Vote Smart's Synopsis:

Vote to adopt a conference report that expands regulations and increases fees for nicotine sales in Louisiana.

Highlights:

• Defines “nicotine analogue” as any substance with a chemical structure substantially similar to nicotine or with a similar or greater effect on the central nervous system (Sec. 1)

• Prohibits the sale or distribution of products containing nicotine analogues (Sec. 1). 

• Increases permit fees for retail dealers from $25 to $100 per year, vending machine operators from $75 to $300 per year, and wholesale dealers from $75 to $300 per year (Sec. 1). 

• Establishes a 3-tier system for vapor product distribution requiring manufacturers, wholesale dealers, and retail dealers to hold separate permits and prohibits cross-tier ownership or sales (Sec. 1)

• Exempts sales between affiliated entities from the wholesale-to-retail restriction (Sec. 1). 

• Requires wholesale dealers to verify that a retail dealer holds a valid permit before any sale of tobacco, vapor, or alternative nicotine products (Sec. 1). 

• Authorizes the commissioner of the alcohol and tobacco commission to seize or destroy vapor and alternative nicotine products sold by unpermitted dealers (Sec. 1)

• Requires the cost of seizure and disposal to be borne by the person from whom the products are confiscated (Sec. 1). 

• Increases maximum civil penalties for permit violations from $500 to $1,000 for a first offense, and from $2,500 to $4,000 for a third offense (Sec. 1). 

• Establishes a separate penalty schedule for directory violations with fines up to $4,500 and permit revocation for a third offense (Sec. 1). 

• Reduces the cigarette tax by 65% for products designated as modified risk tobacco products by the U.S. Department of Health and Human Service (Sec. 2)

• Increases the cigarette tax stamp discount for qualified wholesale dealers from 5% to 6.5% (Sec. 2).

Full Bill Text