General Assembly

Raised Bill No. 1116

January Session, 2015

LCO No. 5552

*05552_______FIN*

Referred to Committee on FINANCE, REVENUE AND BONDING

Introduced by:

(FIN)

AN ACT ESTABLISHING A SURCHARGE ON PALLIATIVE MARIJUANA PRODUCERS, ALLOWING THE PALLIATIVE USE OF MARIJUANA FOR CHRONIC PAIN, AND ESTABLISHING LICENSING FEES FOR SELLERS AND MANUFACTURERS OF ELECTRONIC CIGARETTE PRODUCTS.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. (NEW) (Effective July 1, 2015) (a) For the purposes of this section:

(1) "Licensed producer" or "producer" means a producer licensed to cultivate, sell, deliver, transport or distribute marijuana for palliative use pursuant to section 21a-408i of the general statutes;

(2) "Licensed dispensary" means a dispensary licensed to acquire, possess, distribute and dispense marijuana for palliative use pursuant to section 21a-408h of the general statutes; and

(3) "Marijuana" means pharmaceutical grade marijuana for palliative use that is distributed in accordance with chapter 420f of the general statutes.

(b) There shall be paid to the Commissioner of Revenue Services by each licensed producer a surcharge of twenty per cent of its gross receipts for any marijuana distributed by the producer to a licensed dispensary on or after July 1, 2015. Each licensed producer shall register with the Commissioner of Revenue Services on forms prescribed by the commissioner not later than October 1, 2015, and each registered producer shall renew its registration with the commissioner annually, in such manner as the commissioner may prescribe. No licensed producer may engage in or transact business as a producer unless such producer is registered with the commissioner in accordance with the provisions of this section. Any producer that fails to register or renew such registration in accordance with the provisions of this subsection shall pay a penalty of one thousand dollars for each such failure, which penalty shall not be subject to waiver.

(c) Each producer shall submit a return quarterly to the Commissioner of Revenue Services, applicable with respect to the calendar quarter beginning July 1, 2015, and each calendar quarter thereafter, on or before the last day of the month immediately following the end of each such calendar quarter, on a form prescribed by the commissioner, together with payment of the quarterly surcharge determined and payable in accordance with the provisions of this section. Whenever such surcharge is not paid when due, a penalty of ten per cent of the amount due or fifty dollars, whichever is greater, shall be imposed, and such surcharge shall bear interest at the rate of one per cent per month or fraction thereof until the same is paid. The Commissioner of Revenue Services shall cause copies of a form prescribed for submitting returns as required under this section to be distributed to persons subject to the surcharge. Failure to receive such form shall not be construed to relieve any person subject to the surcharge under this section from the obligations of submitting a return, together with payment of such surcharge within the time required. The provisions of sections 12-548 to 12-554, inclusive, of the general statutes and sections 12-555a and 12-555b of the general statutes shall apply to the provisions of this section in the same manner and with the same force and effect as if the language of said sections 12-548 to 12-554, inclusive, and sections 12-555a and 12-555b had been incorporated in full into this section and had expressly referred to the surcharge imposed under this section, except to the extent that any such provision is inconsistent with a provision of this section and except that the term "tax" shall be read as "licensed producer surcharge". Any moneys received by the commissioner pursuant to this section shall be deposited into the General Fund.

(d) The Commissioner of Revenue Services shall notify the Commissioner of Consumer Protection whenever a licensed producer has continuously failed to comply with the requirements of this section for a period of at least six months. The Commissioner of Consumer Protection may suspend, revoke or refuse to renew the license of a producer who has continuously failed to comply with the requirements of this section for a period of six months or longer.

Sec. 2. Subdivision (2) of section 21a-408 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2015):

(2) "Debilitating medical condition" means (A) cancer, glaucoma, positive status for human immunodeficiency virus or acquired immune deficiency syndrome, Parkinson's disease, multiple sclerosis, damage to the nervous tissue of the spinal cord with objective neurological indication of intractable spasticity, epilepsy, cachexia, wasting syndrome, Crohn's disease, posttraumatic stress disorder, or chronic pain, or (B) any medical condition, medical treatment or disease approved by the Department of Consumer Protection pursuant to regulations adopted under section 21a-408m;

Sec. 3. Section 21a-408c of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2015):

(a) A physician may issue a written certification to a qualifying patient that authorizes the palliative use of marijuana by the qualifying patient, [. Such] except that a written certification based on the debilitating medical condition of chronic pain may only be issued by a pain management specialist, as defined in section 38a-492i. Each written certification shall be in the form prescribed by the Department of Consumer Protection and shall include a statement signed and dated by the qualifying patient's physician stating that, in such physician's professional opinion, the qualifying patient has a debilitating medical condition and the potential benefits of the palliative use of marijuana would likely outweigh the health risks of such use to the qualifying patient.

(b) Any written certification for the palliative use of marijuana issued by a physician under subsection (a) of this section shall be valid for a period not to exceed one year from the date such written certification is signed and dated by the physician. Not later than ten calendar days after the expiration of such period, or at any time before the expiration of such period should the qualifying patient no longer wish to possess marijuana for palliative use, the qualifying patient or the primary caregiver shall destroy all usable marijuana possessed by the qualifying patient and the primary caregiver for palliative use.

(c) A physician shall not be subject to arrest or prosecution, penalized in any manner, including, but not limited to, being subject to any civil penalty, or denied any right or privilege, including, but not limited to, being subject to any disciplinary action by the Connecticut Medical Examining Board or other professional licensing board, for [providing] issuing a written certification for the palliative use of marijuana under subdivision (1) of subsection (a) of section 21a-408a if:

(1) The physician has diagnosed the qualifying patient as having a debilitating medical condition and has issued the written certification in accordance with subsection (a) of this section;

(2) The physician has explained the potential risks and benefits of the palliative use of marijuana to the qualifying patient and, if the qualifying patient lacks legal capacity, to a parent, guardian or person having legal custody of the qualifying patient;

(3) The written certification issued by the physician is based upon the physician's professional opinion after having completed a medically reasonable assessment of the qualifying patient's medical history and current medical condition made in the course of a bona fide physician-patient relationship; and

(4) The physician has no financial interest in a dispensary licensed under section 21a-408h or a producer licensed under section 21a-408i.

Sec. 4. Subsection (a) of section 53-344b of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2016):

(a) As used in this section and sections 5, 6 and 7 of this act:

(1) "Electronic nicotine delivery system" means an electronic device that may be used to simulate smoking in the delivery of nicotine or other substance to a person inhaling from the device, and includes, but is not limited to, an electronic cigarette, electronic cigar, electronic cigarillo, electronic pipe or electronic hookah and any related device and any cartridge, electronic cigarette liquid or other component of such device;

(2) "Cardholder" means any person who presents a driver's license or an identity card to a seller or seller's agent or employee, to purchase or receive an electronic nicotine delivery system or vapor product from such seller or seller's agent or employee;

(3) "Identity card" means an identification card issued in accordance with the provisions of section 1-1h;

(4) "Transaction scan" means the process by which a seller or seller's agent or employee checks, by means of a transaction scan device, the validity of a driver's license or an identity card;

(5) "Transaction scan device" means any commercial device or combination of devices used at a point of sale that is capable of deciphering in an electronically readable format the information encoded on the magnetic strip or bar code of a driver's license or an identity card;

(6) "Sale" or "sell" means an act done intentionally by any person, whether done as principal, proprietor, agent, servant or employee, of transferring, or offering or attempting to transfer, for consideration, an electronic nicotine delivery system or vapor product, including bartering or exchanging, or offering to barter or exchange, an electronic nicotine delivery system or vapor product;

(7) "Give" or "giving" means an act done intentionally by any person, whether done as principal, proprietor, agent, servant or employee, of transferring, or offering or attempting to transfer, without consideration, an electronic nicotine delivery system or vapor product;

(8) "Deliver" or "delivering" means an act done intentionally by any person, whether as principal, proprietor, agent, servant or employee, of transferring, or offering or attempting to transfer, physical possession or control of an electronic nicotine delivery system or vapor product; [and]

(9) "Vapor product" means any product that employs a heating element, power source, electronic circuit or other electronic, chemical or mechanical means, regardless of shape or size, to produce a vapor that may or may not include nicotine, that is inhaled by the user of such product; and

(10) "Electronic cigarette liquid" means a liquid that, when used in an electronic nicotine delivery system or vapor product, produces a vapor that may or may not include nicotine and is inhaled by the user of such electronic nicotine delivery system or vapor product, which product is either (A) marketed for use in an electronic nicotine delivery system or vapor product, or (B) intended for use in an electronic nicotine delivery system or vapor product, provided such product contains propylene glycol and vegetable glycerin in proportions suitable for use in an electronic nicotine delivery system or vapor product.

Sec. 5. (NEW) (Effective January 1, 2016) (a) On and after January 1, 2016, no person may sell, offer for sale or possess with intent to sell an electronic nicotine delivery system or vapor product in this state unless such person has been issued an electronic nicotine delivery system dealer permit by the Commissioner of Consumer Protection pursuant to this section. An electronic nicotine delivery system dealer permit shall allow the sale of electronic nicotine delivery systems or vapor products, including, but not limited to, the sale of electronic cigarette liquid in standard size containers. A holder of an electronic nicotine delivery system dealer permit shall post such permit in a prominent location adjacent to electronic nicotine delivery system products or vapor products offered for sale. A permit issued under this section shall be renewed annually and shall be revocable in the discretion of the Department of Consumer Protection, subject to appeal which may be taken in the manner prescribed for permits under section 30-55 of the general statutes. An electronic nicotine delivery system dealer permit shall not constitute property, nor shall it be subject to attachment and execution, nor shall it be alienable, except that it shall descend to the estate of a deceased permittee by the laws of testate or intestate succession.

(b) (1) Any person desiring an electronic nicotine delivery system dealer permit or a renewal of such a permit shall make a sworn application therefor to the Department of Consumer Protection upon forms to be furnished by the department, showing the name and address of the applicant, the location of the place of business which is to be operated under such permit and a financial statement setting forth all elements and details of any business transactions connected with the application. The application shall also indicate any crimes of which the applicant has been convicted. Applicants shall submit documents sufficient to establish that state and local building, fire and zoning requirements will be met at the location of any sale. The department may, at its discretion, conduct an investigation to determine whether a permit shall be issued to an applicant.

(2) The applicant shall pay to the department a nonrefundable application fee of one hundred dollars, which fee shall be in addition to the annual fee prescribed in subsection (c) of this section. An application fee shall not be charged for an application to renew a permit.

(3) In any case in which a permit has been issued to a partnership, if one or more of the partners dies or retires, the remaining partner or partners need not file a new application for the unexpired portion of the current permit, and no additional fee for such unexpired portion shall be required. Notice of any such change shall be given to the department and the permit shall be endorsed to show correct ownership. Whenever any partnership changes by reason of the addition of one or more partners, a new application and the payment of new application and annual fees shall be required.

(d) The department may renew a permit issued under this section that has expired if the applicant pays to the department any fine imposed by the commissioner pursuant to subsection (c) of section 21a-4 of the general statutes, which fine shall be in addition to the fees prescribed in this section for the permit applied for. The provisions of this subsection shall not apply to any permit which is the subject of administrative or court proceedings.

(e) (1) Any person who knowingly sells, offers for sale or possesses with intent to sell an electronic nicotine delivery system or vapor product without a permit as required under this section shall be fined not more than seven thousand five hundred dollars, or imprisoned not more than three months, or both, for each offense. Each day of such unauthorized operation may be deemed a separate offense. The provisions of this subdivision shall not apply to any person whose electronic nicotine delivery system dealer permit has expired, provided the period of operation without such permit is not more than ninety days after the date of expiration.

(2) Any person whose electronic nicotine delivery system dealer permit has expired and who knowingly sells, offers for sale or possesses with intent to sell an electronic nicotine delivery system or vapor product, where such person's period of operation without such permit is not more than ninety days from the date of expiration of such permit, shall have committed an infraction and shall be fined ninety dollars.

Sec. 6. (NEW) (Effective January 1, 2016) (a) On and after January 1, 2016, no person may manufacture an electronic nicotine delivery system or vapor product for sale in this state unless such person has been issued an electronic nicotine delivery system manufacturer permit by the Commissioner of Consumer Protection pursuant to this section. An electronic nicotine delivery system manufacturer permit shall allow the manufacture of electronic nicotine delivery systems or vapor products for sale in this state, including, but not limited to, the manufacture of electronic cigarette liquid for sale in standard size containers. A permit issued under this section shall be renewed annually and shall be revocable in the discretion of the Department of Consumer Protection, subject to appeal which may be taken in the manner prescribed for permits under section 30-55 of the general statutes. A permit shall not constitute property, nor shall it be subject to attachment and execution, nor shall it be alienable, except that it shall descend to the estate of a deceased permittee by the laws of testate or intestate succession.

(b) (1) Any person desiring an electronic nicotine delivery system manufacturer permit or a renewal of such a permit shall make a sworn application therefor to the Department of Consumer Protection upon forms to be furnished by the department, showing the name and address of the applicant, the location of the place or places of manufacture under such permit and a financial statement setting forth all elements and details of any business transactions connected with the application. The application shall also indicate any crimes of which the applicant has been convicted. Applicants shall submit documents sufficient to establish that state and local building, fire and zoning requirements will be met with respect to any place of manufacture in this state. The department may, at its discretion, conduct an investigation to determine whether a permit shall be issued to an applicant.

(e) (1) Any person who knowingly manufactures an electronic nicotine delivery system or vapor product for sale in this state without a permit as required under this section shall be fined not more than seven thousand five hundred dollars, or imprisoned not more than three months, or both, for each offense. Each day of such unauthorized operation may be deemed a separate offense. The provisions of this subdivision shall not apply to any person whose electronic nicotine delivery system manufacturer permit has expired, provided the period of operation without such permit is not more than ninety days after the date of expiration.

(2) Any person whose electronic nicotine delivery system manufacturer permit has expired and who knowingly manufactures an electronic nicotine delivery system or vapor product for sale in this state, where such person's period of operation without such permit is not more than ninety days from the date of expiration of such permit, shall have committed an infraction and shall be fined ninety dollars.

Sec. 7. (NEW) (Effective January 1, 2016) (a) No person may sell, offer for sale or manufacture for sale in this state electronic cigarette liquid unless (1) such electronic cigarette liquid is packaged in standard size containers in child resistant packaging that conforms to the standards for special packaging established in 16 CFR Part 1700, et seq.; (2) the net volume of the contents of any package manufactured or sold at retail is five hundred milliliters or less; (3) there appears on the label of the package (A) the words "electronic cigarette liquid" or "e-liquid", in type or lettering at least as large as any other type or lettering on such label, and (B) an accurate statement of all ingredients contained in such electronic cigarette liquid, including, but not limited to, the percentage of nicotine, if any, contained in the electronic cigarette liquid and the ratio of propylene glycol to vegetable glycerin in the electronic cigarette liquid; (4) the expiration date of the electronic cigarette liquid; and (5) the place of manufacture of the electronic cigarette liquid. No person shall sell or offer for sale electronic cigarette liquid in any manner other than in standard sizes of ten milliliters, thirty milliliters, fifty milliliters, one hundred milliliters, two hundred fifty milliliters or five hundred milliliters.

(b) Any person who violates any provision of subsection (a) of this section shall be fined not more than seven thousand five hundred dollars, or imprisoned not more than three months, or both.

This act shall take effect as follows and shall amend the following sections:

Section 1

July 1, 2015

New section

Sec. 2

July 1, 2015

21a-408(2)

Sec. 3

July 1, 2015

21a-408c

Sec. 4

January 1, 2016

53-344b(a)

Sec. 5

January 1, 2016

New section

Sec. 6

January 1, 2016

New section

Sec. 7

January 1, 2016

New section

Statement of Purpose:

To (1) establish a twenty per cent surcharge on licensed producers' gross receipts of palliative marijuana sold to licensed dispensaries, (2) allow the palliative use of marijuana for chronic pain diagnosed by a physician who is a pain management specialist, and (3) add electronic cigarette liquid to the electronic nicotine delivery system and vapor products that require proof of age by transaction scan prior to sale and establish a dealer and manufacturer license and associated fees and fined related to such licenses.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]


General Assembly		*Raised Bill No. 1116*
*January Session, 2015*		LCO No. 5552
		05552_______FIN
Referred to Committee on FINANCE, REVENUE AND BONDING
Introduced by:
(FIN)


This act shall take effect as follows and shall amend the following sections:
Section 1	July 1, 2015	New section
Sec. 2	July 1, 2015	21a-408(2)
Sec. 3	July 1, 2015	21a-408c
Sec. 4	January 1, 2016	53-344b(a)
Sec. 5	January 1, 2016	New section
Sec. 6	January 1, 2016	New section
Sec. 7	January 1, 2016	New section