2026 -- S 2844

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LC005879

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2026

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A N   A C T

RELATING TO TAXATION -- CIGARETTE, OTHER TOBACCO PRODUCTS, AND

ELECTRONIC NICOTINE-DELIVERY SYSTEMS PRODUCTS

     Introduced By: Senators DiPalma, Ciccone, and Felag

     Date Introduced: March 04, 2026

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Sections 40-20-1 and 44-20-61 of the General Laws in Chapter 44-20 entitled

"Cigarette, Other Tobacco Products, and Electronic Nicotine-Delivery System Products" are

hereby amended to read as follows:

     44-20-1. Definitions.

     Whenever used in this chapter, unless the context requires otherwise:

     (1) “Administrator” means the tax administrator.

     (2) “Cigarettes” means and includes any cigarettes suitable for smoking in cigarette form,

“heat not burn products,” and each sheet of cigarette rolling paper, including but not limited to,

paper made into a hollow cylinder or cone, made with paper or any other material, with or without

a filter suitable for use in making cigarettes.

     (3) “Dealer” means any person whether located within or outside of this state, who sells or

distributes cigarettes and/or other tobacco products and/or electronic nicotine-delivery system

products to a consumer in this state.

     (4) “Distributor” means any person:

     (i) Whether located within or outside of this state, other than a dealer, who sells or

distributes cigarettes and/or other tobacco products and/or electronic nicotine-delivery system

products within or into this state. Such term shall not include any cigarette or other tobacco product

manufacturer, export warehouse proprietor, or importer with a valid permit under 26 U.S.C. § 5712,

if such person sells or distributes cigarettes and/or other tobacco products and/or electronic

nicotine-delivery system products in this state only to licensed distributors, or to an export

warehouse proprietor or another manufacturer with a valid permit under 26 U.S.C. § 5712;

     (ii) Selling cigarettes and/or other tobacco products and/or electronic nicotine-delivery

system products directly to purchasers in this state by means of at least twenty-five (25) vending

machines;

     (iii) Engaged in this state in the business of manufacturing cigarettes and/or other tobacco

products and/or electronic nicotine-delivery system products or any person engaged in the business

of selling cigarettes and/or other tobacco products and/or electronic nicotine-delivery system

products to dealers, or to other persons, for the purpose of resale only; provided, that seventy-five

percent (75%) of all cigarettes and/or other tobacco products and/or electronic nicotine-delivery

system products sold by that person in this state are sold to dealers or other persons for resale and

selling cigarettes and/or other tobacco products and/or electronic nicotine-delivery system products

directly to at least forty (40) dealers or other persons for resale; or

     (iv) Maintaining one or more regular places of business in this state for that purpose;

provided, that seventy-five percent (75%) of the sold cigarettes and/or other tobacco products

and/or electronic nicotine-delivery system products are purchased directly from the manufacturer

and selling cigarettes and/or other tobacco products and/or electronic nicotine-delivery system

products directly to at least forty (40) dealers or other persons for resale.

     (5) “Electronic nicotine-delivery system” means an electronic device that may be used to

simulate smoking in the delivery of nicotine or other substance to a person inhaling from the device,

and includes, but is not limited to, an electronic cigarette, electronic cigar, electronic cigarillo,

electronic little cigars, electronic pipe, electronic hookah, e-liquids, e-liquid products, or any related

device and any cartridge or other component of such device.

     (6) “Electronic nicotine-delivery system products” means any combination of electronic

nicotine-delivery system and/or e-liquid and/or any derivative thereof, and/or any e-liquid

container. Electronic nicotine-delivery system products shall include hemp-derived consumable

CBD products as defined in § 2-26-3.

     (7) “Electronic nicotine-delivery system shop” means any premises dedicated to the

display, sale, distribution, delivery, offering, furnishing, or marketing of electronic nicotine-

delivery system products, liquid nicotine containers or vapor products, or any products as defined

in § 11-9-13.4, to consumers over the age of twenty-one (21), in compliance with chapter 9 of title

11.

     (7)(8) “E-liquid” and “e-liquid products” mean any liquid or substance placed in or sold

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for use in an electronic nicotine-delivery system that generally utilizes a heating element that

aerosolizes, vaporizes, or combusts a liquid or other substance containing nicotine or nicotine

derivative:

     (i) Whether the liquid or substance contains nicotine or a nicotine derivative; or

     (ii) Whether sold separately or sold in combination with a personal vaporizer, electronic

nicotine-delivery system, or an electronic inhaler.

     (8)(9) “Importer” means any person who imports into the United States, either directly or

indirectly, a finished cigarette or other tobacco product and/or electronic nicotine-delivery system

product for sale or distribution.

     (9)(10) “Licensed,” when used with reference to a manufacturer, importer, distributor, or

dealer, means only those persons who hold a valid and current license issued under § 44-20-2 for

the type of business being engaged in. When the term “licensed” is used before a list of entities,

such as “licensed manufacturer, importer, wholesale dealer, or retailer dealer,” such term shall be

deemed to apply to each entity in such list.

     (10)(11) “Manufacturer” means any person who manufactures, fabricates, assembles,

processes, or labels a finished cigarette and/or other tobacco products and/or electronic nicotine-

delivery system products.

     (11)(12) “Other tobacco products” (OTP) means any products that are made from or

derived from tobacco or that contain nicotine, whether natural or artificial, including, but not

limited to, cigars (excluding Little Cigars, as defined in § 44-20.2-1, which are subject to cigarette

tax), cheroots, stogies, smoking tobacco (including granulated, plug cut, crimp cut, ready rubbed

and any other kinds and forms of tobacco suitable for smoking in a pipe or otherwise), chewing

tobacco (including Cavendish, twist, plug, scrap and any other kinds and forms of tobacco suitable

for chewing), any and all forms of hookah, shisha and “mu’assel” tobacco, snuff, and shall include

any other articles or products made of, derived from, or containing tobacco or nicotine, in whole or

in part, or any tobacco or nicotine substitute, except cigarettes and electronic nicotine-delivery

system products. Other tobacco products shall not mean any product that has been approved by the

United States Food and Drug Administration for the sale of or use as a tobacco or nicotine cessation

product or for other medical purposes and is marketed and sold or prescribed exclusively for that

approved purpose.

     (12)(13) “Person” means any individual, including an employee or agent, firm, fiduciary,

partnership, corporation, trust, or association, however formed.

     (13)(14) “Pipe” means an apparatus made of any material used to burn or vaporize products

so that the smoke or vapors can be inhaled or ingested by the user.

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     (14)(15) “Place of business” means any location where cigarettes and/or other tobacco

products and/or electronic nicotine-delivery system products are sold, stored, or kept, including,

but not limited to; any storage room, attic, basement, garage or other facility immediately adjacent

to the location. It also includes any receptacle, hide, vessel, vehicle, airplane, train, or vending

machine.

     (15)(16) “Sale” or “sell” means gifts, exchanges, and barter of cigarettes and/or other

tobacco products and/or electronic nicotine-delivery system products. The act of holding, storing,

or keeping cigarettes and/or other tobacco products and/or electronic nicotine-delivery system

products at a place of business for any purpose shall be presumed to be holding the cigarettes and/or

other tobacco products and/or electronic nicotine-delivery system products for sale. Furthermore,

any sale of cigarettes and/or other tobacco products and/or electronic nicotine-delivery system

products by the servants, employees, or agents of the licensed dealer during business hours at the

place of business shall be presumed to be a sale by the licensee.

     (16)(17) “Stamp” means the impression, device, stamp, label, or print manufactured,

printed, or made as prescribed by the administrator to be affixed to packages of cigarettes, as

evidence of the payment of the tax provided by this chapter or to indicate that the cigarettes are

intended for a sale or distribution in this state that is exempt from state tax under the provisions of

state law; and also includes impressions made by metering machines authorized to be used under

the provisions of this chapter.

     44-20-61. Product restrictions on electronic nicotine-delivery system products.

     (a) For purposes of this section, the following terms shall have the following meanings:

     (1) “Characterizing flavor” means a distinguishable taste or aroma, other than the taste or

aroma of tobacco or menthol, whether naturally or artificially flavored, distinguishable by an

ordinary consumer, imparted either prior to, or during, consumption of an electronic nicotine-

delivery system product or component part thereof, including, but not limited to, tastes or aromas

relating to any fruit, mint, wintergreen, chocolate, vanilla, honey, candy, cocoa, dessert, alcoholic

beverage, herb, or spice or which impart a cooling or numbing sensation. The determination of

whether an electronic nicotine-delivery system product has a characterizing flavor shall not be

based solely on the use of additives, flavorings, or particular ingredients, but shall instead consider

all aspects of a final product including, but not limited to, taste, flavor and aroma, product labeling,

and advertising statements. A flavor shall be presumed to be a characterizing flavor if a dealer,

manufacturer, or distributor has made a statement or claim directed to consumers or the public

about such flavor, whether expressed or implied, that it has a distinguishable taste or aroma (other

than the taste or aroma of tobacco or menthol).

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     (2) “Electronic nicotine-delivery system shop” as defined in § 44-20-1.

     (3) “Flavored electronic nicotine-delivery system product” means any electronic nicotine-

delivery system product that imparts a characterizing flavor.

     (b) The sale, or offer for sale of, or the possession with intent to sell or to offer for sale,

flavored electronic nicotine-delivery system products to consumers within the state of Rhode Island

is hereby prohibited, except at an electronic nicotine-delivery system shop. Compassion centers

and licensed cultivators registered with the state of Rhode Island department of business regulation-

office of cannabis regulation under chapter 28.6 of title 21 are exempt from this provision except

as to products that contain, are made of, or are derived from tobacco or nicotine, natural or

synthetic. No electronic nicotine-delivery system shop shall sell, distribute, or permit the sale of

any electronic nicotine-delivery system or related product unless the purchaser’s age has been

verified.

     (c) Ten percent (10%) of revenues collected from the sale of electronic nicotine-delivery

systems sold by exempt shops shall be transferred to the tobacco cessation programs established in

§ 27-20-53.

     (d) Any penalties assessed for electronics nicotine-delivery shops in violation of this

section, or in violation of § 11-9-13, shall be doubled. Any costs associated with storing and/or

destroying confiscated material shall be borne by the shop from whom the material was confiscated.

     SECTION 2. This act shall take effect upon passage.

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LC005879

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TAXATION -- CIGARETTE, OTHER TOBACCO PRODUCTS, AND

ELECTRONIC NICOTINE-DELIVERY SYSTEMS PRODUCTS

***

     This act would define “electronic nicotine-delivery system shop” and require that ten

percent (10%) of sales revenue from said shops be transferred to the tobacco cessation programs

pursuant to § 27-20-53. The act also would double the penalties for any violations by the shops and

assess payments for storing and/or destroying confiscated materials.

     This act would take effect upon passage.

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