The proposed bill aims to regulate the retail sale of nicotine products in South Dakota, establishing a licensing system for retailers and imposing strict penalties for violations. Key provisions include the requirement for retailers to secure a license from the Department of Revenue, with a separate application and fee of $1,000 for each business location. The bill defines terms such as "licensee," "nicotine product," and "retailer," and outlines the application process, including the need to disclose any past violations related to nicotine products. Additionally, it mandates that retailers maintain records of their inventory and sales, and allows for inspections by the Department of Revenue to ensure compliance.

The bill also sets forth specific prohibitions for licensees, including selling nicotine products to individuals under 21, shipping products directly to consumers, and selling through vending machines or online platforms. Violations can result in escalating fines, with penalties ranging from $500 for a first offense to $5,500 and license revocation for repeated violations. Furthermore, the bill establishes a nicotine enforcement fund to support the enforcement of these regulations. Amendments to existing laws are included to align with the new provisions, reinforcing the legal framework surrounding the sale of nicotine products in the state.

Statutes affected:
Introduced, 01/29/2026: 10-1-28.2, 34-46-2, 34-46-2.2, 34-46-21