Budget Amendment ID: FY2014-S3-268-R1

Redraft ECO 268

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

Messrs. Welch, Finegold and Knapik moved that the proposed new text be amended by inserting after section 139, the following new section:-

“SECTION 139A. There shall be a special commission to study the economic impact of the illegal tobacco market in the commonwealth which shall consist of: the commissioner of revenue or a designee, who shall serve as chair; the state treasurer or a designee; 1 member of the house of representatives; 1 member of the senate; the secretary of administration and finance or a designee; the attorney general or a designee; the executive director of the Northeast Association of Wholesale Distributors or a designee; the executive director of the New England Convenience Store Association or a designee; and 1 person to be appointed by the governor.

The commission shall study and report on the illegal tobacco distribution industry in the commonwealth and the resulting loss of tax revenue which shall include, but not be limited to investigating, reporting and making recommendations relative to: (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 revenues in the commonwealth as a result of the illegal tobacco market; (4) methods to maximize the collection of tobacco excise and sales tax revenues being lost to the illegal market; and (5) enforcement and penalties for violations of laws relative to the collection and reporting of all tobacco taxes under chapter 64C of the General Laws.

The commission shall convene not later than November 1, 2013.  The commission shall prepare a report detailing its findings and recommendations, together with drafts of legislation necessary to carry those recommendations into effect, by filing the same with the clerks of the senate and house of representatives, the chairs of the house and senate committees on ways and means and the senate and house chairs of the joint committee on revenue not later than March 1, 2014.”