South Dakota § 10-50D-8 - Direct-to-consumer shipping--Prohibition--Exceptions--Requirements--Audit of records.

§ 10-50D-8. Direct-to-consumer shipping--Prohibition--Exceptions--Requirements--Audit of records.

A person who is engaged in the business of selling or distributing nicotine products may not ship or transport, or cause to be shipped or transported, nicotine products directly to any consumer in this state, except as provided in this section or in chapter 10-50C. This section applies regardless of whether the person engaged in the business of selling or distributing nicotine products is located within or outside of this state.

A person licensed under this chapter or licensed as a distributor or wholesaler under chapter 10-50, may ship or transport, or cause to be shipped or transported, alternative nicotine products directly to any consumer in this state if:

(1)    Prior to sale of the alternative nicotine product to the purchaser, the person verifies that the purchaser is at least twenty-one years of age through a commercially available database, or aggregate of databases, that is regularly used by government and businesses for the purpose of age and identity verification, or by obtaining a copy of a valid government-issued document that provides the name, address, and date of birth of the purchaser;

(2)    Prior to shipping or sending the purchased products, the person has received payment for the sale from the purchaser by a credit card or debit card issued in the purchaser's name, or by a check that is associated with a bank account in the purchaser's name and the name matches the name of the purchaser whose age was verified under subdivision (1);

(3)    The person uses a method of mailing, shipping, or delivery that requires the signature of a person who is at least twenty-one years of age before the package is released to the purchaser;

(4)    The person holds a South Dakota sales and use tax license issued by the Department of Revenue;

(5)    The person conspicuously labels each package to be shipped or transported, indicating the package contains an alternative nicotine product and that the signature of an individual who is at least twenty-one years of age is required before the package is released to the purchaser;

(6)    The person maintains a record of the name, address, date of birth, and telephone number or email, of the purchaser;

(7)    The person remits all applicable taxes for the alternative nicotine product; and

(8)    The alternative nicotine product is not being provided for purposes of resale to consumer.

A person shipping or transporting an alternative nicotine product shall allow the Department of Revenue to conduct an audit of the records pertaining to shipping or transporting an alternative nicotine product, including the records used to verify the age of the purchaser. The person shall provide copies of the records to the department upon request.

Source: SL 2026, ch 53, § 10.