AN ACT RELATING TO TAXATION -- CIGARETTE, OTHER TOBACCO PRODUCTS, AND ELECTRONIC NICOTINE-DELIVERY SYSTEM PRODUCTS (Permits dealers without a distributor's license to resell cigars, and ultra premium pipe tobacco, excluding pipe tobacco intended for cigarettes, to other dealers.)

H7592

2026 -- H 7592
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LC004716
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
RELATING TO TAXATION -- CIGARETTE, OTHER TOBACCO PRODUCTS, AND
ELECTRONIC NICOTINE-DELIVERY SYSTEM PRODUCTS

Introduced By:
Representatives Noret, Dawson, Bennett, Craven, DeSimone, Phillips,
Shanley, Costantino, J. Brien, and Corvese

Date Introduced:
February 06, 2026

Referred To:
House Finance
It is enacted by the General Assembly as follows:
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SECTION 1. Sections 44-20-1 and 44-20-8.2 of the General Laws in Chapter 44-20 entitled
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"Cigarette, Other Tobacco Products, and Electronic Nicotine-Delivery System Products" are
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hereby amended to read as follows:
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44-20-1. Definitions.
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Whenever used in this chapter, unless the context requires otherwise:
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(1) “Administrator” means the tax administrator.
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(2) “Cigarettes” means and includes any cigarettes suitable for smoking in cigarette form,
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“heat not burn products,” and each sheet of cigarette rolling paper, including but not limited to,
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paper made into a hollow cylinder or cone, made with paper or any other material, with or without
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a filter suitable for use in making cigarettes.
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(3) “Dealer” means any person whether located within or outside of this state, who sells or
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distributes cigarettes and/or other tobacco products and/or electronic nicotine-delivery system
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products to a consumer in this state.
A dealer may also resell cigars to other dealers pursuant to §
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40-20-8.2.
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(4) “Distributor” means any person:
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(i) Whether located within or outside of this state, other than a dealer, who sells or
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distributes cigarettes and/or other tobacco products and/or electronic nicotine-delivery system
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products within or into this state. Such term shall not include any cigarette or other tobacco product

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manufacturer, export warehouse proprietor, or importer with a valid permit under 26 U.S.C. § 5712,
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if such person sells or distributes cigarettes and/or other tobacco products and/or electronic
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nicotine-delivery system products in this state only to licensed distributors, or to an export
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warehouse proprietor or another manufacturer with a valid permit under 26 U.S.C. § 5712;
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(ii) Selling cigarettes and/or other tobacco products and/or electronic nicotine-delivery
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system products directly to purchasers in this state by means of at least twenty-five (25) vending
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machines;
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(iii) Engaged in this state in the business of manufacturing cigarettes and/or other tobacco
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products and/or electronic nicotine-delivery system products or any person engaged in the business
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of selling cigarettes and/or other tobacco products and/or electronic nicotine-delivery system
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products to dealers, or to other persons, for the purpose of resale only; provided, that seventy-five
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percent (75%) of all cigarettes and/or other tobacco products and/or electronic nicotine-delivery
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system products sold by that person in this state are sold to dealers or other persons for resale and
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selling cigarettes and/or other tobacco products and/or electronic nicotine-delivery system products
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directly to at least forty (40) dealers or other persons for resale; or
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(iv) Maintaining one or more regular places of business in this state for that purpose;
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provided, that seventy-five percent (75%) of the sold cigarettes and/or other tobacco products
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and/or electronic nicotine-delivery system products are purchased directly from the manufacturer
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and selling cigarettes and/or other tobacco products and/or electronic nicotine-delivery system
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products directly to at least forty (40) dealers or other persons for resale.
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(5) “Electronic nicotine-delivery system” means an electronic device that may be used to
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simulate smoking in the delivery of nicotine or other substance to a person inhaling from the device,
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and includes, but is not limited to, an electronic cigarette, electronic cigar, electronic cigarillo,
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electronic little cigars, electronic pipe, electronic hookah, e-liquids, e-liquid products, or any related
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device and any cartridge or other component of such device.
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(6) “Electronic nicotine-delivery system products” means any combination of electronic
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nicotine-delivery system and/or e-liquid and/or any derivative thereof, and/or any e-liquid
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container. Electronic nicotine-delivery system products shall include hemp-derived consumable
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CBD products as defined in § 2-26-3.
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(7) “E-liquid” and “e-liquid products” mean any liquid or substance placed in or sold for
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use in an electronic nicotine-delivery system that generally utilizes a heating element that
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aerosolizes, vaporizes, or combusts a liquid or other substance containing nicotine or nicotine
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derivative:
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(i) Whether the liquid or substance contains nicotine or a nicotine derivative; or

LC004716 - Page 2 of 6
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(ii) Whether sold separately or sold in combination with a personal vaporizer, electronic
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nicotine-delivery system, or an electronic inhaler.
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(8) “Importer” means any person who imports into the United States, either directly or
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indirectly, a finished cigarette or other tobacco product and/or electronic nicotine-delivery system
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product for sale or distribution.
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(9) “Licensed,” when used with reference to a manufacturer, importer, distributor, or
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dealer, means only those persons who hold a valid and current license issued under § 44-20-2 for
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the type of business being engaged in. When the term “licensed” is used before a list of entities,
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such as “licensed manufacturer, importer, wholesale dealer, or retailer dealer,” such term shall be
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deemed to apply to each entity in such list.
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(10) “Manufacturer” means any person who manufactures, fabricates, assembles,
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processes, or labels a finished cigarette and/or other tobacco products and/or electronic nicotine-
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delivery system products.
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(11) “Other tobacco products” (OTP) means any products that are made from or derived
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from tobacco or that contain nicotine, whether natural or artificial, including, but not limited to,
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cigars (excluding Little Cigars, as defined in § 44-20.2-1, which are subject to cigarette tax),
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cheroots, stogies, smoking tobacco (including granulated, plug cut, crimp cut, ready rubbed and
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any other kinds and forms of tobacco suitable for smoking in a pipe or otherwise), chewing tobacco
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(including Cavendish, twist, plug, scrap and any other kinds and forms of tobacco suitable for
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chewing), any and all forms of hookah, shisha and “mu’assel” tobacco, snuff, and shall include any
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other articles or products made of, derived from, or containing tobacco or nicotine, in whole or in
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part, or any tobacco or nicotine substitute, except cigarettes and electronic nicotine-delivery system
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products. Other tobacco products shall not mean any product that has been approved by the United
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States Food and Drug Administration for the sale of or use as a tobacco or nicotine cessation
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product or for other medical purposes and is marketed and sold or prescribed exclusively for that
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approved purpose.
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(12) “Person” means any individual, including an employee or agent, firm, fiduciary,
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partnership, corporation, trust, or association, however formed.
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(13) “Pipe” means an apparatus made of any material used to burn or vaporize products so
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that the smoke or vapors can be inhaled or ingested by the user.
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(14) “Place of business” means any location where cigarettes and/or other tobacco products
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and/or electronic nicotine-delivery system products are sold, stored, or kept, including, but not
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limited to; any storage room, attic, basement, garage or other facility immediately adjacent to the
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location. It also includes any receptacle, hide, vessel, vehicle, airplane, train, or vending machine.

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(15) “Sale” or “sell” means gifts, exchanges, and barter of cigarettes and/or other tobacco
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products and/or electronic nicotine-delivery system products. The act of holding, storing, or
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keeping cigarettes and/or other tobacco products and/or electronic nicotine-delivery system
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products at a place of business for any purpose shall be presumed to be holding the cigarettes and/or
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other tobacco products and/or electronic nicotine-delivery system products for sale. Furthermore,
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any sale of cigarettes and/or other tobacco products and/or electronic nicotine-delivery system
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products by the servants, employees, or agents of the licensed dealer during business hours at the
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place of business shall be presumed to be a sale by the licensee.
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(16) “Stamp” means the impression, device, stamp, label, or print manufactured, printed,
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or made as prescribed by the administrator to be affixed to packages of cigarettes, as evidence of
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the payment of the tax provided by this chapter or to indicate that the cigarettes are intended for a
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sale or distribution in this state that is exempt from state tax under the provisions of state law; and
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also includes impressions made by metering machines authorized to be used under the provisions
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of this chapter.
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(17) “Traditional pipe” means a reuseable smoking pipe, generally made of briar wood or
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meerschaum, not glass or metal.
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(18) “Ultra premium pipe tobacco” means a tobacco product intended exclusively for use
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in a traditional pipe that meets all of the following criteria:
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(i) Produced from whole-leaf, long-cut, or ribbon-cut tobacco varieties (including, but not
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limited to, Virginia, burley, perique, latakia, or oriental leaf) and minimally processed, without
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reconstituted tobacco, tobacco scraps, or homogenized tobacco material;
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(ii) Blended, aged, pressed, or cured in small batches using traditional or artisanal methods,
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not mass-produced through automated high-volume industrial processes and designed solely for
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use in smoking pipes;
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(iii) Not intended for cigarette rolling, cigar wrapping, or use in disposable tobacco
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products; and
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(iv) Contains no characterizing flavors designed to appeal to minors, but may include
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traditional pipe-tobacco casings or top notes (such as natural spirits, sugars, or botanical essences)
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used solely to enhance aroma and smoking quality, not to mask low-quality tobacco.
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(v) Ultra-premium pipe tobacco excludes cigarette tobacco, roll-your-own tobacco, cigar
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filler, shisha/hookah tobacco, or any tobacco product erroneously labeled as pipe tobacco.
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44-20-8.2. Transactions only with licensed manufacturers, importers, distributors,
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and dealers.
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(a)
A manufacturer or importer may sell or distribute cigarettes and/or other tobacco

LC004716 - Page 4 of 6
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products and/or electronic nicotine-delivery system products to a person located or doing business
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within this state, only if such person is a licensed importer or distributor. An importer may obtain
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cigarettes and/or other tobacco products and/or electronic nicotine-delivery system products only
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from a licensed manufacturer. A distributor may sell or distribute cigarettes and/or other tobacco
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products and/or electronic nicotine-delivery system products to a person located or doing business
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within this state, only if such person is a licensed distributor or dealer. A distributor may obtain
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cigarettes and/or other tobacco products and/or electronic nicotine-delivery system products only
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from a licensed manufacturer, importer, or distributor. A dealer may obtain cigarettes and/or other
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tobacco products and/or electronic nicotine-delivery system products only from a licensed
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distributor.
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(b)
Provided, however,
this section

subsection (a) of this section
shall not apply to cigars
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and ultra premium pipe tobacco, not including tobacco intended for cigarettes. Provided, further,
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that dealers without a distributor's license may resell cigars to other dealers
.
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SECTION 2. This act shall take effect upon passage.
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LC004716
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO TAXATION -- CIGARETTE, OTHER TOBACCO PRODUCTS, AND
ELECTRONIC NICOTINE-DELIVERY SYSTEM PRODUCTS
***
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This act would permit dealers without a distributor's license to resell cigars, and ultra
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premium pipe tobacco, excluding tobacco intended for cigarettes, to other dealers.
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This act would take effect upon passage.
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LC004716
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