Tennessee legislation · 114th General Assembly
Tennessee HB2359: AN ACT to amend Tennessee Code Annotated, Title 39, Chapter 17; Title 43; Title 57 and Title 67, Chapter 4, Part 10, relative to vapor products.
Status: Chaptered, May 27, 2026
Fiscal Summary OTHER FISCAL IMPACT The extent liquid nicotine analogues are currently sold in this state, and any revenue generated from the sale thereof, is unknown and cannot be quantified with reasonable certainty. Bill Summary Present law requires every dealer or distributor of tobacco products to pay to the department of revenue for exclusive state purposes, taxes in addition to all other taxes or fees, for the privilege of selling cigarettes and tobacco products in this state. The tax rate on vapor products is 10% of the wholesale cost price. As used in this bill, a "vapor product" means a noncombustible product containing consumable material, whether natural or synthetic, that employs a mechanical heating element, battery, electronic circuit, or other mechanism, regardless of shape or size, that can be used to produce or emit a visible or non-visible vapor, but such term does not include a product regulated by the federal Food, Drug, and Cosmetic Act. As used in that definition, a "consumable material" means a liquid nicotine solution intended for use in a vapor product. This bill revises the definition of "consumable material" to, instead, mean a liquid nicotine solution, whether natural or synthetic, or a liquid nicotine analogue intended for use in a vapor product. PENALTY Present law provides that a retailer, distributor, wholesaler, or importer who sells or offers for sale a vapor product for retail sale in this state to anyone under 21 is subject to a fine of $2,500 for the first offense, and a fine of at least $20,000 and loss of licensure for any subsequent offense. This bill clarifies that such fines are issued by the alcoholic beverage commission. ON APRIL 21, 2026, THE HOUSE ADOPTED AMENDMENTS #2 AND 3, AND RESET HOUSE BILL 2359, AS AMENDED. AMENDMENT #2 restates the provisions of this bill to be
What the bill says
From the amended text:
Senate Finance, Ways, and Means 1 Amendment No. 1 to SB2293 Watson Signature of Sponsor AMEND S e n ate Bill No. 2293* House Bill No. 2359 by deleting all language after the enacting clause and substituting: SECTION 1. Tennessee Code Annotated, Section 67-4-1001(7), is amended by deleting the subdivision and substituting instead: (7) "Consumable material" means a liquid nicotine solution, whether natural or synthetic, or a liquid nicotine analogue intended for use in a vapor product; SECTION 2. Tennessee Code Annotated, Section 67-4-1001(28), is amended by deleting the subdivision and substituting instead: (28) "Vapor product": (A) Means a noncombustible product containing consumable material that employs a mechanical heating element, battery, electronic circuit, or other mechanism, regardless of shape or size, that can be used to produce or emit a visible or non-visible vapor; (B) Includes an electronic cigarette, electronic cigar, electronic cigarillo, electronic pipe, or similar product, and any vapor cartridge containing consumable material or other container of consumable material that is intended to be used with or in an electronic cigarette, electronic cigar, electronic cigarillo, electronic pipe, or similar product; and (C) Does not include a product regulated under Chapter V of the federal Food, Drug, and Cosmetic Act (21 U.S.C. § 351 et seq.); SA1108 SECTION 3. Tennessee Code Annotated, Section 67-4-1035(d), is amended by deleting the …