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Second Substitute H.B. 372

This document includes House Floor Amendments incorporated into the bill on Mon, Mar 11, 2013 at 7:19 PM by jeyring. -->

Representative Paul Ray proposes the following substitute bill:


             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          .    addresses the regulation of cigarettes, tobacco, and nicotine products;
             16          .    amends criminal provisions related to cigarettes and tobacco products; and
             17          .    makes technical and conforming changes.
             18      Money Appropriated in this Bill:
             19          None
             20      Other Special Clauses:
             21          This bill takes effect on July 1, 2013.
             22      Utah Code Sections Affected:
             23      AMENDS:
             24          10-8-41.6, as enacted by Laws of Utah 2012, Chapter 154
             25          17-50-333, as enacted by Laws of Utah 2012, Chapter 154


             26          26-42-102, as enacted by Laws of Utah 1998, Chapter 319
             27          59-14-102, as last amended by Laws of Utah 2011, Chapter 229
             28          76-10-101, as last amended by Laws of Utah 2010, Chapter 114
             29          76-10-102, as last amended by Laws of Utah 1986, Chapter 66
             30          76-10-103, as enacted by Laws of Utah 1973, Chapter 196
             31          76-10-104, as last amended by Laws of Utah 2010, Chapter 114
             32          76-10-105, as last amended by Laws of Utah 2010, Chapter 114
             33          76-10-105.1, as last amended by Laws of Utah 2010, Chapter 114
             34          76-10-111, as last amended by Laws of Utah 2010, Chapter 114
             35     
             36      Be it enacted by the Legislature of the state of Utah:
             37          Section 1. Section 10-8-41.6 is amended to read:
             38           10-8-41.6. Regulation of retail tobacco specialty business.
             39          (1) As used in this section:
             40          (a) "Community location" means:
             41          (i) a public or private kindergarten, elementary, middle, junior high, or high school;
             42          (ii) a licensed child-care facility or preschool;
             43          (iii) a trade or technical school;
             44          (iv) a church;
             45          (v) a public library;
             46          (vi) a public playground;
             47          (vii) a public park;
             48          (viii) a youth center or other space used primarily for youth oriented activities;
             49          (ix) a public recreational facility; or
             50          (x) a public arcade.
             51          (b) "Nicotine product" is as defined in Section 76-10-101 .
             52          [(b)] (c) "Retail tobacco specialty business" means a commercial establishment in
             53      which:
             54          (i) the sale of tobacco products accounts for more than 35% of the total annual gross
             55      receipts for the establishment;
             56          (ii) food and beverage products, excluding gasoline sales, is less than 45% of the total


             57      annual gross receipts for the establishment; and
             58          (iii) the establishment is not licensed as a pharmacy under Title 58, Chapter 17b,
             59      Pharmacy Practice Act.
             60          [(c)] (d) "Tobacco product" means:
             61          (i) any cigar, cigarette, or electronic cigarette as defined in Section 76-10-101 ;
             62          (ii) a tobacco product as defined in Section 59-14-102 , including:
             63          (A) chewing tobacco; or
             64          (B) any substitute for a tobacco product, including flavoring or additives to tobacco;
             65      [and]
             66          (iii) tobacco paraphernalia as defined in Section 76-10-104.1 [.]; and
             67          (v) a nicotine product.
             68          (2) The regulation of a retail tobacco specialty business is an exercise of the police
             69      powers of the state, and through delegation, to other governmental entities.
             70          (3) (a) Except as provided in Subsection (7), and beginning July 1, 2012, a
             71      municipality shall require an entity to be licensed as a retail tobacco specialty business to
             72      conduct business as a retail tobacco specialty business in a municipality.
             73          (b) A municipality may issue a retail tobacco specialty business license to an entity if
             74      the entity complies with the provisions of Subsection (5).
             75          (4) Except as provided in Subsection (7), and beginning July 1, 2012, a business entity
             76      that conducts a retail tobacco specialty business in a municipality shall be licensed by the
             77      municipality as a retail tobacco specialty business.
             78          (5) (a) A municipality may not issue a license to a retail tobacco specialty business if it
             79      is located within:
             80          (i) 1,000 feet of a community location;
             81          (ii) 600 feet of another retail tobacco specialty business; or
             82          (iii) 600 feet from property used or zoned for:
             83          (A) agriculture use; or
             84          (B) residential use.
             85          (b) For purposes of Subsection (5)(a), the proximity requirements shall be measured in
             86      a straight line from the nearest entrance of the retail tobacco specialty business to the nearest
             87      property boundary of the community location, or agricultural or residential use, without regard


             88      to intervening structures or zoning districts.
             89          (6) (a) Nothing in this section:
             90          (i) requires a municipality to issue a business license to a retail tobacco specialty
             91      business; or
             92          (ii) prohibits a municipality from adopting more restrictive requirements on a tobacco
             93      specialty business than provided for in this section.
             94          (b) A municipality may revoke a business license issued under this section:
             95          (i) if a licensee engages in a pattern of unlawful activity under Title 76, Chapter 10,
             96      Part 16, Pattern of Unlawful Activity Act;
             97          (ii) if a licensee violates the regulations restricting the sale and distribution of
             98      cigarettes and smokeless tobacco to protect children and adolescents issued by the United
             99      States Food and Drug Administration, 21 C.F.R. Part 1140; or
             100          (iii) under other provisions of state law or local ordinance.
             101          (7) (a) In accordance with Subsection (7)(b), a retail tobacco specialty business that has
             102      a business license and is operating lawfully in a municipality on or before May 8, 2012, is
             103      exempt from Subsections (4) and (5).
             104          (b) A retail tobacco specialty business may maintain an exemption under Subsection
             105      (7)(a) if:
             106          (i) the business license is renewed continuously without relapse or permanent
             107      revocation;
             108          (ii) the retail tobacco specialty business is not closed for business or otherwise
             109      suspends the sale of tobacco products for more than 60 consecutive days;
             110          (iii) the retail tobacco specialty business does not substantially change the business
             111      premises or its business operation; and
             112          (iv) the retail tobacco specialty business maintains the right to operate under the terms
             113      of other applicable laws, including zoning ordinances, building codes, and the business license
             114      issued prior to May 8, 2012.
             115          Section 2. Section 17-50-333 is amended to read:
             116           17-50-333. Regulation of retail tobacco specialty business.
             117          (1) As used in this section:
             118          (a) "Community location" means:


             119          (i) a public or private kindergarten, elementary, middle, junior high, or high school;
             120          (ii) a licensed child-care facility or preschool;
             121          (iii) a trade or technical school;
             122          (iv) a church;
             123          (v) a public library;
             124          (vi) a public playground;
             125          (vii) a public park;
             126          (viii) a youth center or other space used primarily for youth oriented activities;
             127          (ix) a public recreational facility; or
             128          (x) a public arcade.
             129          (b) "Nicotine product" is as defined in Section 76-10-101 .
             130          [(b)] (c) "Retail tobacco specialty business" means a commercial establishment in
             131      which:
             132          (i) the sale of tobacco products accounts for more than 35% of the total annual gross
             133      receipts for the establishment;
             134          (ii) food and beverage products, excluding gasoline sales, is less than 45% of the total
             135      annual gross receipts for the establishment; and
             136          (iii) the establishment is not licensed as a pharmacy under Title 58, Chapter 17b,
             137      Pharmacy Practice Act.
             138          [(c)] (d) "Tobacco product" means:
             139          (i) any cigar, cigarette, or electronic cigarette as defined in Section 76-10-101 ;
             140          (ii) a tobacco product as defined in Section 59-14-102 , including:
             141          (A) chewing tobacco; or
             142          (B) any substitute for a tobacco product, including flavoring or additives to tobacco;
             143      [and]
             144          (iii) tobacco paraphernalia as defined in Section 76-10-104.1 [.]; and
             145          (iv) a nicotine product H. derived from tobacco .H .
             146          (2) The regulation of a retail tobacco specialty business is an exercise of the police
             147      powers of the state, and through delegation, to other governmental entities.
             148          (3) (a) Except as provided in Subsection (7), and beginning July 1, 2012, a county shall
             149      require an entity to be licensed as a retail tobacco specialty business to conduct business as a


             150      retail tobacco specialty business in a county.
             151          (b) A county may issue a retail tobacco specialty business license to an entity if the
             152      entity complies with the provisions of Subsection (5).
             153          (4) Except as provided in Subsection (7), and beginning July 1, 2012, a business entity
             154      that conducts a retail tobacco specialty business in a county shall be licensed by the county as a
             155      retail tobacco specialty business.
             156          (5) (a) A county may not issue a license to a retail tobacco specialty business if it is
             157      located within:
             158          (i) 1,000 feet of a community location;
             159          (ii) 600 feet of another retail tobacco specialty business; or
             160          (iii) 600 feet from property used or zoned for:
             161          (A) agriculture use; or
             162          (B) residential use.
             163          (b) For purposes of Subsection (5)(a), the proximity requirements shall be measured in
             164      a straight line from the nearest entrance of the retail tobacco specialty business to the nearest
             165      property boundary of the community location, or agricultural or residential use, without regard
             166      to intervening structures or zoning districts.
             167          (6) (a) Nothing in this section:
             168          (i) requires a county to issue a business license to a retail tobacco specialty business; or
             169          (ii) prohibits a county from adopting more restrictive requirements on a tobacco
             170      specialty business than provided for in this section.
             171          (b) A county may revoke a business license issued under this section:
             172          (i) if a licensee engages in a pattern of unlawful activity under Title 76, Chapter 10,
             173      Part 16, Pattern of Unlawful Activity Act;
             174          (ii) if a licensee violates the regulations restricting the sale and distribution of
             175      cigarettes and smokeless tobacco to protect children and adolescents issued by the United
             176      States Food and Drug Administration, 21 C.F.R. Part 1140; or
             177          (iii) under other provisions of state law or local ordinance.
             178          (7) (a) In accordance with Subsection (7)(b), a retail tobacco specialty business that has
             179      a business license and is operating lawfully in a county on or before May 8, 2012, is exempt
             180      from Subsections (4) and (5).


             181          (b) A retail tobacco specialty business may maintain an exemption under Subsection
             182      (7)(a) if:
             183          (i) the business license is renewed continuously without relapse or permanent
             184      revocation;
             185          (ii) the retail tobacco specialty business is not closed for business or otherwise
             186      suspends the sale of tobacco products for more than 60 consecutive days;
             187          (iii) the retail tobacco specialty business does not substantially change the business
             188      premises or its business operation; and
             189          (iv) the retail tobacco specialty business maintains the right to operate under the terms
             190      of other applicable laws, including zoning ordinances, building codes, and the business license
             191      issued prior to May 8, 2012.
             192          Section 3. Section 26-42-102 is amended to read:
             193           26-42-102. Definitions.
             194          As used in this chapter:
             195          (1) "Commission" means the Utah State Tax Commission.
             196          (2) "Employee" means an employee of a licensee.
             197          (3) "Enforcing agency" means the state Department of Health, or any local health
             198      department enforcing the provisions of this chapter.
             199          (4) "Licensee" means a person licensed:
             200          (a) under Section 59-14-201 to sell cigarettes at retail; or
             201          (b) under Section 59-14-301 to sell tobacco products at retail.
             202          (5) "License to sell tobacco" or "license" means a license issued:
             203          (a) under Section 59-14-201 to sell cigarettes at retail; or
             204          (b) under Section 59-14-301 to sell tobacco products at retail.
             205          (6) "Nicotine product" is as defined in Section 76-10-101 .
             206          [(6)] (7) "Tobacco" means:
             207          (a) cigarettes or tobacco products as defined in Section 59-14-102 [.]; or
             208          (b) a nicotine product H. derived from tobacco .H .
             209          Section 4. Section 59-14-102 is amended to read:
             210           59-14-102. Definitions.
             211          As used in this chapter:


             212          (1) "Cigarette" means a roll for smoking made wholly or in part of tobacco:
             213          (a) regardless of:
             214          (i) the size of the roll;
             215          (ii) the shape of the roll; or
             216          (iii) whether the tobacco is:
             217          (A) flavored;
             218          (B) adulterated; or
             219          (C) mixed with any other ingredient; and
             220          (b) if the wrapper or cover of the roll is made of paper or any other substance or
             221      material except tobacco.
             222          (2) "Consumer" means a person that is not required:
             223          (a) under Section 59-14-201 to obtain a license under Section 59-14-202 ; or
             224          (b) under Section 59-14-301 to obtain a license under Section 59-14-202 .
             225          (3) "Counterfeit cigarette" means:
             226          (a) a cigarette that has a false manufacturing label; or
             227          (b) a package of cigarettes bearing a counterfeit tax stamp.
             228          (4) "Importer" means a person who imports into the United States, either directly or
             229      indirectly, a finished cigarette for sale or distribution.
             230          (5) "Indian tribal entity" means a federally recognized Indian tribe, tribal entity, or any
             231      other person doing business as a distributor or retailer of cigarettes on tribal lands located in the
             232      state.
             233          (6) "Little cigar" means a roll for smoking:
             234          (a) made wholly or in part of tobacco;
             235          (b) that uses an integrated cellulose acetate filter or other similar filter; and
             236          (c) that is wrapped in a substance:
             237          (i) containing tobacco; and
             238          (ii) that is not exclusively natural leaf tobacco.
             239          (7) "Manufacturer" means a person who manufactures, fabricates, assembles,
             240      processes, or labels a finished cigarette.
             241          (8) "Moist snuff" means tobacco that:
             242          (a) is finely:


             243          (i) cut;
             244          (ii) ground; or
             245          (iii) powdered;
             246          (b) has at least 45% moisture content, as determined by the commission by rule made
             247      in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
             248          (c) is not intended to be:
             249          (i) smoked; or
             250          (ii) placed in the nasal cavity; and
             251          (d) except for single-use pouches of loose tobacco, is not packaged, produced, sold, or
             252      distributed in single-use units, including:
             253          (i) tablets;
             254          (ii) lozenges;
             255          (iii) strips;
             256          (iv) sticks; or
             257          (v) packages containing multiple single-use units.
             258          (9) "Nicotine H. [ candy ] dissolvables .H " means an item that:
             259          (a) contains:
             260          (i) nicotine; and
             261          (ii) a natural or artificial sweetener;
             262          (b) is ingested orally; and
             263          (c) is not approved by the United States Food and Drug Administration as an aid in
             264      quitting the use of tobacco or a nicotine product.
             265          (10) "Nicotine product" means:
             266          (a) nicotine H. [ candy ] dissolvables .H ; or
             267          (b) any other H. [ a ] .H product:
             268          (i) intended for human consumption; and
             269          (ii) that:
             270          (A) contains nicotine;
             271          (B) is not an e-cigarette or nicotine in liquid form; and
             272          (C) is not approved by the United States Food and Drug Administration as an aid in
             273      quitting the use of tobacco or nicotine.


             274          [(9)] (11) "Retailer" means a person that:
             275          (a) sells or distributes a cigarette to a consumer in the state; or
             276          (b) intends to sell or distribute a cigarette to a consumer in the state.
             277          [(10)] (12) "Stamp" means the indicia required to be placed on a cigarette package that
             278      evidences payment of the tax on cigarettes required by Section 59-14-205 .
             279          [(11)] (13) (a) "Tobacco product" means:
             280          (i) a product made of, or containing, tobacco[.]; or
             281          (ii) a nicotine product.
             282          (b) "Tobacco product" includes:
             283          (i) a little cigar; or
             284          (ii) moist snuff.
             285          (c) "Tobacco product" does not include a cigarette.
             286          [(12)] (14) "Tribal lands" means land held by the United States in trust for a federally
             287      recognized Indian tribe.
             288          Section 5. Section 76-10-101 is amended to read:
             289           76-10-101. Definitions.
             290          As used in this part:
             291          (1) "Cigar" means a product that contains nicotine, is intended to be burned under
             292      ordinary conditions of use, and consists of any roll of tobacco wrapped in leaf tobacco, or in
             293      any substance containing tobacco, other than any roll of tobacco that is a cigarette as described
             294      in Subsection (2).
             295          (2) "Cigarette" [means a product that contains nicotine, is intended to be burned under
             296      ordinary conditions of use, and consists of:] is as defined in Section 59-14-102 .
             297          [(a) any roll of tobacco wrapped in paper or in any substance not containing tobacco;
             298      or]
             299          [(b) any roll of tobacco wrapped in any substance containing tobacco which, because of
             300      its appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to
             301      be offered to, or purchased by, consumers as a cigarette described in Subsection (2)(a).]
             302          (3) "Electronic cigarette" [means any device, other than a cigarette or cigar, intended to
             303      deliver vapor containing nicotine into a person's respiratory system] has the same meaning as
             304      e-cigarette, as defined in Section 26-38-2 .


             305          (4) "Place of business" includes:
             306          (a) a shop;
             307          (b) a store;
             308          (c) a factory;
             309          (d) a public garage;
             310          (e) an office;
             311          (f) a theater;
             312          (g) a recreation hall;
             313          (h) a dance hall;
             314          (i) a poolroom;
             315          (j) a café;
             316          (k) a cafeteria;
             317          (l) a cabaret;
             318          (m) a restaurant;
             319          (n) a hotel;
             320          (o) a lodging house;
             321          (p) a streetcar;
             322          (q) a bus;
             323          (r) an interurban or railway passenger coach;
             324          (s) a waiting room; and
             325          (t) any other place of business.
             326          (5) "Nicotine product" means a product that:
             327          (a) contains nicotine H. derived from tobacco .H ;
             328          (b) is intended for human consumption; and
             329          (c) is not approved by the United States Food and Drug Administration as an aid in
             330      quitting the use of tobacco.
             331          (6) "Retail tobacco specialty business" is as defined in Section 10-8-41.6 .
             332          [(5)] (7) "Smoking" [means the possession of any lighted cigar, cigarette, pipe, or other
             333      lighted smoking equipment] is as defined in Section 26-38-2 .
             334          (8) (a) "Tobacco product" means:
             335          (i) a product made of, or containing, tobacco; or


             336          (ii) a nicotine product.
             337          (b) "Tobacco product" includes:
             338          (i) a little cigar; or
             339          (ii) moist snuff.
             340          (c) "Tobacco product" does not include cigarette.
             341          Section 6. Section 76-10-102 is amended to read:
             342           76-10-102. Cigarettes and tobacco -- Advertising restrictions -- Warnings in
             343      smokeless tobacco advertisements.
             344          (1) It is a class B misdemeanor for any person to display on any billboard, streetcar
             345      sign, streetcar, bus, placard, or on any other object or place of display, any advertisement of
             346      cigarettes, cigarette papers, cigars, chewing tobacco, [or] smoking tobacco, or other tobacco
             347      product, or any disguise or substitute of either, except that a dealer in cigarettes, cigarette
             348      papers, a tobacco product, or cigars, or their substitutes, may have a sign on the front of [his]
             349      the dealer's place of business stating that [he] the dealer is a dealer in the articles[;], provided
             350      that nothing herein shall be construed to prohibit the advertising of cigarettes, cigarette papers,
             351      chewing tobacco [or], smoking tobacco, or other tobacco product, or any substitute of either, in
             352      any newspaper, magazine or periodical printed or circulating in this state.
             353          (2) Any advertisement for smokeless tobacco placed in a newspaper, magazine, or
             354      periodical published in this state must bear a warning which states: "Use of smokeless tobacco
             355      may cause oral cancer and other mouth disorders and is addictive." This warning must be in a
             356      conspicuous location and in conspicuous and legible type, in contrast with the typography,
             357      layout, and color of all other printed material in the advertisement. For purposes of this
             358      subsection, "smokeless tobacco" means any finely cut, ground, powdered, or leaf tobacco that
             359      is intended to be placed in the oral cavity or nasal passage. In the event the United States
             360      Congress passes legislation which requires warnings in advertisements of smokeless tobacco,
             361      the specific language required to be placed in advertisements by that legislation shall take
             362      precedence over this subsection.
             363          Section 7. Section 76-10-103 is amended to read:
             364           76-10-103. Permitting minors to use tobacco in place of business -- Permitting
             365      minors to enter a retail tobacco specialty business.
             366          (1) It is a class C misdemeanor for the proprietor of any place of business to knowingly


             367      permit persons under age 19 to frequent a place of business while they are using a cigarette or a
             368      tobacco product.
             369          (2) It is a class C misdemeanor for the proprietor of a retail tobacco specialty business
             370      to knowingly permit a person under age 19 to enter the retail tobacco specialty business.
             371          Section 8. Section 76-10-104 is amended to read:
             372           76-10-104. Providing a cigar, cigarette, electronic cigarette, or tobacco to a minor
             373      -- Penalties.
             374          (1) Any person who knowingly, intentionally, recklessly, or with criminal negligence
             375      provides any cigar, cigarette, electronic cigarette, or other tobacco product in any form, to any
             376      person under 19 years of age, is guilty of a class C misdemeanor on the first offense, a class B
             377      misdemeanor on the second offense, and a class A misdemeanor on subsequent offenses.
             378          (2) For purposes of this section "provides":
             379          (a) includes selling, giving, furnishing, sending, or causing to be sent; and
             380          (b) does not include the acts of the United States Postal Service or other common
             381      carrier when engaged in the business of transporting and delivering packages for others or the
             382      acts of a person, whether compensated or not, who transports or delivers a package for another
             383      person without any reason to know of the package's content.
             384          Section 9. Section 76-10-105 is amended to read:
             385           76-10-105. Buying or possessing a cigar, cigarette, electronic cigarette, or tobacco
             386      by a minor -- Penalty -- Compliance officer authority -- Juvenile court jurisdiction.
             387          (1) Any 18 year old person who buys or attempts to buy, accepts, or has in the person's
             388      possession any cigar, cigarette, electronic cigarette, or other tobacco product in any form is
             389      guilty of a class C misdemeanor and subject to:
             390          (a) a minimum fine or penalty of $60; and
             391          (b) participation in a court-approved tobacco education program, which may include a
             392      participation fee.
             393          (2) Any person under the age of 18 who buys or attempts to buy, accepts, or has in the
             394      person's possession any cigar, cigarette, electronic cigarette, or tobacco in any form is subject
             395      to the jurisdiction of the Juvenile Court and:
             396          (a) a minimum fine or penalty of $60; and
             397          (b) participation in a court-approved tobacco education program, which may include a


             398      participation fee.
             399          (3) A compliance officer appointed by a board of education under Section 53A-3-402
             400      may issue citations for violations of this section committed on school property. Cited
             401      violations shall be reported to the appropriate juvenile court.
             402          Section 10. Section 76-10-105.1 is amended to read:
             403           76-10-105.1. Requirement of direct, face-to-face sale of cigarettes and tobacco
             404      products -- Supremacy clause -- Penalties.
             405          (1) As used in this section:
             406          (a) "Cigarette tobacco" means a product that consists of loose tobacco that contains or
             407      delivers nicotine and is intended for use by a consumer in a cigarette.
             408          (b) "Pipe tobacco" means a product that consists of loose tobacco that contains or
             409      delivers nicotine and is intended to be smoked by a consumer in a pipe.
             410          (c) "Retailer" means a person who sells cigarettes, electronic cigarettes, cigars,
             411      cigarette tobacco, pipe tobacco, or smokeless tobacco to individuals for personal consumption
             412      or who operates a facility where a vending machine or a self-service display is permitted under
             413      Subsection (3)(b).
             414          (d) "Self-service display" means a display of cigarettes, electronic cigarettes, cigars,
             415      cigarette tobacco, pipe tobacco, or smokeless tobacco products to which the public has access
             416      without the intervention of a retail employee.
             417          (e) "Smokeless tobacco" means a product that consists of cut, ground, powdered, or
             418      leaf tobacco that contains nicotine and that is intended to be placed in the oral cavity.
             419          (2) (a) Except as provided in Subsection (3), a retailer may sell cigarettes, electronic
             420      cigarettes, cigars, cigarette tobacco, pipe tobacco, [and] smokeless tobacco, and other tobacco
             421      products only in a direct, face-to-face exchange between:
             422          (i) an employee of the retailer; and
             423          (ii) the purchaser.
             424          (b) Examples of methods that are not permitted include vending machines and
             425      self-service displays.
             426          (c) Subsections (2)(a) and (b) do not prohibit the use or display of locked cabinets
             427      containing cigarettes, electronic cigarettes, cigars, cigarette tobacco, pipe tobacco, [or]
             428      smokeless tobacco, or other tobacco products if the locked cabinets are accessible only to the


             429      retailer or the retailer's employees.
             430          (3) The following sales are permitted as exceptions to Subsection (2):
             431          (a) mail-order sales, if the provisions of Section 59-14-509 are met;
             432          (b) sales from vending machines, including vending machines that sell packaged,
             433      single cigarettes or cigars, and self-service displays that are located in a separate and defined
             434      area within a facility where the retailer ensures that no person younger than 19 years of age is
             435      present, or permitted to enter, at any time[, unless accompanied by a parent or legal guardian];
             436      and
             437          (c) sales [by a retailer from a retail store which derives at least 80% of its revenue from
             438      tobacco and tobacco related products and where the retailer ensures that no person younger
             439      than 19 years of age is present, or permitted to enter at any time, unless accompanied by a
             440      parent or legal guardian] from a vending machine or a self-service display, including a vending
             441      machine that sells packaged, single cigarettes or cigars, if the vending machine or self-service
             442      display is located in a retail tobacco specialty business.
             443          (4) Any ordinance, regulation, or rule adopted by the governing body of a political
             444      subdivision of the state or by a state agency that affects the sale, placement, or display of
             445      cigarettes, electronic cigarettes, cigars, cigarette tobacco, pipe tobacco, or smokeless tobacco
             446      that is not essentially identical to the provisions of this section and Section 76-10-102 is
             447      superseded.
             448          [(5) (a) A parent or legal guardian who accompanies a person younger than 19 years of
             449      age into an area described in Subsection (3)(b) or into a retail store as described in Subsection
             450      (3)(c) and permits the person younger than 19 years of age to purchase or otherwise take a
             451      cigar, cigarette, electronic cigarette, or tobacco in any form is guilty of providing tobacco as
             452      provided for in Section 76-10-104 and the penalties provided for in that section.]
             453          [(b)] (5) Nothing in this section may be construed as permitting a person to provide
             454      tobacco to a minor in violation of Section 76-10-104 .
             455          (6) Violation of Subsection (2) or (3) is a:
             456          (a) class C misdemeanor on the first offense;
             457          (b) class B misdemeanor on the second offense; and
             458          (c) class A misdemeanor on the third and all subsequent offenses.
             459          Section 11. Section 76-10-111 is amended to read:


             460           76-10-111. Prohibition of gift or free distribution of smokeless tobacco or
             461      electronic cigarettes -- Exceptions.
             462          (1) The Legislature finds that:
             463          (a) smokeless tobacco, or chewing tobacco, is harmful to the health of individuals who
             464      use those products because research indicates that they may cause mouth or oral cancers;
             465          (b) the use of smokeless tobacco among juveniles in this state is increasing rapidly;
             466          (c) the use of electronic cigarettes may lead to unhealthy behavior such as the use of
             467      tobacco products; and
             468          (d) it is necessary to restrict the gift of the products described in this Subsection (1) in
             469      the interest of the health of the citizens of this state.
             470          (2) Except as provided in Subsection (3), it is unlawful for a manufacturer, wholesaler,
             471      and retailer to give or distribute without charge any smokeless tobacco, chewing tobacco, [or]
             472      electronic cigarette, or other tobacco product in this state. Any person who violates this section
             473      is guilty of a class C misdemeanor for the first offense, and is guilty of a class B misdemeanor
             474      for any subsequent offense.
             475          (3) (a) Smokeless tobacco, chewing tobacco, [or] an electronic cigarette, or other
             476      tobacco product may be distributed to adults without charge at professional conventions where
             477      the general public is excluded.
             478          (b) Subsection (2) does not apply to a retailer, manufacturer, or distributor who gives
             479      smokeless tobacco, chewing tobacco, [or] an electronic cigarette, or other tobacco product to a
             480      person of legal age upon the person's purchase of another tobacco product or electronic
             481      cigarette.
             482          Section 12. Effective date.
             483          This bill takes effect on July 1, 2013.


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