Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 432 (2025GS)

Sponsor

Rep. MacPherson, Matt

Final action

House/ filed 3/7/2025

Outcome

Failed / filed without passage

Summary

What it does

• This bill:
• repeals the ban on flavored electronic cigarette products;
• prohibits the sale of flavored electronic cigarette products if they do not meet certain tracking requirements;
• modifies the nicotine content limit for electronic cigarette products;
• amends provisions related to electronic cigarette product enforcement;
• excludes flavored electronic cigarette products from the requirement that electronic cigarette products obtain premarket authorization from the federal Food and Drug Administration;
• creates a temporary registry for flavored electronic cigarette products;
• modifies the electronic cigarette product registry;
• creates a flavored electronic cigarette product registry;
• creates requirements for what type of flavored electronic cigarette products may be sold in the state;
• requires the Department of Public Safety to create systems to improve enforcement of tobacco and electronic cigarette laws;
• creates penalties for general retail tobacco businesses that sell flavored electronic cigarette products;
• raises permit fees for general tobacco retailers;
• for retail tobacco specialty businesses:

Every vote on this bill

Bill text

68
10-8-41.6
17-50-333
26A-1-131
26B-7-501
26B-7-505
26B-7-509
26B-7-511
26B-7-518
26B-7-521
59-14-102
59-14-807
59-14-810
59-14-901
59-14-902
59-14-903
59-14-904
59-14-905
59-14-906
59-14-907
76-10-101
76-10-104
76-10-104.1
76-10-105.1
76-10-111
76-10-112
76-10-113
76-10-114
Tobacco and Electronic Cigarette Modifications
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Matt MacPherson
Senate Sponsor: 
LONG TITLE
General Description:
This bill amends provisions related to tobacco and electronic cigarette products.
Highlighted Provisions:
This bill:
repeals the ban on flavored electronic cigarette products;
repeals the nicotine content limit for electronic cigarette products;
repeals the requirement that electronic cigarette products obtain premarket authorization 
from the federal Food and Drug Administration;
creates penalties for general retail tobacco businesses that sell flavored electronic 
cigarette products;
for retail tobacco specialty businesses:
raises licensing fees;
creates identification scanning requirements; and
creates surveillance footage requirements;
creates a tobacco handling permit for retail tobacco specialty business employees and 
operators;
creates a tax on flavored electronic cigarette products; and
amends criminal penalties regarding the illegal sale of tobacco and electronic cigarette 
products.
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 2024, Chapter 470
17-50-333
, as last amended by Laws of Utah 2024, Chapter 470
26B-7-501
, as renumbered and amended by Laws of Utah 2023, Chapter 308
26B-7-505
, as last amended by Laws of Utah 2024, Chapter 470
26B-7-509
, as renumbered and amended by Laws of Utah 2023, Chapter 308
26B-7-511
, as renumbered and amended by Laws of Utah 2023, Chapter 308
26B-7-518
, as renumbered and amended by Laws of Utah 2023, Chapter 308
26B-7-521
, as renumbered and amended by Laws of Utah 2023, Chapter 308
59-14-102
, as last amended by Laws of Utah 2022, Chapter 199
59-14-807
, as last amended by Laws of Utah 2024, Chapter 470
76-10-101
, as last amended by Laws of Utah 2024, Chapter 470
76-10-104
, as last amended by Laws of Utah 2020, Chapters 302, 347
76-10-104.1
, as last amended by Laws of Utah 2020, Chapters 302, 347
76-10-105.1
, as last amended by Laws of Utah 2021, Chapter 348
76-10-111
, as last amended by Laws of Utah 2020, Chapters 302, 347
76-10-112
, as last amended by Laws of Utah 2020, Chapter 302
76-10-113
, as last amended by Laws of Utah 2024, Chapter 470
76-10-114
, as last amended by Laws of Utah 2021, First Special Session, Chapter 12
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
REPEALS:
26A-1-131
, as enacted by Laws of Utah 2024, Chapter 470
59-14-810
, as enacted by Laws of Utah 2024, Chapter 470
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
.
(d)
(e)
"Licensee" means a person licensed under this section to conduct business as a 
retail tobacco specialty business.
(e)
(f)
"Local health department" means the same as that term is defined in Section 
26A-1-102
.
(f)
(g)
"Nicotine product" means the same as that term is defined in Section 
76-10-101
.
(g)
(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; 
or
(v)
the retail space features a self-service display for tobacco products, electronic 
cigarette products, or nicotine products
.
; or
(vi)
any flavored electronic cigarette product is sold.
(h)
(i)
"Self-service display" means the same as that term is defined in Section 
76-10-105.1
.
(i)
(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 26B, Chapter 
7, Part 5, Regulation of Smoking, Tobacco Products, and Nicotine Products, 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
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 26B, Chapter 7, Part 5, Regulation of Smoking, Tobacco Products, and 
Nicotine Products; 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)
Section 
26B-7-503
;
(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 26B, Chapter 7, Part 5, Regulation of Smoking, Tobacco Products, and 
Nicotine Products, 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)
Section 
26B-7-503
;
(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
.
(d)
(e)
"Licensee" means a person licensed under this section to conduct business as a 
retail tobacco specialty business.
(e)
(f)
"Local health department" means the same as that term is defined in Section 
26A-1-102
.
(f)
(g)
"Nicotine product" means the same as that term is defined in Section 
76-10-101
.
(g)
(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; 
or
(v)
the retail space features a self-service display for tobacco products, electronic 
cigarette products, or nicotine products
.
; or
(vi)
any flavored electronic cigarette product is sold.
(h)
(i)
"Self-service display" means the same as that term is defined in Section 
76-10-105.1
.
(i)
(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 26B, Chapter 
7, Part 5, Regulation of Smoking, Tobacco Products, and Nicotine Products, 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
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 26B, Chapter 7, Part 5, Regulation of Smoking, Tobacco Products, and 
Nicotine Products; 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
Section 26B-7-503
;
(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
Title 26B, Chapter 7, Part 5, Regulation of Smoking, Tobacco Products, 
and Nicotine Products
, 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
Section 26B-7-503
;
(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 
26B-7-501
 is amended to read:
26B-7-501. Definitions.
As used in this part:
(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" means the same as that term is defined in Section 
76-10-101
.
(3)
"Electronic cigarette product" means the same as that term is defined in Section 
76-10-101
.
(4)
"Electronic cigarette substance" means the same as that term is defined in Section 
76-10-101
.
(5)
"Employee" means an employee of a tobacco retailer.
(6)
"Enforcing agency" means the department, or any local health department enforcing the 
provisions of this part.
(7)
"Flavored electronic cigarette product" means the same as that term is defined in 
Section 
76-10-101
.
(7)
(8)
"General tobacco retailer" means a tobacco retailer that is not a retail tobacco 
specialty business.
(8)
(9)
"Local health department" means the same as that term is defined in Section 
26A-1-102
.
(9)
(10)
"Manufacture" includes:
(a)
to cast, construct, or make electronic cigarettes; or
(b)
to blend, make, process, or prepare an electronic cigarette substance.
(10)
(11)
"Manufacturer sealed electronic cigarette substance" means an electronic 
cigarette substance that is sold in a container that:
(a)
is prefilled by the electronic cigarette substance manufacturer; and
(b)
the electronic cigarette manufacturer does not intend for a consumer to open.
(11)
(12)
"Manufacturer sealed electronic cigarette product" means:
(a)
an electronic cigarette substance or container that the electronic cigarette 
manufacturer does not intend for a consumer to open or refill; or
(b)
a prefilled electronic cigarette as that term is defined in Section 
76-10-101
.
(12)
(13)
"Nicotine" means the same as that term is defined in Section 
76-10-101
.
(13)
(14)
"Nicotine product" means the same as that term is defined in Section 
76-10-101
.
(14)
(15)
"Non-tobacco shisha" means any product that:
(a)
does not contain tobacco or nicotine; and
(b)
is smoked or intended to be smoked in a hookah or water pipe.
(15)
(16)
"Owner" means a person holding a 20% ownership interest in the business that is 
required to obtain a permit under this part.
(16)
(17)
"Permit" means a tobacco retail permit issued under Section 
26B-7-507
.
(17)
(18)
"Place of public access" means any enclosed indoor place of business, 
commerce, banking, financial service, or other service-related activity, whether publicly 
or privately owned and whether operated for profit or not, to which persons not 
employed at the place of public access have general and regular access or which the 
public uses, including:
(a)
buildings, offices, shops, elevators, or restrooms;
(b)
means of transportation or common carrier waiting rooms;
(c)
restaurants, cafes, or cafeterias;
(d)
taverns as defined in Section 
32B-1-102
, or cabarets;
(e)
shopping malls, retail stores, grocery stores, or arcades;
(f)
libraries, theaters, concert halls, museums, art galleries, planetariums, historical sites, 
auditoriums, or arenas;
(g)
barber shops, hair salons, or laundromats;
(h)
sports or fitness facilities;
(i)
common areas of nursing homes, hospitals, resorts, hotels, motels, "bed and 
breakfast" lodging facilities, and other similar lodging facilities, including the 
lobbies, hallways, elevators, restaurants, cafeterias, other designated dining areas, and 
restrooms of any of these;
(j)
(i)
any child care facility or program subject to licensure or certification under this 
title, including those operated in private homes, when any child cared for under 
that license is present; and
(ii)
any child care, other than child care as defined in Section 
26B-2-401
, that is not 
subject to licensure or certification under this title, when any child cared for by the 
provider, other than the child of the provider, is present;
(k)
public or private elementary or secondary school buildings and educational facilities 
or the property on which those facilities are located;
(l)
any building owned, rented, leased, or otherwise operated by a social, fraternal, or 
religious organization when used solely by the organization members or the 
members' guests or families;
(m)
any facility rented or leased for private functions from which the general public is 
excluded and arrangements for the function are under the control of the function 
sponsor;
(n)
any workplace that is not a place of public access or a publicly owned building or 
office but has one or more employees who are not owner-operators of the business;
(o)
any area where the proprietor or manager of the area has posted a conspicuous sign 
stating "no smoking", "thank you for not smoking", or similar statement; and
(p)
a holder of a bar establishment license, as defined in Section 
32B-1-102
.
(18)
(19)
(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
.
(19)
(20)
"Publicly owned building or office" means any enclosed indoor place or portion 
of a place owned, leased, or rented by any state, county, or municipal government, or by 
any agency supported by appropriation of, or by contracts or grants from, funds derived 
from the collection of federal, state, county, or municipal taxes.
(20)
(21)
"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
.
(21)
(22)
"Shisha" means any product that:
(a)
contains tobacco or nicotine; and
(b)
is smoked or intended to be smoked in a hookah or water pipe.
(22)
(23)
"Smoking" means:
(a)
the possession of any lighted or heated tobacco product in any form;
(b)
inhaling, exhaling, burning, or carrying any lighted or heated cigar, cigarette, pipe, or 
hookah that contains:
(i)
tobacco or any plant product intended for inhalation;
(ii)
shisha or non-tobacco shisha;
(iii)
nicotine;
(iv)
a natural or synthetic tobacco substitute; or
(v)
a natural or synthetic flavored tobacco product;
(c)
using an electronic cigarette; or
(d)
using an oral smoking device intended to circumvent the prohibition of smoking in 
this part.
(23)
(24)
"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 nicotine product.
(24)
(25)
"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
.
(25)
(26)
"Tobacco retailer" means a person that is required to obtain a tax commission 
license.
Section 4, Section 
26B-7-505
 is amended to read:
26B-7-505. Electronic cigarette products -- Labeling -- Requirements to sell -- 
Advertising -- Labeling of nicotine products containing nicotine.
(1)
The department shall, in consultation with a local health department and with input from 
members of the public, establish by rule made in accordance with Title 63G, Chapter 3, 
Utah Administrative Rulemaking Act, the requirements to sell an electronic cigarette 
substance that is not a manufacturer sealed electronic cigarette substance regarding:
(a)
labeling;
(b)
nicotine content;
(c)
packaging; and
(d)
product quality.
(2)
On or before January 1, 2021, the department shall, in consultation with a local health 
department and with input from members of the public, establish by rule made in 
accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the 
requirements to sell a manufacturer sealed electronic cigarette product regarding:
(a)
labeling;
(b)
nicotine content;
(c)
packaging; and
(d)
product quality.
(3)
(a)
A person may not sell an electronic cigarette substance unless the electronic 
cigarette substance complies with the requirements established by the department 
under Subsection (1).
(b)
Beginning on July 1, 2021, a person may not sell a manufacturer sealed electronic 
cigarette product unless the manufacturer sealed electronic cigarette product complies 
with the requirements established by the department under Subsection (2).
(c)
Notwithstanding Subsections (3)(a) and (3)(b), beginning on January 1, 2025, a 
person may not sell an electronic cigarette product that is not a premarket authorized 
or pending electronic cigarette product as that term is defined in Section 
76-10-101
.
(4)
(a)
A local health department may not enact a rule or regulation regarding electronic 
cigarette substance labeling, nicotine content, packaging, or product quality that is 
not identical to the requirements established by the department under Subsections (1) 
and (2).
(b)
Except as provided in Subsection (4)(c), a local health department may enact a rule 
or regulation regarding electronic cigarette substance manufacturing.
(c)
A local health department may not enact a rule or regulation regarding a 
manufacturer sealed electronic cigarette product.
(5)
A person may not advertise an electronic cigarette product as a tobacco cessation device.
(6)
(a)
Any nicotine product shall contain the statement described in Subsection (6)(b) if 
the nicotine product:
(i)
(A)
is not a tobacco product as defined in 21 U.S.C. Sec. 321 and related federal 
regulations; or
(B)
is not otherwise required under federal or state law to contain a nicotine 
warning; and
(ii)
contains nicotine.
(b)
A statement shall appear on the exterior packaging of a nicotine product described in 
Subsection (6)(a) as follows:
"This product contains nicotine."
Section 5, Section 
26B-7-509
 is amended to read:
26B-7-509. Permit term and fees.
(1)
(a)
The term of a permit issued to a retail tobacco specialty business is one year.
(b)
The term of a permit issued to a general tobacco retailer is two years.
(2)
(a)
A local health department may not issue a permit until the applicant has paid a 
permit fee to the local health department of:
(i)
for a general tobacco retailer:
(i)
(A)
$30 for a new permit;
(ii)
(B)
$20 for a permit renewal; or
(iii)
(C)
$30 for reinstatement of a permit that has been revoked, suspended, or 
allowed to expire
.
; or
(ii)
for a retail tobacco specialty business, $3,000.
(b)
A local health department that collects fees under Subsection 
(2)(a)
 shall use the fees 
to administer
 and enforce
 the permit requirements described in Sections 
26B-7-506
through 
26B-7-521
26B-7-522
.
(c)
In addition to the fee described in Subsection 
(2)(a)
, a local health department may 
establish and collect a fee to perform a plan review for a retail tobacco specialty 
business permit.
(d)
Payment of the fee described in Subsection 
(2)(a)(ii)
 is due after an initial application 
is approved and when a renewal application is approved.
(3)
A permit holder may apply for a renewal of a permit no earlier than 30 days before the 
day on which the permit expires.
(4)
A tobacco retailer that fails to renew a permit before the permit expires may apply to 
reinstate the permit by submitting to the local health department:
(a)
the information required in Subsection 
26B-7-508(3)
 and, if applicable, Subsection 
26B-7-508(4)
;
(b)
the fee for the reinstatement of a permit; and
(c)
a signed affidavit affirming that the tobacco retailer has not violated the prohibitions 
in Subsection 
26B-7-507(1)(b)
 after the permit expired.
Section 6, Section 
26B-7-511
 is amended to read:
26B-7-511. Permit requirements for a retail tobacco specialty business -- 
Tobacco handling permit.
(1)
A retail tobacco specialty business shall:
(a)
electronically verify proof of age for any individual that enters the premises of the 
business in accordance with Section 
26B-7-521
;
(b)
except as provided in Subsection 
76-10-105.1(4)
, prohibit any individual from 
entering the business if the individual is under 21 years old; 
and
(c)
prominently display at the retail tobacco specialty business a sign on the public 
entrance of the business that communicates:
(i)
the prohibition on the presence of an individual under 21 years old in a retail 
tobacco specialty business in Subsection 
76-10-105.1(4)
; and
(ii)
the prohibition on the sale of tobacco products and electronic cigarette products to 
an individual under 21 years old as described in Sections 
76-10-104
, 
76-10-104.1
, 
76-10-105.1
, and 
76-10-114
.
; and
(d)
implement security standards that include an electronic video monitoring system 
with:
(i)
at least one 19-inch or greater call-up monitor;
(ii)
a printer, capable of producing a clear still photo from any video camera image;
(iii)
video cameras with a recording resolution of at least 1280 x 720 pixels, or the 
equivalent for analog, that records continuously during business hours and for one 
hour before and after business hours, seven days a week, and is motion activated 
after business hours that provides coverage of:
(A)
all points of entry; and
(B)
each point-of-sale;
(iv)
a method for storing each video recording from the video camera for at least 45 
days after the day on which the recording was taken;
(v)
a surveillance system with:
(A)
a storage device for locally stored footage secured in the business in a lock 
box, cabinet, closet, or secured in another manner, to protect from tampering or 
criminal theft; or
(B)
a storage system on a remote server which has restricted access to protect 
from tampering;
(vi)
a failure notification system that provides an audible or visual notification of an 
error within the electronic monitoring system; and
(vii)
a date and time stamp embedded on video camera recordings.
(2)
A retail tobacco specialty business may not:
(a)
employ an individual under 21 years old to sell a tobacco product, an electronic 
cigarette product, or a nicotine product;
 or
(b)
permit an employee under 21 years old to sell a tobacco product, an electronic 
cigarette product, or a nicotine product
.
; or
(c)
employ an individual that does not have a tobacco handling permit described in 
Subsection 
(3)
.
(3)
(a)
An employee, owner, or operator of a retail tobacco specialty business shall obtain 
and maintain a tobacco handling permit.
(b)
The department shall:
(i)
develop a course to instruct an individual described in Subsection 
(3)(a)
 regarding 
the laws and regulations that a retail tobacco specialty business must follow;
(ii)
issue a tobacco handling permit to any individual who completes the training; and
(iii)
establish a fee in accordance with Section 
63J-1-504
 to implement this 
Subsection 
(3)
.
(c)
A tobacco handling permit expires one year from the day the tobacco handling 
permit is issued.
Section 7, Section 
26B-7-518
 is amended to read:
26B-7-518. Penalties.
(1)
(a)
If an enforcing agency determines that a person has violated the terms of a permit 
issued under this part, the enforcing agency may impose the penalties described in 
this section.
(b)
If multiple violations are found in a single inspection by an enforcing agency or a 
single investigation by a law enforcement agency under Section 
77-39-101
, the 
enforcing agency shall treat the multiple violations as one single violation under 
Subsections 
(2)
, 
(3)
, and 
(4)
.
(2)
Except as provided in Subsections 
(3)
 and 
(4)
, if a violation is found in an investigation 
by a law enforcement agency under Section 
77-39-101
 or an inspection by an enforcing 
agency, the enforcing agency shall:
(a)
on a first violation at a retail location, impose a penalty of $1,000;
(b)
on a second violation at the same retail location that occurs within one year of a 
previous violation, impose a penalty of $1,500;
(c)
on a third violation at the same retail location that occurs within two years after two 
previous violations, impose:
(i)
a suspension of the permit for 30 consecutive business days within 60 days after 
the day on which the third violation occurs; or
(ii)
a penalty of $2,000; and
(d)
on a fourth or subsequent violation within two years of three previous violations:
(i)
impose a penalty of $2,000;
(ii)
revoke a permit of the retailer; and
(iii)
if applicable, recommend to a municipality or county that a retail tobacco 
specialty business license issued under Section 
10-8-41.6
 or 
17-50-333
 be 
suspended or revoked.
(3)
If a violation is found in an investigation of a general tobacco retailer by a law 
enforcement agency under Section 
77-39-101
 for the sale of a tobacco product, an 
electronic cigarette product, or a nicotine product to an individual under 21 years old 
and the violation is committed by the owner of the general tobacco retailer, the 
enforcing agency shall:
(a)
on a first violation, impose a fine of $2,000 on the general tobacco retailer; and
(b)
on the second violation for the same general tobacco retailer within one year of the 
first violation:
(i)
impose a fine of $5,000; and
(ii)
revoke the permit for the general tobacco retailer.
(4)
If a violation is found in an investigation of a retail tobacco specialty business by a law 
enforcement agency under Section 
77-39-101
 for the sale of a tobacco product, an 
electronic cigarette product, or a nicotine product to an individual under 21 years old, 
the enforcing agency shall:
(a)
on the first violation:
(i)
impose a fine of $5,000; and
(ii)
immediately suspend the permit for 30 consecutive days; and
(b)
on the second violation at the same retail location within two years of the first 
violation:
(i)
impose a fine of $10,000; and
(ii)
revoke the permit for the retail tobacco specialty business.
(5)
(a)
Except when a transfer described in Subsection 
(6)
 occurs, a local health 
department may not issue a permit to:
(i)
a tobacco retailer for whom a permit is suspended or revoked under Subsection 
(2)
or 
(3)
; or
(ii)
a tobacco retailer that has the same proprietor, director, corporate officer, partner, 
or other holder of significant interest as another tobacco retailer for whom a 
permit is suspended or revoked under Subsection 
(2)
, 
(3)
, or 
(4)
.
(b)
A person whose permit:
(i)
is suspended under this section may not apply for a new permit for any other 
tobacco retailer for a period of 12 months after the day on which an enforcing 
agency suspends the permit; and
(ii)
is revoked under this section may not apply for a new permit for any tobacco 
retailer for a period of 24 months after the day on which an enforcing agency 
revokes the permit.
(6)
Violations of this part, Section 
10-8-41.6
, or Section 
17-50-333
 that occur at a tobacco 
retailer location shall stay on the record for that tobacco retailer location unless:
(a)
the tobacco retailer is transferred to a new proprietor; and
(b)
the new proprietor provides documentation to the local health department that the 
new proprietor is acquiring the tobacco retailer in an arm's length transaction from 
the previous proprietor.
(7)
If a general tobacco retailer is found to be selling a flavored electronic cigarette product 
in an inspection by an enforcing agency, the enforcing agency shall:
(a)
on the first violation:
(i)
impose a fine of $5,000; and
(ii)
immediately suspend the permit for 30 consecutive days; and
(b)
on the second violation at the same retail location within two years of the first 
violation:
(i)
impose a fine of $10,000; and
(ii)
revoke the permit for the general tobacco retailer.
Section 8, Section 
26B-7-521
 is amended to read:
26B-7-521. Verification of proof of age -- Verification of identification.
(1)
As used in this section:
(a)
"Employee" means an employee of a retail tobacco specialty business.
(b)
"Electronic verification program" means a technology used by a retail tobacco 
specialty business to confirm proof of age for an individual.
(2)
A retail tobacco specialty business shall require that an employee verify proof of age as 
provided in this section.
(3)
To comply with Subsection 
(2)
, an employee shall:
(a)
request the individual present proof of age; and
(b)
verify the validity of the proof of age electronically in accordance with Subsection 
(4)
.
(4)
(a)
A retail tobacco specialty business shall use an electronic verification program to 
assist the business in complying with the requirements of this section.
(b)
Beginning July 1, 2025, a retail tobacco specialty business shall use an identification 
verification system.
(c)
The identification verification system described in Subsection 
(4)(b)
 shall analyze 
and conduct a forensic check of the front and back of a proof of identification for 
authentic security features to detect a fraudulent proof of identification, which shall 
include the ability to:
(i)
read and identify ultraviolet and infrared images, microprint, laser perforation, 
holograms, and other proof of identification specific security features;
(ii)
scan and analyze a proof of identification issued from any state or territory within 
the United States;
(iii)
scan and read magstripe, 2D barcodes, and machine readable zones on United 
States passport cards;
(iv)
display easy to read results of the identification analysis and alert staff when a 
proof of identification appears to be fake or false;
(v)
detect and alert to an expired or invalid proof of identification;
(vi)
ability to identify and alert to pass-back or proof of identification sharing; and
(vii)
to capture a real time image of the individual presenting the proof of 
identification.
(5)
(a)
A retail tobacco specialty business may not disclose information obtained under 
this section except as provided under this part.
(b)
Information obtained under this section:
(i)
shall be kept for at least 180 days; and
(ii)
is subject to inspection upon request by a peace officer or the representative of an 
enforcing agency.
(6)
(a)
If an employee does not verify proof of age under this section, the employee may 
not permit an individual to:
(i)
except as provided in Subsection 
(6)(b)
, enter a retail tobacco specialty business; or
(ii)
purchase a tobacco product or an electronic cigarette product.
(b)
In accordance with Subsection 
76-10-105.1(4)
, an individual who is under 21 years 
old may be permitted to enter a retail tobacco specialty business if the individual is:
(i)
accompanied by a parent or legal guardian who provides proof of age; or
(ii)
(A)
present at the retail tobacco specialty business solely for the purpose of 
providing a commercial service to the retail tobacco specialty business, 
including making a commercial delivery;
(B)
monitored by the proprietor of the retail tobacco specialty business or an 
employee of the retail tobacco specialty business; and
(C)
not permitted to make any purchase or conduct any commercial transaction 
other than the service described in Subsection 
(6)(b)(ii)(A)
.
(7)
To determine whether the individual described in Subsection 
(2)
 is 21 years old or 
older, the following may request an individual described in Subsection 
(2)
 to present 
proof of age:
(a)
an employee;
(b)
a peace officer; or
(c)
a representative of an enforcing agency.
Section 9, Section 
59-14-102
 is amended to read:
59-14-102. Definitions.
As used in this chapter:
(1)
"Alternative nicotine product" means the same as that term is defined in Section 
76-10-101
.
(2)
"Cigarette" means a roll made wholly or in part of tobacco:
(a)
regardless of:
(i)
the size of the roll;
(ii)
the shape of the roll;
(iii)
whether the tobacco is flavored, adulterated, or mixed with any other ingredient; 
or
(iv)
whether the tobacco is heated or burned; and
(b)
if the roll has a wrapper or cover that is made of paper or any other substance or 
material except tobacco.
(3)
"Cigarette rolling machine" means a device or machine that has the capability to 
produce at least 150 cigarettes in less than 30 minutes.
(4)
"Cigarette rolling machine operator" means a person who:
(a)
(i)
controls, leases, owns, possesses, or otherwise has available for use a cigarette 
rolling machine; and
(ii)
makes the cigarette rolling machine available for use by another person to 
produce a cigarette; or
(b)
offers for sale, at retail, a cigarette produced from the cigarette rolling machine.
(5)
"Consumer" means a person that is not required:
(a)
under Section 
59-14-201
 to obtain a license under Section 
59-14-202
;
(b)
under Section 
59-14-301
 to obtain a license under Section 
59-14-202
; 
or
(c)
to obtain a license under Section 
59-14-803
.
; or
(d)
to obtain a license under Section 
59-14-902
.
(6)
"Counterfeit cigarette" means:
(a)
a cigarette that has a false manufacturing label; or
(b)
a package of cigarettes bearing a counterfeit tax stamp.
(7)
(a)
"Electronic cigarette" means the same as that term is defined in Section 
76-10-101
.
(b)
"Electronic cigarette" does not include a cigarette or a tobacco product.
(8)
"Electronic cigarette product" means the same as that term is defined in Section 
76-10-101
.
(9)
"Electronic cigarette substance" means the same as that term is defined in Section 
76-10-101
.
(10)
"Importer" means a person that imports into the United States, either directly or 
indirectly, a finished cigarette for sale or distribution.
(11)
"Indian tribal entity" means a federally recognized Indian tribe, tribal entity, or any 
other person doing business as a distributor or retailer of cigarettes on tribal lands 
located in the state.
(12)
"Little cigar" means a roll for smoking that:
(a)
is made wholly or in part of tobacco;
(b)
uses an integrated cellulose acetate filter or other similar filter; and
(c)
is wrapped in a substance:
(i)
containing tobacco; and
(ii)
that is not exclusively natural leaf tobacco.
(13)
(a)
Except as provided in Subsection 
(13)(b)
, "manufacturer" means a person that:
(i)
manufactures, fabricates, assembles, processes, or labels a finished cigarette; or
(ii)
makes, modifies, mixes, manufactures, fabricates, assembles, processes, labels, 
repackages, relabels, or imports an electronic cigarette product or a nicotine 
product.
(b)
"Manufacturer" does not include a cigarette rolling machine operator.
(14)
"Moist snuff" means tobacco that:
(a)
is finely cut, ground, or powdered;
(b)
has at least 45% moisture content, as determined by the commission by rule made in 
accordance with 
Title 63G, Chapter 3, Utah Administrative Rulemaking Act
;
(c)
is not intended to be:
(i)
smoked; or
(ii)
placed in the nasal cavity; and
(d)
except for single-use pouches of loose tobacco, is not packaged, produced, sold, or 
distributed in single-use units, including:
(i)
tablets;
(ii)
lozenges;
(iii)
strips;
(iv)
sticks; or
(v)
packages containing multiple single-use units.
(15)
"Nicotine" means the same as that term is defined in Section 
76-10-101
.
(16)
"Nicotine product" means the same as that term is defined in Section 
76-10-101
.
(17)
"Nontherapeutic nicotine device" means the same as that term is defined in Section 
76-10-101
.
(18)
"Nontherapeutic nicotine device substance" means the same as that term is defined in 
Section 
76-10-101
.
(19)
"Nontherapeutic nicotine product" means the same as that term is defined in Section 
76-10-101
.
(20)
"Prefilled electronic cigarette" means the same as that term is defined in Section 
76-10-101
.
(21)
"Prefilled nontherapeutic nicotine device" means the same as that term is defined in 
Section 
76-10-101
.
(22)
"Retailer" means a person that:
(a)
sells or distributes a cigarette, an electronic cigarette product, or a nicotine product to 
a consumer in the state; or
(b)
intends to sell or distribute a cigarette, an electronic cigarette product, or a nicotine 
product to a consumer in the state.
(23)
"Stamp" means the indicia required to be placed on a cigarette package that evidences 
payment of the tax on cigarettes required by Section 
59-14-205
.
(24)
(a)
"Tobacco product" means a product made of, or containing, tobacco.
(b)
"Tobacco product" includes:
(i)
a cigarette produced from a cigarette rolling machine;
(ii)
a little cigar; or
(iii)
moist snuff.
(c)
"Tobacco product" does not include a cigarette.
(25)
"Tribal lands" means land held by the United States in trust for a federally recognized 
Indian tribe.
Section 10, Section 
59-14-807
 is amended to read:
59-14-807. Electronic Cigarette Substance and Nicotine Product Proceeds 
Restricted Account.
(1)
There is created within the General Fund a restricted account known as the "Electronic 
Cigarette Substance and Nicotine Product Proceeds Restricted Account."
(2)
The Electronic Cigarette Substance and Nicotine Product Proceeds Restricted Account 
consists of:
(a)
revenue collected from the tax imposed by Section 
59-14-804
;
(b)
fees and penalties collected under Section 
59-14-810
;
(c)
all money received by the attorney general or the Department of Commerce as a 
result of any judgment, settlement, or compromise of claims pertaining to alleged 
violations of law related to the manufacture, marketing, distribution, or sale of 
electronic cigarette products, as defined in Section 
76-10-101
:
(i)
if the total amount of the judgment, settlement, or compromise received by the 
state exceeds $1,000,000; and
(ii)
after reimbursement to the attorney general and the Department of Commerce for 
expenses related to the matters described in Subsection (2)(c); and
(d)
amounts appropriated by the Legislature.
(3)
(a)
For each fiscal year and subject to appropriation by the Legislature, the Division 
of Finance shall distribute from the Electronic Cigarette Substance and Nicotine 
Product Proceeds Restricted Account:
(i)
$2,000,000, which shall be allocated to the local health departments by the 
Department of Health and Human Services using the formula created in 
accordance with Section 
26A-1-116
;
(ii)
$2,000,000 to the Department of Health and Human Services for statewide 
cessation programs and prevention education;
(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;
(iv)
$3,000,000, which shall be allocated to the local health departments by the 
Department of Health and Human Services using the formula created in 
accordance with Section 
26A-1-116
;
(v)
$5,084,200 to the State Board of Education for school-based prevention programs;
and
(vi)
$2,000,000 to the Department of Health and Human Services 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
; and
.
(vii)
of the money deposited under Section 
59-14-810
:
(A)
to the commission, in an amount equal to the amount necessary to create and 
maintain the registry described in Section 
59-14-810
;
(B)
to the Department of Health and Human Services, in an amount necessary for 
completing duties described in Section 
59-14-810
; and
(C)
to the Department of Health and Human Services, the remainder to be 
divided among the local health departments for inspection and enforcement 
described in Sections 
26A-1-131
 and 
59-14-810
.
(b)
If the amount in the Electronic Cigarette Substance and Nicotine Product Proceeds 
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 
26B-7-505
;
(ii)
the labeling requirement described in Section 
26B-7-505
; and
(iii)
the penalty provisions described in Section 
26B-7-518
.
(b)
The Department of Health and Human Services shall use the money received in 
accordance with Subsection (3)(a)(ii) for the Youth Electronic Cigarette, Marijuana, 
and Other Drug Prevention Program created in Section 
26B-1-428
.
(c)
The local health departments shall use the money received in accordance with 
Subsection (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)(a)(v) to distribute to local education agencies to pay for:
(i)
(A)
stipends for positive behaviors specialists as described in Subsection 
53G-10-407
(4)(a)(i);
(B)
the cost of administering the positive behaviors plan as described in 
Subsection 
53G-10-407
(4)(a)(ii); and
(C)
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); or
(ii)
a comprehensive prevention plan, as that term is defined in Section 
53F-2-525
.
(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 Proceeds Restricted Account after the distribution 
described in Subsection (3) may only be used for:
(a)
funding commission personnel to enforce compliance with the tax collection 
requirements of this part; and
(b)
programs and activities related to the prevention and cessation of electronic cigarette, 
nicotine products, marijuana, and other drug use.
Section 11, Section 
59-14-901
 is enacted to read:
9. Flavored Electronic Cigarette Tax
59-14-901. Definitions.
As used in this part:
(1)
"Flavored electronic cigarette product" means the same as that term is defined in 
Section 
76-10-101
.
(2)
"Licensee" means a person that holds a license to sell a flavored electronic cigarette 
product under this part.
(3)
"Retail price" means the amount charged by a retailer for a flavored electronic cigarette 
product.
Section 12, Section 
59-14-902
 is enacted to read:
59-14-902. License to sell flavored electronic cigarette product.
(1)
A person may not sell or offer to sell a flavored electronic cigarette product in this state 
without first:
(a)
obtaining a license from the commission under this section to sell a flavored 
electronic cigarette product; and
(b)
complying with any bonding requirement described in Subsection (5).
(2)
A license described in this section is required in addition to any other license required 
by law.
(3)
The commission shall issue a license to sell a flavored electronic cigarette 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 a flavored cigarette product; and
(c)
any other information the commission requires to implement this part.
(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 retailer that is responsible under this part for the 
collection of tax on a flavored electronic cigarette product to post a bond.
(b)
The retailer may post the bond required by Subsection (5)(a) in combination with 
any bond required by Section 
59-14-201
, 
59-14-301
, or 
59-14-803
.
(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 $500.
(e)
If a bond is posted in combination with another bond under (5)(b), the total amount 
of the bond shall be equal to the sum total of $500 plus the amount required by the 
other provision of law.
(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 13, Section 
59-14-903
 is enacted to read:
59-14-903. Publication of licensed distributors -- Retailer transaction only with 
licensed distributor -- Penalty.
(1)
(a)
The commission shall maintain a list that includes the identity of each person 
licensed under this part to sell a flavored electronic cigarette product.
(b)
The list shall be:
(i)
published on the commission website; and
(ii)
updated by the commission at least once per quarter.
(2)
A distributor may sell a flavored electronic cigarette product only to a licensed retailer 
identified on the list described in Subsection (1).
(3)
(a)
The commission may impose a penalty against a distributor that sells a flavored 
electronic cigarette product from a person other than a licensed retailer.
(b)
The penalty is $10,000 for each sale.
Section 14, Section 
59-14-904
 is enacted to read:
59-14-904. Taxation of flavored electronic cigarette products.
(1)
Beginning on July 1, 2025, a tax is imposed on a flavored electronic cigarette product.
(2)
(a)
The amount of tax imposed under Subsection 
(1)
 is .025 multiplied by the retail 
price of each product sold.
(b)
A tax described in this section is in addition to any other tax required by law on an 
electronic cigarette product.
(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 retailer, consumer, or user shall pay the tax levied under Subsection (1) at the point of 
sale.
(5)
(a)
The retailer shall remit the taxes collected in accordance with this section to the 
commission.
(b)
The commission shall deposit revenues generated by the tax imposed by this section 
into the Flavored Electronic Cigarette Product Proceeds Restricted Account created 
in Section 59-14-906.
Section 15, Section 
59-14-905
 is enacted to read:
59-14-905. Remittance of tax -- Returns -- Invoice required -- Filing 
requirement-- Exception -- Penalty -- Overpayment.
(1)
(a)
The retailer that collects the tax imposed on a flavored electronic cigarette product 
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 consumer that purchases an untaxed flavored electronic cigarette product 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 (2)(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 flavored electronic cigarette 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.
(3)
A tourist who imports an untaxed flavored electronic cigarette product into the state 
does not need to file the statement described in Subsection (2) or pay the tax if the item 
is for the tourist's own use or consumption while in this state.
(4)
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.
(5)
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 16, Section 
59-14-906
 is enacted to read:
59-14-906. Flavored Electronic Cigarette Product Proceeds Restricted Account.
(1)
There is created within the General Fund a restricted account known as the "Flavored 
Electronic Cigarette Product Proceeds Restricted Account."
(2)
The account consists of revenue collected by the tax imposed in Section 
59-14-904
.
(3)
Subject to Subsection 
(5)
, for each fiscal year and subject to appropriation by the 
Legislature, the Division of Finance shall distribute:
(a)
80% of the amount in the account to the Department of Health and Human Services 
to be used as follows:
(i)
50% of the amount transfered to the Department of Health and Human Services, 
for tobacco and nicotine prevention programs and for enforcement of state law 
related to electronic cigarette products by the Department of Health and Human 
Services and each local health department; and
(ii)
50% of the amount transfered to the Department of Health and Human Services, 
for cancer research conducted by one or more cancer research organizations as 
determined by the Department of Health and Human Services; and
(b)
 20% of the amount in the account to the State Board of Education to pay for the 
school lunch program described in Section 
53E-3-510
.
(4)
(a)
The fund shall earn interest.
(b)
Interest earned on fund money shall be deposited into the fund.
(5)
Subject to legislative appropriations, before any amount of money is distributed under 
Subsection 
(3)
, the Division of Finance shall distribute an amount to the commission to 
enforce compliance with the tax collection requirements of this part.
Section 17, Section 
59-14-907
 is enacted to read:
59-14-907. Reports of illegal product.
 If the commission suspects that a flavored electronic cigarette product is being sold in 
violation of a law other than a law described in this part, the commission shall report the name 
of the seller, the type of product, and the county where the product was sold:
(1)
to the local health department for the county where the sale occurs;
(2)
to the Department of Health and Human Services; and
(3)
to the Department of Public Safety.
Section 18, Section 
76-10-101
 is amended to read:
76-10-101. Definitions.
As used in this part:
(1)
(a)
"Alternative nicotine product" means a product, other than a cigarette, a 
counterfeit cigarette, an electronic cigarette product, a nontherapeutic nicotine 
product, or a tobacco product, that:
(i)
contains nicotine;
(ii)
is intended for human consumption;
(iii)
is not purchased with a prescription from a licensed physician; and
(iv)
is not approved by the United States Food and Drug Administration as nicotine 
replacement therapy.
(b)
"Alternative nicotine product" includes:
(i)
pure nicotine;
(ii)
snortable nicotine;
(iii)
dissolvable salts, orbs, pellets, sticks, or strips; and
(iv)
nicotine-laced food and beverage.
(c)
"Alternative nicotine product" does not include a fruit, a vegetable, or a tea that 
contains naturally occurring nicotine.
(2)
"Cigar" means a product that contains nicotine, is intended to be burned under ordinary 
conditions of use, and consists of any roll of tobacco wrapped in leaf tobacco, or in any 
substance containing tobacco, other than any roll of tobacco that is a cigarette.
(3)
"Cigarette" means a product that contains nicotine, is intended to be heated or burned 
under ordinary conditions of use, and consists of:
(a)
any roll of tobacco wrapped in paper or in any substance not containing tobacco; or
(b)
any roll of tobacco wrapped in any substance containing tobacco 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 described in 
Subsection (3)(a).
(4)
(a)
"Electronic cigarette" means:
(i)
any electronic oral device:
(A)
that provides an aerosol or a vapor of nicotine or other substance; and
(B)
which simulates smoking through the use or inhalation of the device;
(ii)
a component of the device described in Subsection (4)(a)(i); or
(iii)
an accessory sold in the same package as the device described in Subsection 
(4)(a)(i).
(b)
"Electronic cigarette" includes an oral device that is:
(i)
composed of a heating element, battery, or electronic circuit; and
(ii)
marketed, manufactured, distributed, or sold as:
(A)
an e-cigarette;
(B)
an e-cigar;
(C)
an e-pipe; or
(D)
any other product name or descriptor, if the function of the product meets the 
definition of Subsection (4)(a).
(c)
"Electronic cigarette" does not mean a medical cannabis device, as that term is 
defined in Section 
26B-4-201
.
(5)
"Electronic cigarette product" means an electronic cigarette, an electronic cigarette 
substance, or a prefilled electronic cigarette.
(6)
"Electronic cigarette substance" means any substance, including liquid containing 
nicotine, used or intended for use in an electronic cigarette.
(7)
(a)
"Flavored electronic cigarette product" means an electronic cigarette product that 
has a taste or smell that is distinguishable by an ordinary consumer either before or 
during use or consumption of the electronic cigarette product.
(b)
"Flavored electronic cigarette product" includes an electronic cigarette product that is 
labeled as, or has a taste or smell of any fruit, chocolate, vanilla, honey, candy, 
cocoa, dessert, alcoholic beverage, herb, spice, or mint.
(c)
"Flavored electronic cigarette product" does not include an electronic cigarette 
product that
has a taste or smell of only tobacco or menthol.
(8)
"Nicotine" means a poisonous, nitrogen containing chemical that is made synthetically 
or derived from tobacco or other plants.
(9)
"Nicotine product" means an alternative nicotine product or a nontherapeutic nicotine 
product.
(10)
(a)
"Nontherapeutic nicotine device" means a device that:
(i)
has a pressurized canister that is used to administer nicotine to the user through 
inhalation or intranasally;
(ii)
is not purchased with a prescription from a licensed physician; and
(iii)
is not approved by the United States Food and Drug Administration as nicotine 
replacement therapy.
(b)
"Nontherapeutic nicotine device" includes a nontherapeutic nicotine inhaler or a 
nontherapeutic nicotine nasal spray.
(11)
"Nontherapeutic nicotine device substance" means a substance that:
(a)
contains nicotine;
(b)
is sold in a cartridge for use in a nontherapeutic nicotine device;
(c)
is not purchased with a prescription from a licensed physician; and
(d)
is not approved by the United States Food and Drug Administration as nicotine 
replacement therapy.
(12)
"Nontherapeutic nicotine product" means a nontherapeutic nicotine device, a 
nontherapeutic nicotine device substance, or a prefilled nontherapeutic nicotine device.
(13)
"Place of business" includes:
(a)
a shop;
(b)
a store;
(c)
a factory;
(d)
a public garage;
(e)
an office;
(f)
a theater;
(g)
a recreation hall;
(h)
a dance hall;
(i)
a poolroom;
(j)
a cafe;
(k)
a cafeteria;
(l)
a cabaret;
(m)
a restaurant;
(n)
a hotel;
(o)
a lodging house;
(p)
a streetcar;
(q)
a bus;
(r)
an interurban or railway passenger coach;
(s)
a waiting room; and
(t)
any other place of business.
(14)
"Prefilled electronic cigarette" means an electronic cigarette that is sold prefilled with 
an electronic cigarette substance.
(15)
"Prefilled nontherapeutic nicotine device" means a nontherapeutic nicotine device that 
is sold prefilled with a nontherapeutic nicotine device substance.
(16)
"Premarket authorized or pending electronic cigarette product" means an electronic 
cigarette product that:
(a)
(i)
has been approved by an order granting a premarket tobacco product 
application of the electronic cigarette product by the United States Food and Drug 
Administration under 21 U.S.C. Sec. 387j(c)(1)(A)(i); or
(ii)
(A)
was marketed in the United States on or before August 8, 2016;
(B)
the manufacturer submitted a premarket tobacco product application for the 
electronic cigarette product to the United States Food and Drug Administration 
under 21 U.S.C. Sec. 387j on or before September 9, 2020; and
(C)
has an application described in Subsection 
(16)(a)(ii)
 that either remains 
under review by the United States Food and Drug Administration or a final 
decision on the application has not taken effect; and
(b)
does not exceed:
(i)
4.0% nicotine by weight per container; or
(ii)
a nicotine concentration of 40 milligrams per milliliter.
(17)
(16)
"Retail tobacco specialty business" means the same as that term is defined in 
Section 
26B-7-501
.
(18)
(17)
"Smoking" means the possession of any lighted cigar, cigarette, pipe, or other 
lighted smoking equipment.
(19)
(18)
(a)
"Tobacco paraphernalia" means equipment, product, or material of any 
kind that is used, intended for use, or designed for use to package, repackage, store, 
contain, conceal, ingest, inhale, or otherwise introduce a tobacco product, an 
electronic cigarette substance, or a nontherapeutic nicotine device substance into the 
human body.
(b)
"Tobacco paraphernalia" includes:
(i)
metal, wooden, acrylic, glass, stone, plastic, or ceramic pipes with or without 
screens, permanent screens, hashish heads, or punctured metal bowls;
(ii)
water pipes;
(iii)
carburetion tubes and devices;
(iv)
smoking and carburetion masks;
(v)
roach clips, meaning objects used to hold burning material, such as a cigarette, 
that has become too small or too short to be held in the hand;
(vi)
chamber pipes;
(vii)
carburetor pipes;
(viii)
electric pipes;
(ix)
air-driven pipes;
(x)
chillums;
(xi)
bongs; and
(xii)
ice pipes or chillers.
(c)
"Tobacco paraphernalia" does not include matches or lighters.
(20)
(19)
"Tobacco product" means:
(a)
a cigar;
(b)
a cigarette; or
(c)
tobacco in any form, including:
(i)
chewing tobacco; and
(ii)
any substitute for tobacco, including flavoring or additives to tobacco.
(21)
(20)
"Tobacco retailer" means:
(a)
a general tobacco retailer, as that term is defined in Section 
26B-7-501
; or
(b)
a retail tobacco specialty business.
Section 19, Section 
76-10-104
 is amended to read:
76-10-104. Providing a cigar, a cigarette, an electronic cigarette product, a 
nicotine product, or tobacco to a minor -- Penalties.
(1)
As used in this section "provides":
(a)
includes selling, giving, furnishing, sending, or causing to be sent; and
(b)
does not include the acts of the United States Postal Service or other common carrier 
when engaged in the business of transporting and delivering packages for others or 
the acts of a person, whether compensated or not, who transports or delivers a 
package for another person without any reason to know of the package's content.
(2)
An individual who knowingly, intentionally, recklessly, or with criminal negligence 
provides a tobacco product, an electronic cigarette product, or a nicotine product to an 
individual who is under 21 years old, is guilty of:
(a)
a class 
C
B
 misdemeanor on the first offense;
 and
(b)
a class B misdemeanor on the second offense; and
(c)
(b)
a class A misdemeanor on any subsequent offense.
(3)
This section does not apply to conduct of an employee of a tobacco retailer that is a 
violation of Section 
76-10-114
.
Section 20, Section 
76-10-104.1
 is amended to read:
76-10-104.1. Providing tobacco paraphernalia to a minor -- Penalties.
(1)
As used in this section, "provides":
(a)
includes selling, giving, furnishing, sending, or causing to be sent; and
(b)
does not include the acts of the United States Postal Service or other common carrier 
when engaged in the business of transporting and delivering packages for others or 
the acts of a person, whether compensated or not, who transports or delivers a 
package for another person without any reason to know of the package's content.
(2)
(a)
It is unlawful for an individual to knowingly, intentionally, recklessly, or with 
criminal negligence provide tobacco paraphernalia to an individual under 21 years 
old.
(b)
An individual who violates this section is guilty of:
(i)
a class 
C
B
 misdemeanor on the first offense; and
(ii)
a class 
B
A
 misdemeanor on any subsequent offense.
Section 21, Section 
76-10-105.1
 is amended to read:
76-10-105.1. Requirement of direct, face-to-face sale of a tobacco product, an 
electronic cigarette product, or a nicotine product -- Minors not allowed in tobacco 
specialty shop -- Penalties.
(1)
As used in this section:
(a)
(i)
"Face-to-face exchange" means a transaction made in person between an 
individual and a retailer or retailer's employee.
(ii)
"Face-to-face exchange" does not include a sale through a:
(A)
vending machine; or
(B)
self-service display.
(b)
"Retailer" means a person who:
(i)
sells a tobacco product, an electronic cigarette product, or a nicotine product to an 
individual for personal consumption; or
(ii)
operates a facility with a vending machine that sells a tobacco product, an 
electronic cigarette product, or a nicotine product.
(c)
"Self-service display" means a display of a tobacco product, an electronic cigarette 
product, or a nicotine product to which the public has access without the intervention 
of a retailer or retailer's employee.
(2)
Except as provided in Subsection 
(3)
, a retailer may sell a tobacco product, an electronic 
cigarette product, or a nicotine product only in a face-to-face exchange.
(3)
The face-to-face sale requirement in Subsection 
(2)
 does not apply to:
(a)
a mail-order, telephone, or Internet sale made in compliance with Section 
59-14-509
;
(b)
a sale from a vending machine or self-service display that is located in an area of a 
retailer's facility:
(i)
that is distinct and separate from the rest of the facility; and
(ii)
where the retailer only allows an individual who complies with Subsection 
(4)
 to 
be present; or
(c)
a sale at a retail tobacco specialty business.
(4)
An individual who is under 21 years old may not enter or be present at a retail tobacco 
specialty business unless the individual is:
(a)
accompanied by a parent or legal guardian; or
(b)
(i)
present at the retail tobacco specialty business solely for the purpose of 
providing a service to the retail tobacco specialty business, including making a 
delivery;
(ii)
monitored by the proprietor of the retail tobacco specialty business or an 
employee of the retail tobacco specialty business; and
(iii)
not permitted to make any purchase or conduct any commercial transaction other 
than the service described in Subsection 
(4)(b)(i)
.
(5)
A parent or legal guardian who accompanies, under Subsection 
(4)(a)
, an individual into 
an area described in Subsection 
(3)(b)
 or into a retail tobacco specialty business may not 
allow the individual to purchase a tobacco product, an electronic cigarette product, or a 
nicotine product.
(6)
A violation of Subsection 
(2)
 or 
(4)
 is a:
(a)
class 
C
B
 misdemeanor on the first offense;
 and
(b)
class B misdemeanor on the second offense; and
(c)
(b)
class A misdemeanor on any subsequent offenses.
(7)
An individual who violates Subsection 
(5)
 is guilty of an offense under Section 
76-10-104
.
Section 22, Section 
76-10-111
 is amended to read:
76-10-111. Restrictions on sale of smokeless tobacco or electronic cigarette 
products -- Exceptions.
(1)
The Legislature finds that:
(a)
smokeless tobacco, or chewing tobacco, is harmful to the health of individuals who 
use those products because research indicates that they may cause mouth or oral 
cancers;
(b)
the use of smokeless tobacco among juveniles in this state is increasing rapidly;
(c)
the use of electronic cigarette products may lead to unhealthy behavior such as the 
use of tobacco products; and
(d)
it is necessary to restrict the gift of the products described in this Subsection 
(1)
 in 
the interest of the health of the citizens of this state.
(2)
(a)
Except as provided in Subsection 
(3)
, it is unlawful for a manufacturer, 
wholesaler, and retailer to:
(i)
give or distribute without charge any smokeless tobacco, chewing tobacco, or 
electronic cigarette product in this state;
(ii)
sell, offer for sale, or furnish any electronic cigarette product at less than the cost, 
including the amount of any applicable tax, of the product to the manufacturer, 
wholesaler, or retailer; or
(iii)
give, distribute, sell, offer for sale, or furnish any electronic cigarette product for 
free or at a lower price because the recipient of the electronic cigarette product 
makes another purchase.
(b)
The price that a manufacturer, wholesaler, or retailer may charge under Subsection 
(2)(a)(ii)
 does not include a discount for:
(i)
a physical manufacturer coupon:
(A)
that is surrendered to the wholesaler or retailer at the time of sale; and
(B)
for which the manufacturer will reimburse the wholesaler or the retailer for 
the full amount of the discount described in the manufacturer coupon and 
provided to the purchaser;
(ii)
a rebate that will be paid to the manufacturer, the wholesaler, or the retailer for 
the full amount of the rebate provided to the purchaser; or
(iii)
a promotional fund that will be paid to the manufacturer, the wholesaler, or the 
retailer for the full amount of the promotional fund provided to the purchaser.
(c)
Any individual who violates this section is guilty of:
(i)
a class 
C
B
 misdemeanor for the first offense; and
(ii)
a class 
B
A
 misdemeanor for any subsequent offense.
(3)
Smokeless tobacco, chewing tobacco, or an electronic cigarette product may be 
distributed to adults without charge at professional conventions where the general public 
is excluded.
Section 23, Section 
76-10-112
 is amended to read:
76-10-112. Prohibition of distribution of a tobacco product -- Exceptions.
(1)
Except as provided in Subsection 
(3)
, it is unlawful for a manufacturer, wholesaler, or 
retailer to give or distribute a tobacco product in this state without charge.
(2)
An individual who violates this subsection is guilty of:
(a)
a class 
C
B
 misdemeanor for the first offense; and
(b)
a class 
B
A
 misdemeanor for any subsequent offense.
(3)
A tobacco product may be distributed to an adult without charge at a professional 
convention where the general public is excluded.
(4)
The prohibition described in Subsection 
(1)
 does not apply to a tobacco retailer, a 
manufacturer, or a distributor that gives a tobacco product to an individual who is 21 
years old or older upon the individual's purchase of a tobacco product.
Section 24, Section 
76-10-113
 is amended to read:
76-10-113. Prohibition on distribution of flavored electronic cigarette products 
-- Prohibition of electronic cigarette products without federal authorization.
(1)
Subject to Subsection (2), it 
It 
is unlawful for a tobacco retailer that is not a retail 
tobacco specialty business to give, distribute, sell, offer for sale, or furnish a flavored 
electronic cigarette product to any person.
(2)
Notwithstanding Subsection (1), and beginning on January 1, 2025, it is unlawful for a 
person to give, distribute, sell, offer for sale, or furnish to any person a flavored 
electronic cigarette product.
(3)
Beginning on January 1, 2025, it is unlawful for a person to give, distribute, sell, offer 
for sale, or furnish to any person an electronic cigarette product that is not a premarket 
authorized or pending electronic cigarette product.
(4)
(2)
An individual who violates this section is guilty of:
(a)
a class 
C
B
 misdemeanor for the first offense; and
(b)
a class 
B
A
 misdemeanor for any subsequent offense.
Section 25, Section 
76-10-114
 is amended to read:
76-10-114. Unlawful sale of a tobacco product, electronic cigarette product, or 
nicotine product.
(1)
As used in this section:
(a)
"Compensatory service" means service or unpaid work performed by an employee, in 
lieu of the payment of a fine or imprisonment.
(b)
"Employee" means an employee or an owner of a tobacco retailer.
(2)
It is unlawful for an employee to knowingly or intentionally sell or give a tobacco 
product, an electronic cigarette product, or a nicotine product in the course of business to 
an individual who is under 21 years old.
(3)
An employee who violates this section is:
(a)
on a first violation:
(i)
guilty of 
an infraction
a class C misdemeanor
; and
(ii)
subject to:
(A)
a fine not exceeding $1,000; or
(B)
compensatory service;
 or
(b)
on any subsequent violation:
(i)
guilty of a class 
C
B
 misdemeanor; and
(ii)
subject to:
(A)
a fine not exceeding $2,000; or
(B)
compensatory service.
Section 26, 
Repealer.
Electronic cigarette registry enforcement.
Electronic cigarette product registry.
Section 27. 
Effective Date.
This bill takes effect:
(1)
except as provided in Subsection (2), 
May 7, 2025
; or
(2)
if approved by two-thirds of all members elected to each house:
(a)
upon approval by the governor;
(b)
without the governor's signature, the day following the constitutional time limit of 
Utah Constitution, Article VII, Section 8; or
(c)
in the case of a veto, the date of veto override.
2-6-25 10:26 AM