Full Text of HB2926 95th General Assembly
HB2926ham001 95TH GENERAL ASSEMBLY
|
Rep. Angelo Saviano
Filed: 4/17/2007
|
|
09500HB2926ham001 |
|
LRB095 09298 BDD 34209 a |
|
| 1 |
| AMENDMENT TO HOUSE BILL 2926
| 2 |
| AMENDMENT NO. ______. Amend House Bill 2926 by replacing | 3 |
| everything after the enacting clause with the following:
| 4 |
| "Section 1. Short title. This Act may be cited as the | 5 |
| Nonparticipating Cigarette Manufacturer Assessment Act. | 6 |
| Section 5. Required information; assessment imposed; other | 7 |
| provisions. | 8 |
| (a) Before commencing sales of cigarettes in this State, a | 9 |
| nonparticipating manufacturer shall provide to the Department | 10 |
| the information described in subsection (c) and shall pay the | 11 |
| equity assessment as provided in subsections (d) and (e).
| 12 |
| (b) A nonparticipating manufacturer selling cigarettes in | 13 |
| this State on the effective date of this Act shall provide to | 14 |
| the Department the information described in subsection (c) and | 15 |
| pay the equity assessment as provided in subsections (d) and | 16 |
| (e) within 30 days after the effective date of this Act. If a |
|
|
|
09500HB2926ham001 |
- 2 - |
LRB095 09298 BDD 34209 a |
|
| 1 |
| nonparticipating manufacturer is not selling cigarettes in | 2 |
| this State on the effective date of this Act, then, before | 3 |
| selling cigarettes in this State, the nonparticipating | 4 |
| manufacturer shall pay the equity assessment imposed under | 5 |
| subsections (d) and (e) for all cigarettes that are anticipated | 6 |
| to be sold in the current calendar year as described in | 7 |
| subsection (e).
| 8 |
| (c) A nonparticipating manufacturer shall provide to the | 9 |
| Department on a form prescribed by the Department the following | 10 |
| information:
| 11 |
| (1) the complete name, address, and telephone number of | 12 |
| the nonparticipating manufacturer;
| 13 |
| (2) the date that the nonparticipating manufacturer | 14 |
| intends to begin or began selling cigarettes in this State;
| 15 |
| (3) the brand names of the cigarettes the | 16 |
| nonparticipating manufacturer will sell or is selling in | 17 |
| this State;
| 18 |
| (4) a statement of the nonparticipating manufacturer's | 19 |
| intention to comply with its escrow obligation under this | 20 |
| Act, and the obligations in this Act;
| 21 |
| (5) the name, address, and telephone number of the | 22 |
| resident agent of the nonparticipating manufacturer; and
| 23 |
| (6) the name, address, telephone number, and signature | 24 |
| of an officer of the nonparticipating manufacturer | 25 |
| attesting to all of the information described in this | 26 |
| subsection.
|
|
|
|
09500HB2926ham001 |
- 3 - |
LRB095 09298 BDD 34209 a |
|
| 1 |
| (d) An equity assessment in the amount of 17.5 mills per | 2 |
| cigarette is imposed upon all cigarettes sold by a | 3 |
| nonparticipating manufacturer in this State. The purpose of the | 4 |
| equity assessment is to fund enforcement and administration | 5 |
| this Act. The equity assessment is in addition to all other | 6 |
| fees, assessments, and taxes levied by law. The equity | 7 |
| assessment shall be collected by the Department from each | 8 |
| nonparticipating manufacturer selling cigarettes in this | 9 |
| State. The equity assessment shall be collected and reconciled | 10 |
| by April 15 of each year for cigarettes sold in the previous | 11 |
| calendar year. The Department shall credit a nonparticipating | 12 |
| manufacturer with any prepayment made by the nonparticipating | 13 |
| manufacturer pursuant to subsection (e) for that calendar year. | 14 |
|
(e) Except as provided in subsection (b), a | 15 |
| nonparticipating manufacturer selling cigarettes in this State | 16 |
| shall prepay the equity assessment imposed in subsection (d) | 17 |
| not later than March 1 for all cigarettes that are anticipated | 18 |
| to be sold in the current calendar year. The prepayment amount | 19 |
| shall be determined by multiplying 17.5 mills times the number | 20 |
| of cigarettes that the Department reasonably determines that | 21 |
| the nonparticipating manufacturer will sell in this State in | 22 |
| the current calendar year or $10,000, whichever is more. The | 23 |
| Department may require a nonparticipating manufacturer to | 24 |
| provide any information reasonably necessary to determine the | 25 |
| equity assessment prepayment amount. Not later than February 15 | 26 |
| of each year, the Department shall notify the nonparticipating |
|
|
|
09500HB2926ham001 |
- 4 - |
LRB095 09298 BDD 34209 a |
|
| 1 |
| manufacturer of the amount of the prepayment due for the | 2 |
| current year. The Department shall increase the equity | 3 |
| assessment prepayment amount during the year if the increase is | 4 |
| justified by the nonparticipating manufacturer's actual sales | 5 |
| of cigarettes.
| 6 |
| (f) A stamping agent shall not affix to any package of | 7 |
| cigarettes or shipping container of roll-your-own tobacco of a | 8 |
| nonparticipating manufacturer the stamp required under this | 9 |
| Act unless the nonparticipating manufacturer is listed on the | 10 |
| Department website as provided in subsection (i) or after | 11 |
| receiving notice that the nonparticipating manufacturer has | 12 |
| not prepaid or paid in full the equity assessment imposed under | 13 |
| this Act. A stamping agent that violates this subsection is | 14 |
| subject to the penalties described in subsection (e). If a | 15 |
| stamping agent intentionally and knowingly violates this | 16 |
| subsection, the Department may seize or confiscate any | 17 |
| cigarettes in the stamping agent's possession that were stamped | 18 |
| in violation of this subsection. | 19 |
| (g) A nonparticipating manufacturer that does not provide | 20 |
| the information required under subsection (c) or pay the equity | 21 |
| assessment required by this Act shall not make a sale of | 22 |
| cigarettes in this State to any person for sale, distribution, | 23 |
| or consumption in this State.
| 24 |
| (h) A person shall not purchase, acquire, possess, or sell | 25 |
| cigarettes acquired from or manufactured by a nonparticipating | 26 |
| manufacturer that has not provided the information required |
|
|
|
09500HB2926ham001 |
- 5 - |
LRB095 09298 BDD 34209 a |
|
| 1 |
| under subsection (c) or made the payment of the equity | 2 |
| assessment required by this Act.
| 3 |
| (i) The Department shall maintain and regularly update a | 4 |
| list of nonparticipating manufacturers that have complied with | 5 |
| the requirements of this Act. The Department shall publish the | 6 |
| list on its website and provide a copy of the list to a person | 7 |
| upon request.
| 8 |
| (j) Ninety days after the Department posts on its website | 9 |
| and provides wholesalers and unclassified acquirers notice | 10 |
| that a nonparticipating manufacturer is in violation of | 11 |
| subsection (a) or (b), the Department may seize or confiscate | 12 |
| from any person any cigarettes in that person's possession that | 13 |
| were acquired from or manufactured by that nonparticipating | 14 |
| manufacturer.
| 15 |
| (k) The Department may impose on any person a civil fine | 16 |
| not to exceed $1,000 for each violation of this Act. The civil | 17 |
| fine is in addition to all other fines or penalties imposed by | 18 |
| law.
| 19 |
| (l) A nonparticipating manufacturer shall appoint and | 20 |
| continually engage a resident agent for service of process. | 21 |
| That service shall constitute legal and valid service of | 22 |
| process on the nonparticipating manufacturer.
| 23 |
| (m) For purposes of this Act, a nonparticipating | 24 |
| manufacturer that intends to sell or is selling a brand of | 25 |
| cigarettes in or into this State is presumed to be the same | 26 |
| manufacturer that previously sold that same brand in or into |
|
|
|
09500HB2926ham001 |
- 6 - |
LRB095 09298 BDD 34209 a |
|
| 1 |
| the State, unless the nonparticipating manufacturer can prove | 2 |
| that the 2 manufacturers are not affiliated. A nonparticipating | 3 |
| manufacturer shall not be authorized to sell in or into this | 4 |
| State a cigarette brand that was previously sold in or into | 5 |
| this State by another nonparticipating manufacturer if that | 6 |
| other nonparticipating manufacturer did not escrow the entire | 7 |
| amount due or pay the equity assessment due under this Act.
| 8 |
| (n) The Department shall conduct an audit or review of | 9 |
| nonparticipating manufacturers to ensure compliance with this | 10 |
| Act.
| 11 |
| (o) As used in this Act:
| 12 |
| "Cigarette" means any product that contains nicotine, is | 13 |
| intended to be burned or hearted under ordinary conditions of | 14 |
| use, and consists of or contains: | 15 |
| (1) any roll of tobacco wrapped in paper or any | 16 |
| substance not containing tobacco; | 17 |
| (2) tobacco, in any form, that is functional in the | 18 |
| product that, because of its appearance, the type of | 19 |
| tobacco used in the filler, or its packaging and labeling, | 20 |
| is likely to be offered to or purchased by consumers as a | 21 |
| "cigarette"; or | 22 |
| (3) any roll or tobacco wrapped in any substance | 23 |
| containing tobacco that, because of its appearance, the | 24 |
| type of tobacco used in the filler, or its packaging and | 25 |
| labeling, is likely to be offered to or purchased by | 26 |
| consumers as a "cigarette". |
|
|
|
09500HB2926ham001 |
- 7 - |
LRB095 09298 BDD 34209 a |
|
| 1 |
| The term "cigarette" also includes roll-your-own tobacco, | 2 |
| which is any tobacco that, because of its appearance, the type | 3 |
| of tobacco used in the filler, or its packaging and labeling, | 4 |
| is likely to be offered to or purchased by consumers for making | 5 |
| or rolling cigarettes, and 0.09 ounces of roll-your-own tobacco | 6 |
| is equal to one cigarette. | 7 |
| "Department" means the Department of Revenue. | 8 |
| "Nonparticipating manufacturer" means a manufacturer of | 9 |
| cigarettes that is not a participating manufacturer under the | 10 |
| Tobacco Master Settlement Agreement. Nonparticipating | 11 |
| manufacturer also includes the first purchaser of cigarettes | 12 |
| manufactured outside the United States for resale in the United | 13 |
| States.
| 14 |
| Section 99. Effective date. This Act takes effect upon | 15 |
| becoming law.".
|
|