*UPDATED* Rhode Island Gov's proposed budget would tax e-cigs at 80%, ANTZ bill would severely restrict online sales

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Bill Godshall

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Bill Godshall

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The budget bill is now set for full House consideration on June 12
http://status.rilin.state.ri.us/documents/calendar-10526.pdf

Article 12 Relating to Revenues (in the Substitute budget bill, HB 7133A) does NOT contain any e-cig tax.
http://webserver.rilin.state.ri.us/BillText/BillText14/HouseText14/Article-012-SUB-A.pdf

Although it appears that this is a huge victory, RI vapers and vendors should remain vigilant as its possible that a Rep could propose an amendment to reinsert the e-cig tax (or perhaps a lower e-cig tax) on the House floor on June 12, and its also possible that could occur in the RI Senate.
 

Bill Godshall

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Good news from Rhode Island

The Rhode Island House passed the budget bill (HB 7133Aaa) after the House Finance Cmte removed the e-cig tax. So it is extremely unlikely that the RI Senate would try to resurrect the e-cig tax.
State of Rhode Island General Assembly
http://webserver.rilin.state.ri.us/BillText/BillText14/HouseText14/H7133Aaa.pdf

And thanks to activist vapers and vendors, the Rhode Island House Judiciary Cmte removed the unwarranted Internet and mail order restrictions on e-cigs from HB 7021, and recommended the stripped down bill to ban the sale of “vapor products” and “alternative nicotine products” to minors, placed on 6/16 House calendar
http://webserver.rilin.state.ri.us/BillText/BillText14/HouseText14/H7021A.pdf

Unfortunately, a Rhode Island Senate bill (SB 3095) was just introduced to impose the same restrictions that the House Judiciary Cmte just removed from HB 7021 (and also ban the sale of “electronic nicotine delivery systems” to minors)
http://webserver.rilin.state.ri.us/BillText/BillText14/SenateText14/S3095.pdf

Hopefully, the RI House will pass HB 7021 next week, and the Senate will concur (instead of passing SB 3095)
 

Bill Godshall

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Rhode Island House substitutes/passes, Senate passes bill (HB 7021) to ban sale of “electronic nicotine delivery systems” to minors, establishes licensing system for dealers (same as SB 3095)
http://webserver.rilin.state.ri.us/BillText/BillText14/HouseText14/H7021Aaa.pdf

Rhode Island Senate passes, House passes bill (SB 3095) to ban sale of “electronic nicotine delivery systems” to minors, establishes licensing system for dealers (same as HB 7021)
http://webserver.rilin.state.ri.us/BillText/BillText14/SenateText14/S3095.pdf

Although these bills establish a separate licensing system for ENDS dealers/distributors than for tobacco dealers/distributors, I have concerns (for vapeshops and others in RI who mix/sell e-liquid and/or mod components, and also for Internet e-cig retailers) about the substituted/approved language in HB 7021, which is the same as SB 3095.

(On page 9), 23-1-56 (e) "A manufacturer or importer may sell or distribute ENDS to a person located or doing business within the state, only if such person is a licensed distributor" would ban ENDS manufacturers and importers in RI (as well as out of state Internet vendors) from retailing ENDS directly to consumers in RI.

Meanwhile (on page 6), 11-9-13.8 (2) bans any ENDS dealer/retail licensee in RI from selling ENDS "in any form other than an original factory-wrapped package", which appears to ban vape shops (and anyone else in RI) from mixing/repackaging/relabeling e-liquid and from mixing/repackaging/relabeling mod components for retail sales to consumers in RI.

But if vape shops (or anyone else who mixes/repackages/relabels e-liquid or mod components) in RI tells the State they are a ENDS "manufacturer" to avoid prosecution for violating 11-9-13.8 (2), then they could be prosecuted for violating 23-1-56 (e) if they retail their products to consumers in RI. It looks like a Catch 22 that would ban vape shops and anyone else in RI from mixing/repackaging/relabeling any e-liquid or mod components for sale directly to RI consumers.

Further complicating matters, the definition of an e-cigarette "manufacturer" in FDA's proposed deeming regulation (and in the FSPTCA) includes everyone who mixes, repackages or relabels e-liquid or any e-cig "components", including different mod components. Even more confusingly, the RI bill defines mods as "ENDS" but defines e-liquid as a "component", while FDA's proposed deeming reg considers e-liquid to be a "tobacco product" and considers mods as "components".

Hopefully, the State of RI will try to accommodate the business practices of all e-cig manufacturers, distributors and retailers in RI, and hopefully they won't attempt to penalize out-of-state Online vendors (for selling products to RI consumers).
 

Bill Godshall

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Rhode Island Governor Chafee signs identical bills (HB 7021 and SB 3095) banning sale of “electronic nicotine delivery systems” to minors, 40th state to do so.
http://webserver.rilin.state.ri.us/BillText/BillText14/HouseText14/H7021Aaa.pdf
http://webserver.rilin.state.ri.us/BillText/BillText14/SenateText14/S3095.pdf
Chafee signs e-cigarette ban bill into law - News, Weather and Classifieds for Southern New England


Unfortunately, if the State of RI strictly enforces this new law, many/most e-liquid manufacturers in RI (i.e. vape shops and online vendors) could move out of state because the newly enacted licensing scheme for e-cigs doesn't allow e-cig manufacturers to sell their products directly to RI consumers (see my posting on the 24th comment above).
 

Berylanna

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Rhode Island Governor Chafee signs identical bills (HB 7021 and SB 3095) banning sale of “electronic nicotine delivery systems” to minors, 40th state to do so.
http://webserver.rilin.state.ri.us/BillText/BillText14/HouseText14/H7021Aaa.pdf
http://webserver.rilin.state.ri.us/BillText/BillText14/SenateText14/S3095.pdf
Chafee signs e-cigarette ban bill into law - News, Weather and Classifieds for Southern New England


Unfortunately, if the State of RI strictly enforces this new law, many/most e-liquid manufacturers in RI (i.e. vape shops and online vendors) could move out of state because the newly enacted licensing scheme for e-cigs doesn't allow e-cig manufacturers to sell their products directly to RI consumers (see my posting on the 24th comment above).

My understanding is that if you have a small business you likely have leases and contracts that mean moving might break you.
 
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Tangaroav

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Well, we have to face the facts. Regulations nation wide are not far away.

The Tobacco Firearms Agency will enforce it with all its might.

For those of us that went the DIY route while refusing to pay 15$ and up for 15ml of liquid, it is going to be rough. With regulations, taxes and the resulting lack of competition expect the prices of everything e-cig to at least double in the next couple of years.

Maybe the indians can help us like they have been helping the smokers.
 

KODIAK (TM)

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Senate Majority Leader Dominick Ruggerio says getting children hooked on nicotine through e-cigarettes is no better than getting them started on regular cigarettes.
Yep. Same thing those evil e-cigs and them cantankerous tobacco-fillied cigarettes. Apples to Apples.

Holy crap folks. (And they wonder why I drink)
 
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