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Tenth Substitute H.B. 112

Senator Curtis S. Bramble proposes the following substitute bill:


             1     
REGULATION OF ELECTRONIC CIGARETTES

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Paul Ray

             5     
Senate Sponsor: Allen M. Christensen

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill amends the Utah Code to modify and add provisions related to electronic
             10      cigarettes.
             11      Highlighted Provisions:
             12          This bill:
             13          .    prohibits a person from selling an electronic cigarette product without a license
             14      from the State Tax Commission;
             15          .    directs the State Tax Commission to issue licenses to sell an electronic cigarette
             16      product under certain conditions;
             17          .    provides that the State Tax Commission can revoke a person's license to sell an
             18      electronic cigarette product if the person sells an electronic cigarette product to an
             19      individual who is less than 19 years of age;
             20          .    prohibits a business owner from allowing a minor to use an electronic cigarette in
             21      the business;
             22          .    prohibits an individual who is less than 19 years of age from buying, attempting to
             23      buy, or possessing an electronic cigarette product; and
             24          .    makes technical and conforming amendments.
             25      Money Appropriated in this Bill:


             26          None
             27      Other Special Clauses:
             28          This bill takes effect on July 1, 2014.
             29      Utah Code Sections Affected:
             30      AMENDS:
             31           10-8-41.6 , as enacted by Laws of Utah 2012, Chapter 154
             32           17-50-333 , as enacted by Laws of Utah 2012, Chapter 154
             33           26-42-102 , as enacted by Laws of Utah 1998, Chapter 319
             34           26-42-103 , as last amended by Laws of Utah 2011, Chapter 96
             35           26-42-106 , as enacted by Laws of Utah 1998, Chapter 319
             36           76-10-101 , as last amended by Laws of Utah 2010, Chapter 114
             37           76-10-103 , as enacted by Laws of Utah 1973, Chapter 196
             38           76-10-104 , as last amended by Laws of Utah 2010, Chapter 114
             39           76-10-105 , as last amended by Laws of Utah 2010, Chapter 114
             40           76-10-105.1 , as last amended by Laws of Utah 2010, Chapter 114
             41           76-10-111 , as last amended by Laws of Utah 2010, Chapter 114
             42           77-39-101 , as last amended by Laws of Utah 2010, Chapters 114 and 276
             43      ENACTS:
             44           59-14a-101 , Utah Code Annotated 1953
             45           59-14a-102 , Utah Code Annotated 1953
             46           59-14a-103 , Utah Code Annotated 1953
             47     
             48      Be it enacted by the Legislature of the state of Utah:
             49          Section 1. Section 10-8-41.6 is amended to read:
             50           10-8-41.6. Regulation of retail tobacco specialty business.
             51          (1) As used in this section:
             52          (a) "Community location" means:
             53          (i) a public or private kindergarten, elementary, middle, junior high, or high school;
             54          (ii) a licensed child-care facility or preschool;
             55          (iii) a trade or technical school;
             56          (iv) a church;


             57          (v) a public library;
             58          (vi) a public playground;
             59          (vii) a public park;
             60          (viii) a youth center or other space used primarily for youth oriented activities;
             61          (ix) a public recreational facility; or
             62          (x) a public arcade.
             63          (b) "Electronic cigarette product" is as defined in Section 59-14a-102 .
             64          [(b)] (c) "Retail tobacco specialty business" means a commercial establishment in
             65      which:
             66          (i) the sale of tobacco products and electronic cigarette products accounts for more
             67      than 35% of the total annual gross receipts for the establishment;
             68          (ii) food and beverage products, excluding gasoline sales, is less than 45% of the total
             69      annual gross receipts for the establishment; and
             70          (iii) the establishment is not licensed as a pharmacy under Title 58, Chapter 17b,
             71      Pharmacy Practice Act.
             72          [(c)] (d) "Tobacco product" means:
             73          (i) any cigar[,] or cigarette[, or electronic cigarette] as defined in Section 76-10-101 ;
             74          (ii) a tobacco product as defined in Section 59-14-102 , including:
             75          (A) chewing tobacco; or
             76          (B) any substitute for a tobacco product, including flavoring or additives to tobacco;
             77      and
             78          (iii) tobacco paraphernalia as defined in Section 76-10-104.1 .
             79          (2) The regulation of a retail tobacco specialty business is an exercise of the police
             80      powers of the state, and through delegation, to other governmental entities.
             81          (3) (a) Except as provided in Subsection (7), and beginning July 1, 2012, a
             82      municipality shall require an entity to be licensed as a retail tobacco specialty business to
             83      conduct business as a retail tobacco specialty business in a municipality.
             84          (b) A municipality may issue a retail tobacco specialty business license to an entity if
             85      the entity complies with the provisions of Subsection (5).
             86          (4) Except as provided in Subsection (7), and beginning July 1, 2012, a business entity
             87      that conducts a retail tobacco specialty business in a municipality shall be licensed by the


             88      municipality as a retail tobacco specialty business.
             89          (5) (a) A municipality may not issue a license to a retail tobacco specialty business if it
             90      is located within:
             91          (i) 1,000 feet of a community location;
             92          (ii) 600 feet of another retail tobacco specialty business; or
             93          (iii) 600 feet from property used or zoned for:
             94          (A) agriculture use; or
             95          (B) residential use.
             96          (b) For purposes of Subsection (5)(a), the proximity requirements shall be measured in
             97      a straight line from the nearest entrance of the retail tobacco specialty business to the nearest
             98      property boundary of the community location, or agricultural or residential use, without regard
             99      to intervening structures or zoning districts.
             100          (6) (a) Nothing in this section:
             101          (i) requires a municipality to issue a business license to a retail tobacco specialty
             102      business; or
             103          (ii) prohibits a municipality from adopting more restrictive requirements [on] for a
             104      retail tobacco specialty business than provided for in this section.
             105          (b) A municipality may revoke a business license issued under this section:
             106          (i) if a licensee engages in a pattern of unlawful activity under Title 76, Chapter 10,
             107      Part 16, Pattern of Unlawful Activity Act;
             108          (ii) if a licensee violates the regulations restricting the sale and distribution of
             109      cigarettes and smokeless tobacco to protect children and adolescents issued by the United
             110      States Food and Drug Administration, 21 C.F.R. Part 1140; or
             111          (iii) under other provisions of state law or local ordinance.
             112          (7) (a) In accordance with Subsection (7)(b), a retail tobacco specialty business that has
             113      a business license and is operating lawfully in a municipality on or before May 8, 2012, is
             114      exempt from Subsections (4) and (5).
             115          (b) A retail tobacco specialty business may maintain an exemption under Subsection
             116      (7)(a) if:
             117          (i) the business license is renewed continuously without relapse or permanent
             118      revocation;


             119          (ii) the retail tobacco specialty business is not closed for business or otherwise
             120      suspends the sale of tobacco products or electronic cigarette products for more than 60
             121      consecutive days;
             122          (iii) the retail tobacco specialty business does not substantially change the business
             123      premises or its business operation; and
             124          (iv) the retail tobacco specialty business maintains the right to operate under the terms
             125      of other applicable laws, including zoning ordinances, building codes, and the business license
             126      issued prior to May 8, 2012.
             127          Section 2. Section 17-50-333 is amended to read:
             128           17-50-333. Regulation of retail tobacco specialty business.
             129          (1) As used in this section:
             130          (a) "Community location" means:
             131          (i) a public or private kindergarten, elementary, middle, junior high, or high school;
             132          (ii) a licensed child-care facility or preschool;
             133          (iii) a trade or technical school;
             134          (iv) a church;
             135          (v) a public library;
             136          (vi) a public playground;
             137          (vii) a public park;
             138          (viii) a youth center or other space used primarily for youth oriented activities;
             139          (ix) a public recreational facility; or
             140          (x) a public arcade.
             141          (b) "Electronic cigarette product" is as defined in Section 59-14a-102 .
             142          [(b)] (c) "Retail tobacco specialty business" means a commercial establishment in
             143      which:
             144          (i) the sale of tobacco products and electronic cigarette products accounts for more
             145      than 35% of the total annual gross receipts for the establishment;
             146          (ii) food and beverage products, excluding gasoline sales, is less than 45% of the total
             147      annual gross receipts for the establishment; and
             148          (iii) the establishment is not licensed as a pharmacy under Title 58, Chapter 17b,
             149      Pharmacy Practice Act.


             150          [(c)] (d) "Tobacco product" means:
             151          (i) any cigar[,] or cigarette[, or electronic cigarette] as defined in Section 76-10-101 ;
             152          (ii) a tobacco product as defined in Section 59-14-102 , including:
             153          (A) chewing tobacco; or
             154          (B) any substitute for a tobacco product, including flavoring or additives to tobacco;
             155      and
             156          (iii) tobacco paraphernalia as defined in Section 76-10-104.1 .
             157          (2) The regulation of a retail tobacco specialty business is an exercise of the police
             158      powers of the state, and through delegation, to other governmental entities.
             159          (3) (a) Except as provided in Subsection (7), and beginning July 1, 2012, a county shall
             160      require an entity to be licensed as a retail tobacco specialty business to conduct business as a
             161      retail tobacco specialty business in a county.
             162          (b) A county may issue a retail tobacco specialty business license to an entity if the
             163      entity complies with the provisions of Subsection (5).
             164          (4) Except as provided in Subsection (7), and beginning July 1, 2012, a business entity
             165      that conducts a retail tobacco specialty business in a county shall be licensed by the county as a
             166      retail tobacco specialty business.
             167          (5) (a) A county may not issue a license to a retail tobacco specialty business if it is
             168      located within:
             169          (i) 1,000 feet of a community location;
             170          (ii) 600 feet of another retail tobacco specialty business; or
             171          (iii) 600 feet from property used or zoned for:
             172          (A) agriculture use; or
             173          (B) residential use.
             174          (b) For purposes of Subsection (5)(a), the proximity requirements shall be measured in
             175      a straight line from the nearest entrance of the retail tobacco specialty business to the nearest
             176      property boundary of the community location, or agricultural or residential use, without regard
             177      to intervening structures or zoning districts.
             178          (6) (a) Nothing in this section:
             179          (i) requires a county to issue a business license to a retail tobacco specialty business; or
             180          (ii) prohibits a county from adopting more restrictive requirements [on] for a retail


             181      tobacco specialty business than provided for in this section.
             182          (b) A county may revoke a business license issued under this section:
             183          (i) if a licensee engages in a pattern of unlawful activity under Title 76, Chapter 10,
             184      Part 16, Pattern of Unlawful Activity Act;
             185          (ii) if a licensee violates the regulations restricting the sale and distribution of
             186      cigarettes and smokeless tobacco to protect children and adolescents issued by the United
             187      States Food and Drug Administration, 21 C.F.R. Part 1140; or
             188          (iii) under other provisions of state law or local ordinance.
             189          (7) (a) In accordance with Subsection (7)(b), a retail tobacco specialty business that has
             190      a business license and is operating lawfully in a county on or before May 8, 2012, is exempt
             191      from Subsections (4) and (5).
             192          (b) A retail tobacco specialty business may maintain an exemption under Subsection
             193      (7)(a) if:
             194          (i) the business license is renewed continuously without relapse or permanent
             195      revocation;
             196          (ii) the retail tobacco specialty business is not closed for business or otherwise
             197      suspends the sale of tobacco products or electronic cigarette products for more than 60
             198      consecutive days;
             199          (iii) the retail tobacco specialty business does not substantially change the business
             200      premises or its business operation; and
             201          (iv) the retail tobacco specialty business maintains the right to operate under the terms
             202      of other applicable laws, including zoning ordinances, building codes, and the business license
             203      issued prior to May 8, 2012.
             204          Section 3. Section 26-42-102 is amended to read:
             205           26-42-102. Definitions.
             206          As used in this chapter:
             207          (1) "Commission" means the Utah State Tax Commission.
             208          (2) "Electronic cigarette product" is as defined in Section 59-14a-102 .
             209          [(2)] (3) "Employee" means an employee of a licensee.
             210          [(3)] (4) "Enforcing agency" means the state Department of Health, or any local health
             211      department enforcing the provisions of this chapter.


             212          (5) "License" [to sell tobacco" or "license"] means a license issued under:
             213          (a) [under] Section [ 59-14-201 ] 59-14-202 to sell cigarettes at retail; [or]
             214          (b) [under] Section 59-14-301 to sell tobacco products at retail[.]; or
             215          (c) Section 59-14a-103 to sell an electronic cigarette product.
             216          [(4)] (6) "Licensee" means a person licensed under:
             217          (a) [under] Section [ 59-14-201 ] 59-14-202 to sell cigarettes at retail; [or]
             218          (b) [under] Section 59-14-301 to sell tobacco products at retail[.]; or
             219          (c) Section 59-14a-103 to sell an electronic cigarette product.
             220          [(6)] (7) "Tobacco" means cigarettes or tobacco products as defined in Section
             221      59-14-102 .
             222          Section 4. Section 26-42-103 is amended to read:
             223           26-42-103. Violations and penalties -- Imposition by enforcing agency and tax
             224      commission.
             225          (1) If, following an investigation or issuance of a citation or information under Section
             226      77-39-101 , an enforcing agency determines under Section 26-42-104 that a licensee or any
             227      employee has sold tobacco or an electronic cigarette product to a person younger than 19 years
             228      of age, as prohibited by Section 76-10-104 , the enforcing agency may impose upon the licensee
             229      the following administrative penalties:
             230          (a) upon the first violation, a penalty of not more than $300;
             231          (b) upon a second violation at the same retail location, and within 12 months of the
             232      first violation, a penalty of not more than $750; and
             233          (c) upon a third or subsequent violation at the same retail location and within 12
             234      months of the first violation, a penalty of not more than $1,000.
             235          (2) The enforcing agency shall notify the commission in writing of any order or order
             236      of default finding a violation of Subsection (1) which is a third or fourth violation.
             237          (3) The commission, upon receipt of the written notification under Subsection (2), shall
             238      take action under Section 59-14-203.5 [or], 59-14-301.5 , or 59-14a-103 against the license [to
             239      sell tobacco]:
             240          (a) by suspending each of the licensee's [license to sell tobacco] licenses at that
             241      location for not more than 30 days, upon receipt of notification of a third violation under
             242      Subsection (1)(c); and


             243          (b) by revoking each of the [license to sell tobacco] licenses at that location held by the
             244      licensee, including any license under suspension, upon receipt of notification of a fourth
             245      violation under Subsection (1)(c).
             246          (4) When the commission revokes a license under Subsection (3)(b), the commission
             247      may not issue to the licensee, or to the business entity using the license that is revoked, a
             248      license under Section 59-14-202 [or], 59-14-301 [to sell tobacco], or 59-14a-103 at the location
             249      for which the license was issued for one year after:
             250          (a) the day on which the time for filing an appeal of the revocation ends; or
             251          (b) if the revocation is appealed, the day on which the decision to uphold the
             252      revocation becomes final.
             253          (5) This section does not prevent any bona fide purchaser of the business, who is not a
             254      sole proprietor, director, corporate officer, or partner or other holder of significant interest in
             255      the entity selling the business, from immediately applying for and obtaining a license [to sell
             256      tobacco].
             257          Section 5. Section 26-42-106 is amended to read:
             258           26-42-106. Recognition of licensee's training program.
             259          (1) In determining the amount of the monetary penalty to be imposed for an employee's
             260      violation of Section 26-42-103 , the hearing officer shall reduce the penalty by at least 50% if
             261      [he] the hearing officer determines:
             262          (a) the licensee has implemented a documented employee training program; and
             263          (b) the employee has completed that training program within 30 days of commencing
             264      duties of selling tobacco products or electronic cigarette products.
             265          (2) (a) If the hearing officer determines under Subsection (1), regarding a first offense
             266      at a location, that the licensee has not implemented a documented training program with a
             267      written curriculum for employees at that location regarding compliance with this chapter, the
             268      hearing officer may suspend all or a portion of the monetary penalty, contingent upon the
             269      licensee's initiating a training program for employees at that location within 30 days after the
             270      hearing date.
             271          (b) If the hearing officer determines at a subsequent hearing that the licensee has not
             272      implemented the training program within the time period required under Subsection (2)(a), the
             273      suspended monetary penalty shall be promptly imposed, unless the licensee demonstrates good


             274      cause for granting an extension of time for implementation of the training program.
             275          Section 6. Section 59-14a-101 is enacted to read:
             276     
CHAPTER 14a. ELECTRONIC CIGARETTE LICENSING ACT

             277          59-14a-101. Title.
             278          This chapter is known as the "Electronic Cigarette Licensing Act."
             279          Section 7. Section 59-14a-102 is enacted to read:
             280          59-14a-102. Definitions.
             281          As used in this chapter:
             282          (1) "Cigarette" is as defined in Section 59-14-102 .
             283          (2) (a) "Electronic cigarette" means:
             284          (i) any device, other than a cigar, cigarette, pipe, hookah, or other heated or lighted
             285      tobacco product, used to deliver or intended to deliver vapor containing nicotine to an
             286      individual's respiratory system; or
             287          (ii) any component of or accessory intended for use with the device described in
             288      Subsection (2)(a)(i);
             289          (b) "Electronic cigarette" includes an e-cigarette as defined in Section 26-38-2 .
             290          (3) "Electronic cigarette product" means an electronic cigarette or an electronic
             291      cigarette substance.
             292          (4) "Electronic cigarette substance" means any substance, including liquid containing
             293      nicotine, used or intended for use in an electronic cigarette.
             294          (5) "Enforcing agency" means the Department of Health, a county health department,
             295      or a local health department, when enforcing Title 26, Chapter 42, Civil Penalties for Tobacco
             296      Sales to Underage Persons.
             297          (6) "License to sell an electronic cigarette product" means a license issued by the
             298      commission under Subsection 59-14a-103 (3).
             299          (7) "Licensee" means a person that holds a valid license to sell electronic cigarette
             300      products.
             301          Section 8. Section 59-14a-103 is enacted to read:
             302          59-14a-103. Electronic cigarette licenses -- Sale.
             303          (1) Except as provided in Subsection (2), a person may not sell, offer to sell, or
             304      distribute an electronic cigarette product in Utah without first obtaining a license to sell an


             305      electronic cigarette product from the commission under this section.
             306          (2) A person that holds a valid license to sell cigarettes under section 59-14-202 , or a
             307      person that holds a valid license to sell tobacco products under Section 59-14-301 , may sell,
             308      offer to sell, or distribute an electronic cigarette product in Utah under the terms of this chapter.
             309          (3) Except as provided in Subsection (6), the commission shall issue a license to sell an
             310      electronic cigarette product to a person that:
             311          (a) submits an application, on a form created by the commission, that includes:
             312          (i) the person's name;
             313          (ii) the address of the facility where the person will sell an electronic cigarette product;
             314      and
             315          (iii) any other information the commission requires to implement this chapter; and
             316          (b) pays a fee:
             317          (i) in the amount of $30; or
             318          (ii) if renewing the person's license, in the amount of $20.
             319          (4) A license described in Subsection (3) is:
             320          (a) valid only at one business address;
             321          (b) valid for three years; and
             322          (c) renewable if a licensee meets the criteria for licensing described in Subsection (3).
             323          (5) The commission shall, after notifying a licensee, revoke a license described in
             324      Subsection (3) if an enforcing agency determines the licensee has violated a provision of Title
             325      26, Chapter 42, Civil Penalties for Tobacco Sales to Underage Persons.
             326          (6) If the commission revokes a person's license to sell an electronic cigarette product
             327      under Subsection (5), the commission may not issue a license to sell an electronic cigarette
             328      product, a license to sell cigarettes under Section 59-14-202 , or a license to sell tobacco under
             329      Section 59-14-301 to the person until one year after:
             330          (a) the day on which the time for filing an appeal of the revocation ends, as determined
             331      by the enforcing agency; or
             332          (b) if the person appeals the enforcing agency's decision to revoke the license to sell an
             333      electronic cigarette product, the day on which the enforcing agency's decision to uphold the
             334      revocation is final.
             335          (7) The commission may make rules in accordance with Title 63G, Chapter 3, Utah


             336      Administrative Rulemaking Act, to establish the additional information described in
             337      Subsection (3)(a)(iii) that a person must provide in the application described in Subsection
             338      (3)(a).
             339          (8) The commission shall maintain a list of all licensees.
             340          Section 9. Section 76-10-101 is amended to read:
             341           76-10-101. Definitions.
             342          As used in this part:
             343          (1) "Cigar" means a product that contains nicotine, is intended to be burned under
             344      ordinary conditions of use, and consists of any roll of tobacco wrapped in leaf tobacco, or in
             345      any substance containing tobacco, other than any roll of tobacco that is a cigarette as described
             346      in Subsection (2).
             347          (2) "Cigarette" means a product that contains nicotine, is intended to be burned under
             348      ordinary conditions of use, and consists of:
             349          (a) any roll of tobacco wrapped in paper or in any substance not containing tobacco; or
             350          (b) any roll of tobacco wrapped in any substance containing tobacco which, because of
             351      its appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to
             352      be offered to, or purchased by, consumers as a cigarette described in Subsection (2)(a).
             353          (3) "Electronic cigarette" is as defined in Section 59-14a-102 .
             354          [(3)] (4) "Electronic cigarette product" [means any device, other than a cigarette or
             355      cigar, intended to deliver vapor containing nicotine into a person's respiratory system] is as
             356      defined in Section 59-14a-102 .
             357          [(4)] (5) "Place of business" includes:
             358          (a) a shop;
             359          (b) a store;
             360          (c) a factory;
             361          (d) a public garage;
             362          (e) an office;
             363          (f) a theater;
             364          (g) a recreation hall;
             365          (h) a dance hall;
             366          (i) a poolroom;


             367          (j) a café;
             368          (k) a cafeteria;
             369          (l) a cabaret;
             370          (m) a restaurant;
             371          (n) a hotel;
             372          (o) a lodging house;
             373          (p) a streetcar;
             374          (q) a bus;
             375          (r) an interurban or railway passenger coach;
             376          (s) a waiting room; and
             377          (t) any other place of business.
             378          [(5)] (6) "Smoking" means the possession of any lighted cigar, cigarette, pipe, or other
             379      lighted smoking equipment.
             380          Section 10. Section 76-10-103 is amended to read:
             381           76-10-103. Permitting minors to use tobacco or an electronic cigarette product in
             382      place of business.
             383          It is a class C misdemeanor for the proprietor of any place of business to knowingly
             384      permit [persons under age] an individual who is less than 19 [to frequent a place of business
             385      while they are using tobacco] years of age to smoke or to use an electronic cigarette in the place
             386      of business.
             387          Section 11. Section 76-10-104 is amended to read:
             388           76-10-104. Providing a cigar, cigarette, electronic cigarette, or tobacco to a minor
             389      -- Penalties.
             390          (1) Any person who knowingly, intentionally, recklessly, or with criminal negligence
             391      provides any cigar, cigarette, electronic cigarette product, or tobacco in any form, to [any
             392      person] an individual under 19 years of age, is guilty of a class C misdemeanor on the first
             393      offense, a class B misdemeanor on the second offense, and a class A misdemeanor on
             394      subsequent offenses.
             395          (2) For purposes of this section "provides":
             396          (a) includes selling, giving, furnishing, sending, or causing to be sent; and
             397          (b) does not include the acts of the United States Postal Service or other common


             398      carrier when engaged in the business of transporting and delivering packages for others or the
             399      acts of a person, whether compensated or not, who transports or delivers a package for another
             400      person without any reason to know of the package's content.
             401          Section 12. Section 76-10-105 is amended to read:
             402           76-10-105. Buying or possessing a cigar, cigarette, electronic cigarette, or tobacco
             403      by a minor -- Penalty -- Compliance officer authority -- Juvenile court jurisdiction.
             404          (1) [Any] An individual who is 18 [year old person] years of age who buys or attempts
             405      to buy, accepts, or has in the [person's] individual's possession any cigar, cigarette, electronic
             406      cigarette product, or tobacco in any form is guilty of a class C misdemeanor and subject to:
             407          (a) a minimum fine or penalty of $60; and
             408          (b) participation in a court-approved tobacco education program, which may include a
             409      participation fee.
             410          (2) [Any person under the age of 18] An individual less than 18 years of age who buys
             411      or attempts to buy, accepts, or has in the [person's] individual's possession any cigar, cigarette,
             412      electronic cigarette product, or tobacco in any form is subject to the jurisdiction of the Juvenile
             413      Court and:
             414          (a) a minimum fine or penalty of $60; and
             415          (b) participation in a court-approved tobacco education program, which may include a
             416      participation fee.
             417          (3) A compliance officer appointed by a board of education under Section 53A-3-402
             418      may issue citations for violations of this section committed on school property. Cited
             419      violations shall be reported to the appropriate juvenile court.
             420          Section 13. Section 76-10-105.1 is amended to read:
             421           76-10-105.1. Requirement of direct, face-to-face sale of tobacco products and
             422      electronic cigarettes -- Supremacy clause -- Penalties.
             423          (1) As used in this section:
             424          (a) "Cigarette tobacco" means a product that consists of loose tobacco that contains or
             425      delivers nicotine and is intended for use by a consumer in a cigarette.
             426          (b) "Pipe tobacco" means a product that consists of loose tobacco that contains or
             427      delivers nicotine and is intended to be smoked by a consumer in a pipe.
             428          (c) "Retailer" means a person who sells cigarettes, electronic [cigarettes] cigarette


             429      products, cigars, cigarette tobacco, pipe tobacco, or smokeless tobacco to individuals for
             430      personal consumption or who operates a facility where a vending machine or a self-service
             431      display is permitted under Subsection (3)(b).
             432          (d) "Self-service display" means a display of cigarettes, electronic [cigarettes] cigarette
             433      products, cigars, cigarette tobacco, pipe tobacco, or smokeless tobacco products to which the
             434      public has access without the intervention of a retail employee.
             435          (e) "Smokeless tobacco" means a product that consists of cut, ground, powdered, or
             436      leaf tobacco that contains nicotine and that is intended to be placed in the oral cavity.
             437          (2) (a) Except as provided in Subsection (3), a retailer may sell cigarettes, electronic
             438      [cigarettes] cigarette products, cigars, cigarette tobacco, pipe tobacco, and smokeless tobacco
             439      only in a direct, face-to-face exchange between:
             440          (i) an employee of the retailer; and
             441          (ii) the purchaser.
             442          (b) Examples of methods that are not permitted include vending machines and
             443      self-service displays.
             444          (c) Subsections (2)(a) and (b) do not prohibit the use or display of locked cabinets
             445      containing cigarettes, electronic [cigarettes] cigarette products, cigars, cigarette tobacco, pipe
             446      tobacco, or smokeless tobacco if the locked cabinets are accessible only to the retailer or the
             447      retailer's employees.
             448          (3) The following sales are permitted as exceptions to Subsection (2):
             449          (a) mail-order sales, if the provisions of Section 59-14-509 are met;
             450          (b) sales from vending machines, including vending machines that sell packaged,
             451      single cigarettes or cigars, and self-service displays that are located in a separate and defined
             452      area within a facility where the retailer ensures that no person younger than 19 years of age is
             453      present, or permitted to enter, at any time, unless accompanied by a parent or legal guardian;
             454      and
             455          (c) sales by a retailer from a retail store [which] that derives at least 80% of its revenue
             456      from tobacco, [and] tobacco related products, and electronic cigarette products, and where the
             457      retailer ensures that no person younger than 19 years of age is present, or permitted to enter at
             458      any time, unless accompanied by a parent or legal guardian.
             459          (4) Any ordinance, regulation, or rule adopted by the governing body of a political


             460      subdivision of the state or by a state agency that affects the sale, placement, or display of
             461      cigarettes, electronic [cigarettes] cigarette products, cigars, cigarette tobacco, pipe tobacco, or
             462      smokeless tobacco that is not essentially identical to the provisions of this section and Section
             463      76-10-102 is superseded.
             464          (5) (a) A parent or legal guardian who accompanies a person younger than 19 years of
             465      age into an area described in Subsection (3)(b) or into a retail store as described in Subsection
             466      (3)(c) and permits the person younger than 19 years of age to purchase or otherwise take a
             467      cigar, cigarette, electronic cigarette product, or tobacco in any form is guilty of providing
             468      tobacco as provided for in Section 76-10-104 and the penalties provided for in that section.
             469          (b) Nothing in this section may be construed as permitting a person to provide tobacco
             470      to a minor in violation of Section 76-10-104 .
             471          (6) Violation of Subsection (2) or (3) is a:
             472          (a) class C misdemeanor on the first offense;
             473          (b) class B misdemeanor on the second offense; and
             474          (c) class A misdemeanor on the third and all subsequent offenses.
             475          Section 14. Section 76-10-111 is amended to read:
             476           76-10-111. Prohibition of gift or free distribution of smokeless tobacco or
             477      electronic cigarette products -- Exceptions.
             478          (1) The Legislature finds that:
             479          (a) smokeless tobacco, or chewing tobacco, is harmful to the health of individuals who
             480      use those products because research indicates that they may cause mouth or oral cancers;
             481          (b) the use of smokeless tobacco among juveniles in this state is increasing rapidly;
             482          (c) the use of electronic [cigarettes] cigarette products may lead to unhealthy behavior
             483      such as the use of tobacco products; and
             484          (d) it is necessary to restrict the gift of the products described in this Subsection (1) in
             485      the interest of the health of the citizens of this state.
             486          (2) Except as provided in Subsection (3), it is unlawful for a manufacturer, wholesaler,
             487      and retailer to give or distribute without charge any smokeless tobacco, chewing tobacco, or
             488      electronic cigarette product in this state. Any person who violates this section is guilty of a
             489      class C misdemeanor for the first offense, and is guilty of a class B misdemeanor for any
             490      subsequent offense.


             491          (3) (a) Smokeless tobacco, chewing tobacco, or an electronic cigarette product may be
             492      distributed to adults without charge at professional conventions where the general public is
             493      excluded.
             494          (b) Subsection (2) does not apply to a retailer, manufacturer, or distributor who gives
             495      smokeless tobacco, chewing tobacco, or an electronic cigarette product to a person of legal age
             496      upon the person's purchase of another tobacco product or electronic cigarette product.
             497          Section 15. Section 77-39-101 is amended to read:
             498           77-39-101. Investigation of sales of alcohol, tobacco, and electronic cigarettes to
             499      underage persons.
             500          (1) As used in this section, "electronic cigarette product" is as defined in Section
             501      [ 76-10-101 ] 59-14a-102 .
             502          (2) (a) A peace officer, as defined by Title 53, Chapter 13, Peace Officer
             503      Classifications, may investigate the possible violation of:
             504          (i) Section 32B-4-403 by requesting an individual under the age of 21 years to enter
             505      into and attempt to purchase or make a purchase of alcohol from a retail establishment; or
             506          (ii) Section 76-10-104 by requesting an individual under the age of 19 years to enter
             507      into and attempt to purchase or make a purchase from a retail establishment of:
             508          (A) a cigar;
             509          (B) a cigarette;
             510          (C) tobacco in any form; or
             511          (D) an electronic cigarette product.
             512          (b) A peace officer who is present at the site of a proposed purchase shall direct,
             513      supervise, and monitor the individual requested to make the purchase.
             514          (c) Immediately following a purchase or attempted purchase or as soon as practical the
             515      supervising peace officer shall inform the cashier and the proprietor or manager of the retail
             516      establishment that the attempted purchaser was under the legal age to purchase:
             517          (i) alcohol; or
             518          (ii) (A) a cigar;
             519          (B) a cigarette;
             520          (C) tobacco in any form; or
             521          (D) an electronic cigarette product.


             522          (d) If a citation or information is issued, it shall be issued within seven days of the
             523      purchase.
             524          (3) (a) If an individual under the age of 18 years old is requested to attempt a purchase,
             525      a written consent of that individual's parent or guardian shall be obtained prior to that
             526      individual participating in any attempted purchase.
             527          (b) An individual requested by the peace officer to attempt a purchase may:
             528          (i) be a trained volunteer; or
             529          (ii) receive payment, but may not be paid based on the number of successful purchases
             530      of alcohol, tobacco, or an electronic cigarette product.
             531          (4) The individual requested by the peace officer to attempt a purchase and anyone
             532      accompanying the individual attempting a purchase may not during the attempted purchase
             533      misrepresent the age of the individual by false or misleading identification documentation in
             534      attempting the purchase.
             535          (5) An individual requested to attempt to purchase or make a purchase pursuant to this
             536      section is immune from prosecution, suit, or civil liability for the purchase of, attempted
             537      purchase of, or possession of alcohol, a cigar, a cigarette, tobacco in any form, or an electronic
             538      cigarette product if a peace officer directs, supervises, and monitors the individual.
             539          (6) (a) Except as provided in Subsection (6)(b), a purchase attempted under this section
             540      shall be conducted:
             541          (i) on a random basis; and
             542          (ii) within a 12-month period at any one retail establishment location not more often
             543      than:
             544          (A) four times for the attempted purchase of:
             545          (I) a cigar;
             546          (II) a cigarette;
             547          (III) tobacco in any form; or
             548          (IV) an electronic cigarette product; and
             549          (B) four times for the attempted purchase of alcohol.
             550          (b) Nothing in this section shall prohibit an investigation under this section if:
             551          (i) there is reasonable suspicion to believe the retail establishment has sold alcohol, a
             552      cigar, a cigarette, tobacco in any form, or an electronic cigarette product to an individual under


             553      the age established by Section 32B-4-403 or 76-10-104 ; and
             554          (ii) the supervising peace officer makes a written record of the grounds for the
             555      reasonable suspicion.
             556          (7) (a) The peace officer exercising direction, supervision, and monitoring of the
             557      attempted purchase shall make a report of the attempted purchase, whether or not a purchase
             558      was made.
             559          (b) The report required by this Subsection (7) shall include:
             560          (i) the name of the supervising peace officer;
             561          (ii) the name of the individual attempting the purchase;
             562          (iii) a photograph of the individual attempting the purchase showing how that
             563      individual appeared at the time of the attempted purchase;
             564          (iv) the name and description of the cashier or proprietor from whom the individual
             565      attempted the purchase;
             566          (v) the name and address of the retail establishment; and
             567          (vi) the date and time of the attempted purchase.
             568          Section 16. Effective date.
             569          This bill takes effect on July 1, 2014.


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