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 updating existing definitions for terms like "cigar," "cigarette," and "manufacturer" to align with current industry practices. The bill also outlines the responsibilities of the Department of Treasury in administering and enforcing these regulations, including the appointment of special investigators as peace officers. Additionally, it establishes licensing requirements for various stakeholders in the tobacco industry, mandates record-keeping for vending machine operators, and emphasizes compliance inspections to enhance regulatory oversight.

Furthermore, the bill addresses the taxation of modified risk tobacco products and introduces new reporting requirements for licensees and manufacturers. It specifies that starting January 1, 2026, the definition of tobacco products will expand to include alternative nicotine products and authorized consumable materials. The bill also clarifies the procedures for the seizure and forfeiture of contraband tobacco products, outlines penalties for non-compliance, and prohibits local governments from imposing new taxes or regulations on tobacco products. Overall, the amendments aim to strengthen enforcement mechanisms, ensure compliance with federal laws, and promote public health by clarifying definitions and licensing requirements while allocating tax proceeds to health and education programs.

Statutes affected:
Senate Introduced Bill: 205.422