HB 385 — Specialized Product Sales Amendments

(3){(11)}(11) {"Electronic cigarette } "Specialized productretailer"product retailer" means {the same as } a person that {term is defined in Section 76-9-1101} sells a specialized product.

{(4)(12) {"License""Tobacco means the license described in Section 4-45a-102.} } {(5) {"Licensee" means a retail tobacco specialty business licensed under Section 4-45a-102.} } {(6) {"Nicotine product" meansmeans: the same as that term is defined in Section 76-9-1101.} } {(7) {"Product list" means a list of consumable products sold by a licensee.} } {(8) {"Retail tobacco specialty business" means a commercial establishment in which:} } {(a) {sales of tobacco products, electronic cigarette products, and nicotine products account for more than 35% of the total quarterly gross receipts for the establishment;} } {(b) {20% or more of the public retail floor space is allocated to the offer, display, or storage of tobacco products, electronic cigarette products, or nicotine products;} } {(c) {20% or more of the total shelf space is allocated to the offer, display, or storage of tobacco products, electronic cigarette products, or nicotine products;} } {(d) {the commercial establishment:} } {(i) {holds itself out as a retail tobacco specialty business;

and} } {(ii) {causes a reasonable person to believe the commercial establishment is a retail tobacco specialty business;

or} } {(e) {the retail space features a self-service display for tobacco products, electronic cigarette products, or nicotine products.} } {(9) {"Self-service display" means the same as that term is defined in Section 76-9-1107.} } (10){(12)} "Tobacco product" means:

- 5 - HB0385 compared with HB0385S03 (13) "Tobacco retailer" means a person that is required to obtain a State Tax Commission license for the sale of an electronic cigarette product, nicotine product, or tobacco product.

Section 24-45a-102 is enacted to read:

4-45a-102.4-45a-102 .

(1) A {retail tobacco specialty business } specialized product retailer may not {operate } sell a specialized product in the state unless the {retail tobacco specialty business } specialized product retailer obtains a license from the department.

{(2)(2) } (a){(2)} {A fee for } The department shall charge the following fees to obtain a license under this {section is $10,000.} chapter:

(b){(3)}(3) The term for a license under this section is one year.

(3){(4)}(4) The department may not issue a license to a person under this section unless the person provides proof that the personhasperson has obtained the applicable license, registration, or permit, required by law for each specialized product type that the person sells which may include:

(a) {is licensed under } a license for a retail tobacco specialty business described in Section 10-8-41.6 and Section- 17-78-1004;4 - Enrolled Copy H.B.

(b)385 {hasSection }17-78-1004; a valid permit for a {retail } tobacco {specialty business } retailer issued under Title 26B, Chapter 7, Part 5, Regulation of Smoking, Tobacco Products, and Nicotine Products, by the local health department having jurisdiction over the area in which the {retail tobacco specialty business } tobacco retailer is located;

and(b) -a 6valid -permit HB0385for compareda withtobacco HB0385S03retailer (c)issued {hasunder }Title each26B, appropriateChapter license7, fromPart the5, StateRegulation Taxof CommissionSmoking, forTobacco eachProducts, productand Nicotine Products, by the personlocal willhealth selldepartment thathaving requiresjurisdiction aover licensethe fromarea in which the Statetobacco Taxretailer Commission.is located;

(4){(5)}and A(c) personeach thatappropriate operateslicense afrom {retailthe tobaccoState specialtyTax businessCommission }for specializedeach product retailerthe withoutperson awill currentsell andthat validrequires a license describedfrom inthe SubsectionState (1)Tax isCommission. subject to a $50,000 civil fine.

(5) A person that operates a specialized product retailer without a current and valid license described in Subsection (1) is subject to a $50,000 civil fine.

(5){(7)}(7) The department shall deposit fees collected under this section into the Qualified Patient Enterprise Fund described in Section 26B-1-310.

Section 34-45a-103 is enacted to read:

4-45a-103.4-45a-103 .

(a) for a publicly traded company, a financial or voting interest of 10% or greater in the {retail tobacco specialty business} specialized product retailer;

(b) for a privately held company, a financial or voting interest in the {retail tobacco specialty business} specialized product retailer;

or (c) the power to direct or cause the management or control of the {retail tobacco specialty business} specialized product retailer.

Section 44-45a-104 is enacted to read:

4-45a-104.4-45a-104 .

(1)(1)(a) (a) A licensee shall provide the department a product list.

(b) At least seven days before selling a {consumable } specialized product not on the product list, a licensee shall notify the department and provide an updated product list that includes the additional {consumable } specialized product.

- 75 - HB0385H.B. compared with HB0385S03 (c) For any product on a product list or that is being added to a product list under Subsection (1)(b), the licensee shall provide the department with access to the ingredient list for the {consumable } specialized product.

(d)385 TheEnrolled departmentCopy may(c) removeFor {consumableany }product specializedon productsa fromproduct list or that is being added to a product list ifunder theSubsection possession(1)(b), orthe salelicensee ofshall provide the {consumabledepartment }with specializedaccess productto violatesthe stateingredient law.list for the specialized product.

(2)(d) AThe licenseedepartment may notremove sellspecialized products from a {consumableproduct }list specializedif productthe thatpossession isor notsale onof the specialized product listviolates providedstate tolaw. the department.

(3)(2) IfA requestedlicensee bymay thenot departmentsell to provide a {consumable } specialized product forthat inspectionis ornot testing,on a licensee shall provide the requestedproduct {consumablelist }provided specialized product to the department.

(4)(3) (a)If Arequested licenseeby thatthe sellsdepartment ato productprovide ina violationspecialized ofproduct Subsectionfor (2)inspection isor subjecttesting, to a $1,000licensee fineshall forprovide eachthe productrequested soldspecialized inproduct violationto ofthe Subsectiondepartment. (2).

(4)(a) A licensee that sells a product in violation of Subsection (2) is subject to a $1,000 fine for each product sold in violation of Subsection (2).

Section 54-45a-105 is enacted to read:

4-45a-105.4-45a-105 .

26B-1-310.26B-1-310 .

and - 8 - HB0385 compared with HB0385S03 (c) the interest described in Subsection (3).

(4)(4)(a) (a) [Money] Except as provided in Subsection (4)(b), money deposited into the fund may only be used by:

[(a)]- (i)6 the- departmentEnrolled toCopy accomplishH.B. the department's responsibilities described in Chapter 4, Part 2, Cannabinoid Research and Medical Cannabis;

[(b)]385 (ii)[(a)] {(i) and{the }department [(b)]to (ii)accomplish the Centerdepartment's forresponsibilities Medicaldescribed Cannabis Research created in SectionChapter 53H-4-2064, toPart accomplish2, theCannabinoid CenterResearch forand Medical CannabisCannabis; Research's responsibilities{[;

and{]}[(b)] .}(ii) [(c)]the (iii)Center {the Department of Agriculture and Food for theMedical oneCannabis timeResearch purchasecreated of equipment to meet the requirements described in Section 4-41a-204.1.]}53H-4-206 (b)to Foraccomplish moneythe depositedCenter underfor SectionMedical 4-45a-102,Cannabis theResearch's departmentresponsibilities; shall:

and [(c)] (iii) the Department of Agriculture and Food for the one time purchase of equipment to meet the requirements described in Section 4-41a-204.1.

(b) For money deposited under Section 4-45a-102, the department shall:

Section 759-14-106 is enacted to read:

59-14-106.59-14-106 .

- 9 - HB0385 compared with HB0385S03 (3) The tax commission shall revoke each license described in Section 59-14-201, 59-14-301, and 59-14-803 that a licensee holds if the tax commission receives notice that a licensee has been charged with a criminal offense involving possession with intent to distribute, distribution, or sale of a controlled substance.

76-9-1102.76-9-1102 .

CigaretteCigarette, electronic cigarette, nicotine product, or tobacco advertising violation.

(2)- Except7 as- providedH.B. in Subsection (4), an actor commits cigarette or tobacco advertising violation if the actor displays on a billboard, streetcar sign, streetcar, bus, placard, or on any other object or place of display, an advertisement of cigarettes, electronic cigarette products, cigarette papers, cigars, chewing tobacco, nicotine products, or smoking tobacco or any disguise or substitute of cigarettes, cigarette papers, tobacco, or cigars.

385 Enrolled Copy (2) Except as provided in Subsection (4), an actor commits cigarette or tobacco advertising violation if the actor displays on a billboard, streetcar sign, streetcar, bus, placard, or on any other object or place of display, an advertisement of cigarettes, electronic cigarette products, cigarette papers, cigars, chewing tobacco, nicotine products, or smoking tobacco or any disguise or substitute of cigarettes, cigarette papers, tobacco, or cigars.

(4)(4)(a) (a) A dealer of cigarettes, electronic cigarette products, cigarette papers, tobacco, cigars, nicotine products, or a substitute for cigarettes, cigarette papers, tobacco, or cigars may have a sign on the front of the dealer's place of business stating that the dealer is a dealer of cigarettes, electronic cigarette products, cigarette papers, tobacco, cigars, nicotine products, or a substitute for cigarettes, cigarette papers, tobacco, or cigars.

76-9-1116.76-9-1116 .

(1)(1)(a) (a) As used in this section:

- 10 - HB0385 compared with HB0385S03 (2) An actor commits unlawful sale of a tobacco product, electronic cigarette product, or nicotine product if the actor:

or (b)- on8 a- subsequentEnrolled violation:Copy H.B.

385 (b) on a subsequent violation:

77-39-101.77-39-101 .

(2)(2)(a) (a) A peace officer may investigate the possible violation of:

- 11 - HB0385 compared with HB0385S03 (ii) Section 76-9-1103, 76-9-1104, 76-9-1105, or 76-9-1116 by requesting an individual under 21 years old to enter into and attempt to purchase or make a purchase from a retail establishment of:

(ii)- (A)9 a- tobaccoH.B. product;

385 Enrolled Copy (ii)(A) a tobacco product;

(3)(3)(a) (a) If an individual under 18 years old is requested to attempt a purchase, a written consent of that individual's parent or guardian shall be obtained before the individual participates in any attempted purchase.

- 12 - HB0385 compared with HB0385S03 (4) The individual requested by the peace officer to attempt a purchase and anyone accompanying the individual attempting a purchase may use false identification in attempting the purchase if:

(6)(6)(a) (a) Except as provided in Subsection (6)(b), a purchase attempted under this section shall be conducted within a 12-month period:

(ii) a minimum of two times at a retail establishment that sells tobacco products, electronic- cigarette10 products,- orEnrolled nicotineCopy productsH.B. for the attempted purchase of a tobacco product, an electronic cigarette product, or a nicotine product;

385 electronic cigarette products, or nicotine products for the attempted purchase of a tobacco product, an electronic cigarette product, or a nicotine product;

(7)(7)(a) - 13 - HB0385 compared with HB0385S03 (a) The peace officer exercising direction, supervision, and monitoring of the attempted purchase shall make a report of the attempted purchase, whether or not a purchase was made.

Effective date.

3-2-26 6:25 PM - 1411 -