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7 LONG TITLE
8 General Description:
9 This bill enacts and amends provisions related to electronic cigarette products.
10 Highlighted Provisions:
11 This bill:
12 ▸ requires a person to obtain a license in order to sell or distribute an electronic
13 cigarette product; and
14 ▸ provides product quality and labeling standards for an electronic cigarette product.
15 Money Appropriated in this Bill:
16 None
17 Other Special Clauses:
18 None
19 Utah Code Sections Affected:
20 AMENDS:
21 26-42-102, as enacted by Laws of Utah 1998, Chapter 319
22 26-42-103, as last amended by Laws of Utah 2011, Chapter 96
23 26-42-107, as enacted by Laws of Utah 1998, Chapter 319
24 76-10-101, as last amended by Laws of Utah 2010, Chapter 114
25 ENACTS:
26 26-57-101, Utah Code Annotated 1953
27 26-57-102, Utah Code Annotated 1953
28 26-57-103, Utah Code Annotated 1953
29 59-14-801, Utah Code Annotated 1953
30 59-14-802, Utah Code Annotated 1953
31 59-14-803, Utah Code Annotated 1953
32
33 Be it enacted by the Legislature of the state of Utah:
34 Section 1. Section 26-42-102 is amended to read:
35 26-42-102. Definitions.
36 As used in this chapter:
37 (1) "Commission" means the Utah State Tax Commission.
38 (2) "Employee" means an employee of a licensee.
39 (3) "Enforcing agency" means the state Department of Health, or any local health
40 department enforcing the provisions of this chapter.
41 (4) "Licensee" means a person licensed:
42 (a) under Section 59-14-201 to sell cigarettes at retail; [
43 (b) under Section 59-14-301 to sell tobacco products at retail[
44 (c) under Section 59-14-803 to sell an electronic cigarette product.
45 (5) "License to sell tobacco" or "license" means a license issued:
46 (a) under Section 59-14-201 to sell cigarettes at retail; [
47 (b) under Section 59-14-301 to sell tobacco products at retail[
48 (c) under Section 59-14-803 to sell an electronic cigarette product.
49 (6) "Tobacco" means [
50 (a) a cigarette or a tobacco product, as defined in Section 59-14-102[
51 (b) an electronic cigarette product, as defined in Section 59-14-802.
52 Section 2. Section 26-42-103 is amended to read:
53 26-42-103. Violations and penalties -- Imposition by enforcing agency and tax
54 commission.
55 (1) If, following an investigation or issuance of a citation or information under Section
56 77-39-101, an enforcing agency determines under Section 26-42-104 that a licensee or any
57 employee has sold tobacco to a person younger than 19 years of age, as prohibited by Section
58 76-10-104, the enforcing agency may impose upon the licensee the following administrative
59 penalties:
60 (a) upon the first violation, a penalty of not more than $300;
61 (b) upon a second violation at the same retail location, and within 12 months of the
62 first violation, a penalty of not more than $750; and
63 (c) upon a third or subsequent violation at the same retail location and within 12
64 months of the first violation, a penalty of not more than $1,000.
65 (2) The enforcing agency shall notify the commission in writing of any order or order
66 of default finding a violation of Subsection (1) which is a third or fourth violation.
67 (3) The commission, upon receipt of the written notification under Subsection (2), shall
68 take action under Section 59-14-203.5 or 59-14-301.5 against the license to sell tobacco:
69 (a) by suspending the licensee's license to sell tobacco at that location for not more
70 than 30 days, upon receipt of notification of a third violation under Subsection (1)(c); and
71 (b) by revoking the license to sell tobacco at that location held by the licensee,
72 including any license under suspension, upon receipt of notification of a fourth violation under
73 Subsection (1)(c).
74 (4) When the commission revokes a license under Subsection (3)(b), the commission
75 may not issue to the licensee, or to the business entity using the license that is revoked, a
76 license under Section 59-14-202 [
77 for which the license was issued for one year after:
78 (a) the day on which the time for filing an appeal of the revocation ends; or
79 (b) if the revocation is appealed, the day on which the decision to uphold the
80 revocation becomes final.
81 (5) This section does not prevent any bona fide purchaser of the business, who is not a
82 sole proprietor, director, corporate officer, or partner or other holder of significant interest in
83 the entity selling the business, from immediately applying for and obtaining a license to sell
84 tobacco.
85 Section 3. Section 26-42-107 is amended to read:
86 26-42-107. Allocation of civil penalties.
87 Civil monetary penalties collected under this chapter shall be allocated as follows:
88 (1) if a local health department conducts an adjudicative proceeding under Section
89 26-42-104, the penalty shall be paid to the treasurer of the county in which the violation was
90 committed, and transferred to:
91 (a) the local health department if it conducts a civil hearing under Section 26-42-104
92 alone; or
93 (b) in equal portions to the local health department and the other agencies that
94 participated in the hearing process;
95 (2) if the state Department of Health conducts a civil hearing under Section 26-42-104,
96 the penalty shall be deposited in the state's General Fund, and may be appropriated by the
97 Legislature to the state Department of Health for use in enforcement of this chapter; and
98 (3) if the civil penalty involves suspension or revocation of a license to sell tobacco
99 under Section 59-14-203.5 [
100 the commission, and the other half shall be allocated under Subsection (1) or (2), as
101 appropriate.
102 Section 4. Section 26-57-101 is enacted to read:
103
104 26-57-101. Title.
105 This chapter is known as the "Electronic Cigarette Regulation Act."
106 Section 5. Section 26-57-102 is enacted to read:
107 26-57-102. Definitions.
108 As used in this chapter:
109 (1) "Cigarette" means the same as that term is defined in Section 59-14-102.
110 (2) "Electronic cigarette" means the same as that term is defined in Section 59-14-802.
111 (3) "Electronic cigarette product" means an electronic cigarette or an electronic
112 cigarette substance.
113 (4) "Electronic cigarette substance" means the same as that term is defined in Section
114 59-14-802.
115 (5) "Manufacture" includes:
116 (a) to cast, construct, or make electronic cigarettes; or
117 (b) to blend, make, process, or prepare an electronic cigarette substance.
118 (6) "Pharmaceutical-grade nicotine" means nicotine that meets the specifications of the
119 United States Pharmacopeia for food-grade or pharmaceutical-grade nicotine.
120 Section 6. Section 26-57-103 is enacted to read:
121 26-57-103. Electronic cigarette products -- Labeling -- Manufacturing and quality
122 control standards -- Low-grade nicotine -- Advertising.
123 (1) A person may not sell an electronic cigarette product unless the electronic cigarette
124 product:
125 (a) has a label that includes the electronic cigarette product's:
126 (i) manufacturer name;
127 (ii) ingredients; and
128 (iii) nicotine content;
129 (b) is sold in a container with child-resistant packaging; and
130 (c) contains, if any, nicotine that is pharmaceutical-grade nicotine.
131 (2) An individual who is less than 19 years old may not:
132 (a) sell, offer to sell, or distribute an electronic cigarette product; or
133 (b) as a person's agent, sell, offer to sell, or distribute an electronic cigarette product.
134 (3) A person may not advertise an electronic cigarette:
135 (a) as a tobacco cessation device;
136 (b) if the person is not licensed to sell an electronic cigarette product under Section
137 59-14-803; or
138 (c) during a period of time when the person's license to sell an electronic cigarette
139 product under Section 59-14-803 has been suspended or revoked.
140 Section 7. Section 59-14-801 is enacted to read:
141
142 59-14-801. Title.
143 This part is known as the "Electronic Cigarette Licensing Act."
144 Section 8. Section 59-14-802 is enacted to read:
145 59-14-802. Definitions.
146 As used in this part:
147 (1) "Cigarette" means the same as that term is defined in Section 59-14-102.
148 (2) (a) "Electronic cigarette" means:
149 (i) an electronic device used to deliver or capable of delivering vapor containing
150 nicotine to an individual's respiratory system; or
151 (ii) any component of or accessory intended for use with the device described in
152 Subsection (2)(a)(i).
153 (b) "Electronic cigarette" includes an e-cigarette as defined in Section 26-38-2.
154 (3) "Electronic cigarette product" means an electronic cigarette or an electronic
155 cigarette substance.
156 (4) "Electronic cigarette substance" means any substance, including liquid containing
157 nicotine, used or intended for use in an electronic cigarette.
158 (5) "Enforcing agency" means the Department of Health, a county health department,
159 or a local health department, when enforcing:
160 (i) Title 26, Chapter 42, Civil Penalties for Tobacco Sales to Underage Persons; or
161 (ii) Title 26, Chapter 57, Electronic Cigarette Regulation Act.
162 (6) "License to sell an electronic cigarette product" means a license issued by the
163 commission under Subsection 59-14-803(3).
164 (7) "Licensee" means a person that holds a valid license to sell electronic cigarette
165 products.
166 (8) "Manufacturer's sale price" means the amount a manufacturer of an electronic
167 cigarette product charges for the electronic cigarette product.
168 Section 9. Section 59-14-803 is enacted to read:
169 59-14-803. Electronic cigarette licenses -- Sale.
170 (1) Except as provided in Subsection (2), a person may not sell, offer to sell, or
171 distribute an electronic cigarette product in Utah without first obtaining a license to sell an
172 electronic cigarette product from the commission under this section.
173 (2) A person that holds a valid license to sell cigarettes under Section 59-14-202, or a
174 person that holds a valid license to sell tobacco products under Section 59-14-301, may,
175 without obtaining a separate license to sell an electronic cigarette product under this part, sell,
176 offer to sell, or distribute an electronic cigarette product in Utah in accordance with this part.
177 (3) Except as provided in Subsection (6), the commission shall issue a license to sell an
178 electronic cigarette product to a person that:
179 (a) submits an application, on a form created by the commission, that includes:
180 (i) the person's name;
181 (ii) the address of the facility where the person will sell an electronic cigarette product;
182 and
183 (iii) any other information the commission requires to implement this chapter; and
184 (b) pays a fee:
185 (i) in the amount of $30; or
186 (ii) if renewing the person's license, in the amount of $20.
187 (4) A license described in Subsection (3) is:
188 (a) valid only at one fixed business address;
189 (b) valid for three years;
190 (c) valid only for a physical location; and
191 (d) renewable if a licensee meets the criteria for licensing described in Subsection (3).
192 (5) The commission shall, after notifying a licensee, revoke a license described in
193 Subsection (3) if an enforcing agency determines the licensee has violated a provision of:
194 (a) Title 26, Chapter 42, Civil Penalties for Tobacco Sales to Underage Persons; or
195 (b) Title 26, Chapter 57, Electronic Cigarette Regulation Act.
196 (6) If the commission revokes a person's license to sell an electronic cigarette product
197 under Subsection (5), the commission may not issue a license to sell an electronic cigarette
198 product, a license to sell cigarettes under Section 59-14-102, or a license to sell tobacco under
199 Section 59-14-301 to the person until one year after:
200 (a) the day on which the time for filing an appeal of the revocation ends, as determined
201 by the enforcing agency; or
202 (b) if the person appeals the enforcing agency's decision to revoke the license to sell an
203 electronic cigarette product, the day on which the enforcing agency's decision to uphold the
204 revocation is final.
205 (7) The commission may make rules in accordance with Title 63G, Chapter 3, Utah
206 Administrative Rulemaking Act, to establish the additional information described in
207 Subsection (3)(a)(iii) that a person must provide in the application described in Subsection
208 (3)(a).
209 (8) The commission shall maintain a list of all licensees.
210 Section 10. Section 76-10-101 is amended to read:
211 76-10-101. Definitions.
212 As used in this part:
213 (1) "Cigar" means a product that contains nicotine, is intended to be burned under
214 ordinary conditions of use, and consists of any roll of tobacco wrapped in leaf tobacco, or in
215 any substance containing tobacco, other than any roll of tobacco that is a cigarette as described
216 in Subsection (2).
217 (2) "Cigarette" means a product that contains nicotine, is intended to be burned under
218 ordinary conditions of use, and consists of:
219 (a) any roll of tobacco wrapped in paper or in any substance not containing tobacco; or
220 (b) any roll of tobacco wrapped in any substance containing tobacco which, because of
221 its appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to
222 be offered to, or purchased by, consumers as a cigarette described in Subsection (2)(a).
223 (3) "Electronic cigarette" means [
224
225 product, as defined in Section 59-14-802.
226 (4) "Place of business" includes:
227 (a) a shop;
228 (b) a store;
229 (c) a factory;
230 (d) a public garage;
231 (e) an office;
232 (f) a theater;
233 (g) a recreation hall;
234 (h) a dance hall;
235 (i) a poolroom;
236 (j) a café;
237 (k) a cafeteria;
238 (l) a cabaret;
239 (m) a restaurant;
240 (n) a hotel;
241 (o) a lodging house;
242 (p) a streetcar;
243 (q) a bus;
244 (r) an interurban or railway passenger coach;
245 (s) a waiting room; and
246 (t) any other place of business.
247 (5) "Smoking" means the possession of any lighted cigar, cigarette, pipe, or other
248 lighted smoking equipment.
Legislative Review Note
as of 2-17-15 6:32 PM
Office of Legislative Research and General Counsel