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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.


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