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Committee amends bill to expand tobacco definition to include all nicotine sources, sends it to Revenue
Summary
The House Committee on Commerce and Consumer Protection on April 8 adopted an amendment to House Bill 2528, expanding the statutory definition of tobacco and nicotine products and referring the bill without recommendation to the Committee on Revenue.
The House Committee on Commerce and Consumer Protection on April 8 amended and referred House Bill 2528 to the Committee on Revenue. The bill broadens the definition of "inhalant delivery system" to include nicotine derived from any source, shifts enforcement for under-21 sales from criminal probation to a civil prohibition enforced by the Oregon Health Authority (OHA), and expands the definition of tobacco products for taxation to cover nicotine pouches, lozenges and other products containing nicotine derived from any source.
Key changes in the dash-1 amendment - Rulemaking authority: The amendment replaces general rulemaking language with authority to adopt the rules necessary for administering specified ORS provisions (cited in committee as ORS 431A.0.175 to 431A.0.183 in the summary). - Tax effective date: The amendment establishes Jan. 1, 2027, as the date when the broader taxation definition takes effect.
Discussion Committee members raised concerns about unintended consequences of equating non-tobacco nicotine products with combusted tobacco for tax and policy purposes. Representative Wallen and others noted that nicotine pouches can be used as cessation aids or reduced-harm alternatives and warned that higher taxes or restrictions could push consumers to unregulated, higher-dose products from other countries. Vice Chair Chai Chee and others said narrowing rulemaking authority addressed some concerns and that revenue committee debate is appropriate for tax questions.
Committee action The committee adopted the dash-1 amendment and voted to move HB 2528 as amended without recommendation to the Committee on Revenue, with a prior reference to the Joint Committee on Ways and Means. Roll-call votes included: Representative Johnson (Aye); Representative Womble (Aye); Representative Merrell (Aye); Representative Roeschke (No); Representative Wallen (No); Representative Walters (Aye); Vice Chair Chay Chay (Aye); Vice Chair Osborne (No); Chair Sosa (Aye). Representative Kate was excused. The motion passed.
The committee summary noted a fiscal note and set the tax-change effective date in statute for Jan. 1, 2027; members said the Revenue Committee will further consider tax and public-health trade-offs.
