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South DakotaHB 1220101st South Dakota Legislature (2026)House

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

Sponsored By: Sponsor information unavailable

Signed by Governor

Administrative ProcedureElectronic Smoking DevicesFundLicensurePromulgation of RulesTaxation

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 1 benefits, 2 costs, 1 mixed.

Nicotine sellers face licensing fees and rules

South Dakota nicotine resale sellers need a license for each location, unless already licensed as tobacco distributors or wholesalers. Distributors must apply to the Department of Revenue and pay $1,000 for an initial or renewal license. A $500 remainder-of-year fee applies to qualifying applicants who did not sell tobacco products before January 1. Applicants must hold a South Dakota sales and use tax license and be current on state and local taxes. Licenses generally run July 1–June 30, with a three-day extension for new-license applications received before midnight June 30. The secretary may revoke licenses for breaking state law. Selling without a required valid license or registration is a Class 1 misdemeanor.

Nicotine buyers face stricter shipping safeguards

Businesses generally cannot ship nicotine products directly to South Dakota consumers, except through the law's allowed shipping routes. Age checks and adult-signature delivery add safeguards against underage purchases but limit direct-shipping access. Sellers licensed under nicotine or tobacco law may ship alternative nicotine products for personal use, not resale. Before sale, they must verify the buyer is at least 21 using a qualifying database or government-issued ID. Before shipment, payment must come from a credit card, debit card, or check in the buyer's name. Delivery requires an in-person signature from someone at least 21 at the delivery address. Sellers must hold a South Dakota sales and use tax license and pay applicable taxes. Packages must identify the product and the required 21-or-older signature. Sellers must keep the buyer's name, address, birth date, and contact information for Department of Revenue audits and record requests. Each illegal shipment or attempted shipment carries a separate civil penalty. The first penalty is the greater of $1,000 or five times the products' retail value; later penalties use $5,000 instead. The Attorney General can seek these penalties in circuit court, in addition to other penalties and unpaid taxes. Reselling alternative nicotine products shipped through this exception is a Class 1 misdemeanor.

State gets dedicated nicotine enforcement funding

The law creates a nicotine enforcement fund administered by the South Dakota Department of Revenue. Money collected under the law, including covered license fees, goes into the fund to cover enforcement costs. The state treasurer holds the money, and interest stays in the fund. Spending must be budgeted through the general appropriation bill. The law sets no total funding amount or direct household payment.

Nicotine businesses face records and disclosure rules

Nicotine distributors must keep sales records and each product manufacturer's name and address for at least three years. They must allow Department of Revenue inspections of inventory, products, and records, and provide record copies when requested. Violations are Class 2 misdemeanors. Lists identifying specified nicotine-product and other licensees are no longer confidential, while other covered lists remain confidential. Unauthorized sharing of a confidential list is a Class 2 misdemeanor.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 143 • No: 43

House vote • 3/10/2026

Concurred in amendments

Yes: 60 • No: 7

Senate vote • 3/5/2026

Do Pass Amended

Yes: 27 • No: 7

Senate vote • 3/2/2026

Do Pass Amended

Yes: 5 • No: 2

House vote • 2/19/2026

Do Pass Amended

Yes: 40 • No: 25

House vote • 2/17/2026

Do Pass Amended

Yes: 11 • No: 2

Actions Timeline

  1. Signed by the Governor

    3/30/2026House

  2. Delivered to the Governor

    3/12/2026House

  3. Signed by the President

    3/12/2026Senate

  4. Signed by the Speaker

    3/11/2026House

  5. House of Representatives Concurred in amendments, Passed, YEAS 60, NAYS 7

    3/10/2026House

  6. Senate Do Pass Amended, Passed, YEAS 27, NAYS 7

    3/5/2026Senate

  7. Senate Motion to amend, Passed

    3/5/2026Senate

  8. Senate Health and Human Services Do Pass Amended, Passed, YEAS 5, NAYS 2

    3/2/2026Senate

  9. Senate Health and Human Services Motion to amend, Passed

    3/2/2026Senate

  10. Scheduled for hearing

    3/2/2026Senate

  11. First read in Senate and referred to Senate Health and Human Services

    2/20/2026Senate

  12. House of Representatives Do Pass Amended, Passed, YEAS 40, NAYS 25

    2/19/2026House

  13. House Health and Human Services Do Pass Amended, Passed, YEAS 11, NAYS 2

    2/17/2026House

  14. House Health and Human Services Hoghoused, Passed

    2/17/2026House

  15. Scheduled for hearing

    2/17/2026House

  16. First read in House and referred to House Health and Human Services

    1/29/2026House

Bill Text

  • Introduced

    1/29/2026

    PDF

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