Bill S.198 amends Chapter 40 of Title 7 of the Vermont Statutes to enhance the regulation of tobacco products and tobacco substitutes. It introduces a new definition for "tobacco substitute," which encompasses products derived from tobacco or nicotine intended for human consumption, including electronic cigarettes, while excluding cannabis products and FDA-approved cessation products. The bill establishes new licensing requirements for wholesale dealers and retail sellers of tobacco products and substitutes, requiring them to obtain specific endorsements from the Division of Liquor Control. Additionally, it revises penalties for selling tobacco products to individuals under 21, increasing fines and establishing a civil penalty structure for violations.

The bill also prohibits the deceptive marketing of tobacco products that appeal to minors and grants the Attorney General the authority to impose civil penalties for such violations. It mandates annual reporting on enforcement activities related to online sales of tobacco products and updates definitions and penalties for tobacco regulations, including the inclusion of nicotine pouches. The act is set to take effect on July 1, 2026, with certain sections delayed until July 1, 2027, allowing for a gradual transition to the new regulatory framework for wholesale dealers.

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