Download Zipped Enrolled WordPerfect SB0036.ZIP
[Introduced][Status][Bill Documents][Fiscal Note][Bills Directory]

S.B. 36 Enrolled

             1     

CIGARETTE AND TOBACCO TAX AND LICENSING

             2     
AMENDMENTS

             3     
2013 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Wayne A. Harper

             6     
House Sponsor: Paul Ray

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill amends the Cigarette and Tobacco Tax and Licensing chapter to address
             11      taxation and regulation related to cigarettes and tobacco products.
             12      Highlighted Provisions:
             13          This bill:
             14          .    defines terms;
             15          .    modifies certain reporting requirements to the State Tax Commission related to
             16      cigarettes;
             17          .    addresses the taxation of a little cigar or cigarette produced from a cigarette rolling
             18      machine;
             19          .    addresses the applicability of certain tax provisions to a cigarette produced from a
             20      cigarette rolling machine;
             21          .    provides for a credit or refund of tax for a cigarette rolling machine operator under
             22      certain circumstances;
             23          .    enacts the Cigarette Rolling Machine Operators Act, including:
             24              .    requiring the certification and renewal of certification of cigarette rolling
             25      machine operators by the State Tax Commission under certain circumstances;
             26              .    providing procedures and requirements for a cigarette rolling machine operator
             27      to obtain certification or renewal of certification;
             28              .    requiring a cigarette rolling machine operator to make certain reports to the
             29      State Tax Commission;


             30              .    requiring a cigarette rolling machine operator to maintain a secure meter on a
             31      cigarette rolling machine;
             32              .    addressing the denial or revocation of certification of a cigarette rolling machine
             33      operator;
             34              .    addressing appeals;
             35              .    requiring a cigarette rolling machine operator to remove a cigarette rolling
             36      machine from its premises under certain circumstances; and
             37              .    granting rulemaking authority to the State Tax Commission; and    
             38          .    makes technical and conforming changes.
             39      Money Appropriated in this Bill:
             40          None
             41      Other Special Clauses:
             42          This bill takes effect on July 1, 2013.
             43      Utah Code Sections Affected:
             44      AMENDS:
             45          59-14-102, as last amended by Laws of Utah 2011, Chapter 229
             46          59-14-201, as last amended by Laws of Utah 2004, Chapter 217
             47          59-14-214, as last amended by Laws of Utah 2011, Chapter 164
             48          59-14-302, as last amended by Laws of Utah 2011, Chapter 229
             49          59-14-601, as enacted by Laws of Utah 2005, Chapter 204
             50      ENACTS:
             51          59-14-305, Utah Code Annotated 1953
             52          59-14-701, Utah Code Annotated 1953
             53          59-14-702, Utah Code Annotated 1953
             54          59-14-703, Utah Code Annotated 1953
             55          59-14-704, Utah Code Annotated 1953
             56          59-14-705, Utah Code Annotated 1953
             57          59-14-706, Utah Code Annotated 1953


             58          59-14-707, Utah Code Annotated 1953
             59     
             60      Be it enacted by the Legislature of the state of Utah:
             61          Section 1. Section 59-14-102 is amended to read:
             62           59-14-102. Definitions.
             63          As used in this chapter:
             64          (1) "Cigarette" means a roll for smoking made wholly or in part of tobacco:
             65          (a) regardless of:
             66          (i) the size of the roll;
             67          (ii) the shape of the roll; or
             68          (iii) whether the tobacco is:
             69          (A) flavored;
             70          (B) adulterated; or
             71          (C) mixed with any other ingredient; and
             72          (b) if the wrapper or cover of the roll is made of paper or any other substance or
             73      material except tobacco.
             74          (2) "Cigarette rolling machine" means a device or machine that has the capability to
             75      produce at least 150 cigarettes in less than 30 minutes.
             76          (3) "Cigarette rolling machine operator" means a person who:
             77          (a) (i) controls, leases, owns, possesses, or otherwise has available for use a cigarette
             78      rolling machine; and
             79          (ii) makes the cigarette rolling machine available for use by another person to produce
             80      a cigarette; or
             81          (b) offers for sale, at retail, a cigarette produced from the cigarette rolling machine.
             82          [(2)] (4) "Consumer" means a person that is not required:
             83          (a) under Section 59-14-201 to obtain a license under Section 59-14-202 ; or
             84          (b) under Section 59-14-301 to obtain a license under Section 59-14-202 .
             85          [(3)] (5) "Counterfeit cigarette" means:


             86          (a) a cigarette that has a false manufacturing label; or
             87          (b) a package of cigarettes bearing a counterfeit tax stamp.
             88          [(4)] (6) "Importer" means a person who imports into the United States, either directly
             89      or indirectly, a finished cigarette for sale or distribution.
             90          [(5)] (7) "Indian tribal entity" means a federally recognized Indian tribe, tribal entity, or
             91      any other person doing business as a distributor or retailer of cigarettes on tribal lands located
             92      in the state.
             93          [(6)] (8) "Little cigar" means a roll for smoking:
             94          (a) made wholly or in part of tobacco;
             95          (b) that uses an integrated cellulose acetate filter or other similar filter; and
             96          (c) that is wrapped in a substance:
             97          (i) containing tobacco; and
             98          (ii) that is not exclusively natural leaf tobacco.
             99          [(7) "Manufacturer"]
             100          (9) (a) Except as provided in Subsection (9)(b), "manufacturer" means a person who
             101      manufactures, fabricates, assembles, processes, or labels a finished cigarette.
             102          (b) "Manufacturer" does not include a cigarette rolling machine operator.
             103          [(8)] (10) "Moist snuff" means tobacco that:
             104          (a) is finely:
             105          (i) cut;
             106          (ii) ground; or
             107          (iii) powdered;
             108          (b) has at least 45% moisture content, as determined by the commission by rule made
             109      in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
             110          (c) is not intended to be:
             111          (i) smoked; or
             112          (ii) placed in the nasal cavity; and
             113          (d) except for single-use pouches of loose tobacco, is not packaged, produced, sold, or


             114      distributed in single-use units, including:
             115          (i) tablets;
             116          (ii) lozenges;
             117          (iii) strips;
             118          (iv) sticks; or
             119          (v) packages containing multiple single-use units.
             120          [(9)] (11) "Retailer" means a person that:
             121          (a) sells or distributes a cigarette to a consumer in the state; or
             122          (b) intends to sell or distribute a cigarette to a consumer in the state.
             123          [(10)] (12) "Stamp" means the indicia required to be placed on a cigarette package that
             124      evidences payment of the tax on cigarettes required by Section 59-14-205 .
             125          [(11)] (13) (a) "Tobacco product" means a product made of, or containing, tobacco.
             126          (b) "Tobacco product" includes:
             127          (i) a cigarette produced from a cigarette rolling machine;
             128          [(i)] (ii) a little cigar; or
             129          [(ii)] (iii) moist snuff.
             130          (c) "Tobacco product" does not include a cigarette.
             131          [(12)] (14) "Tribal lands" means land held by the United States in trust for a federally
             132      recognized Indian tribe.
             133          Section 2. Section 59-14-201 is amended to read:
             134           59-14-201. License -- Application of part -- Fee -- Bond -- Exceptions.
             135          (1) It is unlawful for any person in this state to manufacture, import, distribute, barter,
             136      sell, exchange, or offer cigarettes for sale without first having obtained a license issued by the
             137      commission under Section 59-14-202 .
             138          (2) Except for the tax rates described in Subsection 59-14-204 (2), this part does not
             139      apply to a cigarette produced from a cigarette rolling machine.
             140          [(2)] (3) (a) A license may not be issued for the sale of cigarettes until the applicant has
             141      paid a license fee of $30 or a license renewal fee of $20, as appropriate.


             142          (b) The fee for reinstatement of a license that has been revoked, suspended, or allowed
             143      to expire is $30.
             144          [(3)] (4) (a) A license may not be issued until the applicant files a bond with the
             145      commission. The commission shall determine the form and the amount of the bond, the
             146      minimum amount of which shall be $500. The bond shall be executed by the applicant as
             147      principal, with a corporate surety, payable to the state and conditioned upon the faithful
             148      performance of all the requirements of this chapter, including the payment of all taxes,
             149      penalties, and other obligations.
             150          (b) [Applicants are] An applicant is not required to post a bond [who] if the applicant:
             151          (i) [purchase] purchases during the license year only products [which] that have the
             152      proper state stamp affixed as required by this chapter; and
             153          (ii) [file] files an affidavit with [their] the applicant's application attesting to this fact.
             154          Section 3. Section 59-14-214 is amended to read:
             155           59-14-214. Nonparticipating manufacturer equity assessment.
             156          (1) As used in this section, "nonparticipating manufacturer" means a tobacco product
             157      manufacturer, as defined in Section 59-22-202 , that is not a participating manufacturer within
             158      the meaning of Subsection II(jj) of the Master Settlement Agreement, as defined in Section
             159      59-22-202 .
             160          (2) (a) There is levied an equity assessment, at the rate of 1.75 cents on each cigarette,
             161      for all cigarette packages of nonparticipating manufacturers to which a stamp is affixed as
             162      required under Section 59-14-205 .
             163          (b) The equity assessment imposed by this section is in addition to all other
             164      assessments, fees, and taxes levied under existing law.
             165          (c) The equity assessment imposed by this section shall be paid by affixing a stamp in
             166      the manner and at the time described in Section 59-14-205 .
             167          (d) Except as otherwise provided in this section, the equity assessment shall be
             168      collected, paid, administered, and enforced in the same manner as the tax on cigarettes levied
             169      by Section 59-14-204 .


             170          (3) The purposes of this equity assessment are:
             171          (a) to recover health care costs to the state imposed by nonparticipating manufacturers;
             172          (b) to prevent nonparticipating manufacturers from undermining the state's policy of
             173      reducing underage smoking by offering cigarettes for sale substantially below the prices of
             174      cigarettes of other manufacturers;
             175          (c) to protect funding, which is reduced as a result of the growth of nonparticipating
             176      manufacturer cigarette sales, for programs funded in whole or in part by payments to the state
             177      under the Master Settlement Agreement, as defined in Section 59-22-202 ;
             178          (d) to recoup settlement-payment revenue lost to the state as a result of
             179      nonparticipating manufacturer cigarette sales; and
             180          (e) to fund enforcement and administration of:
             181          (i) Chapter 14, Part 6, Tobacco Manufacturer Stamping Enforcement Provisions;
             182          (ii) Sections 59-22-201 through 59-22-203 , related to nonparticipating manufacturers;
             183      and
             184          (iii) the equity assessment imposed by this section.
             185          (4) Each manufacturer, distributor, wholesaler, or retail dealer who under Section
             186      59-14-205 affixes a stamp to a package of cigarettes, shall report [monthly] quarterly to the
             187      commission for each place of business, the number and denominations of stamps affixed to
             188      individual packages of nonparticipating manufacturer cigarettes sold by the manufacturer,
             189      distributor, wholesaler, or retail dealer in the preceding [month] quarter, including the
             190      manufacturer and brand family.
             191          (5) A person required to file a report under this section who fails to timely file the
             192      report, or who provides false or misleading information on, or in relation to, the report:
             193          (a) is guilty of a class B misdemeanor; and
             194          (b) is subject to:
             195          (i) revocation or suspension of a license under Part 2, Cigarettes; and
             196          (ii) a civil penalty, imposed by the commission, in an amount that does not exceed the
             197      greater of:


             198          (A) 500% of the retail value of the cigarettes for which an accurate report was not
             199      filed; or
             200          (B) $5,000.
             201          Section 4. Section 59-14-302 is amended to read:
             202           59-14-302. Tax basis -- Rates.
             203          (1) As used in this section:
             204          (a) "Manufacturer's sales price" means the amount the manufacturer of a tobacco
             205      product charges after subtracting a discount.
             206          (b) "Manufacturer's sales price" includes an original Utah destination freight charge,
             207      regardless of:
             208          (i) whether the tobacco product is shipped f.o.b. origin or f.o.b. destination; or
             209          (ii) who pays the original Utah destination freight charge.
             210          (2) There is levied a tax upon the sale, use, or storage of tobacco products in the state.
             211          (3) [The] (a) Subject to Subsection (3)(b), the tax levied under Subsection (2) shall be
             212      paid by the manufacturer, jobber, distributor, wholesaler, retailer, user, or consumer.
             213          (b) The tax levied under Subsection (2) on a cigarette produced from a cigarette rolling
             214      machine shall be paid by the cigarette rolling machine operator.
             215          (4) For tobacco products except for moist snuff [or], a little cigar, or a cigarette
             216      produced from a cigarette rolling machine, the rate of the tax under this section is .86
             217      multiplied by the manufacturer's sales price.
             218          (5) (a) Subject to Subsection (5)(b), the tax under this section on moist snuff is
             219      imposed:
             220          (i) at a rate of $1.83 per ounce; and
             221          (ii) on the basis of the net weight of the moist snuff as listed by the manufacturer.
             222          (b) If the net weight of moist snuff is in a quantity that is a fractional part of one ounce,
             223      a proportionate amount of the tax described in Subsection (5)(a) is imposed:
             224          (i) on that fractional part of one ounce; and
             225          (ii) in accordance with rules made by the commission in accordance with Title 63G,


             226      Chapter 3, Utah Administrative Rulemaking Act.
             227          (6) (a) A little cigar is taxed [in the same] at the same tax rates manner as a cigarette is
             228      taxed under Subsection 59-14-204 (2).
             229          (b) (i) Subject to Subsection (6)(b)(ii), a cigarette produced from a cigarette rolling
             230      machine is taxed at the same tax rates as a cigarette is taxed under Subsection 59-14-204 (2).
             231          (ii) A tax under this Subsection (6)(b) is imposed on the date the cigarette is produced
             232      from the cigarette rolling machine.
             233          (7) (a) Moisture content of a tobacco product is determined at the time of packaging.
             234          (b) A manufacturer who distributes a tobacco product in, or into, Utah, shall:
             235          (i) for a period of three years after the last day on which the manufacturer distributes
             236      the tobacco product in, or into, Utah, keep valid scientific evidence of the moisture content of
             237      the tobacco product available for review by the commission, upon demand; and
             238          (ii) provide a document, to the person described in Subsection (3) to whom the
             239      manufacturer distributes the tobacco product, that certifies the moisture content of the tobacco
             240      product, as verified by the scientific evidence described in Subsection (7)(b)(i).
             241          (c) A manufacturer who fails to comply with the requirements of Subsection (7)(b) is
             242      liable for the nonpayment or underpayment of taxes on the tobacco product by a person who
             243      relies, in good faith, on the document described in Subsection (7)(b)(ii).
             244          (d) A person described in Subsection (3) who is required to pay tax on a tobacco
             245      product:
             246          (i) shall, for a period of three years after the last day on which the person pays the tax
             247      on the tobacco product, keep the document described in Subsection (7)(b)(ii) available for
             248      review by the commission, upon demand; and
             249          (ii) is not liable for nonpayment or underpayment of taxes on the tobacco product due
             250      to the person's good faith reliance on the document described in Subsection (7)(b)(ii).
             251          Section 5. Section 59-14-305 is enacted to read:
             252          59-14-305. Credit or refund for cigarette rolling machine operator.
             253          (1) A cigarette rolling machine operator may claim a credit or refund on a return filed


             254      under Section 59-14-303 as provided in this section if:
             255          (a) a person pays a tax under this chapter on tobacco that the person sells or provides to
             256      the cigarette rolling machine operator; and
             257          (b) the cigarette rolling machine operator pays a tax under Section 59-14-302 on the
             258      tobacco that the cigarette rolling machine operator:
             259          (i) purchases or is provided with under Subsection (1)(a); and
             260          (ii) uses to produce a cigarette from the cigarette rolling machine.
             261          (2) The credit under this section is the lesser of:
             262          (a) the tax paid under Subsection (1)(a); or
             263          (b) the tax paid under Subsection (1)(b).
             264          (3) A cigarette rolling machine operator that claims a credit or refund under this section
             265      shall:
             266          (a) keep in a form prescribed by the commission books and records that are necessary
             267      to establish the tax paid under Subsection (1)(a) and the tax paid under Subsection (1)(b) for
             268      purposes of calculating the credit or refund the cigarette rolling machine operator may claim;
             269          (b) keep the books and records described in Subsection (3)(a) for the time period
             270      during which an assessment may be made under Section 59-1-1408 ; and
             271          (c) open the books and records for examination at any time by:
             272          (i) the commission; or
             273          (ii) an agent or representative the commission designates.
             274          Section 6. Section 59-14-601 is amended to read:
             275           59-14-601. Definitions.
             276          As used in this part:
             277          (1) "Brand family" means:
             278          (a) all styles of cigarettes sold under the same trademark and differentiated from one
             279      another by means of additional modifiers or descriptors, including: "menthol," "lights,"
             280      "kings," and "100s"; and
             281          (b) any brand name, alone or in conjunction with any other word, trademark, logo,


             282      symbol, motto, selling message, recognizable pattern of colors, or any other indicia of product
             283      identification identical or similar to, or identifiable with, a previously known brand of
             284      cigarettes.
             285          (2) "Cigarette" has the same meaning as in Subsection 59-22-202 (4).
             286          (3) "Commission" means the State Tax Commission as defined in Section 59-1-101 .
             287          (4) "Distributor" means a person, wherever residing or located, who purchases
             288      nontax-paid cigarettes and stores, sells, or otherwise disposes of the cigarettes.
             289          (5) "Master Settlement Agreement" has the same meaning as in Subsection
             290      59-22-202 (5).
             291          (6) "Nonparticipating manufacturer" means any tobacco product manufacturer that is
             292      not a participating manufacturer.
             293          (7) "Participating manufacturer" has the meaning given that term in Section II(jj) of the
             294      Master Settlement Agreement and all amendments thereto.
             295          (8) "Stamping agent" means a person that is authorized to affix tax stamps to packages
             296      or other containers of cigarettes under Section 59-14-205 or any person that is required to pay
             297      the tobacco tax imposed pursuant to Section 59-14-302 .
             298          (9) "Qualified Escrow Fund" has the same meaning as defined in Subsection
             299      59-22-202 (6).
             300          (10) (a) ["Tobacco] Except as provided in Subsection (10)(b), "tobacco product
             301      manufacturer" has the same meaning as defined in Subsection 59-22-202 (9).
             302          (b) "Tobacco product manufacturer" does not include a cigarette rolling machine
             303      operator as defined in Section 59-14-102 .
             304          (11) "Units sold" has the same meaning as defined in Subsection 59-22-202 (10).
             305          Section 7. Section 59-14-701 is enacted to read:
             306     
Part 7. Cigarette Rolling Machine Operators Act

             307          59-14-701. Title.
             308          This part is known as the "Cigarette Rolling Machine Operators Act."
             309          Section 8. Section 59-14-702 is enacted to read:


             310          59-14-702. Definitions.
             311          As used in this part:
             312          (1) "Brand family" is as defined in Section 59-14-601 .
             313          (2) "Tobacco product manufacturer" is as defined in Section 59-14-601 .
             314          Section 9. Section 59-14-703 is enacted to read:
             315          59-14-703. Certification of cigarette rolling machine operators -- Renewal of
             316      certification -- Requirements for certification or renewal of certification -- Denial.
             317          (1) A cigarette rolling machine operator may not perform the following without first
             318      obtaining certification from the commission as provided in this part:
             319          (a) locate a cigarette rolling machine within this state;
             320          (b) make or offer to make a cigarette rolling machine available for use within this state;
             321      or
             322          (c) offer a cigarette for sale within this state if the cigarette is produced by:
             323          (i) the cigarette rolling machine operator; or
             324          (ii) another person at the location of the cigarette rolling machine operator's cigarette
             325      rolling machine.
             326          (2) A cigarette rolling machine operator shall renew its certification as provided in this
             327      section.
             328          (3) The commission shall prescribe a form for certifying a cigarette rolling machine
             329      operator under this part.
             330          (4) (a) A cigarette rolling machine operator shall apply to the commission for
             331      certification before the cigarette rolling machine operator performs an act described in
             332      Subsection (1) within the state for the first time.
             333          (b) A cigarette rolling machine operator shall apply to the commission for a renewal of
             334      certification on or before the earlier of:
             335          (i) December 31 of each year; or
             336          (ii) the day on which there is a change in any of the information the cigarette rolling
             337      machine operator provides on the form described in Subsection (3).


             338          (5) To obtain certification or renewal of certification under this section from the
             339      commission, a cigarette rolling machine operator shall:
             340          (a) identify:
             341          (i) the cigarette rolling machine operator's name and address;
             342          (ii) the location, make, and brand of the cigarette rolling machine operator's cigarette
             343      rolling machine; and
             344          (iii) each person from whom the cigarette rolling machine operator will purchase or be
             345      provided tobacco products that the cigarette rolling machine operator will use to produce
             346      cigarettes; and
             347          (b) certify, under penalty of perjury, that:
             348          (i) the tobacco to be used in the cigarette rolling machine operator's cigarette rolling
             349      machine, regardless of the tobacco's label or description, shall be only of a:
             350          (A) brand family listed on the commission's directory listing required by Section
             351      59-14-603 ; and
             352          (B) tobacco product manufacturer listed on the commission's directory listing required
             353      by Section 59-14-603 ;
             354          (ii) the cigarette rolling machine operator shall prohibit another person who uses the
             355      cigarette rolling machine operator's cigarette rolling machine from using tobacco, a wrapper, or
             356      a cover except for tobacco, a wrapper, or a cover purchased by or provided to the cigarette
             357      rolling machine operator from a person identified in accordance with Subsection (5)(a)(iii);
             358          (iii) the cigarette rolling machine operator holds a current license issued in accordance
             359      with this chapter;
             360          (iv) the cigarettes produced from the cigarette rolling machine shall comply with Title
             361      53, Chapter 7, Part 4, The Reduced Cigarette Ignition Propensity and Firefighter Protection
             362      Act;
             363          (v) the cigarette rolling machine shall be located in a separate and defined area where
             364      the cigarette rolling machine operator ensures that a person younger than 19 years of age may
             365      not be:


             366          (A) present at any time; or
             367          (B) permitted to enter at any time; and
             368          (vi) the cigarette rolling machine operator may not barter, distribute, exchange, offer,
             369      or sell cigarettes produced from a cigarette rolling machine in a quantity of less than 20
             370      cigarettes per retail transaction.
             371          (6) If the commission determines that a cigarette rolling machine operator meets the
             372      requirements for certification or renewal of certification under this section, the commission
             373      shall grant the certification or renewal of certification.
             374          (7) If the commission determines that a cigarette rolling machine operator does not
             375      meet the requirements for certification or renewal of certification under this section, the
             376      commission shall:
             377          (a) deny the certification or renewal of certification; and
             378          (b) provide the cigarette rolling machine operator the grounds for denial of the
             379      certification or renewal of certification in writing.
             380          Section 10. Section 59-14-704 is enacted to read:
             381          59-14-704. Cigarette rolling machine operator quarterly report to commission.
             382          (1) A cigarette rolling machine operator shall each quarter report to the commission:
             383          (a) the number of cigarettes, by weight, produced from each of the cigarette rolling
             384      machine operator's cigarette rolling machines for the previous calendar quarter;
             385          (b) the brand family and the tobacco product manufacturer of the brand family of the
             386      tobacco the cigarette rolling machine operator purchased or was provided for use by the
             387      cigarette rolling machine operator's cigarette rolling machine for the previous calendar quarter;
             388          (c) the ounces of tobacco the cigarette rolling machine operator purchased or was
             389      provided for use by the cigarette rolling machine operator's cigarette rolling machine for the
             390      previous calendar quarter; and
             391          (d) each person from whom the cigarette rolling machine operator purchased or was
             392      provided tobacco for use by the cigarette rolling machine operator's cigarette rolling machine
             393      for the previous calendar quarter.


             394          (2) A cigarette rolling machine operator shall file the report required by this section on
             395      the last day of the month immediately following the last day of the previous calendar quarter.
             396          (3) The commission shall prescribe the form for the report under this section.
             397          Section 11. Section 59-14-705 is enacted to read:
             398          59-14-705. Cigarette rolling machine operator shall maintain a secure meter on
             399      cigarette rolling machine.
             400          (1) A cigarette rolling machine operator shall maintain a secure meter on each cigarette
             401      rolling machine that the cigarette rolling machine operator controls, leases, owns, possesses, or
             402      otherwise has available for use.
             403          (2) The secure meter described in Subsection (1):
             404          (a) shall maintain an accurate count of the cigarettes, by weight, dispensed by the
             405      cigarette rolling machine;
             406          (b) may not be accessed except to take a reading of the secure meter; and
             407          (c) may not be reset or otherwise altered.
             408          Section 12. Section 59-14-706 is enacted to read:
             409          59-14-706. Revocation of certification -- Denial of certification or revocation of
             410      certification appeal procedures -- Removal of cigarette rolling machine from premises.
             411          (1) In addition to the penalties provided under this title, the commission shall revoke
             412      the certification of a cigarette rolling machine operator if the cigarette rolling machine operator
             413      violates this part.
             414          (2) The following are subject to review in accordance with Title 63G, Chapter 4,
             415      Administrative Procedures Act:
             416          (a) the commission's denial of certification or denial of renewal of certification under
             417      Section 59-14-703 ; or
             418          (b) the commission's revocation of certification under this section.
             419          (3) If the commission revokes the certification of a cigarette rolling machine operator:
             420          (a) the commission shall send written notice of the revocation to the cigarette rolling
             421      machine operator; and


             422          (b) the cigarette rolling machine operator:
             423          (i) may not use the cigarette rolling machine or make or offer to make the cigarette
             424      rolling machine available for use; and
             425          (ii) no later than 10 days after the date the commission sends the written notice
             426      described in Subsection (3)(a), shall remove the cigarette rolling machine from the cigarette
             427      rolling machine operator's premises.
             428          Section 13. Section 59-14-707 is enacted to read:
             429          59-14-707. Commission rulemaking authority.
             430          In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             431      commission may make rules to verify information for purposes of granting or denying a
             432      certification or renewal of certification under this part.
             433          Section 14. Effective date.
             434          This bill takes effect on July 1, 2013.


[Bill Documents][Bills Directory]