Regulation of e-liquids.

Authors: Senator Carlin Yoder, Senator Patricia Miller, Senator Travis Holdman

Co-authors: Senator James Arnold, Senator John Broden, Senator Lonnie Randolph

Sponsors: Representative Kevin Mahan

Co-Sponsors: Representative Terri Jo Austin


Defines "e-liquid" as a substance that is intended to be vaporized and inhaled using a vapor pen. Requires a manufacturer of e-liquid to obtain a permit from the alcohol and tobacco commission before bottling e-liquid or selling e-liquid to retailers or distributors. Provides that the initial application for a manufacturing permit must include: (1) plans for the applicant's manufacturing facility; (2) a service agreement between the applicant and a security firm requiring the security firm to certify that the manufacturer meets certain security requirements; and (3) an application fee of $1,000. Provides that a manufacturer's permit is valid for five years and establishes requirements for permit renewal, including a $500 permit renewal application fee. Establishes manufacturing requirements, including the use of child proof caps on e-liquid containers; the performance of all mixing, bottling, and packaging activities in a "clean room"; the storage of all e-liquid ingredients in a secure area; and the maintenance of three sample bottles from each production batch for at least three years. Limits the ingredients that can be used in making e-liquid. Requires all e-liquid retailers, distributors, and manufacturers who mix, bottle, or sell e-liquid in Indiana before July 1, 2015, to: (1) sell or remove from retail all e-liquid that was manufactured before July 1, 2015; or (2) acquire a tobacco sales certificate, an e-liquid manufacturing permit, or a tobacco products distributor's license; before July 1, 2016. Provides for the suspension or revocation of a manufacturer's permit and the assessment of a civil penalty against a manufacturer for a violation of the law. Provides that a retailer who knowingly: (1) sells e-liquid to a minor; (2) sells e-liquid purchased from a manufacturer that does not have a permit; or (3) sells e-liquid that has been altered or tampered with; commits a Class C infraction. Makes other unauthorized actions involving e-liquid a Class A infraction. Authorizes a permit holder to bring a civil action against an e-liquid producer that distributes e-liquid not approved for sale in Indiana.