SB 802 is an RJ Reynolds sponsored bill that would:
- ban the sale of e-cigarettes, dissolvables and other new smokefree alternatives to youth,
- require all vapor containing e-cigarette products sold in OK to list the weight of the e-liquid in the product,
- require every e-cigarette dealer (i.e retailer) and wholesaler in OK to obtain a state tobacco wholesaler/retailer license ($250/year),
- require all vapor containing e-cigarette products (i.e. those containing e-liquid) to be stored behind the retailer's counter (requiring purchase assistance from a clerk),
- ban youth from possessing, using or purchasing e-cigarettes, with $100 fine for violators,
- impose a $.05 tax on all vapor containing e-cigarette product up to an ounce (i.e. the weight of the e-liquid), and
- preempt local governments in OK from different licensing, sales to minors bans or taxes on e-cigarettes.
I have two concerns about this bill, one minor and one potentially major.
First, by requiring all vapor containing e-cigarette products sold in OK to list the weight of the e-liquid in the product, SB 666 would require all e-cigarette manufacturers worldwide (that want to sell products in OK) to begin listing the weight (in ounces) of the e-liquid contained in the product. While that would result in labels on all e-cig products that say something like "contains .0005 ounces of vapor product unit". Thus, this one state law could establish a national (and perhaps an international) standard for all e-cigarette products.
My second, and most important concern about SB 802 is that it appears to redefine a "dealer" to include all e-cigarette "consumers" in OK who buy e-cig products from other states (via the Internet or mail order), and as such, requires all such e-cigarette "consumers" to pay a $250 annual licensing fee (see two clauses below with amended language underlined and my concerns highligthed in red).
It is uncertain whether or not the OK government would or could prosecute e-cigarette consumers who buy e-cigarette products via the Internet from out-of-state companies (for failing to get a dealers licencse costing $250/year and for failing to pay the $.05 tax on all purchases from out-of-state. I cannot imaging the OK Revenue Dept prosecuting e-cig consumers for these offenses, but it appears to be possible under these clauses.
Since RJ Reynolds is promoting this legislation, and since Reynolds doesn't selll e-cigs (or cigarettes, smokeless or dissolvables) via the Internet (but rather only in brick-and-mortar stores), I'm concerned that RJ Reynolds might be trying to eventually ban (or at least tax) e-cigarettes sold via the Internet (as Reynolds doesn't want to have to pay taxes that are evaded by consumers who buy over the Internet from out-of-state companies).
Section 415. A. Every dealer and wholesaler of tobacco
products, tobacco-derived products or vapor products in this state,
as a condition of carrying on such business, shall annually secure
from the Oklahoma Tax Commission a written license and shall pay an
annual fee of Two Hundred Fifty Dollars ($250.00) (pg. 29 of SB 802)
(l) The word "dealer" shall include every person, firm,
corporation, or association of persons, who manufactures cigars or,
tobacco products, tobacco-derived products or vapor products for
distribution, sale, use or consumption in the State of Oklahoma.
The word "dealer" is also further defined to mean any person, firm,
corporation or association of persons, who imports cigars or,
tobacco products, tobacco-derived products or vapor products from
any state or foreign country, for distribution, sale, use or
consumption in the State of Oklahoma. (pg 22-23 of SB 802))