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S1358......................................................by STATE AFFAIRS
CIGARETTES - STAMPING - Adds to existing law relating to the Idaho Tobacco
Master Settlement Agreement Act to impose the duty on cigarette
distributors and stamping agents to distribute and stamp only cigarettes of
tobacco product manufacturers that are in compliance with the Master
Settlement Agreement; and to provide penalties.
01/31 Senate intro - 1st rdg - to printing
02/01 Rpt prt - to St Aff
02/05 Rpt out - rec d/p - to 2nd rdg
02/06 2nd rdg - to 3rd rdg
02/08 3rd rdg - PASSED - 34-0-1
AYES -- Andreason, Boatright, Branch(Bartlett), Brandt, Bunderson,
Burtenshaw, Cameron, Davis, Deide, Dunklin, Frasure, Geddes, Goedde,
Hawkins, Hill, Ingram, Ipsen, Keough, King-Barrutia, Little, Lodge,
Marley, Noh, Richardson, Risch, Sandy, Schroeder, Sims, Sorensen,
Stegner, Stennett, Thorne, Wheeler, Williams
NAYS -- None
Absent and excused -- Darrington
Floor Sponsor - Sandy
Title apvd - to House
02/11 House intro - 1st rdg - to St Aff
03/01 Rpt out - rec d/p - to 2nd rdg
03/04 2nd rdg - to 3rd rdg
03/08 3rd rdg - PASSED - 61-1-8
AYES -- Barraclough, Barrett, Bedke, Bell, Bieter, Black, Block, Boe,
Bolz, Bradford, Bruneel, Callister, Campbell, Collins, Cuddy, Deal,
Denney, Ellis, Ellsworth, Eskridge, Field(13), Field(20), Gagner,
Hadley, Hammond, Harwood, Henbest, Higgins, Hornbeck, Jaquet, Jones,
Kellogg(Duncan), Kendell, Kunz, Lake, Langford, Loertscher, Mader,
Martinez, Meyer, Montgomery, Mortensen, Moyle, Pearce, Pomeroy,
Raybould, Ridinger, Roberts, Robison, Sali, Shepherd, Smith(33),
Smith(23), Smylie, Stevenson, Stone, Tilman, Trail, Wheeler, Wood,
Young
NAYS -- Schaefer
Absent and excused -- Aikele, Clark, Crow, Gould, McKague, Mortensen,
Pischner, Sellman
Floor Sponsor - Kunz
Title apvd - to Senate
03/11 To enrol
03/12 Rpt enrol - Pres signed - Sp signed
03/13 To Governor
03/26 Governor signed
Session Law Chapter 284
Effective: 07/01/02
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature Second Regular Session - 2002
IN THE SENATE
SENATE BILL NO. 1358
BY STATE AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO THE IDAHO TOBACCO MASTER SETTLEMENT AGREEMENT ACT; PROVIDING A
3 STATEMENT OF LEGISLATIVE INTENT; AMENDING CHAPTER 78, TITLE 39, IDAHO
4 CODE, BY THE ADDITION OF A NEW SECTION 39-7804, IDAHO CODE, TO IMPOSE THE
5 DUTY ON CIGARETTE DISTRIBUTORS AND STAMPING AGENTS TO DISTRIBUTE AND STAMP
6 ONLY CIGARETTES OF TOBACCO PRODUCT MANUFACTURERS THAT ARE IN COMPLIANCE
7 WITH THIS CHAPTER AND TO PROVIDE PENALTIES; AND AMENDING CHAPTER 78, TITLE
8 39, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 39-7805, IDAHO CODE, TO
9 PROVIDE AUTHORITY FOR THE ATTORNEY GENERAL TO ENFORCE THIS CHAPTER, TO
10 PROVIDE FOR SERVICE OF PROCESS AND TO PROVIDE FOR EXCHANGE OF INFORMATION.
11 Be It Enacted by the Legislature of the State of Idaho:
12 SECTION 1. LEGISLATIVE INTENT. The Legislature finds that a number of
13 nonparticipating tobacco product manufacturers are not complying with the pro-
14 visions of Idaho's Master Settlement Agreement Act. Compliance with that act
15 is in the interests of the state. Permitting cigarette distributors and stamp-
16 ing agents to stamp and distribute only cigarettes made or sold by participat-
17 ing tobacco product manufacturers, or by nonparticipating tobacco product man-
18 ufacturers that are making all escrow payments required by Idaho's Master Set-
19 tlement Agreement Act, will significantly improve compliance under the act.
20 SECTION 2. That Chapter 78, Title 39, Idaho Code, be, and the same is
21 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
22 ignated as Section 39-7804, Idaho Code, and to read as follows:
23 39-7804. CIGARETTE DISTRIBUTOR AND STAMPING AGENT DUTIES. (a) A ciga-
24 rette distributor or any other stamping agent may not affix, or cause to be
25 affixed, stamps to individual packages of cigarettes unless the tobacco prod-
26 uct manufacturer has:
27 (1) Become a participating manufacturer as defined in section 39-7803(a),
28 Idaho Code; or
29 (2) Created a qualified escrow fund pursuant to, and timely made all
30 escrow payments required by sections 39-7803(b) and 39-7805(b), Idaho
31 Code.
32 (b) The attorney general shall maintain a list, available for public
33 inspection, of tobacco product manufacturers that have become participating
34 manufacturers as defined in section 39-7803(a), Idaho Code, or have created
35 qualified escrow funds pursuant to, and timely made all escrow payments
36 required by, sections 39-7803(b) and 39-7805(b), Idaho Code. A cigarette dis-
37 tributor or stamping agent may rely upon the attorney general's list in affix-
38 ing or causing to be affixed stamps to individual packages of cigarettes of
39 such tobacco product manufacturers. A cigarette distributor or stamping agent
40 who affixes, or causes to be affixed, stamps only to cigarettes of those
41 tobacco product manufacturers included on the attorney general's list, as of
42 the date the stamps were affixed, shall not be found liable under this section
2
1 even if it is later established that a tobacco product manufacturer included
2 on the list failed either to become a participating manufacturer as defined in
3 section 39-7803(a), Idaho Code, or to create a qualified escrow fund pursuant
4 to, or timely make all escrow payments required by sections 39-7803(b) and
5 39-7805(b), Idaho Code.
6 (c) The attorney general may bring a civil action on behalf of the state
7 against any cigarette distributor or stamping agent who violates this section.
8 Any cigarette distributor or stamping agent who violates this section shall be
9 subject to the same liability provisions that a tobacco product manufacturer
10 faces for violating section 39-7803(b), Idaho Code, pursuant to section
11 39-7803(b)(3), Idaho Code. In addition, in any action brought under this sec-
12 tion, the court shall award the attorney general, if he is the prevailing
13 party, reasonable costs, expenses and attorney's fees in bringing his action.
14 (d) Any nonparticipating manufacturer that falsely represents to any cig-
15 arette distributor or stamping agent that it is a participating manufacturer
16 as defined in section 39-7803(a), Idaho Code, or has created a qualified
17 escrow fund pursuant to, or has timely made all escrow payments required by,
18 sections 39-7803(b) and 39-7805(b), Idaho Code, or falsely certifies to the
19 attorney general its compliance with this chapter, pursuant to section
20 39-7803(b)(3), Idaho Code, shall be subject to a civil penalty, to be imposed
21 by the district court, in an amount up to five thousand dollars ($5,000) per
22 violation.
23 (e) For purposes of this section, "cigarette distributor" means every
24 person who is a wholesaler, as that term is defined in section 63-2502, Idaho
25 Code. "Stamping agent" means every person who affixes or causes to be affixed
26 stamps to individual packages of cigarettes.
27 SECTION 3. That Chapter 78, Title 39, Idaho Code, be, and the same is
28 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
29 ignated as Section 39-7805, Idaho Code, and to read as follows:
30 39-7805. ADDITIONAL ATTORNEY GENERAL AUTHORITY AND SERVICE OF PROCESS.
31 (a) The attorney general may require nonparticipating tobacco product manu-
32 facturers to submit such information as the attorney general may determine is
33 necessary to enable the attorney general to determine whether a nonpartic-
34 ipating manufacturer has made the escrow payments required by section
35 39-7803(b), Idaho Code.
36 (b) To promote compliance with section 39-7803(b), Idaho Code, the attor-
37 ney general may require nonparticipating manufacturers to make the escrow pay-
38 ments required by such subsection in quarterly installments during the year in
39 which the sales covered by such payments are made.
40 (c) The state tax commission and the attorney general may enter into a
41 written agreement authorizing the exchange of information reasonably necessary
42 to the enforcement and administration of this chapter.
43 (d) Service of any complaint and summons under this chapter shall be made
44 personally within this state, pursuant to the Idaho rules of civil procedure
45 but if such cannot be obtained, substituted service therefor may be made in
46 the following manner:
47 (1) Personal service thereof without this state; or
48 (2) The mailing thereof by registered or certified mail to the last known
49 place of business, residence, or abode of the nonparticipating manufac-
50 turer, cigarette distributor or stamping agent within or without this
51 state.
STATEMENT OF PURPOSE
RS 11820
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. Many 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, and establishing additional procedures to
ensure that the Act’s provisions will be followed will significantly
improve compliance under, and assist Idaho with its duty of
enforcing, the Act.
FISCAL NOTE
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 1358