1998 Legislation
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SENATE BILL NO. 1299 – Tobacco prod/minor’s access/licnse

SENATE BILL NO. 1299

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S1299......................................................by STATE AFFAIRS
TOBACCO PRODUCTS - MINORS' ACCESS - Repeals and adds to existing law to
rewrite the statute regarding minors' access to tobacco products, to
provide for licensing of tobacco retailers and to provide that the
Department of Health and Welfare is the administering agency.

01/20    Senate intro - 1st rdg - to printing
01/21    Rpt prt - to St Aff

Bill Text


S1299


                                                                        
 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fourth Legislature                 Second Regular Session - 1998
                                                                        

                                      IN THE SENATE

                                   SENATE BILL NO. 1299

                                BY STATE AFFAIRS COMMITTEE

 1                                        AN ACT
 2    RELATING TO MINORS' ACCESS TO TOBACCO PRODUCTS; REPEALING  CHAPTER  57,  TITLE
 3        39,  IDAHO  CODE;  AMENDING TITLE 39, IDAHO CODE, BY THE ADDITION OF A NEW
 4        CHAPTER 57, TITLE 39, IDAHO CODE,  TO  PROVIDE  LEGISLATIVE  FINDINGS  AND
 5        INTENT, TO DEFINE TERMS, TO PROVIDE FOR POSSESSION, DISTRIBUTION OR USE OF
 6        TOBACCO  BY  A  MINOR WITH EXCEPTIONS, TO PROVIDE FOR LICENSING OF TOBACCO
 7        PRODUCT RETAILERS, TO PROHIBIT SALE OR DISTRIBUTION OF TOBACCO PRODUCTS TO
 8        MINORS, TO PROVIDE FOR VENDOR ASSISTED SALES, TO PROVIDE FOR OPENED  PACK-
 9        AGES  AND SAMPLES, TO PROVIDE CIVIL PENALTIES FOR VIOLATIONS OF A LICENSE,
10        TO PROVIDE CRIMINAL PENALTIES FOR VIOLATIONS WITHOUT A LICENSE, TO PROVIDE
11        FOR CONDUCT OF ENFORCEMENT ACTIONS, TO PROVIDE FOR FUNDING AND CREATION OF
12        A FUND IN THE STATE TREASURY, TO PROVIDE FOR COMPLIANCE WITH FEDERAL REGU-
13        LATIONS, TO PROVIDE SEVERABILITY AND TO PROVIDE FOR LOCAL ORDINANCES;  AND
14        PROVIDING  AN  EFFECTIVE DATE AND AUTHORIZING THE DEPARTMENT OF HEALTH AND
15        WELFARE TO DO CERTAIN ACTS TO ADMINISTER THE PROVISIONS OF THIS ACT.

16    Be It Enacted by the Legislature of the State of Idaho:

17        SECTION 1.  That Chapter 57, Title 39, Idaho Code,  be  and  the  same  is
18    hereby repealed.

19        SECTION  2.  That  Title 39, Idaho Code, be and the same is hereby amended
20    by the addition thereto of a   NEW CHAPTER  to be known and  desig-
21    nated as Chapter 57, Title 39, Idaho Code, and to read as follows:

22                                      CHAPTER 57
23                       PREVENTION OF MINORS' ACCESS TO TOBACCO

24        39-5701.  LEGISLATIVE  FINDINGS AND INTENT. The prevention of youth access
25    to tobacco products within the state of Idaho is hereby declared to be a state
26    goal to promote the general health and welfare of Idaho's  young  people.  The
27    legislature  finds that tobacco use among minors is an increasing problem with
28    significant health consequences. The U.S. surgeon general reports that  ninety
29    percent  (90%)  of  new  smokers  are minors and three thousand (3,000) minors
30    start to smoke each day, one-third (1/3) of whom will die  from  their  addic-
31    tion.  Twenty-seven  percent (27%) of Idaho's youth currently smoke and almost
32    twenty-seven percent (27%) of boys in Idaho use chewing tobacco which is  sig-
33    nificantly higher than the national average.
34        Tobacco  is the number one killer in Idaho causing more deaths by far than
35    alcohol, illegal drugs, car crashes, homicides, suicides, fires and AIDS  com-
36    bined.  According  to  the  center  for  disease control and prevention (CDC),
37    twenty-four thousand three hundred ninety-four (24,394) children in Idaho cur-
38    rently under eighteen (18) will die prematurely from tobacco-related  disease.
39    Tobacco  costs the state over two hundred forty million dollars ($240,000,000)
40    each year and is the single most preventable cause of death and disability  in
41    Idaho.


                                          2

 1        Furthermore, tobacco is usually the first drug used by young people who go
 2    on  to  use  alcohol  and other illegal drugs. A study from the CDC shows that
 3    teens who smoke are three (3) times more likely than nonsmokers to  use  alco-
 4    hol,  eight  (8) times more likely to use marijuana, and twenty-two (22) times
 5    more likely to use cocaine.
 6        The legislature further finds that despite the fact that sales of  tobacco
 7    to minors are illegal in Idaho an estimated one million three hundred thousand
 8    (1,300,000)  packs  of  cigarettes are sold illegally to minors in Idaho every
 9    year, according to a study published in the American journal of public health.
10    Ninety percent (90%) of all new customers for the tobacco industry  are  chil-
11    dren  and  teens  and most minors buy their own tobacco products or steal from
12    self-service displays. Random unannounced inspections in Idaho during the last
13    six (6) months show that about fifty percent (50%) of retailers inspected sell
14    tobacco products to minors. Vending  machines  also  create  easy  access  for
15    minors  and  a  report  from the CDC shows that even when vending machines are
16    restricted to "adult areas" such as bars, children still succeed in purchasing
17    cigarettes from vending machines seventy-seven percent (77%) of the time.
18        Over forty (40) states require retail tobacco licensing. Numerous  reports
19    by the federal drug administration (FDA) and CDC indicate that illegal tobacco
20    sales  to  minors  dropped  by up to eighty percent (80%) after enactment of a
21    tobacco license with required inspections and vendor assisted sales that  bans
22    self-service  displays  and  vending machines. This type of license encourages
23    employees and retailers to monitor themselves  to  avoid  fines  and  loss  of
24    tobacco  sales  through  license suspension. These measures have produced dra-
25    matic reductions of tobacco use among minors.
26        Therefore, it is this state's policy to prevent the  illegal  sale,  theft
27    and  easy access of tobacco products to minors and to prohibit the possession,
28    distribution and use of tobacco products by minors and  to  punish  those  who
29    disregard this law.

30        39-5702.  DEFINITIONS.  The terms used in this chapter are defined as fol-
31    lows:
32        (1)  "Business" means any company, partnership, firm, sole proprietorship,
33    association,  corporation, organization, or other legal entity, or a represen-
34    tative of the foregoing entities.
35        (2)  "Coupon"  means any card, paper, note,  form,  statement,  ticket  or
36    other  issue  distributed  for  commercial or promotional purposes to be later
37    surrendered by the bearer so as to receive an article, service  or  accommoda-
38    tion without charge or at a discount price.
39        (3)  "Department"  means the state department of health and welfare or its
40    duly authorized representative.
41        (4)  "Distribute" means to give, deliver, sell, offer to  give,  offer  to
42    deliver,  offer  to sell or cause any person to do the same or hire any person
43    to do the same.
44        (5)  "Less than the basic cost" means free of charge, a  nominal  or  dis-
45    counted  price,  or any other price less than the distributor's cost, to which
46    shall be added the full value of any stamps or taxes which may be required  by
47    law.
48        (6)  "License"  means  a  license issued by the department for the sale or
49    distribution of tobacco products.
50        (7)  "Licensee" means the holder of a valid license for the sale  or  dis-
51    tribution of tobacco products, or an employee or agent of the licensee.
52        (8)  "Minor" means a person under eighteen (18) years of age.
53        (9)  "Photographic  identification"  means  a  validly  issued and current
54    state, district, territorial, possession, provincial, national or other equiv-


                                          3

 1    alent government driver's license, identification card or  military  card;  in
 2    all cases bearing a photograph and a date of birth, or a valid passport.
 3        (10) "Random unannounced inspection" means an inspection of retail outlets
 4    by  a  law enforcement agency or by the department, with or without the assis-
 5    tance of a minor, to monitor compliance of this chapter.
 6        (11) "Seller" means the person or entity who physically sells or  distrib-
 7    utes tobacco products.
 8        (12) "Tobacco  product"  means any substance that contains tobacco includ-
 9    ing, but not limited to, cigarettes, cigars, pipes,  snuff,  smoking  tobacco,
10    tobacco papers, or smokeless tobacco.
11        (13) "Vending  machine"  means any mechanical, electronic or other similar
12    device which dispenses tobacco products.
13        (14) "Vendor assisted sales" means any sale or distribution in  which  the
14    customer  has  no  access  to the product except through the assistance of the
15    seller. The customer does not take possession of the product until after it is
16    purchased.
17        (15) "Without a license" means a business that  has  failed  to  obtain  a
18    license or a business whose license is suspended or revoked.

19        39-5703.  POSSESSION,  DISTRIBUTION  OR  USE  BY  A MINOR. (1) It shall be
20    unlawful for a minor to possess, receive, purchase, sell, distribute,  use  or
21    consume tobacco products or to attempt any of the foregoing.
22        (2)  It  shall be unlawful for a minor to provide false identification, or
23    make any false statement regarding their age in an attempt to  obtain  tobacco
24    products.
25        (3)  A  minor  who  is  assisting  with a random unannounced inspection in
26    accordance with this chapter shall not be in violation of this chapter.
27        (4)  A minor may possess but not sell or distribute  tobacco  products  in
28    the course of employment, for duties such as stocking shelves or carrying pur-
29    chases to customers' vehicles.
30        (5)  Penalties for violations by a minor. A violation of this chapter by a
31    minor  shall  constitute a misdemeanor and shall be punishable by imprisonment
32    in an appropriate facility not exceeding six (6) months, a fine not  exceeding
33    three hundred dollars ($300) or both such fine and imprisonment.

34        39-5704.  LICENSING  OF TOBACCO PRODUCT RETAILERS. (1)  It shall be unlaw-
35    ful to sell or distribute or offer tobacco products for sale  or  distribution
36    at  retail  or  to  possess  tobacco products with the intention of selling at
37    retail without having first obtained a tobacco license from the department.
38        (2)  The department shall administer  the  licensing  of  tobacco  product
39    retailers  and shall be authorized to ensure compliance with this chapter. The
40    department may promulgate rules in compliance with chapter 52, title 67, Idaho
41    Code, for the administration of this chapter.
42        (3)  Licenses shall be issued annually for the fee of  fifty-five  dollars
43    ($55.00) for each business location to fund the administration of this chapter
44    and to ensure compliance with the requirements of this chapter. A copy of this
45    chapter  and any materials deemed necessary will be provided with each license
46    issued.
47        (4)  A separate license must be obtained for each place of business and is
48    nontransferable to another person, business or location.
49        (5)  Licensees shall display the license in a prominent location.
50        (6)  Licensees shall display a sign in each location  within  a  place  of
51    business  where  tobacco  products  are sold or distributed. This sign must be
52    clearly visible to the customer and must have letters no  less  than  one-half
53    (1/2) inch in height stating "STATE LAW PROHIBITS THE SALE OF TOBACCO PRODUCTS


                                          4

 1    TO  PERSONS  UNDER  THE  AGE OF EIGHTEEN (18) YEARS. PROOF OF AGE REQUIRED." A
 2    copy of this sign, this chapter and any rules  promulgated  pursuant  to  this
 3    chapter may be obtained from the department.
 4        (7)  Licensees are responsible to educate employees as to the requirements
 5    of  this  chapter along with any other local, state or federal tobacco regula-
 6    tions.
 7        (8)  It shall be unlawful for the licensee to  permit  employees  who  are
 8    minors  to sell or distribute tobacco. Exception: Employees who are minors may
 9    possess but not sell or distribute tobacco products in the course  of  employ-
10    ment,  for such duties as stocking shelves or carrying purchases to customers'
11    vehicles.

12        39-5705.  SALE OR DISTRIBUTION OF TOBACCO PRODUCTS  TO  A  MINOR.  (1)  It
13    shall be unlawful to sell, distribute or offer tobacco products to a minor.
14        (2)  Tobacco  products  may  not  be  sold  at  retail to any person under
15    twenty-seven (27) years of age unless the seller first verifies that  person's
16    age  by  means of reliable photographic identification containing the person's
17    date of birth.
18        (3)  It shall be an affirmative defense that the seller of a tobacco prod-
19    uct to a minor in violation of this section had requested and examined a  pho-
20    tographic identification from such person establishing that person's age as at
21    least  eighteen (18) years of age prior to selling such person a tobacco prod-
22    uct. The failure of a seller to request and examine  photographic  identifica-
23    tion  from  a  person  under eighteen (18) years of age prior to the sale of a
24    tobacco product to such person shall be construed against the seller and  form
25    a conclusive basis for the seller's violation of this section.

26        39-5706.  VENDOR  ASSISTED SALES. (1) It shall be unlawful to sell or dis-
27    tribute tobacco products by any means other than vendor assisted  sales  where
28    the customer has no access to the product except through the assistance of the
29    seller. The customer does not take possession of the product until after it is
30    purchased.
31        (2)  It  shall  be  unlawful to sell or distribute tobacco products from a
32    vending machine.
33        (3)  It shall be unlawful to sell  or  distribute  tobacco  products  from
34    self-service displays.
35        (4)  Stores with tobacco products comprising at least seventy-five percent
36    (75%) of total merchandise are exempt from requiring vendor assisted sales, if
37    minors  are not allowed in the store and such prohibition is posted clearly on
38    all entrance doors.

39        39-5707.  OPENED PACKAGES AND SAMPLES. (1) It shall be unlawful to sell or
40    distribute tobacco products for commercial purposes other  than  in  a  sealed
41    package  provided by the manufacturer with all the required warning labels and
42    health warnings.
43        (2)  It shall be unlawful to sell or distribute tobacco products  or  cou-
44    pons  for tobacco products for commercial or promotional purposes at less than
45    the basic cost to members of the general public in public places or at  public
46    events.

47        39-5708.  CIVIL  PENALTIES  FOR  VIOLATIONS   OF LICENSE. Any licensee who
48    fails to comply with any part of this chapter, or any current federal,  state,
49    or  local  law  or  rule  or  regulation regarding the sale or distribution of
50    tobacco products shall be subject to a civil penalty as provided in this  sec-
51    tion  or  have  their  license suspended, pursuant to compliance with the con-


                                          5

 1    tested case provisions of the Idaho administrative procedure act, chapter  52,
 2    title 67, Idaho Code, or both.
 3        (1)  If  a  seller  who  is not a licensee violates section 39-5705, Idaho
 4    Code, and sells or distributes tobacco products to a minor, the  seller  shall
 5    be fined no less than one hundred dollars ($100).
 6        (2)  In the case of a first violation, the licensee shall be fined no less
 7    than  two hundred dollars ($200) and shall be notified in writing of penalties
 8    to be levied for further violations.
 9        (3)  In the case of a second violation in  a  two  (2)  year  period,  the
10    licensee  shall  be  fined  no  less  than four hundred dollars ($400) and the
11    license shall be  suspended  for  no  less  than  thirty  (30)  days.  Tobacco
12    retailers  must  remove  all  tobacco products from all areas accessible to or
13    visible to the public while the license is suspended.
14        (4)  In the case of three (3) or more violations within  a  two  (2)  year
15    period,  the  licensee  shall  be  fined one thousand dollars ($1,000) and the
16    license shall be revoked for not less than six (6) months.  Tobacco  retailers
17    must  remove  all  tobacco products from all areas accessible to or visible to
18    the public while the license is revoked.
19        (5)  All moneys collected for violations pursuant to this section shall be
20    remitted to the prevention of minors' access to tobacco fund created  in  sec-
21    tion 39-5711, Idaho Code.

22        39-5709.  CRIMINAL  PENALTIES  FOR  VIOLATIONS  WITHOUT A LICENSE. Sale or
23    distribution of tobacco products, or any violation of this chapter, without  a
24    license  is  considered  by  the  state  of  Idaho as an effort to subvert the
25    state's public purpose to prevent minors' access to tobacco products.
26        (1)  The sale or distribution of tobacco products by an individual without
27    a license shall  constitute  a  misdemeanor  punishable  by  imprisonment  not
28    exceeding  six  (6)  months  in the county jail and a fine of no less than one
29    hundred dollars ($100). If an individual sells or distributes tobacco products
30    to a minor the fine shall be no less than five hundred dollars ($500).
31        (2)  The sale or distribution of tobacco products by a business without  a
32    license  shall constitute a misdemeanor punishable by imprisonment not exceed-
33    ing six (6) months in the county jail and a fine of no less than five  hundred
34    dollars  ($500) and an additional one thousand dollars ($1,000) per day begin-
35    ning the day following the date of citation. The first seven (7) days of addi-
36    tional fines may be suspended provided that the business is able to prove that
37    it has applied for the license within seven (7) days of the citation.

38        39-5710.  CONDUCT OF ENFORCEMENT ACTIONS. (1) It is the intent of the leg-
39    islature that law enforcement agencies and the department  shall enforce  this
40    chapter and rules promulgated pursuant thereto in a manner that can reasonably
41    be  expected  to significantly reduce the extent to which tobacco products are
42    sold or distributed to minors.
43        (2)  Law enforcement agencies may conduct random, unannounced  inspections
44    at  locations where tobacco products are sold or distributed to ensure compli-
45    ance with this chapter. A copy of all  citations  issued  under  this  chapter
46    shall be submitted to the department.
47        (3)  The  department  shall  conduct  at least two (2) random, unannounced
48    inspections per year, with the assistance of a minor, at all  locations  where
49    tobacco  products are sold or distributed to ensure compliance with this chap-
50    ter.
51        (4)  Minors may assist with random, unannounced inspections with the writ-
52    ten consent of a parent or legal guardian.  When assisting with these  inspec-
53    tions,  minors  shall  not  provide  false  identification, nor make any false


                                          6

 1    statement regarding their age.
 2        (5)  Citizens may file a written complaint of noncompliance of this  chap-
 3    ter with the department, or with a law enforcement agency. Complaints shall be
 4    investigated and the proper enforcement actions taken.
 5        (6)  Within  a reasonable time, not later than two (2) business days after
 6    an inspection has occurred a representative of the business inspected shall be
 7    informed in writing of the results of the inspection.

 8        39-5711.  FUNDING AND CREATION OF PREVENTION OF MINORS' ACCESS TO  TOBACCO
 9    FUND.  There  is  hereby  created the prevention of  minors' access to tobacco
10    fund in the state treasury. Moneys in the fund  shall  be  used  to  fund  the
11    administration,  inspections  and  enforcement  of this chapter. Moneys in the
12    fund may be expended only pursuant to appropriation. The  fund  shall  consist
13    of:
14        (1)  License fees imposed pursuant to this chapter;
15        (2)  The  fines from the civil penalties for violations of license of this
16    chapter pursuant to section 39-5708, Idaho Code;
17        (3)  Moneys from any other source;
18        (4)  The current federal funds that are available to  conduct  inspections
19    shall be utilized by the department according to federal requirements.

20        39-5712.  FEDERAL  REQUIREMENTS. The department shall comply with any fed-
21    eral regulations to obtain funding from any federal  source  for  inspections,
22    compliance  checks, substance abuse prevention and treatment or any other mea-
23    sures designed to reduce minors' access to tobacco products.

24        39-5713.  SEVERABILITY. If any section or provision  of  this  chapter  is
25    held invalid, such invalidity shall not affect other sections or provisions of
26    this chapter.

27        39-5714.  LOCAL  ORDINANCES. Nothing in this chapter shall be construed to
28    prohibit local units of government from  passing  ordinances  which  are  more
29    stringent than the provisions of this chapter.

30        SECTION  3.  This act shall be in full force and effect on and after Janu-
31    ary 1, 1999. The department of health and  welfare  is  hereby  authorized  to
32    begin  rule promulgation and undertake other necessary tasks to administer the
33    provisions of this act prior to January 1, 1999.

Statement of Purpose / Fiscal Impact


    





                             STATEMENT OF PURPOSE
    
      RS 07656
    
    The purpose of this bill is to prevent the illegal sales, theft 
    and easy access of tobacco products to minors in Idaho and to 
    prohibit the possession, distribution, and use of tobacco 
    products by minors. To accomplish this purpose the bill adds to 
    and improves existing law as follows:
    
     1. Improves the definition of tobacco products to include all 
    forms of tobacco. At least two tobacco products that are becoming 
    popular among youngsters, smoking tobacco for "roll your own 
    cigarettes" and snuff intended for nasal use are not included in 
    our current definitions.
    
     2.Prohibits false representation of age for the purpose of 
    obtaining tobacco products and provides penalties for minors who 
    possess, distribute or use tobacco.
    
     3. Requires "vendor assisted sales" which would: * put tobacco 
    products "behind the counter",
    
    
    
    * prevent tobacco theft by minors from self-service displays,
    * discourage attempts by minors to purchase tobacco products,
    * stop minors from purchasing tobacco from vending machines.
    4.Prohibits the sale of tobacco products other than in a 
    sealed
    package with all the required health warnings.
    5.Prohibits the distribution of tobacco samples or coupons for
    samples.
    6.Implements a state retail tobacco license that would locate
    tobacco retailers, allow for inspections to ensure proper
    enforcement and encourage self compliance to avoid possible
    license suspension and loss of tobacco profits.
    7.Provides equity for licensed retailers who sell tobacco
    responsibly by implementing:
    * criminal penalties for those selling tobacco products
    without a license,
    * civil penalties for licensed retailers selling tobacco
    products to a minor,
    penalties for the employee who sells tobacco to a minor,
    an affirmative defense if the seller requested and examined
    photographic identification but the identification turned
    out to be false.
    
    FISCAL NOTE
    
    No additional fiscal impact to the state or local units 
    of government is anticipated.
    
    CONTACT: Caryn Esplin, Idaho PTA
             785-3311 or 344-0851
             
    
    STATEMENT OF PURPOSE/ FISCAL NOTE
    
    S1299