H.F. 3717 - Tobacco Products Bill Summary

• Modifies "out-of-state retailer" definition to include sales to distributors and retailers, not just consumers, requiring registration with the Department of Revenue before making any delivery sales or shipments to Minnesota.

• Expands the definition of "tobacco products" to include electronic delivery devices, nicotine or lobelia delivery products, and tobacco-related devices, in addition to cigarettes, smokeless tobacco, and premium cigars.

• Restricts delivery sales of tobacco products to only in-person deliveries by retailers to consumers within their licensed jurisdiction, prohibiting use of delivery services and sales to consumers outside the retailer's jurisdiction.

• Increases the statute of limitations for certain tobacco violations from two to three years and establishes criminal penalties including misdemeanor charges for violations within three years of a prior cease-and-desist order and gross misdemeanor charges for third or subsequent violations.

• Creates new licensing and tax collection requirements for out-of-state retailers and distributors shipping tobacco products to Minnesota retailers and distributors, including compliance with chapter 297F excise tax requirements and a 50 percent penalty for unpaid taxes.