SD SB221

Requires retailers to obtain a license from the Department of Revenue to sell nicotine products (tobacco, vapor products, alternative nicotine products), with annual fees of $300 for stores deriving 50%+ revenue from nicotine sales, $200 for others, and $100 per vending machine

Prohibits sales to persons under 21, sales via phone/internet/mail/curbside pickup, free samples, sales from self-service displays, and sales of products with gaming functionality; vending machines permitted only in bars and gaming establishments with age verification

Establishes escalating penalties for violations within a 36-month period: $500 first offense, $1,000 second, $2,000 plus 30-day suspension third, $5,500 plus license revocation fourth

Licensees must maintain inventory and sales records for three years, including supplier information and purchase invoices, subject to inspection during business hours

Creates a nicotine enforcement fund from collected fees and fines to cover enforcement costs; effective January 1, 2027