§ 59-14-803 — License to sell electronic cigarette product or nicotine product.

Utah § 59-14-803

• Jurisdiction: Utah
• Title 59: Revenue and Taxation
• Ch. 59-14: Cigarette and Tobacco Tax and Licensing Act
• Part 59-14-8: Electronic Cigarette and Nicotine Product Licensing and Taxation Act

Text

(1) A person may not sell, offer to sell, or distribute an electronic cigarette product or a nicotine product in this state without first:

(1)(a) except as provided in Subsection (2), obtaining a license from the commission under this section to sell an electronic cigarette product or a nicotine product; and
(1)(b) complying with any bonding requirement described in Subsection (5).
(2) A person that holds a valid license to sell cigarettes under Section 59-14-201 or a person that holds a valid license to sell tobacco products under Section 59-14-301 may, without obtaining a separate license in accordance with this section, sell, offer to sell, or distribute an electronic cigarette product or a nicotine product in this state.
(3) The commission shall issue a license to sell an electronic cigarette product or a nicotine product to a person that submits an application, on a form created by the commission, that includes:

(3)(a) the person's name;
(3)(b) the address of the facility where the person will sell an electronic cigarette product or a nicotine product; and
(3)(c) any other information the commission requires to implement this chapter.
(4) A license described in Subsection (3) is:

(4)(a) valid only at one fixed business address;
(4)(b) valid for three years;
(4)(c) valid only for a physical location; and
(4)(d) renewable if a licensee meets the criteria for licensing described in Subsection (3).
(5) (5)(a) The commission shall require a manufacturer, jobber, distributor, wholesaler, or retailer that is responsible under this part for the collection of tax on an electronic cigarette substance, a prefilled electronic cigarette, an alternative nicotine product, a nontherapeutic nicotine device substance, or a prefilled nontherapeutic nicotine device to post a bond.
(5)(b) The manufacturer, jobber, distributor, wholesaler, or retailer may post the bond required by Subsection (5)(a) in combination with any bond required by Section 59-14-201 or 59-14-301.
(5)(c) Subject to Subsection (5)(d), the commission shall determine the form and amount of the bond.
(5)(d) The minimum amount of the bond shall be:
(5)(d)(i) except as provided in Subsection (5)(d)(ii) or (iii), $500;
(5)(d)(ii) if the manufacturer, jobber, distributor, wholesaler, or retailer posts the bond required by Subsection (5)(a) in combination with a bond required by either Section 59-14-201 or 59-14-301, $1,000; or
(5)(d)(iii) if the manufacturer, jobber, distributor, wholesaler, or retailer posts the bond required by Subsection (5)(a) in combination with a bond required by both Sections 59-14-201 and 59-14-301, $1,500.
(6) The commission may make rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to establish the additional information described in Subsection (3)(c) that a person shall provide in the application described in Subsection (3).
(7) It is a class B misdemeanor for a person to violate Subsection (1).
(8) The commission may not charge a fee for a license under this section.

Legislative History

Amended by Chapter 347, 2020 General Session