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S.B. 36

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


             28              .    providing procedures and requirements for a cigarette rolling machine operator
             29      to obtain certification or renewal of certification;
             30              .    requiring a cigarette rolling machine operator to make certain reports to the
             31      State Tax Commission;
             32              .    requiring a cigarette rolling machine operator to maintain a secure meter on a
             33      cigarette rolling machine;
             34              .    addressing the denial or revocation of certification of a cigarette rolling machine
             35      operator;
             36              .    addressing appeals;
             37              .    requiring a cigarette rolling machine operator to remove a cigarette rolling
             38      machine from its premises under certain circumstances; and
             39              .    granting rulemaking authority to the State Tax Commission; and    
             40          .    makes technical and conforming changes.
             41      Money Appropriated in this Bill:
             42          None
             43      Other Special Clauses:
             44          This bill takes effect on July 1, 2013.
             45      Utah Code Sections Affected:
             46      AMENDS:
             47          59-14-102, as last amended by Laws of Utah 2011, Chapter 229
             48          59-14-201, as last amended by Laws of Utah 2004, Chapter 217
             49          59-14-214, as last amended by Laws of Utah 2011, Chapter 164
             50          59-14-302, as last amended by Laws of Utah 2011, Chapter 229
             51          59-14-601, as enacted by Laws of Utah 2005, Chapter 204
             52      ENACTS:
             53          59-14-305, Utah Code Annotated 1953
             54          59-14-701, Utah Code Annotated 1953
             55          59-14-702, Utah Code Annotated 1953
             56          59-14-703, Utah Code Annotated 1953
             57          59-14-704, Utah Code Annotated 1953
             58          59-14-705, Utah Code Annotated 1953


             59          59-14-706, Utah Code Annotated 1953
             60          59-14-707, Utah Code Annotated 1953
             61     
             62      Be it enacted by the Legislature of the state of Utah:
             63          Section 1. Section 59-14-102 is amended to read:
             64           59-14-102. Definitions.
             65          As used in this chapter:
             66          (1) "Cigarette" means a roll for smoking made wholly or in part of tobacco:
             67          (a) regardless of:
             68          (i) the size of the roll;
             69          (ii) the shape of the roll; or
             70          (iii) whether the tobacco is:
             71          (A) flavored;
             72          (B) adulterated; or
             73          (C) mixed with any other ingredient; and
             74          (b) if the wrapper or cover of the roll is made of paper or any other substance or
             75      material except tobacco.
             76          (2) "Cigarette rolling machine" means a device or machine that has the capability to
             77      produce at least 150 cigarettes in less than 30 minutes.
             78          (3) "Cigarette rolling machine operator" means a person who:
             79          (a) (i) controls, leases, owns, possesses, or otherwise has available for use a cigarette
             80      rolling machine; and
             81          (ii) makes the cigarette rolling machine available for use by another person to produce
             82      a cigarette; or
             83          (b) offers for sale, at retail, a cigarette produced from the cigarette rolling machine.
             84          [(2)] (4) "Consumer" means a person that is not required:
             85          (a) under Section 59-14-201 to obtain a license under Section 59-14-202 ; or
             86          (b) under Section 59-14-301 to obtain a license under Section 59-14-202 .
             87          [(3)] (5) "Counterfeit cigarette" means:
             88          (a) a cigarette that has a false manufacturing label; or
             89          (b) a package of cigarettes bearing a counterfeit tax stamp.


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


             121          (v) packages containing multiple single-use units.
             122          [(9)] (11) "Retailer" means a person that:
             123          (a) sells or distributes a cigarette to a consumer in the state; or
             124          (b) intends to sell or distribute a cigarette to a consumer in the state.
             125          [(10)] (12) "Stamp" means the indicia required to be placed on a cigarette package that
             126      evidences payment of the tax on cigarettes required by Section 59-14-205 .
             127          [(11)] (13) (a) "Tobacco product" means a product made of, or containing, tobacco.
             128          (b) "Tobacco product" includes:
             129          (i) a cigarette produced from a cigarette rolling machine;
             130          [(i)] (ii) a little cigar; or
             131          [(ii)] (iii) moist snuff.
             132          (c) "Tobacco product" does not include a cigarette.
             133          [(12)] (14) "Tribal lands" means land held by the United States in trust for a federally
             134      recognized Indian tribe.
             135          Section 2. Section 59-14-201 is amended to read:
             136           59-14-201. License -- Application of part -- Fee -- Bond -- Exceptions.
             137          (1) It is unlawful for any person in this state to manufacture, import, distribute, barter,
             138      sell, exchange, or offer cigarettes for sale without first having obtained a license issued by the
             139      commission under Section 59-14-202 .
             140          (2) Except for the tax rates described in Subsection 59-14-204 (2), this part does not
             141      apply to a cigarette produced from a cigarette rolling machine.
             142          [(2)] (3) (a) A license may not be issued for the sale of cigarettes until the applicant has
             143      paid a license fee of $30 or a license renewal fee of $20, as appropriate.
             144          (b) The fee for reinstatement of a license that has been revoked, suspended, or allowed
             145      to expire is $30.
             146          [(3)] (4) (a) A license may not be issued until the applicant files a bond with the
             147      commission. The commission shall determine the form and the amount of the bond, the
             148      minimum amount of which shall be $500. The bond shall be executed by the applicant as
             149      principal, with a corporate surety, payable to the state and conditioned upon the faithful
             150      performance of all the requirements of this chapter, including the payment of all taxes,
             151      penalties, and other obligations.


             152          (b) [Applicants are] An applicant is not required to post a bond [who] if the applicant:
             153          (i) [purchase] purchases during the license year only products [which] that have the
             154      proper state stamp affixed as required by this chapter; and
             155          (ii) [file] files an affidavit with [their] the applicant's application attesting to this fact.
             156          Section 3. Section 59-14-214 is amended to read:
             157           59-14-214. Nonparticipating manufacturer equity assessment.
             158          (1) As used in this section, "nonparticipating manufacturer" means a tobacco product
             159      manufacturer, as defined in Section 59-22-202 , that is not a participating manufacturer within
             160      the meaning of Subsection II(jj) of the Master Settlement Agreement, as defined in Section
             161      59-22-202 .
             162          (2) (a) There is levied an equity assessment, at the rate of 1.75 cents on each cigarette,
             163      for all cigarette packages of nonparticipating manufacturers to which a stamp is affixed as
             164      required under Section 59-14-205 .
             165          (b) The equity assessment imposed by this section is in addition to all other
             166      assessments, fees, and taxes levied under existing law.
             167          (c) The equity assessment imposed by this section shall be paid by affixing a stamp in
             168      the manner and at the time described in Section 59-14-205 .
             169          (d) Except as otherwise provided in this section, the equity assessment shall be
             170      collected, paid, administered, and enforced in the same manner as the tax on cigarettes levied
             171      by Section 59-14-204 .
             172          (3) The purposes of this equity assessment are:
             173          (a) to recover health care costs to the state imposed by nonparticipating manufacturers;
             174          (b) to prevent nonparticipating manufacturers from undermining the state's policy of
             175      reducing underage smoking by offering cigarettes for sale substantially below the prices of
             176      cigarettes of other manufacturers;
             177          (c) to protect funding, which is reduced as a result of the growth of nonparticipating
             178      manufacturer cigarette sales, for programs funded in whole or in part by payments to the state
             179      under the Master Settlement Agreement, as defined in Section 59-22-202 ;
             180          (d) to recoup settlement-payment revenue lost to the state as a result of
             181      nonparticipating manufacturer cigarette sales; and
             182          (e) to fund enforcement and administration of:


             183          (i) Chapter 14, Part 6, Tobacco Manufacturer Stamping Enforcement Provisions;
             184          (ii) Sections 59-22-201 through 59-22-203 , related to nonparticipating manufacturers;
             185      and
             186          (iii) the equity assessment imposed by this section.
             187          (4) Each manufacturer, distributor, wholesaler, or retail dealer who under Section
             188      59-14-205 affixes a stamp to a package of cigarettes, shall report [monthly] quarterly to the
             189      commission for each place of business, the number and denominations of stamps affixed to
             190      individual packages of nonparticipating manufacturer cigarettes sold by the manufacturer,
             191      distributor, wholesaler, or retail dealer in the preceding [month] quarter, including the
             192      manufacturer and brand family.
             193          (5) A person required to file a report under this section who fails to timely file the
             194      report, or who provides false or misleading information on, or in relation to, the report:
             195          (a) is guilty of a class B misdemeanor; and
             196          (b) is subject to:
             197          (i) revocation or suspension of a license under Part 2, Cigarettes; and
             198          (ii) a civil penalty, imposed by the commission, in an amount that does not exceed the
             199      greater of:
             200          (A) 500% of the retail value of the cigarettes for which an accurate report was not
             201      filed; or
             202          (B) $5,000.
             203          Section 4. Section 59-14-302 is amended to read:
             204           59-14-302. Tax basis -- Rates.
             205          (1) As used in this section:
             206          (a) "Manufacturer's sales price" means the amount the manufacturer of a tobacco
             207      product charges after subtracting a discount.
             208          (b) "Manufacturer's sales price" includes an original Utah destination freight charge,
             209      regardless of:
             210          (i) whether the tobacco product is shipped f.o.b. origin or f.o.b. destination; or
             211          (ii) who pays the original Utah destination freight charge.
             212          (2) There is levied a tax upon the sale, use, or storage of tobacco products in the state.
             213          (3) [The] (a) Subject to Subsection (3)(b), the tax levied under Subsection (2) shall be


             214      paid by the manufacturer, jobber, distributor, wholesaler, retailer, user, or consumer.
             215          (b) The tax levied under Subsection (2) on a cigarette produced from a cigarette rolling
             216      machine shall be paid by the cigarette rolling machine operator.
             217          (4) For tobacco products except for moist snuff [or], a little cigar, or a cigarette
             218      produced from a cigarette rolling machine, the rate of the tax under this section is .86
             219      multiplied by the manufacturer's sales price.
             220          (5) (a) Subject to Subsection (5)(b), the tax under this section on moist snuff is
             221      imposed:
             222          (i) at a rate of $1.83 per ounce; and
             223          (ii) on the basis of the net weight of the moist snuff as listed by the manufacturer.
             224          (b) If the net weight of moist snuff is in a quantity that is a fractional part of one ounce,
             225      a proportionate amount of the tax described in Subsection (5)(a) is imposed:
             226          (i) on that fractional part of one ounce; and
             227          (ii) in accordance with rules made by the commission in accordance with Title 63G,
             228      Chapter 3, Utah Administrative Rulemaking Act.
             229          (6) (a) A little cigar is taxed [in the same] at the same tax rates manner as a cigarette is
             230      taxed under Subsection 59-14-204 (2).
             231          (b) (i) Subject to Subsection (6)(b)(ii), a cigarette produced from a cigarette rolling
             232      machine is taxed at the same tax rates as a cigarette is taxed under Subsection 59-14-204 (2).
             233          (ii) A tax under this Subsection (6)(b) is imposed on the date the cigarette is produced
             234      from the cigarette rolling machine.
             235          (7) (a) Moisture content of a tobacco product is determined at the time of packaging.
             236          (b) A manufacturer who distributes a tobacco product in, or into, Utah, shall:
             237          (i) for a period of three years after the last day on which the manufacturer distributes
             238      the tobacco product in, or into, Utah, keep valid scientific evidence of the moisture content of
             239      the tobacco product available for review by the commission, upon demand; and
             240          (ii) provide a document, to the person described in Subsection (3) to whom the
             241      manufacturer distributes the tobacco product, that certifies the moisture content of the tobacco
             242      product, as verified by the scientific evidence described in Subsection (7)(b)(i).
             243          (c) A manufacturer who fails to comply with the requirements of Subsection (7)(b) is
             244      liable for the nonpayment or underpayment of taxes on the tobacco product by a person who


             245      relies, in good faith, on the document described in Subsection (7)(b)(ii).
             246          (d) A person described in Subsection (3) who is required to pay tax on a tobacco
             247      product:
             248          (i) shall, for a period of three years after the last day on which the person pays the tax
             249      on the tobacco product, keep the document described in Subsection (7)(b)(ii) available for
             250      review by the commission, upon demand; and
             251          (ii) is not liable for nonpayment or underpayment of taxes on the tobacco product due
             252      to the person's good faith reliance on the document described in Subsection (7)(b)(ii).
             253          Section 5. Section 59-14-305 is enacted to read:
             254          59-14-305. Credit or refund for cigarette rolling machine operator.
             255          (1) A cigarette rolling machine operator may claim a credit or refund on a return filed
             256      under Section 59-14-303 as provided in this section if:
             257          (a) a person pays a tax under this chapter on tobacco that the person sells or provides to
             258      the cigarette rolling machine operator; and
             259          (b) the cigarette rolling machine operator pays a tax under Section 59-14-302 on the
             260      tobacco that the cigarette rolling machine operator:
             261          (i) purchases or is provided with under Subsection (1)(a); and
             262          (ii) uses to produce a cigarette from the cigarette rolling machine.
             263          (2) The credit under this section is the lesser of:
             264          (a) the tax paid under Subsection (1)(a); or
             265          (b) the tax paid under Subsection (1)(b).
             266          (3) A cigarette rolling machine operator that claims a credit or refund under this section
             267      shall:
             268          (a) keep in a form prescribed by the commission books and records that are necessary
             269      to establish the tax paid under Subsection (1)(a) and the tax paid under Subsection (1)(b) for
             270      purposes of calculating the credit or refund the cigarette rolling machine operator may claim;
             271          (b) keep the books and records described in Subsection (3)(a) for the time period
             272      during which an assessment may be made under Section 59-1-1408 ; and
             273          (c) open the books and records for examination at any time by:
             274          (i) the commission; or
             275          (ii) an agent or representative the commission designates.


             276          Section 6. Section 59-14-601 is amended to read:
             277           59-14-601. Definitions.
             278          As used in this part:
             279          (1) "Brand family" means:
             280          (a) all styles of cigarettes sold under the same trademark and differentiated from one
             281      another by means of additional modifiers or descriptors, including: "menthol," "lights,"
             282      "kings," and "100s"; and
             283          (b) any brand name, alone or in conjunction with any other word, trademark, logo,
             284      symbol, motto, selling message, recognizable pattern of colors, or any other indicia of product
             285      identification identical or similar to, or identifiable with, a previously known brand of
             286      cigarettes.
             287          (2) "Cigarette" has the same meaning as in Subsection 59-22-202 (4).
             288          (3) "Commission" means the State Tax Commission as defined in Section 59-1-101 .
             289          (4) "Distributor" means a person, wherever residing or located, who purchases
             290      nontax-paid cigarettes and stores, sells, or otherwise disposes of the cigarettes.
             291          (5) "Master Settlement Agreement" has the same meaning as in Subsection
             292      59-22-202 (5).
             293          (6) "Nonparticipating manufacturer" means any tobacco product manufacturer that is
             294      not a participating manufacturer.
             295          (7) "Participating manufacturer" has the meaning given that term in Section II(jj) of the
             296      Master Settlement Agreement and all amendments thereto.
             297          (8) "Stamping agent" means a person that is authorized to affix tax stamps to packages
             298      or other containers of cigarettes under Section 59-14-205 or any person that is required to pay
             299      the tobacco tax imposed pursuant to Section 59-14-302 .
             300          (9) "Qualified Escrow Fund" has the same meaning as defined in Subsection
             301      59-22-202 (6).
             302          (10) (a) ["Tobacco] Except as provided in Subsection (10)(b), "tobacco product
             303      manufacturer" has the same meaning as defined in Subsection 59-22-202 (9).
             304          (b) "Tobacco product manufacturer" does not include a cigarette rolling machine
             305      operator as defined in Section 59-14-102 .
             306          (11) "Units sold" has the same meaning as defined in Subsection 59-22-202 (10).


             307          Section 7. Section 59-14-701 is enacted to read:
             308     
Part 7. Cigarette Rolling Machine Operators Act

             309          59-14-701. Title.
             310          This part is known as the "Cigarette Rolling Machine Operators Act."
             311          Section 8. Section 59-14-702 is enacted to read:
             312          59-14-702. Definitions.
             313          As used in this part:
             314          (1) "Brand family" is as defined in Section 59-14-601 .
             315          (2) "Tobacco product manufacturer" is as defined in Section 59-14-601 .
             316          Section 9. Section 59-14-703 is enacted to read:
             317          59-14-703. Certification of cigarette rolling machine operators -- Renewal of
             318      certification -- Requirements for certification or renewal of certification -- Denial.
             319          (1) A cigarette rolling machine operator may not perform the following without first
             320      obtaining certification from the commission as provided in this part:
             321          (a) locate a cigarette rolling machine within this state;
             322          (b) make or offer to make a cigarette rolling machine available for use within this state;
             323      or
             324          (c) offer a cigarette for sale within this state if the cigarette is produced by:
             325          (i) the cigarette rolling machine operator; or
             326          (ii) another person at the location of the cigarette rolling machine operator's cigarette
             327      rolling machine.
             328          (2) A cigarette rolling machine operator shall renew its certification as provided in this
             329      section.
             330          (3) The commission shall prescribe a form for certifying a cigarette rolling machine
             331      operator under this part.
             332          (4) (a) A cigarette rolling machine operator shall apply to the commission for
             333      certification before the cigarette rolling machine operator performs an act described in
             334      Subsection (1) within the state for the first time.
             335          (b) A cigarette rolling machine operator shall apply to the commission for a renewal of
             336      certification on or before the earlier of:
             337          (i) December 31 of each year; or


             338          (ii) the day on which there is a change in any of the information the cigarette rolling
             339      machine operator provides on the form described in Subsection (3).
             340          (5) To obtain certification or renewal of certification under this section from the
             341      commission, a cigarette rolling machine operator shall:
             342          (a) identify:
             343          (i) the cigarette rolling machine operator's name and address;
             344          (ii) the location, make, and brand of the cigarette rolling machine operator's cigarette
             345      rolling machine; and
             346          (iii) each person from whom the cigarette rolling machine operator will purchase or be
             347      provided tobacco products that the cigarette rolling machine operator will use to produce
             348      cigarettes; and
             349          (b) certify, under penalty of perjury, that:
             350          (i) the tobacco to be used in the cigarette rolling machine operator's cigarette rolling
             351      machine, regardless of the tobacco's label or description, shall be only of a:
             352          (A) brand family listed on the commission's directory listing required by Section
             353      59-14-603 ; and
             354          (B) tobacco product manufacturer listed on the commission's directory listing required
             355      by Section 59-14-603 ;
             356          (ii) the cigarette rolling machine operator shall prohibit another person who uses the
             357      cigarette rolling machine operator's cigarette rolling machine from using tobacco, a wrapper, or
             358      a cover except for tobacco, a wrapper, or a cover purchased by or provided to the cigarette
             359      rolling machine operator from a person identified in accordance with Subsection (5)(a)(iii);
             360          (iii) the cigarette rolling machine operator holds a current license issued in accordance
             361      with this chapter;
             362          (iv) the cigarettes produced from the cigarette rolling machine shall comply with Title
             363      53, Chapter 7, Part 4, The Reduced Cigarette Ignition Propensity and Firefighter Protection
             364      Act;
             365          (v) the cigarette rolling machine shall be located in a separate and defined area where
             366      the cigarette rolling machine operator ensures that a person younger than 19 years of age may
             367      not be:
             368          (A) present at any time; or


             369          (B) permitted to enter at any time; and
             370          (vi) the cigarette rolling machine operator may not barter, distribute, exchange, offer,
             371      or sell cigarettes produced from a cigarette rolling machine in a quantity of less than 20
             372      cigarettes per retail transaction.
             373          (6) If the commission determines that a cigarette rolling machine operator meets the
             374      requirements for certification or renewal of certification under this section, the commission
             375      shall grant the certification or renewal of certification.
             376          (7) If the commission determines that a cigarette rolling machine operator does not
             377      meet the requirements for certification or renewal of certification under this section, the
             378      commission shall:
             379          (a) deny the certification or renewal of certification; and
             380          (b) provide the cigarette rolling machine operator the grounds for denial of the
             381      certification or renewal of certification in writing.
             382          Section 10. Section 59-14-704 is enacted to read:
             383          59-14-704. Cigarette rolling machine operator quarterly report to commission.
             384          (1) A cigarette rolling machine operator shall each quarter report to the commission:
             385          (a) the number of cigarettes, by weight, produced from each of the cigarette rolling
             386      machine operator's cigarette rolling machines for the previous calendar quarter;
             387          (b) the brand family and the tobacco product manufacturer of the brand family of the
             388      tobacco the cigarette rolling machine operator purchased or was provided for use by the
             389      cigarette rolling machine operator's cigarette rolling machine for the previous calendar quarter;
             390          (c) the ounces of tobacco the cigarette rolling machine operator purchased or was
             391      provided for use by the cigarette rolling machine operator's cigarette rolling machine for the
             392      previous calendar quarter; and
             393          (d) each person from whom the cigarette rolling machine operator purchased or was
             394      provided tobacco for use by the cigarette rolling machine operator's cigarette rolling machine
             395      for the previous calendar quarter.
             396          (2) A cigarette rolling machine operator shall file the report required by this section on
             397      the last day of the month immediately following the last day of the previous calendar quarter.
             398          (3) The commission shall prescribe the form for the report under this section.
             399          Section 11. Section 59-14-705 is enacted to read:


             400          59-14-705. Cigarette rolling machine operator shall maintain a secure meter on
             401      cigarette rolling machine.
             402          (1) A cigarette rolling machine operator shall maintain a secure meter on each cigarette
             403      rolling machine that the cigarette rolling machine operator controls, leases, owns, possesses, or
             404      otherwise has available for use.
             405          (2) The secure meter described in Subsection (1):
             406          (a) shall maintain an accurate count of the cigarettes, by weight, dispensed by the
             407      cigarette rolling machine;
             408          (b) may not be accessed except to take a reading of the secure meter; and
             409          (c) may not be reset or otherwise altered.
             410          Section 12. Section 59-14-706 is enacted to read:
             411          59-14-706. Revocation of certification -- Denial of certification or revocation of
             412      certification appeal procedures -- Removal of cigarette rolling machine from premises.
             413          (1) In addition to the penalties provided under this title, the commission shall revoke
             414      the certification of a cigarette rolling machine operator if the cigarette rolling machine operator
             415      violates this part.
             416          (2) The following are subject to review in accordance with Title 63G, Chapter 4,
             417      Administrative Procedures Act:
             418          (a) the commission's denial of certification or denial of renewal of certification under
             419      Section 59-14-703 ; or
             420          (b) the commission's revocation of certification under this section.
             421          (3) If the commission revokes the certification of a cigarette rolling machine operator:
             422          (a) the commission shall send written notice of the revocation to the cigarette rolling
             423      machine operator; and
             424          (b) the cigarette rolling machine operator:
             425          (i) may not use the cigarette rolling machine or make or offer to make the cigarette
             426      rolling machine available for use; and
             427          (ii) no later than 10 days after the date the commission sends the written notice
             428      described in Subsection (3)(a), shall remove the cigarette rolling machine from the cigarette
             429      rolling machine operator's premises.
             430          Section 13. Section 59-14-707 is enacted to read:


             431          59-14-707. Commission rulemaking authority.
             432          In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             433      commission may make rules to verify information for purposes of granting or denying a
             434      certification or renewal of certification under this part.
             435          Section 14. Effective date.
             436          This bill takes effect on July 1, 2013.




Legislative Review Note
    as of 12-7-12 11:05 AM


Office of Legislative Research and General Counsel


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