Vermont S 198: An act relating to the regulation of tobacco products and tobacco substitutes

Bill Text

No. 148 Page 1 of 24
2026

VT LEG #390234 v.1
No. 148. An act relating to the regulation of tobacco products and tobacco
substitutes.
(S.198)
It is hereby enacted by the General Assembly of the State of Vermont:
Sec. 1. 7 V.S.A. chapter 40 is amended to read:
CHAPTER 40. TOBACCO PRODUCTS
§ 1001. DEFINITIONS
As used in this chapter:
* * *
(8)(A) “Tobacco substitute” means products, including any product that
meets all of the following conditions:
(i) The product is manufactured from, is derived from, or contains
tobacco or nicotine, whether natural or synthetic, including nicotine alkaloids
and nicotine analogs.
(ii) The product is intended for human consumption by smoking,
chewing, inhaling, sucking, absorbing, or consuming in any other manner.
(iii) The product is not a tobacco product, as defined in this
section.
(B) The term “tobacco substitute” includes electronic cigarettes or
and other electronic or battery-powered devices, that contain or are designed to
deliver nicotine or other substances into the body through the inhalation of
vapor and that have not been approved by the U.S. Food and Drug
Administration for tobacco cessation or other medical purposes. The term also

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VT LEG #390234 v.1
includes nicotine pouches and any liquids, whether nicotine based or not, and
delivery devices sold separately for use with a tobacco substitute.
(C) Cannabis products as defined in section 831 of this title or
products that have been approved by the U.S. Food and Drug Administration
for tobacco cessation or other medical purposes shall not be considered to be
tobacco substitutes.
(9) “Licensed wholesale dealer” means a wholesale dealer licensed
under the provisions of this chapter.
(10) “Wholesale dealer” means a person who imports or causes to be
imported into the State any tobacco products or tobacco substitutes for sale or
who sells or furnishes any of these products to other wholesale dealers or retail
dealers for the purpose of resale, but not by small quantity or parcel to
consumers of these products.
(11) “Wholesale dealer’s license” means the license granted under the
provisions of this chapter to a wholesale dealer for a wholesale outlet.
(12) “Wholesale outlet” means any premises where tobacco products or
tobacco substitutes are sold, transferred, displayed, or held for sale by a
wholesale dealer.
(13) “Wholesale price” means the price at which a licensed wholesale
dealer sells or furnishes tobacco products or tobacco substitutes to any retail
dealer.

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VT LEG #390234 v.1
§ 1002. LICENSE REQUIRED FOR RETAIL SALE; APPLICATION;
FEE; ISSUANCE
(a)(1) Except as provided in subsection (h) of this section, no person shall
engage in the retail sale of tobacco products, tobacco substitutes, or tobacco
paraphernalia in the person’s place of business without a tobacco license
obtained from the Division of Liquor Control.
(2) No person shall engage in the retail sale of tobacco substitutes
without also obtaining a tobacco substitute endorsement from the Division of
Liquor Control.
(3) Tobacco licenses and tobacco substitute endorsements shall expire at
midnight, April 30, of each year be valid for one year from the date of issue.
(b)(1) The Board shall prepare and issue tobacco license and tobacco
substitute endorsement forms and applications. These shall be incorporated
into the liquor license forms and applications prepared and issued under this
title.
(2) The licenses issued under this section shall be entitled “LIQUOR
LICENSE,” “LIQUOR-TOBACCO LICENSE,” or “TOBACCO LICENSE,”
as applicable. The and the endorsements issued under this section shall be
entitled “TOBACCO SUBSTITUTE ENDORSEMENT.”
(3) The Board shall also provide simple instructions for licensees,
designed to assist them in complying with the provisions of this chapter.

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VT LEG #390234 v.1
(c) Each tobacco license and tobacco substitute endorsement shall be
prominently displayed on the premises identified in the license.
(d)(1) For a license or endorsement required under this section, a person
shall apply to the legislative body of the municipality using the application
provided by the Board in accordance with subdivision (b)(1) of this section and
shall pay the following fees:
(A) to the Division of Liquor Control, the applicable liquor license
fee provided in section 204 of this title for a liquor license and a tobacco
license;
(B) to the legislative body of the municipality, a fee of $110.00:
(A) $150.00 for a tobacco license or renewal; and
(C) to the legislative body of the municipality, a fee of $50.00
(B) $75.00 for a tobacco substitute endorsement as provided in
subdivision (a)(2) of this section.
(2) The municipal clerk shall forward the application to the Division,
and, if the municipality’s local control commissioners have approved the
application for a tobacco license and, if applicable, a tobacco substitute
endorsement, the Division shall issue the tobacco licen