Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 33 First Substitute (2024GS)

Sponsor

Rep. Elison, J.

Final action

Governor Signed 2/16/2024

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• requires a person that has to file a report with the State Tax Commission in accordance with the federal Prevent All Cigarette Trafficking Act regarding cigarettes, tobacco, and electronic cigarettes transferred into the state to file the report electronically; and
• modifies the definition of "units sold," for purposes of the tobacco Master Settlement Agreement, to include products sold by a distributor, retailer, or intermediary and to give the State Tax Commission rulemaking authority to determine the number of units sold in the state.

Every vote on this bill

Bill text

CIGARETTE AND TOBACCO
AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Joseph Elison
Senate Sponsor: 
Curtis S. Bramble
LONG TITLE
General Description:
This bill modifies provisions addressing cigarettes, tobacco, and electronic cigarettes.
Highlighted Provisions:
This bill:
▸ requires a person that has to file a report with the State Tax Commission in
accordance with the federal Prevent All Cigarette Trafficking Act regarding
cigarettes, tobacco, and electronic cigarettes transferred into the state to file the
report electronically; and
▸ modifies the definition of "units sold," for purposes of the tobacco Master
Settlement Agreement, to include products sold by a distributor, retailer, or
intermediary and to give the State Tax Commission rulemaking authority to
determine the number of units sold in the state.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
This bill provides retrospective operation.
Utah Code Sections Affected:
AMENDS:
59-22-202
, as last amended by Laws of Utah 2016, Chapter 348
ENACTS:
59-14-105
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
59-14-105
 is enacted to read:
 59-14-105.
Electronic reporting of report on product transferred into the state.
A person that is required to file a report with the commission in accordance with 15
U.S.C. Sec. 376 shall file the report electronically in a format approved by the commission.
Section 2. Section 
59-22-202
 is amended to read:
59-22-202.
Definitions.
As used in this part:
(1) "Adjusted for inflation" means increased in accordance with the formula for
inflation adjustment set forth in Exhibit C to the Master Settlement Agreement.
(2) "Affiliate" means a person who directly or indirectly owns or controls, is owned or
controlled by, or is under common ownership or control with, another person. Solely for
purposes of this definition, the terms "owns," "is owned" and "ownership" mean ownership of
an equity interest, or the equivalent thereof, of 10% or more, and the term "person" means an
individual, partnership, committee, association, corporation, or any other organization or group
of persons.
(3) "Allocable share" means Allocable Share as that term is defined in the Master
Settlement Agreement.
(4) "Cigarette" means any product that contains nicotine, is intended to be burned or
heated under ordinary conditions of use, and consists of or contains:
(a) any roll of tobacco wrapped in paper or in any substance not containing tobacco; or
(b) tobacco, in any form, that is functional in the product, which, because of its
appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to be
offered to, or purchased by, consumers as a cigarette; or
(c) any roll of tobacco wrapped in any substance containing tobacco that, because of its
appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to be
offered to, or purchased by, consumers as a cigarette described in clause (a) of this definition. 
The term "cigarette" includes "roll-your-own" (i.e., any tobacco that, because of its appearance,
type, packaging, or labeling is suitable for use and likely to be offered to, or purchased by,
consumers as tobacco for making cigarettes). For purposes of this definition of "cigarette,"
0.09 ounces of "roll-your-own" tobacco shall constitute one individual "cigarette."
(5) "Master Settlement Agreement" means the settlement agreement (and related
documents) entered into on November 23, 1998, by the State and leading United States tobacco
product manufacturers.
(6) "Qualified escrow fund" means an escrow arrangement with a federally or State
chartered financial institution having no affiliation with any tobacco product manufacturer and
having assets of at least $1,000,000,000 where such arrangement requires that such financial
institution hold the escrowed funds' principal for the benefit of releasing parties and prohibits
the tobacco product manufacturer placing the funds into escrow from using, accessing, or
directing the use of the funds' principal except as consistent with Subsection 
59-22-203
(2).
(7) "Released claims" means Released Claims as that term is defined in the Master
Settlement Agreement.
(8) "Releasing parties" means Releasing Parties as that term is defined in the Master
Settlement Agreement.
(9) (a) "Tobacco product manufacturer" means an entity that after the date of enactment
of this Act directly (and not exclusively through any affiliate):
(i) manufactures cigarettes anywhere that such manufacturer intends to be sold in the
United States, including cigarettes intended to be sold in the United States through an importer
(except where such importer is an original participating manufacturer (as that term is defined in
the Master Settlement Agreement) that will be responsible for the payments under the Master
Settlement Agreement with respect to such cigarettes as a result of the provisions of Subsection
II(mm) of the Master Settlement Agreement and that pays the taxes specified in Subsection
II(z) of the Master Settlement Agreement, and provided that the manufacturer of such
cigarettes does not market or advertise such cigarettes in the United States);
(ii) is the first purchaser anywhere for resale in the United States of cigarettes
manufactured anywhere that the manufacturer does not intend to be sold in the United States;
or
(iii) becomes a successor of an entity described in Subsection (9)(a)(i) or (ii).
(b) "Tobacco product manufacturer" shall not include an affiliate of a tobacco product
manufacturer unless such affiliate itself falls within any Subsection (9)(a)(i) through (iii).
(10) 
(a)
 "Units sold" means the number of individual cigarettes sold in the [
State
] 
state
by [
the
] 
an
 applicable tobacco product manufacturer [
(whether directly or through a distributor,
retailer or similar intermediary or intermediaries) during the year in question, as measured by
excise taxes collected by the State on packs (or "roll-your-own" tobacco containers)
] 
during the
year in question for which the state is not prohibited from taxing under federal law.
(b) "Units sold" includes a cigarette or "roll your own" tobacco product sold by a
tobacco product manufacturer through a distributor, a retailer, or a similar intermediary
.
(c)
 The State Tax Commission [
shall promulgate such regulations as are necessary to
ascertain the amount of State excise tax paid on the cigarettes of such tobacco product
manufacturer for each year
] 
may make rules establishing how to determine the number of units
sold in the state
.
Section 3. 
Effective date.
(1) Except as provided in Subsection (2), if approved by two-thirds of all the members
elected to each house, this bill takes effect upon approval by the governor, or the day following
the constitutional time limit of Utah Constitution, Article VII, Section 8, without the governor's
signature, or in the case of a veto, the date of veto override.
(2) The actions affecting Section 
59-14-105
 take effect on July 1, 2024.
Section 4. 
Retrospective operation.
Section 
59-22-202
, Effective upon governor's approval, provides retrospective
operation to January 1, 2024.