AZ SB1678

Establishes a statewide tobacco retail sales licensing requirement effective January 1, 2025, requiring all retail tobacco vendors to obtain and display a valid license from the Department of Health Services for each location.

Expands the definition of "tobacco product" to explicitly include electronic smoking devices, components, accessories, and substances used in vaping devices, whether or not they contain nicotine.

Implements a tiered penalty system for retail tobacco vendors selling tobacco products to underage persons, ranging from mandatory education classes or $500-$750 fines for first violations to $1,000-$3,000 fines and up to three years prohibition on sales for fourth violations within 36 months.

Requires retail tobacco vendors to verify age using government-issued photographic identification before distributing any tobacco product, with compliance checks conducted at least twice annually by the department or authorized designee.

Prohibits self-service displays and vending machines for tobacco products except in bars that restrict underage entry or employee lounges that do not employ underage individuals, with exceptions for cigars and pipe tobacco sold by specialty retailers.