HS HCS HB 1652 & 1433 -- SALE OF TOBACCO PRODUCTS (Hoppe)

This substitute makes changes to statutes concerning the sale of
tobacco products.  The substitute:

(1)  Disallows any refund to a cigarette retailer of sales tax
illegally or erroneously overcharged on the amount of any
cigarette excise tax included in the retail price of cigarettes
unless the overcharge is refunded to the person who paid the
tax.  If the illegal or erroneous overcharge on the amount of
any cigarette excise tax is not refunded to the person who paid
the tax, it will be retained by the Director of Revenue (Section
149.015, RSMo);

(2)  Bans the sale and distribution of "gray market
cigarettes."  Gray market cigarettes are cigarettes that are
packaged for sale outside the United States and may not contain
required health warnings.  The substitute requires monthly
reporting to the Department of Revenue by persons licensed to
affix the state cigarette tax stamp to legally imported
cigarettes.  Penalties are outlined for violations of the
section (Section 149.071);

(3)  Gives the Division of Liquor Control authority to enforce
laws related to the control and sale of tobacco and requires the
division to submit an annual report on the effectiveness of
cigarette control laws to the General Assembly (Section 407.924);

(4)  Requires vendors to deny the sale of tobacco products to
persons believed to be less than 18 and makes individual
packages of tobacco products inaccessible to all persons under
18, beginning January 1, 2001.  The substitute also adds a
penalty for the Internet or mail sales of tobacco to anyone
under the age of 18 (Sections 407.926, 407.928);

(5)  Requires persons selling or providing tobacco products to
require identification from persons whom they believe may be
under 21 years of age.  The seller or provider of tobacco
products cannot be charged with a violation for selling to
persons under 18 if they were presented a proper photo
identification or identification was confirmed by a scan device
(Section 407.929);

(6)  Bans the sale of individual packages of tobacco products
unless they are sold through vending machines, behind a counter,
or within the direct line of sight of the cashier.  The
substitute requires that vending machines be equipped with a
device that disables them until unlocked by a sales person.
Vending machines located in areas where patrons must be over the
age of 18 are exempted from this requirement (Sections 407.928,
407.931);

(7)  Makes it illegal for a person under the age of 18 to
purchase, attempt to purchase, or possess tobacco products.
Persons under the age of 18 will have their tobacco products
confiscated and their parents or guardian will be notified.  The
substitute outlines penalties for the violation of this section.
(Section 407.933);

(8)  Requires vendors of tobacco products to be registered to
sell such products.  The Division of Liquor Control is given the
authority to inspect stores for compliance with laws relating to
the sale of tobacco products.  The Department of Revenue must
make a list of persons registered to sell tobacco available to
the Department of Mental Health and the Division of Liquor
Control.  The division may not use persons under the age of 18
to enforce tobacco laws.  Knowingly selling tobacco products to
minors without registering is a class A misdemeanor (Section
407.934);

(9)  Requires vendors to post a sign stating that it is a
violation of state law for persons under 18 to possess or
purchase tobacco products.  Currently, a sign is required
stating only that it is illegal to sell tobacco products to
persons under 18 (Section 407.927);

(10)  Imposes a fine of $250 and 5-day suspension of a store's
license to sell tobacco products for the fourth or subsequent
violation of the statutes banning the sale or distribution of
tobacco products to persons under the age of 18.  In addition,
the store will be fined in the same amount as the individual
wrongfully selling the tobacco products (Section 407.931);

(11)  Imposes additional penalties on the owner or operator of
an outlet selling tobacco products to persons under 18.  For the
first offense, the Division of Liquor Control will issue a
reprimand; for a second offense, the division will prohibit the
sale of tobacco products for one day; for a third offense, the
division will prohibit the sale of tobacco products for 2 days;
and for the fourth and subsequent offense, the division will
prohibit the sale of tobacco products for 3 days.  The penalties
will not be imposed on the owner or operator if certain
circumstances involving the training of employees in the sale of
tobacco to minors can be shown (Section 407.931);

(12)  Requires the Department of Revenue and tobacco wholesalers
to establish a pilot program to develop a more efficient method
of stamping and taxing tobacco products; and

(13)  Prohibits tobacco manufacturers from selling smokeless
tobacco products in this state unless they participate in the
tobacco master settlement or contribute into a qualified escrow
fund according to the tobacco master settlement.

FISCAL NOTE:  Total Estimated Net Cost to General Revenue Fund
of $811,119 in FY 2001, $673,386 in FY 2002, and $690,668 in FY
2003.

HCS HB 1652 & 1433 -- SALE OF TOBACCO PRODUCTS

SPONSOR:  Hoppe

COMMITTEE ACTION:  Voted "do pass" by the Committee on Local
Government and Related Matters by a vote of 12 to 7 with 1
present.

This substitute makes changes to statutes concerning the sale of
tobacco products.  The substitute:

(1)  Disallows any refund to a cigarette retailer of sales tax
illegally or erroneously overcharged on the amount of any
cigarette excise tax included in the retail price of cigarettes
unless the overcharge is refunded to the person who paid the
tax.  If the illegal or erroneous overcharge on the amount of
any cigarette excise tax is not refunded to the person who paid
the tax, it will be retained by the Director of Revenue (Section
149.015, RSMo);

(2)  Bans the sale and distribution of "gray market
cigarettes."  Gray market cigarettes are cigarettes that are
packaged for sale outside the United States and may not contain
required health warnings.  The substitute requires monthly
reporting to the Department of Revenue by persons licensed to
affix the state cigarette tax stamp to legally imported
cigarettes.  Penalties are outlined for violations of the
section (Section 149.071);

(3)  Gives the Division of Liquor Control authority to enforce
laws related to the control and sale of tobacco and requires the
division to submit an annual report on the effectiveness of
cigarette control laws to the General Assembly (Section 407.924);

(4)  Makes it illegal for a person under the age of 18 to
purchase, attempt to purchase, or possess tobacco products.
Persons under the age of 18 will have their tobacco products
confiscated.  For the first violation, the penalty is a class C
misdemeanor.  The penalty for a second or subsequent violation
may include community service (Section 407.933);

(5)  Requires vendors of tobacco products to be registered to
sell such products and gives the Department of Mental Health the
authority to inspect stores for compliance with laws relating to
the sale of tobacco products.  Violations are referred to the
Division of Liquor Control.  Knowingly selling tobacco products
to minors without registering is a class A misdemeanor (Section
407.934);

(6)  Requires vendors to deny the sale of tobacco products to
persons believed to be less than 18 and makes individual
packages of tobacco products inaccessible to all persons under
18, beginning January 1, 2001.  The substitute also adds a
penalty for the Internet or mail sales of tobacco to anyone
under the age of 18 (Sections 407.926, 407.928);

(7)  Requires vendors to post a sign stating that it is a
violation of state law for tobacco products to be provided to
persons under 18, and it is a violation for persons under 18 to
possess or purchase tobacco products.  Currently, a sign is
required stating only that it is illegal to sell tobacco
products to persons under 18 (Section 407.927);

(8)  Bans the sale of individual packages of tobacco products
unless they are sold through vending machines, behind a counter,
or within the direct line of sight of the cashier.  The
substitute requires that vending machines be equipped with a
device that disables them until unlocked by a sales person.
Vending machines located in areas where patrons must be over the
age of 18 are exempted from this requirement (Sections 407.928,
407.931);

(9)  Requires purchasers of tobacco products to present
prescribed identification upon request to demonstrate age.  The
substitute makes it a class A misdemeanor to reproduce, alter,
modify, or misrepresent a driver's license or identification
card (Section 407.929);

(10)  Imposes a fine of $250 and 5-day suspension of a store's
license to sell tobacco products for the fourth or subsequent
violation of the statutes banning the sale or distribution of
tobacco products to persons under the age of 18.  In addition,
the store will be fined in the same amount as the individual
wrongfully selling the tobacco products (Section 407.931); and

(11)  Imposes additional penalties on the owner or operator of
the outlet selling tobacco products to persons under 18.  For
the first offense, the Division of Liquor Control will issue a
reprimand; for a second offense, the division will prohibit the
sale of tobacco products for one day; for a third offense, the
division will prohibit the sale of tobacco products for 2 days;
and for the fourth and subsequent offense, the division will
prohibit the sale of tobacco products for 3 days.  The penalties
will not be imposed on the owner or operator if certain
circumstances involving the training of employees in the sale of
tobacco to minors can be shown (Section 407.931).

FISCAL NOTE:  Total Estimated Net Cost to General Revenue Fund
of $829,764 in FY 2001, $728,425 in FY 2002, and $747,088 in FY
2003.

PROPONENTS:  Supporters say that this bill will help stop teen
smoking.  Currently, teens can legally possess cigarettes.  This
bill will make it more difficult for teens to buy tobacco.
Tobacco should be treated the same as liquor.  The master
tobacco settlement also requires that the state enforce tobacco
laws.

Testifying for the bill were Representative Hoppe; Jeremy Bloss;
Brown and Williamson Tobacco; Missouri Department of Revenue;
Office of the Attorney General; and Missouri Retailers
Association.

OPPONENTS:  Those who oppose the bill say that the registration
fee is not fair to retailers.  The provisions in the bill
regarding line of sight are also a burden on retailers.  The
bill will cut some state revenue.

Testifying against the bill were Missouri Petroleum Association;
Missouri Automatic Merchandising Association; DC Incorporated;
and 7-11 Corporation.

Steve Bauer, Legislative Analyst

HB 1652 -- Sale of Tobacco Products

Co-Sponsors:  Hoppe, Hosmer, Van Zandt

This bill makes changes to statutes concerning the sale of
tobacco products.

The bill:

(1)  Makes it illegal for a person under the age of 18 to
purchase, attempt to purchase, or possess tobacco products.
Persons under the age of 18 will have their tobacco products
confiscated.  For the first violation, the penalty is an
infraction.  The penalty for a second or subsequent violation
may include community service (Section 407.933);

(2)  Requires vendors of tobacco products to have a retail sales
tax license and be registered to sell such products, and allows
the Department of Mental Health the authority to inspect stores
for compliance with laws relating to the sale of tobacco
products.  Violations are referred to the Division of Liquor
Control.  Knowingly selling tobacco products to minors without
registering is a class A misdemeanor (Section 407.934);

(3)  Allows vendors to deny the sale of tobacco products to
persons believed to be less than 18, and makes individual
packages of tobacco products inaccessible to all persons under
18, beginning January 1, 2001 (Sections 407.926, 407.928);

(4)  Requires vendors to post a sign stating that it is a
violation of state law for tobacco products to be provided to
persons under 18, and it is a violation for persons under 18 to
possess or purchase tobacco products.  Currently, a sign is
required stating only that it is illegal to sell tobacco
products to persons under 18 (Section 407.927);

(5)  Bans the sale of individual packages of tobacco products
unless they are either sold through vending machines or
displayed at a secure and inaccessible location.  The bill
requires that vending machines be equipped with a device that
disables them until unlocked by a sales person.  Vending
machines located in areas where patrons must be over the age of
18 are excepted from this requirement (Section 407.928, 407.931);

(6)  Requires purchasers of tobacco products to present
prescribed identification upon request to demonstrate age.  The
bill makes it a class A misdemeanor to reproduce, alter, modify,
or misrepresent a driver's license or identification card, which
is punishable with a fine of not more than $1,000 and
confinement of not more than one year (Section 407.929);

(7)  Imposes a fine of $250 and 5-day suspension of a store's
license to sell tobacco products for the fourth or subsequent
violation of the statutes banning the sale or distribution of
tobacco products to persons under the age of 18.  In addition,
the store will be fined in the same amount as the individual
wrongfully selling the tobacco products (Section 407.931); and

(8)  Imposes additional penalties on the owner or operator of
the outlet selling tobacco products to persons under 18.  For
the first offense, the Division of Liquor Control will issue a
reprimand; for a second offense, the division will prohibit the
sale of tobacco products for one day; for a third offense, the
division will prohibit the sale of tobacco products for 2 days;
and for the fourth and subsequent offense, the division will
prohibit the sale of tobacco products for 3 days.  The penalties
will not be imposed on the owner or operator if certain
circumstances involving the training of employees in the sale of
tobacco to minors can be shown (Section 407.931).