Two nicotine‑regulation bills moved forward Tuesday at the South Dakota Capitol.
The House Health and Human Services Committee voted 11–2 to advance House Bill 1220, which would require wholesalers and distributors of all nicotine products — including vaping liquids and pouch products like Zyn — to obtain a state license. The updated bill raises the fee from $150 to $1,000 and allows the Department of Revenue to publish a public list of license holders.
Minutes later, the committee became deadlocked over House Bill 1240, the vape industry’s proposal to license vape retailers. A do‑pass motion failed 6–7, and a motion to kill the bill also failed by the same margin.
HB 1240 drew heavy opposition from health groups, retailers, convenience stores, and two state agencies, who argued the proposal was costly, burdensome, and not ready for implementation. Supporters said flavored vapes help adults quit smoking and that the industry wants clear regulations.
With both bills now heading to the House, state officials and stakeholders warned that advancing two competing approaches could complicate negotiations. Opponents urged lawmakers to focus on HB 1220 — the wholesaler‑licensing bill — as the more workable path forward.
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