SS SCS HS HB 381 -- REGULATION OF TOBACCO PRODUCTS

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

(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.  The bill allows the director 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 through
the State Highway Patrol and all local police authorities.  The
Attorney General has concurrent power with the prosecuting
attorneys of the state to enforce this law.  The gray market
provisions of the bill will take effect February 1, 2002
(Sections 149.200-149.215);

(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.  Internet and
mail sales of tobacco to anyone under the age of 18 are also
prohibited.  There is a penalty for any such sale (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 years of age or for persons under the age of 18
to 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, 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
bill makes it a class A misdemeanor to reproduce, alter, modify,
or misrepresent a driver's license or identification card
(Section 407.929);

(8)  Requires vending machines, by January 1, 2002, 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.  There
are penalties for violation of these provisions (Section
407.931);

(9)  Prohibits any person from providing or distributing any
tobacco product, rolling papers, or individual cigarettes to any
minor.  The bill outlines penalties for persons and
establishments in violations of this provision (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.  The bill outlines
penalties for persons in violations of this provision (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 return filed (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 bill outlines minimum standards for
these rules.

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