HB2556 Summary

• Updates tobacco and vapor product restrictions to reference the federal minimum legal age of sale (21) rather than defining "minor" by age, aligning with the federal Food, Drug, and Cosmetic Act minimum age requirement.

• Establishes escalating penalties for tobacco/vapor product retailers who violate underage sales laws, ranging from $500-$750 for first violation to $3,000-$5,000 for fourth+ violations within 36 months, with mandatory court-approved educational courses and sales prohibition periods.

• Creates new sections 42-5014.01 and 42-5020.01 requiring tobacco and vapor product retailers to separately track and report gross proceeds of tobacco/vapor sales on tax returns and maintain separate books and records for these products.

• Authorizes the Department of Revenue to separately account for tax revenues from tobacco and vapor product sales and allows the attorney general to request tax documentation from violators subject to sales prohibitions.

• Allows the attorney general to access confidential taxpayer information from the Department of Revenue for enforcement of tobacco product, vapor product, and youth protection laws.