House Human Services reviews Commerce amendment to S.198 tightening tobacco-substitute regulation

Montpelier — The House Human Services Committee on Wednesday received a walkthrough of a House Commerce strike-all amendment to S.198, an act that would recodify and expand regulation of tobacco products and “tobacco substitutes,” Office of Legislative Counsel Jen Carby told members.

Carby said the amendment broadens the statutory definition of “tobacco substitute” to cover nicotine-containing products whether natural or synthetic and lists electronic cigarettes, nicotine pouches and delivery liquids and devices. "Tobacco substitutes means any product that meets all of the following conditions. First, the product is manufactured from, derived from, or contains tobacco or nicotine, whether natural or synthetic," Carby read to the committee.

The amendment would also move wholesale dealer licensure from the Department of Taxes to the Department of Liquor and Lottery, align wholesale and retail regulatory language, and phase the change in with an effective date of July 1, 2027, to allow agencies time to transition. Carby said both departments are supportive of the move with a one-year delay to work out implementation details.

Why it matters: The change consolidates tobacco licensing and enforcement responsibilities in the agency that already oversees retail liquor licensing, alters how taxes and compliance are verified, and creates new compliance and enforcement tools for regulators.

Key changes outlined by…