WeVote
Log In

Bill

Bill

SB 2293

Tobacco, Tobacco Products - As introduced, expands the definition of "consumable material" to include natural and synthetic liquid nicotine solutions and liquid nicotine analogues for purposes of the taxation of vapor products containing such material; requires the alcoholic beverage commission to issue the fines for the offense of selling or offering for sale a vapor product for retail sale in this state to anyone under 21 years of age. - Amends TCA Title 39, Chapter 17; Title 43; Title 57 and Title 67, Chapter 4, Part 10.

114th Regular Session (2025-2026) Introduced by Ken Yager

Tennessee shifts regulation of vapor products to the Alcoholic Beverage Commission, imposes a per-milliliter tax on consumable nicotine material for closed-system products, and str

Enrolled and ready for signatures
#tobacco #tobaccoproducts
0
WeVote Research Nonpartisan
Bill Summary · SB 2293

Summary of SB 2293 (Session 114) – Tennessee Tobacco/Vapor Products

Purpose and Intent

SB 2293, as introduced and amended, expands and modernizes Tennessee’s framework for regulating vapor products and consumable nicotine materials. The core changes redefine key terms and shift enforcement and tax administration responsibilities to the Alcoholic Beverage Commission (ABC) while clarifying the inclusion of liquid nicotine solutions and nicotine analogues under the vapor products regime. The bill aims to strengthen youth access restrictions, broaden regulatory coverage to new forms of nicotine, and adjust the tax collection and enforcement structure.

Key Provisions and Changes

  • Definition of consumable material (Section 1):

    • Expands “consumable material” to include:
    • Any liquid nicotine solution (natural or synthetic)
    • Any liquid nicotine analogue intended for use in a vapor product

  • Definition of vapor product (Section 2):

    • Updates the definition to cover noncombustible products with a mechanism to produce vapor, including electronic devices and cartridges.
    • Excludes products regulated under FDA’s Chapter V (as currently defined).

  • Enforcement and fines (Section 3):

    • Replaces the Department of Revenue (DOR) as the entity issuing fines under the Prevention of Youth Access to Tobacco, Smoking Hemp, and Vapor Products Act with the Alcoholic Beverage Commission (ABC).
    • Defines concurrent enforcement authority for local law enforcement along with ABC and DOR.

  • Tax structure (as amended in Fiscal Notes):

    • Repeals the prior 10% wholesale tax on open- and closed-system vapor products (depending on subtype) in favor of a per-milliliter tax on consumable material:
    • Proposed rate: $0.10 per milliliter of consumable material (for closed-system products)
    • The 10% wholesale tax on open-system products remains (per the fiscal notes, but the amended text focuses on closed-system products).
    • The 87.5% General Fund and 12.5% ABC distribution of the vapor products tax is retained.

  • Certification and reporting (Fiscal Notes):

    • Requires product certification/registration by the Department of Revenue (DOR) for each vapor product, with FDA-related documentation acceptable for certification.
    • ABC would oversee compliance checks, investigations, and enforcement related to youth access, similar to DOR’s role under current law.

  • Regulatory staffing (Amended provisions):

    • ABC to hire additional staff (e.g., Associate Counsel and Legal Assistant) to enforce advertising/sale restrictions to those under 21.
    • One-time and ongoing expenditures allocated to ABC for enforcement activities.

  • Local jurisdiction:

    • Local law enforcement agencies would share concurrent jurisdiction to enforce the Act, in coordination with ABC and DOR.

Who Would be Affected

  • Vapor product manufacturers, retailers, distributors, and wholesalers: Subject to new consumable-material definitions, registration requirements, and the per-milliliter tax on consumable material for closed-system products.
  • Consumers under 21: Enhanced enforcement and penalties for sales to minors.
  • ABC: Expanded role in enforcement, fines, and staffing to regulate youth-related provisions and advertising limitations.
  • DOR: Retains some role in certification but would have reduced direct enforcement authority for fines under the Act (overall shift to ABC).

Procedural and Timeline Highlights

  • Effective date: Upon becoming law (no specific delayed timing stated; immediate effect contingent on enactment).
  • Concurrent enforcement: Local law enforcement may arrest and enforce violations alongside ABC and DOR.
  • Fiscal impact:
    • Notable net revenue changes from shifting to a per-milliliter tax; estimated increases to state General Fund and ABC in ongoing years (varies by year).
    • Additional ABC staffing costs projected; overall impact considered not-significant to state budgets in amended analysis, with two new positions and associated costs.

Bottom Line

SB 2293 modernizes Tennessee’s vapor products regime by defining consumable material to include liquid nicotine solutions and analogues, shifting fines enforcement to the ABC, imposing a per-milliliter tax on consumable material for certain vapor products, and expanding concurrent enforcement while preserving youth-access protections. The bill also clarifies regulatory certification processes and expands local enforcement capabilities.

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

Sign in to ask a question.