Indiana 2025 Regular Session

Indiana House Bill HB1650 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	HOUSE BILL No. 1650
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 7.1-7; IC 24-5-0.5-3.
7	7	Synopsis: Vapor products and e-liquids matters. Repeals statutory
8	8	language that the vapor pens and e-liquid article does not apply to a
9	9	manufacturer of a closed system vapor product. Requires a
10	10	manufacturer of vapor products that contain nicotine and e-liquid that
11	11	contains nicotine to certify that the manufacturer is going to comply
12	12	with certain manufacturing and safety requirements and that the
13	13	manufacturer has received from or submitted certain documents to the
14	14	Food and Drug Administration (FDA). Requires a manufacturer to
15	15	submit certain information to the alcohol and tobacco commission.
16	16	Requires the commission to create a directory that lists all: (1) vapor
17	17	products and e-liquid manufacturers; and (2) vapor products and
18	18	e-liquid in which certification forms have been submitted to the
19	19	commission. Provides that vapor products and e-liquid not included in
20	20	the directory cannot be sold to consumers in Indiana. Provides penalties
21	21	for violations. Requires certain nonresident or foreign manufacturers
22	22	of vapor products or e-liquids to appoint an agent for service of process
23	23	and to submit to the commission a surety bond. Requires the
24	24	commission to submit a report to the general assembly each year
25	25	regarding the status of the directory, information regarding the
26	26	collection of fees, enforcement activities, and other information.
27	27	Effective: July 1, 2025.
28	28	Judy, Bartels
29	29	January 21, 2025, read first time and referred to Committee on Public Policy.
30	30	2025 IN 1650—LS 7732/DI 107 Introduced
31	31	First Regular Session of the 124th General Assembly (2025)
32	32	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
33	33	Constitution) is being amended, the text of the existing provision will appear in this style type,
34	34	additions will appear in this style type, and deletions will appear in this style type.
35	35	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
36	36	provision adopted), the text of the new provision will appear in this style type. Also, the
37	37	word NEW will appear in that style type in the introductory clause of each SECTION that adds
38	38	a new provision to the Indiana Code or the Indiana Constitution.
39	39	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
40	40	between statutes enacted by the 2024 Regular Session of the General Assembly.
41	41	HOUSE BILL No. 1650
42	42	A BILL FOR AN ACT to amend the Indiana Code concerning
43	43	alcohol and tobacco and to make an appropriation.
44	44	Be it enacted by the General Assembly of the State of Indiana:
45	45	1 SECTION 1. IC 7.1-7-1-1, AS AMENDED BY P.L.206-2017,
46	46	2 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
47	47	3 JULY 1, 2025]: Sec. 1. (a) Except as provided in subsection (b), This
48	48	4 article applies to the following:
49	49	5 (1) The commercial manufacturing, bottling, selling, bartering, or
50	50	6 importing of e-liquid in Indiana.
51	51	7 (2) The sale, possession, and use of e-liquid products in Indiana.
52	52	8 (b) This article does not apply to a manufacturer of a closed system
53	53	9 vapor product, except as specifically provided in this article.
54	54	10 SECTION 2. IC 7.1-7-2-12, AS AMENDED BY P.L.206-2017,
55	55	11 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
56	56	12 JULY 1, 2025]: Sec. 12. "Flavoring" means a food grade additive or
57	57	13 synthetic flavoring substance that is used to add flavor and that is not
58	58	14 prohibited by the federal Food and Drug Administration as an additive
59	59	15 in:
60	60	16 (1) vapor products; and
61	61	17 (2) e-liquids that do not contain nicotine.
62	62	2025 IN 1650—LS 7732/DI 107 2
63	63	1 SECTION 3. IC 7.1-7-2-15, AS AMENDED BY P.L.206-2017,
64	64	2 SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
65	65	3 JULY 1, 2025]: Sec. 15. "Manufacturer" means a person located inside
66	66	4 or outside Indiana that is engaged in manufacturing e-liquid or vapor
67	67	5 products.
68	68	6 SECTION 4. IC 7.1-7-2-22.7 IS ADDED TO THE INDIANA
69	69	7 CODE AS A NEW SECTION TO READ AS FOLLOWS
70	70	8 [EFFECTIVE JULY 1, 2025]: Sec. 22.7. "Timely filed premarket
71	71	9 tobacco product application" means an application pursuant to 21
72	72	10 U.S.C. 387j for a vapor product containing nicotine derived from
73	73	11 tobacco marketed in the United States as of August 8, 2016, that
74	74	12 was submitted to the United States Food and Drug Administration
75	75	13 on or before September 9, 2020, and accepted for filing.
76	76	14 SECTION 5. IC 7.1-7-3-2, AS AMENDED BY P.L.206-2017,
77	77	15 SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
78	78	16 JULY 1, 2025]: Sec. 2. The commission has the following duties and
79	79	17 responsibilities:
80	80	18 (1) To require the submission of information necessary to
81	81	19 implement this article.
82	82	20 (2) To issue permits.
83	83	21 (3) To charge fees and impose penalties as set forth in this
84	84	22 article. The fees charged under this subdivision may not exceed
85	85	23 the actual costs incurred by the commission or exceed the limits
86	86	24 set forth by this article.
87	87	25 (4) To approve or deny a permit application made under
88	88	26 IC 7.1-7-4 within sixty (60) days of receiving the application.
89	89	27 (5) To administer and enforce the directory under
90	90	28 IC 7.1-7-5-1.3 as set forth in IC 7.1-7-5.
91	91	29 SECTION 6. IC 7.1-7-4-6, AS AMENDED BY P.L.17-2019,
92	92	30 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
93	93	31 JULY 1, 2025]: Sec. 6. (a) As used in this section:
94	94	32 (1) "adulterated" means a product that:
95	95	33 (A) consists in whole or in part of any filthy, putrid, or
96	96	34 decomposed substance; or
97	97	35 (B) is contaminated by any added poisonous or added
98	98	36 deleterious substance that may render the product injurious to
99	99	37 health; and
100	100	38 (2) "tamper evident package" means a package having at least one
101	101	39 (1) indicator or barrier to entry that, if breached or missing, can
102	102	40 reasonably be expected to provide visible evidence to consumers
103	103	41 that tampering has occurred.
104	104	42 (b) Except as provided in subsection (c), a manufacturing facility
105	105	2025 IN 1650—LS 7732/DI 107 3
106	106	1 shall comply with the following requirements:
107	107	2 (1) An e-liquid container must use a child proof cap that has the
108	108	3 child resistant effectiveness set forth in the federal poison
109	109	4 prevention packaging standards, 16 CFR 1700.15(b)(1).
110	110	5 (2) An e-liquid container must use a tamper evident package. The
111	111	6 tamper evident package feature must be designed to and remain
112	112	7 intact when handled in a reasonable manner during the
113	113	8 manufacture, distribution, and retail display of the e-liquid
114	114	9 container.
115	115	10 (3) The label on an e-liquid container must meet the nicotine
116	116	11 addictiveness warning statement requirements set forth in 21 CFR
117	117	12 1143.3.
118	118	13 (4) The manufacturer or retailer may not add an adulterated
119	119	14 product to any e-liquid produced for sale in Indiana.
120	120	15 (5) The manufacturer must submit to random site visits by the
121	121	16 commission.
122	122	17 (6) The manufacturer may:
123	123	18 (A) own and control both the e-liquid manufacturing process
124	124	19 and the bottling process; or
125	125	20 (B) subcontract with another manufacturer for the performance
126	126	21 of the e-liquid manufacturing service, the bottling services, or
127	127	22 both services.
128	128	23 However, both the manufacturer performing a service under
129	129	24 clause (B) and the manufacturer for which the service is
130	130	25 performed must meet the requirements of this article.
131	131	26 (7) A manufacturer may use a flavoring, as defined by
132	132	27 IC 7.1-7-2-12, as an ingredient in an e-liquid that does not
133	133	28 contain nicotine.
134	134	29 (8) The manufacturer or any person listed on the permit
135	135	30 application may not have been convicted within ten (10) years
136	136	31 before the date of application of:
137	137	32 (A) a federal crime having a sentence of at least one (1) year;
138	138	33 (B) an Indiana Class A, Class B, or Class C felony (for a crime
139	139	34 committed before July 1, 2014) or a Level 1, Level 2, Level 3,
140	140	35 Level 4, or Level 5 felony (for a crime committed after June
141	141	36 30, 2014);
142	142	37 (C) a crime in a state other than Indiana having a penalty equal
143	143	38 to the penalty for an Indiana Class A, Class B, or Class C
144	144	39 felony (for a crime committed before July 1, 2014) or a Level
145	145	40 1, Level 2, Level 3, Level 4, or Level 5 felony (for a crime
146	146	41 committed after June 30, 2014);
147	147	42 (D) an Indiana Class D felony involving a controlled substance
148	148	2025 IN 1650—LS 7732/DI 107 4
149	149	1 under IC 35-48-4 (for a crime committed before July 1, 2014)
150	150	2 or a Level 6 felony involving a controlled substance under
151	151	3 IC 35-48-4 (for a crime committed after June 30, 2014); or
152	152	4 (E) a crime in a state other than Indiana similar to a Class D
153	153	5 felony involving a controlled substance under IC 35-48-4 (for
154	154	6 a crime committed before July 1, 2014) or a Level 6 felony
155	155	7 involving a controlled substance under IC 35-48-4 (for a crime
156	156	8 committed after June 30, 2014).
157	157	9 (c) Subsection (b)(1) and (b)(2) do not apply to a closed system
158	158	10 vapor product or disposable vapor product.
159	159	11 SECTION 7. IC 7.1-7-5-1.1, AS AMENDED BY P.L.220-2023,
160	160	12 SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
161	161	13 JULY 1, 2025]: Sec. 1.1. (a) A retailer must have a valid sales
162	162	14 certificate issued by the commission in accordance with
163	163	15 IC 7.1-3-18.5-1 that contains a separate box to check for identifying a
164	164	16 retailer that sells e-liquids.
165	165	17 (b) A retailer may purchase e-liquid only from an Indiana e-liquid
166	166	18 manufacturing permit holder or an Indiana distributor permit holder.
167	167	19 (c) A retailer shall retain all invoices for e-liquid that the retailer
168	168	20 purchases for two (2) years.
169	169	21 (d) A retailer shall not allow the self-service sale for individuals
170	170	22 purchasing an e-liquid.
171	171	23 (e) A retailer may not sell an e-liquid that contains more than
172	172	24 seventy-five (75) milligrams per milliliter of nicotine.
173	173	25 (f) A manufacturer must have an e-liquid manufacturing permit
174	174	26 issued under IC 7.1-7-4.
175	175	27 (g) A distributor that does not have a valid e-liquid manufacturing
176	176	28 permit issued under IC 7.1-7-4 must have a valid distributor's license
177	177	29 issued under IC 6-7-2-8.
178	178	30 (h) A distributor shall purchase and distribute e-liquid from an:
179	179	31 (1) Indiana e-liquid manufacturer that has a valid e-liquid
180	180	32 manufacturing permit under IC 7.1-7-4; or
181	181	33 (2) Indiana e-liquid distributor that has a valid:
182	182	34 (A) e-liquid manufacturing permit issued under IC 7.1-7-4; or
183	183	35 (B) distributor's license under IC 6-7-2-8.
184	184	36 (i) A distributor shall retain all invoices to a retailer or from a
185	185	37 manufacturer for at least two (2) years.
186	186	38 (j) A manufacturer, distributor, or retailer may not market e-liquid
187	187	39 as a modified risk tobacco product, as defined by IC 7.1-7-2-17.5, that
188	188	40 has not been designated as a modified risk tobacco product by the
189	189	41 federal Food and Drug Administration.
190	190	42 (k) Except as provided in subsection (m), a manufacturer, including
191	191	2025 IN 1650—LS 7732/DI 107 5
192	192	1 a manufacturer of a closed system vapor product, shall annually submit
193	193	2 a report to the commission setting forth:
194	194	3 (1) each new product that the manufacturer is producing and is
195	195	4 sold in Indiana with a list of the contents and ingredients by
196	196	5 volume; and
197	197	6 (2) whether the manufacturer has stopped producing products
198	198	7 previously produced and sold in Indiana.
199	199	8 A report under this subsection is confidential, and the commission may
200	200	9 not disclose it to another person.
201	201	10 (l) A manufacturer shall annually submit a report to the commission
202	202	11 setting forth:
203	203	12 (1) the milligrams per milliliter of nicotine in each product the
204	204	13 manufacturer produces; and
205	205	14 (2) the milliliters of each product sold that current year.
206	206	15 A report under this subsection is confidential, and the ATC may not
207	207	16 disclose it to another person.
208	208	17 (m) A manufacturer is not required to submit a report described in
209	209	18 subsection (k) if the manufacturer submits to the commission a
210	210	19 certification, by October 1 of each year, that each of the manufacturer's
211	211	20 vapor products sold in Indiana has been filed with the federal Food and
212	212	21 Drug Administration.
213	213	22 (n) A manufacturer may combine the reports required under
214	214	23 subsections (k) and (l) with the certification form required under
215	215	24 subsection (o), if allowed by the commission. The portions of the
216	216	25 combined reports that address the requirements of subsections (k)
217	217	26 and (l) are confidential, and the commission may not disclose those
218	218	27 portions to another person.
219	219	28 (o) Not later than June 1 of each year, each manufacturer of
220	220	29 vapor products that contain nicotine and e-liquid that contains
221	221	30 nicotine that are sold for retail sale in Indiana or to a consumer in
222	222	31 Indiana, whether directly or through a distributor, wholesaler,
223	223	32 retailer, or similar intermediary or intermediaries, shall certify
224	224	33 under penalty of perjury on a form and in the manner prescribed
225	225	34 by the commission, that the manufacturer agrees to comply with
226	226	35 this chapter and that:
227	227	36 (1) the manufacturer has received a marketing granted order
228	228	37 for the vapor product or e-liquid from the federal Food and
229	229	38 Drug Administration under 21 U.S.C. 387j; or
230	230	39 (2) the manufacturer submitted a timely filed premarket
231	231	40 tobacco product application for the vapor product or e-liquid
232	232	41 to the federal Food and Drug Administration pursuant to 21
233	233	42 U.S.C. 387j, and the application either remains under review
234	234	2025 IN 1650—LS 7732/DI 107 6
235	235	1 by the federal Food and Drug Administration or has received
236	236	2 a denial order that has been and remains:
237	237	3 (A) stayed by the federal Food and Drug Administration or
238	238	4 court order;
239	239	5 (B) rescinded by the federal Food and Drug
240	240	6 Administration; or
241	241	7 (C) vacated by a court.
242	242	8 (p) A manufacturer must separately list each vapor product and
243	243	9 e-liquid, including the:
244	244	10 (1) brand name;
245	245	11 (2) product name; and
246	246	12 (3) whether it is:
247	247	13 (A) a vapor product;
248	248	14 (B) a power unit;
249	249	15 (C) a device;
250	250	16 (D) an e-26 liquid;
251	251	17 (E) an e-liquid cartridge; or
252	252	18 (F) an e-liquid pod;
253	253	19 that is sold for retail sale in Indiana or to a consumer in Indiana,
254	254	20 on the certification form described in subsection (o).
255	255	21 (q) When a manufacturer submits the annual certification form
256	256	22 described in subsection (o), the manufacturer shall also submit:
257	257	23 (1) a:
258	258	24 (A) copy of the marketing granted order issued by the
259	259	25 federal Food and Drug Administration pursuant to 21
260	260	26 U.S.C. 387j;
261	261	27 (B) copy of the acceptance letter issued by the federal Food
262	262	28 and Drug Administration pursuant to 21 U.S.C. 387j for a
263	263	29 timely filed premarket tobacco product application; or
264	264	30 (C) document issued by federal Food and Drug
265	265	31 Administration or by a court confirming that the
266	266	32 premarket tobacco product application has received a
267	267	33 denial order that has been and remains stayed by the
268	268	34 federal Food and Drug Administration or court order,
269	269	35 rescinded by the federal Food and Drug Administration, or
270	270	36 vacated by a court; and
271	271	37 (2) an initial payment of two hundred fifty dollars ($250) for
272	272	38 each vapor product and e-liquid each time a manufacturer
273	273	39 submits an annual certification form for the product.
274	274	40 (r) The information submitted by a manufacturer pursuant to
275	275	41 subsection (q) is confidential commercial or financial information
276	276	42 for purposes of the public access laws under IC 5-14. A
277	277	2025 IN 1650—LS 7732/DI 107 7
278	278	1 manufacturer may redact confidential commercial or financial
279	279	2 information provided under subsection (q). The commission shall
280	280	3 not disclose confidential commercial or financial information
281	281	4 except as required by law.
282	282	5 (s) A manufacturer required to submit a certification form
283	283	6 described in subsection (o) shall notify the commission, not later
284	284	7 than thirty (30) days after the date that any material change to the
285	285	8 certification form occurs, including:
286	286	9 (1) the issuance or denial of a marketing authorization or
287	287	10 other order by the federal Food and Drug Administration
288	288	11 under 21 U.S.C. 387j; or
289	289	12 (2) the issuance of any other order or action by the federal
290	290	13 Food and Drug Administration or any court, that affects the
291	291	14 ability of the vapor product or e-liquid to be introduced or
292	292	15 delivered into interstate commerce for commercial
293	293	16 distribution in the United States.
294	294	17 SECTION 8. IC 7.1-7-5-1.3 IS ADDED TO THE INDIANA CODE
295	295	18 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
296	296	19 1, 2025]: Sec. 1.3. (a) By August 1, 2026, the commission shall
297	297	20 develop and maintain a directory on the commission's website, that
298	298	21 lists all:
299	299	22 (1) vapor product and e-liquid manufacturers; and
300	300	23 (2) vapor product and e-liquid for which certification forms
301	301	24 have been submitted under section 1.1 of this chapter.
302	302	25 (b) E-liquid listed under subsection (a)(2) shall include the:
303	303	26 (1) brand name;
304	304	27 (2) product name; and
305	305	28 (3) whether it is:
306	306	29 (A) a vapor product;
307	307	30 (B) a power unit;
308	308	31 (C) a device;
309	309	32 (D) an e-26 liquid;
310	310	33 (E) an e-liquid cartridge; or
311	311	34 (F) an e-liquid pod.
312	312	35 (c) The commission shall update the directory monthly to ensure
313	313	36 accuracy.
314	314	37 (d) Information in the directory is not confidential and the
315	315	38 commission may disclose information in the directory to another
316	316	39 person as required by this chapter.
317	317	40 SECTION 9. IC 7.1-7-5-1.5 IS ADDED TO THE INDIANA CODE
318	318	41 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
319	319	42 1, 2025]: Sec. 1.5. (a) Except as provided in subsections (b) and (c),
320	320	2025 IN 1650—LS 7732/DI 107 8
321	321	1 beginning August 1, 2026, or sixty (60) days after the commission
322	322	2 posts to its website the directory described in section 1.3 of this
323	323	3 chapter, whichever is later, vapor products and e-liquid not
324	324	4 included in the directory may not be sold for retail sale in Indiana
325	325	5 or to a consumer in Indiana, either directly or through an
326	326	6 importer, distributor, wholesaler, retailer, or intermediary.
327	327	7 (b) A retailer that sells vapor products or e-liquid has sixty (60)
328	328	8 days from the date the directory described in section 1.3 of this
329	329	9 chapter is posted on the commission's website, to sell products that
330	330	10 were in the retailer's inventory and not included in the directory
331	331	11 or to remove those products from the retailer's inventory.
332	332	12 (c) Each distributor or wholesaler has sixty (60) days from the
333	333	13 date the directory described in section 1.3 of this chapter is posted
334	334	14 on the commission's website to remove products intended for sale
335	335	15 in Indiana from its inventory that are not listed in the directory.
336	336	16 (d) After the sixty (60) day period following the date that the
337	337	17 commission first posts the directory on the commission's website,
338	338	18 a manufacturer's vapor product or e-liquid not included in the
339	339	19 directory is contraband. The commission may seize and destroy the
340	340	20 contraband, as provided in section 1.7 of this chapter, and issue a
341	341	21 civil penalty, as provided in section 1.7 of this chapter. The
342	342	22 contraband may not be purchased or sold in Indiana.
343	343	23 SECTION 10. IC 7.1-7-5-1.6 IS ADDED TO THE INDIANA
344	344	24 CODE AS A NEW SECTION TO READ AS FOLLOWS
345	345	25 [EFFECTIVE JULY 1, 2025]: Sec. 1.6. (a) The commission shall
346	346	26 provide a manufacturer with notice and an opportunity to cure
347	347	27 deficiencies before removing a manufacturer or its products from
348	348	28 the directory described in section 1.3 of this chapter.
349	349	29 (b) The commission may not remove the manufacturer or its
350	350	30 product from the directory until at least thirty (30) days after the
351	351	31 date that the manufacturer has been given notice of an intended
352	352	32 action. Notice shall be sufficient and be considered immediately
353	353	33 received by a manufacturer if the notice is sent either electronically
354	354	34 or by facsimile to an electronic mail address or facsimile number,
355	355	35 provided by the manufacturer in its most recent certification form.
356	356	36 (c) The manufacturer has fifteen (15) business days from the
357	357	37 date of service of the notice of the commission's intended action
358	358	38 under subsection (b) to establish that the manufacturer or its
359	359	39 products should be included in the directory. Information that the
360	360	40 manufacturer provides to the commission to establish that the
361	361	41 manufacturer or its products should be included in the directory
362	362	42 is confidential, and the commission may not disclose it to another
363	363	2025 IN 1650—LS 7732/DI 107 9
364	364	1 person.
365	365	2 (d) Retailers, distributors, and wholesalers have thirty (30) days
366	366	3 following the removal of a manufacturer or its products from the
367	367	4 directory to sell or to remove from inventory such products that
368	368	5 were in the retailer's, distributor's, or wholesaler's inventory as of
369	369	6 the date of removal.
370	370	7 (e) After the thirty (30) day period following removal from the
371	371	8 directory, the manufacturer's vapor products and e-liquid
372	372	9 identified in the notice of removal are contraband and are subject
373	373	10 to the civil penalty provisions set forth in section 1.7 of this
374	374	11 chapter, and the seizure, forfeiture, and destruction as provided
375	375	12 section 1.7(3) of this chapter, and may not be purchased or sold in
376	376	13 Indiana.
377	377	14 SECTION 11. IC 7.1-7-5-1.7 IS ADDED TO THE INDIANA
378	378	15 CODE AS A NEW SECTION TO READ AS FOLLOWS
379	379	16 [EFFECTIVE JULY 1, 2025]: Sec. 1.7. (a) The following penalties
380	380	17 and provisions apply to a violation of this chapter:
381	381	18 (1) A distributor, wholesaler, or retailer that sells or offers for
382	382	19 sale a vapor product or e-liquid in Indiana that is not included
383	383	20 in the directory described in section 1.3 of this chapter is
384	384	21 subject to a civil penalty of one thousand dollars ($1,000) per
385	385	22 day for each product offered for sale in violation of this
386	386	23 chapter until the product is removed from the market or until
387	387	24 the product is properly listed on the directory.
388	388	25 (2) A manufacturer whose vapor products and e-liquid are
389	389	26 not listed in the directory and are sold in Indiana to a
390	390	27 consumer, whether directly or through a distributor,
391	391	28 wholesaler, retailer, or similar intermediary, is subject to a
392	392	29 civil penalty of five hundred dollars ($500) per day for each
393	393	30 product offered for sale in violation of this chapter until the
394	394	31 product is removed from the market or until the product is
395	395	32 properly listed on the directory.
396	396	33 (3) Any vapor product or e-liquid offered for retail sale or
397	397	34 sold at retail or to a consumer in violation of this chapter are
398	398	35 declared to be contraband and may be seized by the
399	399	36 commission or a law enforcement agency in coordination with
400	400	37 the commission, without a warrant. The cost of a seizure,
401	401	38 forfeiture, and destruction shall be borne by the person from
402	402	39 whom the product is confiscated.
403	403	40 (4) In an action brought under this section, the commission
404	404	41 may recover reasonable expenses incurred in investigating
405	405	42 and preparing a case, including attorney's fees.
406	406	2025 IN 1650—LS 7732/DI 107 10
407	407	1 (b) A violation of section 1.5 of this chapter is an unfair, abusive,
408	408	2 or deceptive act under IC 24-5-0.5-3.
409	409	3 SECTION 12. IC 7.1-7-5-3 IS ADDED TO THE INDIANA CODE
410	410	4 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
411	411	5 1, 2025]: Sec. 3. After the commission approves the transfer of a
412	412	6 retail or wholesale permit pursuant to IC 7.1-7-4-4, the new retail
413	413	7 permittee has thirty (30) days and the new wholesale permittee has
414	414	8 sixty (60) days from the date of transfer to evaluate the acquired
415	415	9 inventory of vapor products and e-liquid to ensure compliance with
416	416	10 section 1.1(o) of this chapter and remove any vapor products and
417	417	11 e-liquid not included in the directory from inventory. After the
418	418	12 thirty (30) or sixty (60) day period, as applicable, the new
419	419	13 permittee shall be liable for a violation of section 1.1(o) of this
420	420	14 chapter.
421	421	15 SECTION 13. IC 7.1-7-5-5 IS ADDED TO THE INDIANA CODE
422	422	16 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
423	423	17 1, 2025]: Sec. 5. (a) A nonresident or foreign manufacturer that has
424	424	18 not registered to do business in Indiana as a foreign corporation or
425	425	19 business entity shall, as a condition of having its vapor products or
426	426	20 e-liquid that contains nicotine listed in the directory described in
427	427	21 section 1.3 of this chapter, appoint and continually engage without
428	428	22 interruption the services of an agent in the United States. The agent
429	429	23 shall serve as the agent for the service of process. All process, and
430	430	24 any action or proceeding against it concerning or arising out of the
431	431	25 enforcement of this chapter, may be served in any manner
432	432	26 authorized by law. Service under this section constitutes legal and
433	433	27 valid service of process on the manufacturer.
434	434	28 (b) A manufacturer shall provide the name, address, telephone
435	435	29 number, and proof of the appointment and availability of the agent
436	436	30 to the commission.
437	437	31 (c) A manufacturer shall provide notice to the commission, in a
438	438	32 manner prescribed by the commission, not later than thirty (30)
439	439	33 days before termination of the authority of an agent.
440	440	34 (d) A manufacturer shall provide proof to the commission, in a
441	441	35 manner prescribed by the commission, of the appointment of a new
442	442	36 agent not less than five (5) calendar days before the termination of
443	443	37 an existing agent appointment. In the event an agent terminates an
444	444	38 appointment, the manufacturer shall notify the commission, in a
445	445	39 manner prescribed by the commission, of the termination within
446	446	40 five (5) calendar days and shall include proof to the commission, in
447	447	41 a manner prescribed by the commission, of the appointment of a
448	448	42 new agent.
449	449	2025 IN 1650—LS 7732/DI 107 11
450	450	1 (e) A manufacturer whose vapor products or e-liquid that
451	451	2 contains nicotine are sold in Indiana and who has not appointed
452	452	3 and engaged an agent, as required by this section is considered to
453	453	4 have appointed the secretary of state as the agent. An action may
454	454	5 be proceeded against the manufacturer in a circuit or superior
455	455	6 court by service of process upon the secretary of state. However,
456	456	7 the appointment of the secretary of state as the agent shall not
457	457	8 satisfy the condition of having the vapor products or e-liquid that
458	458	9 contains nicotine of the manufacturer included or retained in the
459	459	10 directory described in section 1.3 of this chapter.
460	460	11 SECTION 14. IC 7.1-7-5-6 IS ADDED TO THE INDIANA CODE
461	461	12 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
462	462	13 1, 2025]: Sec. 6. (a) A nonresident or foreign manufacturer that has
463	463	14 not registered to do business in the state as a foreign corporation
464	464	15 or business entity shall, as a condition precedent to having its name
465	465	16 or its vapor product or e-liquid listed and retained in the directory
466	466	17 described in section 1.3 of this chapter, submit to the commission
467	467	18 a surety bond or other cash security payable to the state of Indiana
468	468	19 in the amount of twenty-five thousand dollars ($25,000). The bond
469	469	20 shall be posted by a corporate surety located within the United
470	470	21 States.
471	471	22 (b) The bond described in subsection (a) shall be conditioned on
472	472	23 the performance by the manufacturer of all requirements and
473	473	24 obligations imposed by this section.
474	474	25 (c) A surety on a manufacturer's bond shall be liable up to the
475	475	26 amount of the bond.
476	476	27 (d) The commission may execute on the surety bond for:
477	477	28 (1) the payment of fines and penalties imposed on the
478	478	29 manufacturer under this section; and
479	479	30 (2) the costs of seizure and destruction of products sold in
480	480	31 violation of this section.
481	481	32 (e) If the commission executes on the surety bond, it may
482	482	33 require the manufacturer to provide an additional bond as a
483	483	34 condition precedent for retaining the manufacturer or its products
484	484	35 in the directory.
485	485	36 (f) A surety on a bond furnished by a manufacturer as provided
486	486	37 in this section shall be released and discharged from liability to the
487	487	38 state accruing on the bond after expiration of sixty (60) days from
488	488	39 the date upon which the surety shall have lodged with the
489	489	40 commission a written request to be released and discharged. This
490	490	41 subsection does not operate to relieve, release, or discharge the
491	491	42 surety from liability already accrued or that will accrue before the
492	492	2025 IN 1650—LS 7732/DI 107 12
493	493	1 expiration of the sixty (60) day period.
494	494	2 (g) The commission shall, upon receiving any request under
495	495	3 subsection (f), notify the manufacturer that furnished the bond.
496	496	4 Unless the manufacturer, on or before the expiration of the sixty
497	497	5 (60) day period, set forth in subsection (f), files with the
498	498	6 commission a new bond, with the surety approved by and
499	499	7 acceptable to the commission, the commission shall remove the
500	500	8 manufacturer and its vapor product and e-liquid from the
501	501	9 directory described in section 1.3 of this chapter.
502	502	10 SECTION 15. IC 7.1-7-5-7 IS ADDED TO THE INDIANA CODE
503	503	11 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
504	504	12 1, 2025]: Sec. 7. (a) The commission may enforce compliance with
505	505	13 section 1.5 of this chapter and may adopt rules under IC 4-22-2
506	506	14 that are necessary to administer and enforce the requirements of
507	507	15 this chapter.
508	508	16 (b) The commission shall conduct compliance checks of
509	509	17 retailers, distributors, and wholesalers, as appropriate, to enforce
510	510	18 the requirements of section 1.5 of this chapter.
511	511	19 (c) To enforce the provisions of this chapter, the commission
512	512	20 may examine the books, papers, invoices, and other records of any
513	513	21 individual in possession, control, or occupancy of any premises
514	514	22 where vapor product or e-liquid are placed, stored, sold, or offered
515	515	23 for sale, including the stock of vapor product and e-liquid on the
516	516	24 premises. Every individual in the possession, control, or occupancy
517	517	25 of any premises where vapor product or e-liquid are placed, sold,
518	518	26 or offered for sale shall give the commission the means, facilities
519	519	27 and opportunity for the examinations authorized by this section.
520	520	28 (d) All fees and penalties collected in accordance with section 1.7
521	521	29 of this chapter must be used by the commission for the
522	522	30 administration and enforcement of section 1.5 of this chapter.
523	523	31 SECTION 16. IC 7.1-7-5-8 IS ADDED TO THE INDIANA CODE
524	524	32 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
525	525	33 1, 2025]: Sec. 8. Not later than November 1, 2026, and each
526	526	34 following November 1, the commission shall submit a report to the
527	527	35 general assembly in an electronic format under IC 5-14-6. The
528	528	36 report must include the following:
529	529	37 (1) The status of the directory and the manufacturers and
530	530	38 products included in the directory created pursuant to section
531	531	39 1.5 of this chapter.
532	532	40 (2) Enforcement activities undertaken under section 1.5 of this
533	533	41 chapter.
534	534	42 (3) Any information the commission determines to be useful
535	535	2025 IN 1650—LS 7732/DI 107 13
536	536	1 to the general assembly relating to the administration of
537	537	2 section 1.5 of this chapter.
538	538	3 SECTION 17. IC 7.1-7-5-9 IS ADDED TO THE INDIANA CODE
539	539	4 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
540	540	5 1, 2025]: Sec. 9. The sums realized from the collection of fees and
541	541	6 civil penalties imposed under this chapter are appropriated to the
542	542	7 enforcement and administration fund of the commission.
543	543	8 SECTION 18. IC 24-5-0.5-3, AS AMENDED BY P.L.104-2024,
544	544	9 SECTION 42, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
545	545	10 JULY 1, 2025]: Sec. 3. (a) A supplier may not commit an unfair,
546	546	11 abusive, or deceptive act, omission, or practice in connection with a
547	547	12 consumer transaction. Such an act, omission, or practice by a supplier
548	548	13 is a violation of this chapter whether it occurs before, during, or after
549	549	14 the transaction. An act, omission, or practice prohibited by this section
550	550	15 includes both implicit and explicit misrepresentations.
551	551	16 (b) Without limiting the scope of subsection (a), the following acts,
552	552	17 and the following representations as to the subject matter of a
553	553	18 consumer transaction, made orally, in writing, or by electronic
554	554	19 communication, by a supplier, are deceptive acts:
555	555	20 (1) That such subject of a consumer transaction has sponsorship,
556	556	21 approval, performance, characteristics, accessories, uses, or
557	557	22 benefits it does not have which the supplier knows or should
558	558	23 reasonably know it does not have.
559	559	24 (2) That such subject of a consumer transaction is of a particular
560	560	25 standard, quality, grade, style, or model, if it is not and if the
561	561	26 supplier knows or should reasonably know that it is not.
562	562	27 (3) That such subject of a consumer transaction is new or unused,
563	563	28 if it is not and if the supplier knows or should reasonably know
564	564	29 that it is not.
565	565	30 (4) That such subject of a consumer transaction will be supplied
566	566	31 to the public in greater quantity than the supplier intends or
567	567	32 reasonably expects.
568	568	33 (5) That replacement or repair constituting the subject of a
569	569	34 consumer transaction is needed, if it is not and if the supplier
570	570	35 knows or should reasonably know that it is not.
571	571	36 (6) That a specific price advantage exists as to such subject of a
572	572	37 consumer transaction, if it does not and if the supplier knows or
573	573	38 should reasonably know that it does not.
574	574	39 (7) That the supplier has a sponsorship, approval, or affiliation in
575	575	40 such consumer transaction the supplier does not have, and which
576	576	41 the supplier knows or should reasonably know that the supplier
577	577	42 does not have.
578	578	2025 IN 1650—LS 7732/DI 107 14
579	579	1 (8) That such consumer transaction involves or does not involve
580	580	2 a warranty, a disclaimer of warranties, or other rights, remedies,
581	581	3 or obligations, if the representation is false and if the supplier
582	582	4 knows or should reasonably know that the representation is false.
583	583	5 (9) That the consumer will receive a rebate, discount, or other
584	584	6 benefit as an inducement for entering into a sale or lease in return
585	585	7 for giving the supplier the names of prospective consumers or
586	586	8 otherwise helping the supplier to enter into other consumer
587	587	9 transactions, if earning the benefit, rebate, or discount is
588	588	10 contingent upon the occurrence of an event subsequent to the time
589	589	11 the consumer agrees to the purchase or lease.
590	590	12 (10) That the supplier is able to deliver or complete the subject of
591	591	13 the consumer transaction within a stated period of time, when the
592	592	14 supplier knows or should reasonably know the supplier could not.
593	593	15 If no time period has been stated by the supplier, there is a
594	594	16 presumption that the supplier has represented that the supplier
595	595	17 will deliver or complete the subject of the consumer transaction
596	596	18 within a reasonable time, according to the course of dealing or the
597	597	19 usage of the trade.
598	598	20 (11) That the consumer will be able to purchase the subject of the
599	599	21 consumer transaction as advertised by the supplier, if the supplier
600	600	22 does not intend to sell it.
601	601	23 (12) That the replacement or repair constituting the subject of a
602	602	24 consumer transaction can be made by the supplier for the estimate
603	603	25 the supplier gives a customer for the replacement or repair, if the
604	604	26 specified work is completed and:
605	605	27 (A) the cost exceeds the estimate by an amount equal to or
606	606	28 greater than ten percent (10%) of the estimate;
607	607	29 (B) the supplier did not obtain written permission from the
608	608	30 customer to authorize the supplier to complete the work even
609	609	31 if the cost would exceed the amounts specified in clause (A);
610	610	32 (C) the total cost for services and parts for a single transaction
611	611	33 is more than seven hundred fifty dollars ($750); and
612	612	34 (D) the supplier knew or reasonably should have known that
613	613	35 the cost would exceed the estimate in the amounts specified in
614	614	36 clause (A).
615	615	37 (13) That the replacement or repair constituting the subject of a
616	616	38 consumer transaction is needed, and that the supplier disposes of
617	617	39 the part repaired or replaced earlier than seventy-two (72) hours
618	618	40 after both:
619	619	41 (A) the customer has been notified that the work has been
620	620	42 completed; and
621	621	2025 IN 1650—LS 7732/DI 107 15
622	622	1 (B) the part repaired or replaced has been made available for
623	623	2 examination upon the request of the customer.
624	624	3 (14) Engaging in the replacement or repair of the subject of a
625	625	4 consumer transaction if the consumer has not authorized the
626	626	5 replacement or repair, and if the supplier knows or should
627	627	6 reasonably know that it is not authorized.
628	628	7 (15) The act of misrepresenting the geographic location of the
629	629	8 supplier by listing an alternate business name or an assumed
630	630	9 business name (as described in IC 23-0.5-3-4) in a local telephone
631	631	10 directory if:
632	632	11 (A) the name misrepresents the supplier's geographic location;
633	633	12 (B) the listing fails to identify the locality and state of the
634	634	13 supplier's business;
635	635	14 (C) calls to the local telephone number are routinely forwarded
636	636	15 or otherwise transferred to a supplier's business location that
637	637	16 is outside the calling area covered by the local telephone
638	638	17 directory; and
639	639	18 (D) the supplier's business location is located in a county that
640	640	19 is not contiguous to a county in the calling area covered by the
641	641	20 local telephone directory.
642	642	21 (16) The act of listing an alternate business name or assumed
643	643	22 business name (as described in IC 23-0.5-3-4) in a directory
644	644	23 assistance data base if:
645	645	24 (A) the name misrepresents the supplier's geographic location;
646	646	25 (B) calls to the local telephone number are routinely forwarded
647	647	26 or otherwise transferred to a supplier's business location that
648	648	27 is outside the local calling area; and
649	649	28 (C) the supplier's business location is located in a county that
650	650	29 is not contiguous to a county in the local calling area.
651	651	30 (17) The violation by a supplier of IC 24-3-4 concerning
652	652	31 cigarettes for import or export.
653	653	32 (18) The act of a supplier in knowingly selling or reselling a
654	654	33 product to a consumer if the product has been recalled, whether
655	655	34 by the order of a court or a regulatory body, or voluntarily by the
656	656	35 manufacturer, distributor, or retailer, unless the product has been
657	657	36 repaired or modified to correct the defect that was the subject of
658	658	37 the recall.
659	659	38 (19) The violation by a supplier of 47 U.S.C. 227, including any
660	660	39 rules or regulations issued under 47 U.S.C. 227.
661	661	40 (20) The violation by a supplier of the federal Fair Debt
662	662	41 Collection Practices Act (15 U.S.C. 1692 et seq.), including any
663	663	42 rules or regulations issued under the federal Fair Debt Collection
664	664	2025 IN 1650—LS 7732/DI 107 16
665	665	1 Practices Act (15 U.S.C. 1692 et seq.).
666	666	2 (21) A violation of IC 24-5-7 (concerning health spa services), as
667	667	3 set forth in IC 24-5-7-17.
668	668	4 (22) A violation of IC 24-5-8 (concerning business opportunity
669	669	5 transactions), as set forth in IC 24-5-8-20.
670	670	6 (23) A violation of IC 24-5-10 (concerning home consumer
671	671	7 transactions), as set forth in IC 24-5-10-18.
672	672	8 (24) A violation of IC 24-5-11 (concerning real property
673	673	9 improvement contracts), as set forth in IC 24-5-11-14.
674	674	10 (25) A violation of IC 24-5-12 (concerning telephone
675	675	11 solicitations), as set forth in IC 24-5-12-23.
676	676	12 (26) A violation of IC 24-5-13.5 (concerning buyback motor
677	677	13 vehicles), as set forth in IC 24-5-13.5-14.
678	678	14 (27) A violation of IC 24-5-14 (concerning automatic
679	679	15 dialing-announcing devices), as set forth in IC 24-5-14-13.
680	680	16 (28) A violation of IC 24-5-15 (concerning credit services
681	681	17 organizations), as set forth in IC 24-5-15-11.
682	682	18 (29) A violation of IC 24-5-16 (concerning unlawful motor
683	683	19 vehicle subleasing), as set forth in IC 24-5-16-18.
684	684	20 (30) A violation of IC 24-5-17 (concerning environmental
685	685	21 marketing claims), as set forth in IC 24-5-17-14.
686	686	22 (31) A violation of IC 24-5-19 (concerning deceptive commercial
687	687	23 solicitation), as set forth in IC 24-5-19-11.
688	688	24 (32) A violation of IC 24-5-21 (concerning prescription drug
689	689	25 discount cards), as set forth in IC 24-5-21-7.
690	690	26 (33) A violation of IC 24-5-23.5-7 (concerning real estate
691	691	27 appraisals), as set forth in IC 24-5-23.5-9.
692	692	28 (34) A violation of IC 24-5-26 (concerning identity theft), as set
693	693	29 forth in IC 24-5-26-3.
694	694	30 (35) A violation of IC 24-5.5 (concerning mortgage rescue fraud),
695	695	31 as set forth in IC 24-5.5-6-1.
696	696	32 (36) A violation of IC 24-8 (concerning promotional gifts and
697	697	33 contests), as set forth in IC 24-8-6-3.
698	698	34 (37) A violation of IC 21-18.5-6 (concerning representations
699	699	35 made by a postsecondary credit bearing proprietary educational
700	700	36 institution), as set forth in IC 21-18.5-6-22.5.
701	701	37 (38) A violation of IC 24-5-15.5 (concerning collection actions of
702	702	38 a plaintiff debt buyer), as set forth in IC 24-5-15.5-6.
703	703	39 (39) A violation of IC 24-14 (concerning towing services), as set
704	704	40 forth in IC 24-14-10-1.
705	705	41 (40) A violation of IC 24-5-14.5 (concerning misleading or
706	706	42 inaccurate caller identification information), as set forth in
707	707	2025 IN 1650—LS 7732/DI 107 17
708	708	1 IC 24-5-14.5-12.
709	709	2 (41) A violation of IC 24-5-27 (concerning intrastate inmate
710	710	3 calling services), as set forth in IC 24-5-27-27.
711	711	4 (42) A violation of IC 15-21 (concerning sales of dogs by retail
712	712	5 pet stores), as set forth in IC 15-21-7-4.
713	713	6 (43) A violation of IC 24-4-23 (concerning the security of
714	714	7 information collected and transmitted by an adult oriented website
715	715	8 operator), as set forth in IC 24-4-23-14.
716	716	9 (44) A violation of IC 7.1-7-5-1.5 (concerning vapor products
717	717	10 and e-liquids) as set forth in IC 7.1-7-5-1.7.
718	718	11 (c) Any representations on or within a product or its packaging or
719	719	12 in advertising or promotional materials which would constitute a
720	720	13 deceptive act shall be the deceptive act both of the supplier who places
721	721	14 such representation thereon or therein, or who authored such materials,
722	722	15 and such other suppliers who shall state orally or in writing that such
723	723	16 representation is true if such other supplier shall know or have reason
724	724	17 to know that such representation was false.
725	725	18 (d) If a supplier shows by a preponderance of the evidence that an
726	726	19 act resulted from a bona fide error notwithstanding the maintenance of
727	727	20 procedures reasonably adopted to avoid the error, such act shall not be
728	728	21 deceptive within the meaning of this chapter.
729	729	22 (e) It shall be a defense to any action brought under this chapter that
730	730	23 the representation constituting an alleged deceptive act was one made
731	731	24 in good faith by the supplier without knowledge of its falsity and in
732	732	25 reliance upon the oral or written representations of the manufacturer,
733	733	26 the person from whom the supplier acquired the product, any testing
734	734	27 organization, or any other person provided that the source thereof is
735	735	28 disclosed to the consumer.
736	736	29 (f) For purposes of subsection (b)(12), a supplier that provides
737	737	30 estimates before performing repair or replacement work for a customer
738	738	31 shall give the customer a written estimate itemizing as closely as
739	739	32 possible the price for labor and parts necessary for the specific job
740	740	33 before commencing the work.
741	741	34 (g) For purposes of subsection (b)(15) and (b)(16), a telephone
742	742	35 company or other provider of a telephone directory or directory
743	743	36 assistance service or its officer or agent is immune from liability for
744	744	37 publishing the listing of an alternate business name or assumed
745	745	38 business name of a supplier in its directory or directory assistance data
746	746	39 base unless the telephone company or other provider of a telephone
747	747	40 directory or directory assistance service is the same person as the
748	748	41 supplier who has committed the deceptive act.
749	749	42 (h) For purposes of subsection (b)(18), it is an affirmative defense
750	750	2025 IN 1650—LS 7732/DI 107 18
751	751	1 to any action brought under this chapter that the product has been
752	752	2 altered by a person other than the defendant to render the product
753	753	3 completely incapable of serving its original purpose.
754	754	2025 IN 1650—LS 7732/DI 107