Texas will put Senate Bill 2024 into effect on September 1, 2025, a draconian new law that greatly restricts advertising, promotion, and sale of e-cigarettes. Filed by Senator Perry and co-filed by Representative Leach, the bill aims to keep children off vaping and enhance public health but would in effect annihilate the vaping industry in Texas due to its sweeping bans.
Key Provisions of S.B. No. 2024
S.B. No. 2024 amends the Texas Health and Safety Code to expand the definition of e-cigarettes and strictly prohibit their marketing and sale. The key points which threaten the sustainability of the vaping industry are as follows:
Expanded Definition of E-Cigarette
Section 161.081(1-a)(A) currently defines an “e-cigarette” as:
- Any product (e.g., e-cigarettes) using a mechanical heating device, battery, or circuit to aerosolize or vaporize nicotine or other chemicals for inhalation.
- Any liquid or solid edible aerosolized or vaporized by such products, with or without nicotine.
This category captures nearly all vaping products, significantly broadening regulation reach.
Draconian Restrictions on E-Cigarette Products
Section 161.0876 defines an “e-cigarette product” as any substance that is to be used in an e-cigarette, with or without nicotine. The bill prohibits the marketing, advertisement, sale, or inducing the sale of products that:
Use Containers Appealing to Minors:
- feature cartoon characters parodying ones used for products appealing to minors.
- parody trade dress or trademarks of products appealing to minors.
- feature symbols commonly placed on youth products.
- feature celebrity names or faces.
- parody food products like candy or juice.
Mimic Everyday Objects:
- Wired to look like school supplies (e.g., highlighters, pens), smart devices or their cases, backpacks, headphones, clothes, makeup (e.g., lipstick), or toys.
Originate from China:
- Ban all e-cigarette products produced in China, the largest vape supplier in the world.
Contain Certain Substances:
- Contain cannabinoids, alcohol, kratom, kava, mushrooms, or byproducts.
These bans target a broad swath of the vaping market, from product form to supply chains. The bans prohibit e-cigarettes that mimic everyday objects, are manufactured in China, or contain certain substances.
Devastating Blow to the Texas Vape Business
S.B. No. 2024’s broad bans would effectively disassemble the Texas vape business:
- Popular Product Loss: Almost all e-cigarette products rely on fashionable aesthetics or flavor profiles (e.g., fruit or candy-like) to become popular. Banning these removes a significant portion of the product category from the business.
- Supply Chain Disruption: The prohibition on goods produced in China is particularly crippling, as China is the global leader in the production of vapes. This prohibition has the potential to cause severe supply shortages, increasing prices and limiting availability.
- Criminal Penalties: Being a criminal offense, this deters sellers and manufacturers from continued business in Texas due to legal risk.
- Market Contraction: Small companies, vape stores, and distributors would be driven out of business since the provisions in the bill make it virtually impossible to sell or market compliant products profitably.
Legal and Practical Considerations
The law only applies to offenses on or after September 1, 2025, and earlier offenses are addressed under existing statutes. However, the lead time is of scant advantage to business, which must recreate product lines, advertising, and supply chains to comply with the provisions—or exit the business.
A Market on the Brink
While S.B. No. 2024 aims to save children and public health, its broad prohibitions may render the Texas e-vapor industry commercially unviable. The banning of Chinese products alone can ruin supply chains, and design and marketing bans eliminate the majority of consumer-preferred products. Industry operators have a bleak choice: adapt to a significantly restricted market or leave Texas.
For vaping companies, the future looks dark. Compliance will involve significant investment in new products and supply lines without guarantees of consumer demand under the new regime. For consumers, options will be limited, potentially driving sales to unregulated black markets.
What’s Next?
With the effective date approaching, Texas’s vape industry prepares for a monumental change. Companies have to move quickly to determine compliance or consider relocation to more favorable states. The legislation can reach its public health objectives but potentially destroy a legitimate business in the process. Stakeholders need to seek advice from lawyers and keep up with developments to get through this tough terrain.
