AN ACT CONCERNING REQUIREMENTS FOR AND PENALTIES ON HOLDERS OF DEALER REGISTRATIONS REGARDING ELECTRONIC NICOTINE DELIVERY SYSTEMS AND VAPOR PRODUCTS AND MANUFACTURER REGISTRATION REQUIREMENTS OF SUCH DELIVERY SYSTEMS AND PRODUCTS.

House of Representatives
sHB5539 / File No. 671 1

General Assembly File No. 671
February Session, 2026 Substitute House Bill No. 5539

House of Representatives, April 16, 2026

The Committee on Finance, Revenue and Bonding reported
through REP. HORN of the 64th Dist., Chairperson of the
Committee on the part of the House, that the substitute bill
ought to pass.

AN ACT CONCERNING REQUIREMENTS FOR AND PENALTIES ON
HOLDERS OF DEALER REGISTRATIONS REGARDING ELECTRONIC
NICOTINE DELIVERY SYSTEMS AND VAPOR PRODUCTS AND
MANUFACTURER REGISTRATION REQUIREMENTS OF SUCH
DELIVERY SYSTEMS AND PRODUCTS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

Section 1. Section 21a -415 of the 2026 supplement to the general 1
statutes is repealed and the following is substituted in lieu thereof 2
(Effective October 1, 2026): 3
(a) As used in this chapter: 4
(1) "Authorized owner" means the owner or authorized designee of a 5
business entity that is applying for a registration or is registered with 6
the Department of Consumer Protection pursuant to this chapter; 7
(2) "Business entity" means any corporation, limited liability 8
company, association, partnership, sole proprietorship, government, 9
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governmental subdivision or agency, business trust, estate, trust or any 10
other legal entity; 11
(3) "Cigarette" has the same meaning as provided in subsection (b) of 12
section 12-285; 13
(4) "Dealer registration" means an electronic nicotine delivery system 14
certificate of dealer registration issued by the Commissioner of 15
Consumer Protection pursuant to this section; 16
(5) "Deliver" or "delivering" means transferring, or offering or 17
attempting to transfer, physical possession or control of an electronic 18
nicotine delivery system or vapor product by any person, whether done 19
as principal, proprietor, agent, servant or employee; 20
(6) "Drug paraphernalia" has the same meaning as provided in 21
section 21a-240; 22
(7) "Electronic cigarette liquid" means a liquid that, when used in an 23
electronic nicotine delivery system or vapor product, produces a vapor 24
that may or may not include nicotine and is inhaled by the user of such 25
electronic nicotine delivery system or vapor product; 26
(8) "Electronic nicotine delivery system" means an electronic device 27
used in the delivery of nicotine or other substances to an individual 28
inhaling from the device, and includes, but is not limited to, an 29
electronic cigarette, electronic cigar, electronic cigarillo, electronic pipe 30
or electronic hookah and any related device and any cartridge or other 31
component of such device, including, but not limited to, electronic 32
cigarette liquid; 33
(9) "Manufacturer registration" means an electronic nicotine delivery 34
system certificate of manufacturer registration issued by the 35
Commissioner of Consumer Protection pursuant to section 21a -415a to 36
any person who mixes, compounds, repackages or resizes any nicotine-37
containing electronic nicotine delivery system or vapor product; 38
(10) "Sale" or "sell" means transferring, or offering or attempting to 39
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transfer, for consideration, including bartering or exchanging, or 40
offering to barter or exchange by any person, whether done as principal, 41
proprietor, agent, servant or employee; 42
(11) "Tobacco products" has the same meaning as provided in section 43
12-330a; and 44
(12) "Vapor product" means any product that employs a heating 45
element, power source, electronic circuit or other electronic, chemical or 46
mechanical means, regardless of shape or size, to produce a vapor that 47
may include nicotine and is inhaled by the user of such product. "Vapor 48
product" does not include a medicinal or therapeutic product that is (A) 49
used by a licensed health care provider to treat a patient in a health care 50
setting, (B) used by a patient, as prescribed or directed by a licensed 51
health care provider in any setting, or (C) any drug or device, as defined 52
in the federal Food, Drug and Cosmetic Act, 21 USC 321, as amended 53
from time to time, any combination product, as described in said act, 21 54
USC 353(g), as amended from time to time, or any biological product, as 55
described in 42 USC 262, as amended from time to time, and 21 CFR 56
600.3, as amended from time to time, authorized for sale by the United 57
States Food and Drug Administration. 58
(b) (1) No person in this state may sell or possess with intent to sell 59
an electronic nicotine delivery system or a vapor product unless such 60
person is employed by, an agent of or directly affiliated with a business 61
entity that maintains a dealer registration issued by the Commissioner 62
of Consumer Protection pursuant to this section. A separate dealer 63
registration shall be required for each place of business where such 64
system or product is sold, offered for sale or possessed with the intent 65
to sell. A dealer registration shall allow the sale of electronic nicotine 66
delivery systems or vapor products at such place of business. A holder 67
of a dealer registration shall post such registration in a prominent 68
location adjacent to electronic nicotine delivery system products or 69
vapor products offered for sale. 70
(2) The holder of a dealer registration shall maintain a sign, in a form 71
and manner prescribed by the commissioner and posted on the 72
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Department of Consumer Protection's Internet web site, on all external 73
entry doors of the location operated under such dealer registration, 74
which shall clearly disclose that cannabis may not be sold at such 75
location. As used in this subsection and subsection (j) of this section, 76
"cannabis" has the same meaning as provided in section 21a-420. 77
(3) Each holder of a dealer registration that derives at least fifty per 78
cent of its annual gross revenue from sales of cigarettes, drug 79
paraphernalia, electronic nicotine delivery systems, nicotine products, 80
synthetic nicotine, tobacco products and vapor products shall: [verify] 81
(A) Verify, with a valid government-issued driver's license or identity 82
card, the age of each individual entering the location operated under 83
such dealer registration, and shall prohibit any individual younger than 84
twenty-one years of age from entering such location; and 85
(B) Obtain a compliance bond in an amount not less than two 86
hundred fifty thousand dollars. Such compliance bond (i) may be 87
provided by a corporate surety or posted as cash held in an attorney's 88
escrow account or as United States government bonds payable to the 89
state, (ii) shall be conditioned on the holder of a dealer registration's 90
compliance with all laws and regulations governing such holder's 91
business and payment of all taxes, fees, penalties and other charges 92
related to such business, and (iii) shall provide that it is forfeited to the 93
state upon the holder's violation of a law applicable to such holder's 94
business. The Commissioner of Consumer Protection may use the 95
proceeds of the compliance bond for the payment of fines or penalties 96
assessed against the holder of a dealer registration or to reimburse costs 97
associated with the seizure and confiscation of such holder's products 98
and the destruction of such confiscated products. 99
(4) Each holder of a dealer registration shall maintain a complete set 100
of records required pursuant to this section, and all financial records 101
necessary to verify whether such holder derives at least fifty per cent of 102
its annual gross revenue from sales of cigarettes, drug paraphernalia, 103
electronic nicotine delivery systems, nicotine products, synthetic 104
nicotine, tobacco products and vapor products, for the then current tax 105
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year and the three immediately preceding tax years. Such holder shall 106
make such records immediately available to the department, upon a 107
request made by the department, for inspection and copying by the 108
department. Such holder shall produce such records to the department 109
not later than three days after the department requests such records. 110
Such holder shall produce such records to the department in an 111
electronic format, unless it is commercially impractical to produce such 112
records to the department in an electronic format. No person shall use 113
any foreign language, code or symbol in maintaining the records 114
required under this section. 115
(c) (1) Any applicant for a dealer registration or a renewal of a dealer 116
registration shall apply to the Department of Consumer Protection, in a 117
form and manner prescribed by the Commissioner of Consumer 118
Protection, which application shall include, at a minimum: 119
(A) The name, address and electronic mail address of the applicant; 120
(B) The location that is to be or is operated under such dealer 121
registration; 122
(C) The name of, and contact information for, each individual who 123
has a direct or indirect financial interest in such applicant, unless (i) such 124
applicant is a publicly traded company listed on a national stock 125
exchange, or (ii) the financial interest held by such individual owner and 126
such individual's spouse, parents and children, in the aggregate, does 127
not exceed [ten] five per cent of the total ownership or interest rights in 128
such applicant; 129
(D) A third-party local and national criminal background check for 130
each owner listed on such application, which background check shall (i) 131
be conducted by a third -party consumer reporting agency or 132
background screening company that is in compliance with the federal 133
Fair Credit Reporting Act and accredited by the Professional 134
Background Screening Association, (ii) include a multistate and 135
multijurisdiction criminal record locator or other similar commercial 136
nation-wide database with validation and such other background 137
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screening as the commissioner may require, and (iii) be requested by 138
such applicant not more than sixty days prior to submission of such 139
application; 140
(E) The name of the individual who shall serve as the fiduciary agent 141
and guarantor for such applicant, which individual shall be personally 142
liable in the event of any noncompliance that results in a debt owed to 143
the department; 144
(F) A disclosure of any enforcement action against, and any 145
negotiated settlement entered into by, such applicant or any owner 146
disclosed pursuant to this subsection, which action or settlement is 147
related to the sale of cigarettes, electronic nicotine delivery systems, 148
tobacco products or vapor products; 149
(G) The name of a manager or supervisor who is or will be physically 150
present at such applicant's location or proposed location; [and] 151
(H) A certification that (i) an authorized owner or named designee of 152
such applicant has successfully completed the online prevention 153
education program administered by the Department of Mental Health 154
and Addiction Services pursuant to section 17a -719, and (ii) all 155
electronic nicotine delivery systems and vapor products offered for sale 156
by the applicant comply with federal and state law, including the federal 157
Food, Drug and Cosmetic Act, 21 USC 387 et seq., as amended from time 158
to time; and 159
(I) Proof that the applicant has obtained a compliance bond as 160
required under subparagraph (B) of subdivision (3) of subsection (b) of 161
this section. 162
(2) The Department of Consumer Protection: (A) May require that an 163
applicant submit documents sufficient to establish that state and local 164
building, fire and zoning requirements will be met at the location of any 165
sale; (B) may, in the department's discretion, conduct an investigation to 166
determine whether a dealer registration shall be issued to an applicant; 167
and (C) shall not issue a dealer registration or a renewal of a dealer 168
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registration to an applicant unless the applicant certifies that an 169
authorized owner or named designee of the applicant has successfully 170
completed the online prevention education program administered by 171
the Department of Mental Health and Addiction Services pursuant to 172
section 17a-719. 173
(3) The commissioner shall issue a dealer registration or a renewal of 174
a dealer registration to any such applicant not later than thirty days after 175
the date of application unless the commissioner finds: (A) The applicant, 176
or any individual named in such application pursuant to subparagraph 177
(C) of subdivision (1) of this subsection, has made a materially false or 178
misleading statement in such application or in any other application 179
made to the commissioner; (B) the applicant has neglected to pay any 180
taxes due to this state; (C) the authorized owner or named designee of 181
the applicant has not successfully completed the online prevention 182
education program administered by the Department of Mental Health 183
and Addiction Services pursuant to section 17a-719; (D) the third-party 184
local and national criminal background check for any authorized owner 185
or named designee of the applicant [has a criminal history that is ] 186
affords a sufficient basis for denial under section 46a -80; or (E) the 187
applicant, any authorized owner of the applicant or any entity owned 188
or managed by any individual named in the applicant's application 189
pursuant to subparagraph (C) of subdivision (1) of this subsection (i) has 190
[violated] committed multiple violations of any other provision of this 191
section, (ii) is the subject of a delinquency assessment by the Department 192
of Revenue Services, or (iii) is the subject of any other adverse 193
determination by a government agency. 194
(4) A dealer registration issued under this section shall be renewed 195
annually and may be suspended or revoked at the discretion of the 196
Department of Consumer Protection. A dealer registration shall not 197
constitute property, nor shall it be subject to attachment and execution, 198
nor shall it be alienable. Each holder of a dealer registration shall 199
annually attest in each renewal application as to whether such holder 200
derived at least fifty per cent of its annual gross revenue from sales of 201
cigarettes, drug paraphernalia, electronic nicotine delivery systems, 202
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nicotine products, synthetic nicotine, tobacco products and vapor 203
products. 204
(5) The applicant shall pay to the department a nonrefundable 205
application fee of one thousand dollars, which fee shall be in addition to 206
the annual fee prescribed in subsection (d) of this section. An application 207
fee shall not be charged for an application to renew a dealer registration. 208
(d) The annual fee for a dealer registration shall be eight hundred 209
dollars. 210
(e) (1) The Department of Consumer Protection may renew a dealer 211
registration issued under this section that has expired if the applicant 212
pays to the department any late fee imposed by the Commissioner of 213
Consumer Protection pursuant to subsection (d) of section 21a-4, which 214
late fee shall be in addition to the fees prescribed in this section for the 215
dealer registration applied for. 216
(2) A person holding a dealer registration shall update, through the 217
Department of Consumer Protection's online licensing system, any 218
application information such person has provided to the department 219
pursuant to this section, including, but not limited to, any contact 220
information, ownership information or criminal histories of the 221
individual owners of the business entity, not later than thirty days after 222
any change in such information. 223
(3) A person holding a dealer registration shall be deemed to have 224
constructive notice of communications sent by the Commissioner of 225
Consumer Protection to an electronic mail address provided by such 226
person. 227
(f) (1) Any business entity in the state that sells, offers for sale or 228
possesses with intent to sell an electronic nicotine delivery system or 229
vapor product without a dealer registration as required under this 230
section shall, after a hearing conducted pursuant to chapter 54, be fined 231
not more than five thousand dollars per violation. 232
(2) Notwithstanding the provisions of subdivision (1) of this 233
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subsection, any business entity with a dealer registration that has 234
expired for a period of ninety calendar days or less and that, during such 235
ninety-day period, sells, offers for sale or possesses with intent to sell an 236
electronic nicotine delivery system or vapor product shall be fined not 237
more than five hundred dollars for each day such business entity is in 238
violation of the provisions of this subdivision. 239
[(3) A person holding a dealer registration shall update, through the 240
Department of Consumer Protection's online licensing system, any 241
application information such person has provided to the department 242
pursuant to this section, including, but not limited to, any contact 243
information, ownership information or criminal histories of the 244
individual owners of the business entity, not later than thirty days after 245
any change in such information.] 246
(g) (1) For sufficient cause found as set forth in subdivision (2) of this 247
subsection, the Commissioner of Consumer Protection may suspend or 248
revoke a dealer registration, issue fines of not more than ten thousand 249
dollars per violation, require the forfeiture of the full value of the 250
registrant's compliance bond, accept an offer in compromise or refuse to 251
grant or renew a dealer registration, [or] place the registrant on 252
probation, place conditions on such registrant or take other actions 253
authorized by law. No information derived from an inspection or 254
investigation conducted by the Department of Consumer Protection 255
related to an administrative complaint or case shall be subject to 256
disclosure under the Freedom of Information Act, as defined in section 257
1-200, unless the department has entered into a settlement agreement, 258
or otherwise concluded its investigation or inspection as evidenced by 259
case closure. Nothing in this subdivision shall be construed to prevent 260
the department from sharing any information with another state or 261
federal agency or law enforcement insofar as such information relates to 262
an investigation of any suspected violation of applicable law. 263
(2) Any of the following shall constitute sufficient cause for the 264
purposes of subdivision (1) of this subsection: 265
(A) Furnishing any false or fraudulent information in an application 266
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or any failure to comply with the representations made in an 267
application; 268
(B) A civil judgment against, or conviction of, an owner or applicant, 269
after review and application of the denial criteria set forth in section 46a-270
80; 271
(C) Any failure to maintain effective controls against diversion, theft 272
or loss of electronic nicotine delivery systems and vapor products; 273
(D) Any denial, suspension or revocation of a license or registration 274
related to the sale of cigarettes, electronic nicotine delivery systems, 275
tobacco products or vapor products, or any denial of a renewal of a 276
license or registration related to the sale of cigarettes, electronic nicotine 277
delivery systems, tobacco products or vapor products, by any federal, 278
state or local government or a foreign jurisdiction; 279
(E) Any false, misleading or deceptive representation made to the 280
public or to the department; 281
(F) Any involvement in a fraudulent or deceitful practice or 282
transaction; 283
(G) The possession, offer or sale of any illegal or controlled substance 284
by the registrant, any owner of the registrant or any person with a 285
financial interest in the registrant , unless otherwise permitted by 286
applicable law; 287
(H) Any failure to register a trade name of the business entity with 288
the town in which the registrant engages in business; 289
(I) Any failure to notify the department of any change in the 290
information concerning the business entity, owners, ownership 291
information or designated manager or supervisor; 292
(J) Any adverse administrative decision or delinquency assessment 293
against the registrant by the Department of Revenue Services; 294
(K) Any failure to cooperate, provide unfettered access to the location 295
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or provide information to the department, local law enforcement 296
authorities or any other enforcement agency concerning any matter 297
arising out of conduct in connection with a licensee or registrant; 298
(L) Advertising an electronic nicotine delivery system or vapor 299
product in any manner that (i) is designed to appeal to individuals who 300
are younger than twenty -one years of age by, among other things, (I) 301
making use of any spokesperson or celebrity who appeals to individuals 302
who are under the legal age to purchase electronic nicotine delivery 303
systems or vapor products, (II) depicting any individual who is younger 304
than twenty -five years of age using an electronic nicotine delivery 305
system or vapor product, (III) including any object, such as a toy, 306
character or cartoon character, that suggests the presence of an 307
individual who is younger than twenty-one years of age, or (IV) making 308
use of any other depiction or method that is designed in any manner to 309
be appealing to an individual who is younger than twenty-one years of 310
age, or (ii) claims or implies that (I) any electronic nicotine delivery 311
system or vapor product has any curative or therapeutic effect, or (II) 312
any medical claim is true; 313
(M) Allowing an employee to promote any electronic nicotine 314
delivery system or vapor product for a wellness purpose; or 315
(N) Any failure to comply with any provision of this chapter or any 316
regulation adopted pursuant to this chapter. 317
(h) (1) Upon refusal to issue or renew a dealer registration, the 318
Commissioner of Consumer Protection shall notify the applicant of the 319
denial and of the applicant's right to request a hearing not later than ten 320
days after the applicant receives the notice of denial. If the applicant 321
requests a hearing within such ten -day period, the commissioner shall 322
give notice of the grounds for the commissioner's refusal and shall 323
conduct a hearing concerning such refusal in accordance with the 324
provisions of chapter 54 concerning contested cases. If the 325
commissioner's denial is sustained after such hearing, the applicant 326
shall not apply for a new dealer registration for a period of one year after 327
the date on which such denial was sustained. 328
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[(i)] (2) No person whose dealer registration has been revoked, 329
including the owners of such registrant, and any person with a financial 330
interest in such registrant, shall apply for a dealer registration or have a 331
financial interest in an applicant under this section for a period of one 332
year after the date of such revocation. 333
[(j)] (3) The voluntary surrender of a dealer registration, or the failure 334
to renew a dealer registration, shall not prevent the Commissioner of 335
Consumer Protection from suspending or revoking such dealer 336
registration or imposing other penalties permitted by applicable law. 337
(i) The Commissioner of Consumer Protection may impose a civil 338
penalty of not more than ten thousand dollars for each electronic 339
nicotine delivery system and vapor product sold, offered for sale or 340
marketed in violation of this section. For purposes of this subdivision, 341
each such electronic nicotine delivery system or vapor product shall 342
constitute a separate violation. The Attorney General, upon request of 343
the commissioner, may bring an action in the superior court for the 344
judicial district of Hartford to collect such civil penalty and for any 345
injunctive or equitable relief. In any action brought by the Attorney 346
General to enforce the provisions of this section, the state shall be 347
entitled to recover, when the state is the prevailing party, the costs of 348
investigation, expert witness fees, costs of the action and reasonable 349
attorneys' fees. 350
(j) (1) Any electronic nicotine delivery system or vapor product sold, 351
offered for sale or marketed in violation of this section by a registrant 352
shall be deemed a common nuisance and shall be subject to immediate 353
seizure by the state or local police. The authorized officer shall hold such 354
electronic nicotine delivery system or vapor product subject to 355
confiscation and destruction by order of a court of competent 356
jurisdiction. All costs of such seizure, confiscation and destruction shall 357
be borne by the registrant selling, offering for sale or marketing such 358
electronic nicotine delivery system or vapor product and may be paid 359
from the proceeds of the registrant's compliance bond or sought from 360
the registrant's fiduciary agent or guarantor. 361
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(2) Any controlled substance or cannabis sold, offered for sale or 362
marketed by a registrant in violation of chapter 420b, 420f or 420h, as 363
applicable, or regulations adopted thereunder, shall be subject to the 364
provisions of subdivision (1) of this subsection. 365
(k) A violation of this section shall be an unfair trade practice 366
pursuant to subsection (a) of section 42-110b. 367
[(k)] (l) All fees, settlement amounts and fines collected under this 368
section shall be deposited in the consumer protection enforcement 369
account established in section 21a-8a. 370
Sec. 2. (NEW) (Effective October 1, 2026) (a) (1) Not later than January 371
1, 2027, each manufacturer of an electronic nicotine delivery system or 372
a vapor product that is sold or offered for sale in the state shall register 373
such delivery system or product with the Department of Consumer 374
Protection and provide the information required under this section. 375
Each such manufacturer shall renew its registration annually and shall 376
pay an initial registration fee of two thousand dollars for each electronic 377
delivery system or vapor product the manufacturer sells or offers for 378
sale in the state and a renewal fee of five hundred dollars for each such 379
delivery system or product. 380
(2) Not later than October 1, 2027, the Department of Consumer 381
Protection shall develop and maintain a directory of (A) all electronic 382
nicotine delivery systems and vapor products sold or offered for sale in 383
the state, and (B) the manufacturers of such delivery systems and 384
products. The department shall post the directory on its Internet web 385
site and shall update it as necessary, but not less than annually. 386
(3) On and after January 1, 2028, no electronic nicotine delivery 387
system or vapor product that is not listed in the directory shall be sold 388
or offered for sale in the state. 389
(b) (1) Each manufacturer of an electronic nicotine delivery system or 390
a vapor product that is sold or offered for sale in the state shall certify 391
under penalty of false statement that such electronic delivery system or 392
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vapor product (A) has been issued a marketing granted order by the 393
federal Food and Drug Administration, or (B) was on the market as of 394
September 9, 2020, and the manufacturer has received a filing letter or a 395
substantive review letter from the federal Food and Drug 396
Administration confirming that the application for the electronic 397
delivery system or vapor product is currently undergoing scientific 398
evaluation by the federal government. 399
(2) Each manufacturer shall provide to the Commissioner of 400
Consumer Protection (A) a copy of the marketing granted order or the 401
filing letter or substantive review letter, as applicable, (B) a unique 402
submission tracking number for each electronic delivery system or 403
vapor product, and (C) an annual certification that the electronic 404
delivery system or vapor product has not been issued a marketing 405
denial order by the federal Food and Drug Administration or been 406
withdrawn from the federal review process. 407
(c) On and after the date set forth in subdivision (3) of subsection (a) 408
of this section, any electronic delivery system or vapor product that is 409
sold or offered for sale in the state in violation of this section shall be 410
subject to the penalties and seizure provisions set forth in section 21a -411
415 of the general statutes, as amended by this act. 412
This act shall take effect as follows and shall amend the following
sections:

Section 1 October 1, 2026 21a-415
Sec. 2 October 1, 2026 New section

Statement of Legislative Commissioners:
In Section 1(b)(2), "As used in this section" was changed to "As used in
this subsection" for accuracy, and in Section 2(a)(1), "such delivery
system or product" was added after "shall register" for clarity.

FIN Joint Favorable Subst.

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The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of
the General Assembly, solely for purposes of information, summarization and explanation and do not
represent the intent of the General Assembly or either chamber thereof for any purpose. In general,
fiscal impacts are based upon a variety of informational sources, including the analyst’s professional
knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final
products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note

State Impact:
Agency Affected Fund-Effect FY 27 $ FY 28 $
Consumer Protection, Dept. GF - Cost 53,436 65,248
State Comptroller - Fringe
Benefits1
GF - Cost 17,329 23,105
Resources of the General Fund GF - Potential
Revenue Gain
See Below See Below
Note: GF=General Fund

Municipal Impact: None
Explanation
The bill makes various changes to electronic nicotine delivery system
and vapor product (i.e. e-cigarette) regulations resulting in the costs and
potential revenue gains described below.
Costs:
The bill requires the Department of Consumer Protection (DCP) to
ensure e-cigarette dealers have a compliance bond of at least $250,000
and requires DCP to maintain a directory of all e-cigarettes sold in the
state, resulting in a total cost to the state of $70,765 in FY 27 and $88,353
in FY 28.
To meet the requirements of the bill , DCP will need approximately
$10,000 per year for overtime for existing staff and the agency will have

1The fringe benefit costs for most state employees are budgeted centrally in accounts
administered by the Comptroller. The estimated active employee fringe benefit cost
associated with most personnel changes is 41.82% of payroll in FY 27.
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to hire a processing technician for a cost of $43,436 in FY 272 and $55,248
in FY 28, along with associated fringe benefit costs of $ 17,329 in FY 27
and $23,105 in FY 28. The overtime funding and additional employee
are needed to ensure e -cigarette dealers procure compliance bonds,
process the data submitted by the manufacturers , and maintain the
directory.
Potential Revenue Gain:
Section 1 allows DCP to impose a civil penalty of up to $10,000 for
certain e-cigarette violations resulting in a potential revenue gain to the
General Fund (GF) to the extent violations occur.
Section 2 requires manufacturers to pay an initial registration fee of
$2,000 and annual renewal fee of $500 for each e-cigarette product sold
in the state resulting in a revenue gain to the GF.
The Out Years
The annualized ongoing fiscal impact identified above w ill continue
into the future subject to employee wage increases, the amount of
overtime required, the number of violations, the number of e -cigarette
products, and inflation.

2Costs in FY 27 reflect nine months of expenditures due to the bill's 10/1/2026 effective
date.
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OLR Bill Analysis
sHB 5539

AN ACT CONCERNING REQUIREMENTS FOR AND PENALTIES ON
HOLDERS OF DEALER REGISTRATIONS REGARDING
ELECTRONIC NICOTINE DELIVERY SYSTEMS AND VAPOR
PRODUCTS AND MANUFACTURER REGISTRATION
REQUIREMENTS OF SUCH DELIVERY SYSTEMS AND PRODUCTS.

SUMMARY
This bill expands the requirements for businesses that sell electronic
nicotine delivery systems (ENDS) or vapor products, commonly known
as e -cigarette dealers. By law, e -cigarette dealers must have a dealer
registration for each of their business locatio ns and renew it annually.
Among other things, the bill:
1. requires certain e-cigarette dealers to get a compliance bond of at
least $250,000 that is conditioned on the dealer’s compliance with
applicable laws and payment of related taxes, fees, penalties, and
other charges;
2. expands the individual owners who must provide their contact
information and a third -party background check as part of a
dealer’s application to include anyone with at least 5%, rather
than 10%, ownership or interest rights;
3. expands the information dealer registration applicants must
provide to include a certification that the ENDS or vapor
products they sell comply with federal and state laws;
4. generally expands the circumstances under which the
Department of Consumer Protection (DCP) may deny a dealer’s
registration or take other enforcement actions;
5. extends the existing one-year reapplication prohibition to anyone
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with a financial interest in the e -cigarette dealer and prohibits
anyone whose dealer registration was revoked from having a
financial interest in another applicant for one year after the
revocation date;
6. authorizes the DCP commissioner to impose a civil penalty of up
to $10,000 for each ENDS or vapor product sold in violation of
the dealer registration law and requires these products to be
deemed a common nuisance and subject to seizure by police;
7. specifies that registered e-cigarette dealers are deemed to have
constructive notice of communications the DCP commissioner
sends to an email address they provided;
8. makes violations of the dealer registration law a violation of the
Connecticut Unfair Trade Practices Act (CUTPA, see
BACKGROUND); and
9. makes technical and conforming changes.
The bill also establishes product certification and registration
requirements for anyone manufacturing ENDS and vapor products sold
in Connecticut. Specifically, it requires these manufacturers to:
1. by October 1, 2026, certify that their products have received
specified federal Food and Drug Administration ( FDA)
approvals or documents and
2. by January 1, 2027, annually register with DCP each product they
sell in Connecticut and pay an initial $2,000 registration fee and
$500 renewal fee for each one.
It requires DCP, by October 1, 2027, to create an online directory of
ENDS and vapor products sold in the state and bans the sale of unlisted
products starting January 1, 2028.
EFFECTIVE DATE: October 1, 2026
§ 1 — E-CIGARETTE DEALERS
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Compliance Bonds
The bill imposes a compliance bond requirement on e -cigarette
dealers that derive at least 50% of their annual gross revenue from
selling e -cigarettes and cigarettes; drug paraphernalia; synthetic
nicotine; and nicotine, tobacco, or vapor products. The bond must be for
at least $250,000 and may be (1) provided by a surety bond company, (2)
posted as cash in an attorney’s escrow account, or (3) posted as U.S.
government bonds payable to the state.
The bond must be:
1. conditioned on the registration holder complying with the laws
and regulations for e-cigarette businesses and paying all related
taxes, fees, penalties, and charges and
2. forfeited to the state if the holder violates any applicable business
law.
The bill allows DCP to require the compliance bond’s full value to be
forfeited and its proceeds used to pay fines and penalties assessed
against the holder or as reimbursement for product seizure,
confiscation, and destruction costs (as described below).
Individual Owners
Existing law generally requires anyone applying for an initial or
renewal e-cigarette dealer registration to provide the name and contact
information and a third -party background check for the business’s
individual owners (those with a direct or indirect f inancial interest in
the applicant). The bill expands this requirement to cover anyone with
at least 5%, rather than 10%, ownership or interest rights in the business.
As under current law, this includes the total financial interest held by
the individual owner and his or her spouse, parents, and children.
As under existing law, applicants do not need to provide this
information if they are a publicly traded company listed on a national
stock exchange.
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Grounds for Denying an Initial or Renewal Dealer Registration
Under current law, the DCP commissioner must issue a dealer
registration within 30 days of the application unless he makes certain
findings. The bill extends the same timeframe and reasons for denying
a dealer registration to renewals and expands the reasons for a denial to
include the following:
1. if an individual owner named in the application made materially
false or misleading statements in a DCP application, rather than
just the applicant;
2. if the business owner’s or named designee’s criminal background
check is sufficient for denying the registration under the existing
law that prohibits state -issued credentials because of a prior
criminal conviction, rather than if the commissioner finds that the
applicant has a criminal history sufficient to disqualify him or her
for a state-issued credential under this law; and
3. if the applicant, its authorized owner, or any entity owned or
managed by any individual owner named in the application (a)
committed multiple violations of the e-cigarette dealer law, (b) is
subject to a delinquency assessment by the Department of
Revenue Services, or (c) is the subject of any other adverse
determination by a government agency, rather than if the
applicant violated any other provision of the e -cigarette dealer
law.
Registration Requirements
The bill expands the information applicants for an initial or renewal
e-cigarette dealer registration must provide to include (1) proof that
they have obtained the compliance bond described above, if applicable,
and (2) a certification that the ENDS and va por products they offer for
sale comply with federal and state law, including the federal Food, Drug
and Cosmetic Act’s requirement for tobacco products.
Sufficient Cause for DCP Enforcement Actions
Current law allows the DCP commissioner to take certain actions
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against an e-cigarette dealer for sufficient cause, including suspending,
revoking, or refusing to grant or renew their registration. Under current
law, sufficient cause includes illegally possessing, offering, or selling
any illegal or controlled substance. The bill specifies that this applies to
the registrant, its owner, or anyone with a financial interest in the
registrant (presumably the individual owners named in the application,
as described above).
Reapplication Prohibition
Current law prohibits anyone whose dealer registration was revoked,
including the registrant’s owners, from applying for a dealer
registration for one year after the revocation date. The bill (1) extends
this reapplication prohibition to anyone with a fina ncial interest in the
registrant and (2) bars anyone whose dealer registration was revoked
from having a financial interest in another applicant for one year after
the revocation date.
Civil Penalty
The bill authorizes the DCP commissioner to impose a civil penalty
of up to $10,000 for each ENDS and vapor product sold, offered for sale,
or marketed in violation of t he dealer registration law. Each of these
products is a separate violation. The bill allows the attorney general,
upon the DCP commissioner’s request, to bring an action in the Hartford
Superior Court to collect the civil penalty and for any injunctive or
equitable relief. In any enforcement action the attorney general brings
where the state wins, the state may recover the investigation costs,
expert witness fees, costs of the action, and reasonable attorney’s fees.
Seizure of Products in Violation of the Law
Under the bill, any ENDS or vapor products sold, offered for sale, or
marketed in violation of the dealer registration law , as well as any
controlled substance or cannabis sold, offered for sale, or marketed by a
dealer in violation of state law , are a common nuisance and subject to
immediate seizure by state or local police.
The officers must hold the products subject to confiscation and
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destruction by a court order and the seller or marketer is liable for all
seizure, confiscation, and destruction costs, which may be paid from the
dealer’s compliance bond or sought from its fiduciary agent or
guarantor.
§ 2 — PRODUCT CERTIFICATION AND REGISTRATION
REQUIREMENTS FOR E-CIGARETTE MANUFACTURERS
Required Certification of FDA Actions
Starting October 1, 2026, the bill requires anyone manufacturing
ENDS and vapor products sold or offered for sale in Connecticut (e -
cigarette manufacturers) to certify, under penalty for false statement,
that each product:
1. has been issued a marketing granted order (MGO) by the FDA or
2. was on the market as of September 9, 2020, and the manufacturer
received a filing or substantive review letter from the FDA
confirming that the product’s application is currently
undergoing scientific evaluation by the federal government.
By law, making a false statement is a class A misdemeanor
(punishable by up to 364 days’ imprisonment, a fine of $2,000, or both).
E-cigarette manufacturers must give the DCP commissioner (1) a
copy of the FDA’s MGO or letter, as applicable; (2) a unique submission
tracking number for each product; and (3) an annual certification that
the product has not been issued an FDA marketing d enial order or
withdrawn from the federal review process.
Product Registration and Directory
Starting January 1, 2027, the bill requires e-cigarette manufacturers to
register their products with DCP annually, subject to an initial $2,000
registration fee and $500 renewal fee for each product.
DCP must create an online directory of these products and their
manufacturers by October 1, 2027, and update it at least annually.
Starting January 1, 2028, the bill prohibits selling or offering to sell any
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products not listed in the directory and makes products sold in violation
of the bill’s product certification and registration requirements subject
to the penalties and seizure provisions for e -cigarettes, as amended by
the bill.
BACKGROUND
CUTPA
By law, CUTPA prohibits businesses from engaging in unfair and
deceptive acts or practices. It allows the DCP commissioner, under
specified procedures, to issue regulations defining an unfair trade
practice, investigate complaints, issue cease and desist o rders, order
restitution in cases involving less than $10,000, impose civil penalties of
up to $5,000, enter into consent agreements, ask the attorney general to
seek injunctive relief, and accept voluntary statements of compliance. It
also allows individu als to sue. Courts may issue restraining orders;
award actual and punitive damages, costs, and reasonable attorney’s
fees; and impose civil penalties of up to $5,000 for willful violations and
up to $25,000 for a restraining order violation.
Related Bill
sSB 231 (File 174), favorably reported by the General Law Committee,
contains the same provisions that generally expand the reasons for
which DCP must deny a dealer registration.
sHB 5228 (File 235), favorably reported by the General Law
Committee, requires DCP to deny an initial or renewal e-cigarette dealer
registration if more than (1) half of the applicant’s annual gross revenue
comes from sales of certain nicotine -related products and (2) 25% of its
retail sales area is dedicated to selling these products. It also requires
DCP to deny an initial dealer registration if the proposed business is
located in a municipality that already has one dealer for every 2,500
residents based on the most recently completed decennial census.

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COMMITTEE ACTION
Finance, Revenue and Bonding Committee
Joint Favorable Substitute
Yea 53 Nay 0 (04/01/2026)