1     
TOBACCO SALES ENFORCEMENT AMENDMENTS

2     
2017 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Robert M. Spendlove

5     
Senate Sponsor: ____________

6     

7     LONG TITLE
8     General Description:
9          This bill amends penalties for selling tobacco to a minor.
10     Highlighted Provisions:
11          This bill:
12          ▸     requires an enforcing agency to impose administrative penalties against violators;
13     and
14          ▸     increases administrative penalties against violators.
15     Money Appropriated in this Bill:
16          None
17     Other Special Clauses:
18          None
19     Utah Code Sections Affected:
20     AMENDS:
21          26-42-103, as last amended by Laws of Utah 2015, Chapter 132
22          26-42-106, as enacted by Laws of Utah 1998, Chapter 319
23     

24     Be it enacted by the Legislature of the state of Utah:
25          Section 1. Section 26-42-103 is amended to read:
26          26-42-103. Violations and penalties -- Imposition by enforcing agency and tax
27     commission.

28          (1) If, following an investigation or issuance of a citation or information under Section
29     77-39-101, an enforcing agency determines under Section 26-42-104 that a licensee or [any] an
30     employee of a licensee has sold tobacco to [a person] an individual younger than 19 years of
31     age, as prohibited by Section 76-10-104, the enforcing agency [may] shall, except as prohibited
32     in Subsection 26-42-105(2), impose upon the licensee the following administrative penalties:
33          (a) upon the first violation, a penalty of [not more] no less than $300 and no more than
34     $750;
35          (b) upon a second violation at the same retail location, and within [12 months of] 36
36     months after the first violation, a penalty of [not more] no less than $750 and no more than
37     $1,000; and
38          (c) upon a third or subsequent violation at the same retail location and within [12
39     months of the first] 36 months after the second violation, a penalty of [not more] no less than
40     $1,000 and no more than $1,500.
41          (2) The enforcing agency shall notify the commission in writing of any order or order
42     of default finding a violation of Subsection (1) which is a third or fourth violation.
43          (3) The commission, upon receipt of the written notification under Subsection (2), shall
44     take action under Section 59-14-203.5 or 59-14-301.5 against the license to sell tobacco:
45          (a) by suspending the licensee's license to sell tobacco at that location for not more
46     than [30] 90 days, upon receipt of notification of a third violation under Subsection (1)(c); and
47          (b) by revoking the license to sell tobacco at that location held by the licensee,
48     including any license under suspension, upon receipt of notification of a fourth violation under
49     Subsection (1)(c).
50          (4) When the commission revokes a license under Subsection (3)(b), the commission
51     may not issue to the licensee, or to the business entity using the license that is revoked, a
52     license under Section 59-14-202, 59-14-301, or 59-14-803 to sell tobacco at the location for
53     which the license was issued for one year after:
54          (a) the day on which the time for filing an appeal of the revocation ends; or
55          (b) if the revocation is appealed, the day on which the decision to uphold the
56     revocation becomes final.
57          (5) This section does not prevent any bona fide purchaser of the business, who is not a
58     sole proprietor, director, corporate officer, or partner or other holder of significant interest in

59     the entity selling the business, from immediately applying for and obtaining a license to sell
60     tobacco.
61          Section 2. Section 26-42-106 is amended to read:
62          26-42-106. Recognition of licensee's training program.
63          (1) In determining the amount of the monetary penalty to be imposed for an employee's
64     violation of Section 26-42-103, the hearing officer [shall] may reduce the penalty [by at least
65     50%] if [he] the hearing officer determines:
66          (a) the licensee has implemented a documented employee training program; and
67          (b) the employee has completed that training program within 30 days of commencing
68     duties of selling tobacco products.
69          (2) (a) If the hearing officer determines under Subsection (1), regarding a first offense
70     at a location, that the licensee has not implemented a documented training program with a
71     written curriculum for employees at that location regarding compliance with this chapter, the
72     hearing officer may suspend [all or] a portion of the monetary penalty, contingent upon the
73     licensee's initiating a training program for employees at that location within 30 days after the
74     hearing date.
75          (b) If the hearing officer determines at a subsequent hearing that the licensee has not
76     implemented the training program within the time period required under Subsection (2)(a), the
77     suspended monetary penalty shall be promptly imposed, unless the licensee demonstrates good
78     cause for granting an extension of time for implementation of the training program.






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