03-04 19:04 4th Sub. (Green) H.B. 432 Matt MacPherson proposes the following substitute bill: 1 Tobacco and Electronic Cigarette Enforcement Modifications 2025 GENERAL SESSION STATE OF UTAH Chief Sponsor: Matt MacPherson Senate Sponsor: Todd Weiler 2 3 LONG TITLE 4 General Description: 5 This bill amends provisions related to tobacco and electronic cigarette products. 6 Highlighted Provisions: 7 This bill: 8 ▸ repeals the ban on flavored electronic cigarette products; 9 ▸ prohibits the sale of flavored electronic cigarette products if they do not meet certain 10 tracking requirements; 11 ▸ modifies the nicotine content limit for electronic cigarette products; 12 ▸ amends provisions related to electronic cigarette product enforcement; 13 ▸ excludes flavored electronic cigarette products from the requirement that electronic 14 cigarette products obtain premarket authorization from the federal Food and Drug 15 Administration; 16 ▸ creates a temporary registry for flavored electronic cigarette products; 17 ▸ modifies the electronic cigarette product registry; 18 ▸ creates a flavored electronic cigarette product registry; 19 ▸ creates requirements for what type of flavored electronic cigarette products may be sold 20 in the state; 21 ▸ requires the Department of Public Safety to create systems to improve enforcement of 22 tobacco and electronic cigarette laws; 23 ▸ creates penalties for general retail tobacco businesses that sell flavored electronic 24 cigarette products; 25 ▸ raises permit fees for general tobacco retailers; 26 ▸ for retail tobacco specialty businesses: 27 ● raises permit fees; 28 ● creates identification scanning requirements; and 4th Sub. H.B. 432 4th Sub. (Green) H.B. 432 03-04 19:04 29 ● creates surveillance footage requirements; 30 ▸ creates a tobacco handling permit for retail tobacco specialty business employees and 31 operators; 32 ▸ creates a tax on flavored electronic cigarette products; 33 ▸ amends criminal penalties regarding the illegal sale of tobacco and electronic cigarette 34 products; 35 ▸ creates a criminal penalty for the use of certain flavored electronic cigarettes; 36 ▸ prohibits retail tobacco specialty businesses from selling a product containing nicotine to 37 a restricted nicotine individual; 38 ▸ requires the court to designate an individual as a nicotine restricted individual if the 39 individual is convicted of providing certain products containing nicotine to a minor; and 40 ▸ includes a coordination clause with H.B. 21, Criminal Code Recodification and Cross 41 References, to ensure the policy changes made in this bill are accurately reflected if both 42 bills pass. 43 Money Appropriated in this Bill: 44 None 45 Other Special Clauses: 46 This bill provides a special effective date. 47 This bill provides a coordination clause. 48 Utah Code Sections Affected: 49 AMENDS: 50 10-8-41.6 (Effective upon governor's approval), as last amended by Laws of Utah 2024, 51 Chapter 470 52 17-50-333 (Effective upon governor's approval), as last amended by Laws of Utah 2024, 53 Chapter 470 54 26B-7-501 (Effective upon governor's approval), as renumbered and amended by Laws 55 of Utah 2023, Chapter 308 56 26B-7-505 (Effective upon governor's approval), as last amended by Laws of Utah 2024, 57 Chapter 470 58 26B-7-509 (Effective upon governor's approval), as renumbered and amended by Laws 59 of Utah 2023, Chapter 308 60 26B-7-511 (Effective upon governor's approval), as renumbered and amended by Laws 61 of Utah 2023, Chapter 308 62 26B-7-518 (Effective upon governor's approval), as renumbered and amended by Laws - 2 - 03-04 19:04 4th Sub. (Green) H.B. 432 63 of Utah 2023, Chapter 308 64 26B-7-521 (Effective upon governor's approval), as renumbered and amended by Laws 65 of Utah 2023, Chapter 308 66 53-1-106 [(Effective 12/31/24) ] (Effective upon governor's approval), as last amended by 67 Laws of Utah 2024, Chapter 506 68 59-14-102 (Effective upon governor's approval), as last amended by Laws of Utah 2022, 69 Chapter 199 70 59-14-810 (Effective upon governor's approval), as enacted by Laws of Utah 2024, 71 Chapter 470 72 63I-2-226 [(Effective 07/01/24) ] (Effective upon governor's approval), as last amended by 73 Laws of Utah 2024, Third Special Session, Chapter 5 74 63I-2-259 (Effective 06/21/24), as last amended by Laws of Utah 2024, Third Special 75 Session, Chapter 5 76 76-10-101 (Effective upon governor's approval), as last amended by Laws of Utah 2024, 77 Chapter 470 78 76-10-104 (Effective upon governor's approval), as last amended by Laws of Utah 2020, 79 Chapters 302, 347 80 76-10-104.1 (Effective upon governor's approval), as last amended by Laws of Utah 81 2020, Chapters 302, 347 82 76-10-105.1 (Effective upon governor's approval), as last amended by Laws of Utah 83 2021, Chapter 348 84 76-10-111 (Effective upon governor's approval), as last amended by Laws of Utah 2020, 85 Chapters 302, 347 86 76-10-112 (Effective upon governor's approval), as last amended by Laws of Utah 2020, 87 Chapter 302 88 76-10-113 (Effective upon governor's approval), as last amended by Laws of Utah 2024, 89 Chapter 470 90 76-10-114 (Effective upon governor's approval), as last amended by Laws of Utah 2021, 91 First Special Session, Chapter 12 92 ENACTS: 93 26B-7-505.1 (Effective upon governor's approval), Utah Code Annotated 1953 94 26B-7-523 (Effective upon governor's approval), Utah Code Annotated 1953 95 59-14-901 (Effective 01/01/26), Utah Code Annotated 1953 96 59-14-902 (Effective 01/01/26), Utah Code Annotated 1953 - 3 - 4th Sub. (Green) H.B. 432 03-04 19:04 97 59-14-903 (Effective 01/01/26), Utah Code Annotated 1953 98 59-14-904 (Effective 01/01/26), Utah Code Annotated 1953 99 59-14-905 (Effective 01/01/26), Utah Code Annotated 1953 100 59-14-906 (Effective 01/01/26), Utah Code Annotated 1953 101 59-14-907 (Effective 01/01/26), Utah Code Annotated 1953 102 59-14-908 (Effective 01/01/26), Utah Code Annotated 1953 103 76-10-113.1 (Effective upon governor's approval), Utah Code Annotated 1953 104 76-10-113.2 (Effective upon governor's approval), Utah Code Annotated 1953 105 REPEALS: 106 26A-1-131 (Effective upon governor's approval), as enacted by Laws of Utah 2024, 107 Chapter 470 108 Utah Code Sections affected by Coordination Clause: 109 110 Be it enacted by the Legislature of the state of Utah: 111 Section 1. Section 10-8-41.6 is amended to read: 112 10-8-41.6 (Effective upon governor's approval). Regulation of retail tobacco 113 specialty business. 114 (1) As used in this section: 115 (a) "Community location" means: 116 (i) a public or private kindergarten, elementary, middle, junior high, or high school; 117 (ii) a licensed child-care facility or preschool; 118 (iii) a trade or technical school; 119 (iv) a church; 120 (v) a public library; 121 (vi) a public playground; 122 (vii) a public park; 123 (viii) a youth center or other space used primarily for youth oriented activities; 124 (ix) a public recreational facility; 125 (x) a public arcade; or 126 (xi) for a new license issued on or after July 1, 2018, a homeless shelter. 127 (b) "Department" means the Department of Health and Human Services created in 128 Section 26B-1-201. 129 (c) "Electronic cigarette product" means the same as that term is defined in Section 130 76-10-101. - 4 - 03-04 19:04 4th Sub. (Green) H.B. 432 131 (d) "Flavored electronic cigarette product" means the same as that term is defined in 132 Section 76-10-101. 133 [(d)] (e) "Licensee" means a person licensed under this section to conduct business as a 134 retail tobacco specialty business. 135 [(e)] (f) "Local health department" means the same as that term is defined in Section 136 26A-1-102. 137 [(f)] (g) "Nicotine product" means the same as that term is defined in Section 76-10-101. 138 [(g)] (h) "Retail tobacco specialty business" means a commercial establishment in which: 139 (i) sales of tobacco products, electronic cigarette products, and nicotine products 140 account for more than 35% of the total quarterly gross receipts for the 141 establishment; 142 (ii) 20% or more of the public retail floor space is allocated to the offer, display, or 143 storage of tobacco products, electronic cigarette products, or nicotine products; 144 (iii) 20% or more of the total shelf space is allocated to the offer, display, or storage 145 of tobacco products, electronic cigarette products, or nicotine products; 146 (iv) the commercial establishment: 147 (A) holds itself out as a retail tobacco specialty business; and 148 (B) causes a reasonable person to believe the commercial establishment is a retail 149 tobacco specialty business;[ or] 150 (v) the retail space features a self-service display for tobacco products, electronic 151 cigarette products, or nicotine products[.] ; or 152 (vi) any flavored electronic cigarette product is sold. 153 [(h)] (i) "Self-service display" means the same as that term is defined in Section 154 76-10-105.1. 155 [(i)] (j) "Tobacco product" means: 156 (i) a tobacco product as defined in Section 76-10-101; or 157 (ii) tobacco paraphernalia as defined in Section 76-10-101. 158 (2) The regulation of a retail tobacco specialty business is an exercise of the police powers 159 of the state by the state or by delegation of the state's police powers to other 160 governmental entities. 161 (3)(a) A person may not operate a retail tobacco specialty business in a municipality 162 unless the person obtains a license from the municipality in which the retail tobacco 163 specialty business is located. 164 (b) A municipality may only issue a retail tobacco specialty business license to a person - 5 - 4th Sub. (Green) H.B. 432 03-04 19:04 165 if the person complies with the provisions of Subsections (4) and (5). 166 (4)(a) Except as provided in Subsection (7), a municipality may not issue a license for a 167 person to conduct business as a retail tobacco specialty business if the retail tobacco 168 specialty business is located within: 169 (i) 1,000 feet of a community location; 170 (ii) 600 feet of another retail tobacco specialty business; or 171 (iii) 600 feet from property used or zoned for: 172 (A) agriculture use; or 173 (B) residential use. 174 (b) For purposes of Subsection (4)(a), the proximity requirements shall be measured in a 175 straight line from the nearest entrance of the retail tobacco specialty business to the 176 nearest property boundary of a location described in Subsections (4)(a)(i) through 177 (iii), without regard to intervening structures or zoning districts. 178 (5) A municipality may not issue or renew a license for a person to conduct business as a 179 retail tobacco specialty business until the person provides the municipality with proof 180 that the retail tobacco specialty business has: 181 (a) a valid permit for a retail tobacco specialty business issued under Title 26B, Chapter 182 7, Part 5, Regulation of Smoking, Tobacco Products, and Nicotine Products, by the 183 local health department having jurisdiction over the area in which the retail tobacco 184 specialty business is located; and 185 (b)(i) for a retailer that sells a tobacco product, a valid license issued by the State Tax 186 Commission in accordance with Section 59-14-201 or 59-14-301 to sell a tobacco 187 product; and 188 (ii) for a retailer that sells an electronic cigarette product or a nicotine product, a valid 189 license issued by the State Tax Commission in accordance with Section 59-14-803 190 to sell an electronic cigarette product or a nicotine product. 191 (6)(a) Nothing in this section: 192 (i) requires a municipality to issue a retail tobacco specialty business license; or 193 (ii) prohibits a municipality from adopting more restrictive requirements on a person 194 seeking a license or renewal of a license to conduct business as a retail tobacco 195 specialty business. 196 (b) A municipality may suspend or revoke a retail tobacco specialty business license 197 issued under this section: 198 (i) if a licensee engages in a pattern of unlawful activity under Title 76, Chapter 10, - 6 - 03-04 19:04 4th Sub. (Green) H.B. 432 199 Part 16, Pattern of Unlawful Activity Act; 200 (ii) if a licensee violates federal law or federal regulations restricting the sale and 201 distribution of tobacco products or electronic cigarette products to protect children 202 and adolescents; 203 (iii) upon the recommendation of the department or a local health department under 204 Title 26B, Chapter 7, Part 5, Regulation of Smoking, Tobacco Products, and 205 Nicotine Products; or 206 (iv) under any other provision of state law or local ordinance. 207 (7)(a) A retail tobacco specialty business is exempt from Subsection (4) if: 208 (i) on or before December 31, 2018, the retail tobacco specialty business was issued a 209 license to conduct business as a retail tobacco specialty business; 210 (ii) the retail tobacco specialty business is operating in a municipality in accordance 211 with all applicable laws except for the requirement in Subsection (4); and 212 (iii) beginning July 1, 2022, the retail tobacco specialty business is not located within 213 1,000 feet of a public or private kindergarten, elementary, middle, junior high, or 214 high school. 215 (b) A retail tobacco specialty business may maintain an exemption under Subsection 216 (7)(a) if: 217 (i) the license described in Subsection (7)(a)(i) is renewed continuously without lapse 218 or permanent revocation; 219 (ii) the retail tobacco specialty business does not close for business or otherwise 220 suspend the sale of tobacco products, electronic cigarette products, or nicotine 221 products for more than 60 consecutive days; 222 (iii) the retail tobacco specialty business does not substantially change the business 223 premises or business operation; and 224 (iv) the retail tobacco specialty business maintains the right to operate under the 225 terms of other applicable laws, including: 226 (A) Section 26B-7-503; 227 (B) zoning ordinances; 228 (C) building codes; and 229 (D) the requirements of the license described in Subsection (7)(a)(i). 230 (c) A retail tobacco specialty business that does not qualify for an exemption under 231 Subsection (7)(a) is exempt from Subsection (4) if: 232 (i) on or before December 31, 2018, the retail tobacco specialty business was issued a - 7 - 4th Sub. (Green) H.B. 432 03-04 19:04 233 general tobacco retailer permit or a retail tobacco specialty business permit under 234 Title 26B, Chapter 7, Part 5, Regulation of Smoking, Tobacco Products, and 235 Nicotine Products, by the local health department having jurisdiction over the area 236 in which the retail tobacco specialty business is located; 237 (ii) the retail tobacco specialty business is operating in the municipality in accordance 238 with all applicable laws except for the requirement in Subsection (4); and 239 (iii) beginning July 1, 2022, the retail tobacco specialty business is not located within 240 1,000 feet of a public or private kindergarten, elementary, middle, junior high, or 241 high school. 242 (d) Except as provided in Subsection (7)(e), a retail tobacco specialty business may 243 maintain an exemption under Subsection (7)(c) if: 244 (i) on or before December 31, 2020, the retail tobacco specialty business receives a 245 retail tobacco specialty business permit from the local health department having 246 jurisdiction over the area in which the retail tobacco specialty business is located; 247 (ii) the permit described in Subsection (7)(d)(i) is renewed continuously without 248 lapse or permanent revocation; 249 (iii) the retail tobacco specialty business does not close for business or otherwise 250 suspend the sale of tobacco products, electronic cigarette products, or nicotine 251 products for more than 60 consecutive days; 252 (iv) the retail tobacco specialty business does not substantially change the business 253 premises or business operation as the business existed when the retail tobacco 254 specialty business received a permit under Subsection (7)(d)(i); and 255 (v) the retail tobacco specialty business maintains the right to operate under the terms 256 of other applicable laws, including: 257 (A) Section 26B-7-503; 258 (B) zoning ordinances; 259 (C) building codes; and 260 (D) the requirements of the retail tobacco permit described in Subsection (7)(d)(i). 261 (e) A retail tobacco specialty business described in Subsection (7)(a) or (b) that is 262 located within 1,000 feet of a public or private kindergarten, elementary, middle, 263 junior high, or high school before July 1, 2022, is exempt from Subsection 264 (4)(a)(iii)(B) if the retail tobacco specialty business: 265 (i) relocates, before July 1, 2022, to a property that is used or zoned for commercial 266 use and located within a group of architecturally unified commercial - 8 - 03-04 19:04 4th Sub. (Green) H.B. 432 267 establishments built on a site that is planned, developed, owned, and managed as 268 an operating unit; and 269 (ii) continues to meet the requirements described in Subsection (7)(b) that are not 270 directly related to the relocation described in this Subsection (7)(e). 271 Section 2. Section 17-50-333 is amended to read: 272 17-50-333 (Effective upon governor's approval). Regulation of retail tobacco 273 specialty business. 274 (1) As used in this section: 275 (a) "Community location" means: 276 (i) a public or private kindergarten, elementary, middle, junior high, or high school; 277 (ii) a licensed child-care facility or preschool; 278 (iii) a trade or technical school; 279 (iv) a church; 280 (v) a public library; 281 (vi) a public playground; 282 (vii) a public park; 283 (viii) a youth center or other space used primarily for youth oriented activities; 284 (ix) a public recreational facility; 285 (x) a public arcade; or 286 (xi) for a new license issued on or after July 1, 2018, a homeless shelter. 287 (b) "Department" means the Department of Health and Human Services created in 288 Section 26B-1-201. 289 (c) "Electronic cigarette product" means the same as that term is defined in Section 290 76-10-101. 291 (d) "Flavored electronic cigarette product" means the same as that term is defined in 292 Section 76-10-101. 293 [(d)] (e) "Licensee" means a person licensed under this section to conduct business as a 294 retail tobacco specialty business. 295 [(e)] (f) "Local health department" means the same as that term is defined in Section 296 26A-1-102. 297 [(f)] (g) "Nicotine product" means the same as that term is defined in Section 76-10-101. 298 [(g)] (h) "Retail tobacco specialty business" means a commercial establishment in which: 299 (i) sales of tobacco products, electronic cigarette products, and nicotine products 300 account for more than 35% of the total quarterly gross receipts for the - 9 - 4th Sub. (Green) H.B. 432 03-04 19:04 301 establishment; 302 (ii) 20% or more of the public retail floor space is allocated to the offer, display, or 303 storage of tobacco products, electronic cigarette products, or nicotine products; 304 (iii) 20% or more of the total shelf space is allocated to the offer, display, or storage 305 of tobacco products, electronic cigarette products, or nicotine products; 306 (iv) the commercial establishment: 307 (A) holds itself out as a retail tobacco specialty business; and 308 (B) causes a reasonable person to believe the commercial establishment is a retail 309 tobacco specialty business;[ or] 310 (v) the retail space features a self-service display for tobacco products, electronic 311 cigarette products, or nicotine products[.] ; or 312 (vi) any flavored electronic cigarette product is sold. 313 [(h)] (i) "Self-service display" means the same as that term is defined in Section 314 76-10-105.1. 315 [(i)] (j) "Tobacco product" means: 316 (i) the same as that term is defined in Section 76-10-101; or 317 (ii) tobacco paraphernalia as defined in Section 76-10-101. 318 (2) The regulation of a retail tobacco specialty business is an exercise of the police powers 319 of the state by the state or by the delegation of the state's police power to other 320 governmental entities. 321 (3)(a) A person may not operate a retail tobacco specialty business in a county unless the 322 person obtains a license from the county in which the retail tobacco specialty 323 business is located. 324 (b) A county may only issue a retail tobacco specialty business license to a person if the 325 person complies with the provisions of Subsections (4) and (5). 326 (4)(a) Except as provided in Subsection (7), a county may not issue a license for a 327 person to conduct business as a retail tobacco specialty business if the retail tobacco 328 specialty business is located within: 329 (i) 1,000 feet of a community location; 330 (ii) 600 feet of another retail tobacco specialty business; or 331 (iii) 600 feet from property used or zoned for: 332 (A) agriculture use; or 333 (B) residential use. 334 (b) For purposes of Subsection (4)(a), the proximity requirements shall be measured in a - 10 - 03-04 19:04 4th Sub. (Green) H.B. 432 335 straight line from the nearest entrance of the retail tobacco specialty business to the 336 nearest property boundary of a location described in Subsections (4)(a)(i) through 337 (iii), without regard to intervening structures or zoning districts. 338 (5) A county may not issue or renew a license for a person to conduct business as a retail 339 tobacco specialty business until the person provides the county with proof that the retail 340 tobacco specialty business has: 341 (a) a valid permit for a retail tobacco specialty business issued under Title 26B, Chapter 342 7, Part 5, Regulation of Smoking, Tobacco Products, and Nicotine Products, by the 343 local health department having jurisdiction over the area in which the retail tobacco 344 specialty business is located; and 345 (b)(i) for a retailer that sells a tobacco product, a valid license issued by the State Tax 346 Commission in accordance with Section 59-14-201 or 59-14-301 to sell a tobacco 347 product; or 348 (ii) for a retailer that sells an electronic cigarette product or a nicotine product, a valid 349 license issued by the State Tax Commission in accordance with Section 59-14-803 350 to sell an electronic cigarette product or a nicotine product. 351 (6)(a) Nothing in this section: 352 (i) requires a county to issue a retail tobacco specialty business license; or 353 (ii) prohibits a county from adopting more restrictive requirements on a person 354 seeking a license or renewal of a license to conduct business as a retail tobacco 355 specialty business. 356 (b) A county may suspend or revoke a retail tobacco specialty business license issued 357 under this section: 358 (i) if a licensee engages in a pattern of unlawful activity under Title 76, Chapter 10, 359 Part 16, Pattern of Unlawful Activity Act; 360 (ii) if a licensee violates federal law or federal regulations restricting the sale and 361 distribution of tobacco products or electronic cigarette products to protect children 362 and adolescents; 363 (iii) upon the recommendation of the department or a local health department under 364 Title 26B, Chapter 7, Part 5, Regulation of Smoking, Tobacco Products, and 365 Nicotine Products; or 366 (iv) under any other provision of state law or local ordinance. 367 (7)(a) Except as provided in Subsection (7)(e), a retail tobacco specialty business is 368 exempt from Subsection (4) if: - 11 - 4th Sub. (Green) H.B. 432 03-04 19:04 369 (i) on or before December 31, 2018, the retail tobacco specialty business was issued a 370 license to conduct business as a retail tobacco specialty business; 371 (ii) the retail tobacco specialty business is operating in a county in accordance with 372 all applicable laws except for the requirement in Subsection (4); and 373 (iii) beginning July 1, 2022, the retail tobacco specialty business is not located within 374 1,000 feet of a public or private kindergarten, elementary, middle, junior high, or 375 high school. 376 (b) A retail tobacco specialty business may maintain an exemption under Subsection 377 (7)(a) if: 378 (i) the license described in Subsection (7)(a)(i) is renewed continuously without lapse 379 or permanent revocation; 380 (ii) the retail tobacco specialty business does not close for business or otherwise 381 suspend the sale of tobacco products, electronic cigarette products, or nicotine 382 products for more than 60 consecutive days; 383 (iii) the retail tobacco specialty business does not substantially change the business 384 premises or business operation; and 385 (iv) the retail tobacco specialty business maintains the right to operate under the 386 terms of other applicable laws, including: 387 (A) [Title 26, Chapter 38, Utah Indoor Clean Air Act] Section 26B-7-503; 388 (B) zoning ordinances; 389 (C) building codes; and 390 (D) the requirements of the license described in Subsection (7)(a)(i). 391 (c) A retail tobacco specialty business that does not qualify for an exemption under 392 Subsection (7)(a) is exempt from Subsection (4) if: 393 (i) on or before December 31, 2018, the retail tobacco specialty business was issued a 394 general tobacco retailer permit or a retail tobacco specialty business permit under [ 395 Title 26, Chapter 62, Tobacco, Electronic Cigarette, and Nicotine Product Retail 396 Permit] Title 26B, Chapter 7, Part 5, Regulation of Smoking, Tobacco Products, 397 and Nicotine Products, by the local health department having jurisdiction over the 398 area in which the retail tobacco specialty business is located; 399 (ii) the retail tobacco specialty business is operating in the county in accordance with 400 all applicable laws except for the requirement in Subsection (4); and 401 (iii) beginning July 1, 2022, the retail tobacco specialty business is not located within 402 1,000 feet of a public or private kindergarten, elementary, middle, junior high, or - 12 - 03-04 19:04 4th Sub. (Green) H.B. 432 403 high school. 404 (d) A retail tobacco specialty business may maintain an exemption under Subsection 405 (7)(c) if: 406 (i) on or before December 31, 2020, the retail tobacco specialty business receives a 407 retail tobacco specialty business permit from the local health department having 408 jurisdiction over the area in which the retail tobacco specialty business is located; 409 (ii) the permit described in Subsection (7)(d)(i) is renewed continuously without 410 lapse or permanent revocation; 411 (iii) the retail tobacco specialty business does not close for business or otherwise 412 suspend the sale of tobacco products, electronic cigarette products, or nicotine 413 products for more than 60 consecutive days; 414 (iv) the retail tobacco specialty business does not substantially change the business 415 premises or business operation as the business existed when the retail tobacco 416 specialty business received a permit under Subsection (7)(d)(i); and 417 (v) the retail tobacco specialty business maintains the right to operate under the terms 418 of other applicable laws, including: 419 (A) [Title 26, Chapter 38, Utah Indoor Clean Air Act] Section 26B-7-503; 420 (B) zoning ordinances; 421 (C) building codes; and 422 (D) the requirements of the retail tobacco permit described in Subsection (7)(d)(i). 423 (e) A retail tobacco specialty business described in Subsection (7)(a) or (b) that is 424 located within 1,000 feet of a public or private kindergarten, elementary, middle, 425 junior high, or high school before July 1, 2022, is exempt from Subsection 426 (4)(a)(iii)(B) if the retail tobacco specialty business: 427 (i) relocates, before July 1, 2022, to a property that is used or zoned for commercial 428 use and located within a group of architecturally unified commercial 429 establishments built on a site that is planned, developed, owned, and managed as 430 an operating unit; and 431 (ii) continues to meet the requirements described in Subsection (7)(b) that are not 432 directly related to the relocation described in this Subsection (7)(e). 433 Section 3. Section 26B-7-501 is amended to read: 434 26B-7-501 (Effective upon governor's approval). Definitions. 435 As used in this part: 436 (1) "Community location" means the same as that term is defined: - 13 - 4th Sub. (Green) H.B. 432 03-04 19:04 437 (a) as it relates to a municipality, in Section 10-8-41.6; and 438 (b) as it relates to a county, in Section 17-50-333. 439 (2) "Electronic cigarette" means the same as that term is defined in Section 76-10-101. 440 (3) "Electronic cigarette product" means the same as that term is defined in Section 441 76-10-101. 442 (4) "Electronic cigarette substance" means the same as that term is defined in Section 443 76-10-101. 444 (5) "Employee" means an employee of a tobacco retailer. 445 (6) "Enforcing agency" means the department, or any local health department enforcing the 446 provisions of this part. 447 (7) "Flavored electronic cigarette product" means the same as that term is defined in 448 Section 76-10-101. 449 [(7)] (8) "General tobacco retailer" means a tobacco retailer that is not a retail tobacco 450 specialty business. 451 [(8)] (9) "Local health department" means the same as that term is defined in Section 452 26A-1-102. 453 [(9)] (10) "Manufacture" includes: 454 (a) to cast, construct, or make electronic cigarettes; or 455 (b) to blend, make, process, or prepare an electronic cigarette substance. 456 [(10)] (11) "Manufacturer sealed electronic cigarette substance" means an electronic 457 cigarette substance that is sold in a container that: 458 (a) is prefilled by the electronic cigarette substance manufacturer; and 459 (b) the electronic cigarette manufacturer does not intend for a consumer to open. 460 [(11)] (12) "Manufacturer sealed electronic cigarette product" means: 461 (a) an electronic cigarette substance or container that the electronic cigarette 462 manufacturer does not intend for a consumer to open or refill; or 463 (b) a prefilled electronic cigarette as that term is defined in Section 76-10-101. 464 [(12)] (13) "Nicotine" means the same as that term is defined in Section 76-10-101. 465 [(13)] (14) "Nicotine product" means the same as that term is defined in Section 76-10-101. 466 (15) "Nicotine restricted individual" means the same as that term is defined in Section 467 76-10-101. 468 [(14)] (16) "Non-tobacco shisha" means any product that: 469 (a) does not contain tobacco or nicotine; and 470 (b) is smoked or intended to be smoked in a hookah or water pipe. - 14 - 03-04 19:04 4th Sub. (Green) H.B. 432 471 [(15)] (17) "Owner" means a person holding a 20% ownership interest in the business that is 472 required to obtain a permit under this part. 473 [(16)] (18) "Permit" means a tobacco retail permit issued under Section 26B-7-507. 474 [(17)] (19) "Place of public access" means any enclosed indoor place of business, 475 commerce, banking, financial service, or other service-related activity, whether publicly 476 or privately owned and whether operated for profit or not, to which persons not 477 employed at the place of public access have general and regular access or which the 478 public uses, including: 479 (a) buildings, offices, shops, elevators, or restrooms; 480 (b) means of transportation or common carrier waiting rooms; 481 (c) restaurants, cafes, or cafeterias; 482 (d) taverns as defined in Section 32B-1-102, or cabarets; 483 (e) shopping malls, retail stores, grocery stores, or arcades; 484 (f) libraries, theaters, concert halls, museums, art galleries, planetariums, historical sites, 485 auditoriums, or arenas; 486 (g) barber shops, hair salons, or laundromats; 487 (h) sports or fitness facilities; 488 (i) common areas of nursing homes, hospitals, resorts, hotels, motels, "bed and 489 breakfast" lodging facilities, and other similar lodging facilities, including the 490 lobbies, hallways, elevators, restaurants, cafeterias, other designated dining areas, and 491 restrooms of any of these; 492 (j)(i) any child care facility or program subject to licensure or certification under this 493 title, including those operated in private homes, when any child cared for under 494 that license is present; and 495 (ii) any child care, other than child care as defined in Section 26B-2-401, that is not 496 subject to licensure or certification under this title, when any child cared for by the 497 provider, other than the child of the provider, is present; 498 (k) public or private elementary or secondary school buildings and educational facilities 499 or the property on which those facilities are located; 500 (l) any building owned, rented, leased, or otherwise operated by a social, fraternal, or 501 religious organization when used solely by the organization members or the 502 members' guests or families; 503 (m) any facility rented or leased for private functions from which the general public is 504 excluded and arrangements for the function are under the control of the function - 15 - 4th Sub. (Green) H.B. 432 03-04 19:04 505 sponsor; 506 (n) any workplace that is not a place of public access or a publicly owned building or 507 office but has one or more employees who are not owner-operators of the business; 508 (o) any area where the proprietor or manager of the area has posted a conspicuous sign 509 stating "no smoking", "thank you for not smoking", or similar statement; and 510 (p) a holder of a bar establishment license, as defined in Section 32B-1-102. 511 [(18)] (20)(a) "Proof of age" means: 512 (i) a valid identification card issued under Title 53, Chapter 3, Part 8, Identification 513 Card Act; 514 (ii) a valid identification that: 515 (A) is substantially similar to an identification card issued under Title 53, Chapter 516 3, Part 8, Identification Card Act; 517 (B) is issued in accordance with the laws of a state other than Utah in which the 518 identification is issued; 519 (C) includes date of birth; and 520 (D) has a picture affixed; 521 (iii) a valid driver license certificate that is issued under Title 53, Chapter 3, Uniform 522 Driver License Act, or in accordance with the laws of the state in which the valid 523 driver license is issued; 524 (iv) a valid United States military identification card that: 525 (A) includes date of birth; and 526 (B) has a picture affixed; or 527 (v) a valid passport. 528 (b) "Proof of age" does not include a valid driving privilege card issued in accordance 529 with Section 53-3-207. 530 [(19)] (21) "Publicly owned building or office" means any enclosed indoor place or portion 531 of a place owned, leased, or rented by any state, county, or municipal government, or by 532 any agency supported by appropriation of, or by contracts or grants from, funds derived 533 from the collection of federal, state, county, or municipal taxes. 534 [(20)] (22) "Retail tobacco specialty business" means the same as that term is defined: 535 (a) as it relates to a municipality, in Section 10-8-41.6; and 536 (b) as it relates to a county, in Section 17-50-333. 537 [(21)] (23) "Shisha" means any product that: 538 (a) contains tobacco or nicotine; and - 16 - 03-04 19:04 4th Sub. (Green) H.B. 432 539 (b) is smoked or intended to be smoked in a hookah or water pipe. 540 [(22)] (24) "Smoking" means: 541 (a) the possession of any lighted or heated tobacco product in any form; 542 (b) inhaling, exhaling, burning, or carrying any lighted or heated cigar, cigarette, pipe, or 543 hookah that contains: 544 (i) tobacco or any plant product intended for inhalation; 545 (ii) shisha or non-tobacco shisha; 546 (iii) nicotine; 547 (iv) a natural or synthetic tobacco substitute; or 548 (v) a natural or synthetic flavored tobacco product; 549 (c) using an electronic cigarette; or 550 (d) using an oral smoking device intended to circumvent the prohibition of smoking in 551 this part. 552 [(23)] (25) "Tax commission license" means a license issued by the State Tax Commission 553 under: 554 (a) Section 59-14-201 to sell a cigarette at retail; 555 (b) Section 59-14-301 to sell a tobacco product at retail; or 556 (c) Section 59-14-803 to sell an electronic cigarette product or a nicotine product. 557 [(24)] (26) "Tobacco product" means: 558 (a) a tobacco product as defined in Section 76-10-101; or 559 (b) tobacco paraphernalia as defined in Section 76-10-101. 560 [(25)] (27) "Tobacco retailer" means a person that is required to obtain a tax commission 561 license. 562 Section 4. Section 26B-7-505 is amended to read: 563 26B-7-505 (Effective upon governor's approval). Electronic cigarette products -- 564 Labeling -- Requirements to sell -- Advertising -- Labeling of nicotine products 565 containing nicotine. 566 (1) The department shall, in consultation with a local health department and with input from 567 members of the public, establish by rule made in accordance with Title 63G, Chapter 3, 568 Utah Administrative Rulemaking Act, the requirements to sell an electronic cigarette 569 substance that is not a manufacturer sealed electronic cigarette substance regarding: 570 (a) labeling; 571 (b) nicotine content; 572 (c) packaging; and - 17 - 4th Sub. (Green) H.B. 432 03-04 19:04 573 (d) product quality. 574 (2) On or before January 1, 2021, the department shall, in consultation with a local health 575 department and with input from members of the public, establish by rule made in 576 accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the 577 requirements to sell a manufacturer sealed electronic cigarette product regarding: 578 (a) labeling; 579 [(b) nicotine content;] 580 [(c)] (b) packaging; and 581 [(d)] (c) product quality. 582 (3)(a) A person may not sell an electronic cigarette substance unless the electronic 583 cigarette substance complies with the requirements established by the department 584 under Subsection (1). 585 (b) Beginning on July 1, 2021, a person may not sell a manufacturer sealed electronic 586 cigarette product unless the manufacturer sealed electronic cigarette product complies 587 with the requirements established by the department under Subsection (2). 588 (c) A product described in Subsection (2) may not exceed: 589 (i) 5% nicotine by weight per container; or 590 (ii) a nicotine concentration of 59 milligrams per milliliter. 591 [(c)] (d) Notwithstanding Subsections (3)(a) and (3)(b), beginning on January 1, 2025, a [ 592 person] general tobacco retailer may not sell an electronic cigarette product that is not [ 593 a premarket authorized or pending electronic cigarette product as that term is defined 594 in Section 76-10-101] on the registry described in Section 59-14-810. 595 (e) Notwithstanding Subsections (3)(a) and (3)(b), beginning on May 1, 2025, a retail 596 tobacco specialty business may not sell an electronic cigarette product that is not on a 597 registry described in Section 26B-7-505.1, 59-14-810, or 59-14-908. 598 (4)(a) A local health department may not enact a rule or regulation regarding electronic 599 cigarette substance labeling, nicotine content, packaging, or product quality that is 600 not identical to the requirements established by the department under Subsections (1) 601 and (2). 602 (b) Except as provided in Subsection (4)(c), a local health department may enact a rule 603 or regulation regarding electronic cigarette substance manufacturing. 604 (c) A local health department may not enact a rule or regulation regarding a 605 manufacturer sealed electronic cigarette product. 606 (5) A person may not advertise an electronic cigarette product as a tobacco cessation device. - 18 - 03-04 19:04 4th Sub. (Green) H.B. 432 607 (6)(a) Any nicotine product shall contain the statement described in Subsection (6)(b) if 608 the nicotine product: 609 (i)(A) is not a tobacco product as defined in 21 U.S.C. Sec. 321 and related federal 610 regulations; or 611 (B) is not otherwise required under federal or state law to contain a nicotine 612 warning; and 613 (ii) contains nicotine. 614 (b) A statement shall appear on the exterior packaging of a nicotine product described in 615 Subsection (6)(a) as follows: 616 "This product contains nicotine." 617 (7)(a) The department shall establish by rule made in accordance with Title 63G, 618 Chapter 3, Utah Administrative Rulemaking Act, the requirements for a flavored 619 electronic cigarette product to be sold in the state and listed on the registry described 620 in Section 59-14-908. 621 (b) The department shall ensure that rules made under this Subsection (7) allow for the 622 sale of a flavored electronic cigarette product. 623 (c) A flavored electronic cigarette product may not be sold in this state if: 624 (i) the product contains or is marketed as containing a flavoring other than: 625 (A) a fruit flavoring not including chocolate; 626 (B) an herb flavoring; or 627 (C) a spice flavoring; or 628 (ii)(A) the product's final assembly is done outside the United States; or 629 (B) the product does not have federal authorization to be sold in the United States. 630 (d) A flavored electronic cigarette product's packaging that contains any other 631 information, text, or imagery not described in Subsection (7)(e) may not be sold in 632 the state. 633 (e) A flavored electronic cigarette product may be sold in the state if the product's 634 outside packaging only contains: 635 (i) the name of the product; 636 (ii) a single logo of the product's manufacturer; and 637 (iii) the information required by: 638 (A) this section; 639 (B) rules made under this section; and 640 (C) federal law; and - 19 - 4th Sub. (Green) H.B. 432 03-04 19:04 641 (iv) flavor descriptions that describe the fruit, herb, or spice flavor profile the product 642 is attempting to replicate without additional superlatives or intensifiers. 643 (f) When conducting a review of a flavored electronic cigarette product for inclusion in 644 the registry described in Section 59-14-908, the department may request samples of 645 the product's packaging to ensure compliance with this section. 646 Section 5. Section 26B-7-505.1 is enacted to read: 647 26B-7-505.1 (Effective upon governor's approval). Temporary flavored 648 electronic cigarette product registry. 649 (1) The department shall create a publicly available temporary flavored electronic cigarette 650 registry on or before May 1, 2025. 651 (2) The registry shall consist of flavored electronic cigarette products that: 652 (a)(i) the final assembly of the product occurs in the United States; or 653 (ii) the product has federal authorization to be sold in the United States; and 654 (b) contain or are marketed as containing only the following types of flavorings: 655 (i) a fruit flavoring not including chocolate; 656 (ii) an herb flavoring; or 657 (iii) a spice flavoring; and 658 (c) the packaging does not: 659 (i) contain any likeness bearing resemblance to a cartoon character or fictional 660 character; or 661 (ii) appear to imitate a food or other product trademark or trade dress that are or have 662 been primarily marketed to children. 663 (3) The department shall make rules to implement this section. 664 (4)(a) The department shall charge a fee for a flavored electronic cigarette product to be 665 listed on the registry. 666 (b) A retailer, distributor, or manufacturer may pay the fee to have the product registered. 667 (5) The department shall close and remove all products from the temporary registry when 668 the registry described in Section 59-14-908 is operational. 669 Section 6. Section 26B-7-509 is amended to read: 670 26B-7-509 (Effective upon governor's approval). Permit term and fees. 671 (1)(a) The term of a permit issued to a retail tobacco specialty business is one year. 672 (b) The term of a permit issued to a general tobacco retailer is two years. 673 (2)(a) A local health department may not issue a permit until the applicant has paid a 674 permit fee to the local health department of: - 20 - 03-04 19:04 4th Sub. (Green) H.B. 432 675 (i) [$30] $500 for a new permit; 676 (ii) [$20] $475 for a permit renewal; or 677 (iii) [$30] $500 for reinstatement of a permit that has been revoked, suspended, or 678 allowed to expire. 679 (b) A local health department that collects fees under Subsection (2)(a) shall use the fees 680 to administer and enforce the permit requirements described in Sections 26B-7-506 681 through [26B-7-521] 26B-7-523. 682 (c) In addition to the fee described in Subsection (2)(a), a local health department may 683 establish and collect a fee to perform a plan review for a retail tobacco specialty 684 business permit. 685 (d)(i) Notwithstanding Subsection (2)(a), a permit renewal for a retail tobacco 686 specialty business in fiscal year 2026 is $10,000. 687 (ii) Each local health department shall transfer a renewal fee described in Subsection 688 (2)(d)(i) to the State Tax Commission to be used for programing and system 689 updates for the tax described in Section 59-14-904. 690 (3) A permit holder may apply for a renewal of a permit no earlier than 30 days before the 691 day on which the permit expires. 692 (4) A tobacco retailer that fails to renew a permit before the permit expires may apply to 693 reinstate the permit by submitting to the local health department: 694 (a) the information required in Subsection 26B-7-508(3) and, if applicable, Subsection 695 26B-7-508(4); 696 (b) the fee for the reinstatement of a permit; and 697 (c) a signed affidavit affirming that the tobacco retailer has not violated the prohibitions 698 in Subsection 26B-7-507(1)(b) after the permit expired. 699 Section 7. Section 26B-7-511 is amended to read: 700 26B-7-511 (Effective upon governor's approval). Permit requirements for a 701 retail tobacco specialty business -- Tobacco handling permit. 702 (1) A retail tobacco specialty business shall: 703 (a) electronically verify proof of age for any individual that enters the premises of the 704 business in accordance with Section 26B-7-521; 705 (b) except as provided in Subsection 76-10-105.1(4), prohibit any individual from 706 entering the business if the individual is under 21 years old;[ and] 707 (c) prominently display at the retail tobacco specialty business a sign on the public 708 entrance of the business that communicates: - 21 - 4th Sub. (Green) H.B. 432 03-04 19:04 709 (i) the prohibition on the presence of an individual under 21 years old in a retail 710 tobacco specialty business in Subsection 76-10-105.1(4); and 711 (ii) the prohibition on the sale of tobacco products and electronic cigarette products to 712 an individual under 21 years old as described in Sections 76-10-104, 76-10-104.1, 713 76-10-105.1, and 76-10-114[.] ; and 714 (d) implement security standards that include an electronic video monitoring system 715 with: 716 (i) at least one 19-inch or greater call-up monitor; 717 (ii) a printer, capable of producing a clear still photo from any video camera image; 718 (iii) video cameras with a recording resolution of at least 1280 x 720 pixels, or the 719 equivalent for analog, that records continuously during business hours and for one 720 hour before and after business hours, seven days a week, and is motion activated 721 after business hours that provides coverage of: 722 (A) all points of entry; and 723 (B) each point-of-sale; 724 (iv) a method for storing each video recording from the video camera for at least 45 725 days after the day on which the recording was taken; 726 (v) a surveillance system with: 727 (A) a storage device for locally stored footage secured in the business in a lock 728 box, cabinet, closet, or secured in another manner, to protect from tampering or 729 criminal theft; or 730 (B) a storage system on a remote server which has restricted access to protect 731 from tampering; 732 (vi) a failure notification system that provides an audible or visual notification of an 733 error within the electronic monitoring system; and 734 (vii) a date and time stamp embedded on video camera recordings; and 735 (e) place a sign in a publicly viewable area that notifies patrons that the patrons are 736 under surveillance. 737 (2) A retail tobacco specialty business may not: 738 (a) employ an individual under 21 years old to sell a tobacco product, an electronic 739 cigarette product, or a nicotine product;[ or] 740 (b) permit an employee under 21 years old to sell a tobacco product, an electronic 741 cigarette product, or a nicotine product[.] ; or 742 (c) employ an individual that does not have a tobacco handling permit described in - 22 - 03-04 19:04 4th Sub. (Green) H.B. 432 743 Subsection (3). 744 (3)(a) An employee, owner, or operator of a retail tobacco specialty business shall obtain 745 and maintain a tobacco handling permit. 746 (b) The department shall: 747 (i) develop a course to instruct an individual described in Subsection (3)(a) regarding 748 the laws and regulations that a retail tobacco specialty business must follow; 749 (ii) issue a tobacco handling permit to any individual who completes the training; and 750 (iii) establish a fee in accordance with Section 63J-1-504 to implement this 751 Subsection (3). 752 (c) A tobacco handling permit expires one year from the day the tobacco handling 753 permit is issued. 754 Section 8. Section 26B-7-518 is amended to read: 755 26B-7-518 (Effective upon governor's approval). Penalties. 756 (1)(a) If an enforcing agency determines that a person has violated the terms of a permit 757 issued under this part, the enforcing agency may impose the penalties described in 758 this section. 759 (b) [If] Except as provided in Subsections (1)(c) and (1)(d), if multiple violations are 760 found in a single inspection by an enforcing agency or a single investigation by a law 761 enforcement agency[ under Section 77-39-101], the enforcing agency shall treat the 762 multiple violations as one single violation under Subsections (2), (3), [and ](4), and 763 (7). 764 (c) Fines described in Subsections (4)(a)(ii), (4)(b)(ii), (7)(a)(ii), and (7)(b)(ii) shall 765 compound for each product sold including if products are sold to multiple individuals. 766 (d) If an investigation determines there is a violation of Subsections (3) and (7), the 767 enforcing agency shall assess all penalties described in Subsections (3) and (7) 768 individually. 769 (2) Except as provided in Subsections (3), [and ](4), and (7), if a violation is found in an 770 investigation by a law enforcement agency [under Section 77-39-101 ]or an inspection 771 by an enforcing agency, the enforcing agency shall: 772 (a) on a first violation at a retail location, impose a penalty of $1,000; 773 (b) on a second violation at the same retail location that occurs within one year of a 774 previous violation, impose a penalty of $1,500; 775 (c) on a third violation at the same retail location that occurs within two years after two 776 previous violations, impose: - 23 - 4th Sub. (Green) H.B. 432 03-04 19:04 777 (i) a suspension of the permit for 30 consecutive business days within 60 days after 778 the day on which the third violation occurs; or 779 (ii) a penalty of $2,000; and 780 (d) on a fourth or subsequent violation within two years of three previous violations: 781 (i) impose a penalty of $2,000; 782 (ii) revoke a permit of the retailer; and 783 (iii) if applicable, recommend to a municipality or county that a retail tobacco 784 specialty business license issued under Section 10-8-41.6 or 17-50-333 be 785 suspended or revoked. 786 (3) If [a violation is found in an investigation of ]a general tobacco retailer [by a law 787 enforcement agency under Section 77-39-101 for the sale of a tobacco product, an 788 electronic cigarette product, or a nicotine product to an individual under 21 years old 789 and the violation is committed by the owner of the general tobacco retailer] sells a 790 tobacco product to an individual under 21 years old, the enforcing agency shall: 791 (a) on a first violation, impose a fine of $2,000 on the general tobacco retailer; and 792 (b) on the second violation for the same general tobacco retailer within one year of the 793 first violation: 794 (i) impose a fine of $5,000; and 795 (ii) revoke the permit for the general tobacco retailer. 796 (4) If [a violation is found in an investigation of ]a retail tobacco specialty business [by a 797 law enforcement agency under Section 77-39-101 for the sale of a tobacco product, an 798 electronic cigarette product, or a nicotine product to an individual under 21 years old] 799 sells a tobacco product to an individual under 21 years old, the enforcing agency shall: 800 (a) on the first violation: 801 (i) impose a fine of [$5,000] $10,000;[ and] 802 (ii) impose an additional fine of $1,000 for each product sold up to $100,000; and 803 [(ii)] (iii) immediately suspend the permit for 30 consecutive days; and 804 (b) on the second violation at the same retail location within two years of the first 805 violation: 806 (i) impose a fine of [$10,000] $20,000;[ and] 807 (ii) impose an additional fine of $1,000 for each product sold up to $100,000; and 808 [(ii)] (iii) revoke the permit for the retail tobacco specialty business. 809 (5)(a) Except when a transfer described in Subsection (6) occurs, a local health 810 department may not issue a permit to: - 24 - 03-04 19:04 4th Sub. (Green) H.B. 432 811 (i) a tobacco retailer for whom a permit is suspended or revoked under Subsection (2) 812 or (3); or 813 (ii) a tobacco retailer that has the same proprietor, director, corporate officer, partner, 814 or other holder of significant interest as another tobacco retailer for whom a 815 permit is suspended or revoked under Subsection (2), (3), or (4). 816 (b) A person whose permit: 817 (i) is suspended under this section may not apply for a new permit for any other 818 tobacco retailer for a period of 12 months after the day on which an enforcing 819 agency suspends the permit; and 820 (ii) is revoked under this section may not apply for a new permit for any tobacco 821 retailer for a period of 24 months after the day on which an enforcing agency 822 revokes the permit. 823 (6) Violations of this part, Section 10-8-41.6, or Section 17-50-333 that occur at a tobacco 824 retailer location shall stay on the record for that tobacco retailer location unless: 825 (a) the tobacco retailer is transferred to a new proprietor; and 826 (b) the new proprietor provides documentation to the local health department that the 827 new proprietor is acquiring the tobacco retailer in an arm's length transaction from 828 the previous proprietor. 829 (7) If a general tobacco retailer is found to be selling a flavored electronic cigarette product, 830 the enforcing agency shall: 831 (a) on the first violation: 832 (i) impose a fine of $10,000; 833 (ii) impose an additional fine of $1,000 for each product sold up to $100,000; and 834 (iii) immediately suspend the permit for 30 consecutive days; and 835 (b) on the second violation at the same retail location within two years of the first 836 violation: 837 (i) impose a fine of $20,000; 838 (ii) impose an additional fine of $1,000 for each product sold up to $100,000; and 839 (iii) revoke the permit for the general tobacco retailer. 840 (8)(a) Only a law enforcement agency may conduct an investigation or inspection of a 841 retail tobacco specialty business for violations of this part. 842 (b) A local health department may levy a fine described in this section against a retail 843 tobacco specialty business if a law enforcement agency investigation or inspection 844 finds a violation of this part. - 25 - 4th Sub. (Green) H.B. 432 03-04 19:04 845 Section 9. Section 26B-7-521 is amended to read: 846 26B-7-521 (Effective upon governor's approval). Verification of proof of age -- 847 Verification of identification -- Notification of law enforcement. 848 (1) As used in this section: 849 (a) "Employee" means an employee of a retail tobacco specialty business. 850 (b) "Electronic verification program" means a technology used by a retail tobacco 851 specialty business to confirm proof of age for an individual. 852 (2) A retail tobacco specialty business shall require that an employee verify proof of age of 853 an individual that enters a retail tobacco specialty business as provided in this section. 854 (3) To comply with Subsection (2), an employee shall: 855 (a) request the individual present proof of age; and 856 (b) verify the validity of the proof of age electronically in accordance with Subsection (4). 857 (4)(a) A retail tobacco specialty business shall use an electronic verification program to 858 assist the business in complying with the requirements of this section. 859 (b) Beginning July 1, 2025, a retail tobacco specialty business shall use an identification 860 verification system. 861 (c) The identification verification system described in Subsection (4)(b) shall analyze 862 and conduct a forensic check of the front and back of a proof of identification for 863 authentic security features to detect a fraudulent proof of identification, which shall 864 include the ability to: 865 (i) read and identify ultraviolet and infrared images, microprint, laser perforation, 866 holograms, and other proof of identification specific security features; 867 (ii) scan and analyze a proof of identification issued from any state or territory within 868 the United States; 869 (iii) scan and read magstripe, 2D barcodes, and machine readable zones on United 870 States passport cards; 871 (iv) display easy to read results of the identification analysis and alert staff when a 872 proof of identification appears to be fake or false; 873 (v) detect and alert to an expired or invalid proof of identification; 874 (vi) identify and alert to pass-back or proof of identification sharing; 875 (vii) capture a real time image of the individual presenting the proof of identification; 876 and 877 (viii) communicate with the system created by the Department of Public Safety 878 regarding whether a purchaser is a nicotine restricted individual. - 26 - 03-04 19:04 4th Sub. (Green) H.B. 432 879 (d) A retail tobacco specialty business may not sell a tobacco product, nicotine product, 880 or electronic cigarette product to a nicotine restricted individual. 881 (e) A retail tobacco specialty business shall notify the Department of Public Safety when 882 an individual purchases more than 10 electronic cigarette products in a single 883 purchase. 884 (5)(a) A retail tobacco specialty business may not disclose information obtained under 885 this section except as provided under this part. 886 (b) Information obtained under this section: 887 (i) shall be kept for at least 180 days; and 888 (ii) is subject to inspection upon request by a peace officer or the representative of an 889 enforcing agency. 890 (6)(a) If an employee does not verify proof of age under this section, the employee may 891 not permit an individual to: 892 (i) except as provided in Subsection (6)(b), enter a retail tobacco specialty business; or 893 (ii) purchase a tobacco product or an electronic cigarette product. 894 (b) In accordance with Subsection 76-10-105.1(4), an individual who is under 21 years 895 old may be permitted to enter a retail tobacco specialty business if the individual is: 896 [(i) accompanied by a parent or legal guardian who provides proof of age; or] 897 [(ii)(A)] (i) present at the retail tobacco specialty business solely for the purpose of 898 providing a commercial service to the retail tobacco specialty business, including 899 making a commercial delivery; 900 [(B)] (ii) monitored by the proprietor of the retail tobacco specialty business or an 901 employee of the retail tobacco specialty business; and 902 [(C)] (iii) not permitted to make any purchase or conduct any commercial transaction 903 other than the service described in Subsection (6)(b)(ii)(A). 904 (7) To determine whether the individual described in Subsection (2) is 21 years old or 905 older, the following may request an individual described in Subsection (2) to present 906 proof of age: 907 (a) an employee; 908 (b) a peace officer; or 909 (c) a representative of an enforcing agency. 910 Section 10. Section 26B-7-523 is enacted to read: 911 26B-7-523 (Effective upon governor's approval). RFID tracking. 912 (1) - 27 - 4th Sub. (Green) H.B. 432 03-04 19:04 913 As used in this section, "RFID" means radio-frequency identification. 914 (2) Beginning May 15, 2026, a retail tobacco specialty business shall have in place an 915 inventory control system that tracks flavored electronic cigarette products. 916 (3) The inventory control system shall have an RFID tag directly attached to the flavored 917 electronic cigarette product in which: 918 (a) each flavored electronic cigarette product is issued a unique identification number 919 via an RFID tag; and 920 (b) the tag is placed in a position that: 921 (i) is affixed directly on the product; 922 (ii) not affixed to any packaging; and 923 (iii) can be clearly read and include the following information: 924 (A) a unique identification number; 925 (B) the name of the retail tobacco specialty business that sells the product; and 926 (C) the date of sale of the flavored electronic cigarette product. 927 (4) A retail tobacco specialty business shall maintain the information required by this 928 section for at least 180 days after the day on which the flavored electronic cigarette 929 product leaves the retail tobacco specialty business. 930 (5) Notwithstanding any other provision of law and beginning May 15, 2026, a flavored 931 electronic cigarette product may not be sold in the state if the product does not meet the 932 RFID requirements of this section. 933 Section 11. Section 53-1-106 is amended to read: 934 53-1-106 [(Effective 12/31/24) ] (Effective upon governor's approval). Department 935 duties -- Powers. 936 (1) In addition to the responsibilities contained in this title, the department shall: 937 (a) make rules and perform the functions specified in Title 41, Chapter 6a, Traffic Code, 938 including: 939 (i) setting performance standards for towing companies to be used by the department, 940 as required by Section 41-6a-1406; and 941 (ii) advising the Department of Transportation regarding the safe design and 942 operation of school buses, as required by Section 41-6a-1304; 943 (b) make rules to establish and clarify standards pertaining to the curriculum and 944 teaching methods of a motor vehicle accident prevention course under Section 945 31A-19a-211; 946 (c) aid in enforcement efforts to combat drug trafficking; - 28 - 03-04 19:04 4th Sub. (Green) H.B. 432 947 (d) meet with the Division of Technology Services to formulate contracts, establish 948 priorities, and develop funding mechanisms for dispatch and telecommunications 949 operations; 950 (e) provide assistance to the Commission on Criminal and Juvenile Justice and the Utah 951 Office for Victims of Crime in conducting research or monitoring victims' programs, 952 as required by Section 63M-7-507; 953 (f) develop sexual assault exam protocol standards in conjunction with the Utah Hospital 954 Association; 955 (g) engage in emergency planning activities, including preparation of policy and 956 procedure and rulemaking necessary for implementation of the federal Emergency 957 Planning and Community Right to Know Act of 1986, as required by Section 958 53-2a-702; 959 (h) implement the provisions of Section 53-2a-402, the Emergency Management 960 Assistance Compact; 961 (i) ensure that any training or certification required of a public official or public 962 employee, as those terms are defined in Section 63G-22-102, complies with Title 963 63G, Chapter 22, State Training and Certification Requirements, if the training or 964 certification is required: 965 (i) under this title; 966 (ii) by the department; or 967 (iii) by an agency or division within the department; 968 (j) employ a law enforcement officer as a public safety liaison to be housed at the State 969 Board of Education who shall work with the State Board of Education to: 970 (i) support training with relevant state agencies for school resource officers as 971 described in Section 53G-8-702; 972 (ii) coordinate the creation of model policies and memorandums of understanding for 973 a local education agency and a local law enforcement agency; and 974 (iii) ensure cooperation between relevant state agencies, a local education agency, 975 and a local law enforcement agency to foster compliance with disciplinary related 976 statutory provisions, including Sections 53E-3-516 and 53G-8-211; 977 (k) provide for the security and protection of public officials, public officials' staff, and 978 the capitol hill complex in accordance with the provisions of this part; 979 (l) fulfill the duties described in Sections 77-36-2.1 and 78B-7-120 related to lethality 980 assessments;[ and] - 29 - 4th Sub. (Green) H.B. 432 03-04 19:04 981 (m) fulfill the duties described in Section 63L-13-201 related to restricted foreign entities[.] 982 ; and 983 (n) create a system that notifies a retail tobacco specialty business that an individual is a 984 nicotine restricted individual when the individual attempts to purchase a tobacco 985 product, nicotine product, or electronic cigarette product. 986 (2)(a) The department shall establish a schedule of fees as required or allowed in this 987 title for services provided by the department. 988 (b) All fees not established in statute shall be established in accordance with Section 989 63J-1-504. 990 (3) The department may establish or contract for the establishment of an Organ 991 Procurement Donor Registry in accordance with Section 26B-8-319. 992 Section 12. Section 59-14-102 is amended to read: 993 59-14-102 (Effective upon governor's approval). Definitions. 994 As used in this chapter: 995 (1) "Alternative nicotine product" means the same as that term is defined in Section 996 76-10-101. 997 (2) "Cigarette" means a roll made wholly or in part of tobacco: 998 (a) regardless of: 999 (i) the size of the roll; 1000 (ii) the shape of the roll; 1001 (iii) whether the tobacco is flavored, adulterated, or mixed with any other ingredient; 1002 or 1003 (iv) whether the tobacco is heated or burned; and 1004 (b) if the roll has a wrapper or cover that is made of paper or any other substance or 1005 material except tobacco. 1006 (3) "Cigarette rolling machine" means a device or machine that has the capability to 1007 produce at least 150 cigarettes in less than 30 minutes. 1008 (4) "Cigarette rolling machine operator" means a person who: 1009 (a)(i) controls, leases, owns, possesses, or otherwise has available for use a cigarette 1010 rolling machine; and 1011 (ii) makes the cigarette rolling machine available for use by another person to 1012 produce a cigarette; or 1013 (b) offers for sale, at retail, a cigarette produced from the cigarette rolling machine. 1014 (5) "Consumer" means a person that is not required: - 30 - 03-04 19:04 4th Sub. (Green) H.B. 432 1015 (a) under Section 59-14-201 to obtain a license under Section 59-14-202; 1016 (b) under Section 59-14-301 to obtain a license under Section 59-14-202;[ or] 1017 (c) to obtain a license under Section 59-14-803[.] ; or 1018 (d) to obtain a license under Section 59-14-902. 1019 (6) "Counterfeit cigarette" means: 1020 (a) a cigarette that has a false manufacturing label; or 1021 (b) a package of cigarettes bearing a counterfeit tax stamp. 1022 (7)(a) "Electronic cigarette" means the same as that term is defined in Section 76-10-101. 1023 (b) "Electronic cigarette" does not include a cigarette or a tobacco product. 1024 (8) "Electronic cigarette product" means the same as that term is defined in Section 1025 76-10-101. 1026 (9) "Electronic cigarette substance" means the same as that term is defined in Section 1027 76-10-101. 1028 (10) "Flavored electronic cigarette product" means the same as that term is defined in 1029 Section 76-10-101. 1030 [(10)] (11) "Importer" means a person that imports into the United States, either directly or 1031 indirectly, a finished cigarette for sale or distribution. 1032 [(11)] (12) "Indian tribal entity" means a federally recognized Indian tribe, tribal entity, or 1033 any other person doing business as a distributor or retailer of cigarettes on tribal lands 1034 located in the state. 1035 [(12)] (13) "Little cigar" means a roll for smoking that: 1036 (a) is made wholly or in part of tobacco; 1037 (b) uses an integrated cellulose acetate filter or other similar filter; and 1038 (c) is wrapped in a substance: 1039 (i) containing tobacco; and 1040 (ii) that is not exclusively natural leaf tobacco. 1041 [(13)] (14)(a) Except as provided in Subsection [(13)(b)] (14)(b), "manufacturer" means a 1042 person that: 1043 (i) manufactures, fabricates, assembles, processes, or labels a finished cigarette; or 1044 (ii) makes, modifies, mixes, manufactures, fabricates, assembles, processes, labels, 1045 repackages, relabels, or imports an electronic cigarette product or a nicotine 1046 product. 1047 (b) "Manufacturer" does not include a cigarette rolling machine operator. 1048 [(14)] (15) "Moist snuff" means tobacco that: - 31 - 4th Sub. (Green) H.B. 432 03-04 19:04 1049 (a) is finely cut, ground, or powdered; 1050 (b) has at least 45% moisture content, as determined by the commission by rule made in 1051 accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act; 1052 (c) is not intended to be: 1053 (i) smoked; or 1054 (ii) placed in the nasal cavity; and 1055 (d) except for single-use pouches of loose tobacco, is not packaged, produced, sold, or 1056 distributed in single-use units, including: 1057 (i) tablets; 1058 (ii) lozenges; 1059 (iii) strips; 1060 (iv) sticks; or 1061 (v) packages containing multiple single-use units. 1062 [(15)] (16) "Nicotine" means the same as that term is defined in Section 76-10-101. 1063 [(16)] (17) "Nicotine product" means the same as that term is defined in Section 76-10-101. 1064 [(17)] (18) "Nontherapeutic nicotine device" means the same as that term is defined in 1065 Section 76-10-101. 1066 [(18)] (19) "Nontherapeutic nicotine device substance" means the same as that term is 1067 defined in Section 76-10-101. 1068 [(19)] (20) "Nontherapeutic nicotine product" means the same as that term is defined in 1069 Section 76-10-101. 1070 [(20)] (21) "Prefilled electronic cigarette" means the same as that term is defined in Section 1071 76-10-101. 1072 [(21)] (22) "Prefilled nontherapeutic nicotine device" means the same as that term is defined 1073 in Section 76-10-101. 1074 [(22)] (23) "Retailer" means a person that: 1075 (a) sells or distributes a cigarette, an electronic cigarette product, or a nicotine product to 1076 a consumer in the state; or 1077 (b) intends to sell or distribute a cigarette, an electronic cigarette product, or a nicotine 1078 product to a consumer in the state. 1079 [(23)] (24) "Stamp" means the indicia required to be placed on a cigarette package that 1080 evidences payment of the tax on cigarettes required by Section 59-14-205. 1081 [(24)] (25)(a) "Tobacco product" means a product made of, or containing, tobacco. 1082 (b) "Tobacco product" includes: - 32 - 03-04 19:04 4th Sub. (Green) H.B. 432 1083 (i) a cigarette produced from a cigarette rolling machine; 1084 (ii) a little cigar; or 1085 (iii) moist snuff. 1086 (c) "Tobacco product" does not include a cigarette. 1087 [(25)] (26) "Tribal lands" means land held by the United States in trust for a federally 1088 recognized Indian tribe. 1089 Section 13. Section 59-14-810 is amended to read: 1090 59-14-810 (Effective upon governor's approval). Electronic cigarette product 1091 registry. 1092 (1) Beginning on August 1, 2024, every manufacturer of an electronic cigarette product that 1093 is sold in this state, whether directly or through a distributor, wholesaler, retailer, or 1094 similar intermediary or intermediaries, shall certify under penalty of perjury on a form 1095 and in the manner prescribed by the commission, that: 1096 (a) the manufacturer agrees to comply with this section; and 1097 (b) the electronic cigarette product is a premarket authorized or pending electronic 1098 cigarette product as defined in Section 76-10-101 and will not be illegal to be sold in 1099 the state as of January 1, 2025. 1100 (2) When submitting the certification a manufacturer shall submit a form that separately 1101 lists each electronic cigarette product that is sold in this state. 1102 (3)(a) Each certification form shall include: 1103 (i) the name of the electronic cigarette product, nicotine content level by percentage, 1104 and any flavors contained in the product; 1105 (ii)(A) a copy of the order granting a premarket tobacco product application of the 1106 electronic cigarette product by the United States Food and Drug 1107 Administration under 21 U.S.C. Sec. 387j(c)(1)(A)(i); or 1108 (B) evidence that the premarket tobacco product application for the electronic 1109 cigarette product or nicotine product was submitted to the United States Food 1110 and Drug Administration before September 9, 2020, and a final authorization 1111 or order has not yet taken effect; 1112 (iii) a nonrefundable $1,000 fee for an electronic cigarette product that is being added 1113 to the registry in the first instance; and 1114 (iv) information described in Subsection (10) if applicable. 1115 (b) The commission shall make the materials submitted under Subsection (3)(a) 1116 available to the Department of Health and Human Services for review and approval. - 33 - 4th Sub. (Green) H.B. 432 03-04 19:04 1117 (c) A manufacturer required to submit a certification form under this section shall notify 1118 the commission and the Department of Health and Human Services in a manner 1119 prescribed by the commission within 30 days of any material change making the 1120 certification form no longer accurate, including: 1121 (i) the issuance or denial of a marketing authorization or other order by the United 1122 States Food and Drug Administration under 21 U.S.C. Sec. 387j; or 1123 (ii) any other order or action by the United States Food and Drug Administration or 1124 any court that affects the ability of the electronic cigarette product to be 1125 introduced or delivered into interstate commerce for commercial distribution in 1126 the United States. 1127 (d) On or before January 31 of each year and in a manner prescribed by the commission, 1128 a manufacturer shall: 1129 (i) recertify that the information contained in the certification is correct and accurate; 1130 (ii) correct or amend information if necessary; and 1131 (iii) pay a $250 nonrefundable fee for each electronic cigarette product on the registry 1132 that is manufactured by the manufacturer. 1133 (e) A manufacturer may amend a certification, including to add additional electronic 1134 cigarette products to the registry, if all requirements of this section are met. 1135 (f) The commission shall: 1136 (i) provide an electronic notification to a manufacturer that has not submitted a 1137 recertification under Subsection (3)(d); and 1138 (ii) remove a manufacturer or an electronic cigarette product that is not recertified 1139 from the registry by March 15. 1140 (4)(a) The Department of Health and Human Services shall review materials described 1141 in Subsection (3)(a) and notify the commission regarding whether an electronic 1142 cigarette product should be included in the registry. 1143 (b) On or before October 1, 2024, the commission shall make publicly available on the 1144 commission's website a registry that lists each electronic cigarette product 1145 manufacturer and each electronic cigarette product for which certification forms have 1146 been approved by the Department of Health and Human Services. 1147 (c) An electronic cigarette product may not be listed on the registry unless the 1148 Department of Health and Human Services determines the requirements of 1149 Subsection (3)(a) are met. 1150 (5)(a) If the Department of Health and Human Services obtains information that an - 34 - 03-04 19:04 4th Sub. (Green) H.B. 432 1151 electronic cigarette product should not be listed in the registry, the Department of 1152 Health and Human Services shall provide the manufacturer notice and an opportunity 1153 to cure deficiencies before notifying the commission to remove the manufacturer or 1154 products from the registry. 1155 (b) Except as provided in Subsection (5)(c), the Department of Health and Human 1156 Services shall comply with Title 63G, Chapter 4, Administrative Procedures Act, 1157 before notifying the commission to remove [an] a flavored electronic cigarette 1158 product or manufacturer from the registry. 1159 (c) Subsection (5)(b) does not apply to a manufacturer failing: 1160 (i) to [decertify] recertify an electronic cigarette product; 1161 (ii) to provide fees and documentation described in Subsection (3)(a) or (3)(d); or 1162 (iii) to comply with Subsection (10). 1163 (6)(a) If a product is removed from the registry, each retailer, distributor, and wholesaler 1164 shall have 30 days from the day on which the product is removed from the registry to 1165 remove the product from any inventory and return the product to the manufacturer for 1166 disposal. 1167 (b) After the period described in Subsection (6)(a), any electronic cigarette product of a 1168 manufacturer identified in the notice of removal are contraband and are subject to 1169 penalties under Subsection (8)[ and seizure, forfeiture, and destruction under Section 1170 26A-1-131]. 1171 (7)(a) Beginning on January 1, 2025, a person may not sell or offer for retail sale an 1172 electronic cigarette product in this state that is not included in [the] a registry created 1173 under this section, Section 26B-7-505.1, or Section 59-14-908. 1174 (b) A manufacturer may not sell, either directly or through a distributor, wholesaler, 1175 retailer, or similar intermediary or intermediaries, an electronic cigarette product in 1176 this state that is not included in the registry. 1177 (8)(a) A wholesaler, distributor, or retailer who sells or offers for retail sale an electronic 1178 cigarette product in this state that is not included in the registry shall be subject to a 1179 civil penalty of: 1180 (i) $1,000 for each product offered for sale in violation of this section; and 1181 (ii) $100 per day until the offending product is removed from the market or until the 1182 offending product is properly listed on the registry. 1183 (b) The commission shall suspend the person's license issued under Section 59-14-803 1184 for a violation of Subsection (8)(a) as follows: - 35 - 4th Sub. (Green) H.B. 432 03-04 19:04 1185 (i) for a second violation within a 12-month period, at least 14 days; 1186 (ii) for a third violation within a 12-month period, at least 60 days; or 1187 (iii) for a fourth violation within a 12-month period, at least one year. 1188 (c) A manufacturer whose electronic cigarette products are not listed in the registry and 1189 are sold in this state, whether directly or through a distributor, wholesaler, retailer, or 1190 similar intermediary or intermediaries, is subject to a civil penalty of: 1191 (i) $1,000 for each product offered for retail sale in violation of this section; and 1192 (ii) $100 per day until the offending product is removed from the market or until the 1193 offending product is properly listed on the registry. 1194 (d) A manufacturer that falsely represents any information required by a certification 1195 form described in this section shall be guilty of a class C misdemeanor for each false 1196 representation. 1197 (e) A repeated violation of this section shall constitute a deceptive act or practice as 1198 provided in Sections 13-11-4 and 13-11a-3 and shall be subject to any remedies or 1199 penalties available for a violation of those sections. 1200 (9)(a) To assist in ensuring compliance and enforcement of this section[ and Section 1201 26A-1-131], the commission shall disclose to the following entities, upon request, 1202 any information obtained under this section: 1203 (i) the Department of Health and Human Services; 1204 (ii) a local health department;[ or] 1205 (iii) a law enforcement agency; or 1206 [(iii)] (iv) the attorney general. 1207 (b) The commission and attorney general shall share with each other information 1208 received under this section, or corresponding laws of other states. 1209 (10)(a)[(i)] The commission may not list a nonresident manufacturer of an electronic 1210 cigarette product in the registry unless: 1211 [(A)] (i) the nonresident manufacturer has registered to do business in the state as a 1212 foreign corporation or business entity; or 1213 [(B)] (ii) the nonresident manufacturer appoints and maintains without interruption 1214 the services of an agent in this state to receive any service of process on behalf of 1215 the manufacturer. 1216 (b) The nonresident manufacturer shall provide the name, address, and telephone 1217 number of the agent to the commission. 1218 (c)(i) A nonresident manufacturer shall provide notice to the commission 30 days - 36 - 03-04 19:04 4th Sub. (Green) H.B. 432 1219 before the termination of the authority of an agent and shall further provide proof 1220 to the satisfaction of the commission of the appointment of a new agent no less 1221 than five calendar days prior to the termination of an existing agent appointment. 1222 (ii) In the event an agent terminates an agency appointment, the manufacturer shall 1223 notify the commission of the termination within five calendar days and shall 1224 include proof to the satisfaction of the commission of the appointment of a new 1225 agent. 1226 (11) Before May 31 of each year, the commission and the Department of Health and 1227 Human Services shall provide a report to the Revenue and Taxation Interim Committee 1228 and the Health and Human Services Interim Committee regarding: 1229 (a) the status of the registry; 1230 (b) manufacturers and products included in the registry; and 1231 (c) revenue and expenditures related to administration of this section[; and] . 1232 [(d) enforcement activities undertaken under this section and Section 26A-1-131.] 1233 (12) All fees and penalties collected under this section shall be used for administration and 1234 enforcement of this section[ and Section 26A-1-131] and deposited into the account 1235 created in Section 59-14-807. 1236 (13) The commission, in consultation with the Department of Health and Human Services, 1237 may make rules in accordance with Title 63G, Chapter 3, Utah Administrative 1238 Rulemaking Act, to implement this section. 1239 Section 14. Section 59-14-901 is enacted to read: 1240 Part 9. Flavored Electronic Cigarette Tax 1241 59-14-901 (Effective 01/01/26). Definitions. 1242 As used in this part: 1243 (1) "Licensee" means a retail tobacco specialty business that holds a license to sell a 1244 flavored electronic cigarette product under this part. 1245 (2)(a) "Retail price" means the amount charged by a retailer for a flavored electronic 1246 cigarette product. 1247 (b) "Retail price" includes any part of the amount charged by a retailer that is paid or 1248 recouped for a tax imposed on a distributor under Section 59-14-804. 1249 (3) "Retail tobacco specialty business" means the same as that term is defined in Section 1250 26B-7-501. 1251 Section 15. Section 59-14-902 is enacted to read: 1252 59-14-902 (Effective 01/01/26). License to sell flavored electronic cigarette - 37 - 4th Sub. (Green) H.B. 432 03-04 19:04 1253 product. 1254 (1) A retailer may not sell or offer to sell a flavored electronic cigarette product in this state 1255 without first: 1256 (a) obtaining a license from the commission under this section to sell a flavored 1257 electronic cigarette product; and 1258 (b) complying with any bonding requirement described in Subsection (5). 1259 (2) A license described in this section is required in addition to any other license required 1260 by law. 1261 (3)(a) The commission shall issue a license to sell a flavored electronic cigarette product 1262 to a retailer that submits an application, on a form created by the commission, that 1263 includes: 1264 (i) the retailer's name; 1265 (ii) the address of the facility where the retailer will sell a flavored cigarette product; 1266 and 1267 (iii) any other information the commission requires to implement this part. 1268 (b) The commission may not issue a license under this part to a person that does not 1269 have a retail tobacco specialty business permit described in Section 26B-7-509. 1270 (4) A license described in Subsection (3) is: 1271 (a) valid only at one fixed business address; 1272 (b) valid for three years; 1273 (c) valid only for a physical location; and 1274 (d) renewable if a licensee meets the criteria for licensing described in Subsection (3). 1275 (5)(a) The commission shall require a retailer that is responsible under this part for the 1276 collection of tax on a flavored electronic cigarette product to post a bond. 1277 (b) The retailer may post the bond required by Subsection (5)(a) in combination with 1278 any bond required by Section 59-14-201, 59-14-301, or 59-14-803. 1279 (c) Subject to Subsection (5)(d), the commission shall determine the form and amount of 1280 the bond. 1281 (d) The minimum amount of the bond shall be $500. 1282 (e) If a bond is posted in combination with another bond under (5)(b), the total amount 1283 of the bond shall be equal to the sum total of $500 plus the amount required by the 1284 other provision of law. 1285 (6) The commission may make rules in accordance with Title 63G, Chapter 3, Utah 1286 Administrative Rulemaking Act, to establish the additional information described in - 38 - 03-04 19:04 4th Sub. (Green) H.B. 432 1287 Subsection (3)(c) that a person shall provide in the application described in Subsection 1288 (3). 1289 (7) It is a class B misdemeanor for a person to violate Subsection (1). 1290 (8) The commission may not charge a fee for a license under this section. 1291 Section 16. Section 59-14-903 is enacted to read: 1292 59-14-903 (Effective 01/01/26). Publication of licensed distributors -- Retailer 1293 transaction only with licensed distributor -- Penalty. 1294 (1)(a) The commission shall maintain a list that includes the identity of each licensee 1295 under this part to sell a flavored electronic cigarette product. 1296 (b) The list shall be: 1297 (i) published on the commission website; and 1298 (ii) updated by the commission at least once per quarter. 1299 (2) A distributor may sell a flavored electronic cigarette product only to a licensee 1300 identified on the list described in Subsection (1). 1301 (3)(a) The commission may impose a penalty against a distributor that sells a flavored 1302 electronic cigarette product to a person other than a licensee. 1303 (b) On the first violation, the commission shall: 1304 (i) impose a fine of $10,000; and 1305 (ii) impose an additional fine of $1,000 for each product sold up to $100,000. 1306 (c) On the second or subsequent violation within two years of the first violation, the 1307 commission shall: 1308 (i) impose a fine of $20,000; and 1309 (ii) impose an additional fine of $1,000 for each product sold up to $100,000. 1310 Section 17. Section 59-14-904 is enacted to read: 1311 59-14-904 (Effective 01/01/26). Taxation of flavored electronic cigarette products. 1312 (1)(a) Beginning on January 1, 2026, a tax is imposed on the retail sale of a flavored 1313 electronic cigarette product. 1314 (b) A tax described in this section is in addition to any other tax required by law on an 1315 electronic cigarette product, including the tax described in Section 59-14-804. 1316 (2) The amount of tax imposed under Subsection (1) is .10 multiplied by the retail price of 1317 each product sold. 1318 (3) If a product is sold in the same package as a product that is taxed under Subsection (1), 1319 the tax described in Subsection (2) shall apply to the retail price of the entire packaged 1320 product. - 39 - 4th Sub. (Green) H.B. 432 03-04 19:04 1321 (4)(a) The retailer shall remit the taxes collected in accordance with this section to the 1322 commission. 1323 (b) The commission shall deposit revenues generated by the tax imposed by this section 1324 into the Flavored Electronic Cigarette Product Proceeds Restricted Account created 1325 in Section 59-14-906. 1326 Section 18. Section 59-14-905 is enacted to read: 1327 59-14-905 (Effective 01/01/26). Remittance of tax -- Returns -- Invoice required 1328 -- Filing requirement-- Exception -- Penalty -- Overpayment. 1329 (1)(a) The retailer that collects the tax imposed on a flavored electronic cigarette product 1330 shall remit to the commission, in an electronic format approved by the commission: 1331 (i) the tax collected in the previous calendar quarter; and 1332 (ii) the quarterly tax return. 1333 (b) The tax collected and the return are due on or before the last day of April, July, 1334 October, and January. 1335 (2)(a) A consumer that purchases an untaxed flavored electronic cigarette product for 1336 use or other consumption shall: 1337 (i) file with the commission, on forms prescribed by the commission, a statement 1338 showing the quantity and description of the item subject to tax under this part; and 1339 (ii) pay the tax imposed by this part on that item. 1340 (b) The consumer shall file the statement described in Subsection (2)(a) and pay the tax 1341 due on or before the last day of the month immediately following the month during 1342 which the consumer purchased an untaxed flavored electronic cigarette product. 1343 (c) A consumer shall maintain records necessary to determine the amount of tax the 1344 consumer is liable to pay under this part for a period of three years following the date 1345 on which the statement required by this section was filed. 1346 (3) A tourist who imports an untaxed flavored electronic cigarette product into the state 1347 does not need to file the statement described in Subsection (2) or pay the tax if the item 1348 is for the tourist's own use or consumption while in this state. 1349 (4) In addition to the tax required by this part, a person shall pay a penalty as provided in 1350 Section 59-1-401, plus interest at the rate and in the manner prescribed in Section 1351 59-1-402, if a person subject to this section fails to: 1352 (a) pay the tax prescribed by this part; 1353 (b) pay the tax on time; or 1354 (c) file a return required by this part. - 40 - 03-04 19:04 4th Sub. (Green) H.B. 432 1355 (5) An overpayment of a tax imposed by this part shall accrue interest at the rate and in the 1356 manner prescribed in Section 59-1-402. 1357 Section 19. Section 59-14-906 is enacted to read: 1358 59-14-906 (Effective 01/01/26). Flavored Electronic Cigarette Product Proceeds 1359 Restricted Account. 1360 (1) There is created within the General Fund a restricted account known as the "Flavored 1361 Electronic Cigarette Product Proceeds Restricted Account." 1362 (2) The account consists of revenue collected by the tax imposed in Section 59-14-904 and 1363 fees and penalties collected under Section 59-14-908. 1364 (3) Subject to Subsection (5), for each fiscal year and subject to appropriation by the 1365 Legislature, the Division of Finance shall distribute revenue generated by the tax created 1366 under this part as follows: 1367 (a) 25% of the amount to the Department of Public Safety for enforcement of the state's 1368 electronic cigarette product laws and performance of the duties related to electronic 1369 cigarette products including programing; 1370 (b) 70% of the amount transferred to the Department of Health and Human Services for 1371 use to perform duties related to electronic cigarette product regulation, prevention, 1372 and research; and 1373 (c) 5% of the amount in the account to the State Board of Education to pay for the 1374 school lunch program described in Section 53E-3-510. 1375 (4) For each fiscal year and subject to appropriation by the Legislature, the Division of 1376 Finance shall distribute revenue generated from the money deposited under Section 1377 59-14-908: 1378 (a) to the commission, in an amount equal to the amount necessary to create and 1379 maintain the registry described in Section 59-14-908; and 1380 (b) to the Department of Health and Human Services, in an amount necessary for 1381 completing duties described in Section 59-14-908 and duties described in Section 1382 26B-7-505. 1383 (5)(a) The fund shall earn interest. 1384 (b) Interest earned on fund money shall be deposited into the fund. 1385 (6) Subject to legislative appropriations, before any amount of money is distributed under 1386 Subsection (3), the Division of Finance shall distribute an amount to the commission to: 1387 (a) enforce compliance with the tax collection requirements of this part; and 1388 (b) for programming and maintaining the tax created under this part. - 41 - 4th Sub. (Green) H.B. 432 03-04 19:04 1389 Section 20. Section 59-14-907 is enacted to read: 1390 59-14-907 (Effective 01/01/26). Reports of illegal product. 1391 If the commission suspects that a flavored electronic cigarette product is being sold in 1392 violation of a law other than a law described in this part, the commission shall report the name 1393 of the seller, the type of product, and the county where the product was sold: 1394 (1) to the local health department for the county where the sale occurs; 1395 (2) to the Department of Health and Human Services; and 1396 (3) to the Department of Public Safety. 1397 Section 21. Section 59-14-908 is enacted to read: 1398 59-14-908 (Effective 01/01/26). Flavored electronic cigarette product registry. 1399 (1) Beginning on August 1, 2025, every manufacturer of a flavored electronic cigarette 1400 product that is sold in this state, whether directly or through a distributor, wholesaler, 1401 retailer, or similar intermediary or intermediaries, shall certify under penalty of perjury 1402 on a form and in the manner prescribed by the commission, that: 1403 (a) the manufacturer agrees to comply with this section; 1404 (b) the flavored electronic cigarette product meets the requirements for sale described in 1405 Section 26B-7-505 and rules created under that section, including packaging 1406 requirements; and 1407 (c) beginning May 15, 2026, the flavored electronic cigarette product is equipped with 1408 RFID tracking technology in accordance with Section 26B-7-523. 1409 (2) When submitting the certification a manufacturer shall submit a form that separately 1410 lists each flavored electronic cigarette product that is sold in this state. 1411 (3)(a) Each certification form shall include: 1412 (i) the name of the flavored electronic cigarette product, nicotine content level by 1413 percentage, and any flavors contained in the product; 1414 (ii) a nonrefundable $1,000 fee for each flavored electronic cigarette product that is 1415 being added to the registry in the first instance; and 1416 (iii) information described in Subsection (10) if applicable. 1417 (b) The commission shall make the materials submitted under Subsection (3)(a) 1418 available to the Department of Health and Human Services for review and approval. 1419 (c) A manufacturer required to submit a certification form under this section shall notify 1420 the commission and the Department of Health and Human Services in a manner 1421 prescribed by the commission within 30 days of any material change making the 1422 certification form no longer accurate. - 42 - 03-04 19:04 4th Sub. (Green) H.B. 432 1423 (d) On or before January 31 of each year and in a manner prescribed by the commission, 1424 a manufacturer shall: 1425 (i) recertify that the information contained in the certification is correct and accurate; 1426 (ii) correct or amend information if necessary; and 1427 (iii) pay a $250 nonrefundable fee for each flavored electronic cigarette product on 1428 the registry that is manufactured by the manufacturer. 1429 (e) A manufacturer may amend a certification, including to add additional flavored 1430 electronic cigarette products to the registry, if all requirements of this section are met. 1431 (f) The commission shall: 1432 (i) provide an electronic notification to a manufacturer that has not submitted a 1433 recertification under Subsection (3)(d); and 1434 (ii) remove a manufacturer or the flavored electronic cigarette product that is not 1435 recertified from the registry by March 15. 1436 (4)(a) The Department of Health and Human Services shall review materials described 1437 in Subsection (3)(a) and notify the commission regarding whether a flavored 1438 electronic cigarette product should be included in the registry. 1439 (b) On or before October 1, 2025, the commission shall make publicly available on the 1440 commission's website a registry that lists each flavored electronic cigarette product 1441 manufacturer and each flavored electronic cigarette product for which certification 1442 forms have been approved by the Department of Health and Human Services. 1443 (c) A flavored electronic cigarette product may not be listed on the registry unless the 1444 Department of Health and Human Services determines the product meets the 1445 requirements of Section 26B-7-505. 1446 (5)(a) If the Department of Health and Human Services obtains information that a 1447 flavored electronic cigarette product should not be listed in the registry, the 1448 Department of Health and Human Services shall provide the manufacturer notice and 1449 an opportunity to cure deficiencies before notifying the commission to remove the 1450 manufacturer or products from the registry. 1451 (b) Except as provided in Subsection (5)(c), the Department of Health and Human 1452 Services shall comply with Title 63G, Chapter 4, Administrative Procedures Act, 1453 before notifying the commission to remove a flavored electronic cigarette product or 1454 manufacturer from the registry. 1455 (c) Subsection (5)(b) does not apply to a manufacturer failing: 1456 (i) to recertify a flavored electronic cigarette product; - 43 - 4th Sub. (Green) H.B. 432 03-04 19:04 1457 (ii) to provide fees and documentation described in Subsection (3)(a) or (3)(d); or 1458 (iii) to comply with Subsection (10). 1459 (6)(a) If a product is removed from the registry, each retailer, distributor, and wholesaler 1460 shall have 30 days from the day on which the product is removed from the registry to 1461 remove the product from any inventory and return the product to the manufacturer for 1462 disposal. 1463 (b) After the period described in Subsection (6)(a), any flavored electronic cigarette 1464 product of a manufacturer identified in the notice of removal are contraband and are 1465 subject to penalties under Subsection (8). 1466 (7)(a) Beginning on January 1, 2026, a person may not sell or offer for retail sale a 1467 flavored electronic cigarette product in this state that is not included in the registry. 1468 (b) A manufacturer may not sell, either directly or through a distributor, wholesaler, 1469 retailer, or similar intermediary or intermediaries, a flavored electronic cigarette 1470 product in this state that is not included in the registry. 1471 (8)(a) A wholesaler, distributor, or retailer who sells or offers for retail sale a flavored 1472 electronic cigarette product in this state that is not included in the registry shall be 1473 subject to a civil penalty of: 1474 (i) $1,000 for each product offered for sale in violation of this section; and 1475 (ii) $100 per day until the offending product is removed from the market or until the 1476 offending product is properly listed on the registry. 1477 (b) The commission shall suspend the person's license issued under Section 59-14-803 1478 for a violation of Subsection (8)(a) as follows: 1479 (i) for a second violation within a 12-month period, at least 14 days; 1480 (ii) for a third violation within a 12-month period, at least 60 days; or 1481 (iii) for a fourth violation within a 12-month period, at least one year. 1482 (c) A manufacturer whose flavored electronic cigarette products are not listed in the 1483 registry and are sold in this state, whether directly or through a distributor, 1484 wholesaler, retailer, or similar intermediary or intermediaries, is subject to a civil 1485 penalty of: 1486 (i) $1,000 for each product offered for retail sale in violation of this section; and 1487 (ii) $100 per day until the offending product is removed from the market or until the 1488 offending product is properly listed on the registry. 1489 (d) A manufacturer that falsely represents any information required by a certification 1490 form described in this section shall be guilty of a class C misdemeanor for each false - 44 - 03-04 19:04 4th Sub. (Green) H.B. 432 1491 representation. 1492 (e) A repeated violation of this section shall constitute a deceptive act or practice as 1493 provided in Sections 13-11-4 and 13-11a-3 and shall be subject to any remedies or 1494 penalties available for a violation of those sections. 1495 (9)(a) To assist in ensuring compliance and enforcement of this section, the commission 1496 shall disclose to the following entities, upon request, any information obtained under 1497 this section: 1498 (i) the Department of Health and Human Services; 1499 (ii) a local health department; 1500 (iii) a law enforcement agency; or 1501 (iv) the attorney general. 1502 (b) The commission and attorney general shall share with each other information 1503 received under this section, or corresponding laws of other states. 1504 (10)(a) The commission may not list a nonresident manufacturer's flavored electronic 1505 cigarette products in the registry unless: 1506 (i) the nonresident manufacturer has registered to do business in the state as a foreign 1507 corporation or business entity; or 1508 (ii) the nonresident manufacturer appoints and maintains without interruption the 1509 services of an agent in this state to receive any service of process on behalf of the 1510 manufacturer. 1511 (b) The nonresident manufacturer shall provide the name, address, and telephone 1512 number of the agent to the commission. 1513 (c)(i) A nonresident manufacturer shall provide notice to the commission 30 days 1514 before the termination of the authority of an agent and shall further provide proof 1515 to the satisfaction of the commission of the appointment of a new agent no less 1516 than five calendar days prior to the termination of an existing agent appointment. 1517 (ii) In the event an agent terminates an agency appointment, the manufacturer shall 1518 notify the commission of the termination within five calendar days and shall 1519 include proof to the satisfaction of the commission of the appointment of a new 1520 agent. 1521 (11) Before May 31, 2027, and each May 31 thereafter, the commission and the Department 1522 of Health and Human Services shall provide a report to the Revenue and Taxation 1523 Interim Committee and the Health and Human Services Interim Committee regarding: 1524 (a) the status of the registry; - 45 - 4th Sub. (Green) H.B. 432 03-04 19:04 1525 (b) manufacturers and products included in the registry; and 1526 (c) revenue and expenditures related to administration of this section. 1527 (12) All fees and penalties collected under this section shall be used for administration and 1528 enforcement of this section and deposited into the account created in Section 59-14-906. 1529 (13) The commission, in consultation with the Department of Health and Human Services, 1530 may make rules in accordance with Title 63G, Chapter 3, Utah Administrative 1531 Rulemaking Act, to implement this section. 1532 (14) For a flavored electronic cigarette product, the registration required under this section 1533 is in addition to the registration described in Section 59-14-810. 1534 Section 22. Section 63I-2-226 is amended to read: 1535 63I-2-226 [(Effective 07/01/24) ] (Effective upon governor's approval). Repeal 1536 dates: Titles 26 through 26B. 1537 (1) Section 26B-1-241, Tardive dyskinesia, is repealed July 1, 2024. 1538 (2) Section 26B-1-302, National Professional Men's Basketball Team Support of Women 1539 and Children Issues Restricted Account, is repealed July 1, 2024. 1540 (3) Section 26B-1-309, Medicaid Restricted Account, is repealed July 1, 2024. 1541 (4) Section 26B-1-313, Cancer Research Restricted Account, is repealed July 1, 2024. 1542 (5) Section 26B-1-420, Cannabis Research Review Board, is repealed July 1, 2026. 1543 (6) Subsection 26B-1-421(9)(a), regarding a report to the Cannabis Research Review 1544 Board, is repealed July 1, 2026. 1545 (7) Section 26B-1-423, Rural Physician Loan Repayment Program Advisory Committee -- 1546 Membership -- Compensation -- Duties, is repealed July 1, 2026. 1547 (8) Section 26B-2-243, Data collection and reporting requirements concerning incidents of 1548 abuse, neglect, or exploitation, is repealed July 1, 2027. 1549 (9) Section 26B-3-142, Long-acting injectables, is repealed July 1, 2024. 1550 (10) Subsection 26B-3-215(5), regarding reporting on coverage for in vitro fertilization and 1551 genetic testing, is repealed July 1, 2030. 1552 (11) Subsection 26B-4-201(5), regarding the Cannabis Research Review Board, is repealed 1553 July 1, 2026. 1554 (12) Subsection 26B-4-212(1)(b), regarding the Cannabis Research Review Board, is 1555 repealed July 1, 2026. 1556 (13) Section 26B-4-702, Creation of Utah Health Care Workforce Financial Assistance 1557 Program, is repealed July 1, 2027. 1558 (14) Subsection 26B-4-703(3)(b), regarding per diem and expenses for the Rural Physician - 46 - 03-04 19:04 4th Sub. (Green) H.B. 432 1559 Loan Repayment Program Advisory Committee, is repealed July 1, 2026. 1560 (15) Subsection 26B-4-703(3)(c), regarding expenses for the Rural Physician Loan 1561 Repayment Program, is repealed July 1, 2026. 1562 (16) Subsection 26B-4-703(6)(b), regarding recommendations from the Rural Physician 1563 Loan Repayment Program Advisory Committee, is repealed July 1, 2026. 1564 (17) Section 26B-5-117, Early childhood mental health support grant program, is repealed 1565 January 2, 2025. 1566 (18) Section 26B-5-302.5, Study concerning civil commitment and the Utah State Hospital, 1567 is repealed July 1, 2025. 1568 (19) Section 26B-6-414, Respite care services, is repealed July 1, 2025. 1569 (20) Section 26B-7-120, Invisible condition alert program education and outreach, is 1570 repealed July 1, 2025. 1571 (21) Subsection 26B-7-509(2)(d), regarding the 2025 fiscal year renewal fee, is repealed 1572 July 1, 2026. 1573 Section 23. Section 63I-2-259 is amended to read: 1574 63I-2-259 (Effective 06/21/24). Repeal dates: Title 59. 1575 (1) Subsection 59-7-610(8), regarding claiming a tax credit in the same taxable year as the 1576 targeted business income tax credit, is repealed December 31, 2024. 1577 (2) Subsection 59-7-614.10(5), regarding claiming a tax credit in the same taxable year as 1578 the targeted business income tax credit, is repealed December 31, 2024. 1579 (3) Section 59-7-624, Targeted business income tax credit, is repealed December 31, 2024. 1580 (4) Subsection 59-10-210(2)(b)(vi), regarding Section 59-10-1112, is repealed December 1581 31, 2024. 1582 (5) Subsection 59-10-1007(8), regarding claiming a tax credit in the same taxable year as 1583 the targeted business income tax credit, is repealed December 31, 2024. 1584 (6) Subsection 59-10-1037(5), regarding claiming a tax credit in the same taxable year as 1585 the targeted business income tax credit, is repealed December 31, 2024. 1586 (7) Section 59-10-1112, Targeted business income tax credit, is repealed December 31, 1587 2024. 1588 (8) Section 59-10-908, Flavored electronic cigarette product registry, is repealed July 1, 1589 2028. 1590 Section 24. Section 76-10-101 is amended to read: 1591 76-10-101 (Effective upon governor's approval). Definitions. 1592 As used in this part: - 47 - 4th Sub. (Green) H.B. 432 03-04 19:04 1593 (1)(a) "Alternative nicotine product" means a product, other than a cigarette, a 1594 counterfeit cigarette, an electronic cigarette product, a nontherapeutic nicotine 1595 product, or a tobacco product, that: 1596 (i) contains nicotine; 1597 (ii) is intended for human consumption; 1598 (iii) is not purchased with a prescription from a licensed physician; and 1599 (iv) is not approved by the United States Food and Drug Administration as nicotine 1600 replacement therapy. 1601 (b) "Alternative nicotine product" includes: 1602 (i) pure nicotine; 1603 (ii) snortable nicotine; 1604 (iii) dissolvable salts, orbs, pellets, sticks, or strips; and 1605 (iv) nicotine-laced food and beverage. 1606 (c) "Alternative nicotine product" does not include a fruit, a vegetable, or a tea that 1607 contains naturally occurring nicotine. 1608 (2) "Cigar" means a product that contains nicotine, is intended to be burned under ordinary 1609 conditions of use, and consists of any roll of tobacco wrapped in leaf tobacco, or in any 1610 substance containing tobacco, other than any roll of tobacco that is a cigarette. 1611 (3) "Cigarette" means a product that contains nicotine, is intended to be heated or burned 1612 under ordinary conditions of use, and consists of: 1613 (a) any roll of tobacco wrapped in paper or in any substance not containing tobacco; or 1614 (b) any roll of tobacco wrapped in any substance containing tobacco which, because of 1615 its appearance, the type of tobacco used in the filler, or its packaging and labeling, is 1616 likely to be offered to, or purchased by, consumers as a cigarette described in 1617 Subsection (3)(a). 1618 (4)(a) "Electronic cigarette" means: 1619 (i) any electronic oral device: 1620 (A) that provides an aerosol or a vapor of nicotine or other substance; and 1621 (B) which simulates smoking through the use or inhalation of the device; 1622 (ii) a component of the device described in Subsection (4)(a)(i); or 1623 (iii) an accessory sold in the same package as the device described in Subsection 1624 (4)(a)(i). 1625 (b) "Electronic cigarette" includes an oral device that is: 1626 (i) composed of a heating element, battery, or electronic circuit; and - 48 - 03-04 19:04 4th Sub. (Green) H.B. 432 1627 (ii) marketed, manufactured, distributed, or sold as: 1628 (A) an e-cigarette; 1629 (B) an e-cigar; 1630 (C) an e-pipe; or 1631 (D) any other product name or descriptor, if the function of the product meets the 1632 definition of Subsection (4)(a). 1633 (c) "Electronic cigarette" does not mean a medical cannabis device, as that term is 1634 defined in Section 26B-4-201. 1635 (5) "Electronic cigarette product" means an electronic cigarette, an electronic cigarette 1636 substance, or a prefilled electronic cigarette. 1637 (6) "Electronic cigarette substance" means any substance, including liquid containing 1638 nicotine, used or intended for use in an electronic cigarette. 1639 (7)(a) "Flavored electronic cigarette product" means an electronic cigarette product that 1640 has a taste or smell that is distinguishable by an ordinary consumer either before or 1641 during use or consumption of the electronic cigarette product. 1642 (b) "Flavored electronic cigarette product" includes an electronic cigarette product that is 1643 labeled as, or has a taste or smell of any fruit, chocolate, vanilla, honey, candy, 1644 cocoa, dessert, alcoholic beverage, herb, spice, or mint. 1645 (c) "Flavored electronic cigarette product" does not include an electronic cigarette 1646 product that has a taste or smell of only tobacco or menthol. 1647 (8) "Nicotine" means a poisonous, nitrogen containing chemical that is made synthetically 1648 or derived from tobacco or other plants. 1649 (9) "Nicotine product" means an alternative nicotine product or a nontherapeutic nicotine 1650 product. 1651 (10) "Nicotine restricted individual" means an individual to whom the sale, offer for sale, or 1652 furnishing of a tobacco product, nicotine product, or electronic cigarette product is 1653 prohibited by: 1654 (a) law; or 1655 (b) court order. 1656 [(10)] (11)(a) "Nontherapeutic nicotine device" means a device that: 1657 (i) has a pressurized canister that is used to administer nicotine to the user through 1658 inhalation or intranasally; 1659 (ii) is not purchased with a prescription from a licensed physician; and 1660 (iii) is not approved by the United States Food and Drug Administration as nicotine - 49 - 4th Sub. (Green) H.B. 432 03-04 19:04 1661 replacement therapy. 1662 (b) "Nontherapeutic nicotine device" includes a nontherapeutic nicotine inhaler or a 1663 nontherapeutic nicotine nasal spray. 1664 [(11)] (12) "Nontherapeutic nicotine device substance" means a substance that: 1665 (a) contains nicotine; 1666 (b) is sold in a cartridge for use in a nontherapeutic nicotine device; 1667 (c) is not purchased with a prescription from a licensed physician; and 1668 (d) is not approved by the United States Food and Drug Administration as nicotine 1669 replacement therapy. 1670 [(12)] (13) "Nontherapeutic nicotine product" means a nontherapeutic nicotine device, a 1671 nontherapeutic nicotine device substance, or a prefilled nontherapeutic nicotine device. 1672 [(13)] (14) "Place of business" includes: 1673 (a) a shop; 1674 (b) a store; 1675 (c) a factory; 1676 (d) a public garage; 1677 (e) an office; 1678 (f) a theater; 1679 (g) a recreation hall; 1680 (h) a dance hall; 1681 (i) a poolroom; 1682 (j) a cafe; 1683 (k) a cafeteria; 1684 (l) a cabaret; 1685 (m) a restaurant; 1686 (n) a hotel; 1687 (o) a lodging house; 1688 (p) a streetcar; 1689 (q) a bus; 1690 (r) an interurban or railway passenger coach; 1691 (s) a waiting room; and 1692 (t) any other place of business. 1693 [(14)] (15) "Prefilled electronic cigarette" means an electronic cigarette that is sold prefilled 1694 with an electronic cigarette substance. - 50 - 03-04 19:04 4th Sub. (Green) H.B. 432 1695 [(15)] (16) "Prefilled nontherapeutic nicotine device" means a nontherapeutic nicotine 1696 device that is sold prefilled with a nontherapeutic nicotine device substance. 1697 [(16)] (17) "Premarket authorized or pending electronic cigarette product" means an 1698 electronic cigarette product that: 1699 [(a)(i)] (a) has been approved by an order granting a premarket tobacco product 1700 application of the electronic cigarette product by the United States Food and Drug 1701 Administration under 21 U.S.C. Sec. 387j(c)(1)(A)(i); or 1702 [(ii)] (b)[(A)] (i) was marketed in the United States on or before August 8, 2016; 1703 [(B)] (ii) the manufacturer submitted a premarket tobacco product application for the 1704 electronic cigarette product to the United States Food and Drug Administration 1705 under 21 U.S.C. Sec. 387j on or before September 9, 2020; and 1706 [(C)] (iii) has an application described in Subsection [(16)(a)(ii)] (17)(b)(ii) that either 1707 remains under review by the United States Food and Drug Administration or a 1708 final decision on the application has not taken effect.[; and] 1709 [(b) does not exceed:] 1710 [(i) 4.0% nicotine by weight per container; or] 1711 [(ii) a nicotine concentration of 40 milligrams per milliliter.] 1712 [(17)] (18) "Retail tobacco specialty business" means the same as that term is defined in 1713 Section 26B-7-501. 1714 [(18)] (19) "Smoking" means the possession of any lighted cigar, cigarette, pipe, or other 1715 lighted smoking equipment. 1716 [(19)] (20)(a) "Tobacco paraphernalia" means equipment, product, or material of any 1717 kind that is used, intended for use, or designed for use to package, repackage, store, 1718 contain, conceal, ingest, inhale, or otherwise introduce a tobacco product, an 1719 electronic cigarette substance, or a nontherapeutic nicotine device substance into the 1720 human body. 1721 (b) "Tobacco paraphernalia" includes: 1722 (i) metal, wooden, acrylic, glass, stone, plastic, or ceramic pipes with or without 1723 screens, permanent screens, hashish heads, or punctured metal bowls; 1724 (ii) water pipes; 1725 (iii) carburetion tubes and devices; 1726 (iv) smoking and carburetion masks; 1727 (v) roach clips, meaning objects used to hold burning material, such as a cigarette, 1728 that has become too small or too short to be held in the hand; - 51 - 4th Sub. (Green) H.B. 432 03-04 19:04 1729 (vi) chamber pipes; 1730 (vii) carburetor pipes; 1731 (viii) electric pipes; 1732 (ix) air-driven pipes; 1733 (x) chillums; 1734 (xi) bongs; and 1735 (xii) ice pipes or chillers. 1736 (c) "Tobacco paraphernalia" does not include matches or lighters. 1737 [(20)] (21) "Tobacco product" means: 1738 (a) a cigar; 1739 (b) a cigarette; or 1740 (c) tobacco in any form, including: 1741 (i) chewing tobacco; and 1742 (ii) any substitute for tobacco, including flavoring or additives to tobacco. 1743 [(21)] (22) "Tobacco retailer" means: 1744 (a) a general tobacco retailer, as that term is defined in Section 26B-7-501; or 1745 (b) a retail tobacco specialty business. 1746 Section 25. Section 76-10-104 is amended to read: 1747 76-10-104 (Effective upon governor's approval). Providing a cigar, a cigarette, 1748 an electronic cigarette product, a nicotine product, or tobacco to a minor -- Penalties. 1749 (1) As used in this section "provides": 1750 (a) includes selling, giving, furnishing, sending, or causing to be sent; and 1751 (b) does not include the acts of the United States Postal Service or other common carrier 1752 when engaged in the business of transporting and delivering packages for others or 1753 the acts of a person, whether compensated or not, who transports or delivers a 1754 package for another person without any reason to know of the package's content. 1755 (2) An individual who knowingly, intentionally, recklessly, or with criminal negligence 1756 provides a tobacco product, an electronic cigarette product, or a nicotine product to an 1757 individual who is under 21 years old, is guilty of: 1758 (a) a class [C] B misdemeanor on the first offense; and 1759 [(b) a class B misdemeanor on the second offense; and] 1760 [(c)] (b) a class A misdemeanor on any subsequent offense. 1761 (3) This section does not apply to conduct of an employee of a tobacco retailer that is a 1762 violation of Section 76-10-114. - 52 - 03-04 19:04 4th Sub. (Green) H.B. 432 1763 (4)(a) After a conviction under this section, a court shall designate the individual as a 1764 nicotine restricted individual for a period of time not to exceed the probationary 1765 period, unless the court finds good cause to order a shorter or longer time. 1766 (b) The court shall provide the Department of Public Safety information regarding a 1767 nicotine restricted individual and the length of time the individual is restricted for 1768 entry into the system created in Section Section 53-1-106. 1769 Section 26. Section 76-10-104.1 is amended to read: 1770 76-10-104.1 (Effective upon governor's approval). Providing tobacco 1771 paraphernalia to a minor -- Penalties. 1772 (1) As used in this section, "provides": 1773 (a) includes selling, giving, furnishing, sending, or causing to be sent; and 1774 (b) does not include the acts of the United States Postal Service or other common carrier 1775 when engaged in the business of transporting and delivering packages for others or 1776 the acts of a person, whether compensated or not, who transports or delivers a 1777 package for another person without any reason to know of the package's content. 1778 (2)(a) It is unlawful for an individual to knowingly, intentionally, recklessly, or with 1779 criminal negligence provide tobacco paraphernalia to an individual under 21 years 1780 old. 1781 (b) An individual who violates this section is guilty of: 1782 (i) a class [C] B misdemeanor on the first offense; and 1783 (ii) a class [B] A misdemeanor on any subsequent offense. 1784 Section 27. Section 76-10-105.1 is amended to read: 1785 76-10-105.1 (Effective upon governor's approval). Requirement of direct, 1786 face-to-face sale of a tobacco product, an electronic cigarette product, or a nicotine 1787 product -- Minors not allowed in tobacco specialty shop -- Penalties. 1788 (1) As used in this section: 1789 (a)(i) "Face-to-face exchange" means a transaction made in person between an 1790 individual and a retailer or retailer's employee. 1791 (ii) "Face-to-face exchange" does not include a sale through a: 1792 (A) vending machine;[ or] 1793 (B) self-service display[.] ; or 1794 (C) a drive through. 1795 (b) "Retailer" means a person who: 1796 (i) sells a tobacco product, an electronic cigarette product, or a nicotine product to an - 53 - 4th Sub. (Green) H.B. 432 03-04 19:04 1797 individual for personal consumption; or 1798 (ii) operates a facility with a vending machine that sells a tobacco product, an 1799 electronic cigarette product, or a nicotine product. 1800 (c) "Self-service display" means a display of a tobacco product, an electronic cigarette 1801 product, or a nicotine product to which the public has access without the intervention 1802 of a retailer or retailer's employee. 1803 (2) Except as provided in Subsection (3), a retailer may sell a tobacco product, an electronic 1804 cigarette product, or a nicotine product only in a face-to-face exchange. 1805 (3) The face-to-face sale requirement in Subsection (2) does not apply to: 1806 (a) a mail-order, telephone, or Internet sale made in compliance with Section 59-14-509; 1807 or 1808 (b) a sale from a vending machine or self-service display that is located in an area of a 1809 retailer's facility: 1810 (i) that is distinct and separate from the rest of the facility; and 1811 (ii) where the retailer only allows an individual who complies with Subsection (4) to 1812 be present[; or] . 1813 [(c) a sale at a retail tobacco specialty business.] 1814 (4) An individual who is under 21 years old may not enter or be present at a retail tobacco 1815 specialty business unless the individual is: 1816 [(a) accompanied by a parent or legal guardian; or] 1817 [(b)(i)] (a) present at the retail tobacco specialty business solely for the purpose of 1818 providing a service to the retail tobacco specialty business, including making a 1819 delivery; 1820 [(ii)] (b) monitored by the proprietor of the retail tobacco specialty business or an 1821 employee of the retail tobacco specialty business; and 1822 [(iii)] (c) not permitted to make any purchase or conduct any commercial transaction 1823 other than the service described in Subsection [(4)(b)(i)] (4)(a). 1824 [(5) A parent or legal guardian who accompanies, under Subsection (4)(a), an individual 1825 into an area described in Subsection (3)(b) or into a retail tobacco specialty business 1826 may not allow the individual to purchase a tobacco product, an electronic cigarette 1827 product, or a nicotine product.] 1828 [(6)] (5) A violation of Subsection (2) or (4) is a: 1829 (a) class [C] B misdemeanor on the first offense; and 1830 [(b) class B misdemeanor on the second offense; and] - 54 - 03-04 19:04 4th Sub. (Green) H.B. 432 1831 [(c)] (b) class A misdemeanor on any subsequent offenses. 1832 [(7) An individual who violates Subsection (5) is guilty of an offense under Section 1833 76-10-104.] 1834 Section 28. Section 76-10-111 is amended to read: 1835 76-10-111 (Effective upon governor's approval). Restrictions on sale of 1836 smokeless tobacco or electronic cigarette products -- Exceptions. 1837 (1) The Legislature finds that: 1838 (a) smokeless tobacco, or chewing tobacco, is harmful to the health of individuals who 1839 use those products because research indicates that they may cause mouth or oral 1840 cancers; 1841 (b) the use of smokeless tobacco among juveniles in this state is [increasing rapidly] a 1842 matter of great concern; 1843 (c) the use of electronic cigarette products may lead to unhealthy behavior such as the 1844 use of tobacco products; and 1845 (d) it is necessary to restrict the gift of the products described in this Subsection (1) in 1846 the interest of the health of the citizens of this state. 1847 (2)(a) Except as provided in Subsection (3), it is unlawful for a manufacturer, 1848 wholesaler, and retailer to: 1849 (i) give or distribute without charge any smokeless tobacco, chewing tobacco, or 1850 electronic cigarette product in this state; 1851 (ii) sell, offer for sale, or furnish any electronic cigarette product at less than the cost, 1852 including the amount of any applicable tax, of the product to the manufacturer, 1853 wholesaler, or retailer; or 1854 (iii) give, distribute, sell, offer for sale, or furnish any electronic cigarette product for 1855 free or at a lower price because the recipient of the electronic cigarette product 1856 makes another purchase. 1857 (b) The price that a manufacturer, wholesaler, or retailer may charge under Subsection 1858 (2)(a)(ii) does not include a discount for: 1859 (i) a physical manufacturer coupon: 1860 (A) that is surrendered to the wholesaler or retailer at the time of sale; and 1861 (B) for which the manufacturer will reimburse the wholesaler or the retailer for 1862 the full amount of the discount described in the manufacturer coupon and 1863 provided to the purchaser; 1864 (ii) a rebate that will be paid to the manufacturer, the wholesaler, or the retailer for - 55 - 4th Sub. (Green) H.B. 432 03-04 19:04 1865 the full amount of the rebate provided to the purchaser; or 1866 (iii) a promotional fund that will be paid to the manufacturer, the wholesaler, or the 1867 retailer for the full amount of the promotional fund provided to the purchaser. 1868 (c) Any individual who violates this section is guilty of: 1869 (i) a class [C] B misdemeanor for the first offense; and 1870 (ii) a class [B] A misdemeanor for any subsequent offense. 1871 (3) Smokeless tobacco, chewing tobacco, or an electronic cigarette product may be 1872 distributed to adults without charge at professional conventions where the general public 1873 is excluded. 1874 Section 29. Section 76-10-112 is amended to read: 1875 76-10-112 (Effective upon governor's approval). Prohibition of distribution of a 1876 tobacco product -- Exceptions. 1877 (1) Except as provided in Subsection (3), it is unlawful for a manufacturer, wholesaler, or 1878 retailer to give or distribute a tobacco product in this state without charge. 1879 (2) An individual who violates this subsection is guilty of: 1880 (a) a class [C] B misdemeanor for the first offense; and 1881 (b) a class [B] A misdemeanor for any subsequent offense. 1882 (3) A tobacco product may be distributed to an adult without charge at a professional 1883 convention where the general public is excluded. 1884 (4) The prohibition described in Subsection (1) does not apply to a tobacco retailer, a 1885 manufacturer, or a distributor that gives a tobacco product to an individual who is 21 1886 years old or older upon the individual's purchase of a tobacco product. 1887 Section 30. Section 76-10-113 is amended to read: 1888 76-10-113 (Effective upon governor's approval). Prohibition on distribution of 1889 flavored electronic cigarette products -- Prohibition of electronic cigarette products 1890 without federal authorization. 1891 (1) [Subject to Subsection (2), it ] It is unlawful for a tobacco retailer that is not a retail 1892 tobacco specialty business to give, distribute, sell, offer for sale, or furnish a flavored 1893 electronic cigarette product to any person. 1894 [(2) Notwithstanding Subsection (1), and beginning on January 1, 2025, it is unlawful for a 1895 person to give, distribute, sell, offer for sale, or furnish to any person a flavored 1896 electronic cigarette product.] 1897 [(3)] (2) Beginning on January 1, 2025, it is unlawful for a person that is not a retail tobacco 1898 specialty business to give, distribute, sell, offer for sale, or furnish to any person an - 56 - 03-04 19:04 4th Sub. (Green) H.B. 432 1899 electronic cigarette product that is not a premarket authorized or pending electronic 1900 cigarette product. 1901 [(4)] (3) An individual who violates this section is guilty of: 1902 (a) a class [C] B misdemeanor for the first offense; and 1903 (b) a class [B] A misdemeanor for any subsequent offense. 1904 Section 31. Section 76-10-113.1 is enacted to read: 1905 76-10-113.1 (Effective upon governor's approval). Unlawful possession or use of 1906 a flavored electronic cigarette product. 1907 (1) Terms defined in Sections 76-1-101.5 and 76-10-101 apply to this section. 1908 (2) Beginning January 1, 2026, an actor commits illegal possession or use of a flavored 1909 electronic cigarette product without state authorization if the actor possesses or uses a 1910 flavored electronic cigarette product that is not on the registry described in Section 1911 58-14-908. 1912 (3) A violation of Subsection (2) is a class C misdemeanor. 1913 Section 32. Section 76-10-113.2 is enacted to read: 1914 76-10-113.2 (Effective upon governor's approval). Distribution of flavored 1915 electronic cigarette product without state authorization. 1916 (1) Terms defined in Sections 76-1-101.5 and 76-10-101 apply to this section. 1917 (2) Beginning January 1, 2026, an actor commits illegal distribution of a flavored electronic 1918 cigarette product without state authorization if the actor gives, distributes, sells, offers 1919 for sale, or furnishes to any person an electronic cigarette product that is not on the 1920 registry described in Section 59-14-908. 1921 (3) A violation of Subsection (2) is: 1922 (a) a class B misdemeanor on the first offense; or 1923 (b) a class A misdemeanor on a subsequent offense. 1924 Section 33. Section 76-10-114 is amended to read: 1925 76-10-114 (Effective upon governor's approval). Unlawful sale of a tobacco 1926 product, electronic cigarette product, or nicotine product. 1927 (1) As used in this section: 1928 (a) "Compensatory service" means service or unpaid work performed by an employee, in 1929 lieu of the payment of a fine or imprisonment. 1930 (b) "Employee" means an employee or an owner of a tobacco retailer. 1931 (2) It is unlawful for an employee to knowingly or intentionally sell or give a tobacco 1932 product, an electronic cigarette product, or a nicotine product in the course of business to - 57 - 4th Sub. (Green) H.B. 432 03-04 19:04 1933 an individual who is under 21 years old. 1934 (3) An employee who violates this section is: 1935 (a) on a first violation: 1936 (i) guilty of [an infraction] a class C misdemeanor; and 1937 (ii) subject to: 1938 (A) a fine not exceeding $1,000; or 1939 (B) compensatory service; or 1940 (b) on any subsequent violation: 1941 (i) guilty of a class [C] B misdemeanor; and 1942 (ii) subject to: 1943 (A) a fine not exceeding $2,000; or 1944 (B) compensatory service. 1945 Section 34. Repealer. 1946 This bill repeals: 1947 Section 26A-1-131, (Effective upon governor's approval)Electronic cigarette registry 1948 enforcement. 1949 Section 35. Effective Date. 1950 (1) Except as provided in Subsection (2), this bill takes effect: 1951 (a) except as provided in Subsection (1)(b), May 7, 2025; or 1952 (b) if approved by two-thirds of all members elected to each house: 1953 (i) upon approval by the governor; 1954 (ii) without the governor's signature, the day following the constitutional time limit of 1955 Utah Constitution, Article VII, Section 8; or 1956 (iii) in the case of a veto, the date of veto override. 1957 (2) The actions affecting the following sections take effect on January 1, 2026: 1958 (a) Section 59-14-901 (Effective 01/01/26); 1959 (b) Section 59-14-902 (Effective 01/01/26); 1960 (c) Section 59-14-903 (Effective 01/01/26); 1961 (d) Section 59-14-904 (Effective 01/01/26); 1962 (e) Section 59-14-905 (Effective 01/01/26); 1963 (f) Section 59-14-906 (Effective 01/01/26); 1964 (g) Section 59-14-907 (Effective 01/01/26); and 1965 (h) Section 59-14-908 (Effective 01/01/26). 1966 Section 36. Coordinating H.B. 432 with H.B. 21. - 58 - 03-04 19:04 4th Sub. (Green) H.B. 432 1967 If H.B. 432, Tobacco and Electronic Cigarette Enforcement Modifications, and H.B. 21, 1968 Criminal Code Recodification and Cross References, both pass and become law, the 1969 Legislature intends that, on May 7, 2025: 1970 (1) Subsection 76-9-1104(3) enacted in H.B. 21 be amended to read: 1971 "(3) A violation of Subsection (2) is: 1972 (a) a class B misdemeanor on the first offense; or 1973 (b) a class A misdemeanor on the second or subsequent offense."; 1974 (2) Subsection 76-10-105.1(1)(a)(ii) in H.B. 432 and Subsection 76-9-1107(1)(a)(i)(B) in 1975 H.B. 21 be amended to read: 1976 ""Face-to-face exchange" does not include a sale through a[:] vending machine, 1977 self-service display, or drive-through. 1978 [(A) vending machine; or] 1979 [(B) self-service display.] "; 1980 (3) Subsection 76-9-1107(3) enacted in H.B. 21 be amended to read: 1981 "(3) A violation of Subsection (2) is: 1982 (a) a class B misdemeanor on the first offense; or 1983 (b) a class A misdemeanor on the second or subsequent offense."; 1984 (4) Subsection 76-9-1107(4)(b)(ii)(A) enacted in H.B. 21 be deleted and the remaining 1985 subsections be renumbered accordingly; 1986 (5) the following subsections in Section 76-9-1108 enacted in H.B. 21 be deleted and the 1987 remaining subsections be renumbered accordingly: 1988 (a) Subsection 76-9-1108(4)(a); and 1989 (b) Subsection 76-9-1108(5); 1990 (6) Subsection 76-9-1108(3) enacted in H.B. 21 be amended to read: 1991 "(3) A violation of Subsection (2) is: 1992 (a) a class B misdemeanor on the first offense; or 1993 (b) a class A misdemeanor on the second or subsequent offense."; 1994 (7) Subsection 76-9-1112(3) enacted in H.B. 21 be amended to read: 1995 "(3) A violation of Subsection (2) is: 1996 (a) a class B misdemeanor on the first offense; or 1997 (b) a class A misdemeanor on the second or subsequent offense."; 1998 (8) Section 76-9-1114 (renumbered from Section 76-10-113 in H.B. 21) be amended to 1999 read: 2000 "[(1) Subject to Subsection (2), it is unlawful for a tobacco retailer that is not a retail - 59 - 4th Sub. (Green) H.B. 432 03-04 19:04 2001 tobacco specialty business to give, distribute, sell, offer for sale, or furnish a flavored 2002 electronic cigarette product to any person.] 2003 [(2) Notwithstanding Subsection (1), and beginning on January 1, 2025, it is unlawful 2004 for a person to give, distribute, sell, offer for sale, or furnish to any person a flavored 2005 electronic cigarette product.] 2006 [(3)Beginning on January 1, 2025, it is unlawful for a person to give, distribute, sell, 2007 offer for sale, or furnish to any person an electronic cigarette product that is not a 2008 premarket authorized or pending electronic cigarette product.] 2009 [(4)An individual who violates this section is guilty of:] 2010 [(a) a class C misdemeanor for the first offense; and] 2011 [(b)a class B misdemeanor for any subsequent offense.] 2012 (1) Terms defined in Sections 76-1-101.5 and 76-9-1101 apply to this section. 2013 (2) An actor commits illegal distribution of a flavored electronic cigarette product by 2014 a tobacco retailer if the actor: 2015 (a) is a tobacco retailer that is not a retail tobacco specialty business; and 2016 (b) gives, distributes, sells, offers for sale, or furnishes a flavored electronic cigarette 2017 product to any person. 2018 (3) A violation of Subsection (2) is: 2019 (a) a class B misdemeanor on the first offense; or 2020 (b) a class A misdemeanor on the second or subsequent offense."; and 2021 (9) Section 76-9-1115 enacted in H.B. 21 be amended to read: 2022 "(1) Terms defined in Sections 76-1-101.5 and 76-9-1101 apply to this section. 2023 (2) Beginning January 1, 2026, an actor commits illegal distribution of an electronic 2024 cigarette product without federal authorization if: 2025 (a) the actor is not a retail tobacco specialty business; and 2026 (b) the actor gives, distributes, sells, offers for sale, or furnishes to any person an 2027 electronic cigarette product that is not a premarket authorized or pending electronic 2028 cigarette product. 2029 (3) A violation of Subsection (2) is: 2030 (a) a class B misdemeanor on the first offense; or 2031 (b) a class A misdemeanor on a subsequent offense.". - 60 -