Conn. Gen. Stat. § 21a-415: Electronic nicotine delivery systems and vapor products. Definitions. Dealer registration. Requirements. Renewal. Fees. Penalties.

(a) As used in this chapter:

(1) “Authorized owner” means the owner or authorized designee of a business entity that is applying for a registration or is registered with the Department of Consumer Protection pursuant to this chapter;

(2) “Business entity” means any corporation, limited liability company, association, partnership, sole proprietorship, government, governmental subdivision or agency, business trust, estate, trust or any other legal entity;

(3) “Cigarette” has the same meaning as provided in subsection (b) of section 12-285;

(4) “Dealer registration” means an electronic nicotine delivery system certificate of dealer registration issued by the Commissioner of Consumer Protection pursuant to this section;

(5) “Deliver” or “delivering” means transferring, or offering or attempting to transfer, physical possession or control of an electronic nicotine delivery system or vapor product by any person, whether done as principal, proprietor, agent, servant or employee;

(6) “Drug paraphernalia” has the same meaning as provided in section 21a-240;

(7) “Electronic cigarette liquid” means a liquid that, when used in an electronic nicotine delivery system or vapor product, produces a vapor that may or may not include nicotine and is inhaled by the user of such electronic nicotine delivery system or vapor product;

(8) “Electronic nicotine delivery system” means an electronic device used in the delivery of nicotine or other substances to an individual inhaling from the device, and includes, but is not limited to, an electronic cigarette, electronic cigar, electronic cigarillo, electronic pipe or electronic hookah and any related device and any cartridge or other component of such device, including, but not limited to, electronic cigarette liquid;

(9) “Manufacturer registration” means an electronic nicotine delivery system certificate of manufacturer registration issued by the Commissioner of Consumer Protection pursuant to section 21a-415a to any person who mixes, compounds, repackages or resizes any nicotine-containing electronic nicotine delivery system or vapor product;

(10) “Sale” or “sell” means transferring, or offering or attempting to transfer, for consideration, including bartering or exchanging, or offering to barter or exchange by any person, whether done as principal, proprietor, agent, servant or employee;

(11) “Tobacco products” has the same meaning as provided in section 12-330a; and

(12) “Vapor product” means any product that employs a heating element, power source, electronic circuit or other electronic, chemical or mechanical means, regardless of shape or size, to produce a vapor that may include nicotine and is inhaled by the user of such product. “Vapor product” does not include a medicinal or therapeutic product that is (A) used by a licensed health care provider to treat a patient in a health care setting, (B) used by a patient, as prescribed or directed by a licensed health care provider in any setting, or (C) any drug or device, as defined in the federal Food, Drug and Cosmetic Act, 21 USC 321, as amended from time to time, any combination product, as described in said act, 21 USC 353(g), as amended from time to time, or any biological product, as described in 42 USC 262, as amended from time to time, and 21 CFR 600.3, as amended from time to time, authorized for sale by the United States Food and Drug Administration.

(b) (1) No person in this state may sell or possess with intent to sell an electronic nicotine delivery system or a vapor product unless such person is employed by, an agent of or directly affiliated with a business entity that maintains a dealer registration issued by the Commissioner of Consumer Protection pursuant to this section. A separate dealer registration shall be required for each place of business where such system or product is sold, offered for sale or possessed with the intent to sell. A dealer registration shall allow the sale of electronic nicotine delivery systems or vapor products at such place of business. A holder of a dealer registration shall post such registration in a prominent location adjacent to electronic nicotine delivery system products or vapor products offered for sale.

(2) The holder of a dealer registration shall maintain a sign, in a form and manner prescribed by the commissioner and posted on the Department of Consumer Protection's Internet web site, on all external entry doors of the location operated under such dealer registration, which shall clearly disclose that cannabis may not be sold at such location.

(3) Each holder of a dealer registration that derives at least fifty per cent of its annual gross revenue from sales of cigarettes, drug paraphernalia, electronic nicotine delivery systems, nicotine products, synthetic nicotine, tobacco products and vapor products shall verify, with a valid government-issued driver's license or identity card, the age of each individual entering the location operated under such dealer registration, and shall prohibit any individual younger than twenty-one years of age from entering such location.

(4) Each holder of a dealer registration shall maintain a complete set of records required pursuant to this section, and all financial records necessary to verify whether such holder derives at least fifty per cent of its annual gross revenue from sales of cigarettes, drug paraphernalia, electronic nicotine delivery systems, nicotine products, synthetic nicotine, tobacco products and vapor products, for the then current tax year and the three immediately preceding tax years. Such holder shall make such records immediately available to the department, upon a request made by the department, for inspection and copying by the department. Such holder shall produce such records to the department not later than three days after the department requests such records. Such holder shall produce such records to the department in an electronic format, unless it is commercially impractical to produce such records to the department in an electronic format. No person shall use any foreign language, code or symbol in maintaining the records required under this section.

(c) (1) Any applicant for a dealer registration or a renewal of a dealer registration shall apply to the Department of Consumer Protection, in a form and manner prescribed by the Commissioner of Consumer Protection, which application shall include, at a minimum:

(A) The name, address and electronic mail address of the applicant;

(B) The location that is to be operated under such dealer registration;

(C) The name of, and contact information for, each individual who has a direct or indirect financial interest in such applicant, unless (i) such applicant is a publicly traded company listed on a national stock exchange, or (ii) the financial interest held by such individual owner and such individual's spouse, parents and children, in the aggregate, does not exceed ten per cent of the total ownership or interest rights in such applicant;

(D) A third-party local and national criminal background check for each owner listed on such application, which background check shall (i) be conducted by a third-party consumer reporting agency or background screening company that is in compliance with the federal Fair Credit Reporting Act and accredited by the Professional Background Screening Association, (ii) include a multistate and multijurisdiction criminal record locator or other similar commercial nation-wide database with validation and such other background screening as the commissioner may require, and (iii) be requested by such applicant not more than sixty days prior to submission of such application;

(E) The name of the individual who shall serve as the fiduciary agent and guarantor for such applicant, which individual shall be personally liable in the event of any noncompliance that results in a debt owed to the department;

(F) A disclosure of any enforcement action against, and any negotiated settlement entered into by, such applicant or any owner disclosed pursuant to this subsection, which action or settlement is related to the sale of cigarettes, electronic nicotine delivery systems, tobacco products or vapor products;

(G) The name of a manager or supervisor who is or will be physically present at such applicant's location or proposed location; and

(H) A certification that an authorized owner or named designee of such applicant has successfully completed the online prevention education program administered by the Department of Mental Health and Addiction Services pursuant to section 17a-719.

(2) The Department of Consumer Protection: (A) May require that an applicant submit documents sufficient to establish that state and local building, fire and zoning requirements will be met at the location of any sale; (B) may, in the department's discretion, conduct an investigation to determine whether a dealer registration shall be issued to an applicant; and (C) shall not issue a dealer registration or a renewal of a dealer registration to an applicant unless the applicant certifies that an authorized owner or named designee of the applicant has successfully completed the online prevention education program administered by the Department of Mental Health and Addiction Services pursuant to section 17a-719.

(3) The commissioner shall issue a dealer registration to any such applicant not later than thirty days after the date of application unless the commissioner finds: (A) The applicant has made a materially false or misleading statement in such application or in any other application made to the commissioner; (B) the applicant has neglected to pay any taxes due to this state; (C) the authorized owner or named designee of the applicant has not successfully completed the online prevention education program administered by the Department of Mental Health and Addiction Services pursuant to section 17a-719; (D) the applicant has a criminal history that is a sufficient basis for denial under section 46a-80; or (E) the applicant has violated any other provision of this section.

(4) A dealer registration issued under this section shall be renewed annually and may be suspended or revoked at the discretion of the Department of Consumer Protection. A dealer registration shall not constitute property, nor shall it be subject to attachment and execution, nor shall it be alienable. Each holder of a dealer registration shall annually attest in each renewal application as to whether such holder derived at least fifty per cent of its annual gross revenue from sales of cigarettes, drug paraphernalia, electronic nicotine delivery systems, nicotine products, synthetic nicotine, tobacco products and vapor products.

(5) The applicant shall pay to the department a nonrefundable application fee of one thousand dollars, which fee shall be in addition to the annual fee prescribed in subsection (d) of this section. An application fee shall not be charged for an application to renew a dealer registration.

(d) The annual fee for a dealer registration shall be eight hundred dollars.

(e) The Department of Consumer Protection may renew a dealer registration issued under this section that has expired if the applicant pays to the department any late fee imposed by the Commissioner of Consumer Protection pursuant to subsection (d) of section 21a-4, which late fee shall be in addition to the fees prescribed in this section for the dealer registration applied for.

(f) (1) Any business entity in the state that sells, offers for sale or possesses with intent to sell an electronic nicotine delivery system or vapor product without a dealer registration as required under this section shall, after a hearing conducted pursuant to chapter 54, be fined not more than five thousand dollars per violation.

(2) Notwithstanding the provisions of subdivision (1) of this subsection, any business entity with a dealer registration that has expired for a period of ninety calendar days or less and that, during such ninety-day period, sells, offers for sale or possesses with intent to sell an electronic nicotine delivery system or vapor product shall be fined not more than five hundred dollars for each day such business entity is in violation of the provisions of this subdivision.

(3) A person holding a dealer registration shall update, through the Department of Consumer Protection's online licensing system, any application information such person has provided to the department pursuant to this section, including, but not limited to, any contact information, ownership information or criminal histories of the individual owners of the business entity, not later than thirty days after any change in such information.

(g) (1) For sufficient cause found as set forth in subdivision (2) of this subsection, the Commissioner of Consumer Protection may suspend or revoke a dealer registration, issue fines of not more than ten thousand dollars per violation, accept an offer in compromise or refuse to grant or renew a dealer registration, or place the registrant on probation, place conditions on such registrant or take other actions authorized by law. No information derived from an inspection or investigation conducted by the Department of Consumer Protection related to an administrative complaint or case shall be subject to disclosure under the Freedom of Information Act, as defined in section 1-200, unless the department has entered into a settlement agreement, or otherwise concluded its investigation or inspection as evidenced by case closure. Nothing in this subdivision shall be construed to prevent the department from sharing any information with another state or federal agency or law enforcement insofar as such information relates to an investigation of any suspected violation of applicable law.

(2) Any of the following shall constitute sufficient cause for the purposes of subdivision (1) of this subsection:

(A) Furnishing any false or fraudulent information in an application or any failure to comply with the representations made in an application;

(B) A civil judgment against, or conviction of, an owner or applicant, after review and application of the denial criteria set forth in section 46a-80;

(C) Any failure to maintain effective controls against diversion, theft or loss of electronic nicotine delivery systems and vapor products;

(D) Any denial, suspension or revocation of a license or registration related to the sale of cigarettes, electronic nicotine delivery systems, tobacco products or vapor products, or any denial of a renewal of a license or registration related to the sale of cigarettes, electronic nicotine delivery systems, tobacco products or vapor products, by any federal, state or local government or a foreign jurisdiction;

(E) Any false, misleading or deceptive representation made to the public or to the department;

(F) Any involvement in a fraudulent or deceitful practice or transaction;

(G) The possession, offer or sale of any illegal or controlled substance, unless otherwise permitted by applicable law;

(H) Any failure to register a trade name of the business entity with the town in which the registrant engages in business;

(I) Any failure to notify the department of any change in the information concerning the business entity, owners, ownership information or designated manager or supervisor;

(J) Any adverse administrative decision or delinquency assessment against the registrant by the Department of Revenue Services;

(K) Any failure to cooperate, provide unfettered access to the location or provide information to the department, local law enforcement authorities or any other enforcement agency concerning any matter arising out of conduct in connection with a licensee or registrant;

(L) Advertising an electronic nicotine delivery system or vapor product in any manner that (i) is designed to appeal to individuals who are younger than twenty-one years of age by, among other things, (I) making use of any spokesperson or celebrity who appeals to individuals who are under the legal age to purchase electronic nicotine delivery systems or vapor products, (II) depicting any individual who is younger than twenty-five years of age using an electronic nicotine delivery system or vapor product, (III) including any object, such as a toy, character or cartoon character, that suggests the presence of an individual who is younger than twenty-one years of age, or (IV) making use of any other depiction or method that is designed in any manner to be appealing to an individual who is younger than twenty-one years of age, or (ii) claims or implies that (I) any electronic nicotine delivery system or vapor product has any curative or therapeutic effect, or (II) any medical claim is true;

(M) Allowing an employee to promote any electronic nicotine delivery system or vapor product for a wellness purpose; or

(N) Any failure to comply with any provision of this chapter or any regulation adopted pursuant to this chapter.

(h) Upon refusal to issue or renew a dealer registration, the Commissioner of Consumer Protection shall notify the applicant of the denial and of the applicant's right to request a hearing not later than ten days after the applicant receives the notice of denial. If the applicant requests a hearing within such ten-day period, the commissioner shall give notice of the grounds for the commissioner's refusal and shall conduct a hearing concerning such refusal in accordance with the provisions of chapter 54 concerning contested cases. If the commissioner's denial is sustained after such hearing, the applicant shall not apply for a new dealer registration for a period of one year after the date on which such denial was sustained.

(i) No person whose dealer registration has been revoked, including the owners of such registrant, shall apply for a dealer registration under this section for a period of one year after the date of such revocation.

(j) The voluntary surrender of a dealer registration, or the failure to renew a dealer registration, shall not prevent the Commissioner of Consumer Protection from suspending or revoking such dealer registration or imposing other penalties permitted by applicable law.

(k) All fees, settlement amounts and fines collected under this section shall be deposited in the consumer protection enforcement account established in section 21a-8a.