Brief (1)
HB 2670 would amend the existing law relating to cigarettes to prohibit trafficking in cigarettes manufactured for export, which are often called "gray market" cigarettes.
The bill also would amend existing law regarding penalties for selling cigarettes and tobacco products to persons who are under 18 years of age. Under existing law, the Secretary of Revenue is authorized to impose a civil fine of not more than $1,000 for such violations. The bill would add a provision stating that a violation of the act occurring more than three years after the most recent violation would be considered a first violation for purposes of a graduated fine schedule.
Background
Federal law which became effective on January 1, 2000, makes it illegal to import previously exported cigarettes and to introduce them directly into the domestic United States market. Cigarettes intended for export are not subject to the $4.50 per carton Tobacco Settlement levy. HB 2670 would amend existing Kansas law to make Kansas law parallel to the federal law in this area. Civil and criminal penalties for violations are included in the bill. House Committee amendments were technical in nature.
The Senate Committee on Federal and State Affairs amended the provisions of HB 2917, concerning penalties for underage sales, into HB 2670.
The Executive Director of the Petroleum Marketers and Convenience Store Association of Kansas (PMCA of Kansas) testified in support of both HB 2670 and HB 2917. There were no opponents. Representative Flower and an individual from her district presented testimony in support of HB 2917.
The Division of the Budget indicates that HB 2670, as introduced, would have no fiscal impact.
The Division of the Budget's fiscal note for HB 2917 states that enactment would not increase state revenues. The fiscal note also states that the Department of Revenue currently uses a graduated fine system for violations of the law, but tracks each licensee's violations continuously.
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