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Signed Into Law
Signed June 20, 2025Effective 2025-09-01
SB2024

Regular Session

Relating to a prohibition on marketing, advertising, offering for sale, or selling certain e-cigarette products; increasing a criminal penalty; creating a criminal offense.

Government Affairs & Regulatory Compliance Analysis

SB2024: Government Affairs Overview

SB 2024 fundamentally disrupts the Texas e-cigarette market by criminalizing the sale of products wholly or partially manufactured in China or designated foreign adversaries, alongside strict bans on "stealth" packaging and non-nicotine ingredients. This legislation shifts enforcement from civil regulatory agencies to local law enforcement, exposing retailers, distributors, and manufacturers to Class A Misdemeanor liability for standard inventory effective September 1, 2025.

Sen. Charles Perry·Senate Bill·Regular Session

Critical
High Cost
Effective:2025-09-01
Enforcing Agencies

County and District Attorneys • Texas Law Enforcement Agencies (Police/Sheriff)

Business Impact

Who SB2024 Affects

This legislation has regulatory implications for the following Texas businesses and organizations:

Regulatory Priority: critical

Significant regulatory changes (effective 2025-09-01). Review with your legal and compliance teams to understand implications.

🏥

Healthcare

Affected business types:

  • Hospitals
  • Healthcare systems
  • Medical practices
  • Health insurance providers
View all healthcare legislation

Key Operational Considerations

  • 1Origin Warranty: A clause explicitly warranting that *no component* of the product was manufactured in China or a designated foreign adversary.
  • 2Criminal Indemnification: Language requiring vendors to cover legal defense costs and criminal fines resulting from false claims regarding country of origin.
  • 3Buy-Back Provisions: Terms requiring vendors to repurchase inventory that becomes legally unsellable on September 1, 2025.
  • 4Personal Liability Training: Store managers and purchasing agents must be trained that violations are criminal offenses, not civil infractions. Individual employees can be arrested.

Estimated Cost Impact

highSignificant operational investment may be required.

Enforcing Agencies

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SB2024
Critical
Relating to a prohibition on marketing, advertising, offering for sale, or selling certain e-cigarette products; increasing a criminal penalty; creati...
Critical Compliance Urgency
Requires immediate attention
Cost Impact
High
Effective
2025-09-01
Enforcing Agencies
County and District AttorneysTexas Law Enforcement Agencies
Primary Author: Sen. Charles Perry
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: September 1, 2025
  • Compliance Deadline: September 1, 2025 (Hard Stop). There is no sell-through period. All non-compliant inventory must be liquidated, destroyed, or removed from the state by 11:59 PM on August 31, 2025.
  • Agency Rulemaking: While no specific state rulemaking is mandated, the definition of "foreign adversary" is tied to federal regulations (15 C.F.R. Section 791.4). Businesses must monitor federal updates to this list.

Immediate Action Plan

  • 1. Immediate Supply Chain Audit: Categorize all inventory by Country of Origin. Immediately halt purchasing for any product confirmed to be manufactured in China.
  • 2. Purge Prohibited Designs: Immediately discount and liquidate all products resembling school supplies, toys, or phones, and those with cartoon branding.
  • 3. Demand Vendor Certification: Send formal notice to all suppliers requiring sworn statements regarding the manufacturing origin of their hardware components.
  • 4. Review Insurance: Consult with your broker regarding coverage gaps for criminal allegations against the entity and its officers.
  • 5. Inventory Exit Strategy: Set a hard date (e.g., July 1, 2025) to stop selling non-compliant goods to ensure shelves are clear before the September deadline.

Operational Changes Required

Contracts

Existing supply agreements are insufficient. You must immediately amend Master Service Agreements (MSAs) with all hardware and e-liquid vendors to include:

  • Origin Warranty: A clause explicitly warranting that *no component* of the product was manufactured in China or a designated foreign adversary.
  • Criminal Indemnification: Language requiring vendors to cover legal defense costs and criminal fines resulting from false claims regarding country of origin.
  • Buy-Back Provisions: Terms requiring vendors to repurchase inventory that becomes legally unsellable on September 1, 2025.

Hiring/Training

  • Personal Liability Training: Store managers and purchasing agents must be trained that violations are criminal offenses, not civil infractions. Individual employees can be arrested.
  • Visual Inspection Protocols: Staff must be trained to identify and reject prohibited form factors (devices resembling school supplies, toys, or electronics) and prohibited imagery (cartoons) upon delivery.

Reporting & Record-Keeping

  • Certificates of Origin: You must obtain and file a Certificate of Origin for every SKU in your inventory. This document must trace manufacturing locations for both final assembly and internal components.
  • Ingredient Verification: Maintain lab reports confirming products do not contain prohibited substances (cannabinoids, kratom, kava, etc.) if the packaging is ambiguous.

Fees & Costs

  • Inventory Liquidation: Expect a high cost impact regarding the write-off of Chinese-manufactured hardware, which currently dominates the global market.
  • Legal Defense Reserves: Retainers for criminal defense counsel should be reviewed, as standard General Liability insurance policies typically exclude coverage for criminal acts.

Strategic Ambiguities & Considerations

  • "Partially Manufactured": The statute lacks a percentage threshold (de minimis rule). It is currently unclear if a single Chinese-made screw, battery, or microchip within a US-assembled device triggers the ban. Until case law or Attorney General guidance clarifies this, businesses must assume a zero-tolerance standard.
  • Enforcement Variance: Because enforcement is delegated to local police and District Attorneys rather than a centralized state agency, application of the law will vary by county. A product ignored in Austin may lead to arrests in Lubbock.

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JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.

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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Mar 6, 2025
Passed Senate
Apr 23, 2025
Passed House
May 28, 2025
Signed
Jun 20, 2025
Effective
Sep 1, 2025
TopicsHealthHealth--generalSafetyTobacco ProductsAdvertisingPackaging & Labeling Requirements
03

Senate Authors

Sen. Charles PerryRepublican · Primary Author
Coauthors (3)

House Sponsors

Rep. Jeff LeachRepublican · Primary Sponsor
Joint Sponsors
Cosponsors (1)

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

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More from Sen. Charles Perry

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Related by Topic

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Quick Reference

Frequently Asked Questions

Common questions about SB2024

Q

What does Texas SB2024 do?

SB 2024 fundamentally disrupts the Texas e-cigarette market by criminalizing the sale of products wholly or partially manufactured in China or designated foreign adversaries, alongside strict bans on "stealth" packaging and non-nicotine ingredients. This legislation shifts enforcement from civil regulatory agencies to local law enforcement, exposing retailers, distributors, and manufacturers to Class A Misdemeanor liability for standard inventory effective September 1, 2025.

Q

Who authored SB2024?

SB2024 was authored by Texas Senator Charles Perry during the Regular Session.

Q

When was SB2024 signed into law?

SB2024 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce SB2024?

SB2024 is enforced by County and District Attorneys and Texas Law Enforcement Agencies (Police/Sheriff).

Q

How significant are the changes in SB2024?

The regulatory priority for SB2024 is rated as "critical". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of SB2024?

The cost impact of SB2024 is estimated as "high". This may vary based on industry and implementation requirements.

Q

What topics does SB2024 address?

SB2024 addresses topics including health, health--general, safety, tobacco products and advertising.

Q

What are the key dates for SB2024?

Key dates for SB2024: Effective date is 2025-09-01. Consult with legal counsel regarding applicability.

Q

What are the penalties under SB2024?

SB2024 establishes the following penalties: criminal penalty of Class A Misdemeanor (Standard Texas penalty: up to $4,000 fine and/or up to 1 year in jail) for Marketing, advertising, selling, or offering for sale e-cigarette products that are: 1) Wholly or partially manufactured in China or a designated foreign adversary; 2) Disguised as school supplies, phones, toys, clothing, or cosmetics; 3) Containing cannabinoids, alcohol, kratom, kava, mushrooms, or tianeptine; or 4) Branded with cartoons or imagery appealing to minors.. Consult with legal counsel for specific applicability to your situation.

Q

Which Texas businesses are affected by SB2024?

SB2024 primarily affects healthcare providers and medical facilities. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.

Need Strategic Guidance on This Legislation?

JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.

Legislative data provided by LegiScanLast updated: January 11, 2026