This bill aims to regulate the sale of nicotine products in South Dakota and establishes penalties for violations. It amends existing laws regarding the confidentiality of taxpayer information and introduces new definitions for terms related to nicotine products, including "alternative nicotine product," "distributor," "retailer," and "vapor product." The bill mandates that individuals or businesses selling nicotine products must obtain a license, with specific requirements for distributors, including a $1,000 application fee and compliance with state tax obligations. It also outlines the conditions under which nicotine products can be shipped directly to consumers, emphasizing age verification and record-keeping.

Additionally, the bill establishes a nicotine enforcement fund to support the enforcement of these regulations, with funds collected from licensing fees and penalties directed to this fund. Violations of the new regulations can result in various penalties, including misdemeanors for unauthorized sales and civil penalties for shipping violations. The bill also allows the attorney general to pursue civil actions for violations, ensuring that enforcement measures are in place to uphold the new regulations surrounding nicotine product sales.

Statutes affected:
Introduced, 01/29/2026: 10-1-28.2, 34-46-2, 34-46-2.2, 34-46-21
House Health and Human Services Engrossed, 02/17/2026: 10-1-28.2, 10-50-11
Senate Health and Human Services Engrossed, 03/03/2026: 10-1-28.2, 10-50-11
Senate Engrossed, 03/06/2026: 10-1-28.2, 10-50-11
Enrolled, 03/11/2026: 10-1-28.2, 10-50-11