Representative Jennifer Dailey-Provost proposes the following substitute bill:


1     
RETAIL TOBACCO BUSINESS AMENDMENTS

2     
2019 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Jennifer Dailey-Provost

5     
Senate Sponsor: Evan J. Vickers

6     Cosponsors:
7     Melissa G. Ballard
8     Suzanne Harrison
9     Sandra Hollins
10     Eric K. Hutchings
11     Marsha Judkins
Karen Kwan
Derrin R. Owens
Lee B. Perry
Stephanie Pitcher
Val K. Potter
Marie H. Poulson
Paul Ray
Andrew Stoddard
Norman K. Thurston
Raymond P. Ward
Mark A. Wheatley
12     

13     LONG TITLE
14     General Description:
15          This bill amends provisions relating to the sale of certain tobacco products.
16     Highlighted Provisions:
17          This bill:
18          ▸     defines terms;
19          ▸     creates requirements regarding the verification of age when selling an electronic
20     cigarette product or seeking entry into certain restricted areas;
21          ▸     prohibits an individual from using proof of age fraudulently or permitting the
22     individual's proof of age to be used by another individual fraudulently to obtain an
23     electronic cigarette product or gain entry into certain restricted areas;
24          ▸     prohibits a manufacturer, wholesaler, or retailer from providing certain discounts or

25     giveaways for electronic cigarette products; and
26          ▸     makes technical changes.
27     Money Appropriated in this Bill:
28          None
29     Other Special Clauses:
30          This bill provides a special effective date.
31     Utah Code Sections Affected:
32     AMENDS:
33          26-62-102, as renumbered and amended by Laws of Utah 2018, Chapter 231
34          76-10-111, as last amended by Laws of Utah 2010, Chapter 114
35     ENACTS:
36          26-62-206, Utah Code Annotated 1953
37          26-62-401, Utah Code Annotated 1953
38          26-62-402, Utah Code Annotated 1953
39          26-62-403, Utah Code Annotated 1953
40          26-62-404, Utah Code Annotated 1953
41     

42     Be it enacted by the Legislature of the state of Utah:
43          Section 1. Section 26-62-102 is amended to read:
44          26-62-102. Definitions.
45          As used in this chapter:
46          (1) "Community location" means the same as that term is defined:
47          (a) as it relates to a municipality, in Section 10-8-41.6; and
48          (b) as it relates to a county, in Section 17-50-333.
49          (2) "Electronic cigarette product" means the same as that term is defined in Section
50     59-14-802.
51          [(2)] (3) "Employee" means an employee of a tobacco retailer.
52          [(3)] (4) "Enforcing agency" means the state Department of Health, or any local health
53     department enforcing the provisions of this chapter.
54          [(4)] (5) "General tobacco retailer" means a tobacco retailer that is not a retail tobacco
55     specialty business.

56          [(5)] (6) "Local health department" means the same as that term is defined in Section
57     26A-1-102.
58          [(6)] (7) "Permit" means a tobacco retail permit issued under this chapter.
59          (8) (a) "Proof of age" means:
60          (i) an identification card issued under Title 53, Chapter 3, Part 8, Identification Card
61     Act;
62          (ii) an identification that:
63          (A) is substantially similar to an identification card issued under Title 53, Chapter 3,
64     Part 8, Identification Card Act;
65          (B) is issued in accordance with the laws of a state other than Utah in which the
66     identification is issued;
67          (C) includes date of birth; and
68          (D) has a picture affixed;
69          (iii) a valid driver license certificate that:
70          (A) includes date of birth;
71          (B) has a picture affixed; and
72          (C) is issued under Title 53, Chapter 3, Uniform Driver License Act, or in accordance
73     with the laws of the state in which it is issued;
74          (iv) a military identification card that:
75          (A) includes date of birth; and
76          (B) has a picture affixed; or
77          (v) a valid passport.
78          (b) "Proof of age" does not include a driving privilege card issued in accordance with
79     Section 53-3-207.
80          (9) "Qualified individual" means an individual who:
81          (a) for entry into a restricted area, is permitted to enter or be present at a retail tobacco
82     specialty business under Subsection 76-10-105.1(4); or
83          (b) for obtaining an electronic cigarette product, may be provided an electronic
84     cigarette product under Section 76-10-104.
85          (10) "Restricted area" means:
86          (a) any part of the premises of a retail tobacco specialty business; or

87          (b) any part of the floor space of a general tobacco retailer that is:
88          (i) physically separated from unrestricted parts of the general tobacco retailer; and
89          (ii) restricted to an individual who provides proof of age before entering.
90          [(7)] (11) "Retail tobacco specialty business" means the same as that term is defined:
91          (a) as it relates to a municipality, in Section 10-8-41.6; and
92          (b) as it relates to a county, in Section 17-50-333.
93          [(8)] (12) "Tax commission license" means a license issued by the State Tax
94     Commission under:
95          (a) Section 59-14-201 to sell cigarettes at retail;
96          (b) Section 59-14-301 to sell tobacco products at retail; or
97          (c) Section 59-14-803 to sell an electronic cigarette product.
98          [(9)] (13) "Tobacco product" means:
99          (a) a cigar[,] or cigarette[, or electronic cigarette] as those terms are defined in Section
100     76-10-101;
101          (b) an electronic cigarette product;
102          [(b)] (c) a tobacco product as that term is defined in Section 59-14-102, including:
103          (i) chewing tobacco; or
104          (ii) any substitute for a tobacco product, including flavoring or additives to tobacco; or
105          [(c)] (d) tobacco paraphernalia as that term is defined in Section 76-10-104.1.
106          [(10)] (14) "Tobacco retailer" means a person that is required to obtain a tax
107     commission license.
108          Section 2. Section 26-62-206 is enacted to read:
109          26-62-206. Permit requirements for the sale of an electronic cigarette product.
110          (1) If a tobacco retailer sells an electronic cigarette product, the tobacco retailer shall
111     maintain a video recording system that:
112          (a) tracks the inventory and sale of any electronic cigarette product offered for sale by
113     the tobacco retailer;
114          (b) stores a video record for at least 30 days; and
115          (c) is made available to an enforcing agency or peace officer at the request of the
116     enforcing agency or peace officer.
117          (2) A general tobacco retailer that sells an electronic cigarette product shall display and

118     store the electronic cigarette product in a manner that is not accessible to an individual who is
119     not a qualified individual, including:
120          (a) behind a retail counter that is not accessible to customers of the general tobacco
121     retailer;
122          (b) in a locked case that cannot be accessed without assistance from an employee; or
123          (c) in a part of the store that:
124          (i) is physically separated from unrestricted parts of the general tobacco retailer; and
125          (ii) is only made accessible to an individual who provides proof of age prior to
126     entering.
127          Section 3. Section 26-62-401 is enacted to read:
128     
Part 4. Proof of Age Requirements

129          26-62-401. Verification of proof of age.
130          (1) A tobacco retailer shall require that an employee verify proof of age as provided in
131     this section.
132          (2) (a) If an employee does not verify proof of age under this section, the employee
133     may not permit an individual to:
134          (i) except as provided in Subsection (2)(b), enter a restricted area; or
135          (ii) obtain an electronic cigarette product.
136          (b) In accordance with Subsection 76-10-105.1(4), an individual who is not a qualified
137     individual may be permitted to enter a restricted area if the individual is:
138          (i) accompanied by a parent or legal guardian who provides proof of age;
139          (ii) present at the tobacco retailer for a bona fide commercial purpose other than to
140     purchase a cigarette, tobacco, or an electronic cigarette; or
141          (iii) 18 years of age or older and an active duty member of the United States Armed
142     Forces, as demonstrated by a valid, government-issued military identification card.
143          (3) To comply with Subsections (1) and (2), an employee shall:
144          (a) request the individual present proof of age; and
145          (b) (i) verify the validity of the proof of age electronically under the verification
146     program created in Subsection (6); or
147          (ii) if the employee attempts to verify the validity of the proof of age under Subsection
148     (3)(b)(i) and the proof of age cannot be verified electronically, document the individual's proof

149     of age in accordance with Subsection (4)(b).
150          (4) If, after an employee attempts to verify an individual's proof of age under
151     Subsection (6), the employee cannot electronically verify the individual's proof of age, an
152     employee complies with Subsections (1) and (2) if:
153          (a) for a tobacco retailer that maintains a video recording system described in
154     Subsection (5), the employee manually inputs the individual's date of birth; or
155          (b) for a tobacco retailer that does not maintain a video recording system described in
156     Subsection (5), the employee obtains a statement of age from the individual that includes:
157          (i) the individual's name
158          (ii) the individual's date of birth;
159          (iii) a description of the type of document presented to the employee as proof of age;
160          (iv) the date that the statement of age is signed;
161          (v) the signature of the employee; and
162          (vi) the signature of the individual.
163          (5) A video recording system described in Subsection (4) shall:
164          (a) record a clear video of the inventory of any electronic cigarette product offered for
165     sale by the tobacco retailer;
166          (b) record a clear video of the sale of any electronic cigarette product where the
167     employee and the customer are clearly visible;
168          (c) store a video record for at least 20 days; and
169          (d) be made available to an enforcing agency or peace officer at the request of the
170     enforcing agency or peace officer.
171          (6) The department shall implement an electronic verification program that adopts the
172     specifications and security measures established under Subsection 32B-1-407(5) by the
173     Alcoholic Beverage Control Commission created in Section 32B-2-201.
174          (7) At the request of a tobacco retailer, the department shall provide to the tobacco
175     retailer a form for a statement of age described in Subsection (4)(b).
176          (8) (a) A tobacco retailer may not disclose information obtained under this section
177     except as provided under this chapter.
178          (b) Information obtained under this section shall be:
179          (i) kept for at least one year; and

180          (ii) is subject to inspection upon request by a peace officer or the representative of an
181     enforcement agency.
182          Section 4. Section 26-62-402 is enacted to read:
183          26-62-402. Presentation of proof of age upon request.
184          (1) If an individual does not present proof of age at the request of an individual listed
185     in Subsection (3), a tobacco retailer may not permit the individual to:
186          (a) obtain an electronic cigarette product; or
187          (b) except as provided in Subsection (2), enter a restricted area.
188          (2) An individual may enter a restricted area without presenting proof of age if the
189     individual is:
190          (a) accompanied by a parent or legal guardian who presents proof of age or a statement
191     of age; or
192          (b) present at the tobacco retailer for a bona fide commercial purpose other than to
193     purchase a cigarette, tobacco, or an electronic cigarette.
194          (3) To determine whether an individual is a qualified individual, the following may
195     request the individual to present proof of age:
196          (a) an employee;
197          (b) a peace officer; or
198          (c) the representative of an enforcement agency.
199          Section 5. Section 26-62-403 is enacted to read:
200          26-62-403. Unlawful transfer or use of proof of age -- False information.
201          (1) (a) It is unlawful for an individual to transfer that individual's proof of age to
202     another individual to aid that individual:
203          (i) in procuring a tobacco product; or
204          (ii) in gaining admittance to a restricted area.
205          (b) An individual who violates Subsection (1)(a) is guilty of a class B misdemeanor.
206          (2) (a) It is unlawful for an individual to use a proof of age containing false information
207     with the intent to:
208          (i) procure a tobacco product; or
209          (ii) gain admittance to a restricted area.
210          (b) An individual who violates this Subsection (2) is guilty of a class A misdemeanor.

211          Section 6. Section 26-62-404 is enacted to read:
212          26-62-404. Penalty.
213          (1) Unless otherwise provided in this chapter, a person who violates this part is guilty
214     of:
215          (a) for the first offense within a one-year period, an infraction punishable by a fine of
216     $100;
217          (b) for the second offense that occurs within one year of a previous violation, an
218     infraction punishable by a fine of $200;
219          (c) for the third offense that occurs within one year after two or more previous
220     violations, an infraction punishable by a fine of $300; and
221          (d) for the fourth or subsequent offense that occurs within one year after three or more
222     previous offenses, a class B misdemeanor.
223          (2) A person is not subject to a penalty for a violation of this part if it is proved to the
224     enforcing agency or the court hearing the matter that the person charged with the violation
225     acted in good faith.
226          Section 7. Section 76-10-111 is amended to read:
227          76-10-111. Restrictions on sale of smokeless tobacco or electronic cigarettes --
228     Exceptions.
229          (1) The Legislature finds that:
230          (a) smokeless tobacco, or chewing tobacco, is harmful to the health of individuals who
231     use those products because research indicates that they may cause mouth or oral cancers;
232          (b) the use of smokeless tobacco among juveniles in this state is increasing rapidly;
233          (c) the use of electronic cigarettes may lead to unhealthy behavior such as the use of
234     tobacco products; and
235          (d) it is necessary to restrict the gift of the products described in this Subsection (1) in
236     the interest of the health of the citizens of this state.
237          (2) (a) Except as provided in Subsection (3), it is unlawful for a manufacturer,
238     wholesaler, and retailer to:
239          (i) give or distribute without charge any smokeless tobacco, chewing tobacco, or
240     electronic cigarette in this state[.];
241          (ii) except as provided in Subsection (2)(b), sell, offer for sale, or furnish any

242     electronic cigarette at less than 90% of the cost of the product to the manufacturer, wholesaler,
243     or retailer; or
244          (iii) give, distribute, sell, offer for sale, or furnish any electronic cigarette for free or at
245     a lower price because the purchaser makes another purchase.
246          (b) The price that a manufacturer, wholesaler, or retailer may charge under Subsection
247     (2)(a)(ii) does not include a discount for:
248          (i) a manufacturer coupon:
249          (A) that is surrendered to the tobacco retailer at the time of sale; and
250          (B) for which the manufacturer will reimburse the wholesaler or retailer for the full
251     amount of the discount described in the manufacturer coupon and provided to the purchaser;
252          (ii) a rebate that will be paid to the manufacturer, wholesaler, or retailer for the full
253     amount of the rebate provided to the purchaser; or
254          (iii) a promotional fund that will be paid to the manufacturer, wholesaler, or retailer for
255     the full amount of the promotional fund provided to the purchaser.
256          (c) Any person who violates this section is guilty of a class C misdemeanor for the first
257     offense, and is guilty of a class B misdemeanor for any subsequent offense.
258          (3) [(a)] Smokeless tobacco, chewing tobacco, or an electronic cigarette may be
259     distributed to adults without charge at professional conventions where the general public is
260     excluded.
261          [(b) Subsection (2) does not apply to a retailer, manufacturer, or distributor who gives
262     smokeless tobacco, chewing tobacco, or an electronic cigarette to a person of legal age upon
263     the person's purchase of another tobacco product or electronic cigarette.]
264          Section 8. Effective date.
265          This bill takes effect on January 1, 2020.