Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 263 Second Substitute (2023GS)

Sponsor

Sen. Bramble, C.

Final action

Governor Signed 3/23/2023

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• separates electronic cigarette products and nontherapeutic nicotine products from alternative nicotine products with regard to licensing and taxation requirements;
• creates the Electronic Cigarette and Nontherapeutic Nicotine Product Licensing and Taxation Act;
• defines "retail price";
• imposes a tax on the retail price rather than the manufacturer's sale price of electronic cigarettes and nontherapeutic nicotine products;
• requires the retailer to pay the tax on an electronic cigarette product or a nontherapeutic nicotine product;
• adjusts the rate of the tax;
• provides for distribution of tax revenue for electronic cigarette products, nontherapeutic nicotine products, and alternative nicotine products; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

ELECTRONIC CIGARETTE AND OTHER NICOTINE
PRODUCT TAX AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Curtis S. Bramble
House Sponsor: 
____________
LONG TITLE
General Description:
This bill modifies tax provisions in the Electronic Cigarette and Nicotine Product
Taxation and Licensing Act.
Highlighted Provisions:
This bill:
▸ separates electronic cigarette products and nontherapeutic nicotine products from
alternative nicotine products with regard to licensing and taxation requirements;
▸ creates the Electronic Cigarette and Nontherapeutic Nicotine Product Licensing and
Taxation Act;
▸ defines "retail price";
▸ imposes a tax on the retail price rather than the manufacturer's sale price of
electronic cigarettes and nontherapeutic nicotine products;
▸ requires the retailer to pay the tax on an electronic cigarette product or a
nontherapeutic nicotine product;
▸ adjusts the rate of the tax;
▸ provides for distribution of tax revenue for electronic cigarette products,
nontherapeutic nicotine products, and alternative nicotine products; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
10-8-41.6
, as last amended by Laws of Utah 2022, Chapter 255
17-50-333
, as last amended by Laws of Utah 2022, Chapter 255
26-62-102
, as last amended by Laws of Utah 2020, Chapters 302, 347
26-62-206
, as enacted by Laws of Utah 2020, Chapter 347
59-14-801
, as last amended by Laws of Utah 2020, Chapter 347
59-14-802
, as last amended by Laws of Utah 2020, Chapter 347
59-14-803
, as last amended by Laws of Utah 2020, Chapter 347
59-14-804
, as enacted by Laws of Utah 2020, Chapter 347
59-14-805
, as enacted by Laws of Utah 2020, Chapter 347
59-14-806
, as enacted by Laws of Utah 2020, Chapter 347
59-14-807
, as last amended by Laws of Utah 2020, Fifth Special Session, Chapter 20
59-14-808
, as enacted by Laws of Utah 2020, Chapter 347
63I-1-259
, as last amended by Laws of Utah 2022, Chapter 218
ENACTS:
59-14-901
, Utah Code Annotated 1953
59-14-902
, Utah Code Annotated 1953
59-14-903
, Utah Code Annotated 1953
59-14-904
, Utah Code Annotated 1953
59-14-905
, Utah Code Annotated 1953
59-14-906
, Utah Code Annotated 1953
59-14-907
, Utah Code Annotated 1953
59-14-908
, Utah Code Annotated 1953
59-14-909
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
10-8-41.6
 is amended to read:
10-8-41.6.
Regulation of retail tobacco specialty business.
(1) As used in this section:
(a) "Community location" means:
(i) a public or private kindergarten, elementary, middle, junior high, or high school;
(ii) a licensed child-care facility or preschool;
(iii) a trade or technical school;
(iv) a church;
(v) a public library;
(vi) a public playground;
(vii) a public park;
(viii) a youth center or other space used primarily for youth oriented activities;
(ix) a public recreational facility;
(x) a public arcade; or
(xi) for a new license issued on or after July 1, 2018, a homeless shelter.
(b) "Department" means the Department of Health and Human Services created in
Section 
26B-1-201
.
(c) "Electronic cigarette product" means the same as that term is defined in Section
76-10-101
.
(d) "Flavored electronic cigarette product" means the same as that term is defined in
Section 
76-10-101
.
(e) "Licensee" means a person licensed under this section to conduct business as a
retail tobacco specialty business.
(f) "Local health department" means the same as that term is defined in Section
26A-1-102
.
(g) "Nicotine product" means the same as that term is defined in Section 
76-10-101
.
(h) "Retail tobacco specialty business" means a commercial establishment in which:
(i) sales of tobacco products, electronic cigarette products, and nicotine products
account for more than 35% of the total quarterly gross receipts for the establishment;
(ii) 20% or more of the public retail floor space is allocated to the offer, display, or
storage of tobacco products, electronic cigarette products, or nicotine products;
(iii) 20% or more of the total shelf space is allocated to the offer, display, or storage of
tobacco products, electronic cigarette products, or nicotine products;
(iv) the commercial establishment:
(A) holds itself out as a retail tobacco specialty business; and
(B) causes a reasonable person to believe the commercial establishment is a retail
tobacco specialty business;
(v) any flavored electronic cigarette product is sold; or
(vi) the retail space features a self-service display for tobacco products, electronic
cigarette products, or nicotine products.
(i) "Self-service display" means the same as that term is defined in Section
76-10-105.1
.
(j) "Tobacco product" means:
(i) a tobacco product as defined in Section 
76-10-101
; or
(ii) tobacco paraphernalia as defined in Section 
76-10-101
.
(2) The regulation of a retail tobacco specialty business is an exercise of the police
powers of the state by the state or by delegation of the state's police powers to other
governmental entities.
(3) (a) A person may not operate a retail tobacco specialty business in a municipality
unless the person obtains a license from the municipality in which the retail tobacco specialty
business is located.
(b) A municipality may only issue a retail tobacco specialty business license to a
person if the person complies with the provisions of Subsections (4) and (5).
(4) (a) Except as provided in Subsection (7), a municipality may not issue a license for
a person to conduct business as a retail tobacco specialty business if the retail tobacco specialty
business is located within:
(i) 1,000 feet of a community location;
(ii) 600 feet of another retail tobacco specialty business; or
(iii) 600 feet from property used or zoned for:
(A) agriculture use; or
(B) residential use.
(b) For purposes of Subsection (4)(a), the proximity requirements shall be measured in
a straight line from the nearest entrance of the retail tobacco specialty business to the nearest
property boundary of a location described in Subsections (4)(a)(i) through (iii), without regard
to intervening structures or zoning districts.
(5) A municipality may not issue or renew a license for a person to conduct business as
a retail tobacco specialty business until the person provides the municipality with proof that the
retail tobacco specialty business has:
(a) a valid permit for a retail tobacco specialty business issued under Title 26, Chapter
62, Tobacco, Electronic Cigarette, and Nicotine Product Retail Permit, by the local health
department having jurisdiction over the area in which the retail tobacco specialty business is
located; and
(b) (i) for a retailer that sells a tobacco product, a valid license issued by the State Tax
Commission in accordance with Section 
59-14-201
 or 
59-14-301
 to sell a tobacco product; and
(ii) for a retailer that sells an electronic cigarette product or a nicotine product, a valid
license issued by the State Tax Commission in accordance with Section 
59-14-803
or
59-14-902
 to sell an electronic cigarette product or a nicotine product.
(6) (a) Nothing in this section:
(i) requires a municipality to issue a retail tobacco specialty business license; or
(ii) prohibits a municipality from adopting more restrictive requirements on a person
seeking a license or renewal of a license to conduct business as a retail tobacco specialty
business.
(b) A municipality may suspend or revoke a retail tobacco specialty business license
issued under this section:
(i) if a licensee engages in a pattern of unlawful activity under Title 76, Chapter 10,
Part 16, Pattern of Unlawful Activity Act;
(ii) if a licensee violates federal law or federal regulations restricting the sale and
distribution of tobacco products or electronic cigarette products to protect children and
adolescents;
(iii) upon the recommendation of the department or a local health department under
Title 26, Chapter 62, Tobacco, Electronic Cigarette, and Nicotine Product Retail Permit; or
(iv) under any other provision of state law or local ordinance.
(7) (a) A retail tobacco specialty business is exempt from Subsection (4) if:
(i) on or before December 31, 2018, the retail tobacco specialty business was issued a
license to conduct business as a retail tobacco specialty business;
(ii) the retail tobacco specialty business is operating in a municipality in accordance
with all applicable laws except for the requirement in Subsection (4); and
(iii) beginning July 1, 2022, the retail tobacco specialty business is not located within
1,000 feet of a public or private kindergarten, elementary, middle, junior high, or high school.
(b) A retail tobacco specialty business may maintain an exemption under Subsection
(7)(a) if:
(i) the license described in Subsection (7)(a)(i) is renewed continuously without lapse
or permanent revocation;
(ii) the retail tobacco specialty business does not close for business or otherwise
suspend the sale of tobacco products, electronic cigarette products, or nicotine products for
more than 60 consecutive days;
(iii) the retail tobacco specialty business does not substantially change the business
premises or business operation; and
(iv) the retail tobacco specialty business maintains the right to operate under the terms
of other applicable laws, including:
(A) Title 26, Chapter 38, Utah Indoor Clean Air Act;
(B) zoning ordinances;
(C) building codes; and
(D) the requirements of the license described in Subsection (7)(a)(i).
(c) A retail tobacco specialty business that does not qualify for an exemption under
Subsection (7)(a) is exempt from Subsection (4) if:
(i) on or before December 31, 2018, the retail tobacco specialty business was issued a
general tobacco retailer permit or a retail tobacco specialty business permit under Title 26,
Chapter 62, Tobacco, Electronic Cigarette, and Nicotine Product Retail Permit, by the local
health department having jurisdiction over the area in which the retail tobacco specialty
business is located;
(ii) the retail tobacco specialty business is operating in the municipality in accordance
with all applicable laws except for the requirement in Subsection (4); and
(iii) beginning July 1, 2022, the retail tobacco specialty business is not located within
1,000 feet of a public or private kindergarten, elementary, middle, junior high, or high school.
(d) Except as provided in Subsection (7)(e), a retail tobacco specialty business may
maintain an exemption under Subsection (7)(c) if:
(i) on or before December 31, 2020, the retail tobacco specialty business receives a
retail tobacco specialty business permit from the local health department having jurisdiction
over the area in which the retail tobacco specialty business is located;
(ii) the permit described in Subsection (7)(d)(i) is renewed continuously without lapse
or permanent revocation;
(iii) the retail tobacco specialty business does not close for business or otherwise
suspend the sale of tobacco products, electronic cigarette products, or nicotine products for
more than 60 consecutive days;
(iv) the retail tobacco specialty business does not substantially change the business
premises or business operation as the business existed when the retail tobacco specialty
business received a permit under Subsection (7)(d)(i); and
(v) the retail tobacco specialty business maintains the right to operate under the terms
of other applicable laws, including:
(A) Title 26, Chapter 38, Utah Indoor Clean Air Act;
(B) zoning ordinances;
(C) building codes; and
(D) the requirements of the retail tobacco permit described in Subsection (7)(d)(i).
(e) A retail tobacco specialty business described in Subsection (7)(a) or (b) that is
located within 1,000 feet of a public or private kindergarten, elementary, middle, junior high,
or high school before July 1, 2022, is exempt from Subsection (4)(a)(iii)(B) if the retail tobacco
specialty business:
(i) relocates, before July 1, 2022, to a property that is used or zoned for commercial use
and located within a group of architecturally unified commercial establishments built on a site
that is planned, developed, owned, and managed as an operating unit; and
(ii) continues to meet the requirements described in Subsection (7)(b) that are not
directly related to the relocation described in this Subsection (7)(e).
Section 2. Section 
17-50-333
 is amended to read:
17-50-333.
Regulation of retail tobacco specialty business.
(1) As used in this section:
(a) "Community location" means:
(i) a public or private kindergarten, elementary, middle, junior high, or high school;
(ii) a licensed child-care facility or preschool;
(iii) a trade or technical school;
(iv) a church;
(v) a public library;
(vi) a public playground;
(vii) a public park;
(viii) a youth center or other space used primarily for youth oriented activities;
(ix) a public recreational facility;
(x) a public arcade; or
(xi) for a new license issued on or after July 1, 2018, a homeless shelter.
(b) "Department" means the Department of Health and Human Services created in
Section 
26B-1-201
.
(c) "Electronic cigarette product" means the same as that term is defined in Section
76-10-101
.
(d) "Flavored electronic cigarette product" means the same as that term is defined in
Section 
76-10-101
.
(e) "Licensee" means a person licensed under this section to conduct business as a
retail tobacco specialty business.
(f) "Local health department" means the same as that term is defined in Section
26A-1-102
.
(g) "Nicotine product" means the same as that term is defined in Section 
76-10-101
.
(h) "Retail tobacco specialty business" means a commercial establishment in which:
(i) sales of tobacco products, electronic cigarette products, and nicotine products
account for more than 35% of the total quarterly gross receipts for the establishment;
(ii) 20% or more of the public retail floor space is allocated to the offer, display, or
storage of tobacco products, electronic cigarette products, or nicotine products;
(iii) 20% or more of the total shelf space is allocated to the offer, display, or storage of
tobacco products, electronic cigarette products, or nicotine products;
(iv) the commercial establishment:
(A) holds itself out as a retail tobacco specialty business; and
(B) causes a reasonable person to believe the commercial establishment is a retail
tobacco specialty business;
(v) any flavored electronic cigarette product is sold; or
(vi) the retail space features a self-service display for tobacco products, electronic
cigarette products, or nicotine products.
(i) "Self-service display" means the same as that term is defined in Section
76-10-105.1
.
(j) "Tobacco product" means:
(i) the same as that term is defined in Section 
76-10-101
; or
(ii) tobacco paraphernalia as defined in Section 
76-10-101
.
(2) The regulation of a retail tobacco specialty business is an exercise of the police
powers of the state by the state or by the delegation of the state's police power to other
governmental entities.
(3) (a) A person may not operate a retail tobacco specialty business in a county unless
the person obtains a license from the county in which the retail tobacco specialty business is
located.
(b) A county may only issue a retail tobacco specialty business license to a person if
the person complies with the provisions of Subsections (4) and (5).
(4) (a) Except as provided in Subsection (7), a county may not issue a license for a
person to conduct business as a retail tobacco specialty business if the retail tobacco specialty
business is located within:
(i) 1,000 feet of a community location;
(ii) 600 feet of another retail tobacco specialty business; or
(iii) 600 feet from property used or zoned for:
(A) agriculture use; or
(B) residential use.
(b) For purposes of Subsection (4)(a), the proximity requirements shall be measured in
a straight line from the nearest entrance of the retail tobacco specialty business to the nearest
property boundary of a location described in Subsections (4)(a)(i) through (iii), without regard
to intervening structures or zoning districts.
(5) A county may not issue or renew a license for a person to conduct business as a
retail tobacco specialty business until the person provides the county with proof that the retail
tobacco specialty business has:
(a) a valid permit for a retail tobacco specialty business issued under Title 26, Chapter
62, Tobacco, Electronic Cigarette, and Nicotine Product Retail Permit, by the local health
department having jurisdiction over the area in which the retail tobacco specialty business is
located; and
(b) (i) for a retailer that sells a tobacco product, a valid license issued by the State Tax
Commission in accordance with Section 
59-14-201
 or 
59-14-301
 to sell a tobacco product; or
(ii) for a retailer that sells an electronic cigarette product or a nicotine product, a valid
license issued by the State Tax Commission in accordance with Section 
59-14-803
or
59-14-902
 to sell an electronic cigarette product or a nicotine product.
(6) (a) Nothing in this section:
(i) requires a county to issue a retail tobacco specialty business license; or
(ii) prohibits a county from adopting more restrictive requirements on a person seeking
a license or renewal of a license to conduct business as a retail tobacco specialty business.
(b) A county may suspend or revoke a retail tobacco specialty business license issued
under this section:
(i) if a licensee engages in a pattern of unlawful activity under Title 76, Chapter 10,
Part 16, Pattern of Unlawful Activity Act;
(ii) if a licensee violates federal law or federal regulations restricting the sale and
distribution of tobacco products or electronic cigarette products to protect children and
adolescents;
(iii) upon the recommendation of the department or a local health department under
Title 26, Chapter 62, Tobacco, Electronic Cigarette, and Nicotine Product Retail Permit; or
(iv) under any other provision of state law or local ordinance.
(7) (a) Except as provided in Subsection (7)(e), a retail tobacco specialty business is
exempt from Subsection (4) if:
(i) on or before December 31, 2018, the retail tobacco specialty business was issued a
license to conduct business as a retail tobacco specialty business;
(ii) the retail tobacco specialty business is operating in a county in accordance with all
applicable laws except for the requirement in Subsection (4); and
(iii) beginning July 1, 2022, the retail tobacco specialty business is not located within
1,000 feet of a public or private kindergarten, elementary, middle, junior high, or high school.
(b) A retail tobacco specialty business may maintain an exemption under Subsection
(7)(a) if:
(i) the license described in Subsection (7)(a)(i) is renewed continuously without lapse
or permanent revocation;
(ii) the retail tobacco specialty business does not close for business or otherwise
suspend the sale of tobacco products, electronic cigarette products, or nicotine products for
more than 60 consecutive days;
(iii) the retail tobacco specialty business does not substantially change the business
premises or business operation; and
(iv) the retail tobacco specialty business maintains the right to operate under the terms
of other applicable laws, including:
(A) Title 26, Chapter 38, Utah Indoor Clean Air Act;
(B) zoning ordinances;
(C) building codes; and
(D) the requirements of the license described in Subsection (7)(a)(i).
(c) A retail tobacco specialty business that does not qualify for an exemption under
Subsection (7)(a) is exempt from Subsection (4) if:
(i) on or before December 31, 2018, the retail tobacco specialty business was issued a
general tobacco retailer permit or a retail tobacco specialty business permit under Title 26,
Chapter 62, Tobacco, Electronic Cigarette, and Nicotine Product Retail Permit, by the local
health department having jurisdiction over the area in which the retail tobacco specialty
business is located;
(ii) the retail tobacco specialty business is operating in the county in accordance with
all applicable laws except for the requirement in Subsection (4); and
(iii) beginning July 1, 2022, the retail tobacco specialty business is not located within
1,000 feet of a public or private kindergarten, elementary, middle, junior high, or high school.
(d) A retail tobacco specialty business may maintain an exemption under Subsection
(7)(c) if:
(i) on or before December 31, 2020, the retail tobacco specialty business receives a
retail tobacco specialty business permit from the local health department having jurisdiction
over the area in which the retail tobacco specialty business is located;
(ii) the permit described in Subsection (7)(d)(i) is renewed continuously without lapse
or permanent revocation;
(iii) the retail tobacco specialty business does not close for business or otherwise
suspend the sale of tobacco products, electronic cigarette products, or nicotine products for
more than 60 consecutive days;
(iv) the retail tobacco specialty business does not substantially change the business
premises or business operation as the business existed when the retail tobacco specialty
business received a permit under Subsection (7)(d)(i); and
(v) the retail tobacco specialty business maintains the right to operate under the terms
of other applicable laws, including:
(A) Title 26, Chapter 38, Utah Indoor Clean Air Act;
(B) zoning ordinances;
(C) building codes; and
(D) the requirements of the retail tobacco permit described in Subsection (7)(d)(i).
(e) A retail tobacco specialty business described in Subsection (7)(a) or (b) that is
located within 1,000 feet of a public or private kindergarten, elementary, middle, junior high,
or high school before July 1, 2022, is exempt from Subsection (4)(a)(iii)(B) if the retail tobacco
specialty business:
(i) relocates, before July 1, 2022, to a property that is used or zoned for commercial use
and located within a group of architecturally unified commercial establishments built on a site
that is planned, developed, owned, and managed as an operating unit; and
(ii) continues to meet the requirements described in Subsection (7)(b) that are not
directly related to the relocation described in this Subsection (7)(e).
Section 3. Section 
26-62-102
 is amended to read:
26-62-102.
Definitions.
As used in this chapter:
(1) "Community location" means the same as that term is defined:
(a) as it relates to a municipality, in Section 
10-8-41.6
; and
(b) as it relates to a county, in Section 
17-50-333
.
(2) "Electronic cigarette product" means the same as that term is defined in Section
76-10-101
.
(3) "Employee" means an employee of a tobacco retailer.
(4) "Enforcing agency" means the state Department of Health, or any local health
department enforcing the provisions of this chapter.
(5) "General tobacco retailer" means a tobacco retailer that is not a retail tobacco
specialty business.
(6) "Local health department" means the same as that term is defined in Section
26A-1-102
.
(7) "Nicotine product" means the same as that term is defined in Section 
76-10-101
.
(8) "Owner" means a person holding a 20% ownership interest in the business that is
required to obtain a permit under this chapter.
(9) "Permit" means a tobacco retail permit issued under this chapter.
(10) (a) "Proof of age" means:
(i) a valid identification card issued under Title 53, Chapter 3, Part 8, Identification
Card Act;
(ii) a valid identification that:
(A) is substantially similar to an identification card issued under Title 53, Chapter 3,
Part 8, Identification Card Act;
(B) is issued in accordance with the laws of a state other than Utah in which the
identification is issued;
(C) includes date of birth; and
(D) has a picture affixed;
(iii) a valid driver license certificate that is issued under Title 53, Chapter 3, Uniform
Driver License Act, or in accordance with the laws of the state in which the valid driver license
is issued;
(iv) a valid United States military identification card that:
(A) includes date of birth; and
(B) has a picture affixed; or
(v) a valid passport.
(b) "Proof of age" does not include a valid driving privilege card issued in accordance
with Section 
53-3-207
.
(11) "Retail tobacco specialty business" means the same as that term is defined:
(a) as it relates to a municipality, in Section 
10-8-41.6
; and
(b) as it relates to a county, in Section 
17-50-333
.
(12) "Tax commission license" means a license issued by the State Tax Commission
under:
(a) Section 
59-14-201
 to sell a cigarette at retail;
(b) Section 
59-14-301
 to sell a tobacco product at retail; [
or
]
(c) Section 
59-14-803
 to sell an [
electronic cigarette product or a
] 
alternative
 nicotine
product[
.
]
; or
(d) Section 
59-14-902
 to sell an electronic cigarette product or a nontherapeutic
nicotine product.
(13) "Tobacco product" means:
(a) a tobacco product as defined in Section 
76-10-101
; or
(b) tobacco paraphernalia as defined in Section 
76-10-101
.
(14) "Tobacco retailer" means a person that is required to obtain a tax commission
license.
Section 4. Section 
26-62-206
 is amended to read:
26-62-206.
Requirements for the sale of tobacco product, electronic cigarette
product, or nicotine product.
(1) A tobacco retailer shall:
(a) provide the customer with an itemized receipt for each sale of a tobacco product, an
electronic cigarette product, or a nicotine product that separately identifies:
(i) the name of the tobacco product, the electronic cigarette product, or the nicotine
product;
(ii) the amount charged for each tobacco product, electronic cigarette product, or
nicotine product; and
(iii) the date and time of the sale; and
(b) maintain an itemized transaction log for each sale of a tobacco product, an
electronic cigarette product, or a nicotine product that separately identifies:
(i) the name of the tobacco product, the electronic cigarette product, or the nicotine
product;
(ii) the amount charged for each tobacco product, electronic cigarette product, or
nicotine product; and
(iii) the date and time of the sale.
(2) The itemized transaction log described in Subsection (1)(b) shall be:
(a) maintained for at least one year after the date of each transaction in the itemized
transaction log;
(b) made available to an enforcing agency or a peace officer at the request of the
enforcing agency or the peace officer; and
(c) in addition to any documentation required under Section 
59-1-1406
 [
and
]
,
Subsection 
59-14-805
(2)
, and Subsection 
59-14-907
(4)
.
Section 5. Section 
59-14-801
 is amended to read:
Part 8. Alternative Nicotine Product Licensing and Taxation Act
59-14-801.
Title.
This part is known as the [
"Electronic Cigarette Product and
] 
"Alternative
 Nicotine
Product Licensing and Taxation Act."
Section 6. Section 
59-14-802
 is amended to read:
59-14-802.
Definitions.
As used in this part:
(1) "Licensee" means a person that holds a valid license to sell an [
electronic cigarette
product or a
] 
alternative
 nicotine product.
(2) (a) "Manufacturer's sales price" means the amount that the manufacturer [
of an
electronic cigarette substance, a prefilled electronic cigarette, an alternative nicotine product, a
nontherapeutic nicotine device substance, or a prefilled nontherapeutic nicotine device
] charges
after subtracting a discount.
(b) "Manufacturer's sales price" includes an original Utah destination freight charge,
regardless of:
(i) whether the [
electronic cigarette substance, prefilled electronic cigarette, alternative
nicotine product, nontherapeutic nicotine device substance, or prefilled nontherapeutic nicotine
device
] 
packaged product
 is shipped f.o.b. origin or f.o.b. destination; or
(ii) who pays the original Utah destination freight charge.
Section 7. Section 
59-14-803
 is amended to read:
59-14-803.
License to sell an alternative nicotine product.
(1) A person may not sell, offer to sell, or distribute an [
electronic cigarette product or
a
] 
alternative
 nicotine product in this state without first:
(a) except as provided in Subsection (2), obtaining a license from the commission
under this section to sell an [
electronic cigarette product or a
] 
alternative
 nicotine product; and
(b) complying with any bonding requirement described in Subsection (5).
(2) A person that holds a valid license to sell cigarettes under Section 
59-14-201
 or a
person that holds a valid license to sell tobacco products under Section 
59-14-301
 may, without
obtaining a separate license in accordance with this section, sell, offer to sell, or distribute an
[
electronic cigarette product or a
] 
alternative
 nicotine product in this state.
(3) The commission shall issue a license to sell an [
electronic cigarette product or a
]
alternative
 nicotine product to a person that submits an application, on a form created by the
commission, that includes:
(a) the person's name;
(b) the address of the facility where the person will sell an [
electronic cigarette product
or a
] 
alternative
 nicotine product; and
(c) any other information the commission requires to implement this chapter.
(4) A license described in Subsection (3) is:
(a) valid only at one fixed business address;
(b) valid for three years;
(c) valid only for a physical location; and
(d) renewable if a licensee meets the criteria for licensing described in Subsection (3).
(5) (a) The commission shall require a manufacturer, jobber, distributor, wholesaler, or
retailer that is responsible under this part for the collection of tax on [
an electronic cigarette
substance, a prefilled electronic cigarette,
] an alternative nicotine product[
, a nontherapeutic
nicotine device substance, or a prefilled nontherapeutic nicotine device
] to post a bond.
(b) The manufacturer, jobber, distributor, wholesaler, or retailer may post the bond
required by Subsection (5)(a) in combination with any bond required by Section 
59-14-201
 or
59-14-301
.
(c) Subject to Subsection (5)(d), the commission shall determine the form and amount
of the bond.
(d) The minimum amount of the bond shall be:
(i) except as provided in Subsection (5)(d)(ii) or (iii), $500;
(ii) if the manufacturer, jobber, distributor, wholesaler, or retailer posts the bond
required by Subsection (5)(a) in combination with a bond required by either Section 
59-14-201
or 
59-14-301
, $1,000; or
(iii) if the manufacturer, jobber, distributor, wholesaler, or retailer posts the bond
required by Subsection (5)(a) in combination with a bond required by both Sections 
59-14-201
and 
59-14-301
, $1,500.
(6) The commission may make rules in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act, to establish the additional information described in
Subsection (3)(c) that a person shall provide in the application described in Subsection (3).
(7) It is a class B misdemeanor for a person to violate Subsection (1).
(8) The commission may not charge a fee for a license under this section.
Section 8. Section 
59-14-804
 is amended to read:
59-14-804.
Taxation of alternative nicotine product.
[
(1) (a) Beginning on July 1, 2020, a tax is imposed upon the following:
]
[
(i) an electronic cigarette substance; and
]
[
(ii) a prefilled electronic cigarette.
]
[
(b) Beginning on July 1, 2021, a tax is imposed upon the following:
]
[
(i) a nontherapeutic nicotine device substance; and
]
[
(ii) a prefilled nontherapeutic nicotine device.
]
[
(c) Beginning on July 1, 2021, a
]
(1) A
 tax is imposed upon an alternative nicotine product.
[
(2) (a) The amount of tax imposed under Subsections (1)(a) and (b) is .56 multiplied
by the manufacturer's sales price.
]
[
(b) (i)
] 
(2) (a)
 The tax under Subsection [
(1)(c)
] 
(1)
 on an alternative nicotine product
is imposed:
[
(A)
] 
(i)
 at a rate of $1.83 per ounce; and
[
(B)
] 
(ii)
 on the basis of the net weight of the alternative nicotine product as listed by
the manufacturer.
[
(ii)
] 
(b)
 If the net weight of the alternative nicotine product is in a quantity that is a
fractional part of one ounce, a proportionate amount of the tax described in Subsection
[
(2)(b)(i)(A)
] 
(2)(a)(i)
 is imposed:
[
(A)
] 
(i)
 on that fractional part of one ounce; and
[
(B)
] 
(ii)
 in accordance with rules made by the commission in accordance with Title
63G, Chapter 3, Utah Administrative Rulemaking Act.
(3) If a product is sold in the same package as a product that is taxed under Subsection
(1), the tax described in Subsection (2) shall apply to the [
wholesale
] manufacturer's sale price
of the entire packaged product.
(4) (a) A manufacturer, jobber, distributor, wholesaler, retailer, consumer, or user shall
pay the tax levied under Subsection (1) at the time that [
an electronic cigarette substance, a
prefilled electronic cigarette,
] an alternative nicotine product[
, a nontherapeutic nicotine device
substance, or a prefilled nontherapeutic nicotine device
] is first received in the state.
(b) A manufacturer, jobber, distributor, wholesaler, retailer, consumer, or user may not
resell [
an electronic cigarette substance, a prefilled electronic cigarette,
] an alternative nicotine
product[
, a nontherapeutic nicotine device substance, or a prefilled nontherapeutic nicotine
device
] to another distributor, another retailer, or a consumer before paying the tax levied under
Subsection (1).
(5) (a) The manufacturer, jobber, distributor, wholesaler, retailer, consumer, or user
shall remit the taxes collected in accordance with this section to the commission.
(b) The commission shall deposit [
revenues
] 
revenue
 generated by the tax imposed by
this section into the Electronic Cigarette Substance and Nicotine Product Tax Restricted
Account created in Section 
59-14-807
.
Section 9. Section 
59-14-805
 is amended to read:
59-14-805.
Remittance of tax -- Returns -- Invoice required -- Filing
requirement-- Exception -- Penalty -- Overpayment.
(1) (a) The manufacturer, jobber, distributor, wholesaler, retailer, consumer, or user
that collects the tax imposed on [
an electronic cigarette substance, a prefilled electronic
cigarette,
] an alternative nicotine product[
, a nontherapeutic nicotine device substance, or a
prefilled nontherapeutic nicotine device
] shall remit to the commission, in an electronic format
approved by the commission:
(i) the tax collected in the previous calendar quarter; and
(ii) the quarterly tax return.
(b) The tax collected and the return are due on or before the last day of April, July,
October, and January.
(2) (a) A manufacturer, jobber, distributor, wholesaler, retailer, or any other person
selling [
an electronic cigarette substance, a prefilled electronic cigarette,
] an alternative
nicotine product[
, a nontherapeutic nicotine device substance, or a prefilled nontherapeutic
nicotine device
] to a person other than the ultimate consumer shall furnish the purchaser with
an itemized invoice showing:
(i) the seller's name and address;
(ii) the name and address of the purchaser;
(iii) the date of sale;
(iv) the name and price of the product; and
(v) the discount, if any.
(b) The invoice shall show whether the price includes the tax.
(c) The seller and the purchaser shall retain copies of the invoice and make the invoice
available for inspection at the request of the commission or the commission's agent for a period
of three years following the sale.
(3) (a) A consumer that purchases an untaxed [
electronic cigarette substance, prefilled
electronic cigarette,
] alternative nicotine product[
, nontherapeutic nicotine device substance, or
prefilled nontherapeutic nicotine device
] for use or other consumption shall:
(i) file with the commission, on forms prescribed by the commission, a statement
showing the quantity and description of the item subject to tax under this part; and
(ii) pay the tax imposed by this part on that item.
(b) The consumer shall file the statement described in Subsection (3)(a) and pay the tax
due on or before the last day of the month immediately following the month during which the
consumer purchased an untaxed [
electronic cigarette substance, prefilled electronic cigarette,
]
alternative nicotine [
device substance, nontherapeutic nicotine product, or prefilled
nontherapeutic nicotine device
] 
product
.
(c) A consumer shall maintain records necessary to determine the amount of tax the
consumer is liable to pay under this part for a period of three years following the date on which
the statement required by this section was filed.
(4) A tourist who imports an untaxed [
electronic cigarette substance, a prefilled
electronic cigarette, an
] alternative nicotine product[
, a nontherapeutic nicotine device
substance, or a prefilled nontherapeutic nicotine device
] into the state does not need to file the
statement described in Subsection (3) or pay the tax if the item is for the tourist's own use or
consumption while in this state.
(5) In addition to the tax required by this part, a person shall pay a penalty as provided
in Section 
59-1-401
, plus interest at the rate and in the manner prescribed in Section 
59-1-402
,
if a person subject to this section fails to:
(a) pay the tax prescribed by this part;
(b) pay the tax on time; or
(c) file a return required by this part.
(6) An overpayment of a tax imposed by this part shall accrue interest at the rate and in
the manner prescribed in Section 
59-1-402
.
Section 10. Section 
59-14-806
 is amended to read:
59-14-806.
Refund of taxes paid -- Exemption for exported alternative nicotine
products.
(1) When [
an electronic cigarette substance, a prefilled electronic cigarette,
] an
alternative nicotine product[
, a nontherapeutic nicotine device substance, or a prefilled
nontherapeutic nicotine device
] taxed under this chapter is sold and shipped to a regular dealer
in those articles in another state, the seller in this state shall be entitled to a refund of the actual
amount of the taxes paid, upon condition that the seller in this state:
(a) is a licensed dealer;
(b) signs an affidavit that [
the electronic cigarette substance, the prefilled electronic
cigarette,
] the alternative nicotine product[
, the nontherapeutic nicotine device substance, or the
prefilled nontherapeutic nicotine device
] was sold and shipped to a regular dealer in those
articles in another state;
(c) furnishes, from the purchaser, a written acknowledgment that the purchaser has
received [
the electronic cigarette substance, the prefilled electronic cigarette,
] the alternative
nicotine product[
, the nontherapeutic nicotine device substance, or the prefilled nontherapeutic
nicotine device
]; and
(d) reports the name and address of the purchaser.
(2) A wholesaler or distributor in this state that exports [
an electronic cigarette
substance, a prefilled electronic cigarette,
] an alternative nicotine product[
, a nontherapeutic
nicotine device substance, or a prefilled nontherapeutic nicotine device
] to a regular dealer in
those articles in another state shall be exempt from the payment of any tax under this chapter
upon furnishing proof of the sale and exportation as the commission may require.
Section 11. Section 
59-14-807
 is amended to read:
59-14-807.
Electronic Cigarette Substance and Nicotine Product Tax Restricted
Account.
(1) There is created within the General Fund a restricted account known as the
"Electronic Cigarette Substance and Nicotine Product Tax Restricted Account."
(2) The Electronic Cigarette Substance and Nicotine Product Tax Restricted Account
consists of:
(a) [
revenues
] 
revenue
 collected from the tax imposed by [
Section
] 
Sections
59-14-804
and 
59-14-903
; and
(b) amounts appropriated by the Legislature.
(3) 
(a)
 For each fiscal year[
, beginning with fiscal year 2021
], and subject to
appropriation by the Legislature, the Division of Finance shall distribute from the Electronic
Cigarette Substance and Nicotine Product Tax Restricted Account:
[
(a)
] 
(i)
 $2,000,000
,
 which shall be allocated to the local health departments by the
Department of Health using the formula created in accordance with Section 
26A-1-116
;
[
(b)
] 
(ii)
 $2,000,000 to the Department of Health for statewide cessation programs and
prevention education;
[
(c)
] 
(iii)
 $1,180,000 to the Department of Public Safety for law enforcement officers
aimed at disrupting organizations and networks that provide tobacco products, electronic
cigarette products, nicotine products, and other illegal controlled substances to minors;
[
(d)
] 
(iv)
 $3,000,000
,
 which shall be allocated to the local health departments by the
Department of Health using the formula created in accordance with Section 
26A-1-116
;
[
(e)
] 
(v)
 $5,084,200 to the State Board of Education for school-based prevention
programs; and
[
(f)
] 
(vi)
 $2,000,000 to the Department of Health for alcohol, tobacco, and other drug
prevention, reduction, cessation, and control programs that promote unified messages and
make use of media outlets, including radio, newspaper, billboards, and television.
(b) If the amount in the Electronic Cigarette Substance and Nicotine Product Tax
Restricted Account is insufficient to cover the distributions described in Subsection (3)(a), the
distribution amounts shall be adjusted proportionately.
(4) (a) The local health departments shall use the money received in accordance with
Subsection (3)(a) for enforcing:
(i) the regulation provisions described in Section 
26-57-103
;
(ii) the labeling requirement described in Section 
26-57-104
; and
(iii) the penalty provisions described in Section 
26-62-305
.
(b) The Department of Health shall use the money received in accordance with
Subsection [
(3)(b)
] 
(3)(a)(ii)
 for the Youth Electronic Cigarette, Marijuana, and Other Drug
Prevention Program created in Section 
26-7-10
.
(c) The local health departments shall use the money received in accordance with
Subsection [
(3)(d)
] 
(3)(a)(iv)
 to issue grants under the Electronic Cigarette, Marijuana, and
Other Drug Prevention Grant Program created in Section 
26A-1-129
.
(d) The State Board of Education shall use the money received in accordance with
Subsection [
(3)(e)
] 
(3)(a)(v)
 to distribute to local education agencies to pay for:
(i) stipends for positive behaviors specialists as described in Subsection
53G-10-407
(4)(a)(i);
(ii) the cost of administering the positive behaviors plan as described in Subsection
53G-10-407
(4)(a)(ii); and
(iii) the cost of implementing an Underage Drinking and Substance Abuse Prevention
Program in grade 4 or 5, as described in Subsection 
53G-10-406
(3)(b).
(5) (a) The fund shall earn interest.
(b) All interest earned on fund money shall be deposited into the fund.
(6) Subject to legislative appropriations, funds remaining in the Electronic Cigarette
Substance and Nicotine Product Tax Restricted Account after the distribution described in
Subsection (3) may only be used for programs and activities related to the prevention and
cessation of electronic cigarette, nicotine products, marijuana, and other drug use.
Section 12. Section 
59-14-808
 is amended to read:
59-14-808.
Restrictions on mail order or Internet sales.
(1) [
For purposes of
] 
As used in
 this section:
(a) "Distributor" means a person, wherever residing or located, [
who
] 
that
:
(i) is licensed in this state to purchase a non-taxed 
alternative
 nicotine product [
or a
non-taxed electronic cigarette product
]; and
(ii) stores, sells, or otherwise disposes of [
a
] 
an alternative
 nicotine product [
or an
electronic cigarette product
].
(b) "Licensed person" means the same as that term is defined in Section 
59-14-409
.
(c) "Order or purchase" [
includes
] 
means
:
(i) by mail or delivery service;
(ii) through the Internet or computer network;
(iii) by telephone; or
(iv) through some other electronic method.
(d) "Retailer" means any person [
who
] 
that
 sells a nicotine product or an electronic
cigarette product to consumers for personal consumption.
(2) A person, distributor, manufacturer, or retailer [
shall
] 
may
 not:
(a) cause [
a
] 
an alternative
 nicotine product [
or an electronic cigarette product
] to be
ordered or purchased by anyone other than a licensed person; or
(b) knowingly provide substantial assistance to a person [
who
] 
that
 violates this
section.
(3) (a) Each order or purchase of [
a
] 
an alternative
 nicotine product [
or an electronic
cigarette product
] in violation of Subsection (2) constitutes a separate violation under this
section.
(b) In addition to the penalties in Subsection (4), a person [
who
] 
that
 violates this
section is subject to:
(i) a civil penalty in an amount not to exceed $5,000 for each violation of this section;
(ii) an injunction to restrain a threatened or actual violation of this section; and
(iii) recovery by the state for:
(A) the costs of investigation;
(B) the cost of expert witness fees;
(C) the cost of the action; and
(D) reasonable attorney's fees.
(4) A person [
who
] 
that
 knowingly violates this section has engaged in an unfair and
deceptive trade practice in violation of Title 13, Chapter 5, Unfair Practices Act, and the court
shall order any profits, gain, gross receipts, or other benefit from the violation to be disgorged
and paid to the state treasurer for deposit [
in
] 
into
 the General Fund.
Section 13. Section 
59-14-901
 is enacted to read:
Part 9. Electronic Cigarette and Nontherapeutic Nicotine Product Licensing and
Taxation Act
 59-14-901.
Definitions.
(1) "Licensee" means a person that holds a valid license to sell an electronic cigarette
product or a nontherapeutic nicotine product.
(2) "Retail price" means the amount charged by a retailer for an electronic cigarette
substance, a prefilled electronic cigarette, a nontherapeutic nicotine device substance, or a
prefilled nontherapeutic nicotine device.
Section 14. Section 
59-14-902
 is enacted to read:
 59-14-902.
License to sell electronic cigarette product or nontherapeutic nicotine
product.
(1) A person may not sell, offer to sell, or distribute an electronic cigarette product or a
nontherapeutic nicotine product in this state without first obtaining a license from the
commission under this section to sell an electronic cigarette product or a nontherapeutic
nicotine product.
(2) The commission shall issue a license to sell an electronic cigarette product or a
nontherapeutic nicotine product to a person that submits an application, on a form created by
the commission, that includes:
(a) the person's name;
(b) the address of the location permitted under Section 
26-62-201
 where the person
will sell an electronic cigarette product or a nontherapeutic nicotine product; and
(c) any other information the commission requires to implement this chapter.
(3) A license described in Subsection (2) is:
(a) valid only at one fixed business address;
(b) valid for three years;
(c) valid only for a physical location; and
(d) renewable if a licensee meets the criteria for licensing described in Subsection (2).
(4) The commission may make rules in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act, to establish the additional information described in
Subsection (2)(c) that a person shall provide in the application described in Subsection (2).
(5) It is a class B misdemeanor for a person to violate Subsection (1).
(6) The commission may not charge a fee for a license under this section.
Section 15. Section 
59-14-903
 is enacted to read:
 59-14-903.
Taxation of electronic cigarette substance, prefilled electronic
cigarette, nontherapeutic nicotine device substance, and prefilled nontherapeutic nicotine
device.
(1) A tax is imposed upon the following:
(a) an electronic cigarette substance;
(b) a prefilled electronic cigarette;
(c) a nontherapeutic nicotine device substance; and
(d) a prefilled nontherapeutic nicotine device.
(2) The amount of tax imposed under Subsection (1) is .50 multiplied by the retail
price.
(3) If a product is sold in the same package as a product that is taxed under Subsection
(1), the tax described in Subsection (2) shall apply to the retail price of the entire packaged
product.
(4) (a) A retailer shall pay the tax levied under Subsection (1) at the time that an
electronic cigarette substance, a prefilled electronic cigarette, a nontherapeutic nicotine device
substance, or a prefilled nontherapeutic nicotine device is sold.
(b) A consumer who receives an untaxed electronic cigarette substance, prefilled
electronic cigarette, nontherapeutic nicotine device substance, or prefilled nontherapeutic
nicotine device shall pay the tax at the time the item is first received in the state.
(5) (a) The retailer shall remit the taxes collected in accordance with this section to the
commission.
(b) The commission may allow a credit to a retailer against the tax due under this
section for taxes previously paid to the commission on an electronic cigarette substance, a
prefilled electronic cigarette, a nontherapeutic nicotine device substance, or a prefilled
nontherapeutic nicotine device subject to the tax under this section.
(c) The commission shall deposit revenue generated by the tax imposed by this section
into the Electronic Cigarette Substance and Nicotine Product Tax Restricted Account created in
Section 
59-14-807
.
(6) On or before November 30 of each year, the Revenue and Taxation Interim
Committee shall:
(a) receive reports from:
(i) the commission on the amount of revenue collected from the tax imposed under this
section; and
(ii) the recipients of the revenue on the needs of the programs that receive funding in
accordance with Section 
59-14-807
 from the tax imposed under this section and Section
59-14-804
; and
(b) if the Revenue and Taxation Interim Committee recommends an adjustment to a
tax rate provided in this section, prepare legislation for consideration by the Legislature in the
next general session.
Section 16. Section 
59-14-904
 is enacted to read:
 59-14-904.
Remittance of tax -- Returns -- Invoice required -- Filing requirement
-- Exception -- Penalty -- Overpayment.
(1) (a) The retailer that pays the tax imposed on an electronic cigarette substance, a
prefilled electronic cigarette, a nontherapeutic nicotine device substance, or a prefilled
nontherapeutic nicotine device shall remit to the commission, in an electronic format approved
by the commission:
(i) the tax due in the previous calendar quarter; and
(ii) the tax return.
(b) The tax paid and the return are due on the same dates that the retailer files the sales
and use tax return under Section 
59-12-107
.
(2) A retailer that sells an electronic cigarette substance, a prefilled electronic cigarette,
a nontherapeutic nicotine device substance, or a prefilled nontherapeutic nicotine device to an
ultimate consumer shall maintain records to determine the amount of tax the retailer is liable to
pay under this part for a period of three years from the date of the sale.
(3) (a) A consumer that purchases an untaxed electronic cigarette substance, prefilled
electronic cigarette, nontherapeutic nicotine device substance, or prefilled nontherapeutic
nicotine device for use or other consumption shall:
(i) file with the commission, on forms prescribed by the commission, a statement
showing the quantity and description of the item subject to tax under this part; and
(ii) pay the tax imposed by this part on that item.
(b) The consumer shall file the statement described in Subsection (3)(a) and pay the tax
due on or before the last day of the month immediately following the month during which the
consumer purchased an untaxed electronic cigarette substance, prefilled electronic cigarette,
nontherapeutic nicotine product, or prefilled nontherapeutic nicotine device.
(c) A consumer shall maintain records necessary to determine the amount of tax the
consumer is liable to pay under this part for a period of three years following the date on which
the statement required by this section was filed.
(4) A tourist who imports an untaxed electronic cigarette substance, a prefilled
electronic cigarette, a nontherapeutic nicotine device substance, or a prefilled nontherapeutic
nicotine device into the state does not need to file the statement described in Subsection (3) or
pay the tax if the item is for the tourist's own use or consumption while in this state.
(5) In addition to the tax required by this part, a person shall pay a penalty as provided
in Section 
59-1-401
, plus interest at the rate and in the manner prescribed in Section 
59-1-402
,
if a person subject to this section fails to:
(a) pay the tax prescribed by this part;
(b) pay the tax on time; or
(c) file a return required by this part.
(6) An overpayment of a tax imposed by this part shall accrue interest at the rate and in
the manner prescribed in Section 
59-1-402
.
Section 17. Section 
59-14-905
 is enacted to read:
 59-14-905.
Restrictions on mail order or Internet sales.
(1) As used in this section:
(a) "Distributor" means a person, wherever residing or located, that:
(i) is licensed in this state to purchase a non-taxed electronic cigarette product or a
non-taxed nontherapeutic nicotine product; and
(ii) stores, sells, or otherwise disposes of an electronic cigarette product or a
nontherapeutic nicotine device.
(b) "Licensed person" means the same as that term is defined in Section 
59-14-409
.
(c) "Order or purchase" means:
(i) by mail or delivery service;
(ii) through the Internet or computer network;
(iii) by telephone; or
(iv) through some other electronic method.
(d) "Retailer" means any person that sells an electronic cigarette product or a
nontherapeutic nicotine product to consumers for personal consumption.
(2) A person, distributor, manufacturer, or retailer may not:
(a) cause an electronic cigarette product or a nontherapeutic nicotine product to be
ordered or purchased by anyone other than a licensed person; or
(b) knowingly provide substantial assistance to a person that violates this section.
(3) (a) Each order or purchase of an electronic cigarette product or a nontherapeutic
nicotine product in violation of Subsection (2) constitutes a separate violation under this
section.
(b) In addition to the penalties in Subsection (4), a person that violates this section is
subject to:
(i) a civil penalty in an amount not to exceed $5,000 for each violation of this section;
(ii) an injunction to restrain a threatened or actual violation of this section; and
(iii) recovery by the state for:
(A) the costs of investigation;
(B) the cost of expert witness fees;
(C) the cost of the action; and
(D) reasonable attorney's fees.
(4) A person who knowingly violates this section has engaged in an unfair and
deceptive trade practice in violation of Title 13, Chapter 5, Unfair Practices Act, and the court
shall order any profits, gain, gross receipts, or other benefit from the violation to be disgorged
and paid to the state treasurer for deposit into the General Fund.
Section 18. Section 
59-14-906
 is enacted to read:
 59-14-906.
Advertised price.
A retailer shall advertise the price of an electronic cigarette substance, a prefilled
electronic cigarette, a nontherapeutic nicotine device substance, or a prefilled nontherapeutic
nicotine device inclusive of the tax imposed under this chapter.
Section 19. Section 
59-14-907
 is enacted to read:
 59-14-907.
Report from manufacturer, jobber, distributor, or wholesaler --
Records.
(1) (a) Every manufacturer, jobber, distributor, or wholesaler manufacturing or
importing electronic cigarette substance, prefilled electronic cigarettes, nontherapeutic nicotine
device substance, or prefilled nontherapeutic nicotine devices for sale, use, or distribution in
the state shall, before the last day of each month, file with the commission a report for the
preceding calendar month showing the total quantity of electronic cigarette substance, prefilled
electronic cigarettes, nontherapeutic nicotine device substance, or prefilled nontherapeutic
nicotine devices manufactured or imported during the preceding monthly period.
(b) The report shall contain:
(i) the amount of taxes the manufacturer, jobber, distributor, or wholesaler paid on
electronic cigarette substance, prefilled electronic cigarettes, nontherapeutic nicotine device
substance, or prefilled nontherapeutic nicotine devices under this chapter; and
(ii) other information required by the commission.
(c) The commission shall credit taxes paid on electronic cigarette substance, a prefilled
electronic cigarette, nontherapeutic nicotine device substance, or a prefilled nontherapeutic
nicotine device by a manufacturer, jobber, distributor, or wholesaler against the taxes due under
Section 
59-14-903
.
(2) (a) An electronic cigarette substance, a prefilled electronic cigarette, a
nontherapeutic nicotine device substance, or a prefilled nontherapeutic nicotine device is
considered manufactured when the product is placed in containers for use, sale, or distribution.
(b) An electronic cigarette substance, a prefilled electronic cigarette, a nontherapeutic
nicotine device substance, or a prefilled nontherapeutic nicotine device is considered imported
when the product is first received in the state for use, sale, or distribution.
(3) (a) It is the duty of every person manufacturing or importing electronic cigarette
substance, prefilled electronic cigarettes, nontherapeutic nicotine device substance, or prefilled
nontherapeutic nicotine devices for sale in this state to keep and preserve adequate records for a
period of three years showing the quantities sold.
(b) These records are open to inspection by the commission or the commission's
authorized representative during reasonable business hours.
(4) (a) A manufacturer, jobber, distributor, wholesaler, retailer, or any other person
selling an electronic cigarette substance, a prefilled electronic cigarette, a nontherapeutic
nicotine device substance, or a prefilled nontherapeutic nicotine device to a person other than
the ultimate consumer shall furnish the purchaser with an itemized invoice showing:
(i) the seller's name and address;
(ii) the name and address of the purchaser;
(iii) the date of sale;
(iv) the name and price of the product; and
(v) the discount, if any.
(b) The seller and the purchaser shall retain copies of the invoice and make the invoice
available for inspection at the request of the commission or the commission's agent for a period
of three years following the sale.
Section 20. Section 
59-14-908
 is enacted to read:
 59-14-908.
Reports of manufacturer, jobber, distributor, or wholesaler located
outside the state.
Every manufacturer, jobber, distributor, or wholesaler outside the state, shipping an
electronic cigarette substance, a prefilled electronic cigarette, nontherapeutic nicotine device
substance, or a prefilled nontherapeutic nicotine device into the state, for sale, use, or
consumption within the state shall file a report:
(1) with the commission, before the last day of each month;
(2) in a form approved by the commission for the preceding calendar month; and
(3) containing any information required by the commission.
Section 21. Section 
59-14-909
 is enacted to read:
 59-14-909.
Effect of failing to file a report or return.
If any person that is liable for the tax and is required by this chapter or by the rules of
the commission to file a report or return with respect to the tax or to file a report that contains
information required to determine the amount of tax, fails, neglects, or refuses to file the report
or return, the commission shall:
 (1) estimate the quantity of electronic cigarette substance, prefilled electronic
cigarettes, nontherapeutic nicotine device substance, or prefilled nontherapeutic nicotine
devices upon which the tax is payable; and
(2) assess the tax against the person that fails to file the report or the return.
Section 22. Section 
63I-1-259
 is amended to read:
63I-1-259.
Repeal dates: Title 59.
(1) Section 
59-1-213.1
 is repealed May 9, 2024.
(2) Section 
59-1-213.2
 is repealed May 9, 2024.
(3) Subsection 
59-1-405
(1)(g) is repealed May 9, 2024.
(4) Subsection 
59-1-405
(2)(b) is repealed May 9, 2024.
(5) Section 
59-7-618.1
 is repealed July 1, 2029.
(6) Section 
59-9-102.5
 is repealed December 31, 2030.
(7) Section 
59-10-1033.1
 is repealed July 1, 2029.
(8) Section 
59-14-907
 is repealed July 1, 2029.
(9) Section 
59-14-908
 is repealed July 1, 2029.
(10) Section 
59-14-909
 is repealed July 1, 2029.
Section 23. 
Effective date.
This bill takes effect on January 1, 2024.