Representative Paul Ray proposes the following substitute bill:


1     
ELECTRONIC CIGARETTE AND OTHER NICOTINE

2     
PRODUCT AMENDMENTS

3     
2018 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Paul Ray

6     
Senate Sponsor: Allen M. Christensen

7     

8     LONG TITLE
9     General Description:
10          This bill enacts and amends provisions relating to electronic cigarette products,
11     alternative nicotine products, and nontherapeutic nicotine products.
12     Highlighted Provisions:
13          This bill:
14          ▸     defines terms;
15          ▸     imposes civil penalties for the sale of an alternative nicotine product or a
16     nontherapeutic nicotine product;
17          ▸     requires certain products that contain synthetic nicotine to have a statement on the
18     exterior package that the product contains synthetic nicotine;
19          ▸     imposes licensing requirements on a person that sells or distributes an alternative
20     nicotine product or a nontherapeutic nicotine product;
21          ▸     imposes an excise tax on the sale of an electronic cigarette substance, an alternative
22     nicotine product, and a nontherapeutic nicotine device substance in the state;
23          ▸     provides for the remittance of the tax collected;
24          ▸     creates the Electronic Cigarette Substance and Other Nicotine Product Tax
25     Restricted Account;
26          ▸     addresses use of revenue from the taxation of an electronic cigarette substance, an
27     alternative nicotine product, and a nontherapeutic nicotine device substance;
28          ▸     provides criminal penalties for a sale or purchase of an electronic cigarette product,
29     an alternative nicotine product, or a nontherapeutic nicotine product, in violation of
30     law; and
31          ▸     makes technical and conforming changes.
32     Money Appropriated in this Bill:
33          None
34     Other Special Clauses:
35          This bill provides a special effective date.
36     Utah Code Sections Affected:
37     AMENDS:
38          26-42-101, as enacted by Laws of Utah 1998, Chapter 319
39          26-42-102, as last amended by Laws of Utah 2015, Chapter 132
40          26-42-103, as last amended by Laws of Utah 2015, Chapter 132
41          26-42-106, as enacted by Laws of Utah 1998, Chapter 319
42          26-42-107, as last amended by Laws of Utah 2015, Chapter 132
43          26-57-101, as enacted by Laws of Utah 2015, Chapter 132
44          26-57-102, as enacted by Laws of Utah 2015, Chapter 132
45          59-14-102, as last amended by Laws of Utah 2013, Chapter 148
46          59-14-201, as last amended by Laws of Utah 2013, Chapter 148
47          59-14-203.5, as last amended by Laws of Utah 2011, Chapter 96
48          59-14-801, as enacted by Laws of Utah 2015, Chapter 132
49          59-14-802, as enacted by Laws of Utah 2015, Chapter 132
50          59-14-803, as enacted by Laws of Utah 2015, Chapter 132
51          76-10-101, as last amended by Laws of Utah 2015, Chapters 66, 132 and last amended
52     by Coordination Clause, Laws of Utah 2015, Chapter 132
53          76-10-104, as last amended by Laws of Utah 2010, Chapter 114
54          76-10-104.1, as last amended by Laws of Utah 2013, Chapter 278
55          76-10-105, as last amended by Laws of Utah 2017, Chapter 330
56          76-10-105.1, as last amended by Laws of Utah 2015, Chapters 66 and 132
57     ENACTS:
58          26-57-104, Utah Code Annotated 1953
59          59-14-804, Utah Code Annotated 1953
60          59-14-805, Utah Code Annotated 1953
61          59-14-806, Utah Code Annotated 1953
62          59-14-807, Utah Code Annotated 1953
63     

64     Be it enacted by the Legislature of the state of Utah:
65          Section 1. Section 26-42-101 is amended to read:
66     
CHAPTER 42. CIVIL PENALTIES FOR TOBACCO, ELECTRONIC CIGARETTE,

67     
AND OTHER NICOTINE PRODUCT SALES TO UNDERAGE PERSONS

68          26-42-101. Title.
69          This chapter is known as "Civil Penalties for Tobacco, Electronic Cigarette, and Other
70     Nicotine Product Sales to Underage Persons."
71          Section 2. Section 26-42-102 is amended to read:
72          26-42-102. Definitions.
73          As used in this chapter:
74          (1) "Alternative nicotine product" means the same as that term is defined in Section
75     59-14-102.
76          [(1)] (2) "Commission" means the [Utah] State Tax Commission.
77          (3) "Electronic cigarette product" means the same as that term is defined in Section
78     59-14-102.
79          [(2)] (4) "Employee" means an employee of a licensee.
80          [(3)] (5) "Enforcing agency" means the state Department of Health, or any local health
81     department, enforcing the provisions of this chapter.
82          [(4)] (6) "Licensee" means a person licensed:
83          (a) under Section 59-14-201 to sell cigarettes at retail;
84          (b) under Section 59-14-301 to sell tobacco products at retail; or
85          (c) under Section 59-14-803 to sell an electronic cigarette product, an alternative
86     nicotine product, or a nontherapeutic nicotine product.
87          [(5)] (7) "License to sell [tobacco"] or "license" means a license issued:
88          (a) under Section 59-14-201 to sell cigarettes at retail;
89          (b) under Section 59-14-301 to sell tobacco products at retail; or
90          (c) under Section 59-14-803 to sell an electronic cigarette product, an alternative
91     nicotine product, or a nontherapeutic nicotine product.
92          (8) "Nontherapeutic nicotine product" means the same as that term is defined in
93     Section 59-14-102.
94          [(6)] (9) "Tobacco" means[: (a)] a cigarette or a tobacco product, as defined in Section
95     59-14-102[; or].
96          [(b) an electronic cigarette product, as defined in Section 59-14-802.]
97          Section 3. Section 26-42-103 is amended to read:
98          26-42-103. Violations and penalties -- Imposition by enforcing agency and tax
99     commission.
100          (1) If, following an investigation or issuance of a citation or information under Section
101     77-39-101, an enforcing agency determines under Section 26-42-104 that a licensee or any
102     employee has sold tobacco, an electronic cigarette product, an alternative nicotine product, or a
103     nontherapeutic nicotine product to a person younger than 19 years of age, as prohibited by
104     Section 76-10-104, the enforcing agency may impose upon the licensee the following
105     administrative penalties:
106          (a) upon the first violation, a penalty of not more than $300;
107          (b) upon a second violation at the same retail location[,] and within 12 months of the
108     first violation, a penalty of not more than $750; and
109          (c) upon a third or subsequent violation at the same retail location and within 12
110     months of the first violation, a penalty of not more than $1,000.
111          (2) The enforcing agency shall notify the commission in writing of any order or order
112     of default finding a violation of Subsection (1) [which] that is a third or fourth violation.
113          (3) (a) [The commission, upon] Upon receipt of the written notification under
114     Subsection (2), the commission shall take action under Section 59-14-203.5 [or], 59-14-301.5,
115     or 59-14-803 against the license to sell [tobacco:] in accordance with Subsection (3)(b).
116          [(a)] (b) (i) [by suspending] Upon receipt of written notification of a third offense
117     under Subsection (1)(c), the commission shall suspend the licensee's license to sell tobacco, an
118     electronic cigarette product, an alternative nicotine product, or a nontherapeutic nicotine
119     product at that location for not more than 30 days[, upon receipt of notification of a third
120     violation under Subsection (1)(c); and].
121          [(b)] (ii) [by revoking] Upon receipt of written notification of a fourth violation under
122     Subsection (1)(c), the commission shall revoke the license to sell [tobacco at that location] held
123     by the licensee, including any license under suspension[, upon receipt of notification of a fourth
124     violation under Subsection (1)(c)] at that location.
125          (4) When the commission revokes a license under Subsection (3)(b)(ii), the
126     commission may not issue to the licensee, or to the business entity using the license that is
127     revoked, a license under Section 59-14-202, 59-14-301, or 59-14-803 [to sell tobacco] at the
128     location for which the license was issued for one year after:
129          (a) the day on which the time for filing an appeal of the revocation ends; or
130          (b) if the revocation is appealed, the day on which the decision to uphold the
131     revocation becomes final.
132          (5) This section does not prevent any bona fide purchaser of the business, who is not a
133     sole proprietor, director, corporate officer, or partner or other holder of significant interest in
134     the entity selling the business, from immediately applying for and obtaining a license to sell
135     [tobacco].
136          Section 4. Section 26-42-106 is amended to read:
137          26-42-106. Recognition of licensee's training program.
138          (1) In determining the amount of the monetary penalty to [be imposed] impose for an
139     employee's violation of Section 26-42-103, the hearing officer shall reduce the penalty by at
140     least 50% if [he] the hearing officer determines:
141          (a) the licensee has implemented a documented employee training program; and
142          (b) the employee has completed that training program within 30 days of commencing
143     duties of selling tobacco products, electronic cigarette products, alternative nicotine products,
144     or nontherapeutic nicotine products.
145          (2) (a) [If] The hearing officer may suspend all or a portion of the monetary penalty for
146     a first offense at a location if:
147          (i) the hearing officer determines under Subsection (1)[, regarding a first offense at a
148     location,] that the licensee has not implemented a documented training program with a written
149     curriculum for employees at that location regarding compliance with this chapter[, the hearing
150     officer may suspend all or a portion of the monetary penalty, contingent upon the licensee's
151     initiating]; and
152          (ii) the licensee agrees to initiate a training program for employees at that location
153     within 30 days after the hearing date.
154          (b) If the hearing officer determines at a subsequent hearing that the licensee has not
155     implemented the training program within the time period required under Subsection (2)(a), the
156     hearing officer shall promptly impose the suspended monetary penalty [shall be promptly
157     imposed], unless the licensee demonstrates good cause for granting an extension of time for
158     implementation of the training program.
159          Section 5. Section 26-42-107 is amended to read:
160          26-42-107. Allocation of civil penalties.
161          Civil monetary penalties collected under this chapter shall be allocated as follows:
162          (1) if a local health department conducts an adjudicative proceeding under Section
163     26-42-104, the penalty shall be paid to the treasurer of the county in which the violation was
164     committed[,] and transferred to:
165          (a) the local health department if [it] the local health department conducts a civil
166     hearing under Section 26-42-104 alone; or
167          (b) in equal portions to the local health department and the other agencies that
168     participated in the hearing process;
169          (2) if the state Department of Health conducts a civil hearing under Section 26-42-104,
170     the penalty shall be deposited in the state's General Fund[,] and may be appropriated by the
171     Legislature to the state Department of Health for use in enforcement of this chapter; and
172          (3) if the civil penalty involves suspension or revocation of a license to sell [tobacco]
173     under Section 59-14-203.5, 59-14-301.5, or 59-14-803, half of the penalty shall be paid to the
174     commission[,] and the other half shall be allocated under Subsection (1) or (2)[,] as
175     appropriate.
176          Section 6. Section 26-57-101 is amended to read:
177     
CHAPTER 57. ELECTRONIC CIGARETTE AND OTHER NICOTINE PRODUCT

178     
REGULATION ACT

179          26-57-101. Title.
180          This chapter is known as the "Electronic Cigarette and Other Nicotine Product
181     Regulation Act."
182          Section 7. Section 26-57-102 is amended to read:
183          26-57-102. Definitions.
184          As used in this chapter:
185          (1) "Alternative nicotine product" means the same as that term is defined in Section
186     59-14-102.
187          [(1)] (2) "Cigarette" means the same as that term is defined in Section 59-14-102.
188          [(2)] (3) "Electronic cigarette" means the same as that term is defined in Section
189     [59-14-802] 59-14-102.
190          [(3)] (4) "Electronic cigarette product" means an electronic cigarette or an electronic
191     cigarette substance.
192          [(4)] (5) "Electronic cigarette substance" means the same as that term is defined in
193     Section [59-14-802] 59-14-102.
194          (6) "Local health department" means the same as that term is defined in Section
195     26A-1-102.
196          [(5)] (7) "Manufacture" includes:
197          (a) to cast, construct, or make electronic cigarettes; or
198          (b) to blend, make, process, or prepare an electronic cigarette substance.
199          [(6)] (8) "Manufacturer sealed electronic cigarette substance" means an electronic
200     cigarette substance that is sold in a container that:
201          (a) is [pre-filled] prefilled by the electronic cigarette substance manufacturer; and
202          (b) the electronic cigarette manufacturer does not intend for a consumer to open.
203          (9) "Nontherapeutic nicotine device" means the same as that term is defined in Section
204     59-14-102.
205          (10) "Nontherapeutic nicotine device substance" means the same as that term is defined
206     in Section 59-14-102.
207          (11) "Nontherapeutic nicotine product" means a nontherapeutic nicotine device or a
208     nontherapeutic nicotine device substance.
209          Section 8. Section 26-57-104 is enacted to read:
210          26-57-104. Labeling of products containing synthetic nicotine.
211          Any nontherapeutic nicotine device or alternative nicotine product containing synthetic
212     nicotine that is not otherwise required to contain a nicotine warning and that is sold in this state
213     shall contain the following statement on the exterior packaging of the product:
214          "This product contains synthetic nicotine."
215          Section 9. Section 59-14-102 is amended to read:
216          59-14-102. Definitions.
217          As used in this chapter:
218          (1) (a) Except as provided in Subsection (1)(c), "alternative nicotine product" means a
219     product, other than a cigarette, a counterfeit cigarette, an electronic cigarette product, a
220     nontherapeutic nicotine product, or a tobacco product, that:
221          (i) contains nicotine;
222          (ii) is intended for human consumption;
223          (iii) is not purchased with a prescription from a licensed physician; and
224          (iv) is not approved by the United States Food and Drug Administration as nicotine
225     replacement therapy.
226          (b) "Alternative nicotine product" includes:
227          (i) pure nicotine;
228          (ii) snortable nicotine;
229          (iii) dissolvable orbs, pellets, sticks, or strips; and
230          (iv) nicotine-laced food and beverage.
231          (c) "Alternative nicotine product" does not include a fruit, a vegetable, or a tea that
232     contains naturally occurring nicotine.
233          [(1)] (2) "Cigarette" means a roll for smoking made wholly or in part of tobacco:
234          (a) regardless of:
235          (i) the size of the roll;
236          (ii) the shape of the roll; or
237          (iii) whether the tobacco is[: (A)] flavored[; (B)], adulterated[;], or [(C)] mixed with
238     any other ingredient; and
239          (b) if the wrapper or cover of the roll is made of paper or any other substance or
240     material except tobacco.
241          [(2)] (3) "Cigarette rolling machine" means a device or machine that has the capability
242     to produce at least 150 cigarettes in less than 30 minutes.
243          [(3)] (4) "Cigarette rolling machine operator" means a person [who] that:
244          (a) (i) controls, leases, owns, possesses, or otherwise has available for use a cigarette
245     rolling machine; and
246          (ii) makes the cigarette rolling machine available for use by another person to produce
247     a cigarette; or
248          (b) offers for sale, at retail, a cigarette produced from the cigarette rolling machine.
249          [(4)] (5) "Consumer" means a person that is not required:
250          (a) under Section 59-14-201 to obtain a license under Section 59-14-202; [or]
251          (b) under Section 59-14-301 to obtain a license under Section 59-14-202[.]; or
252          (c) under Section 59-14-803 to obtain a license.
253          [(5)] (6) "Counterfeit cigarette" means:
254          (a) a cigarette that has a false manufacturing label; or
255          (b) a package of cigarettes bearing a counterfeit tax stamp.
256          (7) (a) "Electronic cigarette" means:
257          (i) an electronic device used to deliver or capable of delivering vapor containing
258     nicotine to an individual's respiratory system;
259          (ii) a component of the device described in Subsection (7)(a)(i); or
260          (iii) an accessory sold in the same package as the device described in Subsection
261     (7)(a)(i).
262          (b) "Electronic cigarette" includes an e-cigarette as that term is defined in Section
263     26-38-2.
264          (8) "Electronic cigarette product" means an electronic cigarette or an electronic
265     cigarette substance.
266          (9) "Electronic cigarette substance" means any substance, including liquid containing
267     nicotine, used or intended for use in an electronic cigarette.
268          [(6)] (10) "Importer" means a person [who] that imports into the United States, either
269     directly or indirectly, a finished cigarette for sale or distribution.
270          [(7)] (11) "Indian tribal entity" means a federally recognized Indian tribe, tribal entity,
271     or any other person doing business as a distributor or retailer of cigarettes on tribal lands
272     located in the state.
273          [(8)] (12) "Little cigar" means a roll for smoking that:
274          (a) is made wholly or in part of tobacco;
275          (b) [that] uses an integrated cellulose acetate filter or other similar filter; and
276          (c) [that] is wrapped in a substance:
277          (i) containing tobacco; and
278          (ii) that is not exclusively natural leaf tobacco.
279          [(9)] (13) (a) Except as provided in Subsection [(9)] (13)(b), "manufacturer" means a
280     person [who] that:
281          (i) manufactures, fabricates, assembles, processes, or labels a finished cigarette; or
282          (ii) makes, modifies, mixes, manufactures, fabricates, assembles, processes, labels,
283     repackages, relabels, or imports an electronic cigarette product, an alternative nicotine product,
284     or a nontherapeutic nicotine product.
285          (b) "Manufacturer" does not include a cigarette rolling machine operator.
286          [(10)] (14) "Moist snuff" means tobacco that:
287          (a) is finely[: (i)] cut[; (ii)], ground[;], or [(iii)] powdered;
288          (b) has at least 45% moisture content, as determined by the commission by rule made
289     in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
290          (c) is not intended to be:
291          (i) smoked; or
292          (ii) placed in the nasal cavity; and
293          (d) except for single-use pouches of loose tobacco, is not packaged, produced, sold, or
294     distributed in single-use units, including:
295          (i) tablets;
296          (ii) lozenges;
297          (iii) strips;
298          (iv) sticks; or
299          (v) packages containing multiple single-use units.
300          (15) "Nicotine" means a poisonous, nitrogen containing chemical that is made
301     synthetically or derived from tobacco or other plants.
302          (16) (a) "Nontherapeutic nicotine device" means a device that:
303          (i) has a pressurized canister that is used to administer nicotine to the user through
304     inhalation or intranasally;
305          (ii) is not purchased with a prescription from a licensed physician; and
306          (iii) is not approved by the United States Food and Drug Administration as nicotine
307     replacement therapy.
308          (b) "Nontherapeutic nicotine device" includes a nontherapeutic nicotine inhaler or
309     nontherapeutic nicotine nasal spray.
310          (17) "Nontherapeutic nicotine device substance" means a cartridge that:
311          (a) contains nicotine;
312          (b) is used or intended to be used in a nontherapeutic nicotine device;
313          (c) is not purchased with a prescription from a licensed physician; and
314          (d) is not approved by the United States Food and Drug Administration as nicotine
315     replacement therapy.
316          (18) "Nontherapeutic nicotine product" means a nontherapeutic nicotine device or a
317     nontherapeutic nicotine device substance.
318          [(11)] (19) "Retailer" means a person that:
319          (a) sells or distributes a cigarette, an electronic cigarette product, an alternative nicotine
320     product, or a nontherapeutic nicotine product to a consumer in the state; or
321          (b) intends to sell or distribute a cigarette, an electronic cigarette product, an alternative
322     nicotine product, or a nontherapeutic nicotine product to a consumer in the state.
323          [(12)] (20) "Stamp" means the indicia required to be placed on a cigarette package that
324     evidences payment of the tax on cigarettes required by Section 59-14-205.
325          [(13)] (21) (a) "Tobacco product" means a product made of, or containing, tobacco.
326          (b) "Tobacco product" includes:
327          (i) a cigarette produced from a cigarette rolling machine;
328          (ii) a little cigar; or
329          (iii) moist snuff.
330          (c) "Tobacco product" does not include a cigarette.
331          [(14)] (22) "Tribal lands" means land held by the United States in trust for a federally
332     recognized Indian tribe.
333          Section 10. Section 59-14-201 is amended to read:
334          59-14-201. License -- Application of part -- Fee -- Bond -- Exceptions.
335          (1) It is unlawful for any person in this state to manufacture, import, distribute, barter,
336     sell, exchange, or offer cigarettes for sale without first having obtained a license issued by the
337     commission under Section 59-14-202.
338          (2) Except for the tax rates described in Subsection 59-14-204(2), this part does not
339     apply to a cigarette produced from a cigarette rolling machine.
340          (3) (a) A license may not be issued for the sale of cigarettes until the applicant has paid
341     a license fee of $30 or a license renewal fee of $20, as appropriate.
342          (b) The fee for reinstatement of a license that has been revoked, suspended, or allowed
343     to expire is $30.
344          (4) (a) (i) [A license] The commission may not [be issued] issue a license until the
345     applicant files a bond with the commission.
346          (ii) The commission shall determine the form and the amount of the bond, the
347     minimum amount of which shall be $500.
348          (iii) The bond shall be executed by the applicant as principal, with a corporate surety,
349     payable to the state and conditioned upon the faithful performance of all the requirements of
350     this chapter, including the payment of all taxes, penalties, and other obligations.
351          (b) An applicant is not required to post a bond if the applicant:
352          (i) purchases, during the license year, only products that have the proper state stamp
353     affixed as required by this chapter; and
354          (ii) files an affidavit with the applicant's application attesting to this fact.
355          Section 11. Section 59-14-203.5 is amended to read:
356          59-14-203.5. Commission action to suspend or revoke license.
357          (1) (a) The commission shall suspend or revoke licenses to sell tobacco, as required
358     under Section 26-42-103 regarding suspension or revocation of a license due to the sale of
359     cigarettes to a person younger than 19 years of age, upon receipt of notice of an enforcing
360     agency's finding of a violation of Section 26-42-103.
361          (b) The commission shall provide written notice of the suspension or revocation to the
362     licensee.
363          (2) It is the duty of the enforcing agency to advise the commission of any finding of a
364     violation of Section 26-42-103 for which suspension or revocation of the license is a penalty.
365          (3) When the commission revokes a licensee's license under this section, the
366     commission may not issue to the licensee, or to the business entity using the license that is
367     revoked, a license to sell cigarettes under Section 59-14-202 [or], a license to sell tobacco
368     under Section 59-14-301 [to sell tobacco], or a license to sell an electronic cigarette product, an
369     alternative nicotine product, or a nontherapeutic nicotine product under Section 59-14-803 at
370     the location for which the license was issued for one year after:
371          (a) the day on which the time for filing an appeal of the revocation ends; or
372          (b) if the revocation is appealed, the day on which the decision to uphold the
373     revocation becomes final.
374          Section 12. Section 59-14-801 is amended to read:
375     
Part 8. Electronic Cigarette and Other Nicotine Product Licensing and Taxation Act

376          59-14-801. Title.
377          This part is known as the "Electronic Cigarette and Other Nicotine Product Licensing
378     and Taxation Act."
379          Section 13. Section 59-14-802 is amended to read:
380          59-14-802. Definitions.
381          As used in this part:
382          [(1) "Cigarette" means the same as that term is defined in Section 59-14-102.]
383          [(2) (a) "Electronic cigarette" means:]
384          [(i) an electronic device used to deliver or capable of delivering vapor containing
385     nicotine to an individual's respiratory system;]
386          [(ii) a component of the device described in Subsection (2)(a)(i); or]
387          [(iii) an accessory sold in the same package as the device described in Subsection
388     (2)(a)(i).]
389          [(b) "Electronic cigarette" includes an e-cigarette as defined in Section 26-38-2.]
390          [(3) "Electronic cigarette product" means an electronic cigarette or an electronic
391     cigarette substance.]
392          [(4) "Electronic cigarette substance" means any substance, including liquid containing
393     nicotine, used or intended for use in an electronic cigarette.]
394          [(5)] (1) "Enforcing agency" means the Department of Health, a county health
395     department, or a local health department, when enforcing:
396          (a) Title 26, Chapter 42, Civil Penalties for Tobacco, Electronic Cigarette, and Other
397     Nicotine Product Sales to Underage Persons; or
398          (b) Title 26, Chapter 57, Electronic Cigarette and Other Nicotine Product Regulation
399     Act.
400          [(6)] (2) "Licensee" means a person that holds a valid license to sell an electronic
401     cigarette [products] product, an alternative nicotine product, or a nontherapeutic nicotine
402     product.
403          [(7) "License to sell an electronic cigarette product" means a license issued by the
404     commission under Subsection 59-14-803(3).]
405          (3) (a) "Manufacturer's sales price" means the amount the manufacturer of an electronic
406     cigarette substance, prefilled electronic cigarette, alternative nicotine product, nontherapeutic
407     nicotine device substance, or prefilled nontherapeutic nicotine device charges after subtracting
408     a discount.
409          (b) "Manufacturer's sales price" includes an original Utah destination freight charge,
410     regardless of:
411          (i) whether the electronic cigarette substance, prefilled electronic cigarette, alternative
412     nicotine product, nontherapeutic nicotine device substance, or prefilled nontherapeutic nicotine
413     device is shipped f.o.b. origin or f.o.b. destination; or
414          (ii) who pays the original Utah destination charge.
415          (4) "Prefilled electronic cigarette" means an electronic cigarette that is sold prefilled
416     with an electronic cigarette substance.
417          (5) "Prefilled nontherapeutic nicotine device" means a nontherapeutic nicotine device
418     that is sold prefilled with a nontherapeutic nicotine device substance.
419          (6) "Youth electronic cigarette and other nicotine product cessation program" means a
420     program that helps individuals under the age of 19 to quit using tobacco, electronic cigarette
421     products, alternative nicotine products, and nontherapeutic nicotine products.
422          Section 14. Section 59-14-803 is amended to read:
423          59-14-803. License to sell an electronic cigarette product, an alternative nicotine
424     product, or a nontherapeutic nicotine product.
425          (1) (a) [Except as provided in Subsection (2), a] A person may not sell, offer to sell, or
426     distribute an electronic cigarette product [in Utah], an alternative nicotine product, or a
427     nontherapeutic nicotine product in this state without first:
428          (i) except as provided in Subsection (1)(b), obtaining a license from the commission
429     under this section to sell an electronic cigarette product [from the commission under this
430     section.], an alternative nicotine product, or a nontherapeutic nicotine product; and
431          (ii) complying with any bonding requirement described in Subsection (4).
432          [(2)] (b) A person that holds a valid license to sell cigarettes under Section 59-14-201,
433     or a person that holds a valid license to sell tobacco products under Section 59-14-301, may[,
434     without obtaining a separate license to sell an electronic cigarette product under this part,] sell,
435     offer to sell, or distribute an electronic cigarette product [in Utah], an alternative nicotine
436     product, or a nontherapeutic nicotine product in this state without obtaining a separate license
437     to sell an electronic cigarette product, an alternative nicotine product, or a nontherapeutic
438     nicotine product in accordance with this [part] section.
439          [(3)] (2) Except as provided in Subsection (6), the commission shall issue a license to
440     sell an electronic cigarette product, an alternative nicotine product, or a nontherapeutic nicotine
441     product to a person that:
442          (a) submits an application, on a form created by the commission, that includes:
443          (i) the person's name;
444          (ii) the address of the facility where the person will sell an electronic cigarette product,
445     an alternative nicotine product, or a nontherapeutic nicotine product; and
446          (iii) any other information the commission requires to implement this chapter; and
447          (b) pays a fee:
448          (i) in the amount of $30 if the person is applying for a first-time license or reinstating a
449     revoked, suspended, or expired license; or
450          (ii) [if renewing the person's license,] in the amount of $20 if the person is renewing a
451     license.
452          [(4)] (3) A license described in Subsection [(3)] (2) is:
453          (a) valid only at one fixed business address;
454          (b) valid for three years;
455          (c) valid only for a physical location; and
456          (d) renewable if a licensee meets the criteria for licensing described in Subsection [(3)]
457     (2).
458          (4) (a) The commission shall require a manufacturer, jobber, distributor, wholesaler, or
459     retailer that is responsible under this part for the collection of tax on an electronic cigarette, an
460     alternative nicotine product, or a nontherapeutic nicotine product to post a bond.
461          (b) The manufacturer, jobber, distributor, wholesaler, or retailer may post the bond
462     required by Subsection (4)(a) in combination with the bond required by Section 59-14-201 or
463     59-14-301.
464          (c) Subject to Subsection (4)(d), the commission shall determine the form and amount
465     of the bond.
466          (d) The minimum amount of the bond shall be:
467          (i) except as provided in Subsection (4)(d)(ii) or (iii), $500;
468          (ii) if the manufacturer, jobber, distributor, wholesaler, or retailer posts the bond
469     required by Subsection (4)(a) in combination with the bond required by Section 59-14-201 or
470     59-14-301, $1,000; or
471          (iii) if the manufacturer, jobber, distributor, wholesaler, or retailer posts the bond
472     required by Subsection (4)(a) in combination with the bonds required by Sections 59-14-201
473     and 59-14-301, $1,500.
474          (5) The commission shall, after notifying a licensee, revoke a license described in
475     Subsection (3) if an enforcing agency determines the licensee has violated a provision of:
476          (a) Title 26, Chapter 42, Civil Penalties for Tobacco, Electronic Cigarette, and Other
477     Nicotine Product Sales to Underage Persons; or
478          (b) Title 26, Chapter 57, Electronic Cigarette and Other Nicotine Product Regulation
479     Act.
480          (6) If the commission revokes a person's license to sell an electronic cigarette product,
481     an alternative nicotine product, or a nontherapeutic nicotine product under Subsection (5), the
482     commission may not issue to the person a license to sell an electronic cigarette product, an
483     alternative nicotine product, or a nontherapeutic nicotine product under this section, a license
484     to sell cigarettes under Section 59-14-201, or a license to sell tobacco under Section 59-14-301
485     [to the person] until one year after:
486          (a) the day on which the time for filing an appeal of the revocation ends, as determined
487     by the enforcing agency; or
488          (b) if the person appeals the enforcing agency's decision to revoke the license to sell an
489     electronic cigarette product, an alternative nicotine product, or a nontherapeutic nicotine
490     product, the day on which the enforcing agency's decision to uphold the revocation is final.
491          (7) If the commission revokes a person's license under Subsection (5), the commission
492     shall also revoke the person's license to sell cigarettes under Section 59-14-201, if any, and the
493     person's license to sell tobacco under Section 59-14-301, if any.
494          (8) The commission may make rules in accordance with Title 63G, Chapter 3, Utah
495     Administrative Rulemaking Act, to establish the additional information described in
496     Subsection [(3)] (2)(a)(iii) that a person must provide in the application described in
497     Subsection [(3)(a)] (2).
498          (9) It is a class B misdemeanor for a person to violate Subsection (1).
499          Section 15. Section 59-14-804 is enacted to read:
500          59-14-804. Taxation of an electronic cigarette product, an alternative nicotine
501     product, and a nontherapeutic nicotine product.
502          (1) (a) There is levied a tax upon the following:
503          (i) an electronic cigarette substance; and
504          (ii) a prefilled electronic cigarette.
505          (b) Beginning on July 1, 2019, there is levied a tax upon the following:
506          (i) an alternative nicotine product;
507          (ii) a nontherapeutic nicotine device substance; or
508          (iii) a prefilled nontherapeutic nicotine device.
509          (2) The rate of the tax levied under Subsection (1) is .86 multiplied by the
510     manufacturer's sales price.
511          (3) (a) A manufacturer, jobber, distributor, wholesaler, retailer, consumer, or user shall
512     pay the tax levied under Subsection (1) at the time that an electronic cigarette substance, a
513     prefilled electronic cigarette, an alternative nicotine product, a nontherapeutic nicotine device
514     substance, or a prefilled nontherapeutic nicotine device is first received in the state.
515          (b) A manufacturer, jobber, distributor, wholesaler, retailer, consumer, or user may not
516     resell an electronic cigarette substance, a prefilled electronic cigarette, an alternative nicotine
517     product, a nontherapeutic nicotine device substance, or a prefilled nontherapeutic nicotine
518     device to another distributor, another retailer, or a consumer before paying the tax levied under
519     Subsection (1).
520          (4) (a) The manufacturer, jobber, distributor, wholesaler, retailer, consumer, or user
521     shall remit the taxes collected in accordance with this section to the commission.
522          (b) The commission shall deposit, for each fiscal year:
523          (i) the first $2,000,000 remitted in accordance with this section into the Electronic
524     Cigarette Substance and Other Nicotine Product Tax Restricted Account, created in Section
525     59-14-807; and
526          (ii) the balance of remittances received in accordance with this section into the General
527     Fund.
528          Section 16. Section 59-14-805 is enacted to read:
529          59-14-805. Remittance of tax -- Returns -- Invoice required -- Filing requirement--
530     Exception -- Penalty -- Overpayment.
531          (1) (a) The manufacturer, jobber, distributor, wholesaler, retailer, consumer, or user
532     that collects the tax imposed on an electronic cigarette substance, a prefilled electronic
533     cigarette, an alternative nicotine product, a nontherapeutic nicotine device substance, or a
534     prefilled nontherapeutic nicotine device shall remit to the commission, in an electronic format
535     approved by the commission:
536          (i) the tax collected in the previous calendar quarter; and
537          (ii) the quarterly tax return.
538          (b) The tax collected and the return are due on or before the last day of April, July,
539     October, and January.
540          (2) (a) A manufacturer, jobber, distributor, wholesaler, retailer, or any other person
541     selling an electronic cigarette substance, a prefilled electronic cigarette, an alternative nicotine
542     product, a nontherapeutic nicotine device substance, or a prefilled nontherapeutic nicotine
543     device to a person other than the ultimate consumer shall furnish the purchaser with an
544     itemized invoice showing the seller's name and address, the name and address of the purchaser,
545     the date of sale, the name and price of the product, and the discount, if any.
546          (b) The invoice shall show whether the price includes the tax.
547          (c) The seller and the purchaser shall retain copies of the invoice and make the invoice
548     available for inspection at the request of the commission or the commission's agent for a period
549     of three years following the sale.
550          (3) (a) A consumer that purchases an untaxed electronic cigarette substance, a prefilled
551     electronic cigarette, an alternative nicotine product, a nontherapeutic nicotine device substance,
552     or a prefilled nontherapeutic nicotine device for use or other consumption shall:
553          (i) file with the commission, on forms prescribed by the commission, a statement
554     showing the quantity and description of the item subject to tax under this part; and
555          (ii) pay the tax imposed by this part on that item.
556          (b) The consumer shall file the statement described in Subsection (3)(a) and pay the tax
557     due on or before the last day of the month immediately following the month during which the
558     consumer purchased an electronic cigarette substance, a prefilled electronic cigarette, an
559     alternative nicotine device substance, a nontherapeutic nicotine product, or a prefilled
560     nontherapeutic nicotine device.
561          (c) A consumer shall maintain records necessary to determine the amount of tax the
562     consumer is liable to pay under this part for a period of three years following the date the
563     statement required by this section was filed.
564          (4) A tourist who imports an electronic cigarette substance, a prefilled electronic
565     cigarette, an alternative nicotine product, a nontherapeutic nicotine device substance, or a
566     prefilled nontherapeutic nicotine device into the state does not need to file the statement
567     described in Subsection (3) or pay the tax if the item is for the tourist's own use or consumption
568     while in this state.
569          (5) In addition to the tax required by this part, a person shall pay a penalty as provided
570     in Section 59-1-401, plus interest at the rate and in the manner prescribed in Section 59-1-402,
571     if a person subject to this section fails to:
572          (a) pay the tax prescribed by this part;
573          (b) pay the tax on time; or
574          (c) file a return required by this part.
575          (6) An overpayment of a tax imposed by this part shall accrue interest at the rate and in
576     the manner prescribed in Section 59-1-402.
577          Section 17. Section 59-14-806 is enacted to read:
578          59-14-806. Refund of taxes paid -- Exemption for exported electronic cigarettes
579     and other nicotine products.
580          (1) When an electronic cigarette substance, a prefilled electronic cigarette, an
581     alternative nicotine product, a nontherapeutic nicotine device substance, or a prefilled
582     nontherapeutic nicotine device taxed under this chapter is sold and shipped to a regular dealer
583     in those articles in another state, the seller in this state shall be entitled to a refund of the actual
584     amount of the taxes paid, upon condition that the seller in this state:
585          (a) is a licensed dealer;
586          (b) signs an affidavit that the electronic cigarette substance, the prefilled electronic
587     cigarette, the alternative nicotine product, the nontherapeutic nicotine device substance, or the
588     prefilled nontherapeutic nicotine device was so sold and shipped;
589          (c) furnishes from the purchaser a written acknowledgment that the purchaser has
590     received the electronic cigarette substance, the prefilled electronic cigarette, the alternative
591     nicotine product, the nontherapeutic nicotine device substance, or the prefilled nontherapeutic
592     nicotine device; and
593          (d) reports the name and address of the purchaser.
594          (2) A wholesaler or distributor in this state that exports an electronic cigarette
595     substance, a prefilled electronic cigarette, an alternative nicotine product, a nontherapeutic
596     nicotine device substance, or a prefilled nontherapeutic nicotine device to a regular dealer in
597     another state shall be exempt from the payment of any tax upon the sale of the article upon
598     furnishing such proof of the sale and exportation as the commission may require.
599          Section 18. Section 59-14-807 is enacted to read:
600          59-14-807. Electronic Cigarette Substance and Other Nicotine Product Tax
601     Restricted Account.
602          (1) There is created within the General Fund a restricted account known as the
603     "Electronic Cigarette Substance and Other Nicotine Product Tax Restricted Account."
604          (2) The Electronic Cigarette Substance and Other Nicotine Product Tax Restricted
605     Account consists of:
606          (a) for each fiscal year, the first $2,000,000 collected from the tax imposed by Section
607     59-14-804; and
608          (b) amounts appropriated by the Legislature.
609          (3) (a) For each fiscal year, beginning with fiscal year 2018-19, and subject to
610     appropriation by the Legislature, the Division of Finance shall distribute money from the
611     Electronic Cigarette Substance and Other Nicotine Product Tax Restricted Account to the local
612     health departments as directed by the Department of Health, which shall determine the
613     allocation for each local health department using the formula created in accordance with
614     Section 26A-1-116.
615          (b) The local health departments shall use the money received in accordance with
616     Subsection (3)(a) for:
617          (i) the implementation of a youth electronic cigarette and other nicotine product
618     cessation program;
619          (ii) enforcing the regulation provisions under Section 26-57-103 and the labeling
620     requirement in Section 26-57-104; and
621          (iii) providing electronic cigarette and other nicotine product use prevention education
622     to youth.
623          Section 19. Section 76-10-101 is amended to read:
624     
Part 1. Cigarettes, Tobacco, Other Nicotine Substances, and Psychotoxic Chemical

625     
Substances

626          76-10-101. Definitions.
627          As used in this part:
628          (1) "Alternative nicotine product" means the same as that term is defined in Section
629     59-14-102.
630          (2) "Cigar" means a product that contains nicotine, is intended to be burned under
631     ordinary conditions of use, and consists of any roll of tobacco wrapped in leaf tobacco, or in
632     any substance containing tobacco, other than any roll of tobacco that is a cigarette as described
633     in Subsection [(2)] (3).
634          [(2)] (3) "Cigarette" means a product that contains nicotine, is intended to be burned
635     under ordinary conditions of use, and consists of:
636          (a) any roll of tobacco wrapped in paper or in any substance not containing tobacco; or
637          (b) any roll of tobacco wrapped in any substance containing tobacco which, because of
638     its appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to
639     be offered to, or purchased by, consumers as a cigarette described in Subsection [(2)] (3)(a).
640          [(3) "Electronic cigarette" means an electronic cigarette product, as defined in Section
641     59-14-802.]
642          (4) (a) "Electronic cigarette" means:
643          (i) an electronic device used to deliver or capable of delivering vapor containing
644     nicotine to an individual's respiratory system;
645          (ii) a component of the device described in Subsection (4)(a)(i); or
646          (iii) an accessory sold in the same package as the device described in Subsection
647     (4)(a)(i).
648          (b) "Electronic cigarette" includes an e-cigarette as that term is defined in Section
649     26-38-2.
650          (5) "Electronic cigarette product" means an electronic cigarette or electronic cigarette
651     substance.
652          (6) "Electronic cigarette substance" means any substance, including liquid containing
653     nicotine, used or intended for use in an electronic cigarette.
654          (7) (a) "Nontherapeutic nicotine device" means a device that:
655          (i) has a pressurized canister that is used to administer nicotine to the user through
656     inhalation or intranasally;
657          (ii) is not purchased with a prescription from a licensed physician; and
658          (iii) is not approved by the United States Food and Drug Administration as nicotine
659     replacement therapy.
660          (b) "Nontherapeutic nicotine device" includes a nontherapeutic nicotine inhaler or
661     nontherapeutic nicotine nasal spray.
662          (8) "Nontherapeutic nicotine device substance" means a cartridge that:
663          (a) contains nicotine;
664          (b) is used or intended to be used in a nontherapeutic nicotine device;
665          (c) is not purchased with a prescription from a licensed physician; and
666          (d) is not approved by the United States Food and Drug Administration as nicotine
667     replacement therapy.
668          (9) "Nontherapeutic nicotine product" means a nontherapeutic nicotine device or a
669     nontherapeutic nicotine device substance.
670          [(4)] (10) "Place of business" includes:
671          (a) a shop;
672          (b) a store;
673          (c) a factory;
674          (d) a public garage;
675          (e) an office;
676          (f) a theater;
677          (g) a recreation hall;
678          (h) a dance hall;
679          (i) a poolroom;
680          (j) a café;
681          (k) a cafeteria;
682          (l) a cabaret;
683          (m) a restaurant;
684          (n) a hotel;
685          (o) a lodging house;
686          (p) a streetcar;
687          (q) a bus;
688          (r) an interurban or railway passenger coach;
689          (s) a waiting room; and
690          (t) any other place of business.
691          [(5)] (11) "Smoking" means the possession of any lighted cigar, cigarette, pipe, or other
692     lighted smoking equipment.
693          Section 20. Section 76-10-104 is amended to read:
694          76-10-104. Providing any cigar, cigarette, electronic cigarette, alternative nicotine
695     product, nontherapeutic nicotine product, or tobacco to a minor -- Penalties.
696          (1) Any person who knowingly, intentionally, recklessly, or with criminal negligence
697     provides any cigar, cigarette, electronic cigarette product, alternative nicotine product,
698     nontherapeutic nicotine product, or tobacco in any form[,] to any person under 19 years of
699     age[,] is guilty of a class C misdemeanor on the first offense, a class B misdemeanor on the
700     second offense, and a class A misdemeanor on subsequent offenses.
701          (2) For purposes of this section "provides":
702          (a) includes selling, giving, furnishing, sending, or causing to be sent; and
703          (b) does not include the acts of the United States Postal Service or other common
704     carrier when engaged in the business of transporting and delivering packages for others or the
705     acts of a person, whether compensated or not, who transports or delivers a package for another
706     person without any reason to know of the package's content.
707          Section 21. Section 76-10-104.1 is amended to read:
708          76-10-104.1. Providing tobacco paraphernalia to minors -- Penalties.
709          (1) For purposes of this section:
710          (a) "Provides":
711          (i) includes selling, giving, furnishing, sending, or causing to be sent; and
712          (ii) does not include the acts of the United States Postal Service or other common
713     carrier when engaged in the business of transporting and delivering packages for others or the
714     acts of a person, whether compensated or not, who transports or delivers a package for another
715     person without any reason to know of the package's content.
716          (b) (i) "Tobacco paraphernalia"[:(i)] means any equipment, product, or material of any
717     kind which is used, intended for use, or designed for use to package, repackage, store, contain,
718     conceal, ingest, inhale, or otherwise introduce a cigar, electronic cigarette substance,
719     nontherapeutic nicotine device substance, cigarette, or tobacco in any form into the human
720     body[, including:].
721          (ii) "Tobacco paraphernalia" includes:
722          (A) metal, wooden, acrylic, glass, stone, plastic, or ceramic pipes with or without
723     screens, permanent screens, hashish heads, or punctured metal bowls;
724          (B) water pipes;
725          (C) carburetion tubes and devices;
726          (D) smoking and carburetion masks;
727          (E) roach clips: meaning objects used to hold burning material, such as a cigarette, that
728     has become too small or too short to be held in the hand;
729          (F) chamber pipes;
730          (G) carburetor pipes;
731          (H) electric pipes;
732          (I) air-driven pipes;
733          (J) chillums;
734          (K) bongs; and
735          (L) ice pipes or chillers[; and].
736          [(ii)] (iii) "Tobacco paraphernalia" does not include matches or lighters.
737          (2) (a) It is unlawful for a person to knowingly, intentionally, recklessly, or with
738     criminal negligence provide any tobacco paraphernalia to any person under 19 years of age.
739          (b) A person who violates this section is guilty of a class C misdemeanor on the first
740     offense and a class B misdemeanor on subsequent offenses.
741          Section 22. Section 76-10-105 is amended to read:
742          76-10-105. Buying or possessing a cigar, cigarette, electronic cigarette, or tobacco
743     by a minor -- Penalty -- Compliance officer authority -- Juvenile court jurisdiction.
744          (1) Any 18-year-old person who buys or attempts to buy, accepts, or has in the person's
745     possession any cigar, cigarette, electronic cigarette product, alternative nicotine product,
746     nontherapeutic nicotine product, or tobacco in any form is guilty of a class C misdemeanor and
747     subject to:
748          (a) a minimum fine or penalty of $60; and
749          (b) participation in a court-approved tobacco education program, which may include a
750     participation fee.
751          (2) Any person under the age of 18 who buys or attempts to buy, accepts, or has in the
752     person's possession any cigar, cigarette, electronic cigarette product, alternative nicotine
753     product, nontherapeutic nicotine product, or tobacco in any form is subject to the jurisdiction of
754     the juvenile court and subject to Section 78A-6-602, unless the violation is committed on
755     school property. If a violation under this section is adjudicated under Section 78A-6-117, the
756     minor may be subject to the following:
757          (a) a fine or penalty, in accordance with Section 78A-6-117; and
758          (b) participation in a court-approved tobacco education program, which may include a
759     participation fee.
760          (3) A compliance officer appointed by a board of education under Section 53A-3-402
761     may not issue a citation for a violation of this section committed on school property. A cited
762     violation committed on school property shall be addressed in accordance with Section
763     53A-11-911.
764          Section 23. Section 76-10-105.1 is amended to read:
765          76-10-105.1. Requirement of direct, face-to-face sale of cigarettes, tobacco,
766     electronic cigarettes, nontherapeutic nicotine product, or alternative nicotine product --
767     Minors not allowed in tobacco specialty shop -- Penalties.
768          (1) As used in this section:
769          (a) "Cigarette" means the same as that term is defined in Section 59-14-102.
770          (b) (i) "Face-to-face exchange" means a transaction made in person between an
771     individual and a retailer or retailer's employee.
772          (ii) "Face-to-face exchange" does not include a sale through a:
773          (A) vending machine; or
774          (B) self-service display.
775          (c) "Retailer" means a person who:
776          (i) sells a cigarette, tobacco, [or] an electronic cigarette product, an alternative nicotine
777     product, or a nontherapeutic nicotine product to an individual for personal consumption; or
778          (ii) operates a facility with a vending machine that sells a cigarette, tobacco, [or] an
779     electronic cigarette product, an alternative nicotine product, or a nontherapeutic nicotine
780     product.
781          (d) "Self-service display" means a display of a cigarette, tobacco, [or] an electronic
782     cigarette product, an alternative nicotine product, or a nontherapeutic nicotine product to which
783     the public has access without the intervention of a retailer or retailer's employee.
784          (e) "Tobacco" means any product, except a cigarette, made of or containing tobacco.
785          (f) "Tobacco specialty shop" means a retailer with a physical location that derives at
786     least 80% of its total sales from the sale of cigarettes, tobacco, [or] electronic [cigarettes]
787     cigarette products, alternative nicotine products, or nontherapeutic nicotine products.
788          (2) Except as provided in Subsection (3), a retailer may sell a cigarette, tobacco, [or] an
789     electronic cigarette product, an alternative nicotine product, or a nontherapeutic nicotine
790     product only in a face-to-face exchange.
791          (3) The face-to-face sale requirement in Subsection (2) does not apply to:
792          (a) a mail-order, telephone, or Internet sale made in compliance with Section
793     59-14-509;
794          (b) a sale from a vending machine or self-service display that is located in an area of a
795     retailer's facility:
796          (i) that is distinct and separate from the rest of the facility; and
797          (ii) where the retailer only allows an individual who complies with Subsection (4) to be
798     present; or
799          (c) a sale at a tobacco specialty shop.
800          (4) An individual who is less than 19 years old may not enter or be present at a tobacco
801     specialty shop unless the individual is:
802          (a) accompanied by a parent or legal guardian;
803          (b) present at the tobacco shop for a bona fide commercial purpose other than to
804     purchase a cigarette, tobacco, [or] an electronic cigarette product, an alternative nicotine
805     product, or a nontherapeutic nicotine product; or
806          (c) 18 years old or older and an active duty member of the United States Armed Forces,
807     as demonstrated by a valid, government-issued military identification card.
808          (5) A parent or legal guardian who accompanies, under Subsection (4)(a), an individual
809     into an area described in Subsection (3)(b), or into a tobacco specialty shop, may not allow the
810     individual to purchase a cigarette, tobacco, [or] an electronic cigarette product, an alternative
811     nicotine product, or a nontherapeutic nicotine product.
812          (6) A violation of Subsection (2) or (4) is a:
813          (a) class C misdemeanor on the first offense;
814          (b) class B misdemeanor on the second offense; and
815          (c) class A misdemeanor on the third and all subsequent offenses.
816          (7) An individual who violates Subsection (5) is guilty of providing tobacco to a minor
817     under Section 76-10-104.
818          (8) (a) Any ordinance, regulation, or rule adopted by the governing body of a political
819     subdivision of the state or by a state agency that affects the sale, placement, or display of
820     cigarettes, tobacco, [or] an electronic [cigarettes] cigarette product, an alternative nicotine
821     product, or a nontherapeutic nicotine product that is not essentially identical to the provisions
822     of this section and Section 76-10-102 is superseded.
823          (b) Subsection (8)(a) does not apply to the adoption or enforcement of a land use
824     ordinance by a municipal or county government.
825          Section 24. Effective date.
826          This bill takes effect on July 1, 2018.