Bill > HB1240

This bill establishes new regulations for the distribution and sale of vapor products, defining "vapor product" as a noncombustible device containing a consumable nicotine liquid that produces vapor for inhalation, excluding FDA-approved tobacco cessation products. It requires both distributors (selling for resale) and retailers (selling at retail) to obtain licenses from the Department of Revenue, with associated fees and requirements like holding a sales tax license and being current on taxes. Distributors must maintain records of transactions and distribution, while retailers must keep records of where they obtained their products. The bill prohibits selling vapor products without the proper license and mandates the use of an approved third-party age verification system at the point of sale for retailers, with violations resulting in misdemeanor penalties. It also restricts the sale of flavored vapor products (other than tobacco, mint, or menthol) to licensed retail locations that restrict access to individuals 21 and older and derive a significant portion of revenue from vapor and tobacco products. Furthermore, the bill prohibits certain advertising and promotional activities for vapor products, especially those targeting individuals under 21, and bans the distribution of free samples. It also sets ingredient and packaging standards for vapor products, requiring tamper-evident or child-resistant packaging and specific labeling, and establishes penalties for non-compliance, including license suspension or revocation and civil penalties. Finally, the bill amends existing laws to clarify definitions related to tobacco and vapor products and to regulate their sale through vending machines and in tobacco specialty stores.

Health and Social Services

https://sdlegislature.gov/#/Session/Bill/26557