Relating to a prohibition on marketing, advertising, offering for sale, or selling certain e-cigarette products; increasing a criminal penalty; creating a criminal offense.
CriticalImmediate action required
High Cost
Effective:2025-09-01
Enforcing Agencies
Texas Law Enforcement Agencies (Police/Sheriff) • County and District Attorneys
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.
Need Help Understanding Implementation?
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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.
In recent years, vape pen companies have continued to deliberately target minors. The legislature has banned marketing vape pens to minors and selling vape pens to minors, but some of these companies continue to pursue customers under the age of 21. Bad actors have now begun disguising vape pens as other products, like school supplies and office supplies, in a deliberate attempt to help minors hide that they are using a vape pen. There is zero need for a person who is legally allowed to purchase a vape pen to want to disguise that the product is a vape pen.
The proposed legislation seeks to ban vape pens that are disguised as other products, including school supplies, office supplies, smart phones or smart watches, headphones, clothing, backpacks, cosmetics, and toys. Additionally, the bill bans vape pens that were manufactured in China. Unfortunately, Chinese vape pen manufacturers routinely produce products that are dangerous to human health, and many times customers do not know what substances are in vape pens that were manufactured in China.
As proposed, S.B. 2024 amends current law relating to a prohibition on marketing, advertising, or selling certain e-cigarette products and creates a criminal offense.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 161.0876(b), Health and Safety Code, as follows:
(b) Provides that a person commits an offense if the person markets, advertises, sells, or causes to be sold an e-cigarette product:
(1) creates this subdivision from existing text and makes nonsubstantive changes;
(2) in a product shape or design disguised to appear as an alternative product, including a product in the shape or design of certain objects; or
(3) that was manufactured in China.
Makes a nonsubstantive change to this subsection.
SECTION 2. Makes application of this Act prospective.
Honorable Bryan Hughes, Chair, Senate Committee on State Affairs
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
SB2024 by Perry (Relating to a prohibition on marketing, advertising, or selling certain e-cigarette products; creating a criminal offense.), As Introduced
The bill would make the sale or marketing of certain e-cigarette related products a Class B misdemeanor. As a result, fine revenue could increase. However, the amount of any increased revenue cannot be determined.
The bill would make it a Class B misdemeanor to market, advertise, or sell e-cigarettes manufactured in China or that come shaped or designed to appear as an alternative product, such as office supplies or smart phones.
The Office of Court Administration is unable to project the change in case volume and associated costs that would result from implementing the provisions of the bill.
Although the fines resulting from the additional Class B misdemeanors could lead to increased revenue, the amount is unknown.
It is assumed that any impact on state correctional populations or on the demand for state correctional resources would not be significant.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
It is assumed that any fiscal impact to units of local government associated with enforcement, prosecution, supervision, or confinement would not be significant.
Source Agencies:
212 Office of Court Administration, Texas Judicial Council, 304 Comptroller of Public Accounts
LBB Staff:
JMc, WP, SD, BRI
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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. Implementation Timeline Effective Date: September 1, 2025 Compliance Deadline: September 1, 2025 (Hard Stop).
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 Texas Law Enforcement Agencies (Police/Sheriff) and County and District Attorneys.
Q
How urgent is compliance with SB2024?
The compliance urgency for SB2024 is rated as "critical". Businesses and organizations should review the requirements and timeline to ensure timely compliance.
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.
Legislative data provided by LegiScanLast updated: November 25, 2025
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