The bill amends the Tobacco Products Tax Act of 1993 to modernize the regulation and taxation of tobacco products, including nicotine and vapor products. It introduces new definitions such as "alternative nicotine product," "authorized consumable material," and "authorized vapor product," while also updating existing definitions for terms like "cigar," "cigarette," and "manufacturer." The bill enhances the regulatory framework by clarifying the roles of the Department of Treasury in administering and enforcing the tax, establishing licensing requirements for manufacturers, wholesalers, and retailers, and introducing penalties for violations. Additionally, it sets forth new record-keeping requirements and mandates compliance with federal regulations.

Furthermore, the bill outlines the licensing process, including fees and proof of financial responsibility, and specifies that records related to tobacco products must be maintained for four years. It also addresses the sale and distribution of modified risk tobacco products, requiring manufacturers to notify the department of any changes to their product status. The legislation prohibits local governments from imposing new taxes or regulations on tobacco products starting January 1, 2026, while allowing existing regulations to remain in effect. Overall, the amendments aim to strengthen enforcement, ensure compliance, and allocate tax proceeds effectively for public health initiatives.

Statutes affected:
Senate Introduced Bill: 205.422