UtahH.B. 3852026 General SessionHouseWALLET

Specialized Product Sales Amendments

Sponsored By: Jennifer Dailey-Provost (Democratic)

Signed by Governor

Department of Agriculture and FoodHealth and Human ServicesCrimesLaw Enforcement and Criminal JusticeState Tax CommissionTobacco and Other Nicotine ProductsAgriculture & FoodElectronic Cigarettes

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 1 benefits, 6 costs, 0 mixed.

Drug charges trigger retailer license loss

The Utah State Tax Commission must revoke covered tobacco or nicotine business licenses after receiving notice of a qualifying drug charge. The charge must involve possession with intent to distribute, distribution, or sale of controlled substances. Revocation is triggered by notice of the charge, not a conviction. License holders also agree not to store, sell, or attempt to sell illegally obtained controlled substances.

Product retailers pay annual license fees

Utah retailers must get a one-year license before selling covered tobacco, nicotine, electronic cigarette, cannabinoid, kratom, or specified psychoactive products. Annual fees are $2,500 for retail tobacco specialty businesses and $600 for retailers selling specified cannabinoid, kratom, or psychoactive products. General tobacco retailers outside the $600 category pay $300. Applicants must show proof of all other required licenses, registrations, and permits. Operating without required current licenses carries a $50,000 civil fine.

Retailer owners face stricter license screening

Specialized product retailer applicants must disclose names and addresses of covered owners and people who control the business. Publicly traded companies must report individuals with at least a 10% financial or voting interest. Privately held companies must report individuals with any financial or voting interest. The state must deny a license if a covered person has a felony conviction within the preceding 10 years. Other disqualifiers are nicotine-product crime convictions and misdemeanor or felony drug-distribution convictions after December 3, 2018.

Retailers must list products for inspection

Licensed specialized product retailers must submit product lists and give the state access to ingredient lists. Adding a product requires an updated list and at least seven days’ notice before sale; unlisted products cannot be sold. Retailers must supply requested products for testing, and the state can remove products whose possession or sale violates state law. Violations carry a $1,000 fine per product. Repeat violations bring escalating discipline: a public reprimand, suspensions of 30, 60, or 90 days, and license revocation for a fifth violation.

Tobacco retailers face underage sales penalties

Tobacco retailer employees and owners face penalties for criminally negligent sales or gifts of tobacco, electronic cigarette, or nicotine products to anyone under 21. The conduct must occur in the course of business. A first violation is an infraction carrying up to $1,000 or compensatory service; later violations are class C misdemeanors carrying up to $2,000 or service. Beginning May 6, 2026, peace officers can ask someone under 21 to attempt a retail purchase to investigate underage sales violations. An officer must be on-site to direct, supervise, and monitor the attempt; young people are not generally required to participate.

Retailer fees fund prevention and testing

Specialized product retailer license fees go into the Qualified Patient Enterprise Fund. The state must use 10% of this money for tobacco and nicotine prevention. The remaining 90% goes to the Utah Department of Agriculture and Food to improve laboratory testing and enforce product rules. Interest earned by the fund stays in the fund.

Nicotine sellers face broader advertising limits

Utah extends existing tobacco advertising display restrictions to electronic cigarette and nicotine products. The limits cover billboards, buses, streetcars, placards, and other display locations. Violations remain class B misdemeanors. Dealers can still post a sign on the front of their business. Advertising also remains allowed in newspapers, magazines, and periodicals printed or circulating in Utah.

Sponsors & Cosponsors

Sponsor

Jennifer Dailey-Provost
Democratic • House

Cosponsors

Michael K. McKell
Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 194 • No: 2

Senate vote • 3/6/2026

Senate/ substituted

Yes: 0 • No: 0

House vote • 3/6/2026

House/ concurs with Senate amendment

Yes: 69 • No: 1

Senate vote • 3/6/2026

Senate/ passed 2nd & 3rd readings/ suspension

Yes: 25 • No: 0

Senate vote • 2/27/2026

Senate Comm - Favorable Recommendation

Yes: 6 • No: 0

House vote • 2/20/2026

House/ substituted

Yes: 0 • No: 0

House vote • 2/20/2026

House/ passed 3rd reading

Yes: 66 • No: 1

House vote • 2/12/2026

House Comm - Substitute Recommendation

Yes: 14 • No: 0