By Timothy S. Donahue
Top Takeaways:
- Flavor restriction proposal advances without endorsement: A bill limiting sales of flavored vapes to licensed smoke shops (HB 1240) moves forward without a “do pass” recommendation.
- Wholesaler licensing bill gains traction: HB 1220, which requires $1,000 licenses for wholesalers and distributors, earned an 11–2 “do pass” vote.
- Debate centers on youth access vs. harm reduction: Smoke shop advocates argue flavors help adults quit smoking, while health groups warn the bill is “unworkable” and risks increasing youth exposure.
South Dakota lawmakers are weighing two competing approaches to regulating nicotine vapes and pouches, with one bill advancing strongly and another surviving a narrow committee split after intense debate over flavors, youth access, and harm reduction.
During a House Health and Human Services Committee hearing Tuesday, smoke shop lobbyist Jordan Mason told lawmakers that nicotine vaping products are “the number one method worldwide to help people quit smoking.” Rapid City smoke shop owner Caleb Rose added that fruity and candy-flavored products often help adult smokers transition away from cigarettes.
Both men urged support for House Bill 1240, which would restrict sales of flavored vape products to specialty retailers deriving at least 25% of revenue from nicotine products. Businesses below that threshold would be limited to selling tobacco, mint or menthol flavors.
“A regulatory framework like that would preserve the lives of people that are addicted to tobacco, while also keeping it out of the hands of youth,” Mason said.
Rose described the proposal as a structured compromise. “We don’t want products in the hands of kids, and this takes a structured and workable approach to that goal,” he said. “It creates a clear licensing system for retailers, and that matters. If we want to curb youth vaping and eliminate bad actors, retailers need to be held to higher standards.”
HB 1240 would also require:
- A $250 retailer license
- Digital age-verification scanners at point of sale
- Advertising and signage restrictions
The bill’s sponsor is Rapid City Republican Rep. Tim Goodwin.
Opposition came from the American Heart Association, the South Dakota Retailers Association, and state agencies, including the Departments of Revenue and Health.
Jennifer Stalley of the American Heart Association called the measure “unworkable,” citing “technical flaws.” Bill Van Camp of the South Dakota Retailers Association went further.
“Now they’re going to take certain types of products and move those into vape shops only, and we don’t think that that’s fair — if it’s legal,” Van Camp said.
The committee rejected a motion to send HB 1240 to the House floor with a favorable recommendation but failed to kill the bill. It ultimately advanced 9–4 without recommendation, meaning it will require a majority vote of the full House to be placed on the debate calendar.
Meanwhile, House Bill 1220 took a different path.
Originally drafted to license all retailers, the bill was amended by sponsor Rep. Brian Mulder to apply only to wholesalers and distributors. Under the revised proposal, wholesalers would need a $1,000 license for each location, and retailers could purchase products only from state-licensed distributors.
“We need to take steps moving forward to get our arms around this really rapidly growing retail operation,” Mulder said, describing the amendment as a compromise developed through stakeholder discussions.
HB 1220 passed out of committee 11–2 with a “do pass” recommendation, setting it up for floor debate.
The debate comes amid growing concerns about youth vaping. According to 2024 CDC data cited during testimony, just under 8% of teens reported vaping in the past 30 days, compared with fewer than 2% who reported smoking cigarettes. South Dakota remains one of nine states that does not require a license to sell tobacco products.
Advocates also highlighted the broader public health context. Tobacco remains the leading cause of preventable death in the United States, according to the Centers for Disease Control and Prevention, while scientific consensus holds that nicotine vapes and pouches pose a fraction of the health risk associated with combustible cigarettes.
Separately, the House approved House Concurrent Resolution 6011 by a 58–8 vote, encouraging the formation of a “Neurohealth Safety Committee” to study vapor products, including nicotine and marijuana-related devices.
