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H.B. 372

This document includes House Committee Amendments incorporated into the bill on Thu, Mar 7, 2013 at 11:52 AM by lerror. -->              1     

CIGARETTE, TOBACCO, AND NICOTINE AMENDMENTS

             2     
2013 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Paul Ray

             5     
Senate Sponsor: ____________

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill makes changes related to cigarettes, tobacco, and nicotine products.
             10      Highlighted Provisions:
             11          This bill:
             12          .    defines terms and amends definitions;
             13          .    amends the definition of tobacco product to include certain nicotine products and
             14      provides for the taxation of those products;
             15          .    amends criminal provisions related to cigarettes and tobacco products; and
             16          .    makes technical and conforming changes.
             17      Money Appropriated in this Bill:
             18          None
             19      Other Special Clauses:
             20          This bill takes effect on July 1, 2013.
             21      Utah Code Sections Affected:
             22      AMENDS:
             23          59-14-102, as last amended by Laws of Utah 2011, Chapter 229
             24          76-10-101, as last amended by Laws of Utah 2010, Chapter 114
             25          76-10-102, as last amended by Laws of Utah 1986, Chapter 66
             26          76-10-103, as enacted by Laws of Utah 1973, Chapter 196
             27          76-10-104, as last amended by Laws of Utah 2010, Chapter 114

             28          76-10-105, as last amended by Laws of Utah 2010, Chapter 114
             29          76-10-105.1, as last amended by Laws of Utah 2010, Chapter 114
             30          76-10-111, as last amended by Laws of Utah 2010, Chapter 114
             31     
             32      Be it enacted by the Legislature of the state of Utah:
             33          Section 1. Section 59-14-102 is amended to read:
             34           59-14-102. Definitions.
             35          As used in this chapter:
             36          (1) "Cigarette" means a roll for smoking made wholly or in part of tobacco:
             37          (a) regardless of:
             38          (i) the size of the roll;
             39          (ii) the shape of the roll; or
             40          (iii) whether the tobacco is:
             41          (A) flavored;
             42          (B) adulterated; or
             43          (C) mixed with any other ingredient; and
             44          (b) if the wrapper or cover of the roll is made of paper or any other substance or
             45      material except tobacco.
             46          (2) "Consumer" means a person that is not required:
             47          (a) under Section 59-14-201 to obtain a license under Section 59-14-202 ; or
             48          (b) under Section 59-14-301 to obtain a license under Section 59-14-202 .
             49          (3) "Counterfeit cigarette" means:
             50          (a) a cigarette that has a false manufacturing label; or
             51          (b) a package of cigarettes bearing a counterfeit tax stamp.
             52          (4) "E-cigarette" means an electronic oral device that:
             53          (a) provides a vapor of nicotine;
             54          (b) simulates smoking through its use or through inhalation of the vapor generated by
             55      the device;
             56          (c) is not approved by the United States Food and Drug Administration as an aid in
             57      quitting the use of tobacco or a nicotine product;
             58          (d) is composed of a heating element, battery, or electronic circuit; and

             59
         (e) is marketed, manufactured, distributed, or sold as:
             60          (i) an e-cigarette;
             61          (ii) an e-cigar;
             62          (iii) an e-pipe; or
             63          (iv) another electronic oral device if the electronic oral device meets the requirements
             64      of Subsections (4)(a) through (d).
             65          (5) "E-cigarette cartridge" means a container that:
             66          (a) has openings on each end;
             67          (b) serves as a liquid reservoir and mouthpiece;
             68          (c) allows the passage of:
             69          (i) liquid to an atomizer; and
             70          (ii) vapor from the atomizer to the user's mouth; and
             71          (d) contains liquid for producing vapor in an H. [ electronic cigarette ] e-cigarette .H .
             72          [(4)] (6) "Importer" means a person who imports into the United States, either directly
             73      or indirectly, a finished cigarette for sale or distribution.
             74          [(5)] (7) "Indian tribal entity" means a federally recognized Indian tribe, tribal entity, or
             75      any other person doing business as a distributor or retailer of cigarettes on tribal lands located
             76      in the state.
             77          [(6)] (8) "Little cigar" means a roll for smoking:
             78          (a) made wholly or in part of tobacco;
             79          (b) that uses an integrated cellulose acetate filter or other similar filter; and
             80          (c) that is wrapped in a substance:
             81          (i) containing tobacco; and
             82          (ii) that is not exclusively natural leaf tobacco.
             83          [(7)] (9) "Manufacturer" means a person who manufactures, fabricates, assembles,
             84      processes, or labels a finished cigarette.
             85          [(8)] (10) "Moist snuff" means tobacco that:
             86          (a) is finely:
             87          (i) cut;
             88          (ii) ground; or
             89          (iii) powdered;

             90          (b) has at least 45% moisture content, as determined by the commission by rule made
             91      in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
             92          (c) is not intended to be:
             93          (i) smoked; or
             94          (ii) placed in the nasal cavity; and
             95          (d) except for single-use pouches of loose tobacco, is not packaged, produced, sold, or
             96      distributed in single-use units, including:
             97          (i) tablets;
             98          (ii) lozenges;
             99          (iii) strips;
             100          (iv) sticks; or
             101          (v) packages containing multiple single-use units.
             102          (11) "Nicotine candy" means an item that:
             103          (a) contains:
             104          (i) nicotine; and
             105          (ii) a natural or artificial sweetener;
             106          (b) is ingested orally; and
             107          (c) is not approved by the United States Food and Drug Administration as an aid in
             108      quitting the use of tobacco or a nicotine product.
             109          (12) "Nicotine product" means:
             110          (a) H. [ an e-cigarette;
             111          (b) ] .H an e-cigarette cartridge;
             112           H. [ (c) ] (b) .H nicotine candy; or
             113           H. [ (d) ] (c) [ a ] any other .H product containing nicotine H. , except for
             113a      an e-cigarette, .H that H. [ :
             114          (i) dissolves in the mouth; and
             115          (ii) ] .H is not approved by the United States Food and Drug Administration as an aid in
             116      quitting the use of tobacco or nicotine.
             117          [(9)] (13) "Retailer" means a person that:
             118          (a) sells or distributes a cigarette to a consumer in the state; or
             119          (b) intends to sell or distribute a cigarette to a consumer in the state.
             120          [(10)] (14) "Stamp" means the indicia required to be placed on a cigarette package that

             121      evidences payment of the tax on cigarettes required by Section 59-14-205 .
             122          [(11)] (15) (a) "Tobacco product" means:
             123          (i) a product made of, or containing, tobacco[.]; or
             124          (ii) a nicotine product.
             125          (b) "Tobacco product" includes:
             126          (i) a little cigar; or
             127          (ii) moist snuff.
             128          (c) "Tobacco product" does not include a cigarette.
             129          [(12)] (16) "Tribal lands" means land held by the United States in trust for a federally
             130      recognized Indian tribe.
             131          Section 2. Section 76-10-101 is amended to read:
             132           76-10-101. Definitions.
             133          As used in this part:
             134          (1) "Cigar" means a product that contains nicotine, is intended to be burned under
             135      ordinary conditions of use, and consists of any roll of tobacco wrapped in leaf tobacco, or in
             136      any substance containing tobacco, other than any roll of tobacco that is a cigarette as described
             137      in Subsection (2).
             138          (2) "Cigarette" [means a product that contains nicotine, is intended to be burned under
             139      ordinary conditions of use, and consists of:] is as defined in Section 59-14-102 .
             140          [(a) any roll of tobacco wrapped in paper or in any substance not containing tobacco;
             141      or]
             142          [(b) any roll of tobacco wrapped in any substance containing tobacco which, because of
             143      its appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to
             144      be offered to, or purchased by, consumers as a cigarette described in Subsection (2)(a).]
             145          (3) "Electronic cigarette" [means any device, other than a cigarette or cigar, intended to
             146      deliver vapor containing nicotine into a person's respiratory system] has the same meaning as
             147      e-cigarette, as defined in Section 59-14-102 .
             148          (4) "Place of business" includes:
             149          (a) a shop;
             150          (b) a store;
             151          (c) a factory;

             152          (d) a public garage;
             153          (e) an office;
             154          (f) a theater;
             155          (g) a recreation hall;
             156          (h) a dance hall;
             157          (i) a poolroom;
             158          (j) a café;
             159          (k) a cafeteria;
             160          (l) a cabaret;
             161          (m) a restaurant;
             162          (n) a hotel;
             163          (o) a lodging house;
             164          (p) a streetcar;
             165          (q) a bus;
             166          (r) an interurban or railway passenger coach;
             167          (s) a waiting room; and
             168          (t) any other place of business.
             169          (5) "Retail tobacco specialty business" is as defined in Section 10-8-41.6 .
             170          [(5)] (6) "Smoking" [means the possession of any lighted cigar, cigarette, pipe, or other
             171      lighted smoking equipment] is as defined in Section 26-38-2 .
             172          (7) "Tobacco product" is as defined in Section 59-14-102 .
             173          Section 3. Section 76-10-102 is amended to read:
             174           76-10-102. Cigarettes and tobacco -- Advertising restrictions -- Warnings in
             175      smokeless tobacco advertisements.
             176          (1) It is a class B misdemeanor for any person to display on any billboard, streetcar
             177      sign, streetcar, bus, placard, or on any other object or place of display, any advertisement of
             178      cigarettes, cigarette papers, cigars, chewing tobacco, [or] smoking tobacco, or other tobacco
             179      product, or any disguise or substitute of either, except that a dealer in cigarettes, cigarette
             180      papers, a tobacco product, or cigars, or their substitutes, may have a sign on the front of [his]
             181      the dealer's place of business stating that [he] the dealer is a dealer in the articles[;], provided
             182      that nothing herein shall be construed to prohibit the advertising of cigarettes, cigarette papers,

             183      chewing tobacco [or], smoking tobacco, or other tobacco product, or any substitute of either, in
             184      any newspaper, magazine or periodical printed or circulating in this state.
             185          (2) Any advertisement for smokeless tobacco placed in a newspaper, magazine, or
             186      periodical published in this state must bear a warning which states: "Use of smokeless tobacco
             187      may cause oral cancer and other mouth disorders and is addictive." This warning must be in a
             188      conspicuous location and in conspicuous and legible type, in contrast with the typography,
             189      layout, and color of all other printed material in the advertisement. For purposes of this
             190      subsection, "smokeless tobacco" means any finely cut, ground, powdered, or leaf tobacco that
             191      is intended to be placed in the oral cavity or nasal passage. In the event the United States
             192      Congress passes legislation which requires warnings in advertisements of smokeless tobacco,
             193      the specific language required to be placed in advertisements by that legislation shall take
             194      precedence over this subsection.
             195          Section 4. Section 76-10-103 is amended to read:
             196           76-10-103. Permitting minors to use tobacco in place of business -- Permitting
             197      minors to enter a retail tobacco specialty business.
             198          (1) It is a class C misdemeanor for the proprietor of any place of business to knowingly
             199      permit persons under age 19 to frequent a place of business while they are using a cigarette or a
             200      tobacco product.
             201          (2) It is a class C misdemeanor for the proprietor of a retail tobacco specialty business
             202      to knowingly permit a person under age 19 to enter the retail tobacco specialty business.
             203          Section 5. Section 76-10-104 is amended to read:
             204           76-10-104. Providing a cigar, cigarette, electronic cigarette, or tobacco to a minor
             205      -- Penalties.
             206          (1) Any person who knowingly, intentionally, recklessly, or with criminal negligence
             207      provides any cigar, cigarette, electronic cigarette, or other tobacco product in any form, to any
             208      person under 19 years of age, is guilty of a class C misdemeanor on the first offense, a class B
             209      misdemeanor on the second offense, and a class A misdemeanor on subsequent offenses.
             210          (2) For purposes of this section "provides":
             211          (a) includes selling, giving, furnishing, sending, or causing to be sent; and
             212          (b) does not include the acts of the United States Postal Service or other common
             213      carrier when engaged in the business of transporting and delivering packages for others or the

             214      acts of a person, whether compensated or not, who transports or delivers a package for another
             215      person without any reason to know of the package's content.
             216          Section 6. Section 76-10-105 is amended to read:
             217           76-10-105. Buying or possessing a cigar, cigarette, electronic cigarette, or tobacco
             218      by a minor -- Penalty -- Compliance officer authority -- Juvenile court jurisdiction.
             219          (1) Any 18 year old person who buys or attempts to buy, accepts, or has in the person's
             220      possession any cigar, cigarette, electronic cigarette, or other tobacco product in any form is
             221      guilty of a class C misdemeanor and subject to:
             222          (a) a minimum fine or penalty of $60; and
             223          (b) participation in a court-approved tobacco education program, which may include a
             224      participation fee.
             225          (2) Any person under the age of 18 who buys or attempts to buy, accepts, or has in the
             226      person's possession any cigar, cigarette, electronic cigarette, or tobacco in any form is subject
             227      to the jurisdiction of the Juvenile Court and:
             228          (a) a minimum fine or penalty of $60; and
             229          (b) participation in a court-approved tobacco education program, which may include a
             230      participation fee.
             231          (3) A compliance officer appointed by a board of education under Section 53A-3-402
             232      may issue citations for violations of this section committed on school property. Cited
             233      violations shall be reported to the appropriate juvenile court.
             234          Section 7. Section 76-10-105.1 is amended to read:
             235           76-10-105.1. Requirement of direct, face-to-face sale of cigarettes and tobacco
             236      products -- Supremacy clause -- Penalties.
             237          (1) As used in this section:
             238          (a) "Cigarette tobacco" means a product that consists of loose tobacco that contains or
             239      delivers nicotine and is intended for use by a consumer in a cigarette.
             240          (b) "Pipe tobacco" means a product that consists of loose tobacco that contains or
             241      delivers nicotine and is intended to be smoked by a consumer in a pipe.
             242          (c) "Retailer" means a person who sells cigarettes, electronic cigarettes, cigars,
             243      cigarette tobacco, pipe tobacco, or smokeless tobacco to individuals for personal consumption
             244      or who operates a facility where a vending machine or a self-service display is permitted under

             245      Subsection (3)(b).
             246          (d) "Self-service display" means a display of cigarettes, electronic cigarettes, cigars,
             247      cigarette tobacco, pipe tobacco, or smokeless tobacco products to which the public has access
             248      without the intervention of a retail employee.
             249          (e) "Smokeless tobacco" means a product that consists of cut, ground, powdered, or
             250      leaf tobacco that contains nicotine and that is intended to be placed in the oral cavity.
             251          (2) (a) Except as provided in Subsection (3), a retailer may sell cigarettes, electronic
             252      cigarettes, cigars, cigarette tobacco, pipe tobacco, [and] smokeless tobacco, and other tobacco
             253      products only in a direct, face-to-face exchange between:
             254          (i) an employee of the retailer; and
             255          (ii) the purchaser.
             256          (b) Examples of methods that are not permitted include vending machines and
             257      self-service displays.
             258          (c) Subsections (2)(a) and (b) do not prohibit the use or display of locked cabinets
             259      containing cigarettes, electronic cigarettes, cigars, cigarette tobacco, pipe tobacco, [or]
             260      smokeless tobacco, or other tobacco products if the locked cabinets are accessible only to the
             261      retailer or the retailer's employees.
             262          (3) The following sales are permitted as exceptions to Subsection (2):
             263          (a) mail-order sales, if the provisions of Section 59-14-509 are met;
             264          (b) sales from vending machines, including vending machines that sell packaged,
             265      single cigarettes or cigars, and self-service displays that are located in a separate and defined
             266      area within a facility where the retailer ensures that no person younger than 19 years of age is
             267      present, or permitted to enter, at any time[, unless accompanied by a parent or legal guardian];
             268      and
             269          (c) sales [by a retailer from a retail store which derives at least 80% of its revenue from
             270      tobacco and tobacco related products and where the retailer ensures that no person younger
             271      than 19 years of age is present, or permitted to enter at any time, unless accompanied by a
             272      parent or legal guardian] from a vending machine or a self-service display, including a vending
             273      machine that sells packaged, single cigarettes or cigars, if the vending machine or self-service
             274      display is located in a retail tobacco specialty business.
             275          (4) Any ordinance, regulation, or rule adopted by the governing body of a political

             276      subdivision of the state or by a state agency that affects the sale, placement, or display of
             277      cigarettes, electronic cigarettes, cigars, cigarette tobacco, pipe tobacco, or smokeless tobacco
             278      that is not essentially identical to the provisions of this section and Section 76-10-102 is
             279      superseded.
             280          [(5) (a) A parent or legal guardian who accompanies a person younger than 19 years of
             281      age into an area described in Subsection (3)(b) or into a retail store as described in Subsection
             282      (3)(c) and permits the person younger than 19 years of age to purchase or otherwise take a
             283      cigar, cigarette, electronic cigarette, or tobacco in any form is guilty of providing tobacco as
             284      provided for in Section 76-10-104 and the penalties provided for in that section.]
             285          [(b)] (5) Nothing in this section may be construed as permitting a person to provide
             286      tobacco to a minor in violation of Section 76-10-104 .
             287          (6) Violation of Subsection (2) or (3) is a:
             288          (a) class C misdemeanor on the first offense;
             289          (b) class B misdemeanor on the second offense; and
             290          (c) class A misdemeanor on the third and all subsequent offenses.
             291          Section 8. Section 76-10-111 is amended to read:
             292           76-10-111. Prohibition of gift or free distribution of smokeless tobacco or
             293      electronic cigarettes -- Exceptions.
             294          (1) The Legislature finds that:
             295          (a) smokeless tobacco, or chewing tobacco, is harmful to the health of individuals who
             296      use those products because research indicates that they may cause mouth or oral cancers;
             297          (b) the use of smokeless tobacco among juveniles in this state is increasing rapidly;
             298          (c) the use of electronic cigarettes may lead to unhealthy behavior such as the use of
             299      tobacco products; and
             300          (d) it is necessary to restrict the gift of the products described in this Subsection (1) in
             301      the interest of the health of the citizens of this state.
             302          (2) Except as provided in Subsection (3), it is unlawful for a manufacturer, wholesaler,
             303      and retailer to give or distribute without charge any smokeless tobacco, chewing tobacco, [or]
             304      electronic cigarette, or other tobacco product in this state. Any person who violates this section
             305      is guilty of a class C misdemeanor for the first offense, and is guilty of a class B misdemeanor
             306      for any subsequent offense.

             307          (3) (a) Smokeless tobacco, chewing tobacco, [or] an electronic cigarette, or other
             308      tobacco product may be distributed to adults without charge at professional conventions where
             309      the general public is excluded.
             310          (b) Subsection (2) does not apply to a retailer, manufacturer, or distributor who gives
             311      smokeless tobacco, chewing tobacco, [or] an electronic cigarette, or other tobacco product to a
             312      person of legal age upon the person's purchase of another tobacco product or electronic
             313      cigarette.
             314          Section 9. Effective date.
             315          This bill takes effect on July 1, 2013.




Legislative Review Note
    as of 2-21-13 4:09 PM

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