Nicotine Amendments, the official text

Nicotine Amendments
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Jen Plumb
House Sponsor: Jefferson S. Burton

LONG TITLE
General Description:
This bill amends provisions related to products that contain nicotine.
Highlighted Provisions:
This bill: repeals provisions related to local health department inspections of electronic cigarette retailers;
amends provisions related to fees to be collected by the State Tax Commission for the sale of tobacco products, nicotine products, and electronic cigarette products;
directs that certain fee money be used to dispose of confiscated electronic cigarette products and additional enforcement;
amends provisions related to fines and license suspensions for selling products not listed on the electronic cigarette product registry; and
amends criminal penalties related to the sale of a product containing nicotine.

Money Appropriated in this Bill: None Other Special Clauses: This bill provides a special effective date. Utah Code Sections Affected: AMENDS:
26A-1-131 Effective 05/06/26, as enacted by Laws of Utah 2024, Chapter 470
59-14-201 Effective 01/01/27, as last amended by Laws of Utah 2018, Chapter 231
59-14-202 Effective 01/01/27, as last amended by Laws of Utah 2004, Chapter 217
59-14-203 Effective 01/01/27, as last amended by Laws of Utah 2004, Chapter 217
59-14-301 Effective 01/01/27, as last amended by Laws of Utah 2011, Chapter 96
59-14-803 Effective 01/01/27, as last amended by Laws of Utah 2020, Chapter 347
59-14-810 Effective 05/06/26, as last amended by Laws of Utah 2025, Chapter 173
76-9-1116 Effective 05/06/26, as renumbered and amended by Laws of Utah 2025, Chapter 173

ENACTS:
53-1-123 Effective 01/01/27, Utah Code Annotated 1953

Be it enacted by the Legislature of the state of Utah:
Section 1. Section 26A-1-131 is amended to read:
26A-1-131 Effective 05/06/26. Electronic cigarette registry enforcement.
[(1) (a) A local health department may examine the books, papers, and records of a retailer in this state, for the purpose of determining compliance with Section 59-14-810.]
[(b) A local health department may make the inspections and examinations at any time during ordinary business hours, and may inspect the premises and all desks, safes, vaults, and other fixtures and furniture contained in or upon the premises for the purpose of ascertaining whether an electronic cigarette product is held or possessed in violation of Section 59-14-810.]
[(c) Unannounced follow-up examinations of all retailers are required within 30 days after any violation of Section 59-14-810.]

[(d)] (1) (a) A local health department may conduct regular inspections of a business that sells an electronic cigarette product as that term is defined in Section 76-10-101, in accordance with the provisions of Section 26B-7-516.
(b) A local health department shall publish the results of all [examinations] inspections at least annually and shall make the results available to the public on request.
[(e)] (c) Any electronic cigarette product offered for sale in violation of Section 59-14-810 is declared to be a contraband good and shall be immediately embargoed by a local health department.
[(f)] (d) An electronic cigarette product described in Subsection [(1)(e)] (1)(c) may be embargoed [without a warrant]by: (i) a local health department; or
(ii) a law enforcement agency of this state if directed by a local health department with jurisdiction over where the product is found.

[(g)] (e) The cost of embargoing shall be borne by the retailer.
[(h)] (f) In an action brought under this section, a local health department may recover reasonable expenses incurred in investigating and preparing the case and attorney fees.
[(i)] (g) A retailer shall remove any embargoed electronic cigarette product from the retailer's active inventory and work with the wholesaler or distributor to return or dispose the electronic cigarette product.

(2) (a) A local health department shall disclose to the attorney general any information received under this section which is requested by the attorney general for purposes of determining compliance with and enforcing the provisions of this section or Section 59-14-810.
(b) A local health department and the attorney general shall share with each other information received under this section and Section 59-14-810 or corresponding laws of other states.
(c) A local health department shall provide any necessary information to the State Tax Commission regarding violations of Section 59-14-810.

[(3) A monetary penalty assessed to a retailer by a local health department under this section shall be doubled if the retailer fails to provide documentation establishing a clear chain of custody back to the manufacturer.]

Section 2. Section 53-1-123 is enacted to read:
53-1-123 Effective 01/01/27. Nicotine Disposal and Enforcement Restricted Account.
(1) There is created within the General Fund a restricted account known as the "Nicotine Disposal and Enforcement Restricted Account."
(2) The Nicotine Disposal and Enforcement Restricted Account consists of: (a) revenue allocated and collected from a license fee imposed under Sections 59-14-201, 59-14-301, and 59-14-803; and
(b) appropriations from the Legislature.

(3) For each fiscal year and subject to appropriation by the Legislature, the Division of Finance shall distribute from the funds deposited under Subsection (2)(a) into the Nicotine Disposal and Enforcement Restricted Account to the department for: (a) the disposal of confiscated electronic cigarette products; and
(b) additional law enforcement officers to disrupt organizations and networks that provide tobacco products, electronic cigarette products, nicotine products, and other illegal controlled substances to minors.

(4) Subject to appropriation, the department may determine how the funds may be used if the funds are used for a purpose described in Subsection (3).
(5) The department may award grants to other state and local law enforcement agencies and local education agencies for the disposal of confiscated electronic cigarette products.

Section 3. Section 59-14-201 is amended to read:
59-14-201 Effective 01/01/27. License -- Application of part -- Fee -- Bond -- Exceptions.
(1) It is unlawful for any person in this state to manufacture, import, distribute, barter, sell, exchange, or offer cigarettes for sale without first having obtained a license issued by the commission under Section 59-14-202.
(2) Except for the tax rates described in Subsection 59-14-204(2), this part does not apply to a cigarette produced from a cigarette rolling machine.
(3) (a) [A license may not be issued for the sale of cigarettes until the applicant has paid a license fee of $30 or a license renewal fee of $20, as appropriate] The commission shall charge $250 for issuing or renewing a license under this section.
(b) The fee for reinstatement of a license that has been revoked, suspended, or allowed to expire is [$30] $250.
(c) [Notwithstanding Subsections (3)(a) and (b), the commission may not charge a fee for a license under this section for a retailer, as defined in Section 59-14-102] The commission shall deposit 88% of any fee received under this section to the fund described in Section 53-1-123.

(4) (a) A license may not be issued until the applicant files a bond with the commission. The commission shall determine the form and the amount of the bond, the minimum amount of which shall be $500. The bond shall be executed by the applicant as principal, with a corporate surety, payable to the state and conditioned upon the faithful performance of all the requirements of this chapter, including the payment of all taxes, penalties, and other obligations.
(b) An applicant is not required to post a bond if the applicant: (i) purchases during the license year only products that have the proper state stamp affixed as required by this chapter; and
(ii) files an affidavit with the applicant's application attesting to this fact.

(5) A person licensed under this section shall disclose on the application for a license each category of product the person will sell under the license from the following categories: (a) tobacco products;
(b) nicotine products; or
(c) electronic cigarette products.

Section 4. Section 59-14-202 is amended to read:
59-14-202 Effective 01/01/27. Issuance of licenses -- Common carrier licenses -- Contents -- Valid for one year -- Revocation -- Distribution requirements.
(1) Cigarette licenses may be issued only to a person owning or operating the place or cigarette vending machine from which the cigarette sales are made.
(2) (a) A license is required for each separate place of business.
(b) A licensee shall notify the commission within 30 days in the event that it changes the location of the business.

(3) Applications for a license under this chapter shall be submitted on a form authorized by the commission. Each application shall state: (a) the name and address of the applicant;
(b) the address of each place of business where the applicant's business will be conducted within this state; and
(c) any other information the commission may require relevant to license qualification.

(4) A common carrier is not required to obtain more than one license for sales on conveyances operated by that carrier within the state. All conveyances owned by a common carrier are considered as one place of business for the purpose of this chapter.
(5) No license may be granted, maintained, or renewed: (a) if any combination of people owning directly or indirectly, in the aggregate, more than 10% of the ownership interests in the applicant: (i) has been convicted of knowingly: (A) selling stolen or counterfeit cigarettes;
(B) receiving stolen or counterfeit cigarettes; or
(C) being involved in the smuggling or counterfeiting of cigarettes;

(ii) is a cigarette manufacturer or importer that is not a: (A) participating manufacturer as defined in subsection II(jj) of the "Master Settlement Agreement"; or
(B) in full compliance with the provisions of this chapter dealing with nonparticipating manufacturers;

(iii) has imported, or caused to be imported, into the United States any cigarette in violation of 19 U.S.C. Sec. 1681a; or
(iv) has imported, or caused to be imported into the United States, or manufactured for sale or distribution in the United States any cigarette that does not fully comply with the Federal Cigarette Labeling and Advertising Act, 15 U.S.C. Sec. 1331, et. seq.; and

(b) until the applicant: (i) has paid any delinquent cigarette taxes; and
(ii) has served the period of suspension resulting from any prior revoked license.

(6) Each license shall be numbered, show the residence and place of business of the licensee, and is nontransferable.
(7) (a) Each license is in effect for [three years] one year from the date of issuance, unless the license is earlier revoked by the commission.
(b) The license expires on the expiration date shown on the license, unless the licensee renews it in accordance with commission rules.
(c) The commission shall by rule establish procedures for the renewal and reinstatement of licenses.
(d) For any license issued before January 1, 2027, during the 2027 calendar year, the commission shall re-issue the license as a one-year license in the same calendar month the license was originally set to expire and charge the associated license fee.

(8) (a) In addition to any civil or criminal penalty provided by law, the commission shall, after providing notice and a hearing, revoke the license of any person: (i) found to have violated this title; or
(ii) who no longer qualifies for licensure under Subsection (5).

(b) In the case of a revocation under Subsection (8)(a)(i), a license may not be issued to that person within a period of two years after the violation.

(9) A licensee may not barter, sell, exchange, or offer for sale: (a) cigarettes in an individual package or container that contains less than 20 cigarettes; or
(b) roll-your-own cigarettes in an individual package or container that contains less than 0.6 ounces of tobacco.

(10) (a) The commission shall maintain a list that includes the identity of all people licensed under this section.
(b) The list shall: (i) include the type of license possessed; and
(ii) be updated by the commission at least once per quarter.

Section 5. Section 59-14-203 is amended to read:
59-14-203 Effective 01/01/27. Failure to obtain a license -- Penalty.
(1) Any person engaging in the business of manufacturing, importing, distributing, or selling or offering to sell cigarettes without holding a valid license that is currently not suspended or revoked is guilty of a class B misdemeanor for each offense.
(2) A person who violates Subsection (1) is subject to an administrative fine of $1,000 to be collected by the commission.

Section 6. Section 59-14-301 is amended to read:
59-14-301 Effective 01/01/27. Registration and licensing -- Fee -- Bond exceptions.
(1) All manufacturers and distributors of all tobacco products, as defined in Section 59-14-102, who are responsible for the collection of tax on tobacco products under this chapter, and all retailers of all tobacco products: (a) shall register with the commission;
(b) shall be licensed by the commission under Part 2, Cigarettes; and
(c) are subject to the requirements, procedures, and penalties described in Part 2, Cigarettes.

(2) (a) Subject to Subsection (2)(b), the commission shall charge $250 for issuing or renewing a license under this section.
(b) A fee may not be charged for registration and licensing of manufacturers, jobbers, distributors, or retailers of tobacco products in addition to the cigarette license if such a license is required.
(c) The commission shall deposit 88% of any fee received under this section to the fund described in Section 53-1-123.
(d) The term of a license issued under this section is one year.
(e) For any license issued before January 1, 2027, during the 2027 calendar year, the commission shall re-issue the license as a one-year license in the same calendar month the license was originally set to expire and charge the associated license fee.

(3) (a) The commission shall require any manufacturer, wholesaler, retailer, or any other person subject to this section, and who is responsible for the collection of tax on tobacco products under this chapter, to post a bond as a prerequisite to registering.
(b) The bond shall be in a form and an amount determined by the commission.
(c) If the bond is required under Section 59-14-201, the bond may be a combination, the minimum amount of which shall be $1,000.

Section 7. Section 59-14-803 is amended to read:
59-14-803 Effective 01/01/27. License to sell electronic cigarette product or nicotine product.
(1) A person may not sell, offer to sell, or distribute an electronic cigarette product or a nicotine product in this state without first: (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
(b) complying with any bonding requirement described in Subsection (5).

(2) (a) 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.
(b) Subject to Subsection (2)(a), the commission shall charge $250 for issuing or renewing a license under this section.
(c) The commission shall deposit 88% of any fee received under this section to the fund described in Section 53-1-123.

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

(4) (a) A license described in Subsection (3) is: [(a)] (i) valid only at one fixed business address;
[(b)] (ii) valid for [three years] one year;
[(c)] (iii) valid only for a physical location; and
[(d)] (iv) renewable if a licensee meets the criteria for licensing described in Subsection (3).

(b) For any license issued before January 1, 2027, during the 2027 calendar year, the commission shall re-issue the license as a one-year license in the same calendar month the license was originally set to expire and charge the associated license fee.

(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.
(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.
(c) Subject to Subsection (5)(d), the commission shall determine the form and amount of the bond.
(d) The minimum amount of the bond shall be: (i) except as provided in Subsection (5)(d)(ii) or (iii), $500;
(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
(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) A person who violates Subsection (1) is subject to an administrative fine of $1,000 to be collected by the commission.
[(8) The commission may not charge a fee for a license under this section.]

Section 8. Section 59-14-810 is amended to read:
59-14-810 Effective 05/06/26. Electronic cigarette product registry.
(1) Beginning on August 1, 2024, every manufacturer of an electronic cigarette product that is sold in this state, whether directly or through a distributor, wholesaler, retailer, or similar intermediary or intermediaries, shall certify under penalty of perjury on a form and in the manner prescribed by the commission, that: (a) the manufacturer agrees to comply with this section; and
(b) the electronic cigarette product is a premarket authorized or pending electronic cigarette product as defined in Section 76-9-1101 and will not be illegal to be sold in the state as of January 1, 2025.

(2) When submitting the certification a manufacturer shall submit a form that separately lists each electronic cigarette product that is sold in this state.
(3) (a) Each certification form shall include: (i) the name of the electronic cigarette product, nicotine content level by percentage, and any flavors contained in the product;
(ii) (A) a copy of the order granting a premarket tobacco product application of the electronic cigarette product by the United States Food and Drug Administration under 21 U.S.C. Sec. 387j(c)(1)(A)(i); or
(B) evidence that the premarket tobacco product application for the electronic cigarette product or nicotine product was submitted to the United States Food and Drug Administration before September 9, 2020, and a final authorization or order has not yet taken effect;

(iii) a nonrefundable $1,000 fee for an electronic cigarette product that is being added to the registry in the first instance; and
(iv) information described in Subsection (10) if applicable.

(b) The commission shall make the materials submitted under Subsection (3)(a) available to the Department of Health and Human Services for review and approval.
(c) A manufacturer required to submit a certification form under this section shall notify the commission and the Department of Health and Human Services in a manner prescribed by the commission within 30 days of any material change making the certification form no longer accurate, including: (i) the issuance or denial of a marketing authorization or other order by the United States Food and Drug Administration under 21 U.S.C. Sec. 387j; or
(ii) any other order or action by the United States Food and Drug Administration or any court that affects the ability of the electronic cigarette product to be introduced or delivered into interstate commerce for commercial distribution in the United States.

(d) On or before January 31 of each year and in a manner prescribed by the commission, a manufacturer shall: (i) recertify that the information contained in the certification is correct and accurate;
(ii) correct or amend information if necessary; and
(iii) pay a $250 nonrefundable fee for each electronic cigarette product on the registry that is manufactured by the manufacturer.

(e) A manufacturer may amend a certification, including to add additional electronic cigarette products to the registry, if all requirements of this section are met.
(f) The commission shall: (i) provide an electronic notification to a manufacturer that has not submitted a recertification under Subsection (3)(d); and
(ii) remove a manufacturer or an electronic cigarette product that is not recertified from the registry by March 15.

(4) (a) The Department of Health and Human Services shall review materials described in Subsection (3)(a) and notify the commission regarding whether an electronic cigarette product should be included in the registry.
(b) On or before October 1, 2024, the commission shall make publicly available on the commission's website a registry that lists each electronic cigarette product manufacturer and each electronic cigarette product for which certification forms have been approved by the Department of Health and Human Services.
(c) An electronic cigarette product may not be listed on the registry unless the Department of Health and Human Services determines the requirements of Subsection (3)(a) are met.

(5) (a) If the Department of Health and Human Services obtains information that an electronic cigarette product should not be listed in the registry, the Department of Health and Human Services shall provide the manufacturer notice and an opportunity to cure deficiencies before notifying the commission to remove the manufacturer or products from the registry.
(b) Except as provided in Subsection (5)(c), the Department of Health and Human Services shall comply with Title 63G, Chapter 4, Administrative Procedures Act, before notifying the commission to remove an electronic cigarette product or manufacturer from the registry.
(c) Subsection (5)(b) does not apply to a manufacturer failing: (i) to decertify an electronic cigarette product;
(ii) to provide fees and documentation described in Subsection (3)(a) or (3)(d); or
(iii) to comply with Subsection (10).

(6) (a) If a product is removed from the registry, each retailer, distributor, and wholesaler shall have 30 days from the day on which the product is removed from the registry to remove the product from any inventory and return the product to the manufacturer for disposal.
(b) After the period described in Subsection (6)(a), any electronic cigarette product of a manufacturer identified in the notice of removal are contraband and are subject to penalties under Subsection (8)[and seizure, forfeiture, and destruction under Section 26A-1-131].

(7) (a) Beginning on January 1, 2025, a person may not sell or offer for retail sale an electronic cigarette product in this state that is not included in the registry.
(b) A manufacturer may not sell, either directly or through a distributor, wholesaler, retailer, or similar intermediary or intermediaries, an electronic cigarette product in this state that is not included in the registry.

(8) (a) A wholesaler, distributor, or retailer who sells or offers for retail sale an electronic cigarette product in this state that is not included in the registry shall be subject to a civil penalty assessed by the tax commission of: (i) $1,000 for each unit of product offered for sale in violation of this section; and
(ii) $100 per day until the offending product is removed from the market or until the offending product is properly listed on the registry.

(b) The commission shall suspend the person's license issued under [Section] Sections 59-14-201, 59-14-301, and 59-14-803 for a violation of Subsection (8)(a) as follows: (i) for a second violation within a 12-month period, at least 14 days;
(ii) for a third violation within a 12-month period, at least 60 days; or
(iii) for a fourth violation within a 12-month period, at least one year.

(c) A manufacturer whose electronic cigarette products are not listed in the registry and are sold in this state, whether directly or through a distributor, wholesaler, retailer, or similar intermediary or intermediaries, is subject to a civil penalty assessed by the tax commission of: (i) $1,000 for each unit of product offered for retail sale in violation of this section; and
(ii) $100 per day until the offending product is removed from the market or until the offending product is properly listed on the registry.

(d) A manufacturer that falsely represents any information required by a certification form described in this section shall be guilty of a class C misdemeanor for each false representation.
(e) A repeated violation of this section shall constitute a deceptive act or practice as provided in Sections 13-11-4 and 13-11a-3 and shall be subject to any remedies or penalties available for a violation of those sections.

(9) (a) To assist in ensuring compliance and enforcement of this section and Section 26A-1-131, the commission shall disclose to the following entities, upon request, any information obtained under this section: (i) the Department of Health and Human Services;
(ii) a local health department; or
(iii) the attorney general.

(b) The commission and attorney general shall share with each other information received under this section, or corresponding laws of other states.

(10) (a) [(i)] The commission may not list a nonresident manufacturer of an electronic cigarette product in the registry unless: [(A)] (i) the nonresident manufacturer has registered to do business in the state as a foreign corporation or business entity; or
[(B)] (ii) the nonresident manufacturer appoints and maintains without interruption the services of an agent in this state to receive any service of process on behalf of the manufacturer.

(b) The nonresident manufacturer shall provide the name, address, and telephone number of the agent to the commission.
(c) (i) A nonresident manufacturer shall provide notice to the commission 30 days before the termination of the authority of an agent and shall further provide proof to the satisfaction of the commission of the appointment of a new agent no less than five calendar days prior to the termination of an existing agent appointment.
(ii) In the event an agent terminates an agency appointment, the manufacturer shall notify the commission of the termination within five calendar days and shall include proof to the satisfaction of the commission of the appointment of a new agent.

(11) Before May 31 of each year, the commission and the Department of Health and Human Services shall provide a report to the Revenue and Taxation Interim Committee and the Health and Human Services Interim Committee regarding: (a) the status of the registry;
(b) manufacturers and products included in the registry;
(c) revenue and expenditures related to administration of this section; and
(d) enforcement activities undertaken under this section and Section 26A-1-131.

(12) All fees and penalties collected under this section shall be used for administration and enforcement of this section and Section 26A-1-131.
(13) The commission, in consultation with the Department of Health and Human Services, may make rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to implement this section.

Section 9. Section 76-9-1116 is amended to read:
76-9-1116 Effective 05/06/26. Unlawful sale of a tobacco product, electronic cigarette product, or nicotine product.
(1) (a) As used in this section: (i) "Compensatory service" means service or unpaid work performed by an employee, in lieu of the payment of a fine or imprisonment.
(ii) "Employee" means an employee or an owner of a tobacco retailer.

(b) Terms defined in Sections 76-1-101.5 and 76-9-1101 apply to this section.

(2) An actor commits unlawful sale of a tobacco product, electronic cigarette product, or nicotine product if the actor: (a) is an employee; and
(b) intentionally or knowingly sells or gives a tobacco product, an electronic cigarette product, or a nicotine product in the course of business to an individual younger than 21 years old.

(3) A violation of Subsection (2) is[:] a class A misdemeanor. [(a) on a first violation:] [(i) an infraction; and]
[(ii) subject to:] [(A) a fine not exceeding $1,000; or]
[(B) compensatory service; or]

[(b) on a subsequent violation:] [(i) a class C misdemeanor; and]
[(ii) subject to:] [(A) a fine not exceeding $2,000; or]
[(B) compensatory service.]

Section 10. Effective Date.
(1) Except as provided in Subsection (2), this bill takes effect January 1, 2027.
(2) The actions affecting the following sections take effect on May 6, 2026: (a) Section 26A-1-131 Effective 05/06/26;
(b) Section 59-14-810 Effective 05/06/26; and
(c) Section 76-9-1116 Effective 05/06/26.

3-11-26 10:20 AM