Alabama and Alternative Nicotine Regulation
Vape Vending Machines in Alabama: Laws and Licensing
In Alabama, the sale and distribution of electronic nicotine delivery systems (ENDS) and other tobacco products through vending machines is subject to a range of regulations designed to ensure public health and safety. These laws govern everything from where vending machines can be located to the requirements for permits and taxes. In this page, we’ll break down the key rules, licensing requirements, and upcoming legislative changes that vending machine operators in Alabama must be aware of to remain compliant. Whether you're a business owner, potential operator, or simply interested in the regulations, this guide will help clarify the current landscape for vape and tobacco vending machines in the state.
Distribution Restrictions
No electronic nicotine delivery system shall be distributed by use of a vending machine unless:
- The vending machine is located in an area in which persons under the age of 21 are not permitted access; or
- The products are distributed by a device that requires the permit holder or an employee of the permit holder to control the distribution of the product.
– Al. Code. Section 28-11-6.1
Permit Requirement
Any person who maintains an electronic nicotine delivery system vending machine on his premises must first obtain a permit from the Board of Health for each machine at such location.
– Al. Code. Section 28-11-7(b)
Location-Specific Validity
The permit is valid only for the location specified in the permit application.
– Al. Code. Section 28-11-7(c)
Non-transferability and Renewal
The permit is not transferable or assignable and must be renewed annually.
– Al. Code. Section 28-11-7(d)
Visibility of Revenue Stamps
Each vending machine vending tobacco products of any kind shall have a transparent front window, or windows, through which the Alabama revenue stamps required by Section 40-25-2 may be seen without the necessity of opening or unlocking the vending machine.
– Al. Code. Section 40-12-176
Combined Licensing Procedures
The Board of Health is authorized to adopt procedures for the issuance and renewal of permits which combine tobacco permit procedures with procedures for licensing the sale of alcoholic beverages.
– Al. Code. Section 28-11-7(e)
Original Packaging Requirement
No tobacco product, except cigars, can be distributed unless in an original factory-wrapped container.
– Al. Code. Section 28-11-6
Vending Machines in General
Annual Privilege License
Anyone operating a vending machine in Alabama must pay an annual privilege license based on the total sales during the preceding year.
– Al. Code. Section 40-12-176 (No separate county license is required.)
License Owner Information
The name and address of the vending machine license owner must be conspicuously posted on each vending machine.
– Al. Code. Section 40-12-176
Local Registration Requirements
Certain vending machines (including those selling vapor products) must be registered with the local health department. Additional city, county, and state vending license requirements may apply – check with your local county probate office or revenue commissioner’s office.
Taxes and Additional Rules and Regulations
Excise Tax
Vapor products currently are not subject to any excise tax; however, ordinary sales tax rates apply to sales of vapor products in Alabama.
Sales Tax Reporting
The retail operator of the vending machine must report and pay sales tax on the operator’s total gross receipts from sales through vending machines without any deduction for commissions or rental charges paid to a person on whose property the machines are located.
– Al. Code. Section 60-760
(Sales tax permits are obtained through the Alabama Department of Revenue.)
Child-Resistant Packaging
Liquid nicotine containers must be sold in child-resistant packaging.
– Al. Code. Section 28-11-18(a)
New Law Proposes Statewide Permit Requirements for Tobacco Vending Machines
A new legislative measure is under consideration that could significantly impact the operation of tobacco vending machines across Alabama and potentially influence similar regulations nationwide. House Bill 8, introduced on February 4, 2025, aims to establish a mandatory permitting system for vending machines that dispense tobacco products, electronic nicotine delivery systems (ENDS), e-liquids, and other alternative nicotine products.
Key Provisions of House Bill 8
If passed, the law would require all businesses operating tobacco vending machines to obtain a permit for each individual machine. These permits would need to be visibly displayed on the machine and renewed annually. The bill also introduces a non-transferable clause, meaning a permit applies strictly to the specific machine at a designated location. However, if a business location is sold or transferred, the new owner can apply for a permit transfer for a $50 fee, with a 30-day deadline to submit their application.
Public Health and Business Considerations
Supporters of the bill argue that it is a necessary step to enhance public health efforts by reducing the accessibility of tobacco products, especially for minors. By adding another layer of regulatory oversight, proponents believe the measure will help prevent underage tobacco use and ensure compliance with existing laws.
On the other hand, small business owners have raised concerns about the potential financial burden of the permitting process. For vending machine operators, the added costs and administrative hurdles could impact profitability and discourage new entrants from entering the market.
A Growing National Trend?
Alabama’s move to regulate tobacco vending machines follows a broader national trend of tightening restrictions on nicotine product sales. While federal laws already impose strict age-verification requirements for in-person and online sales, vending machines present a unique challenge in enforcement. If successful, House Bill 8 could serve as a model for other states considering similar regulations.
What Comes Next?
The bill is now under review, with committee discussions and potential amendments on the horizon. Lawmakers, business owners, and public health officials will be closely watching the debate as it unfolds, weighing the economic implications against the potential health benefits.
If passed, House Bill 8 could redefine the landscape for tobacco vending machines in Alabama and beyond, setting a precedent for stricter oversight and regulation across the country.
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