House Bill No. 623 establishes a three-tier system for the permitting of producers, manufacturers, and wholesalers of vapor products in Louisiana. The bill enacts R.S. 26:914.1, which outlines specific prohibitions for Louisiana-permitted manufacturers, wholesalers, and retailers of vapor products. Manufacturers are not allowed to hold retail or wholesale dealer permits, possess financial interests in dealers, or sell directly to consumers. Similarly, wholesalers cannot hold retail permits, and retailers are restricted from holding wholesale permits or purchasing from anyone other than permitted wholesalers. The bill also prohibits direct shipments of vapor products to consumers from manufacturers or sellers.

Additionally, the bill allows Louisiana-permitted wholesalers to sell or distribute vapor products to affiliated retailers, defined as entities under common control. It explicitly excludes lawful marijuana and marijuana products from the requirements of this new permitting system. Amendments made during the legislative process clarified the application of the three-tier system and reinforced the prohibitions on direct sales to consumers, ensuring that the distribution of vapor products adheres to the established regulatory framework.