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S.B. 200

             1     

REDUCED CIGARETTE IGNITION

             2     
PROPENSITY

             3     
2007 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Ed Mayne

             6     
House Sponsor: Todd E. Kiser

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill enacts The Reduced Cigarette Ignition Propensity and Firefighters Protection
             11      Act within the Utah Fire Prevention and Safety Act of the Public Safety Code.
             12      Highlighted Provisions:
             13          This bill:
             14          .    defines terms;
             15          .    creates test methods and performance standards for cigarettes;
             16          .    requires certification and product marking to ensure compliance with the act;
             17          .    creates a Reduced Cigarette Ignition Propensity and Firefighter Protection
             18      Enforcement restricted account within the General Fund;
             19          .    requires marking of cigarette packages;
             20          .    establishes penalties for violations of the act;
             21          .    gives the state fire marshal and the State Tax Commission enforcement powers;
             22          .    gives the attorney general and the state fire marshal the power to inspect records;
             23          .    clarifies application to sales outside of the state;
             24          .    establishes state preemption of local ordinances; and
             25          .    provides that the state law is preempted by any subsequent federal law that may
             26      preempt state law.
             27      Monies Appropriated in this Bill:


             28          None
             29      Other Special Clauses:
             30          This bill takes effect on July 1, 2008.
             31      Utah Code Sections Affected:
             32      ENACTS:
             33          53-7-401, Utah Code Annotated 1953
             34          53-7-402, Utah Code Annotated 1953
             35          53-7-403, Utah Code Annotated 1953
             36          53-7-404, Utah Code Annotated 1953
             37          53-7-405, Utah Code Annotated 1953
             38          53-7-406, Utah Code Annotated 1953
             39          53-7-407, Utah Code Annotated 1953
             40          53-7-408, Utah Code Annotated 1953
             41          53-7-409, Utah Code Annotated 1953
             42          53-7-410, Utah Code Annotated 1953
             43          53-7-411, Utah Code Annotated 1953
             44     
             45      Be it enacted by the Legislature of the state of Utah:
             46          Section 1. Section 53-7-401 is enacted to read:
             47     
Part 4. The Reduced Cigarette Ignition Propensity and Firefighter Protection Act

             48          53-7-401. Title.
             49          This part is known as the "The Reduced Cigarette Ignition Propensity and Firefighter
             50      Protection Act."
             51          Section 2. Section 53-7-402 is enacted to read:
             52          53-7-402. Definitions.
             53          As used in this part:
             54          (1) "Agent" means any person authorized by the State Tax Commission to purchase
             55      and affix stamps on packages of cigarettes.
             56          (2) "Cigarette" means any roll for smoking made wholly or in part of tobacco,
             57      irrespective of size or shape, and whether or not such tobacco is flavored, adulterated, or mixed
             58      with any other ingredient, the wrapper or cover of which is made of paper or any other


             59      substance or material except tobacco.
             60          (3) "Manufacturer" means:
             61          (a) any entity which:
             62          (i) manufactures or otherwise produces cigarettes to be sold in the state;
             63          (ii) causes cigarettes to be manufactured or produced anywhere with the intent to sell in
             64      the state; or
             65          (iii) manufactures or otherwise produces cigarettes or cause cigarettes to be
             66      manufactured or produced with the intent to sell in the United States through an importer;
             67          (b) the first purchaser anywhere that intends to resell in the United States cigarettes
             68      manufactured anywhere that the original manufacturer or maker does not intend to be sold in
             69      the United States; or
             70          (c) any entity that becomes a successor of an entity described in Subsection (3)(a) or
             71      (3)(b).
             72          (4) "Quality control and quality assurance program" means the laboratory procedures
             73      implemented to ensure that operator bias, systematic, and nonsystematic methodological errors,
             74      and equipment related problems do not affect the results of the testing. Such a program ensures
             75      that the testing repeatability remains within the required repeatability values stated in
             76      Subsection 53-7-403 (2)(f) for all test trials used to certify cigarettes in accordance with this
             77      part.
             78          (5) "Repeatability" means the range of values within which the repeat results of
             79      cigarette test trials from a single laboratory will fall 95% of the time.
             80          (6) "Retail dealer" means any person, other than a manufacturer or wholesale dealer,
             81      engaged in selling cigarettes or tobacco products.
             82          (7) "Sale":
             83          (a) means any transfer of title or possession or both, exchange or barter, conditional or
             84      otherwise, in any manner or by any means whatever or any agreement therefore; and
             85          (b) includes, in addition to cash and credit sales, the giving of cigarettes as samples,
             86      prizes, or gifts, and the exchanging of cigarettes for any consideration other than money.
             87          (8) "Sell" means to sell, or to offer or agree to sell.
             88          (9) "Wholesale dealer" means:
             89          (a) any person who sells cigarettes or tobacco products to retail dealers or other persons


             90      for purposes of resale; and
             91          (b) any person who owns, operates, or maintains one or more cigarette or tobacco
             92      product vending machines in, at or upon premises owned or occupied by any other person.
             93          Section 3. Section 53-7-403 is enacted to read:
             94          53-7-403. Test method and performance standard.
             95          (1) Except as provided in Subsection (8), no cigarettes may be sold or offered for sale
             96      in this state or offered for sale or sold to persons located in this state unless:
             97          (a) the cigarettes have been tested in accordance with the test method required by this
             98      section;
             99          (b) the cigarettes meet the performance standard specified in this section;
             100          (c) a written certification has been filed by the manufacturer with the state fire marshal
             101      in accordance with Section 53-7-404 ; and
             102          (d) the cigarettes have been marked in accordance with Section 53-7-405 .
             103          (2) (a) Testing of cigarettes shall be conducted in accordance with the American
             104      Society of Testing and Materials ("ASTM") standard E2187-04, "Standard Test Method for
             105      Measuring the Ignition Strength of Cigarettes."
             106          (b) Testing shall be conducted on ten layers of filter paper.
             107          (c) No more than 25% of the cigarettes tested in a test trial in accordance with this
             108      section shall exhibit full-length burns. Forty replicate tests shall comprise a complete test trial
             109      for each cigarette tested.
             110          (d) The performance standard required by this section shall only be applied to a
             111      complete test trial.
             112          (e) Written certifications shall be based upon testing conducted by a laboratory that has
             113      been accredited pursuant to standard ISO/IEC 17025 of the International Organization for
             114      Standardization ("ISO"), or other comparable accreditation standard required by the state fire
             115      marshal.
             116          (f) Laboratories conducting testing in accordance with this section shall implement a
             117      quality control and quality assurance program that includes a procedure that will determine the
             118      repeatability of the testing results. The repeatability value shall be no greater than 0.19.
             119          (g) This section does not require additional testing if cigarettes are tested consistent
             120      with this part for any other purpose.


             121          (h) Testing performed or sponsored by the state fire marshal to determine a cigarette's
             122      compliance with the performance standard required shall be conducted in accordance with this
             123      section.
             124          (3) Each cigarette listed in a certification submitted pursuant to Section 53-7-404 that
             125      uses lowered permeability bands in the cigarette paper to achieve compliance with the
             126      performance standard set forth in this section shall have at least two nominally identical bands
             127      on the paper surrounding the tobacco column. At least one complete band shall be located at
             128      least 15 millimeters from the lighting end of the cigarette. For cigarettes on which the bands
             129      are positioned by design, there shall be at least two bands fully located at least 15 millimeters
             130      from the lighting end and 10 millimeters from the filter end of the tobacco column, or 10
             131      millimeters from the labeled end of the tobacco column for nonfiltered cigarettes.
             132          (4) A manufacturer of a cigarette that the state fire marshal determines cannot be tested
             133      in accordance with the test method prescribed in Subsection (2)(a) shall propose a test method
             134      and performance standard for the cigarette to the state fire marshal. Upon approval of the
             135      proposed test method and a determination by the state fire marshal that the performance
             136      standard proposed by the manufacturer is equivalent to the performance standard prescribed in
             137      Subsection (2)(c), the manufacturer may employ such test method and performance standard to
             138      certify such cigarette pursuant to Section 53-7-404 . If the state fire marshal determines that
             139      another state has enacted reduced cigarette ignition propensity standards that include a test
             140      method and performance standard that are the same as those contained in this part, and the state
             141      fire marshal finds that the officials responsible for implementing those requirements have
             142      approved the proposed alternative test method and performance standard for a particular
             143      cigarette proposed by a manufacturer as meeting the fire safety standards of that state's law or
             144      regulation under a legal provision comparable to this section, then the state fire marshal shall
             145      authorize that manufacturer to employ the alternative test method and performance standard to
             146      certify that cigarette for sale in this state, unless the state fire marshal demonstrates a
             147      reasonable basis why the alternative test should not be accepted under this part. All other
             148      applicable requirements of this section shall apply to the manufacturer.
             149          (5) Each manufacturer shall maintain copies of the reports of all tests conducted on all
             150      cigarettes offered for sale for a period of three years, and shall make copies of these reports
             151      available to the state fire marshal and the attorney general upon written request. Any


             152      manufacturer who fails to make copies of these reports available within 60 days of receiving a
             153      written request shall be subject to a civil penalty not to exceed $10,000 for each day after the
             154      sixtieth day that the manufacturer does not make the copies available.
             155          (6) The state fire marshal may adopt a subsequent ASTM Standard Test Method for
             156      Measuring the Ignition Strength of Cigarettes upon a finding that the subsequent method does
             157      not result in a change in the%age of full-length burns exhibited by any tested cigarette when
             158      compared to the%age of full-length burns the same cigarette would exhibit when tested in
             159      accordance with ASTM Standard E2187-04 and the performance standard in Subsection (2)(c).
             160          (7) The state fire marshal shall review the effectiveness of this section and report every
             161      three years to the Legislature the state fire marshal's findings and, if appropriate,
             162      recommendations for legislation to improve the effectiveness of this section. The report and
             163      legislative recommendations shall be submitted no later than November 1, 2011 and every
             164      November 1 of each three-year period thereafter.
             165          (8) The requirements of Subsection (1) shall not prohibit wholesale or retail dealers
             166      from selling their existing inventory of cigarettes on or after the effective date of this part if the
             167      wholesale or retail dealer can establish that state tax stamps were affixed to the cigarettes prior
             168      to the effective date, and if the wholesale or retail dealer can establish that the inventory was
             169      purchased prior to the effective date in comparable quantity to the inventory purchased during
             170      the same period of the prior year.
             171          (9) This part shall be implemented in accordance with the implementation and
             172      substance of the New York Fire Safety Standards for Cigarettes.
             173          Section 4. Section 53-7-404 is enacted to read:
             174          53-7-404. Certification and product change.
             175          (1) Each manufacturer shall submit to the state fire marshal a written certification
             176      attesting that:
             177          (a) each cigarette listed in the certification has been tested in accordance with Section
             178      53-7-403 ; and
             179          (b) each cigarette listed in the certification meets the performance standard set forth in
             180      Subsection 53-7-403 (2)(c).
             181          (2) Each cigarette listed in the certification shall be described with the following
             182      information:


             183          (a) brand, or trade name on the package;
             184          (b) style, such as light or ultra light;
             185          (c) length in millimeters;
             186          (d) circumference in millimeters;
             187          (e) flavor, such as menthol or chocolate, if applicable;
             188          (f) filter or nonfilter;
             189          (g) package description, such as soft pack or box;
             190          (h) marking approved in accordance with Section 53-7-405 ;
             191          (i) the name, address, and telephone number of the laboratory, if different than the
             192      manufacturer that conducted the test; and
             193          (j) the date that the testing occurred.
             194          (3) The certifications shall be made available to the attorney general for purposes
             195      consistent with this part and the State Tax Commission for the purposes of ensuring
             196      compliance with this section.
             197          (4) Each cigarette certified under this section shall be recertified every three years.
             198          (5) For each cigarette listed in a certification, a manufacturer shall pay to the state fire
             199      marshal a $250 fee. The state fire marshal is authorized to annually adjust this fee to ensure it
             200      defrays the actual costs of the processing, testing, enforcement, and oversight activities
             201      required by this part.
             202          (6) (a) Beginning July 1, 2008, there is created a restricted account within the General
             203      Fund called the "Reduced Cigarette Ignition Propensity and Firefighter Protection Act
             204      Enforcement Account."
             205          (b) The account created in Subsection (6)(a) shall consist of:
             206          (i) all certification fees submitted by manufacturers; and
             207          (ii) interest on account monies.
             208          (c) Upon appropriations from the Legislature, monies from the account created in
             209      Subsection (6)(a) shall be used by the state fire marshal solely to support processing, testing,
             210      enforcement, and oversight activities under this part.
             211          (7) (a) If a manufacturer has certified a cigarette pursuant to this section, and thereafter
             212      makes any change to the certified cigarette that is likely to alter its compliance with the reduced
             213      cigarette ignition propensity standards required by this part, that cigarette shall not be sold or


             214      offered for sale in this state until the manufacturer:
             215          (i) retests the cigarette in accordance with the testing standards set forth in Section
             216      53-7-403 ; and
             217          (ii) maintains records of that retesting as required by Section 53-7-403 .
             218          (b) Any altered cigarette which does not meet the performance standard set forth in
             219      Section 53-7-403 may not be sold in this state.
             220          Section 5. Section 53-7-405 is enacted to read:
             221          53-7-405. Marking of cigarette packaging.
             222          (1) Cigarettes that are certified by a manufacturer in accordance with Section 53-7-404
             223      shall be marked to indicate compliance with the requirements of Section 53-7-403 . The
             224      marking shall be in eight-point type or larger and consist of:
             225          (a) modification of the product UPC Code to include a visible mark printed at or
             226      around the area of the UPC Code, which may include alphanumeric or symbolic characters
             227      permanently stamped, engraved, embossed, or printed in conjunction with the UPC;
             228          (b) any visible combination of alphanumeric or symbolic characters permanently
             229      stamped, engraved, or embossed upon the cigarette package or cellophane wrap; or
             230          (c) printed, stamped, engraved, or embossed text that indicates that the cigarettes meet
             231      the standards of this part.
             232          (2) A manufacturer shall use only one marking, and shall apply this marking uniformly
             233      for all packages marketed by the manufacturer, including:
             234          (a) packs;
             235          (b) cartons;
             236          (c) cases; and
             237          (d) any brands marketed by that manufacturer.
             238          (3) The manufacturer shall notify the state fire marshal of the marking that it has
             239      selected in accordance with Subsection (2).
             240          (4) Prior to the certification of any cigarette, a manufacturer shall present its proposed
             241      marking to the state fire marshal for approval. Upon receipt of the request, the state fire
             242      marshal shall approve or disapprove the marking offered, except that the state fire marshal shall
             243      approve any marking in use and approved for sale in New York pursuant to the New York Fire
             244      Safety Standards for Cigarettes. Proposed markings shall be considered approved if the state


             245      fire marshal fails to act within ten business days of receiving a request for approval.
             246          (5) No manufacturer shall modify its approved marking unless the modification has
             247      been approved by the state fire marshal in accordance with this section.
             248          (6) (a) Manufacturers certifying cigarettes in accordance with Section 53-7-404 shall
             249      provide:
             250          (i) a copy of the certifications to all wholesale dealers and agents to which they sell
             251      cigarettes; and
             252          (ii) sufficient copies of an illustration of the package marking utilized by the
             253      manufacturer pursuant to this section for each retail dealer to which the wholesale dealers or
             254      agents sell cigarettes.
             255          (b) Wholesale dealers and agents shall provide a copy of the package markings
             256      received from manufacturers under Subsection (6)(a) to all retail dealers to which they sell
             257      cigarettes.
             258          (c) Wholesale dealers, agents, and retail dealers shall permit the state fire marshal, the
             259      State Tax Commission, the attorney general, and their employees to inspect markings of
             260      cigarette packaging marked in accordance with this section.
             261          Section 6. Section 53-7-406 is enacted to read:
             262          53-7-406. Penalties.
             263          (1) (a) Except as provided in Subsection (1)(b), a manufacturer, wholesale dealer,
             264      agent, or any other person or entity who knowingly sells or offers to sell cigarettes, other than
             265      through retail sale, in violation of Section 53-7-403 :
             266          (i) for a first offense shall be liable for a civil penalty not to exceed $10,000 per each
             267      sale of cigarettes; and
             268          (ii) for a subsequent offense shall be liable for a civil penalty not to exceed $25,000 per
             269      each sale of such cigarettes.
             270          (b) A penalty imposed under Subsection (1)(a) may not exceed $100,000 during any
             271      30-day period against any one entity described in Subsection (1).
             272          (2) (a) Except as provided in Subsection (2)(b), a retail dealer who knowingly sells
             273      cigarettes in violation of Section 53-7-403 shall:
             274          (i) for a first offense for each sale or offer for sale of cigarettes, if the total number of
             275      cigarettes sold or offered for sale:


             276          (A) does not exceed 1,000 cigarettes, be liable for a civil penalty not to exceed $500
             277      for each sale or offer of sale; and
             278          (B) does exceed 1,000 cigarettes, be liable for a civil penalty not to exceed $1,000 for
             279      each sale or offer of sale; and
             280          (ii) for a subsequent offense, if the total number of cigarettes sold or offered for sale:
             281          (A) does not exceed 1,000 cigarettes, be liable for a civil penalty not to exceed $2,000
             282      for each sale or offer of sale; and
             283          (B) does exceed 1,000 cigarettes, be liable for a civil penalty not to exceed $5,000 for
             284      each sale or offer of sale.
             285          (b) A penalty imposed under Subsection (2)(a) against any retail dealer shall not
             286      exceed $25,000 during a 30-day period.
             287          (3) In addition to any penalty prescribed by law, any corporation, partnership, sole
             288      proprietor, limited partnership, or association engaged in the manufacture of cigarettes that
             289      knowingly makes a false certification pursuant to Section 53-7-404 shall, for each false
             290      certification:
             291          (a) for a first offense, be liable for a civil penalty of at least $75,000; and
             292          (b) for a subsequent offense, be liable for a civil penalty not to exceed $250,000.
             293          (4) Any person violating any other provision in this part shall be liable for a civil
             294      penalty for each violation:
             295          (a) for a first offense, not to exceed $1,000; and
             296          (b) for a subsequent offense, not to exceed $5,000.
             297          (5) Any cigarettes that have been sold or offered for sale that do not comply with the
             298      performance standard required by Section 53-7-403 shall be subject to forfeiture under Title 24,
             299      Chapter 1, Utah Uniform Forfeiture Procedures Act, and, upon being forfeited, shall be
             300      destroyed, provided, however, that prior to the destruction of any cigarette seized pursuant to
             301      this part, the true holder of the trademark rights in the cigarette brand shall be permitted to
             302      inspect the cigarette.
             303          (6) In addition to any other remedy provided by law, the state fire marshal or attorney
             304      general may file an action in district court for a violation of this part, including petitioning for
             305      injunctive relief or to recover any costs or damages suffered by the state because of a violation
             306      of this part, including enforcement costs relating to the specific violation and attorney fees.


             307      Each violation of this part or of rules or regulations adopted under this part constitutes a
             308      separate civil violation for which the state fire marshal or attorney general may obtain relief.
             309          Section 7. Section 53-7-407 is enacted to read:
             310          53-7-407. Implementation.
             311          (1) The state fire marshal may promulgate rules and regulations, pursuant to Title 63,
             312      Chapter 46b, Utah Administrative Rulemaking Act, necessary to effectuate the purposes of this
             313      part.
             314          (2) The State Tax Commission in the regular course of conducting inspections of
             315      wholesale dealers, agents, and retail dealers, as authorized under Title 59, Chapter 14, Cigarette
             316      and Tobacco Tax and Licensing Act, may inspect cigarettes to determine if the cigarettes are
             317      marked as required by Section 53-7-405 . If the cigarettes are not marked as required, the State
             318      Tax Commission shall notify the state fire marshal.
             319          Section 8. Section 53-7-408 is enacted to read:
             320          53-7-408. Inspection.
             321          To enforce the provisions of this part, the attorney general and the state fire marshal are
             322      hereby authorized to examine the books, papers, invoices, and other records of any person in
             323      possession, control, or occupancy of any premises where cigarettes are placed, stored, sold, or
             324      offered for sale, as well as the stock of cigarettes on the premises. Every person in the
             325      possession, control, or occupancy of any premises where cigarettes are placed, sold, or offered
             326      for sale, is hereby directed and required to give the attorney general and the state fire marshal
             327      the means, facilities, and opportunity for the examinations authorized by this section.
             328          Section 9. Section 53-7-409 is enacted to read:
             329          53-7-409. Sale outside of Utah.
             330          Nothing in this part shall be construed to prohibit any person or entity from
             331      manufacturing or selling cigarettes that do not meet the requirements of Section 53-7-403 if the
             332      cigarettes are or will be stamped for sale in another state or are packaged for sale outside the
             333      United States and that person or entity has taken reasonable steps to ensure that such cigarettes
             334      will not be sold or offered for sale to persons located in this state.
             335          Section 10. Section 53-7-410 is enacted to read:
             336          53-7-410. Preemption.
             337          This part shall be repealed if a federal reduced cigarette ignition propensity standard


             338      that preempts this part is adopted and becomes effective.
             339          Section 11. Section 53-7-411 is enacted to read:
             340          53-7-411. Local regulation.
             341          Notwithstanding any other provision of law, a political subdivision of this state may
             342      neither enact nor enforce any ordinance or other local law or regulation conflicting with, or
             343      preempted by, any provision of this part or with any policy of this state expressed by this part,
             344      whether that policy be expressed by inclusion of a provision in this part or by exclusion of that
             345      subject from this part.
             346          Section 12. Effective date.
             347          This bill takes effect on July 1, 2008.




Legislative Review Note
    as of 1-26-07 3:10 PM


Office of Legislative Research and General Counsel


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