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art.006/5/006/4/006/3/006/2/006/1

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     ARTICLE 6 AS AMENDED

RELATING TO TAXES AND FEES

     SECTION 1. Chapter 3-6 of the General Laws entitled "Manufacturing and Wholesale

Licenses" is hereby amended by adding thereto the following section:

     3-6-18. License fee relief.

     If the holder of a manufacturer’s license obtains a rectifier’s license or another type of

manufacturer’s license for further operations at the same premises, the department will waive the

license fee for the additional license.

     SECTION 2. Section 5-20.5-11 of the General Laws in Chapter 5-20.5 entitled "Real Estate

Brokers and Salespersons" is hereby amended to read as follows:

     5-20.5-11. Fees and license renewals.

     (a) The following fees shall be charged by the director:

     (1) For each application, a fee of ten dollars ($10.00);

     (2) For each examination, a fee, the cost of which is limited to the charge as designated by

the appropriate testing service’s contract with the department of business regulation;

     (3) For each original broker’s license issued, a fee of eighty-five dollars ($85.00) per

annum for the term of the license and for each annual renewal of the license, a fee of eighty-five

dollars ($85.00) per annum for the term of renewal. The total fees for the term of initial licensure

and of renewal must be paid at the time of application for the license;

     (4) For each original salesperson’s license issued, a fee of sixty-five dollars ($65.00) per

annum for the term of the license and for each renewal of the license, a fee of sixty-five dollars

($65.00) per annum for the term of the license. The total fees for the term of initial licensure and

of renewal must be paid at the time of application for the license;

     (5) For each change from one broker to another broker by a salesperson, or a broker, a fee

of twenty-five dollars ($25.00), to be paid by the salesperson or the broker;

     (6) For each broker’s license reinstated after its expiration date, a late fee of one hundred

dollars ($100), in addition to the required renewal fee;

     (7) For each salesperson’s license reinstated after its expiration date, a late fee of one

hundred dollars ($100) in addition to the required renewal fee.

     (b) Every licensed real estate broker and salesperson who desires to renew a license for the

succeeding year term shall apply for the renewal of the license upon a form furnished by the director

and containing information that is required by the director. Any renewal of a license is subject to

the same provisions covering issuance, suspension, and revocation of any license originally issued.

At no time shall any license be renewed without examination if the license has expired beyond a

period of one year.

     SECTION 3. Sections 11-9-13.4, 11-9-13.11, 11-9-13.13 and 11-9-13.20 of the General

Laws in Chapter 11-9 entitled "Children" are hereby amended to read as follows:

     11-9-13.4. Definitions.

     As used in For the purposes of this chapter:

     (1) “Bidi cigarette” means any product that (i) Contains tobacco that is wrapped in

temburni or tender leaf, or that is wrapped in any other material identified by rules of the department

of health that is similar in appearance or characteristics to the temburni or tender leaf, and (ii) Does

not contain a smoke filtering device.

     (2) “Court” means any appropriate district court of the state of Rhode Island.

     (3) “Dealer” is synonymous with the term “retail tobacco products dealer.”

     (4) “Department of behavioral healthcare, developmental disabilities and hospitals” means

the state of Rhode Island behavioral healthcare, developmental disabilities and hospitals

department, its employees, agents, or assigns.

     (5) “Department of taxation” means the state of Rhode Island taxation division, its

employees, agents, or assigns.

     (6) “Electronic nicotine-delivery system” means an electronic device that may be used to

simulate smoking in the delivery of nicotine or other substance to a person inhaling from the device,

and includes, but is not limited to, an electronic cigarette, electronic cigar, electronic cigarillo,

electronic little cigars, electronic pipe, or electronic hookah, “heat not burn products,” e-liquids, e-

liquid products, or any related device and any cartridge or other component of such device.

     (7) “Electronic nicotine-delivery system product” means any combination of electronic

nicotine-delivery system and/or e-liquid and/or any derivative thereof, and/or any e-liquid

container. Electronic nicotine-delivery system products shall not include hemp-derived consumable

cannabidiol (CBD) products as defined in § 2-26-3.

     (8) “E-liquid” and “e-liquid products” means any liquid or substance placed in or sold for

use in an electronic nicotine-delivery system that generally utilizes a heating element that

aerosolizes, vaporizes, or combusts a liquid or other substance containing nicotine or nicotine

derivative:

     (i) Whether the liquid or substance contains nicotine or a nicotine derivative; or

     (ii) Whether sold separately or sold in combination with a personal vaporizer, electronic

nicotine-delivery system, or an electronic inhaler.

     (9) “License” is synonymous with the term “retail tobacco products dealer license” or

“electronic nicotine-delivery system license” or any license issued under chapter 20 of title 44 or

chapter 1 of title 23.

     (10) “License holder” is synonymous with the term “retail tobacco products dealer” or

“electronic nicotine-delivery system license” or any licenses issued under chapter 20 of title 44 or

chapter 1 of title 23.

     (11) “Little cigars” means and includes any roll, made wholly or in part of tobacco,

irrespective of size or shape, and irrespective of whether the tobacco is flavored, adulterated, or

mixed with any other ingredient, where such roll has a wrapper or cover made of tobacco wrapped

in leaf tobacco or any substance containing tobacco paper or any other material and where such roll

has an integrated filter, except where such wrapper is wholly or in greater part made of tobacco and

where such roll has an integrated filter and weighs over four (4) pounds per thousand (1,000).

     (12) “Person” means any individual person, firm, fiduciary, partnership, trust, association,

or corporation licensed as a retail dealer to sell tobacco products within the state.

     (13) “Retail tobacco products dealer” means the holder of a license to sell tobacco products

at retail and shall include holders of all other licenses issued under chapter 20 of title 44 or chapter

1 of title 23.

     (14) “Retail tobacco products dealer license” means a license to sell tobacco products

and/or electronic nicotine-delivery system products as defined in § 44-20-1(7) at retail as issued by

the department of taxation.

     (15) “Spitting tobacco” also means snuff, powdered tobacco, chewing tobacco, dipping

tobacco, pouch tobacco, or smokeless tobacco.

     (16) “Tobacco product(s)” means any product(s) containing, made of, or derived from

tobacco or nicotine that is intended for human consumption or is likely to be consumed, whether

inhaled, absorbed, or ingested by any other means, including, but not limited to, a cigarette, a little

cigar as defined in § 44-20.2-1, and any and all products as defined in § 44-20-1, electronic nicotine-

delivery system products, or any added substance that may be aerosolized, vaporized, or otherwise

delivered by such an electronic nicotine-delivery system device, whether or not that substance

contains nicotine.

     (i) “Tobacco product(s)” does not include drugs, devices, or combination products intended

to treat tobacco or nicotine dependence that are authorized by the United States Food and Drug

Administration, as those terms are defined in the Federal Food, Drug and Cosmetic Act. Nor does

it include such authorized drugs, devices, or combination products with such treatment purpose by

individuals under age twenty-one (21) if prescribed by a licensed prescriber such as a physician,

nurse practitioner, or physician assistant.

     (17) “Underage individual” or “underage individuals” means any individual under the age

of twenty-one (21).

     11-9-13.11. Prohibition on the sale or distribution of tobacco products, including

electronic nicotine-delivery system products, through the mail — Conveyance of tobacco

products, including electronic nicotine-delivery system products, through the mail to

individuals under twenty-one (21) — Proof of age of purchaser required — General rule.

     (a) The distribution, or sale or conveyance of tobacco products, including electronic

nicotine-delivery system products, to individuals under the age of twenty-one (21) via the United

States Postal Service, or by any other public or private postal or package delivery service, shall be

prohibited.

     (b) Any person, including, but not limited to, on-line retailers, selling or distributing

tobacco products in the form of little cigars as defined in § 44-20.2-1, snuff, any and all products

defined in § 44-20-1, or electronic nicotine-delivery system products directly to a consumer

purchaser via the United States Postal Service, or by any other public or private postal or package

delivery service, including orders placed by mail, telephone, facsimile, or internet, shall: (1) before

distributing or selling the tobacco product, including electronic nicotine-delivery system products,

through any of these means, receive both a copy of a valid form of government identification

showing date of birth to verify the purchaser is age twenty-one (21) years or over and an attestation

from the purchaser certifying that the information on the government identification truly and

correctly identifies the purchaser and the purchaser’s current address, and (2) deliver the tobacco

product, including electronic nicotine-delivery system products, to the address of the purchaser

given on the valid form of government identification and by a postal or package delivery service

method that either limits delivery to that purchaser and requires the purchaser to sign personally to

receive the delivery or requires a signature of an individual age twenty-one (21) or over at the

purchaser’s address to deliver the package.

     (c) The attorney general shall bring an action for any violation of this chapter. Any

distribution, or sale or conveyance of a tobacco product, including electronic nicotine-delivery

system products, to an individual under twenty-one (21) years of age via the United States Postal

Service, or by any other public or private postal or package delivery service, shall be subject to an

action against the distributor, or seller or conveyor by the attorney general of the state of Rhode

Island. A minimum fine of one thousand dollars ($1,000) shall be assessed against any distributor,

or seller or conveyor convicted of distributing, or selling or conveying tobacco products, including

electronic nicotine-delivery system products, via the United States postal service, or by any other

public or private postal or package delivery service, for each delivery, or sale or conveyance of a

tobacco product, including electronic nicotine-delivery system products, to an individual under

twenty-one (21) years of age.

     (d) For the purpose of this section, “distribution,” “distributing,” “selling” and “sale” do

not include the acts of the United States Postal Service or other common carrier when engaged in

the business of transporting and delivering packages for others or the acts of a person, whether

compensated or not, who transports or delivers a package for another person without any reason to

know of the package’s contents.

     (e) Any delivery sale of cigarettes shall be made pursuant to the provisions of chapter 20.1

of title 44. The provisions of this section shall apply to each tobacco product listed in subsection

(b) herein, which include electronic nicotine-delivery system products, but shall not apply to any

delivery sale of cigarettes.

     11-9-13.13. Nature and size of penalties.

     (a) Any license holder who violates a requirement of § 11-9-13.6(2) or § 11-9-13.7, display

of specific signage, shall be subject to a fine in court of not less than thirty-five dollars ($35.00),

nor more than five hundred dollars ($500), per civil violation.

     (b) The license holder is responsible for all violations of this section that occur at the

location for which the license is issued. Any license holder who or that violates the prohibition of

§ 11-9-13.8(1) or § 11-9-13.20 shall be subject to civil fines as follows:

     (1) A fine of two hundred fifty dollars ($250) for the first violation within any thirty-six-

month (36) period;

     (2) A fine of five hundred dollars ($500) for the second violation within any thirty-six-

month (36) period;

     (3) A fine of one thousand dollars ($1,000) and a fourteen-day (14) suspension of the

license to sell tobacco products or electronic nicotine-delivery systems for the third violation within

any thirty-six-month (36) period;

     (4) A fine of one thousand five hundred dollars ($1,500) and a ninety-day (90) suspension

of the license to sell tobacco products or electronic nicotine-delivery systems for each violation in

excess of three (3).

     (c) Any person who or that violates a prohibition of § 11-9-13.8(3), sale of single cigarettes;

or § 11-9-13.8(2), regarding factory-wrapped packs as sealed and certified by the manufacturer;

shall be subject to a penalty of five hundred dollars ($500) for each violation.

     (d) The department of taxation and/or the department of health shall not issue a license to

any individual, business, firm, fiduciary, partnership, trust, association, or corporation, the license

of which has been revoked or suspended; to any corporation, an officer of which has had his or her

license revoked or suspended; or to any individual who is, or has been, an officer of a corporation

the license of which has been revoked or suspended so long as such revocations or suspensions are

in effect.

     (e) The court may suspend the imposition of a license suspension of the license secured

from the Rhode Island tax administrator or department of health for a violation of subsections (b)(3)

and (b)(4) of this section if the court finds that the license holder has taken measures to prevent the

sale of tobacco products, including electronic nicotine-delivery system products, to an underage

individual and the license holder can demonstrate to the court that those measures have been taken

and that employees have received training. No person or individual shall sell tobacco products,

including electronic nicotine-delivery system products, at retail without first being trained in the

legal sale of tobacco products, including electronic nicotine-delivery system products. Training

shall teach employees what constitutes a tobacco product, including an electronic nicotine-delivery

system product; legal age of sale; acceptable identification; how to refuse a direct sale to an

underage individual or secondary sale to an individual twenty-one (21) years or older; and all

applicable laws on tobacco sales and distribution. Dealers shall maintain records indicating that the

provisions of this section were reviewed with all employees who conduct, or will conduct, tobacco

product sales, including electronic nicotine-delivery system product sales. Each employee who

sells or will sell tobacco products, including electronic nicotine-delivery system products, shall sign

an acknowledgement form attesting that the provisions of this section were reviewed with him or

her. Each form shall be maintained by the retailer for as long as the employee is so employed and

for no less than one year after termination of employment. The measures to prevent the sale of

tobacco products, including electronic nicotine-delivery system products, to underage individuals

shall be defined by the department of behavioral healthcare, developmental disabilities and

hospitals in rules and regulations.

     11-9-13.20. Packaging of electronic nicotine-delivery system liquid.

     (a) No liquid, whether or not such liquid contains nicotine, that is intended for human

consumption and used in an electronic nicotine-delivery system, as defined in § 11-9-13.4, shall be

sold unless the liquid is contained in child-resistant packaging.

     (b) Any liquid nicotine container that is sold at retail in this state must satisfy the child-

resistant effectiveness standards set forth in 16 C.F.R. § 1700.15(b), when tested in accordance

with the method described in 16 C.F.R. § 1700.20. All licensees under § 23-1-56 § 44-20-2 shall

ensure that any liquid sold by the licensee intended for human consumption and used in an

electronic-nicotine delivery system, as defined in § 11-9-13.4, is sold in a liquid nicotine container

that meets the requirements described and referenced in this subsection.

     (c) For the purposes of this section, “liquid nicotine container” means a bottle or other

container of a liquid or other substance where the liquid or substance is sold, marketed, or intended

for use in a vapor product. A “liquid nicotine container” does not include a liquid or other substance

in a cartridge that is sold, marketed, or intended for use in a vapor product, provided that such

cartridge is prefilled and sealed by the manufacturer and not intended to be opened by the consumer

purchaser.

     (d) Any licensee or any person required to be licensed under § 23-1-56 § 44-20-2 who or

that fails to comply with this section shall be subject to the penalties provided in § 11-9-13.13.

     (e) The licensee is responsible for all violations of this section that occur at the location for

which the license is issued.

     (f) No licensee or person shall be found in violation of this section if the licensee or person

relied in good faith on documentation provided by or attributed to the manufacturer of the

packaging of the aforementioned liquid that such packaging meets the requirements of this section.

     (g) On or after January 1, 2025, any product found to be in violation of this chapter shall

be considered contraband and subject to the confiscation provisions outlined in § 44-20-15.

     SECTION 4. Section 11-9-13.8.1 of the General Laws in Chapter 11-9 entitled "Children"

is hereby repealed.

     11-9-13.8.1. Signs concerning the health effects of tobacco.

     Signs provided by the department of behavioral healthcare, developmental disabilities and

hospitals, or an exact duplicate of it made privately, shall:

     (1) Contain in red bold lettering a minimum of one-quarter of an inch (¼″) high on a white

background the following wording, in both English and Spanish:

     WARNING: SMOKING CIGARETTES CONTRIBUTES TO LUNG DISEASE,

CANCER, HEART DISEASE, STROKE AND RESPIRATORY ILLNESS AND DURING

PREGNANCY MAY RESULT IN LOW BIRTH WEIGHT AND PREMATURE BIRTH.

     (2) The signs shall also include information regarding resources available to Rhode Island

residents who would like to quit smoking.

     (3) The signs shall be displayed prominently for public view wherever tobacco products

are sold at each cash register, each tobacco vending machine, or any other place from which tobacco

products are sold. The signs shall be electronically available in both English and Spanish online at

the department of behavioral healthcare, developmental disabilities and hospitals’ website.

     (4) The department of behavioral healthcare, developmental disabilities and hospitals shall

have the power and authority to develop and disseminate signs pursuant to the requirements of this

section for other tobacco products, including electronic nicotine-delivery system products. The

messaging included in the signs shall be based on the most current scientific evidence.

     SECTION 5. Sections 23-1-55, 23-1-56, 23-1-57 and 23-1-58 of the General Laws in

Chapter 23-1 entitled "Department of Health" are hereby repealed.

     23-1-55. Electronic nicotine delivery system distributor, and dealer licenses required

— Definitions.

     Definitions. Whenever used in §§ 23-1-56 to 23-1-58, unless the context requires

otherwise:

     (1) “Dealer” means any person, whether located within or outside of this state, who sells

or distributes electronic nicotine-delivery system products to a consumer in this state;

     (2) “Distributor” means any person:

     (i) Whether located within or outside of this state, other than a dealer, who sells or

distributes electronic nicotine-delivery system products within or into this state. Such term shall

not include any electronic nicotine-delivery system products manufacturer, export warehouse

proprietor, or importer with a valid permit, if such person sells or distributes electronic nicotine-

delivery system products in this state only to licensed distributors or to an export warehouse

proprietor or another manufacturer with a valid permit;

     (ii) Selling electronic nicotine-delivery system products directly to consumers in this state

by means of at least twenty-five (25) electronic nicotine-delivery system product vending

machines;

     (iii) Engaged in this state in the business of manufacturing electronic nicotine-delivery

system products or any person engaged in the business of selling electronic nicotine-delivery

system products to dealers, or to other persons, for the purpose of resale only; provided that seventy-

five percent (75%) of all electronic nicotine-delivery system products sold by that person in this

state are sold to dealers or other persons for resale and selling electronic nicotine-delivery system

products directly to at least forty (40) dealers or other persons for resale; or

     (iv) Maintaining one or more regular places of business in this state for that purpose;

provided, that seventy-five percent (75%) of the sold electronic nicotine-delivery system products

are purchased directly from the manufacturer and selling electronic nicotine-delivery system

products directly to at least forty (40) dealers or other persons for resale;

     (3) “Electronic nicotine-delivery system” means the products as defined in § 11-9-13.4(6).

     23-1-56. License.

     (a) Each person engaging in the business of selling electronic nicotine-delivery system

products in the state, including any distributor or dealer, shall secure a license annually from the

department before engaging in that business or continuing to engage in it. A separate application

and license is required for each place of business operated by a distributor or dealer. If the applicant

for a license does not have a place of business in this state, the license shall be issued for such

applicant’s principal place of business, wherever located. A licensee shall notify the department

within thirty (30) days in the event that it changes its principal place of business. A separate license

is required for each class of business if the applicant is engaged in more than one of the activities

required to be licensed by this section. No person shall maintain or operate, or cause to be operated,

a vending machine for electronic nicotine-delivery systems without procuring a dealer’s license for

each machine.

     (b) The director shall have authority to set a reasonable fee not to exceed twenty-five

dollars ($25.00) for the issuance of the license.

     (c) Each issued license shall be prominently displayed on the premises, if any, covered by

the license.

     (d) The director shall create and maintain a website setting forth the identity of all licensed

persons under this section, itemized by type of license possessed, and shall update the site no less

frequently than six (6) times per year.

     (e) A manufacturer or importer may sell or distribute electronic nicotine-delivery systems

to a person located or doing business within the state only if such person is a licensed distributor.

An importer may obtain electronic nicotine-delivery systems only from a licensed manufacturer. A

distributor may sell or distribute electronic nicotine-delivery systems to a person located or doing

business within this state only if such person is a licensed distributor or dealer. A distributor may

obtain electronic nicotine-delivery systems only from a licensed manufacturer, importer, or

distributor. A dealer may obtain electronic nicotine-delivery systems only from a licensed

distributor.

     (f)(1) No license under this chapter may be granted, maintained, or renewed if the

applicant, or any combination of persons owning directly or indirectly any interests in the applicant:

     (i) Is delinquent in any tax filings for one month or more; or

     (ii) Had a license under this chapter revoked within the past two (2) years.

     (2) No person shall apply for a new license, or renewal of a license and no license shall be

issued or renewed for any person, unless all outstanding fines, fees, or other charges relating to any

license held by that person have been paid.

     (3) No license shall be issued relating to a business at any specific location until all prior

licenses relating to that location have been officially terminated and all fines, fees, or charges

relating to the prior licenses have been paid or otherwise resolved or if the director has found that

the person applying for the new license is not acting as an agent for the prior licensee who is subject

to any such related fines, fees, or charges that are still due. Evidence of such agency status includes,

but is not limited to, a direct familial relationship and/or employment, contractual, or other formal

financial or business relationship with the prior licensee.

     (4) No person shall apply for a new license pertaining to a specific location in order to

evade payment of any fines, fees, or other charges relating to a prior license for that location.

     (5) No new license shall be issued for a business at a specific location for which a license

has already issued unless there is a bona fide, good-faith change in ownership of the business at

that location.

     (6) No license or permit shall be issued, renewed or maintained for any person, including

the owners of the business being licensed, who has been convicted of violating any criminal law

relating to tobacco products and/or electronic nicotine-delivery system products, the payment of

taxes, or fraud, or has been ordered to pay civil fines of more than twenty-five thousand dollars

($25,000) for violations of any civil law relating to tobacco products and/or electronic nicotine-

delivery system products, the payment of taxes, or fraud.

     23-1-57. Penalties for unlicensed business.

     Any distributor or dealer who sells, offers for sale, or possesses with intent to sell,

electronic nicotine-delivery system products without a license as provided in § 23-1-56, shall be

fined in accordance with the provisions of, and the penalties contained in, § 23-1-58.

     23-1-58. Penalty for operating without a dealer license.

     (a) Any individual or business who violates this chapter by selling or conveying an

electronic nicotine-delivery system product without a retail license shall be cited for that violation

and shall be required to appear in district court for a hearing on the citation.

     (b) Any individual or business cited for a violation hereunder shall:

     (1) Either post a five hundred dollar ($500) bond with the district court within ten (10) days

of the citation; or

     (2) Sign and accept the citation indicating a promise to appear in court.

     (c) An individual or business who or that has accepted the citation may:

     (1) Pay the five hundred dollar ($500) fine, either by mail or in person, within ten (10) days

after receiving the citation; or

     (2) If that individual or business has posted a bond, forfeit the bond by not appearing at the

scheduled hearing. If the individual or business cited pays the five hundred dollar ($500) fine or

forfeits the bond, that individual or business is deemed to have admitted the cited violation and to

have waived the right to a hearing on the issue of commission on the violation.

     (d) The court, after a hearing on a citation, shall make a determination as to whether a

violation has been committed. If it is established that the violation did occur, the court shall impose

a five hundred dollar ($500) fine in addition to any court costs or fees.

     SECTION 6. Section 23-3-25 of the General Laws in Chapter 23-3 entitled "Vital Records"

is hereby amended to read as follows:

     23-3-25. Fees for copies and searches

     (a) The state registrar shall charge fees for searches and copies as follows:

     (1) For a search of two (2) consecutive calendar years under one name and for issuance of

a certified copy of a certificate of birth, fetal death, death, or marriage, or a certification of birth, or

a certification that the record cannot be found, and each duplicate copy of a certificate or

certification issued at the same time, the fee is as set forth in § 23-1-54.

     (2) For each additional calendar year search, if applied for at the same time or within three

(3) months of the original request and if proof of payment for the basic search is submitted, the fee

is as set forth in § 23-1-54.

     (3) For providing expedited service, the additional handling fee is as set forth in § 23-1-54.

     (4) For processing of adoptions, legitimations, or paternity determinations as specified in

§§ 23-3-14 and 23-3-15, there shall be a fee as set forth in § 23-1-54.

     (5) For making authorized corrections, alterations, and additions, the fee is as set forth in

§ 23-1-54; provided, no fee shall be collected for making authorized corrections or alterations and

additions on records filed before one year of the date on which the event recorded has occurred.

     (6) For examination of documentary proof and the filing of a delayed record, there is a fee

as set forth in § 23-1-54; and there is an additional fee as set forth in § 23-1-54 for the issuance of

a certified copy of a delayed record.

     (b) Fees collected under this section by the state registrar shall be deposited in the general

fund of this state, according to the procedures established by the state treasurer.

     (c) The local registrar shall charge fees for searches and copies of records as follows:

     (1) For a search of two (2) consecutive calendar years under one name and for issuance of

a certified copy of a certificate of birth, fetal death, death, delayed birth, or marriage, or a

certification of birth or a certification that the record cannot be found, the fee is twenty dollars

($20.00). For each duplicate copy of a certificate or certification issued at the same time, the fee is

fifteen dollars ($15.00).

     (2) For each additional calendar year search, if applied for at the same time or within three

(3) months of the original request and if proof of payment for the basic search is submitted, the fee

is two dollars ($2.00).

     (d) Fees collected under this section by the local registrar shall be deposited in the city or

town treasury according to the procedures established by the city or town treasurer except that six

dollars ($6.00) of the certified copy fees shall be submitted to the state registrar for deposit in the

general fund of this state.

     (e) To acquire, maintain, and operate an electronic statewide registration system (ESRS),

the state registrar shall assess a surcharge of no more than five dollars ($5.00) for a mail-in certified

records request, no more than three dollars ($3.00) for each duplicate certified record, and no more

than two dollars ($2.00) for a walk-in certified records request or a certified copy of a vital record

requested for a local registrar. Notwithstanding the provisions of subsection (d), any such

surcharges collected by the local registrar shall be submitted to the state registrar. Any funds

collected from the surcharges listed above shall be deposited into the information technology

restricted receipt account (ITRR account) established pursuant to § 42-11-2.5(a) as general

revenues.

     SECTION 7. Section 23-27.3-108.2 of the General Laws in Chapter 23-27.3 entitled "State

Building Code" is hereby amended to read as follows:

     23-27.3-108.2. State building commissioner’s duties.

     (a) This code shall be enforced by the state building commissioner as to any structures or

buildings or parts thereof that are owned or are temporarily or permanently under the jurisdiction

of the state or any of its departments, commissions, agencies, or authorities established by an act

of the general assembly, and as to any structures or buildings or parts thereof that are built upon

any land owned by or under the jurisdiction of the state; provided, however, that for the purposes

of this section structures constituting tents and/or membrane frame structures as defined in this state

building code and any regulations promulgated hereunder shall be subject to an annual certification

process to be established by the state building commissioner in conjunction with the state fire

marshal and shall not be subject to recurring permit and fee requirements as otherwise required by

this code.

     (b) Permit fees for the projects shall be established by the committee. The fees shall be

deposited as general revenues.

     (c)(1) The local cities and towns shall charge each permit applicant an additional .1 (.001)

percent levy of the total construction cost for each permit issued. The levy shall be limited to a

maximum of fifty dollars ($50.00) for each of the permits issued for one- and two-family (2)

dwellings. This additional levy shall be transmitted monthly to the state building office at the

department of business regulation, and shall be used to staff and support the purchase or lease and

operation of a web-accessible service and/or system to be utilized by the state and municipalities

for uniform, statewide electronic plan review, permit management, and inspection system and other

programs described in this chapter. The fee levy shall be deposited as general revenues.

     (2) On or before July 1, 2013, the building commissioner shall develop a standard statewide

process for electronic plan review, permit management, and inspection. The process shall include,

but not be limited to: applications; submission of building plans and plans for developments and

plots; plan review; permitting; inspections; inspection scheduling; project tracking; fee calculation

and collections; and workflow and report management.

     (3) On or before December 1, 2013, the building commissioner, with the assistance of the

office of regulatory reform, shall implement the standard statewide process for electronic plan

review, permit management, and inspection. In addition, the building commissioner shall develop

a technology and implementation plan for a standard web-accessible service or system to be utilized

by the state and municipalities for uniform, statewide electronic plan review, permit management,

and inspection. The plan shall include, but not be limited to: applications; submission of building

plans and plans for developments and plots; plan review; permitting; inspections; inspection

scheduling; project tracking; fee calculation and collections; and workflow and report management.

     (d) The building commissioner shall, upon request by any state contractor described in §

37-2-38.1, review, and when all conditions for certification have been met, certify to the state

controller that the payment conditions contained in § 37-2-38.1 have been met.

     (e) The building commissioner shall coordinate the development and implementation of

this section with the state fire marshal to assist with the implementation of § 23-28.2-6. On or before

January 1, 2022, the building commissioner shall promulgate rules and regulations to implement

the provisions of this section and § 23-27.3-115.6.

     (f) The building commissioner shall submit, in coordination with the state fire marshal, a

report to the governor and general assembly on or before April 1, 2013, and each April 1 thereafter,

providing the status of the web-accessible service and/or system implementation and any

recommendations for process or system improvement. In every report submitted on or after April,

2024, the building commissioner shall provide the following information:

     (1) The identity of every municipality in full compliance with the provisions § 23-27.3-

115.6 and the rules and regulations promulgated pursuant to the provisions of this section;

     (2) The identity of every municipality failing to fully implement and comply with the

provisions of § 23-27.3-115.6 and/or the rules and regulations promulgated pursuant to the

provisions of this section, and the nature, extent, and basis or reason for the failure or

noncompliance; and

     (3) Recommendations to achieve compliance by all municipalities with the provisions of §

23-27.3-115.6 and the rules and regulations promulgated pursuant to this section.

     (g) The building commissioner shall assist with facilitating the goals and objectives set

forth in § 28-42-84(a)(9).

     SECTION 8. Section 23-28.19-1 of the General Laws in Chapter 23-28.19 entitled "Tents

— Grandstands — Air-Supported Structures" is hereby amended to read as follows:

     23-28.19-1. Tents for which license required — Application and issuance.

     (a) No tent exceeding three hundred fifty square feet (350 sq. ft.) in area shall be erected,

maintained, operated, or used in any city or town in this state except under a license from the

licensing authorities of the city or town; provided, however, that for tent installations on state

property or in jurisdictions otherwise subject to the authority of the state fire marshal, structures

constituting tents and/or membrane frame structures as defined in the state building code and any

regulations promulgated thereunder, shall be subject to an annual certification process to be

established by the state building commissioner in conjunction with the state fire marshal pursuant

to § 23-27.3-108.2 and shall not be subject to recurring permit and fee requirements as otherwise

required by the code. The license shall not be issued for a period exceeding thirty (30) days and

shall be revocable for cause. Application shall be made on proper form and, when deemed

necessary by the licensing authorities, shall include plans drawn to scale, showing exits, aisles, and

seating arrangements and details of the structural support of tent, seats, and platforms, etc. No

license shall be issued until the provisions of this chapter have been complied with, and approval

has been obtained from the building department, the police department, the fire department, and,

when tents are to be used for fifty (50) or more persons, from each and every department having

jurisdiction over places of assembly.

     (b) For the purposes of this section, the fire marshal shall have no jurisdiction over tents

on the property of one-(1) or two-(2) family private dwellings. Nothing contained in this section

shall prohibit the fire marshal from requiring a license for a tent smaller than three hundred fifty

square feet (350 sq. ft.) where other sections of the fire code deem it necessary, including, but not

limited to, use, occupancy, opening, exposure, an increase in occupancy of a commercial

establishment, and any other similar factors.

     (c) The state fire marshal shall provide training to all assistant deputy fire marshals as

defined by § 23-28.2-9 as soon as practicable to ensure the consistent enforcement of the fire safety

code pursuant to § 23-28.2-4.

     SECTION 9. Section 44-1-34 of the General Laws in Chapter 44-1 entitled "State Tax

Officials" is hereby amended to read as follows:

     44-1-34. Tax administrator to prepare list of delinquent taxpayers — Notice — Public

inspection.

     (a) Notwithstanding any other provision of law, the tax administrator may, on a quarterly

basis,

     (1) Prepare a list of the one hundred (100) delinquent taxpayers under chapter 44-30 who

owe the largest amount at least fifty thousand dollars ($50,000) of state tax and whose taxes have

been unpaid for a period in excess of ninety (90) days following the date their tax was due.

     (2) Prepare a list of the one hundred (100) delinquent taxpayers collectively under chapters

44-11, 44-12, 44-13, 44-14, 44-15, 44-17, 44-18, and 44-20, who owe the largest amount at least

fifty thousand dollars ($50,000) of state tax and whose taxes have been unpaid for a period in excess

of ninety (90) days following the date their tax was due.

     (3) Each list may contain the name and address of each delinquent taxpayer, the type of tax

levied, and the amount of the delinquency, including interest and penalty, as of the end of the

quarter. No taxpayer shall be included on such list if the tax assessment in question is the subject

of an appeal.

     (b) The tax administrator shall not list any delinquent taxpayer until such time as he or she

gives the delinquent taxpayer thirty (30) days’ notice of intent to publish the taxpayer’s

delinquency. Said notice shall be sent to the taxpayer’s last known address by regular and certified

mail. If during said thirty (30) day period the taxpayer makes satisfactory arrangement for payment

of the delinquent tax, the name of such taxpayer shall not be published as long as the taxpayer does

not default on any payment agreement entered into with the division of taxation.

     (c) Any such list prepared by the tax division shall be available to the public for inspection

by any person and may be published by the tax administrator on the tax division website.

     SECTION 10. Section 44-5.3-2 of the General Laws in Chapter 44-5.3 entitled "Statewide

Tangible Property Tax Exemption" is hereby amended to read as follows:

     44-5.3-2. Reimbursement of lost tax revenue.

     (a) Beginning in fiscal year 2025 and for each fiscal year thereafter, cities, towns, and fire

districts shall receive reimbursements, as set forth in this section, from state general revenues for

lost tax revenues due to the reduction of the tangible property tax resulting from the statewide

exemption set forth in § 44-5.3-1.

     (b) Beginning in fiscal year 2025, and for each fiscal year thereafter, cities, towns, and fire

districts shall receive a reimbursement equal to the tangible property levy for the assessment date

of December 31, 2022, minus the tangible personal property levy for the assessment date of

December 31, 2023 tangible property tax revenues lost for the assessment date of December 31,

2023 due to application of the statewide exemption amount set forth in § 44-5.3-1, which shall be

calculated by dividing the tangible personal property assessment for the assessment date of

December 31, 2023 lost due to the statewide exemption amount set forth in § 44-5.3-1 by one

thousand (1000) multiplied by the tangible personal property tax rate for the assessment date of

December 31, 2023. If such lost assessment is unknown, cities, towns, and fire districts shall utilize

internal policies and procedures in place as of December 31, 2022 to estimate the lost assessment.

     (c) Reimbursements shall be distributed in full to cities, towns, and fire districts on

September 30, 2024, and every September 30 thereafter; provided, however, that reimbursement

shall not be provided to any city, town, or fire district in any year in which it has failed to provide

to the division of municipal finance its certified tax roll in accordance with § 44-5-22 or any other

information required by the division of municipal finance to calculate the reimbursement amount.

     The division of municipal finance may rely solely upon such information provided to it in

any year when calculating the reimbursement amount but may, although shall not be required to,

also audit such information.

     SECTION 11. Sections 44-11-2.3, 44-11-4.1 and 44-11-11 of the General Laws in Chapter

44-11 entitled "Business Corporation Tax" are hereby amended to read as follows:

     44-11-2.3. Pass-through entities — Election to pay state income tax at the entity level.

     (a) Definitions. As used in this section:

     (1) “Election” means the annual election to be made by the pass-through entity by filing

the prescribed tax form and remitting the appropriate tax.

     (2) “Net income” means the net ordinary income, net rental real estate income, other net

rental income, guaranteed payments, and other business income less specially allocated

depreciation and deductions allowed pursuant to § 179 of the United States Revenue Code (26

U.S.C. § 179), all of which would be reported on federal tax form schedules C and E. Net income

for purposes of this section does not include specially allocated investment income or any other

types of deductions.

     (3) “Owner” means an individual who is a shareholder of an S Corporation; a partner in a

general partnership, a limited partnership, or a limited liability partnership; a member of a limited

liability company, a beneficiary of a trust; or a sole proprietor.

     (4) “Pass-through entity” means a corporation that for the applicable tax year is treated as

an S Corporation under I.R.C. 1362(a) (26 U.S.C. § 1362(a)), or a general partnership, limited

partnership, limited liability partnership, trust, limited liability company or unincorporated sole

proprietorship that for the applicable tax year is not taxed as a corporation for federal tax purposes

under the state’s regulations.

     (5) “State tax credit” means the amount of tax paid by the pass-through entity at the entity

level that is passed through to an owner on a pro rata basis. For tax years beginning on or after

January 1, 2025, “state tax credit” means ninety percent (90%) of the amount of tax paid by the

pass-through entity at the entity level that is passed through to an owner on a pro rata basis.

     (b) Elections.

     (1) For tax years beginning on or after January 1, 2019, a pass-through entity may elect to

pay the state tax at the entity level at the rate of five and ninety-nine hundredths percent (5.99%).

     (2) If a pass-through entity elects to pay an entity tax under this subsection, the entity shall

not have to comply with the provisions of § 44-11-2.2 regarding withholding on non-resident

owners. In that instance, the entity shall not have to comply with the provisions of § 44-11-2.2

regarding withholding on non-resident owners.

     (c) Reporting.

     (1) The pass-through entity shall report the pro rata share of the state income taxes paid by

the entity which sums will be allowed as a state tax credit for an owner on his or her personal

income tax return.

     (2) The pass-through entity shall also report the pro rata share of the state income taxes

paid by the entity as an income (addition) modification to be reported by an owner on his or her

personal income tax returns.

     (d) State tax credit shall be the amount of tax paid by the pass-through entity, at the entity

level, which is passed through to the owners, on a pro rata basis. For tax years beginning on or after

January 1, 2025, the state tax credit shall be ninety percent (90%) of the amount of tax paid by the

pass-through entity, at the entity level, which is passed through to the owners, on a pro rata basis.

     (e) A similar type of tax imposed by another state on the owners’ income paid at the state

entity level shall be deemed to be allowed as a credit for taxes paid to another jurisdiction in

accordance with the provisions of § 44-30-18.

     (f) “Combined reporting” as set forth in § 44-11-4.1 shall not apply to reporting under this

section.

     44-11-4.1. Combined reporting.

     (a) For tax years beginning on or after January 1, 2015, each C corporation which is part

of an unitary business with one or more other corporations must file a return, in a manner prescribed

by the tax administrator, for the combined group containing the combined income, determined

under this section, of the combined group.

     (b) An affiliated group of C corporations, as defined in section 1504 of the Internal Revenue

Code, may elect to be treated as a combined group with respect to the combined reporting

requirement imposed by § 44-11-4.1(a) for the taxable year in lieu of an unitary business group.

The election shall be upon the condition that all C corporations which at any time during the taxable

year have been members of the affiliated group consent to be included in such group. The filing of

a consolidated return for the combined group shall be considered as such consent. Such election

may not be revoked in less than five (5) years unless approved by the tax administrator.

     (c) The use of a combined report does not disregard the separate identities of the taxpayer

members of the combined group. Each taxpayer member is responsible for tax based on its taxable

income or loss apportioned to this state.

     (d) Members of a combined group shall exclude as a member and disregard the income and

apportionment factors of any corporation not incorporated in the United States (a “non US

corporation”) if the sales factors outside the United States is eighty percent (80%) or more. If a non

US corporation is includible as a member in the combined group, to the extent that such non US

corporation’s income is subject to the provisions of a federal income tax treaty, such income is not

includible in the combined group net income. Such member shall also not include in the combined

report any expenses or apportionment factors attributable to income that is subject to the provisions

of a federal income tax treaty. For purposes of this chapter, “federal income tax treaty” means a

comprehensive income tax treaty between the United States and a foreign jurisdiction, other than a

foreign jurisdiction which is defined as a tax haven; provided, however, that if the tax administrator

determines that a combined group member non US corporation is organized in a tax haven that has

a federal income treaty with the United States, its income subject to a federal income tax treaty,

and any expenses or apportionment factors attributable to such income, shall not be included in the

combined group net income or combined report if: (i) the transactions conducted between such non

US corporation and other members of the combined group are done on an arm’s length basis and

not with the principal purpose to avoid the payment of taxes due under this chapter; or (ii) the

member establishes that the inclusion of such net income in combined group net income is

unreasonable.

     (e) Net operating losses. A tracing protocol shall apply to net operating losses created

before January l, 2015. Such net operating losses shall be allowed to offset only the income of the

corporation that created the net operating loss; the net operating loss cannot be shared with other

members of the combined group. No deduction is allowable for a net operating loss sustained

during any taxable year in which a taxpayer was not subject to Rhode Island business corporation

tax. For net operating losses created in tax years beginning on or after January 1, 2015 such loss

allowed shall be the same as the net operating loss deduction allowed under section 172 of the

internal revenue code for the combined group, except that:

     (1) Any net operating loss included in determining the deduction shall be adjusted to reflect

the inclusions and exclusions from entire net income required by § 44-11-11 (a) and § 44-11-11.1;

     (2) The deduction shall not include any net operating loss sustained during any taxable year

in which the member was not subject to the tax imposed by this chapter; and

     (3) Limitation on 26 U.S.C. § 172 deduction.

     (i) The deduction shall not exceed the deduction for the taxable year allowable under

section 172 of the internal revenue code; provided, that the deduction for a taxable year may not be

carried back to any other taxable year for Rhode Island purposes but shall only be allowable on a

carry forward basis for the five (5) succeeding taxable years.; and

     (ii) For any taxable year beginning on or after January 1, 2025, the deduction shall not

exceed the deduction for the taxable year allowable under 26 U.S.C. § 172; provided that, the

deduction for a taxable year may not be carried back to any other taxable year for Rhode Island

purposes, but shall only be allowable on a carry forward basis for the twenty (20) succeeding

taxable years.

     (f) Tax credits and tax rate reduction.

     (1) A tracing protocol shall apply to Rhode Island tax credits earned before tax years

beginning on or before January 1, 2015. Such Rhode Island tax credits shall be allowed to offset

only the tax liability of the corporation that earned the credits; the Rhode Island tax credits cannot

be shared with other members of the combined group. Rhode Island tax credits earned in tax years

beginning on or after January 1, 2015, may be applied to other members of the group.

     (2) The tax rate reductions authorized under chapter 64.5 of title 42 (Jobs Development

Act) and chapter 64.14 of title 42 (I-195 Redevelopment Act of 2011) shall be allowed against the

net income of the entire combined group.

     (g) The tax administrator shall prescribe and amend, from time to time, rules and

regulations as he or she may deem necessary in order that the tax liability of any group of

corporations filing as a combined group and each corporation in the combined group, liable to

taxation under this chapter, may be determined, computed, assessed, collected, and adjusted in a

manner as to clearly reflect the combined income of the combined group and the individual income

of each member of the combined group. Such rules and regulations, shall include but are not be

limited to, issues such as the inclusion or exclusion of a corporation in the combined group, the

characterization and sourcing of each member’s income, and whether certain common activities

constitute the conduct of a unitary business.

     (h) The tax administrator shall on or before March 15, 2018, based upon the actual tax

filings of companies under this act for a two year period, submit a report to the chairperson of the

house finance committee and the senate finance committee and the house fiscal advisor and the

senate fiscal advisor analyzing the policy and fiscal ramifications of the changes enacted to business

corporations tax statutes, as enacted in budget article 12 of the Fiscal Year 2015 appropriations act.

The report shall include but not be limited to the impact upon categories of business, size of

business and similar information as contained in § 44-11-45 [repealed], which required the original

report.

     44-11-11. “Net income” defined.

     (a)(1) “Net income” means, for any taxable year and for any corporate taxpayer, the taxable

income of the taxpayer for that taxable year under the laws of the United States, plus:

     (i) Any interest not included in the taxable income;

     (ii) Any specific exemptions;

     (iii) The tax imposed by this chapter;

     (iv) For any taxable year beginning on or after January 1, 2020, the amount of any Paycheck

Protection Program loan forgiven for federal income tax purposes as authorized by the Coronavirus

Aid, Relief, and Economic Security Act and/or the Consolidated Appropriations Act, 2021 and/or

any other subsequent federal stimulus relief packages enacted by law, to the extent that the amount

of the loan forgiven exceeds $250,000; and minus:

     (v) Interest on obligations of the United States or its possessions, and other interest exempt

from taxation by this state; and

     (vi) The federal net operating loss deduction.; and

     (vii) For any taxable year beginning on or after January 1, 2025, in the case of a taxpayer

that is licensed in accordance with chapters 28.6 and/or 28.11 of title 21, the amount equal to any

expenditure that is eligible to be claimed as a federal income tax deduction but is disallowed under

26 U.S.C. § 280E.

     (2) All binding federal elections made by or on behalf of the taxpayer applicable either

directly or indirectly to the determination of taxable income shall be binding on the taxpayer except

where this chapter or its attendant regulations specifically modify or provide otherwise. Rhode

Island taxable income shall not include the “gross-up of dividends” required by the federal Internal

Revenue Code to be taken into taxable income in connection with the taxpayer’s election of the

foreign tax credit.

     (b) A net operating loss deduction shall be allowed, which shall be the same as the net

operating loss deduction allowed under 26 U.S.C. § 172, except that:

     (1) Any net operating loss included in determining the deduction shall be adjusted to reflect

the inclusions and exclusions from entire net income required by subsection (a) of this section and

§ 44-11-11.1;

     (2) The deduction shall not include any net operating loss sustained during any taxable year

in which the taxpayer was not subject to the tax imposed by this chapter; and

     (3) Limitation on 26 U.S.C. § 172 deduction.

     (i) The deduction shall not exceed the deduction for the taxable year allowable under 26

U.S.C. § 172; provided, that the deduction for a taxable year may not be carried back to any other

taxable year for Rhode Island purposes but shall only be allowable on a carry forward basis for the

five (5) succeeding taxable years.; and

     (ii) For any taxable year beginning on or after January 1, 2025, the deduction shall not

exceed the deduction for the taxable year allowable under 26 U.S.C. § 172; provided that, the

deduction for a taxable year may not be carried back to any other taxable year for Rhode Island

purposes, but shall only be allowable on a carry forward basis for the twenty (20) succeeding

taxable years.

     (c) “Domestic international sales corporations” (referred to as DISCs), for the purposes of

this chapter, will be treated as they are under federal income tax law and shall not pay the amount

of the tax computed under § 44-11-2(a). Any income to shareholders of DISCs is to be treated in

the same manner as it is treated under federal income tax law as it exists on December 31, 1984.

     (d) A corporation that qualifies as a “foreign sales corporation” (FSC) under the provisions

of subchapter N, 26 U.S.C. § 861 et seq., and that has in effect for the entire taxable year a valid

election under federal law to be treated as a FSC, shall not pay the amount of the tax computed

under § 44-11-2(a). Any income to shareholders of FSCs is to be treated in the same manner as it

is treated under federal income tax law as it exists on January 1, 1985.

     (e) For purposes of a corporation’s state tax liability, any deduction to income allowable

under 26 U.S.C. § 1400Z-2(c) may be claimed in the case of any investment held by the taxpayer

for at least seven years. The division of taxation shall promulgate, in its discretion, rules and

regulations relative to the accelerated application of deductions under 26 U.S.C. § 1400Z-2(c).

     SECTION 12. Section 44-18-30.1 of the General Laws in Chapter 44-18 entitled "Sales

and Use Taxes — Liability and Computation" is hereby amended to read as follows:

     44-18-30.1. Application for certificate of exemption — Fees. Application for

certificate of exemption.

     A fee of twenty-five dollars ($25.00) shall be paid by all All organizations applying for

seeking a certificate of exemption from the Rhode Island sales and use tax under § 44-18-30(5)(i)

shall apply for a certificate of exemption on forms prescribed by the tax administrator. The

certificate of exemption shall be valid for four (4) years from the date of issue. All fees collected

under this section shall be allocated to the tax administrator for enforcement and collection of all

taxes. All certificates issued prior to the effective date of this section shall expire four (4) years

from the effective date of this section.

     SECTION 13. Sections 44-20-12 and 44-20-13 of the General Laws in Chapter 44-20

entitled "Cigarette and Other Tobacco Products Tax" are hereby amended to read as follows:

     44-20-12. Tax imposed on cigarettes sold.

     A tax is imposed on all cigarettes sold or held for sale in the state. The payment of the tax

to be evidenced by stamps, which may be affixed only by licensed distributors to the packages

containing such cigarettes. Any cigarettes on which the proper amount of tax provided for in this

chapter has been paid, payment being evidenced by the stamp, is not subject to a further tax under

this chapter. The tax is at the rate of two hundred twelve and one-half (212.5) two hundred twenty-

five (225) mills for each cigarette.

     44-20-13. Tax imposed on unstamped cigarettes.

     A tax is imposed at the rate of two hundred twelve and one-half (212.5) two hundred

twenty-five (225) mills for each cigarette upon the storage or use within this state of any cigarettes

not stamped in accordance with the provisions of this chapter in the possession of any consumer

within this state.

     SECTION 14. Chapter 44-20 of the General Laws entitled "Cigarette and Other Tobacco

Products Tax" is hereby amended by adding thereto the following section:

     44-20-12.7. Floor stock tax on cigarettes and stamps.

     (a) Each person engaging in the business of selling cigarettes at retail in this state shall pay

a tax or excise to the state for the privilege of engaging in that business during any part of the

calendar year 2024. In calendar year 2024, the tax shall be measured by the number of cigarettes

held by the person in this state at 12:01 a.m. on September 1, 2024, and is computed at the rate of

twelve and one-half (12.5) mills for each cigarette on September 1, 2024.

     (b) Each distributor licensed to do business in this state pursuant to this chapter shall pay a

tax or excise to the state for the privilege of engaging in that business during any part of the calendar

year 2024. The tax is measured by the number of stamps, whether affixed or to be affixed to

packages of cigarettes, as required by § 44-20-28. In calendar year 2024 the tax is measured by the

number of stamps, whether affixed or to be affixed, held by the distributor at 12:01 a.m. on

September 1, 2024, and is computed at the rate of twelve and one-half (12.5) mills per cigarette in

the package to which the stamps are affixed or to be affixed.

     (c) Each person subject to the payment of the tax imposed by this section shall, on or before

September 16, 2024, file a return, under oath or certified under the penalties of perjury, with the

tax administrator on forms furnished by the tax administrator, showing the amount of cigarettes

and the number of stamps in that person's possession in this state at 12:01 a.m. on September 1,

2024, as described in this section above, and the amount of tax due, and shall at the time of filing

the return pay the tax to the tax administrator. Failure to obtain forms shall not be an excuse for the

failure to make a return containing the information required by the tax administrator.

     (d) The tax administrator may prescribe rules and regulations, not inconsistent with law,

regarding the assessment and collection of the tax imposed by this section.

     SECTION 15. The title of Chapter 44-20 of the General Laws entitled "Cigarette and Other

Tobacco Products Tax" is hereby amended to read as follows:

CHAPTER 44-20

Cigarette and Other Tobacco Products Tax

CHAPTER 44-20

CIGARETTE, OTHER TOBACCO PRODUCTS, AND ELECTRONIC NICOTINE-

DELIVERY SYSTEM PRODUCTS

     SECTION 16. Sections 44-20-1, 44-20-2, 44-20-3, 44-20-4, 44-20-4.1, 44-20-5, 44-20-

8.2, 44-20-13.2, 44-20-15, 44-20-33, 44-20-35, 44-20-40, 44-20-40.1, 44-20-43, 44-20-45, 44-20-

47 and 44-20-51.1 of the General Laws in Chapter 44-20 entitled "Cigarette and Other Tobacco

Products Tax" are hereby amended to read as follows:

     44-20-1. Definitions.

     Whenever used in this chapter, unless the context requires otherwise:

     (1) “Administrator” means the tax administrator;

     (2) “Cigarettes” means and includes any cigarettes suitable for smoking in cigarette form,

“heat not burn products,” and each sheet of cigarette rolling paper, including but not limited to,

paper made into a hollow cylinder or cone, made with paper or any other material, with or without

a filter suitable for use in making cigarettes;

     (3) “Dealer” means any person whether located within or outside of this state, who sells or

distributes cigarettes and/or other tobacco products and/or electronic nicotine-delivery system

products to a consumer in this state;

     (4) “Distributor” means any person:

     (A) Whether located within or outside of this state, other than a dealer, who sells or

distributes cigarettes and/or other tobacco products and/or electronic nicotine-delivery system

products within or into this state. Such term shall not include any cigarette or other tobacco product

manufacturer, export warehouse proprietor, or importer with a valid permit under 26 U.S.C. § 5712,

if such person sells or distributes cigarettes and/or other tobacco products and/or electronic

nicotine-delivery system products in this state only to licensed distributors, or to an export

warehouse proprietor or another manufacturer with a valid permit under 26 U.S.C. § 5712;

     (B) Selling cigarettes and/or other tobacco products and/or electronic nicotine-delivery

system products directly to consumers purchasers in this state by means of at least twenty-five (25)

vending machines;

     (C) Engaged in this state in the business of manufacturing cigarettes and/or other tobacco

products and/or electronic nicotine-delivery system products or any person engaged in the business

of selling cigarettes and/or other tobacco products and/or electronic nicotine-delivery system

products to dealers, or to other persons, for the purpose of resale only; provided, that seventy-five

percent (75%) of all cigarettes and/or other tobacco products and/or electronic nicotine-delivery

system products sold by that person in this state are sold to dealers or other persons for resale and

selling cigarettes and/or other tobacco products and/or electronic nicotine-delivery system products

directly to at least forty (40) dealers or other persons for resale; or

     (D) Maintaining one or more regular places of business in this state for that purpose;

provided, that seventy-five percent (75%) of the sold cigarettes and/or other tobacco products

and/or electronic nicotine-delivery system products are purchased directly from the manufacturer

and selling cigarettes and/or other tobacco products and/or electronic nicotine-delivery system

products directly to at least forty (40) dealers or other persons for resale;

     (5) “E-liquid” and “e-liquid products” mean any liquid or substance placed in or sold for

use in an electronic nicotine-delivery system which generally utilizes a heating element that

aerosolizes, vaporizes or combusts a liquid or other substance containing nicotine or nicotine

derivative:

     (a) Whether the liquid or substance contains nicotine or a nicotine derivative; or,

     (b) Whether sold separately or sold in combination with a personal vaporizer, electronic

nicotine-delivery system, or an electronic inhaler.

     (6) "Electronic nicotine-delivery system" means an electronic device that may be used to

simulate smoking in the delivery of nicotine or other substance to a person inhaling from the device,

and includes, but is not limited to, an electronic cigarette, electronic cigar, electronic cigarillo,

electronic little cigars, electronic pipe, electronic hookah, e-liquids, e-liquid products, or any related

device and any cartridge or other component of such device.

     (7) "Electronic nicotine-delivery system products" means any combination of electronic

nicotine-delivery system and/or e-liquid and/or any derivative thereof, and/or any e-liquid

container. Electronic nicotine-delivery system products shall include hemp-derived consumable

CBD products as defined in § 2-26-3.

     (5)(8) “Importer” means any person who imports into the United States, either directly or

indirectly, a finished cigarette or other tobacco product and/or electronic nicotine-delivery system

product for sale or distribution;

     (6)(9) “Licensed,” when used with reference to a manufacturer, importer, distributor or

dealer, means only those persons who hold a valid and current license issued under § 44-20-2 for

the type of business being engaged in. When the term “licensed” is used before a list of entities,

such as “licensed manufacturer, importer, wholesale dealer, or retailer dealer,” such term shall be

deemed to apply to each entity in such list;

     (7)(10) “Manufacturer” means any person who manufactures, fabricates, assembles,

processes, or labels a finished cigarette and/or other tobacco products and/or electronic nicotine-

delivery system products;

     (8)(11) “Other tobacco products” (OTP) means any cigars (excluding Little Cigars, as

defined in § 44-20.2-1, which are subject to cigarette tax), cheroots, stogies, smoking tobacco

(including granulated, plug cut, crimp cut, ready rubbed and any other kinds and forms of tobacco

suitable for smoking in a pipe or otherwise), chewing tobacco (including Cavendish, twist, plug,

scrap and any other kinds and forms of tobacco suitable for chewing), any and all forms of hookah,

shisha and “mu’assel” tobacco, snuff, and shall include any other articles or products made of or

containing tobacco, in whole or in part, or any tobacco substitute, except cigarettes;

     (9)(12) “Person” means any individual, including an employee or agent, firm, fiduciary,

partnership, corporation, trust, or association, however formed;

     (10)(13) “Pipe” means an apparatus made of any material used to burn or vaporize products

so that the smoke or vapors can be inhaled or ingested by the user;

     (11)(14) “Place of business” means any location where cigarettes and/or other tobacco

products and/or electronic nicotine-delivery system products are sold, stored, or kept, including,

but not limited to; any storage room, attic, basement, garage or other facility immediately adjacent

to the location. It also includes any receptacle, hide, vessel, vehicle, airplane, train, or vending

machine;

     (12)(15) “Sale” or “sell” means gifts, exchanges, and barter of cigarettes and/or other

tobacco products and/or electronic nicotine-delivery system products. The act of holding, storing,

or keeping cigarettes and/or other tobacco products and/or electronic nicotine-delivery system

products at a place of business for any purpose shall be presumed to be holding the cigarettes and/or

other tobacco products and/or electronic nicotine-delivery system products for sale. Furthermore,

any sale of cigarettes and/or other tobacco products and/or electronic nicotine-delivery system

products by the servants, employees, or agents of the licensed dealer during business hours at the

place of business shall be presumed to be a sale by the licensee;

     (13)(16) “Stamp” means the impression, device, stamp, label, or print manufactured,

printed, or made as prescribed by the administrator to be affixed to packages of cigarettes, as

evidence of the payment of the tax provided by this chapter or to indicate that the cigarettes are

intended for a sale or distribution in this state that is exempt from state tax under the provisions of

state law; and also includes impressions made by metering machines authorized to be used under

the provisions of this chapter.

     44-20-2. Importer, distributor, and dealer licenses required — Licenses required.

Manufacturer, importer, distributor, and dealer licenses required — Licenses required.

     (a) Each manufacturer engaging in the business of selling any cigarette and/or any tobacco

products, except for cigars, and/or electronic nicotine-delivery system products in this state shall

secure a license, unless otherwise prohibited by federal law, from the administrator before engaging

in that business, or continuing to engage in it.

     (b) Each person engaging in the business of selling cigarette and/or any tobacco products

and/or any electronic nicotine-delivery system products in this state, including any manufacturer,

importer, distributor or dealer, shall secure a license from the administrator before engaging in that

business, or continuing to engage in it. A separate application and license is required for each place

of business operated by a distributor, manufacturer, importer, or dealer; provided, that an operator

of vending machines for cigarette products is not required to obtain a distributor’s license for each

machine. If the applicant for a license does not have a place of business in this state, the license

shall be issued for such applicant’s principal place of business, wherever located. A licensee shall

notify the administrator within thirty (30) days in the event that it changes its principal place of

business. A separate license is required for each class of business if the applicant is engaged in

more than one of the activities required to be licensed by this section. No person shall maintain or

operate or cause to be operated a vending machine for cigarette products without procuring a

dealer’s license for each machine.

     (c) Effective January 1, 2025, the administrator shall implement a single license and

renewal application that allows for the licensure of retailers/dealers of cigarettes and/or any tobacco

products and/or any electronic nicotine-delivery system products and a separate single license and

renewal application that allows for the licensure of distributors, manufacturers, and importers of

cigarettes and/or any tobacco products and/or any electronic nicotine-delivery system products.

     (d) Immediately following the enactment of this chapter, any electronic nicotine-delivery

system products distributor or dealer, licensed in good-standing by the department of health

pursuant to chapter 1 of title 23, shall be considered licensed for purposes of compliance with this

chapter until the renewal date for such license pursuant to chapter 20 of title 44 occurs; thereafter,

such distributors and dealers shall be required to comply with the license requirements in this

chapter.

     44-20-3. Penalties for unlicensed business.

     Any manufacturer, importer, distributor or dealer who sells, offers for sale, or possesses

with intent to sell, cigarettes and/or any other tobacco products and/or any electronic nicotine

delivery system products, without a license as provided in § 44-20-2, shall be guilty of a

misdemeanor, and shall be fined not more than ten thousand dollars ($10,000) for each offense, or

be imprisoned for a term not to exceed one (1) year, or be punished by both a fine and

imprisonment.

     44-20-4. Application for license — Display.

     All licenses are issued by the tax administrator upon approval of application, stating, on

forms prescribed by the tax administrator, the information he or she may require for the proper

administration of this chapter. Each application for an a manufacturer's, importer’s, or distributor’s

license shall be accompanied by a an application fee of one thousand dollars ($1,000); provided,

that for a distributor who does not affix stamps, the application fee shall be one hundred dollars

($100); each application for a dealer’s license shall be accompanied by a fee an application fee of

twenty-five dollars ($25.00). Each issued license shall be prominently displayed on the premises

within this state, if any, covered by the license. In the instance of an application for a distributor’s

license, the administrator shall require, in addition to other information as may be deemed

necessary, the filing of affidavits from three (3) cigarette manufacturers with national distribution

stating that the manufacturer will supply the distributor if the applicant is granted a license.

     44-20-4.1. License availability.

     (a) No license under this chapter may be granted, maintained or renewed if the applicant,

or any combination of persons owning directly or indirectly any interests in the applicant:

     (1) Owes five hundred dollars ($500) or more in delinquent taxes;

     (2) Is delinquent in any tax filings for one month or more;

     (3) Had a license under this chapter revoked by the administrator within the past two (2)

years;

     (4) Has been convicted of a crime relating to cigarettes and/or other tobacco products

and/or any electronic nicotine-delivery system products;

     (5) Is a cigarette manufacturer or importer that is neither: (i) A participating manufacturer

as defined in subsection II (jj) of the “Master Settlement Agreement” as defined in § 23-71-2; nor

(ii) In full compliance with chapter 20.2 of this title and § 23-71-3;

     (6) Has imported, or caused to be imported, into the United States any cigarette and/or

other tobacco product and/or electronic nicotine-delivery system products in violation of 19 U.S.C.

§ 1681a or any other state or federal law; or

     (7) Has imported, or caused to be imported into the United States, or manufactured for sale

or distribution in the United States any cigarette that does not fully comply with the Federal

Cigarette Labeling and Advertising Act (15 U.S.C. § 1331 et seq.).

     (b)(1) No person shall apply for a new license or permit (as defined in § 44-19-1) or renewal

of a license or permit, and no license or permit shall be issued or renewed for any applicant, or any

combination of persons owning directly or indirectly any interests in the applicant, unless all

outstanding fines, fees, or other charges relating to any license or permit held by the applicant, or

any combination of persons owning directly or indirectly any interests in the applicant, as well as

any other tax obligations of the applicant, or any combination of persons owning directly or

indirectly any interests in the applicant have been paid.

     (2) No license or permit shall be issued relating to a business until all prior licenses or

permits relating to that business or to that location have been officially terminated and all fines,

fees, or charges relating to the prior license or permit have been paid or otherwise resolved or the

administrator has found that the person applying for the new license or permit is not acting as an

agent for the prior licensee or permit holder who is subject to any such related fines, fees or charges

that are still due. Evidence of such agency status includes, but is not limited to, a direct familial

relationship and/or an employment, contractual, or other formal financial or business relationship

with the prior licensee or permit holder.

     (3) No person shall apply for a new license or permit pertaining to a specific location in

order to evade payment of any fines, fees, or other charges relating to a prior license or permit.

     (4) No new license or permit shall be issued for a business at a specific location for which

a license or permit already has been issued unless there is a bona fide, good-faith change in

ownership of the business at that location.

     (5) No license or permit shall be issued, renewed, or maintained for any person, including

the owners of the business being licensed or having applied and received a permit, that has been

convicted of violating any criminal law relating to tobacco products, the payment of taxes, or fraud

or has been ordered to pay civil fines of more than twenty-five thousand dollars ($25,000) dollars

for violations of any civil law relating to tobacco products, the payment of taxes, or fraud.

     44-20-5. Duration of importer’s, and dealer’s licenses. Renewal. Expiration, duration,

and renewal of manufacturer's, importer’s, distributor's and dealer’s licenses.

     (a) Effective January 1, 2025 to add manufacturer and distributor: Any manufacturer,

importer, or distributor license and any license issued by the tax administrator authorizing a dealer

to sell cigarettes and/or other tobacco products and/or electronic nicotine-delivery system products

in this state shall expire at midnight on June 30 next succeeding the date of issuance unless (1)

suspended or revoked by the tax administrator, (2) the business with respect to which the license

was issued changes ownership, (3) the manufacturer, importer, distributor or dealer ceases to

transact the business for which the license was issued, or (4) after a period of time set by the

administrator; provided such period of time shall not be longer than three (3) years, in any of which

cases the license shall expire and terminate and the holder shall immediately return the license to

the tax administrator.

     (b) Every holder of a dealer’s license shall annually, on or before February 1 of each year,

renew its license by filing an application for renewal along with a twenty-five dollar ($25.00)

renewal fee. The renewal license is valid for the period July 1 of that calendar year through June

30 of the subsequent calendar year.

     44-20-8.2. Transactions only with licensed manufacturers, importers, distributors,

and dealers.

     A manufacturer or importer may sell or distribute cigarettes and/or other tobacco products

and/or electronic nicotine-delivery system products to a person located or doing business within

this state, only if such person is a licensed importer or distributor. An importer may obtain cigarettes

and/or other tobacco products and/or electronic nicotine-delivery system products only from a

licensed manufacturer. A distributor may sell or distribute cigarettes and/or other tobacco products

and/or electronic nicotine-delivery system products to a person located or doing business within

this state, only if such person is a licensed distributor or dealer. A distributor may obtain cigarettes

and/or other tobacco products and/or electronic nicotine-delivery system products only from a

licensed manufacturer, importer, or distributor. A dealer may obtain cigarettes and/or other tobacco

products and/or electronic nicotine-delivery system products only from a licensed distributor.

     Provided, however, this section shall not apply to cigars.

     44-20-13.2. Tax imposed on other tobacco products, smokeless tobacco, cigars, and

pipe tobacco products. Tax imposed on other tobacco products, smokeless tobacco, cigars,

pipe tobacco products and electronic nicotine-delivery products.

     (a) A tax is imposed on all other tobacco products, smokeless tobacco, cigars, and pipe

tobacco products, and electronic nicotine-delivery system products sold, or held for sale in the state

by any person, the payment of the tax to be accomplished according to a mechanism established by

the administrator, division of taxation, department of revenue. The tax imposed by this section shall

be as follows:

     (1) For all other tobacco products, smokeless tobacco, cigars, and pipe tobacco products,

at the rate of eighty percent (80%) of the wholesale cost of other tobacco products, cigars, pipe

tobacco products, and smokeless tobacco other than snuff.

     (2) Notwithstanding the eighty percent (80%) rate in subsection (a) above, in the case of

cigars, the tax shall not exceed fifty cents ($.50) for each cigar.

     (3) At the rate of one dollar ($1.00) per ounce of snuff, and a proportionate tax at the like

rate on all fractional parts of an ounce thereof. Such tax shall be computed based on the net weight

as listed by the manufacturer; provided, however, that any product listed by the manufacturer as

having a net weight of less than 1.2 ounces shall be taxed as if the product has a net weight of 1.2

ounces.

     (4) Effective January 1, 2025:

     (i) For electronic nicotine-delivery system products that are prefilled, sealed by the

manufacturer, and not refillable, at the rate of fifty cents per milliliter ($0.50/mL) of the e-liquid

and/or e-liquid products contained therein; and

     (ii) For any other electronic nicotine-delivery system products, at the rate of ten percent

(10%) of the wholesale cost of such products, whether or not sold at wholesale, and if not sold,

then at the same rate upon the use by the wholesaler.

     (iii) Existing Inventory Floor Tax. For all electronic nicotine-delivery system products held

by licensed electronic nicotine-delivery system products retailers as of January 1, 2025: Each

person engaging in the business of selling electronic nicotine-delivery system products at retail in

this state shall pay a tax measured by the volume of e-liquid and/or e-liquid products contained in

electronic nicotine-delivery system products that are prefilled, sealed by the manufacturer, and not

refillable and the wholesale cost of all other electronic nicotine-delivery system products held by

the person in this state at 12:01 a.m. on January 1, 2025, and is computed for electronic nicotine-

delivery system products that are prefilled, sealed by the manufacturer, and not refillable, at the

rate of fifty cents per milliliter ($0.50/mL) of the e-liquid and/or e-liquid products contained therein

and for any other electronic nicotine-delivery system products at the rate of ten percent (10%) of

the wholesale cost of such products on January 1, 2025. Each person subject to the payment of the

tax imposed by this section shall, on or before January 16, 2025, file a return, under oath or certified

under the penalties of perjury, with the administrator on forms furnished by the administrator,

showing the volume of e-liquid and/or e-liquid products contained in electronic nicotine-delivery

system products which are prefilled, sealed by the manufacturer, and not refillable and the

wholesale cost of all other electronic nicotine-delivery system products in that person’s possession

in this state at 12:01 a.m. on January 1, 2025, as described in this section, and the amount of tax

due, and shall at the time of filing the return pay the tax to the administrator. Failure to obtain forms

shall not be an excuse for the failure to make a return containing the information required by the

administrator.

     (iv) For all electronic nicotine-delivery system products sold by licensed electronic

nicotine-delivery system products distributors, manufacturers and/or importers in Rhode Island as

of January 1, 2025: any person engaging in the business of distributing at wholesale electronic

nicotine-delivery system products in this state shall pay a tax measured by the volume of e-liquid

and/or e-liquid products contained in electronic nicotine-delivery system products that are prefilled,

sealed by the manufacturer, and not refillable computed at the rate of fifty cents per milliliter

($0.50/mL) of the e-liquid and/or e-liquid products contained therein and for all other electronic

nicotine-delivery system products at the rate of ten percent (10%) of the wholesale cost of such

products.

     (b)(1) Prior to January 1, 2025, any Any dealer having in his or her possession any other

tobacco products with respect to the storage or use of which a tax is imposed by this section shall,

within five (5) days after coming into possession of the other tobacco products in this state, file a

return with the tax administrator in a form prescribed by the tax administrator. The return shall be

accompanied by a payment of the amount of the tax shown on the form to be due. Records required

under this section shall be preserved on the premises described in the relevant license in such a

manner as to ensure permanency and accessibility for inspection at reasonable hours by authorized

personnel of the administrator.

     (2) Effective January 1, 2025, all other tobacco products, except for cigars, and electronic

nicotine-delivery system products sold at wholesale in Rhode Island must be sold by a Rhode Island

licensed distributor, manufacturer or importer, and purchases of other tobacco products, except for

cigars, and/or electronic nicotine-delivery system products, from an unlicensed distributor,

manufacturer or importer are prohibited. Any other tobacco products, except for cigars, and/or

electronic nicotine-delivery system products purchased and/or obtained from an unlicensed person

shall be subject to the terms of this chapter including, but not limited to, § 44-20-15 and shall be

taxed pursuant to § 44-20-13.2.

     (3) Effective January 1, 2025, any dealer having in their possession any cigars with respect

to the storage or use of which a tax is imposed by this section shall, within five (5) days after

coming into possession of cigars in this state, file a return with the tax administrator in a form

prescribed by the tax administrator. The return shall be accompanied by a payment of the amount

of the tax shown on the form to be due. Records required under this section shall be preserved on

the premises described in the relevant license in such a manner as to ensure permanency and

accessibility for inspection at reasonable hours by authorized personnel of the administrator.

     (c) The proceeds collected are paid into the general fund.

     44-20-15. Confiscation of contraband cigarettes, other tobacco products, and other

property. Confiscation of contraband cigarettes, other tobacco products, electronic nicotine-

delivery system products and other property.

     (a) All cigarettes, and other tobacco products, and/or electronic nicotine-delivery system

products that are held for sale or distribution within the borders of this state in violation of the

requirements of this chapter or federal law are declared to be contraband goods and may be seized

by the tax administrator or his or her agents, or employees, or by any sheriff, or his or her deputy,

or any police officer when directed by the tax administrator to do so, without a warrant. All

contraband goods seized by the state under this chapter shall be destroyed.

     (b) All fixtures, equipment, and all other materials and personal property on the premises

of any distributor or dealer who, with the intent to defraud the state, fails to keep or make any

record, return, report, or inventory; keeps or makes any false or fraudulent record, return, report, or

inventory required by this chapter; refuses to pay any tax imposed by this chapter; or attempts in

any manner to evade or defeat the requirements of this chapter shall be forfeited to the state.

     44-20-33. Sale of contraband cigarettes or contraband other tobacco products

prohibited. Sale of contraband cigarettes, contraband other tobacco products or contraband

electronic nicotine-delivery systems products prohibited.

     No distributor shall sell, and no other person shall sell, offer for sale, display for sale, or

possess with intent to sell any contraband other tobacco products without written record of the

payment of tax imposed by this chapter, or contraband electronic nicotine-delivery system products

without written record of the payment of tax imposed by this chapter or contraband cigarettes, the

packages or boxes of which do not bear stamps evidencing the payment of the tax imposed by this

chapter.

     44-20-35. Penalties for violations as to unstamped contraband cigarettes, or

contraband other tobacco products. Penalties for violations as to unstamped contraband

cigarettes, contraband other tobacco products or contraband electronic nicotine-delivery

system products.

     (a) Any person who violates any provision of §§ 44-20-33 and 44-20-34 shall be fined or

imprisoned, or both fined and imprisoned, as follows:

     (1) For a first offense in a twenty-four-month (24) period, fined not more than ten (10)

times the retail value of the contraband cigarettes, contraband electronic nicotine-delivery system

products and/or contraband other tobacco products, or be imprisoned not more than one (1) year,

or be both fined and imprisoned;

     (2) For a second or subsequent offense in a twenty-four-month (24) period, fined not more

than twenty-five (25) times the retail value of the contraband cigarettes, contraband electronic

nicotine-delivery system products, and/or contraband other tobacco products, or be imprisoned not

more than three (3) years, or be both fined and imprisoned.

     (b) When determining the amount of a fine sought or imposed under this section, evidence

of mitigating factors, including history, severity, and intent shall be considered.

     44-20-40. Records — Investigation and inspection of books, premises and stock.

     (a) Each manufacturer, importer, distributor and dealer shall maintain copies of invoices or

equivalent documentation for, or itemized for, each of its facilities for each transaction (other than

a retail transaction with a consumer purchaser) involving the sale, purchase, transfer, consignment,

or receipt of cigarettes, other tobacco products and electronic nicotine-delivery system products.

The invoices or documentation shall show the name and address of the other party and the quantity

by brand style of the cigarettes, other tobacco products and electronic nicotine-delivery system

products involved in the transaction. All records and invoices required under this section must be

safely preserved for three (3) years in a manner to insure permanency and accessibility for

inspection by the administrator or his or her authorized agents.

     (b) Records required under this section shall be preserved on the premises described in the

relevant license in such a manner as to ensure permanency and accessibility for inspection at

reasonable hours by authorized personnel of the administrator. With the administrator’s permission,

persons with multiple places of business may retain centralized records, but shall transmit

duplicates of the invoices or the equivalent documentation to each place of business within twenty-

four (24) hours upon the request of the administrator or his or her designee.

     (c) The administrator or his or her authorized agents may examine the books, papers,

reports and records of any manufacturer, importer, distributor or dealer in this state for the purpose

of determining whether taxes imposed by this chapter have been fully paid, and may investigate

the stock of cigarettes, other tobacco products and/or electronic nicotine-delivery system products

in or upon any premises for the purpose of determining whether the provisions of this chapter are

being obeyed. The administrator in his or her sole discretion may share the records and reports

required by such sections with law enforcement officials of the federal government or other states.

     44-20-40.1. Inspections.

     (a) The administrator or his or her duly authorized agent shall have authority to enter and

inspect, without a warrant during normal business hours, and with a warrant during nonbusiness

hours, the facilities and records of any manufacturer, importer, distributor, or dealer.

     (b) In any case where the administrator or his or her duly authorized agent, or any police

officer of this state, has knowledge or reasonable grounds to believe that any vehicle is transporting

cigarettes, or other tobacco products or electronic nicotine-delivery system products in violation of

this chapter, the administrator, such agent, or such police officer, is authorized to stop such vehicle

and to inspect the same for contraband cigarettes, or contraband other tobacco products or

contraband electronic nicotine-delivery system products.

     44-20-43. Violations as to reports and records.

     Any person who fails to submit the reports required in this chapter or by the tax

administrator under this chapter, or who makes any incomplete, false, or fraudulent report, or who

refuses to permit the tax administrator or his or her authorized agent to examine any books, records,

papers, or stocks of cigarettes, or other tobacco products or electronic nicotine-delivery system

products as provided in this chapter, or who refuses to supply the tax administrator with any other

information which the tax administrator requests for the reasonable and proper enforcement of the

provisions of this chapter, shall be guilty of a misdemeanor punishable by imprisonment up to one

(1) year, or a fine of not more than five thousand dollars ($5,000), or both, for the first offense, and

for each subsequent offense, shall be fined not more than ten thousand dollars ($10,000), or be

imprisoned not more than five (5) years, or both.

     44-20-45. Importation of cigarettes and/or other tobacco products with intent to evade

tax. Importation of cigarettes, other tobacco products and/or electronic nicotine-delivery

system products with intent to evade tax.

     Any person, firm, corporation, club, or association of persons who or that orders any

cigarettes, and/or other tobacco products, and/or electronic nicotine-delivery system products for

another; or pools orders for cigarettes, and/or other tobacco products, and/or electronic nicotine-

delivery system products from any persons; or conspires with others for pooling orders; or receives

in this state any shipment of contraband cigarettes, and/or contraband other tobacco products,

and/or electronic nicotine-delivery system products on which the tax imposed by this chapter has

not been paid, for the purpose and intention of violating the provisions of this chapter or to avoid

payment of the tax imposed in this chapter, is guilty of a felony and shall be fined one hundred

thousand dollars ($100,000) or five (5) times the retail value of the cigarettes, other tobacco

products, and/or electronic nicotine-delivery system products involved, whichever is greater, or

imprisoned not more than fifteen (15) years, or both.

     44-20-47. Hearings by tax administrator.

     Any person aggrieved by any action under this chapter of the tax administrator or his or

her authorized agent for which a hearing is not elsewhere provided may apply to the tax

administrator, in writing, within thirty (30) days of the action for a hearing, stating the reasons why

the hearing should be granted and the manner of relief sought. The tax administrator shall notify

the applicant of the time and place fixed for the hearing. After the hearing, the tax administrator

may make the order in the premises as may appear to the tax administrator just and lawful and shall

furnish a copy of the order to the applicant. The tax administrator may, by notice in writing, at any

time, order a hearing on his or her own initiative and require the taxpayer or any other individual

whom the tax administrator believes to be in possession of information concerning any

manufacture, importation, or sale of cigarettes, other tobacco products, and/or electronic nicotine-

delivery system products to appear before the tax administrator or his or her authorized agent with

any specific books of account, papers, or other documents, for examination relative to the hearing.

     44-20-51.1. Civil penalties.

     (a) Whoever omits, neglects, or refuses to comply with any duty imposed upon him/her by

this chapter, or to do, or cause to be done, any of the things required by this chapter, or does

anything prohibited by this chapter, shall, in addition to any other penalty provided in this chapter,

be liable as follows:

     (1) For a first offense in a twenty-four-month (24) period, a penalty of not more than ten

(10) times the retail value of the cigarettes, and/or other tobacco products and/or electronic nicotine-

delivery system products involved; and

     (2) For a second or subsequent offense in a twenty-four-month (24) period, a penalty of

not more than twenty-five (25) times the retail value of the cigarettes, and/or other tobacco products

and/or contraband electronic nicotine-delivery system products involved.

     (b) Whoever omits, neglects, or refuses to comply with any duty imposed upon him/her by

this chapter, or to do, or cause to be done, any of the things required by this chapter, or does

anything prohibited by this chapter, fails to pay any tax imposed by this chapter at the time

prescribed by law or regulations, shall, in addition to any other penalty provided in this chapter, be

liable for a penalty of one thousand dollars ($1,000) or not more than five (5) times the tax due but

unpaid, whichever is greater.

     (c) When determining the amount of a penalty sought or imposed under this section,

evidence of mitigating or aggravating factors, including history, severity, and intent, shall be

considered.

     SECTION 17. Chapter 44-20 of the General Laws entitled "Cigarette and Other Tobacco

Products Tax" is hereby amended by adding thereto the following sections:

     44-20-60. Exemption of sales of certain electronic nicotine-delivery system products.

Notwithstanding any provision of the general or public laws to the contrary, the sale of

electronic nicotine-delivery system products are exempted from the taxes imposed by this chapter

if they are subject to the taxes imposed by chapter 28.11 of title 21 and chapter 70 of this title.

     44-20-61. Product restrictions on electronic nicotine-delivery system products.

(a) For purposes of this section, the following terms shall have the following meanings:

     (1) “Characterizing flavor” means a distinguishable taste or aroma, other than the taste or

aroma of tobacco or menthol, distinguishable by an ordinary consumer, imparted either prior to, or

during, consumption of an electronic nicotine-delivery system product or component part thereof,

including, but not limited to, tastes or aromas relating to any fruit, mint, wintergreen, chocolate,

vanilla, honey, candy, cocoa, dessert, alcoholic beverage, herb, or spice or which impart a cooling

or numbing sensation. The determination of whether an electronic nicotine-delivery system product

has a characterizing flavor shall not be based solely on the use of additives, flavorings, or particular

ingredients, but shall instead consider all aspects of a final product including, but not limited to,

taste, flavor and aroma, product labeling, and advertising statements. A flavor shall be presumed

to be a characterizing flavor if a dealer, manufacturer, or distributor has made a statement or claim

directed to consumers or the public about such flavor, whether expressed or implied, that it has a

distinguishable taste or aroma (other than the taste or aroma of tobacco or menthol).

     (2) “Flavored electronic nicotine-delivery system product” means any electronic nicotine-

delivery system product that imparts a characterizing flavor.

     (b) The sale, or offer for sale of, or the possession with intent to sell or to offer for sale,

flavored electronic nicotine-delivery system products to consumers within the State of Rhode

Island is hereby prohibited. Compassion centers and licensed cultivators registered with the State

of Rhode Island Department of Business Regulations-Office of Cannabis Regulation under chapter

28.6 of title 21 are exempt from this provision except as to products that contain, are made of, or

are derived from tobacco or nicotine, natural or synthetic.

     44-20-62. Disclosure of information-electronic nicotine-delivery system products

licensees.

     The department of health shall disclose to the tax administrator all information regarding

persons and entities who hold, or previously held, a license issued pursuant to § 23-1-56.

     SECTION 18. Section 44-20-6 of the General Laws in Chapter 44-20 entitled "Cigarette

and Other Tobacco Products Tax" is hereby repealed.

     44-20-6. Expiration and renewal of distributors’ licenses.

     Each distributor’s license issued under the provisions of § 44-20-4 expires at midnight on

May 31 next succeeding the date of issuance, unless sooner revoked by the tax administrator, as

provided in § 44-20-8, or unless the business with respect to which the license was issued changes

ownership, in either of which cases the holder of the license shall immediately return it to the tax

administrator. The holder of each license may, annually, before the expiration date of the license

then held by the licensee, renew his or her license for a further period of one year, on application

accompanied by the fee prescribed in § 44-20-4.

     SECTION 19. Sections 44-20.1-3 and 44-20.1-4 of the General Laws in Chapter 44-20.1

entitled "Delivery Sales of Cigarettes" are hereby amended to read as follows:

     44-20.1-3. Age Verification requirements.

     (a) No person, including but not limited to online retailers, shall mail, ship, or otherwise

deliver cigarettes, other tobacco products, or electronic nicotine-delivery systems in connection

with a delivery sale unless such person prior to the first delivery sale to such consumer purchaser:

     (1) Obtains from the prospective consumer purchaser a certification that includes:

     (i) A reliable confirmation that the consumer purchaser is at least the legal minimum

purchase sales age; and

     (ii) A statement signed by the prospective consumer purchaser in writing that certifies the

prospective consumer purchaser's address and that the consumer purchaser is at least eighteen (18)

twenty-one (21) years of age. Such statement shall also confirm:

     (A) That the prospective consumer purchaser understands that signing another person’s

name to such certification is illegal;

     (B) That the sale of cigarettes to individuals under the legal minimum purchase sales age

is illegal;

     (C) That the purchase of cigarettes by individuals under the legal minimum purchase age

is illegal under the laws of the state; and

     (D)(C) That the prospective consumer wants to receive mailings from a tobacco company;

     (2) Makes a good faith effort to verify the information contained in the certification

provided by the prospective consumer pursuant to subsection (a)(1) of this section against a

commercially available database, or obtains a photocopy or other image of the valid, government-

issued identification stating the date of birth or age of the individual placing the order;

     (3) Provides to the prospective consumer purchaser, via e-mail or other means, a notice

that meets the requirements of § 44-20.1-4; and

     (4) In the case of an order for cigarettes and/or other tobacco products, and/or electronic

nicotine-delivery system products pursuant to an advertisement on the Internet, receives payment

for the delivery sale from the prospective consumer purchaser by a credit or debit card that has been

issued in such consumer’s purchaser’s name or by check.

     (b) Persons accepting purchase orders for delivery sales may request that the prospective

consumers purchasers provide their e-mail addresses.

     (c) The division of taxation, in consultation with the department of health, may promulgate

rules and regulations pertaining to this section.

     44-20.1-4. Disclosure requirements.

     The notice required under subdivision § 44-20.1-3(a)(3) shall include:

     (a) A prominent and clearly legible statement that the sale of cigarettes, other tobacco

products, and electronic nicotine-delivery system products sales to consumers individuals below

the legal minimum purchase sales age are is illegal;

     (b) A prominent and clearly legible statement that sales of cigarettes, other tobacco

products, and electronic nicotine-delivery system products, are restricted to those consumers

individuals who provide verifiable proof of age in accordance with § 44-20.1-3; and

     (c) A prominent and clearly legible statement that the sale of cigarettes, other tobacco

products, and electronic nicotine-delivery system products, sales are subject to tax under the

provisions of § 44-20-12 or § 44-20-13.2, and an explanation of how such tax has been, or is to be

paid with respect to such delivery sale.

     SECTION 20. Section 44-23-1 of the General Laws in Chapter 44-23 entitled "Estate and

Transfer Taxes — Enforcement and Collection" is hereby amended to read as follows:

     44-23-1. Statements filed by executors, administrators and heirs-at-law.

     (a) Every executor, administrator, and heir-at-law, within nine (9) months after the death

of the decedent, shall file with the tax administrator a statement under oath showing the full and

fair cash value of the estate, the amounts paid out from the estate for claims, expenses, charges, and

fees, and the statement shall also provide the names and addresses of all persons entitled to take

any share or interest of the estate as legatees or distributees of the estate.

     (b) For estates of decedents with a date of death prior to January 1, 2025, A a fee of fifty

dollars ($50.00) is shall be paid when filing any statement required by this section. All fees received

under this section are allocated to the tax administrator for enforcement and collection of taxes.

     (c) For estates of decedents with a date of death on or after January 1, 2025, no fee shall be

paid when filing any statement required by this section.

     SECTION 21. Section 44-30-12 of the General Laws in Chapter 44-30 entitled "Personal

Income Tax" is hereby amended to read as follows:

     44-30-12. Rhode Island income of a resident individual.

     (a) General. The Rhode Island income of a resident individual means his or her adjusted

gross income for federal income tax purposes, with the modifications specified in this section.

     (b) Modifications increasing federal adjusted gross income. There shall be added to

federal adjusted gross income:

     (1) Interest income on obligations of any state, or its political subdivisions, other than

Rhode Island or its political subdivisions;

     (2) Interest or dividend income on obligations or securities of any authority, commission,

or instrumentality of the United States, but not of Rhode Island or its political subdivisions, to the

extent exempted by the laws of the United States from federal income tax but not from state income

taxes;

     (3) The modification described in § 44-30-25(g);

     (4)(i) The amount defined below of a nonqualified withdrawal made from an account in

the tuition savings program pursuant to § 16-57-6.1. For purposes of this section, a nonqualified

withdrawal is:

     (A) A transfer or rollover to a qualified tuition program under Section 529 of the Internal

Revenue Code, 26 U.S.C. § 529, other than to the tuition savings program referred to in § 16-57-

6.1; and

     (B) A withdrawal or distribution that is:

     (I) Not applied on a timely basis to pay “qualified higher education expenses” as defined

in § 16-57-3(12) of the beneficiary of the account from which the withdrawal is made;

     (II) Not made for a reason referred to in § 16-57-6.1(e); or

     (III) Not made in other circumstances for which an exclusion from tax made applicable by

Section 529 of the Internal Revenue Code, 26 U.S.C. § 529, pertains if the transfer, rollover,

withdrawal, or distribution is made within two (2) taxable years following the taxable year for

which a contributions modification pursuant to subsection (c)(4) of this section is taken based on

contributions to any tuition savings program account by the person who is the participant of the

account at the time of the contribution, whether or not the person is the participant of the account

at the time of the transfer, rollover, withdrawal or distribution;

     (ii) In the event of a nonqualified withdrawal under subsection (b)(4)(i)(A) or (b)(4)(i)(B)

of this section, there shall be added to the federal adjusted gross income of that person for the

taxable year of the withdrawal an amount equal to the lesser of:

     (A) The amount equal to the nonqualified withdrawal reduced by the sum of any

administrative fee or penalty imposed under the tuition savings program in connection with the

nonqualified withdrawal plus the earnings portion thereof, if any, includible in computing the

person’s federal adjusted gross income for the taxable year; and

     (B) The amount of the person’s contribution modification pursuant to subsection (c)(4) of

this section for the person’s taxable year of the withdrawal and the two (2) prior taxable years less

the amount of any nonqualified withdrawal for the two (2) prior taxable years included in

computing the person’s Rhode Island income by application of this subsection for those years. Any

amount added to federal adjusted gross income pursuant to this subdivision shall constitute Rhode

Island income for residents, nonresidents and part-year residents;

     (5) The modification described in § 44-30-25.1(d)(3)(i);

     (6) The amount equal to any unemployment compensation received but not included in

federal adjusted gross income;

     (7) The amount equal to the deduction allowed for sales tax paid for a purchase of a

qualified motor vehicle as defined by the Internal Revenue Code § 164(a)(6); and

     (8) For any taxable year beginning on or after January 1, 2020, the amount of any Paycheck

Protection Program loan forgiven for federal income tax purposes as authorized by the Coronavirus

Aid, Relief, and Economic Security Act and/or the Consolidated Appropriations Act, 2021 and/or

any other subsequent federal stimulus relief packages enacted by law, to the extent that the amount

of the loan forgiven exceeds $250,000, including an individual’s distributive share of the amount

of a pass-through entity’s loan forgiveness in excess of $250,000.

     (c) Modifications reducing federal adjusted gross income. There shall be subtracted

from federal adjusted gross income:

     (1) Any interest income on obligations of the United States and its possessions to the extent

includible in gross income for federal income tax purposes, and any interest or dividend income on

obligations, or securities of any authority, commission, or instrumentality of the United States to

the extent includible in gross income for federal income tax purposes but exempt from state income

taxes under the laws of the United States; provided, that the amount to be subtracted shall in any

case be reduced by any interest on indebtedness incurred or continued to purchase or carry

obligations or securities the income of which is exempt from Rhode Island personal income tax, to

the extent the interest has been deducted in determining federal adjusted gross income or taxable

income;

     (2) A modification described in § 44-30-25(f) or § 44-30-1.1(c)(1);

     (3) The amount of any withdrawal or distribution from the “tuition savings program”

referred to in § 16-57-6.1 that is included in federal adjusted gross income, other than a withdrawal

or distribution or portion of a withdrawal or distribution that is a nonqualified withdrawal;

     (4) Contributions made to an account under the tuition savings program, including the

“contributions carryover” pursuant to subsection (c)(4)(iv) of this section, if any, subject to the

following limitations, restrictions and qualifications:

     (i) The aggregate subtraction pursuant to this subdivision for any taxable year of the

taxpayer shall not exceed five hundred dollars ($500) or one thousand dollars ($1,000) if a joint

return;

     (ii) The following shall not be considered contributions:

     (A) Contributions made by any person to an account who is not a participant of the account

at the time the contribution is made;

     (B) Transfers or rollovers to an account from any other tuition savings program account or

from any other “qualified tuition program” under section 529 of the Internal Revenue Code, 26

U.S.C. § 529; or

     (C) A change of the beneficiary of the account;

     (iii) The subtraction pursuant to this subdivision shall not reduce the taxpayer’s federal