S.B. No. 1698 seeks to enhance the regulation of e-cigarette sales in Texas by instituting a registration requirement for distributors and creating a directory of manufacturers and their products. The bill amends Section 161.0876(b) of the Health and Safety Code to prohibit marketing strategies that appeal to minors, such as using cartoon characters or celebrity images. It also establishes a new criminal offense for distributors who fail to register, classifying this as a Class B misdemeanor. Additionally, e-cigarette manufacturers are required to submit annual certifications to the comptroller, confirming compliance with federal regulations and paying a fee of $2,500 for each product sold in Texas.

The bill further outlines the responsibilities of the comptroller, including maintaining a publicly accessible directory of registered manufacturers, which must be updated monthly. It sets conditions for out-of-state manufacturers, such as appointing a registered agent in Texas and providing a surety bond. The legislation also introduces civil penalties for selling unregistered e-cigarettes, with escalating fines for repeat offenses, and allows for administrative sanctions like permit suspensions. The comptroller is mandated to conduct annual inspections of e-cigarette sellers and report on compliance efforts. Notably, certain requirements will be delayed until 2025 and 2026, providing additional time for compliance.

Statutes affected:
Introduced: ()
Senate Committee Report: Health and Safety Code 161.0876 (Health and Safety Code 161)