Relating to nicotine solution products, including taxation of such products, making appropriations, and making penalties applicable

This bill imposes a tax on nicotine solution products and requires the licensing of nicotine solution products distributors, subjobbers, retailers, and delivery sale retailers, similar to the licensing of tobacco product distributors, subjobbers, retailers, and delivery sale retailers. The bill defines “nicotine solution product” as any cartridge, bottle, or other package that contains nicotine, including nicotine made or derived from tobacco or sources other than tobacco, in a solution or other substance that is consumed or meant to be consumed through the use of a heating element, power source, electronic circuit, or other electronic, chemical, or mechanical means that produces vapor or aerosol. “Nicotine solution product” includes any alternative nicotine product, vapor product, or other product that contains an integrated, nonrefillable or nonreusable nicotine solution product component. The bill imposes a tax upon all nicotine solution products in this state and upon any person engaged in business as a distributor of nicotine solution products, at the rate of percent of the wholesale sales price of the nicotine solution product. The tax is imposed at the time the distributor brings or causes to be brought into the state from outside the state nicotine solution products for sale; makes, manufactures, or fabricates nicotine solution products in the state for sale in this state; or ships or transports nicotine solution products to retailers in this state, to be sold by those retailers. products. The tax on consumers does not apply if the taxes imposed on distributors for the nicotine solution products have been paid. The bill creates a health promotion trust fund in the office of the treasurer of state. The fund consists of the revenues generated from the tax on nicotine solution products that are credited to the health promotion trust fund, annually. Moneys in the fund are separate from the general fund of the state, are to be used only as specified in the bill, and are appropriated only for the uses specified. Moneys in the fund are not subject to reversion, and interest or earnings on moneys deposited in the fund shall be credited to the fund. Revenue generated from the tax on nicotine solution products shall be credited to the health promotion trust fund on an annual basis. Of the revenues generated and credited to the fund on an annual basis, percent of the total amount is appropriated annually to the department of health and human services for tobacco use prevention and control efforts pursuant to Code chapter 142A and percent of the total amount is appropriated annually to the judicial branch to be used to create and maintain civil and criminal specialty courts involving individuals with substance use disorder or mental health issues. The bill makes applicable to delivery sales of nicotine solution products, provisions that are applicable to delivery sales of alternative nicotine products and vapor products, including the imposition of sales and use taxes. are being sold, distributed, removed, or otherwise used in violation of the bill. The bill also makes applicable to nicotine solution products, provisions and penalties under Code chapter 453A relating to the sale or other provision to, or the purchase or other use or possession by, persons under years of age of cigarettes, tobacco products, and other products; the giving away of samples of cigarettes, tobacco products, and other products to persons under years of age near locations used by persons primarily under years of age; and self-service sales of cigarettes, tobacco products, and other products.