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AlabamaHB82025 Regular SessionHouseWALLET

Alcoholic Beverage Control Board, regulation of retail sale of certain tobacco products and electronic nicotine delivery systems, further provided

Sponsored By: Barbara Drummond (Democratic)

Enacted

Alcoholic Beverages & Tobacco

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Bill Overview

Analyzed Economic Effects

14 provisions identified: 2 benefits, 8 costs, 4 mixed.

Tobacco sellers face escalating permit penalties

General permit penalties apply to the permit holder, not the employee, for violations at one location within two years. A first violation can bring up to $1,000; a second requires a fine up to $2,500. A third or later violation requires a fine up to $5,000 and permit revocation. No permit can be reissued there during revocation, even after an ownership change. The Board can use supervised under-21 purchase tests; participants under 18 need prior written parent or guardian consent and direct agent or officer supervision.

Unlisted nicotine products bring steep penalties

Retail permit holders offering unlisted nicotine products face $1,000 for a first offense and $2,500 for a second. A third or later offense within four years brings $5,000, permit revocation, and no new permit there for at least one year. Unlisted products are contraband subject to seizure and forfeiture. Manufacturers selling, furnishing, or giving away unlisted products face $1,000 per product daily until removal from the market or proper listing. That daily penalty includes electronic nicotine devices and delivery sales.

Vape sellers face licenses and fees

Beginning June 1, 2025, covered vaping products require specialty retail sellers, except permitted sellers offering products with specified federal authorization. Each specialty location requires a $50 application and a $1,000 license renewed annually. A store qualifies as a specialty retailer by meeting any listed test, replacing the old test of over 35% of quarterly receipts. Tests include a vaping-related name, at least 50% of inventory by quantity or value, or specified store features. Those features include at least 20% of floor or shelf space, self-service displays, samples, or on-site production.

Under-21 tobacco rules cover more products

The law changes the tobacco chapter's definition of a minor from under 19 to under 21. People under 21 cannot buy, use, possess, or transport covered tobacco products, nicotine products, liquids, substitutes, and specified inhaled cannabinoid substances. Covered electronic devices are prohibited regardless of their contents or past use; false or borrowed IDs cannot be used to obtain e-liquids. Broader definitions also cover vapor products delivering other substances and substitutes without FDA approval for medical or cessation use. The employment exception allows specified handling, transport, or sales only while a permit holder or employee age 21 or older is present.

Nicotine sellers face stricter access rules

Beginning June 1, 2025, specialty vaping shops must bar everyone under 21 from entering. Every patron must have a driver license or nondriver ID electronically scanned through a Board-approved third-party service. Vending-machine distribution of covered tobacco and nicotine products is banned, including in adult-only areas. Self-service displays are allowed only in tobacco specialty stores or specialty vaping shops, in areas closed to people under 21. Violations of the display rule carry statutory penalties.

Illegal nicotine stock risks seizure costs

Covered products stored in Alabama for unlawful sale or distribution are contraband subject to seizure, forfeiture, and possible destruction. Their containers and property substantially connected with violations can also be seized and forfeited. Searches, seizures, and destruction follow the referenced alcohol-law procedures, and courts can order destruction after conviction. When seized electronic nicotine devices, e-liquids, or alternative nicotine products are destroyed, the person they came from pays hazardous-waste destruction and disposal costs. The law sets no fixed disposal fee.

Youth vaping violations require classes

Violations by people under 19 are delinquent acts handled only by juvenile court. A first violation requires parent or guardian notice and an in-person vaping education class. A second requires a nonresidential addiction or substance-abuse course approved by the court and Alabama Department of Public Health. The state vaping fund pays for that course, and no court costs or fees apply under this subsection. A parent or guardian must attend with someone under 19; the law provides a court-approved sponsor for someone 19 or older.

Vape shops gain more location choices

Beginning June 1, 2025, the law repeals the prior state location limits for specialty vaping retailers. These retailers have more freedom to choose locations. Other applicable requirements still apply.

Nicotine fees fund enforcement and education

The law creates a Vaping Licensing and Enforcement Fund receiving permit collections and other chapter revenue, including specialty retail license fees. Its split is 40% for Board enforcement and prevention, 20% for state law enforcement, 20% for education, and 20% for courts' education and nonresidential rehabilitation. Fund spending follows state budgeting and allotment rules. Separately, certification and directory fees first cover specified department expenses; the remainder is split 50% to the General Fund and 25% each to state law enforcement and Board enforcement. The Board can also use available public, grant, or private funding for enforcement and retailer materials explaining under-21 access laws.

Nicotine retailers must post updated warnings

Covered retailers must post a prominent 8½-by-11-inch warning near the point of sale. It must explain the under-21 purchase ban, nicotine addiction, and health risks, and accurately identify the product types sold. Sellers of alternative nicotine products, e-liquids, or electronic nicotine devices must also warn about possible toxic heavy-metal exposure. The law repeals the prior tobacco-sales sign provision beginning June 1, 2025, while establishing these updated duties.

Nicotine companies face tighter advertising limits

Covered nicotine ads cannot make cessation or healthier-alternative claims, except FDA-authorized modified-risk claims used as the order allows. Billboard flavor ads are limited to tobacco, mint, or menthol; billboards within 1,000 feet of K–12 schools or public playgrounds are banned. Brand-linked scholarships, events, and publications face 85%-age-21-plus thresholds; the event test covers performers, and publication tests cover readers or viewers. Labels and marketing cannot use specified candy or dessert references, imitate food brands marketed to minors, or show child-appealing characters; violating items are seizable contraband. Specialty shops may show their trade name but no other product advertising visible outside; covered advertising fines rise from $100 to $300 initially and $500 to $750 thereafter, with each continuing day a separate later violation.

Tobacco businesses pay permit transfer fees

Distributors of tobacco, tobacco products, or non-vapor alternative nicotine products need a $150 annual permit for each location. New applicants on or after the law's effective date also pay a one-time, nonrefundable $50 filing fee. With Board approval, a permit can transfer to someone taking control of the location, or a business can move within the same jurisdiction. Each transfer costs $50, and each type is limited to once per permit year. New holders must meet permit requirements and renew annually.

Schools tighten vaping rules and education

Effective June 1, 2025, the law requires a state model policy by September 1 and local policies by November 1, 2025. Policies must ban student possession and use of covered products at public K–12 schools, on buses, and at school-sponsored events. They must also ban employee use on campus and set graduated consequences and reporting procedures. Anonymous reports cannot support formal discipline, and consequences must follow disability, antidiscrimination, education, and school-discipline requirements. The education department must work with the Drug Education Council on a vaping prevention class, obtain State Board approval, and provide local boards the curriculum.

Nicotine makers face product listing rules

Beginning October 1, 2025, directory additions require U.S. making, packaging, labeling, and manufacturing of products and components, or specified FDA authorization. Manufacturers must certify nicotine source, manufacturing location, federal eligibility basis, application tracking number, name, subcategory, flavor, and SKU under penalty of perjury. That duty starts October 1, 2025, or a later date within 30 days after an FDA application deadline, whichever is later; material changes must be reported to the Revenue Commissioner within 30 days. Certification costs $2,000 initially and $500 annually; alternative nicotine products commercially marketed in the United States before February 15, 2007, are exempt from the certification section. Revenue may require sworn proof of U.S. manufacture and must remove products the Board finds prohibited.

Sponsors & Cosponsors

Sponsor

  • Barbara Drummond

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 462 • No: 120

House vote • 5/6/2025

Drummond Concur In and Adopt - Adopted Roll Call 1197

Yes: 52 • No: 43 • Other: 6

Senate vote • 5/6/2025

Sessions motion to Adopt - Adopted Roll Call 990

Yes: 33 • No: 1

Senate vote • 5/6/2025

Singleton motion to Adopt - Adopted Roll Call 991

Yes: 18 • No: 16

Senate vote • 5/6/2025

Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 992

Yes: 28 • No: 5

House vote • 4/15/2025

Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 860

Yes: 89 • No: 9 • Other: 1

House vote • 4/15/2025

Drummond motion to Table - Adopted Roll Call 859

Yes: 59 • No: 36 • Other: 4

House vote • 4/15/2025

Motion to Adopt - Adopted Roll Call 858

Yes: 86 • No: 9 • Other: 1

House vote • 4/15/2025

Third Reading in House of Origin

Yes: 97 • No: 1 • Other: 5

Actions Timeline

  1. Enacted

    5/14/2025House

  2. Signature Requested

    5/7/2025Senate

  3. Delivered to Governor

    5/7/2025House

  4. Carried Over to the Call of the Chair

    5/6/2025Senate

  5. Sessions 1st Substitute Offered

    5/6/2025Senate

  6. Sessions motion to Adopt - Adopted Roll Call 990

    5/6/2025Senate

  7. Singleton 1st Amendment Offered

    5/6/2025Senate

  8. Singleton motion to Adopt - Adopted Roll Call 991

    5/6/2025Senate

  9. Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 992

    5/6/2025Senate

  10. Drummond Concur In and Adopt - Adopted Roll Call 1197

    5/6/2025House

  11. Ready to Enroll

    5/6/2025House

  12. Enrolled

    5/6/2025House

  13. Read for the Second Time and placed on the Calendar

    4/24/2025Senate

  14. Reported Out of Committee Second House

    4/23/2025Senate

  15. Read for the first time and referred to the Senate Committee on Healthcare

    4/17/2025Senate

  16. Pending Committee Action in Second House

    4/17/2025Senate

  17. Third Reading in House of Origin

    4/15/2025House

  18. Judiciary Engrossed Substitute Offered

    4/15/2025House

  19. Motion to Adopt - Adopted Roll Call 858

    4/15/2025House

  20. Pettus 1st Amendment Offered

    4/15/2025House

  21. Drummond motion to Table - Adopted Roll Call 859

    4/15/2025House

  22. Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 860

    4/15/2025House

  23. Engrossed

    4/15/2025House

  24. Judiciary 1st Amendment

    4/9/2025House

  25. Judiciary 2nd Amendment

    4/9/2025House

Bill Text

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