59-14-807. Electronic Cigarette Substance and Nicotine Product Proceeds Restricted Account.
(1) There is created within the General Fund a restricted account known as the "Electronic Cigarette Substance and Nicotine Product Proceeds Restricted Account."
(2) The Electronic Cigarette Substance and Nicotine Product Proceeds Restricted Account consists of: revenue collected from the tax imposed by Section; 59-14-804 fees and penalties collected under Section; 59-14-810 all money received by the attorney general or the Department of Commerce as a result of any judgment, settlement, or compromise of claims pertaining to alleged violations of law related to the manufacture, marketing, distribution, or sale of electronic cigarette products, as defined in Section: 76-9-1101 if the total amount of the judgment, settlement, or compromise received by the state exceeds $1,000,000; and after reimbursement to the attorney general and the Department of Commerce for expenses related to the matters described in this Subsection; and (2)(c) amounts appropriated by the Legislature.
(3) Subject to Subsectionsand, for each fiscal year and subject to appropriation by the Legislature, the Division of Finance shall distribute from the Electronic Cigarette Substance and Nicotine Product Proceeds Restricted Account: (3)(b) (c) $2,000,000 to the Department of Health and Human Services for enforcement services aimed at disrupting organizations and networks that provide tobacco products, electronic cigarette products, nicotine products, or other illegal controlled substances to minors, which the Department of Health and Human Services shall allocate to the local health departments using the formula created in accordance with Section; 26A-1-116 $1,180,000 to the Department of Public Safety for law enforcement officers aimed at disrupting organizations and networks that provide tobacco products, electronic cigarette products, nicotine products, and other illegal controlled substances to minors; $1,000,000 to the Department of Health and Human Services for enforcement services aimed at disrupting organizations and networks that provide tobacco products, electronic cigarette products, nicotine products, and other illegal controlled substances to minors; $3,000,000 to the Department of Health and Human Services for community partner prevention programs, which the Department of Health and Human Services shall allocate to the local health departments using the formula created in accordance with Section; 26A-1-116 $1,000,000 to the Department of Health and Human Services for statewide cessation programs and prevention education; $2,000,000 to the Department of Health and Human Services for alcohol, tobacco, and other drug prevention, reduction, cessation, and control programs that promote unified messages and make use of media outlets, including radio, newspaper, billboards, and television; $759,700 to the Department of Health and Human Services for the Office of Substance Use and Mental Health to provide substance use treatment and prevention services, including Medicaid matching funds for substance use treatment services; $5,084,200 to the State Board of Education for school-based prevention programs; and funds to the Department of Health and Human Services for a recovery ready workplace certification program, if established in accordance with Section. 26B-7-127 If the amount in the Electronic Cigarette Substance and Nicotine Product Proceeds Restricted Account is insufficient to cover the distributions described in Subsection, the Division of Finance shall make the distributions under Subsection: (3)(a) (3)(a) sequentially in the order of priority the distributions are listed under Subsection; (3)(a) in full or, if insufficient funds are available to satisfy the next distribution in the sequence, in part; and until the available funds in the Electronic Cigarette Substance and Nicotine Product Proceeds Restricted Account are exhausted. For each fiscal year and subject to appropriation by the Legislature, the Division of Finance shall distribute from the funds deposited under Sectioninto the Electronic Cigarette Substance and Nicotine Product Proceeds Restricted Account: 59-14-810 to the commission, in an amount equal to the amount necessary to create and maintain the registry described in Section; 59-14-810 to the Department of Health and Human Services, in an amount necessary for completing duties described in Section; and 59-14-810 to the Department of Health and Human Services, the remainder to be divided among the local health departments for inspection and enforcement described in Sectionsand. 26A-1-131 59-14-810
(4) The local health departments shall use the money received in accordance with Subsectionfor enforcing: (3)(a) the regulation provisions described in Section; 26B-7-505 the labeling requirement described in Section; and 26B-7-505 the penalty provisions described in Section. 26B-7-518 The Department of Health and Human Services shall use the money received in accordance with Subsectionfor the Youth Electronic Cigarette, Marijuana, and Other Drug Prevention Program created in Section. (3)(a)(v) 26B-1-428 The local health departments shall use the money received in accordance with Subsectionto issue grants under the Electronic Cigarette, Marijuana, and Other Drug Prevention Grant Program created in Section. (3)(a)(iv) 26A-1-129 The State Board of Education shall use the money received in accordance with Subsectionto distribute to local education agencies to pay for: (3)(a)(vii) stipends for positive behaviors specialists as described in Subsection; 53G-10-407(4)(a)(i) the cost of administering the positive behaviors plan as described in Subsection; and 53G-10-407(4)(a)(ii) the cost of implementing an Underage Drinking and Substance Abuse Prevention Program in grade 4 or 5, as described in Subsection; or 53G-10-406(3)(b) a comprehensive prevention plan, as that term is defined in Section. 53F-2-525
(5) The fund shall earn interest. All interest earned on fund money shall be deposited into the fund.
(6) For a fiscal year beginning on or after July 1, 2026, the Division of Finance shall transfer to the General Fund the amount of revenue generated from the taxes imposed under Sectionthat exceeds $15,900,000. 59-14-804
(7) Subject to legislative appropriations, funds remaining in the Electronic Cigarette Substance and Nicotine Product Proceeds Restricted Account after the distribution described in Subsectionmay only be used for: (3) funding commission personnel to enforce compliance with the tax collection requirements of this part; and programs and activities related to the prevention and cessation of electronic cigarette, nicotine products, marijuana, and other drug use.