Brief(1)
S.B. 278 would amend the cigarettes and tobacco statutes to require a distributor to notify the Director of Taxation 14 days in advance of distributing free samples of cigarettes or tobacco products at an event open to the public at which at least 1,000 people are expected to be present. Notice would have to be given to the Director no less than 14 days before the event. Such notice would not be required if the sample distribution occurs at a privately-owned business, building, or facility. Failure to provide the required notice would be a violation of the act subject to a misdemeanor penalty of a fine up to $1,000 or imprisonment for not more than one year, or both.
Background
S.B. 278 was requested by Senator Biggs. Proponents stated that the bill would allow the Department of Revenue to plan and conduct compliance checks at events where samples are distributed in the same manner as at licensed businesses. Proponents included the Director of Alcoholic Beverage Control and the Tobacco Free Kansas Coalition, Inc. Opponents included the R. J. Reynolds Tobacco Company and the Smokeless Tobacco Council, Inc.
The Senate Committee amendments: (1) changed the notice time limit from four weeks to 14 days; (2) limited the application of the bill to public events at which more than 1,000 people are expected to attend; (3) exempted privately-owned businesses, buildings, or facilities from the bill's provisions; and (4) made necessary technical and conforming changes to current law.
The fiscal note prepared by the Division of the Budget indicates that the bill would increase State General Fund expenditures by $250 in FY 2000; this amount would be expended by the Department of Revenue as the cost of printing and mailing a notice to the appropriate dealers. The Office of Judicial Administration also anticipates a modest fiscal impact because of the number of cases filed under the bill, but the impact cannot be estimated.
1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/bill_search.html