SB 221: regulate the retail sale of nicotine products, and to provide a penalty therefor. - South Dakota

House Engrossed → Enrolled · 5 edits · Mar 11, 2026

MODERATE

This bill establishes a new regulatory framework for the retail sale of nicotine products in South Dakota, including alternative nicotine products and vapor products. It creates mandatory licensing requirements for retailers and vending machine operators, sets specific application fees based on revenue estimates, and defines key terms to clarify what products are covered under the law.

Scope change

The bill expands state regulation to include 'alternative nicotine products' and 'vapor products' alongside traditional tobacco items, creating a comprehensive licensing system for all nicotine product sales.

DEFINITION

Added specific legal definitions for 'alternative nicotine product,' 'nicotine analog,' 'vapor product,' and 'vending machine' to clarify the scope of regulated items.

REQUIREMENT

Established a mandatory licensing requirement for all retailers selling nicotine products, including separate licenses for each business location and vending machine.

Required license applications to include applicant contact information, business addresses, and a history of past or current violations regarding nicotine product sales.

FISCAL

Set application fees of $300 for retailers where nicotine sales exceed 50% of gross income and $200 for those below that threshold, plus a $100 fee per vending machine.

ENFORCEMENT

Created a presumption that any product labeled as containing a nicotine analog actually contains one, aiding in enforcement against counterfeit or unregulated products.

House Commerce and Energy Engrossed → House Engrossed · 4 edits · Mar 9, 2026

MODERATE

The bill text was updated to reflect its progression from a committee draft to the final House version, incorporating extensive amendments. The core policy content, which regulates the retail sale of nicotine products and establishes licensing requirements, remains consistent with the previous version shown in the diff.

Scope change

The bill's scope remains focused on regulating the retail sale of nicotine products, including new definitions for 'alternative nicotine products' and 'nicotine analogs', but the text now reflects final legislative amendments.

TECHNICAL

The document was updated from a 'House Commerce and Energy Engrossed' draft to the 'House Engrossed' version, indicating it has been extensively amended and is ready for final passage.

DEFINITION

New definitions were added for 'alternative nicotine product,' 'nicotine analog,' 'vapor product,' and 'vending machine retailer' to clarify what items fall under the new regulations.

REQUIREMENT

Specific licensing requirements were established, including separate licenses for each business location and vending machine, along with application fees based on the percentage of income generated from nicotine sales.

ENFORCEMENT

A new provision was added stating that manufacturer or retailer communications indicating a product contains a nicotine analog serve as presumptive evidence of its presence.

Senate Engrossed → House Commerce and Energy Engrossed · 5 edits · Mar 4, 2026

MODERATE

The bill text was converted from a browser error page into the actual legislative content for Senate Bill 221, which regulates the retail sale of nicotine products in South Dakota. This version establishes new definitions for terms like 'nicotine analog' and 'vapor product,' sets specific licensing requirements and fees for retailers, and creates a presumption of guilt if a product is marketed as containing a nicotine analog.

Scope change

The bill's scope is now clearly defined as regulating the retail sale of nicotine products, including new categories like nicotine analogs and vapor products, within the 101st Legislative Session.

DEFINITION

Added specific legal definitions for 'alternative nicotine product,' 'nicotine analog,' 'vapor product,' and 'vending machine' to clarify what items are regulated.

REQUIREMENT

Established a mandatory licensing system for retailers, requiring separate licenses for each business location and each vending machine.

FISCAL

Set specific licensing fees based on business type: $300 for retailers where nicotine sales exceed 50% of income, $200 for those below 50%, and $100 per vending machine.

ENFORCEMENT

Created a legal presumption that any communication indicating a product contains a nicotine analog serves as evidence that the product actually contains one.

TECHNICAL

Removed browser compatibility warnings and navigation links that were obscuring the actual bill text.

Senate Health and Human Services Engrossed → Senate Engrossed · 6 edits · Feb 25, 2026

MODERATE

This bill introduces a new regulatory framework for the retail sale of nicotine products in South Dakota, including definitions for various product types like vapor products and alternative nicotine products. It establishes a licensing system with specific application requirements and tiered fees based on the percentage of income generated from nicotine sales. The bill also sets rules for license validity, transferability, and includes presumptive evidence clauses regarding nicotine analogs.

Scope change

The bill expands the scope of regulation to include a broader range of nicotine products beyond traditional tobacco, such as vapor products and alternative nicotine products, and introduces specific licensing requirements for retailers and vending machine operators.

DEFINITION

Added specific definitions for 'alternative nicotine product,' 'vapor product,' 'vending machine,' and 'vending machine retailer' to clarify what products and devices are regulated.

REQUIREMENT

Established new licensing requirements for retailers, including separate applications for each business location and vending machine placement, with specific information required on the application forms.

Set license validity to December 30th of the following year, with a three-day grace period for renewal applications submitted before midnight on the expiration date.

FISCAL

Introduced a tiered fee structure for licenses: $500 for retailers where at least 50% of income comes from nicotine sales, $250 for those below that threshold, and $100 per establishment for each vending machine placed.

ENFORCEMENT

Created a presumption that any communication indicating a product contains a nicotine analog serves as evidence that the product actually contains a nicotine analog.

ELIGIBILITY

Allowed for the transfer of licenses if the new licensee obtains written approval from the department and meets eligibility requirements.

Introduced → Senate Health and Human Services Engrossed · 6 edits · Feb 20, 2026

MODERATE

The bill transitions from a generic legislative placeholder to a specific draft regulating the retail sale of nicotine products in South Dakota. It establishes new definitions for nicotine products, sets licensing requirements with tiered fees based on sales volume, and prohibits selling within 500 feet of schools.

Scope change

The bill expands state regulatory authority from general taxpayer list confidentiality to creating a comprehensive licensing and operational framework specifically for nicotine product retailers.

DEFINITION

Added specific definitions for 'nicotine product' (including analogs and delivery systems) and 'retailer' to clarify what items and businesses are regulated.

REQUIREMENT

Introduced mandatory licensing for all nicotine product retailers, requiring separate licenses for each business location.

Added a location restriction prohibiting new nicotine retailers from operating within 500 feet of elementary or secondary schools.

FISCAL

Established a tiered fee structure: $500 for businesses where nicotine sales are at least 50% of income, and $250 for those below that threshold.

ENFORCEMENT

Created a presumption of evidence that a product contains a nicotine analog if the manufacturer or retailer communicates that fact.

ELIGIBILITY

Set the minimum age for applicants at 21 years and required disclosure of past legal violations related to nicotine products.

regulate the retail sale of nicotine products, and to provide a penalty therefor.

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