SCS SB 222 -- SALE OF NONCOMPLIANT CIGARETTES

SPONSOR:  Callahan (Sutherland)

COMMITTEE ACTION:  Voted "do pass by consent" by the Committee on
Ways and Means by a vote of 16 to 0.

This substitute clarifies that individuals licensed and required
to affix a tax stamp on cigarette packages and retailers who in
good faith sell cigarettes that do not comply with state law are
not subject to administrative, civil, or criminal seizures;
forfeitures; suspensions; fines; or punishments for noncompliant
cigarettes.  Wholesalers and retailers are not relieved of any
penalty imposed for the sale of cigarettes where a tax stamp has
not been applied.

Wholesalers have 30 days to stamp and sell noncompliant
cigarettes, and retailers have 60 days to purchase from
wholesalers and sell noncompliant cigarettes once the
noncompliance has been declared by the Department of Revenue and
the Attorney General.

FISCAL NOTE:  No impact on state funds in FY 2006, FY 2007, and
FY 2008.

PROPONENTS:  Supporters say that the bill is a tobacco-issue
compromise that allows retailers legal protection and time to
sell noncompliant cigarettes.  Currently, there is no way for
retailers to know which cigarettes are not legal.

Testifying for the bill were Senator Callahan; Missouri Petroleum
Marketers and Convenience Store Association; Ugas; Dirt Cheap
Cigarettes; and LPC, Incorporated.

OPPONENTS:  There was no opposition voiced to the committee.

OTHERS:  Others testifying on the bill say that this is a good
compromise since this is a challenging regulatory area where the
1999 Master Settlement Agreement requires the Department of
Revenue and the Attorney General's Office to diligently enforce
the requirements of the agreement.

Others testifying on the bill were R. J. Reynolds Tobacco
Company; and Office of the Attorney General.

Karla Strobel, Legislative Analyst

Missouri House of Representatives
93rd General Assembly, 1st Regular Session
Last Updated August 25, 2005 at 1:21 pm