Amendment #528 to H3400

Special commission to study the economic impact of the illegal tobacco market

Mr. Wagner of Chicopee moves to amend the bill by adding the following section:

“SECTION XXXX. Notwithstanding any general or special law to the contrary, there is hereby established a special commission to study and report on the illegal tobacco distribution industry in Massachusetts and the resulting loss of tax revenue to the Commonwealth.

The special commission shall consist of 11 members: the commissioner of the department of revenue or his designee; the treasurer or his designee; the chairperson of the Massachusetts State Lottery Commission or his designee; 1 member of the house of representatives to be appointed by the speaker of the house; 1 member of the senate to be appointed by the senate president; 2 members to be appointed by the governor; the secretary of administration and finance or his designee; the attorney general or her designee; the executive director of the Northeast Association of Wholesale Distributors or his designee; and the executive director of the New England Convenience Store Association or his designee.

The scope of the special commission’s authority shall include, but not be limited to, investigating and developing recommendations regarding: (1) the regulation, oversight, distribution and sale of all tobacco products sold in the Commonwealth; (2) the illegal tobacco market in the Commonwealth; (3) the loss of tobacco excise and sales tax revenue in the state; (4) the maximization of the collection of tobacco excise and sales tax revenues being lost to the illegal market; and (5) enforcement and penalties for violation of collection and reporting of all tobacco taxes as set forth in Chapter 64C of the General Laws.

The special commission shall convene no later than August 1, 2013 and prepare a written report detailing its findings and recommendations, together with drafts of legislation as may be necessary to carry those recommendations into effect. The commission shall submit its report to the clerks of the house and senate, the chairs of the house and senate committees on ways and means and the joint committee on revenue not later than January 1, 2014.”