PREMISES. EACH PERSON IN THE POSSESSION, CONTROL OR OCCUPANCY OF
ANY PREMISES WHERE ELECTRONIC CIGARETTES THAT CONTAIN NICOTINE
ARE PLACED, SOLD OR OFFERED FOR SALE SHALL GIVE THE DEPARTMENT
OR THE ATTORNEY GENERAL, OR THEIR DESIGNEES, INCLUDING ANY
COMMONWEALTH OR LOCAL ENFORCEMENT OFFICER, THE MEANS, FACILITIES
AND OPPORTUNITY FOR THE EXAMINATIONS AUTHORIZED BY THIS SECTION.
A PERSON THAT WILLFULLY REFUSES TO COOPERATE WITH OR PERMIT AN
EXAMINATION AS PROVIDED UNDER THIS SECTION SHALL BE SUBJECT TO
THE CRIMINAL PENALTIES, FINES AND COSTS PROVIDED UNDER SECTION
1214-A OF THE TAX REFORM CODE OF 1971.
(R) VIOLATIONS.--A PERSON WHO VIOLATES THIS SECTION SHALL BE
SUBJECT TO THE CRIMINAL PENALTIES, FINES AND COSTS OTHERWISE
PROVIDED BY THIS ARTICLE. THE COMMONWEALTH MAY SEEK INJUNCTIVE
RELIEF OR OTHER ORDER TO PREVENT A THREATENED OR ACTUAL
VIOLATION OF, OR TO ENSURE COMPLIANCE BY, A PERSON WITH THIS
SECTION.
(S) COMPLIANCE.--EACH RETAILER, WHOLESALER, IMPORTER AND ANY
SIMILAR INTERMEDIARY THAT SELLS OR DISTRIBUTES ELECTRONIC
CIGARETTES THAT CONTAIN NICOTINE IN THIS COMMONWEALTH SHALL BE
SUBJECT TO UNANNOUNCED COMPLIANCE CHECKS. THE ATTORNEY GENERAL
SHALL PUBLISH THE RESULTS OF ALL COMPLIANCE CHECKS ON A PUBLICLY
ACCESSIBLE INTERNET WEBSITE AT LEAST ANNUALLY.
(T) DATABASE.--THE ATTORNEY GENERAL SHALL MAINTAIN, PROVIDE
VIA ELECTRONIC MAIL TO EACH LICENSED WHOLESALER THAT HAS
PROVIDED THE ATTORNEY GENERAL WITH A CURRENT AND VALID
ELECTRONIC MAIL ADDRESS AND PUBLISH ON ITS PUBLICLY ACCESSIBLE
20250HB1425PN2675 - 51 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
INTERNET WEBSITE A TOBACCO NONCOMPLIANCE DATABASE LISTING EVERY
PERSON, INCLUDING ANY MANUFACTURER, IMPORTER, WHOLESALER OR
RETAILER THAT HAS THREE OR MORE VIOLATIONS UNDER THIS SECTION
WITHIN THE PRECEDING 12 MONTHS. THE PERSON SHALL REMAIN LISTED
ON THE TOBACCO NONCOMPLIANCE DATABASE THROUGH THE END OF THE
12TH FULL CALENDAR MONTH AFTER THE PERSON'S MOST RECENT
VIOLATION UNDER THIS SECTION.
(U) AGENT FOR SERVICE OF PROCESS.--ANY NONRESIDENT
MANUFACTURER OF ELECTRONIC CIGARETTES THAT CONTAIN NICOTINE
SHALL, AS A CONDITION PRECEDENT TO BEING INCLUDED IN THE
DIRECTORY CREATED IN THIS SECTION, APPOINT AND CONTINUALLY
ENGAGE WITHOUT INTERRUPTION THE SERVICES OF AN AGENT IN THE
COMMONWEALTH TO ACT AS AGENT FOR THE SERVICE OF PROCESS ON WHOM
ALL PROCESS, AND ANY ACTION OR PROCEEDING AGAINST IT CONCERNING
OR ARISING OUT OF THE ENFORCEMENT OF THIS SECTION, MAY BE SERVED
IN ANY MANNER AUTHORIZED BY LAW. SERVICE BY CERTIFIED MAIL ON
THE AGENT SHALL CONSTITUTE LEGAL AND VALID SERVICE OF PROCESS ON
THE MANUFACTURER. THE MANUFACTURER SHALL PROVIDE THE NAME,
ADDRESS, TELEPHONE NUMBER, EMAIL ADDRESS AND PROOF OF THE
APPOINTMENT AND AVAILABILITY OF SUCH AGENT TO THE DEPARTMENT AND
ATTORNEY GENERAL. THE FOLLOWING SHALL APPLY:
(1) THE MANUFACTURER SHALL PROVIDE NOTICE TO THE
DEPARTMENT AND ATTORNEY GENERAL 30 CALENDAR DAYS PRIOR TO
TERMINATION OF THE AUTHORITY OF AN AGENT AND SHALL FURTHER
PROVIDE PROOF, AS REQUIRED BY THE DEPARTMENT AND ATTORNEY
GENERAL, OF THE APPOINTMENT OF A NEW AGENT NO LESS THAN FIVE
CALENDAR DAYS PRIOR TO THE TERMINATION OF AN EXISTING AGENT
APPOINTMENT. IF AN AGENT TERMINATES AN AGENCY APPOINTMENT,
THE MANUFACTURER SHALL NOTIFY THE DEPARTMENT AND ATTORNEY
GENERAL OF THE TERMINATION WITHIN FIVE CALENDAR DAYS AND
20250HB1425PN2675 - 52 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
SHALL INCLUDE PROOF, AS REQUIRED BY THE DEPARTMENT AND
ATTORNEY GENERAL, OF THE APPOINTMENT OF A NEW AGENT.
(2) ANY MANUFACTURER WHOSE ELECTRONIC CIGARETTES THAT
CONTAIN NICOTINE ARE SOLD IN THIS COMMONWEALTH WITHOUT THE
APPOINTMENT OF AN AGENT AS REQUIRED BY THIS SECTION SHALL BE
DEEMED TO HAVE APPOINTED THE SECRETARY OF STATE AS ITS AGENT
FOR SERVICE OF PROCESS. THE APPOINTMENT OF THE SECRETARY OF
STATE UNDER THIS SUBSECTION SHALL NOT SATISFY THE CONDITION
PRECEDENT REQUIRED TO BE INCLUDED OR RETAINED IN THE
DIRECTORY.
(V) FOREIGN IMPORTERS.--IN THE CASE OF A MANUFACTURER
LOCATED OUTSIDE OF THE UNITED STATES, EACH IMPORTER INTO THE
UNITED STATES OF THE MANUFACTURER'S BRAND FAMILIES THAT ARE SOLD
IN THIS COMMONWEALTH SHALL BEAR JOINT AND SEVERAL LIABILITY WITH
THE MANUFACTURER FOR PAYMENT OF ALL CIVIL PENALTIES, FEES, COSTS
AND ATTORNEY FEES DUE UNDER THIS SECTION.
(W) DETERMINATION.--A DETERMINATION BY ATTORNEY GENERAL TO
NOT INCLUDE OR TO REMOVE FROM THE DIRECTORY A MANUFACTURER OR A
PRODUCT SHALL BE SUBJECT TO REVIEW BY THE FILING OF A PETITION
FOR REVIEW WITH COMMONWEALTH COURT WITHIN 21 DAYS OF THE
DETERMINATION. NO PARTY OTHER THAN THE MANUFACTURER MAY
CHALLENGE A DETERMINATION BY THE ATTORNEY GENERAL.
(X) RESALE.--NO RETAILER SHALL PURCHASE ELECTRONIC
CIGARETTES THAT CONTAIN NICOTINE FOR RESALE EXCEPT FROM A
LICENSED WHOLESALER OPERATING WITH A VALID LICENSE ISSUED IN
ACCORDANCE WITH SECTION 1222-A OF THE TAX REFORM CODE OF 1971.
(Y) REGULATIONS.--THE DEPARTMENT OR THE ATTORNEY GENERAL MAY
PROMULGATE RULES NECESSARY TO EFFECTUATE THE PURPOSES OF THIS
SECTION.
(Z) REPORT.--BEGINNING JULY 1 AFTER THE EFFECTIVE DATE OF
20250HB1425PN2675 - 53 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
THIS SUBSECTION AND ANNUALLY THEREAFTER, THE ATTORNEY GENERAL
SHALL PROVIDE A REPORT TO THE GENERAL ASSEMBLY REGARDING THE
STATUS OF THE DIRECTORY, MANUFACTURERS AND PRODUCTS INCLUDED IN
THE DIRECTORY, REVENUE AND EXPENDITURES RELATED TO
ADMINISTRATION OF THIS SECTION AND ENFORCEMENT ACTIVITIES
UNDERTAKEN IN ACCORDANCE WITH THIS SECTION.
(AA) PUBLICATION.--THE DEPARTMENT AND THE ATTORNEY GENERAL
SHALL SHARE DOCUMENTS AND INFORMATION OBTAINED PURSUANT TO THIS
SECTION WITH OTHER FEDERAL, STATE AND LOCAL AGENCIES AS
NECESSARY TO ENFORCE THIS SECTION, SIMILAR STATUTES OF OTHER
STATES OR LOCALITIES, AND OTHER TOBACCO-RELATED LAWS AND
REGULATIONS.
SECTION 4. REPEALS ARE AS FOLLOWS:
(1) THE GENERAL ASSEMBLY FINDS AND DECLARES THAT THE
REPEAL UNDER PARAGRAPH (2) IS NECESSARY FOR THE
IMPLEMENTATION OF SECTION 203-I OF THE ACT.
(2) SECTION 1202-A(B) OF THE ACT OF MARCH 4, 1971
(P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE OF 1971, IS
REPEALED.
SECTION 5. THIS ACT SHALL TAKE EFFECT AS FOLLOWS:
(1) THE FOLLOWING SHALL TAKE EFFECT IMMEDIATELY:
THE AMENDMENT OF SECTION 202-A OF THE ACT.
THE ADDITION OF SECTION 234-A OF THE ACT.
THIS SECTION.
(2) THE REMAINDER OF THIS ACT SHALL TAKE EFFECT IN 60
DAYS.
20250HB1425PN2675 - 54 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26