Representative Bradley G. Last proposes the following substitute bill:


1     
AMENDMENTS TO TOBACCO REGULATIONS

2     
2017 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Bradley G. Last

5     
Senate Sponsor: Evan J. Vickers

6     

7     LONG TITLE
8     General Description:
9          This bill establishes new requirements for the licensing of tobacco retail shops and
10     amends the definition of smoking.
11     Highlighted Provisions:
12          This bill:
13          ▸     amends municipal and county business license practices for a retail tobacco
14     specialty business;
15          ▸     amends the definition of smoking in the Utah Indoor Clean Air Act;
16          ▸     beginning January 1, 2018, requires a retail tobacco specialty business to obtain a
17     permit from the local health department;
18          ▸     establishes requirements for the tobacco permit application;
19          ▸     establishes the standards a local health department shall apply when determining
20     whether to issue a permit to a retail tobacco specialty business;
21          ▸     gives the local health department and the state Health Department enforcement
22     authority; and
23          ▸     provides penalties for violations of the tobacco permits.
24     Money Appropriated in this Bill:
25          None

26     Other Special Clauses:
27          None
28     Utah Code Sections Affected:
29     AMENDS:
30          10-8-41.6, as enacted by Laws of Utah 2012, Chapter 154
31          17-50-333, as enacted by Laws of Utah 2012, Chapter 154
32          26-38-2, as last amended by Laws of Utah 2012, Chapter 171
33     ENACTS:
34          26-59-101, Utah Code Annotated 1953
35          26-59-102, Utah Code Annotated 1953
36          26-59-103, Utah Code Annotated 1953
37          26-59-104, Utah Code Annotated 1953
38          26-59-105, Utah Code Annotated 1953
39          26-59-106, Utah Code Annotated 1953
40          26-59-107, Utah Code Annotated 1953
41          26A-1-128, Utah Code Annotated 1953
42     

43     Be it enacted by the Legislature of the state of Utah:
44          Section 1. Section 10-8-41.6 is amended to read:
45          10-8-41.6. Regulation of retail tobacco specialty business.
46          (1) As used in this section:
47          (a) "Community location" means:
48          (i) a public or private kindergarten, elementary, middle, junior high, or high school;
49          (ii) a licensed child-care facility or preschool;
50          (iii) a trade or technical school;
51          (iv) a church;
52          (v) a public library;
53          (vi) a public playground;
54          (vii) a public park;
55          (viii) a youth center or other space used primarily for youth oriented activities;
56          (ix) a public recreational facility; [or]

57          (x) a public arcade[.]; or
58          (xi) for a license issued on or after July 1, 2017, a homeless shelter.
59          (b) "Health Department" means the same as "department," as that term is defined in
60     Section 26-1-2.
61          (c) "Local health department" means the same as that term is defined in Section
62     26A-1-102.
63          [(b)] (d) "Retail tobacco specialty business" means a commercial establishment:
64          (i) in which:
65          [(i)] (A) the sale of tobacco products accounts for more than 35% of the total annual
66     gross receipts for the establishment;
67          [(ii)] (B) food and beverage products, excluding gasoline sales, is less than 45% of the
68     total annual gross receipts for the establishment; and
69          [(iii)] (C) the establishment is not licensed as a pharmacy under Title 58, Chapter 17b,
70     Pharmacy Practice Act[.]; or
71          (ii) 40% or more of the retail floor and shelf space is allocated to the offer, display, or
72     storage of tobacco products.
73          [(c)] (e) "Tobacco product" means:
74          (i) any cigar, cigarette, or electronic cigarette as defined in Section 76-10-101;
75          (ii) a tobacco product as defined in Section 59-14-102, including:
76          (A) chewing tobacco; or
77          (B) any substitute for a tobacco product, including flavoring or additives to tobacco;
78     and
79          (iii) tobacco paraphernalia as defined in Section 76-10-104.1.
80          (2) The regulation of a retail tobacco specialty business is an exercise of the police
81     powers of the state, and through delegation, to other governmental entities.
82          (3) (a) Except as provided in Subsection [(7)] (8), and beginning July 1, 2012, a
83     municipality shall require an entity to be licensed as a retail tobacco specialty business to
84     conduct business as a retail tobacco specialty business in a municipality.
85          (b) A municipality may issue a retail tobacco specialty business license to an entity if
86     the entity complies with the provisions of [Subsection (5)] Subsections (5) and (6).
87          (4) [Except as provided in Subsection (7), and beginning July 1, 2012, a] A business

88     entity that [conducts] obtained a license as a retail tobacco specialty business in a municipality
89     [shall be licensed by the municipality as a retail tobacco specialty business] before July 1,
90     2017, or is operating under an exemption under Subsection (8) shall, on or before January 1,
91     2018, obtain a permit from a local health department under Title 26, Chapter 59, Tobacco
92     Retail Permit .
93          (5) (a) A municipality may not issue a license to a retail tobacco specialty business if it
94     is located within:
95          (i) 1,000 feet of a community location;
96          (ii) 600 feet of another retail tobacco specialty business; or
97          (iii) 600 feet from property used or zoned for:
98          (A) agriculture use; or
99          (B) residential use.
100          (b) For purposes of Subsection (5)(a), the proximity requirements shall be measured in
101     a straight line from the nearest entrance of the retail tobacco specialty business to the nearest
102     property boundary of the community location, or agricultural or residential use, without regard
103     to intervening structures or zoning districts.
104          (6) (a) Beginning July 1, 2017, a county may not issue a license to an applicant for a
105     retail tobacco specialty business until the applicant provides the county with:
106          (i) a permit for a retail tobacco specialty business issued under Title 26, Chapter 59,
107     Tobacco Retail Permit by the local health department in which the retail tobacco specialty
108     business is located; and
109          (ii) a license to sell tobacco products from the State Tax Commission.
110          (b) A retail tobacco specialty business that does not have a permit under Subsection (4)
111     or (6)(a):
112          (i) shall keep tobacco products and tobacco paraphernalia from public view;
113          (ii) may not display any advertisement related to tobacco or tobacco paraphernalia that
114     promotes the sale, distribution, or use of such products; and
115          (iii) may not sell, offer for sale, or offer to exchange for any form of consideration,
116     tobacco, tobacco products, or tobacco paraphernalia.
117          [(6)] (7) (a) Nothing in this section:
118          (i) requires a municipality to issue a business license to a retail tobacco specialty

119     business; or
120          (ii) prohibits a municipality from adopting more restrictive requirements on a tobacco
121     specialty business than provided for in this section.
122          (b) A municipality may suspend or revoke a business license issued under this section:
123          (i) if a licensee engages in a pattern of unlawful activity under Title 76, Chapter 10,
124     Part 16, Pattern of Unlawful Activity Act;
125          (ii) if a licensee violates the regulations restricting the sale and distribution of
126     cigarettes and smokeless tobacco to protect children and adolescents issued by the United
127     States Food and Drug Administration, 21 C.F.R. Part 1140; [or]
128          (iii) upon the recommendation of the Health Department or a local health department
129     under Title 26, Chapter 59, Tobacco Retail Permit; or
130          [(iii)] (iv) under other provisions of state law or local ordinance.
131          [(7)] (8) (a) In accordance with Subsection [(7)] (8)(b), a retail tobacco specialty
132     business that has a business license and is operating lawfully in a municipality on or before
133     [May 8, 2012] January 1, 2017, is exempt from [Subsections (4) and] Subsection (5).
134          (b) A retail tobacco specialty business may maintain an exemption under Subsection
135     [(7)] (8)(a) if:
136          (i) the business license is renewed continuously without relapse or permanent
137     revocation;
138          (ii) the retail tobacco specialty business is not closed for business or otherwise
139     suspends the sale of tobacco products for more than 60 consecutive days;
140          (iii) the retail tobacco specialty business does not substantially change the business
141     premises or its business operation; and
142          (iv) the retail tobacco specialty business maintains the right to operate under the terms
143     of other applicable laws, including Title 26, Chapter 38, Utah Indoor Clean Air Act, zoning
144     ordinances, building codes, and the business license issued prior to [May 8, 2012] January 1,
145     2017.
146          Section 2. Section 17-50-333 is amended to read:
147          17-50-333. Regulation of retail tobacco specialty business.
148          (1) As used in this section:
149          (a) "Community location" means:

150          (i) a public or private kindergarten, elementary, middle, junior high, or high school;
151          (ii) a licensed child-care facility or preschool;
152          (iii) a trade or technical school;
153          (iv) a church;
154          (v) a public library;
155          (vi) a public playground;
156          (vii) a public park;
157          (viii) a youth center or other space used primarily for youth oriented activities;
158          (ix) a public recreational facility; [or]
159          (x) a public arcade[.]; or
160          (xi) for a license issued on or after July 1, 2017, a homeless shelter.
161          (b) "Health Department" means the same as "department," as that term is defined in
162     Section 26-1-2.
163          (c) "Local health department" means the same as that term is defined in Section
164     26A-1-102.
165          [(b)] (d) "Retail tobacco specialty business" means a commercial establishment:
166          (i) in which:
167          [(i)] (A) the sale of tobacco products accounts for more than 35% of the total annual
168     gross receipts for the establishment;
169          [(ii)] (B) food and beverage products, excluding gasoline sales, is less than 45% of the
170     total annual gross receipts for the establishment; and
171          [(iii)] (C) the establishment is not licensed as a pharmacy under Title 58, Chapter 17b,
172     Pharmacy Practice Act[.]; or
173          (ii) 40% or more of the retail floor and shelf space is allocated to the offer, display, or
174     storage of tobacco products.
175          [(c)] (e) "Tobacco product" means:
176          (i) any cigar, cigarette, or electronic cigarette as defined in Section 76-10-101;
177          (ii) a tobacco product as defined in Section 59-14-102, including:
178          (A) chewing tobacco; or
179          (B) any substitute for a tobacco product, including flavoring or additives to tobacco;
180     and

181          (iii) tobacco paraphernalia as defined in Section 76-10-104.1.
182          (2) The regulation of a retail tobacco specialty business is an exercise of the police
183     powers of the state, and through delegation, to other governmental entities.
184          (3) (a) Except as provided in Subsection [(7)] (8), and beginning July 1, 2012, a county
185     shall require an entity to be licensed as a retail tobacco specialty business to conduct business
186     as a retail tobacco specialty business in a county.
187          (b) A county may issue a retail tobacco specialty business license to an entity if the
188     entity complies with the provisions of [Subsection (5)] Subsections (5) and (6) .
189          (4) [Except as provided in Subsection (7), and beginning July 1, 2012, a] A business
190     entity that [conducts] obtained a retail tobacco specialty business in a county [shall be licensed
191     by the county as a retail tobacco specialty business] before July 1, 2017, or is operating under
192     an exemption under Subsection (8), shall, on or before January 1, 2018, obtain a permit from a
193     local health department under Title 26, Chapter 59, Tobacco Retail Permit .
194          (5) (a) A county may not issue a license to a retail tobacco specialty business if it is
195     located within:
196          (i) 1,000 feet of a community location;
197          (ii) 600 feet of another retail tobacco specialty business; or
198          (iii) 600 feet from property used or zoned for:
199          (A) agriculture use; or
200          (B) residential use.
201          (b) For purposes of Subsection (5)(a), the proximity requirements shall be measured in
202     a straight line from the nearest entrance of the retail tobacco specialty business to the nearest
203     property boundary of the community location, or agricultural or residential use, without regard
204     to intervening structures or zoning districts.
205          (6) (a) Beginning July 1, 2017, a county may not issue a license to an applicant for a
206     retail tobacco specialty business until the applicant provides the county with:
207          (i) a permit for a retail tobacco specialty business issued under Title 26, Chapter 59,
208     Tobacco Retail Permit, by the local health department in which the tobacco specialty business
209     is located; and
210          (ii) a license to sell tobacco products from the State Tax Commission.
211          (b) A retail tobacco specialty business that does not have a permit under Subsection (4)

212     or (6)(a):
213          (i) shall keep tobacco products and tobacco paraphernalia from public view;
214          (ii) may not display any advertisement related to tobacco or tobacco paraphernalia that
215     promotes the sale, distribution, or use of such products; and
216          (iii) may not sell, offer for sale, or offer to exchange for any form of consideration,
217     tobacco, tobacco products, or tobacco paraphernalia.
218          [(6)] (7) (a) Nothing in this section:
219          (i) requires a county to issue a business license to a retail tobacco specialty business; or
220          (ii) prohibits a county from adopting more restrictive requirements on a tobacco
221     specialty business than provided for in this section.
222          (b) A county may suspend or revoke a business license issued under this section:
223          (i) if a licensee engages in a pattern of unlawful activity under Title 76, Chapter 10,
224     Part 16, Pattern of Unlawful Activity Act;
225          (ii) if a licensee violates the regulations restricting the sale and distribution of
226     cigarettes and smokeless tobacco to protect children and adolescents issued by the United
227     States Food and Drug Administration, 21 C.F.R. Part 1140; [or]
228          (iii) upon the recommendation of the Health Department or a local health department
229     under Title 26, Chapter 59, Tobacco Retail Permit; or
230          [(iii)] (iv) under other provisions of state law or local ordinance.
231          [(7)] (8) (a) In accordance with Subsection [(7)] (8)(b), a retail tobacco specialty
232     business that has a business license and is operating lawfully in a county on or before [May 8,
233     2012] January 1, 2017, is exempt from [Subsections (4) and] Subsection (5).
234          (b) A retail tobacco specialty business may maintain an exemption under Subsection
235     [(7)] (8)(a) if:
236          (i) the business license is renewed continuously without relapse or permanent
237     revocation;
238          (ii) the retail tobacco specialty business is not closed for business or otherwise
239     suspends the sale of tobacco products for more than 60 consecutive days;
240          (iii) the retail tobacco specialty business does not substantially change the business
241     premises or its business operation; and
242          (iv) the retail tobacco specialty business maintains the right to operate under the terms

243     of other applicable laws, including Title 26, Chapter 38, Utah Indoor Clean Air Act, zoning
244     ordinances, building codes, and the business license issued [prior to May 8, 2012] before
245     January 1, 2017.
246          Section 3. Section 26-38-2 is amended to read:
247          26-38-2. Definitions.
248          As used in this chapter:
249          (1) "E-cigarette":
250          (a) means any electronic oral device:
251          (i) that provides an aerosol or a vapor of nicotine or other substance; and
252          (ii) which simulates smoking through its use or through inhalation of the device; and
253          (b) includes an oral device that is:
254          (i) composed of a heating element, battery, or electronic circuit; and
255          (ii) marketed, manufactured, distributed, or sold as:
256          (A) an e-cigarette;
257          (B) e-cigar;
258          (C) e-pipe; or
259          (D) any other product name or descriptor, if the function of the product meets the
260     definition of Subsection (1)(a).
261          (2) "Place of public access" means any enclosed indoor place of business, commerce,
262     banking, financial service, or other service-related activity, whether publicly or privately owned
263     and whether operated for profit or not, to which persons not employed at the place of public
264     access have general and regular access or which the public uses, including:
265          (a) buildings, offices, shops, elevators, or restrooms;
266          (b) means of transportation or common carrier waiting rooms;
267          (c) restaurants, cafes, or cafeterias;
268          (d) taverns as defined in Section 32B-1-102, or cabarets;
269          (e) shopping malls, retail stores, grocery stores, or arcades;
270          (f) libraries, theaters, concert halls, museums, art galleries, planetariums, historical
271     sites, auditoriums, or arenas;
272          (g) barber shops, hair salons, or laundromats;
273          (h) sports or fitness facilities;

274          (i) common areas of nursing homes, hospitals, resorts, hotels, motels, "bed and
275     breakfast" lodging facilities, and other similar lodging facilities, including the lobbies,
276     hallways, elevators, restaurants, cafeterias, other designated dining areas, and restrooms of any
277     of these;
278          (j) (i) any child care facility or program subject to licensure or certification under this
279     title, including those operated in private homes, when any child cared for under that license is
280     present; and
281          (ii) any child care, other than child care as defined in Section 26-39-102, that is not
282     subject to licensure or certification under this title, when any child cared for by the provider,
283     other than the child of the provider, is present;
284          (k) public or private elementary or secondary school buildings and educational
285     facilities or the property on which those facilities are located;
286          (l) any building owned, rented, leased, or otherwise operated by a social, fraternal, or
287     religious organization when used solely by the organization members or their guests or
288     families;
289          (m) any facility rented or leased for private functions from which the general public is
290     excluded and arrangements for the function are under the control of the function sponsor;
291          (n) any workplace that is not a place of public access or a publicly owned building or
292     office but has one or more employees who are not owner-operators of the business;
293          (o) any area where the proprietor or manager of the area has posted a conspicuous sign
294     stating "no smoking", "thank you for not smoking", or similar statement; and
295          (p) a holder of a club license, as defined in Section 32B-1-102.
296          (3) "Publicly owned building or office" means any enclosed indoor place or portion of
297     a place owned, leased, or rented by any state, county, or municipal government, or by any
298     agency supported by appropriation of, or by contracts or grants from, funds derived from the
299     collection of federal, state, county, or municipal taxes.
300          (4) "Smoking" means:
301          (a) the possession of any lighted or heated tobacco product in any form;
302          (b) inhaling, exhaling, burning, or [heating a substance containing tobacco or nicotine
303     intended for inhalation through a] carrying any lighted or heated cigar, cigarette, pipe, or
304     hookah[;] that contains:

305          (i) tobacco;
306          (ii) nicotine; or
307          (iii) a natural or synthetic tobacco substitute or flavored product;
308          (c) [except as provided in Section 26-38-2.6,] using an e-cigarette; or
309          (d) using an oral smoking device intended to circumvent the prohibition of smoking in
310     this chapter.
311          Section 4. Section 26-59-101 is enacted to read:
312     
CHAPTER 59. TOBACCO RETAIL PERMIT

313          26-59-101. Title.
314          This chapter is known as "Tobacco Retail Permit."
315          Section 5. Section 26-59-102 is enacted to read:
316          26-59-102. Definitions.
317          (1) As used in this chapter:
318          (a) "Community location" means:
319          (i) a public or private kindergarten, elementary, middle, junior high, or high school;
320          (ii) a licensed child-care facility or preschool;
321          (iii) a trade or technical school;
322          (iv) a church;
323          (v) a public library;
324          (vi) a public playground;
325          (vii) a public park;
326          (viii) a youth center or other space used primarily for youth oriented activities;
327          (ix) a public recreational facility;
328          (x) a public arcade; or
329          (xi) for a license issued by a municipality under Section 10-8-41.6 or a county under
330     Section 17-50-333, on or after July 1, 2017, a homeless shelter.
331          (b) "Permit" means a tobacco retail permit issued to a retail tobacco specialty business
332     under this chapter.
333          (c) "Retail tobacco specialty business" means the same as that term is defined in
334     Sections 10-8-41.6 and 17-50-333.
335          (d) "Tobacco product" means:

336          (i) any cigar, cigarette, or electronic cigarette as defined in Section 76-10-101;
337          (ii) a tobacco product as defined in Section 59-14-102, including:
338          (A) chewing tobacco; or
339          (B) any substitute for a tobacco product, including flavoring or additives to tobacco;
340     and
341          (iii) tobacco paraphernalia as defined in Section 76-10-104.1.
342          Section 6. Section 26-59-103 is enacted to read:
343          26-59-103. Tobacco retail permit -- Enforcement powers.
344          (1) (a) The regulation of a retail tobacco specialty business is an exercise of the police
345     powers of the state, and, through delegation, by the department and by local health
346     departments.
347          (b) A local health department and the department may inspect a retail tobacco specialty
348     business to determine:
349          (i) whether a retail tobacco specialty business continues to meet the qualifications for
350     the permit issued under this chapter;
351          (ii) whether a retail tobacco specialty business has violated any of the requirements for
352     a license under Section 10-8-41.6 or 17-50-333;
353          (iii) whether a retail tobacco specialty business:
354          (A) engaged in a pattern of unlawful activity under Title 76, Chapter 10, Part 16,
355     Pattern of Unlawful Activity Act; or
356          (B) violated the regulations restricting the sale and distribution of cigarettes and
357     smokeless tobacco issued by the United States Food and Drug Administration, 21 C.F.R. Part
358     1140, to protect children and adolescents; and
359          (iv) whether a retail tobacco specialty business has violated other provisions of state
360     law or local ordinance.
361          (c) If the department or a local health department determines that a retail tobacco
362     specialty business is in violation of the permit issued under this chapter or a license issued
363     under Section 10-8-41.6 or 17-50-333, the local health department may take action under
364     Section 26-59-107 and may recommend to a county or municipality that a license issued under
365     Section 10-8-41.6 or 17-50-333 be suspended or revoked.
366          (2) (a) An applicant for a permit under this chapter shall submit an application for a

367     permit to the local health department with jurisdiction for the business address for which the
368     applicant seeks a permit and shall pay all applicable fees under Section 26-59-104.
369          (b) The application for a permit shall include:
370          (i) the name, address, and telephone number of each proprietor;
371          (ii) the business name, address, and telephone number of the single fixed location for
372     which a tobacco retail permit is sought;
373          (iii) the name and mailing address of each proprietor authorized to receive permit
374     related communication and notices;
375          (iv) evidence that the location for which a tobacco retail permit is sought has been
376     issued a valid tobacco license from the State Tax Commission;
377          (v) information regarding whether any proprietor has been determined to have violated,
378     or has been a proprietor at a location that has been determined to have violated:
379          (A) this chapter;
380          (B) Chapter 38, Utah Indoor Clean Air Act;
381          (C) Title 76, Chapter 10, Part 16, Pattern of Unlawful Activity Act;
382          (D) regulations restricting the sale and distribution of cigarettes and smokeless tobacco
383     issued by the United States Food and Drug Administration, 21 C.F.R. Part 1140, to protect
384     children and adolescents; or
385          (E) other provisions of state law or local ordinance;
386          (vi) if the person has provided information under Subsection (2)(b)(v), the dates and
387     locations of all violations listed under Subsection (2)(b)(v);
388          (vii) (A) sales data that shows whether the business' gross receipts from tobacco and
389     tobacco paraphernalia at the location on the application for permit exceeds 35% of total annual
390     gross receipts for the 12 months preceding the application; or
391          (B) for a new businesses without 12 months of sales data, a statement of the business
392     model for the location and an affidavit declaring whether the applicant intends to receive gross
393     revenues from tobacco products that exceed 35% of the annual gross revenues; and
394          (viii) evidence regarding whether the business location is within:
395          (A) 1,000 feet of a community location;
396          (B) 600 feet of another retail tobacco specialty business; or
397          (C) 600 feet from property used or zoned for agricultural use or residential use.

398          (c) For purposes of Subsection (2)(b)(viii), the proximity requirements shall be
399     measured in a straight line from the nearest entrance of the retail tobacco specialty business to
400     the nearest property boundary of the community location, or agricultural or residential use,
401     without regard to intervening structures or zoning districts.
402          (3) The local health department may issue a permit under this chapter to a retail
403     tobacco specialty business if the local health department determines from the application that:
404          (a) the applicant has not violated any of the provisions of Subsection (1);
405          (b) the retail tobacco specialty business meets the requirements of this chapter;
406          (c) the applicant meets the licensing requirements of Sections 10-8-41.6 and
407     17-50-333; and
408          (d) except as provided in Subsection (4), the establishment is not within the proximity
409     of a community location as described in Subsection (2)(b).
410          (4) (a) A retail tobacco specialty business that has a business license and is operating
411     lawfully in a municipality or county:
412          (i) on or before January 1, 2017, in accordance with Subsections 10-8-41.6(8) and
413     17-50-333(8), is exempt from the proximity of a community location in Subsection (3)(d); or
414          (ii) on or before July 1, 2017, is exempt from the proximity requirement for a homeless
415     shelter.
416          (b) A retail tobacco specialty business may maintain an exemption under Subsection
417     (4)(a) if:
418          (i) the permit under this chapter is renewed continually without relapse or permanent
419     revocation;
420          (ii) the retail tobacco specialty business does not close for business or otherwise
421     suspend the sale of tobacco products for more than 60 consecutive days;
422          (iii) the retail tobacco specialty business does not substantially change the business
423     premises or business operation; and
424          (iv) the retail tobacco specialty business maintains the right to operate under the terms
425     of other applicable laws, including Chapter 38, Utah Indoor Clean Air Act, zoning ordinances,
426     building codes, and the business license issued before January 1, 2017.
427          Section 7. Section 26-59-104 is enacted to read:
428          26-59-104. Permit term and renewal fees.

429          (1) The term of a permit is one year.
430          (2) The local health department may establish fees for a permit to recover the cost to
431     the local health department for:
432          (a) enforcement and administration of permit requirements under this chapter;
433          (b) inspections and enforcement of licensing requirements under Section 10-8-41.6 and
434     Section 17-50-333; and
435          (c) enforcement of this chapter.
436          (3) A permit holder may apply for a renewal of a permit no later than 30 days before
437     the expiration of the permit term.
438          (4) A retail tobacco specialty business that fails to renew a permit under Subsection (3)
439     shall submit:
440          (a) the information required in Section 26-59-103;
441          (b) the renewal fee plus a late fee of 10% of the renewal fee; and
442          (c) a signed affidavit affirming that the proprietor has not sold tobacco products or
443     tobacco paraphernalia during the time the permit was expired.
444          Section 8. Section 26-59-105 is enacted to read:
445          26-59-105. Permit nontransferable.
446          (1) A permit is nontransferable.
447          (2) A retail tobacco specialty business shall apply for a new permit if the information
448     required in the permit application in Section 26-59-103 changes.
449          (3) Violations of this chapter or Section 10-8-41.6 or 17-50-333 that occur at a retail
450     tobacco specialty business location shall stay on the record for the retail tobacco specialty
451     business location unless:
452          (a) the retail tobacco specialty business has been transferred to a new proprietor; and
453          (b) the new proprietor provides documentation to the local health department that the
454     new proprietor is acquiring the retail tobacco specialty business in an arm's length transaction
455     from the previous proprietor.
456          Section 9. Section 26-59-106 is enacted to read:
457          26-59-106. Other permit requirements and prohibitions.
458          (1) A retail tobacco specialty business holding a permit shall:
459          (a) prominently display in a publicly and readily visible location the permit;

460          (b) inspect the photographic-identification of a purchaser of a tobacco product to
461     confirm that the purchaser is of legal age to purchase the tobacco product; and
462          (c) prominently display at the point of purchase a sign that states that the sale of
463     tobacco is prohibited to a person under the age of 19 years.
464          (2) A business holding a permit under Subsection 26-59-103(3) shall:
465          (a) not allow any person under the age of 19 years inside the business; and
466          (b) clearly display a sign on the public entrance of the business that a person under the
467     age of 19 years is prohibited from entering.
468          Section 10. Section 26-59-107 is enacted to read:
469          26-59-107. Permit violation.
470          (1) A retail tobacco specialty business is in violation of the permit issued under this
471     chapter if the retail tobacco specialty business violates:
472          (a) this chapter;
473          (b) licensing laws under Section 10-8-41.6 or 17-50-333;
474          (c) Title 76, Chapter 10, Part 1, Cigarettes and Tobacco and Psychotoxic Chemical
475     Solvents;
476          (d) Title 76, Chapter 10, Part 16, Pattern of Unlawful Activity Act;
477          (e) regulations restricting the sale and distribution of cigarettes and smokeless tobacco
478     issued by the United States Food and Drug Administration, 21 C.F.R. Part 1140, to protect
479     children and adolescents; or
480          (f) other provisions of state law or local ordinance.
481          (2) (a) If following an investigation or issuance of a citation or information the
482     department or a local health department determines under Subsection (2) that a retail tobacco
483     specialty business is in violation of a permit issued under this chapter, the department or a local
484     health department may suspend or revoke the permit issued under this chapter to the retail
485     tobacco specialty business, and may impose the administrative penalties in Subsection (2)(b).
486          (b) (i) The penalty for a first violation is:
487          (A) a suspension of the tobacco retail specialty business permit for one business day
488     within 30 days of the citation; or
489          (B) a penalty of not more than $1,000.
490          (ii) The penalty for a second violation within 24 months of the first violation is:

491          (A) a suspension of the tobacco retail specialty business permit for five consecutive
492     business days; or
493          (B) a penalty of not more than $3,000.
494          (iii) The penalty for a third or subsequent violation within 24 months of the first
495     violation is:
496          (A) a suspension of the retail tobacco specialty business permit or license for 30
497     consecutive business days within 90 days of the third or subsequent violation; or
498          (B) a penalty of not more than $5,000.
499          (3) The department or a local health department:
500          (a) may revoke a tobacco retail specialty business permit under this chapter if within 24
501     months of a first violation of the permit, a fourth violation occurs; and
502          (b) may suspend a tobacco retail specialty business permit and impose a monetary
503     penalty as described in Section 26-42-103, if the violation is due to a tobacco sale to a person
504     under the age of 19 years.
505          (4) (a) Except as provided in Subsection (4)(b), a local health department may not issue
506     a permit to:
507          (i) a retail tobacco specialty business that has violated the permit under Subsection (1)
508     and had a permit suspended or revoked; or
509          (ii) another retail tobacco speciality business having the same proprietor that has
510     violated a permit under Subsection (1) and had a permit suspended or revoked.
511          (b) A person described in Subsection (4)(a) whose permit:
512          (i) has been suspended, may not apply for a new permit under this chapter for any retail
513     tobacco specialty business for a period of 12 months from the date the permit was suspended;
514     or
515          (ii) has been revoked, may not apply for a new permit under this chapter for any retail
516     tobacco specialty business for a period of 24 months from the date the permit was revoked.
517          Section 11. Section 26A-1-128 is enacted to read:
518          26A-1-128. Tobacco permits -- Enforcement.
519          A local health department:
520          (1) shall:
521          (a) establish a permit process in accordance with Title 26, Chapter 59, Tobacco Retail

522     Permits; and
523          (b) enforce the requirements of Title 26, Chapter 59, Tobacco Retail Permits; and
524          (2) may:
525          (a) enforce licensing requirements for entities that hold a business license to sell
526     tobacco products under Section 10-8-41.6 or 17-50-333; and
527          (b) recommend to a municipality or county that the business license of a tobacco retail
528     specialty business be suspended or revoked for violations of this chapter or Section 10-8-41.6
529     or 17-50-333.