Amendment ID: S2571-3-R1
Redraft Amendment 3
Corrective Amendment
Ms. Spilka moves that the proposed new text be amended by striking out section 1 and inserting in place thereof the following 20 sections:-
“SECTION 1. Section 6 of chapter 14 of the General Laws, as appearing in the 2016 Official Edition, is hereby amended by striking out, in lines 91 and 92, the words “, vending machine operator”.
SECTION 1A. Section 67 of chapter 62C of the General Laws, as so appearing, is hereby amended by striking out, in lines 6 and 22, each time they appear, the words “, vending machine operator”.
SECTION 1B. Said section 67 of said chapter 62C, as so appearing, is hereby further amended by striking out, in lines 48 and 49, and in lines 63 and 64, each time they appear, the words “, vending machine operators”.
SECTION 1C. Said section 67 of said chapter 62C, as so appearing, is hereby further amended by striking out, in line 68, the words “, cigar distributor or vending machine operator” and inserting in place thereof the following words:- or cigar distributor.
SECTION 1D. Section 1 of chapter 64C of the General Laws, as appearing in the 2016 Official Edition, is hereby amended by striking out the first paragraph and inserting in place thereof the following paragraph:-
Section 1. For the purposes of this chapter, the following words shall have the following meanings unless the context clearly requires otherwise:
“Cigarette”, (i) a roll of tobacco wrapped in paper or any other substance not containing tobacco; (ii) little cigars, which shall include rolls of tobacco wrapped in leaf tobacco or any substance containing tobacco and as to which 1,000 units weigh not more than 3 pounds; and (iii) a roll of tobacco wrapped in a substance containing tobacco which, because of its appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to be offered to or purchased by consumers as a cigarette.
“Commissioner”, the commissioner of revenue.
“Licensee”, a person licensed as a manufacturer, wholesaler, unclassified acquirer, transportation company or retailer pursuant to section 67 of chapter 62C.
“Manufacturer”, a person who manufactures or produces cigarettes within or without the commonwealth.
“Person”, an individual, firm, fiduciary, partnership, corporation, trust or association, however formed, and a club, trustee, agency or receiver.
“Place of business”, a place where tobacco products are sold or where tobacco products are brought or kept for the purpose of sale or consumption, including in a vessel, vehicle, airplane or train.
“Retailer”, a person, other than a transportation company, who operates a store or concession for the purpose of making sales of tobacco products at retail.
“Sale”, in addition to its ordinary meaning, “sale” shall include usage, gifting, exchanging and bartering.
“Stamper”, a person authorized by the commissioner to purchase and affix adhesive or meter stamps under this chapter.
“Tobacco products”, cigarettes and smokeless tobacco.
“Transportation company”, a person operating or supplying to a common carrier, cars, boats or other vehicles for the transportation or accommodation of passengers and engaged in the sale of tobacco products at retail.
“Unclassified acquirer”, a person, other than a transportation company or a purchaser who purchases at retail from a licensed retailer, who imports or acquires tobacco products from anyone other than a licensed manufacturer or wholesaler.
“Wholesaler”, a person who purchases directly from the manufacturer at least 75 per cent of all tobacco products purchased by the wholesaler and who sells at least 75 per cent of those tobacco products and any other person who purchases from a manufacturer or other person so purchasing and selling and licensed as a wholesaler; provided, however, that such other person shall maintain an established place of business where substantially all of the business is the sale of tobacco products and related merchandise at wholesale to licensees and where, at all times, a substantial stock of tobacco products and related merchandise is available to retailers for resale and a chain of stores retailing tobacco products to the consumer if 75 per cent of its purchases are made directly from the manufacturer.
SECTION 1E. Said chapter 64C is hereby further amended by striking out section 2, as so appearing, and inserting in place there of the following section:-
Section 2. No person shall sell tobacco products or act as a manufacturer, wholesaler, unclassified acquirer, transportation company or retailer unless licensed to do so in accordance with section 67 of chapter 62C. If a manufacturer, wholesaler or unclassified acquirer acts in more than 1 of these capacities at any 1 place of business, such manufacturer, wholesaler or unclassified acquirer shall obtain a license for each such capacity. Each license so issued or a duplicate copy thereof shall be prominently displayed on the premises covered by the license.
SECTION 1F. Section 2A of said chapter 64C, as so appearing, is hereby amended by striking out, the definition of “Wholesale dealer” and inserting in place thereof the following definition:-
“Wholesale dealer”, a person who sells cigarettes or tobacco products to retail dealers or other persons for the purposes of resale.
SECTION 1G. Section 5 of said chapter 64C, as so appearing, is hereby amended by striking out, in lines 1 and 2, and in line 48, the words “, vending machine operator”, each time they appear.
SECTION 1H. Said section 5 of said chapter 64C, as so appearing, is hereby further amended by striking out the fifth and sixth sentences.
SECTION 1I. Subsection (l) of section 7B of chapter 64C of the General Laws is hereby amended by striking out paragraph (4) and inserting in place thereof the following paragraph:-
(4) Whenever the commissioner or a police officer discovers a person who is not a licensed cigar distributor or one authorized by the commissioner to be in possession of untaxed cigars or smoking tobacco, the commissioner or the police officer may seize and take possession of those cigars and smoking tobacco and any receptacle in which they are contained or in which they are transported; provided, however, that for the purposes of this paragraph, “receptacle” shall include, but not be limited to, a motor vehicle, boat or airplane. Such cigars, smoking tobacco or receptacle so seized shall be turned over to the commissioner and shall be forfeited to the commonwealth. The commissioner shall destroy the seized cigars or smoking tobacco and shall destroy or otherwise dispose of the receptacle; provided, however, that the commissioner may, within a reasonable time after any such seizure, sell the receptacle at public sale and deposit the proceeds in the General Fund; and provided further, that the commissioner shall provide public notice of any such sale at least 5 days prior to the day of sale.
SECTION 1J. Section 8 of said chapter 64C, as so appearing, is hereby amended by striking out, in line 9, the words “, the vending machines”.
SECTION 1K. Said chapter 64C is hereby further amended by striking out section 10, as so appearing, and inserting in place thereof the following section:-
Section 10. A person who sells, offers for sale or possesses with intent to sell cigarettes or who otherwise acts as a manufacturer, wholesaler, transportation company or retailer without being licensed so to do shall, in addition to any other penalty provided in this chapter, be punished by a civil penalty of not more than $250 for a first violation, not more than $500 for a second violation and not more than $1,000 for a third or subsequent violation. A person who is convicted of acting as an unclassified acquirer without being licensed as provided in section 2 shall be punished by a fine of not less than $500 but not more than $1,000 or by imprisonment for not more than 1 year or by both such fine and imprisonment. Any person who knowingly purchases or possesses cigarettes not manufactured, purchased or imported by a licensed manufacturer, wholesaler, unclassified acquirer or transportation company shall be punished by a fine of not less than $50 but not more than $1,000. A person who knowingly possesses a shipping case or other container of cigarettes and such shipping case or container does not bear the name and address of the person receiving the cigarettes from a manufacturer or such other markings as the commissioner may prescribe and any person who knowingly possesses a shipping case or other container of cigarettes from which such name and address has been erased or defaced shall be punished by a civil penalty of not more than $250 for a first violation, not more than $500 for a second violation and $1,000 for a third or subsequent violation. No person, either as principal or agent, shall sell or solicit orders for cigarettes to be shipped, mailed or otherwise sent or brought into the commonwealth to a person who is not a licensed manufacturer, wholesaler, unclassified acquirer or transportation company unless the cigarettes are to be sold to or through a licensed wholesaler. Each violation of this chapter shall constitute a separate offense. A person who files a false return, affidavit or statement or who otherwise violates this chapter and no other penalty has been provided shall be punished by a fine of not more than $1,000 dollars or by imprisonment for not more than 1 year or by both such fine and imprisonment. The department of state police and local police departments may enforce this chapter; provided, however, that at the request of the commissioner or a duly authorized agent, the department of state police and local police departments shall enforce of this section.
SECTION 1L. Section 11 of said chapter 64C, as so appearing, is hereby amended by striking out the third to sixth sentences, inclusive.
SECTION 1M. Section 13 of said chapter 64C, as so appearing, is hereby amended by striking out, in lines 50 and 51, the words “or any vending machine operator who operates vending machines in twenty-five or more locations”.
SECTION 1N. Said section 13 of said chapter 64C, as so appearing, is hereby further amended by striking out, in line 78, the words “, vending machine operator”.
SECTION 1O. Section 30 of said chapter 64C, as so appearing, is hereby amended by striking out, in lines 20 and 21, the words “and licensed vending machine operators”.
SECTION 1P. Section 33 of said chapter 64C, as so appearing, is hereby amended by striking out, in lines 6 and 7, the words “and licensed vending machine operator”.
SECTION 1Q. Section 35 of said chapter 64C, as so appearing, is hereby amended by striking out, in line 12, the words “, the vending machines”.
SECTION 1R. Said section 35 of said chapter 64C, as so appearing, is hereby further amended by striking out, in line 20, the word “, machines”.
SECTION 1S. Said chapter 64C is hereby further amended by striking out section 38A, as so appearing, and inserting in place thereof the following section:-
Section 38A. Whenever the commissioner or a police officer discovers a person who is not a stamper, licensed transportation company or one authorized by the commissioner to be in possession of any cigarettes subject to tax under this chapter that do not have affixed to them the required Massachusetts stamps showing the payment of excise or in possession of any smokeless tobacco on which the tax has not been paid, the commissioner or the police officer may seize and take possession of those cigarettes or smokeless tobacco and any receptacle in which they are contained or in which they are transported; provided, however, that , that for the purposes of this section, “receptacle” shall include, but not be limited to, a motor vehicle, boat or airplane. Such cigarettes, smokeless tobacco or receptacle so seized by a police officer shall be turned over to the commissioner and shall be forfeited to the commonwealth. The commissioner shall destroy the seized cigarettes or smokeless tobacco and shall destroy or otherwise dispose of the receptacle; provided, however, that the commissioner may, within a reasonable time after any such seizure, sell the receptacle at public sale and deposit the proceeds in the General Fund; and provided further, that , the commissioner shall provide public notice of any such sale at least 5 days prior to the day of sale.”; and
by striking out, in line 71, the word “SECTION 61” and inserting in place thereof the following word:-
“SECTION 6”; and
by inserting after the word “pipes”, in line 86, the following words:- “, electronic nicotine delivery systems”; and
by striking out, in line 137, the word “SECTION 8” and inserting in place thereof the following word:-
“SECTION 8A”; and
by striking out, in line 169, the word “SECTION 10” and inserting in place thereof the following word:-
“SECTION 11”.