The bill amends several sections of the General Laws in Chapter 44-20, which pertains to the taxation of cigarettes, other tobacco products, and electronic nicotine-delivery system products. It introduces a new definition for "distributor" that includes dealers whose annual business sales of cigars are greater than fifty percent (50%) of their total sales. The bill specifies that transactions involving tobacco products can only occur between licensed manufacturers, importers, distributors, and dealers, with an exception for cigars. Additionally, it allows distributors who qualify under the new definition to obtain pipe tobacco products from unlicensed manufacturers, importers, or distributors.

The bill also clarifies that a distributor who qualifies for a license under the new definition may hold that license at the same location as their dealer's license. The act is set to take effect upon passage.