HS HB 381 -- SALE OF TOBACCO PRODUCTS (Hoppe)

This substitute makes changes to statutes concerning the sale of
tobacco products.  The substitute:

(1)  Prohibits any refund to a cigarette retailer of sales tax
illegally or erroneously overcharged on the amount of any
cigarette excise tax included in the retail price of cigarettes,
unless the overcharge is refunded to the person who paid the
tax.  If the illegal or erroneous overcharge on the amount of
any cigarette excise tax is not refunded to the person who paid
the tax, it will be retained by the Director of the Department
of Revenue (Section 149.015, RSMo);

(2)  Bans the sale and distribution of "gray market
cigarettes."  Gray market cigarettes are cigarettes that are
packaged for sale outside the United States and may not contain
required health warnings and ingredient lists.  These cigarettes
may also be distributed under names and packages similar to
cigarettes manufactured for sale in the United States.  Persons
are prohibited from affixing any stamp or meter impressions to
gray market cigarettes.  Persons violating this law are guilty
of a class D felony.  The substitute allows the Director of the
Department of Revenue to revoke or suspend the license of a
wholesaler who violates this law.  In addition, the director may
impose a civil penalty not greater than 500% of the retail value
of the cigarettes involved or $5,000.  Gray market cigarettes
sold or distributed in violation of this law are considered
contraband and subject to seizure and forfeiture.  In addition,
violations are subject to remedies or penalties available for a
violation of unlawful trade practices.  This law is to be
enforced by the Director of Revenue through the State Highway
Patrol and all local police authorities.  The Attorney General
has concurrent enforcement power with the prosecuting attorneys
of the state.  Persons violating this law are subject to civil
action by persons who are economically injured by the violation
(Section 149.200-215);

(3)  Gives the Division of Liquor Control authority to enforce
laws related to the control and sale of tobacco and requires the
division to submit an annual report on the effectiveness of
cigarette control laws to the General Assembly (Section 407.924);

(4)  Requires vendors to deny the sale of tobacco products to
persons believed to be less than 18 years of age and adds a
penalty for sales on the Internet or by mail of tobacco to
anyone under the age of 18 (Section 407.926);

(5)  Requires vendors to post a sign stating that it is a
violation of state law for tobacco products to be provided to
persons under 18, and it is a violation for persons under 18 to
possess or purchase tobacco products.  Currently, a sign is
required stating only that it is illegal to sell tobacco
products to persons under 18 (Section 407.927);

(6)  Prohibits the sale of individual packages of tobacco
products unless sold through a vending machine or from behind a
checkout counter or within the unobstructed line of sight of the
sales clerk (Section 407.928);

(7)  Requires purchasers of tobacco products to present
prescribed identification upon request to demonstrate age.  The
substitute makes it a class A misdemeanor to reproduce, alter,
modify, or misrepresent a driver's license or identification
card (Section 407.929);

(8)  Requires, by January 1, 2002, vending machines to be
equipped with a device that disables them until unlocked by a
sales person.  Vending machines located in areas where patrons
must be over the age of 18 or in places not generally accessible
to the general public are exempted from this requirement.  The
Division of Liquor Control may suspend the registration of any
person in violation of this law (Section 407.931);

(9)  Prohibits any person from providing or distributing any
tobacco product, rolling papers, or individual cigarettes to any
minor.  The substitute outlines penalties for persons and
establishments in violation of this law (Section 407.931);

(10)  Makes it illegal for a person under the age of 18 to
purchase, attempt to purchase, or possess tobacco products
unless in the course of employment.  Persons under the age of 18
will have their tobacco products confiscated.  For the first
violation, the penalty is an infraction.  The penalty for a
second or subsequent violation is an infraction.  The person's
tobacco products must also be confiscated, and the person must
complete a tobacco education program, if available (Section
407.933);

(11)  Requires persons who sell cigarettes to have a retail
sales tax license and to be registered with the Department of
Revenue to sell tobacco products in the state.  Persons may
register to sell tobacco products through the Internet or on any
sales tax returns filed.  Any establishment selling tobacco
products without being registered is guilty of an infraction
(Section 407.934);

(12)  Requires the Department of Revenue to make available to
the Division of Liquor Control and the Department of Mental
Health a list of persons registered to sell tobacco products in
the state (Section 407.934); and

(13)  Gives the Division of Liquor Control the authority to
inspect stores and tobacco outlets for compliance with all laws
related to tobacco sales to minors.  The division may not employ
persons less than 17 years of age without parental consent for
the purpose of inspection or enforcement of tobacco laws.  The
division must also establish rules for the use of minors when
enforcing tobacco laws.  The substitute outlines minimum
standards for these rules.

FISCAL NOTE:  Estimated Net Cost to General Revenue Fund of
$867,794 in FY 2002, $924,139 in FY 2003, $948,061 in FY 2004.
Cost does not include unknown savings for possible reduced
foundation formula payments.

Missouri House of Representatives
Last Updated November 26, 2001 at 11:43 am