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HB 1626

Motor vehicles; defining terms; authorizing certain use of automatic license plate reader systems; effective date.

2025 Regular Session Introduced by John George

Arkansas would ban retail sale of disposable vapor products from prohibited foreign parties, with a 90-day window to liquidate existing stock.

Second Reading referred to Rules
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Bill Summary · HB 1626

Summary — HB 1626 (Arkansas, 95th General Assembly, 2025 session)

Note: Although an initial header referenced a different bill title, the documents provided describe HB 1626 as an Arkansas measure to prohibit the retail sale of certain disposable vapor products. This summary reflects the Arkansas bill text, amendments, and DFA fiscal analyses in the provided materials.

Purpose / Intent

HB 1626 would prohibit the retail sale in Arkansas of disposable vapor products that originate from a “prohibited foreign party.” The stated intent (after amendment H2) is to narrow an earlier, broader ban on all disposable vapor products so it targets only products associated with specified foreign parties/entities.

Key provisions

  • Prohibition (new § 26-57-269): It would be unlawful to sell or offer for retail sale in Arkansas a “disposable vapor product from a prohibited foreign party.”
  • Definitions added to the Tobacco Products Tax Act (§ 26-57-203):
    • “Disposable vapor product” = device with a non‑detachable battery, not refillable with e‑liquid, and designed to be disposed of after the e‑liquid is used.
    • “Prohibited foreign party” = defined by reference to § 18-11-802 (includes certain citizens/residents, entities, or governments of countries subject to International Traffic in Arms Regulations; Entities of Particular Concern designated by U.S. State Dept.; agents/trustees of such entities).
  • Enforcement and disposition:
    • Director of Arkansas Tobacco Control (ATC) authorized to seize products sold/offered in violation and to hold for disposition under existing seizure/forfeiture (§§ 26-57-247 and 26-57-249) and destruction processes.
  • Penalty: Violation is a Class A misdemeanor.
  • Exception: Products approved by the U.S. Food and Drug Administration (FDA) are not covered by the prohibition.
  • Transition: Temporary language requires ATC to notify licensed manufacturers/wholesalers/retailers/vendors and allows a 90‑day grace period after the act’s effective date to liquidate, sell, or dispose of covered products in their possession.

Fiscal & administrative impact

  • DFA (Department of Finance & Administration) reports an undetermined reduction in sales and use tax collections due to the prohibition; insufficient data to estimate the amount.
  • ATC enforcement would need substantial effort to identify and remove covered products statewide; inspections could take several months.
  • ATC must undertake education/outreach to permittees and staff on the new requirements.

Who would be affected

  • Retailers, wholesalers, manufacturers, and vendors of disposable vapor products in Arkansas — specifically those carrying products tied to “prohibited foreign parties.”
  • Consumers who purchase disposable vapor products sourced from the identified foreign parties.
  • ATC and DFA (increased enforcement and administrative workload); potential indirect effect on state tax revenue.

Legislative status / timeline

  • Filed: 12/16/2024.
  • Multiple House amendments adopted (H1 on 3/4/25; H2 on 3/19/25 — H2 narrowed scope to “prohibited foreign party” and added definition).
  • Placed on second reading, engrossed, and reported correctly engrossed in March 2025.
  • Final disposition: Died in House Committee at Sine Die adjournment (05/05/2025).

Notes / uncertainties

  • The bill’s fiscal impact on state tax receipts was not quantified by DFA.
  • Much of enforcement burden and cost is described qualitatively; actual compliance costs to industry and government are not estimated in the provided materials.

Compiled from official sources — confirm details with the bill’s official record.

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