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H.B. 375 Enrolled
Greg J. Curtis
AN ACT RELATING TO HEALTH; PROVIDING COORDINATING PROVISIONS FOR THE
TOBACCO MANUFACTURERS RESPONSIBILITY ACT; AND PROVIDING AN
EFFECTIVE DATE.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
26-1-30, as last amended by Chapters 196 and 375, Laws of Utah 1997
59-1-403, as last amended by Chapter 95, Laws of Utah 1998
59-14-401, as last amended by Chapter 1, Laws of Utah 1993, Second Special Session
63-2-206, as last amended by Chapter 234, Laws of Utah 1997
ENACTS:
26-44-301, Utah Code Annotated 1953
26-44-302, Utah Code Annotated 1953
26-44-303, Utah Code Annotated 1953
26-44-304, Utah Code Annotated 1953
26-44-305, Utah Code Annotated 1953
26-44-306, Utah Code Annotated 1953
26-44-307, Utah Code Annotated 1953
26-44-308, Utah Code Annotated 1953
59-14-407, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 26-1-30 is amended to read:
26-1-30. Powers and duties of department.
(1) The department shall:
(a) enter into cooperative agreements with the Department of Environmental Quality to
delineate specific responsibilities to assure that assessment and management of risk to human health
from the environment are properly administered; and
(b) consult with the Department of Environmental Quality and enter into cooperative
agreements, as needed, to ensure efficient use of resources and effective response to potential health
and safety threats from the environment, and to prevent gaps in protection from potential risks from
the environment to specific individuals or population groups.
(2) In addition to all other powers and duties of the department, it shall have and exercise
the following powers and duties:
(a) promote and protect the health and wellness of the people within the state;
(b) establish, maintain, and enforce rules necessary or desirable to carry out the provisions
and purposes of this title to promote and protect the public health or to prevent disease and illness;
(c) investigate and control the causes of epidemic, infectious, communicable, and other
diseases affecting the public health;
(d) provide for the detection, reporting, prevention, and control of communicable, infectious,
acute, chronic, or any other disease or health hazard that the department considers to be dangerous,
important, or likely to affect the public health;
(e) collect and report information on causes of injury, sickness, death, and disability and the
risk factors that contribute to the causes of injury, sickness, death, and disability within the state;
(f) collect, prepare, publish, and disseminate information to inform the public concerning
the health and wellness of the population, specific hazards, and risks that may affect the health and
wellness of the population and specific activities which may promote and protect the health and
wellness of the population;
(g) establish and operate programs necessary or desirable for the promotion or protection of
the public health and the control of disease or which may be necessary to ameliorate the major causes
of injury, sickness, death, and disability in the state, except that the programs shall not be established
if adequate programs exist in the private sector;
(h) establish, maintain, and enforce isolation and quarantine, and for this purpose only,
exercise physical control over property and individuals as the department finds necessary for the
protection of the public health;
(i) close theaters, schools, and other public places and forbid gatherings of people when
necessary to protect the public health;
(j) abate nuisances when necessary to eliminate sources of filth and infectious and
communicable diseases affecting the public health;
(k) make necessary sanitary and health investigations and inspections in cooperation with
local health departments as to any matters affecting the public health;
(l) establish laboratory services necessary to support public health programs and medical
services in the state;
(m) establish and enforce standards for laboratory services which are provided by any
laboratory in the state when the purpose of the services is to protect the public health;
(n) cooperate with the Labor Commission to conduct studies of occupational health hazards
and occupational diseases arising in and out of employment in industry, and make recommendations
for elimination or reduction of the hazards;
(o) cooperate with the local health departments, the Department of Corrections, the
Administrative Office of the Courts, the Division of Youth Corrections, and the Crime Victims
Reparations Board to conduct testing for HIV infection of convicted sexual offenders and any
victims of a sexual offense;
(p) investigate the cause of maternal and infant mortality;
(q) establish, maintain, and enforce a procedure requiring the blood of adult pedestrians and
drivers of motor vehicles killed in highway accidents be examined for the presence and concentration
of alcohol;
(r) provide the commissioner of public safety with monthly statistics reflecting the results
of the examinations provided for in Subsection (2)(q) and provide safeguards so that information
derived from the examinations is not used for a purpose other than the compilation of statistics
authorized in this subsection;
(s) establish qualifications for individuals permitted to draw blood pursuant to Section
41-6-44.10 , and to issue permits to individuals it finds qualified, which permits may be terminated
or revoked by the department;
(t) establish a uniform public health program throughout the state which includes continuous
service, employment of qualified employees, and a basic program of disease control, vital and health
statistics, sanitation, public health nursing, and other preventive health programs necessary or
desirable for the protection of public health;
(u) adopt rules and enforce minimum sanitary standards for the operation and maintenance
of:
(i) orphanages;
(ii) boarding homes;
(iii) summer camps for children;
(iv) lodging houses;
(v) hotels;
(vi) restaurants and all other places where food is handled for commercial purposes, sold,
or served to the public;
(vii) tourist and trailer camps;
(viii) service stations;
(ix) public conveyances and stations;
(x) public and private schools;
(xi) factories;
(xii) private sanatoria;
(xiii) barber shops;
(xiv) beauty shops;
(xv) physicians' offices;
(xvi) dentists' offices;
(xvii) workshops;
(xviii) industrial, labor, or construction camps;
(xix) recreational resorts and camps;
(xx) swimming pools, public baths, and bathing beaches;
(xxi) state, county, or municipal institutions, including hospitals and other buildings, centers,
and places used for public gatherings; and
(xxii) of any other facilities in public buildings and on public grounds;
(v) conduct health planning for the state;
(w) monitor the costs of health care in the state and foster price competition in the health
care delivery system;
(x) adopt rules for the licensure of health facilities within the state pursuant to Title 26,
Chapter 21, Health Care Facility [
(y) serve as the collecting agent, on behalf of the state, for the nursing facility assessment
fee imposed under Title 26, Chapter 35, Nursing Facility Assessment Act, and the [
provider assessment imposed under Chapter [
of the assessments consistent with Chapters 35 and [
(z) monitor and report to the Health Policy Commission created in Title 63C, Chapter 3,
Health Policy Commission, on the development of managed health care plans in rural areas of the
state, including the effect of the managed health care plans on costs, access, and availability of
providers located in the rural communities of the state; [
(aa) license the provision of child care[
(bb) provide a copy of the Master Settlement Agreement for review or purchase to any person
upon request and may charge a fee, established in accordance with Section 26-1-6 , to any person
who desires to purchase a copy of the Master Settlement Agreement; and
(cc) upon request from a tobacco product manufacturer, as defined in Section 26-44-202 ,
report to the manufacturer the quantities of the manufacturer's cigarettes reported to the department
under Section 59-1-403 .
Section 2. Section 26-44-301 is enacted to read:
26-44-301. Construction of this part.
This part sets forth definitions in the Master Settlement Agreement that are cross-referenced
in Part 2, Model Tobacco Settlement Statute. This part is intended for convenience only and may
not be construed as substantively or otherwise altering Part 2, Model Tobacco Settlement Statute,
or the Master Settlement Agreement. Where Part 2 instructs that a term be given the same definition
as that term is given in the Master Settlement Agreement, the definition shall be that set forth in the
Master Settlement Agreement, as it may be amended from time to time.
Section 3. Section 26-44-302 is enacted to read:
26-44-302. Formula for inflation adjustments.
The formula for calculating inflation adjustments, which is referenced in Subsection
26-44-202 (1), is set forth in Exhibit C of the Master Settlement Agreement as follows, with the
exception of Subsection (7) which is omitted:
Exhibit C
Formula For Calculating Inflation Adjustment
(1) Any amount that, in any given year, is to be adjusted for inflation pursuant to
this Exhibit, the "Base Amount," shall be adjusted upward by adding to such Base Amount
the Inflation Adjustment.
(2) The Inflation Adjustment shall be calculated by multiplying the Base Amount by
the Inflation Adjustment Percentage applicable in that year.
(3) The Inflation Adjustment Percentage applicable to payments due in the year
2000 shall be equal to the greater of 3% or the CPI%. For example, if the Consumer Price
Index for December 1999, as released in January 2000, is 2% higher than the Consumer
Price Index for December 1998, as released in January 1999, then the CPI% with respect
to a payment due in 2000 would be 2%. The Inflation Adjustment Percentage applicable
in the year 2000 would thus be 3%.
(4) The Inflation Adjustment Percentage applicable to payments due in any year
after 2000 shall be calculated by applying each year the greater of 3% or the CPI% on the
Inflation Adjustment Percentage applicable to payments due in the prior year. Continuing
the example in subsection (3) above, if the CPI% with respect to a payment due in 2001
is 6%, then the Inflation Adjustment Percentage applicable in 2001 would be 9.1800000%,
an additional 6% applied on the 3% Inflation Adjustment Percentage applicable in 2000,
and if the CPI% with respect to a payment due in 2002 is 4%, then the Inflation Adjustment
Percentage applicable in 2002 would be 13.5472000%, an additional 4% applied on the
9.1800000% Inflation Adjustment Percentage applicable in 2001.
(5) "Consumer Price Index" means the Consumer Price Index for All Urban
Consumers as published by the Bureau of Labor Statistics of the U.S. Department of
Labor, or other similar measures agreed to by the Settling States and the Participating
Manufacturers.
(6) The "CPI%" means the actual total percent change in the Consumer Price Index
during the calendar year immediately preceding the year in which the payment in question
is due.
Section 4. Section 26-44-303 is enacted to read:
26-44-303. Allocable Share.
(1) "Allocable Share," which is referenced is Subsection 26-44-202 (3), is defined in the
Master Settlement Agreement as follows:
"Allocable Share" means the percentage set forth for the State in question as listed in
Exhibit A hereto, without regard to any subsequent alteration or modification of such
State's percentage share agreed to or by or among any States; or, solely for the purpose of
calculating payments under subsection IX(c)(2) (and corresponding payments under
subsection IX(i)), the percentage disclosed for the State in question pursuant to subsection
IX(c)(2)(A) prior to June 30, 1999, without regard to any subsequent alteration or
modification of such State's percentage share agreed to by or among any States.
(2) The percentage set forth for Utah in Exhibit A to the Master Settlement Agreement is
0.4448869%.
(3) The percentage for calculating "Strategic Contribution Payments" to Utah under
subsection IX(c)(2) is to be determined by a three-member Allocation Committee in accordance with
Exhibit U of the Master Settlement Agreement.
Section 5. Section 26-44-304 is enacted to read:
26-44-304. Released Claims.
(1) "Released Claims," which is referenced in Subsection 26-44-202 (7), is defined in the
Master Settlement Agreement as follows:
"Released Claims" means:
(1) for past conduct, acts or omissions, including any damages incurred in the
future arising from such past conduct, acts or omissions, those Claims directly or indirectly
based on, arising out of or in any way related, in whole or in part, to (A) the use, sale,
distribution, manufacture, development, advertising, marketing or health effects of, (B)
the exposure to, or (C) research, statements, or warnings regarding, Tobacco Products,
including, but not limited to, the Claims asserted in the actions identified in Exhibit D, or
any comparable Claims that were, could be or could have been asserted now or in the future
in those actions or in any comparable action in federal, state or local court brought by a
Settling State or a Releasing Party, whether or not such Settling State or Releasing Party has
brought such action, except for claims not asserted in the actions identified in Exhibit D
for outstanding liability under existing licensing, or similar, fee laws or existing tax laws,
but not excepting claims for any tax liability of the Tobacco-Related Organizations or of any
Released Party with respect to such Tobacco-Related Organizations, which claims are
covered by the release and covenants set forth in this Agreement;
(2) for future conduct, acts or omissions, only those monetary Claims directly or
indirectly based on, arising out of or in any way related to, in whole or in part, the use of
or exposure to Tobacco Products manufactured in the ordinary course of business, including
without limitation any future Claims for reimbursement of health care costs allegedly
associated with the use of or exposure to Tobacco Products.
(2) Exhibit D is a list of the titles and docket numbers of the lawsuits brought by states
against tobacco manufacturers and the courts in which those lawsuits were filed as of the date that
the Master Settlement Agreement was entered into.
Section 6. Section 26-44-305 is enacted to read:
26-44-305. Releasing Parties.
"Releasing Parties," which is referenced in Subsection 26-44-202 (8), is defined in the Master
Settlement Agreement as follows:
(1) "Releasing Parties" means each Settling State and any of its past, present and
future agents, officials acting in their official capacities, legal representatives, agencies,
departments, commissions and divisions; and also means, to the full extent of the power
of the signatories hereto to release past, present and future claims, the following: (1) any
Settling State's subdivisions, political or otherwise, including, but not limited to,
municipalities, counties, parishes, villages, unincorporated districts and hospital districts,
public entities, public instrumentalities and public educational institutions; and (2) persons
or entities acting in a parens patriae, sovereign, quasi-sovereign, private attorney general,
qui tam, taxpayer, or any other capacity, whether or not any of them participate in this
settlement, (A) to the extent that any such person or entity is seeking relief on behalf of or
generally applicable to the general public in such Settling State or the people of the State,
as opposed solely to private or individual relief for separate and distinct injuries, or (B) to
the extent that any such entity, as opposed to an individual, is seeking recovery of
health-care expenses, other than premium or capitation payments for the benefit of present
or retired state employees, paid or reimbursed, directly or indirectly, by a Settling State.
Section 7. Section 26-44-306 is enacted to read:
26-44-306. Original participating manufacturer and related terms.
(1) "Original Participating Manufacturer," which is referenced in Subsection
26-44-202 (9)(a)(i), is defined in the Master Settlement Agreement as follows:
"Original Participating Manufacturer" means Brown & Williamson Tobacco
Corporation, Lorillard Tobacco Company, Phillip Morris Incorporated and R.J. Reynolds
Tobacco Company, and the respective successors of each of the foregoing. Except as
expressly providing in this Agreement, once an entity becomes an Original Participating
Manufacturer, such entity shall permanently retain the status of Original Participating
Manufacturer.
(2) Subsection II(mm) of the Master Settlement Agreement, which is referenced in
Subsection 26-44-202 (9)(a)(i), is the following definition of "relative market share":
"Relative market share" means an original participating manufacturer's respective
share, expressed as a percentage, of the total number of individual cigarettes shipped in or
to the 50 United States, the District of Columbia and Puerto Rico by all the original
participating manufacturers during the calendar year immediately preceding the year in
which the payment at issue is due, regardless of when such payment is made, as measured
by the original participating manufacturers' reports of shipments of cigarettes to
Management Science Associates, Inc., or a successor entity acceptable to both the original
participating manufacturers and a majority of those attorneys general who are both the
attorney general of a settling state and a member of the NAAG executive committee at the
time in question. A cigarette shipped by more than one participating manufacturer shall
be deemed to have been shipped solely by the first participating manufacturer to do so. For
purposes of the definition and determination of "relative market share," 0.09 ounces of "roll
your own" tobacco shall constitute one individual cigarette.
(3) Subsection II(z) of the Master Settlement Agreement, which is referenced in Subsection
26-44-202 (9)(a)(i), is the following definition of "market share":
"Market share" means a tobacco product manufacturer's respective share, expressed
as a percentage, of the total number of individual cigarettes sold in the 50 United States,
the District of Columbia and Puerto Rico during the applicable calendar year, as measured
by excise taxes collected by the federal government and, in the case of sales in Puerto Rico,
arbitrios de cigarillos collected by the Puerto Rico taxing authority. For purposes of the
definition and determination of "market share" with respect to calculations under
subsection IX(i), 0.09 ounces of "roll your own" tobacco shall constitute one individual
cigarette; for purposes of the definition and determination of "market share" with respect
to all other calculations, 0.0325 ounces of "roll your own" tobacco shall constitute one
individual cigarette.
Section 8. Section 26-44-307 is enacted to read:
26-44-307. Participating manufacturer.
(1) "Participating Manufacturer," which is referenced in Subsection 26-44-203 (1), is defined
in the Master Settlement Agreement as follows:
"Participating Manufacturer" means a Tobacco Product Manufacturer that is or
becomes a signatory to this Agreement, provided that (1) in the case of a Tobacco Product
Manufacturer that is not an Original Participating Manufacturer, such Tobacco Product
Manufacturer is bound by this Agreement and the Consent Decree, or, in any Settling State
that does not permit amendment of the Consent Decree, a Consent Decree containing terms
identical to those set forth in the Consent Decree, in all Settling States in which this
Agreement and the Consent Decree binds Original Participating Manufacturers, provided,
however, that such Tobacco Product Manufacturer need only become bound by the Consent
Decree in those Settling State in which the Settling State has filed a Released Claim against
it, and (2) in the case of a Tobacco Product Manufacturer that signs this Agreement after the
MSA Execution Date, such Tobacco Product Manufacturer, within a reasonable period of
time after signing this Agreement, makes any payments, including interest thereon at the
Prime Rate, that it would have been obligated to make in the intervening period had it been
a signatory as of the MSA Execution Date. "Participating Manufacturer" shall also include
the successor of a Participating Manufacturer. Except as expressly provided in this
Agreement, once an entity becomes a Participating Manufacturer such entity shall
permanently retain the status of Participating Manufacturer. Each Participating
Manufacturer shall regularly report its shipments of Cigarettes in or to the 50 United States,
the District of Columbia and Puerto Rico to Management Science Associates, Inc., or a
successor entity as set forth in subsection (mm). Solely for purposes of calculations
pursuant to subsection IX(d), a Tobacco Product Manufacturer that is not a signatory to this
Agreement shall be deemed to be a "Participating Manufacturer" if the Original Participating
Manufacturers unanimously consent in writing.
(2) Subsection IX(d) relates to Nonparticipating Manufacturer Adjustments.
Section 9. Section 26-44-308 is enacted to read:
26-44-308. Payments by subsequent participating manufacturers.
Section XI(i)(2) and IX(i)(3) of the Master Settlement Agreement, which are referenced in
Subsection 26-44-203(2)(b), involve payments by subsequent participating manufacturers and
providers as follows:
(1) A Subsequent Participating Manufacturer shall have payment obligations under
this Agreement only in the event that its Market Share in any calendar year exceeds the
greater of (1) its 1998 Market Share or (2) 125% of its 1997 Market Share, subject to the
provisions of subsection (i)(4). In the year following any such calendar year, such
Subsequent Participating Manufacturer shall make payments corresponding to those due in
that same following year from the Original Participating Manufacturers pursuant to
subsections VI(c), except for the payment due on March 31, 1999, IX(c)(1), IX(c)(2) and
IX(e). The amounts of such corresponding payments by a Subsequent Participating
Manufacturer are in addition to the corresponding payments that are due from the Original
Participating Manufacturers and shall be determined as described in subsection (2) and (3)
below. Such payments by a Subsequent Participating Manufacturer shall (A) be due on the
same dates as the corresponding payments are due from Original Participating
manufacturers; (B) be for the same purpose as such corresponding payments; and (C) be
paid, allocated and distributed in the same manner as such corresponding payments.
(2) The base amount due from a Subsequent Participating Manufacturer on any
given date shall be determined by multiplying (A) the corresponding base amount due on
the same date from all of the Original Participating Manufacturers, as such base amount is
specified in the corresponding subsection of this agreement and is adjusted by the Volume
Adjustment, except for the provisions of subsection (B)(ii) of Exhibit E, but before such
base amount is modified by any other adjustments, reductions or offsets, by (B) the quotient
produced by dividing (i) the result of (x) such Subsequent Participating Manufacturer's
Applicable Market Share, the applicable Market Share being that for the calendar year
immediately preceding the year in which the payment in question is due, minus (y) the
greater of (1) its 1998 Market Share or (2) 125% of its 1997 Market Share, by (ii) the
aggregate Market Shares of the Original Participating Manufacturers, the applicable Market
Shares being those for the calendar year immediately preceding the year in which the
payment in question is due.
(3) Any payment due from a Subsequent Participating Manufacturer under
subsections (1) and (2) above shall be subject, up to the full amount of such payment, to the
Inflation Adjustment, the Nonsettling States Reduction, the NPM Adjustment, the offset for
miscalculated or disputed payments described in subsection XI(i), the Federal Tobacco
Legislation Offset, the Litigating Releasing Parties Offset and the offsets for claims over
described in subsections XII(a)(4)(B) and XII(a)(8), to the extent that such adjustments,
reductions or offsets would apply to the corresponding payment due from the Original
Participating Manufacturers. Provided, however, that all adjustments and offsets to which
a Subsequent Participating Manufacturer is entitled may only be applied against payments
by such Subsequent Participating Manufacturer, if any, that are due within 12 months after
the date on which the Subsequent Participating Manufacturer becomes entitled to such
adjustment or makes the payment that entitles it to such offset, and shall not be carried
forward beyond that time even if not fully used.
(4) For purposes of this Subsection (i), the 1997, or 1998, as applicable, Market
Share, and 125% thereof, of those Subsequent Participating Manufacturers that either (A)
became a signatory to the Agreement more than 60 days after the MSA Execution Date or
(B) had no Market Share in 1997, or 1998, as applicable, shall equal zero.
Section 10. Section 59-1-403 is amended to read:
59-1-403. Confidentiality -- Penalty -- Application to property tax.
(1) Any tax commissioner, agent, clerk, or other officer or employee of the commission or
any representative, agent, clerk, or other officer or employee of any county, city, or town may not
divulge or make known in any manner any information gained by him from any return filed with the
commission. The officials charged with the custody of such returns are not required to produce any
of them or evidence of anything contained in them in any action or proceeding in any court, except:
(a) in accordance with judicial order;
(b) on behalf of the commission in any action or proceeding under this title or other law
under which persons are required to file returns with the commission;
(c) on behalf of the commission in any action or proceeding to which the commission is a
party; or
(d) on behalf of any party to any action or proceeding under this title when the report or facts
shown thereby are directly involved in such action or proceeding. In any event, the court may require
the production of, and may admit in evidence, any portion of reports or of the facts shown by them,
as are specifically pertinent to the action or proceeding.
(2) This section does not prohibit:
(a) a person or his duly authorized representative from receiving a copy of any return or
report filed in connection with that person's own tax;
(b) the publication of statistics as long as they are classified to prevent the identification of
particular reports or returns;
(c) the inspection by the attorney general or other legal representative of the state of the
report or return of any taxpayer:
(i) who brings action to set aside or review the tax based on such report or return;
(ii) against whom an action or proceeding is contemplated or has been instituted under this
title; or
(iii) against whom the state has an unsatisfied money judgment.
(3) (a) Notwithstanding Subsection (1) and for purposes of administration, the commission
may, by rule, provide for a reciprocal exchange of information with the United States Internal
Revenue Service or the revenue service of any other state.
(b) Notwithstanding Subsection (1) and for all taxes except individual income tax and
corporate franchise tax, the commission may, by rule, share information gathered from returns and
other written statements with the federal government, any other state, any of their political
subdivisions, or any political subdivision of this state, except as limited by Sections 59-12-209 and
59-12-210 , if these political subdivisions or the federal government grant substantially similar
privileges to this state.
(c) Notwithstanding Subsection (1) and for all taxes except individual income tax and
corporate franchise tax, the commission may, by rule, provide for the issuance of information
concerning the identity and other information of taxpayers who have failed to file tax returns or to
pay any tax due.
(d) Notwithstanding Subsection (1), the commission shall provide to the Solid and
Hazardous Waste Control Board executive secretary, as defined in Section 19-6-102 , any records,
returns, and other information filed with the commission under Title 59, Chapter 13, Motor and
Special Fuel Tax Act, or Section 19-6-410.5 regarding the environmental assurance program
participation fee, as requested by the executive secretary.
(e) (i) Notwithstanding Subsection (1), to provide information necessary for the
implementation of Title 26, Chapter 44, Tobacco Manufacturers Responsibility Act, the commission
shall annually report to the executive director of the Department of Health on or before March 1:
(A) the quantity of cigarettes, as defined in Section 26-44-202 , produced by each
manufacturer and reported to the commission for the previous calendar year under Section
59-14-407 ; and
(B) the quantity of cigarettes, as defined in Section 26-44-202 , produced by each
manufacturer for which a tax refund was granted during the previous calendar year under Section
59-14-401 and reported to the commission under Subsection 59-14-401 (1)(a)(v).
(ii) The records received by the executive director of the Department of Health under
Subsection (3)(e)(i) are protected records under Title 63, Chapter 2, Government Records Access
and Management Act.
(4) Reports and returns shall be preserved for at least three years and then the commission
may destroy them.
(5) Any person who violates this section is guilty of a class A misdemeanor. If the offender
is an officer or employee of the state, he shall be dismissed from office and be disqualified from
holding public office in this state for a period of five years thereafter.
(6) This part does not apply to the property tax.
Section 11. Section 59-14-401 is amended to read:
59-14-401. Refund of taxes paid -- Exemption for exported cigarettes and tobacco
products.
(1) (a) When any cigarette or tobacco product taxed under this chapter is sold and shipped
to a regular dealer in those articles in another state, the seller in this state shall be entitled to a refund
of the actual amount of the taxes paid, upon condition that the seller in this state:
(i) is a licensed dealer [
(ii) signs an affidavit that the [
shipped[
(iii) furnishes from the purchaser a written acknowledgment that [
received [
(A) the cigarette or tobacco product; and
(B) the amount of [
(iv) reports the name and address of the purchaser[
(v) reports the name of the manufacturer of the cigarette, as defined under Section
26-44-202 , reported under Section 59-14-407 if the cigarette is manufactured by a manufacturer
required to place funds into escrow under Section 26-44-203 .
(b) The taxes shall be refunded in the manner provided in Subsection 59-14-206 (2) for
unused stamps.
(2) Wholesalers or distributors in this state who export taxable cigarettes and tobacco
products to a regular dealer in another state shall be exempt from the payment of any tax upon the
sale of the articles upon furnishing such proof of the sale and exportation as the commission may
require.
Section 12. Section 59-14-407 is enacted to read:
59-14-407. Reporting of manufacturer name.
(1) As used in this section:
(a) "Cigarette" has the same meaning as defined in Section 26-44-202 .
(b) "Tobacco product manufacturer" has the same meaning as defined in Section 26-44-202 .
(2) Any manufacturer, distributor, wholesaler, or retail dealer who under Section 59-14-205
affixes a stamp to an individual package or container of cigarettes manufactured by a tobacco
product manufacturer required to place funds into escrow under Section 26-44-203 shall report
annually to the commission:
(a) the quantity of cigarettes in the package or container; and
(b) the name of the manufacturer of the cigarettes.
(3) Any manufacturer, distributor, wholesaler, retail dealer, or other person who is required
to pay the tax levied under Part 3, Tobacco Products, on a tobacco product defined as a cigarette
under Section 26-44-202 and manufactured by a tobacco product manufacturer required to place
funds into escrow under Section 26-44-203 shall report annually to the commission:
(a) the quantity of cigarettes upon which the tax is levied; and
(b) the name of the manufacturer of each cigarette.
(4) The reports under Subsections (2) and (3) shall be made no later than January 31 for the
preceding calendar year pursuant to rules established by the commission in accordance with Title
63, Chapter 46a, Utah Administrative Rulemaking Act.
Section 13. Section 63-2-206 is amended to read:
63-2-206. Sharing records.
(1) A governmental entity may provide a record that is private, controlled, or protected to
another governmental entity, a government-managed corporation, a political subdivision, the federal
government, or another state if the requesting entity:
(a) serves as a repository or archives for purposes of historical preservation, administrative
maintenance, or destruction;
(b) enforces, litigates, or investigates civil, criminal, or administrative law, and the record
is necessary to a proceeding or investigation;
(c) is authorized by state statute to conduct an audit and the record is needed for that
purpose; or
(d) is one that collects information for presentence, probationary, or parole purposes.
(2) A governmental entity may provide a private or controlled record or record series to
another governmental entity, a political subdivision, a government-managed corporation, the federal
government, or another state if the requesting entity provides written assurance:
(a) that the record or record series is necessary to the performance of the governmental
entity's duties and functions;
(b) that the record or record series will be used for a purpose similar to the purpose for which
the information in the record or record series was collected or obtained; and
(c) that the use of the record or record series produces a public benefit that outweighs the
individual privacy right that protects the record or record series.
(3) A governmental entity may provide a record or record series that is protected under
Subsection 63-2-304 (1) or (2) to another governmental entity, a political subdivision, a
government-managed corporation, the federal government, or another state if:
(a) the record is necessary to the performance of the requesting entity's duties and functions;
or
(b) the record will be used for a purpose similar to the purpose for which the information in
the record or record series was collected or obtained.
(4) (a) A governmental entity shall provide a private, controlled, or protected record to
another governmental entity, a political subdivision, a government-managed corporation, the federal
government, or another state if the requesting entity:
(i) is entitled by law to inspect the record;
(ii) is required to inspect the record as a condition of participating in a state or federal
program or for receiving state or federal funds; or
(iii) is an entity described in Subsection 63-2-206 (1)(a), (b), (c), or (d).
(b) Subsection (4)(a)(iii) applies only if the record is a record described in Subsection
63-2-304 (4).
(5) Before disclosing a record or record series under this section to another governmental
entity, another state, the United States, or a foreign government, the originating governmental entity
shall:
(a) inform the recipient of the record's classification and the accompanying restrictions on
access; and
(b) if the recipient is not a governmental entity to which this chapter applies, obtain the
recipient's written agreement which may be by mechanical or electronic transmission that it will
abide by those restrictions on access unless a statute, federal regulation, or interstate agreement
otherwise governs the sharing of the record or record series.
(6) A governmental entity may disclose a record to another state, the United States, or a
foreign government for the reasons listed in Subsections (1), (2), and (3) without complying with the
procedures of Subsection (2) or (5) if disclosure is authorized by executive agreement, treaty, federal
statute, compact, federal regulation, or state statute.
(7) A governmental entity receiving a record under this section is subject to the same
restrictions on disclosure of the material as the originating entity.
(8) Notwithstanding any other provision of this section, if a more specific court rule or order,
state statute, federal statute, or federal regulation prohibits or requires sharing information, that rule,
order, statute, or federal regulation controls.
(9) The following records may not be shared under this section:
(a) except as provided under Section 59-1-403 , records held by the State Tax Commission
that pertain to any person and that are gathered under authority of Title 59, Revenue and Taxation;
(b) records held by the Division of Oil, Gas and Mining that pertain to any person and that
are gathered under authority of Title 40, Chapter 6, Board and Division of Oil, Gas and Mining; and
(c) records of publicly funded libraries as described in Subsection 63-2-302 (1)(c).
(10) Records that may evidence or relate to a violation of law may be disclosed to a
government prosecutor, peace officer, or auditor.
Section 14. Effective date.
(1) It is the intent of the Legislature that this bill only take effect if H.B. 132, Tobacco
Manufacturers Responsibility Act, is approved by both houses during the 1999 General Session and
is either signed by the governor, not vetoed by the governor within the constitutional time limit of
Utah Constitution Article VII, Section 8, or, in the case of a veto, the veto is overridden.
(2) If Subsection (1) is satisfied, this act takes effect on July 1, 1999.
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