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First Substitute H.B. 95

This document includes House Committee Amendments incorporated into the bill on Fri, Feb 3, 2012 at 12:54 PM by jeyring. --> This document includes House Floor Amendments incorporated into the bill on Wed, Feb 15, 2012 at 4:24 PM by lerror. --> This document includes Senate Committee Amendments incorporated into the bill on Fri, Feb 24, 2012 at 2:18 PM by khelgesen. -->

Representative Paul Ray proposes the following substitute bill:


             1     
RETAIL SALE OF TOBACCO PRODUCTS

             2     
2012 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 authorizes a municipality to issue a business license for a retail tobacco
             10      specialty business, and creates certain restrictions on the location of a retail tobacco
             11      specialty business and the sale of tobacco paraphernalia.
             12      Highlighted Provisions:
             13          This bill:
             14          .    amends the definition of tobacco paraphernalia;
             15          .    clarifies the prohibition against the sale of tobacco paraphernalia to minors;
             16          .    defines a retail tobacco specialty business;
             17          .    beginning July 1, 2012, requires an entity doing business as a retail tobacco
             18      specialty business to obtain a license from a municipality to conduct business;
             19          .    restricts the location of a retail tobacco specialty business;
             20      H. [     .    requires a criminal background check for the owner of a retail tobacco specialty
             21      business; ] .H
             22          .    exempts current retail tobacco specialty businesses from the licensing requirements,
             23      except in certain circumstances; and
             24          .    provides that any act prohibited by the criminal provisions of the laws governing the
             25      sale of tobacco in the state are subject to the Pattern of Unlawful Activity Act.

             26      Money Appropriated in this Bill:
             27          None
             28      Other Special Clauses:
             29          None
             30      Utah Code Sections Affected:
             31      AMENDS:
             32          76-10-104.1, as enacted by Laws of Utah 2010, Chapter 316
             33          76-10-1602, as last amended by Laws of Utah 2011, Chapter 320
             34      ENACTS:
             35          10-8-41.6, Utah Code Annotated 1953
             36          17-50-333, Utah Code Annotated 1953
             37     
             38      Be it enacted by the Legislature of the state of Utah:
             39          Section 1. Section 10-8-41.6 is enacted to read:
             40          10-8-41.6. Regulation of retail tobacco specialty business.
             41          (1) As used in this section:
             42          (a) "Community location" means:
             43          (i) a public or private kindergarten, elementary, middle, junior high, or high school;
             44          (ii) a licensed child-care facility or preschool;
             45          (iii) a trade or technical school;
             46          (iv) a church;
             47          (v) a public library;
             48          (vi) a public playground;
             49          (vii) a public park;
             50          (viii) a youth center or other space used primarily for youth oriented activities;
             51          (ix) a public recreational facility; or
             52          (x) a public arcade.
             53          (b) "Retail tobacco specialty business" means a commercial establishment in which:
             54          (i) the sale of tobacco products accounts for more than H. [ 30% ] 35% .H of the total
             54a      annual gross
             55      receipts for the establishment;
             56          (ii) food and beverage products, excluding gasoline sales, is less than H. [ 50% ] 45% .H              56a      of the total

             57      annual gross receipts for the establishment; and
             58          (iii) the establishment is not licensed as a pharmacy under Title 58, Chapter 17b,
             59      Pharmacy Practice Act.
             60          (c) "Tobacco product" means:
             61          (i) any cigar, cigarette, or electronic cigarette as defined in Section 76-10-101 ;
             62          (ii) a tobacco product as defined in Section 59-14-102 , including:
             63          (A) chewing tobacco; or
             64          (B) any substitute for a tobacco product, including flavoring or additives to tobacco;
             65      and
             66          (iii) tobacco paraphernalia as defined in Section 76-10-104.1 .
             67          (2) The regulation of a retail tobacco specialty business is an exercise of the police
             68      powers of the state, and through delegation, to other governmental entities.
             69          (3) (a) Except as provided in Subsection (7), and beginning July 1, 2012, a
             70      municipality shall require an entity to be licensed as a retail tobacco specialty business to
             71      conduct business as a retail tobacco specialty business in a municipality.
             72          (b) A municipality may issue a retail tobacco specialty business license to an entity if
             73      the entity complies with the provisions of Subsection (5).
             74          (4) Except as provided in Subsection (7), and beginning July 1, 2012, a business entity
             75      that conducts a retail tobacco specialty business in a municipality shall be licensed by the
             76      municipality as a retail tobacco specialty business.
             77          (5) (a) A municipality may not issue a license to a retail tobacco specialty business if it
             78      is located within:
             79          (i) 1,000 feet of a community location;
             80          (ii) 600 feet of another retail tobacco specialty business; or
             81          (iii) 600 feet from property used or zoned for:
             82          (A) agriculture use; or
             83          (B) residential use.
             84          (b) For purposes of Subsection (5)(a), the proximity requirements shall be measured in
             85      a straight line from the nearest entrance of the retail tobacco specialty business to the nearest
             86      property boundary of the community location, or agricultural or residential use, without regard
             87      to intervening structures or zoning districts.

             88           H. [ (c) (i) A municipality shall require a criminal background check for an owner of a retail
             89      tobacco specialty business.
             90          (ii) A municipality may not issue a retail tobacco specialty business license to a person
             91      who has been convicted of:
             92          (A) a felony within the last five years;
             93          (B) a class A misdemeanor within the last five years; or
             94          (C) a class B misdemeanor within the last three years, related to the sale of a tobacco
             95      product. ] .H
             96          (6) (a) Nothing in this section:
             97          (i) requires a municipality to issue a business license to a retail tobacco specialty
             98      business; or
             99          (ii) prohibits a municipality from adopting H. [ additional restrictions ] more restrictive
             99a      requirements .H on a tobacco specialty
             100      business H. than provided for in this section .H .
             101          (b) A municipality may revoke a business license issued under this section:
             102          (i) if a licensee engages in a pattern of unlawful activity under Title 76, Chapter 10,
             103      Part 16, Pattern of Unlawful Activity Act;
             104          (ii) if a licensee violates the regulations restricting the sale and distribution of
             105      cigarettes and smokeless tobacco to protect children and adolescents issued by the United
             106      States Food and Drug Administration, 21 C.F.R. Part 1140; or
             107          (iii) under other provisions of state law or local ordinance.
             108          (7) (a) In accordance with Subsection (7)(b), a retail tobacco specialty business that has
             109      a business license and is operating lawfully in a municipality on or before May 8, 2012, is
             110      exempt from Subsections (4) and (5).
             111          (b) A retail tobacco specialty business may maintain an exemption under Subsection
             112      (7)(a) if:
             113          (i) the business license is renewed continuously without relapse or permanent
             114      revocation;
             115          (ii) the retail tobacco specialty business is not closed for business or otherwise
             116      suspends the sale of tobacco products for more than 60 consecutive days;
             117          (iii) the retail tobacco specialty business does not substantially change the business
             118      premises or its business operation; and

             119          (iv) the retail tobacco specialty business maintains the right to operate under the terms
             120      of other applicable laws including zoning ordinances, building codes, and the business license
             121      issued prior to May 8, 2012.
             122          Section 2. Section 17-50-333 is enacted to read:
             123          17-50-333. Regulation of retail tobacco specialty business.
             124          (1) As used in this section:
             125          (a) "Community location" means:
             126          (i) a public or private kindergarten, elementary, middle, junior high, or high school;
             127          (ii) a licensed child-care facility or preschool;
             128          (iii) a trade or technical school;
             129          (iv) a church;
             130          (v) a public library;
             131          (vi) a public playground;
             132          (vii) a public park;
             133          (viii) a youth center or other space used primarily for youth oriented activities;
             134          (ix) a public recreational facility; or
             135          (x) a public arcade.
             136          (b) "Retail tobacco specialty business" means a commercial establishment in which:
             137          (i) the sale of tobacco products accounts for more than S. [ 30% ] 35% .S of the total
             137a      annual gross
             138      receipts for the establishment;
             139          (ii) food and beverage products, excluding gasoline sales, is less than S. [ 50% ]
             139a      45% .S of the total
             140      annual gross receipts for the establishment; and
             141          (iii) the establishment is not licensed as a pharmacy under Title 58, Chapter 17b,
             142      Pharmacy Practice Act.
             143          (c) "Tobacco product" means:
             144          (i) any cigar, cigarette, or electronic cigarette as defined in Section 76-10-101 ;
             145          (ii) a tobacco product as defined in Section 59-14-102 , including:
             146          (A) chewing tobacco; or
             147          (B) any substitute for a tobacco product, including flavoring or additives to tobacco;
             148      and
             149          (iii) tobacco paraphernalia as defined in Section 76-10-104.1 .

             150          (2) The regulation of a retail tobacco specialty business is an exercise of the police
             151      powers of the state, and through delegation, to other governmental entities.
             152          (3) (a) Except as provided in Subsection (7), and beginning July 1, 2012, a
             153      H. [ municipality ] county .H shall require an entity to be licensed as a retail tobacco specialty
             153a      business to
             154      conduct business as a retail tobacco specialty business in a H. [ municipality ] county .H .
             155          (b) A H. [ municipality ] county .H may issue a retail tobacco specialty business license
             155a      to an entity if
             156      the entity complies with the provisions of Subsection (5).
             157          (4) Except as provided in Subsection (7), and beginning July 1, 2012, a business entity
             158      that conducts a retail tobacco specialty business in a H. [ municipality ] county .H shall be
             158a      licensed by the
             159      H. [ municipality ] county .H as a retail tobacco specialty business.
             160          (5) (a) A H. [ municipality ] county .H may not issue a license to a retail tobacco
             160a      specialty business if it
             161      is located within:
             162          (i) 1,000 feet of a community location;
             163          (ii) 600 feet of another retail tobacco specialty business; or
             164          (iii) 600 feet from property used or zoned for:
             165          (A) agriculture use; or
             166          (B) residential use.
             167          (b) For purposes of Subsection (5)(a), the proximity requirements shall be measured in
             168      a straight line from the nearest entrance of the retail tobacco specialty business to the nearest
             169      property boundary of the community location, or agricultural or residential use, without regard
             170      to intervening structures or zoning districts.
             171           H. [ (c) (i) A municipality shall require a criminal background check for an owner of a retail
             172      tobacco specialty business.
             173          (ii) A municipality may not issue a retail tobacco specialty business license to a person
             174      who has been convicted of:
             175          (A) a felony within the last five years;
             176          (B) a class A misdemeanor within the last five years; or
             177          (C) a class B misdemeanor within the last three years, related to the sale of a tobacco
             178      product. ] .H
             179          (6) (a) Nothing in this section:
             180          (i) requires a H. [ municipality ] county .H to issue a business license to a retail tobacco
             180a      specialty

             181      business; or
             182          (ii) prohibits a H. [ municipality ] county .H from adopting H. [ additional restrictions ]
             182a      more restrictive requirements .H on a tobacco specialty
             183      business H. than provided for in this section .H .
             184          (b) A H. [ municipality ] county .H may revoke a business license issued under this
             184a      section:
             185          (i) if a licensee engages in a pattern of unlawful activity under Title 76, Chapter 10,
             186      Part 16, Pattern of Unlawful Activity Act;
             187          (ii) if a licensee violates the regulations restricting the sale and distribution of
             188      cigarettes and smokeless tobacco to protect children and adolescents issued by the United
             189      States Food and Drug Administration, 21 C.F.R. Part 1140; or
             190          (iii) under other provisions of state law or local ordinance.
             191          (7) (a) In accordance with Subsection (7)(b), a retail tobacco specialty business that has
             192      a business license and is operating lawfully in a H. [ municipality ] county .H on or before
             192a      May 8, 2012, is
             193      exempt from Subsections (4) and (5).
             194          (b) A retail tobacco specialty business may maintain an exemption under Subsection
             195      (7)(a) if:
             196          (i) the business license is renewed continuously without relapse or permanent
             197      revocation;
             198          (ii) the retail tobacco specialty business is not closed for business or otherwise
             199      suspends the sale of tobacco products for more than 60 consecutive days;
             200          (iii) the retail tobacco specialty business does not substantially change the business
             201      premises or its business operation; and
             202          (iv) the retail tobacco specialty business maintains the right to operate under the terms
             203      of other applicable laws including zoning ordinances, building codes, and the business license
             204      issued prior to May 8, 2012.
             205          Section 3. Section 76-10-104.1 is amended to read:
             206           76-10-104.1. Providing tobacco paraphernalia to minors -- Penalties.
             207          (1) For purposes of this section:
             208          (a) "Provides":
             209          (i) includes selling, giving, furnishing, sending, or causing to be sent; and
             210          (ii) does not include the acts of the United States Postal Service or other common
             211      carrier when engaged in the business of transporting and delivering packages for others or the

             212      acts of a person, whether compensated or not, who transports or delivers a package for another
             213      person without any reason to know of the package's content.
             214          (b) "Tobacco paraphernalia":
             215          (i) means any equipment, product, or material of any kind which is used, [or] intended
             216      for use, or designed for use to package, repackage, store, contain, conceal, ingest, inhale, or
             217      otherwise introduce a cigar, cigarette, or tobacco in any form into the human body, including:
             218          (A) metal, wooden, acrylic, glass, stone, plastic, or ceramic pipes with or without
             219      screens, permanent screens, hashish heads, or punctured metal bowls;
             220          (B) water pipes;
             221          (C) carburetion tubes and devices;
             222          (D) smoking and carburetion masks;
             223          (E) roach clips: meaning objects used to hold burning material, such as a cigarette, that
             224      has become too small or too short to be held in the hand;
             225          (F) chamber pipes;
             226          (G) carburetor pipes;
             227          (H) electric pipes;
             228          (I) air-driven pipes;
             229          (J) chillums;
             230          (K) bongs; and
             231          (L) ice pipes or chillers; and
             232          (ii) does not include matches or lighters.
             233          (2) (a) [Any person who] It is unlawful for a person to, knowingly, S. [ under
             234      circumstances where a person should reasonably know, ] .S intentionally, recklessly, or with
             235      criminal negligence [provides] provide any tobacco paraphernalia to any person under 19 years
             236      of age[,].
             237          (b) A person who violates this section is guilty of a class C misdemeanor on the first
             238      offense and a class B misdemeanor on subsequent offenses.
             239          Section 4. Section 76-10-1602 is amended to read:
             240           76-10-1602. Definitions.
             241          As used in this part:
             242          (1) "Enterprise" means any individual, sole proprietorship, partnership, corporation,

             243      business trust, association, or other legal entity, and any union or group of individuals
             244      associated in fact although not a legal entity, and includes illicit as well as licit entities.
             245          (2) "Pattern of unlawful activity" means engaging in conduct which constitutes the
             246      commission of at least three episodes of unlawful activity, which episodes are not isolated, but
             247      have the same or similar purposes, results, participants, victims, or methods of commission, or
             248      otherwise are interrelated by distinguishing characteristics. Taken together, the episodes shall
             249      demonstrate continuing unlawful conduct and be related either to each other or to the
             250      enterprise. At least one of the episodes comprising a pattern of unlawful activity shall have
             251      occurred after July 31, 1981. The most recent act constituting part of a pattern of unlawful
             252      activity as defined by this part shall have occurred within five years of the commission of the
             253      next preceding act alleged as part of the pattern.
             254          (3) "Person" includes any individual or entity capable of holding a legal or beneficial
             255      interest in property, including state, county, and local governmental entities.
             256          (4) "Unlawful activity" means to directly engage in conduct or to solicit, request,
             257      command, encourage, or intentionally aid another person to engage in conduct which would
             258      constitute any offense described by the following crimes or categories of crimes, or to attempt
             259      or conspire to engage in an act which would constitute any of those offenses, regardless of
             260      whether the act is in fact charged or indicted by any authority or is classified as a misdemeanor
             261      or a felony:
             262          (a) any act prohibited by the criminal provisions of Title 13, Chapter 10, Unauthorized
             263      Recording Practices Act;
             264          (b) any act prohibited by the criminal provisions of Title 19, Environmental Quality
             265      Code, Sections 19-1-101 through 19-7-109 ;
             266          (c) taking, destroying, or possessing wildlife or parts of wildlife for the primary
             267      purpose of sale, trade, or other pecuniary gain, in violation of Title 23, Wildlife Resources
             268      Code of Utah, or Section 23-20-4 ;
             269          (d) false claims for medical benefits, kickbacks, and any other act prohibited by Title
             270      26, Chapter 20, Utah False Claims Act, Sections 26-20-1 through 26-20-12 ;
             271          (e) any act prohibited by the criminal provisions of Title 32B, Chapter 4, Criminal
             272      Offenses and Procedure Act;
             273          (f) any act prohibited by the criminal provisions of Title 57, Chapter 11, Utah Uniform

             274      Land Sales Practices Act;
             275          (g) any act prohibited by the criminal provisions of Title 58, Chapter 37, Utah
             276      Controlled Substances Act, or Title 58, Chapter 37b, Imitation Controlled Substances Act,
             277      Title 58, Chapter 37c, Utah Controlled Substance Precursor Act, or Title 58, Chapter 37d,
             278      Clandestine Drug Lab Act;
             279          (h) any act prohibited by the criminal provisions of Title 61, Chapter 1, Utah Uniform
             280      Securities Act;
             281          (i) any act prohibited by the criminal provisions of Title 63G, Chapter 6, Utah
             282      Procurement Code;
             283          (j) assault or aggravated assault, Sections 76-5-102 and 76-5-103 ;
             284          (k) a threat of terrorism, Section 76-5-107.3 ;
             285          (l) criminal homicide, Sections 76-5-201 , 76-5-202 , and 76-5-203 ;
             286          (m) kidnapping or aggravated kidnapping, Sections 76-5-301 and 76-5-302 ;
             287          (n) sexual exploitation of a minor, Section 76-5b-201 ;
             288          (o) arson or aggravated arson, Sections 76-6-102 and 76-6-103 ;
             289          (p) causing a catastrophe, Section 76-6-105 ;
             290          (q) burglary or aggravated burglary, Sections 76-6-202 and 76-6-203 ;
             291          (r) burglary of a vehicle, Section 76-6-204 ;
             292          (s) manufacture or possession of an instrument for burglary or theft, Section 76-6-205 ;
             293          (t) robbery or aggravated robbery, Sections 76-6-301 and 76-6-302 ;
             294          (u) theft, Section 76-6-404 ;
             295          (v) theft by deception, Section 76-6-405 ;
             296          (w) theft by extortion, Section 76-6-406 ;
             297          (x) receiving stolen property, Section 76-6-408 ;
             298          (y) theft of services, Section 76-6-409 ;
             299          (z) forgery, Section 76-6-501 ;
             300          (aa) fraudulent use of a credit card, Sections 76-6-506.2 , 76-6-506.3 , 76-6-506.5 , and
             301      76-6-506.6 ;
             302          (bb) deceptive business practices, Section 76-6-507 ;
             303          (cc) bribery or receiving bribe by person in the business of selection, appraisal, or
             304      criticism of goods, Section 76-6-508 ;

             305          (dd) bribery of a labor official, Section 76-6-509 ;
             306          (ee) defrauding creditors, Section 76-6-511 ;
             307          (ff) acceptance of deposit by insolvent financial institution, Section 76-6-512 ;
             308          (gg) unlawful dealing with property by fiduciary, Section 76-6-513 ;
             309          (hh) bribery or threat to influence contest, Section 76-6-514 ;
             310          (ii) making a false credit report, Section 76-6-517 ;
             311          (jj) criminal simulation, Section 76-6-518 ;
             312          (kk) criminal usury, Section 76-6-520 ;
             313          (ll) fraudulent insurance act, Section 76-6-521 ;
             314          (mm) retail theft, Section 76-6-602 ;
             315          (nn) computer crimes, Section 76-6-703 ;
             316          (oo) identity fraud, Section 76-6-1102 ;
             317          (pp) mortgage fraud, Section 76-6-1203 ;
             318          (qq) sale of a child, Section 76-7-203 ;
             319          (rr) bribery to influence official or political actions, Section 76-8-103 ;
             320          (ss) threats to influence official or political action, Section 76-8-104 ;
             321          (tt) receiving bribe or bribery by public servant, Section 76-8-105 ;
             322          (uu) receiving bribe or bribery for endorsement of person as public servant, Section
             323      76-8-106 ;
             324          (vv) official misconduct, Sections 76-8-201 and 76-8-202 ;
             325          (ww) obstruction of justice, Section 76-8-306 ;
             326          (xx) acceptance of bribe or bribery to prevent criminal prosecution, Section 76-8-308 ;
             327          (yy) false or inconsistent material statements, Section 76-8-502 ;
             328          (zz) false or inconsistent statements, Section 76-8-503 ;
             329          (aaa) written false statements, Section 76-8-504 ;
             330          (bbb) tampering with a witness or soliciting or receiving a bribe, Section 76-8-508 ;
             331          (ccc) retaliation against a witness, victim, or informant, Section 76-8-508.3 ;
             332          (ddd) extortion or bribery to dismiss criminal proceeding, Section 76-8-509 ;
             333          (eee) public assistance fraud in violation of Section 76-8-1203 , 76-8-1204 , or
             334      76-8-1205 ;
             335          (fff) unemployment insurance fraud, Section 76-8-1301 ;

             336          (ggg) intentionally or knowingly causing one animal to fight with another, Subsection
             337      76-9-301 (2)(d) or (e), or Section 76-9-301.1 ;
             338          (hhh) possession, use, or removal of explosives, chemical, or incendiary devices or
             339      parts, Section 76-10-306 ;
             340          (iii) delivery to common carrier, mailing, or placement on premises of an incendiary
             341      device, Section 76-10-307 ;
             342          (jjj) possession of a deadly weapon with intent to assault, Section 76-10-507 ;
             343          (kkk) unlawful marking of pistol or revolver, Section 76-10-521 ;
             344          (lll) alteration of number or mark on pistol or revolver, Section 76-10-522 ;
             345          (mmm) forging or counterfeiting trademarks, trade name, or trade device, Section
             346      76-10-1002 ;
             347          (nnn) selling goods under counterfeited trademark, trade name, or trade devices,
             348      Section 76-10-1003 ;
             349          (ooo) sales in containers bearing registered trademark of substituted articles, Section
             350      76-10-1004 ;
             351          (ppp) selling or dealing with article bearing registered trademark or service mark with
             352      intent to defraud, Section 76-10-1006 ;
             353          (qqq) gambling, Section 76-10-1102 ;
             354          (rrr) gambling fraud, Section 76-10-1103 ;
             355          (sss) gambling promotion, Section 76-10-1104 ;
             356          (ttt) possessing a gambling device or record, Section 76-10-1105 ;
             357          (uuu) confidence game, Section 76-10-1109 ;
             358          (vvv) distributing pornographic material, Section 76-10-1204 ;
             359          (www) inducing acceptance of pornographic material, Section 76-10-1205 ;
             360          (xxx) dealing in harmful material to a minor, Section 76-10-1206 ;
             361          (yyy) distribution of pornographic films, Section 76-10-1222 ;
             362          (zzz) indecent public displays, Section 76-10-1228 ;
             363          (aaaa) prostitution, Section 76-10-1302 ;
             364          (bbbb) aiding prostitution, Section 76-10-1304 ;
             365          (cccc) exploiting prostitution, Section 76-10-1305 ;
             366          (dddd) aggravated exploitation of prostitution, Section 76-10-1306 ;

             367          (eeee) communications fraud, Section 76-10-1801 ;
             368          (ffff) any act prohibited by the criminal provisions of Chapter 10, Part 19, Money
             369      Laundering and Currency Transaction Reporting Act;
             370          (gggg) vehicle compartment for contraband, Section 76-10-2801 ;
             371          (hhhh) any act prohibited by the criminal provisions of the laws governing taxation in
             372      this state; [and]
             373          (iiii) any act illegal under the laws of the United States and enumerated in 18 U.S.C.
             374      Sec. 1961 (1)(B), (C), and (D)[.]; and
             375      H. [     (jjjj) any act prohibited by the criminal provisions of the laws governing the sale of
             376      tobacco products as defined in Section 10-8-41.6 in this state. ] .H

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