SB 185

           Second Regular Session of the 124th General Assembly (2026)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
  Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
 Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2025 Regular Session of the General Assembly.
    SENATE ENROLLED ACT No. 185
   AN ACT to amend the Indiana Code concerning alcohol and
tobacco.
    Be it enacted by the General Assembly of the State of Indiana:
   SECTION 1. IC 7.1-3-18.5-1, AS AMENDED BY P.L.32-2019,
SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 1. (a) A person may not sell or otherwise
distribute in exchange for consideration a tobacco product or electronic
cigarette at retail or wholesale without a valid tobacco sales certificate
issued by the commission.
   (b) A certificate may be issued only to a person who owns or
operates at least one (1) of the following:
      (1) A premises consisting of a permanent building or structure
      where the tobacco product or electronic cigarette is sold or
      distributed.
      (2) A premises upon which a cigarette vending machine is
      located.
   (c) For purposes of subsection (b)(1), a permitted premises may
not include sleeping or living quarters.
   SECTION 2. IC 7.1-3-18.5-1.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 1.5. (a) A person may not sell
tobacco products or electronic cigarettes at wholesale or
participate in the wholesale distribution of tobacco products or
electronic cigarettes without a valid wholesale tobacco sales
certificate issued by the commission.
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   (b) The commission may only issue a wholesale tobacco sales
certificate to a person who owns or operates a wholesale tobacco
business at a premises consisting of a permanent building or
structure that is used for the wholesale distribution of tobacco
products or electronic cigarettes.
   SECTION 3. IC 7.1-3-18.5-2, AS AMENDED BY P.L.107-2024,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 2. (a) A person who desires a certificate must
provide the following to the commission:
     (1) The applicant's name and mailing address and the address of
     the premises for which the certificate is being issued.
     (2) Except as provided in section 6(c) of this chapter, a fee of:
         (A) two hundred dollars ($200) for a retail tobacco sales
         certificate; or
         (B) one hundred dollars ($100) for a wholesale tobacco
         sales certificate.
     (3) The name under which the applicant transacts or intends to
     transact business.
     (4) The address of the applicant's principal place of business or
     headquarters, if any.
     (5) The statement required under section 2.6 of this chapter.
     (6) If the applicant is applying for a new certificate under section
     3.2 of this chapter, a copy of each of the following:
         (A) If the new ownership of the business is a business entity,
         the articles of incorporation, articles of organization, or any
         other formation documents of the business entity.
         (B) If the new ownership of the business is an individual,
         either:
           (i) the sales or purchase agreement; or
           (ii) an affidavit signed by the applicant concerning the sale
           or purchase, on a form prescribed by the commission, that
           includes the name and address of the seller and purchaser.
         (C) The certificate held by the previous ownership of the
         business.
     (7) A photocopy of the owner's driver's license, identification
     card issued under IC 9-24-16-1, a similar card issued under
     the laws of another state or the federal government, or
     another government issued document that bears the owner's
     photograph and birth date. If the applicant is a business with
     multiple owners, the applicant must designate at least one (1)
     managing owner for whom a photocopy of the managing
     owner's identification must be provided under this
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       subdivision.
    (b) A separate certificate is required for each location where the
tobacco products or electronic cigarettes are sold or distributed. A retail
An establishment may not hold more than one (1) active tobacco sales
certificate for a retail location at any time. Except when the real estate
for a retail location is transferred to an independent third party,
the commission shall not issue a certificate to a retail location
where a tobacco sales certificate was revoked within one (1) year
prior to the date of the application.
    (c) A certificate holder shall conspicuously display the holder's
certificate on the holder's premises where the tobacco products or
electronic cigarettes are sold or distributed.
    (d) Any intentional misstatement or suppression of a material fact
in an application filed under this section constitutes grounds for denial
or revocation of the certificate.
    (e) A certificate may be issued only to a person who meets the
following requirements:
       (1) If the person is an individual, the person must be at least
       twenty-one (21) years of age.
       (2) The person must be authorized to do business in Indiana.
       (3) The person has not had an interest in a certificate revoked by
       the commission for that business location within the preceding
       one (1) year.
    (f) The fees collected under this section shall be deposited in the
enforcement and administration fund under IC 7.1-4-10.
    SECTION 4. IC 7.1-3-18.5-9.2, AS ADDED BY P.L.107-2024,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 9.2. (a) An employee of a certificate holder must
hold a valid:
       (1) driver's license issued by the state of Indiana or another state;
       or
       (2) identification card issued by the state of Indiana, another state,
       or the United States;
to sell tobacco products.
    (b) An employee must have the employee's driver's license or
identification card or a copy of the employee's driver's license or
identification card:
       (1) either:
           (A) in the employee's possession; or
           (B) on file with the employee's employer; and
       (2) upon request, readily available to show to an excise officer or
       law enforcement;
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when selling tobacco products.
    (c) If an employee holds a valid license or identification card as
described in subsection (a) but is unable to show the license,
identification card, or a copy to an excise officer under subsection (b)
because:
       (1) the employee has left the license, identification card, or copy
       in another location; or
       (2) the license, identification card, or copy has otherwise been lost
       or mislaid;
the employee may, within five (5) days of the employee's inability to
show the license, identification card, or copy to the excise officer,
produce to the excise officer or to the office of the commission
satisfactory evidence of a license or identification card issued to the
individual that was valid at the time the individual was unable to show
the license, identification card, or copy.
    (d) If an employee who is unable to show a license, identification
card, or copy to an excise officer fails to produce satisfactory evidence
within five (5) days in the manner described in subsection (c), the
commission may impose a civil penalty on the certificate holder under
IC 7.1-3-23-3.
    (e) The commission shall take the following actions with respect
to a certificate holder's certificate if the certificate holder's
employees violate this section:
       (1) For three (3) violations in a one (1) year period, suspend
       the certificate for a period of five (5) days.
       (2) For four (4) violations in a one (1) year period, suspend the
       certificate for a period of an additional five (5) days.
       (3) For five (5) violations in a one (1) year period, suspend the
       certificate for a period of an additional five (5) days.
       (4) For six (6) or more violations in a one (1) year period,
       revoke the certificate.
    SECTION 5. IC 7.1-5-10-23, AS AMENDED BY P.L.32-2019,
SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 23. It is a Class C infraction for a permittee,
certificate holder, or an employee or agent of a permittee or
certificate holder to recklessly, knowingly, or intentionally sell, barter,
exchange, provide, or furnish another person who is or reasonably
appears to be less than forty (40) years of age an alcoholic beverage or
tobacco product for consumption off the licensed premises without
first requiring the person to produce:
       (1) a driver's license;
       (2) an identification card issued under IC 9-24-16-1 or a similar
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       card issued under the laws of another state or the federal
       government; or
       (3) a government issued document;
bearing the person's photograph and birth date showing that the person
is at least twenty-one (21) years of age.
    SECTION 6. IC 7.1-7-1-0.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2026]: Sec. 0.5. Notwithstanding any other law, this article does
not authorize the manufacturing, sale, possession, or use of a
controlled substance (as defined in IC 35-48-1.1-7) or any product
containing a controlled substance.
    SECTION 7. IC 7.1-7-1-1, AS AMENDED BY P.L.206-2017,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 1. (a) Except as provided in subsection (b), This
article applies to the following:
       (1) The commercial manufacturing, bottling, selling, sale,
       bartering, or importing, possession, and use of e-liquid and
       e-liquid products in Indiana, including through a cigarette
       vending machine.
       (2) The sale, possession, and use of e-liquid products in Indiana.
    (b) This article does not apply to a manufacturer of a closed system
vapor product, except as specifically provided in this article.
    SECTION 8. IC 7.1-7-1-2, AS AMENDED BY P.L.206-2017,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 2. The purpose of this article is to protect public
health and safety by:
       (1) ensuring the safety and security of e-liquid and e-liquid
       products manufactured for sale in Indiana;
       (2) ensuring that e-liquid and e-liquid products manufactured or
       sold in Indiana conforms conform to appropriate standards of
       identity, strength, quality, and purity; and
       (3) ensuring that e-liquid and e-liquid products is are not
       contaminated or adulterated by the inclusion of ingredients or
       other substances that might pose unreasonable threats to public
       health and safety; and
       (4) ensuring dangerous foreign adversary products are not
       sold or distributed in Indiana.
    SECTION 9. IC 7.1-7-2-6.3, AS AMENDED BY P.L.49-2020,
SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 6.3. "Delivery sale" means a sale of an e-liquid,
an e-liquid product, or a vapor device to a purchaser in Indiana in
which the purchaser submits the order for the sale:
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     (1) by telephone;
     (2) over the Internet; or
     (3) through the mail or another delivery system;
and the e-liquid, e-liquid product, or vapor device is shipped through
a delivery service. "Delivery sale" does not include a sale of an
e-liquid, an e-liquid product, or a vapor device not for personal
consumption to a person who is a retailer.
    SECTION 10. IC 7.1-7-2-8 IS REPEALED [EFFECTIVE JULY 1,
2026]. Sec. 8. "Distributor" means a person who is licensed under
IC 6-7-2-8 that:
     (1) distributes, sells, barters, or exchanges e-liquid in Indiana to
     retail dealers for the purpose of resale; or
     (2) purchases e-liquid directly from a manufacturer for the
     purpose of resale.
    SECTION 11. IC 7.1-7-2-10, AS AMENDED BY P.L.206-2017,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 10. "E-liquid" means a substance that:
     (1) may or may not contain nicotine; and
     (2) is intended to be vaporized and inhaled using a vapor product.
     device.
    SECTION 12. IC 7.1-7-2-10.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 10.5. "E-liquid product" means
a vapor device that contains e-liquid, with or without nicotine.
    SECTION 13. IC 7.1-7-2-12, AS AMENDED BY P.L.206-2017,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 12. "Flavoring" means a food grade additive or
synthetic flavoring substance that is used to add flavor and that is not
prohibited by the federal Food and Drug Administration as an additive
in vapor products. e-liquid or e-liquid products.
    SECTION 14. IC 7.1-7-2-12.3 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 12.3. "Foreign adversary" means
an individual, business entity, or other entity located in or
organized under the laws of a nation listed as a foreign adversary
in 15 CFR 791.4.
    SECTION 15. IC 7.1-7-2-12.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 12.5. (a) "Foreign adversary
product" means an:
     (1) e-liquid;
     (2) e-liquid containing an ingredient; or
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      (3) e-liquid product;
that is manufactured by, sourced from, or otherwise imported
from a nation listed as a foreign adversary in 15 CFR 791.4.
    (b) The term does not include the following:
      (1) A vapor device, including a part to be utilized in an open
      or closed system to convert e-liquid to a vapor for inhalation.
      (2) E-liquid or an e-liquid product that is manufactured by,
      sourced from, or otherwise imported from a nation listed as
      a foreign adversary in 15 CFR 791.4, if the e-liquid or e-liquid
      product:
         (A) has been approved or authorized by the federal Food
         and Drug Administration; or
         (B) is pending review by the federal Food and Drug
         Administration under 21 U.S.C. 387j.
    SECTION 16. IC 7.1-7-2-15, AS AMENDED BY P.L.206-2017,
SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 15. "Manufacturer" means a person located inside
or outside Indiana that is engaged in manufacturing:
      (1) e-liquid for closed and open system vapor devices; or
      (2) e-liquid products.
    SECTION 17. IC 7.1-7-2-15.5 IS REPEALED [EFFECTIVE JULY
1, 2026]. Sec. 15.5. "Manufacturer of a closed system vapor product"
means a manufacturer of vapor products whose closed system vapor
products are for sale in Indiana, but that does not produce open system
vapor products that are for sale in Indiana.
    SECTION 18. IC 7.1-7-2-16, AS AMENDED BY P.L.206-2017,
SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 16. "Manufacturing" means the process by which
an:
      (1) e-liquid is mixed, bottled, and packaged; and
      (2) e-liquid product is produced and packaged.
    SECTION 19. IC 7.1-7-2-18, AS ADDED BY P.L.176-2015,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 18. "Permit" means a written authorization issued
by the commission entitling the holder to manufacture, sell, or
otherwise deal in e-liquid or e-liquid products, as provided in this
article.
    SECTION 20. IC 7.1-7-2-21, AS ADDED BY P.L.176-2015,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 21. "Retailer" means a person, other than a
manufacturer, who in the ordinary course of the person's regular trade
or business:
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      (1) acquires any form of e-liquid or e-liquid product for the
      purpose of resale; and
      (2) transfers the e-liquid or e-liquid product to another person
      for money or other consideration.
    SECTION 21. IC 7.1-7-2-23, AS AMENDED BY P.L.206-2017,
SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 23. "Vapor product" device" means a powered
vaporizer that converts e-liquid to a vapor intended for inhalation. The
term includes both open and closed system vapor devices.
    SECTION 22. IC 7.1-7-2-24 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2026]: Sec. 24. "Wholesaler" means a person who has obtained
or is required to obtain a wholesale tobacco sales certificate under
IC 7.1-3-18.5-1.5 that:
      (1) distributes, sells, barters, or exchanges e-liquid or e-liquid
      products in Indiana to retail dealers for the purpose of resale;
      or
      (2) purchases e-liquid or e-liquid products directly from a
      manufacturer for the purpose of resale to resellers.
    SECTION 23. IC 7.1-7-3-2, AS AMENDED BY P.L.206-2017,
SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 2. The commission has the following duties and
responsibilities:
      (1) To require the submission of information necessary to
      implement this article.
      (2) To issue permits.
      (3) To charge fees as set forth in this article. The fees charged
      under this subdivision may not exceed the actual costs incurred by
      the commission.
      (4) To approve or deny a permit application made under
      IC 7.1-7-4 within sixty (60) days of receiving the application.
    SECTION 24. IC 7.1-7-4-1, AS AMENDED BY P.L.49-2020,
SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 1. (a) Not later than January 1, 2027, a
manufacturer of e-liquid or an e-liquid product that is
manufactured or sold in Indiana must obtain a permit under this
section.
    (a) (b) A manufacturer of e-liquid may not mix, bottle, package, or
sell e-liquid to retailers, consumers, or distributors wholesalers in
Indiana without a permit issued by the commission under this article.
    (b) An e-liquid manufactured by an e-liquids manufacturer
approved by the commission under this article before July 1, 2017, may
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be distributed and sold for retail until the expiration date of the
e-liquid.
    (c) A manufacturing permit issued by the commission before July
1, 2026, is valid for five (5) years. A manufacturing permit issued by
the commission after June 30, 2026, is valid for two (2) years. A
manufacturing permit issued by the commission under this article
before July 1, 2017, does not expire before July 1, 2020.
    (d) An initial application for a manufacturing permit must include
the following:
      (1) The name, telephone number, and address of the applicant.
      (2) The name, telephone number, and address of the
      manufacturing facility.
      (3) The name, telephone number, title, and address of the person
      responsible for the manufacturing facility.
      (4) Verification that the facility will comply with applicable
      tobacco products good manufacturing practices promulgated
      under 21 U.S.C. 387f(e) of the federal Food, Drug, and Cosmetic
      Act.
      (5) Verification that the manufacturer will comply with the
      applicable ingredient listing required by 21 U.S.C. 387d(a)(1) of
      the federal Food, Drug, and Cosmetic Act.
      (6) Written consent allowing the state police department to
      conduct a state or national criminal history background check on
      any person listed on the application.
      (7) A nonrefundable initial application fee of one thousand dollars
      ($1,000). three thousand dollars ($3,000).
      (8) Verification that the manufacturer will comply with all
      other state and federal laws related to e-liquids and e-liquid
      products.
      (9) An affirmation, made under the penalties for perjury, that
      the manufacturer will not, to the best of the manufacturer's
      knowledge, use any ingredients or e-liquids in the
      manufacturer's manufacturing process from a nation listed as
      a foreign adversary in 15 CFR 791.4.
      (10) Evidence of the federal Food and Drug Administration
      approval, authorization, or application status of each e-liquid
      or e-liquid product the manufacturer seeks to sell, source,
      import, or manufacture in the manner described under
      IC 7.1-7-2-12.5(b)(2).
    (e) The fees collected under subsection (d)(7) shall be deposited in
the enforcement and administration fund established under IC 7.1-4-10.
    (f) Except as otherwise provided in this article, an applicant for
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a permit under this section must adhere to all state and federal
laws applicable to e-liquids and e-liquid products, including rules
and regulations promulgated by the federal Food and Drug
Administration.
    (g) If the federal Food and Drug Administration denies a
manufacturer's application for approval or authorization of an
e-liquid or e-liquid product during the term of a permit issued
under this section, the manufacturer must notify the commission
of the denial and submit a supplemental application for a
manufacturing permit on a form prescribed by the commission.
    SECTION 25. IC 7.1-7-4-2, AS AMENDED BY P.L.206-2017,
SECTION 24, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 2. (a) A manufacturing permit that is renewed by
the commission before July 1, 2026, is valid for five (5) years. A
manufacturing permit that is renewed by the commission after
June 30, 2026, is valid for two (2) years.
    (b) A renewal application for a manufacturing permit must include
the following:
      (1) The name, telephone number, and address of the applicant.
      (2) The name, telephone number, and address of the
      manufacturing facility.
      (3) The name, telephone number, title, and address of the person
      responsible for the manufacturing facility.
      (4) Verification that the facility complies with all tobacco
      products good manufacturing practices:
         (A) set forth in; and
         (B) promulgated in federal rules under;
      21 U.S.C. 387f through 21 U.S.C. 387u of the federal Food, Drug,
      and Cosmetic Act.
      (5) Written consent allowing the state police department to
      conduct a state or national criminal history background check on
      any person listed on the application.
      (6) A nonrefundable renewal application fee of five hundred
      dollars ($500). one thousand dollars ($1,000).
      (7) Verification that the manufacturer will comply with all
      other state and federal laws related to e-liquids and e-liquid
      products.
      (8) An affirmation, made under the penalties for perjury, that
      the manufacturer will not, to the best of the manufacturer's
      knowledge, use any ingredients or e-liquids in the
      manufacturer's manufacturing process from a nation listed as
      a foreign adversary in 15 CFR 791.4.
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      (9) Evidence of the federal Food and Drug Administration
      approval, authorization, or application status of each e-liquid
      or e-liquid product the manufacturer seeks to sell, source,
      import, or manufacture in the manner described under
      IC 7.1-7-2-12.5(b)(2).
    (c) The fees collected under subsection (b)(6) shall be deposited in
the enforcement and administration fund established under IC 7.1-4-10.
    (d) If the federal Food and Drug Administration denies a
manufacturer's application for approval or authorization of an
e-liquid or e-liquid product during the term of a permit issued
under this section, the manufacturer must notify the commission
of the denial and submit a supplemental renewal application for a
manufacturing permit on a form prescribed by the commission.
    SECTION 26. IC 7.1-7-4-6, AS AMENDED BY P.L.17-2019,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 6. (a) As used in this section:
      (1) "adulterated" means a product that:
          (A) consists in whole or in part of any filthy, putrid, or
          decomposed substance; or
          (B) is contaminated by any added poisonous or added
          deleterious substance that may render the product injurious to
          health; and or
          (C) is a foreign adversary product; and
      (2) "tamper evident package" means a package having at least one
      (1) indicator or barrier to entry that, if breached or missing, can
      reasonably be expected to provide visible evidence to consumers
      that tampering has occurred.
    (b) A manufacturing facility shall comply with the following
requirements:
      (1) An e-liquid container must use a child proof cap that has the
      child resistant effectiveness set forth in the federal poison
      prevention packaging standards, 16 CFR 1700.15(b)(1).
      (2) An e-liquid container or e-liquid product must use a tamper
      evident package. The tamper evident package feature must be
      designed to and remain intact when handled in a reasonable
      manner during the manufacture, distribution, and retail display of
      the e-liquid container or e-liquid product.
      (3) The label on an e-liquid container or e-liquid product must
      meet the nicotine addictiveness warning statement requirements
      set forth in 21 CFR 1143.3.
      (4) The manufacturer, wholesaler, or retailer may not add an
      adulterated product to any e-liquid or e-liquid product produced
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     for sale in Indiana.
     (5) The manufacturer must submit to random site visits by the
     commission.
     (6) The manufacturer may:
        (A) own and control both the e-liquid or e-liquid product
        manufacturing process and the bottling process; or
        (B) subcontract with another manufacturer for the performance
        of the e-liquid or e-liquid product manufacturing service, the
        bottling services, or both services.
     However, both the manufacturer performing a service under
     clause (B) and the manufacturer for which the service is
     performed must meet the requirements of this article, including
     obtaining a permit.
     (7) A manufacturer may use a flavoring, as defined by
     IC 7.1-7-2-12, as an ingredient in an e-liquid or e-liquid product.
     (8) The manufacturer or any person listed on the permit
     application may not have been convicted within ten (10) years
     before the date of application of:
        (A) a federal crime having a sentence of at least one (1) year;
        (B) an Indiana Class A, Class B, or Class C felony (for a crime
        committed before July 1, 2014) or a Level 1, Level 2, Level 3,
        Level 4, or Level 5 felony (for a crime committed after June
        30, 2014);
        (C) a crime in a state other than Indiana having a penalty equal
        to the penalty for an Indiana Class A, Class B, or Class C
        felony (for a crime committed before July 1, 2014) or a Level
        1, Level 2, Level 3, Level 4, or Level 5 felony (for a crime
        committed after June 30, 2014);
        (D) an Indiana Class D felony involving a controlled substance
        under IC 35-48-4 (for a crime committed before July 1, 2014)
        or a Level 6 felony involving a controlled substance under
        IC 35-48-4 (for a crime committed after June 30, 2014); or
        (E) a crime in a state other than Indiana similar to a Class D
        felony involving a controlled substance under IC 35-48-4 (for
        a crime committed before July 1, 2014) or a Level 6 felony
        involving a controlled substance under IC 35-48-4 (for a crime
        committed after June 30, 2014).
   SECTION 27. IC 7.1-7-4-8 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2026]: Sec. 8. (a) A manufacturer that is permitted or required
to be permitted under this chapter may not manufacture, source,
possess, sell, or otherwise distribute a foreign adversary product.
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    (b) A retailer that holds or is required to hold a tobacco sales
certificate under IC 7.1-3-18.5-1 may not possess, sell, or otherwise
distribute a foreign adversary product.
    (c) A wholesaler that holds or is required to hold a wholesale
tobacco sales certificate under IC 7.1-3-18.5-1.5 may not possess,
sell, or otherwise distribute a foreign adversary product.
    SECTION 28. IC 7.1-7-5.5-1, AS AMENDED BY P.L.49-2020,
SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 1. A retailer may not make a delivery sale of
e-liquid, an e-liquid product, or a vapor device to an individual who
does not meet the minimum age requirement as set forth in
IC 7.1-7-6-5.
    SECTION 29. IC 7.1-7-5-1.1, AS AMENDED BY P.L.220-2023,
SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 1.1. (a) A retailer must have a valid sales
certificate issued by the commission in accordance with
IC 7.1-3-18.5-1 that contains a separate box to check for identifying a
retailer that sells e-liquids or e-liquid products.
    (b) A retailer may purchase e-liquid or an e-liquid product only
from an Indiana e-liquid manufacturing permit holder or an Indiana
distributor wholesaler permit holder.
    (c) A retailer shall retain all invoices for e-liquid and e-liquid
products that the retailer purchases for two (2) years.
    (d) A retailer shall not allow the self-service sale for individuals
purchasing an e-liquid or e-liquid product.
    (e) A retailer may not sell an e-liquid or e-liquid product that
contains more than seventy-five (75) milligrams per milliliter of
nicotine.
    (f) A manufacturer must have an e-liquid a manufacturing permit
issued under IC 7.1-7-4.
    (g) A distributor wholesaler that does not have a valid e-liquid
manufacturing permit issued under IC 7.1-7-4 must have a valid
distributor's license wholesale tobacco sales certificate issued under
IC 6-7-2-8. IC 7.1-3-18.5-1.5.
    (h) A distributor wholesaler shall purchase and distribute e-liquid
or e-liquid products from an:
      (1) Indiana e-liquid manufacturer that has a valid e-liquid
      manufacturing permit under IC 7.1-7-4; or
      (2) Indiana e-liquid distributor wholesaler that has a valid:
          (A) e-liquid manufacturing permit issued under IC 7.1-7-4; or
          (B) distributor's license wholesale tobacco sales certificate
          under IC 6-7-2-8. IC 7.1-3-18.5-1.5.
SEA 185 — CC 1
                                   14
   (i) A distributor wholesaler shall retain all invoices to a retailer or
from a manufacturer for at least two (2) years.
   (j) A manufacturer, distributor, wholesaler, or retailer may not
market e-liquid or an e-liquid product as a modified risk tobacco
product, as defined by IC 7.1-7-2-17.5, that has not been designated as
a modified risk tobacco product by the federal Food and Drug
Administration.
   (k) Except as provided in subsection (m), a manufacturer including
a manufacturer of a closed system vapor product, permitted or
required to be permitted under IC 7.1-7-4 shall annually submit a
report to the commission setting forth:
      (1) each new product that the manufacturer is producing and is
      sold in Indiana with a list of the contents and ingredients by
      volume; and
      (2) whether the manufacturer has stopped producing products
      previously produced and sold in Indiana.
A report under this subsection is confidential, and the commission may
not disclose it to another person.
   (l) A manufacturer permitted or required to be permitted under
IC 7.1-7-4 shall annually submit a report to the commission setting
forth:
      (1) the milligrams per milliliter of nicotine in each product the
      manufacturer produces; and
      (2) the milliliters of each product sold that current year.
A report under this subsection is confidential, and the ATC
commission may not disclose it to another person.
   (m) A manufacturer is not required to submit a report described in
subsection (k) if the manufacturer submits to the commission a
certification, by October 1 of each year, that each of the manufacturer's
vapor products e-liquid or e-liquid products sold in Indiana has have
been filed with the federal Food and Drug Administration.
   SECTION 30. IC 7.1-7-5-2, AS ADDED BY P.L.176-2015,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 2. (a) A manufacturer of e-liquid may file a
request with the Indiana department of health for approval of an
ingredient to be allowed in the composition of e-liquid.
   (b) The Indiana department of health may approve the request filed
under subsection (a) if the department determines that the ingredient
will not pose an unreasonable threat to public health and safety.
   SECTION 31. IC 7.1-7-5.5-2, AS AMENDED BY P.L.49-2020,
SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 2. A retailer may not ship an e-liquid, an e-liquid
SEA 185 — CC 1
                                   15
product, or a vapor device without first making a good faith effort to
verify the age of the purchaser of the e-liquid, e-liquid product, or
vapor device as set forth in IC 7.1-7-6-6.
    SECTION 32. IC 7.1-7-5.5-3, AS AMENDED BY P.L.49-2020,
SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 3. (a) Before an e-liquid or e-liquid product is
shipped in a delivery sale, a retailer must be fully paid for the purchase
and shall accept payment from the purchaser:
      (1) by a check drawn on an account in the purchaser's name;
      (2) by a credit card issued in the purchaser's name; or
      (3) by a debit card issued in the purchaser's name.
    (b) A retailer may ship an e-liquid or e-liquid product only to a
purchaser.
    SECTION 33. IC 7.1-7-5.5-5, AS AMENDED BY P.L.49-2020,
SECTION 17, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 5. A retailer who ships an e-liquid, an e-liquid
product, or a vapor device from a delivery sale order shall include as
part of the shipping documents a document with the following
statement: "E-LIQUIDS: Indiana law prohibits the sale of this product
to a person who is less than 21 years of age.".
    SECTION 34. IC 7.1-7-6-1, AS AMENDED BY P.L.206-2017,
SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 1. (a) If a manufacturer, distributor, wholesaler,
or retailer violates any provision of this article, the manufacturer,
distributor, wholesaler, or retailer may be reprimanded, assessed a
civil penalty, or have the manufacturer's permit, distributor's license,
wholesaler's tobacco sales certificate, or retailer's tobacco sales
certificate suspended by the commission.
    (b) Any provision in this article that requires a manufacturer,
wholesaler, or retailer to comply with the federal Food, Drug, and
Cosmetic Act or a federal rule promulgated under the federal Food,
Drug, and Cosmetic Act is under the sole jurisdiction of the federal
Food and Drug Administration. If the federal Food and Drug
Administration seeks court enforcement of any section of the federal
Food, Drug, and Cosmetic Act cited in this article and a civil monetary
penalty is assessed against the manufacturer, the act or omission for
which the penalty was assessed constitutes a violation of this article.
The commission shall revoke the permit, tobacco sales certificate,
or wholesaler tobacco sales certificate of a manufacturer,
wholesaler, or retailer that violates the federal Food, Drug, and
Cosmetic Act or a federal rule promulgated under the federal
Food, Drug, and Cosmetic Act.
SEA 185 — CC 1
                                   16
    (c) The commission may assess a civil penalty against a
manufacturer, distributor, wholesaler, or retailer for a violation of this
article in an amount that does not exceed ten thousand dollars
($10,000). A civil penalty may be assessed in addition to other
penalties allowed under this article.
    SECTION 35. IC 7.1-7-6-2.1, AS ADDED BY P.L.49-2020,
SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 2.1. A person who sells or distributes an e-liquid,
an e-liquid product, or a vapor device to a person less than
twenty-one (21) years of age may be in violation of IC 35-46-1.
    SECTION 36. IC 7.1-7-6-5, AS AMENDED BY P.L.49-2020,
SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 5. A person who knowingly or intentionally makes
a delivery sale of an e-liquid, e-liquid product, or a vapor device to
an individual who is less than twenty-one (21) years of age commits a
Class C infraction.
    SECTION 37. IC 7.1-7-6-6, AS AMENDED BY P.L.49-2020,
SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 6. (a) As used in this section, "good faith effort to
verify the age of the purchaser of the e-liquid, e-liquid product, or
vapor device" means:
      (1) verifying the age of the purchaser in a commercially available
      database; or
      (2) obtaining a photocopy of a government issued identification;
that indicates the birth date or age of the purchaser.
    (b) A person who knowingly or intentionally ships an e-liquid, an
e-liquid product, or a vapor device without first making a good faith
effort to verify the age of the purchaser of the e-liquid, e-liquid
product, or vapor device commits a Class C infraction.
    SECTION 38. IC 24-3-2-2, AS AMENDED BY P.L.217-2017,
SECTION 154, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 2. Unless the context in this chapter
requires otherwise, the term:
    (a) "Cigarette" shall mean and include any roll for smoking made
wholly or in part of tobacco, irrespective of size or shape and
irrespective of tobacco being flavored, adulterated, or mixed with any
other ingredient, where such roll has a wrapper or cover made of paper
or any other material; provided the definition in this paragraph shall not
be construed to include cigars.
    (b) "Person" or the term "company", used in this chapter
interchangeably, means and includes any individual, assignee, receiver,
commissioner, fiduciary, trustee, executor, administrator, institution,
SEA 185 — CC 1
                                    17
bank, consignee, firm, partnership, limited liability company, joint
vendor, pool, syndicate, bureau, association, cooperative association,
society, club, fraternity, sorority, lodge, corporation, municipal
corporation, or other political subdivision of the state engaged in
private or proprietary activities or business, estate, trust, or any other
group or combination acting as a unit, and the plural as well as the
singular number, unless the intention to give a more limited meaning
is disclosed by the context.
    (c) "Distributor" shall mean and include every person who sells,
barters, exchanges, or distributes cigarettes in the state of Indiana to
retail dealers for the purpose of resale, or who purchases for resale
cigarettes from a manufacturer of cigarettes or from a wholesaler,
jobber, or distributor outside the state of Indiana who is not a
distributor holding a registration certificate issued under the provisions
of IC 6-7-1.
    (d) "Retailer" shall mean every person, other than a distributor, who
purchases, sells, offers for sale, or distributes cigarettes to consumers
or to any person for any purpose other than resale, irrespective of
quantity or amount or the number of sales.
    (e) "Sell at retail", "sale at retail", and "retail sales" shall mean and
include any transfer of title to cigarettes for a valuable consideration
made in the ordinary course of trade or usual conduct of the seller's
business to the purchaser for consummation or use.
    (f) "Sell at wholesale", "sale at wholesale", and "wholesale sales"
shall mean and include any transfer of title to cigarettes for a valuable
consideration made in the ordinary course of trade or usual conduct of
a distributor's business.
    (g) "Basic cost of cigarettes" shall mean the invoice cost of
cigarettes to the retailer or distributor, as the case may be, or the
replacement cost of cigarettes to the retailer or distributor, as the case
may be, within thirty (30) days prior to the date of sale, in the quantity
last purchased, whichever is the lower, less all trade discounts and
customary discounts for cash, plus the cost at full face value of any
stamps which may be required by IC 6-7-1, if not included by the
manufacturer in his selling price to the distributor.
    (h) "Department" shall mean the alcohol and tobacco commission
or its duly authorized assistants and employees.
    (i) "Cost to the retailer" shall mean the basic cost of cigarettes to the
retailer, plus the cost of doing business by the retailer as evidenced by
the standards and methods of accounting regularly employed by him in
his allocation of overhead costs and expenses paid or incurred and must
include without limitation labor (including salaries of executives and
SEA 185 — CC 1
                                    18
officers), rent, depreciation, selling costs, maintenance of equipment,
delivery costs, all types of licenses, taxes, insurance, and advertising;
however, any retailer who, in connection with the retailer's purchase,
receives not only the discounts ordinarily allowed upon purchases by
a retailer, but also, in whole or in part, discounts ordinarily allowed on
purchases by a distributor shall, in determining costs to the retailer
pursuant to this section, add the cost to the distributor, as defined in
paragraph (j), to the basic cost of cigarettes to said retailer as well as
the cost of doing business by the retailer. In the absence of proof of a
lesser or higher cost of doing business:
      (1) by the retailer making the sale, the cost of doing business by
      the retailer shall be presumed to be the following percent of the
      basic cost of cigarettes to the retailer:
          (A) Until January 1, 2018, twelve percent (12%).
          (B) During 2018, twelve and twenty-five hundredths percent
          (12.25%).
          (C) During 2019, twelve and five tenths percent (12.5%).
          (D) During 2020, twelve and seventy-five hundredths percent
          (12.75%).
          (E) During 2021, thirteen percent (13%).
          (F) During 2022, thirteen and twenty-five hundredths percent
          (13.25%).
          (G) During 2023, thirteen and five tenths percent (13.5%).
          (H) During 2024, thirteen and seventy-five hundredths percent
          (13.75%).
          (I) After 2024, fourteen percent (14%).
      (2) by the retailer, who in connection with the retailer's purchase
      receives not only the discounts ordinarily allowed upon purchases
      by a retailer, but also, in whole or in part, the discounts ordinarily
      allowed upon purchases by a distributor, shall be presumed to be
      the following percent of the sum of the basic cost of cigarettes
      plus the cost of doing business by the distributor:
          (A) Until January 1, 2018, twelve percent (12%).
          (B) During 2018, twelve and twenty-five hundredths percent
          (12.25%).
          (C) During 2019, twelve and five tenths percent (12.5%).
          (D) During 2020, twelve and seventy-five hundredths percent
          (12.75%).
          (E) During 2021, thirteen percent (13%).
          (F) During 2022, thirteen and twenty-five hundredths percent
          (13.25%).
          (G) During 2023, thirteen and five tenths percent (13.5%).
SEA 185 — CC 1
                                    19
          (H) During 2024, thirteen and seventy-five hundredths percent
          (13.75%).
          (I) After 2024, fourteen percent (14%).
    (j) "Cost to the distributor" shall mean the basic cost of cigarettes to
the distributor, plus the cost of doing business by the distributor as
evidenced by the standards and methods of accounting regularly
employed by him in his allocation of overhead costs and expenses, paid
or incurred, and must include without limitation labor costs (including
salaries of executives and officers), rent, depreciation, selling costs,
maintenance of equipment, delivery costs, all types of licenses, taxes,
insurance, and advertising. In the absence of proof of a lesser or higher
cost of doing business by the distributor making the sale, the cost of
doing business by the wholesaler shall be presumed to be four percent
(4%) of the basic cost of cigarettes to the distributor, plus cartage to the
retail outlet, if performed or paid for by the distributor, which cartage
cost, in the absence of proof of a lesser or higher cost, shall be deemed
to be one-half of one percent (0.5%) of the basic cost of cigarettes to
the distributor.
    (k) "Registration certificate" refers to the registration certificate
issued to cigarette distributors by the department of state revenue under
IC 6-7-1-16.
    (l) "Buydown" means any payment or compensation given by
a cigarette manufacturer to a cigarette distributor or retailer to
promote the sale of cigarettes and for which the manufacturer
requires that either:
       (1) the distributor pass the resulting price reduction on to the
       retailer; or
       (2) the retailer pass the resulting price reduction on to the
       consumer.
    SECTION 39. IC 24-3-2-9 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 9. (a) In determining
cost to the retailer and cost to the distributor, the court or the
department, as the case may be, shall receive and consider as bearing
on the bona fides of such cost evidence tending to show that any person
complained against under any of the provisions of this chapter
purchased cigarettes with respect to the sale of which complaint is
made at a fictitious price, or upon terms, or in such manner, or under
such invoices, as to conceal the true cost, discounts, or terms of
purchase, and shall also receive and consider as bearing on the bona
fides of such cost evidence of the normal, customary, and prevailing
terms and discounts in connection with other sales of a similar nature
in the trade area or state.
SEA 185 — CC 1
                                   20
    (b) Merchandise given gratis or payment made to a retailer or
distributor for display, or advertising, or promotion purposes, or
otherwise shall not be considered in determining the cost of cigarettes
to the retailer or distributor.
    (c) A buydown must be considered in determining the cost to the
retailer or the cost to the distributor, as applicable, provided that
the sum of any buydown and consideration paid by the purchaser
is not below the cost to the retailer or distributor.
    SECTION 40. IC 35-45-6-1, AS AMENDED BY P.L.186-2025,
SECTION 240, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 1. (a) The definitions in this section
apply throughout this chapter.
    (b) "Documentary material" means any document, drawing,
photograph, recording, or other tangible item containing compiled data
from which information can be either obtained or translated into a
usable form.
    (c) "Enterprise" means:
      (1) a sole proprietorship, corporation, limited liability company,
      partnership, business trust, or governmental entity; or
      (2) a union, an association, or a group, whether a legal entity or
      merely associated in fact.
    (d) "Pattern of racketeering activity" means engaging in at least two
(2) incidents of racketeering activity that have the same or similar
intent, result, accomplice, victim, or method of commission, or that are
otherwise interrelated by distinguishing characteristics that are not
isolated incidents. However, the incidents are a pattern of racketeering
activity only if at least one (1) of the incidents occurred after August
31, 1980, and if the last of the incidents occurred within five (5) years
after a prior incident of racketeering activity.
    (e) "Racketeering activity" means to commit, to attempt to commit,
to conspire to commit a violation of, or aiding and abetting in a
violation of any of the following:
      (1) A provision of IC 23-19, or of a rule or order issued under
      IC 23-19.
      (2) A violation of IC 35-45-9.
      (3) A violation of IC 35-47.
      (4) A violation of IC 35-49-3.
      (5) Murder (IC 35-42-1-1).
      (6) Battery as a Class C felony before July 1, 2014, or a Level 5
      felony after June 30, 2014 (IC 35-42-2-1).
      (7) Kidnapping (IC 35-42-3-2).
      (8) Human and sexual trafficking crimes (IC 35-42-3.5).
SEA 185 — CC 1
                               21
   (9) Child exploitation (IC 35-42-4-4).
   (10) Robbery (IC 35-42-5-1).
   (11) Carjacking (IC 35-42-5-2) (before its repeal).
   (12) Arson (IC 35-43-1-1).
   (13) Burglary (IC 35-43-2-1).
   (14) Theft (IC 35-43-4-2).
   (15) Receiving stolen property (IC 35-43-4-2) (before its
   amendment on July 1, 2018).
   (16) Forgery (IC 35-43-5-2).
   (17) An offense under IC 35-43-5.
   (18) Bribery (IC 35-44.1-1-2).
   (19) Official misconduct (IC 35-44.1-1-1).
   (20) Conflict of interest (IC 35-44.1-1-4).
   (21) Perjury (IC 35-44.1-2-1).
   (22) Obstruction of justice (IC 35-44.1-2-2).
   (23) Intimidation (IC 35-45-2-1).
   (24) Promoting prostitution (IC 35-45-4-4).
   (25) Professional gambling (IC 35-45-5-3).
   (26) Maintaining a professional gambling site
   (IC 35-45-5-3.5(b)).
   (27) Promoting professional gambling (IC 35-45-5-4).
   (28) Dealing in or manufacturing cocaine or a narcotic drug
   (IC 35-48-4-1).
   (29) Dealing in methamphetamine (IC 35-48-4-1.1).
   (30) Manufacturing methamphetamine (IC 35-48-4-1.2).
   (31) Dealing in a schedule I, II, or III controlled substance
   (IC 35-48-4-2).
   (32) Dealing in a schedule IV controlled substance
   (IC 35-48-4-3).
   (33) Dealing in a schedule V controlled substance (IC 35-48-4-4).
   (34) Dealing in marijuana, hash oil, hashish, or salvia
   (IC 35-48-4-10).
   (35) Money laundering (IC 35-45-15-5).
   (36) A violation of IC 35-47.5-5.
   (37) A violation of any of the following:
      (A) IC 23-14-48-9.
      (B) IC 30-2-9-7(b).
      (C) IC 30-2-10-9(b).
      (D) IC 30-2-13-38(f).
   (38) Practice of law by a person who is not an attorney
   (IC 33-43-2-1).
   (39) An offense listed in IC 35-48-4 involving the manufacture or
SEA 185 — CC 1
                                    22
      sale of a synthetic drug (as defined in IC 35-31.5-2-321), a
      synthetic drug lookalike substance (as defined in
      IC 35-31.5-2-321.5 (before its repeal on July 1, 2019)) under
      IC 35-48-4-10.5 (before its repeal on July 1, 2019), a controlled
      substance analog (as defined in IC 35-48-1.1-8), or a substance
      represented to be a controlled substance (as described in
      IC 35-48-4-4.6).
      (40) Dealing in a controlled substance resulting in death
      (IC 35-42-1-1.5).
      (41) Organized retail theft (IC 35-43-4-2.2).
      (42) Sale of alcohol without a permit (IC 7.1-5-10-5).
   SECTION 41. IC 35-46-1-10.2, AS AMENDED BY P.L.163-2025,
SECTION 63, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 10.2. (a) A person may not be charged with a
violation under this section and a violation under IC 7.1-7-6-5.
   (b) A retail establishment that sells or distributes a tobacco product
to a person less than twenty-one (21) years of age commits a Class C
infraction. For a sale to take place under this section, the buyer must
pay the retail establishment for the tobacco product.
   (c) Notwithstanding IC 34-28-5-4(c), a civil judgment for an
infraction committed under this section must be imposed as follows:
      (1) If the retail establishment at that specific business location has
      not been issued a citation or summons for a violation of this
      section in the previous one (1) year, a civil penalty of up to four
      hundred dollars ($400).
      (2) If the retail establishment at that specific business location has
      had one (1) citation or summons issued for a violation of this
      section in the previous one (1) year, a civil penalty of up to eight
      hundred dollars ($800).
      (3) If the retail establishment at that specific business location has
      had two (2) citations or summonses issued for a violation of this
      section in the previous one (1) year, a civil penalty of up to one
      thousand four hundred dollars ($1,400).
      (4) If the retail establishment at that specific business location has
      had three (3) or more citations or summonses issued for a
      violation of this section in the previous one (1) year, a civil
      penalty of up to two thousand dollars ($2,000).
A retail establishment may not be issued a citation or summons for a
violation of this section more than once every twenty-four (24) hours
for each specific business location.
   (d) It is not a defense that the person to whom the tobacco product
was sold or distributed did not smoke, chew, inhale, or otherwise
SEA 185 — CC 1
                                   23
consume the tobacco product.
   (e) The following defenses are available to a retail establishment
accused of selling or distributing a tobacco product to a person who is
less than twenty-one (21) years of age:
      (1) The buyer or recipient produced a driver's license bearing the
      purchaser's or recipient's photograph showing that the purchaser
      or recipient was of legal age to make the purchase.
      (2) The buyer or recipient produced a photographic identification
      card issued under IC 9-24-16-1 or a similar card issued under the
      laws of another state or the federal government showing that the
      purchaser or recipient was of legal age to make the purchase.
      (3) The appearance of the purchaser or recipient was such that an
      ordinary prudent person would believe that the purchaser or
      recipient was not less than thirty (30) years of age.
   (f) It is a defense that the accused retail establishment sold or
delivered the tobacco product to a person who acted in the ordinary
course of employment or a business concerning tobacco products for
the following activities:
      (1) Agriculture.
      (2) Processing.
      (3) Transporting.
      (4) Wholesaling.
      (5) Retailing.
   (g) As used in this section, "distribute" means to give a tobacco
product to another person as a means of promoting, advertising, or
marketing the tobacco product to the general public.
   (h) Unless a person buys or receives a tobacco product under the
direction of a law enforcement officer as part of an enforcement action,
a retail establishment that sells or distributes a tobacco product is not
liable for a violation of this section unless the person less than
twenty-one (21) years of age who bought or received the tobacco
product is issued a citation or summons under section 10.5 of this
chapter.
   (i) Notwithstanding IC 34-28-5-5(c), civil penalties collected under
this section must be deposited in the Richard D. Doyle tobacco
education and enforcement fund (IC 7.1-6-2-6).
   (j) A person who violates subsection (b) at least six (6) three (3)
times in any one (1) year commits habitual illegal sale of tobacco, a
Class B infraction.
   SECTION 42. IC 35-46-1-11.7, AS AMENDED BY P.L.163-2025,
SECTION 66, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 11.7. (a) A retail establishment in which tobacco
SEA 185 — CC 1
                                   24
products account for at least eighty-five percent (85%) of the retail
establishment's gross sales may not allow an individual who is less than
twenty-one (21) years of age to enter the retail establishment.
    (b) An individual who is less than twenty-one (21) years of age may
not enter a retail establishment described in subsection (a).
    (c) A retail establishment described in subsection (a) must
conspicuously post on all entrances to the retail establishment the
following:
      (1) A sign in boldface type that states "NOTICE: It is unlawful for
      a person less than 21 years old to enter this store.".
      (2) A sign printed in letters and numbers at least one-half (1/2)
      inch high that displays a toll free phone number for assistance to
      callers in quitting smoking, as determined by the Indiana
      department of health.
    (d) A person who violates this section commits a Class C infraction.
Notwithstanding IC 34-28-5-4(c), a civil judgment for an infraction
committed under this section must be imposed as follows:
      (1) If the person has not been cited for a violation of this section
      in the previous one (1) year, a civil penalty of up to four hundred
      dollars ($400).
      (2) If the person has had one (1) violation in the previous one (1)
      year, a civil penalty of up to eight hundred dollars ($800).
      (3) If the person has had two (2) violations in the previous one (1)
      year, a civil penalty of up to one thousand four hundred dollars
      ($1,400).
      (4) If the person has had three (3) or more violations in the
      previous one (1) year, a civil penalty of up to two thousand dollars
      ($2,000).
A person may not be cited more than once every twenty-four (24)
hours.
    (e) Notwithstanding IC 34-28-5-5(c), civil penalties collected under
this section must be deposited in the Richard D. Doyle tobacco
education and enforcement fund established under IC 7.1-6-2-6.
    (f) A person who violates subsection (a) at least six (6) three (3)
times in any one (1) year period commits habitual illegal entrance by
a minor, a Class B infraction.
    SECTION 43. IC 35-46-6-3, AS AMENDED BY P.L.163-2025,
SECTION 68, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 3. (a) A person who knowingly or intentionally
uses or distributes nitrous oxide with intent to cause a condition of
intoxication, euphoria, excitement, exhilaration, stupefaction, or
dulling of the senses of another person, unless the nitrous oxide is to be
SEA 185 — CC 1
                                  25
used for medical purposes, commits a Class B misdemeanor. However,
the offense is a Class A misdemeanor if the person has a prior
unrelated conviction under this section.
    (b) Except as provided in subsection (c), a person who knowingly
or intentionally sells, uses, or distributes flavored nitrous oxide
commits a Class B misdemeanor. However, the offense is a Class A
misdemeanor if the person has a prior unrelated conviction under this
section.
    (c) The prohibition on the sale, use, or distribution of flavored
nitrous oxide in subsection (b) does not apply to:
      (1) a retail or wholesale restaurant supply company that sells or
      distributes flavored nitrous oxide to a person for use in food and
      beverage preparation or other culinary purposes; or
      (2) a person that uses flavored nitrous oxide in food and beverage
      recipes or for other legitimate culinary purposes; or
      (3) a law enforcement agency that is disposing of flavored
      nitrous oxide by donation to a nonprofit organization.
SEA 185 — CC 1
President of the Senate
President Pro Tempore
Speaker of the House of Representatives
Governor of the State of Indiana
Date:  Time:
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