Session Law

Identifying Information:L. 2002 ch. 074
Other Identifying Information:2002 House Bill 2982*
Tax Type:Cigarette and Tobacco Products
Brief Description:An Act concerning the affixing of cigarette tax stamps and meter impressions and payment of tax on roll-your-own tobacco.
Keywords:


Body:

CHAPTER 74

HOUSE BILL No. 2982*

An Act concerning the affixing of cigarette tax stamps and meter impressions

and payment of tax on roll-your-own tobacco.


Be it enacted by the Legislature of the State of Kansas:

Section 1. (a) No person may affix, or cause to be affixed, tax stamps

or meter impressions to individual packages of cigarettes or pay the re-

quired tax on roll-your-own tobacco in accordance with K.S.A. 79-3371,

and amendments thereto, unless the tobacco product manufacturer that

makes or sells such cigarettes or roll-your-own tobacco has:

(1) Become a participating manufacturer; or

(2) made all required escrow payments.

(b) Not later than July 1, 2002, the attorney general shall develop a

list, to be posted on the attorney general's website, of all tobacco product

manufacturers that have become participating manufacturers or made all

required escrow payments. This list shall include the brand families iden-

tified by each such tobacco product manufacturer under subsection (c).

The list shall be updated as necessary. A person may rely upon the attor-

ney general's list in affixing or causing to be affixed stamps or meter

impressions to individual packages of cigarettes or paying the tax on roll-

your-own tobacco as required by K.S.A. 79-3371, and amendments

thereto, of any brand family included on the list.

(c) In order to be included on the list developed by the attorney

general under subsection (b), a tobacco product manufacturer shall (1)

submit to the attorney general a list of brand families whose cigarettes

are to be counted in calculating the participating manufacturer's annual

payments under the master settlement agreement or required escrow

payments whichever is applicable, (2) appoint a registered agent for serv-

ice of process in the state and identify such registered agent to the attor-

ney general, and (3) certify, under penalty of perjury, that all escrow

payments have been made by all other tobacco product manufacturers

that previously made or sold brand families identified under this subsec-

tion or brand style included within such brand families, except that, if the

brand family or brand style was made or sold by the manufacturer before

the effective date of this act, such manufacturer shall be required only to

identify such predecessor manufacturer or manufacturers. A tobacco

product manufacturer may update the list to reflect changes.

(d) In addition to or in lieu of any other civil or criminal penalty

provided by law, upon a finding that a licensee has violated subsection

(a) or any rules and regulations adopted pursuant thereto, the director

may revoke or suspend the license of any licensee in the manner provided

by K.S.A. 79-3309, and amendments thereto. The director may also im-

pose a civil fine in an amount not to exceed the greater of 500% of the

retail value of the cigarettes or roll-your-own tobacco involved or $5,000

upon a finding of a violation of subsection (a) or any rules and regulations

adopted pursuant thereto. Such fine shall be imposed in the manner

provided by K.S.A. 79-3391, and amendments thereto.

(e) Any cigarettes or roll-your-own tobacco that are stamped, to

which a meter impression is affixed or for which tax is paid as required

by K.S.A. 79-3371, and amendments thereto, in violation of subsection

(a) shall be deemed contraband under K.S.A. 79-3323, and amendments

thereto, and shall be subject to seizure and forfeiture as provided therein

and in K.S.A. 79-3324a, and amendments thereto. All such cigarettes and

roll-your-own tobacco seized and forfeited shall be destroyed. Such cig-

arettes and roll-your-own tobacco shall be deemed contraband whether

the violation of subsection (a) is knowing or otherwise.

(f) (1) The director may require wholesale dealers and distributors

to submit such information as is necessary to enable the attorney general

to determine whether a nonparticipating manufacturer has made the re-

quired escrow payments.

(2) The attorney general may require nonparticipating manufacturers

to submit such information as the attorney general may determine is

necessary to enable the attorney general to determine whether a non-

participating manufacturer has made the required escrow payments.

(g) The attorney general may require a nonparticipating manufac-

turer to make the required escrow payments in quarterly installments

during the year in which the sales covered by such payments are made

in order to be placed on the list developed by the attorney general under

subsection (b).

(h) (1) It shall be unlawful for a nonparticipating manufacturer, di-

rectly or indirectly, to falsely represent to any person in Kansas:

(A) Any information about a brand family pursuant to the list sub-

mitted pursuant to subsection (b);

(B) that it is a participating manufacturer;

(C) that it has made all required escrow payments; or

(D) that it has satisfied any other requirements imposed pursuant to

this statute.

(2) Violation of this section is a class A, nonperson misdemeanor.

(i) The director and the attorney general may enter into a written

agreement authorizing the exchange of information reasonably necessary

to the enforcement and administration of this section.

(j) As used in this section:

(1) ``Participating manufacturer'' has the meaning ascribed thereto in

subsection (a) of K.S.A. 2001 Supp. 50-6a03, and amendments thereto.

(2) ``Required escrow payments'' means the amounts described in

subsection (b)(1) of K.S.A. 2001 Supp. 50-6a03, and amendments thereto.

(3) ``Director'' means the director of taxation.

Sec. 2. This act shall take effect and be in force from and after its

publication in the Kansas register.

Approved April 17, 2002.

Published in the Kansas Register April 25, 2002.


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Date Composed: 10/10/2002 Date Modified: 10/10/2002