Senate Bill 763 amends the Tennessee Code Annotated to enhance the regulation of vapor products. The bill eliminates the requirement for sellers to assess whether a prospective purchaser appears to be under 30 years of age before selling certain products. It updates the definition of tobacco products to include "vapor products" and introduces new definitions for "closed-system vapor product," "open-system vapor product," and "consumable material." Additionally, the bill establishes a tax structure for vapor products, specifying rates for closed and open systems while excluding smokeless nicotine products from these taxes.

The legislation imposes new obligations on manufacturers, including the requirement to submit annual certifications to the state to confirm compliance with federal regulations and provide detailed product information. A directory of compliant vapor products will be maintained, and products not listed will be prohibited from sale. The bill also mandates compliance checks for retailers, distributors, and wholesalers, with at least two unannounced checks annually. It establishes penalties for violations and allocates collected fees and penalties to a special account for enforcement. The act is set to take effect on July 1, 2025, with annual reports on compliance activities starting July 1, 2026.

Statutes affected:
Introduced: 39-17-1504(d), 39-17-1504, 67-4-1001(24)(A), 67-4-1001, 67-4-1005, 67-4-1025(a), 67-4-1025