LEGISLATIVE GENERAL COUNSEL H.B. 566 6 Approved for Filing: C. Williams 6 6 02-16-24 8:46 AM 6 1 FLAVORED TOBACCO RESTRICTIONS 2 2024 GENERAL SESSION 3 STATE OF UTAH 4 Chief Sponsor: Nelson T. Abbott 5 Senate Sponsor: ____________ 6 7 LONG TITLE 8 General Description: 9 This bill prohibits the distribution of certain flavored tobacco and similar products. 10 Highlighted Provisions: 11 This bill: 12 < prohibits the distribution of all flavored tobacco and similar products except for the 13 following flavors: 14 C tobacco; 15 C mint; and 16 C menthol. 17 Money Appropriated in this Bill: 18 None 19 Other Special Clauses: 20 None 21 Utah Code Sections Affected: 22 AMENDS: 23 10-8-41.6, as last amended by Laws of Utah 2023, Chapter 327 24 17-50-333, as last amended by Laws of Utah 2023, Chapter 327 25 53-7-404, as last amended by Laws of Utah 2008, Chapter 216 H.B. 566 26 76-10-101, as last amended by Laws of Utah 2023, Chapter 330 27 76-10-111, as last amended by Laws of Utah 2020, Chapters 302, 347 *HB0566* H.B. 566 02-16-24 8:46 AM 28 76-10-112, as last amended by Laws of Utah 2020, Chapter 302 29 76-10-113, as enacted by Laws of Utah 2020, Chapter 302 30 76-10-116, as enacted by Laws of Utah 2020, Chapter 302 31 32 Be it enacted by the Legislature of the state of Utah: 33 Section 1. Section 10-8-41.6 is amended to read: 34 10-8-41.6. Regulation of retail tobacco specialty business. 35 (1) As used in this section: 36 (a) "Community location" means: 37 (i) a public or private kindergarten, elementary, middle, junior high, or high school; 38 (ii) a licensed child-care facility or preschool; 39 (iii) a trade or technical school; 40 (iv) a church; 41 (v) a public library; 42 (vi) a public playground; 43 (vii) a public park; 44 (viii) a youth center or other space used primarily for youth oriented activities; 45 (ix) a public recreational facility; 46 (x) a public arcade; or 47 (xi) for a new license issued on or after July 1, 2018, a homeless shelter. 48 (b) "Department" means the Department of Health and Human Services created in 49 Section 26B-1-201. 50 (c) "Electronic cigarette product" means the same as that term is defined in Section 51 76-10-101. 52 [(d) "Flavored electronic cigarette product" means the same as that term is defined in 53 Section 76-10-101.] 54 [(e)] (d) "Licensee" means a person licensed under this section to conduct business as a 55 retail tobacco specialty business. 56 [(f)] (e) "Local health department" means the same as that term is defined in Section 57 26A-1-102. 58 [(g)] (f) "Nicotine product" means the same as that term is defined in Section -2- 02-16-24 8:46 AM H.B. 566 59 76-10-101. 60 [(h)] (g) "Retail tobacco specialty business" means a commercial establishment in 61 which: 62 (i) sales of tobacco products, electronic cigarette products, and nicotine products 63 account for more than 35% of the total quarterly gross receipts for the establishment; 64 (ii) 20% or more of the public retail floor space is allocated to the offer, display, or 65 storage of tobacco products, electronic cigarette products, or nicotine products; 66 (iii) 20% or more of the total shelf space is allocated to the offer, display, or storage of 67 tobacco products, electronic cigarette products, or nicotine products; 68 (iv) the commercial establishment: 69 (A) holds itself out as a retail tobacco specialty business; and 70 (B) causes a reasonable person to believe the commercial establishment is a retail 71 tobacco specialty business; or 72 [(v) any flavored electronic cigarette product is sold; or] 73 [(vi)] (v) the retail space features a self-service display for tobacco products, electronic 74 cigarette products, or nicotine products. 75 [(i)] (h) "Self-service display" means the same as that term is defined in Section 76 76-10-105.1. 77 [(j)] (i) "Tobacco product" means: 78 (i) a tobacco product as defined in Section 76-10-101; or 79 (ii) tobacco paraphernalia as defined in Section 76-10-101. 80 (2) The regulation of a retail tobacco specialty business is an exercise of the police 81 powers of the state by the state or by delegation of the state's police powers to other 82 governmental entities. 83 (3) (a) A person may not operate a retail tobacco specialty business in a municipality 84 unless the person obtains a license from the municipality in which the retail tobacco specialty 85 business is located. 86 (b) A municipality may only issue a retail tobacco specialty business license to a 87 person if the person complies with the provisions of Subsections (4) and (5). 88 (4) (a) Except as provided in Subsection (7), a municipality may not issue a license for 89 a person to conduct business as a retail tobacco specialty business if the retail tobacco specialty -3- H.B. 566 02-16-24 8:46 AM 90 business is located within: 91 (i) 1,000 feet of a community location; 92 (ii) 600 feet of another retail tobacco specialty business; or 93 (iii) 600 feet from property used or zoned for: 94 (A) agriculture use; or 95 (B) residential use. 96 (b) For purposes of Subsection (4)(a), the proximity requirements shall be measured in 97 a straight line from the nearest entrance of the retail tobacco specialty business to the nearest 98 property boundary of a location described in Subsections (4)(a)(i) through (iii), without regard 99 to intervening structures or zoning districts. 100 (5) A municipality may not issue or renew a license for a person to conduct business as 101 a retail tobacco specialty business until the person provides the municipality with proof that the 102 retail tobacco specialty business has: 103 (a) a valid permit for a retail tobacco specialty business issued under Title 26B, 104 Chapter 7, Part 5, Regulation of Smoking, Tobacco Products, and Nicotine Products, by the 105 local health department having jurisdiction over the area in which the retail tobacco specialty 106 business is located; and 107 (b) (i) for a retailer that sells a tobacco product, a valid license issued by the State Tax 108 Commission in accordance with Section 59-14-201 or 59-14-301 to sell a tobacco product; and 109 (ii) for a retailer that sells an electronic cigarette product or a nicotine product, a valid 110 license issued by the State Tax Commission in accordance with Section 59-14-803 to sell an 111 electronic cigarette product or a nicotine product. 112 (6) (a) Nothing in this section: 113 (i) requires a municipality to issue a retail tobacco specialty business license; or 114 (ii) prohibits a municipality from adopting more restrictive requirements on a person 115 seeking a license or renewal of a license to conduct business as a retail tobacco specialty 116 business. 117 (b) A municipality may suspend or revoke a retail tobacco specialty business license 118 issued under this section: 119 (i) if a licensee engages in a pattern of unlawful activity under Title 76, Chapter 10, 120 Part 16, Pattern of Unlawful Activity Act; -4- 02-16-24 8:46 AM H.B. 566 121 (ii) if a licensee violates federal law or federal regulations restricting the sale and 122 distribution of tobacco products or electronic cigarette products to protect children and 123 adolescents; 124 (iii) upon the recommendation of the department or a local health department under 125 Title 26B, Chapter 7, Part 5, Regulation of Smoking, Tobacco Products, and Nicotine 126 Products; or 127 (iv) under any other provision of state law or local ordinance. 128 (7) (a) A retail tobacco specialty business is exempt from Subsection (4) if: 129 (i) on or before December 31, 2018, the retail tobacco specialty business was issued a 130 license to conduct business as a retail tobacco specialty business; 131 (ii) the retail tobacco specialty business is operating in a municipality in accordance 132 with all applicable laws except for the requirement in Subsection (4); and 133 (iii) beginning July 1, 2022, the retail tobacco specialty business is not located within 134 1,000 feet of a public or private kindergarten, elementary, middle, junior high, or high school. 135 (b) A retail tobacco specialty business may maintain an exemption under Subsection 136 (7)(a) if: 137 (i) the license described in Subsection (7)(a)(i) is renewed continuously without lapse 138 or permanent revocation; 139 (ii) the retail tobacco specialty business does not close for business or otherwise 140 suspend the sale of tobacco products, electronic cigarette products, or nicotine products for 141 more than 60 consecutive days; 142 (iii) the retail tobacco specialty business does not substantially change the business 143 premises or business operation; and 144 (iv) the retail tobacco specialty business maintains the right to operate under the terms 145 of other applicable laws, including: 146 (A) Section 26B-7-503; 147 (B) zoning ordinances; 148 (C) building codes; and 149 (D) the requirements of the license described in Subsection (7)(a)(i). 150 (c) A retail tobacco specialty business that does not qualify for an exemption under 151 Subsection (7)(a) is exempt from Subsection (4) if: -5- H.B. 566 02-16-24 8:46 AM 152 (i) on or before December 31, 2018, the retail tobacco specialty business was issued a 153 general tobacco retailer permit or a retail tobacco specialty business permit under Title 26B, 154 Chapter 7, Part 5, Regulation of Smoking, Tobacco Products, and Nicotine Products, by the 155 local health department having jurisdiction over the area in which the retail tobacco specialty 156 business is located; 157 (ii) the retail tobacco specialty business is operating in the municipality in accordance 158 with all applicable laws except for the requirement in Subsection (4); and 159 (iii) beginning July 1, 2022, the retail tobacco specialty business is not located within 160 1,000 feet of a public or private kindergarten, elementary, middle, junior high, or high school. 161 (d) Except as provided in Subsection (7)(e), a retail tobacco specialty business may 162 maintain an exemption under Subsection (7)(c) if: 163 (i) on or before December 31, 2020, the retail tobacco specialty business receives a 164 retail tobacco specialty business permit from the local health department having jurisdiction 165 over the area in which the retail tobacco specialty business is located; 166 (ii) the permit described in Subsection (7)(d)(i) is renewed continuously without lapse 167 or permanent revocation; 168 (iii) the retail tobacco specialty business does not close for business or otherwise 169 suspend the sale of tobacco products, electronic cigarette products, or nicotine products for 170 more than 60 consecutive days; 171 (iv) the retail tobacco specialty business does not substantially change the business 172 premises or business operation as the business existed when the retail tobacco specialty 173 business received a permit under Subsection (7)(d)(i); and 174 (v) the retail tobacco specialty business maintains the right to operate under the terms 175 of other applicable laws, including: 176 (A) Section 26B-7-503; 177 (B) zoning ordinances; 178 (C) building codes; and 179 (D) the requirements of the retail tobacco permit described in Subsection (7)(d)(i). 180 (e) A retail tobacco specialty business described in Subsection (7)(a) or (b) that is 181 located within 1,000 feet of a public or private kindergarten, elementary, middle, junior high, 182 or high school before July 1, 2022, is exempt from Subsection (4)(a)(iii)(B) if the retail tobacco -6- 02-16-24 8:46 AM H.B. 566 183 specialty business: 184 (i) relocates, before July 1, 2022, to a property that is used or zoned for commercial use 185 and located within a group of architecturally unified commercial establishments built on a site 186 that is planned, developed, owned, and managed as an operating unit; and 187 (ii) continues to meet the requirements described in Subsection (7)(b) that are not 188 directly related to the relocation described in this Subsection (7)(e). 189 Section 2. Section 17-50-333 is amended to read: 190 17-50-333. Regulation of retail tobacco specialty business. 191 (1) As used in this section: 192 (a) "Community location" means: 193 (i) a public or private kindergarten, elementary, middle, junior high, or high school; 194 (ii) a licensed child-care facility or preschool; 195 (iii) a trade or technical school; 196 (iv) a church; 197 (v) a public library; 198 (vi) a public playground; 199 (vii) a public park; 200 (viii) a youth center or other space used primarily for youth oriented activities; 201 (ix) a public recreational facility; 202 (x) a public arcade; or 203 (xi) for a new license issued on or after July 1, 2018, a homeless shelter. 204 (b) "Department" means the Department of Health and Human Services created in 205 Section 26B-1-201. 206 (c) "Electronic cigarette product" means the same as that term is defined in Section 207 76-10-101. 208 [(d) "Flavored electronic cigarette product" means the same as that term is defined in 209 Section 76-10-101.] 210 [(e)] (d) "Licensee" means a person licensed under this section to conduct business as a 211 retail tobacco specialty business. 212 [(f)] (e) "Local health department" means the same as that term is defined in Section 213 26A-1-102. -7- H.B. 566 02-16-24 8:46 AM 214 [(g)] (f) "Nicotine product" means the same as that term is defined in Section 215 76-10-101. 216 [(h)] (g) "Retail tobacco specialty business" means a commercial establishment in 217 which: 218 (i) sales of tobacco products, electronic cigarette products, and nicotine products 219 account for more than 35% of the total quarterly gross receipts for the establishment; 220 (ii) 20% or more of the public retail floor space is allocated to the offer, display, or 221 storage of tobacco products, electronic cigarette products, or nicotine products; 222 (iii) 20% or more of the total shelf space is allocated to the offer, display, or storage of 223 tobacco products, electronic cigarette products, or nicotine products; 224 (iv) the commercial establishment: 225 (A) holds itself out as a retail tobacco specialty business; and 226 (B) causes a reasonable person to believe the commercial establishment is a retail 227 tobacco specialty business; or 228 [(v) any flavored electronic cigarette product is sold; or] 229 [(vi)] (v) the retail space features a self-service display for tobacco products, electronic 230 cigarette products, or nicotine products. 231 [(i)] (h) "Self-service display" means the same as that term is defined in Section 232 76-10-105.1. 233 [(j)] (i) "Tobacco product" means: 234 (i) the same as that term is defined in Section 76-10-101; or 235 (ii) tobacco paraphernalia as defined in Section 76-10-101. 236 (2) The regulation of a retail tobacco specialty business is an exercise of the police 237 powers of the state by the state or by the delegation of the state's police power to other 238 governmental entities. 239 (3) (a) A person may not operate a retail tobacco specialty business in a county unless 240 the person obtains a license from the county in which the retail tobacco specialty business is 241 located. 242 (b) A county may only issue a retail tobacco specialty business license to a person if 243 the person complies with the provisions of Subsections (4) and (5). 244 (4) (a) Except as provided in Subsection (7), a county may not issue a license for a -8- 02-16-24 8:46 AM H.B. 566 245 person to conduct business as a retail tobacco specialty business if the retail tobacco specialty