PennsylvaniaHB 14252025-2026 Regular SessionHouse

An Act amending the act of April 9, 1929 (P.L.343, No.176), known as The Fiscal Code, in cigarette sales and licensing, further providing for definitions and providing for presumed cost of doing busin . . .ess by retailer; providing for tobacco products; and making repeals.

Sponsored By: Jeanne McNeill (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

16 provisions identified: 3 benefits, 9 costs, 4 mixed.

E-Cigarette Sellers Face Fines and License Loss

Retailers, wholesalers, and importers face a $500 penalty per unlisted nicotine e-cigarette product until it is removed or properly listed. A second violation within 12 months costs $750–$1,000 per product per day, plus at least a 14-day license suspension. A third violation within 12 months costs $1,000–$1,500 per product per day and brings license revocation. Manufacturers face $1,000 per unlisted product until it is removed or properly listed. False statements required for certification are third-degree misdemeanors.

Public e-cigarette listings protect business privacy

The Attorney General must publish a public directory within 120 days after the subsection takes effect. It lists certified manufacturers, brands, product types, names, and flavors, with updates at least monthly and notices to licensed sellers. Certain submitted business and financial details remain confidential, and manufacturers may redact protected information. State agencies may disclose those details only as law allows or requires. Protection excludes information made public by the FDA or manufacturer, and third-party disclosures the manufacturer has not taken legal action to stop.

Tobacco collections fund product rule enforcement

Certification fees, penalties, and recovered testing, investigation, destruction, and attorney costs go to the Tobacco Products Administration Cash Fund. Surety-bond recoveries also go to this fund through the State Treasurer. The money pays for administering and enforcing the tobacco product rules. The law sets no fixed total funding amount.

Fewer licensing requirements for tobacco retailers

The law removes listed tobacco-retailer license requirements covering premises, disclosures, compliance, state taxes, and surety bonds. Retailers still face the law's general licensing and purchasing rules. The law also repeals section 1202-A(b) of the Tax Reform Code. The supplied text does not explain that subsection's former requirements, so its separate effect is unclear.

E-cigarette makers face federal compliance checks

Nicotine e-cigarette makers must certify products sold in Pennsylvania within 60 days after the subsection takes effect, then annually. Products need FDA marketing authorization or a qualifying application accepted for filing and still under review. The application route covers products marketed as of August 8, 2016, with applications submitted by September 9, 2020. It also allows qualifying stayed, rescinded, or court-vacated denials, plus covered products changed only in name, brand style, or packaging. Makers must submit supporting documents, report material changes within 30 days, and prove compliance within 30 days after changed federal requirements become mandatory; failure to provide that proof can lead to removal from the state directory.

E-cigarette makers pay fees and post bonds

Manufacturers initially pay $2,000 per brand family plus $200 per brand style for certification. Annual fees afterward are $1,000 per family plus $100 per style. At certification, they must also post a bond of at least $50,000 from an approved Pennsylvania surety company. The Attorney General can require a larger bond and records supporting its amount; requested records are due within 30 days. The bond can cover destruction costs, penalties, costs, and fees; missing records or material misstatements can lead to certification denial or directory removal.

Foreign e-cigarette importers share legal costs

Foreign nicotine e-cigarette manufacturers must identify U.S. importers and brand families sold in Pennsylvania with their certification materials. Each importer must sign a declaration accepting Pennsylvania jurisdiction, naming an in-state legal agent, and confirming a federal permit. Importers must also agree to provide required information and accept shared liability for specified penalties and costs. Each importer can be held responsible for the full covered civil penalties, fees, costs, and attorney fees alongside the foreign manufacturer.

Outside e-cigarette makers need Pennsylvania agents

Manufacturers based outside Pennsylvania must continuously maintain an in-state agent to receive legal papers to qualify for the directory. They must give Revenue officials and the Attorney General the agent's contact information and proof of appointment. Before ending an appointment, manufacturers must give 30 calendar days' notice and prove replacement at least five calendar days before it ends. If the agent ends the appointment, manufacturers must notify the agencies within five calendar days and provide replacement proof. Without the required agent, the Secretary of State is deemed the manufacturer's agent, but that does not satisfy directory requirements.

Repeat tobacco violators face trading penalties

The Attorney General must publicly list people with at least three violations in the preceding 12 months. Listings last through the end of the 12th full calendar month after the latest violation. Selling covered nicotine e-cigarettes to a listed importer or dealer carries a $500 penalty per product. Buying them from a listed person for Pennsylvania retail sale also carries $500 per product. The same product is not penalized twice under both transaction rules, and genuine consumer purchases are exempt.

Higher Presumed Costs for Cigarette Retailers

Pennsylvania’s cigarette pricing rules presume retailers’ business costs equal 7% of their basic cigarette cost. That rate rises to 8.5% starting 60 days after the section takes effect or March 1, 2026, whichever is later. It rises to 9.5% one year after the 8.5% rate begins. Retailers can prove a different cost. A proven lower cost applies for up to 12 months before the presumed rate returns, unless the retailer proves it again.

Tighter licensing rules for tobacco businesses

Tobacco sellers, transferors, and delivery businesses need proper state licenses unless all their sales are tobacco-tax exempt. Dealer and manufacturer licenses last one year; applicants must provide accurate information, and the state can reject fronts for previously disqualified businesses. Licensed retailers must buy tobacco products, including nicotine e-cigarettes for resale, from licensed wholesalers. Manufacturers need separate licenses for each location and must meet rules on premises, finances, experience, criminal history, truthful disclosures, and compliance. They must file and pay state taxes, except taxes covered by a properly filed appeal or approved payment plan.

Tobacco wholesalers must secure larger risks

Tobacco wholesaler license applicants must post a bond of at least $25,000 from an approved Pennsylvania surety company. Revenue officials can require a larger bond to cover risks such as unpaid contraband-destruction costs. The bond can cover destruction costs, penalties, costs, and fees. Missing requested records within 30 days of written notice or misrepresenting information can lead to license denial, suspension, or revocation. If a surety requests release in writing, the wholesaler has 60 days to provide an adequate replacement bond or lose its license.

E-cigarette removals bring refunds and seizures

Before certification denial or directory removal, manufacturers get notice and 30 business days to fix problems or show eligibility. Manufacturers can seek Commonwealth Court review within 21 days of the Attorney General's determination. After removal, sellers and importers have 30 business days to sell remaining stock or return it for refunds. Manufacturers must accept returns, refund purchasers, and dispose of products lawfully; wholesalers and distributors also have an initial 120-day removal window after directory publication. Products remaining after applicable windows become contraband subject to seizure and destruction, but genuine consumer purchases cannot be seized. The person holding confiscated products pays destruction costs, which can be collected as tax liability when a bond is unavailable or insufficient.

E-cigarette sellers face checks and disclosure

Revenue officials and the Attorney General can inspect nicotine e-cigarette stock, invoices, and business records at covered Pennsylvania premises. People controlling those premises must allow authorized inspections, and sellers can receive unannounced compliance checks. Willful refusal can bring criminal penalties, fines, and costs under the tax code. Agencies can demand compliance materials, including package samples, product numbers, sales records, federal applications, and sworn proof that documents are genuine. Check results are available on request, and the Attorney General must publish results at least annually.

E-cigarette sellers face fines and correction options

Retailers and supply-chain businesses offering unlisted nicotine e-cigarettes face $500 per product; first-offense penalties can be negotiated when corrected within 30 business days after notice. A second violation within 12 months brings $750–$1,000 per day per product and at least a 14-day license suspension. A third within 12 months brings $1,000–$1,500 per day per product and license revocation. Manufacturers face $1,000 per unlisted product, and each false required statement is a third-degree misdemeanor. Falsely treating stock as out-of-state inventory and selling it to a Pennsylvania retailer brings $500 per product; violations also count as unfair or deceptive practices, with enforcement costs and attorney fees recoverable and specified duplicate penalties barred.

Tighter Rules for Nicotine E-Cigarette Sellers

Pennsylvania limits retail sales of nicotine e-cigarettes to products in the Attorney General’s public directory. The ban starts 120 days after the subsection takes effect or when the directory first becomes public, whichever is later. Retailers have 120 days after publication to sell or remove existing unlisted stock; wholesalers and distributors must remove covered stock. After that window, unlisted stock intended for Pennsylvania retail sale is subject to seizure, forfeiture, and destruction. Genuine consumer purchases are protected from seizure. Wholesalers and distributors must separate stock held only for out-of-state sales and block Pennsylvania orders for it. Retailers must buy nicotine e-cigarettes for resale from wholesalers with valid state licenses. The Attorney General can deny certification or listing for sales before certification and listing, false information, or missing requested information or federal reports. Certain final exclusions from similar state directories and failure to meet federal nicotine packaging standards are also grounds for denial.

Sponsors & Cosponsors

Sponsor

  • Jeanne McNeill

    Democratic • House

Cosponsors

  • Amen Brown

    Democratic • House

  • Arvind Venkat

    Democratic • House

  • Benjamin V. Sanchez

    Democratic • House

  • Carol Hill-Evans

    Democratic • House

  • Chad G. Reichard

    Republican • House

  • Craig Williams

    Republican • House

  • Eddie Day Pashinski

    Democratic • House

  • Gina H. Curry

    Democratic • House

  • Jim Haddock

    Democratic • House

  • Jim Rigby

    Republican • House

  • Joe Ciresi

    Democratic • House

  • Joe Kerwin

    Republican • House

  • Joe Webster

    Democratic • House

  • Jose Giral

    Democratic • House

  • Joshua D. Kail

    Republican • House

  • Kate A. Klunk

    Republican • House

  • Keith S. Harris

    Democratic • House

  • Kristin Marcell

    Republican • House

  • Kyle J. Mullins

    Democratic • House

  • Mandy Steele

    Democratic • House

  • Mark M. Gillen

    Republican • House

  • Melissa L. Shusterman

    Democratic • House

  • Michael H. Schlossberg

    Democratic • House

  • Nikki Rivera

    Democratic • House

  • Peter Schweyer

    Democratic • House

  • R. Lee James

    Republican • House

  • Robert Freeman

    Democratic • House

  • Steve Samuelson

    Democratic • House

  • Tarik Khan

    Democratic • House

  • Tim Briggs

    Democratic • House

  • Tim Twardzik

    Republican • House

  • Torren Ecker

    Affiliation unavailable

Roll Call Votes

All Roll Calls

Yes: 564 • No: 34

Senate vote • 12/9/2025

House Bill 1425 PN2675, Final Passage

Yes: 42 • No: 4

committee vote • 12/8/2025

17 0

Yes: 17 • No: 0

committee vote • 12/8/2025

17 0

Yes: 17 • No: 0

committee vote • 12/8/2025

20 1

Yes: 20 • No: 1

committee vote • 10/28/2025

14 0

Yes: 14 • No: 0

committee vote • 10/28/2025

14 0

Yes: 14 • No: 0

House vote • 6/23/2025

House Bill 1425 PN1950, FINAL PASSAGE

Yes: 180 • No: 23

committee vote • 6/23/2025

36 1

Yes: 36 • No: 1

House vote • 6/17/2025

House Bill 1425 PN1660 A01148

Yes: 199 • No: 4

committee vote • 5/14/2025

25 1

Yes: 25 • No: 1

Actions Timeline

  1. Act No. 57 of 2025

    12/22/2025Governor
  2. Approved by the Governor

    12/22/2025Governor
  3. Presented to the Governor

    12/18/2025House
  4. Signed in Senate

    12/17/2025House
  5. Signed in House

    12/16/2025House
  6. House concurred in Senate amendments (147-56)

    12/16/2025House
  7. Re-reported on concurrence, as committed

    12/16/2025House
  8. Referred to Rules

    12/15/2025House
  9. Third consideration and final passage (42-4)

    12/9/2025Senate
  10. Re-reported as amended

    12/8/2025Senate
  11. Re-referred to Rules & Executive Nominations

    12/8/2025Senate
  12. Re-reported as committed

    12/8/2025Senate
  13. Re-referred to Appropriations

    11/19/2025Senate
  14. Second consideration

    11/19/2025Senate
  15. First consideration

    10/28/2025Senate
  16. Reported as amended

    10/28/2025Senate
  17. Referred to Judiciary

    6/24/2025Senate
  18. Third consideration and final passage (180-23)

    6/23/2025House
  19. Re-reported as committed

    6/23/2025House
  20. Re-committed to Appropriations

    6/17/2025House
  21. Second consideration, with amendments

    6/17/2025House
  22. Removed from table

    6/10/2025House
  23. Laid on the table

    5/14/2025House
  24. First consideration

    5/14/2025House
  25. Reported as committed

    5/14/2025House

Bill Text

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