AN ACT RELATING TO TAXATION -- CIGARETTE, OTHER TOBACCO PRODUCTS, AND ELECTRONIC NICOTINE-DELIVERY SYSTEMS PRODUCTS (Defines “electronic nicotine-delivery system shop” and requires that ten percent (10%) of sales revenue from said shops be transferred to the tobacco cessation programs pursuant to § 27-20-53.)

S2844

2026 -- S 2844
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LC005879
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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 SYSTEMS PRODUCTS

Introduced By:
Senators DiPalma, Ciccone, and Felag

Date Introduced:
March 04, 2026

Referred To:
Senate Finance
It is enacted by the General Assembly as follows:
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SECTION 1. Sections 40-20-1 and 44-20-61 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.
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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) “Electronic nicotine-delivery system shop” means any premises dedicated to the
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display, sale, distribution, delivery, offering, furnishing, or marketing of electronic nicotine-
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delivery system products, liquid nicotine containers or vapor products, or any products as defined
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in § 11-9-13.4, to consumers over the age of twenty-one (21), in compliance with chapter 9 of title
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11.
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(7)
(8)
“E-liquid” and “e-liquid products” mean any liquid or substance placed in or sold

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for 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
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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)
(9)
“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)
(10)
“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)
(11)
“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)
(12)
“Other tobacco products” (OTP) means any products that are made from or
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derived from tobacco or that contain nicotine, whether natural or artificial, including, but not
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limited to, cigars (excluding Little Cigars, as defined in § 44-20.2-1, which are subject to cigarette
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tax), cheroots, stogies, smoking tobacco (including granulated, plug cut, crimp cut, ready rubbed
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and any other kinds and forms of tobacco suitable for smoking in a pipe or otherwise), chewing
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tobacco (including Cavendish, twist, plug, scrap and any other kinds and forms of tobacco suitable
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for chewing), any and all forms of hookah, shisha and “mu’assel” tobacco, snuff, and shall include
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any other articles or products made of, derived from, or containing tobacco or nicotine, in whole or
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in part, or any tobacco or nicotine substitute, except cigarettes and electronic nicotine-delivery
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system products. Other tobacco products shall not mean any product that has been approved by the
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United 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)
(13)
“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)
(14)
“Pipe” means an apparatus made of any material used to burn or vaporize products
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so that the smoke or vapors can be inhaled or ingested by the user.

LC005879 - Page 3 of 6
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(14)
(15)
“Place of business” means any location where cigarettes and/or other tobacco
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products and/or electronic nicotine-delivery system products are sold, stored, or kept, including,
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but not limited to; any storage room, attic, basement, garage or other facility immediately adjacent
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to the location. It also includes any receptacle, hide, vessel, vehicle, airplane, train, or vending
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machine.
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(15)
(16)
“Sale” or “sell” means gifts, exchanges, and barter of cigarettes and/or other
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tobacco products and/or electronic nicotine-delivery system products. The act of holding, storing,
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or 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)
(17)
“Stamp” means the impression, device, stamp, label, or print manufactured,
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printed, or made as prescribed by the administrator to be affixed to packages of cigarettes, as
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evidence of the payment of the tax provided by this chapter or to indicate that the cigarettes are
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intended for a sale or distribution in this state that is exempt from state tax under the provisions of
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state law; and also includes impressions made by metering machines authorized to be used under
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the provisions of this chapter.
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44-20-61. Product restrictions on electronic nicotine-delivery system products.
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(a) For purposes of this section, the following terms shall have the following meanings:
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(1) “Characterizing flavor” means a distinguishable taste or aroma, other than the taste or
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aroma of tobacco or menthol,
whether naturally or artificially flavored,
distinguishable by an
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ordinary consumer, imparted either prior to, or during, consumption of an electronic nicotine-
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delivery system product or component part thereof, including, but not limited to, tastes or aromas
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relating to any fruit, mint, wintergreen, chocolate, vanilla, honey, candy, cocoa, dessert, alcoholic
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beverage, herb, or spice or which impart a cooling or numbing sensation. The determination of
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whether an electronic nicotine-delivery system product has a characterizing flavor shall not be
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based solely on the use of additives, flavorings, or particular ingredients, but shall instead consider
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all aspects of a final product including, but not limited to, taste, flavor and aroma, product labeling,
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and advertising statements. A flavor shall be presumed to be a characterizing flavor if a dealer,
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manufacturer, or distributor has made a statement or claim directed to consumers or the public
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about such flavor, whether expressed or implied, that it has a distinguishable taste or aroma (other
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than the taste or aroma of tobacco or menthol).

LC005879 - Page 4 of 6
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(2)
“Electronic nicotine-delivery system shop” as defined in § 44-20-1.
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(3)
“Flavored electronic nicotine-delivery system product” means any electronic nicotine-
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delivery system product that imparts a characterizing flavor.
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(b) The sale, or offer for sale of, or the possession with intent to sell or to offer for sale,
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flavored electronic nicotine-delivery system products to consumers within the state of Rhode Island
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is hereby prohibited
, except at an electronic nicotine-delivery system shop
. Compassion centers
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and licensed cultivators registered with the state of Rhode Island department of business regulation-
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office of cannabis regulation under chapter 28.6 of title 21 are exempt from this provision except
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as to products that contain, are made of, or are derived from tobacco or nicotine, natural or
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synthetic.
No electronic nicotine-delivery system shop shall sell, distribute, or permit the sale of
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any electronic nicotine-delivery system or related product unless the purchaser’s age has been
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verified.
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(c) Ten percent (10%) of revenues collected from the sale of electronic nicotine-delivery
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systems sold by exempt shops shall be transferred to the tobacco cessation programs established in
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§ 27-20-53.
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(d) Any penalties assessed for electronics nicotine-delivery shops in violation of this
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section, or in violation of § 11-9-13, shall be doubled. Any costs associated with storing and/or
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destroying confiscated material shall be borne by the shop from whom the material was confiscated.
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SECTION 2. This act shall take effect upon passage.
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LC005879
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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 SYSTEMS PRODUCTS
***
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This act would define “electronic nicotine-delivery system shop” and require that ten
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percent (10%) of sales revenue from said shops be transferred to the tobacco cessation programs
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pursuant to § 27-20-53. The act also would double the penalties for any violations by the shops and
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assess payments for storing and/or destroying confiscated materials.
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This act would take effect upon passage.
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LC005879
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