ASSEMBLY APPROPRIATIONS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 425

with committee amendments

STATE OF NEW JERSEY

DATED:  OCTOBER 22, 2026

      The Assembly Appropriations Committee reports favorably and with committee amendments Assembly Bill No. 425.

      As amended, this bill amends current law to revise the prohibition on the sale of tobacco to persons under the age of 21 and increase the penalties for certain prohibited sales of tobacco and vapor products.

      Under the amended bill, no retailer is to sell to a person under 21 years of age any “tobacco product,” which is defined to mean: any product containing, made of, or derived from tobacco or nicotine that is intended for human consumption or is likely to be consumed, whether inhaled, absorbed, or ingested by other means, including, but not limited to, a cigarette, cigar, pipe tobacco, chewing tobacco, snuff, or snus; any vapor product; and any component, part, or accessory of a product containing, made of, or derived from tobacco or nicotine or a vapor product, regardless of whether the component, part, or accessory contains tobacco or nicotine.  “Tobacco product” includes, but is not limited to, filters, rolling papers, blunt or hemp wraps, hookahs, and pipes.  “Tobacco product” does not include any drug, device, or combination product approved by the federal Food and Drug Administration pursuant to the “Federal Food, Drug, and Cosmetic Act,” 21 U.S.C. s.301 et seq.

      As amended, the bill increases fines for a violation of the above prohibition from not less than $250 to $750 for the first violation, from not less than $500 to $1,500 for the second violation, and from $1,000 to $3,000 for the third and each subsequent violation.  Five percent of the penalties recovered under the bill will be transferred to the Department of Health and will be used by the department to fund educational programs and outreach initiatives to inform the public, retailers, and minors of the dangers of vapor products and the consequences of selling or using vapor products illegally.

      The Division of Taxation in the Department of the Treasury (division) will establish a process by which retail dealers report to the division efforts on behalf of the retail dealer to comply with the above prohibition.  The division will also establish a mechanism by which an individual may anonymously report to the division a violation of the above prohibition.

COMMITTEE AMENDMENTS:

      The committee amendments:

      1) revise the procedures for transferring penalties issued under subsection c. of section 1;

      2) require, rather than permit, license revocation after a second or subsequent violation of subsection a. of section 1, and for a violation of section 2; and

      3) make technical changes to update the current statutory language in section 2.  

FISCAL IMPACT:

      The Office of Legislative Services (OLS) determines that State revenues will increase by an indeterminate amount due to a provision in the bill that allocates five percent of penalties recovered for retailer violations of the tobacco age of sale statute to the Department of Health.  Under current law, all penalties recovered are paid into the treasury of the municipality in which the violation occurred.

      The OLS lacks the informational basis to project the magnitude of State revenue increases and corresponding local revenue decreases attributable to this provision. The OLS notes that the bill requires the department to use the allocated funds for educational programs and outreach to the public and retailers concerning the dangers of illegal sales and use of vapor products.

      Municipalities will realize an indeterminate increase in revenues, in the form of increased penalties paid for violations of the statutory prohibitions on the sale of tobacco products to individuals under the age of 21.

      The Division on Taxation in the Department of the Treasury will incur additional costs, in an indeterminate amount, to establish a process by which retailers will report to the division on efforts to comply with the prohibition on tobacco product sales to individuals under the age of 21, and for the office to establish a mechanism by which an individual can anonymously report retailers who sell tobacco products to underage individuals.