AZ SB1402

Establishes tobacco retail sales licensing requirements beginning January 1, 2023, requiring retail tobacco vendors to obtain and display a valid license from the Department of Liquor Licenses and Control for each location where tobacco products are distributed.

Creates licensing fees deposited into a new Tobacco Retail Sales Licensing Fund, with 90% of fees funding administration and enforcement and 10% going to the state general fund.

Prohibits selling tobacco products to persons under the federal minimum age of sale and requires age verification via government-issued photo ID for all purchasers (except those age 30+); violations subject to civil penalties ranging from $500 to $3,000 and temporary or permanent prohibition on distributing tobacco products.

Requires minimum two unannounced annual compliance checks using underage purchasers to test retailer compliance, with results published and made available to the public.

Expands definitions of "tobacco product" and "electronic smoking device" to include e-cigarettes, vape pens, components, accessories, and vaporized substances; clarifies self-service display restrictions and exceptions for cigars and pipe tobacco retailers.