Nebraska Bill Would Create Vape Registry, More Tax

Nebraska is seeking to join the growing number of states that have created a registry of authorized vaping products retailers can sell.

State Sen. Jana Hughes sponsored a successful bill last year that implemented a 5-cent-per-militer excise tax on disposable vape liquids and a 10 percent wholesale tax on other electronic nicotine-delivery system (ENDS) products that began Jan. 1.

She has returned this year with Legislative Bill 1296, to regulate vaping products through a vape registry and increase the tax on wholesale products to 20 percent.

Earlier this month, lawmakers advanced LB 1296 by attaching it to LB 1204 — a General Affairs Committee priority bill — and advanced the package again Friday. It is awaiting one final round of debate.

Hughes told media that in the United States, there’s a perception that products sold in retail outlets are safe. However, she said, the federal government, which is supposed to be responsible for product regulation and safety, has dropped the ball.

“If they get their stuff together … then we’re done,” Hughes said of her bill. “But they’re not doing it.”

Hughes said she had amended her legislation in part with the help of “reputable” vape shops and would have manufacturers list their chemicals, allowing easier regulation and seizure if needed. The senator said this could also prevent imports of products from outside the country, where 99.9 percent of all vaping products are produced.

Her proposal is not meant to be a moneymaker or a money sucker, she said, but to create an even “wash” between fees assessed on the vape industry and oversight costs.

“But that’s the hard part: This is brand-new territory,” Hughes said.

Under her bill, an application for certification would cost $75 for each type or model of electronic nicotine delivery system sold in Nebraska instead of $250 per system. Hughes noted that lawmakers may need to extend the debate one more time if the fiscal estimate isn’t a “wash.”

Hughes’ bill would also require in-person pickup of vape products and end mail delivery for purchases made online or over the phone.

The bill also has provisions meant to crack down on advertising targeted at minors, outlawing ads or packaging that depict a cartoon-like fictional character that mimics a character primarily aimed at entertaining minors, imitating or mimicking trademarks or trade dress of products that are or have been primarily marketed to minors, or including an image of a celebrity.