S.B. No. 1698 introduces a new subchapter to the Health and Safety Code in Texas, establishing a directory for e-cigarette manufacturers and their products. This directory, maintained by the comptroller, will include essential details such as brand name, product name, flavor, and category. Manufacturers must certify their compliance with regulations and pay an annual fee of $2,500 for each product sold in the state. The bill also mandates that manufacturers notify the comptroller of any changes to their certification and designate a registered agent if they are not based in Texas. Furthermore, the sale of e-cigarettes not listed in the directory is prohibited, with penalties for non-compliance, including administrative, civil, and potential criminal offenses.

The bill outlines additional provisions regarding the regulation of e-cigarettes, holding importers, distributors, and retailers responsible for costs associated with the seizure and disposal of non-compliant products. E-cigarettes removed from the directory or certified by a removed manufacturer are subject to seizure after 30 days. The comptroller is required to conduct two annual random audits of e-cigarette sellers to ensure compliance and publish the results online. Civil penalties for violations will increase for repeat offenses, and deceptive trade practices can lead to administrative sanctions, including permit suspensions. A manufacturer that provides false information on certification forms may face a Class B misdemeanor charge. The bill includes a compliance timeline for manufacturers and the comptroller, with the act set to take effect on September 1, 2025.

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