It is enacted by the General Assembly as follows:

SECTION 1. Chapter 11-9 of the General Laws entitled "Children" is hereby amended by adding thereto the following sections:

{ADD 11-9-13.2. Short title. -- This act shall be cited as "An Act to Stop the Illegal Sale of Tobacco Products to Children". ADD}

{ADD 11-9-13.3. Legislative intent -- Purpose. -- (a) The use of tobacco by Rhode Island children is a health and substance abuse problem of the utmost severity. The legislature finds that tobacco product usage by children in Rhode Island is rampant and increasing with over thirty percent (30%) of high school students smoking. The present law prohibiting the sale of tobacco to children is being ignored by many retailers. Rhode Island tobacco retailers illegally sell four million eight hundred thousand (4,800,000) packs, over eleven million dollars ($11,000,000) in tobacco product sales, to children annually. Tobacco industry advertising targets children as the replacement smokers for the one thousand one hundred forty-five (1,145) adults who die daily from tobacco product usage. Approximately seventy percent (70%) of the Rhode Island high school seniors who are smoking today will be the addicted adult smokers of tomorrow. According to the federal Centers for Disease Control and Prevention (CDC), smoking-related direct medical costs in Rhode Island in 1990 climbed to one hundred eighty-six million dollars ($186,000,000). This is an ongoing, escalating financial burden borne by every business, large and small, and every person, smoker and nonsmoker, in Rhode Island. This is a health and economic drain created by each new generation of children who begin using tobacco products and become addicted to nicotine. It is the intent of this legislation to preserve and protect the health of children by (1) stopping the illegal sale of tobacco to children, and (2) by severely punishing those who disregard the laws relating to the illegal sale of tobacco products to children. ADD}

{ADD 11-9-13.4. Definitions. -- As used in this chapter:

(a) "Court" means any appropriate district court of the state of Rhode Island.

(b) "Dealer" is synonymous with the term "retail tobacco products dealer".

(c) "Department of health" means the state of Rhode Island health department, its employees, agents or assigns.

(d) "Department of taxation" means the state of Rhode Island taxation division, its employees, agents, or assigns.

(e) "License" is synonymous with the term "retail tobacco products dealer license."

(f) "License holder" is synonymous with the term "retail tobacco products dealer."

(g) "Person" means any individual person, firm, association, or corporation licensed as a retail dealer to sell tobacco products within the state.

(h) "Retail tobacco products dealer" means the holder of a license to sell tobacco products at retail.

(i) "Retail tobacco products dealer license" means a license to sell tobacco products at retail as issued by the department of taxation.

(j) "Spitting tobacco" also means snuff, powdered tobacco, chewing tobacco, dipping tobacco, pouch tobacco or smokeless tobacco.

(k) "Tobacco product(s)" means any product containing tobacco which can be used for, but whose use is not limited to, smoking, sniffing, chewing or spitting of the product.

(l) "Underage individual" or "underage individuals" means any child under the age of eighteen (18) years of age. ADD}

{ADD 11-9-13.5. Responsibility for tobacco or health issues. -- (a) The Rhode Island department of health under a responsibility to protect the public health shall develop, monitor and aggressively enforce health rules and regulations pertaining to stopping the illegal sale of tobacco products to children. ADD}

{ADD 11-9-13.6. Duties of the department of health. -- (a) The department of health shall:

(1) Coordinate and promote the enforcement of the provisions of this chapter and serve as the primary liaison from this department to other state or local agencies, departments, or divisions on issues pertaining to stopping children's access to tobacco.

(2) Provide retail tobacco products dealers signs concerning the prohibition of sales to children under eighteen (18) years of age. Said signs, conforming to the requirements of this chapter, shall be sold at cost. This sign, or an exact duplicate of it made privately, shall be displayed in all locations where tobacco products are sold.

(3) Investigate concurrently with other state and local officials violations of this chapter.

(4) Utilize unannounced statewide compliance checks of both retail tobacco over-the-counter sales and tobacco vending machine sales as part of investigating compliance with the provisions of this chapter. Underage individuals, acting as agents for the department of health and with the written permission of a parent or guardian, may purchase, with impunity from prosecution, tobacco products for the purposes of law enforcement or government research involving monitoring compliance with this chapter, provided that the underage individuals are supervised by an adult law enforcement official. Any individual participating in an unannounced compliance check must state his/her accurate age if asked by the sales representative of the retail establishment being checked.

In fulfilling the requirement of unannounced statewide compliance checks, the Department of health shall maintain complete records of the unannounced compliance checks, detailing, at least, the date of the compliance check, the name and address of the retail establishment checked, the results of the compliance check (sale/no sale), whether the sale was made as an over-the-counter sale or a tobacco vending machine sale, and if a citation was issued for any violation found. Said records shall be subject to public disclosure. Further, the department of health shall report to the owner of each retail establishment checked, the results of any compliance check (sale/no sale) whether the sale was made as an over-the-counter sale or a tobacco vending machine sale, and if a citation was issued for any violation found.

(5) Seek enforcement, concurrently with other state and local officials, of the penalties as detailed in this chapter.

(6) Develop and disseminate community health education information and materials relating to this chapter. ADD}

{ADD 11-9-13.7. Signs concerning sales to individuals under age eighteen (18). -- (a) Signs provided by the department of health, or an exact duplicate of it made privately, shall:

(1) Contain in red bold lettering a minimum of three-eights (3/8) inch high on a white background the following wording:

(2) Contain the phone number at the department of health, where violations of this act can be reported, in addition to any other information required by the department of health.

(3) Be displayed prominently for public view at each cash register, each tobacco vending machine, or any other place from which tobacco products are sold. ADD}

{ADD 11-9-13.8. Prohibitions applicable to license holders and their employees and agents. -- (a) A person that holds a license issued under chapter 44-20 of the RI General Laws, or an employee or agent of that person, is prohibited from selling, distributing or delivering a tobacco product:

(1) To any individual that is under eighteen (18) years of age; or

(2) In any form other than an original factory-wrapped package; or

(3) As a single cigarette sale (44-20-31), or as a sale of cigarettes by the individual piece, known as "loosies." ADD}

{ADD 11-9-13.9. Multiple citations prohibited. -- (a) No person shall be liable under this chapter for more than one (1) citation on any one (1) day. However, a single citation may list one (1) or more violations of this chapter. ADD}

{ADD 11-9-13.10. Prohibition on the distribution of free tobacco products. -- (a) The distribution of free tobacco products or coupons or vouchers redeemable for free tobacco products to any person under eighteen (18) years of age shall be prohibited. Further, the distribution of free tobacco products or coupons or vouchers redeemable for free tobacco products shall be prohibited, regardless of the age of the person to whom the products, coupons, or vouchers are distributed, wihtin five hundred (500) feet of any school. The Attorney General shall bring an action for any violation of this section. Every separate free tobacco product or coupon or voucher redeemable for a free tobacco product in violation of this section shall constitute a separate offense subject to a fine of five hundred dollars ($500). Said penalty shall be assessed against the business or individual responsible for initiating the Rhode Island distribution of the free tobacco products or coupons or vouchers redeemable for free tobacco products. ADD}

{ADD 11-9-13.11. Prohibition on the sale or conveyance of tobacco products through the mail to children under eighteen (18) -- General rule. -- (a) The distribution, sale or conveyance of tobacco products to children under the age of eighteen (18) via the United States postal service, or by any other public or private postal or package delivery service, shall be prohibited. The attorney general shall bring an action for any violation of this chapter. Any distribution, sale or conveyance of a tobacco product to a child under eighteen (18) 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, seller or conveyor by the attorney general of the state of Rhode Island. A minimum fine of five hundred dollars ($500) shall be assessed against any distributor, seller or conveyor convicted of distributing, selling or conveying tobacco products via the United States postal service, or by any other public or private postal or package delivery service, for each delivery, sale or conveyance of a tobacco product to a child under eighteen (18) years of age. ADD}

{ADD 11-9-13.12. Enforcement and penalties -- Citation for violation. -- (a) Any local or state of Rhode Island police department or the attorney general, their officers or agents, shall issue a citation for any violation of the requirements or prohibitions of this chapter.

(b) The license holder receiving the citation may elect to plead guilty to the violation(s) and pay the fine(s) through the mail within ten (10) days, or appear in court to answer to the citation.

(c) All recipients of third and subsequent citations within any thirty-six (36) month period shall appear in court for a hearing on the citation.

(d) The failure of a license holder to either pay the citation through the mail within ten (10) days, where permitted under this section, or to appear in court on the date specified shall be cause for the court to hold the license holder in contempt of court with the penalty assessed a suspension of license for six (6) months and a five hundred dollar ($500) fine.

(e) The court shall impose court costs and any other court fee(s) on anyone convicted in court of a violation of this section. ADD}

{ADD 11-9-13.13. Nature and size of penalties. -- (a) Any person or individual that violates a requirement of 11-9-13.6(a)(2), 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 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 that violates the prohibition of 11-9-13.8(a)(1) and (a)(2) shall be subject to fines as follows:

(1) A fine of one hundred dollars ($100) for the first violation within any thirty-six (36) month period;

(2) A fine of two hundred dollars ($200) for the second violation within any thirty-six (36) month period;

(3) A fine of three hundred dollars ($300)and a fourteen (14) day suspension of the license to sell tobacco products for the third violation within any thirty-six (36) month period;

(4) A fine of five hundred dollars ($500) and a ninety (90) day suspension of the license to sell tobacco products for each violation in excess of three (3) within any thirty-six (36) month period.

(c) Any person that violates a prohibition of 11-9-13.8(a)(4), sale of single cigarettes; 11-9-13.8(a)(3), regarding factory-wrapped packs; shall be subject to a penalty of five hundred dollars ($500) for each violation.

(d) The department of taxation shall not issue a license to any individual, business, firm, 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. ADD}

{ADD 11-9-13.14. Notification to the Department of Taxation of fines imposed. -- (a) The court shall maintain records of any penalty, fine or suspension imposed under this chapter and notify within sixty (60) days the Tax Administrator of said penalty, fine or suspension imposed. ADD}

{ADD 11-9-13.15. Penalty for operating without a dealer license. -- (a) Any individual or business who violates this chapter by selling or conveying a tobacco product without a retail tobacco products dealer license shall be cited for such violation and shall be required to appear in court for a hearing on the citation.

(b) Any individual or business cited for a violation under this section of this chapter shall:

(1) Either post a five hundred dollar ($500) bond with the 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 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 other court fees. ADD}

{ADD 11-9-13.16. Rules and regulations. -- (a) The Department of Health shall promulgate within one hundred twenty (120) days of this act being signed into law the rules and regulations necessary to fulfill the intent of this legislation. ADD}

{ADD 11-9-13.17. Fines collected. -- (a) One-half (1/2) of all the fines collected pursuant to this section shall be transferred to the municipalities in which the citation originated.

(b) One-half (1/2) of all the fines collected pursuant to this section shall be transferred to the general fund. ADD}

{ADD 11-9-13.18. Prohibition on the sale or distribution of certain excise tax stamps. -- (a) The Department of Taxation shall not sell or distribute cigarette excise tax stamps, or permit the use of a metering machine as described in section 44-20-20 for any cigarette product packaged with less than twenty (20) cigarettes per package. The sale or distribution of cigarettes in packages of less than twenty (20) is prohibited. ADD}

{ADD 11-9-13.19. Severability. -- (a) If any provision of this chapter or the application thereof to any individual, or circumstances is held invalid in a court test, such invalidity shall not affect other provisions or applications of the chapter, which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are declared to be severable. ADD}

SECTION 2. Section 11-9-13 of the General Laws in Chapter 11-9 entitled "Children" is hereby amended to read as follows:

11-9-13. Purchase, sale or delivery of tobacco products to persons under eighteen -- Posting notice of law . -- No person under eighteen (18) years of age shall purchase nor shall any person sell, give or deliver to any person under eighteen (18) years of age any tobacco in the form of cigarettes, cigars, pipe tobacco, chewing tobacco, or snuff. Any person, firm, or corporation that owns, manages, or operates a place of business in which tobacco products are sold, including sales through cigarette vending machines, shall post notice of this law conspicuously in such place of business in letters at least three-eights of an inch (3/8") high. Signs required by this section may be provided by the department of health at cost. Any person violating the provisions of this section shall be penalized as follows:

(3) any person violating this section a third time within sixty (60) days of the first offense shall be fined three hundred dollars ($300.) and may be ordered not to sell tobacco products for up to ninety (90) days.

SECTION 3. Sections 44-20-3 and 44-20-31 of the General Laws in Chapter 44-20 entitled "Cigarette Tax" is hereby amended to read as follows:

44-20-3. Penalties for unlicensed business. -- Any distributor or dealer who shall sell, offer for sale, or possess with intent to sell, any cigarette {ADD tobacco ADD} products without a license as provided in section 44-20-2, shall be fined not more than one hundred dollars ($100) for the first offense and not less than fifty dollars ($50.00) nor more than two hundred dollars ($200) for each subsequent offense. {ADD in accordance with the provisions of and the penalties contained in section 11-9-13.15. ADD}

44-20-31. Packages in which cigarettes sold -- Sample packages. -- Whenever cigarettes are sold or offered for sale to consumers, the cigarettes must be sold or offered for sale in individual packages, boxes, or containers bearing stamps evidencing the payment of the tax herein provided. The sale of single cigarettes is hereby prohibited. The administrator may authorize a distributor to give away sample packages each of which shall contain not less than two (2) cigarettes and the taxes on which shall previously have been paid, the taxes to be evidenced in a manner satisfactory to the administrator.

SECTION 4. This act shall take effect upon passage.