A new bipartisan proposal in Tennessee seeks to impose stricter regulations on the vape industry to safeguard children, though some retailers argue it’s essentially a “big tobacco bill” that could force them out of business.

Under the proposed legislation, a universal carding requirement would be implemented alongside a 10% tax on “open system” vape products—those in which users add their own liquid. The bill would also ban any vape products that aren’t FDA-approved or are merely awaiting approval.

Additionally, it mandates the creation of a state registry that would list every product permitted for sale in Tennessee, including the 34 FDA-approved vape products and over 400 items in the approval pipeline.

Sen. Ken Yager (R-Kingston), the bill’s Senate sponsor, emphasized the safety concerns that prompted the measure. “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.”

He noted that several judges in his district have expressed alarm over the rising youth vaping rates and the overall safety of these products.

The proposal also has support from Rep. David B. Hawk (R-Greeneville), the bill’s House sponsor, who highlighted the influx of illicit vape products in the market. “The market is being flooded with illicit vapes that are overwhelmingly manufactured and exported from China,” Hawk stated, arguing that the measure is a necessary step to stem the tide of unsafe imports.

However, the bill has drawn fierce opposition from vape industry experts. They warn that the registry and ban provisions would compel retailers to remove as much as 99% of the products they currently sell, effectively pushing them out of business. “An outright registry and a ban on our products is not proper,” said Danny Gillis, president of the TN Smoke Free Association. “It’s actually a prohibition, and it’s going to cause harm in our state—health harm.”

Gillis pointed out that thousands of his customers have successfully used vapes to quit smoking, yet he criticized the fact that the 34 FDA-approved products are all owned by “big tobacco.” He warned, “When they implement such regulation or opposing tax structures, it drives people back to smoking or goes straight into a black market.”

He added, “The FDA, if they ban products, which they do all the time, they’re taken off distribution. The labs are closed; they stop the imports. The FDA is already doing exactly what this registry is trying to accomplish. It is going to be a burden on this state, and it is going to be a burden on stores to try to know what is available to sell, and we’re going to strand our customers to the black market.”

TSFA Vice President Chris Lautz also cited negative impacts experienced by states with similar legislation. “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 explained. “California did the same thing in 2023. They’re looking at a $150 to $200 million tax shortfall because of this bill. Alabama, Louisiana, Oklahoma—these are just some of the states that passed this, but every one of these states has had a massive negative impact, not only on taxes, but on small business support; a lot of these businesses are closing.”

Lautz noted that Louisiana, for example, saw over 100 vape store closures, representing 25% of its vape retailers.

In response to these concerns, Yager dismissed the business fallout as “a false issue.” “That is not the intention of this bill to put anybody out of business, and under the terms of this bill, it will not put anybody out of business,” he asserted.

Lawmakers also argued that while many responsible retailers adhere to regulations, thousands do not, thereby endangering youth. “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,” Hawk remarked.

Due to timing issues, the House version of the bill has been postponed to the next Government Operations Committee hearing, with proponents expected to testify on March 10.