1     
ELECTRONIC CIGARETTE AND OTHER NICOTINE

2     
PRODUCT AMENDMENTS

3     
2020 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Allen M. Christensen

6     
House Sponsor: Paul Ray

7     

8     LONG TITLE
9     Committee Note:
10          The Health and Human Services Interim Committee recommended this bill.
11               Legislative Vote:     12 voting for     0 voting against     5 absent
12     General Description:
13          This bill enacts and amends provisions relating to electronic cigarette products and
14     nicotine products.
15     Highlighted Provisions:
16          This bill:
17          ▸     defines terms;
18          ▸     imposes permitting requirements and processes for the sale of a nicotine product;
19          ▸     requires a tobacco retailer to provide itemized receipts and to maintain an itemized
20     transaction log for sales of a tobacco product, an electronic cigarette product, or a
21     nicotine product;
22          ▸     applies civil penalties to the improper sale of a nicotine product;
23          ▸     requires certain nicotine products to have a statement on the products' exterior
24     packages that the products contain nicotine;
25          ▸     imposes licensing and bonding requirements on a person that sells or distributes an
26     electronic cigarette product or a nicotine product;
27          ▸     imposes an excise tax on the sale in the state of an electronic cigarette substance, a

28     prefilled electronic cigarette, an alternative nicotine product, a nontherapeutic nicotine device
29     substance, and a prefilled nontherapeutic nicotine device;
30          ▸     provides for the remittance of the tax collected;
31          ▸     creates the Electronic Cigarette Substance and Nicotine Product Tax Restricted
32     Account;
33          ▸     addresses use of revenue from the taxation of an electronic cigarette substance, a
34     prefilled electronic cigarette, an alternative nicotine product, a nontherapeutic
35     nicotine device substance, and a prefilled nontherapeutic nicotine device;
36          ▸     provides criminal penalties for a sale or a purchase of an electronic cigarette product
37     or a nicotine product in violation of the law;
38          ▸     prohibits a manufacturer, a wholesaler, or a retailer from providing certain discounts
39     or giveaways for electronic cigarettes; and
40          ▸     makes technical and conforming changes.
41     Money Appropriated in this Bill:
42          None
43     Other Special Clauses:
44          This bill provides a special effective date.
45     Utah Code Sections Affected:
46     AMENDS:
47          10-8-41.6, as last amended by Laws of Utah 2018, Chapter 231
48          17-50-333, as last amended by Laws of Utah 2018, Chapter 231
49          26-57-101, as enacted by Laws of Utah 2015, Chapter 132
50          26-57-102, as enacted by Laws of Utah 2015, Chapter 132
51          26-62-101, as enacted by Laws of Utah 2018, Chapter 231
52          26-62-102, as renumbered and amended by Laws of Utah 2018, Chapter 231
53          26-62-201, as enacted by Laws of Utah 2018, Chapter 231
54          26-62-202, as last amended by Laws of Utah 2019, Chapter 157
55          26-62-301, as enacted by Laws of Utah 2018, Chapter 231
56          26-62-304 (Effective 07/01/20), as last amended by Laws of Utah 2019, Chapter 232
57          26-62-305 (Effective 07/01/20), as last amended by Laws of Utah 2019, Chapter 232
58          26-62-306, as renumbered and amended by Laws of Utah 2018, Chapter 231

59          26A-1-128, as enacted by Laws of Utah 2018, Chapter 231
60          53-3-229, as last amended by Laws of Utah 2010, Chapters 114 and 276
61          53-3-810, as last amended by Laws of Utah 2010, Chapters 114 and 276
62          53G-4-402, as last amended by Laws of Utah 2019, Chapters 83, 293, and 451
63          53G-8-209, as last amended by Laws of Utah 2019, Chapter 293
64          59-14-102, as last amended by Laws of Utah 2013, Chapter 148
65          59-14-302, as last amended by Laws of Utah 2014, Chapter 189
66          59-14-801, as enacted by Laws of Utah 2015, Chapter 132
67          59-14-802, as last amended by Laws of Utah 2019, Chapter 136
68          59-14-803, as last amended by Laws of Utah 2018, Chapter 231
69          76-8-311.3, as last amended by Laws of Utah 2010, Chapter 114
70          76-10-101, as last amended by Laws of Utah 2015, Chapters 66, 132 and last amended
71     by Coordination Clause, Laws of Utah 2015, Chapter 132
72          76-10-104 (Effective 07/01/20), as last amended by Laws of Utah 2019, Chapter 232
73          76-10-104.1 (Effective 07/01/20), as last amended by Laws of Utah 2019, Chapter 232
74          76-10-105 (Effective 07/01/20), as last amended by Laws of Utah 2019, Chapter 232
75          76-10-105.1 (Effective 07/01/20), as last amended by Laws of Utah 2019, Chapter 232
76          76-10-111, as last amended by Laws of Utah 2010, Chapter 114
77          77-39-101 (Effective 07/01/20), as last amended by Laws of Utah 2019, Chapter 232
78     ENACTS:
79          26-57-104, Utah Code Annotated 1953
80          26-62-206, Utah Code Annotated 1953
81          59-14-804, Utah Code Annotated 1953
82          59-14-805, Utah Code Annotated 1953
83          59-14-806, Utah Code Annotated 1953
84          59-14-807, Utah Code Annotated 1953
85     

86     Be it enacted by the Legislature of the state of Utah:
87          Section 1. Section 10-8-41.6 is amended to read:
88          10-8-41.6. Regulation of retail tobacco specialty business.
89          (1) As used in this section:

90          (a) "Community location" means:
91          (i) a public or private kindergarten, elementary, middle, junior high, or high school;
92          (ii) a licensed child-care facility or preschool;
93          (iii) a trade or technical school;
94          (iv) a church;
95          (v) a public library;
96          (vi) a public playground;
97          (vii) a public park;
98          (viii) a youth center or other space used primarily for youth oriented activities;
99          (ix) a public recreational facility;
100          (x) a public arcade; or
101          (xi) for a new license issued on or after July 1, 2018, a homeless shelter.
102          (b) "Department" means the Department of Health, created in Section 26-1-4.
103          (c) "Electronic cigarette product" means the same as that term is defined in Section
104     59-14-102.
105          (d) "Licensee" means a person licensed under this section to conduct business as a
106     retail tobacco specialty business.
107          [(c)] (e) "Local health department" means the same as that term is defined in Section
108     26A-1-102.
109          (f) "Nicotine product" means the same as that term is defined in Section 59-14-102.
110          [(d) "Permittee" means a person licensed under this section to conduct business as a
111     retail tobacco specialty business.]
112          [(e)] (g) "Retail tobacco specialty business" means a commercial establishment in
113     which:
114          (i) [the sale of tobacco products accounts] sales of tobacco products, electronic
115     cigarette products, and nicotine products account for more than 35% of the total quarterly gross
116     receipts for the establishment;
117          (ii) 20% or more of the public retail floor space is allocated to the offer, display, or
118     storage of tobacco products, electronic cigarette products, and nicotine products;
119          (iii) 20% or more of the total shelf space is allocated to the offer, display, or storage of
120     tobacco products, electronic cigarette products, and nicotine products; or

121          (iv) the retail space features a self-service display for tobacco products, electronic
122     cigarette products, and nicotine products.
123          [(f)] (h) "Self-service display" means the same as that term is defined in Section
124     76-10-105.1.
125          [(g)] (i) "Tobacco product" means:
126          (i) any cigar[,] or cigarette, [or electronic cigarette,] as those terms are defined in
127     Section 76-10-101;
128          (ii) a tobacco product, as that term is defined in Section 59-14-102, including:
129          (A) chewing tobacco; or
130          (B) any substitute for a tobacco product, including flavoring or additives to tobacco;
131     and
132          (iii) tobacco paraphernalia, as that term is defined in Section 76-10-104.1.
133          (2) The regulation of a retail tobacco specialty business is an exercise of the police
134     powers of the state, and through delegation, to other governmental entities.
135          (3) (a) A person may not operate a retail tobacco specialty business in a municipality
136     unless the person obtains a license from the municipality in which the retail tobacco specialty
137     business is located.
138          (b) A municipality may only issue a retail tobacco specialty business license to a
139     person if the person complies with the provisions of Subsections (4) and (5).
140          (4) (a) Except as provided in Subsection (7), a municipality may not issue a license for
141     a person to conduct business as a retail tobacco specialty business if the retail tobacco specialty
142     business is located within:
143          (i) 1,000 feet of a community location;
144          (ii) 600 feet of another retail tobacco specialty business; or
145          (iii) 600 feet from property used or zoned for:
146          (A) agriculture use; or
147          (B) residential use.
148          (b) For purposes of Subsection (4)(a), the proximity requirements shall be measured in
149     a straight line from the nearest entrance of the retail tobacco specialty business to the nearest
150     property boundary of a location described in Subsections (4)(a)(i) through (iii), without regard
151     to intervening structures or zoning districts.

152          (5) [(a) Except as provided in Subsection (5)(b), beginning July 1, 2018, a] A
153     municipality may not issue or renew a license for a person to conduct business as a retail
154     tobacco specialty business until the person provides the municipality with proof that the retail
155     tobacco specialty business has:
156          [(i)] (a) a valid permit for a retail tobacco specialty business issued under Title 26,
157     Chapter 62, Tobacco, Electronic Cigarette, and Nicotine Product Retail Permit, by the local
158     health department having jurisdiction over the area in which the retail tobacco specialty
159     business is located; and
160          [(ii)] (b) (i) a valid license issued by the State Tax Commission in accordance with
161     Section 59-14-201 or 59-14-301 to sell [tobacco products from the State Tax Commission.] a
162     tobacco product; or
163          (ii) a valid license issued by the State Tax Commission in accordance with Section
164     59-14-803 to sell an electronic cigarette product or a nicotine product.
165          [(b) A person that was licensed to conduct business as a retail tobacco specialty
166     business in a municipality before July 1, 2018, shall obtain a permit from a local health
167     department under Title 26, Chapter 62, Tobacco Retail Permit, on or before January 1, 2019.]
168          (6) (a) Nothing in this section:
169          (i) requires a municipality to issue a retail tobacco specialty business license; or
170          (ii) prohibits a municipality from adopting more restrictive requirements on a person
171     seeking a license or renewal of a license to conduct business as a retail tobacco specialty
172     business.
173          (b) A municipality may suspend or revoke a retail tobacco specialty business license
174     issued under this section:
175          (i) if a licensee engages in a pattern of unlawful activity under Title 76, Chapter 10,
176     Part 16, Pattern of Unlawful Activity Act;
177          (ii) if a licensee violates the regulations restricting the sale and distribution of
178     cigarettes and smokeless tobacco to protect children and adolescents issued by the United
179     States Food and Drug Administration, 21 C.F.R. Part 1140;
180          (iii) upon the recommendation of the department or a local health department under
181     Title 26, Chapter 62, Tobacco, Electronic Cigarette, and Nicotine Product Retail Permit; or
182          (iv) under any other provision of state law or local ordinance.

183          (7) (a) In accordance with Subsection (7)(b), a retail tobacco specialty business that has
184     a business license and is operating in a municipality in accordance with all applicable laws
185     except for the requirement in Subsection (4), on or before December 31, 2015, is exempt from
186     Subsection (4).
187          (b) A retail tobacco specialty business may maintain an exemption under Subsection
188     (7)(a) if:
189          (i) the retail tobacco specialty business license is renewed continuously without lapse
190     or permanent revocation;
191          (ii) the retail tobacco specialty business does not close for business or otherwise
192     suspend the sale of tobacco products, electronic cigarette products, or nicotine products for
193     more than 60 consecutive days;
194          (iii) the retail tobacco specialty business does not substantially change the business
195     premises or business operation; and
196          (iv) the retail tobacco specialty business maintains the right to operate under the terms
197     of other applicable laws, including:
198          (A) Title 26, Chapter 38, Utah Indoor Clean Air Act;
199          (B) zoning ordinances;
200          (C) building codes; and
201          (D) the requirements of a retail tobacco specialty business license issued before
202     December 31, 2015.
203          Section 2. Section 17-50-333 is amended to read:
204          17-50-333. Regulation of retail tobacco specialty business.
205          (1) As used in this section:
206          (a) "Community location" means:
207          (i) a public or private kindergarten, elementary, middle, junior high, or high school;
208          (ii) a licensed child-care facility or preschool;
209          (iii) a trade or technical school;
210          (iv) a church;
211          (v) a public library;
212          (vi) a public playground;
213          (vii) a public park;

214          (viii) a youth center or other space used primarily for youth oriented activities;
215          (ix) a public recreational facility;
216          (x) a public arcade; or
217          (xi) for a new license issued on or after July 1, 2018, a homeless shelter.
218          (b) "Department" means the Department of Health, created in Section 26-1-4.
219          (c) "Electronic cigarette product" means the same as that term is defined in Section
220     59-14-102.
221          [(c)] (d) "Licensee" means a person licensed under this section to conduct business as a
222     retail tobacco specialty business.
223          [(d)] (e) "Local health department" means the same as that term is defined in Section
224     26A-1-102.
225          (f) "Nicotine product" means the same as that term is defined in Section 59-14-102.
226          [(e)] (g) "Retail tobacco specialty business" means a commercial establishment in
227     which:
228          (i) [the sale of tobacco products accounts] sales of tobacco products, electronic
229     cigarette products, and nicotine products account for more than 35% of the total quarterly gross
230     receipts for the establishment;
231          (ii) 20% or more of the public retail floor space is allocated to the offer, display, or
232     storage of tobacco products, electronic cigarette products, and nicotine products;
233          (iii) 20% or more of the total shelf space is allocated to the offer, display, or storage of
234     tobacco products, electronic cigarette products, and nicotine products; or
235          (iv) the retail space features a self-service display for tobacco products, electronic
236     cigarette products, and nicotine products.
237          [(f)] (h) "Self-service display" means the same as that term is defined in Section
238     76-10-105.1.
239          [(g)] (i) "Tobacco product" means:
240          (i) any cigar[,] or cigarette, [or electronic cigarette] as those terms are defined in
241     Section 76-10-101;
242          (ii) a tobacco product as that term is defined in Section 59-14-102, including:
243          (A) chewing tobacco; or
244          (B) any substitute for a tobacco product, including flavoring or additives to tobacco;

245     and
246          (iii) tobacco paraphernalia as that term is defined in Section 76-10-104.1.
247          (2) The regulation of a retail tobacco specialty business is an exercise of the police
248     powers of the state, and through delegation, to other governmental entities.
249          (3) (a) A person may not operate a retail tobacco specialty business in a county unless
250     the person obtains a license from the county in which the retail tobacco specialty business is
251     located.
252          (b) A county may only issue a retail tobacco specialty business license to a person if
253     the person complies with the provisions of Subsections (4) and (5).
254          (4) (a) Except as provided in Subsection (7), a county may not issue a license for a
255     person to conduct business as a retail tobacco specialty business if the retail tobacco specialty
256     business is located within:
257          (i) 1,000 feet of a community location;
258          (ii) 600 feet of another retail tobacco specialty business; or
259          (iii) 600 feet from property used or zoned for:
260          (A) agriculture use; or
261          (B) residential use.
262          (b) For purposes of Subsection (4)(a), the proximity requirements shall be measured in
263     a straight line from the nearest entrance of the retail tobacco specialty business to the nearest
264     property boundary of a location described in Subsections (4)(a)(i) through (iii), without regard
265     to intervening structures or zoning districts.
266          (5) [(a) Except as provided in Subsection (5)(b), beginning July 1, 2018, a] A county
267     may not issue or renew a license for a person to conduct business as a retail tobacco specialty
268     business until the person provides the county with proof that the retail tobacco specialty
269     business has:
270          [(i)] (a) a valid permit for a retail tobacco specialty business issued under Title 26,
271     Chapter 62, Tobacco, Electronic Cigarette, and Nicotine Product Retail Permit, by the local
272     health department having jurisdiction over the area in which the retail tobacco specialty
273     business is located; and
274          [(ii)] (b) (i) a valid license issued by the State Tax Commission in accordance with
275     Section 59-14-201 or 59-14-301 to sell [tobacco products from the State Tax Commission.] a

276     tobacco product; or
277          (ii) a valid license issued by the State Tax Commission in accordance with Section
278     59-14-803 to sell an electronic cigarette product or a nicotine product.
279          [(b) A person that was licensed to conduct business as a retail tobacco specialty
280     business in a county before July 1, 2018, shall obtain a permit from a local health department
281     under Title 26, Chapter 62, Tobacco Retail Permit, on or before January 1, 2019.]
282          (6) (a) Nothing in this section:
283          (i) requires a county to issue a retail tobacco specialty business license; or
284          (ii) prohibits a county from adopting more restrictive requirements on a person seeking
285     a license or renewal of a license to conduct business as a retail tobacco specialty business.
286          (b) A county may suspend or revoke a retail tobacco specialty business license issued
287     under this section:
288          (i) if a licensee engages in a pattern of unlawful activity under Title 76, Chapter 10,
289     Part 16, Pattern of Unlawful Activity Act;
290          (ii) if a licensee violates the regulations restricting the sale and distribution of
291     cigarettes and smokeless tobacco to protect children and adolescents issued by the United
292     States Food and Drug Administration, 21 C.F.R. Part 1140;
293          (iii) upon the recommendation of the department or a local health department under
294     Title 26, Chapter 62, Tobacco, Electronic Cigarette, and Nicotine Product Retail Permit; or
295          (iv) under any other provision of state law or local ordinance.
296          (7) (a) In accordance with Subsection (7)(b), a retail tobacco specialty business that has
297     a business license and is operating in a county in accordance with all applicable laws except for
298     the requirement in Subsection (4), on or before December 31, 2015, is exempt from Subsection
299     (4).
300          (b) A retail tobacco specialty business may maintain an exemption under Subsection
301     (7)(a) if:
302          (i) the retail tobacco specialty business license is renewed continuously without lapse
303     or permanent revocation;
304          (ii) the retail tobacco specialty business does not close for business or otherwise
305     suspend the sale of tobacco products, electronic cigarette products, or nicotine products for
306     more than 60 consecutive days;

307          (iii) the retail tobacco specialty business does not substantially change the business
308     premises or business operation; and
309          (iv) the retail tobacco specialty business maintains the right to operate under the terms
310     of other applicable laws, including:
311          (A) Title 26, Chapter 38, Utah Indoor Clean Air Act;
312          (B) zoning ordinances;
313          (C) building codes; and
314          (D) the requirements of a retail tobacco specialty business license issued before
315     December 31, 2015.
316          Section 3. Section 26-57-101 is amended to read:
317     
CHAPTER 57. ELECTRONIC CIGARETTE AND NICOTINE PRODUCT

318     
REGULATION ACT

319          26-57-101. Title.
320          This chapter is known as the "Electronic Cigarette and Nicotine Product Regulation
321     Act."
322          Section 4. Section 26-57-102 is amended to read:
323          26-57-102. Definitions.
324          As used in this chapter:
325          (1) "Cigarette" means the same as that term is defined in Section 59-14-102.
326          (2) "Electronic cigarette" means the same as that term is defined in Section
327     [59-14-802] 59-14-102.
328          (3) "Electronic cigarette product" means an electronic cigarette or an electronic
329     cigarette substance.
330          (4) "Electronic cigarette substance" means the same as that term is defined in Section
331     [59-14-802] 59-14-102.
332          (5) "Local health department" means the same as that term is defined in Section
333     26A-1-102.
334          [(5)] (6) "Manufacture" includes:
335          (a) to cast, construct, or make electronic cigarettes; or
336          (b) to blend, make, process, or prepare an electronic cigarette substance.
337          [(6)] (7) "Manufacturer sealed electronic cigarette substance" means an electronic

338     cigarette substance that is sold in a container that:
339          (a) is [pre-filled] prefilled by the electronic cigarette substance manufacturer; and
340          (b) the electronic cigarette manufacturer does not intend for a consumer to open.
341          (8) "Nicotine" means the same as that term is defined in Section 59-14-102.
342          (9) "Nicotine product" means the same as that term is defined in Section 59-14-102.
343          Section 5. Section 26-57-104 is enacted to read:
344          26-57-104. Labeling of nicotine products containing nicotine.
345          (1) Any nicotine product shall contain the statement described in Subsection (2) if the
346     nicotine product:
347          (a) (i) is not a tobacco product as defined in 21 U.S.C. Sec. 321 and related federal
348     regulations; or
349          (ii) is not otherwise required under federal or state law to contain a nicotine warning;
350     and
351          (b) contains nicotine.
352          (2) A statement shall appear on the exterior packaging of a nicotine product described
353     in Subsection (1) as follows:
354          "This product contains nicotine."
355          Section 6. Section 26-62-101 is amended to read:
356     
CHAPTER 62. TOBACCO, ELECTRONIC CIGARETTE, AND NICOTINE

357     
PRODUCT RETAIL PERMIT

358          26-62-101. Title.
359          This chapter is known as "Tobacco, Electronic Cigarette, and Nicotine Product Retail
360     Permit."
361          Section 7. Section 26-62-102 is amended to read:
362          26-62-102. Definitions.
363          As used in this chapter:
364          (1) "Community location" means the same as that term is defined:
365          (a) as it relates to a municipality, in Section 10-8-41.6; and
366          (b) as it relates to a county, in Section 17-50-333.
367          (2) "Electronic cigarette product" means the same as that term is defined in Section
368     59-14-102.

369          [(2)] (3) "Employee" means an employee of a tobacco retailer.
370          [(3)] (4) "Enforcing agency" means the state Department of Health, or any local health
371     department enforcing the provisions of this chapter.
372          [(4)] (5) "General tobacco retailer" means a tobacco retailer that is not a retail tobacco
373     specialty business.
374          [(5)] (6) "Local health department" means the same as that term is defined in Section
375     26A-1-102.
376          (7) "Nicotine product" means the same as that term is defined in Section 59-14-102.
377          [(6)] (8) "Permit" means a tobacco retail permit issued under this chapter.
378          [(7)] (9) "Retail tobacco specialty business" means the same as that term is defined:
379          (a) as it relates to a municipality, in Section 10-8-41.6; and
380          (b) as it relates to a county, in Section 17-50-333.
381          [(8)] (10) "Tax commission license" means a license issued by the State Tax
382     Commission under:
383          (a) Section 59-14-201 to sell [cigarettes] a cigarette at retail;
384          (b) Section 59-14-301 to sell [tobacco products] a tobacco product at retail; or
385          (c) Section 59-14-803 to sell an electronic cigarette product or a nicotine product.
386          [(9)] (11) "Tobacco product" means:
387          (a) a cigar[,] or cigarette, [or electronic cigarette] as those terms are defined in Section
388     76-10-101;
389          (b) a tobacco product as that term is defined in Section 59-14-102, including:
390          (i) chewing tobacco; or
391          (ii) any substitute for a tobacco product, including flavoring or additives to tobacco; or
392          (c) tobacco paraphernalia as that term is defined in Section 76-10-104.1.
393          [(10)] (12) "Tobacco retailer" means a person that is required to obtain a tax
394     commission license.
395          Section 8. Section 26-62-201 is amended to read:
396          26-62-201. Permitting requirement.
397          (1) (a) [Beginning July 1, 2018, a] A tobacco retailer shall hold a valid tobacco retail
398     permit issued in accordance with this chapter by the local health department with jurisdiction
399     over the physical location where the tobacco retailer operates.

400          (b) A tobacco retailer without a valid permit may not:
401          (i) place [tobacco products] a tobacco product, an electronic cigarette product, or a
402     nicotine product in public view;
403          (ii) display any advertisement related to [tobacco products] a tobacco product, an
404     electronic cigarette product, or a nicotine product that promotes the sale, distribution, or use of
405     those products; or
406          (iii) sell, offer for sale, or offer to exchange for any form of consideration, tobacco [or
407     tobacco products], a tobacco product, an electronic cigarette product, or a nicotine product.
408          (2) A local health department may issue a permit under this chapter for a tobacco
409     retailer in the classification of:
410          (a) a general tobacco retailer; or
411          (b) a retail tobacco specialty business.
412          (3) A permit under this chapter is:
413          (a) valid only for one physical location, including a vending machine;
414          (b) valid only at one fixed business address; and
415          (c) if multiple tobacco retailers are at the same address, separately required for each
416     tobacco retailer.
417          [(4) Notwithstanding the requirement in Subsection (1), a person that holds a tax
418     commission license that was valid on July 1, 2018:]
419          [(a) may operate without a permit under this chapter until December 31, 2018; and]
420          [(b) shall obtain a permit from a local health department under this chapter before
421     January 1, 2019.]
422          Section 9. Section 26-62-202 is amended to read:
423          26-62-202. Permit application.
424          (1) A local health department shall issue a permit under this chapter for a tobacco
425     retailer if the local health department determines that the applicant:
426          (a) accurately provided all information required under Subsection (3) and, if applicable,
427     Subsection (4); and
428          (b) meets all requirements for a permit under this chapter.
429          (2) An applicant for a permit shall:
430          (a) submit an application described in Subsection (3) to the local health department

431     with jurisdiction over the area where the tobacco retailer is located; and
432          (b) pay all applicable fees described in Section 26-62-203.
433          (3) The application for a permit shall include:
434          (a) the name, address, and telephone number of each proprietor;
435          (b) the name and mailing address of each proprietor authorized to receive
436     permit-related communication and notices;
437          (c) the business name, address, and telephone number of the single, fixed location for
438     which a permit is sought;
439          (d) evidence that the location for which a permit is sought has a valid tax commission
440     license;
441          (e) information regarding whether, in the past 24 months, any proprietor of the tobacco
442     retailer has been determined to have violated, or has been a proprietor at a location that has
443     been determined to have violated:
444          (i) a provision of this chapter;
445          (ii) Chapter 38, Utah Indoor Clean Air Act;
446          (iii) Title 76, Chapter 10, Part 1, Cigarettes and Tobacco and Psychotoxic Chemical
447     Solvents;
448          (iv) Title 76, Chapter 10, Part 16, Pattern of Unlawful Activity Act;
449          (v) regulations restricting the sale and distribution of cigarettes and smokeless tobacco
450     issued by the United States Food and Drug Administration, 21 C.F.R. Part 1140; or
451          (vi) any other provision of state law or local ordinance regarding the sale, marketing, or
452     distribution of [tobacco products] a tobacco product, an electronic cigarette product, or a
453     nicotine product; and
454          (f) the dates of all violations disclosed under this Subsection (3).
455          (4) (a) In addition to the information described in Subsection (3), an applicant for a
456     retail tobacco specialty business permit shall include evidence showing whether the business is
457     located within:
458          (i) 1,000 feet of a community location;
459          (ii) 600 feet of another retail tobacco specialty business; or
460          (iii) 600 feet of property used or zoned for agricultural or residential use.
461          (b) For purposes of Subsection (4)(a), the proximity requirements shall be measured in

462     a straight line from the nearest entrance of the retail tobacco specialty business to the nearest
463     property boundary of a location described in Subsections (4)(a)(i) through (iii), without regard
464     to intervening structures or zoning districts.
465          (5) The department or a local health department may not deny a permit to a retail
466     tobacco specialty business under Subsection (4) if the retail tobacco specialty business obtained
467     a license to operate the retail tobacco specialty business before December 31, 2015, from:
468          (a) a municipality under Section 10-8-41.6; or
469          (b) a county under Section 17-50-333.
470          (6) (a) The department shall establish by rule made in accordance with Title 63G,
471     Chapter 3, Utah Administrative Rulemaking Act, a permit process for local health departments
472     in accordance with this chapter.
473          (b) The permit process established by the department under Subsection (6)(a) may not
474     require any information in an application that is not required by this section.
475          Section 10. Section 26-62-206 is enacted to read:
476          26-62-206. Requirements for the sale of tobacco product, electronic cigarette
477     product, or nicotine product.
478          (1) A tobacco retailer shall:
479          (a) provide the customer with an itemized receipt for each sale of a tobacco product, an
480     electronic cigarette product, or a nicotine product that separately identifies:
481          (i) the name of the tobacco product, the electronic cigarette product, or the nicotine
482     product;
483          (ii) the amount charged for each tobacco product, electronic cigarette product, or
484     nicotine product; and
485          (iii) the date and time of the sale; and
486          (b) maintain an itemized transaction log that separately identifies, for each sale of a
487     tobacco product, an electronic cigarette product, or a nicotine product:
488          (i) the name of the tobacco product, the electronic cigarette product, or the nicotine
489     product;
490          (ii) the amount charged for each tobacco product, electronic cigarette product, or
491     nicotine product; and
492          (iii) the date and time of the sale.

493          (2) The itemized transaction log described in Subsection (1)(b) shall be:
494          (a) maintained for at least one year from the date of each transaction in the itemized
495     transaction log; and
496          (b) made available to an enforcing agency or a peace officer at the request of the
497     enforcing agency or the peace officer.
498          Section 11. Section 26-62-301 is amended to read:
499          26-62-301. Permit violation.
500          A person is in violation of the permit issued under this chapter if the person violates:
501          (1) a provision of this chapter;
502          (2) a provision of licensing laws under Section 10-8-41.6 or Section 17-50-333;
503          (3) a provision of Title 76, Chapter 10, Part 1, Cigarettes and Tobacco and Psychotoxic
504     Chemical Solvents;
505          (4) a provision of Title 76, Chapter 10, Part 16, Pattern of Unlawful Activity Act;
506          (5) a regulation restricting the sale and distribution of cigarettes and smokeless tobacco
507     issued by the United States Food and Drug Administration under 21 C.F.R. Part 1140; or
508          (6) any other provision of state law or local ordinance regarding the sale, marketing, or
509     distribution of [tobacco products] a tobacco product, an electronic cigarette product, or a
510     nicotine product.
511          Section 12. Section 26-62-304 (Effective 07/01/20) is amended to read:
512          26-62-304 (Effective 07/01/20). Hearing -- Evidence of criminal conviction.
513          (1) At a civil hearing conducted under Section 26-62-302, evidence of the final
514     criminal conviction of a tobacco retailer or employee for violation of Section 76-10-104 at the
515     same location and within the same time period as the location and time period alleged in the
516     civil hearing for violation of this chapter for sale of [tobacco products] a tobacco product, an
517     electronic cigarette product, or a nicotine product to an individual under the following ages is
518     prima facie evidence of a violation of this chapter:
519          (a) beginning July 1, 2020, and ending June 30, 2021, under 20 years old; and
520          (b) beginning July 1, 2021, under 21 years old.
521          (2) If the tobacco retailer is convicted of violating Section 76-10-104, the enforcing
522     agency:
523          (a) may not assess an additional monetary penalty under this chapter for the same

524     offense for which the conviction was obtained; and
525          (b) may revoke or suspend a permit in accordance with Section 26-62-305.
526          Section 13. Section 26-62-305 (Effective 07/01/20) is amended to read:
527          26-62-305 (Effective 07/01/20). Penalties.
528          (1) (a) If, following an inspection by an enforcing agency, or an investigation or
529     issuance of a citation or information under Section 77-39-101, an enforcing agency determines
530     that a person has violated the terms of a permit issued under this chapter, the enforcing agency
531     may impose the penalties described in this section.
532          (b) If multiple violations are found in a single inspection or investigation, only one
533     violation shall count toward the penalties described in this section.
534          (2) (a) The administrative penalty for a first violation at a retail location is a penalty of
535     not more than $500.
536          (b) The administrative penalty for a second violation at the same retail location that
537     occurs within one year of a previous violation is a penalty of not more than $750.
538          (c) The administrative penalty for a third or subsequent violation at the same retail
539     location that occurs within two years after two or more previous violations is:
540          (i) a suspension of the retail tobacco business permit for 30 consecutive business days
541     within 60 days after the day on which the third or subsequent violation occurs; or
542          (ii) a penalty of not more than $1,000.
543          (3) The department or a local health department may:
544          (a) revoke a permit if a fourth violation occurs within two years of three previous
545     violations;
546          (b) in addition to a monetary penalty imposed under Subsection (2), suspend the permit
547     if the violation is due to a sale of [tobacco products] a tobacco product, an electronic cigarette
548     product, or a nicotine product to an individual under:
549          (i) beginning July 1, 2020, and ending June 30, 2021, 20 years old; and
550          (ii) beginning July 1, 2021, 21 years old; and
551          (c) if applicable, recommend to a municipality or county that a retail tobacco specialty
552     business license issued under Section 10-8-41.6 or 17-50-333 be suspended or revoked.
553          (4) (a) Except when a transfer described in Subsection (5) occurs, a local health
554     department may not issue a permit to:

555          (i) a tobacco retailer for whom a permit is suspended or revoked under Subsection (3);
556     or
557          (ii) a tobacco retailer that has the same proprietor, director, corporate officer, partner,
558     or other holder of significant interest as another tobacco retailer for whom a permit is
559     suspended or revoked under Subsection (3).
560          (b) A person whose permit:
561          (i) is suspended under this section may not apply for a new permit for any other
562     tobacco retailer for a period of 12 months after the day on which an enforcing agency suspends
563     the permit; and
564          (ii) is revoked may not apply for a new permit for any tobacco retailer for a period of
565     24 months after the day on which an enforcing agency revokes the permit.
566          (5) Violations of this chapter, Section 10-8-41.6, or Section 17-50-333 that occur at a
567     tobacco retailer location shall stay on the record for that tobacco retailer location unless:
568          (a) the tobacco retailer is transferred to a new proprietor; and
569          (b) the new proprietor provides documentation to the local health department that the
570     new proprietor is acquiring the tobacco retailer in an arm's length transaction from the previous
571     proprietor.
572          Section 14. Section 26-62-306 is amended to read:
573          26-62-306. Recognition of tobacco retailer training program.
574          (1) In determining the amount of the monetary penalty to be imposed for an employee's
575     violation of this chapter, a hearing officer shall reduce the civil penalty by at least 50% if the
576     hearing officer determines that:
577          (a) the tobacco retailer has implemented a documented employee training program; and
578          (b) the employees have completed that training program within 30 days after the day on
579     which each employee commences the duties of selling [tobacco products] a tobacco product, an
580     electronic cigarette product, or a nicotine product.
581          (2) (a) For the first offense at a location, if the hearing officer determines under
582     Subsection (1) that the tobacco retailer licensee has not implemented a documented training
583     program with a written curriculum for employees at that location regarding compliance with
584     this chapter, the hearing officer may suspend all or a portion of the penalty if:
585          (i) the tobacco retailer agrees to initiate a training program for employees at that

586     location; and
587          (ii) the training program begins within 30 days after the hearing officer makes a
588     determination under this Subsection (2)(a).
589          (b) If the hearing officer determines at a subsequent hearing that the tobacco retailer
590     has not implemented the training program within the time period required under Subsection
591     (2)(a)(ii), the hearing officer shall promptly impose the suspended monetary penalty, unless the
592     tobacco retailer demonstrates good cause for an extension of time for implementation of the
593     training program.
594          Section 15. Section 26A-1-128 is amended to read:
595          26A-1-128. Tobacco, electronic cigarette, and nicotine product permits --
596     Enforcement.
597          A local health department:
598          (1) shall enforce the requirements of Title 26, Chapter 62, Tobacco, Electronic
599     Cigarette, and Nicotine Product Retail Permit;
600          (2) may enforce licensing requirements for entities that hold a business license to sell
601     [tobacco products] a tobacco product, an electronic cigarette product, or a nicotine product
602     under Section 10-8-41.6 or Section 17-50-333; and
603          (3) may recommend to a municipality or county that the business license of a retail
604     tobacco specialty business be suspended or revoked for a violation of Section 10-8-41.6,
605     Section 17-50-333, or Title 26, Chapter 62, Tobacco, Electronic Cigarette, and Nicotine
606     Product Retail Permit.
607          Section 16. Section 53-3-229 is amended to read:
608          53-3-229. Prohibited uses of license certificate -- Penalty.
609          (1) It is a class C misdemeanor for [a person] an individual to:
610          (a) lend or knowingly permit the use of a license certificate issued to the [person]
611     individual, by [a person] an individual not entitled to it;
612          (b) display or to represent as the [person's] individual's own a license certificate not
613     issued to the [person] individual;
614          (c) refuse to surrender to the division or a peace officer upon demand any license
615     certificate issued by the division;
616          (d) use a false name or give a false address in any application for a license or any

617     renewal or duplicate of the license certificate, or to knowingly make a false statement, or to
618     knowingly conceal a material fact or otherwise commit a fraud in the application;
619          (e) display a canceled, denied, revoked, suspended, or disqualified driver license
620     certificate as a valid driver license certificate;
621          (f) knowingly acquire, use, display, or transfer an item that purports to be an authentic
622     driver license certificate issued by a governmental entity if the item is not an authentic driver
623     license certificate issued by that governmental entity; or
624          (g) alter any information on an authentic driver license certificate so that it no longer
625     represents the information originally displayed.
626          (2) The provisions of Subsection (1)(e) do not prohibit the use of [a person's] an
627     individual's driver license certificate as a means of personal identification.
628          (3) It is a class A misdemeanor to knowingly:
629          (a) issue a driver license certificate with false or fraudulent information;
630          (b) issue a driver license certificate to a person younger than 21 years of age if the
631     driver license certificate is not distinguished as required for [a person] an individual younger
632     than 21 years of age under Section 53-3-207; or
633          (c) acquire, use, display, or transfer a false or altered driver license certificate to
634     procure:
635          (i) a cigarette;
636          (ii) an electronic cigarette product, as defined in Section 76-10-101;
637          (iii) tobacco; or
638          (iv) a tobacco product.
639          (4) [A person] An individual may not use, display, or transfer a false or altered driver
640     license certificate to procure alcoholic beverages, gain admittance to a place where alcoholic
641     beverages are sold or consumed, or obtain employment that may not be obtained by a minor in
642     violation of Section 32B-1-403.
643          (5) It is a third degree felony if [a person's] an individual's acquisition, use, display, or
644     transfer of a false or altered driver license certificate:
645          (a) aids or furthers the [person's] individual's efforts to fraudulently obtain goods or
646     services; or
647          (b) aids or furthers the [person's] individual's efforts to commit a violent felony.

648          Section 17. Section 53-3-810 is amended to read:
649          53-3-810. Prohibited uses of identification card -- Penalties.
650          (1) It is a class C misdemeanor to:
651          (a) lend or knowingly permit the use of an identification card issued to the [person]
652     individual, by [a person] an individual not entitled to it;
653          (b) display or to represent as the [person's] individual's own an identification card not
654     issued to the [person] individual;
655          (c) refuse to surrender to the division or a peace officer upon demand any identification
656     card issued by the division;
657          (d) use a false name or give a false address in any application for an identification card
658     or any renewal or duplicate of the identification card, or to knowingly make a false statement,
659     or to knowingly conceal a material fact in the application;
660          (e) display a revoked identification card as a valid identification card;
661          (f) knowingly acquire, use, display, or transfer an item that purports to be an authentic
662     identification card issued by a governmental entity if the item is not an authentic identification
663     card issued by that governmental entity; or
664          (g) alter any information contained on an authentic identification card so that it no
665     longer represents the information originally displayed.
666          (2) It is a class A misdemeanor to knowingly:
667          (a) issue an identification card with false or fraudulent information;
668          (b) issue an identification card to any [person] individual younger than 21 years of age
669     if the identification card is not distinguished as required for [a person] an individual younger
670     than 21 years of age under Section 53-3-806; or
671          (c) acquire, use, display, or transfer a false or altered identification card to procure:
672          (i) a cigarette;
673          (ii) an electronic cigarette product, as defined in Section 76-10-101;
674          (iii) tobacco; or
675          (iv) a tobacco product.
676          (3) [A person] An individual may not knowingly use, display, or transfer a false or
677     altered identification card to procure alcoholic beverages, gain admittance to a place where
678     alcoholic beverages are sold or consumed, or obtain employment that may not be obtained by a

679     minor in violation of Section 32B-1-403.
680          (4) It is a third degree felony if [a person's] an individual's acquisition, use, display, or
681     transfer of a false or altered identification card:
682          (a) aids or furthers the [person's] individual's efforts to fraudulently obtain goods or
683     services; or
684          (b) aids or furthers the [person's] individual's efforts to commit a violent felony.
685          Section 18. Section 53G-4-402 is amended to read:
686          53G-4-402. Powers and duties generally.
687          (1) A local school board shall:
688          (a) implement the core standards for Utah public schools using instructional materials
689     that best correlate to the core standards for Utah public schools and graduation requirements;
690          (b) administer tests, required by the state board, which measure the progress of each
691     student, and coordinate with the state superintendent and state board to assess results and create
692     plans to improve the student's progress, which shall be submitted to the state board for
693     approval;
694          (c) use progress-based assessments as part of a plan to identify schools, teachers, and
695     students that need remediation and determine the type and amount of federal, state, and local
696     resources to implement remediation;
697          (d) develop early warning systems for students or classes failing to make progress;
698          (e) work with the state board to establish a library of documented best practices,
699     consistent with state and federal regulations, for use by the local districts;
700          (f) implement training programs for school administrators, including basic
701     management training, best practices in instructional methods, budget training, staff
702     management, managing for learning results and continuous improvement, and how to help
703     every child achieve optimal learning in basic academic subjects; and
704          (g) ensure that the local school board meets the data collection and reporting standards
705     described in Section 53E-3-501.
706          (2) Local school boards shall spend Minimum School Program funds for programs and
707     activities for which the state board has established minimum standards or rules under Section
708     53E-3-501.
709          (3) (a) A local school board may purchase, sell, and make improvements on school

710     sites, buildings, and equipment and construct, erect, and furnish school buildings.
711          (b) School sites or buildings may only be conveyed or sold on local school board
712     resolution affirmed by at least two-thirds of the members.
713          (4) (a) A local school board may participate in the joint construction or operation of a
714     school attended by children residing within the district and children residing in other districts
715     either within or outside the state.
716          (b) Any agreement for the joint operation or construction of a school shall:
717          (i) be signed by the president of the local school board of each participating district;
718          (ii) include a mutually agreed upon pro rata cost; and
719          (iii) be filed with the state board.
720          (5) A local school board may establish, locate, and maintain elementary, secondary,
721     and applied technology schools.
722          (6) Except as provided in Section 53E-3-905, a local school board may enroll children
723     in school who are at least five years of age before September 2 of the year in which admission
724     is sought.
725          (7) A local school board may establish and support school libraries.
726          (8) A local school board may collect damages for the loss, injury, or destruction of
727     school property.
728          (9) A local school board may authorize guidance and counseling services for children
729     and their parents before, during, or following enrollment of the children in schools.
730          (10) (a) A local school board shall administer and implement federal educational
731     programs in accordance with Title 53E, Chapter 3, Part 8, Implementing Federal or National
732     Education Programs.
733          (b) Federal funds are not considered funds within the school district budget under
734     Chapter 7, Part 3, Budgets.
735          (11) (a) A local school board may organize school safety patrols and adopt policies
736     under which the patrols promote student safety.
737          (b) A student appointed to a safety patrol shall be at least 10 years old and have written
738     parental consent for the appointment.
739          (c) Safety patrol members may not direct vehicular traffic or be stationed in a portion
740     of a highway intended for vehicular traffic use.

741          (d) Liability may not attach to a school district, its employees, officers, or agents or to a
742     safety patrol member, a parent of a safety patrol member, or an authorized volunteer assisting
743     the program by virtue of the organization, maintenance, or operation of a school safety patrol.
744          (12) (a) A local school board may on its own behalf, or on behalf of an educational
745     institution for which the local school board is the direct governing body, accept private grants,
746     loans, gifts, endowments, devises, or bequests that are made for educational purposes.
747          (b) These contributions are not subject to appropriation by the Legislature.
748          (13) (a) A local school board may appoint and fix the compensation of a compliance
749     officer to issue citations for violations of Subsection 76-10-105(2)(b).
750          (b) A person may not be appointed to serve as a compliance officer without the
751     person's consent.
752          (c) A teacher or student may not be appointed as a compliance officer.
753          (14) A local school board shall adopt bylaws and policies for the local school board's
754     own procedures.
755          (15) (a) A local school board shall make and enforce policies necessary for the control
756     and management of the district schools.
757          (b) Local school board policies shall be in writing, filed, and referenced for public
758     access.
759          (16) A local school board may hold school on legal holidays other than Sundays.
760          (17) (a) A local school board shall establish for each school year a school traffic safety
761     committee to implement this Subsection (17).
762          (b) The committee shall be composed of one representative of:
763          (i) the schools within the district;
764          (ii) the Parent Teachers' Association of the schools within the district;
765          (iii) the municipality or county;
766          (iv) state or local law enforcement; and
767          (v) state or local traffic safety engineering.
768          (c) The committee shall:
769          (i) receive suggestions from school community councils, parents, teachers, and others
770     and recommend school traffic safety improvements, boundary changes to enhance safety, and
771     school traffic safety program measures;

772          (ii) review and submit annually to the Department of Transportation and affected
773     municipalities and counties a child access routing plan for each elementary, middle, and junior
774     high school within the district;
775          (iii) consult the Utah Safety Council and the Division of Family Health Services and
776     provide training to all school children in kindergarten through grade 6, within the district, on
777     school crossing safety and use; and
778          (iv) help ensure the district's compliance with rules made by the Department of
779     Transportation under Section 41-6a-303.
780          (d) The committee may establish subcommittees as needed to assist in accomplishing
781     its duties under Subsection (17)(c).
782          (18) (a) A local school board shall adopt and implement a comprehensive emergency
783     response plan to prevent and combat violence in the local school board's public schools, on
784     school grounds, on its school vehicles, and in connection with school-related activities or
785     events.
786          (b) The plan shall:
787          (i) include prevention, intervention, and response components;
788          (ii) be consistent with the student conduct and discipline policies required for school
789     districts under Chapter 11, Part 2, Miscellaneous Requirements;
790          (iii) require professional learning for all district and school building staff on what their
791     roles are in the emergency response plan;
792          (iv) provide for coordination with local law enforcement and other public safety
793     representatives in preventing, intervening, and responding to violence in the areas and activities
794     referred to in Subsection (18)(a); and
795          (v) include procedures to notify a student, to the extent practicable, who is off campus
796     at the time of a school violence emergency because the student is:
797          (A) participating in a school-related activity; or
798          (B) excused from school for a period of time during the regular school day to
799     participate in religious instruction at the request of the student's parent.
800          (c) The state board, through the state superintendent, shall develop comprehensive
801     emergency response plan models that local school boards may use, where appropriate, to
802     comply with Subsection (18)(a).

803          (d) A local school board shall, by July 1 of each year, certify to the state board that its
804     plan has been practiced at the school level and presented to and reviewed by its teachers,
805     administrators, students, and their parents and local law enforcement and public safety
806     representatives.
807          (19) (a) A local school board may adopt an emergency response plan for the treatment
808     of sports-related injuries that occur during school sports practices and events.
809          (b) The plan may be implemented by each secondary school in the district that has a
810     sports program for students.
811          (c) The plan may:
812          (i) include emergency personnel, emergency communication, and emergency
813     equipment components;
814          (ii) require professional learning on the emergency response plan for school personnel
815     who are involved in sports programs in the district's secondary schools; and
816          (iii) provide for coordination with individuals and agency representatives who:
817          (A) are not employees of the school district; and
818          (B) would be involved in providing emergency services to students injured while
819     participating in sports events.
820          (d) The local school board, in collaboration with the schools referred to in Subsection
821     (19)(b), may review the plan each year and make revisions when required to improve or
822     enhance the plan.
823          (e) The state board, through the state superintendent, shall provide local school boards
824     with an emergency plan response model that local school boards may use to comply with the
825     requirements of this Subsection (19).
826          (20) A local school board shall do all other things necessary for the maintenance,
827     prosperity, and success of the schools and the promotion of education.
828          (21) (a) Before closing a school or changing the boundaries of a school, a local school
829     board shall:
830          (i) at least 120 days before approving the school closure or school boundary change,
831     provide notice to the following that the local school board is considering the closure or
832     boundary change:
833          (A) parents of students enrolled in the school, using the same form of communication

834     the local school board regularly uses to communicate with parents;
835          (B) parents of students enrolled in other schools within the school district that may be
836     affected by the closure or boundary change, using the same form of communication the local
837     school board regularly uses to communicate with parents; and
838          (C) the governing council and the mayor of the municipality in which the school is
839     located;
840          (ii) provide an opportunity for public comment on the proposed school closure or
841     school boundary change during at least two public local school board meetings; and
842          (iii) hold a public hearing as defined in Section 10-9a-103 and provide public notice of
843     the public hearing as described in Subsection (21)(b).
844          (b) The notice of a public hearing required under Subsection (21)(a)(iii) shall:
845          (i) indicate the:
846          (A) school or schools under consideration for closure or boundary change; and
847          (B) the date, time, and location of the public hearing;
848          (ii) at least 10 days before the public hearing, be:
849          (A) published:
850          (I) in a newspaper of general circulation in the area; and
851          (II) on the Utah Public Notice Website created in Section 63F-1-701; and
852          (B) posted in at least three public locations within the municipality in which the school
853     is located on the school district's official website, and prominently at the school; and
854          (iii) at least 30 days before the public hearing described in Subsection (21)(a)(iii), be
855     provided as described in Subsections (21)(a)(i)(A), (B), and (C).
856          (22) A local school board may implement a facility energy efficiency program
857     established under Title 11, Chapter 44, Performance Efficiency Act.
858          (23) A local school board may establish or partner with a certified youth court
859     program, in accordance with Section 78A-6-1203, or establish or partner with a comparable
860     restorative justice program, in coordination with schools in that district. A school may refer a
861     student to youth court or a comparable restorative justice program in accordance with Section
862     53G-8-211.
863          Section 19. Section 53G-8-209 is amended to read:
864          53G-8-209. Extracurricular activities -- Prohibited conduct -- Reporting of

865     violations -- Limitation of liability.
866          (1) The Legislature recognizes that:
867          (a) participation in student government and extracurricular activities may confer
868     important educational and lifetime benefits upon students, and encourages school districts and
869     charter schools to provide a variety of opportunities for all students to participate in such
870     activities in meaningful ways;
871          (b) there is no constitutional right to participate in these types of activities, and does
872     not through this section or any other provision of law create such a right;
873          (c) students who participate in student government and extracurricular activities,
874     particularly competitive athletics, and the adult coaches, advisors, and assistants who direct
875     those activities, become role models for others in the school and community;
876          (d) these individuals often play major roles in establishing standards of acceptable
877     behavior in the school and community, and establishing and maintaining the reputation of the
878     school and the level of community confidence and support afforded the school; and
879          (e) it is of the utmost importance that those involved in student government, whether as
880     officers or advisors, and those involved in competitive athletics and related activities, whether
881     students or staff, comply with all applicable laws and standards of behavior and conduct
882     themselves at all times in a manner befitting their positions and responsibilities.
883          (2) (a) The state board may, and local school boards and charter school governing
884     boards shall, adopt rules or policies implementing this section that apply to both students and
885     staff.
886          (b) The rules or policies described in Subsection (2)(a) shall include prohibitions
887     against the following types of conduct in accordance with Section 53G-8-211, while in the
888     classroom, on school property, during school sponsored activities, or regardless of the location
889     or circumstance, affecting a person or property described in Subsections 53G-8-203(1)(e)(i)
890     through (iv):
891          (i) use of foul, abusive, or profane language while engaged in school related activities;
892          (ii) illicit use, possession, or distribution of controlled substances or drug
893     paraphernalia, and the use, possession, or distribution of an electronic cigarette product as
894     defined in Section 76-10-101, tobacco, or alcoholic beverages contrary to law; and
895          (iii) hazing, demeaning, or assaultive behavior, whether consensual or not, including

896     behavior involving physical violence, restraint, improper touching, or inappropriate exposure
897     of body parts not normally exposed in public settings, forced ingestion of any substance, or any
898     act which would constitute a crime against a person or public order under [Utah] state law.
899          (3) (a) School employees who reasonably believe that a violation of this section may
900     have occurred shall immediately report that belief to the school principal, district
901     superintendent, or chief administrative officer of a charter school.
902          (b) Principals who receive a report under Subsection (3)(a) shall submit a report of the
903     alleged incident, and actions taken in response, to the district superintendent or the
904     superintendent's designee within 10 working days after receipt of the report.
905          (c) Failure of a person holding a professional certificate to report as required under this
906     Subsection (3) constitutes an unprofessional practice.
907          (4) Limitations of liability set forth under Section 53G-8-405 apply to this section.
908          Section 20. Section 59-14-102 is amended to read:
909          59-14-102. Definitions.
910          As used in this chapter:
911          (1) (a) Except as provided in Subsection (1)(c), "alternative nicotine product" means a
912     product, other than a cigarette, a counterfeit cigarette, an electronic cigarette product, a
913     nontherapeutic nicotine product, or a tobacco product, that:
914          (i) contains nicotine;
915          (ii) is intended for human consumption;
916          (iii) is not purchased with a prescription from a licensed physician; and
917          (iv) is not approved by the United States Food and Drug Administration as nicotine
918     replacement therapy.
919          (b) "Alternative nicotine product" includes:
920          (i) pure nicotine;
921          (ii) snortable nicotine;
922          (iii) dissolvable salts, orbs, pellets, sticks, or strips; and
923          (iv) nicotine-laced food and beverage.
924          (c) "Alternative nicotine product" does not include a fruit, a vegetable, or a tea that
925     contains naturally occurring nicotine.
926          [(1)] (2) "Cigarette" means a roll for smoking made wholly or in part of tobacco:

927          (a) regardless of:
928          (i) the size of the roll;
929          (ii) the shape of the roll; or
930          (iii) whether the tobacco is[: (A) ] flavored[; (B)], adulterated[; or (C)], or mixed with
931     any other ingredient; and
932          (b) if the wrapper or cover of the roll is made of paper or any other substance or
933     material except tobacco.
934          [(2)] (3) "Cigarette rolling machine" means a device or machine that has the capability
935     to produce at least 150 cigarettes in less than 30 minutes.
936          [(3)] (4) "Cigarette rolling machine operator" means a person who:
937          (a) (i) controls, leases, owns, possesses, or otherwise has available for use a cigarette
938     rolling machine; and
939          (ii) makes the cigarette rolling machine available for use by another person to produce
940     a cigarette; or
941          (b) offers for sale, at retail, a cigarette produced from the cigarette rolling machine.
942          [(4)] (5) "Consumer" means a person that is not required:
943          (a) under Section 59-14-201 to obtain a license under Section 59-14-202; [or]
944          (b) under Section 59-14-301 to obtain a license under Section 59-14-202[.]; or
945          (c) to obtain a license under Section 59-14-803.
946          [(5)] (6) "Counterfeit cigarette" means:
947          (a) a cigarette that has a false manufacturing label; or
948          (b) a package of cigarettes bearing a counterfeit tax stamp.
949          (7) (a) "Electronic cigarette" means:
950          (i) an electronic device used to deliver or capable of delivering vapor containing
951     nicotine or another substance to an individual's respiratory system;
952          (ii) a component of the device described in Subsection (7)(a)(i); or
953          (iii) an accessory sold in the same package as the device described in Subsection
954     (7)(a)(i).
955          (b) "Electronic cigarette" includes an e-cigarette as that term is defined in Section
956     26-38-2.
957          (8) "Electronic cigarette product" means an electronic cigarette, an electronic cigarette

958     substance, or a prefilled electronic cigarette.
959          (9) "Electronic cigarette substance" means any substance, including liquid containing
960     nicotine, used or intended for use in an electronic cigarette.
961          [(6)] (10) "Importer" means a person [who] that imports into the United States, either
962     directly or indirectly, a finished cigarette for sale or distribution.
963          [(7)] (11) "Indian tribal entity" means a federally recognized Indian tribe, tribal entity,
964     or any other person doing business as a distributor or retailer of cigarettes on tribal lands
965     located in the state.
966          [(8)] (12) "Little cigar" means a roll for smoking that:
967          (a) is made wholly or in part of tobacco;
968          (b) [that] uses an integrated cellulose acetate filter or other similar filter; and
969          (c) [that] is wrapped in a substance:
970          (i) containing tobacco; and
971          (ii) that is not exclusively natural leaf tobacco.
972          [(9)] (13) (a) Except as provided in Subsection [(9)] (13)(b), "manufacturer" means a
973     person [who] that:
974          (i) manufactures, fabricates, assembles, processes, or labels a finished cigarette[.]; or
975          (ii) makes, modifies, mixes, manufactures, fabricates, assembles, processes, labels,
976     repackages, relabels, or imports an electronic cigarette product or a nicotine product.
977          (b) "Manufacturer" does not include a cigarette rolling machine operator.
978          [(10)] (14) "Moist snuff" means tobacco that:
979          (a) is finely[: (i) ] cut[; (ii)], ground[; or (iii)], or powdered;
980          (b) has at least 45% moisture content, as determined by the commission by rule made
981     in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
982          (c) is not intended to be:
983          (i) smoked; or
984          (ii) placed in the nasal cavity; and
985          (d) except for single-use pouches of loose tobacco, is not packaged, produced, sold, or
986     distributed in single-use units, including:
987          (i) tablets;
988          (ii) lozenges;

989          (iii) strips;
990          (iv) sticks; or
991          (v) packages containing multiple single-use units.
992          (15) "Nicotine" means a poisonous, nitrogen containing chemical that is made
993     synthetically or derived from tobacco or other plants.
994          (16) "Nicotine product" means an alternative nicotine product or a nontherapeutic
995     nicotine product.
996          (17) (a) "Nontherapeutic nicotine device" means a device that:
997          (i) has a pressurized canister that is used to administer nicotine to the user through
998     inhalation or intranasally;
999          (ii) is not purchased with a prescription from a licensed physician; and
1000          (iii) is not approved by the United States Food and Drug Administration as nicotine
1001     replacement therapy.
1002          (b) "Nontherapeutic nicotine device" includes a nontherapeutic nicotine inhaler or
1003     nontherapeutic nicotine nasal spray.
1004          (18) "Nontherapeutic nicotine device substance" means a substance that:
1005          (a) contains nicotine;
1006          (b) is sold in a cartridge for use in a nontherapeutic nicotine device;
1007          (c) is not purchased with a prescription from a licensed physician; and
1008          (d) is not approved by the United States Food and Drug Administration as nicotine
1009     replacement therapy.
1010          (19) "Nontherapeutic nicotine product" means a nontherapeutic nicotine device, a
1011     nontherapeutic nicotine device substance, or a prefilled nontherapeutic nicotine device.
1012          (20) "Prefilled electronic cigarette" means an electronic cigarette that is sold prefilled
1013     with an electronic cigarette substance.
1014          (21) "Prefilled nontherapeutic nicotine device" means a nontherapeutic nicotine device
1015     that is sold prefilled with a nontherapeutic nicotine device substance.
1016          [(11)] (22) "Retailer" means a person that:
1017          (a) sells or distributes a cigarette, an electronic cigarette product, or a nicotine product
1018     to a consumer in the state; or
1019          (b) intends to sell or distribute a cigarette, an electronic cigarette product, or a nicotine

1020     product to a consumer in the state.
1021          [(12)] (23) "Stamp" means the indicia required to be placed on a cigarette package that
1022     evidences payment of the tax on cigarettes required by Section 59-14-205.
1023          [(13)] (24) (a) "Tobacco product" means a product made of, or containing, tobacco.
1024          (b) "Tobacco product" includes:
1025          (i) a cigarette produced from a cigarette rolling machine;
1026          (ii) a little cigar; or
1027          (iii) moist snuff.
1028          (c) "Tobacco product" does not include a cigarette.
1029          [(14)] (25) "Tribal lands" means land held by the United States in trust for a federally
1030     recognized Indian tribe.
1031          Section 21. Section 59-14-302 is amended to read:
1032          59-14-302. Tax basis -- Rates.
1033          (1) As used in this section:
1034          (a) "Manufacturer's sales price" means the amount the manufacturer of a tobacco
1035     product charges after subtracting a discount.
1036          (b) "Manufacturer's sales price" includes an original Utah destination freight charge,
1037     regardless of:
1038          (i) whether the tobacco product is shipped f.o.b. origin or f.o.b. destination; or
1039          (ii) who pays the original Utah destination freight charge.
1040          (2) There is levied a tax upon the sale, use, or storage of tobacco products in the state.
1041          (3) (a) Subject to Subsection (3)(b), the tax levied under Subsection (2) shall be paid
1042     by the manufacturer, jobber, distributor, wholesaler, retailer, user, or consumer.
1043          (b) The tax levied under Subsection (2) on a cigarette produced from a cigarette rolling
1044     machine shall be paid by the cigarette rolling machine operator.
1045          (4) For tobacco products except for moist snuff, a little cigar, or a cigarette produced
1046     from a cigarette rolling machine, the [rate] amount of the tax under this section is .86
1047     multiplied by the manufacturer's sales price.
1048          (5) (a) Subject to Subsection (5)(b), the tax under this section on moist snuff is
1049     imposed:
1050          (i) at a rate of $1.83 per ounce; and

1051          (ii) on the basis of the net weight of the moist snuff as listed by the manufacturer.
1052          (b) If the net weight of moist snuff is in a quantity that is a fractional part of one ounce,
1053     a proportionate amount of the tax described in Subsection (5)(a) is imposed:
1054          (i) on that fractional part of one ounce; and
1055          (ii) in accordance with rules made by the commission in accordance with Title 63G,
1056     Chapter 3, Utah Administrative Rulemaking Act.
1057          (6) (a) A little cigar is taxed at the same tax rates as a cigarette is taxed under
1058     Subsection 59-14-204(2).
1059          (b) (i) Subject to Subsection (6)(b)(ii), a cigarette produced from a cigarette rolling
1060     machine is taxed at the same tax rates as a cigarette is taxed under Subsection 59-14-204(2).
1061          (ii) A tax under this Subsection (6)(b) is imposed on the date the cigarette is produced
1062     from the cigarette rolling machine.
1063          (7) (a) Moisture content of a tobacco product is determined at the time of packaging.
1064          (b) A manufacturer who distributes a tobacco product in, or into, Utah, shall:
1065          (i) for a period of three years after the last day on which the manufacturer distributes
1066     the tobacco product in, or into, Utah, keep valid scientific evidence of the moisture content of
1067     the tobacco product available for review by the commission, upon demand; and
1068          (ii) provide a document, to the person described in Subsection (3) to whom the
1069     manufacturer distributes the tobacco product, that certifies the moisture content of the tobacco
1070     product, as verified by the scientific evidence described in Subsection (7)(b)(i).
1071          (c) A manufacturer who fails to comply with the requirements of Subsection (7)(b) is
1072     liable for the nonpayment or underpayment of taxes on the tobacco product by a person who
1073     relies, in good faith, on the document described in Subsection (7)(b)(ii).
1074          (d) A person described in Subsection (3) who is required to pay tax on a tobacco
1075     product:
1076          (i) shall, for a period of three years after the last day on which the person pays the tax
1077     on the tobacco product, keep the document described in Subsection (7)(b)(ii) available for
1078     review by the commission, upon demand; and
1079          (ii) is not liable for nonpayment or underpayment of taxes on the tobacco product due
1080     to the person's good faith reliance on the document described in Subsection (7)(b)(ii).
1081          Section 22. Section 59-14-801 is amended to read:

1082     
Part 8. Electronic Cigarette and Nicotine Product Licensing and Taxation Act

1083          59-14-801. Title.
1084          This part is known as the "Electronic Cigarette and Nicotine Product Licensing and
1085     Taxation Act."
1086          Section 23. Section 59-14-802 is amended to read:
1087          59-14-802. Definitions.
1088          As used in this part:
1089          [(1) "Cigarette" means the same as that term is defined in Section 59-14-102.]
1090          [(2) (a) "Electronic cigarette" means:]
1091          [(i) an electronic device used to deliver or capable of delivering vapor containing
1092     nicotine to an individual's respiratory system;]
1093          [(ii) a component of the device described in Subsection (2)(a)(i); or]
1094          [(iii) an accessory sold in the same package as the device described in Subsection
1095     (2)(a)(i).]
1096          [(b) "Electronic cigarette" includes an e-cigarette as defined in Section 26-38-2.]
1097          [(3) "Electronic cigarette product" means an electronic cigarette or an electronic
1098     cigarette substance.]
1099          [(4) "Electronic cigarette substance" means any substance, including liquid containing
1100     nicotine, used or intended for use in an electronic cigarette.]
1101          [(5)] (1) "Licensee" means a person that holds a valid license to sell an electronic
1102     cigarette [products] product or a nicotine product.
1103          [(6) "License to sell an electronic cigarette product" means a license issued by the
1104     commission under Subsection 59-14-803(3).]
1105          (2) (a) "Manufacturer's sales price" means the amount that the manufacturer of an
1106     electronic cigarette substance, a prefilled electronic cigarette, an alternative nicotine product, a
1107     nontherapeutic nicotine device substance, or a prefilled nontherapeutic nicotine device charges
1108     after subtracting a discount.
1109          (b) "Manufacturer's sales price" includes an original Utah destination freight charge,
1110     regardless of:
1111          (i) whether the electronic cigarette substance, prefilled electronic cigarette, alternative
1112     nicotine product, nontherapeutic nicotine device substance, or prefilled nontherapeutic nicotine

1113     device is shipped f.o.b. origin or f.o.b. destination; or
1114          (ii) who pays the original Utah destination freight charge.
1115          Section 24. Section 59-14-803 is amended to read:
1116          59-14-803. License to sell electronic cigarette product or nicotine product.
1117          (1) [Except as provided in Subsection (2), a] A person may not sell, offer to sell, or
1118     distribute an electronic cigarette product [in Utah] or a nicotine product in this state without
1119     first:
1120          (a) except as provided in Subsection (2), obtaining a license from the commission
1121     under this section to sell an electronic cigarette product [from the commission under this
1122     section.] or a nicotine product; and
1123          (b) complying with any bonding requirement described in Subsection (5).
1124          (2) A person that holds a valid license to sell cigarettes under Section 59-14-201[,] or a
1125     person that holds a valid license to sell tobacco products under Section 59-14-301[,] may,
1126     without obtaining a separate license [to sell an electronic cigarette product under this part,] in
1127     accordance with this section, sell, offer to sell, or distribute an electronic cigarette product [in
1128     Utah in accordance with this part] or a nicotine product in this state.
1129          (3) The commission shall issue a license to sell an electronic cigarette product or a
1130     nicotine product to a person that submits an application, on a form created by the commission,
1131     that includes:
1132          (a) the person's name;
1133          (b) the address of the facility where the person will sell an electronic cigarette product
1134     or a nicotine product; and
1135          (c) any other information the commission requires to implement this chapter.
1136          (4) A license described in Subsection (3) is:
1137          (a) valid only at one fixed business address;
1138          (b) valid for three years;
1139          (c) valid only for a physical location; and
1140          (d) renewable if a licensee meets the criteria for licensing described in Subsection (3).
1141          (5) (a) The commission shall require a manufacturer, jobber, distributor, wholesaler, or
1142     retailer that is responsible under this part for the collection of tax on an electronic cigarette
1143     substance, a prefilled electronic cigarette, an alternative nicotine product, a nontherapeutic

1144     nicotine device substance, or a prefilled nontherapeutic nicotine device to post a bond.
1145          (b) The manufacturer, jobber, distributor, wholesaler, or retailer may post the bond
1146     required by Subsection (5)(a) in combination with any bond required by Section 59-14-201 or
1147     59-14-301.
1148          (c) Subject to Subsection (5)(d), the commission shall determine the form and amount
1149     of the bond.
1150          (d) The minimum amount of the bond shall be:
1151          (i) except as provided in Subsection (5)(d)(ii) or (iii), $500;
1152          (ii) if the manufacturer, jobber, distributor, wholesaler, or retailer posts the bond
1153     required by Subsection (5)(a) in combination with a bond required by either Section 59-14-201
1154     or 59-14-301, $1,000; or
1155          (iii) if the manufacturer, jobber, distributor, wholesaler, or retailer posts the bond
1156     required by Subsection (5)(a) in combination with a bond required by both Sections 59-14-201
1157     and 59-14-301, $1,500.
1158          [(5)] (6) The commission may make rules in accordance with Title 63G, Chapter 3,
1159     Utah Administrative Rulemaking Act, to establish the additional information described in
1160     Subsection (3)(c) that a person [must] shall provide in the application described in Subsection
1161     (3).
1162          [(6)] (7) It is a class B misdemeanor for a person to violate Subsection (1).
1163          [(7)] (8) The commission may not charge a fee for a license under this section.
1164          Section 25. Section 59-14-804 is enacted to read:
1165          59-14-804. Taxation of electronic cigarette substance, prefilled electronic
1166     cigarette, alternative nicotine product, nontherapeutic nicotine device substance, and
1167     prefilled nontherapeutic nicotine device.
1168          (1) (a) There is levied a tax upon the following:
1169          (i) an electronic cigarette substance; and
1170          (ii) a prefilled electronic cigarette.
1171          (b) Beginning on July 1, 2021, there is levied a tax upon the following:
1172          (i) an alternative nicotine product;
1173          (ii) a nontherapeutic nicotine device substance; and
1174          (iii) a prefilled nontherapeutic nicotine device.

1175          (2) The amount of tax levied under Subsection (1) is .86 multiplied by the
1176     manufacturer's sales price.
1177          (3) (a) A manufacturer, jobber, distributor, wholesaler, retailer, consumer, or user shall
1178     pay the tax levied under Subsection (1) at the time that an electronic cigarette substance, a
1179     prefilled electronic cigarette, an alternative nicotine product, a nontherapeutic nicotine device
1180     substance, or a prefilled nontherapeutic nicotine device is first received in the state.
1181          (b) A manufacturer, jobber, distributor, wholesaler, retailer, consumer, or user may not
1182     resell an electronic cigarette substance, a prefilled electronic cigarette, an alternative nicotine
1183     product, a nontherapeutic nicotine device substance, or a prefilled nontherapeutic nicotine
1184     device to another distributor, another retailer, or a consumer before paying the tax levied under
1185     Subsection (1).
1186          (4) (a) The manufacturer, jobber, distributor, wholesaler, retailer, consumer, or user
1187     shall remit the taxes collected in accordance with this section to the commission.
1188          (b) The commission shall deposit, for each fiscal year:
1189          (i) the first $3,000,000 remitted in accordance with this section into the Electronic
1190     Cigarette Substance and Nicotine Product Tax Restricted Account, created in Section
1191     59-14-807; and
1192          (ii) the balance of remittances received in accordance with this section into the General
1193     Fund.
1194          Section 26. Section 59-14-805 is enacted to read:
1195          59-14-805. Remittance of tax -- Returns -- Invoice required -- Filing requirement--
1196     Exception -- Penalty -- Overpayment.
1197          (1) (a) The manufacturer, jobber, distributor, wholesaler, retailer, consumer, or user
1198     that collects the tax imposed on an electronic cigarette substance, a prefilled electronic
1199     cigarette, an alternative nicotine product, a nontherapeutic nicotine device substance, or a
1200     prefilled nontherapeutic nicotine device shall remit to the commission, in an electronic format
1201     approved by the commission:
1202          (i) the tax collected in the previous calendar quarter; and
1203          (ii) the quarterly tax return.
1204          (b) The tax collected and the return are due on or before the last day of April, July,
1205     October, and January.

1206          (2) (a) A manufacturer, jobber, distributor, wholesaler, retailer, or any other person
1207     selling an electronic cigarette substance, a prefilled electronic cigarette, an alternative nicotine
1208     product, a nontherapeutic nicotine device substance, or a prefilled nontherapeutic nicotine
1209     device to a person other than the ultimate consumer shall furnish the purchaser with an
1210     itemized invoice showing:
1211          (i) the seller's name and address;
1212          (ii) the name and address of the purchaser;
1213          (iii) the date of sale;
1214          (iv) the name and price of the product; and
1215          (v) the discount, if any.
1216          (b) The invoice shall show whether the price includes the tax.
1217          (c) The seller and the purchaser shall retain copies of the invoice and make the invoice
1218     available for inspection at the request of the commission or the commission's agent for a period
1219     of three years following the sale.
1220          (3) (a) A consumer that purchases an untaxed electronic cigarette substance, prefilled
1221     electronic cigarette, alternative nicotine product, nontherapeutic nicotine device substance, or
1222     prefilled nontherapeutic nicotine device for use or other consumption shall:
1223          (i) file with the commission, on forms prescribed by the commission, a statement
1224     showing the quantity and description of the item subject to tax under this part; and
1225          (ii) pay the tax imposed by this part on that item.
1226          (b) The consumer shall file the statement described in Subsection (3)(a) and pay the tax
1227     due on or before the last day of the month immediately following the month during which the
1228     consumer purchased an untaxed electronic cigarette substance, prefilled electronic cigarette,
1229     alternative nicotine device substance, nontherapeutic nicotine product, or prefilled
1230     nontherapeutic nicotine device.
1231          (c) A consumer shall maintain records necessary to determine the amount of tax the
1232     consumer is liable to pay under this part for a period of three years following the date on which
1233     the statement required by this section was filed.
1234          (4) A tourist who imports an untaxed electronic cigarette substance, a prefilled
1235     electronic cigarette, an alternative nicotine product, a nontherapeutic nicotine device substance,
1236     or a prefilled nontherapeutic nicotine device into the state does not need to file the statement

1237     described in Subsection (3) or pay the tax if the item is for the tourist's own use or consumption
1238     while in this state.
1239          (5) In addition to the tax required by this part, a person shall pay a penalty as provided
1240     in Section 59-1-401, plus interest at the rate and in the manner prescribed in Section 59-1-402,
1241     if a person subject to this section fails to:
1242          (a) pay the tax prescribed by this part;
1243          (b) pay the tax on time; or
1244          (c) file a return required by this part.
1245          (6) An overpayment of a tax imposed by this part shall accrue interest at the rate and in
1246     the manner prescribed in Section 59-1-402.
1247          Section 27. Section 59-14-806 is enacted to read:
1248          59-14-806. Refund of taxes paid -- Exemption for exported electronic cigarettes
1249     and nicotine products.
1250          (1) When an electronic cigarette substance, a prefilled electronic cigarette, an
1251     alternative nicotine product, a nontherapeutic nicotine device substance, or a prefilled
1252     nontherapeutic nicotine device taxed under this chapter is sold and shipped to a regular dealer
1253     in those articles in another state, the seller in this state shall be entitled to a refund of the actual
1254     amount of the taxes paid, upon condition that the seller in this state:
1255          (a) is a licensed dealer;
1256          (b) signs an affidavit that the electronic cigarette substance, the prefilled electronic
1257     cigarette, the alternative nicotine product, the nontherapeutic nicotine device substance, or the
1258     prefilled nontherapeutic nicotine device was sold and shipped to a regular dealer in those
1259     articles in another state;
1260          (c) furnishes, from the purchaser, a written acknowledgment that the purchaser has
1261     received the electronic cigarette substance, the prefilled electronic cigarette, the alternative
1262     nicotine product, the nontherapeutic nicotine device substance, or the prefilled nontherapeutic
1263     nicotine device; and
1264          (d) reports the name and address of the purchaser.
1265          (2) A wholesaler or distributor in this state that exports an electronic cigarette
1266     substance, a prefilled electronic cigarette, an alternative nicotine product, a nontherapeutic
1267     nicotine device substance, or a prefilled nontherapeutic nicotine device to a regular dealer in

1268     those articles in another state shall be exempt from the payment of any tax under this chapter
1269     upon furnishing proof of the sale and exportation as the commission may require.
1270          Section 28. Section 59-14-807 is enacted to read:
1271          59-14-807. Electronic Cigarette Substance and Nicotine Product Tax Restricted
1272     Account.
1273          (1) There is created within the General Fund a restricted account known as the
1274     "Electronic Cigarette Substance and Nicotine Product Tax Restricted Account."
1275          (2) The Electronic Cigarette Substance and Nicotine Product Tax Restricted Account
1276     consists of:
1277          (a) for each fiscal year, the first $3,000,000 collected from the tax imposed by Section
1278     59-14-804; and
1279          (b) amounts appropriated by the Legislature.
1280          (3) (a) For each fiscal year, beginning with fiscal year 2021, and subject to
1281     appropriation by the Legislature, the Division of Finance shall distribute from the Electronic
1282     Cigarette Substance and Nicotine Product Tax Restricted Account:
1283          (i) $1,000,000 to the Department of Human Services; and
1284          (ii) the balance of the account to the local health departments as directed by the
1285     Department of Health, which shall determine the allocation for each local health department
1286     using the formula created in accordance with Section 26A-1-116.
1287          (b) The Department of Human Services shall use the money received in accordance
1288     with Subsection (3)(a)(i) to provide substance abuse treatment.
1289          (c) The local health departments shall use the money received in accordance with
1290     Subsection (3)(a)(ii) for:
1291          (i) the development and implementation of evidence-based tobacco, electronic
1292     cigarette, and nicotine product cessation programs for individuals under the age of 19;
1293          (ii) enforcing:
1294          (A) the regulation provisions described in Section 26-57-103;
1295          (B) the labeling requirement described in Section 26-57-104; and
1296          (C) the penalty provisions described in Section 26-62-305; and
1297          (iii) developing and providing tobacco, electronic cigarette, and nicotine product use
1298     prevention education to individuals under the age of 19.

1299          Section 29. Section 76-8-311.3 is amended to read:
1300          76-8-311.3. Items prohibited in correctional and mental health facilities --
1301     Penalties.
1302          (1) As used in this section:
1303          (a) "Contraband" means any item not specifically prohibited for possession by
1304     offenders under this section or Title 58, Chapter 37, Utah Controlled Substances Act.
1305          (b) "Controlled substance" means any substance defined as a controlled substance
1306     under Title 58, Chapter 37, Utah Controlled Substances Act.
1307          (c) "Correctional facility" means:
1308          (i) any facility operated by or contracting with the Department of Corrections to house
1309     offenders in either a secure or nonsecure setting;
1310          (ii) any facility operated by a municipality or a county to house or detain criminal
1311     offenders;
1312          (iii) any juvenile detention facility; and
1313          (iv) any building or grounds appurtenant to the facility or lands granted to the state,
1314     municipality, or county for use as a correctional facility.
1315          (d) "Electronic cigarette" [is as] means an electronic cigarette product as that term is
1316     defined in Section 76-10-101.
1317          (e) "Medicine" means any prescription drug as defined in Title 58, Chapter 17b,
1318     Pharmacy Practice Act, but does not include any controlled substances as defined in Title 58,
1319     Chapter 37, Utah Controlled Substances Act.
1320          (f) "Mental health facility" [is as] means the same as that term is defined in Section
1321     62A-15-602.
1322          (g) "Offender" means a person in custody at a correctional facility.
1323          (h) "Secure area" [is as] means the same as that term is defined in Section 76-8-311.1.
1324          (2) Notwithstanding Section 76-10-500, a correctional or mental health facility may
1325     provide by rule that no firearm, ammunition, dangerous weapon, implement of escape,
1326     explosive, controlled substance, spirituous or fermented liquor, medicine, or poison in any
1327     quantity may be:
1328          (a) transported to or upon a correctional or mental health facility;
1329          (b) sold or given away at any correctional or mental health facility;

1330          (c) given to or used by any offender at a correctional or mental health facility; or
1331          (d) knowingly or intentionally possessed at a correctional or mental health facility.
1332          (3) It is a defense to any prosecution under this section if the accused in committing the
1333     act made criminal by this section with respect to:
1334          (a) a correctional facility operated by the Department of Corrections, acted in
1335     conformity with departmental rule or policy;
1336          (b) a correctional facility operated by a municipality, acted in conformity with the
1337     policy of the municipality;
1338          (c) a correctional facility operated by a county, acted in conformity with the policy of
1339     the county; or
1340          (d) a mental health facility, acted in conformity with the policy of the mental health
1341     facility.
1342          (4) (a) Any [person] individual who transports to or upon a correctional facility, or into
1343     a secure area of a mental health facility, any firearm, ammunition, dangerous weapon, or
1344     implement of escape with intent to provide or sell it to any offender, is guilty of a second
1345     degree felony.
1346          (b) Any [person] individual who provides or sells to any offender at a correctional
1347     facility, or any detainee at a secure area of a mental health facility, any firearm, ammunition,
1348     dangerous weapon, or implement of escape is guilty of a second degree felony.
1349          (c) Any offender who possesses at a correctional facility, or any detainee who
1350     possesses at a secure area of a mental health facility, any firearm, ammunition, dangerous
1351     weapon, or implement of escape is guilty of a second degree felony.
1352          (d) Any [person] individual who, without the permission of the authority operating the
1353     correctional facility or the secure area of a mental health facility, knowingly possesses at a
1354     correctional facility or a secure area of a mental health facility any firearm, ammunition,
1355     dangerous weapon, or implement of escape is guilty of a third degree felony.
1356          (e) Any [person] individual violates Section 76-10-306 who knowingly or intentionally
1357     transports, possesses, distributes, or sells any explosive in a correctional facility or mental
1358     health facility.
1359          (5) (a) [A person] An individual is guilty of a third degree felony who, without the
1360     permission of the authority operating the correctional facility or secure area of a mental health

1361     facility, knowingly transports to or upon a correctional facility or into a secure area of a mental
1362     health facility any:
1363          (i) spirituous or fermented liquor;
1364          (ii) medicine, whether or not lawfully prescribed for the offender; or
1365          (iii) poison in any quantity.
1366          (b) [A person] An individual is guilty of a third degree felony who knowingly violates
1367     correctional or mental health facility policy or rule by providing or selling to any offender at a
1368     correctional facility or detainee within a secure area of a mental health facility any:
1369          (i) spirituous or fermented liquor;
1370          (ii) medicine, whether or not lawfully prescribed for the offender; or
1371          (iii) poison in any quantity.
1372          (c) An inmate is guilty of a third degree felony who, in violation of correctional or
1373     mental health facility policy or rule, possesses at a correctional facility or in a secure area of a
1374     mental health facility any:
1375          (i) spirituous or fermented liquor;
1376          (ii) medicine, other than medicine provided by the facility's health care providers in
1377     compliance with facility policy; or
1378          (iii) poison in any quantity.
1379          (d) [A person] An individual is guilty of a class A misdemeanor who, with the intent to
1380     directly or indirectly provide or sell any tobacco product or electronic cigarette to an offender,
1381     directly or indirectly:
1382          (i) transports, delivers, or distributes any tobacco product or electronic cigarette to an
1383     offender or on the grounds of any correctional facility;
1384          (ii) solicits, requests, commands, coerces, encourages, or intentionally aids another
1385     person to transport any tobacco product or electronic cigarette to an offender or on any
1386     correctional facility, if the person is acting with the mental state required for the commission of
1387     an offense; or
1388          (iii) facilitates, arranges, or causes the transport of any tobacco product or electronic
1389     cigarette in violation of this section to an offender or on the grounds of any correctional
1390     facility.
1391          (e) [A person] An individual is guilty of a class A misdemeanor who, without the

1392     permission of the authority operating the correctional or mental health facility, fails to declare
1393     or knowingly possesses at a correctional facility or in a secure area of a mental health facility
1394     any:
1395          (i) spirituous or fermented liquor;
1396          (ii) medicine; or
1397          (iii) poison in any quantity.
1398          (f) (i) [A person] Except as provided in Subsection (5)(f)(ii), an individual is guilty of a
1399     class B misdemeanor who, without the permission of the authority operating the correctional
1400     facility, knowingly engages in any activity that would facilitate the possession of any
1401     contraband by an offender in a correctional facility.
1402          (ii) The provisions of Subsection (5)(d) regarding any tobacco product or electronic
1403     cigarette take precedence over this Subsection (5)(f).
1404          (g) Exemptions may be granted for worship for Native American inmates pursuant to
1405     Section 64-13-40.
1406          (6) The possession, distribution, or use of a controlled substance at a correctional
1407     facility or in a secure area of a mental health facility shall be prosecuted in accordance with
1408     Title 58, Chapter 37, Utah Controlled Substances Act.
1409          (7) The department shall make rules under Title 63G, Chapter 3, Utah Administrative
1410     Rulemaking Act, to establish guidelines for providing written notice to visitors that providing
1411     any tobacco product or electronic cigarette to offenders is a class A misdemeanor.
1412          Section 30. Section 76-10-101 is amended to read:
1413          76-10-101. Definitions.
1414          As used in this part:
1415          (1) "Cigar" means a product that contains nicotine, is intended to be burned under
1416     ordinary conditions of use, and consists of any roll of tobacco wrapped in leaf tobacco, or in
1417     any substance containing tobacco, other than any roll of tobacco that is a cigarette as described
1418     in Subsection (2).
1419          (2) "Cigarette" means a product that contains nicotine, is intended to be burned under
1420     ordinary conditions of use, and consists of:
1421          (a) any roll of tobacco wrapped in paper or in any substance not containing tobacco; or
1422          (b) any roll of tobacco wrapped in any substance containing tobacco which, because of

1423     its appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to
1424     be offered to, or purchased by, consumers as a cigarette described in Subsection (2)(a).
1425          [(3) "Electronic cigarette" means an electronic cigarette product, as defined in Section
1426     59-14-802.]
1427          (3) (a) "Electronic cigarette" means:
1428          (i) an electronic device used to deliver or capable of delivering vapor containing
1429     nicotine to an individual's respiratory system;
1430          (ii) a component of the device described in Subsection (3)(a)(i); or
1431          (iii) an accessory sold in the same package as the device described in Subsection
1432     (3)(a)(i).
1433          (b) "Electronic cigarette" includes an e-cigarette as that term is defined in Section
1434     26-38-2.
1435          (4) "Electronic cigarette product" means an electronic cigarette, an electronic cigarette
1436     substance, or a prefilled electronic cigarette.
1437          (5) "Electronic cigarette substance" means any substance, including liquid containing
1438     nicotine, used or intended for use in an electronic cigarette.
1439          (6) "Nicotine product" means the same as that term is defined in Section 59-14-102.
1440          (7) (a) "Nontherapeutic nicotine device" means a device that:
1441          (i) has a pressurized canister that is used to administer nicotine to the user through
1442     inhalation or intranasally;
1443          (ii) is not purchased with a prescription from a licensed physician; and
1444          (iii) is not approved by the United States Food and Drug Administration as nicotine
1445     replacement therapy.
1446          (b) "Nontherapeutic nicotine device" includes a nontherapeutic nicotine inhaler or a
1447     nontherapeutic nicotine nasal spray.
1448          (8) "Nontherapeutic nicotine device substance" means a substance that:
1449          (a) contains nicotine;
1450          (b) is sold in a cartridge for use in a nontherapeutic nicotine device;
1451          (c) is not purchased with a prescription from a licensed physician; and
1452          (d) is not approved by the United States Food and Drug Administration as nicotine
1453     replacement therapy.

1454          [(4)] (9) "Place of business" includes:
1455          (a) a shop;
1456          (b) a store;
1457          (c) a factory;
1458          (d) a public garage;
1459          (e) an office;
1460          (f) a theater;
1461          (g) a recreation hall;
1462          (h) a dance hall;
1463          (i) a poolroom;
1464          (j) a café;
1465          (k) a cafeteria;
1466          (l) a cabaret;
1467          (m) a restaurant;
1468          (n) a hotel;
1469          (o) a lodging house;
1470          (p) a streetcar;
1471          (q) a bus;
1472          (r) an interurban or railway passenger coach;
1473          (s) a waiting room; and
1474          (t) any other place of business.
1475          (10) "Prefilled electronic cigarette" means an electronic cigarette that is sold prefilled
1476     with an electronic cigarette substance.
1477          [(5)] (11) "Smoking" means the possession of any lighted cigar, cigarette, pipe, or other
1478     lighted smoking equipment.
1479          Section 31. Section 76-10-104 (Effective 07/01/20) is amended to read:
1480          76-10-104 (Effective 07/01/20). Providing a cigar, a cigarette, an electronic
1481     cigarette product, a nicotine product, or tobacco to a minor -- Penalties.
1482          (1) [A person violates this section who] An individual is guilty of a class C
1483     misdemeanor on the first offense, a class B misdemeanor on the second offense, and a class A
1484     misdemeanor on subsequent offenses if the individual knowingly, intentionally, recklessly, or

1485     with criminal negligence provides a cigar, a cigarette, an electronic cigarette product, a nicotine
1486     product, or tobacco in any form[,] to an individual under the following ages[, is guilty of a class
1487     C misdemeanor on the first offense, a class B misdemeanor on the second offense, and a class
1488     A misdemeanor on subsequent offenses]:
1489          (a) beginning July 1, 2020, and ending June 30, 2021, 20 years old; and
1490          (b) beginning July 1, 2021, 21 years old.
1491          (2) As used in this section "provides":
1492          (a) includes selling, giving, furnishing, sending, or causing to be sent; and
1493          (b) does not include the acts of the United States Postal Service or other common
1494     carrier when engaged in the business of transporting and delivering packages for others or the
1495     acts of a person, whether compensated or not, who transports or delivers a package for another
1496     person without any reason to know of the package's content.
1497          Section 32. Section 76-10-104.1 (Effective 07/01/20) is amended to read:
1498          76-10-104.1 (Effective 07/01/20). Providing tobacco paraphernalia to a minor --
1499     Penalties.
1500          (1) For purposes of this section:
1501          (a) "Provides":
1502          (i) includes selling, giving, furnishing, sending, or causing to be sent; and
1503          (ii) does not include the acts of the United States Postal Service or other common
1504     carrier when engaged in the business of transporting and delivering packages for others or the
1505     acts of a person, whether compensated or not, who transports or delivers a package for another
1506     person without any reason to know of the package's content.
1507          (b) (i) "Tobacco paraphernalia"[: (i) ] means equipment, product, or material of any
1508     kind that is used, intended for use, or designed for use to package, repackage, store, contain,
1509     conceal, ingest, inhale, or otherwise introduce a cigar, a cigarette, an electronic cigarette
1510     substance, a nontherapeutic nicotine device substance, or tobacco in any form into the human
1511     body[, including:].
1512          (ii) "Tobacco paraphernalia" includes:
1513          (A) metal, wooden, acrylic, glass, stone, plastic, or ceramic pipes with or without
1514     screens, permanent screens, hashish heads, or punctured metal bowls;
1515          (B) water pipes;

1516          (C) carburetion tubes and devices;
1517          (D) smoking and carburetion masks;
1518          (E) roach clips, meaning objects used to hold burning material, such as a cigarette, that
1519     has become too small or too short to be held in the hand;
1520          (F) chamber pipes;
1521          (G) carburetor pipes;
1522          (H) electric pipes;
1523          (I) air-driven pipes;
1524          (J) chillums;
1525          (K) bongs; and
1526          (L) ice pipes or chillers[; and].
1527          [(ii)] (iii) "Tobacco paraphernalia" does not include matches or lighters.
1528          (2) (a) It is unlawful for [a person] an individual to knowingly, intentionally,
1529     recklessly, or with criminal negligence provide tobacco paraphernalia to an individual under:
1530          (i) beginning July 1, 2020, and ending June 30, 2021, 20 years old; and
1531          (ii) beginning July 1, 2021, 21 years old.
1532          (b) [A person] An individual who violates this section is guilty of a class C
1533     misdemeanor on the first offense and a class B misdemeanor on subsequent offenses.
1534          Section 33. Section 76-10-105 (Effective 07/01/20) is amended to read:
1535          76-10-105 (Effective 07/01/20). Buying or possessing a cigar, a cigarette, an
1536     electronic cigarette product, a nicotine product, or tobacco by a minor -- Penalty --
1537     Compliance officer authority -- Juvenile court jurisdiction.
1538          (1) (a) An individual who is 18 years or older, but younger than the age specified in
1539     Subsection (1)(b), and buys or attempts to buy, accepts, or has in the individual's possession
1540     any cigar, cigarette, electronic cigarette product, nicotine product, or tobacco in any form is
1541     guilty of an infraction and subject to:
1542          (i) a minimum fine or penalty of $60; and
1543          (ii) participation in a court-approved tobacco education or cessation program, which
1544     may include a participation fee.
1545          (b) For purposes of Subsection (1)(a), the individual is younger than:
1546          (i) beginning July 1, 2020, and ending June 30, 2021, 20 years old; and

1547          (ii) beginning July 1, 2021, 21 years old.
1548          (2) (a) An individual under the age of 18 who buys or attempts to buy, accepts, or has
1549     in the individual's possession any cigar, cigarette, electronic cigarette product, nicotine product,
1550     or tobacco in any form is subject to the jurisdiction of the juvenile court and subject to Section
1551     78A-6-602, unless the violation is committed on school property.
1552          (b) If a violation under this section is adjudicated under Section 78A-6-117, the minor
1553     may be subject to the following:
1554          [(a)] (i) a fine or penalty, in accordance with Section 78A-6-117; and
1555          [(b)] (ii) participation in a court-approved tobacco education program, which may
1556     include a participation fee.
1557          (3) (a) A compliance officer appointed by a board of education under Section
1558     53G-4-402 may not issue a citation for a violation of this section committed on school
1559     property.
1560          (b) A cited violation committed on school property shall be addressed in accordance
1561     with Section 53G-8-211.
1562          (4) (a) This section does not apply to the purchase or possession of a cigar, cigarette,
1563     electronic cigarette, tobacco, or tobacco paraphernalia by an individual who is 18 years or older
1564     and is:
1565          (i) on active duty in the United States Armed Forces; or
1566          (ii) a spouse or dependent of an individual who is on active duty in the United States
1567     Armed Forces.
1568          (b) A valid, government-issued military identification card is required to verify proof
1569     of age under Subsection (4)(a).
1570          Section 34. Section 76-10-105.1 (Effective 07/01/20) is amended to read:
1571          76-10-105.1 (Effective 07/01/20). Requirement of direct, face-to-face sale of a
1572     cigarette, tobacco, an electronic cigarette product, or a nicotine product -- Minors not
1573     allowed in tobacco specialty shop -- Penalties.
1574          (1) As used in this section:
1575          (a) "Cigarette" means the same as that term is defined in Section 59-14-102.
1576          (b) (i) "Face-to-face exchange" means a transaction made in person between an
1577     individual and a retailer or retailer's employee.

1578          (ii) "Face-to-face exchange" does not include a sale through a:
1579          (A) vending machine; or
1580          (B) self-service display.
1581          (c) "Retailer" means a person who:
1582          (i) sells a cigarette, tobacco, [or] an electronic cigarette product, or a nicotine product
1583     to an individual for personal consumption; or
1584          (ii) operates a facility with a vending machine that sells a cigarette, tobacco, [or] an
1585     electronic cigarette product, or a nicotine product.
1586          (d) "Self-service display" means a display of a cigarette, tobacco, [or] an electronic
1587     cigarette product, or a nicotine product to which the public has access without the intervention
1588     of a retailer or retailer's employee.
1589          (e) "Tobacco" means any product, except a cigarette, made of or containing tobacco.
1590          (f) "Tobacco specialty shop" means a "retail tobacco specialty business" as that term is
1591     defined:
1592          (i) as it relates to a municipality, in Section 10-8-41.6; and
1593          (ii) as it relates to a county, in Section 17-50-333.
1594          (2) Except as provided in Subsection (3), a retailer may sell a cigarette, tobacco, [or] an
1595     electronic cigarette product, or a nicotine product only in a face-to-face exchange.
1596          (3) The face-to-face sale requirement in Subsection (2) does not apply to:
1597          (a) a mail-order, telephone, or Internet sale made in compliance with Section
1598     59-14-509;
1599          (b) a sale from a vending machine or self-service display that is located in an area of a
1600     retailer's facility:
1601          (i) that is distinct and separate from the rest of the facility; and
1602          (ii) where the retailer only allows an individual who complies with Subsection (4) to be
1603     present; or
1604          (c) a sale at a tobacco specialty shop.
1605          (4) (a) An individual who is less than the age specified in Subsection (4)(b) may not
1606     enter or be present at a tobacco specialty shop unless the individual is:
1607          (i) accompanied by a parent or legal guardian;
1608          (ii) present at the tobacco shop for a bona fide commercial purpose other than to

1609     purchase a cigarette, tobacco, [or] an electronic cigarette product, or a nicotine product; or
1610          (iii) 18 years old or older and an active duty member of the United States Armed
1611     Forces, as demonstrated by a valid, government-issued military identification card.
1612          (b) For purposes of Subsection (4)(a), the individual is younger than:
1613          (i) beginning July 1, 2020, and ending June 30, 2021, 20 years old; and
1614          (ii) beginning July 1, 2021, 21 years old.
1615          (5) A parent or legal guardian who accompanies, under Subsection (4)(a)(i), an
1616     individual into an area described in Subsection (3)(b), or into a tobacco specialty shop, may not
1617     allow the individual to purchase a cigarette, tobacco, [or] an electronic cigarette product, or a
1618     nicotine product.
1619          (6) A violation of Subsection (2) or (4) is a:
1620          (a) class C misdemeanor on the first offense;
1621          (b) class B misdemeanor on the second offense; and
1622          (c) class A misdemeanor on the third and all subsequent offenses.
1623          (7) An individual who violates Subsection (5) is guilty of providing tobacco to a minor
1624     under Section 76-10-104.
1625          (8) (a) An ordinance, regulation, or rule adopted by the governing body of a political
1626     subdivision of the state or by a state agency that affects the sale, minimum age of sale,
1627     placement, or display of [cigarettes] a cigarette, tobacco, [or] an electronic [cigarettes]
1628     cigarette product, or a nicotine product that is not essentially identical to this section and
1629     Section 76-10-102 is superseded.
1630          (b) Subsection (8)(a) does not apply to the adoption or enforcement of a land use
1631     ordinance by a municipal or county government.
1632          Section 35. Section 76-10-111 is amended to read:
1633          76-10-111. Restrictions on sale of smokeless tobacco or electronic cigarette
1634     products -- Exceptions.
1635          (1) The Legislature finds that:
1636          (a) smokeless tobacco, or chewing tobacco, is harmful to the health of individuals who
1637     use those products because research indicates that they may cause mouth or oral cancers;
1638          (b) the use of smokeless tobacco among juveniles in this state is increasing rapidly;
1639          (c) the use of electronic [cigarettes] cigarette products may lead to unhealthy behavior

1640     such as the use of tobacco products; and
1641          (d) it is necessary to restrict the gift of the products described in this Subsection (1) in
1642     the interest of the health of the citizens of this state.
1643          (2) (a) Except as provided in Subsection (3), it is unlawful for a manufacturer,
1644     wholesaler, and retailer to:
1645          (i) give or distribute without charge any smokeless tobacco, chewing tobacco, or
1646     electronic cigarette product in this state[.];
1647          (ii) sell, offer for sale, or furnish any electronic cigarette product at less than 90% of
1648     the cost of the product to the manufacturer, wholesaler, or retailer; or
1649          (iii) give, distribute, sell, offer for sale, or furnish any electronic cigarette product for
1650     free or at a lower price because the recipient of the electronic cigarette product makes another
1651     purchase.
1652          (b) The price that a manufacturer, wholesaler, or retailer may charge under Subsection
1653     (2)(a)(ii) does not include a discount for:
1654          (i) a physical manufacturer coupon:
1655          (A) that is surrendered to the wholesaler or retailer at the time of sale; and
1656          (B) for which the manufacturer will reimburse the wholesaler or the retailer for the full
1657     amount of the discount described in the manufacturer coupon and provided to the purchaser;
1658          (ii) a rebate that will be paid to the manufacturer, the wholesaler, or the retailer for the
1659     full amount of the rebate provided to the purchaser; or
1660          (iii) a promotional fund that will be paid to the manufacturer, the wholesaler, or the
1661     retailer for the full amount of the promotional fund provided to the purchaser.
1662          (c) Any [person] individual who violates this section is guilty of:
1663          (i) a class C misdemeanor for the first offense[, and is guilty of]; or
1664          (ii) a class B misdemeanor for any subsequent offense.
1665          (3) [(a)] Smokeless tobacco, chewing tobacco, or an electronic cigarette product may
1666     be distributed to adults without charge at professional conventions where the general public is
1667     excluded.
1668          [(b) Subsection (2) does not apply to a retailer, manufacturer, or distributor who gives
1669     smokeless tobacco, chewing tobacco, or an electronic cigarette to a person of legal age upon
1670     the person's purchase of another tobacco product or electronic cigarette.]

1671          Section 36. Section 77-39-101 (Effective 07/01/20) is amended to read:
1672          77-39-101 (Effective 07/01/20). Investigation of sales of alcohol, tobacco, and
1673     electronic cigarette products to underage individuals.
1674          (1) As used in this section, "electronic cigarette" [is as] means an electronic cigarette
1675     product as that term is defined in Section 76-10-101.
1676          (2) (a) A peace officer, as defined by Title 53, Chapter 13, Peace Officer
1677     Classifications, may investigate the possible violation of:
1678          (i) Section 32B-4-403 by requesting an individual under 21 years old to enter into and
1679     attempt to purchase or make a purchase of alcohol from a retail establishment; or
1680          (ii) Section 76-10-104 by requesting an individual under the age specified in
1681     Subsection (2)(e) to enter into and attempt to purchase or make a purchase from a retail
1682     establishment of:
1683          (A) a cigar;
1684          (B) a cigarette;
1685          (C) tobacco in any form; or
1686          (D) an electronic cigarette.
1687          (b) A peace officer who is present at the site of a proposed purchase shall direct,
1688     supervise, and monitor the individual requested to make the purchase.
1689          (c) Immediately following a purchase or attempted purchase or as soon as practical the
1690     supervising peace officer shall inform the cashier and the proprietor or manager of the retail
1691     establishment that the attempted purchaser was under the legal age to purchase:
1692          (i) alcohol; or
1693          (ii) (A) a cigar;
1694          (B) a cigarette;
1695          (C) tobacco in any form; or
1696          (D) an electronic cigarette.
1697          (d) If a citation or information is issued, it shall be issued within seven days of the
1698     purchase.
1699          (e) For purposes of Subsection (2)(a)(ii), the individual is younger than:
1700          (i) beginning July 1, 2020, and ending June 30, 2021, 20 years old; and
1701          (ii) beginning July 1, 2021, 21 years old.

1702          (3) (a) If an individual under the age of 18 years old is requested to attempt a purchase,
1703     a written consent of that individual's parent or guardian shall be obtained prior to that
1704     individual participating in any attempted purchase.
1705          (b) An individual requested by the peace officer to attempt a purchase may:
1706          (i) be a trained volunteer; or
1707          (ii) receive payment, but may not be paid based on the number of successful purchases
1708     of alcohol, tobacco, or an electronic cigarette.
1709          (4) The individual requested by the peace officer to attempt a purchase and anyone
1710     accompanying the individual attempting a purchase may not during the attempted purchase
1711     misrepresent the age of the individual by false or misleading identification documentation in
1712     attempting the purchase.
1713          (5) An individual requested to attempt to purchase or make a purchase pursuant to this
1714     section is immune from prosecution, suit, or civil liability for the purchase of, attempted
1715     purchase of, or possession of alcohol, a cigar, a cigarette, tobacco in any form, or an electronic
1716     cigarette if a peace officer directs, supervises, and monitors the individual.
1717          (6) (a) Except as provided in Subsection (6)(b), a purchase attempted under this section
1718     shall be conducted:
1719          (i) on a random basis; and
1720          (ii) within a 12-month period at any one retail establishment location not more often
1721     than:
1722          (A) two times for the attempted purchase of:
1723          (I) a cigar;
1724          (II) a cigarette;
1725          (III) tobacco in any form; or
1726          (IV) an electronic cigarette; and
1727          (B) four times for the attempted purchase of alcohol.
1728          (b) This section does not prohibit an investigation or an attempt to purchase tobacco
1729     under this section if:
1730          (i) there is reasonable suspicion to believe the retail establishment has sold alcohol, a
1731     cigar, a cigarette, tobacco in any form, or an electronic cigarette to an individual under the age
1732     established by Section 32B-4-403 or 76-10-104; and

1733          (ii) the supervising peace officer makes a written record of the grounds for the
1734     reasonable suspicion.
1735          (7) (a) The peace officer exercising direction, supervision, and monitoring of the
1736     attempted purchase shall make a report of the attempted purchase, whether or not a purchase
1737     was made.
1738          (b) The report required by this Subsection (7) shall include:
1739          (i) the name of the supervising peace officer;
1740          (ii) the name of the individual attempting the purchase;
1741          (iii) a photograph of the individual attempting the purchase showing how that
1742     individual appeared at the time of the attempted purchase;
1743          (iv) the name and description of the cashier or proprietor from whom the individual
1744     attempted the purchase;
1745          (v) the name and address of the retail establishment; and
1746          (vi) the date and time of the attempted purchase.
1747          Section 37. Effective date.
1748          This bill takes effect on July 1, 2020.