Amends and adds to existing law to establish certain permitting requirements regarding the sale of certain nicotine products, to revise provisions regarding the regulation of certain nicotine products, and to impose a tax on certain nicotine and related products.

LEGISLATURE OF THE STATE OF IDAHO
Sixty-eighth Legislature Second Regular Session - 2026
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 884
BY REVENUE AND TAXATION COMMITTEE
AN ACT	1
RELATING TO NICOTINE PRODUCTS; AMENDING THE HEADING FOR CHAPTER 57, TITLE	2
39, IDAHO CODE; AMENDING SECTION 39-5702, IDAHO CODE, TO DEFINE TERMS	3
AND TO REVISE A DEFINITION; AMENDING SECTION 39-5703, IDAHO CODE, TO RE-	4
VISE PROVISIONS REGARDING POSSESSION, DISTRIBUTION, OR USE BY A MINOR;	5
AMENDING SECTION 39-5704, IDAHO CODE, TO PROVIDE FOR CERTAIN PERMIT-	6
TING AND TO PROVIDE PENALTIES; AMENDING CHAPTER 57, TITLE 39, IDAHO	7
CODE, BY THE ADDITION OF A NEW SECTION 39-5704A, IDAHO CODE, TO ESTAB-	8
LISH PROVISIONS REGARDING SALES BETWEEN PERMITTED PERSONS OR ENTITIES	9
ONLY; AMENDING CHAPTER 57, TITLE 39, IDAHO CODE, BY THE ADDITION OF A	10
NEW SECTION 39-5704B, IDAHO CODE, TO ESTABLISH PROVISIONS REGARDING THE	11
PERMITS REQUIRED FOR MANUFACTURERS OF ALTERNATIVE NICOTINE PRODUCTS,	12
TOBACCO PRODUCTS, AND ELECTRONIC SMOKING DEVICES; AMENDING CHAPTER	13
57, TITLE 39, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 39-5704C,	14
IDAHO CODE, TO ESTABLISH PROVISIONS REGARDING AGENTS FOR SERVICE OF	15
PROCESS; AMENDING CHAPTER 57, TITLE 39, IDAHO CODE, BY THE ADDITION OF	16
A NEW SECTION 39-5704D, IDAHO CODE, TO ESTABLISH PROVISIONS REGARD-	17
ING THE BOND REQUIREMENT FOR NONRESIDENT OR FOREIGN MANUFACTURERS OF	18
ELECTRONIC SMOKING DEVICES; AMENDING CHAPTER 57, TITLE 39, IDAHO CODE,	19
BY THE ADDITION OF A NEW SECTION 39-5704E, IDAHO CODE, TO ESTABLISH	20
PROVISIONS REGARDING CERTAIN PENALTIES; AMENDING SECTION 39-5705,	21
IDAHO CODE, TO PROHIBIT THE SALE OF ALTERNATIVE NICOTINE PRODUCTS TO	22
MINORS; AMENDING SECTION 39-5706, IDAHO CODE, TO PROVIDE THAT ALTERNA-	23
TIVE NICOTINE PRODUCTS MAY BE SOLD ONLY THROUGH VENDOR-ASSISTED SALES;	24
AMENDING SECTION 39-5707, IDAHO CODE, TO REVISE PROVISIONS REGARDING	25
OPENED PACKAGES AND SAMPLES; AMENDING SECTION 39-5708, IDAHO CODE, TO	26
REVISE PROVISIONS REGARDING CERTAIN CIVIL PENALTIES FOR VIOLATIONS OF	27
A PERMIT; AMENDING SECTION 39-5709, IDAHO CODE, TO REVISE PROVISIONS	28
REGARDING CERTAIN CRIMINAL PENALTIES FOR VIOLATIONS WITHOUT A PERMIT;	29
AMENDING SECTION 39-5710, IDAHO CODE, TO REVISE PROVISIONS REGARDING	30
THE CONDUCT OF CERTAIN ENFORCEMENT ACTIONS; AMENDING SECTION 39-5711,	31
IDAHO CODE, TO REVISE PROVISIONS REGARDING FUNDING; AMENDING SECTION	32
39-5713, IDAHO CODE, TO REVISE PROVISIONS REGARDING LOCAL ORDINANCES;	33
AMENDING SECTION 39-5714, IDAHO CODE, TO REVISE PROVISIONS REGARD-	34
ING REQUIREMENTS FOR DELIVERY SALES; AMENDING SECTION 39-5715, IDAHO	35
CODE, TO REVISE PROVISIONS REGARDING AGE VERIFICATION REQUIREMENTS;	36
AMENDING SECTION 39-5717, IDAHO CODE, TO REVISE PROVISIONS REGARDING	37
SHIPPING REQUIREMENTS; AMENDING SECTION 39-5718, IDAHO CODE, TO RE-	38
VISE PROVISIONS REGARDING REGISTRATION AND REPORTING REQUIREMENTS;	39
AMENDING SECTION 39-8421, IDAHO CODE, TO PROVIDE A CORRECT CODE REFER-	40
ENCE; AMENDING SECTION 56-227F, IDAHO CODE, TO PROVIDE A CORRECT CODE	41
REFERENCE; AMENDING THE HEADING FOR CHAPTER 25, TITLE 63, IDAHO CODE;	42
AMENDING SECTION 63-2551, IDAHO CODE, TO REVISE DEFINITIONS AND TO	43
DEFINE TERMS; AMENDING SECTION 63-2552B, IDAHO CODE, TO REVISE PROVI-	44
SIONS REGARDING USE TAXES; AMENDING CHAPTER 25, TITLE 63, IDAHO CODE,	45

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2
BY THE ADDITION OF A NEW SECTION 63-2552C, IDAHO CODE, TO PROVIDE FOR	1
A TAX ON THE SALE OF ALTERNATIVE NICOTINE PRODUCTS AND VAPOR PRODUCTS	2
AND TO PROVIDE FOR THE DISTRIBUTION CERTAIN REVENUE; AMENDING SECTION	3
63-2553, IDAHO CODE, TO REVISE LEGISLATIVE INTENT; AMENDING SECTION	4
63-2554, IDAHO CODE, TO REVISE PROVISIONS REGARDING PERMITS REQUIRED;	5
AMENDING SECTION 63-2555, IDAHO CODE, TO REVISE PROVISIONS REGARDING	6
BOOKS AND RECORDS TO BE PRESERVED AND ENTRY AND INSPECTION BY THE STATE	7
TAX COMMISSION; AMENDING SECTION 63-2556, IDAHO CODE, TO REVISE PROVI-	8
SIONS REGARDING THE PRESERVATION OF INVOICES OF SALES; AMENDING SECTION	9
63-2557, IDAHO CODE, TO REVISE A PROVISION REGARDING INVOICES; AMENDING	10
SECTION 63-2558, IDAHO CODE, TO REVISE PROVISIONS REGARDING RECORDS;	11
AMENDING SECTION 63-2559, IDAHO CODE, TO REVISE PROVISIONS REGARDING	12
WHEN CREDIT MAY BE OBTAINED FOR TAX PAID; AMENDING SECTION 63-2563,	13
IDAHO CODE, TO REVISE PROVISIONS REGARDING COLLECTION AND ENFORCEMENT;	14
AMENDING SECTION 63-2565, IDAHO CODE, TO REVISE A PROVISION REGARDING	15
REFUNDS; AND DECLARING AN EMERGENCY AND PROVIDING AN EFFECTIVE DATE.	16
Be It Enacted by the Legislature of the State of Idaho:	17
SECTION 1. That the Heading for Chapter 57, Title 39, Idaho Code, be,	18
and the same is hereby amended to read as follows:	19
CHAPTER 57	20
PREVENTION OF MINORS' ACCESS TO ALTERNATIVE NICOTINE PRODUCTS, TOBACCO	21
PRODUCTS, OR ELECTRONIC SMOKING DEVICES	22
SECTION 2. That Section 39-5702, Idaho Code, be, and the same is hereby	23
amended to read as follows:	24
39-5702. DEFINITIONS. The terms used in this chapter are defined as	25
follows:	26
(1) "Alternative nicotine product" means a noncombustible product	27
that contains nicotine or a nicotine analog, whether natural or synthetic,	28
but does not contain tobacco and is intended for human consumption, whether	29
chewed, absorbed, dissolved, ingested, or by other means. This term shall	30
not include a vapor product, tobacco product, or any product regulated by the	31
United States food and drug administration under chapter V of the federal	32
food, drug, and cosmetic act.	33
(1) (2) "Business" means any company, partnership, firm, sole propri-	34
etorship, association, corporation, organization, or other legal entity, or	35
a representative of the foregoing entities.	36
(2) (3) "Delivery sale" means to distribute tobacco products or elec-	37
tronic smoking devices to a consumer in a state where either:	38
(a) The individual submits the order for such sale by means of a	39
telephonic or other method of voice transmission, data transfer via	40
computer networks, including the internet and other online services, or	41
facsimile, or the mails; or	42
(b) The tobacco products or electronic smoking devices are delivered by	43
use of the mails or a delivery service.	44
(3) (4) "Delivery service" means any person who is engaged in the com-	45
mercial delivery of letters, packages or other containers.	46

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3
(4) (5) "Department" means the state department of health and welfare	1
or its duly authorized representative.	2
(5) (6) "Distribute" means to give, deliver, sell, offer to give, offer	3
to deliver, offer to sell or cause any person to do the same or hire any person	4
to do the same.	5
(7) "Distributor" means:	6
(a) Any person engaged in the business of selling alternative nicotine	7
products, tobacco products, or electronic smoking devices in this state	8
who brings, or causes to be brought, into this state from outside the	9
state any such products for sale;	10
(b) Any person who makes, manufactures, or fabricates alternative	11
nicotine products, tobacco products, or electronic smoking devices in	12
this state for sale in this state; and	13
(c) Any person engaged in the business of selling alternative nicotine	14
products, tobacco products, or electronic smoking devices outside this	15
state who ships or transports such products to retailers in this state	16
to be sold by those retailers.	17
(8) "Electronic smoking device" means any nonlighted, noncombustible	18
product that employs a mechanical heating element, battery, or electronic	19
circuit regardless of shape or size and that can be used to produce vapor	20
from nicotine or a nicotine analog, however derived, in a solution. The term	21
includes any vapor cartridge or other container of nicotine in a solution or	22
other form that is intended to be used with or in an electronic cigarette,	23
electronic cigar, electronic cigarillo, electronic pipe, or similar product	24
or device. The term does not include any product regulated by the United	25
States food and drug administration under chapter V of the federal food,	26
drug, and cosmetic act.	27
(6) (9) "Location" means the street address where tobacco or electronic	28
smoking device products are sold or the uniform resource locator for retail-	29
ers who sell tobacco or electronic smoking products exclusively via the in-	30
ternet.	31
(10) "Manufacturer" means a person who manufactures and sells alterna-	32
tive nicotine products, tobacco products, or electronic smoking devices.	33
(7) (11) "Minor" means a person under twenty-one (21) years of age.	34
(8) (12) "Minor-exempt permit" means a permittee location whose rev-	35
enues from the sale of alcoholic beverages for on-site consumption comprises	36
at least fifty-five percent (55%) of total revenues, or whose products and	37
services are primarily obscene, pornographic, profane, or sexually ori-	38
ented, is exempt from inspections assisted by a minor, if minors are not	39
allowed in the location and such prohibition is posted clearly on all en-	40
trance doors.	41
(13)(a) "Nicotine analog" means a substance:	42
(i) The chemical structure of which is substantially similar to	43
the chemical structure of nicotine; or	44
(ii) That has, purports to have, or is represented to have, an ef-	45
fect on the central nervous system that is similar to or greater	46
than the effect on the central nervous system as nicotine.	47
(b) Factors relevant to determining whether a substance is a nicotine	48
analog include but are not limited to the marketing, advertising, and	49
labeling of the substance and whether the substance has been manufac-	50

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4
tured, formulated, sold, distributed, or marketed with the intent to	1
avoid the provisions of this chapter and other provisions of law.	2
(9) (14) "Permit" means a permit issued by the department for the sale or	3
distribution of tobacco products or electronic smoking devices.	4
(10) (15) "Permit endorsement" means a sale or delivery method used by	5
the permittee to sell tobacco or electronic smoking device products, includ-	6
ing delivery sales, delivery service, and direct sales.	7
(11) (16) "Permittee" means the holder of a valid permit for the sale or	8
distribution of tobacco products or electronic smoking devices.	9
(12) (17) "Photographic identification" means state, district, terri-	10
torial, possession, provincial, national or other equivalent government	11
driver's license, identification card or military card, in all cases bearing	12
a photograph and a date of birth, or a valid passport.	13
(13) (18) "Random, unannounced inspection" means an inspection of re-	14
tail outlets by a law enforcement agency or by the department, with or with-	15
out the assistance of a minor, to monitor compliance of this chapter.	16
(19) "Retailer" means any person engaged in the business of selling	17
alternative nicotine products, tobacco products, or electronic smoking de-	18
vices to ultimate consumers.	19
(14) (20) "Seller" means the person who physically sells or distributes	20
tobacco products or electronic smoking devices.	21
(15) (21)(a) "Tobacco product or electronic smoking device" means:	22
(i) Any substance containing, made of, or derived from tobacco	23
or nicotine that is intended for human consumption or is likely to	24
be consumed, whether inhaled, absorbed, or ingested by any other	25
means, including but not limited to cigarettes, cigars, pipes,	26
snuff, smoking or chewing tobacco, snus, tobacco papers, or smoke-	27
less tobacco; or	28
(ii) Any electronic smoking device that may be used to deliver an	29
aerosolized or a vaporized substance to the person inhaling from	30
the device, including but not limited to an electronic cigarette,	31
an electronic cigar, an electronic pipe, a vape pen, or an elec-	32
tronic hookah, or any component, part, or accessory of such a	33
device, or any substance intended to be aerosolized or vaporized	34
during use of the device, whether or not the substance contains	35
nicotine, or any heated or lighted device intended to be used for	36
inhalation; or	37
(iii) (ii) Any components, parts, or accessories of a tobacco	38
product or an electronic smoking device, whether or not they con-	39
tain tobacco or nicotine, including but not limited to filters,	40
rolling papers, blunt or hemp wraps, and pipes, whether manufac-	41
tured, distributed, marketed, or sold as an electronic cigarette,	42
electronic cigar, electronic hookah, or vape pen, or under any	43
other product name or descriptor.	44
(b) The term "tobacco product or electronic smoking device" does not	45
include alternative nicotine products or drugs, devices, or combina-	46
tions of products authorized for sale by the United States food and drug	47
administration as those terms are defined in the federal food, drug, and	48
cosmetic act.	49

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5
(16) (22) "Vending machine" means any mechanical, electronic, or other	1
similar device that, upon the insertion of tokens, money or any other form of	2
payment, dispenses tobacco products or electronic smoking devices.	3
(17) (23) "Vendor-assisted sales" means any sale or distribution in	4
which the customer has no access to the product except through the assistance	5
of the seller.	6
(18) (24) "Without a permit" means a business that has failed to obtain a	7
permit or a business whose permit is suspended or revoked.	8
SECTION 3. That Section 39-5703, Idaho Code, be, and the same is hereby	9
amended to read as follows:	10
39-5703. POSSESSION, DISTRIBUTION, OR USE BY A MINOR. (1) It shall	11
be unlawful for a minor to possess, receive, purchase, use, or consume	12
alternative nicotine products, tobacco products, or electronic smoking de-	13
vices or to attempt any of the foregoing.	14
(2) It shall be unlawful for a minor to sell or distribute alternative	15
nicotine products, tobacco products, or electronic smoking devices or to at-	16
tempt either of the foregoing.	17
(3) It shall be unlawful for a minor to provide false identification	18
or make any false statement regarding their age in an attempt to obtain	19
alternative nicotine products, tobacco products, or electronic smoking de-	20
vices.	21
(4) A minor who is assisting with a random unannounced inspection in ac-	22
cordance with this chapter shall not be in violation of this chapter.	23
(5) A minor may possess but not sell or distribute alternative nico-	24
tine products, tobacco products, or electronic smoking devices in the course	25
of employment, for duties such as stocking shelves or carrying purchases to	26
customers' vehicles.	27
(6) Penalties for violations by a minor. A violation of subsection (1)	28
of this section by a minor shall constitute an infraction and shall be pun-	29
ishable by a fine of seventeen dollars and fifty cents ($17.50). The first	30
violation of subsection (2) or (3) of this section by a minor shall consti-	31
tute an infraction and shall be punishable by a fine of two hundred dollars	32
($200). A subsequent violation of subsection (2) or (3) of this section by a	33
minor shall constitute a misdemeanor and shall be punishable by imprisonment	34
in an appropriate facility not exceeding thirty (30) days, a fine not exceed-	35
ing three hundred dollars ($300), or both such fine and imprisonment. The	36
court may, in addition to the penalties provided in this section, require the	37
minor and, if the minor is under eighteen (18) years of age, the minor's par-	38
ents or legal guardian to attend alternative nicotine product, tobacco prod-	39
uct, or and electronic smoking device awareness programs or to perform com-	40
munity service in programs related to alternative nicotine product, tobacco	41
product, or and electronic smoking device awareness.	42
SECTION 4. That Section 39-5704, Idaho Code, be, and the same is hereby	43
amended to read as follows:	44
39-5704. PERMITTING OF ALTERNATIVE NICOTINE PRODUCTS, TOBACCO PROD-	45
UCTS, OR AND ELECTRONIC SMOKING DEVICES RETAILERS. (1) It shall be unlawful	46
to sell or distribute or offer alternative nicotine products, tobacco prod-	47

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6
ucts, or electronic smoking devices for sale or distribution at retail or	1
to possess alternative nicotine products, tobacco products, or electronic	2
smoking devices with the intention of selling at retail without having first	3
obtained a tobacco product or electronic smoking device permit from the	4
department, which shall be the only retail alternative nicotine products,	5
tobacco product, or electronic smoking device permit or license required.	6
Provided however, this section shall not be deemed to require a wholesaler	7
or manufacturer's representative or employees who, in the course of their	8
employment, stock shelves and replenish alternative nicotine products,	9
tobacco products, or electronic smoking devices at a permittee's place of	10
business to obtain a permit.	11
(2) The department shall administer the permitting of alternative	12
nicotine product, tobacco product, or electronic smoking device retailers	13
and shall be authorized to ensure compliance with this chapter.	14
(3) Permits shall be issued annually for each permanent business loca-	15
tion to ensure compliance with the requirements of this chapter. A copy of	16
signage required by this chapter, and any other materials deemed necessary	17
shall be provided with each permit issued.	18
(4) A separate permit must be obtained for each place of business and is	19
nontransferable to another person, business, or location.	20
(5) The applicant shall select one (1) or more permit endorsements and	21
make the permit available upon request.	22
(6) A permittee may display a sign in each location within a place of	23
business where alternative nicotine products, tobacco products, or elec-	24
tronic smoking devices are sold or distributed. A sign may be clearly	25
visible to the customer and the seller and shall state: "STATE LAW PROHIBITS	26
THE SALE OF ALTERNATIVE NICOTINE PRODUCTS, TOBACCO PRODUCTS, OR ELECTRONIC	27
SMOKING DEVICES TO PERSONS UNDER THE AGE OF TWENTY-ONE (21) YEARS. PROOF OF	28
AGE REQUIRED. ANYONE WHO SELLS OR DISTRIBUTES ALTERNATIVE NICOTINE PROD-	29
UCTS, TOBACCO PRODUCTS, OR ELECTRONIC SMOKING DEVICES TO A PERSON UNDER	30
THE AGE OF TWENTY-ONE (21) YEARS IS SUBJECT TO STRICT FINES AND PENALTIES.	31
PERSONS UNDER THE AGE OF TWENTY-ONE (21) YEARS ARE SUBJECT TO FINES AND	32
PENALTIES."	33
(7) Permittees are responsible to educate employees as to the require-	34
ments of this chapter and retain forms signed by each employee stating that	35
the employee understands such requirements.	36
(8) It shall be unlawful for the permittee to allow employees who are	37
minors to sell or distribute alternative nicotine products, tobacco prod-	38
ucts, or electronic smoking devices, except as provided in this subsection.	39
Employees who are minors may possess but not sell or distribute alternative	40
nicotine products, tobacco products, or electronic smoking devices in the	41
course of employment, for such duties as stocking shelves or carrying pur-	42
chases to customers' vehicles, and employees who are eighteen (18) years	43
to twenty (20) years of age may sell or distribute alternative nicotine	44
products, tobacco products, or electronic smoking devices in the course and	45
scope of their employment.	46
(9) A permit shall be closed when the permittee closes the business, no	47
longer sells alternative nicotine products, tobacco products, or electronic	48
smoking device products devices, moves to a different physical location, or	49
sells the business.	50

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7
(10) A permit shall be revoked when it is determined that a permit was	1
fraudulently obtained to avoid penalties on an existing permit.	2
(11) All permits expire annually at midnight on December 31 unless re-	3
newed. The department shall mail notice of renewal for permits at least	4
ninety (90) days prior to expiration.	5
(12) The department may deny an application and refuse to issue or renew	6
a permit or may suspend or revoke a permit issued to any person, partnership,	7
corporation, limited liability company, or business trust upon determining	8
that the licensee or the principals or managers at the permitted location of	9
the applicant or permittee have been:	10
(a) Found guilty of any fraud or misrepresentation in connection with	11
an application filed pursuant to this section;	12
(b) Convicted of robbery, extortion, burglary, larceny, embezzlement,	13
fraudulent conversion, gambling, perjury, bribery, treason, tax eva-	14
sion, or racketeering; or	15
(c) Convicted of a felony within the last five (5) years.	16
(13) The department may deny an application and refuse to issue or renew	17
a permit if there is a reasonable basis to determine the application is filed	18
by a person as subterfuge for a different party of interest whose permit has	19
previously been denied, canceled, or revoked for cause or a violation under	20
this chapter.	21
SECTION 5. That Chapter 57, Title 39, Idaho Code, be, and the same is	22
hereby amended by the addition thereto of a NEW SECTION, to be known and des-	23
ignated as Section 39-5704A, Idaho Code, and to read as follows:	24
39-5704A. SALES BETWEEN PERMITTED PERSONS OR ENTITIES ONLY. (1) Dis-	25
tributors and retailers shall purchase alternative nicotine products, to-	26
bacco products, and electronic smoking devices only from a manufacturer or	27
distributor who has obtained a permit under chapter 25, title 63, Idaho Code,	28
and shall verify that such seller holds a valid permit before making a pur-	29
chase.	30
(2) Manufacturers and distributors shall sell alternative nicotine	31
products, tobacco products, and electronic smoking devices only to a dis-	32
tributor or retailer who has obtained a permit under this chapter or chapter	33
25, title 63, Idaho Code, and shall verify that the purchaser holds a valid	34
permit before making a sale.	35
SECTION 6. That Chapter 57, Title 39, Idaho Code, be, and the same is	36
hereby amended by the addition thereto of a NEW SECTION, to be known and des-	37
ignated as Section 39-5704B, Idaho Code, and to read as follows:	38
39-5704B. PERMITTING OF MANUFACTURERS OF ALTERNATIVE NICOTINE PROD-	39
UCTS, TOBACCO PRODUCTS, AND ELECTRONIC SMOKING DEVICES. (1) Every manufac-	40
turer of alternative nicotine products, tobacco products, and electronic	41
smoking devices that are sold in this state, whether directly or through a	42
distributor, retailer, or similar intermediary shall obtain from the de-	43
partment a manufacturer permit. A manufacturer of alternative nicotine	44
products, tobacco products, or electronic smoking devices that already	45
holds a wholesaler or distributor permit shall also separately obtain a man-	46
ufacturer permit. The permit is nontransferable.	47

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8
(2) Each application for a manufacturer permit shall be accompanied by	1
such information as the department may require for the purpose of adminis-	2
tering this chapter, and by a one-time fee of fifty dollars ($50.00).	3
(3) A person or entity that obtains a permit under this chapter has es-	4
tablished minimum contacts with the state and consents to the exercise of	5
personal jurisdiction over the person or entity in the courts of this state	6
in any matter or issue arising under this chapter or related to the sale or	7
distribution of alternative nicotine products, tobacco products, and elec-	8
tronic smoking devices.	9
(4) The department shall maintain a website that identifies all per-	10
mitted entities, including information regarding permits that have been re-	11
voked or suspended.	12
SECTION 7. That Chapter 57, Title 39, Idaho Code, be, and the same is	13
hereby amended by the addition thereto of a NEW SECTION, to be known and des-	14
ignated as Section 39-5704C, Idaho Code, and to read as follows:	15
39-5704C. AGENT FOR SERVICE OF PROCESS. (1) Any nonresident or foreign	16
manufacturer of electronic smoking devices that has not registered to do	17
business in this state as a foreign corporation or business entity shall,	18
as a condition to receiving an electronic smoking device permit under this	19
chapter, appoint and continually engage without interruption the services	20
of an agent in this state to act as agent for the service of process on whom	21
all process, and any action or proceeding against such manufacturer con-	22
cerning or arising out of the enforcement of this chapter, may be served in	23
any manner authorized by law. Such service shall constitute legal and valid	24
service of process on the manufacturer. The manufacturer shall provide the	25
name, address, telephone number, and proof of the appointment and availabil-	26
ity of such agent to the department.	27
(2) The electronic smoking device manufacturer shall provide notice to	28
the department thirty (30) calendar days prior to termination of the author-	29
ity of an agent and shall further provide proof to the satisfaction of the	30
department of the appointment of a new agent no less than five (5) calendar	31
days prior to the termination of an existing agent appointment. In the event	32
an agent terminates an agency appointment, the manufacturer shall notify the	33
department of the termination within five (5) calendar days and shall in-	34
clude proof to the satisfaction of the department of the appointment of a new	35
agent.	36
(3) Any electronic smoking device manufacturer whose products are	37
sold in this state without appointing or designating an agent as required	38
in this section shall be deemed to have appointed the secretary of state as	39
such agent and may be proceeded against in courts of this state by service of	40
process upon the secretary of state; however, the appointment of the secre-	41
tary of state as such agent shall not satisfy the condition for obtaining an	42
electronic smoking device manufacturer permit.	43
SECTION 8. That Chapter 57, Title 39, Idaho Code, be, and the same is	44
hereby amended by the addition thereto of a NEW SECTION, to be known and des-	45
ignated as Section 39-5704D, Idaho Code, and to read as follows:	46

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39-5704D. BOND REQUIREMENT FOR NONRESIDENT OR FOREIGN MANUFACTURERS	1
OF ELECTRONIC SMOKING DEVICES. (1) Any nonresident or foreign manufacturer	2
of electronic smoking devices that has not registered to do business in	3
the state as a foreign corporation or business entity shall, as a condition	4
precedent to receiving an electronic smoking device permit, submit to the	5
department a surety bond or other cash security payable to the state in the	6
amount of twenty-five thousand dollars ($25,000). The bond shall be posted	7
by a corporate surety located within the United States. Whenever it is the	8
opinion of the department that the bond given by a permittee is inadequate	9
in amount to fully protect the state, the department shall require an addi-	10
tional bond in such amount as the department deems sufficient.	11
(2) The bond shall be conditioned on the performance by the electronic	12
smoking device manufacturer of all requirements and obligations imposed by	13
this section. A surety on a manufacturer's bond shall be liable up to the	14
amount of the bond, and the state may execute on such surety bond for the pay-	15
ment of fines and penalties imposed on the manufacturer under this chapter	16
and for the costs of seizure and destruction of products sold in violation of	17
this chapter. If the state executes on the surety bond, it may require the	18
manufacturer to provide an additional bond as a condition precedent for re-	19
taining the electronic smoking device manufacturer permit.	20
(3) A surety on a bond furnished by an electronic smoking device manu-	21
facturer as provided in this section shall be released and discharged from	22
liability to the state accruing on the bond after expiration of sixty (60)	23
days from the date upon which such surety lodges with the department a writ-	24
ten request to be released and discharged. This provision shall not operate	25
to relieve, release, or discharge the surety from liability already accrued	26
or that accrues before the expiration of the sixty (60) day period. The de-	27
partment shall, upon receiving any such request, notify the manufacturer who	28
furnished the bond. Unless the manufacturer, on or before the expiration	29
of the sixty (60) day period, files with the department a new bond, with the	30
surety approved by and acceptable to the department, the department shall	31
cancel the manufacturer's electronic smoking device manufacturer permit.	32
SECTION 9. That Chapter 57, Title 39, Idaho Code, be, and the same is	33
hereby amended by the addition thereto of a NEW SECTION, to be known and des-	34
ignated as Section 39-5704E, Idaho Code, and to read as follows:	35
39-5704E. PENALTIES. (1) Any person who violates any of the provisions	36
of sections 39-5704A through 39-5704D, Idaho Code, shall be subject to the	37
following penalties:	38
(a) In the case of a first violation, a fine of five hundred dollars	39
($500) per product purchased, sold, or manufactured in violation of	40
such sections.	41
(b) In the case of a second violation in a two (2) year period, a fine of	42
one thousand dollars ($1,000) per product purchased, sold, or manufac-	43
tured in violation of such sections, and if the violator holds a permit,	44
the permit shall be suspended for seven (7) days.	45
(c) In the case of a third violation in a two (2) year period, a fine of	46
two thousand dollars ($2,000) per product purchased, sold, or manufac-	47
tured in violation of such sections, and if the violator holds a permit,	48
the permit shall be suspended for thirty (30) days.	49

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10
(d) In the case of a fourth violation in a two (2) year period, a fine of	1
five thousand dollars ($5,000) per product purchased, sold, or manufac-	2
tured in violation of such sections, and if the violator holds a permit,	3
the permit shall be revoked.	4
(2) A second or subsequent violation of the provisions of sections	5
39-5704A through 39-5704D, Idaho Code, constitutes an unfair and deceptive	6
act or practice pursuant to chapter 6, title 48, Idaho Code.	7
(3) Any electronic smoking devices offered for sale in violation of the	8
provisions of this chapter are hereby declared to be contraband goods and	9
may be seized by the department or an employee of the department, or by any	10
peace officer when directed by the department, without a warrant. Said elec-	11
tronic smoking devices seized shall be destroyed or otherwise permanently	12
disposed of and shall not be subject to resale. Fifteen (15) days' notice of	13
the destruction or disposal shall be given. The cost of such seizure and de-	14
struction or disposal shall be borne by the person from whom the products are	15
seized.	16
SECTION 10. That Section 39-5705, Idaho Code, be, and the same is hereby	17
amended to read as follows:	18
39-5705. SALE OR DISTRIBUTION OF ALTERNATIVE NICOTINE PRODUCTS, TO-	19
BACCO PRODUCTS, OR ELECTRONIC SMOKING DEVICES TO A MINOR. (1) It shall be un-	20
lawful to sell, distribute, or offer alternative nicotine products, tobacco	21
products, or electronic smoking devices to a minor.	22
(2) It shall be an affirmative defense that the seller of an alternative	23
nicotine product, a tobacco product, or an electronic smoking device to a mi-	24
nor in violation of this section had requested, examined, and reasonably re-	25
lied upon a photographic identification from such person establishing that	26
the person is at least twenty-one (21) years of age prior to selling such	27
person an alternative nicotine product, a tobacco product, or an electronic	28
smoking device. The failure of a seller to request and examine photographic	29
identification from a person under twenty-one (21) years of age prior to the	30
sale of an alternative nicotine product, a tobacco product, or an electronic	31
smoking device to such person shall be construed against the seller and form	32
a conclusive basis for the seller's violation of this section.	33
SECTION 11. That Section 39-5706, Idaho Code, be, and the same is hereby	34
amended to read as follows:	35
39-5706. VENDOR-ASSISTED SALES. (1) It shall be unlawful to sell or	36
distribute alternative nicotine products, tobacco products, or electronic	37
smoking devices by any means other than vendor-assisted sales where the	38
customer has no access to the product except through the assistance of the	39
seller.	40
(2) It shall be unlawful to sell or distribute alternative nicotine	41
products, tobacco products, or electronic smoking devices from vending ma-	42
chines or self-service displays.	43
(3) Stores with alternative nicotine products, tobacco products, or	44
electronic smoking devices comprising at least seventy-five percent (75%)	45
of total merchandise are exempt from requiring vendor-assisted sales if mi-	46

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11
nors are not allowed in the store and such prohibition is posted clearly on	1
all entrance doors.	2
SECTION 12. That Section 39-5707, Idaho Code, be, and the same is hereby	3
amended to read as follows:	4
39-5707. OPENED PACKAGES AND SAMPLES. (1) It shall be unlawful to sell	5
or distribute alternative nicotine products, tobacco products, or elec-	6
tronic smoking devices for commercial purposes other than in the federally	7
required sealed package provided by the manufacturer with all the required	8
warning labels and health warnings.	9
(2) It shall be unlawful to sell or distribute alternative nicotine	10
products, tobacco products, or electronic smoking devices for free or below	11
the cost of such products to the sellers or distributors of the products for	12
commercial or promotional purposes to members of the general public in pub-	13
lic places or at public events.	14
SECTION 13. That Section 39-5708, Idaho Code, be, and the same is hereby	15
amended to read as follows:	16
39-5708. CIVIL PENALTIES FOR VIOLATIONS OF PERMIT. (1) Any permittee	17
who fails to comply with any part of this chapter regarding the sale or dis-	18
tribution of alternative nicotine products, tobacco products, or electronic	19
smoking devices shall be subject to a civil penalty as provided in this sec-	20
tion or have their permit suspended, pursuant to compliance with the con-	21
tested case provisions of the Idaho administrative procedure act, chapter	22
52, title 67, Idaho Code, or both.	23
(2) If a seller who is not a permittee violates section 39-5705, Idaho	24
Code, and sells or distributes alternative nicotine products, tobacco prod-	25
ucts, or electronic smoking devices to a minor, then the seller shall be	26
fined one hundred dollars ($100).	27
(3) In the case of a first violation, the permittee shall be notified in	28
writing of penalties to be levied for further violations.	29
(4) In the case of a second violation, the permittee shall be fined two	30
hundred dollars ($200) and shall be notified in writing of penalties to be	31
levied for further violations. For a violation of section 39-5705, Idaho	32
Code, the permittee shall not be fined if the permittee can show that a train-	33
ing program was in place for the employee and that the permittee has a form	34
signed by that employee on file stating that the employee understands the	35
alternative nicotine product, tobacco product, or electronic smoking device	36
laws dealing with minors and the unlawful purchase of alternative nicotine	37
products, tobacco products, or electronic smoking devices, but the permit-	38
tee shall be notified in writing of penalties to be levied for any further vi-	39
olations. If no such training is in place, the permittee shall be fined two	40
hundred dollars ($200).	41
(5) In the case of a third violation in a two (2) year period, the	42
permittee shall be fined two hundred dollars ($200) and the permit may be	43
suspended for up to seven (7) days. If the violation is by an employee, at the	44
same location, who was involved in any previous citation for violation, the	45
permittee shall be fined four hundred dollars ($400). Effective training	46
and employment practices by the permittee, as determined by the department,	47

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12
shall be a mitigating factor in determining permit suspension. Evidence of	1
mitigating factors shall be submitted to the department within ten (10) days	2
of the date of violation. Tobacco Alternative nicotine product, tobacco	3
product, or electronic smoking device retailers must remove all alternative	4
nicotine products, tobacco products, or electronic smoking devices from all	5
areas accessible to or visible to the public while the permit is suspended.	6
(6) In the case of four (4) or more violations within a two (2) year pe-	7
riod, the permittee shall be fined four hundred dollars ($400) and the per-	8
mit shall be revoked until such time that the permittee demonstrates an ef-	9
fective training plan to the department, but in no case shall the revoca-	10
tion be for less than thirty (30) days. Tobacco Alternative nicotine prod-	11
uct, tobacco product, or electronic smoking device retailers must remove all	12
alternative nicotine products, tobacco products, or electronic smoking de-	13
vices from all areas accessible to or visible to the public while the permit	14
is revoked.	15
(7) All moneys collected for violations pursuant to this section shall	16
be remitted to the prevention of minors' access to alternative nicotine	17
products, tobacco products, or electronic smoking devices fund created in	18
section 39-5711, Idaho Code.	19
(8) All fines shall be paid in full prior to renewal of a permit and	20
within ten (10) days of the date of the violation.	21
SECTION 14. That Section 39-5709, Idaho Code, be, and the same is hereby	22
amended to read as follows:	23
39-5709. CRIMINAL PENALTIES FOR VIOLATIONS WITHOUT A PERMIT. Sale or	24
distribution of alternative nicotine products, tobacco products, or elec-	25
tronic smoking devices, or any violation of this chapter, without a permit is	26
considered by the state of Idaho as an effort to subvert the state's public	27
purpose to prevent minor's minors' access to alternative nicotine products,	28
tobacco products, or electronic smoking devices.	29
(1) The sale or distribution of alternative nicotine products, tobacco	30
products, or electronic smoking devices without a permit shall constitute a	31
misdemeanor punishable by imprisonment not exceeding six (6) months in the	32
county jail, a fine of three hundred dollars ($300), or by both such fine	33
and imprisonment. If the sale or distribution of alternative nicotine prod-	34
ucts, tobacco products, or electronic smoking devices was to a minor, the	35
fine shall be no less than five hundred dollars ($500) nor more than one thou-	36
sand dollars ($1,000). The provisions of this section shall not be applica-	37
ble to an employee of the business engaged in the sale of alternative nico-	38
tine products, tobacco products, or electronic smoking devices if the sale	39
occurred during the course of such employment and the seller does not have an	40
ownership interest in the business.	41
(2) In addition to the penalties set forth in subsection (1) of this	42
section, the court may impose an additional fine of one thousand dollars	43
($1,000) per day beginning the day following the date of citation as long as	44
the illegal alternative nicotine products, tobacco products, or electronic	45
smoking devices sales or distribution continues. The first seven (7) days of	46
additional fines may be suspended, provided that the business or seller is	47
able to prove that the business or seller has applied for the permit within	48
seven (7) days of the citation.	49

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13
SECTION 15. That Section 39-5710, Idaho Code, be, and the same is hereby	1
amended to read as follows:	2
39-5710. CONDUCT OF ENFORCEMENT ACTIONS. (1) It is the intent of the	3
legislature that law enforcement agencies, the attorney general, and the	4
department shall enforce this chapter in a manner that can reasonably be	5
expected to significantly reduce the extent to which alternative nicotine	6
products, tobacco products, and electronic smoking devices are sold or dis-	7
tributed to minors.	8
(2) Law enforcement agencies may conduct random, unannounced inspec-	9
tions at locations where alternative nicotine products, tobacco products,	10
or electronic smoking devices are sold or distributed to ensure compliance	11
with this chapter. A copy of all citations issued under this chapter shall be	12
submitted to the department.	13
(3) The department shall conduct at least one (1) random, unannounced	14
inspection per year at all locations where alternative nicotine products,	15
tobacco products, or electronic smoking devices are sold or distributed at	16
retail to ensure compliance with this chapter. The department shall conduct	17
inspections for minor-exempt permittees without the assistance of a minor.	18
The department shall conduct inspections for all other permittees with the	19
assistance of a minor. Each year, the department shall conduct random, unan-	20
nounced inspections equal to the number of permittees on the last day of the	21
calendar year multiplied by the violation percentage rate reported for the	22
previous year multiplied by a factor of ten (10). In no instance will the	23
number of inspections exceed twice the number of permittees. Local law en-	24
forcement agencies are encouraged to contract with the department to perform	25
these required inspections.	26
(4) Minors may assist with random, unannounced inspections, provided	27
that minors under the age of eighteen (18) years must have the written con-	28
sent of a parent or legal guardian. When assisting with these inspections,	29
minors shall not provide false identification or make any false statement	30
regarding their age.	31
(5) Citizens may file a written complaint of noncompliance of this	32
chapter with the department or with a law enforcement agency. Permit holders	33
under 26 U.S.C. 5712 may file written complaints relating to delivery sales	34
to the department or the attorney general's offices. Complaints shall be	35
investigated and the proper enforcement actions taken.	36
(6) Within a reasonable time, not later than two (2) business days after	37
an inspection has occurred, a representative of the business inspected shall	38
be informed in writing of the results of the inspection.	39
(7) The attorney general or his designee, or any person who holds a per-	40
mit under 26 U.S.C. 5712, may bring an action in district court in Idaho to	41
prevent or restrain violations of this chapter by any person or by any person	42
controlling such person.	43
SECTION 16. That Section 39-5711, Idaho Code, be, and the same is hereby	44
amended to read as follows:	45
39-5711. FUNDING AND CREATION OF PREVENTION OF MINORS' ACCESS TO	46
ALTERNATIVE NICOTINE PRODUCTS, TOBACCO PRODUCTS, OR ELECTRONIC SMOKING	47
DEVICES FUND. There is hereby created the prevention of minors' access to	48

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14
alternative nicotine products, tobacco products, or electronic smoking de-	1
vices fund in the state treasury. Moneys in the fund shall be used to fund the	2
administration, inspections and enforcement of this chapter. Moneys in the	3
fund may be expended only pursuant to appropriation. The fund shall consist	4
of:	5
(1) The current federal funds that are available for inspections or for	6
the prevention of minors' access to tobacco products or electronic smoking	7
devices shall be utilized by the department;	8
(2) The fines from the civil penalties pursuant to section 39-5708,	9
Idaho Code; and	10
(3) Moneys from any other source.	11
SECTION 17. That Section 39-5713, Idaho Code, be, and the same is hereby	12
amended to read as follows:	13
39-5713. LOCAL ORDINANCES PROHIBITED. No local unit of government	14
may adopt or enforce requirements for the regulation, marketing, or sale of	15
alternative nicotine products, tobacco products, or electronic smoking de-	16
vices that are more restrictive than or in addition to this chapter. No local	17
unit of government may impose or enforce a tax or fee on alternative nicotine	18
products, tobacco products, or electronic smoking devices. This section	19
shall not be construed to prevent a local unit of government from regulating	20
the use of alternative nicotine products, tobacco products, or electronic	21
smoking devices in any public place pursuant to section 39-5511, Idaho Code,	22
or in any other public outdoor area. Nothing in this section shall preclude	23
or preempt any local, county, or municipal government from exercising its	24
lawful authority to regulate zoning or land use.	25
SECTION 18. That Section 39-5714, Idaho Code, be, and the same is hereby	26
amended to read as follows:	27
39-5714. REQUIREMENTS FOR DELIVERY SALES. (1) No permittee shall make	28
a delivery sale of alternative nicotine products, tobacco products, or elec-	29
tronic smoking devices to any individual who is under age twenty-one (21)	30
years in this state.	31
(2) Each permittee taking a delivery sale order shall comply with: the	32
age verification requirements set forth in section 39-5715, Idaho Code;	33
the disclosure and notice requirements set forth in section 39-5716, Idaho	34
Code; the shipping requirements set forth in section 39-5717, Idaho Code;	35
the registration and reporting requirements set forth in section 39-5718,	36
Idaho Code; all tax collection requirements provided by title 63, Idaho	37
Code; and all other laws of the state of Idaho generally applicable to sales	38
of alternative nicotine products, tobacco products, or electronic smoking	39
devices that occur entirely within Idaho, including but not limited to those	40
laws imposing excise taxes, sales and use taxes, licensing and tax stamping	41
requirements, and escrow or other payment obligations.	42
SECTION 19. That Section 39-5715, Idaho Code, be, and the same is hereby	43
amended to read as follows:	44

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15
39-5715. AGE VERIFICATION REQUIREMENTS. No permittee shall mail or	1
ship alternative nicotine products, tobacco products, or electronic smoking	2
devices in connection with a delivery sale order unless, before mailing or	3
shipping such alternative nicotine products, tobacco products, or elec-	4
tronic smoking devices, the permittee accepting the delivery sale order	5
first obtains from the prospective customer a certification that includes	6
proof of age that the purchaser is at least twenty-one (21) years old, the	7
credit or debit card used for payment has been issued in the purchaser's	8
name, and the address to which the alternative nicotine products, tobacco	9
products, or electronic smoking devices are being shipped matches the	10
credit card company's address for the cardholder or employs technology that	11
requires and authenticates independent, third-party age and identity veri-	12
fication services, comparing data against third-party sources.	13
SECTION 20. That Section 39-5717, Idaho Code, be, and the same is hereby	14
amended to read as follows:	15
39-5717. SHIPPING REQUIREMENTS -- TOBACCO PRODUCTS, ALTERNATIVE	16
NICOTINE PRODUCTS, OR ELECTRONIC SMOKING DEVICES. Each permittee who mails	17
or ships alternative nicotine products, tobacco products, or electronic	18
smoking devices in connection with a delivery sale order shall include as	19
part of the shipping documents a clear and conspicuous statement providing	20
as follows:	21
ALTERNATIVE NICOTINE PRODUCTS, TOBACCO PRODUCTS, OR ELECTRONIC	22
SMOKING DEVICES: IDAHO LAW PROHIBITS SHIPPING TO INDIVIDUALS UNDER	23
THE AGE OF TWENTY-ONE (21) YEARS AND REQUIRES THE PAYMENT OF TAXES	24
PURSUANT TO CHAPTER 25, TITLE 63, IDAHO CODE. PERSONS VIOLATING	25
THIS LAW MAY BE CIVILLY AND CRIMINALLY LIABLE.	26
Anyone who delivers any such container distributes alternative nico-	27
tine products, tobacco products, or electronic smoking devices as defined in	28
section 39-5702(5) 39-5702(6), Idaho Code, and is subject to the terms and	29
requirements of this chapter. If a permittee taking a delivery sale order	30
also delivers the alternative nicotine products, tobacco products, or elec-	31
tronic smoking devices without using a third-party delivery service, the	32
permittee shall comply with all the requirements of vendor-assisted sales as	33
defined in section 39-5702(17) 39-5702, Idaho Code.	34
SECTION 21. That Section 39-5718, Idaho Code, be, and the same is hereby	35
amended to read as follows:	36
39-5718. REGISTRATION AND REPORTING REQUIREMENTS. (1) Prior to making	37
delivery sales or shipping alternative nicotine products, tobacco products,	38
or electronic smoking devices in connection with any such sales, every busi-	39
ness shall obtain a permit from the department and file with the state tax	40
commission a statement setting forth the permittee's name, trade name, and	41
the address of the business's principal place of business and any other place	42
of business.	43
(2) No later than the tenth day of each calendar month, each permit-	44
tee that has made a delivery sale or shipped or delivered alternative nico-	45
tine products, tobacco products, or electronic smoking devices in connec-	46
tion with any such sale during the previous calendar month shall file with	47

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16
the department and the state tax commission a memorandum or a copy of the in-	1
voice that provides for each and every such delivery sale:	2
(a) The name and address of the individual to whom the delivery sale was	3
made;	4
(b) The brand or brands of the alternative nicotine products, tobacco	5
products, or electronic smoking devices that were sold in such delivery	6
sale; and	7
(c) The quantity of alternative nicotine products, tobacco products,	8
or electronic smoking devices that were sold in such delivery sale.	9
(3) Any alternative nicotine products, tobacco products, or electronic	10
smoking devices sold or attempted to be sold in a delivery sale that does	11
not meet the requirements of this chapter shall be forfeited to the state of	12
Idaho.	13
SECTION 22. That Section 39-8421, Idaho Code, be, and the same is hereby	14
amended to read as follows:	15
39-8421. DEFINITIONS. As used in sections 39-8420 through 39-8425,	16
Idaho Code:	17
(1) The definitions set forth in section 39-8402, Idaho Code, of the	18
Idaho tobacco master settlement agreement complementary act, and in this	19
section, apply to sections 39-8420 through 39-8425, Idaho Code.	20
(2) "Cigarette rolling machine" means any machine or device that has	21
the capability to produce at least one hundred fifty (150) cigarettes in less	22
than thirty (30) minutes.	23
(3) "Cigarette rolling machine operator" means any person who owns or	24
leases or otherwise has available for use a cigarette rolling machine and	25
makes such a machine available for use by another person in a commercial	26
setting in order to manufacture a cigarette. No person shall be deemed a	27
cigarette rolling machine operator based solely upon that person's manufac-	28
ture, sale, enabling, disabling, or repair of a cigarette rolling machine.	29
(4) "Minor" has the same meaning as that term is defined in section	30
39-5702(7) 39-5702, Idaho Code.	31
(5) "Person" means natural persons, corporations both foreign and do-	32
mestic, trusts, partnerships both limited and general, incorporated or un-	33
incorporated associations, companies, business entities, and any other le-	34
gal entity, or any other group associated in fact although not a legal en-	35
tity.	36
(6) "Tobacco products" means any substance that contains tobacco,	37
including but not limited to cigarettes, cigars, pipes, snuff, smoking to-	38
bacco, tobacco papers, or smokeless tobacco.	39
SECTION 23. That Section 56-227F, Idaho Code, be, and the same is hereby	40
amended to read as follows:	41
56-227F. PUBLIC ASSISTANCE BENEFIT CARDS -- PROHIBITED USES. (1) Any	42
recipient of public assistance is prohibited from using public assistance	43
benefit cards or cash obtained with public assistance benefit cards:	44
(a) For the purpose of participating in any of the activities described	45
under chapters 38 and 49, title 18, Idaho Code, or authorized pursuant	46
to any state-tribal gaming compact under section 67-429A, Idaho Code;	47

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17
(b) For the purpose of pari-mutuel betting authorized under chapter 25,	1
title 54, Idaho Code;	2
(c) To purchase lottery tickets or shares authorized under chapter 74,	3
title 67, Idaho Code;	4
(d) For the purpose of participating in or purchasing tattoo, branding	5
or body piercing services as defined in section 18-1523, Idaho Code;	6
(e) To purchase cigarettes as defined in section 39-7802(d), Idaho	7
Code, or tobacco products or electronic smoking devices as defined in	8
section 39-5702(15) 39-5702, Idaho Code;	9
(f) To purchase any items regulated under title 23, Idaho Code;	10
(g) For the purpose of adult entertainment at venues with performances	11
that contain sexually oriented material where minors under the age of	12
eighteen (18) years are prohibited; or	13
(h) For the purpose of purchasing or participating in any activities in	14
any location listed in subsection (2) of this section.	15
(2) The following businesses are required to comply with the provisions	16
of this section:	17
(a) Any establishment or business licensed under chapter 9, title 23,	18
Idaho Code;	19
(b) State liquor stores defined under section 23-902, Idaho Code, with	20
the exception of special distributors as referenced in chapter 3, title	21
23, Idaho Code;	22
(c) Any business or agency that issues or underwrites bail bonds as de-	23
fined in section 41-1038(3), Idaho Code;	24
(d) Gambling establishments licensed under Idaho law;	25
(e) Any business or establishment that offers tattoo, body piercing or	26
branding services as defined in section 18-1523, Idaho Code;	27
(f) Adult entertainment venues with performances that contain sexually	28
oriented material where minors under the age of eighteen (18) years are	29
prohibited; and	30
(g) Any establishment where persons under the age of eighteen (18)	31
years are not permitted.	32
(3) The department shall notify any business determined to be in viola-	33
tion of the provisions of subsection (2) of this section and the licensing	34
authority of any such business, if applicable, that such business has con-	35
tinued to allow the use of a public assistance benefit card in violation of	36
subsection (2) of this section. The department may require the Idaho quest	37
electronic benefits transfer (EBT) card business identification number	38
(BIN) be disabled at any business found to be in violation of subsection (2)	39
of this section. Any business in violation of subsection (2) of this section	40
may also be required to deny all public assistance cash transactions made	41
with an Idaho quest EBT card at any automated teller machine (ATM) located	42
in their establishment. All costs associated with disabling the BIN and ATM	43
will be the responsibility of such business owner.	44
(4) Only the recipient, an eligible member of the recipient's house-	45
hold or the recipient's authorized representative may use a public assis-	46
tance benefit card or the benefit, and such use shall only be for the re-	47
spective benefit program purposes. The recipient shall not sell, attempt to	48
sell, exchange or donate a public assistance benefit card or any benefits to	49
any other person or entity.	50

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18
(5) A violation of subsection (1) or (4) of this section by a recipient	1
constitutes a misdemeanor.	2
(a) The department shall notify all recipients of public assistance	3
benefit cards that any violation of subsection (1) or (4) of this sec-	4
tion could result in legal proceedings and forfeiture of all cash public	5
assistance.	6
(b) Whenever the department has confirmed that a person has violated	7
subsection (1) or (4) of this section, the department shall notify the	8
person in writing that the violation could result in legal proceedings	9
and forfeiture of all cash public assistance.	10
(6) As used in this section, "public assistance" or "public assistance	11
benefit" means benefits provided to a recipient pursuant to the temporary	12
assistance for families in Idaho (TAFI) program on an Idaho quest EBT card	13
account.	14
(7) This section shall be enforced by the director of the department of	15
health and welfare in cooperation with local law enforcement and prosecuting	16
agencies.	17
SECTION 24. That the Heading for Chapter 25, Title 63, Idaho Code, be,	18
and the same is hereby amended to read as follows:	19
CHAPTER 25	20
CIGARETTE, NICOTINE, AND TOBACCO PRODUCTS TAXES	21
SECTION 25. That Section 63-2551, Idaho Code, be, and the same is hereby	22
amended to read as follows:	23
63-2551. TOBACCO AND NICOTINE PRODUCTS TAX -- DEFINITIONS. As used in	24
this act:	25
(1) "Tobacco products" shall mean any cigars, cheroots, stogies,	26
smoking tobacco (including granulated, plug, cut, crimp cut, ready rubbed	27
and any other kinds and forms of tobacco suitable for smoking in a pipe or	28
cigarette), chewing tobacco (including cavendish, twist, plug, scrap and	29
any other kinds and forms of tobacco suitable for chewing) and snuff, however	30
prepared; and shall include any other articles or products made of tobacco	31
except cigarettes;	32
(2) "Manufacturer" means a person who manufactures and sells tobacco	33
products, alternative nicotine products, or vapor products;	34
(3) "Distributor" means (a) any person engaged in the business of sell-	35
ing tobacco products, alternative nicotine products, or vapor products in	36
this state who brings, or causes to be brought, into this state from without	37
the state any tobacco products, alternative nicotine products, or vapor	38
products for sale, (b) any person who makes, manufactures, or fabricates	39
tobacco products, alternative nicotine products, or vapor products in this	40
state for sale in this state, (c) any person engaged in the business of	41
selling tobacco products, alternative nicotine products, or vapor products	42
without this state who ships or transports tobacco products, alternative	43
nicotine products, or vapor products to retailers in this state, to be sold	44
by those retailers;	45
(4) "Subjobber" means any person, other than a manufacturer or distrib-	46
utor, who buys tobacco products, alternative nicotine products, or vapor	47

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19
products from a distributor and sells them to persons other than the ultimate	1
consumers;	2
(5) "Retailer" means any person engaged in the business of selling to-	3
bacco products, alternative nicotine products, or vapor products to ulti-	4
mate consumers;	5
(6) "Sale" means any transfer, exchange, or barter, in any manner or by	6
any means whatsoever, for a consideration, and includes and means all sales	7
made by any person. It includes a gift by a person engaged in the business of	8
selling tobacco products, alternative nicotine products, or vapor products,	9
for advertising, as a means of evading the provisions of this chapter, or for	10
any other purposes whatsoever;	11
(7) "Wholesale sales price" means the established price for which a	12
manufacturer or any person sells a tobacco product, alternative nicotine	13
product, or vapor product to a distributor that is not a related person as de-	14
fined in section 267 of the Internal Revenue Code, exclusive of any discount	15
or other reduction;	16
(8) "Business" means any trade, occupation, activity, or enterprise	17
engaged in for the purpose of selling or distributing tobacco products, al-	18
ternative nicotine products, or vapor products in this state;	19
(9) "Place of business" means any place where tobacco products, alter-	20
native nicotine products, or vapor products are manufactured, stored, or	21
kept for the purpose of sale or consumption, including any vessel, vehicle,	22
airplane or train;	23
(10) "Retail outlet" means each place of business from which tobacco	24
products, alternative nicotine products, or vapor products are sold to con-	25
sumers;	26
(11) "Commission" means the Idaho state tax commission.	27
(12) "Alternative nicotine product" means a noncombustible product	28
that contains nicotine, whether natural or synthetic, but does not contain	29
tobacco and is intended for human consumption, whether chewed, absorbed,	30
dissolved, ingested, or by other means. This term shall not include a vapor	31
product or any product regulated by the United States food and drug adminis-	32
tration under chapter V of the federal food, drug, and cosmetic act.	33
(13) "Electronic smoking device" has the same meaning as that term is	34
defined in section 39-5702, Idaho Code.	35
(14) "Vapor product" means any liquid, substance, or mixture, whether	36
or not containing nicotine, that is designed, manufactured, or marketed for	37
use in an electronic smoking device to produce vapor, including any pre-	38
filled cartridge, pod, vapor solution, vapor cartridge, or other container	39
of liquid or other form that is intended to be used with or in an electronic	40
cigarette, electronic cigar, electronic cigarillo, electronic pipe, or sim-	41
ilar product or device. The term does not include any product regulated by	42
the United States food and drug administration under chapter V of the federal	43
food, drug, and cosmetic act.	44
SECTION 26. That Section 63-2552B, Idaho Code, be, and the same is	45
hereby amended to read as follows:	46
63-2552B. TOBACCO PRODUCTS, ALTERNATIVE NICOTINE PRODUCTS, AND VAPOR	47
PRODUCTS USE TAX. Any person who does not hold a tobacco products tax permit	48
who possesses, purchases or consumes tobacco products, alternative nicotine	49

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20
products, or vapor products upon which tax imposed by this chapter has not	1
been paid, including tobacco products, alternative nicotine products, or	2
vapor products sold by internet, catalog, telephone and facsimile sell-	3
ers, is liable for the taxes imposed by sections 63-2552, and 63-2552A, and	4
63-2552C, Idaho Code, to be reported and paid as required in section 63-2560,	5
Idaho Code.	6
SECTION 27. That Chapter 25, Title 63, Idaho Code, be, and the same is	7
hereby amended by the addition thereto of a NEW SECTION, to be known and des-	8
ignated as Section 63-2552C, Idaho Code, and to read as follows:	9
63-2552C. TAX ON THE SALE OF ALTERNATIVE NICOTINE PRODUCTS AND VAPOR	10
PRODUCTS -- DISTRIBUTION. (1) There is hereby imposed an excise tax on vapor	11
products sold in the state of Idaho. Such tax shall be at the rate of five	12
cents (5¢) per fluid milliliter of vapor products. All invoices for any va-	13
por product issued by manufacturers shall state the amount of consumable va-	14
por product in milliliters. The distributor shall be liable for the payment	15
of the tax imposed by this subsection. The tax shall be imposed at the time	16
the distributor:	17
(a) Brings or causes to be brought into this state vapor products for	18
sale;	19
(b) Manufactures vapor products in this state for sale; or	20
(c) Ships or transports vapor products to retailers in this state to be	21
sold by those retailers.	22
(2) There is hereby imposed an excise tax on alternative nicotine prod-	23
ucts sold in the state of Idaho. Such tax shall be at the rate of twenty-five	24
cents (25¢) per container of alternative nicotine products that contains at	25
least one (1) and not more than twenty (20) units, and for any container that	26
includes more than twenty (20) units, at the rate of twenty-five cents (25¢)	27
per container plus a proportionate tax at the like rate on each unit in excess	28
of twenty (20) units. The distributor shall be liable for the payment of the	29
tax imposed by this subsection. The tax shall be imposed at the time the dis-	30
tributor:	31
(a) Brings or causes to be brought into this state alternative nicotine	32
products for sale;	33
(b) Manufactures alternative nicotine products in this state for sale;	34
or	35
(c) Ships or transports alternative nicotine products to retailers in	36
this state to be sold by those retailers.	37
(3) A retailer who brings, or causes to be brought, into this state from	38
outside the state alternative nicotine products or vapor products for sale	39
on which the tax has not been paid is responsible for payment of the tax at	40
the time of receiving such products and before selling such products to the	41
ultimate consumer.	42
(4) Revenues received from the taxes imposed by this section shall be	43
distributed by the state tax commission as follows:	44
(a) Fifty percent (50%) shall be distributed to the department of	45
health and welfare for adult and children's behavioral health programs;	46
(b) Twenty-five percent (25%) shall be distributed to the public school	47
income fund for the purposes of safe and drug free schools and include	48

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21
purposes of prevention and cessation, behavioral health, and the hiring	1
of personnel necessary to respond to the use of nicotine products; and	2
(c) Twenty-five (25%) shall be distributed to the general fund.	3
SECTION 28. That Section 63-2553, Idaho Code, be, and the same is hereby	4
amended to read as follows:	5
63-2553. LEGISLATIVE INTENT. It is the intent and purpose of this	6
chapter to levy a tax on all tobacco products, alternative nicotine prod-	7
ucts, and vapor products sold, used, consumed, handled, or distributed	8
within this state and to collect the tax from the distributor as defined in	9
section 63-2551, Idaho Code. It is the further intent and purpose of this	10
chapter to impose the tax only once but nothing in this chapter shall be con-	11
strued to exempt any person taxable under any other law or under any other tax	12
imposed by the state of Idaho.	13
SECTION 29. That Section 63-2554, Idaho Code, be, and the same is hereby	14
amended to read as follows:	15
63-2554. PERMIT REQUIRED. (1) No person shall engage in the business	16
of a manufacturer, distributor, or subjobber of tobacco products, alterna-	17
tive nicotine products, or vapor products at any place of business without	18
first having received from the commission a permit as provided in section	19
63-2503 or 63-2504, Idaho Code.	20
(2) Distributors and subjobbers shall purchase tobacco products, al-	21
ternative nicotine products, or vapor products only from a manufacturer,	22
wholesaler, or distributor who has obtained a permit under this chapter or	23
under chapter 57, title 39, Idaho Code, as appropriate, and shall verify that	24
the seller holds a valid permit before making a purchase.	25
(3) Retailers shall purchase alternative nicotine products, tobacco	26
products, or vapor products only from a wholesaler or distributor who has ob-	27
tained a permit under this chapter or under chapter 57, title 39, Idaho Code,	28
as appropriate, and shall verify that the seller holds a valid permit before	29
making a purchase.	30
(4) Manufacturers shall sell alternative nicotine products, tobacco	31
products, or vapor products only to a wholesaler, subjobber, or distributor	32
who has obtained a permit under this chapter or under chapter 57, title 39,	33
Idaho Code, as appropriate, and shall verify that the purchaser holds a valid	34
permit before making a sale.	35
(5) Wholesalers, subjobbers, and distributors shall sell alternative	36
nicotine products, tobacco products, or vapor products only to a wholesaler,	37
subjobber, distributor, or retailer who has obtained a permit under this	38
chapter or under chapter 57, title 39, Idaho Code, as appropriate, and shall	39
verify that the purchaser holds a valid permit before making a sale.	40
(6) The state tax commission shall publish a list of active permits and	41
shall update such list monthly. The state tax commission also shall publish	42
a list of persons whose permits have been suspended or revoked, including the	43
date of the suspension and the date of the anticipated reinstatement or the	44
date of the revocation.	45

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22
SECTION 30. That Section 63-2555, Idaho Code, be, and the same is hereby	1
amended to read as follows:	2
63-2555. BOOKS AND RECORDS TO BE PRESERVED -- ENTRY AND INSPECTION BY	3
COMMISSION. (1) Every distributor shall keep at each registered place of	4
business complete and accurate records for that place of business, including	5
itemized invoices, of tobacco products, alternative nicotine products, and	6
vapor products held, purchased, manufactured, brought in or caused to be	7
brought in from without the state, or shipped or transported to retailers	8
in this state, and of all sales of tobacco products, alternative nicotine	9
products, and vapor products made, except sales to the ultimate consumer.	10
(2) These records shall show the names and addresses of purchasers, the	11
inventory of all tobacco products, alternative nicotine products, and vapor	12
products on hand on July 1, 1972, July 1, 2026, and other pertinent papers and	13
documents relating to the purchase, sale or disposition of tobacco products,	14
alternative nicotine products, and vapor products.	15
(3) When a registered distributor sells tobacco products, alternative	16
nicotine products, or vapor products exclusively to the ultimate consumer	17
at the address given in the certificate, no invoice of those sales shall	18
be required, but itemized invoices shall be made of all tobacco products,	19
alternative nicotine products, and vapor products transferred to other re-	20
tail outlets owned or controlled by that registered distributor. All books,	21
records, and other papers and documents required by this section to be kept	22
shall be preserved for a period of at least five (5) years after the date of	23
the documents, as aforesaid, or the date of the entries thereof appearing in	24
the records, unless the commission, in writing, authorizes their destruc-	25
tion or disposal at an earlier date. At any time during usual business hours,	26
the commission, or its duly authorized agents or employees, may enter any	27
place of business of a distributor, without a search warrant, and inspect	28
the premises, the records required to be kept under this chapter, and the to-	29
bacco products, alternative nicotine products, and vapor products contained	30
therein, to determine whether or not all the provisions of this chapter are	31
being fully complied with. If the commission, or any of its agents or employ-	32
ees, is denied free access or is hindered or interfered with in making such	33
examination, the permit of the distributor at such premises shall be subject	34
to revocation by the commission.	35
SECTION 31. That Section 63-2556, Idaho Code, be, and the same is hereby	36
amended to read as follows:	37
63-2556. PRESERVATION OF INVOICES OF SALES TO OTHER THAN ULTIMATE CON-	38
SUMER. Every person who sells tobacco products, alternative nicotine prod-	39
ucts, or vapor products to persons other than the ultimate consumer shall	40
render with each sale itemized invoices showing the seller's name and ad-	41
dress, the purchaser's name and address, the date of sale, and all prices and	42
discounts. He shall preserve legible copies of all such invoices for five	43
(5) years from the date of sale.	44
SECTION 32. That Section 63-2557, Idaho Code, be, and the same is hereby	45
amended to read as follows:	46

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23
63-2557. INVOICES OF PURCHASES TO BE PROCURED BY RETAILER, SUBJOBBER	1
-- PRESERVATION -- INSPECTION. Every retailer and subjobber shall procure	2
itemized invoices of all tobacco products, alternative nicotine products,	3
and vapor products purchased. The invoices shall show the name and address	4
of the seller and the date of purchase. The retailer and subjobber shall pre-	5
serve a legible copy of each such invoice for five (5) years from the date of	6
purchase. Invoices shall be available for inspection by the commission or	7
its authorized agents or employees at the retailer's or subjobber's place of	8
business.	9
SECTION 33. That Section 63-2558, Idaho Code, be, and the same is hereby	10
amended to read as follows:	11
63-2558. RECORDS OF SHIPMENTS, DELIVERIES FROM PUBLIC WAREHOUSE OF	12
FIRST DESTINATION -- PRESERVATION -- INSPECTION. Records of all deliveries	13
or shipments of tobacco products, alternative nicotine products, or vapor	14
products from any public warehouse of first destination in this state shall	15
be kept by the warehouse and be available to the commission for inspection.	16
They shall show the name and address of the consignee, the date, the quan-	17
tity of tobacco products, alternative nicotine products, and vapor products	18
delivered, and such other information as the commission may require. These	19
records shall be preserved for five (5) years from the date of delivery of the	20
tobacco products, alternative nicotine products, or vapor products.	21
SECTION 34. That Section 63-2559, Idaho Code, be, and the same is hereby	22
amended to read as follows:	23
63-2559. WHEN CREDIT MAY BE OBTAINED FOR TAX PAID. (1) Where tobacco	24
products, alternative nicotine products, or vapor products upon which	25
the tax taxes imposed by this chapter has have been reported and paid, are	26
shipped or transported by the distributor to distributors or retailers	27
outside the state, to be sold by those distributors or retailers, or are	28
returned to the manufacturer by the distributor or destroyed by the distrib-	29
utor, credit of such tax taxes may be made to the distributor in accordance	30
with rules prescribed by the commission.	31
(2) Taxes paid on tobacco products, alternative nicotine products, or	32
vapor products sold on or after January 1, 2000, on accounts later found to be	33
worthless and actually charged-off may be credited upon a subsequent payment	34
of the tax taxes on tobacco products, alternative nicotine products, and va-	35
por products or, if no such tax is taxes are due, refunded. If all or part	36
of such an account is thereafter collected, the tax taxes shall be paid based	37
upon the proportion of the amount collected.	38
SECTION 35. That Section 63-2563, Idaho Code, be, and the same is hereby	39
amended to read as follows:	40
63-2563. COLLECTION AND ENFORCEMENT. The collection and enforcement	41
procedures provided by the Idaho income tax act, sections 63-3038, 63-3039,	42
63-3040, 63-3042 through 63-3045B, 63-3047 through 63-3065A, 63-3068,	43
63-3071, 63-3075 and 63-3078, Idaho Code, shall apply and be available to	44
the state tax commission for the enforcement of this act and collection of	45

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24
any amounts due under this act and said sections shall, for this purpose,	1
be considered part of this act and wherever liens or any other proceedings	2
are defined as income tax liens or proceedings, they shall, when applied in	3
enforcement or collection under this act, be described as tobacco products,	4
alternative nicotine products, and vapor products tax liens and proceed-	5
ings. Any reference to taxable year in the income tax act shall be, for the	6
purposes of this act, considered a taxable period.	7
The state tax commission may be made a party defendant in an action at	8
law or in equity by any person aggrieved by the unlawful seizure or sale of	9
his property, or in any suit for refund or to recover an overpayment, but	10
only the state of Idaho shall be responsible for any final judgment secured	11
against the state tax commission, and said judgment shall be paid or satis-	12
fied out of the tobacco products, alternative nicotine products, and vapor	13
products tax refund fund.	14
SECTION 36. That Section 63-2565, Idaho Code, be, and the same is hereby	15
amended to read as follows:	16
63-2565. REFUNDS, LIMITATIONS, INTEREST. (a) Where there has been an	17
overpayment of any tobacco products, alternative nicotine products, and va-	18
por products tax imposed by this act, the amount of such overpayment shall be	19
credited against any tobacco products, alternative nicotine products, and	20
vapor products tax then due from the taxpayer, and any balance of such excess	21
shall be refunded to the taxpayer.	22
(b) The state tax commission is authorized and the state board of tax	23
appeals is authorized to order the tax commission in proper cases to credit	24
or remit, refund, and pay back all taxes and penalties erroneously or ille-	25
gally assessed or collected, regardless of whether the same have been paid	26
under protest, which claims for refund shall be certified to the state board	27
of examiners by the state tax commission.	28
(c) No such credit or refund of taxes, penalties or interest paid, shall	29
be allowed or made after three (3) years from the time the return was filed,	30
unless before the expiration of such period a claim therefor is filed by the	31
taxpayer with the commission.	32
(d) Interest shall be allowed on the amount of such credits or refunds	33
at the rate provided in section 63-3045, Idaho Code, from the date such tax	34
was paid.	35
(e) Appeal of a tax commission decision denying in whole or part a claim	36
for refund shall be made in accordance with and within the time limits pre-	37
scribed in section 63-3049, Idaho Code.	38
SECTION 37. An emergency existing therefor, which emergency is hereby	39
declared to exist, this act shall be in full force and effect on and after	40
July 1, 2026.	41

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