IndianaSB 185Second Regular Session 124th General Assembly (2026)SenateWALLET

Alcohol and tobacco matters.

Sponsored By: Ron Alting (Republican)

Signed by Governor

Summary

Specifies, with respect to a tobacco sales certificate (certificate), that a permitted premises may not include sleeping or living quarters. Provides that a person may not sell a tobacco product or electronic cigarette at wholesale without a certificate. Adds additional information an applicant must provide to the alcohol and tobacco commission (commission) when applying for a certificate. Provides, with one exception, that the commission shall not issue a certificate to a retail location where a certificate was revoked within one year prior to the application. Specifies the circumstances under which the commission must either suspend or revoke a certificate if the certificate holder's employees violate employee identification requirements three or more times in one year. Makes it a Class C infraction for a certificate holder or employee to violate particular identification requirements. Modifies the application of certain statutes concerning vapor pens and e-liquid. Establishes various requirements and penalties applicable to e-liquid, e-liquid products, and vapor devices, including restrictions on the manufacture, sourcing, possession, sale, and distribution of foreign adversary products. Specifies that certain provisions concerning vapor pens and e-liquid do not authorize the manufacturing, sale, possession, or use of a controlled substance or any product containing a controlled substance. Amends the requirements for an initial and renewal application to manufacture e-liquids or e-liquid products. Requires, in a provision concerning the sale of cigarettes, that a buydown be considered in determining the cost to the retailer or cost to the distributor. Specifies an exception. Adds the sale of alcohol without a permit to the violations which may constitute racketeering activity. Changes the infraction of the habitual illegal sale of tobacco products from six violations in a year to three violations in a year. Changes the infraction of the habitual illegal entrance by a minor from six violations to three violations in a year. Specifies that a prohibition on the sale, use, or distribution of flavored nitrous oxide does not apply to a law enforcement agency disposing of flavored nitrous oxide by donation to a nonprofit organization.

public policyappropriationsthe house

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Bill Overview

Analyzed Economic Effects

12 provisions identified: 3 benefits, 9 costs, 0 mixed.

E-liquid makers pay higher permit fees

Beginning July 1, 2026, Indiana's e-liquid rules cover making, bottling, selling, bartering, importing, possessing, and using covered products, including vending-machine activity. Manufacturers making or selling covered products in Indiana must obtain permits by January 1, 2027. Nonrefundable initial application fees rise from $1,000 to $3,000; nonrefundable renewal fees rise from $500 to $1,000. Permits issued or renewed after June 30, 2026, last two years; earlier permits keep their five-year terms. The law also removes the limit tying commission fees under the e-liquid law to actual costs, without requiring another increase.

Tobacco businesses face stricter product rules

Beginning July 1, 2026, covered manufacturers cannot make, source, possess, sell, or distribute products defined as foreign-adversary products. Covered tobacco retailers and wholesalers cannot possess, sell, or distribute them. The law also bars manufacturers, wholesalers, and retailers from adding adulterated products to e-liquid made for sale in Indiana. That definition includes foreign-adversary products. Beginning July 1, 2026, Indiana must revoke a covered business's applicable permit or sales certificate for federal Food, Drug, and Cosmetic Act violations, including violations of its rules.

Tobacco sellers face new certificate rules

Beginning July 1, 2026, tobacco and electronic cigarette sellers need separate certificates for each retail or wholesale location. Retail certificates cost $200; wholesale applications cost $100, subject to a statutory exception not described in the provided text. Retail premises need a qualifying permanent structure or cigarette vending machine, without living quarters; wholesalers need a permanent distribution building. The wholesaler rules also cover certificate holders, or businesses needing certificates, that supply e-liquid for resale. Indiana cannot certify a retail location for one year after revocation, unless its real estate transfers to an independent third party.

E-liquid makers face new reporting duties

Beginning July 1, 2026, initial and renewal applicants must verify legal compliance and provide FDA approval, authorization, or application-status records. Under penalty of perjury, they must affirm, to their knowledge, they will not use ingredients or e-liquids from listed foreign-adversary nations. An FDA denial during the permit term requires notice to Indiana and a supplemental initial or renewal application. Covered manufacturers must file confidential annual reports on new and discontinued products, ingredient volumes, nicotine concentration, and each product's sales volume. They can skip the new- and discontinued-product report by certifying by October 1 that all their Indiana products were filed with FDA.

E-liquid sellers face sourcing and nicotine limits

Beginning July 1, 2026, retailers can buy e-liquid products only from Indiana-permitted manufacturers or wholesalers. Retailers and wholesalers must follow certificate-identification rules and keep invoices for at least two years. Wholesalers without manufacturing permits must hold the applicable tobacco sales certificate. Self-service e-liquid sales are prohibited. Retailers cannot sell e-liquid products containing more than 75 milligrams of nicotine per milliliter.

Tobacco sellers face identification penalties

Beginning July 1, 2026, certificate applicants must submit an owner's government photo identification showing their birth date. Businesses with multiple owners must name a managing owner and submit that person's identification. Intentional false statements or hidden material facts in applications are grounds for denial or revocation. Employees and agents must show valid identification to excise officers; three employee identification violations within one year require a five-day certificate suspension. The fourth and fifth violations each add five days; six or more require revocation.

Vape delivery sellers face stricter checks

Beginning July 1, 2026, delivery-sale rules cover e-liquid, e-liquid products, and vapor devices ordered remotely and shipped to Indiana buyers. Sales to retailers for resale rather than personal use are excluded. Before shipping, sellers must check age through a commercial database or government identification copy, collect payment by a check or card in the buyer's name, and ship only to that buyer. Shipping documents must carry the required under-21 warning. Knowingly or intentionally delivering to someone under 21, or shipping without the required age-check effort, is a Class C infraction.

Consumers get stronger e-liquid packaging safeguards

The law extends packaging safeguards to e-liquid products as well as e-liquid containers. Covered packaging must show signs of tampering and carry nicotine-addiction warnings. E-liquid containers must have child-resistant caps that meet federal standards.

Flavored nitrous oxide gets culinary exceptions

Beginning July 1, 2026, restaurant supply companies can sell or distribute flavored nitrous oxide for food, beverages, or other culinary purposes. The exceptions also cover use in recipes and other legitimate culinary uses. Law enforcement agencies can dispose of flavored nitrous oxide by donating it to nonprofit organizations.

Unlicensed alcohol sales can trigger racketeering

The law adds selling alcohol without a permit to offenses that can count toward racketeering. A case must meet the legal pattern requirements, including at least two qualifying incidents. This expands the conduct available for racketeering enforcement.

Cigarette sellers face discount pricing limits

Beginning July 1, 2026, cigarette cost calculations must account for manufacturer-funded discounts that sellers must pass along. The manufacturer's payment plus the buyer's payment cannot fall below the applicable cost to the retailer or distributor. The law does not set a specific consumer price.

Tighter tobacco age checks and penalties

Beginning July 1, 2026, sellers must check government identification for off-premises tobacco sales when buyers are or reasonably look under 40. The identification must show age 21 or older; reckless, knowing, or intentional failures are Class C infractions. Three illegal tobacco sales to people under 21 within one year trigger a Class B infraction, down from six. Three covered entry violations within one year also trigger a Class B infraction, down from six. The entry rule covers stores where tobacco makes up at least 85% of gross sales and people under 21 cannot enter.

Sponsors & Cosponsors

Sponsor

  • Ron Alting

    Republican • Senate

Cosponsors

  • David Niezgodski

    Democratic • Senate

  • Ethan Manning

    Republican • House

  • Heath VanNatter

    Republican • House

  • Jean Leising

    Republican • Senate

  • Kyle Walker

    Republican • Senate

  • Mark Spencer

    Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 277 • No: 0

House vote • 2/27/2026

Rules Suspended. Conference Committee Report 1: adopted by the House

Yes: 95 • No: 0

Senate vote • 2/27/2026

Rules Suspended. Conference Committee Report 1: adopted by the Senate

Yes: 47 • No: 0

House vote • 2/18/2026

Third reading: passed

Yes: 90 • No: 0

Senate vote • 1/27/2026

Third reading: passed

Yes: 45 • No: 0

Actions Timeline

  1. Public Law 148

    3/12/2026Senate
  2. Signed by the Governor

    3/12/2026Senate
  3. Signed by the President Pro Tempore

    3/5/2026Senate
  4. Signed by the Speaker

    3/3/2026House
  5. Signed by the President of the Senate

    3/2/2026Senate
  6. Rules Suspended. Conference Committee Report 1: adopted by the House; Roll Call 429: yeas 95, nays 0

    2/27/2026House
  7. CCR # 1 filed in the House

    2/27/2026House
  8. CCR # 1 filed in the Senate

    2/27/2026Senate
  9. Rules Suspended. Conference Committee Report 1: adopted by the Senate; Roll Call 329: yeas 47, nays 0

    2/27/2026Senate
  10. Motion to dissent filed

    2/26/2026Senate
  11. Concurrence withdrawn

    2/26/2026Senate
  12. Senate dissented from House amendments

    2/26/2026Senate
  13. Motion to concur filed

    2/25/2026Senate
  14. Dissent rescinded

    2/25/2026Senate
  15. House advisors appointed: Manning, Lehman, Summers

    2/24/2026House
  16. House conferees appointed: VanNatter, Moed

    2/24/2026House
  17. Senate dissented from House amendments

    2/23/2026Senate
  18. Senate conferees appointed: Alting, Spencer

    2/23/2026Senate
  19. Motion to dissent filed

    2/23/2026Senate
  20. Senate advisors appointed: Niezgodski, Walker K

    2/23/2026Senate
  21. Returned to the Senate with amendments

    2/19/2026House
  22. Third reading: passed; Roll Call 272: yeas 90, nays 0

    2/18/2026House
  23. Second reading: amended, ordered engrossed

    2/17/2026House
  24. Amendment #2 (Manning) prevailed; voice vote

    2/17/2026House
  25. Committee report: amend do pass, adopted

    2/12/2026House

Bill Text

  • Engrossed Senate Bill (S)

  • Enrolled Senate Bill (S)

  • Introduced Senate Bill (S)

  • Senate Bill (H)

  • Senate Bill (S)

Related Bills

Back to State Legislation