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
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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