February 17, 2026
Arizona House of Representatives
Commerce Committee
Arizona State Capitol
1700 West Washington Street
Phoenix, Arizona, 85007
Dear Representative,
On behalf of the 9,425 members and supporters of the Council for Citizens Against Government Waste (CCAGW) in Arizona, I urge you to reject HB 4001, which would establish a new “alternative nicotine products” (ANPs) regulatory category and place it under the jurisdiction of Arizona’s state liquor board.
The bill would also impose a series of licensing compliance obligations on businesses that wish to produce, advertise, or sell these items in Arizona. These rules would apply only to the new ANP classification and not to combustible cigarettes, resulting in an inconsistent regulatory framework that would significantly raise compliance costs for retailers.
HB 4001 would assign oversight of ANP products to Ariona State Liquor Board under Arizona Revised Statutes Title 4. Placing a subset of less harmful tobacco alternative products under liquor regulation lacks a clear policy rationale. The bill would also require any business seeking to sell ANPs in Arizona to secure a dedicated license. To qualify, retailers would need to submit their business address and tax identification number, demonstrate completion of a training program covering applicable state and federal ANP regulations. The director of the liquor board would be permitted to set application fees, and each license would be tied to a single location and would not be transferable. Additionally, the bill would introduce a separate licensing process and further conditions for companies that manufacture ANPs within the state.
By imposing special licensing, fees, and operational requirements on only one subset of nicotine products rather than all comparable products, implicitly tipping the scales in favor of the retailers and manufacturers of combustible cigarettes, this arbitrary and discriminatory legislation would impede competition and consumer choice by creating new barriers to entry for small retailers in the form of licensing, employee training mandates, and administrative fees, giving larger retailers, which can more easily absorb regulatory compliance costs than their smaller competitors, an undue competitive advantage. If adopted, HB 4001 would become effective 90 days after the legislature adjourns in April 2026.
For the above reasons, I ask you to oppose HB 4001 and any legislation that would create a licensing system targeting less harmful tobacco alternatives while requiring no equivalent licensing regime for the manufacturers and retailers of combustible cigarettes. This misguided regulatory experiment would increase bureaucracy, advantage more harmful products over less -harmful ones and impose unnecessary burdens on thousands of small businesses across Arizona.
Sincerely,
Tom Schatz
President, CCAGW