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HB2359 • 2026

Tobacco, Tobacco Products

AN ACT to amend Tennessee Code Annotated, Title 39, Chapter 17; Title 43; Title 57 and Title 67, Chapter 4, Part 10, relative to vapor products.

Children Education Taxes
Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
Hawk, Yager
Last action
2026-04-16
Official status
H. Placed on Regular Calendar for 4/20/2026
Effective date
Not listed

Plain English Breakdown

The official source material does not provide information about current tax rates or their changes.

Tennessee Vapor Product Tax and Penalty Act

This bill changes how vapor products are taxed in Tennessee by updating definitions of 'consumable material' and 'vapor product', and clarifies that fines for selling these products to minors under 21 years old must be issued by the Alcoholic Beverage Commission.

What This Bill Does

  • Updates the definition of 'consumable material' used in vapor products to include both natural and synthetic liquid nicotine solutions, as well as analogues.
  • Revises the definition of 'vapor product' to better describe noncombustible items that produce or emit vapor using a heating element, battery, electronic circuit, or other mechanism.
  • Requires fines for selling vapor products to minors under 21 years old to be issued by the Alcoholic Beverage Commission.

Who It Names or Affects

  • Vapor product manufacturers and sellers in Tennessee
  • The state's Department of Revenue and Alcoholic Beverage Commission

Terms To Know

Consumable material
A liquid nicotine solution, whether natural or synthetic, or a liquid nicotine analogue intended for use in a vapor product.
Vapor product
A noncombustible item that uses a mechanical heating element, battery, electronic circuit, or other mechanism to produce or emit vapor from consumable materials.

Limits and Unknowns

  • The bill does not specify how much revenue will be generated from the sale of liquid nicotine analogues.
  • It is unclear how many retailers currently sell these products and whether they are regulated under federal law.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

Amendment 1-0 to HB2359

Plain English: House Judiciary 1 Amendment No.

  • House Judiciary 1 Amendment No.
  • 1 to HB2359 Farmer Signature of Sponsor AMEND Senate Bill No.
  • 2293* House Bill No.
  • 2359 HA0769 016240 - 1 - by inserting the following new sections immediately preceding the last section and renumbering the subsequent section accordingly: SECTION 4.
Amendment 2-0 to HB2359

Plain English: House Finance, Ways, and Means 1 Amendment No.

  • House Finance, Ways, and Means 1 Amendment No.
  • 2 to HB2359 Hicks G Signature of Sponsor AMEND Senate Bill No.
  • 2293* House Bill No.
  • 2359 HA1197 018123 - 1 - by deleting all language after the enacting clause and substituting: SECTION 1.
Amendment 3-0 to HB2359

Plain English: The amendment changes Tennessee's laws about selling vapor products near schools by adding restrictions for new and existing retailers.

  • New retailers cannot sell High-Density Concentrated Products (HDCPs) within 1,000 feet of a school unless they were already selling them before December 31, 2023.
  • Existing licensed retailers also cannot sell HDCP vapor products within 1,000 feet of a school.
  • Vapor product retail dealers and stores are not allowed to sell any vapor products within 1,000 feet of a school.
  • The amendment does not specify what happens if an existing retailer was selling HDCPs before December 31, 2023 but then stops selling them and wants to start again.
  • It is unclear how the law will be enforced or what penalties retailers might face for breaking these rules.

Bill History

  1. 2026-04-16 Tennessee General Assembly

    H. Placed on Regular Calendar for 4/20/2026

  2. 2026-04-16 Tennessee General Assembly

    Placed on Senate Finance, Ways, and Means Committee calendar for 4/20/2026

  3. 2026-04-15 Tennessee General Assembly

    Placed on cal. Calendar & Rules Committee for 4/16/2026

  4. 2026-04-15 Tennessee General Assembly

    Rec. for pass. if am., ref. to Calendar & Rules Committee

  5. 2026-04-15 Tennessee General Assembly

    Placed on cal. Finance, Ways, and Means Committee for 4/15/2026

  6. 2026-04-15 Tennessee General Assembly

    Rec for pass if am by s/c ref. to Finance, Ways, and Means Committee

  7. 2026-04-15 Tennessee General Assembly

    Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/15/2026

  8. 2026-04-15 Tennessee General Assembly

    Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/15/2026

  9. 2026-04-14 Tennessee General Assembly

    Placed behind the budget

  10. 2026-04-08 Tennessee General Assembly

    Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/14/2026

  11. 2026-04-07 Tennessee General Assembly

    Re-ref. Finance, Ways, and Means Subcommittee

  12. 2026-04-07 Tennessee General Assembly

    Recommended for passage, refer to Senate Finance, Ways, and Means Committee

  13. 2026-04-01 Tennessee General Assembly

    Placed on cal. Finance, Ways, and Means Committee for 4/7/2026

  14. 2026-04-01 Tennessee General Assembly

    Rec for pass if am by s/c ref. to Finance, Ways, and Means Committee

  15. 2026-04-01 Tennessee General Assembly

    Placed on Senate Commerce and Labor Committee calendar for 4/7/2026

  16. 2026-03-25 Tennessee General Assembly

    Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/1/2026

  17. 2026-03-23 Tennessee General Assembly

    Assigned to s/c Finance, Ways, and Means Subcommittee

  18. 2026-03-23 Tennessee General Assembly

    Rec. for pass. if am., ref. to Finance, Ways, and Means Committee

  19. 2026-03-18 Tennessee General Assembly

    Placed on cal. Judiciary Committee for 3/23/2026

  20. 2026-03-18 Tennessee General Assembly

    Rec. for pass; ref to Judiciary Committee

  21. 2026-03-11 Tennessee General Assembly

    Placed on cal. Commerce Committee for 3/18/2026

  22. 2026-03-11 Tennessee General Assembly

    Rec. for pass by s/c ref. to Commerce Committee

  23. 2026-03-10 Tennessee General Assembly

    Action deferred in Senate Commerce and Labor Committee to 3/17/2026

  24. 2026-03-04 Tennessee General Assembly

    Placed on s/c cal Business & Utilities Subcommittee for 3/11/2026

  25. 2026-03-04 Tennessee General Assembly

    Placed on Senate Commerce and Labor Committee calendar for 3/10/2026

  26. 2026-03-03 Tennessee General Assembly

    Action deferred in Senate Commerce and Labor Committee to 3/10/2026

  27. 2026-02-24 Tennessee General Assembly

    Placed on Senate Commerce and Labor Committee calendar for 3/3/2026

  28. 2026-02-05 Tennessee General Assembly

    Assigned to s/c Business & Utilities Subcommittee

  29. 2026-02-05 Tennessee General Assembly

    P2C, ref. to Commerce Committee - Judiciary Committee

  30. 2026-02-05 Tennessee General Assembly

    Passed on Second Consideration, refer to Senate Commerce and Labor Committee

  31. 2026-02-04 Tennessee General Assembly

    Intro., P1C.

  32. 2026-02-02 Tennessee General Assembly

    Filed for introduction

  33. 2026-02-02 Tennessee General Assembly

    Introduced, Passed on First Consideration

  34. 2026-02-02 Tennessee General Assembly

    Filed for introduction

Official Summary Text

Present law requires e
very dealer or distributor of tobacco products
to
pay to the department
of revenue
for exclusive state purposes, taxes in addition to all other taxes or fees, for the privilege of selling cigarettes and tobacco products in this state.
T
he
tax
rate on vapor products is 10% of the wholesale cost price.
As used in this bill, a "v
apor product
" means a
noncombustible product containing consumable material, whether natural or synthetic, that employs a mechanical heating element, battery,
electronic circuit, or other mechanism, regardless of shape or size, that can be used to produce or emit a visible or non-visible vapor
, but such term d
oes not include a product regulated
by
the
federal
Food, Drug, and Cosmetic Act
. As used in that definition, a "c
onsumable material
" means a
liquid nicotine solution intended for use in a vapor product
. This bill revises the definition of "consumable material" to, instead, mean
a liquid nicotine solution, whether natural or synthetic, or a liquid nicotine
analogue intended for use in a vapor product
.

PENALTY

Present law provides that a
retailer, distributor, wholesaler, or importer who sells or offers for sale a vapor product for retail sale in this state to anyone under
21
is subject to a fine of $2,500 for the first offense, and a fine of at least
$
20,000 and loss of licensure for any subsequent offense.

This bill clarifies that such fines are
issued by the alcoholic beverage commission
.

Current Bill Text

Read the full stored bill text 
SENATE BILL 2293
By Yager

HOUSE BILL 2359
By Hawk
HB2359
009909
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 39,
Chapter 17; Title 43; Title 57 and Title 67, Chapter
4, Part 10, relative to vapor products.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 67-4-1001(7), is amended by
deleting the subdivision and substituting instead:
(7) "Consumable material" means a liquid nicotine solution, whether natural or
synthetic, or a liquid nicotine analogue intended for use in a vapor product;
SECTION 2. Tennessee Code Annotated, Section 67-4-1001(28), is amended by
deleting the subdivision and substituting instead:
(28) "Vapor product":
(A) Means a noncombustible product containing consumable material
that employs a mechanical heating element, battery, electronic circuit, or other
mechanism, regardless of shape or size, that can be used to produce or emit a
visible or non-visible vapor;
(B) Includes an electronic cigarette, electronic cigar, electronic cigarillo,
electronic pipe, or similar product, and any vapor cartridge containing
consumable material or other container of consumable material that is intended
to be used with or in an electronic cigarette, electronic cigar, electronic cigarillo,
electronic pipe, or similar product; and
(C) Does not include a product regulated under Chapter V of the Food,
Drug, and Cosmetic Act (21 U.S.C. § 351 et seq.);

- 2 - 009909

SECTION 3. Tennessee Code Annotated, Section 67-4-1035(d), is amended by
deleting the language "is subject to a fine" and substituting instead the language "is subject to a
fine, issued by the alcoholic beverage commission,".
SECTION 4. This act takes effect upon becoming a law, the public welfare requiring it.