As used in this article 7, unless the context otherwise requires:
(1) Cigarette, tobacco product, or nicotine product has the same meaning as provided in section 18-13-121 (5).
(2) (a) Distributor means a person who sells or distributes cigarettes, tobacco products, or nicotine products to licensed retailers in this state.
(b) Distributor includes a distributor or distributing subcontractor as those terms are defined in section 39-28.5-101.
(3) Division means the division of liquor enforcement within the department.
(4) Electronic smoking device has the meaning set forth in section 25-14-203 (4.5).
(5) Hearing officer means a person designated by the executive director to conduct hearings held pursuant to section 44-7-105.
(6) Local authority means the governing body of a local government or any authority designated by a municipal or county charter, municipal ordinance, or county resolution to regulate retailers.
(7) Local government means a statutory or home rule municipality, county, or city and county.
(8) Minor means a person under twenty-one years of age.
(9) New retail location means a retail location in the state at which cigarettes, tobacco products, or nicotine products were not sold before July 14, 2020.
(10) Retailer means the owner or operator of a business of any kind at a specific location that sells cigarettes, tobacco products, or nicotine products to a user or consumer.
(11) School has the meaning set forth in section 44-3-103 (50).
(12) State license means a license issued by the division in accordance with section 44-7-104.5.
(13) (a) Wholesaler means a person engaged in the wholesale distribution of cigarettes, tobacco products, or nicotine products in this state.
(b) Wholesaler includes a wholesaler and wholesale subcontractor as those terms are defined in section 39-28-101.
Source: L. 2018: Entire article added with relocations, (SB 18-036), ch. 34, p. 373, � 2, effective October 1. L. 2020: Entire section amended, (HB 20-1001), ch. 302, p. 1505, � 6, effective July 14.
Editor's note: This section is similar to former � 24-35-502 as it existed prior to 2018.
44-7-103. Sale of cigarettes, tobacco products, or nicotine products to persons under twenty-one years of age or in vending machines prohibited - warning sign - small quantity sales prohibited - rules. (1) A retailer shall not sell or permit the sale of cigarettes, tobacco products, or nicotine products to a minor; except that it is not a violation if the retailer establishes that the person selling the cigarette, tobacco product, or nicotine product was presented with and reasonably relied upon a valid government-issued photographic identification, as determined by the executive director by rule, that identified the person purchasing the cigarette, tobacco product, or nicotine product as being twenty-one years of age or older. A retailer shall require an individual who seeks to purchase cigarettes, tobacco products, or nicotine products and who appears to be under fifty years of age to present to the retailer a valid government-issued photographic identification at the time of purchase.
(2) A retailer shall not sell or offer to sell any cigarettes, tobacco products, or nicotine products by use of a vending machine or other coin-operated machine; except that cigarettes may be sold at retail through vending machines only in an age-restricted area of a licensed gaming establishment, as defined in section 44-30-103 (18).
(3) Any person who sells or offers to sell cigarettes, tobacco products, or nicotine products shall display a warning sign as specified in this subsection (3). The warning sign must be displayed in a prominent place in the building and on any vending or coin-operated machine at all times, must have a minimum height of three inches and a width of six inches, and must read as follows:
WARNING
IT IS ILLEGAL TO SELL CIGARETTES, TOBACCO PRODUCTS, OR NICOTINE PRODUCTS TO ANY PERSON UNDER TWENTY-ONE YEARS OF AGE. STATE LAW REQUIRES THAT, TO PURCHASE CIGARETTES, TOBACCO PRODUCTS, OR NICOTINE PRODUCTS AT THIS RETAIL LOCATION, A PERSON MUST PRESENT A VALID GOVERNMENT-ISSUED PHOTOGRAPHIC IDENTIFICATION AT THE TIME OF PURCHASE IF THE PERSON APPEARS TO BE UNDER FIFTY YEARS OF AGE.
(4) No retailer shall sell or offer to sell individual cigarettes, or any pack or container of cigarettes containing fewer than twenty cigarettes, or roll-your-own tobacco in any package containing less than 0.60 ounces of tobacco.
(4.5) A retailer shall not permit a person under eighteen years of age to sell or participate in the sale of cigarettes, tobacco products, or nicotine products. This section does not prohibit an employee of a retailer who is eighteen years of age or older but under twenty-one years of age from handling or otherwise having any contact with cigarettes, tobacco products, or nicotine products that are offered for sale at the retailer's business.
(5) Nothing in this section affects federal laws concerning cigarettes, tobacco products, or nicotine products, as they apply to military bases and Indian reservations within the state.
Source: L. 2018: Entire article added with relocations, (SB 18-036), ch. 34, p. 373, � 2, effective October 1. L. 2020: (1), (2), and (3) amended and (4.5) added, (HB 20-1001), ch. 302, p. 1506, � 7, effective July 14.
Editor's note: This section is similar to former � 24-35-503 as it existed prior to 2018.
44-7-104. Enforcement authority - designation of agency - coordination - sharing of information - rules. (1) The division has the power to enforce all state statutes relating to the prohibition of the sale of cigarettes, tobacco products, or nicotine products to minors. The division is designated as the lead state agency for the enforcement of state statutes in compliance with federal laws relating to the prohibition of the sale of cigarettes, tobacco products, or nicotine products to minors.
(2) The division shall coordinate the enforcement of state laws relating to the prohibition of the sale of cigarettes, tobacco products, or nicotine products to minors by multiple state agencies to avoid duplicative inspections of the same retailer by multiple state agencies.
(3) (a) The division shall work with the department of human services and the department of public health and environment to ensure compliance with federal regulations for continued receipt of all federal funds contingent upon compliance with laws related to the prohibition of the sale of cigarettes, tobacco products, or nicotine products to minors.
(b) (I) To the degree that is achievable within the amount of fees collected, each year, the division shall perform, cause to be performed, or coordinate with a local authority in the performance of at least two compliance checks at each retail location at which cigarettes, tobacco products, or nicotine products are sold or at least the minimum number of annual compliance checks required by federal regulations, whichever is greater. The division shall perform a compliance check by engaging a person under twenty-one years of age to enter a retail location to purchase cigarettes, tobacco products, or nicotine products.
(II) If a compliance check of a retail location performed pursuant to subsection (3)(b)(I) of this section reveals a violation of this article 7, the division, or a local authority in coordination with the division pursuant to section 44-7-104.5 (4)(c), shall conduct an additional compliance check of the retail location within three to six months after the compliance check at which the violation was discovered.
(c) In order to pay for the inspections required by subsection (3)(b) of this section, the division shall apply for a grant from the tobacco education, prevention, and cessation program established in part 8 of article 3.5 of title 25.
(4) In order to enforce laws relating to the prohibition of the sale of cigarettes, tobacco products, or nicotine products to minors, the department of revenue shall maintain and publish on the division's public website the business names and addresses of state-licensed retailers that sell cigarettes, tobacco products, or nicotine products and may share the list or information included in the list with any state or local agency responsible for the enforcement of laws relating to the prohibition of the sale of cigarettes, tobacco products, or nicotine products to minors.
(5) (a) To ensure the protection of public health, the executive director shall promulgate rules concerning the division's enforcement of this article 7, including rules:
(I) To set necessary and reasonable fee amounts that will cover the direct and indirect cost of enforcement and administration; except that the fee amount must not exceed four hundred dollars per year. The executive director may by rule increase the maximum fee amount to six hundred dollars if the division determines that statewide compliance with this article 7 falls below ninety percent.
(II) For retailers with more than ten retail locations under the same corporate or business entity, that allow the corporate or business entity to pay a single, large-operator license fee instead of paying a separate fee for each retail location. Notwithstanding subsection (5)(a)(I) of this section, the fee amount must be sufficient to cover the division's direct and indirect costs of enforcing and administering this article 7 in relation to a large operator. Nothing in this subsection (5)(a)(II) prevents the division from enforcing this article 7 on a per-retail location basis.
(III) In accordance with subsections (2) and (3)(b) of this section, regarding the number and manner of compliance checks of retail locations that the division shall perform, cause to be performed, or coordinate with a local authority in the performance of each year. The rules must ensure that any coordination between the division and a local authority on the performance of compliance checks satisfies federal requirements and that local authorities apprise the division in an appropriate form and manner of compliance checks conducted.
(IV) To ensure that complaints received by the division are forwarded to the appropriate local authority and that complaints received by the local authority are forwarded to the division for the timely investigation into and action taken on the complaints. The rules must ensure that local authorities apprise the division of complaints and any action taken on those complaints.
(V) Regarding retailers' obligations to comply with the division's document production requests related to implementation and enforcement of this article 7.
(b) The executive director may promulgate rules authorizing a person to apply for a temporary state license and requiring the payment of a temporary state license fee. If the executive director promulgates such rules, the rules must specify that the temporary state license remains in effect for no more than thirty days and is not renewable.
(c) In promulgating rules pursuant to this subsection (5), the executive director may consult with the department of human services, the department of public health and environment, local governments, and any other state or local agencies the executive director deems appropriate.
(d) On or before July 1, 2021, the executive director shall, in consultation with licensed wholesalers and retailers, promulgate rules regarding the targeted enforcement against the smuggling of cigarettes, tobacco products, or nicotine products.
Source: L. 2018: Entire article added with relocations, (SB 18-036), ch. 34, p. 374, � 2, effective October 1. L. 2020: (3)(b) and (4) amended and (5) added, (HB 20-1001), ch. 302, p. 1507, � 8, effective July 14.
Editor's note: This section is similar to former � 24-35-504 as it existed prior to 2018.