A425: Increases penalties for certain prohibited sales of tobacco and vapor products.

A425 ASSEMBLY, No. 425 STATE OF NEW JERSEY 222nd LEGISLATURE PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION Sponsored by: Assemblyman MICHAEL VENEZIA District 34 (Essex) Assemblywoman TENNILLE R. MCCOY District 14 (Mercer and Middlesex) Co-Sponsored by: Assemblywomen Reynolds-Jackson, Tucker, Assemblymen Sampson, Bailey, Assemblywomen Morales, Collazos-Gill, Speight and Carter SYNOPSIS Increases penalties for certain prohibited sales of tobacco and vapor products. CURRENT VERSION OF TEXT Introduced Pending Technical Review by Legislative Counsel. An Act concerning tobacco and vapor products, and amending P.L.2000, c.87 and P.L.1987, c.423. Be It Enacted by the Senate and General Assembly of the State of New Jersey: 1.   Section 1 of P.L.2000, c.87 (C.2A:170-51.4) is amended to read as follows: 1. a. No [person] retailer , either directly or indirectly by an agent or employee, or by a vending machine owned by the [person] retailer or located in the [person’s] retailer’s establishment, shall sell, offer for sale, distribute for commercial purpose at no cost or minimal cost or with coupons or rebate offers, give or furnish, to a person under 21 years of age [: (1)  any cigarettes made of tobacco or of any other matter or substance which can be smoked, or any cigarette paper or tobacco in any form, including smokeless tobacco; or (2)  any electronic smoking device that can be used to deliver nicotine or other substances to the person inhaling from the device, including, but not limited to, an electronic cigarette, cigar, cigarillo, or pipe, or any cartridge or other component of the device or related] any tobacco product. b.   The establishment of all of the following shall constitute a defense to any prosecution brought pursuant to subsection a. of this section: (1)  that the purchaser of the tobacco product [or electronic smoking device] or the recipient of the promotional sample falsely represented, by producing either a driver's license or non-driver identification card issued by the New Jersey Motor Vehicle Commission, a similar card issued pursuant to the laws of another state or the federal government of Canada, or a photographic identification card issued by a county clerk, that the purchaser or recipient was of legal age to make the purchase or receive the sample; (2)  that the appearance of the purchaser of the tobacco product [or electronic smoking device] or the recipient of the promotional sample was such that an ordinary prudent person would believe the purchaser or recipient to be of legal age to make the purchase or receive the sample; and (3)  that the sale or distribution of the tobacco product [or electronic smoking device] was made in good faith, relying upon the production of the identification set forth in paragraph (1) of this subsection, the appearance of the purchaser or recipient, and in the reasonable belief that the purchaser or recipient was of legal age to make the purchase or receive the sample. c. (1) A [person who] retailer that violates the provisions of subsection a. of this section [, including an employee of a retail dealer licensee under P.L.1948, c.65 (C.54:40A-1 et seq.) who actually sells or otherwise provides a tobacco product to a person under 21 years of age,] shall be liable to a civil penalty of [not less than $250] $750 for the first violation, [not less than $500] $1,500 for the second violation, and [$1,000] $3,000 for the third and each subsequent violation.  The civil penalty shall be collected pursuant to the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.), in a summary proceeding before the municipal court having jurisdiction.  An official authorized by statute or ordinance to enforce the State or local health codes or a law enforcement officer having enforcement authority in that municipality may issue a summons for a violation of the provisions of subsection a. of this section, and may serve and execute all process with respect to the enforcement of this section consistent with the Rules of Court.  A penalty recovered under the provisions of this subsection shall be recovered by and in the name of the State by the local health agency.  The penalty shall be paid into the treasury of the municipality in which the violation occurred for the general uses of the municipality. (2) Five percent of the penalties recovered under the provisions of this subsection shall be transferred to the Department of Health and shall be used by the department to fund educational programs and outreach initiatives to inform the public, retailers, and minors of the dangers of vapor products and the consequences of selling or using vapor products illegally. d. (1) In addition to the provisions of subsection c. of this section, upon the recommendation of the municipality, following a hearing by the municipality, the Division of Taxation in the Department of the Treasury may suspend or, after a second or subsequent violation of the provisions of subsection a. of this section, revoke the license issued under section 202 of P.L.1948, c.65 (C.54:40A-4) of a retail dealer.  The licensee shall be subject to administrative charges, based on a schedule issued by the Director of the Division of Taxation, which may provide for a monetary penalty in lieu of a suspension. (2) The Division of Taxation in the Department of the Treasury shall establish a process by which retail dealers report to the division efforts on behalf of the retail dealer to comply with the provisions of subsection a. of this section. (3) The Division of Taxation in the Department of the Treasury shall establish a mechanism by which an individual may anonymously report to the division a violation of the provisions of subsection a. of this section. e.   A penalty imposed pursuant to this section shall be in addition to any penalty that may be imposed pursuant to section 3 of P.L.1999, c.90 (C.2C:33-13.1). f.    As used in this section: “ Tobacco product” means: any product containing, made of, or derived from tobacco or nicotine that is intended for human consumption or is likely to be consumed, whether inhaled, absorbed, or ingested by other means, including, but not limited to, a cigarette, cigar, pipe tobacco, chewing tobacco, snuff, or snus; any vapor product; and any component, part, or accessory of a product containing, made of, or derived from tobacco or nicotine or a vapor product, regardless of whether the component, part, or accessory contains tobacco or nicotine.  “Tobacco product” includes, but is not limited to, filters, rolling papers, blunt or hemp wraps, hookahs, and pipes.  “Tobacco product” does not include any drug, device, or combination product approved by the federal Food and Drug Administration pursuant to the “Federal Food, Drug, and Cosmetic Act,” 21 U.S.C. s.301 et seq. “Vapor product” means any device that may be used to deliver any aerosolized or vaporized substance to the person inhaling from the device, including, but not limited to, an e-cigarette, e-cigar, e-pipe, vape pen, or e-hookah.  “Vapor product” includes any component, part, or accessory of the device, and also includes any substance that may be aerosolized or vaporized by such device, regardless of whether the substance contains nicotine.  “Vapor product” does not include any drug, device, or combination product approved by the federal Food and Drug Administration pursuant to the “Federal Food, Drug, and Cosmetic Act,” 21 U.S.C. s.301 et seq. (cf: P.L.2017, c.118, s.2) 2.   Section 2 of P.L.1987, c.423 (C.54:40A-4.1) is amended to read as follows: 2.   Notwithstanding any other provision of law to the contrary, a person to whom a license is issued pursuant to P.L.1948, c.65 (C.54:40A-1 et seq.) shall, as a condition of the license, conspicuously post a legible sign at the point of display of the tobacco products and at the point of sale.  The sign, which also shall be posted conspicuously on any licensed cigarette vending machine, shall be at least six inches by three inches in bold letters at least one-quarter inch high and shall read as follows: "A [person who] retailer that sells or offers to sell a tobacco product to a person under 21 years of age shall pay a penalty of up to [$1,000] $3,000 and may be subject to a license suspension or revocation. 3.  This act shall take effect 180 days after the date of enactment. STATEMENT This bill increases the penalties for certain prohibited sales of tobacco and vapor products. The bill amends current law to revise the prohibition on the sale of tobacco to persons under the age of 21. Under the bill, no retailer is to sell to a person under 21 years of age any “tobacco product,” which is defined in the bill to mean: any product containing, made of, or derived from tobacco or nicotine that is intended for human consumption or is likely to be consumed, whether inhaled, absorbed, or ingested by other means, including, but not limited to, a cigarette, cigar, pipe tobacco, chewing tobacco, snuff, or snus; any vapor product; and any component, part, or accessory of a product containing, made of, or derived from tobacco or nicotine or a vapor product, regardless of whether the component, part, or accessory contains tobacco or nicotine.  “Tobacco product” includes, but is not limited to, filters, rolling papers, blunt or hemp wraps, hookahs, and pipes.  “Tobacco product” does not include any drug, device, or combination product approved by the federal Food and Drug Administration pursuant to the “Federal Food, Drug, and Cosmetic Act,” 21 U.S.C. s.301 et seq. The bill increases fines for a violation of the above prohibition from not less than $250 to $750 for the first violation, from not less than $500 to $1,500 for the second violation, and from $1,000 to $3,000 for the third and each subsequent violation.  Five percent of the penalties recovered under the bill are to be transferred to the Department of Health and are to be used by the department to fund educational programs and outreach initiatives to inform the public, retailers, and minors of the dangers of vapor products and the consequences of selling or using vapor products illegally. The bill provides that the Division of Taxation in the Department of the Treasury (division) is to establish a process by which retail dealers report to the division efforts on behalf of the retail dealer to comply with the above prohibition.  The division is to also establish a mechanism by which an individual may anonymously report to the division a violation of the above prohibition.