HB 5437 “Vape Safety Act” advances in House committee, proposing statewide licensing for vape shops

Key Takeaways

• House Health and Human Resources Committee advanced HB 5437 on Monday afternoon and recommended it to the full House; Judiciary is next
• Specialty shops would need ABCA licenses with thorough criminal background checks and annual fees
• Vape/smoke shops defined by at least 33% floor space devoted to covered products; no part may be used as a residence
• Annual fee proposed at $1,200 (up from $100); unlicensed operation could bring up to a $10,000 fine and up to one year in jail
• Vapor Product Directory proposed with FDA authorization/PMTA criteria (July 1 start), public monthly updates from Sept. 1, 21-day inventory clearance after removal, and $100-per-day-per-product civil penalties for unlisted sales

2Firsts, Feb 26 2026 – 

According to The Inter-Mountain, a bill sponsored by Del. David McCormick (David McCormick), aimed at curbing the expansion of businesses pushing vape and e-cigarette products, advanced through the House Health and Human Resources Committee.

The report said the House Health Committee recommended a committee substitute for House Bill 5437 (HB 5437), the “Vape Safety Act,” to the full House. The bill’s next stop is the House Judiciary Committee.

HB 5437 would require all specialty shops selling tobacco, tobacco-derived products, alternative nicotine, or vapor products and accessories to obtain a state license from the Alcohol Beverage Control Administration (ABCA), which includes thorough criminal background checks and annual fees, the report said.

It specifically targets vape and smoke shops, defined as any retailer that devotes at least 33% of its floor space to these products. No part of a vape or smoke shop could be used as a “residence, dwelling place, or location for human habitation,” the report said.

McCormick said the bill’s purpose is to regulate an industry segment he described as “virtually unregulated and virtually untaxed,” and he made claims in an interview about “bad actors,” including assertions about legal status, living in shops, and sales and marketing to underage children. He also said there are “many legitimate and above-board shops,” and said the measure targets those selling and marketing to underage customers while putting “guardrails” on a largely unregulated business segment.

The report said the bill would require vape and smoke shop owners to be U.S. citizens. Background screenings would disqualify an owner from being licensed if convicted of perjury, false swearing, or crimes punishable by more than one year of imprisonment. Licensees would be required to identify every person who has “control of the applicant,” including corporate parent companies and key personnel, and licenses would be non-transferable.

Annual fees would be $1,200 for vape and smoke shops—up from $100—with fees for partial years and reactivation, the report said. Unlicensed operators could face a misdemeanor charge carrying a fine of up to $10,000 and up to one year in jail.

McCormick said the money would be split 50-50 between the Attorney General’s Office and the ABCA to help fund increased enforcement and testing costs, and said the bill borrows Limited Video Lottery (LVL) hotspot licensing regulations for vape shops. The report said the bill includes civil and criminal penalties and establishes a process for routine inspections.

HB 5437 would also establish the Vapor Product Directory, jointly managed by the State Tax Commissioner and the Alcohol Beverage Control Commissioner. Beginning July 1, manufacturers must certify their products have received marketing authorization through the U.S. Food and Drug Administration (FDA), or that the product was marketed as of Aug. 8, 2016, and a premarket tobacco product application (PMTA) was submitted by Sept. 9, 2020, and remains under review.

McCormick said the registry is essentially a list of vape products approved or pending approval from the FDA, and said the FDA has been slow, leaving many PMTAs pending; he said a pending PMTA would be acceptable for listing.

The report said the directory must be public and updated monthly starting Sept. 1. If a product is removed, retailers and wholesalers have 21 days to clear inventory; after that, the products are considered contraband and subject to seizure and destruction. Retailers, wholesalers, or manufacturers selling unlisted products face a civil penalty of $100 per day, per product.

The bill also includes stricter labeling requirements, including warnings about harmful effects, the legal purchase age, and full ingredient disclosure in descending order by weight. McCormick said marketing to kids with items resembling cereal and candy and certain flavours are addressed in the bill and would not be legal. He also said he expects that eliminating bad actors and implementing licensing regulations would cause many locations to cease operating, and argued that compliant businesses are not selling to underage kids.

Image source: the intermountain