(a) Each business entity with a dealer registration shall place and maintain in legible condition at each point of sale of electronic nicotine delivery systems or vapor products a notice to consumers that states (1) the sale, giving or delivering of electronic nicotine delivery systems and vapor products to any person under twenty-one years of age is prohibited by § 53-344b, (2) the use of false identification by a person under twenty-one years of age to purchase an electronic nicotine delivery system or a vapor product is prohibited, and (3) the penalties and fines for violating the provisions of this section and § 53-344b.

(b) The Commissioner of Mental Health and Addiction Services, or the commissioner’s designee, shall conduct unannounced compliance checks on business entities holding a dealer registration by engaging persons between the ages of sixteen and twenty to enter the place of business of each such business entity to attempt to purchase an electronic nicotine delivery system or a vapor product. The commissioner shall conduct unannounced follow-up compliance checks of all noncompliant business entities and shall refer all noncompliant business entities to the Commissioner of Revenue Services.

(c) Upon receipt of a referral made pursuant to subsection (b) of this section, the Commissioner of Revenue Services may, following a hearing, impose a civil penalty and direct the Commissioner of Consumer Protection to suspend or revoke the dealer registration of the business entity that is the subject of such referral. The Commissioner of Revenue Services shall provide such business entity with written notice of the hearing, specifying the time and place of such hearing and requiring such business entity to show cause why such dealer registration should not be suspended or revoked. The written notice of the hearing shall be mailed or delivered to such business entity not less than ten days preceding the date of the hearing. Such notice may be served personally or by registered or certified mail.

(d) If the Commissioner of Revenue Services finds, after a hearing pursuant to subsection (c) of this section, that any person employed by any business entity issued a dealer registration under § 21a-415 has sold, given or delivered an electronic nicotine delivery system or vapor product to a person under twenty-one years of age, other than a person under twenty-one years of age who is delivering or accepting delivery in such person’s capacity as an employee, said commissioner shall, for the first violation, require such employee to successfully complete an online prevention education program administered by the Department of Mental Health and Addiction Services not later than thirty days after said commissioner’s finding. Said commissioner shall assess any employee who fails to complete such program a civil penalty of two hundred dollars. Said commissioner shall assess any employee a civil penalty of two hundred fifty dollars for a second or subsequent violation on or before twenty-four months after the date of the first violation.

(e) If the Commissioner of Revenue Services finds, after a hearing pursuant to subsection (c) of this section, that (1) any business entity issued a dealer registration under § 21a-415 has sold, given or delivered an electronic nicotine delivery system or vapor product to a person under twenty-one years of age, other than a person under twenty-one years of age who is delivering or accepting delivery in such person’s capacity as an employee, or (2) such person’s employee has sold, given or delivered an electronic nicotine delivery system or vapor product to a person under twenty-one years of age, the commissioner shall, for the first violation, require the authorized owner of such business entity to successfully complete an online prevention education program administered by the Department of Mental Health and Addiction Services not later than thirty days after said commissioner’s finding. Said commissioner shall assess any business entity issued a dealer registration, whose authorized owner fails to complete such program, a civil penalty of three hundred dollars for the first violation. Said commissioner shall assess such business entity a civil penalty of seven hundred fifty dollars for a second violation on or before twenty-four months after the date of the first violation. For a third violation by such business entity on or before twenty-four months after the date of the first violation, said commissioner shall assess such business entity a civil penalty of one thousand dollars and notify the Commissioner of Consumer Protection that the dealer registration held by such business entity under this chapter shall be suspended for not less than thirty days. For a fourth violation on or before twenty-four months after the date of the first violation, the Commissioner of Revenue Services shall assess such business entity a civil penalty of one thousand dollars and notify the Commissioner of Consumer Protection that the dealer registration held by such business entity under said chapter shall be revoked. The Commissioner of Revenue Services shall order such business entity to conspicuously post a notice in a public place stating that electronic nicotine delivery systems and vapor products cannot be sold during the period of suspension or revocation and the reasons for such suspension or revocation. Any sale of an electronic nicotine delivery system or vapor product by such business entity during the period of such suspension or revocation shall be deemed an additional violation of this section.

(f) Upon receipt of notice of determination from the Commissioner of Revenue Services made under subsection (e) of this section, the Commissioner of Consumer Protection shall suspend or revoke the dealer registration of the business entity that is the subject of said determination. The Commissioner of Consumer Protection shall not be required to hold a hearing in connection with any notice of determination received from the Commissioner of Revenue Services under this section.

(g) The Commissioner of Consumer Protection shall not issue a new dealer registration to a former registrant whose dealer registration was revoked unless the commissioner is satisfied that such business entity that holds a dealer registration will comply with the provisions of this chapter and any regulations related thereto, and § 53-344b.