The proposed bill seeks to regulate the retail sale of nicotine products in South Dakota by establishing a comprehensive licensing framework for retailers and vending machine operators. It amends existing law to clarify that lists of licensees are confidential, with specific exceptions, and introduces definitions for terms related to nicotine products, such as "alternative nicotine product," "nicotine analog," and "vapor product." Retailers will be required to secure a license to sell these products, with detailed application requirements and fees based on nicotine sales income. The bill also outlines strict penalties for violations, including fines and potential license revocation, and prohibits sales to individuals under twenty-one, while mandating age-verification systems for vending machine sales.

Furthermore, the bill mandates annual unannounced inspections by county state's attorneys or designated local law enforcement at locations selling nicotine products to ensure compliance. It allows for the involvement of individuals under twenty-one in compliance tests, with appropriate supervision and parental consent. Additionally, nicotine products must be sold in unopened packages from the manufacturer with federally mandated warning labels, with violators facing fines. The new regulations are set to take effect on January 1, 2027, and aim to enhance public health protections through a structured licensing and enforcement system.

Statutes affected:
Senate Health and Human Services Engrossed, 02/20/2026: 10-1-28.2, 34-46-2, 34-46-2.2, 34-46-21
Senate Engrossed, 02/25/2026: 10-1-28.2, 34-46-2, 34-46-2.2, 34-46-21
House Commerce and Energy Engrossed, 03/04/2026: 10-1-28.2, 34-46-2, 34-46-2.2, 34-46-3, 34-46-21
House Engrossed, 03/09/2026: 10-1-28.2, 34-46-2, 34-46-2.2, 34-46-3, 34-46-21
Enrolled, 03/11/2026: 10-1-28.2, 34-46-2, 34-46-2.2, 34-46-3, 34-46-21