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S1297......................................................by STATE AFFAIRS CIGARETTES - MASTER SETTLEMENT AGREEMENT - Adds to existing law to require cigarette distributors and stamping agents to only stamp and distribute cigarettes of those tobacco product manufacturers that are in compliance with Idaho's Master Settlement Agreement Act; to provide procedures; to provide duties of the Attorney General; and to provide for agreements for exchange of information. 01/17 Senate intro - 1st rdg - to printing 01/18 Rpt prt - to St Aff
|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-sixth Legislature Second Regular Session - 2002IN THE SENATE SENATE BILL NO. 1297 BY STATE AFFAIRS COMMITTEE 1 AN ACT 2 RELATING TO THE IDAHO TOBACCO MASTER SETTLEMENT AGREEMENT ACT; PROVIDING LEG- 3 ISLATIVE INTENT; AND AMENDING CHAPTER 78, TITLE 39, IDAHO CODE, BY THE 4 ADDITION OF A NEW SECTION 39-7804, IDAHO CODE, TO REQUIRE CIGARETTE DIS- 5 TRIBUTORS AND STAMPING AGENTS TO ONLY STAMP AND DISTRIBUTE CIGARETTES OF 6 THOSE TOBACCO PRODUCT MANUFACTURERS THAT ARE IN COMPLIANCE WITH IDAHO'S 7 MASTER SETTLEMENT AGREEMENT ACT, TO PROVIDE PROCEDURES, TO PROVIDE DUTIES 8 OF THE ATTORNEY GENERAL, TO DEFINE A TERM AND TO PROVIDE FOR AGREEMENTS 9 FOR EXCHANGE OF INFORMATION. 10 Be It Enacted by the Legislature of the State of Idaho: 11 SECTION 1. LEGISLATIVE INTENT. The Legislature finds that a number of 12 tobacco product manufacturers are not complying with the provisions of Idaho's 13 Master Settlement Agreement Act. Compliance with that Act is in the interest 14 of the state. Requiring cigarette distributors and stamping agents to only 15 stamp and distribute cigarettes of tobacco product manufacturers that are in 16 compliance with Idaho's Master Settlement Agreement Act will significantly 17 improve compliance under the Act. 18 SECTION 2. That Chapter 78, Title 39, Idaho Code, be, and the same is 19 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 20 ignated as Section 39-7804, Idaho Code, and to read as follows: 21 39-7804. CIGARETTE DISTRIBUTOR AND STAMPING AGENT DUTIES. (a) A cigarette 22 distributor or any other stamping agent may not affix, or cause to be affixed, 23 stamps to individual packages of cigarettes sold or distributed by the ciga- 24 rette distributor or stamping agent in this state if the tobacco product manu- 25 facturer of those cigarettes has: 26 (1) Failed to become a participating manufacturer pursuant to section 27 39-7803(a), Idaho Code; and 28 (2) Failed to create and timely fund a qualified escrow fund pursuant to 29 section 39-7803(b), Idaho Code. 30 (b) The attorney general shall maintain a list, available for public 31 inspection, for tobacco product manufacturers that have become a participating 32 manufacturer or have created and timely funded a qualified escrow fund. A cig- 33 arette distributor or stamping agent may rely upon the attorney general's list 34 in affixing or causing to be affixed stamps to individual packages of ciga- 35 rettes of tobacco product manufacturers. A cigarette distributor or stamping 36 agent who only affixes, or causes to be affixed, stamps to cigarettes of those 37 tobacco product manufacturers listed on the attorney general's list, as of the 38 date the stamps were affixed, shall not be found liable under this section 39 even if it is later established that the tobacco product manufacturer failed 40 either to become a participating manufacturer or to create and timely fund a 41 qualified escrow fund, as required by section 39-7803(a) and (b), Idaho Code. 42 (c) The attorney general may bring a civil action on behalf of the state 2 1 against any cigarette distributor or stamping agent who violates this section. 2 Any cigarette distributor or stamping agent who violates this section shall be 3 subject to the same liability provisions that a tobacco products manufacturer 4 faces for violating this chapter pursuant to section 39-7803(b)(3), Idaho 5 Code. In addition, in any action brought under this section, the court shall 6 award the attorney general, if he is the prevailing party, reasonable costs, 7 expenses and attorney's fees in bringing his action. 8 (d) For purposes of this section, "cigarette distributor" shall mean 9 every person who is a wholesaler, as that term is defined in section 10 63-2502(a), Idaho Code, and has obtained a permit from the state tax commis- 11 sion, pursuant to section 63-2503, Idaho Code. "Stamping agent" shall mean 12 every person who affixes or causes to be affixed stamps to individual packages 13 of cigarettes. 14 (e) The state tax commission and the attorney general may enter into a 15 written agreement authorizing the exchange of information reasonably necessary 16 to the enforcement and administration of this chapter.
STATEMENT OF PURPOSE RS 11507C2 This proposed legislation amends Idaho’s Tobacco Master Settlement Agreement Act (“the Act”) . Under the Idaho’s Master Settlement Agreement with the tobacco industry, Idaho must diligently enforce the Act. A number of tobacco product manufacturers are not complying with the provisions of the Act. All of the non-compliant manufacturers are located in foreign countries. Effecting compliance is in some cases quite difficult because of their location. Requiring cigarette distributors to only stamp and distribute cigarettes of tobacco product manufacturers that are in compliance with the Act will significantly improve compliance under the Act and assist Idaho with its duty of diligent enforcement of the Act. FISCAL IMPACT There is no fiscal impact to the general fund. In fact, enactment of this bill should save the State money in its enforcement duties under the Act. CONTACTS Name: Steve Tobiason, Phone:334-4151 Name: Brett Delange, Phone: 334-2424 Agency: Office of The Attorney General Statement of Purpose/Fiscal Impact S 1297