A bipartisan bill aimed at regulating the vape industry and protecting children in Tennessee has sparked a heated debate among lawmakers and vape retailers. The proposed legislation, which includes a universal carding requirement, a 10% tax on "open system" vape products, and a ban on products without FDA approval, has been met with opposition from some retailers who claim it would force them out of business.
Lawmakers Cite Youth Vaping Concerns
Sen. Ken Yager (R-Kingston), the bill's Senate sponsor, expressed concern about the youth vaping rate and the safety of products being sold. "A lot of these products being sold in these containers are not FDA approved," Yager said. "In fact, they're being made in China and sent here, and I just don't want to see our children poisoned by these toxins that are being imported by the communist Chinese government."
Rep. David B. Hawk (R-Greeneville), the bill's House sponsor, echoed these sentiments, stating, "The market is being flooded with illicit vapes that are overwhelmingly manufactured and exported from China."
Vape Industry Experts Warn of Economic Impact
However, vape industry experts testified that the bill would require them to remove 99% of their products from the market, potentially forcing them out of business. Danny Gillis, president of the TN Smoke Free Association, argued that the bill amounts to a prohibition that would cause "health harm" in the state.
Gillis expressed concern that the bill would enable big tobacco companies to take control of the vape industry, which he believes is meant to reduce harm. "When they implement such regulation or opposing tax structures, it drives people back to smoking or goes straight into a black market," Gillis said.
States with Similar Legislation Face Negative Consequences
Chris Lautz, vice president of the Tennessee Smoke Free Association (TSFA), cited examples of states that have enacted similar registry legislation and suffered negative financial consequences, including increased smuggling rates and store closures.
"Massachusetts was one of the first ones back in 2020. They ended up seeing a $135 million loss in revenue; smuggling went from 19.9% to 37.6%; the state lost an additional $224 million annually," Lautz said. "California did the same thing in 2023. They're looking at a $150 to $200 million tax shortfall because of this bill."
Lawmakers Defend Bill, Acknowledge Responsible Retailers
Sen. Yager dismissed concerns over businesses closing as a "false issue," stating that the bill is not intended to put anyone out of business. Lawmakers acknowledged that while some retailers, like Lautz and Gillis, operate responsibly, not all vape stores in Tennessee follow the same standards.
"For everyone that's doing it the right way, like these gentlemen, there's thousands that aren't doing it the right way, and it's harming our kids," Rep. Hawk said.
Next Steps and Upcoming Hearing
The House version of the bill was delayed to the next Government Operations Committee hearing due to timing issues. Rep. Hawk hopes proponents of the proposed legislation will testify at the next hearing, scheduled for March 10.
As the debate surrounding vape regulation continues in Tennessee, lawmakers must carefully consider the potential impact on public health, particularly youth, while also weighing the economic consequences for small businesses in the industry.
