1. (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
   2. (b) complying with any bonding requirement described in Subsection (5).
2. (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. (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:

   1. (a) the person's name;
   2. (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. (4) A license described in Subsection (3) is:

   1. (a) valid only at one fixed business address;
   2. (b) valid for three years;
   3. (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)

   1. (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 product, an alternative nicotine product, or a nontherapeutic nicotine product to post a bond.
   2. (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.
   3. (c) Subject to Subsection (5)(d), the commission shall determine the form and amount of the bond.

   4. (d) The minimum amount of the bond shall be:

      1. (i) except as provided in Subsection (5)(d)(ii) or (iii), $500;
      2. (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
      3. (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. (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. (7) It is a class B misdemeanor for a person to violate Subsection (1).
8. (8) The commission may not charge a fee for a license under this section.

Amended by Chapter 308, 2026 General Session