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PUBLIC CHAPTER NO. 324
SENATE BILL NO. 763
By Yager, Watson, Haile, Powers
Substituted for: House Bill No. 968
By Hawk, Camper, Lamberth, Sherrell, Glynn, Lynn, Leatherwood, Hardaway, Kumar, Butler,
Renea Jones, Howell, Davis, Mitchell, White, Bricken, Cepicky, Eldridge
AN ACT to amend Tennessee Code Annotated, Title 10, Chapter 7, Part 5; Title 39, Chapter 17, Part
15; Title 47, Chapter 25; Title 67, Chapter 4, Part 10 and Title 67, Chapter 4, Part 26, relative
to regulated consumable products.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 39-17-1504(d), is amended by deleting the
subsection and substituting:
(d) A person engaged in the sale or distribution of tobacco, smoking hemp, vapor
product, or smokeless nicotine product, or an employee thereof, shall not make or permit to be
made any sales of tobacco, smoking hemp, vapor product, or smokeless nicotine product to a
person under twenty-one (21) years of age. Prior to making a sale of tobacco, smoking hemp,
vapor product, or smokeless nicotine product, a consumer whose physical appearance does
not reasonably demonstrate an age of fifty (50) years or older must present to the person or
an employee of the person a valid, government-issued document, such as a driver license or
other form of identification deemed acceptable to the person or employee that includes the
photograph and birth date of the consumer attempting to make a purchase. Consumers exempt
under state law from the requirement of having a photo identification shall present identification
that is acceptable to the person or the person's employee. The person or person's employee
shall make a determination from the information presented whether the consumer is at least
twenty-one (21) years of age. In the case of distribution by mail, the distributor of tobacco,
smoking hemp, vapor product, or smokeless nicotine product shall obtain from the addressee
an affirmative statement that the person is twenty-one (21) years of age or older, and shall
inform the recipient that the person is strictly prohibited from distributing any tobacco, smoking
hemp, vapor product, or smokeless nicotine product, as defined by this part, to any person
under twenty-one (21) years of age.
SECTION 2. Tennessee Code Annotated, Section 67-4-1001(24)(A), is amended by deleting
the language "and snuff'' and substituting instead the language "snuff, and vapor products".
SECTION 3. Tennessee Code Annotated, Section 67-4-1001, is amended by adding the
following as new, appropriately designated subdivisions:
( ) "Closed-system vapor product" means:
(A) A disposable container or cartridge prefilled with consumable material and
sealed by the manufacturer, not easily refillable or intended or designed to be refillable,
and intended or used to dispense consumable material when connected to a device
that is designed to be reused; and
(B) Any single unit vapor product which .is prefilled with consumable material
and sealed by the manufacturer, not intended to be refillable, and intended to be
disposed of once the consumable material has been depleted;
( ) "Consumable material" means any liquid nicotine solution intended for use in a vapor
product;
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( ) "Open-system vapor product" means:
(A) A vapor product that can be filled and refilled with consumable material by
a consumer; and
(B) Any consumable material that is intended to be used with the vapor
product described in subdivision ( )(A);
( ) "Vapor product":
(A) Means a noncombustible product containing consumable material,
whether natural or synthetic, that employs a mechanical heating element, battery,
electronic circuit, or other mechanism, regardless of shape or size, that can be used
to produce or emit a visible or non-visible vapor;
(B) Includes an electronic cigarette, electronic cigar, electronic cigarillo,
electronic pipe, or similar product, and any vapor cartridge containing consumable
material or other container of consumable material that is intended to be used with or
in an electronic cigarette, electronic cigar, electronic cigarillo, electronic pipe, or
similar product; and
(C) Does not include a product regulated under Chapter V of the Food, Drug,
and Cosmetic Act (21 U.S.C. § 351 et seq.);
SECTION 4. Tennessee Code Annotated, Section 67-4-1005, is amended by deleting the
section and substituting instead the following:
(a) The rate on all other tobacco products, including, but not limited to, cigars,
cheroots, stogies, beedies, bidis, manufactured tobacco, and snuff of all descriptions made
of tobacco or any substitute for tobacco, but not on vapor products, is six and six-tenths
percent (6.6%) of the wholesale cost price.
(b) The rate on vapor products is ten percent (10%) of the wholesale cost price.
(c) This section does not apply to smokeless nicotine products.
SECTION 5. Tennessee Code Annotated, Section 67-4-1025(a), is amended by adding the
language", other than vapor products," immediately after the language "All of the taxes on tobacco
products".
SECTION 6. Tennessee Code Annotated, Section 67-4-1025, is amended by adding the
following as a new subsection:
(f) Twelve and one-half percent (12.5%) of the revenue from taxes on vapor products
collected under this part must be deposited with the state treasurer to be earmarked for and
allocated to the alcoholic beverage commission. Any unexpended funds at the end of a fiscal
year revert to the general fund, less any costs for the administration and enforcement of
these taxes.
SECTION 7. Tennessee Code Annotated, Title 67, Chapter 4, Part 10, is amended by adding
the following as a new section:
67-4-1034. Vapor product directory.
(a) For purposes of this section, "timely filed premarket tobacco product application"
means an application pursuant to 21 U.S.C. § 387j for a vapor product containing nicotine
derived from tobacco, marketed in the United States as of August 8, 2016, that was
submitted to the United States food and drug administration on or before September 9, 2020,
and accepted for filing.
(b) By August 1, 2025, and annually thereafter, each manufacturer of a vapor product
that is sold for retail sale in this state, whether directly or through an importer, wholesaler,
distributor, retailer, or similar intermediary or intermediaries, shall execute and deliver to the
department a certification, under penalty of perjury on a form and in a manner prescribed by
the department, that the manufacturer is compliant with this section and that, for each vapor
product sold for retail sale in this state:
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(1) The manufacturer has received a marketing granted order for the vapor
product from the United States food and drug administration (FDA) pursuant to 21
U.S.C. § 387j;
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(2) The manufacturer submitted a timely filed premarket tobacco product
application for the vapor product to the FDA pursuant to 21 U.S.C. § 387j, and the
application either:
(A) Remains under review by the FDA; or
(B) Has received a denial order that has been and remains:
(i) Stayed by the FDA or court order;
(ii) Rescinded by the FDA; or
(iii) Vacated by a court;
(3) The manufacturer is not required to submit an additional marketing granted
order or premarket tobacco product application for the vapor product because the
vapor product merely reflects changes to the name, brand style, or packaging of a
vapor product that is covered under subdivision (b)(1) or (b)(?); or
(4) The consumable material of the vapor product was processed or blended
in the United States at an FDA-registered facility and the consumable material of the
vapor product did not come from a foreign adversarial country. As used in this
subdivision (b)(4), "foreign adversarial country" means a country designated by the
United States department of commerce under 15 CFR 791.4 on January 1, 2025.
(c) The following must be indicated on the certification for each vapor product that is
sold in this· state:
( 1) Brand name;
(2) Category, such as consumable material, power unit, device, vapor
cartridge, pod, or disposable;
(3) Product name; and
(4) Flavor.
(d) Each annual certification form must be accompanied by:
(1) A copy of:
(A) The marketing granted order issued by the FDA pursuant to 21
U.S.C. Section 387j;
(B) The acceptance letter issued by the FDA pursuant to 21 U.S.C. §
387j for a timely filed premarket tobacco product application; or
(C) A document issued by the FDA or by a court confirming that the
premarket tobacco product application has received a denial order that has
been and remains stayed by FDA or court order, rescinded by the FDA, or
vacated by a court; and •
(2) Payment of a fee of twenty-five dollars ($25.00) for each vapor product
each time a manufacturer submits an annual certification form for that vapor product.
(e) The information submitted by the manufacturer pursuant to subdivision (d)(1) is
confidential and not subject to the open records law compiled in title 10, chapter 7. The
manufacturer may redact proprietary information :provided under subdivision (d)(1 ). The
department shall not disclose -such information, except as required or authorized by·Iaw. As
used in this subsection (e), "proprietary information" means commercial or financial
information that is used either directly or indirectly in the business of any person or company
and that gives such person an advantage or an opportunity to obtain an advantage over
competitors who do not know or use such information.
(f) To the extent that 21 U.S.C. § 387j is amended, or subsequent regulations or other
official federal guidance or formal policy statement is issued, changing compliance
requirements or standards for a vapor product to become federally compliant, each
manufacturer of a vapor product that is sold for retail sale or to a consumer in this state shall
submit documentation to the department substantiating compliance with such new federal
requirements or standards within thirty (30) calendar days of the date compliance with such
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requirement or standard is mandated. Failure to substantiate compliance with new federal
requirements or standards is grounds for removal of the manufacturer and its vapor products
from the directory established pursuant to subsection (g).
(g) Starting January 1, 2026, the department shall maintain and make publicly
available on the department's website a directory that lists all vapor product manufacturers,
brand names, categories, product names, and flavors for which certification forms have been
submitted and approved by the department. The department shall update the directory at
least monthly to ensure accuracy. The department shall establish a process to provide
retailers and licensed distributors and wholesalers notice of the initial publication of the
directory and changes made to the directory from the prior month.
{h) A manufacturer or the manufacturer's vapor products must not be included or
retained in the directory if the department determines that any of the following apply:
(1) The manufacturer failed to provide a complete and accurate certification as
required by subsection (b);
. (2) The manufacturer submitted a certification that does not comply with the
requirements of subsection (c) and (d);
(3) The manufacturer failed to include with its certification the payment
required by subdivision (d)(2);
(4) The manufacturer sold products in this state that are required to be
certified under this section during a period when either the manufacturer or the
product had not been certified and listed on the directory; or
. (5) The information provided by the manufacturer in its certification is
determined by the department to contain false information or contains material
misrepresentations or omissions.
(i)(1) The department shall provide manufacturers with a written notice of deficiencies
and an opportunity to cure those deficiencies before taking action to remove
manufacturers or products from the directory.
(2) The department shall not remove the manufacturer or its products from the
directory until at least thirty (30) business days after the manufacturer has been given
notice of an intended action setting forth the reasons for the removal. Notice is
deemed sufficient and immediately received by a manufacturer if the notice is sent
either electronically or by facsimile to an electronic mail address or facsimile number,
as the case may be, that was provided by the manufacturer in its most recently filed
certification. •
(3) A vapor product manufacturer has fifteen (15) business days from the date
of service of the notice of the department's intended action to cure the noted
deficiencies or otherwise establish that the vapor product manufacturer or its products
should be included in the directory.
(4) Retailers have a thirty-day period following the removal of a manufacturer
or its products from the directory in which the retailer is authorized to sell such
products that were in the retailer's inventory as of the date of removal. A retailer is not
authorized to sell the identified products after the expiration of the thirty-day period.
(5) After thirty (30) calendar days following removal from the directory, the
vapor products of a manufacturer identified in the notice of removal and intended for
sale in this state are subject to seizure, forfeiture, and destruction, and may not be
purchased or sold for retail sale in this state. The cost of the seizure, forfeiture, and
destruction must be borne by the business or person from whom the products are
confiscated, except that no products may be seized from a consumer who has made
a bona fide purchase of such product. The department may store and dispose of the
seized products as appropriate, in accordance with federal, state, and local laws
pertaining to storage and disposal of such products.
0)(1) Except as provided in subdiv:isions 0)(2) and (3), beginning January 1, 2027, or
on the date that the department first makes the directory available for public
inspection on its website, whichever is later, vapor products not included in the
directory shall not be sold for retail sale in this state, either directly or through an
importer, distributor, wholesaler, retailer, or similar intermediary or intermediaries.
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(2) A retailer has sixty (60) calendar days from the date that the department
first makes the directory available for inspection on its website to sell products that
were in its inventory and not included in the directory or remove those products from
inventory.
(3) A distributor or wholesaler has sixty (60) calendar days from the date that
the department first makes the directory available for inspection on its website to
remove those products intended for sale in this state that were not included in the
directory from its inventory.
(4) After sixty (60) calendar days following publication of the directory, vapor
products not listed in the directory and intended for sale in this state are subject to
seizure, forfeiture, and destruction, and shall not be purchased or sold for retail sale
except as provided in subsection (i). The cost of the seizure, forfeiture, and
destruction must be borne by the business or person from whom the products are
confiscated, except that no products may be seized from a consumer who has made
a bona fide purchase of such product.
(5) Retailers are authorized to purchase vapor products only from licensed
distributors or wholesalers of tobacco products.
(k)(1) The following penalties apply to violations of this section:
(A)(i) A retailer, distributor, wholesaler, or importer who sells or offers
for sale a vapor product for retail sale in this state that is not included
in the directory is subject to a civil penalty of up to five hundred dollars
($500) for each individual vapor product offered for sale in violation of
this section;
(ii) The civil penalty for a second violation under this
subdivision (k)(1) within a twelve-month period is at least seven
hundred fifty dollars ($750) but not more than one thousand dollars
($1,000) per product, and the suspension of the license of the retailer,
distributor, wholesaler, or importer for thirty (30) calendar days; and
(iii) The civil penalty for a third violation under this subdivision
(k)(1) within a twelve-month period is at least one thousand dollars
($1,000) but not more than one thousand five hundred dollars ($1,500)
per product, and the revocation of the license of the retailer, distributor,
wholesaler, or importer; and
(8) A manufacturer whose vapor products are not listed in the directory
and who causes the products that are n_ot listed to be sold for retail sale in this
state, whether directly or through an importer, distributor, wholesaler, retailer,
or similar intermediary or intermediaries, is subject to a civil penalty of ten
thousand dollars ($10,000) for each individual vapor product offered for sale in
violation of this section. In addition, a manufacturer that knowingly and falsely
represents any information required by a certification form commits a Class A
misdemeanor. Each false representation is a separate offense.
(2) In an action to enforce this section, the state is entitled to recover costs,
including the costs of investigation, expert witness fees, and reasonable attorney
fees.
(3) Notwithstanding this section to the contrary, a repeated violation of this
section constitutes a deceptive trade practice under§ 47-18-104.
(1)(1) A manufacturer not registered to do business in the state shall, as a condition
precedent to having the manufacturer's name or products listed and retained in the
directory, appoint, and continually engage without interruption, a registered agent in
this state for service of process on whom all process and any action. or proceeding
arising out of the enforcement of this section may be served. The manufacturer shall
provide to the department the name, address, and telephone number of its agent for
service of process and provide any other information relating to its agent as may be
requested by the department.
(2) A manufacturer located outside of the United States shall, as an additional
condition precedent to having the manufacturer's products listed or retained in the
directory, cause each of the importers of any of the manufacturer's products to be
sold in this state to appoint, and continually engage without interruption, the services
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of an agent in this state in accordance with this section. All obligations of a
manufacturer imposed by this section with respect to appointment of its agent also
apply to the importers with respect to appointment of their agents.
(3) A manufacturer shall provide written notice to the department not later than
thirty (30) calendar days prior to the termination of the authority of an agent appointed
pursuant to subdivision (1)(1) or (1)(2). Not less than five (5) calendar days prior to the
termination of an existing agent appointment, a manufacturer shall provide to the
department the name, address, and telephone number of the manufacturer's newly
appointed agent for service of process and provide any other information relating to
the new appointment as may be requested by the department. In the event an agent
terminates an agency appointment, the manufacturer shall notify the department of
the termination within five (5) calendar days and include proof to the satisfaction of
the department of the appointment of a new agent.
(m) A retailer, distributor, or wholesaler that sells or distributes vapor products in this
state is subject to at least two (2) unannounced compliance checks by the department or its
designee, including any state or local law enforcement official, annually for purposes of
enforcing this section. Such compliance checks must take place during business hours.
Unannounced follow-up compliance checks of all noncompliant retailers, distributors, and
wholesalers must be conducted within thirty (30) calendar days after any violation of this
section. The department shall publish the results of all compliance checks at least annually
and make the results available to the public on request.
(n) If the department elects not to include a vapor product or vapor product
manufacturer on the directory, or if the department removes a vapor product or vapor product
manufacturer from the directory, then that action is subject to review in the manner provided
by§ 67-1-105 and in accordance with the Uniform Administrative Procedures Act, compiled
in title 4, chapter 5. In the event of a conflict between § 67-1-105 and the Uniform
Administrative Procedures Act, the Uniform Administrative Procedures Act governs.
(o) The department may promulgate rules necessary to effectuate this section. Rules
must be promulgated in accordance with the Uniform Administrative Procedures Act,
compiled in title 4, chapter 5.
(p) All fees and penalties collected by the department pursuant to this section must
be used for the administration and enforcement of this section. Funds collected pursuant to
this section must be placed in a special account within the general fund and do not revert to
the general fund at the end of a fiscal year.
(q) The department shall submit a report to the chief clerks of the senate and the
house of representatives, the office of legislative budget analysis, and the legislative librarian
regarding the status of the directory, manufacturers, and products included in the directory,
revenue and expenditures related to administration of this section, and enforcement activities
undertaken pursuant to this section. The initial report must be submitted by July 1, 2026, and
subsequent annual reports must be submitted by each July 1 thereafter.
I
SECTION 8. Tennessee Code Annotated, Title 67, Chapter 4, Part 10, is amended by adding
the following as a new section:
(a) A retailer, distributor, wholesaler, or importer who sells or offers for sale a vapor
product for retail sale in this state shall not:
(1) Advertise or market, including paraphernalia, to an individual who is under
twenty-one (21) years of age, including:.
(A) With names that resemble or imitate food or drink brands that are
marketed to children;
(8) With images or likenesses of toys, cartoons, or animated or
fictional characters, including Santa Claus, that are designed to appeal to or
encourage individuals who are under twenty-one (21) years of age to
consume vapor products;
(C) With images or visual representations of the consumption of vapor
products; or •
(D) In a medium that specifically appeals to individuals who are under
twenty-one (21) years of age such that the advertising has special
attractiveness to individuals who are under twenty-one (21) years of age
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beyond general attractiveness for individuals who are at least twenty-one (21)
years of age.
(b) A billboard advertisement under this section is prohibited within one thousand
(1,000) radial feet of any childcare center, church, substance abuse recovery facility, public
park, public playground, or public or private school that provides instruction to students in a
preschool or kindergarten program or any of grades one (1) through twelve (12). A billboard
advertisement under this subsection {b) has the same meaning as "outdoor advertising
device" as defined in§ 54-21-102.
(c) A retailer, distributor, wholesaler, or importer who sells or offers for sale a vapor
product for retail sale in this state that violates this section, on notification by the department,
has thirty (30) days to comply with these requirements or will otherwise be subject to the civil
penalties of a minimum of two thousand five hundred dollars ($2,500) and any disciplinary
action prescribed in this section.
(d) A retailer, distributor, wholesaler, or importer who sells or offers for sale a vapor
product for retail sale in this state to anyone under twenty-one (21) years of age is subject to
a fine of two thousand five hundred dollars ($2,500) for the first offense, and a fine of at least
twenty thousand dollars ($20,000) and loss of licensure for any subsequent offense.
(e) The alcoholic beverage commission has concurrent jurisdiction with the
department of revenue to enforce violations of title 39, chapter 17, part 15. The commission
may investigate such violations, conduct unannounced compliance checks, and arrest
individuals based on probable cause of noncompliance.
SECTION 9. If any provision of this act or its application to any person or circumstance is
held invalid, then the invalidity does not affect other provisions or applications of the act that can be
given effect without the invalid provision or application, and to that end, the provisions of this act are
severable. •
SECTION 10. Sections 1-6 and 8-9 of this act take effect July 1, 2025, the public welfare
requiring it. For purposes of promulgating rules, Section 7 of this act takes effect upon becoming a
law, the public welfare requiring it. For all other purposes, Section 7 takes effect August 1, 2025, the
public welfare requiring it.
7
SENATE BILL NO. 763
PASSED: April 17, 2025
Q. ~.
RANDY MINALLY
SPEAKER OF THE SENATE
C: ,rBfH~ •
CAMERON !'EX I ON, SPEAKER
HOUSE OF REPRESENTATIVES
Qj "a {;X. APPROVED this
\,\°" 2025
day of ~Q
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BILL LEE, GOVERNOREvery fact on this page links to its source, starting with the official bill record.