Senate Bill 2098 aims to regulate the sale of nitrous oxide in Tennessee, particularly in relation to vape shops. The bill introduces definitions for terms such as "nitrous oxide," "sales at retail," "vape shop," and "vape shop retailer." It establishes that it is unlawful for vape shop retailers, distributors, wholesalers, or importers of vape products to sell or offer nitrous oxide for retail sale.

The bill outlines a tiered penalty system for violations, with civil penalties increasing for repeat offenses. For a first violation, the penalty can be up to $500 per product, while a second violation incurs a penalty of $750 to $1,000 and a 30-day license suspension. A third violation results in a penalty of $1,000 to $1,500 and license revocation. Additionally, manufacturers who knowingly facilitate the sale of nitrous oxide face a civil penalty of $10,000 per product. The state is also entitled to recover costs associated with enforcement, including investigation and legal fees. The act is set to take effect on July 1, 2026.