House Bill No. by Representative Henry establishes a three-tier system for permitting the producers, manufacturers, and wholesalers of tobacco and vapor products in Louisiana. The bill enacts new provisions under R.S. 26:914.1 and 914.2, which prohibit manufacturers from holding retail or wholesale dealer permits, possessing financial interests in wholesalers or retailers, and restrict wholesalers and retailers from holding permits outside their designated tier. Additionally, all tobacco and vapor products must be sold from manufacturers to wholesalers with valid permits, and direct shipments to retailers or consumers are regulated to ensure compliance with state laws.

The bill also mandates the creation of a digital product registry and tracking system to monitor the transfer of tobacco and vapor products between tiers, requiring detailed reporting of each transfer. Penalties for violations include fines ranging from $5,000 to $25,000 for first offenses, with permit suspensions and revocations for subsequent offenses. Unauthorized purchases from non-permitted sources will lead to immediate product seizure and potential forfeiture. Overall, the legislation aims to enhance regulation and accountability within the tobacco and vapor product distribution system in Louisiana.