71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 1393
 
                         House Bill 2828
 
Sponsored by Representative MORRISETTE
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Prohibits sale of tobacco products at retail without tobacco
vending license. Defines tobacco product. Directs Oregon Liquor
Control Commission to administer licensing of tobacco vendors and
laws relating to sales of tobacco products. Establishes
qualifications for holder of tobacco vending license. Allows
commission to establish fees for license.
  Prohibits certain activities relating to tobacco products.
Allows maximum civil penalty of $1,000 for violation of laws
relating to sales of tobacco products. Punishes certain
violations by maximum fine of $600.
  Appropriates moneys from fees and certain penalties for
administration, investigation and enforcement purposes.
 
                        A BILL FOR AN ACT
Relating to tobacco; creating new provisions; amending ORS
  431.853; repealing ORS 431.845 and 431.850; and appropriating
  money.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { +  Definitions. As used in sections 1 to 13 of
this 2001 Act:
  (1) 'Commission' means the Oregon Liquor Control Commission.
  (2) 'Sell' includes an offer to sell and the keeping or display
of tobacco products for sale.
  (3) 'Tobacco product' means cigarettes as defined in ORS
323.010, cigars, cheroots, stogies, periques, granulated, plug
cut, crimp cut, ready rubbed and other smoking tobacco, snuff,
snuff flour, cavendish, plug and twist tobacco, fine-cut and
other chewing tobaccos, shorts, refuse scraps, clippings,
cuttings and sweepings of tobacco and other kinds and forms of
tobacco, prepared in such manner as to be suitable for chewing or
smoking in a pipe or otherwise, or both for chewing and smoking.
'Tobacco product' includes smoking devices listed in ORS 163.575
(1)(e).
  (4) 'Tobacco vending license' means a license issued under
sections 1 to 13 of this 2001 Act. + }
  SECTION 2.  { +  License required. No person may sell tobacco
products at retail unless the person holds a tobacco vending
license issued by the Oregon Liquor Control Commission under the
provisions of sections 1 to 13 of this 2001 Act. + }
  SECTION 3.  { +  Qualifications. (1) An applicant for a tobacco
vending license shall pay the fee established by the Oregon
Liquor Control Commission under section 4 of this 2001 Act and
shall show to the satisfaction of the commission that the
applicant is a person 18 years of age or older. The application
for a tobacco vending license must disclose all locations at
which tobacco will be sold at retail, including the location of
all tobacco vending machines that will be operated under the
license. The application must provide a mailing address for the
applicant's principal place of business.
  (2) The commission shall require that all applicants for a
tobacco vending license review the laws relating to the sale of
tobacco, with particular emphasis on laws relating to sales of
tobacco to minors. + }
  SECTION 4.  { + License term; fees. (1) Upon payment of the fee
established under this section, the Oregon Liquor Control
Commission shall license each applicant who meets the
requirements of section 3 of this 2001 Act. The license shall be
effective for one year following issuance.
  (2) Subject to the provisions of ORS 291.050 to 291.060, the
commission shall establish issuance and renewal fees for a
tobacco vending license that are calculated by the commission to
be adequate to pay the cost of administering the licensing
program established by sections 1 to 13 of this 2001 Act and the
cost of investigating and enforcing the laws relating to the sale
of tobacco products. + }
  SECTION 5.  { +  Reporting requirements. (1) A licensee under
section 4 of this 2001 Act must notify the Oregon Liquor Control
Commission in writing of any change in any place where the
licensee sells tobacco products, or of any change in the mailing
address of the licensee's principal place of business.
  (2) The commission shall keep a record of the places where
tobacco products are sold by licensees.
  (3) Any notice required to be given by the commission to a
licensee may be given by mailing the notice to the mailing
address last provided by the licensee. + }
  SECTION 6.  { +  Requesting of identification; posting of
license.  (1) An employee or agent of a licensee under section 4
of this 2001 Act must request identification that shows a
purchaser's age and bears the photograph and signature of the
purchaser if the purchaser appears to be younger than 26 years of
age.  Identification may include a driver license issued by this
state or any other state, a driver permit issued by this state or
any other state, an identification card issued under ORS 807.400,
a passport, a United States military identification card or a
merchant marine identification card issued by the United States
Coast Guard.
  (2) A copy of a tobacco vending license must be conspicuously
posted in public view in all places where tobacco products are
sold at retail.
  (3) The licensee must display a sign concerning the prohibition
of tobacco sales to minors. The sign must read as follows: 'THE
SALE OF TOBACCO PRODUCTS TO PERSONS UNDER AGE 18 IS STRICTLY
PROHIBITED BY STATE LAW. IF YOU ARE UNDER 18, YOU COULD BE
PENALIZED FOR PURCHASING A TOBACCO PRODUCT; PHOTO ID MAY BE
REQUIRED.' The sign must be posted so that it is clearly visible
to anyone purchasing tobacco products from the licensee. + }
  SECTION 7.  { +  Grounds for revocation or suspension of
license.  Any licensee under section 4 of this 2001 Act may have
a tobacco vending license revoked or suspended for a fixed
period, or may be placed on probation, by the Oregon Liquor
Control Commission for any of the following causes:
  (1) The licensee, in the application for a license, or in any
written or oral communication to the commission concerning the
issuance or retention of the license, makes any material
misstatement of fact or fails to disclose any material fact
necessary to make that which is stated not misleading.
  (2) The licensee permits another person to use the license.
  (3) The licensee fails to properly supervise and control
employees or agents who sell tobacco products under the license.
  (4) The licensee is convicted of a crime where the crime bears
a direct relationship to the sale of tobacco products.
  (5) The licensee violates any of the provisions of sections 1
to 13 of this 2001 Act, any law relating to the sale of tobacco
products, including ORS 163.575, 163.580, 167.400, 167.402 and
431.840, or any rule adopted by a state agency relating to sales
of tobacco products. + }
  SECTION 8.  { +  Prohibitions. (1) A person may not sell
cigarettes as defined in ORS 323.010 that are not in the original
unopened package or container. Cigarettes as defined in ORS
323.010 may not be sold in packages of fewer than 20.
  (2) A person may not give or distribute tobacco products to
another person through the use of a coupon if the coupon is
redeemed in any manner that does not require a person-to-person
transaction in a retail store.
  (3) A person may not distribute or offer to distribute samples
of tobacco products.
  (4) All retail sales of tobacco products must be made on a
person-to-person basis except for sales made through vending
machines. Tobacco products may not be sold or delivered through
the mail. + }
  SECTION 9.  { +  Application of Administrative Procedures Act.
If the Oregon Liquor Control Commission proposes to refuse to
issue or renew a tobacco vending license or proposes to revoke or
suspend a tobacco vending license, opportunity for hearing shall
be accorded as provided in ORS 183.310 to 183.550. + }
  SECTION 10.  { +  Powers and duties of Oregon Liquor Control
Commission. (1) The Oregon Liquor Control Commission has the
following powers and duties in administering the provisions of
sections 1 to 13 of this 2001 Act:
  (a) The commission may authorize all disbursements necessary to
carry out the provisions of sections 1 to 13 of this 2001 Act.
  (b) The commission shall license persons who apply to the
commission and who have qualified for a tobacco vending license.
  (c) The commission may suspend or revoke tobacco vending
licenses in the manner provided in ORS 183.310 to 183.550.
  (d) The commission may enforce the laws of this state relating
to the sale of tobacco products, including ORS 163.575, 163.580,
167.400, 167.402 and 431.840, and may issue citations for
violations of those provisions.
  (2) Employees and agents of the commission may enter any place
of business where tobacco products are sold for the purpose of
enforcing the provisions of sections 1 to 13 of this 2001 Act.
  (3) For the purpose of enforcing the provisions of sections 1
to 13 of this 2001 Act, a peace officer or enforcement officer of
the commission who has reasonable grounds to believe a person the
officer has observed purchasing, attempting to purchase or in
possession of tobacco products is under 18 years of age may
detain the person for a reasonable period of time and in such a
reasonable manner as is necessary to determine the person's true
identity and date of birth.
  (4) Any tobacco products possessed by persons under 18 years of
age are contraband and may be seized by a peace officer or
enforcement officer of the commission.
  (5) The commission may adopt any rules necessary to implement
the provisions of sections 1 to 13 of this 2001 Act and to
enforce the laws of this state relating to the sale of tobacco
products, including ORS 163.575, 163.580, 167.400, 167.402 and
431.840. + }
  SECTION 11.  { + Civil penalties. The Oregon Liquor Control
Commission may impose a civil penalty not to exceed $1,000 for
violation of ORS 163.575, 163.580, 167.400, 167.402 or 431.840 or
section 2, 5, 6 or 8 of this 2001 Act, or any rule adopted by the
commission for the implementation of sections 1 to 13 of this
2001 Act. Civil penalties under this section must be imposed as
provided in ORS 183.090. Civil penalties under this section are
in addition to any other penalty that may be imposed for
violation of ORS 163.575, 163.580, 167.400, 167.402 or 431.840 or
section 2, 5, 6 or 8 of this 2001 Act. + }
  SECTION 12.  { +  Disposition of receipts. All moneys received
by the Oregon Liquor Control Commission under sections 1 to 13 of
this 2001 Act shall be paid into the General Fund in the State
Treasury and credited to the commission. Moneys received by the
commission under sections 1 to 13 of this 2001 Act are
appropriated continuously to the commission and may be used only
for the administration and enforcement of sections 1 to 13 of
this 2001 Act and for the investigation and enforcement of the
laws of this state relating to the sale of tobacco products,
including ORS 163.575, 163.580, 167.400, 167.402 and 431.840. + }
  SECTION 13.  { +  Criminal penalties. Violation of section 2, 6
or 8 of this 2001 Act is a Class A violation. + }
  SECTION 14. ORS 431.853 is amended to read:
  431.853. (1) The   { - Department of Human Services - }
 { + Oregon Liquor Control Commission + } shall:
  (a) Coordinate with law enforcement agencies to conduct random,
unannounced inspections of Oregon wholesalers and retailers of
tobacco products to   { - insure - }   { + ensure + } compliance
with Oregon laws designed to discourage the use of tobacco by
minors including ORS 163.575, 163.580, 167.400, 167.402 and
431.840 { +  and sections 1 to 13 of this 2001 Act + }; and
  (b) Submit a report describing:
  (A) The activities carried out to enforce the laws listed in
paragraph (a) of this subsection during the previous fiscal year;
  (B) The extent of success achieved in reducing the availability
of tobacco products to minors; and
  (C) The strategies to be utilized for enforcing the laws listed
in paragraph (a) of this subsection during the year following the
report.
  (2) The   { - Department of Human Services - }   { + Oregon
Liquor Control Commission + } shall adopt rules concerning random
inspections of places that sell tobacco products consistent with
section 1921, Public Law 102-321, 1992. The rules shall provide
that inspections may take place:
  (a) Only in areas open to the public;
  (b) Only during hours that tobacco products are sold or
distributed; and
  (c) No more frequently than once a month in any single
establishment unless a compliance problem exists or is suspected.
  SECTION 15.  { + ORS 431.845 and 431.850 are repealed. + }
  SECTION 16.  { + The section captions used in this 2001 Act are
provided only for the convenience of the reader and do not become
part of the statutory law of this state or express any
legislative intent in the enactment of this 2001 Act. + }
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