Representative Paul Ray proposes the following substitute bill:


1     
ELECTRONIC CIGARETTE AND OTHER NICOTINE

2     
PRODUCT AMENDMENTS

3     
2018 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Paul Ray

6     
Senate Sponsor: Allen M. Christensen

7     

8     LONG TITLE
9     General Description:
10          This bill enacts and amends provisions relating to electronic cigarette products,
11     alternative nicotine products, and nontherapeutic nicotine products.
12     Highlighted Provisions:
13          This bill:
14          ▸     defines terms;
15          ▸     imposes civil penalties for the sale of an alternative nicotine product or a
16     nontherapeutic nicotine product;
17          ▸     requires certain products that contain synthetic nicotine to have a statement on the
18     exterior package that the product contains synthetic nicotine;
19          ▸     imposes licensing requirements on a person that sells or distributes an alternative
20     nicotine product or a nontherapeutic nicotine product;
21          ▸     imposes an excise tax on the sale of an electronic cigarette substance, an alternative
22     nicotine product, and a nontherapeutic nicotine device substance in the state;
23          ▸     provides for the remittance of the tax collected;
24          ▸     creates the Electronic Cigarette Substance and Other Nicotine Product Tax
25     Restricted Account;
26          ▸     addresses use of revenue from the taxation of an electronic cigarette substance, an
27     alternative nicotine product, and a nontherapeutic nicotine device substance;
28          ▸     provides criminal penalties for a sale or purchase of an electronic cigarette product,
29     an alternative nicotine product, or a nontherapeutic nicotine product, in violation of
30     law; and
31          ▸     makes technical and conforming changes.
32     Money Appropriated in this Bill:
33          None
34     Other Special Clauses:
35          This bill provides a special effective date.
36          This bill provides a coordination clause.
37     Utah Code Sections Affected:
38     AMENDS:
39          26-42-101, as enacted by Laws of Utah 1998, Chapter 319
40          26-42-102, as last amended by Laws of Utah 2015, Chapter 132
41          26-42-103, as last amended by Laws of Utah 2015, Chapter 132
42          26-42-106, as enacted by Laws of Utah 1998, Chapter 319
43          26-42-107, as last amended by Laws of Utah 2015, Chapter 132
44          26-57-101, as enacted by Laws of Utah 2015, Chapter 132
45          26-57-102, as enacted by Laws of Utah 2015, Chapter 132
46          59-14-102, as last amended by Laws of Utah 2013, Chapter 148
47          59-14-201, as last amended by Laws of Utah 2013, Chapter 148
48          59-14-203.5, as last amended by Laws of Utah 2011, Chapter 96
49          59-14-801, as enacted by Laws of Utah 2015, Chapter 132
50          59-14-802, as enacted by Laws of Utah 2015, Chapter 132
51          59-14-803, as enacted by Laws of Utah 2015, Chapter 132
52          76-10-101, as last amended by Laws of Utah 2015, Chapters 66, 132 and last amended
53     by Coordination Clause, Laws of Utah 2015, Chapter 132
54          76-10-104, as last amended by Laws of Utah 2010, Chapter 114
55          76-10-104.1, as last amended by Laws of Utah 2013, Chapter 278
56          76-10-105, as last amended by Laws of Utah 2017, Chapter 330
57          76-10-105.1, as last amended by Laws of Utah 2015, Chapters 66 and 132
58     ENACTS:
59          26-57-104, Utah Code Annotated 1953
60          59-14-804, Utah Code Annotated 1953
61          59-14-805, Utah Code Annotated 1953
62          59-14-806, Utah Code Annotated 1953
63          59-14-807, Utah Code Annotated 1953
64     Utah Code Sections Affected by Coordination Clause:
65          10-8-41.6, as enacted by Laws of Utah 2012, Chapter 154
66          17-50-333, as enacted by Laws of Utah 2012, Chapter 154
67          26-42-106, as enacted by Laws of Utah 1998, Chapter 319
68          26-62-102, (Renumbered from 26-42-102, as last amended by Laws of Utah 2015,
69     Chapter 132)
70          26-62-306, (Renumbered from 26-42-106, as enacted by Laws of Utah 1998, Chapter
71     319)
72          76-10-105.1, as last amended by Laws of Utah 2015, Chapters 66 and 132
73     

74     Be it enacted by the Legislature of the state of Utah:
75          Section 1. Section 26-42-101 is amended to read:
76     
CHAPTER 42. CIVIL PENALTIES FOR TOBACCO, ELECTRONIC CIGARETTE,

77     
AND OTHER NICOTINE PRODUCT SALES TO UNDERAGE PERSONS

78          26-42-101. Title.
79          This chapter is known as "Civil Penalties for Tobacco, Electronic Cigarette, and Other
80     Nicotine Product Sales to Underage Persons."
81          Section 2. Section 26-42-102 is amended to read:
82          26-42-102. Definitions.
83          As used in this chapter:
84          (1) "Alternative nicotine product" means the same as that term is defined in Section
85     59-14-102.
86          [(1)] (2) "Commission" means the [Utah] State Tax Commission.
87          (3) "Electronic cigarette product" means the same as that term is defined in Section
88     59-14-102.
89          [(2)] (4) "Employee" means an employee of a licensee.
90          [(3)] (5) "Enforcing agency" means the state Department of Health, or any local health
91     department, enforcing the provisions of this chapter.
92          [(4)] (6) "Licensee" means a person licensed:
93          (a) under Section 59-14-201 to sell cigarettes at retail;
94          (b) under Section 59-14-301 to sell tobacco products at retail; or
95          (c) under Section 59-14-803 to sell an electronic cigarette product, an alternative
96     nicotine product, or a nontherapeutic nicotine product.
97          [(5)] (7) "License to sell [tobacco]" or "license" means a license issued:
98          (a) under Section 59-14-201 to sell cigarettes at retail;
99          (b) under Section 59-14-301 to sell tobacco products at retail; or
100          (c) under Section 59-14-803 to sell an electronic cigarette product, an alternative
101     nicotine product, or a nontherapeutic nicotine product.
102          (8) "Nontherapeutic nicotine product" means the same as that term is defined in
103     Section 59-14-102.
104          [(6)] (9) "Tobacco" means[: (a)] a cigarette or a tobacco product, as defined in Section
105     59-14-102[; or].
106          [(b) an electronic cigarette product, as defined in Section 59-14-802.]
107          Section 3. Section 26-42-103 is amended to read:
108          26-42-103. Violations and penalties -- Imposition by enforcing agency and tax
109     commission.
110          (1) If, following an investigation or issuance of a citation or information under Section
111     77-39-101, an enforcing agency determines under Section 26-42-104 that a licensee or any
112     employee has sold tobacco, an electronic cigarette product, an alternative nicotine product, or a
113     nontherapeutic nicotine product to a person younger than 19 years of age, as prohibited by
114     Section 76-10-104, the enforcing agency may impose upon the licensee the following
115     administrative penalties:
116          (a) upon the first violation, a penalty of not more than $300;
117          (b) upon a second violation at the same retail location[,] and within 12 months of the
118     first violation, a penalty of not more than $750; and
119          (c) upon a third or subsequent violation at the same retail location and within 12
120     months of the first violation, a penalty of not more than $1,000.
121          (2) The enforcing agency shall notify the commission in writing of any order or order
122     of default finding a violation of Subsection (1) [which] that is a third or fourth violation.
123          (3) (a) [The commission, upon] Upon receipt of the written notification under
124     Subsection (2), the commission shall take action under Section 59-14-203.5 [or], 59-14-301.5,
125     or 59-14-803 against the license to sell [tobacco:] in accordance with Subsection (3)(b).
126          [(a)] (b) (i) [by suspending] Upon receipt of written notification of a third offense
127     under Subsection (1)(c), the commission shall suspend the licensee's license to sell tobacco, an
128     electronic cigarette product, an alternative nicotine product, or a nontherapeutic nicotine
129     product at that location for not more than 30 days[, upon receipt of notification of a third
130     violation under Subsection (1)(c); and].
131          [(b)] (ii) [by revoking] Upon receipt of written notification of a fourth violation under
132     Subsection (1)(c), the commission shall revoke the license to sell [tobacco at that location] held
133     by the licensee, including any license under suspension[, upon receipt of notification of a fourth
134     violation under Subsection (1)(c)] at that location.
135          (4) When the commission revokes a license under Subsection (3)(b)(ii), the
136     commission may not issue to the licensee, or to the business entity using the license that is
137     revoked, a license under Section 59-14-202, 59-14-301, or 59-14-803 [to sell tobacco] at the
138     location for which the license was issued for one year after:
139          (a) the day on which the time for filing an appeal of the revocation ends; or
140          (b) if the revocation is appealed, the day on which the decision to uphold the
141     revocation becomes final.
142          (5) This section does not prevent any bona fide purchaser of the business, who is not a
143     sole proprietor, director, corporate officer, or partner or other holder of significant interest in
144     the entity selling the business, from immediately applying for and obtaining a license to sell
145     [tobacco].
146          Section 4. Section 26-42-106 is amended to read:
147          26-42-106. Recognition of licensee's training program.
148          (1) In determining the amount of the monetary penalty to [be imposed] impose for an
149     employee's violation of Section 26-42-103, the hearing officer shall reduce the penalty by at
150     least 50% if [he] the hearing officer determines:
151          (a) the licensee has implemented a documented employee training program; and
152          (b) the employee has completed that training program within 30 days of commencing
153     duties of selling tobacco products, electronic cigarette products, alternative nicotine products,
154     or nontherapeutic nicotine products.
155          (2) (a) [If] The hearing officer may suspend all or a portion of the monetary penalty for
156     a first offense at a location if:
157          (i) the hearing officer determines under Subsection (1)[, regarding a first offense at a
158     location,] that the licensee has not implemented a documented training program with a written
159     curriculum for employees at that location regarding compliance with this chapter[, the hearing
160     officer may suspend all or a portion of the monetary penalty, contingent upon the licensee's
161     initiating]; and
162          (ii) the licensee agrees to initiate a training program for employees at that location
163     within 30 days after the hearing date.
164          (b) If the hearing officer determines at a subsequent hearing that the licensee has not
165     implemented the training program within the time period required under Subsection (2)(a), the
166     hearing officer shall promptly impose the suspended monetary penalty [shall be promptly
167     imposed], unless the licensee demonstrates good cause for granting an extension of time for
168     implementation of the training program.
169          Section 5. Section 26-42-107 is amended to read:
170          26-42-107. Allocation of civil penalties.
171          Civil monetary penalties collected under this chapter shall be allocated as follows:
172          (1) if a local health department conducts an adjudicative proceeding under Section
173     26-42-104, the penalty shall be paid to the treasurer of the county in which the violation was
174     committed[,] and transferred to:
175          (a) the local health department if [it] the local health department conducts a civil
176     hearing under Section 26-42-104 alone; or
177          (b) in equal portions to the local health department and the other agencies that
178     participated in the hearing process;
179          (2) if the state Department of Health conducts a civil hearing under Section 26-42-104,
180     the penalty shall be deposited in the state's General Fund[,] and may be appropriated by the
181     Legislature to the state Department of Health for use in enforcement of this chapter; and
182          (3) if the civil penalty involves suspension or revocation of a license to sell [tobacco]
183     under Section 59-14-203.5, 59-14-301.5, or 59-14-803, half of the penalty shall be paid to the
184     commission[,] and the other half shall be allocated under Subsection (1) or (2)[,] as
185     appropriate.
186          Section 6. Section 26-57-101 is amended to read:
187     
CHAPTER 57. ELECTRONIC CIGARETTE AND OTHER NICOTINE PRODUCT

188     
REGULATION ACT

189          26-57-101. Title.
190          This chapter is known as the "Electronic Cigarette and Other Nicotine Product
191     Regulation Act."
192          Section 7. Section 26-57-102 is amended to read:
193          26-57-102. Definitions.
194          As used in this chapter:
195          (1) "Alternative nicotine product" means the same as that term is defined in Section
196     59-14-102.
197          [(1)] (2) "Cigarette" means the same as that term is defined in Section 59-14-102.
198          [(2)] (3) "Electronic cigarette" means the same as that term is defined in Section
199     [59-14-802] 59-14-102.
200          [(3)] (4) "Electronic cigarette product" means an electronic cigarette or an electronic
201     cigarette substance.
202          [(4)] (5) "Electronic cigarette substance" means the same as that term is defined in
203     Section [59-14-802] 59-14-102.
204          (6) "Local health department" means the same as that term is defined in Section
205     26A-1-102.
206          [(5)] (7) "Manufacture" includes:
207          (a) to cast, construct, or make electronic cigarettes; or
208          (b) to blend, make, process, or prepare an electronic cigarette substance.
209          [(6)] (8) "Manufacturer sealed electronic cigarette substance" means an electronic
210     cigarette substance that is sold in a container that:
211          (a) is [pre-filled] prefilled by the electronic cigarette substance manufacturer; and
212          (b) the electronic cigarette manufacturer does not intend for a consumer to open.
213          (9) "Nontherapeutic nicotine device" means the same as that term is defined in Section
214     59-14-102.
215          (10) "Nontherapeutic nicotine device substance" means the same as that term is defined
216     in Section 59-14-102.
217          (11) "Nontherapeutic nicotine product" means a nontherapeutic nicotine device or a
218     nontherapeutic nicotine device substance.
219          Section 8. Section 26-57-104 is enacted to read:
220          26-57-104. Labeling of products containing synthetic nicotine.
221          Any nontherapeutic nicotine device or alternative nicotine product containing synthetic
222     nicotine that is not otherwise required to contain a nicotine warning and that is sold in this state
223     shall contain the following statement on the exterior packaging of the product:
224          "This product contains synthetic nicotine."
225          Section 9. Section 59-14-102 is amended to read:
226          59-14-102. Definitions.
227          As used in this chapter:
228          (1) (a) Except as provided in Subsection (1)(c), "alternative nicotine product" means a
229     product, other than a cigarette, a counterfeit cigarette, an electronic cigarette product, a
230     nontherapeutic nicotine product, or a tobacco product, that:
231          (i) contains nicotine;
232          (ii) is intended for human consumption;
233          (iii) is not purchased with a prescription from a licensed physician; and
234          (iv) is not approved by the United States Food and Drug Administration as nicotine
235     replacement therapy.
236          (b) "Alternative nicotine product" includes:
237          (i) pure nicotine;
238          (ii) snortable nicotine;
239          (iii) dissolvable orbs, pellets, sticks, or strips; and
240          (iv) nicotine-laced food and beverage.
241          (c) "Alternative nicotine product" does not include a fruit, a vegetable, or a tea that
242     contains naturally occurring nicotine.
243          [(1)] (2) "Cigarette" means a roll for smoking made wholly or in part of tobacco:
244          (a) regardless of:
245          (i) the size of the roll;
246          (ii) the shape of the roll; or
247          (iii) whether the tobacco is[: (A)] flavored[; (B)], adulterated[;], or [(C)] mixed with
248     any other ingredient; and
249          (b) if the wrapper or cover of the roll is made of paper or any other substance or
250     material except tobacco.
251          [(2)] (3) "Cigarette rolling machine" means a device or machine that has the capability
252     to produce at least 150 cigarettes in less than 30 minutes.
253          [(3)] (4) "Cigarette rolling machine operator" means a person [who] that:
254          (a) (i) controls, leases, owns, possesses, or otherwise has available for use a cigarette
255     rolling machine; and
256          (ii) makes the cigarette rolling machine available for use by another person to produce
257     a cigarette; or
258          (b) offers for sale, at retail, a cigarette produced from the cigarette rolling machine.
259          [(4)] (5) "Consumer" means a person that is not required:
260          (a) under Section 59-14-201 to obtain a license under Section 59-14-202; [or]
261          (b) under Section 59-14-301 to obtain a license under Section 59-14-202[.]; or
262          (c) under Section 59-14-803 to obtain a license.
263          [(5)] (6) "Counterfeit cigarette" means:
264          (a) a cigarette that has a false manufacturing label; or
265          (b) a package of cigarettes bearing a counterfeit tax stamp.
266          (7) (a) "Electronic cigarette" means:
267          (i) an electronic device used to deliver or capable of delivering vapor containing
268     nicotine to an individual's respiratory system;
269          (ii) a component of the device described in Subsection (7)(a)(i); or
270          (iii) an accessory sold in the same package as the device described in Subsection
271     (7)(a)(i).
272          (b) "Electronic cigarette" includes an e-cigarette as that term is defined in Section
273     26-38-2.
274          (8) "Electronic cigarette product" means an electronic cigarette or an electronic
275     cigarette substance.
276          (9) "Electronic cigarette substance" means any substance, including liquid containing
277     nicotine, used or intended for use in an electronic cigarette.
278          [(6)] (10) "Importer" means a person [who] that imports into the United States, either
279     directly or indirectly, a finished cigarette for sale or distribution.
280          [(7)] (11) "Indian tribal entity" means a federally recognized Indian tribe, tribal entity,
281     or any other person doing business as a distributor or retailer of cigarettes on tribal lands
282     located in the state.
283          [(8)] (12) "Little cigar" means a roll for smoking that:
284          (a) is made wholly or in part of tobacco;
285          (b) [that] uses an integrated cellulose acetate filter or other similar filter; and
286          (c) [that] is wrapped in a substance:
287          (i) containing tobacco; and
288          (ii) that is not exclusively natural leaf tobacco.
289          [(9)] (13) (a) Except as provided in Subsection [(9)] (13)(b), "manufacturer" means a
290     person [who] that:
291          (i) manufactures, fabricates, assembles, processes, or labels a finished cigarette; or
292          (ii) makes, modifies, mixes, manufactures, fabricates, assembles, processes, labels,
293     repackages, relabels, or imports an electronic cigarette product, an alternative nicotine product,
294     or a nontherapeutic nicotine product.
295          (b) "Manufacturer" does not include a cigarette rolling machine operator.
296          [(10)] (14) "Moist snuff" means tobacco that:
297          (a) is finely[: (i)] cut[; (ii)], ground[;], or [(iii)] powdered;
298          (b) has at least 45% moisture content, as determined by the commission by rule made
299     in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
300          (c) is not intended to be:
301          (i) smoked; or
302          (ii) placed in the nasal cavity; and
303          (d) except for single-use pouches of loose tobacco, is not packaged, produced, sold, or
304     distributed in single-use units, including:
305          (i) tablets;
306          (ii) lozenges;
307          (iii) strips;
308          (iv) sticks; or
309          (v) packages containing multiple single-use units.
310          (15) "Nicotine" means a poisonous, nitrogen containing chemical that is made
311     synthetically or derived from tobacco or other plants.
312          (16) (a) "Nontherapeutic nicotine device" means a device that:
313          (i) has a pressurized canister that is used to administer nicotine to the user through
314     inhalation or intranasally;
315          (ii) is not purchased with a prescription from a licensed physician; and
316          (iii) is not approved by the United States Food and Drug Administration as nicotine
317     replacement therapy.
318          (b) "Nontherapeutic nicotine device" includes a nontherapeutic nicotine inhaler or
319     nontherapeutic nicotine nasal spray.
320          (17) "Nontherapeutic nicotine device substance" means a cartridge that:
321          (a) contains nicotine;
322          (b) is used or intended to be used in a nontherapeutic nicotine device;
323          (c) is not purchased with a prescription from a licensed physician; and
324          (d) is not approved by the United States Food and Drug Administration as nicotine
325     replacement therapy.
326          (18) "Nontherapeutic nicotine product" means a nontherapeutic nicotine device or a
327     nontherapeutic nicotine device substance.
328          [(11)] (19) "Retailer" means a person that:
329          (a) sells or distributes a cigarette, an electronic cigarette product, an alternative nicotine
330     product, or a nontherapeutic nicotine product to a consumer in the state; or
331          (b) intends to sell or distribute a cigarette, an electronic cigarette product, an alternative
332     nicotine product, or a nontherapeutic nicotine product to a consumer in the state.
333          [(12)] (20) "Stamp" means the indicia required to be placed on a cigarette package that
334     evidences payment of the tax on cigarettes required by Section 59-14-205.
335          [(13)] (21) (a) "Tobacco product" means a product made of, or containing, tobacco.
336          (b) "Tobacco product" includes:
337          (i) a cigarette produced from a cigarette rolling machine;
338          (ii) a little cigar; or
339          (iii) moist snuff.
340          (c) "Tobacco product" does not include a cigarette.
341          [(14)] (22) "Tribal lands" means land held by the United States in trust for a federally
342     recognized Indian tribe.
343          Section 10. Section 59-14-201 is amended to read:
344          59-14-201. License -- Application of part -- Fee -- Bond -- Exceptions.
345          (1) It is unlawful for any person in this state to manufacture, import, distribute, barter,
346     sell, exchange, or offer cigarettes for sale without first having obtained a license issued by the
347     commission under Section 59-14-202.
348          (2) Except for the tax rates described in Subsection 59-14-204(2), this part does not
349     apply to a cigarette produced from a cigarette rolling machine.
350          (3) (a) A license may not be issued for the sale of cigarettes until the applicant has paid
351     a license fee of $30 or a license renewal fee of $20, as appropriate.
352          (b) The fee for reinstatement of a license that has been revoked, suspended, or allowed
353     to expire is $30.
354          (4) (a) (i) [A license] The commission may not [be issued] issue a license until the
355     applicant files a bond with the commission.
356          (ii) The commission shall determine the form and the amount of the bond, the
357     minimum amount of which shall be $500.
358          (iii) The bond shall be executed by the applicant as principal, with a corporate surety,
359     payable to the state and conditioned upon the faithful performance of all the requirements of
360     this chapter, including the payment of all taxes, penalties, and other obligations.
361          (b) An applicant is not required to post a bond if the applicant:
362          (i) purchases, during the license year, only products that have the proper state stamp
363     affixed as required by this chapter; and
364          (ii) files an affidavit with the applicant's application attesting to this fact.
365          Section 11. Section 59-14-203.5 is amended to read:
366          59-14-203.5. Commission action to suspend or revoke license.
367          (1) (a) The commission shall suspend or revoke licenses to sell tobacco, as required
368     under Section 26-42-103 regarding suspension or revocation of a license due to the sale of
369     cigarettes to a person younger than 19 years of age, upon receipt of notice of an enforcing
370     agency's finding of a violation of Section 26-42-103.
371          (b) The commission shall provide written notice of the suspension or revocation to the
372     licensee.
373          (2) It is the duty of the enforcing agency to advise the commission of any finding of a
374     violation of Section 26-42-103 for which suspension or revocation of the license is a penalty.
375          (3) When the commission revokes a licensee's license under this section, the
376     commission may not issue to the licensee, or to the business entity using the license that is
377     revoked, a license to sell cigarettes under Section 59-14-202 [or], a license to sell tobacco
378     under Section 59-14-301 [to sell tobacco], or a license to sell an electronic cigarette product, an
379     alternative nicotine product, or a nontherapeutic nicotine product under Section 59-14-803 at
380     the location for which the license was issued for one year after:
381          (a) the day on which the time for filing an appeal of the revocation ends; or
382          (b) if the revocation is appealed, the day on which the decision to uphold the
383     revocation becomes final.
384          Section 12. Section 59-14-801 is amended to read:
385     
Part 8. Electronic Cigarette and Other Nicotine Product Licensing and Taxation Act

386          59-14-801. Title.
387          This part is known as the "Electronic Cigarette and Other Nicotine Product Licensing
388     and Taxation Act."
389          Section 13. Section 59-14-802 is amended to read:
390          59-14-802. Definitions.
391          As used in this part:
392          [(1) "Cigarette" means the same as that term is defined in Section 59-14-102.]
393          [(2) (a) "Electronic cigarette" means:]
394          [(i) an electronic device used to deliver or capable of delivering vapor containing
395     nicotine to an individual's respiratory system;]
396          [(ii) a component of the device described in Subsection (2)(a)(i); or]
397          [(iii) an accessory sold in the same package as the device described in Subsection
398     (2)(a)(i).]
399          [(b) "Electronic cigarette" includes an e-cigarette as defined in Section 26-38-2.]
400          [(3) "Electronic cigarette product" means an electronic cigarette or an electronic
401     cigarette substance.]
402          [(4) "Electronic cigarette substance" means any substance, including liquid containing
403     nicotine, used or intended for use in an electronic cigarette.]
404          [(5)] (1) "Enforcing agency" means the Department of Health, a county health
405     department, or a local health department, when enforcing:
406          (a) Title 26, Chapter 42, Civil Penalties for Tobacco, Electronic Cigarette, and Other
407     Nicotine Product Sales to Underage Persons; or
408          (b) Title 26, Chapter 57, Electronic Cigarette and Other Nicotine Product Regulation
409     Act.
410          [(6)] (2) "Licensee" means a person that holds a valid license to sell an electronic
411     cigarette [products] product, an alternative nicotine product, or a nontherapeutic nicotine
412     product.
413          [(7) "License to sell an electronic cigarette product" means a license issued by the
414     commission under Subsection 59-14-803(3).]
415          (3) (a) "Manufacturer's sales price" means the amount the manufacturer of an electronic
416     cigarette substance, prefilled electronic cigarette, alternative nicotine product, nontherapeutic
417     nicotine device substance, or prefilled nontherapeutic nicotine device charges after subtracting
418     a discount.
419          (b) "Manufacturer's sales price" includes an original Utah destination freight charge,
420     regardless of:
421          (i) whether the electronic cigarette substance, prefilled electronic cigarette, alternative
422     nicotine product, nontherapeutic nicotine device substance, or prefilled nontherapeutic nicotine
423     device is shipped f.o.b. origin or f.o.b. destination; or
424          (ii) who pays the original Utah destination charge.
425          (4) "Prefilled electronic cigarette" means an electronic cigarette that is sold prefilled
426     with an electronic cigarette substance.
427          (5) "Prefilled nontherapeutic nicotine device" means a nontherapeutic nicotine device
428     that is sold prefilled with a nontherapeutic nicotine device substance.
429          Section 14. Section 59-14-803 is amended to read:
430          59-14-803. License to sell an electronic cigarette product, an alternative nicotine
431     product, or a nontherapeutic nicotine product.
432          (1) (a) [Except as provided in Subsection (2), a] A person may not sell, offer to sell, or
433     distribute an electronic cigarette product [in Utah], an alternative nicotine product, or a
434     nontherapeutic nicotine product in this state without first:
435          (i) except as provided in Subsection (1)(b), obtaining a license from the commission
436     under this section to sell an electronic cigarette product [from the commission under this
437     section.], an alternative nicotine product, or a nontherapeutic nicotine product; and
438          (ii) complying with any bonding requirement described in Subsection (4).
439          [(2)] (b) A person that holds a valid license to sell cigarettes under Section 59-14-201,
440     or a person that holds a valid license to sell tobacco products under Section 59-14-301, may[,
441     without obtaining a separate license to sell an electronic cigarette product under this part,] sell,
442     offer to sell, or distribute an electronic cigarette product [in Utah], an alternative nicotine
443     product, or a nontherapeutic nicotine product in this state without obtaining a separate license
444     to sell an electronic cigarette product, an alternative nicotine product, or a nontherapeutic
445     nicotine product in accordance with this [part] section.
446          [(3)] (2) Except as provided in Subsection (6), the commission shall issue a license to
447     sell an electronic cigarette product, an alternative nicotine product, or a nontherapeutic nicotine
448     product to a person that:
449          (a) submits an application, on a form created by the commission, that includes:
450          (i) the person's name;
451          (ii) the address of the facility where the person will sell an electronic cigarette product,
452     an alternative nicotine product, or a nontherapeutic nicotine product; and
453          (iii) any other information the commission requires to implement this chapter; and
454          (b) pays a fee:
455          (i) in the amount of $30 if the person is applying for a first-time license or reinstating a
456     revoked, suspended, or expired license; or
457          (ii) [if renewing the person's license,] in the amount of $20 if the person is renewing a
458     license.
459          [(4)] (3) A license described in Subsection [(3)] (2) is:
460          (a) valid only at one fixed business address;
461          (b) valid for three years;
462          (c) valid only for a physical location; and
463          (d) renewable if a licensee meets the criteria for licensing described in Subsection [(3)]
464     (2).
465          (4) (a) The commission shall require a manufacturer, jobber, distributor, wholesaler, or
466     retailer that is responsible under this part for the collection of tax on an electronic cigarette, an
467     alternative nicotine product, or a nontherapeutic nicotine product to post a bond.
468          (b) The manufacturer, jobber, distributor, wholesaler, or retailer may post the bond
469     required by Subsection (4)(a) in combination with the bond required by Section 59-14-201 or
470     59-14-301.
471          (c) Subject to Subsection (4)(d), the commission shall determine the form and amount
472     of the bond.
473          (d) The minimum amount of the bond shall be:
474          (i) except as provided in Subsection (4)(d)(ii) or (iii), $500;
475          (ii) if the manufacturer, jobber, distributor, wholesaler, or retailer posts the bond
476     required by Subsection (4)(a) in combination with the bond required by Section 59-14-201 or
477     59-14-301, $1,000; or
478          (iii) if the manufacturer, jobber, distributor, wholesaler, or retailer posts the bond
479     required by Subsection (4)(a) in combination with the bonds required by Sections 59-14-201
480     and 59-14-301, $1,500.
481          (5) The commission shall, after notifying a licensee, revoke a license described in
482     Subsection (3) if an enforcing agency determines the licensee has violated a provision of:
483          (a) Title 26, Chapter 42, Civil Penalties for Tobacco, Electronic Cigarette, and Other
484     Nicotine Product Sales to Underage Persons; or
485          (b) Title 26, Chapter 57, Electronic Cigarette and Other Nicotine Product Regulation
486     Act.
487          (6) If the commission revokes a person's license to sell an electronic cigarette product,
488     an alternative nicotine product, or a nontherapeutic nicotine product under Subsection (5), the
489     commission may not issue to the person a license to sell an electronic cigarette product, an
490     alternative nicotine product, or a nontherapeutic nicotine product under this section, a license
491     to sell cigarettes under Section 59-14-201, or a license to sell tobacco under Section 59-14-301
492     [to the person] until one year after:
493          (a) the day on which the time for filing an appeal of the revocation ends, as determined
494     by the enforcing agency; or
495          (b) if the person appeals the enforcing agency's decision to revoke the license to sell an
496     electronic cigarette product, an alternative nicotine product, or a nontherapeutic nicotine
497     product, the day on which the enforcing agency's decision to uphold the revocation is final.
498          (7) If the commission revokes a person's license under Subsection (5), the commission
499     shall also revoke the person's license to sell cigarettes under Section 59-14-201, if any, and the
500     person's license to sell tobacco under Section 59-14-301, if any.
501          (8) The commission may make rules in accordance with Title 63G, Chapter 3, Utah
502     Administrative Rulemaking Act, to establish the additional information described in
503     Subsection [(3)] (2)(a)(iii) that a person must provide in the application described in
504     Subsection [(3)(a)] (2).
505          (9) It is a class B misdemeanor for a person to violate Subsection (1).
506          Section 15. Section 59-14-804 is enacted to read:
507          59-14-804. Taxation of an electronic cigarette product, an alternative nicotine
508     product, and a nontherapeutic nicotine product.
509          (1) (a) There is levied a tax upon the following:
510          (i) an electronic cigarette substance; and
511          (ii) a prefilled electronic cigarette.
512          (b) Beginning on July 1, 2019, there is levied a tax upon the following:
513          (i) an alternative nicotine product;
514          (ii) a nontherapeutic nicotine device substance; or
515          (iii) a prefilled nontherapeutic nicotine device.
516          (2) The rate of tax levied under Subsection (1) is:
517          (a) for a prefilled electronic cigarette or a prefilled nontherapeutic nicotine device, .86
518     multiplied by the manufacturer's sales price; or
519          (b) for an electronic cigarette substance, an alternative nicotine product, or a
520     nontherapeutic nicotine device substance, .29 multiplied by the manufacturer's sales price.
521          (3) (a) A manufacturer, jobber, distributor, wholesaler, retailer, consumer, or user shall
522     pay the tax levied under Subsection (1) at the time that an electronic cigarette substance, a
523     prefilled electronic cigarette, an alternative nicotine product, a nontherapeutic nicotine device
524     substance, or a prefilled nontherapeutic nicotine device is first received in the state.
525          (b) A manufacturer, jobber, distributor, wholesaler, retailer, consumer, or user may not
526     resell an electronic cigarette substance, a prefilled electronic cigarette, an alternative nicotine
527     product, a nontherapeutic nicotine device substance, or a prefilled nontherapeutic nicotine
528     device to another distributor, another retailer, or a consumer before paying the tax levied under
529     Subsection (1).
530          (4) (a) The manufacturer, jobber, distributor, wholesaler, retailer, consumer, or user
531     shall remit the taxes collected in accordance with this section to the commission.
532          (b) The commission shall deposit, for each fiscal year:
533          (i) the first $2,000,000 remitted in accordance with this section into the Electronic
534     Cigarette Substance and Other Nicotine Product Tax Restricted Account, created in Section
535     59-14-807; and
536          (ii) the balance of remittances received in accordance with this section into the General
537     Fund.
538          Section 16. Section 59-14-805 is enacted to read:
539          59-14-805. Remittance of tax -- Returns -- Invoice required -- Filing requirement--
540     Exception -- Penalty -- Overpayment.
541          (1) (a) The manufacturer, jobber, distributor, wholesaler, retailer, consumer, or user
542     that collects the tax imposed on an electronic cigarette substance, a prefilled electronic
543     cigarette, an alternative nicotine product, a nontherapeutic nicotine device substance, or a
544     prefilled nontherapeutic nicotine device shall remit to the commission, in an electronic format
545     approved by the commission:
546          (i) the tax collected in the previous calendar quarter; and
547          (ii) the quarterly tax return.
548          (b) The tax collected and the return are due on or before the last day of April, July,
549     October, and January.
550          (2) (a) A manufacturer, jobber, distributor, wholesaler, retailer, or any other person
551     selling an electronic cigarette substance, a prefilled electronic cigarette, an alternative nicotine
552     product, a nontherapeutic nicotine device substance, or a prefilled nontherapeutic nicotine
553     device to a person other than the ultimate consumer shall furnish the purchaser with an
554     itemized invoice showing the seller's name and address, the name and address of the purchaser,
555     the date of sale, the name and price of the product, and the discount, if any.
556          (b) The invoice shall show whether the price includes the tax.
557          (c) The seller and the purchaser shall retain copies of the invoice and make the invoice
558     available for inspection at the request of the commission or the commission's agent for a period
559     of three years following the sale.
560          (3) (a) A consumer that purchases an untaxed electronic cigarette substance, a prefilled
561     electronic cigarette, an alternative nicotine product, a nontherapeutic nicotine device substance,
562     or a prefilled nontherapeutic nicotine device for use or other consumption shall:
563          (i) file with the commission, on forms prescribed by the commission, a statement
564     showing the quantity and description of the item subject to tax under this part; and
565          (ii) pay the tax imposed by this part on that item.
566          (b) The consumer shall file the statement described in Subsection (3)(a) and pay the tax
567     due on or before the last day of the month immediately following the month during which the
568     consumer purchased an electronic cigarette substance, a prefilled electronic cigarette, an
569     alternative nicotine device substance, a nontherapeutic nicotine product, or a prefilled
570     nontherapeutic nicotine device.
571          (c) A consumer shall maintain records necessary to determine the amount of tax the
572     consumer is liable to pay under this part for a period of three years following the date the
573     statement required by this section was filed.
574          (4) A tourist who imports an electronic cigarette substance, a prefilled electronic
575     cigarette, an alternative nicotine product, a nontherapeutic nicotine device substance, or a
576     prefilled nontherapeutic nicotine device into the state does not need to file the statement
577     described in Subsection (3) or pay the tax if the item is for the tourist's own use or consumption
578     while in this state.
579          (5) In addition to the tax required by this part, a person shall pay a penalty as provided
580     in Section 59-1-401, plus interest at the rate and in the manner prescribed in Section 59-1-402,
581     if a person subject to this section fails to:
582          (a) pay the tax prescribed by this part;
583          (b) pay the tax on time; or
584          (c) file a return required by this part.
585          (6) An overpayment of a tax imposed by this part shall accrue interest at the rate and in
586     the manner prescribed in Section 59-1-402.
587          Section 17. Section 59-14-806 is enacted to read:
588          59-14-806. Refund of taxes paid -- Exemption for exported electronic cigarettes
589     and other nicotine products.
590          (1) When an electronic cigarette substance, a prefilled electronic cigarette, an
591     alternative nicotine product, a nontherapeutic nicotine device substance, or a prefilled
592     nontherapeutic nicotine device taxed under this chapter is sold and shipped to a regular dealer
593     in those articles in another state, the seller in this state shall be entitled to a refund of the actual
594     amount of the taxes paid, upon condition that the seller in this state:
595          (a) is a licensed dealer;
596          (b) signs an affidavit that the electronic cigarette substance, the prefilled electronic
597     cigarette, the alternative nicotine product, the nontherapeutic nicotine device substance, or the
598     prefilled nontherapeutic nicotine device was so sold and shipped;
599          (c) furnishes from the purchaser a written acknowledgment that the purchaser has
600     received the electronic cigarette substance, the prefilled electronic cigarette, the alternative
601     nicotine product, the nontherapeutic nicotine device substance, or the prefilled nontherapeutic
602     nicotine device; and
603          (d) reports the name and address of the purchaser.
604          (2) A wholesaler or distributor in this state that exports an electronic cigarette
605     substance, a prefilled electronic cigarette, an alternative nicotine product, a nontherapeutic
606     nicotine device substance, or a prefilled nontherapeutic nicotine device to a regular dealer in
607     another state shall be exempt from the payment of any tax upon the sale of the article upon
608     furnishing such proof of the sale and exportation as the commission may require.
609          Section 18. Section 59-14-807 is enacted to read:
610          59-14-807. Electronic Cigarette Substance and Other Nicotine Product Tax
611     Restricted Account.
612          (1) There is created within the General Fund a restricted account known as the
613     "Electronic Cigarette Substance and Other Nicotine Product Tax Restricted Account."
614          (2) The Electronic Cigarette Substance and Other Nicotine Product Tax Restricted
615     Account consists of:
616          (a) for each fiscal year, the first $2,000,000 collected from the tax imposed by Section
617     59-14-804; and
618          (b) amounts appropriated by the Legislature.
619          (3) (a) For each fiscal year, beginning with fiscal year 2019, and subject to
620     appropriation by the Legislature, the Division of Finance shall distribute money from the
621     Electronic Cigarette Substance and Other Nicotine Product Tax Restricted Account to the local
622     health departments as directed by the Department of Health, which shall determine the
623     allocation for each local health department using the formula created in accordance with
624     Section 26A-1-116.
625          (b) The local health departments shall use the money received in accordance with
626     Subsection (3)(a) for:
627          (i) the implementation of tobacco, electronic cigarette, and other nicotine product
628     cessation interventions;
629          (ii) enforcing:
630          (A) the provisions of Section 26-42-1103;
631          (B) the regulation provisions under Section 26-57-103; and
632          (C) the labeling requirement in Section 26-57-104; and
633          (iii) providing electronic cigarette and other nicotine product use prevention education
634     and other public health associated education activities.
635          Section 19. Section 76-10-101 is amended to read:
636     
Part 1. Cigarettes, Tobacco, Other Nicotine Substances, and Psychotoxic Chemical

637     
Substances

638          76-10-101. Definitions.
639          As used in this part:
640          (1) "Alternative nicotine product" means the same as that term is defined in Section
641     59-14-102.
642          (2) "Cigar" means a product that contains nicotine, is intended to be burned under
643     ordinary conditions of use, and consists of any roll of tobacco wrapped in leaf tobacco, or in
644     any substance containing tobacco, other than any roll of tobacco that is a cigarette as described
645     in Subsection [(2)] (3).
646          [(2)] (3) "Cigarette" means a product that contains nicotine, is intended to be burned
647     under ordinary conditions of use, and consists of:
648          (a) any roll of tobacco wrapped in paper or in any substance not containing tobacco; or
649          (b) any roll of tobacco wrapped in any substance containing tobacco which, because of
650     its appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to
651     be offered to, or purchased by, consumers as a cigarette described in Subsection [(2)] (3)(a).
652          [(3) "Electronic cigarette" means an electronic cigarette product, as defined in Section
653     59-14-802.]
654          (4) (a) "Electronic cigarette" means:
655          (i) an electronic device used to deliver or capable of delivering vapor containing
656     nicotine to an individual's respiratory system;
657          (ii) a component of the device described in Subsection (4)(a)(i); or
658          (iii) an accessory sold in the same package as the device described in Subsection
659     (4)(a)(i).
660          (b) "Electronic cigarette" includes an e-cigarette as that term is defined in Section
661     26-38-2.
662          (5) "Electronic cigarette product" means an electronic cigarette or electronic cigarette
663     substance.
664          (6) "Electronic cigarette substance" means any substance, including liquid containing
665     nicotine, used or intended for use in an electronic cigarette.
666          (7) (a) "Nontherapeutic nicotine device" means a device that:
667          (i) has a pressurized canister that is used to administer nicotine to the user through
668     inhalation or intranasally;
669          (ii) is not purchased with a prescription from a licensed physician; and
670          (iii) is not approved by the United States Food and Drug Administration as nicotine
671     replacement therapy.
672          (b) "Nontherapeutic nicotine device" includes a nontherapeutic nicotine inhaler or
673     nontherapeutic nicotine nasal spray.
674          (8) "Nontherapeutic nicotine device substance" means a cartridge that:
675          (a) contains nicotine;
676          (b) is used or intended to be used in a nontherapeutic nicotine device;
677          (c) is not purchased with a prescription from a licensed physician; and
678          (d) is not approved by the United States Food and Drug Administration as nicotine
679     replacement therapy.
680          (9) "Nontherapeutic nicotine product" means a nontherapeutic nicotine device or a
681     nontherapeutic nicotine device substance.
682          [(4)] (10) "Place of business" includes:
683          (a) a shop;
684          (b) a store;
685          (c) a factory;
686          (d) a public garage;
687          (e) an office;
688          (f) a theater;
689          (g) a recreation hall;
690          (h) a dance hall;
691          (i) a poolroom;
692          (j) a café;
693          (k) a cafeteria;
694          (l) a cabaret;
695          (m) a restaurant;
696          (n) a hotel;
697          (o) a lodging house;
698          (p) a streetcar;
699          (q) a bus;
700          (r) an interurban or railway passenger coach;
701          (s) a waiting room; and
702          (t) any other place of business.
703          [(5)] (11) "Smoking" means the possession of any lighted cigar, cigarette, pipe, or other
704     lighted smoking equipment.
705          Section 20. Section 76-10-104 is amended to read:
706          76-10-104. Providing any cigar, cigarette, electronic cigarette, alternative nicotine
707     product, nontherapeutic nicotine product, or tobacco to a minor -- Penalties.
708          (1) Any person who knowingly, intentionally, recklessly, or with criminal negligence
709     provides any cigar, cigarette, electronic cigarette product, alternative nicotine product,
710     nontherapeutic nicotine product, or tobacco in any form[,] to any person under 19 years of
711     age[,] is guilty of a class C misdemeanor on the first offense, a class B misdemeanor on the
712     second offense, and a class A misdemeanor on subsequent offenses.
713          (2) For purposes of this section "provides":
714          (a) includes selling, giving, furnishing, sending, or causing to be sent; and
715          (b) does not include the acts of the United States Postal Service or other common
716     carrier when engaged in the business of transporting and delivering packages for others or the
717     acts of a person, whether compensated or not, who transports or delivers a package for another
718     person without any reason to know of the package's content.
719          Section 21. Section 76-10-104.1 is amended to read:
720          76-10-104.1. Providing tobacco paraphernalia to minors -- Penalties.
721          (1) For purposes of this section:
722          (a) "Provides":
723          (i) includes selling, giving, furnishing, sending, or causing to be sent; and
724          (ii) does not include the acts of the United States Postal Service or other common
725     carrier when engaged in the business of transporting and delivering packages for others or the
726     acts of a person, whether compensated or not, who transports or delivers a package for another
727     person without any reason to know of the package's content.
728          (b) (i) "Tobacco paraphernalia"[:(i)] means any equipment, product, or material of any
729     kind which is used, intended for use, or designed for use to package, repackage, store, contain,
730     conceal, ingest, inhale, or otherwise introduce a cigar, electronic cigarette substance,
731     nontherapeutic nicotine device substance, cigarette, or tobacco in any form into the human
732     body[, including:].
733          (ii) "Tobacco paraphernalia" includes:
734          (A) metal, wooden, acrylic, glass, stone, plastic, or ceramic pipes with or without
735     screens, permanent screens, hashish heads, or punctured metal bowls;
736          (B) water pipes;
737          (C) carburetion tubes and devices;
738          (D) smoking and carburetion masks;
739          (E) roach clips: meaning objects used to hold burning material, such as a cigarette, that
740     has become too small or too short to be held in the hand;
741          (F) chamber pipes;
742          (G) carburetor pipes;
743          (H) electric pipes;
744          (I) air-driven pipes;
745          (J) chillums;
746          (K) bongs; and
747          (L) ice pipes or chillers[; and].
748          [(ii)] (iii) "Tobacco paraphernalia" does not include matches or lighters.
749          (2) (a) It is unlawful for a person to knowingly, intentionally, recklessly, or with
750     criminal negligence provide any tobacco paraphernalia to any person under 19 years of age.
751          (b) A person who violates this section is guilty of a class C misdemeanor on the first
752     offense and a class B misdemeanor on subsequent offenses.
753          Section 22. Section 76-10-105 is amended to read:
754          76-10-105. Buying or possessing a cigar, cigarette, electronic cigarette, or tobacco
755     by a minor -- Penalty -- Compliance officer authority -- Juvenile court jurisdiction.
756          (1) Any 18-year-old person who buys or attempts to buy, accepts, or has in the person's
757     possession any cigar, cigarette, electronic cigarette product, alternative nicotine product,
758     nontherapeutic nicotine product, or tobacco in any form is guilty of a class C misdemeanor and
759     subject to:
760          (a) a minimum fine or penalty of $60; and
761          (b) participation in a court-approved tobacco education program, which may include a
762     participation fee.
763          (2) Any person under the age of 18 who buys or attempts to buy, accepts, or has in the
764     person's possession any cigar, cigarette, electronic cigarette product, alternative nicotine
765     product, nontherapeutic nicotine product, or tobacco in any form is subject to the jurisdiction of
766     the juvenile court and subject to Section 78A-6-602, unless the violation is committed on
767     school property. If a violation under this section is adjudicated under Section 78A-6-117, the
768     minor may be subject to the following:
769          (a) a fine or penalty, in accordance with Section 78A-6-117; and
770          (b) participation in a court-approved tobacco education program, which may include a
771     participation fee.
772          (3) A compliance officer appointed by a board of education under Section 53A-3-402
773     may not issue a citation for a violation of this section committed on school property. A cited
774     violation committed on school property shall be addressed in accordance with Section
775     53A-11-911.
776          Section 23. Section 76-10-105.1 is amended to read:
777          76-10-105.1. Requirement of direct, face-to-face sale of cigarettes, tobacco,
778     electronic cigarettes, nontherapeutic nicotine product, or alternative nicotine product --
779     Minors not allowed in tobacco specialty shop -- Penalties.
780          (1) As used in this section:
781          (a) "Cigarette" means the same as that term is defined in Section 59-14-102.
782          (b) (i) "Face-to-face exchange" means a transaction made in person between an
783     individual and a retailer or retailer's employee.
784          (ii) "Face-to-face exchange" does not include a sale through a:
785          (A) vending machine; or
786          (B) self-service display.
787          (c) "Retailer" means a person who:
788          (i) sells a cigarette, tobacco, [or] an electronic cigarette product, an alternative nicotine
789     product, or a nontherapeutic nicotine product to an individual for personal consumption; or
790          (ii) operates a facility with a vending machine that sells a cigarette, tobacco, [or] an
791     electronic cigarette product, an alternative nicotine product, or a nontherapeutic nicotine
792     product.
793          (d) "Self-service display" means a display of a cigarette, tobacco, [or] an electronic
794     cigarette product, an alternative nicotine product, or a nontherapeutic nicotine product to which
795     the public has access without the intervention of a retailer or retailer's employee.
796          (e) "Tobacco" means any product, except a cigarette, made of or containing tobacco.
797          (f) "Tobacco specialty shop" means a retailer with a physical location that derives at
798     least 80% of its total sales from the sale of cigarettes, tobacco, [or] electronic [cigarettes]
799     cigarette products, alternative nicotine products, or nontherapeutic nicotine products.
800          (2) Except as provided in Subsection (3), a retailer may sell a cigarette, tobacco, [or] an
801     electronic cigarette product, an alternative nicotine product, or a nontherapeutic nicotine
802     product only in a face-to-face exchange.
803          (3) The face-to-face sale requirement in Subsection (2) does not apply to:
804          (a) a mail-order, telephone, or Internet sale made in compliance with Section
805     59-14-509;
806          (b) a sale from a vending machine or self-service display that is located in an area of a
807     retailer's facility:
808          (i) that is distinct and separate from the rest of the facility; and
809          (ii) where the retailer only allows an individual who complies with Subsection (4) to be
810     present; or
811          (c) a sale at a tobacco specialty shop.
812          (4) An individual who is less than 19 years old may not enter or be present at a tobacco
813     specialty shop unless the individual is:
814          (a) accompanied by a parent or legal guardian;
815          (b) present at the tobacco shop for a bona fide commercial purpose other than to
816     purchase a cigarette, tobacco, [or] an electronic cigarette product, an alternative nicotine
817     product, or a nontherapeutic nicotine product; or
818          (c) 18 years old or older and an active duty member of the United States Armed Forces,
819     as demonstrated by a valid, government-issued military identification card.
820          (5) A parent or legal guardian who accompanies, under Subsection (4)(a), an individual
821     into an area described in Subsection (3)(b), or into a tobacco specialty shop, may not allow the
822     individual to purchase a cigarette, tobacco, [or] an electronic cigarette product, an alternative
823     nicotine product, or a nontherapeutic nicotine product.
824          (6) A violation of Subsection (2) or (4) is a:
825          (a) class C misdemeanor on the first offense;
826          (b) class B misdemeanor on the second offense; and
827          (c) class A misdemeanor on the third and all subsequent offenses.
828          (7) An individual who violates Subsection (5) is guilty of providing tobacco to a minor
829     under Section 76-10-104.
830          (8) (a) Any ordinance, regulation, or rule adopted by the governing body of a political
831     subdivision of the state or by a state agency that affects the sale, placement, or display of
832     cigarettes, tobacco, [or] an electronic [cigarettes] cigarette product, an alternative nicotine
833     product, or a nontherapeutic nicotine product that is not essentially identical to the provisions
834     of this section and Section 76-10-102 is superseded.
835          (b) Subsection (8)(a) does not apply to the adoption or enforcement of a land use
836     ordinance by a municipal or county government.
837          Section 24. Effective date.
838          This bill takes effect on July 1, 2018.
839          Section 25. Coordinating H.B. 88 with H.B. 324 -- Substantive and technical
840     amendments.
841          If this H.B. 88 and H.B. 324, Tobacco Regulations Amendments, both pass and become
842     law, it is the intent of the Legislature that on July 1, 2018, the Office of Legislative Research
843     and General Counsel shall prepare the Utah Code database for publication by making the
844     following changes:
845          (1) modifying Subsection 10-8-41.6(1)(g) to read:
846          "[(c)] (g) "Tobacco product" means:
847          (i) any cigar, cigarette, or electronic cigarette product as those terms are defined in
848     Section 76-10-101;
849          (ii) a tobacco product as that term is defined in Section 59-14-102, including:
850          (A) chewing tobacco; or
851          (B) any substitute for a tobacco product, including flavoring or additives to tobacco;
852     [and]
853          (iii) tobacco paraphernalia as that term is defined in Section 76-10-104.1[.];
854          (iv) an alternative nicotine product as that term is defined in Section 59-14-102; and
855          (v) a nontherapeutic nicotine device as that term is defined in Section 59-14-102.";
856          (2) modifying Subsection 17-50-333(1)(g) to read:
857          "[(c)] (g) "Tobacco product" means:
858          (i) any cigar, cigarette, or electronic cigarette product as those terms are defined in
859     Section 76-10-101;
860          (ii) a tobacco product as that term is defined in Section 59-14-102, including:
861          (A) chewing tobacco; or
862          (B) any substitute for a tobacco product, including flavoring or additives to tobacco;
863     [and]
864          (iii) tobacco paraphernalia as that term is defined in Section 76-10-104.1[.];
865          (iv) an alternative nicotine product as that term is defined in Section 59-14-102; and
866          (v) a nontherapeutic nicotine device as that term is defined in Section 59-14-102.";
867          (3) modifying Subsection 26-62-102(8)(b) to read:
868          "(b) [under] Section 59-14-301 to sell [tobacco products] a tobacco product as that
869     term is defined in Section 59-14-102, at retail; or";
870          (4) modifying Subsection 26-62-102(9) to read:
871          "(9) "Tobacco product" means:
872          (a) a cigar, cigarette, or electronic cigarette product as those terms are defined in
873     Section 76-10-101;
874          (b) a tobacco product as that term is defined in Section 59-14-102, including:
875          (i) chewing tobacco; or
876          (ii) any substitute for a tobacco product, including flavoring or additives to tobacco;
877          (c) tobacco paraphernalia as that term is defined in Section 76-10-104.1;
878          (d) an alternative nicotine product as that term is defined in Section 59-14-102; and
879          (e) a nontherapeutic nicotine device as that term is defined in Section 59-14-102.";
880          (5) the amendments to Section 26-62-306, which is renumbered from Section
881     26-42-106, in H.B. 324 supersede the amendments to Section 26-42-106 in this bill; and
882          (6) the amendments to Subsection 76-10-105.1(1)(f) in H.B. 324 supersede the
883     amendments to Subsection 76-10-105.1(1)(f) in this bill.