This document includes House Committee Amendments incorporated into the bill on Wed, Feb 19, 2020 at 1:55 PM by pflowers.
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7 LONG TITLE
8 General Description:
9 This bill amends provisions relating to the sale of certain tobacco products.
10 Highlighted Provisions:
11 This bill:
12 ▸ defines terms;
13 ▸ amends the definition of a retail tobacco specialty business to include any retailer
14 that sells a flavored electronic cigarette product;
15 ▸ repeals preemption of certain local ordinances relating to tobacco products;
16 ▸ authorizes regulation and testing of manufacturer sealed electronic cigarette
17 substances;
18 ▸ requires a tobacco retailer to maintain certain records;
19 ▸ allows a political subdivision or a state agency to adopt an ordinance, regulation, or
20 rule affecting the sale of certain electronic cigarette products;
21 ▸ prohibits a manufacturer, wholesaler, or retailer from providing certain discounts or
22 giveaways for tobacco products; and
23 ▸ makes technical changes.
24 Money Appropriated in this Bill:
25 None
26 Other Special Clauses:
27 This bill provides a coordination clause.
28 Utah Code Sections Affected:
29 AMENDS:
30 10-8-41.6, as last amended by Laws of Utah 2018, Chapter 231
31 17-50-333, as last amended by Laws of Utah 2018, Chapter 231
32 26-57-103, as enacted by Laws of Utah 2015, Chapter 132
33 76-10-105.1 (Superseded 07/01/20), as last amended by Laws of Utah 2018, Chapter
34 231
35 76-10-105.1 (Effective 07/01/20), as last amended by Laws of Utah 2019, Chapter 232
36 76-10-111, as last amended by Laws of Utah 2010, Chapter 114
37 76-10-112, as enacted by Laws of Utah 1989, Chapter 193
38 ENACTS:
39 26-62-206, Utah Code Annotated 1953
40 Utah Code Sections Affected by Coordination Clause:
41 10-8-41.6, as last amended by Laws of Utah 2018, Chapter 231
42 17-50-333, as last amended by Laws of Utah 2018, Chapter 231
43
44 Be it enacted by the Legislature of the state of Utah:
45 Section 1. Section 10-8-41.6 is amended to read:
46 10-8-41.6. Regulation of retail tobacco specialty business.
47 (1) As used in this section:
48 (a) "Community location" means:
49 (i) a public or private kindergarten, elementary, middle, junior high, or high school;
50 (ii) a licensed child-care facility or preschool;
51 (iii) a trade or technical school;
52 (iv) a church;
53 (v) a public library;
54 (vi) a public playground;
55 (vii) a public park;
56 (viii) a youth center or other space used primarily for youth oriented activities;
57 (ix) a public recreational facility;
58 (x) a public arcade; or
59 (xi) for a new license issued on or after July 1, 2018, a homeless shelter.
60 (b) "Department" means the Department of Health, created in Section 26-1-4.
61 (c) "Electronic cigarette product" means the same as that term is defined in Section
62 59-14-802.
63 (d) (i) "Flavored electronic cigarette product" means an electronic cigarette product
64 that has a taste or smell that is distinguishable by an ordinary consumer either before or during
65 use or consumption of the electronic cigarette product.
66 (ii) "Flavored electronic cigarette product" includes an electronic cigarette product that
67 has a taste or smell of any fruit, chocolate, vanilla, honey, candy, cocoa, dessert, alcoholic
68 beverage, herb, mint, menthol, or spice.
69 (iii) "Flavored electronic cigarette product" does not include an electronic cigarette
70 product that has a taste or smell of only tobacco.
71 [
72 26A-1-102.
73 [
74 a retail tobacco specialty business.
75 [
76 which:
77 (i) the sale of tobacco products accounts for more than 35% of the total quarterly gross
78 receipts for the establishment;
79 (ii) 20% or more of the public retail floor space is allocated to the offer, display, or
80 storage of tobacco products;
81 (iii) 20% or more of the total shelf space is allocated to the offer, display, or storage of
82 tobacco products; [
83 (iv) the retail space features a self-service display for tobacco products[
84 (v) any flavored electronic cigarette product is sold.
85 [
86 76-10-105.1.
87 [
88 (i) any cigar, cigarette, or electronic cigarette, as those terms are defined in Section
89 76-10-101;
90 (ii) a tobacco product, as that term is defined in Section 59-14-102, including:
91 (A) chewing tobacco; or
92 (B) any substitute for a tobacco product, including flavoring or additives to tobacco;
93 and
94 (iii) tobacco paraphernalia, as that term is defined in Section 76-10-104.1.
95 (2) The regulation of a retail tobacco specialty business is an exercise of the police
96 powers of the state, and through delegation, to other governmental entities.
97 (3) (a) A person may not operate a retail tobacco specialty business in a municipality
98 unless the person obtains a license from the municipality in which the retail tobacco specialty
99 business is located.
100 (b) A municipality may only issue a retail tobacco specialty business license to a
101 person if the person complies with the provisions of Subsections (4) and (5).
102 (4) (a) Except as provided in Subsection (7), a municipality may not issue a license for
103 a person to conduct business as a retail tobacco specialty business if the retail tobacco specialty
104 business is located within:
105 (i) 1,000 feet of a community location;
106 (ii) 600 feet of another retail tobacco specialty business; or
107 (iii) 600 feet from property used or zoned for:
108 (A) agriculture use; or
109 (B) residential use.
110 (b) For purposes of Subsection (4)(a), the proximity requirements shall be measured in
111 a straight line from the nearest entrance of the retail tobacco specialty business to the nearest
112 property boundary of a location described in Subsections (4)(a)(i) through (iii), without regard
113 to intervening structures or zoning districts.
114 (5) (a) Except as provided in Subsection (5)(b), beginning July 1, 2018, a municipality
115 may not issue or renew a license for a person to conduct business as a retail tobacco specialty
116 business until the person provides the municipality with proof that the retail tobacco specialty
117 business has:
118 (i) a valid permit for a retail tobacco specialty business issued under Title 26, Chapter
119 62, Tobacco Retail Permit, by the local health department having jurisdiction over the area in
120 which the retail tobacco specialty business is located; and
121 (ii) a valid license to sell tobacco products from the State Tax Commission.
122 (b) A person that was licensed to conduct business as a retail tobacco specialty
123 business in a municipality before July 1, 2018, shall obtain a permit from a local health
124 department under Title 26, Chapter 62, Tobacco Retail Permit, on or before January 1, 2019.
125 (6) (a) Nothing in this section:
126 (i) requires a municipality to issue a retail tobacco specialty business license; or
127 (ii) prohibits a municipality from adopting more restrictive requirements on a person
128 seeking a license or renewal of a license to conduct business as a retail tobacco specialty
129 business.
130 (b) A municipality may suspend or revoke a retail tobacco specialty business license
131 issued under this section:
132 (i) if a licensee engages in a pattern of unlawful activity under Title 76, Chapter 10,
133 Part 16, Pattern of Unlawful Activity Act;
134 (ii) if a licensee violates the regulations restricting the sale and distribution of
135 cigarettes and smokeless tobacco to protect children and adolescents issued by the United
136 States Food and Drug Administration, 21 C.F.R. Part 1140;
137 (iii) upon the recommendation of the department or a local health department under
138 Title 26, Chapter 62, Tobacco Retail Permit; or
139 (iv) under any other provision of state law or local ordinance.
140 (7) (a) In accordance with Subsection (7)(b), a retail tobacco specialty business that has
141 a business license and is operating in a municipality in accordance with all applicable laws
142 except for the requirement in Subsection (4), on or before December 31, 2015, is exempt from
143 Subsection (4).
144 (b) A retail tobacco specialty business may maintain an exemption under Subsection
145 (7)(a) if:
146 (i) the retail tobacco specialty business license is renewed continuously without lapse
147 or permanent revocation;
148 (ii) the retail tobacco specialty business does not close for business or otherwise
149 suspend the sale of tobacco products for more than 60 consecutive days;
150 (iii) the retail tobacco specialty business does not substantially change the business
151 premises or business operation; and
152 (iv) the retail tobacco specialty business maintains the right to operate under the terms
153 of other applicable laws, including:
154 (A) Title 26, Chapter 38, Utah Indoor Clean Air Act;
155 (B) zoning ordinances;
156 (C) building codes; and
157 (D) the requirements of a retail tobacco specialty business license issued before
158 December 31, 2015.
159 Section 2. Section 17-50-333 is amended to read:
160 17-50-333. Regulation of retail tobacco specialty business.
161 (1) As used in this section:
162 (a) "Community location" means:
163 (i) a public or private kindergarten, elementary, middle, junior high, or high school;
164 (ii) a licensed child-care facility or preschool;
165 (iii) a trade or technical school;
166 (iv) a church;
167 (v) a public library;
168 (vi) a public playground;
169 (vii) a public park;
170 (viii) a youth center or other space used primarily for youth oriented activities;
171 (ix) a public recreational facility;
172 (x) a public arcade; or
173 (xi) for a new license issued on or after July 1, 2018, a homeless shelter.
174 (b) "Department" means the Department of Health, created in Section 26-1-4.
175 (c) "Electronic cigarette product" means the same as that term is defined in Section
176 59-14-802.
177 (d) (i) "Flavored electronic cigarette product" means an electronic cigarette product
178 that has a taste or smell that is distinguishable by an ordinary consumer either before or during
179 use or consumption of the electronic cigarette product.
180 (ii) "Flavored electronic cigarette product" includes an electronic cigarette product that
181 has a taste or smell of any fruit, chocolate, vanilla, honey, candy, cocoa, dessert, alcoholic
182 beverage, herb, mint, menthol, or spice.
183 (iii) "Flavored electronic cigarette product" does not include an electronic cigarette
184 product that has a taste or smell of only Ĥ→ [
185 [
186 retail tobacco specialty business.
187 [
188 26A-1-102.
189 [
190 which:
191 (i) the sale of tobacco products accounts for more than 35% of the total quarterly gross
192 receipts for the establishment;
193 (ii) 20% or more of the public retail floor space is allocated to the offer, display, or
194 storage of tobacco products;
195 (iii) 20% or more of the total shelf space is allocated to the offer, display, or storage of
196 tobacco products; [
197 (iv) the retail space features a self-service display for tobacco products[
198 (v) any flavored electronic cigarette product is sold.
199 [
200 76-10-105.1.
201 [
202 (i) any cigar, cigarette, or electronic cigarette as those terms are defined in Section
203 76-10-101;
204 (ii) a tobacco product as that term is defined in Section 59-14-102, including:
205 (A) chewing tobacco; or
206 (B) any substitute for a tobacco product, including flavoring or additives to tobacco;
207 and
208 (iii) tobacco paraphernalia as that term is defined in Section 76-10-104.1.
209 (2) The regulation of a retail tobacco specialty business is an exercise of the police
210 powers of the state, and through delegation, to other governmental entities.
211 (3) (a) A person may not operate a retail tobacco specialty business in a county unless
212 the person obtains a license from the county in which the retail tobacco specialty business is
213 located.
214 (b) A county may only issue a retail tobacco specialty business license to a person if
215 the person complies with the provisions of Subsections (4) and (5).
216 (4) (a) Except as provided in Subsection (7), a county may not issue a license for a
217 person to conduct business as a retail tobacco specialty business if the retail tobacco specialty
218 business is located within:
219 (i) 1,000 feet of a community location;
220 (ii) 600 feet of another retail tobacco specialty business; or
221 (iii) 600 feet from property used or zoned for:
222 (A) agriculture use; or
223 (B) residential use.
224 (b) For purposes of Subsection (4)(a), the proximity requirements shall be measured in
225 a straight line from the nearest entrance of the retail tobacco specialty business to the nearest
226 property boundary of a location described in Subsections (4)(a)(i) through (iii), without regard
227 to intervening structures or zoning districts.
228 (5) (a) Except as provided in Subsection (5)(b), beginning July 1, 2018, a county may
229 not issue or renew a license for a person to conduct business as a retail tobacco specialty
230 business until the person provides the county with proof that the retail tobacco specialty
231 business has:
232 (i) a valid permit for a retail tobacco specialty business issued under Title 26, Chapter
233 62, Tobacco Retail Permit, by the local health department having jurisdiction over the area in
234 which the retail tobacco specialty business is located; and
235 (ii) a valid license to sell tobacco products from the State Tax Commission.
236 (b) A person that was licensed to conduct business as a retail tobacco specialty
237 business in a county before July 1, 2018, shall obtain a permit from a local health department
238 under Title 26, Chapter 62, Tobacco Retail Permit, on or before January 1, 2019.
239 (6) (a) Nothing in this section:
240 (i) requires a county to issue a retail tobacco specialty business license; or
241 (ii) prohibits a county from adopting more restrictive requirements on a person seeking
242 a license or renewal of a license to conduct business as a retail tobacco specialty business.
243 (b) A county may suspend or revoke a retail tobacco specialty business license issued
244 under this section:
245 (i) if a licensee engages in a pattern of unlawful activity under Title 76, Chapter 10,
246 Part 16, Pattern of Unlawful Activity Act;
247 (ii) if a licensee violates the regulations restricting the sale and distribution of
248 cigarettes and smokeless tobacco to protect children and adolescents issued by the United
249 States Food and Drug Administration, 21 C.F.R. Part 1140;
250 (iii) upon the recommendation of the department or a local health department under
251 Title 26, Chapter 62, Tobacco Retail Permit; or
252 (iv) under any other provision of state law or local ordinance.
253 (7) (a) In accordance with Subsection (7)(b), a retail tobacco specialty business that has
254 a business license and is operating in a county in accordance with all applicable laws except for
255 the requirement in Subsection (4), on or before December 31, 2015, is exempt from Subsection
256 (4).
257 (b) A retail tobacco specialty business may maintain an exemption under Subsection
258 (7)(a) if:
259 (i) the retail tobacco specialty business license is renewed continuously without lapse
260 or permanent revocation;
261 (ii) the retail tobacco specialty business does not close for business or otherwise
262 suspend the sale of tobacco products for more than 60 consecutive days;
263 (iii) the retail tobacco specialty business does not substantially change the business
264 premises or business operation; and
265 (iv) the retail tobacco specialty business maintains the right to operate under the terms
266 of other applicable laws, including:
267 (A) Title 26, Chapter 38, Utah Indoor Clean Air Act;
268 (B) zoning ordinances;
269 (C) building codes; and
270 (D) the requirements of a retail tobacco specialty business license issued before
271 December 31, 2015.
272 Section 3. Section 26-57-103 is amended to read:
273 26-57-103. Electronic cigarette products -- Labeling -- Manufacturing and
274 quality control standards -- Advertising.
275 (1) The department shall, in consultation with a local health department, as defined in
276 Section 26A-1-102, and with input from members of the public, establish, no later than January
277 1, 2016, by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
278 Rulemaking Act, standards for electronic cigarette substance:
279 (a) labeling;
280 (b) nicotine content;
281 (c) packaging; and
282 (d) product quality.
283 [
284
285 (2) On or before January 1, 2021, the department shall, in consultation with a local
286 health department, as defined in Section 26A-1-102, and with input from members of the
287 public, establish by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
288 Rulemaking Act, standards for manufacturer sealed electronic cigarette substance:
289 (a) labeling;
290 (b) nicotine content;
291 (c) packaging; and
292 (d) product quality.
293 (3) (a) Beginning on July 1, 2016, a person may not sell an electronic cigarette
294 substance unless the electronic cigarette substance complies with the standards established by
295 the department under Subsection (1).
296 (b) Beginning July 1, 2021, a person may not sell a manufacturer sealed electronic
297 cigarette substance unless the manufacturer sealed electronic cigarette substance complies with
298 the standards established by the department under Subsection (2).
299 (4) (a) Beginning on July 1, 2016, a local health department may not enact a rule or
300 regulation regarding electronic cigarette substance labeling, nicotine content, packaging, or
301 product quality that is not [
302 department under [
303 (b) [
304 rule or regulation regarding electronic cigarette substance manufacturing.
305 [
306
307 (5) Beginning on July 1, 2016, a person may not advertise an electronic cigarette
308 product:
309 (a) as a tobacco cessation device;
310 (b) if the person is not licensed to sell an electronic cigarette product under Section
311 59-14-803; or
312 (c) during a period of time when the person's license to sell an electronic cigarette
313 product under Section 59-14-803 has been suspended or revoked.
314 Section 4. Section 26-62-206 is enacted to read:
315 26-62-206. Permit requirements for the sale of tobacco products.
316 (1) A tobacco retailer shall:
317 (a) for each sale of a tobacco product, provide the customer with an itemized receipt
318 for each sale of a tobacco product that separately identifies:
319 (i) the name of the tobacco product;
320 (ii) the amount charged for each tobacco product; and
321 (iii) the time and date of the sale; and
322 (b) maintain an itemized transaction log for each sale of a tobacco product that
323 separately identifies:
324 (i) the name of the tobacco product;
325 (ii) the amount charged for each tobacco product; and
326 (iii) the date and time of the sale.
327 (2) The itemized transaction log described in Subsection (1)(b) shall be:
328 (a) maintained for at least one year from the date of each transaction in the itemized
329 transaction log; and
330 (b) made available to an enforcing agency or peace officer at the request of the
331 enforcing agency or peace officer that is no less restrictive than the provisions in this part.
332 Section 5. Section 76-10-105.1 (Superseded 07/01/20) is amended to read:
333 76-10-105.1 (Superseded 07/01/20). Requirement of direct, face-to-face sale of
334 cigarettes, tobacco, and electronic cigarettes -- Minors not allowed in tobacco specialty
335 shop -- Penalties.
336 (1) As used in this section:
337 (a) "Cigarette" means the same as that term is defined in Section 59-14-102.
338 (b) (i) "Face-to-face exchange" means a transaction made in person between an
339 individual and a retailer or retailer's employee.
340 (ii) "Face-to-face exchange" does not include a sale through a:
341 (A) vending machine; or
342 (B) self-service display.
343 (c) (i) "Flavored electronic cigarette" means an electronic cigarette that has a taste or
344 smell that is distinguishable by an ordinary consumer either before or during use or
345 consumption of the electronic cigarette.
346 (ii) "Flavored electronic cigarette" includes an electronic cigarette that has a taste or
347 smell of any fruit, chocolate, vanilla, honey, candy, cocoa, dessert, alcoholic beverage, herb,
347a Ĥ→ mint, ←Ĥ
348 menthol, or spice.
349 (iii) "Flavored electronic cigarette" does not include an electronic cigarette that has a
350 taste or smell of only tobacco.
351 [
352 (i) sells a cigarette, tobacco, or an electronic cigarette to an individual for personal
353 consumption; or
354 (ii) operates a facility with a vending machine that sells a cigarette, tobacco, or an
355 electronic cigarette.
356 [
357 cigarette to which the public has access without the intervention of a retailer or retailer's
358 employee.
359 [
360 tobacco.
361 [
362 term is defined:
363 (i) as it relates to a municipality, in Section 10-8-41.6; and
364 (ii) as it relates to a county, in Section 17-50-333.
365 (2) Except as provided in Subsection (3), a retailer may sell a cigarette, tobacco, or an
366 electronic cigarette only in a face-to-face exchange.
367 (3) The face-to-face sale requirement in Subsection (2) does not apply to:
368 (a) a mail-order, telephone, or Internet sale made in compliance with Section
369 59-14-509;
370 (b) a sale from a vending machine or self-service display that is located in an area of a
371 retailer's facility:
372 (i) that is distinct and separate from the rest of the facility; and
373 (ii) where the retailer only allows an individual who complies with Subsection (4) to be
374 present; or
375 (c) a sale at a tobacco specialty shop.
376 (4) An individual who is less than 19 years old may not enter or be present at a tobacco
377 specialty shop unless the individual is:
378 (a) accompanied by a parent or legal guardian;
379 (b) present at the tobacco shop for a bona fide commercial purpose other than to
380 purchase a cigarette, tobacco, or an electronic cigarette; or
381 (c) 18 years old or older and an active duty member of the United States Armed Forces,
382 as demonstrated by a valid, government-issued military identification card.
383 (5) A parent or legal guardian who accompanies, under Subsection (4)(a), an individual
384 into an area described in Subsection (3)(b), or into a tobacco specialty shop, may not allow the
385 individual to purchase a cigarette, tobacco, or an electronic cigarette.
386 (6) A violation of Subsection (2) or (4) is a:
387 (a) class C misdemeanor on the first offense;
388 (b) class B misdemeanor on the second offense; and
389 (c) class A misdemeanor on the third and all subsequent offenses.
390 (7) An individual who violates Subsection (5) is guilty of providing tobacco to a minor
391 under Section 76-10-104.
392 (8) (a) [
393 political subdivision of the state or by a state agency that affects the sale, placement, or display
394 of cigarettes, tobacco, or electronic cigarettes that is not essentially identical to [
395
396 (b) Subsection (8)(a) does not apply to:
397 (i) the adoption or enforcement of a land use ordinance by a municipal or county
398 government[
399 (ii) an ordinance, regulation, or rule relating to the sale, placement of a flavored
400 electronic cigarette.
401 Section 6. Section 76-10-105.1 (Effective 07/01/20) is amended to read:
402 76-10-105.1 (Effective 07/01/20). Requirement of direct, face-to-face sale of
403 cigarettes, tobacco, and electronic cigarettes -- Minors not allowed in tobacco specialty
404 shop -- Penalties.
405 (1) As used in this section:
406 (a) "Cigarette" means the same as that term is defined in Section 59-14-102.
407 (b) (i) "Face-to-face exchange" means a transaction made in person between an
408 individual and a retailer or retailer's employee.
409 (ii) "Face-to-face exchange" does not include a sale through a:
410 (A) vending machine; or
411 (B) self-service display.
412 (c) (i) "Flavored electronic cigarette" means an electronic cigarette that has a taste or
413 smell that is distinguishable by an ordinary consumer either before or during use or
414 consumption of the electronic cigarette.
415 (ii) "Flavored electronic cigarette" includes an electronic cigarette that has a taste or
416 smell of any fruit, chocolate, vanilla, honey, candy, cocoa, dessert, alcoholic beverage, herb,
416a Ĥ→ mint, ←Ĥ
417 menthol, or spice.
418 (iii) "Flavored electronic cigarette" does not include an electronic cigarette that has a
419 taste or smell of only tobacco.
420 [
421 (i) sells a cigarette, tobacco, or an electronic cigarette to an individual for personal
422 consumption; or
423 (ii) operates a facility with a vending machine that sells a cigarette, tobacco, or an
424 electronic cigarette.
425 [
426 cigarette to which the public has access without the intervention of a retailer or retailer's
427 employee.
428 [
429 tobacco.
430 [
431 term is defined:
432 (i) as it relates to a municipality, in Section 10-8-41.6; and
433 (ii) as it relates to a county, in Section 17-50-333.
434 (2) Except as provided in Subsection (3), a retailer may sell a cigarette, tobacco, or an
435 electronic cigarette only in a face-to-face exchange.
436 (3) The face-to-face sale requirement in Subsection (2) does not apply to:
437 (a) a mail-order, telephone, or Internet sale made in compliance with Section
438 59-14-509;
439 (b) a sale from a vending machine or self-service display that is located in an area of a
440 retailer's facility:
441 (i) that is distinct and separate from the rest of the facility; and
442 (ii) where the retailer only allows an individual who complies with Subsection (4) to be
443 present; or
444 (c) a sale at a tobacco specialty shop.
445 (4) (a) An individual who is less than the age specified in Subsection (4)(b) may not
446 enter or be present at a tobacco specialty shop unless the individual is:
447 (i) accompanied by a parent or legal guardian;
448 (ii) present at the tobacco shop for a bona fide commercial purpose other than to
449 purchase a cigarette, tobacco, or an electronic cigarette; or
450 (iii) 18 years old or older and an active duty member of the United States Armed
451 Forces, as demonstrated by a valid, government-issued military identification card.
452 (b) For purposes of Subsection (4)(a), the individual is younger than:
453 (i) beginning July 1, 2020, and ending June 30, 2021, 20 years old; and
454 (ii) beginning July 1, 2021, 21 years old.
455 (5) A parent or legal guardian who accompanies, under Subsection (4)(a)(i), an
456 individual into an area described in Subsection (3)(b), or into a tobacco specialty shop, may not
457 allow the individual to purchase a cigarette, tobacco, or an electronic cigarette.
458 (6) A violation of Subsection (2) or (4) is a:
459 (a) class C misdemeanor on the first offense;
460 (b) class B misdemeanor on the second offense; and
461 (c) class A misdemeanor on the third and all subsequent offenses.
462 (7) An individual who violates Subsection (5) is guilty of providing tobacco to a minor
463 under Section 76-10-104.
464 (8) (a) An ordinance, regulation, or rule adopted by the governing body of a political
465 subdivision of the state or by a state agency that affects the sale, minimum age of sale,
466 placement, or display of cigarettes, tobacco, or electronic cigarettes that is not essentially
467 identical to this section and Section 76-10-102 is superseded.
468 (b) Subsection (8)(a) does not apply to:
469 (i) the adoption or enforcement of a land use ordinance by a municipal or county
470 government[
471 (ii) an ordinance, regulation, or rule relating to the sale, placement of a flavored
472 electronic cigarette.
473 Section 7. Section 76-10-111 is amended to read:
474 76-10-111. Prohibition of gift or free distribution of smokeless tobacco or
475 electronic cigarettes -- Exceptions.
476 (1) The Legislature finds that:
477 (a) smokeless tobacco, or chewing tobacco, is harmful to the health of individuals who
478 use those products because research indicates that they may cause mouth or oral cancers;
479 (b) the use of smokeless tobacco among juveniles in this state is increasing rapidly;
480 (c) the use of electronic cigarettes may lead to unhealthy behavior such as the use of
481 tobacco products; and
482 (d) it is necessary to restrict the gift of the products described in this Subsection (1) in
483 the interest of the health of the citizens of this state.
484 (2) (a) Except as provided in Subsection (3), it is unlawful for a manufacturer,
485 wholesaler, and retailer to:
486 (i) give or distribute without charge any smokeless tobacco, chewing tobacco, or
487 electronic cigarette in this state[
488 (ii) except as provided in Subsection (2)(b), sell, offer for sale, or furnish any
489 smokeless tobacco, chewing tobacco, or electronic cigarette at less than 90% of the cost of the
490 product to the manufacturer, wholesaler, or retailer; or
491 (iii) give, distribute, sell, offer for sale, or furnish any smokeless tobacco, chewing
492 tobacco, or electronic cigarette for free or at a lower price because the purchaser makes another
493 purchase.
494 (b) The price that a manufacturer, wholesaler, or retailer may charge under Subsection
495 (2)(a)(ii) does not include a discount for:
496 (i) a manufacturer coupon:
497 (A) that is surrendered to the tobacco retailer at the time of sale; and
498 (B) for which the manufacturer will reimburse the wholesaler or retailer for the full
499 amount of the discount described in the manufacturer coupon and provided to the purchaser;
500 (ii) a rebate that will be paid to the manufacturer, wholesaler, or retailer for the full
501 amount of the rebate provided to the purchaser; or
502 (iii) a promotional fund that will be paid to the manufacturer, wholesaler, or retailer for
503 the full amount of the promotional fund provided to the purchaser.
504 (c) Any person who violates this section is guilty of a class C misdemeanor for the first
505 offense, and is guilty of a class B misdemeanor for any subsequent offense.
506 (3) [
507 distributed to adults without charge at professional conventions where the general public is
508 excluded.
509 [
510
511
512 Section 8. Section 76-10-112 is amended to read:
513 76-10-112. Prohibition of distribution of cigarettes or other tobacco products --
514 Exceptions.
515 (1) (a) Except as provided in Subsection [
516 wholesaler, or retailer to:
517 (i) give or distribute cigarettes or other tobacco products in this state without charge[
518 (ii) except as provided in Subsection (2)(b), sell, offer for sale, or furnish any cigarettes
519 or other tobacco products at less than the cost of the product to the manufacturer, wholesaler,
520 or retailer; or
521 (iii) give, distribute, sell, offer for sale, or furnish any cigarettes or other tobacco
522 products for free or at a lower price because the purchaser makes another purchase.
523 (b) The price that a manufacturer, wholesaler, or retailer may charge under Subsection
524 (2)(a)(ii) does not include a discount for:
525 (i) a manufacturer coupon:
526 (A) that is surrendered to the tobacco retailer at the time of sale; and
527 (B) for which the manufacturer will reimburse the wholesaler or retailer for the full
528 amount of the discount described in the manufacturer coupon and provided to the purchaser;
529 (ii) a rebate that will be paid to the manufacturer, wholesaler, or retailer for the full
530 amount of the rebate provided to the purchaser; or
531 (iii) a promotional fund that will be paid to the manufacturer, wholesaler, or retailer for
532 the full amount of the promotional fund provided to the purchaser.
533 (2) Any person who violates this [
534 misdemeanor for the first offense and a class B misdemeanor for any subsequent offense.
535 [
536 charge at professional conventions where the general public is excluded.
537 [
538
539
540 Section 9. Coordinating H.B. 118 with S.B. 37 -- Technical amendments.
541 If this H.B. 118 and S.B. 37, Electronic Cigarette and Other Nicotine Product
542 Amendments, both pass and become law, it is the intent of the Legislature that the Office of
543 Legislative Research and General Counsel shall prepare the Utah Code database for publication
544 by amending:
545 (1) Subsection 10-8-41.6(1)(c) to read:
546 "(c) "Electronic cigarette product" means the same as that term is defined in Section
547 76-10-101."; and
548 (2) Subsection 17-50-333(1)(c) to read:
549 "(c) "Electronic cigarette product" means the same as that term is defined in Section
550 76-10-101."