Bill > HB1220

This bill establishes regulations for the sale of nicotine products, defining terms like "alternative nicotine product" (noncombustible products with nicotine or nicotine analogs, excluding vapor products, tobacco products, and FDA-regulated items), "distributor" (those selling nicotine products to retailers), "nicotine product" (alternative nicotine products or vapor products, excluding tobacco products and cigarettes), "retailer" (those selling to individual consumers), and "vapor product" (noncombustible nicotine or nicotine analog products that produce vapor, including e-cigarettes and related components, but excluding FDA-approved cessation products). It requires anyone selling nicotine products for resale, except licensed distributors or wholesalers, to obtain a license for each place of business. Distributors must pay a $1,000 fee, hold a sales tax license, and be current on taxes to obtain or renew their license, with fees going into a new "nicotine enforcement fund." Distributors must maintain records of product sourcing and sales for three years and allow inspections, with violations being a Class 2 misdemeanor. The bill also allows for the revocation of distributor licenses for non-compliance, with violations of selling without a license being a Class 1 misdemeanor. Retailers can only purchase nicotine products from licensed distributors or wholesalers, with violations being a Class 2 misdemeanor. The bill prohibits shipping nicotine products directly to consumers unless specific conditions are met, including age verification (at least 21), payment by the purchaser, signature upon delivery, holding a sales tax license, proper labeling, record-keeping, and remittance of taxes, with violations subject to civil penalties. The attorney general can bring civil actions for violations of these shipping provisions, with penalties increasing for subsequent offenses. The nicotine enforcement fund will be used to cover expenses related to enforcing these regulations. Finally, alternative nicotine products shipped for personal use cannot be resold, and doing so is a Class 1 misdemeanor.

Health and Social Services

https://sdlegislature.gov/#/Session/Bill/26654