The bill amends Chapter 40 of Title 7 of the Vermont Statutes, redefining "tobacco substitute" to include products derived from tobacco or nicotine intended for human consumption, such as electronic cigarettes and nicotine pouches, while explicitly excluding cannabis products and FDA-approved cessation products. It introduces new definitions for licensed wholesale dealers and wholesale outlets, requiring wholesale dealers to obtain a license from the Division of Liquor Control before selling tobacco products or substitutes. The bill also revises the licensing process for retail sales, establishing a new fee structure and increasing civil penalties for selling without a license or for individuals under 21 misrepresenting their age to purchase tobacco products. Compliance testing for tobacco licensees is mandated to ensure adherence to age restrictions, with penalties for multiple violations potentially leading to license suspension or revocation.

Additionally, the bill enhances regulations against deceptive marketing of tobacco products that appeal to minors and grants the Attorney General authority to impose civil penalties for violations. It requires annual reporting by the Department of Liquor and Lottery and the Office of the Attorney General on enforcement activities related to online sales of tobacco products. The act emphasizes the need for a comprehensive evaluation of enforcement staffing and resources to ensure compliance with the new regulations. The provisions related to wholesale dealers will take effect on July 1, 2027, while other amendments are set to take effect on July 1, 2026. The bill was signed by the Governor on June 16.

Statutes affected:
As Introduced: 7-40, 3-167a, 18-9502, 32-3102, 32-7702, 32-7731, 32-7734, 32-7771, 32-7772, 32-7774, 32-7775, 32-7776, 32-7777, 32-7779, 32-7780, 32-7782
As Passed By the Senate -- Official: 7-40, 3-167a, 18-9502, 32-3102, 32-7702, 32-7731, 32-7734, 32-7771, 32-7772, 32-7774, 32-7775, 32-7776, 32-7777, 32-7779, 32-7780, 32-7782, 4-1102(b), 4-1102, 32-7821
As Passed By the Senate -- Unofficial: 7-40, 4-1102(b), 4-1102, 32-3102, 32-7702, 32-7776, 32-7821
As Passed by Both House and Senate -- Official: 7-40, 3-167a, 18-9502, 32-3102, 32-7702, 32-7731, 32-7734, 32-7771, 32-7772, 32-7774, 32-7775, 32-7776, 32-7777, 32-7779, 32-7780, 32-7782, 4-1102(b), 4-1102, 32-7821, 7-210
As Passed by Both House and Senate -- Unofficial: 7-40, 4-1102(b), 4-1102, 7-210, 32-3102, 32-7702, 32-7776, 32-7821
As Enacted: 7-40, 4-1102(b), 4-1102, 7-210, 32-3102, 32-7702, 32-7776, 32-7821