Minnesota Vape Laws, Licensing, and Compliance

In Minnesota, the sale of vape products, including electronic delivery devices, is subject to comprehensive regulations aimed at controlling accessibility, preventing underage use, and ensuring compliance with both state and federal laws. This guide provides an in-depth overview of current laws, pending legislation, licensing procedures, taxation, and lobbying efforts related to flavored vapes and vending machines in Minnesota.

1. Licensing Requirements

To legally sell tobacco products, tobacco-related devices, or electronic delivery devices in Minnesota, businesses must obtain the appropriate licenses:

  • Retailers: According to Minnesota Statutes Section 461.12, Subdivision 1, every person who sells tobacco, tobacco-related devices, or electronic delivery devices, including through vending machines, must obtain a license from the city or county in which the business is located. If a city or town does not issue such licenses, the county board is responsible for licensing within unorganized territories. Local municipalities may have varying application processes, so it is critical to consult local government authorities for specific requirements. ( Minnesota Statutes, sec. 461.12, subd. 1 )

  • Distributors and Subjobbers: Distributors and subjobbers are required to obtain a license from the Minnesota Department of Revenue. This applies to those involved in the wholesale distribution of tobacco or nicotine-containing products, ensuring statewide oversight. ( Minnesota Department of Revenue )

2. Restrictions on Vending Machines

Minnesota law imposes strict limitations on the sale of tobacco and vape products through vending machines:

  • General Prohibition: According to Minnesota Statutes Section 461.18, Subdivision 2, vending machines that dispense tobacco, electronic delivery devices, or nicotine products are generally prohibited. This is aimed at restricting youth access to tobacco products.

  • Exceptions: Vending machines are only allowed in facilities that are entirely inaccessible to individuals under 21 years of age. This includes adult-only venues, such as certain bars and private clubs, to ensure compliance with age restrictions. Violations of this provision can result in fines or license suspension. ( Minnesota Statutes, sec. 461.18, subd. 2 )

3. Age Restrictions

Minnesota follows the federal Tobacco 21 law, which mandates that the sale of tobacco products, including electronic delivery devices, is prohibited to individuals under 21 years of age. Retailers are required to implement age verification measures, such as requesting government-issued identification, to prevent sales to underage individuals. Failure to comply with these regulations can lead to fines, license suspension, or revocation. ( Minnesota Statutes, sec. 609.685, subd. 1a )

4. Placement and Accessibility

To further prevent underage access, Minnesota enforces specific placement and accessibility rules:

  • Self-Service Displays: As per Minnesota Statutes Section 461.18, Subdivision 1, self-service displays of electronic delivery devices are restricted to adult-only, tobacco-only businesses. Products must not be openly accessible to the public without the intervention of a store employee, unless they are located in establishments that are completely inaccessible to individuals under 21 years old. This regulation helps restrict casual access to these products and ensures that only those of legal age can purchase them. ( Minnesota Statutes, sec. 461.18, subd. 1 )

5. Compliance and Enforcement

Retailers must adhere to several compliance measures to ensure they are following Minnesota's tobacco control laws:

  • Annual Compliance Checks: According to Minnesota Statutes Section 461.12, Subdivisions 2 and 3, retailers must undergo annual compliance checks to verify adherence to age restrictions and other regulations. Local law enforcement and public health agencies conduct these checks to ensure businesses comply with the rules. Violations may lead to penalties, including fines, mandatory training, and potential suspension or revocation of retail licenses. ( Minnesota Statutes, sec. 461.12, subd. 2-3 )

6. Taxation

Minnesota imposes specific taxes on tobacco and vape products, which include both excise and sales taxes:

  • Excise Tax: E-cigarettes and e-juice containing nicotine are considered "tobacco products" under Minnesota law and are subject to a 95% excise tax on the wholesale cost. This high tax rate aims to deter youth usage and reduce overall consumption by increasing the cost of these products. ( Minnesota Department of Revenue )

  • Sales Tax: In addition to the excise tax, a sales tax applies to vape products sold in Minnesota. Sales through vending machines, such as prepared food, soft drinks, candy, and dietary supplements, are also taxable. Retailers must ensure proper tax collection and remittance. ( Minnesota Department of Revenue )

7. Pending Legislation and Lobbying Efforts

Minnesota has seen significant legislative activity concerning flavored tobacco products, which have been the subject of ongoing debates and lobbying efforts:

  • Proposed Ban on Flavored Tobacco: In recent legislative sessions, Minnesota lawmakers have introduced bills to ban the sale of flavored tobacco products, including menthol cigarettes and flavored e-cigarettes. These measures are intended to reduce youth appeal, as flavored products are known to attract younger users. ( Minnesota House of Representatives )

  • Attorney General's Actions: In August 2024, Minnesota Attorney General Keith Ellison called on tobacco distributors and retailers to stop the sale of unauthorized flavored tobacco products. The Attorney General highlighted the risks these products pose to young people and warned of potential legal consequences for non-compliance. ( Minnesota Attorney General's Office )

  • Local Ordinances: Approximately 30 local jurisdictions in Minnesota have enacted restrictions on flavored tobacco products. These ordinances often include bans on menthol flavors and are actively enforced. The Public Health Law Center has been involved in supporting these local initiatives, which have withstood legal challenges from the tobacco industry. ( Public Health Law Center )

8. Obtaining Licenses

To obtain the necessary licenses for selling tobacco and vape products, follow these steps:

  • Retailers: Contact your local city or county licensing authority to apply for a tobacco retailer's license. Ensure you meet all zoning requirements and are compliant with any local ordinances that may impose additional restrictions on sales or advertising.

  • Distributors and Subjobbers: Apply through the Minnesota Department of Revenue for a distributor or subjobber license. The process involves completing specific forms, providing business details, and adhering to Minnesota’s regulations regarding tobacco distribution. ( Minnesota Department of Revenue )

9. Additional Resources and Compliance Tips

For further information and assistance in ensuring compliance with Minnesota’s vaping laws, consider these resources:

  • Minnesota Department of Revenue: Offers guidance on licensing, taxation, and compliance requirements for tobacco products. ( Minnesota Department of Revenue )

  • Public Health Law Center: Provides resources on tobacco control laws, regulatory updates, and best practices for retailers and distributors. ( Public Health Law Center )

  • Minnesota Department of Health: Keeps retailers informed about public health guidelines, particularly concerning the impact of tobacco use on youth. ( Minnesota Department of Health )

Staying informed about current laws and pending legislation is crucial for compliance and responsible business operations in Minnesota's evolving regulatory environment.

Works Cited

  1. **Minnesota Statutes, Chapter 461, Section 461.12, Subdivisions 1-3. Revisor of Statutes. ** https://www.revisor.mn.gov/statutes/cite/461.12

  2. **Minnesota Statutes, Chapter 461, Section 461.18, Subdivisions 1-2. Revisor of Statutes. ** https://www.revisor.mn.gov/statutes/cite/461.18

  3. **Minnesota Statutes, Chapter 609, Section 609.685, Subdivision 1a. Revisor of Statutes. ** https://www.revisor.mn.gov/statutes/cite/609.685

  4. **Minnesota Department of Revenue. "Cigarette and Tobacco Licensing Information." ** https://www.revenue.state.mn.us/cigarette-and-tobacco-licensing-information

  5. **Minnesota House of Representatives. "Proposed Ban on Flavored Tobacco." ** https://www.house.mn.gov/sessiondaily/Story/18127

  6. **Minnesota Attorney General's Office. "Attorney General Ellison Press Release on Vaping Products." ** https://www.ag.state.mn.us/Office/Communications/2024/08/29_VapingProducts.asp

  7. **Public Health Law Center. "Flavors on Trial: Minnesota Local Ordinances." ** https://www.publichealthlawcenter.org/sites/default/files/inline-files/MN-Flavors-on-Trial-FAQ.pdf

  8. **Minnesota Department of Health. "E-Cigarettes and Youth Tobacco Use." ** https://www.health.state.mn.us/communities/to bacco/ecigarettes/index.html