establish requirements for the distribution and sale of vapor products, and to provide a penalty therefor.

HB 1240 requires businesses distributing or selling vapor products (like e-cigarettes) in South Dakota to obtain licenses from the Department of Revenue. Distributors must pay a $100 fee and keep transaction records for three years, while retailers must pay $250, verify customer ages at checkout using a third-party system, and maintain proof that products came from a licensed distributor. The bill also restricts the sale of non-tobacco, non-mint, and non-menthol flavored vapor products to stores that limit access to customers 21 and older and earn at least 25% of revenue from vapor and tobacco products. Violating these rules can result in misdemeanor charges, with penalties including fines.