These Rules and Regulations for Licensing of Electronic Nicotine-Delivery System Distributors and Dealers are promulgated pursuant to the authority set forth in R.I. Gen. Laws §§ 23-1-55 through 23-1-58 for the purpose of establishing the requirements for licensure of electronic nicotine-delivery system distributors and dealers.

A. Wherever used in these Regulations, the following terms shall be construed as follows:

1. “Act” means R.I. Gen Laws §§ 23-1-55 through 23-1-58.

2. "Dealer" means any person, whether located within or outside of the State of Rhode Island, who sells or distributes electronic nicotine-delivery system products to a consumer in the State of Rhode Island.

3. “Department” means the Rhode Island Department of Health.

4. "Director" means the Director of the Rhode Island Department of Health or his or her designee.

5. "Distributor" means any person:

a. Whether located within or outside of the State of Rhode Island, other than a dealer, who sells or distributes electronic nicotine-delivery system products within or into the State of Rhode Island. Such term shall not include any electronic nicotine-delivery system products manufacturer, export warehouse proprietor, or importer with a valid permit, if such person sells or distributes electronic nicotine-delivery system products in the State of Rhode Island only to licensed distributors, or to an export warehouse proprietor or another manufacturer with a valid permit;

b. Selling electronic nicotine-delivery system products directly to consumers in the State of Rhode Island by means of at least twenty-five (25) electronic nicotine-delivery system product vending machines;

c. Engaged in the State of Rhode Island in the business of manufacturing electronic nicotine-delivery system products or any person engaged in the business of selling electronic nicotine-delivery system products to dealers, or to other persons, for the purpose of resale only; provided that seventy-five percent (75%) of all electronic nicotine-delivery system products sold by that person in the State of Rhode Island are sold to dealers or other persons for resale and selling electronic nicotine- delivery system products directly to at least forty (40) dealers or other persons for resale; or

d. Maintaining one or more regular places of business in the State of Rhode Island for that purpose; provided, that seventy-five percent (75%) of the sold electronic nicotine delivery system products are purchased directly from the manufacturer and selling electronic nicotine-delivery system products directly to at least forty (40) dealers or other persons for resale.

6. "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 or other component of such device.

7. "R.I. Gen. Laws" means the General Laws of Rhode Island.

8. “These Regulations” means all parts of Rhode Island rules and regulations for Licensing of Electronic Nicotine-Delivery System Distributors and Dealers (216-RICR-50-15-6).

A person engaging in the business of selling electronic nicotine-delivery system products in the State of Rhode Island, including any distributor or dealer, shall annually secure a license in accordance with the requirements of R.I. Gen. Laws § 23-1-56 and this Part from the Department before engaging in that business, or continuing to engage in it.

Eligibility of licensees shall be in accordance with R.I. Gen. Laws § 23-1-56(f).

A. Application for Licensure.

1. Application for licensure shall be made on forms furnished by the Department, which shall be completed, notarized and submitted to the Department.

B. Categories of Licensure.

1. An application for a license to engage in the business of selling electronic nicotine-delivery system products in the State of Rhode Island shall be submitted for each applicable category of business:

a. Distributer (including manufacturer and importer); or

b. Dealer (retail and vending machine)

2. Each category of business, dealer location and vending machine for electronic nicotine-delivery systems shall require a separate application.

C. Fee.

1. The application fee (not refundable and non-returnable) as set forth in the rules and regulations pertaining to the Fee Structure for Licensing, Laboratory and Administrative Services Provided by the Department of Health (216-RICR-10-05-2) shall accompany the application for registration. Applications received without the required application fee shall be returned to the applicant.

A. A license to engage in the business of selling electronic nicotine-delivery system products in the State of Rhode Island may be issued to an applicant who meets the relevant requirements for licensure as required by the Act and this Part.

B. A dealer’s license shall be issued to a specific licensee for a specific location and shall not be transferable. Each issued license shall be prominently displayed on the premises, if any, covered by the license.

C. If the applicant for a license does not have a place of business in the State of Rhode Island, the license shall be issued for such applicant's principal place of business, wherever located.

A licensee must notify the Department, in writing, within thirty (30) days in the event that it changes its principal place of business.

A. Expiration.

1. The license of every person licensed pursuant to provisions of the Act and this Part shall expire on the thirty-first (31st) day of January of the following year

B. Renewal.

1. Every licensed person who desires to renew his or her license shall file with the Department a renewal application, executed, together with a renewal fee as set forth in the rules and regulations Pertaining to the Fee Structure for Licensing, Laboratory and Administrative Services Provided by the Department of Health (216-RICR-10-05-2), on or before the thirty-first (31st) day of January in each year. New business licenses are issued throughout the year.

2. Upon receipt of a renewal application and payment of the renewal fee, the accuracy of the application shall be verified and the Department may grant a renewal license effective on the first (1st) day of February and expiring on the thirty-first (31st) day of January of the following year.

C. Failure to Renew.

1. Failure to renew a license on or before the thirty-first (31st) day of January in each year, as required by this Part, shall result in the business becoming an unlicensed business, and subject to the penalties described in § 6.9 of this Part.

Pursuant to R.I. Gen. Laws § 23-1-57, any distributor or dealer who sells, offers for sale, or possesses with intent to sell, electronic nicotine-delivery system products in the State of Rhode Island without the appropriate license shall be fined in accordance with R.I. Gen. Laws § 23-1-58.