This legislative bill amends various sections of the Nebraska Revised Statutes to strengthen the regulation and taxation of tobacco and nicotine products, particularly focusing on alternative nicotine products and electronic nicotine delivery systems. It introduces key definitions, such as "alternative nicotine product," which includes products containing nicotine or nicotine analogues intended for human consumption, and clarifies the definition of "electronic nicotine delivery system" to encompass devices delivering nicotine in vapor form. The bill establishes a tax rate of ten percent on electronic nicotine delivery systems with more than three milliliters of consumable material and a twenty percent tax on alternative nicotine products and unspecified tobacco products. It also outlines the penalties for violations, including the classification of tobacco products involved in violations as contraband, subject to forfeiture and destruction.

Additionally, the bill modifies existing regulations regarding licensing and penalties for stamping agents who violate tobacco tax laws, allowing for the revocation or suspension of licenses and imposing civil penalties based on the severity of infractions. It specifies that the Tax Commissioner may employ inspectors to enforce compliance and outlines the process for notifying licensees of tax deficiencies. The act is set to become operative on January 1, 2026, and repeals several existing statutes related to tobacco taxation, aiming to ensure better compliance and enforcement of tax laws while addressing the growing market of alternative nicotine products.

Statutes affected:
Introduced: 28-1418.01, 59-1523, 69-2705, 69-2709, 69-2710.01, 77-2604, 77-2612, 77-2615.01, 77-4001, 77-4002, 77-4003.01, 77-4015
Final Reading: 28-1418.01, 59-1523, 69-2705, 69-2709, 69-2710.01, 77-2604, 77-2612, 77-2615.01, 77-4001, 77-4002, 77-4003.01, 77-4007, 77-4008, 77-4015
Slip Law: 28-1418.01, 59-1523, 69-2705, 69-2709, 69-2710.01, 77-2604, 77-2612, 77-2615.01, 77-4001, 77-4002, 77-4003.01, 77-4007, 77-4008, 77-4015