1. (1) "Actual cost" means the actual price paid by a retailer.
2. (2) "Actual cost list" means a list, prepared, maintained, and certified annually by each retailer, of the average of the actual cost of each item by stock-keeping unit of cigars and pipe tobacco over the 12 calendar months before January 1 of the year in which the remote retail sale of a cigar or pipe tobacco occurs.

3. (3) "Age verification system" means a service that:

   1. (a) is provided by an independent third party; and
   2. (b) compares information available from a commercially available database, or an aggregate of available databases, that government agencies and businesses use regularly to verify the age and identity of the personal information a consumer provides during the ordering process.

4. (4)

   1. (a) "Remote retail sale" means the sale to a consumer if:

      1. (i) the retailer is not in the physical presence of the consumer when the request for the sale is made; and

      2. (ii)

         1. (A) the retailer delivers the sold item to the consumer by common carrier, private delivery service, or other method of remote delivery; or
         2. (B) the retailer is not in the physical presence of the consumer when the consumer obtains possession of the sold item.

   2. (b) "Remote retail sale" does not include a sale by:

      1. (i) a regular dealer of tobacco products in another state to a licensed dealer in this state; or
      2. (ii) a wholesaler or distributor in this state to a regular dealer of tobacco products in another state.
5. (5) "Remote seller" means a retailer that conducts a remote retail sale of a cigar or pipe tobacco.

Enacted by Chapter 321, 2026 General Session