H.B. 201 Enrolled

1

TOBACCO LICENSING AMENDMENTS
2 2011 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Paul Ray
5 Senate Sponsor: Allen M. Christensen
6
7 LONG TITLE
8 General Description:
9 This bill amends provisions of the Utah Health Code and the Cigarette and Tobacco
10 Tax and Licensing Act relating to tobacco licensing.
11 Highlighted Provisions:
12 This bill:
13 . amends license revocation provisions to provide that the revocation of a license to
14 sell tobacco is in effect for one year after:
15 . the day on which the time for filing an appeal of the revocation ends; or
16 . if the revocation is appealed, the day on which the decision to uphold the
17 revocation becomes final;
18 . provides that manufacturers and distributors of tobacco products who are
19 responsible for the collection of tax on tobacco products, and all retailers of tobacco
20 products, are subject to the licensing requirements, procedures, and penalties
21 described in Title 59, Chapter 14, Part 2, Cigarette and Tobacco Tax and Licensing
22 Act; and
23 . makes technical changes.
24 Money Appropriated in this Bill:
25 None
26 Other Special Clauses:
27 None
28 Utah Code Sections Affected:
29 AMENDS:

30 26-42-103, as enacted by Laws of Utah 1998, Chapter 319
31 59-14-203.5, as enacted by Laws of Utah 1998, Chapter 319
32 59-14-301, as last amended by Laws of Utah 1998, Chapter 319
33 59-14-301.5, as enacted by Laws of Utah 1998, Chapter 319
34
35 Be it enacted by the Legislature of the state of Utah:
36 Section 1. Section 26-42-103 is amended to read:
37 26-42-103. Violations and penalties -- Imposition by enforcing agency and tax
38 commission.
39 (1) If, following an investigation or issuance of a citation or information under Section
40 77-39-101 , an enforcing agency determines under Section 26-42-104 that a licensee or any
41 employee has sold tobacco to a person younger than 19 years of age, as prohibited by Section
42 76-10-104 , the enforcing agency may impose upon the licensee the following administrative
43 penalties:
44 (a) upon the first violation, a penalty of not more than $300;
45 (b) upon a second violation at the same retail location, and within 12 months of the
46 first violation, a penalty of not more than $750; and
47 (c) upon a third or subsequent violation at the same retail location and within 12
48 months of the first violation, a penalty of not more than $1,000.
49 (2) The enforcing agency shall notify the commission in writing of any order or order
50 of default finding a violation of Subsection (1) which is a third or fourth violation.
51 (3) The commission, upon receipt of the written notification under Subsection (2), shall
52 take action under Section 59-14-203.5 or 59-14-301.5 against the license to sell tobacco:
53 (a) by suspending the licensee's license to sell tobacco at that location for not more
54 than 30 days, upon receipt of notification of a third violation under Subsection (1)(c); and
55 (b) by revoking the license to sell tobacco at that location held by the licensee,
56 including any license under suspension, upon receipt of notification of a fourth violation under
57 Subsection (1)©.

58 (4) When the commission revokes a license under Subsection (3)(b), the commission
59 may not issue to the licensee, or to the business entity using the license that is revoked, a
60 license under Section [ 59-14-201 ] 59-14-202 or 59-14-301 to sell tobacco at the location for
61 which the license was issued for one year after [the date of the violation for which the license
62 was revoked.]:
63 (a) the day on which the time for filing an appeal of the revocation ends; or
64 (b) if the revocation is appealed, the day on which the decision to uphold the
65 revocation becomes final.
66 (5) This section does not prevent any bona fide purchaser of the business, who is not a
67 sole proprietor, director, corporate officer, or partner or other holder of significant interest in
68 the entity selling the business, from immediately applying for and obtaining a license to sell
69 tobacco.
70 Section 2. Section 59-14-203.5 is amended to read:
71 59-14-203.5. Commission action to suspend or revoke license.
72 (1) (a) The commission shall suspend or revoke licenses to sell tobacco, as required
73 under Section 26-42-103 regarding suspension or revocation of a license due to the sale of
74 cigarettes to a person younger than 19 years of age, upon receipt of notice of an enforcing
75 agency's finding of a violation of Section 26-42-103 .
76 (b) The commission shall provide written notice of the suspension or revocation to the
77 licensee.
78 (2) It is the duty of the enforcing agency to advise the commission of any finding of a
79 violation of Section 26-42-103 for which suspension or revocation of the license is a penalty.
80 (3) When the commission revokes a licensee's license under this section the
81 commission may not issue to the licensee, or to the business entity using the license that is
82 revoked, a license under Section 59-14-202 or 59-14-301 to sell tobacco at the location for
83 which the license was issued for one year after [the date of the violation for which the license
84 was revoked.]:
85 (a) the day on which the time for filing an appeal of the revocation ends; or

86 (b) if the revocation is appealed, the day on which the decision to uphold the
87 revocation becomes final.
88 Section 3. Section 59-14-301 is amended to read:
89 59-14-301. Registration and licensing -- Fee -- Bond exceptions.
90 (1) All manufacturers and distributors of all tobacco products, as defined in Section
91 59-14-102 , who are responsible for the collection of tax on tobacco products under this chapter,
92 and all retailers of all tobacco products [shall]:
93 (a) shall register with the commission; [and]
94 (b) shall be licensed by the commission under [Section 59-14-202 .] Part 2, Cigarettes;
95 and
96 (c) are subject to the requirements, procedures, and penalties described in Part 2,
97 Cigarettes.
98 (2) A fee may not be charged for registration and licensing of manufacturers, jobbers,
99 distributors, or retailers of tobacco products in addition to the cigarette license if such a license
100 is required.
101 (3) The commission shall require any manufacturer, wholesaler, retailer, or any other
102 person subject to this section, and who is responsible for the collection of tax on tobacco
103 products under this chapter, to post a bond as a prerequisite to registering. The bond shall be in
104 a form and an amount determined by the commission. If the bond is required under Section
105 59-14-201 , the bond may be a combination, the minimum amount of which shall be $1,000.
106 Section 4. Section 59-14-301.5 is amended to read:
107 59-14-301.5. Commission action to suspend or revoke license.
108 (1) (a) The commission shall suspend or revoke licenses to sell tobacco, as required
109 under Section 26-42-103 regarding suspension or revocation of a license due to the sale of
110 tobacco products to a person younger than 19 years of age, upon receipt of notice of an
111 enforcing agency's order or order of default, finding a violation of Section 26-42-103 .
112 (b) The commission shall provide written notice of the suspension or revocation to the
113 licensee.

114 (2) It is the duty of the enforcing agency to advise the commission of any order or order
115 of default finding a violation of Section 26-42-103 , for which suspension or revocation of the
116 license is a penalty.
117 (3) When the commission revokes a licensee's license under this section the
118 commission may not issue to the licensee, or to the business entity using the license that is
119 revoked, a license under Section 59-14-202 or 59-14-301 to sell tobacco at the location for
120 which the license was issued for one year after [the date of the violation for which the license
121 was revoked.]:
122 (a) the day on which the time for filing an appeal of the revocation ends; or
123 (b) if the revocation is appealed, the day on which the decision to uphold the
124 revocation becomes final.