Utah Code Ann. § 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:
1. (a) revenue collected from the tax imposed by Section 59-14-804;
2. (b) fees and penalties collected under Section 59-14-810;
3. (c) 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:
  1. (i) if the total amount of the judgment, settlement, or compromise received by the state exceeds $1,000,000; and
  2. (ii) after reimbursement to the attorney general and the Department of Commerce for expenses related to the matters described in this Subsection (2)(c); and
4. (d) amounts appropriated by the Legislature.
(3)
1. (a) Subject to Subsections (3)(b) and (c), 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:
  1. (i) $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;
  2. (ii) $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;
  3. (iii) $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;
  4. (iv) $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;
  5. (v) $1,000,000 to the Department of Health and Human Services for statewide cessation programs and prevention education;
  6. (vi) $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;
  7. (vii) $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;
  8. (viii) $5,084,200 to the State Board of Education for school-based prevention programs; and
  9. (ix) 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.
2. (b) If the amount in the Electronic Cigarette Substance and Nicotine Product Proceeds Restricted Account is insufficient to cover the distributions described in Subsection (3)(a), the Division of Finance shall make the distributions under Subsection (3)(a):
  1. (i) sequentially in the order of priority the distributions are listed under Subsection (3)(a);
  2. (ii) in full or, if insufficient funds are available to satisfy the next distribution in the sequence, in part; and
  3. (iii) until the available funds in the Electronic Cigarette Substance and Nicotine Product Proceeds Restricted Account are exhausted.
3. (c) For each fiscal year and subject to appropriation by the Legislature, the Division of Finance shall distribute from the funds deposited under Section 59-14-810 into the Electronic Cigarette Substance and Nicotine Product Proceeds Restricted Account:
  1. (i) to the commission, in an amount equal to the amount necessary to create and maintain the registry described in Section 59-14-810;
  2. (ii) to the Department of Health and Human Services, in an amount necessary for completing duties described in Section 59-14-810; and
  3. (iii) to the Department of Health and Human Services, the remainder to be divided among the local health departments for inspection and enforcement described in Sections 26A-1-131 and 59-14-810.
(4)
1. (a) The local health departments shall use the money received in accordance with Subsection (3)(a) for enforcing:
  1. (i) the regulation provisions described in Section 26B-7-505;
  2. (ii) the labeling requirement described in Section 26B-7-505; and
  3. (iii) the penalty provisions described in Section 26B-7-518.
2. (b) The Department of Health and Human Services shall use the money received in accordance with Subsection (3)(a)(v) for the Youth Electronic Cigarette, Marijuana, and Other Drug Prevention Program created in Section 26B-1-428.
3. (c) The local health departments shall use the money received in accordance with Subsection (3)(a)(iv) to issue grants under the Electronic Cigarette, Marijuana, and Other Drug Prevention Grant Program created in Section 26A-1-129.
4. (d) The State Board of Education shall use the money received in accordance with Subsection (3)(a)(vii) to distribute to local education agencies to pay for:
  1. (i)
    1. (A) stipends for positive behaviors specialists as described in Subsection 53G-10-407(4)(a)(i);
    2. (B) the cost of administering the positive behaviors plan as described in Subsection 53G-10-407(4)(a)(ii); and
    3. (C) the cost of implementing an Underage Drinking and Substance Abuse Prevention Program in grade 4 or 5, as described in Subsection 53G-10-406(3)(b); or
  2. (ii) a comprehensive prevention plan, as that term is defined in Section 53F-2-525.
(5)
1. (a) The fund shall earn interest.
2. (b) 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 Section 59-14-804 that exceeds $15,900,000.
(7) Subject to legislative appropriations, funds remaining in the Electronic Cigarette Substance and Nicotine Product Proceeds Restricted Account after the distribution described in Subsection (3) may only be used for:
1. (a) funding commission personnel to enforce compliance with the tax collection requirements of this part; and
2. (b) programs and activities related to the prevention and cessation of electronic cigarette, nicotine products, marijuana, and other drug use.

Amended by Chapter 416, 2026 General Session