SS SCS SB 884 -- TOBACCO REGULATIONS

SPONSOR:  Schaefer (Diehl)

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
General Laws by a vote of 9 to 0.

This substitute changes the laws regarding tobacco regulations.
In its main provisions, the substitute:

(1)  Requires every tobacco product manufacturer whose cigarettes
are sold in Missouri to certify to the Director of the Department
of Revenue by April 30 of each year that it is in compliance with
the Tobacco Master Settlement Agreement.  A participating tobacco
manufacturer must include in its certification a list of its
brand families and update the list 30 days prior to any addition
to or modification of its brand families by a supplemental
certification.  A nonparticipating manufacturer must include in
its certification a list of all of its brand families and the
number of units sold for each brand family that was sold in the
state during the preceding calendar year indicating any brand
family that is no longer being sold in the state as of the date
of the certification and the name and address of any other
manufacturer of the brand families in the preceding or current
year.  The nonparticipating manufacturer must update the list 30
days prior to any addition to or modification of its brand
families by a supplemental certification.  A nonparticipating
manufacturer must also certify that it is registered to do
business in the state or has appointed an agent within the state
for the service of process regarding the enforcement of the
provisions of the substitute, that it is in full compliance with
the provisions regarding the master agreement, and other
specified information on its financial transactions;

(2)  Requires, on or after January 1, 2011, the department
director to issue, maintain, update when necessary, make
available for public inspection, and publish on its web site a
directory listing all tobacco product manufacturers that have
provided current and accurate certifications in compliance with
the requirements of the substitute and all brand families listed
in the certifications with certain specified exceptions;

(3)  Requires the department director and the Attorney General to
share with each other any information received under the
provisions of the master agreement;

(4)  Allows the Attorney General, on behalf of the department
director, to seek an injunction to restrain a threatened or
actual violation of certain provisions;

(5)  Requires a stamping agent, who affixes tax stamps to
cigarette packages, to submit an electronic mail address to the
department director for the receipt of required notifications;

(6)  Allows the seizure and forfeiture of cigarettes deemed by a
court of competent jurisdiction to have been sold, offered for
sale, or possessed for sale in violation of the provisions of the
substitute.  The state may also recover the costs of
investigating and litigating a violation; and

(7)  Specifies the penalties for a violation of the provisions of
the substitute including suspension of the license of a stamping
agent and a class A misdemeanor offense for a violation of
various transactions involving contraband cigarettes.  Monetary
penalties will be deposited into the newly created Tobacco
Control Special Fund to be used to enforce the provisions of the
substitute.

The substitute contains an emergency clause.

FISCAL NOTE:  Estimated Income on General Revenue Fund of $0 in
FY 2011, $88,871 in FY 2012, and $91,536 in FY 2013.  Estimated
Income on Other State Funds of Unknown in FY 2011, FY 2012, and
FY 2013.

PROPONENTS:  Supporters say that the bill will allow the state to
enforce the terms of the Tobacco Master Settlement Agreement by
providing the Attorney General and the Department of Revenue with
additional information on cigarette manufacturers.  Missouri
needs to ensure that it retains all possible settlement funds in
future years.

Testifying for the bill were Representative Diehl for Senator
Schaefer; Office of the Attorney General; Michael Hering,
National Association of Attorney Generals; Missouri Hospital
Association; March of Dimes, Greater Missouri Chapter; and
various smoke shop retailers.

OPPONENTS:  There was no opposition voiced to the committee.

OTHERS:  Others testifying on the bill say that it now provides
adequate time for retailers to comply with its terms.  The bill
creates a level playing field for tobacco retailers and allows
adequate due process prior to the seizure of assets.

Testifying on the bill were Missouri Petroleum Marketers and
Convenience Store Association; Andy Arnold; and several small
tobacco shop owners.

Missouri House of Representatives
95th General Assembly, 2nd Regular Session
Last Updated September 14, 2010 at 3:15 pm