SD HB1220

Creates a new licensing system for nicotine product distributors requiring a $1,000 annual fee, valid July 1 through June 30, with separate licenses needed for each business location

Defines "nicotine products" to include alternative nicotine products and vapor products (e-cigarettes, vape pens), but excludes traditional tobacco products, cigarettes, and FDA-approved cessation products

Prohibits direct-to-consumer shipping of nicotine products unless the seller verifies purchaser is at least 21 years old, obtains signature upon delivery, and maintains records of buyer information for audit purposes

Establishes a nicotine enforcement fund administered by the Department of Revenue, funded by license fees, to cover enforcement costs

Imposes criminal penalties including Class 1 misdemeanor for selling without a license or reselling shipped products, Class 2 misdemeanor for recordkeeping violations, and civil penalties of $1,000-$5,000 (or five times retail value) for illegal shipping violations