AZ HB2602

Establishes a tobacco retail sales licensing system administered by the Department of Liquor Licenses and Control, effective January 1, 2023, requiring retail tobacco vendors to obtain and display a valid license for each location.

Prohibits sale of tobacco products to persons under the federal minimum age of sale for tobacco products, with penalties ranging from education classes for first violations to civil penalties of $500-$3,000 and sales prohibitions of 14 days to 3 years for repeat violations within 36 months.

Requires retail tobacco vendors to verify purchaser age through government-issued photo identification (except for persons age 30 or older) and mandates employee training on age verification and illegal sales consequences.

Mandates at least two unannounced annual compliance checks by the department using underage decoys to assess retailer compliance; compliance check results must be published annually and made available to the public.

Establishes the tobacco retail sales licensing fund from licensing fees, with 90% deposited in the fund for administration and enforcement and 10% deposited in the state general fund.