HOUSE BILL 1008
By Raper
SENATE BILL 926
By Gardenhire
SB0926
002755
- 1 -
AN ACT to amend Tennessee Code Annotated, Title 39,
Chapter 17, Part 15 and Title 62, relative to the
sale of vapor products.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 39-17-1510, is amended by
designating the existing language as subsection (a) and adding the following as a new
subsection (b):
Notwithstanding subsection (a), a person who sells or distributes a vapor product
to an individual under twenty-one (21) years of age in violation of § 39-17-1504(a) or §
39-17-1507(b) commits a Class A misdemeanor.
SECTION 2. Tennessee Code Annotated, Title 62, Chapter 76, Part 1, is amended by
adding the following as a new section:
(a) As used in this section:
(1) "Accessory" means any product that is intended or reasonably
expected to be used for the human consumption of a vapor product;
(2) "Age-restricted vapor product business" means any business that:
(A) Requires persons to be twenty-one (21) years of age or older
to enter the premises of the business;
(B) Determines the age of the customer through authentication
and verification of the purchaser's photo identification; and
(C) Derives no less than seventy-five percent (75%) of its gross
sales from the sale of vapor products and accessories;
- 2 - 002755
(3) "Commissioner" means the commissioner of commerce and
insurance;
(4) "Department" means the department of commerce and insurance;
(5) "Retailer" means a person who sells vapor products to a consumer for
any purpose other than resale; and
(6) "Vapor product" means a noncombustible product that employs a
heating element, battery, power source, electronic circuit, or other electronic,
chemical, or mechanical means, regardless of shape or size and including the
component parts and accessories thereto, that can be used to deliver vaporized
nicotine or other substances to users inhaling from the device. "Vapor product"
includes, but is not limited to, any device deemed to be an electronic nicotine
delivery system by the United States food and drug administration, any electronic
cigarette, electronic cigar, electronic cigarillo, electronic pipe, or similar product
or device and every variation thereof, regardless of whether marketed as such,
and any vapor cartridge or other container of a liquid solution or other material
that is intended to be used with or in an electronic cigarette, electronic cigar,
electronic cigarillo, electronic pipe, or other similar product or device.
(b)
(1) Notwithstanding another law to the contrary and except as provided in
subdivision (b)(2), beginning December 1, 2025, no person, firm, or corporation
shall:
(A) Operate as a retailer selling vapor products in this state
without first obtaining a vapor product business license issued by the
department; or
- 3 - 002755
(B) Sell, at retail, a vapor product to a customer except through a
face-to-face sales transaction at a licensed, age-restricted vapor product
business.
(2) Persons engaged in display, exhibition, or sale of vapor products,
including flavored vapor products, at trade shows or exhibitions are not required
to obtain a vapor products business license; provided, that:
(A) Access to the portion of the trade show's venue where vapor
products are displayed, offered for sale, or sold is restricted to persons
who are twenty-one (21) years of age or older;
(B) Each attendee of the trade show, as a condition of admission
to the venue, presents a photo identification to verify age; and
(C) Manufacturers, distributors, or retailers whose vapor products
are displayed, offered for sale, or sold at the venue shall conduct a
secondary age authentication and verification prior to commencing the
retail sale transaction for any vapor product.
(c)
(1) Each application for a vapor products business license must be made
in a form prescribed by the department, along with the license fee, and any
supporting documentation required by the department. The license may be
renewed annually. The vapor products business license must be posted in a
conspicuous place on the premises of the business where vapor products are
sold.
(2) The license shall remain in full force and effect from the date of
issuance until the next occurring January 1 unless it is surrendered by the
licensee, suspended, or revoked.
- 4 - 002755
(3) The fee for each license is two hundred fifty dollars ($250) per year
for each licensed premises, and the fee is payable to the department.
(4) The license is not transferable from one (1) person to another or from
one (1) location to another location. A new license is required whenever a
retailer has a change in ownership.
(d)
(1) The commissioner shall approve or deny every application for a
license within sixty (60) days from the receipt of a completed application.
(2) If the application is denied, the:
(A) License is not issued;
(B) License fee is returned to the applicant;
(C) Applicant must be notified of the commissioner's denial, which
must include the reason for the denial; and
(D) Applicant may appeal the denial and request an
administrative hearing on the matter in accordance with the Uniform
Administrative Procedures Act, compiled in title 4, chapter 5.
(3) If the commissioner permanently revokes a license pursuant to
subsection (e), the commissioner shall:
(A) Notify the applicant within ten (10) days of the decision to
revoke the license;
(B) Commence a hearing on the license revocation in
accordance with the Uniform Administrative Procedures Act, compiled in
title 4, chapter 5; and
- 5 - 002755
(C) Issue a final order explaining the decision and facts
supporting the license revocation. A final order of the commissioner is
appealable to the chancery court in the jurisdiction of the licensee.
(4) The department shall promulgate rules in accordance with the
Uniform Administrative Procedures Act, compiled in title 4, chapter 5, to
implement this section, including establishing a procedure for administering
citations, issuing orders, and filing appeals under this section.
(e)
(1) The department shall:
(A) Investigate the information provided in each vapor product
business licensure application; and
(B) If the license is approved, conduct random inspections or
compliance checks of the licensee not less than once annually during
normal business hours or as deemed appropriate by the commissioner.
(2) Any violation found during a compliance check shall be rechecked by
the department's enforcement division:
(A) Not earlier than one (1) month nor later than three (3) months
after a notice of violation is issued to the licensee; or
(B) As soon as the commissioner deems practicable.
(3) Notwithstanding another law to the contrary and in addition to any
other fines or penalties that may apply, a retailer who violates subdivision (b)(1)
is subject to a civil penalty of:
(A) Five thousand dollars ($5,000) for the first violation;
(B) Ten thousand dollars ($10,000) for the second violation within
three (3) years;
- 6 - 002755
(C) Twenty-five thousand dollars ($25,000) and a fifteen-day
suspension of the vapor license for a third or subsequent violation within
three (3) years; and
(D) Revocation of the license shall occur upon the fourth violation
within three (3) years.
SECTION 3. For purposes of promulgating rules, this act takes effect upon becoming a
law, the public welfare requiring it. For all other purposes, this act takes effect July 1, 2025, the
public welfare requiring it.