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HomeMy WebLinkAboutStudy Session Agenda Packet 11-16-20STUDY SESSION AGENDA CITY COUNCIL CITY OF WHEAT RIDGE, COLORADO November 16, 2020 6:30 p.m. This meeting will be conducted as a VIRTUAL MEETING. No members of the Council or City staff will be physically present at the Municipal building for this meeting; the public may not attend in person. The public may participate in these ways: 1. Provide comment in advance at www.wheatridgespeaks.org (comment by noon on November 16, 2020) 2. Virtually attend and participate in the meeting through a device or phone: • Click here to join and provide public comment • Or call +1-669-900-6833 with Access Code: 955 8575 4834 3. View the meeting live or later at www.wheatridgespeaks.org, Channel 8, or YouTube Live at https://www.ci.wheatridge.co.us/view 4. Individuals who, due to technology limitations, are unable to participate in the meeting virtually (via the Zoom platform) or by calling in on the telephone may contact Danitza Sosa, Assistant to the Mayor and City Council, at 303-235-2977 by noon on the day of the meeting. Arrangements will be made for those individuals to access City Hall during the meeting to view the meeting and provide public comment if desired. These comments will be heard and seen in real time by members of Council and City staff. Individuals accessing City Hall must practice social distancing, wear a mask or other facial covering and be free of COVID-19 symptoms. Individuals with disabilities are encouraged to participate in all public meetings sponsored by the City of Wheat Ridge. Contact the Public Information Officer at 303-235-2877 or wrpio@ci.wheatridge.co.us with as much notice as possible if you are interested in participating in a meeting and need inclusion assistance. Citizen Comment on Agenda Items 1. Vaping/Tobacco Ordinance Update 2. Staff Report(s) 3. Elected Officials’ Report(s) ADJOURNMENT Memorandum TO: Mayor and City Council THROUGH: Patrick Goff, City Manager FROM: Marianne Schilling, Assistant to the City Manager DATE: November 16, 2020 SUBJECT: Vaping and Tobacco Regulation – Term Sheet ISSUE: Tobacco and youth vaping continue to be on the rise in Wheat Ridge and Jefferson County. Based upon previous Council direction, staff presented options during a December 2019 study session to be considered for a youth vaping and tobacco ordinance. Staff received specific policy direction at that time, and in July 2020 the State passed House Bill 20-1001 (HB20-1001) which regulates the retail of cigarettes, tobacco and nicotine products in Colorado. Staff has returned with a proposed regulation incorporating both previous Council direction and the requirements put forth by HB20-1001. Staff recommends the preparation of an ordinance to create regulations for tobacco retailer licensing. PRIOR ACTION: At the August 19, 2019 study session, Jefferson County Public Health (JCPH) presented an overview of youth vaping and tobacco use in Wheat Ridge and the region. Staff returned on December 2, 2019 with policy options to include in a potential future ordinance and received direction from City Council at that time. BACKGROUND: House Bill 20-1001: Nicotine Product Regulation was passed by the state legislature in July 2020. In summary, effective July 1, 2021, all retailers who sell cigarettes, tobacco products or nicotine products are required to obtain a state license. Additionally, the minimum age for the sale of these products has been increased from 18 to 21 years of age. In December 2019, Staff presented several considerations for City Council to discuss regarding a future tobacco ordinance, including: the cost of licensing, the minimum age to sell tobacco, the minimum age to buy tobacco, the distance a tobacco retailer may be located in proximity to a school, enforcement, mobile vendors and education. In providing direction, Council also requested staff to return with more information regarding: 1) the estimated cost of implementing the licensing program, 2) whether or not it would make sense to require tobacco retailers to be at least 500 feet from a school, 3) language and penalties for selling tobacco without a license and 4) whether or not fines can go toward education related to tobacco use. Provided below is Item No. 1 information on each of these four topics; this content takes into consideration regulations mandated by HB20-1001: 1) Implementation Costs: JCPH and the Wheat Ridge Police Department have worked with the City to estimate the costs to initiate, administer and enforce a tobacco retailer license program. With an estimated number of tobacco retailers between 70-80, the total administrative burden would be approximately $300 per retailer in the first year, and $250 ongoing. JCPH recommends that costs and fees are evaluated every 2-3 years for potential adjustments. For examples of peer agencies, please see the list below: • Edgewater: New license $200 / Renewal $175 / Initial application fee $25 • Lakewood: Initial application fee $100 / Annual license $300 • Broomfield: Annual license $300 • Golden: Annual license $200 • Denver: Initial application fee $250 / Annual license $500 Staff is seeking Council input on the initial and renewal license fees. 2) Separation Requirements: Since last meeting in December 2019, the State, through the passage of HB20-1001, has set a 500-foot perimeter for tobacco retail establishments to be separated from schools with a grandfather clause included. Some communities in Colorado have set their local license to add other provisions related to “youth-oriented facilities” such as playgrounds and recreation centers. City Council may consider extending the minimum perimeter to be a greater distance and/or adding provisions to the ordinance to include separation from other “youth-oriented facilities.” 3) Penalties: HB20-1001 has set the following penalties for infractions related to tobacco retailers: Infraction Associated Statue Penalty Sale of cigarettes, tobacco products or nicotine products to persons under 21 C.R.S.§ 44-7-103(1) Violation(s) within 24 months: • 1st: $250-$500 • 2nd: $500-750 7 day no sales • 3rd: $750-$1,000 30 days no sales • 4th: $1,000-$15k up to 3 yrs. no sales Sale of cigarettes in less than 20 packages, RYO Cigarettes C.R.S.§ 44-7-103(4) • 1st: Written warning • 2nd: $250 • 3rd: $500 • 4th: $1,000 • 5th: $1,000-$15k Sale of cigarettes, tobacco products or nicotine products without a license C.R.S.§ 44-7- 106(1)(c)(I) • 1st: $1,000 • 2nd: $2,000 • 3rd: $3,000 • 3rd stop order-no sales 3yr •Each sale is separate and distinct. Electronic smoking device advertisements visible outside of retail location C.R.S.§ 44-7-104.7(2)•1st: $1,000 •2nd: $2,000 •3rd: $3,000 Delivery of cigarettes, tobacco products or nicotine products C.R.S.§ 44-7-104.7(3)•1st: $1,000 •2nd: $2,000 •3rd: $3,000 Prohibited sale of cigarettes, tobacco products or nicotine products in vending machines 44-7-103(2)•1st: $25 •2nd: $50 •3rd: $100 •4th: $250 •5th: $250-1,000 Clerk under the age of 18 44-7-103(4.5)•1st: $25 •2nd: $50 •3rd: $100 •4th: $250 •5th: $250-1,000 Warning sign violations 44-7-103(3)•1st: $25 •2nd: $50 •3rd: $100 •4th: $250 •5th: $250-1,000 For local licensing, JCPH recommends the following best practices related to retailer infractions: •First violation within a three-year period: Tobacco Retail License (TRL) suspended for seven days •Second violation within a three-year period: TRL suspended for thirty days •Third violation within a three-year period: TRL suspended for one year •Fourth violation within a three-year period: TRL revoked, and the Licensee will be deemed ineligible to apply for a TRL for two years The process of suspension, conditional suspension or revocation of a business license is currently laid out in Sec. 11-31 of the Municipal Code. In the December 2019 study session, Council requested information regarding fees to consider in addition to license suspension and/or revocation. Pursuant to Sec. 1-5 of the Code, the maximum allowable amount that the City can fine an individual is $2,650. Should City Council want to implement fines outside of the State penalties, City Council may consider a tiered approach similar to the following: •First violation within a three-year period: $250 •Second violation within a three-year period: $500 • Third violation within a three-year period: $1,000 • Fourth violation within a three-year period: $2,500 JCPH recommends the best practice approach of a suspension and revocation graduated policy with due process provided for all parties, rather than creating a city-imposed fine. The financial consequences of not being able to sell tobacco products are often more meaningful to the retailers than paying a fine. 4) Allocation of Fine Revenues: Due to TABOR restrictions, the City would not be able to utilize revenue related to tobacco retailer infractions for educational purposes related to tobacco use. However, some communities in Colorado have referred ballot measures to voters to assess a local tobacco tax in order to fund public health and tobacco prevention programming. For example, Carbondale passed a ballot initiative in April 2020 which delineated how funds will be spent on tobacco education and cessation programs. Additionally, Proposition EE was passed in the November 2020 Colorado General Election, and it will increase the tax on a pack of cigarettes from 84 cents to $2.64 by 2027. The money from the tax increases will be directed toward public education, universal preschool, and vaping cessation and education programs. City Council may consider bringing forth a ballot initiative to assess a local tobacco tax if the desire is to specifically fund public health education and tobacco prevention. PROPOSED REGULATIONS: Provided below is a list of proposed regulations based on City Council’s December 2019 consensus as well as HB20-1001, which was passed in July 2020. Items which are currently mandated through HB20-1001 are indicated with an asterisk (*). Registration: • Regulate and tax Tobacco Retailer Licensing through the City’s Tax Division in Administrative Services • Require a supplemental form in addition to the City’s standard Business License application • The cost to be licensed is pending City Council direction and final internal review. Regulations: • The minimum age to purchase tobacco is 21* • The minimum age to sell tobacco is 18* • New tobacco retail licensees must be at least 500 feet from schools. Retailers that are closer than 500 feet prior to the passing of HB 1001 will be grandfathered in.* • Youth-populated areas, which include playgrounds and recreation centers are included in the restrictions listed above pending City Council direction. • No license shall be issued to a tobacco retailer at a location other than a fixed location. • No tobacco products will be available to customers via self-service, including vending machines* Compliance and Enforcement: • Enforcement will begin July 21, 2021.* o Due to the COVID-19 pandemic, the Department of Revenue has announced a pause in rulemaking and license fee collection which was supposed to start July 1, 2021. It is unknown when this implementation effort will resume. • Wheat Ridge Police Department will complete at least two compliance checks per year* • Penalty for failure to comply is pending City Council direction The proposed regulations summarized above will primarily be located in Chapter 11 of the Code (Licenses, Permits And Miscellaneous Business Regulations), to include the addition of Article XIV, Tobacco Product Retail License. Chapter 16 of the Code will also be amended appropriately to reflect the associated changes. FINANCIAL IMPACT: Additional City staff time spent initiating, administering and enforcing the Tobacco Retail License is expected to be covered by the license fee. NEXT STEPS: The purpose of the November 16 study session is to seek Council input on these proposed provisions. Staff is asking for consensus on the regulatory framework presented, and also seeking specific direction on the following: 1) the recommended cost of implementing the licensing program, 2) whether or not to require tobacco retailers to be more than 500 feet from a school, 3) penalties for selling tobacco without a license, and 4) whether or not City Council may want Staff to investigate additional ideas for education around tobacco use. Staff recommends that Council direct staff to bring forward an ordinance on first reading revising Chapter 11 of the City Municipal Code to include the proposed regulations as well as any changes related to the additional direction provided. ATTACHMENTS: 1. House Bill 20-1001 2. HB20-1001 Summary Sheet 3. Municipal Tobacco Regulation Chart HOUSE BILL 20-1001 BY REPRESENTATIVE(S) Mullica and Larson, Arndt, Bird, Buckner, Caraveo, Duran, Hooton, Jaquez Lewis, Kennedy, Kipp, Lontine, McCluskie, Roberts, Snyder, Becker, Woodrow; also SENATOR(S) Bridges and Priola, Fenberg, Fields, Ginal, Hansen, Story, Todd. CONCERNING NICOTINE PRODUCT REGULATIONS, AND, IN CONNECTION THEREWITH, MAKING AN APPROPRIATION. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, 18-13-121, amend (1)(a), (1)(b), (1)(d), and (3); and repeal (2) as follows: 18-13-121. Furnishing cigarettes, tobacco products, or nicotine products to persons under twenty-one years of age. (1) (a) A person shall not give, sell, distribute, dispense, or offer for sale a cigarette, tobacco product, or nicotine product to any person who is under eighteen TWENTY-ONE years of age. (b) Before giving, selling, distributing, dispensing, or offering to sell to an individual any cigarette, tobacco product, or nicotine product, a person Capital letters or bold & italic numbers indicate new material added to existing law; dashes through words or numbers indicate deletions from existing law and such material is not part of the act. ATTACHMENT 1 shall request from the individual and examine a government-issued photographic identification that establishes that the individual is cightccn TWENTY-ONE years of age or older. cxcept , in facc-to-fact transactions, ars requirementis waived if rc individual appearsolder of-age: (d) It is an affirmative defense to a prosecution under paragraph of this subsection (1) SUBSECTION (1)(a) OF THIS SECTION that the person furnishing the cigarette, tobacco product, or nicotine product was presented with and reasonably relied upon a document GOVERNMENT-ISSUED PHOTOGRAPHIC IDENTIFICATION that identified the individual receiving the cigarette, tobacco product, or nicotine product as being eighteen TWENTY-ONE years of age or older. (2) (a)---A--person-who-is-andt, eiglttetm years of -agc -and who purchases or attempts to purchaseny cigai tt s, tobacco pi or . ii pi mil 1 class p 0 IS acid, UpOirk.,011V1c., iChi thercof;-shaifbe-Punished-brEr-ftne--of lane--hundredidthEars;excePt -that following a conviction adjudicate subseetion-(2--)-,-the-eottrt-in-fiett-of-the-fine-mar sentenee-fire-persorr-to costs. participateirr a-tthame-edtreation-program7The-court-nrar allow-a-person conviettd-underthis-subsection-(2-yto-perfornreommunity-service-and-in granted-erectit-against-th-e-fine-and-court-easts-at-the-rate-affive-doliars-for taelr hour-of-wark-perforrned-for-np-to-fiftr pereent-of the-fine-and-court not orrensc unacr pa p the poison under eighteen years of agc was acting at rc dircction of emprioyee-of-a-governmental-ageney-autherized--to-enforee-or-ensure comp iaticc with aws relating to the prohibition of sale of cigarettes, tobaece pr , of nicotirrc products to minors. (3) (a) Nothing in this section prohibits a statutory or home rule municipality, county, or city and county from enacting an ordinance or resolution that prohibits a minor from purchasing THE SALE OF any cigarettes, tobacco products, or nicotine products TO PERSONS UNDER TWENTY-ONE YEARS OF AGE or imposes requirements more stringent than provided in this section. (b) A STATUTORY OR HOME RULE MUNICIPALITY, COUNTY, OR CITY rtY PAGE 2-HOUSE BILL 20-1001 AND COUNTY SHALL NOT ENACT AN ORDINANCE OR RESOLUTION THAT ESTABLISHES A MINIMUM AGE TO PURCHASE CIGARETTES, TOBACCO PRODUCTS, OR NICOTINE PRODUCTS THAT IS UNDER TWENTY-ONE YEARS OF AGE. SECTION 2. In Colorado Revised Statutes, 25-14-204, amend (2)(b) and (3) as follows: 25-14-204. General smoking restrictions. (2) A cigar-tobacco bar: (b) Shall prohibit entry by any person under cightccn TWENTY-ONE years of age and shall display signage in at least one conspicuous place and at least four inches by six inches in size stating: "Smoking allowed. Children PERSONS under eighteen TWENTY-ONE years of age may not enter." (3) A retail tobacco business: (a) Shall prohibit entry by any person under cightcen TWENTY-ONE years of age; and (b) Shall display signage in at least one conspicuous place and at least four inches by six inches in size stating either: (I) "Smoking allowed. Childicn PERSONS under cighte TWENTY-ONE years of age may not enter."; or (II) In the case of a retail tobacco business that desires to allow the use of ESDs but not other forms of smoking on the premises, "Vaping allowed. Children PERSONS under cightcen TWENTY-ONE years of age may not enter." SECTION 3. In Colorado Revised Statutes, 25-14-208.5, amend (2) introductory portion, (2)(a), and (2)(b) as follows: 25-14-208.5. Violations relating to signage and admission of persons under twenty-one years of age - limitation on fines. (2) Notwithstanding subsection (1) of this section, no A fine for a violation of section 25-14-204 (2) or (3) shall NOT be imposed upon a person RETAILER that can establish as an affirmative defense that, prior to the date of the violation, it THE RETAILER: PAGE 3-HOUSE BILL 20-1001 (a) Had adopted and enforced a written policy against allowing persons under eighteen TWENTY-ONE years of age to enter the premises; (b) Had informed its THE RETAILER'S employees of the applicable laws regarding the prohibition of AGAINST persons under cightccn TWENTY-ONE years of age to cntcr or remain ENTERING OR REMAINING in areas where smoking is permitted; SECTION 4. In Colorado Revised Statutes, 25-14-301, amend (2) and (4); and repeal (3)(b) as follows: 25-14-301. Sale of cigarettes, tobacco products, or nicotine products to persons under twenty-one years of age prohibited - definitions. (2) (a) Posscssion THE SALE of a cigarette or tobacco product by TO a person who is under cightccn TWENTY-ONE years of age is prohibited. (b) ft shaii-not-be-arroffense-tincier paragrapir (a)-oft-his-sttbseetion (2)if thc person under cightccn years of age was acting-at thc direction of an crnployce of a governmental agcncy authorized to enforce or ensure comp-fianee-wit-h-faws-relatingterthe-prohibiti-orr oft-he-safe-of eigarettes-and tobacco products to minors. (3) As used in this section, unless the context otherwise requires: (b) "Posscssion"means that a person. as of holds any amount of cigarettcs at tobaccopro anywncrc on Ins or net person, (II)Owns or has custody of g P , or g p presence-anti-control-7 (4) (a) Nothing in this section prohibits a statutory or home rule municipality, county, or city and county from enacting an ordinance or resolution that prohibits the posscssion SALE of cigarettes, tobacco products, or nicotine products by a minor TO A PERSON UNDER TWENTY-ONE YEARS OF AGE or imposes requirements more stringent than provided in this section. PAGE 4-HOUSE BILL 20-1001 0 (b) A STATUTORY OR HOME RULE MUNICIPALITY, COUNTY, OR CITY AND COUNTY SHALL NOT ENACT AN ORDINANCE OR RESOLUTION THAT ESTABLISHES A MINIMUM AGE TO PURCHASE CIGARETTES, TOBACCO PRODUCTS, OR NICOTINE PRODUCTS THAT IS UNDER TWENTY-ONE YEARS OF AGE. SECTION 5. In Colorado Revised Statutes, 30-15-401, amend (1.5) as follows: 30-15-401. General regulations - definitions. (1.5) In addition to any other powers, the board of county commissioners has the power to adopt a resolution or an ordinance to: (a) Regulate the possession or purchasing SALE of cigarettes, tobacco products, or nicotine products, as defined by section 18-13-121 (5), by TO a minor yr to A-gulatc the sale of cigarettes, tobacco products, or nicotine-pro-duets-ter minors-,-and CONSISTENT WITH SECTION 18-13-121 (3); (b) Limit smoking, as defined in section 25-14-203 (16), in any manner that is no less restrictive than the limitations set forth in the "Colorado Clean Indoor Air Act", part 2 of article 14 of title 25; AND (c) LICENSE OR OTHERWISE REGULATE THE SALE OF CIGARETTES, TOBACCO PRODUCTS, OR NICOTINE PRODUCTS. SECTION 6. In Colorado Revised Statutes, amend 44-7-102 as follows: 44-7-102. Definitions. As used in this article 7, unless the context otherwise requires: (1) "Cigarette, tobacco product, or nicotine product" has the same meaning as provided in section 18-13-121 (5). (2) (a) "DISTRIBUTOR" MEANS A PERSON WHO SELLS OR DISTRIBUTES CIGARETTES, TOBACCO PRODUCTS, OR NICOTINE PRODUCTS TO LICENSED RETAILERS IN THIS STATE. (b) "DISTRIBUTOR" INCLUDES A "DISTRIBUTOR" OR "DISTRIBUTING SUBCONTRACTOR" AS THOSE TERMS ARE DEFINED IN SECTION 39-28.5-101. PAGE 5-HOUSE BILL 20-1001 (2) (3) "Division" means the division of liquor enforcement within the department. (4) "ELECTRONIC SMOKING DEVICE" HAS THE MEANING SET FORTH IN SECTION 25-14-203 (4.5). (3)) (5) "Hearing officer" means a person designated by the executive director to conduct hearings held pursuant to section 44-7-105. (6) "LOCAL AUTHORITY" MEANS THE GOVERNING BODY OF A LOCAL GOVERNMENT OR ANY AUTHORITY DESIGNATED BY A MUNICIPAL OR COUNTY CHARTER, MUNICIPAL ORDINANCE, OR COUNTY RESOLUTION TO REGULATE RETAILERS. (7) "LOCAL GOVERNMENT" MEANS A STATUTORY OR HOME RULE MUNICIPALITY, COUNTY, OR CITY AND COUNTY. (4-) (8) "Minor" means a person under eighteen TWENTY-ONE years of age. (9) "NEW RETAIL LOCATION" MEANS A RETAIL LOCATION IN THE STATE AT WHICH CIGARETTES, TOBACCO PRODUCTS, OR NICOTINE PRODUCTS WERE NOT SOLD BEFORE THE EFFECTIVE DATE OF THIS SUBSECTION (9). (-5-) (10) "Retailer" means THE OWNER OR OPERATOR OF a business of any kind at a specific location that sells cigarettes, tobacco products, or nicotine products to a user or consumer. (11) "SCHOOL" HAS THE MEANING SET FORTH IN SECTION 44-3-103 (50). (12) "STATE LICENSE" MEANS A LICENSE ISSUED BY THE DIVISION IN ACCORDANCE WITH SECTION 44-7-104.5. (13) (a) "WHOLESALER" MEANS A PERSON ENGAGED IN THE WHOLESALE DISTRIBUTION OF CIGARETTES, TOBACCO PRODUCTS, OR NICOTINE PRODUCTS IN THIS STATE. (b) "WHOLESALER" INCLUDES A "WHOLESALER" AND "WHOLESALE SUBCONTRACTOR" AS THOSE TERMS ARE DEFINED IN SECTION 39-28-101. PAGE 6-HOUSE BILL 20-1001 SECTION 7. In Colorado Revised Statutes, 44-7-103, amend (1), (2), and (3); and add (4.5) as follows: 44-7-103. Sale of cigarettes, tobacco products, or nicotine products to persons under twenty-one years of age or in vending machines prohibited - warning sign - small quantity sales prohibited - rules. (1) No A retailer shall NOT sell or permit the sale of cigarettes, tobacco products, or nicotine products to a minor; except that it is not a violation if the retailer establishes that the person selling the cigarette, tobacco product, or nicotine product was presented with and reasonably relied upon a VALID GOVERNMENT-ISSUED photographic identification, AS DETERMINED BY THE EXECUTIVE DIRECTOR BY RULE, that identified the person purchasing the cigarette, tobacco product, or nicotine product as being eighteen TWENTY-ONE years of age or older. A RETAILER SHALL REQUIRE AN INDIVIDUAL WHO SEEKS TO PURCHASE CIGARETTES, TOBACCO PRODUCTS, OR NICOTINE PRODUCTS AND WHO APPEARS TO BE UNDER FIFTY YEARS OF AGE TO PRESENT TO THE RETAILER A VALID GOVERNMENT-ISSUED PHOTOGRAPHIC IDENTIFICATION AT THE TIME OF PURCHASE. (2) No A retailer shall NOT sell or offer to sell any cigarettes, tobacco products, or nicotine products by use of a vending machine or other coin-operated machine; except that cigarettes may be sold at retail through vending machines only in AN AGE-RESTRICTED AREA OF A LICENSED GAMING ESTABLISHMENT, AS DEFINED IN SECTION 44-30-103 (18). forj—FactoriesThusinessesTaffiecs,or othcr p ac s not opt.ic tu t gencrar pu lc, )Places to whichaic not permitted acc ss, or te)-Estahfishments-vrhere-theNending-nrarhine-olispenses-eigarettes through thc operation of a dcvicc that cnablcs an adult cmploycc of thc cstablisluncnt to prcvcnt thc dispensing of cigarcttes to minors. (3) Any person who sells or offers to sell cigarettes, tobacco products, or nicotine products shall display a warning sign as specified in this subsection (3). The warning sign must be displayed in a prominent place in the building and on any vending or coin-operated machine at all times, must have a minimum height of three inches and a width of six inches, and must read as follows: PAGE 7-HOUSE BILL 20-1001 WARNING IT IS ILLEGAL IOR ILLEGAL TO SELL CIGARETTES, TOBACCO PRODUCTS, OR NICOTINE PRODUCTS TO ANY PERSON UNDER EIGHTEEN TWENTY-ONE YEARS OF AGE. TO PURCIIASE CIGARETTES, TOBACCO 3 5 CONVICTION,A $100.00 FINE MAY BE IMPOSED STATE LAW REQUIRES THAT, TO PURCHASE CIGARETTES, TOBACCO PRODUCTS, OR NICOTINE PRODUCTS AT THIS RETAIL LOCATION, A PERSON MUST PRESENT A VALID GOVERNMENT-ISSUED PHOTOGRAPHIC IDENTIFICATION AT THE TIME OF PURCHASE IF THE PERSON APPEARS TO BE UNDER FIFTY YEARS OF AGE. (4.5) A RETAILER SHALL NOT PERMIT A PERSON UNDER EIGHTEEN YEARS OF AGE TO SELL OR PARTICIPATE IN THE SALE OF CIGARETTES, TOBACCO PRODUCTS, OR NICOTINE PRODUCTS. THIS SECTION DOES NOT PROHIBIT AN EMPLOYEE OF A RETAILER WHO IS EIGHTEEN YEARS OF AGE OR OLDER BUT UNDER TWENTY-ONE YEARS OF AGE FROM HANDLING OR OTHERWISE HAVING ANY CONTACT WITH CIGARETTES, TOBACCO PRODUCTS, OR NICOTINE PRODUCTS THAT ARE OFFERED FOR SALE AT THE RETAILER'S BUSINESS. SECTION 8. In Colorado Revised Statutes, 44-7-104, amend (3)(b) and (4); and add (5) as follows: 44-7-104. Enforcement authority - designation of agency - coordination - sharing of information - rules. (3) (b) (I) To THE DEGREE THAT IS ACHIEVABLE WITHIN THE AMOUNT OF FEES COLLECTED, EACH YEAR, the division shall perform, CAUSE TO BE PERFORMED, OR COORDINATE WITH A LOCAL AUTHORITY IN THE PERFORMANCE OF at least TWO COMPLIANCE CHECKS AT EACH RETAIL LOCATION AT WHICH CIGARETTES, TOBACCO PRODUCTS, OR NICOTINE PRODUCTS ARE SOLD OR AT LEAST the minimum number of random inspcctions of busincsscs that scil cigarcttcs, tobautty products,or nicotinc products at ictail an ANNUAL COMPLIANCE CHECKS required by federal regulations, WHICHEVER IS GREATER. THE DIVISION SHALL PERFORM A COMPLIANCE CHECK BY ENGAGING A PERSON UNDER TWENTY-ONE YEARS OF AGE TO ENTER A RETAIL LOCATION TO PURCHASE CIGARETTES, TOBACCO PRODUCTS, OR NICOTINE PRODUCTS. PAGE 8-HOUSE BILL 20-1001 (II) IF A COMPLIANCE CHECK OF A RETAIL LOCATION PERFORMED PURSUANT TO SUBSECTION (3 )(b)(I) OF THIS SECTION REVEALS A VIOLATION OF THIS ARTICLE 7, THE DIVISION, OR A LOCAL AUTHORITY IN COORDINATION WITH THE DIVISION PURSUANT TO SECTION 44-7-104.5 (4)(c), SHALL CONDUCT AN ADDITIONAL COMPLIANCE CHECK OF THE RETAIL LOCATION WITHIN THREE TO SIX MONTHS AFTER THE COMPLIANCE CHECK AT WHICH THE VIOLATION WAS DISCOVERED. (4) In order to enforce laws relating to the prohibition of the sale of cigarettes, tobacco products, or nicotine products to minors, the department of revenue may sharc info' illation oil SHALL MAINTAIN AND PUBLISH ON THE DIVISION'S PUBLIC WEBSITE the identification and address BUSINESS NAMES AND ADDRESSES of STATE-LICENSED retailers that sell cigarettes, tobacco products, or nicotine products AND MAY SHARE THE LIST OR INFORMATION INCLUDED IN THE LIST with any state OR LOCAL agency responsible for the enforcement of laws relating to the prohibition of the sale of cigarettes, tobacco products, or nicotine products to minors. (5) (a) To ENSURE THE PROTECTION OF PUBLIC HEALTH, THE EXECUTIVE DIRECTOR SHALL PROMULGATE RULES CONCERNING THE DIVISION'S ENFORCEMENT OF THIS ARTICLE 7, INCLUDING RULES: (I) To SET NECESSARY AND REASONABLE FEE AMOUNTS THAT WILL COVER THE DIRECT AND INDIRECT COST OF ENFORCEMENT AND ADMINISTRATION; EXCEPT THAT THE FEE AMOUNT MUST NOT EXCEED FOUR HUNDRED DOLLARS PER YEAR. THE EXECUTIVE DIRECTOR MAY BY RULE INCREASE THE MAXIMUM FEE AMOUNT TO SIX HUNDRED DOLLARS IF THE DIVISION DETERMINES THAT STATEWIDE COMPLIANCE WITH THIS ARTICLE 7 FALLS BELOW NINETY PERCENT. (II) FOR RETAILERS WITH MORE THAN TEN RETAIL LOCATIONS UNDER THE SAME CORPORATE OR BUSINESS ENTITY, THAT ALLOW THE CORPORATE OR BUSINESS ENTITY TO PAY A SINGLE, LARGE-OPERATOR LICENSE FEE INSTEAD OF PAYING A SEPARATE FEE FOR EACH RETAIL LOCATION. NOTWITHSTANDING SUBSECTION (5)(a)(I) OF THIS SECTION, THE FEE AMOUNT MUST BE SUFFICIENT TO COVER THE DIVISION'S DIRECT AND INDIRECT COSTS OF ENFORCING AND ADMINISTERING THIS ARTICLE 7 IN RELATION TO A LARGE OPERATOR. NOTHING IN THIS SUBSECTION (5)(a)(II) PREVENTS THE DIVISION FROM ENFORCING THIS ARTICLE 7 ON A PER-RETAIL LOCATION BASIS. PAGE 9-HOUSE BILL 20-1001 (III) IN ACCORDANCE WITH SUBSECTIONS (2) AND (3)(b) OF THIS SECTION, REGARDING THE NUMBER AND MANNER OF COMPLIANCE CHECKS OF RETAIL LOCATIONS THAT THE DIVISION SHALL PERFORM, CAUSE TO BE PERFORMED, OR COORDINATE WITH A LOCAL AUTHORITY IN THE PERFORMANCE OF EACH YEAR. THE RULES MUST ENSURE THAT ANY COORDINATION BETWEEN THE DIVISION AND A LOCAL AUTHORITY ON THE PERFORMANCE OF COMPLIANCE CHECKS SATISFIES FEDERAL REQUIREMENTS AND THAT LOCAL AUTHORITIES APPRISE THE DIVISION IN AN APPROPRIATE FORM AND MANNER OF COMPLIANCE CHECKS CONDUCTED. (IV) To ENSURE THAT COMPLAINTS RECEIVED BY THE DIVISION ARE FORWARDED TO THE APPROPRIATE LOCAL AUTHORITY AND THAT COMPLAINTS RECEIVED BY THE LOCAL AUTHORITY ARE FORWARDED TO THE DIVISION FOR THE TIMELY INVESTIGATION INTO AND ACTION TAKEN ON THE COMPLAINTS. THE RULES MUST ENSURE THAT LOCAL AUTHORITIES APPRISE THE DIVISION OF COMPLAINTS AND ANY ACTION TAKEN ON THOSE COMPLAINTS. (V) REGARDING RETAILERS' OBLIGATIONS TO COMPLY WITH THE DIVISION'S DOCUMENT PRODUCTION REQUESTS RELATED TO IMPLEMENTATION AND ENFORCEMENT OF THIS ARTICLE 7. (b) THE EXECUTIVE DIRECTOR MAY PROMULGATE RULES AUTHORIZING A PERSON TO APPLY FOR A TEMPORARY STATE LICENSE AND REQUIRING THE PAYMENT OF A TEMPORARY STATE LICENSE FEE. IF THE EXECUTIVE DIRECTOR PROMULGATES SUCH RULES, THE RULES MUST SPECIFY THAT THE TEMPORARY STATE LICENSE REMAINS IN EFFECT FOR NO MORE THAN THIRTY DAYS AND IS NOT RENEWABLE. (C) IN PROMULGATING RULES PURSUANT TO THIS SUBSECTION (5), THE EXECUTIVE DIRECTOR MAY CONSULT WITH THE DEPARTMENT OF HUMAN SERVICES, THE DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT, LOCAL GOVERNMENTS, AND ANY OTHER STATE OR LOCAL AGENCIES THE EXECUTIVE DIRECTOR DEEMS APPROPRIATE. (d) ON OR BEFORE JULY 1, 2021, THE EXECUTIVE DIRECTOR SHALL, IN CONSULTATION WITH LICENSED WHOLESALERS AND RETAILERS, PROMULGATE RULES REGARDING THE TARGETED ENFORCEMENT AGAINST THE SMUGGLING OF CIGARETTES, TOBACCO PRODUCTS, OR NICOTINE PRODUCTS. PAGE 10-HOUSE BILL 20-1001 SECTION 9. In Colorado Revised Statutes, add 44-7-104.5 as follows: 44-7-104.5. License required - fees - rules - repeal. (1) (a) (I) ON OR AFTER JULY 1, 2021, A RETAILER DOING BUSINESS IN THIS STATE SHALL NOT SELL OR OFFER FOR SALE CIGARETTES, TOBACCO PRODUCTS, OR NICOTINE PRODUCTS IN THIS STATE WITHOUT FIRST OBTAINING A STATE LICENSE AS A RETAILER FROM THE DIVISION. (II) A STATE LICENSE IS VALID FOR ONE YEAR AND MAY BE RENEWED BY APPLICATION IN THE FORM AND MANNER PRESCRIBED BY THE DIVISION AND BY PAYMENT OF A FEE SET BY RULE PURSUANT TO SECTION 44-7-104 (5)(a)(I). (b) AN OWNER OF MULTIPLE RETAIL LOCATIONS IN THE STATE AT WHICH CIGARETTES, TOBACCO PRODUCTS, OR NICOTINE PRODUCTS ARE SOLD OR OFFERED FOR SALE MUST APPLY FOR A SEPARATE STATE LICENSE FOR EACH RETAIL LOCATION. IF THE EXECUTIVE DIRECTOR WISHES TO AUTHORIZE AN OWNER OF MULTIPLE RETAIL LOCATIONS IN THE STATE TO APPLY SIMULTANEOUSLY FOR STATE LICENSES FOR EACH RETAIL LOCATION OWNED BY SUBMITTING A JOINT APPLICATION, THE EXECUTIVE DIRECTOR MAY ESTABLISH BY RULE: (I) THE PROCESS BY WHICH THE OWNER MAY APPLY FOR STATE LICENSES FOR MULTIPLE RETAIL LOCATIONS IN A JOINT APPLICATION; AND (II) A JOINT APPLICATION FEE. (2) (a) EXCEPT AS PROVIDED IN SUBSECTION (4)(b) OF THIS SECTION, THE DIVISION SHALL APPROVE OR DENY A STATE LICENSE APPLICATION WITHIN SIXTY DAYS AFTER RECEIVING THE APPLICATION. THE DIVISION MAY DENY AN APPLICATION ONLY FOR GOOD CAUSE. IF THE DIVISION DENIES AN APPLICATION, THE DIVISION SHALL INFORM THE APPLICANT IN WRITING OF THE REASONS FOR THE DENIAL, AND THE APPLICANT, WITHIN FOURTEEN DAYS AFTER RECEIVING THE WRITTEN DENIAL, MAY REQUEST THAT A HEARING BE HELD ON THE MATTER IN ACCORDANCE WITH SECTION 44-7-105. (b) (I) IF A RETAILER THAT SOLD OR OFFERED TO SELL CIGARETTES, TOBACCO PRODUCTS, OR NICOTINE PRODUCTS AT A RETAIL LOCATION IN THE STATE BEFORE JULY 1, 2021, HAS APPLIED FOR A STATE LICENSE FROM THE PAGE 11-HOUSE BILL 20-1001 DIVISION AND PAID THE STATE LICENSE FEE ON OR BEFORE JULY 1, 2021, THE RETAILER MAY CONTINUE TO SELL OR OFFER TO SELL CIGARETTES, TOBACCO PRODUCTS, OR NICOTINE PRODUCTS ON OR AFTER JULY 1, 2021, WITHOUT A STATE LICENSE DURING THE PENDENCY OF THE DIVISION'S REVIEW OF THE RETAILER'S STATE LICENSE APPLICATION. (II) THIS SUBSECTION (2)(b) IS REPEALED, EFFECTIVE JULY 1, 2022. (3) (a) UPON OBTAINING A STATE LICENSE FROM THE DIVISION FOR A RETAIL LOCATION, A RETAILER SHALL CONSPICUOUSLY DISPLAY THE STATE LICENSE AT THE RETAIL LOCATION. (b) (I) STATE LICENSES ARE NOT TRANSFERABLE. IF A LICENSEE CEASES TO BE A RETAILER AT A RETAIL LOCATION BY REASON OF DISCONTINUATION, SALE, OR TRANSFER OF THE LICENSEE'S BUSINESS, THE LICENSEE SHALL NOTIFY THE DIVISION IN WRITING ON OR BEFORE THE DATE ON WHICH THE DISCONTINUANCE, SALE, OR TRANSFER TAKES EFFECT. (II) IF A PERSON TO WHOM A RETAILER'S RETAIL LOCATION IS SOLD APPLIES FOR A STATE LICENSE FOR THE RETAIL LOCATION WITHIN THIRTY DAYS AFTER TAKING OWNERSHIP OF THE RETAIL LOCATION, WHICH DATE OF TAKING OWNERSHIP MUST BE DEMONSTRATED IN THE APPLICATION IN A MANNER DETERMINED BY THE DIVISION, THE PERSON MAY CONTINUE TO SELL OR OFFER TO SELL CIGARETTES, TOBACCO PRODUCTS, OR NICOTINE PRODUCTS WITHOUT A STATE LICENSE DURING THE PENDENCY OF THE DIVISION'S REVIEW OF THE PERSON'S STATE LICENSE APPLICATION. (4) (a) IF A LOCAL GOVERNMENT IMPOSES LICENSING REQUIREMENTS ON RETAILERS, THE LICENSING REQUIREMENTS MUST BE AS STRINGENT AS, AND MAY BE MORE STRINGENT THAN, THE STATEWIDE LICENSING REQUIREMENTS SET FORTH IN THIS ARTICLE 7. (b) IF A RETAILER APPLIES FOR A STATE LICENSE FROM THE DIVISION PURSUANT TO THIS SECTION FOR A RETAIL LOCATION THAT IS WITHIN THE JURISDICTION OF A LOCAL GOVERNMENT THAT IMPOSES LICENSING REQUIREMENTS ON RETAILERS, THE DIVISION SHALL: (I) ISSUE A STATE LICENSE TO THE RETAILER UPON THE RETAILER DEMONSTRATING TO THE DIVISION THAT THE RETAILER HAS OBTAINED A LOCAL LICENSE AND PAYING THE STATE LICENSE FEE; AND PAGE 12-HOUSE BILL 20-1001 (II) (A) EXCEPT AS PROVIDED IN SUBSECTION (4)(b)(II)(B) OF THIS SECTION, SET THE STATE LICENSE RENEWAL DATE ON THE SAME DATE AS THE LOCAL LICENSE RENEWAL DATE. THE DIVISION SHALL PRORATE THE INITIAL STATE LICENSE FEE IF SETTING THE STATE LICENSE RENEWAL DATE IN LINE WITH THE LOCAL LICENSE RENEWAL DATE REQUIRES RENEWAL WITHIN LESS THAN TWELVE MONTHS AFTER THE INITIAL STATE LICENSE WAS ISSUED. (B) IF A LOCAL GOVERNMENT FIRST IMPOSES A LOCAL LICENSING REQUIREMENT ON CIGARETTES, TOBACCO PRODUCTS, OR NICOTINE PRODUCTS ON OR AFTER JULY 1, 2021, THE LOCAL GOVERNMENT SHALL SET THE LOCAL LICENSE RENEWAL DATE FOR A RETAILER ON THE SAME DATE AS THE STATE LICENSE RENEWAL DATE. (C) THE DIVISION SHALL COLLABORATE WITH ANY LOCAL AUTHORITY REGARDING THE PERFORMANCE OF COMPLIANCE CHECKS AND COMPLAINTS RECEIVED IN ACCORDANCE WITH RULES PROMULGATED BY THE EXECUTIVE DIRECTOR PURSUANT TO SECTION 44-7-104 (5)(a)(III). (5) (a) NINETY DAYS BEFORE THE EXPIRATION DATE OF AN EXISTING STATE LICENSE, THE DIVISION SHALL NOTIFY THE LICENSEE OF THE EXPIRATION DATE OF THE STATE LICENSE BY ELECTRONIC MAIL OR BY FIRST-CLASS MAIL, AS DETERMINED BY THE EXECUTIVE DIRECTOR, AT THE MAILING ADDRESS THAT THE DIVISION HAS ON FILE FOR THE LICENSEE. THE DIVISION SHALL ESTABLISH A PROCESS FOR A LICENSEE TO CONFIRM RECEIPT OF A NOTICE SENT PURSUANT TO THIS SUBSECTION (5)(a). THE DIVISION SHALL DESCRIBE THE CONFIRMATION PROCESS IN THE NOTICE ITSELF AND ON THE DIVISION'S WEBSITE. (b) IF THE STATE LICENSE CONCERNS A RETAIL LOCATION THAT IS LOCATED WITHIN THE JURISDICTION OF A LOCAL AUTHORITY THAT IMPOSES LICENSING REQUIREMENTS ON RETAILERS, THE DIVISION SHALL RENEW THE LICENSEE'S STATE LICENSE UPON THE LICENSEE DEMONSTRATING TO THE DIVISION THAT THE LICENSEE IS OPERATING UNDER A VALID LOCAL LICENSE AND PAYING THE RENEWAL STATE LICENSE FEE. (C) IF THE RETAILER'S STATE LICENSE CONCERNS A RETAIL LOCATION THAT IS LOCATED WITHIN THE JURISDICTION OF A LOCAL AUTHORITY THAT IMPOSES LICENSING REQUIREMENTS ON RETAILERS AND THE LOCAL AUTHORITY: PAGE 13-HOUSE BILL 20-1001 (I) SUSPENDS THE RETAILER'S LOCAL LICENSE, THE DIVISION SHALL, PURSUANT TO THE NOTICE AND HEARING PROCESS SET FORTH IN SECTION 44-7-105 (1)(b), SUSPEND THE RETAILER'S STATE LICENSE UNTIL THE RETAILER CAN DEMONSTRATE TO THE DIVISION'S SATISFACTION THAT THE LOCAL LICENSE HAS BEEN REINSTATED; OR (II) REVOKES THE RETAILER'S LOCAL LICENSE, THE DIVISION SHALL, PURSUANT TO THE NOTICE AND HEARING PROCESS SET FORTH IN SECTION 44-7-105 (1)(b), REVOKE THE RETAILER'S STATE LICENSE. (6) THE DIVISION SHALL TRANSFER ANY FEES COLLECTED IN ACCORDANCE WITH THIS ARTICLE 7 TO THE STATE TREASURER, WHO SHALL CREDIT THE FEES TO THE LIQUOR ENFORCEMENT DIVISION AND STATE LICENSING AUTHORITY CASH FUND CREATED IN SECTION 44-6-101. SECTION 10. In Colorado Revised Statutes, add 44-7-104.7 as follows: 44-7-104.7.Restrictions on sales - minimum distance requirement - advertising restriction - online sales prohibited. (1) (a) UNLESS A LOCAL AUTHORITY HAS APPROVED AN APPLICATION FOR A NEW RETAIL LOCATION PURSUANT TO AN ORDINANCE OR RESOLUTION ADOPTED PURSUANT TO SUBSECTION (1)(d) OF THIS SECTION, THE DIVISION SHALL NOT APPROVE A STATE LICENSE APPLICATION FOR THE NEW RETAIL LOCATION IF THE NEW RETAIL LOCATION IS LOCATED WITHIN FIVE HUNDRED FEET OF A SCHOOL. THE DISTANCE BETWEEN THE NEW RETAIL LOCATION AND THE SCHOOL IS MEASURED FROM THE NEAREST PROPERTY LINE OF LAND USED FOR SCHOOL PURPOSES TO THE NEAREST PORTION OF THE BUILDING WHERE CIGARETTES, TOBACCO PRODUCTS, OR NICOTINE PRODUCTS WILL BE SOLD, USING A ROUTE OF DIRECT PEDESTRIAN ACCESS. (b) THIS SUBSECTION (1) DOES NOT APPLY TO RETAIL LOCATIONS AT WHICH CIGARETTES, TOBACCO PRODUCTS, OR NICOTINE PRODUCTS WERE SOLD BEFORE THE EFFECTIVE DATE OF THIS SUBSECTION (1). (c) IF A RETAIL LOCATION THAT WAS IN EXISTENCE AS OF THE EFFECTIVE DATE OF THIS SUBSECTION (1) IS TRANSFERRED TO A NEW OWNER AFTER THE EFFECTIVE DATE OF THIS SUBSECTION (1), THE NEW OWNER NEED NOT COMPLY WITH THIS SUBSECTION (1). PAGE 14-HOUSE BILL 20-1001 (d) A LOCAL AUTHORITY MAY BY ORDINANCE OR RESOLUTION: (I) ELIMINATE ONE OR MORE TYPES OF SCHOOLS FROM THE DISTANCE RESTRICTION SET FORTH IN SUBSECTION ( I )(a) OF THIS SECTION; OR (II) ADOPT SHORTER DISTANCE RESTRICTIONS. (2) A RETAILER SHALL NOT ADVERTISE AN ELECTRONIC SMOKING DEVICE PRODUCT IN A MANNER THAT IS VISIBLE FROM OUTSIDE THE RETAIL LOCATION AT WHICH THE PRODUCT IS OFFERED FOR SALE. (3) (a) EXCEPT AS PROVIDED IN SUBSECTION (3)(b) OR (3)(c) OF THIS SECTION, A PERSON SHALL NOT SHIP OR DELIVER CIGARETTES, TOBACCO PRODUCTS, OR NICOTINE PRODUCTS DIRECTLY TO A CONSUMER IN THIS STATE. (b) (I) A RETAILER LICENSED TO SELL CIGARETTES, TOBACCO PRODUCTS, OR NICOTINE PRODUCTS PURSUANT TO THIS ARTICLE 7 THAT COMPLIES WITH THIS SUBSECTION (3)(b) AND RULES PROMULGATED PURSUANT TO THIS SUBSECTION (3)(b) MAY DELIVER CIGARETTES, TOBACCO PRODUCTS, OR NICOTINE PRODUCTS TO A PERSON TWENTY-ONE YEARS OF AGE OR OLDER IF: (A) THE PERSON RECEIVING THE DELIVERY OF CIGARETTES, TOBACCO PRODUCTS, OR NICOTINE PRODUCTS IS LOCATED AT A PLACE THAT IS NOT LICENSED PURSUANT TO THIS ARTICLE 7; (B) THE DELIVERY IS MADE BY AN OWNER OR EMPLOYEE OF THE LICENSED RETAILER WHO IS AT LEAST TWENTY-ONE YEARS OF AGE; AND (C) THE PERSON MAKING THE DELIVERY VERIFIES THAT THE PERSON RECEIVING THE DELIVERY IS TWENTY-ONE YEARS OF AGE OR OLDER BY REQUIRING THE PERSON RECEIVING THE DELIVERY TO PRESENT A VALID GOVERNMENT-ISSUED PHOTOGRAPHIC IDENTIFICATION. THE LICENSEE OR EMPLOYEE SHALL MAKE A DETERMINATION FROM THE INFORMATION PRESENTED WHETHER THE PERSON RECEIVING THE DELIVERY IS TWENTY-ONE YEARS OF AGE OR OLDER. (II) THE EXECUTIVE DIRECTOR SHALL PROMULGATE RULES AS NECESSARY FOR THE PROPER DELIVERY OF CIGARETTES, TOBACCO PAGE 15-HOUSE BILL 20-1001 PRODUCTS, OR NICOTINE PRODUCTS, AND THE DIVISION IS AUTHORIZED TO ISSUE A PERMIT TO ANY RETAILER THAT IS LICENSED UNDER THIS ARTICLE 7 AND DELIVERS CIGARETTES, TOBACCO PRODUCTS, OR NICOTINE PRODUCTS PURSUANT TO THIS SUBSECTION (3)(b). A PERMIT ISSUED UNDER THIS SUBSECTION (3)(b) IS SUBJECT TO THE SAME SUSPENSION AND REVOCATION PROVISIONS AS ARE SET FORTH IN SECTION 44-7-105 (1)(b). (c) THE PROHIBITION SET FORTH IN SUBSECTION (3)(a) OF THIS SECTION DOES NOT APPLY TO THE DIRECT SHIPMENT OR DELIVERY OF CIGARS AND PIPE TOBACCO TO A CONSUMER WHO IS TWENTY-ONE YEARS OF AGE OR OLDER. SECTION 11. In Colorado Revised Statutes, amend 44-7-105 as follows: 44-7-105. Enforcement - fines - suspension and revocation - injunctive relief - hearings - appeals. (1) (a) (I) Subject to the FINE limitations contained in section 44-7-106, the division, on its own motion or on a complaint from another governmental agency responsible for the enforcement of laws relating to the prohibition of the sale of cigarettes, tobacco products, or nicotine products to minors, has the power to MAY penalize retailers for violations of suction 44-7-103THIS ARTICLE 7. (II) THE DIVISION, IN THE NAME OF THE PEOPLE OF THE STATE OF COLORADO AND THROUGH THE ATTORNEY GENERAL OF THE STATE OF COLORADO, MAY APPLY FOR AN INJUNCTION IN ANY COURT OF COMPETENT JURISDICTION TO ENJOIN ANY PERSON FROM COMMITTING AN ACT PROHIBITED BY THIS ARTICLE 7. IF THE DIVISION ESTABLISHES THAT THE DEFENDANT HAS BEEN OR IS COMMITTING AN ACT PROHIBITED BY THIS ARTICLE 7, THE COURT SHALL ENTER A DECREE ENJOINING THE DEFENDANT FROM FURTHER COMMITTING THE ACT. AN INJUNCTIVE PROCEEDING MAY BE BROUGHT PURSUANT TO THIS ARTICLE 7 IN ADDITION TO, AND NOT IN LIEU OF, PENALTIES AND OTHER REMEDIES PROVIDED IN THIS ARTICLE 7 AND THE RULES PROMULGATED PURSUANT TO THIS ARTICLE 7 OR OTHERWISE PROVIDED BY LAW. (b) IN ADDITION TO ANY OTHER SANCTIONS PRESCRIBED BY THIS ARTICLE 7 OR RULES PROMULGATED PURSUANT TO THIS ARTICLE 7, THE DIVISION MAY, AFTER INVESTIGATION AND A PUBLIC HEARING AT WHICH A RETAILER MUST BE AFFORDED AN OPPORTUNITY TO BE HEARD, FINE A PAGE 16-HOUSE BILL 20-1001 RETAILER OR, IF THE RETAILER HOLDS A STATE LICENSE, SUSPEND OR REVOKE THE RETAILER'S STATE LICENSE FOR A VIOLATION OF THIS ARTICLE 7 OR ANY RULE PROMULGATED PURSUANT TO THIS ARTICLE 7 COMMITTED BY THE RETAILER OR BY ANY AGENT OR EMPLOYEE OF THE RETAILER. (2) (a) A retailer accused of violating THIS ARTICLE 7 OR ANY RULE PROMULGATED PURSUANT TO THIS ARTICLE 7 IS entitled to written notice of the time and place of the hearing personally delivered to the retailer at the actual retail location or mailed to the retailer at the last-known address as shown by the records of the department DIVISION. The retailer is also entitled to be represented by counsel, to present evidence, and to cross-examine witnesses. (b) A retailer that does not claim an affirmative defense pursuant to section 44-7-106 (2) may waive its right to a hearing and pay the appropriate fine. (3) A hearing pursuant to this section shall be conducted at a location designated by the division before a hearing officer. The hearing officer shall have the pOwLi tO MAY administer oaths and issue subpoenas to require the presence of persons and the production of documents relating to any alleged violation of section 44-7-103 THIS ARTICLE 7 OR ANY RULE PROMULGATED PURSUANT TO THIS ARTICLE 7. (4) If the hearing officer finds, by a preponderance of the evidence, that the retailer violated scction 44-7-103 THIS ARTICLE 7 OR ANY RULE PROMULGATED PURSUANT TO THIS ARTICLE 7, the hearing officer may issue a written order TO SUSPEND OR REVOKE THE RETAILER'S STATE LICENSE or TO levy a fine against the retailer su j ct to the provisions of IN ACCORDANCE WITH section 44-7-106. (5) The findings DECISION of the hearing officer shall be IS a final agency ordcr ACTION. Any appeal of the decision of the hearing officer shall be filed with the Colorado A DISTRICT court of appeals pursuant 24-4-106 (111 COMPETENT JURISDICTION. (6) Any unpaid fine levied pursuant to this section, together with reasonable attorney fees, may be collected in a civil action filed by the attorney general. PAGE 17-HOUSE BILL 20-1001 (7) THE DIVISION SHALL FORWARD any fines collected for violations of sectioir41-E}3—sh-alf-be—forwarefed THIS ARTICLE 7 OR ANY RULE PROMULGATED PURSUANT TO THIS ARTICLE 7 to the state treasurer, who shall credit them to the cigarette, tobacco product, and nicotine product use by minors prevention fund created in section 44-7-107. (8) NOTHING IN THIS SECTION OR SECTION 44-7-106 PROHIBITS A LOCAL GOVERNMENT FROM IMPOSING SANCTIONS ON A RETAILER FOR A VIOLATION OF A LOCAL ORDINANCE OR RESOLUTION. SECTION 12. In Colorado Revised Statutes, amend 44-7-106 as follows: 44-7-106. Limitation on fines. (1) (a) For a violation of section 44-7-103 (1), or-(4); the penalty shall be IS as follows: (I) A FINE IN AN AMOUNT OF AT LEAST TWO HUNDRED FIFTY DOLLARS BUT NOT MORE THAN FIVE HUNDRED DOLLARS FOR A FIRST VIOLATION COMMITTED WITHIN A TWENTY-FOUR-MONTH PERIOD; (II) A FINE IN AN AMOUNT OF AT LEAST FIVE HUNDRED DOLLARS BUT NOT MORE THAN SEVEN HUNDRED FIFTY DOLLARS FOR A SECOND VIOLATION WITHIN A TWENTY-FOUR-MONTH PERIOD AND A PROHIBITION AGAINST THE RETAILER SELLING CIGARETTES, TOBACCO PRODUCTS, OR NICOTINE PRODUCTS AT THE RETAIL LOCATION AT WHICH THE VIOLATION OCCURRED FOR AT LEAST SEVEN DAYS FOLLOWING THE DATE THAT THE FINE IS IMPOSED; (III) A FINE IN AN AMOUNT OF AT LEAST SEVEN HUNDRED FIFTY DOLLARS BUT NOT MORE THAN ONE THOUSAND DOLLARS FOR A THIRD VIOLATION WITHIN A TWENTY-FOUR-MONTH PERIOD AND A PROHIBITION AGAINST THE RETAILER SELLING CIGARETTES, TOBACCO PRODUCTS, OR NICOTINE PRODUCTS AT THE RETAIL LOCATION AT WHICH THE VIOLATION OCCURRED FOR AT LEAST THIRTY DAYS FOLLOWING THE DATE THAT THE FINE IS IMPOSED; AND (IV) A FINE IN AN AMOUNT OF AT LEAST ONE THOUSAND DOLLARS BUT NOT MORE THAN FIFTEEN THOUSAND DOLLARS FOR A FOURTH OR SUBSEQUENT VIOLATION WITHIN A TWENTY-FOUR-MONTH PERIOD AND A PROHIBITION AGAINST THE RETAILER SELLING CIGARETTES, TOBACCO PRODUCTS, OR NICOTINE PRODUCTS AT THE RETAIL LOCATION AT WHICH THE PAGE 18-HOUSE BILL 20-1001 VIOLATION OCCURRED FOR UP TO THREE YEARS FOLLOWING THE DATE THAT THE FINE IS IMPOSED. (b) FOR A VIOLATION OF SECTION 44-7-103 (4), THE PENALTY IS AS FOLLOWS: (a) (I) A written warning for a first violation committed within a twenty-four-month period; fly) (II) A fine of two hundred fifty dollars for a second violation within a twenty-four-month period; (e) (III) A fine of five hundred dollars for a third violation within a twenty-four-month period; (d) (IV) A fine of one thousand dollars for a fourth violation within a twenty-four-month period; and (e) (V) A fine of betwcen AT LEAST one thousand dollars and BUT NOT MORE TI IAN fifteen thousand dollars for a fifth or subsequent violation within a twenty-four-month period. (c) (I) ON OR AFTER JULY 1, 2021, A PERSON WHO SELLS OR OFFERS TO SELL CIGARETTES, TOBACCO PRODUCTS, OR NICOTINE PRODUCTS WITHOUT A VALID STATE LICENSE ISSUED PURSUANT TO THIS SECTION IS SUBJECT TO THE FOLLOWING CIVIL FINES FOR EACH RETAIL LOCATION AT WHICH THE PERSON SELLS OR OFFERS TO SELL CIGARETTES, TOBACCO PRODUCTS, OR NICOTINE PRODUCTS WITHOUT A VALID STATE LICENSE: (A) ONE THOUSAND DOLLARS FOR THE FIRST VIOLATION; (B) TWO THOUSAND DOLLARS FOR THE SECOND VIOLATION WITHIN TWENTY-FOUR MONTHS; AND (C) THREE THOUSAND DOLLARS FOR THE THIRD OR SUBSEQUENT VIOLATION WITHIN TWENTY-FOUR MONTHS. (II) EACH SALE OF OR OFFER TO SELL CIGARETTES, TOBACCO PRODUCTS, OR NICOTINE PRODUCTS WITHOUT A VALID STATE LICENSE IS A DISTINCT VIOLATION OF THIS SECTION SUBJECT TO A FINE. PAGE 19-HOUSE BILL 20-1001 (III) IF THE DIVISION FINDS THAT A RETAILER HAS VIOLATED THIS SUBSECTION (1)(C) THREE TIMES WITHIN TWENTY-FOUR MONTHS, THE DIVISION SHALL ISSUE THE RETAILER AN ORDER PROHIBITING THE RETAILER FROM SELLING CIGARETTES, TOBACCO PRODUCTS, OR NICOTINE PRODUCTS, WHICH ORDER RENDERS THE RETAILER INELIGIBLE TO APPLY FOR A STATE LICENSE FOR THREE YEARS FOLLOWING THE DATE OF THE ORDER. (IV) THE FINE AMOUNTS SET FORTH IN SUBSECTION ( I )(C)(I) OF THIS SECTION ALSO APPLY TO VIOLATIONS OF SECTION 44-7-104.7 (2) AND (3). (2) Notwithstanding subsection (1) of this section, no A fine for a violation of section 44-7-103 (1) shall NOT be imposed upon a retailer that can establish an affirmative defense to the satisfaction of the division or the hearing officer that, prior to the date of the violation, it: (a) Had adopted and enforced a written policy against selling cigarettes, tobacco products, or nicotine products to persons under eighteen TWENTY-ONE years of age; (b) Had informed its employees of the applicable laws regarding the sale of cigarettes, tobacco products, or nicotine products to persons under eighteen TWENTY-ONE years of age; (c) Required employees to verify the age of cigarette, tobacco product, or nicotine product customers by way of photographic identification; and (d) Had established and imposed disciplinary sanctions for noncompliance. (3) The affirmative defense established in subsection (2) of this section may be used by a retailer only twice ONCE at each location within any twenty-four-month period. (4) (a) (I) THE PENALTY for a violation of section 44-7-103 (2) or (3),the-gcnalty-shali-be-ers-ferliows-7 (4.5) IS section (2), a fine of twenty-five dollars for a first violation committed within a twenty-four-month period. PAGE 20-HOUSE BILL 20-1001 (II) THE PENALTY for a violation of section 44-7-103 (3) Is a written warning for a first violation committed within a twenty-four-month period. (b) FOR A VIOLATION OF SECTION 44-7-103 (2), (3), OR (4.5), THE PENALTY IS AS FOLLOWS: fb-) (I) A fine of fifty dollars for a second violation within a twenty-four-month period; (e) (II) A fine of one hundred dollars for a third violation within a twenty-four-month period; ) (III) A fine of two hundred fifty dollars for a fourth violation within a twenty-four-month period; and (e) (IV) A fine of between AT LEAST two hundred fifty dollars and BUT NOT MORE THAN one thousand dollars for a fifth or subsequent violation within a twenty-four-month period. (5) NOTWITHSTANDING SUBSECTION (3) OF THIS SECTION, A LICENSED GAMING ESTABLISHMENT AS DEFINED IN SECTION 44-30-103 (18) THAT HAS A CIGAR-TOBACCO BAR, AS DEFINED IN SECTION 25-14-203 (4), ON THE EFFECTIVE DATE OF THIS SUBSECTION (5) SHALL BE AFFORDED TWO AFFIRMATIVE DEFENSES WITHIN A TWENTY-FOUR-MONTH PERIOD. SECTION 13. In Colorado Revised Statutes, 13-4-102, repeal (2)(gg) as follows: 13-4-102. Jurisdiction. (2) The court of appeals has initial jurisdiction to: (gg) Review-final-aetions--and-orclers-appropriat-e-foi-itrcfreiai-revievv of-the-cfepartment-ofreventre-retating-t-o-penalties-for vithation-s-ofstatutes relating-to tln s . u 16af t ,a ettrrrr a dtt et-S.7D r nit tit irt el,r CY Chit et s-t- Cr nunoi3 pursuant to s ction 44-7-105(5); SECTION 14. In Colorado Revised Statutes, 19-2-104, amend (1) introductory portion and (1)(a)(I) as follows: 19-2-104. Jurisdiction. (1) Except as otherwise provided by law, PAGE 21-HOUSE BILL 20-1001 the juvenile court shalllaw HAS exclusive original jurisdiction in proceedings: (a) Concerning any juvenile ten years of age or older who has violated: (I) Any federal or state law, except nonfelony state traffic, game and fish, and parks and recreation laws or rules, the offcnses specified in section 18-13-121,coireerning tobacco piodcnts, the offense specified in section 18-13-122, concerning the illegal possession or consumption of ethyl alcohol or marijuana by an underage person or illegal possession of marijuana paraphernalia by an underage person; the offenses specified in section 18-18-406 (5)(a)(I), (5)(b)(I), and (5)(b)(II), concerning marijuana and marijuana concentrate; and the civil infraction in section 18-7-109 (3), concerning exchange of a private image by a juvenile; SECTION 15. In Colorado Revised Statutes, 19-2-513, amend (3)(a) introductory portion as follows: 19-2-513. Petition form and content. (3) (a) Pursuant to the provisions of section 19-1-126, in those delinquency proceedings to which the federal "Indian Child Welfare Act", 25 U.S.C. sec. 1901 et seq., AS AMENDED, applies, including but not limited to status offenses such as the illegal possession or consumption of ethyl alcohol or marijuana by an underage person or illegal possession of marijuana paraphernalia by an underage person, as described in section 18-13-122, . . ., putt,llasc of attcmptcd purchasc of cigarettcsor tobacco products by a person under ci .. g Y age,,. . ., and possession of handguns by juveniles, as described in section 18-12-108.5, C.R.S., the petition shall MUST: SECTION 16. In Colorado Revised Statutes, amend 44-6-101 as follows: 44-6-101. Liquor enforcement division and state licensing authority cash fund. There is hereby created in the state treasury the liquor enforcement division and state licensing authority cash fund. The fund shall consist CONSISTS of money transferred in accordance with sections 44-3-502 (1), and 44-4-105 (2), AND 44-7-104.5 (6). The general assembly shall make annual appropriations from the fund for a portion of the direct PAGE 22-HOUSE BILL 20-1001 and indirect costs of the liquor enforcement division and the state licensing authority in the administration and enforcement of articles 3 to 5 AND 7 of this title 44. Any money remaining in the fund at the end of each fiscal year shallr maiii REMAINS in the fund and shall DOES not revert to the general fund or any other fund. The fund shall be maintained in accordance with section 24-75-402. SECTION 17. Appropriation. (1) For the 2019-20 state fiscal year, $45,414 is appropriated to the department of revenue. This appropriation is from the liquor enforcement division and state licensing authority cash fund created in section 44-6-101, C.R.S. To implement this act, the department may use this appropriation as follows: (a) $26,139 for use by the liquor and tobacco enforcement division for personal services, which amount is based on an assumption that the division will require an additional 0.5 FTE; and (b) $19,275 for use by the liquor and tobacco enforcement division for operating expenses. SECTION 18. Appropriation. (1) For the 2020-21 state fiscal year, $2,391,262 is appropriated to the department of revenue. This appropriation is from the liquor enforcement division and state licensing authority cash fund created in section 44-6-101, C.R.S., and is based on an assumption that the department will require an additional 18.9 FTE. To implement this act, the department may use this appropriation as follows: Executive director's office, administration and support Health, life, and dental $180,166 Short-term disability $2,010 S.B. 04-257 amortization equalization disbursement $59,107 S.B. 06-235 supplemental amortization equalization disbursement $59,107 Legal services $98,605 Vehicle lease payments $69,450 Leased space $124,740 Executive director's office, hearings division Personal services $96,012 (1.5 FTE) Operating expenses $11,325 PAGE 23-HOUSE BILL 20-1001 Taxation business group, administration Tax administration IT system (GenTax) support $1,800 Enforcement business group, liquor and tobacco enforcement division Personal services $1,232,116 (17.4 FTE) Operating expenses $456,824 (2) For the 2020-21 state fiscal year, $98,605 is appropriated to the department of law. This appropriation is from reappropriated funds received from the department of revenue under subsection (1) of this section and is based on an assumption that the department of law will require an additional 0.5 FTE. To implement this act, the department of law may use this appropriation to provide legal services for the department of revenue. (3) For the 2020-21 state fiscal year, $69,450 is appropriated to the department of personnel. This appropriation is from reappropriated funds received from the department of revenue under subsection (1) of this section. To implement this act, the department of personnel may use this appropriation for vehicle replacement lease/purchase. SECTION 19. Applicability. This act applies to offenses committed on or after the effective date of this act. SECTION 20. Safety clause. The general assembly hereby finds, PAGE 24-HOUSE BILL 20-1001 obin Jones CHIEF CLERK 0 THE HOUSE OF REPRESENTATIVES (Date and Time) Jare GO R OF THE TE OF COL RADO determines, and declares that this act is necessary for the immediate preservation of the public peace, health, or safety. kvid-c_46, KC Becker SPEAKER OF THE HOUSE OF REPRESENTATIVES Lero . Garcia PRESIDENT OF THE SENATE etrrti: d MiceCt5W Cindi L. Markwell SECRETARY OF THE SENATE PAGE 25-HOUSE BILL 20-1001 1 COLORADO HB20-1001 - Nicotine Product Regulation Overview Signed by Governor Polis on July 14, 2020, Colorado House Bill 20-1001 (HB20-1001) is a win for tobacco control in Colorado. Prior to passage of the bill Colorado was one of only a handful of states that did not require retailers who sold tobacco products to be licensed. Effective July 1, 2021, all retailers who sell cigarettes, tobacco products or nicotine products are required to obtain a state license. Additionally, the minimum age for the sale of these deadly products has been increased from 18 to 21 years of age. HB20-1001 provides critical protections for Coloradans and sets the licensing foundation that local jurisdictions can, and should, build upon to establish comprehensive youth tobacco and nicotine product protections within communities. License Fees and Rules •A state license is required for all cigarette, tobacco product or nicotine product retailers beginning July 1, 2021.i The license is valid for one year.ii •State License Fee Not to Exceed $400: The state license fee must not exceed $400/year. The Department of Revenue, Division of Alcohol and Tobacco (Division) will create rules related to state license fees. If statewide retail compliance rates fall below 90% the Division may increase the maximum state license fee to $600/year.iii •Large-operators: The Division will determine if a “large-operator” license, a single license for retailers with more than 10 locations under the same corporate or business entity, will be allowed. If supported by the Division, rules for a “large-operator” license and guidelines for the “large-operator” license fee will be created by the Division.iv •Coordination between the Division and local authorities of retail compliance checks and retail complaint resolutions is authorized.v •The state license must be prominently displayed on the premises of a licensed retailer at all times.vi •The state license is non-transferrable.vii •State licenses and local licenses, where applicable, must have the same annual renewal date.viii •Suspension or revocation of a local license requires suspension or revocation of the state license.ix Key Provisions •Minimum Legal Sales Age: The minimum legal sales age for cigarettes, tobacco products and nicotine products is raised from 18 to 21 years of age.x •Minor in Possession (MIP) language removed: The penalty for possession of cigarettes and tobacco products by persons under 18 years of age previously in Colorado’s Teen Tobacco Use ATTACHMENT 2 2 Prevention Act (TTUPA)xi has been removed and amended with language that prohibits the sale of cigarettes and tobacco products to persons under 21 years of age.xii This important change in state law shifts the focus away from punishing young people addicted to nicotine towards a focus on responsible retail practices. (Note that possession language still remains in state law under C.R.S. § 30-15-401-County Powers). • Retail tobacco businesses, including vape shops, and cigar-tobacco bars are required to prohibit persons under 21 years of age from entering these businesses.xiii Signage is required at these locations indicating that entry is restricted to persons who are at least 21 years of age.xiv • Identification: Retailers must request and examine a valid government-issued photo identification of the purchaser of cigarettes, tobacco or nicotine products who appears to be under 50 years of age.xv • Vending: Cigarettes, tobacco products or nicotine products cannot be sold in vending machinesxvi except in age-restricted areas of licensed gaming establishments.xvii Signage is required on all vending machines in gaming establishments indicating that purchasers of the products must be at least 21 years of age.xviii • Clerk Age Restrictions: o Retailers cannot allow employees under 18 years of age to sell or participate in the sale of cigarettes, tobacco products or nicotine products.xix o Employees 18 years of age and older may handle or otherwise have contact with cigarettes, tobacco products or nicotine products at work.xx • Retailer Distance from Schools: o Unless a local jurisdiction approves, a state license will not be approved for any cigarette, tobacco product or nicotine product retailer located within 500’ of a school.xxi This distance requirement does not apply to: ▪ businesses that sold cigarettes, tobacco products or nicotine products prior to July 1, 2021;xxii or ▪ businesses that sold cigarettes, tobacco products or nicotine products prior to July 1, 2021 that are sold to a new owner on or before July 1, 2021. o Local jurisdictions can enact ordinances or resolutions that exempt certain types of schools from the 500’ distance requirement or allow distances less than 500’ between schools and cigarette, tobacco product or nicotine product retailers.xxiii • Advertising: Retailers who sell electronic smoking devices (ESD) cannot advertise or promote ESDs in a manner such that promotion of these products is visible from outside of the store.xxiv • Shipment and Delivery of Cigarettes, Tobacco Products or Nicotine Products: o Direct shipment of cigarettes, tobacco products or nicotine products is not allowed in Coloradoxxv except direct shipment of cigars and pipe tobacco to persons over 21 years of age is permitted.xxvi o Direct delivery of cigarettes, tobacco products or nicotine products to consumers is allowed only by state licensed retailers or employee(s) of state licensed retailers who are at least 21 years of agexxvii if: ▪ the delivery is not to another licensed retailer;xxviii and ▪ the age of the recipient at delivery is verified by the licensee or licensee’s employee by examination of the recipient’s valid, government-issued photographic identification verifying that the recipient is at least 21 years of age.xxix 3 o The Division will create rules that further define product delivery requirements and product delivery permits.xxx • County Powers: Boards of County Commissioners are authorized to license or otherwise regulate the sale of cigarettes, tobacco products or nicotine products to persons under 21 years of age.xxxi A county cannot enact a local license that permits a minimum legal sales age of cigarettes, tobacco products or nicotine products to persons younger than 21 years of age. Enforcement Authority of the Department of Revenue, Division of Alcohol and Tobacco • Annual Retail Compliance Checks: Contingent upon fees collected by the state, two compliance checks will be conducted annually at each licensed retail location where cigarettes, tobacco products, or nicotine products are sold. If adequate fees are not collected the number of annual compliance checks will be determined by federal law.xxxii • Re-check for Violations: Compliance check violations require a re-check of the retailer for compliance within three to six months.xxxiii • Publish List of Retailers: The Division will maintain and publish on the Department of Revenue’s website the business names and addresses of state licensed retailers. Retailer information may be shared with state or local agencies responsible for the enforcement of cigarette, tobacco product, or nicotine product laws.xxxiv Retailer Penalties for Violations Sale of cigarettes, tobacco products or nicotine products to persons under 21 C.R.S.§ 44-7-103(1) Violation(s) w/in 24 months: 1st $250-$500 2nd $500-750 7 day no sales 3rd $750-$1000 30 days no sales 4th $1000-$15k up to 3 yrs. no sales Sale of cigarettes in less than 20 packages, RYO Cigarettes C.R.S.§ 44-7-103(4) 1st Written warning 2nd $250 3rd $500 4th $1000 5th $1000-$15k Sale of cigarettes, tobacco products or nicotine products without a license C.R.S.§ 44-7-106(1)(c)(I) 1st $1000 2nd $2000 3rd $3000 3rd stop order-no sales 3yr Each sale is separate and distinct. Electronic smoking device advertisements visible outside of retail location C.R.S.§ 44-7-104.7(2) 1st $1000 2nd $2000 3rd $3000 Delivery of cigarettes, tobacco products or nicotine products C.R.S.§ 44-7-104.7(3) 1st $1000 2nd $2000 3rd $3000 Prohibited sale of cigarettes, tobacco products or nicotine products in vending machines 44-7-103(2) 1st $25.00 2nd $50.00 3rd $ 100 4th $ 250 5th $ 250-1000 Clerk under the age of 18 44-7-103(4.5) 1st $25.00 2nd $50.00 3rd $ 100 4th $ 250 4 5th $ 250-1000 Warning sign violations 44-7-103(3) 1st $25.00 2nd $50.00 3rd $ 100 4th $ 250 5th $ 250-1000 i C.R.S.§ 44-7-104.5(1)(a)(I) ii C.R.S.§ 44-7-104.5(1)(a)(II) iii C.R.S.§ 44-7-104(5)(a)(I) iv C.R.S.§ 44-7-104(5)(a)(II) v C.R.S.§ 44-7-104.5(b)(II)(C) vi C.R.S.§ 44-7-104.5(3)(a) viivii C.R.S.§ 44-7-104.5(3)(b)(I) viii C.R.S.§ 44-7-104.5(b)(II)(A), (B) ix C.R.S.§ 44-7-104.5(c)(I), (II) x C.R.S.§ 18-13-121(1)(a) xi C.R.S.§ 25-14-301(2)(a) xii Ibid. xiii C.R.S.§ 25-14-204(2)(b), (3) xiv Ibid. xvxv C.R.S.§ 44-7-103(1) xvi Ibid. xvii C.R.S.§ 44-7-103(2) xviii C.R.S.§ 44-7-103(3) xix C.R.S.§ 44-7-103(4.5) xx Ibid. xxi C.R.S.§ 44-7-104.7 xxii C.R.S.§ 44-7-104.7(1)(b) xxiii C.R.S.§ 44-7-104.7(1)(d)(I), (II)(2) xxiv C.R.S.§ 44-7-104.7(2) xxv C.R.S.§ 44-7-104.7(3)(a) xxvi C.R.S.§ 44-7-104.7(3)(c) xxvii C.R.S.§44-7-104.7(3)(b)(I((B) xxviii C.R.S.§ 44-7-104.7(3)(b)(I)(A) xxix C.R.S.§ 44-7-104.7(3)(b)(I)(C) xxx C.R.S.§ 44-7-104.7(3)(b)(II) xxxi C.R.S.§ 30-15-401(a)(c) xxxii C.R.S.§ 44-7-104(3)(b)(I) xxxiii C.R.S.§ 44-7-104(3)(b)(II) xxxiv C.R.S.§ 44-7-104(4) Municipalities that require an annual license to sell some or all tobacco products Aspen Avon Basalt Boulder Breckenridge Broomfield Carbondale Castle Pines Denver Dillon Eagle County Edgewater Frisco Glenwood Springs Golden Gypsum Lafayette Minturn Silverthorne Snowmass Village Summit County Superior GoldenEdgewaterLakewoodDenverBroomfield Aspen Avon Basalt Breckenridge Broomfield Carbondale Castle Pines Denver Dillon Eagle County Edgewater Fountain Frisco Glenwood Springs Golden Gypsum La Junta Lakewood Manitou Springs Minturn Otero County Pueblo Rocky Ford Silverthorne Snowmass Village Steamboat Springs Summit County Tobacco RetailLicenseMin.Legal SaleAge Municipalities that have raised the minimum age of sale for tobacco from 18 to 21 Require license to sell tobacco Local proactive enforcement (using licensing fees) Raise minimum legal sale age for tobacco to 21 Require all tobacco products to be behind the counter/require clerk assistance No new tobacco retailer licenses issued within 500-1000 ft. of a school Prohibit mobile vending (only issues licenses to fixed locations) Establish minimum clerk age Violation can result in suspension of license and revocation for continued violations 11-21-2019ATTACHMENT 3