PRIOR PRINTER'S NOS. 1888, 2264 PRINTER'S NO. 2456
No. 1569 Session of 1999
INTRODUCED BY FARGO, LaGROTTA, ARGALL, BARLEY, BEBKO-JONES,
BUNT, CHADWICK, CIVERA, COY, DeLUCA, DEMPSEY, DERMODY,
GODSHALL, KENNEY, LEH, McCALL, NICKOL, ROBERTS, ROONEY, ROSS,
STABACK, TANGRETTI, TRELLO, ARMSTRONG, J. TAYLOR, SAINATO,
PISTELLA, McILHINNEY, SEYFERT, DALLY, L. I. COHEN AND
COLAFELLA, JUNE 3, 1999
AS RE-REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF
REPRESENTATIVES, AS AMENDED, OCTOBER 18, 1999
AN ACT
1 Amending the act of April 9, 1929 (P.L.343, No.176), entitled,
2 as amended, "An act relating to the finances of the State
3 government; providing for the settlement, assessment,
4 collection, and lien of taxes, bonus, and all other accounts
5 due the Commonwealth, the collection and recovery of fees and
6 other money or property due or belonging to the Commonwealth,
7 or any agency thereof, including escheated property and the
8 proceeds of its sale, the custody and disbursement or other
9 disposition of funds and securities belonging to or in the
10 possession of the Commonwealth, and the settlement of claims
11 against the Commonwealth, the resettlement of accounts and
12 appeals to the courts, refunds of moneys erroneously paid to
13 the Commonwealth, auditing the accounts of the Commonwealth
14 and all agencies thereof, of all public officers collecting
15 moneys payable to the Commonwealth, or any agency thereof,
16 and all receipts of appropriations from the Commonwealth,
17 authorizing the Commonwealth to issue tax anticipation notes
18 to defray current expenses, implementing the provisions of
19 section 7(a) of Article VIII of the Constitution of
20 Pennsylvania authorizing and restricting the incurring of
21 certain debt and imposing penalties; affecting every
22 department, board, commission, and officer of the State
23 government, every political subdivision of the State, and
24 certain officers of such subdivisions, every person,
25 association, and corporation required to pay, assess, or
26 collect taxes, or to make returns or reports under the laws
27 imposing taxes for State purposes, or to pay license fees or
28 other moneys to the Commonwealth, or any agency thereof,
29 every State depository and every debtor or creditor of the
1 Commonwealth," adding provisions relating to labeling and
2 packaging; and further providing for penalties for certain
3 sales or transfers of cigarettes.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. The act of April 9, 1929 (P.L.343, No.176), known
7 as The Fiscal Code, is amended by adding a section to read:
8 Section 217.1-A. Labeling and Packaging.--(a) It shall be
9 unlawful to KNOWINGLY affix a tax stamp or meter impression to, <--
10 or to KNOWINGLY sell, give, transfer or deliver to any person, <--
11 any cigarette package:
12 (1) that bears a label or notice set forth in 27 CFR § <--
13 290.185 (relating to label or notice) FEDERAL LAW OR REGULATION <--
14 or used to identify cigarettes that are exempt from tax under
15 the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C.
16 § 5704(b));
17 (2) that is not labeled in conformity with the Federal
18 Cigarette Labeling and Advertising Act (Public Law 89-92, 15
19 U.S.C. § 1331 et seq.), or any other Federal requirement for the
20 placement of labels, warnings and other information applicable
21 to cigarette packages intended for domestic consumption; or
22 (3) the packaging of which has been modified or altered by a
23 person other than the original manufacturer. Modification or
24 alteration shall include the placement of a sticker, writing or
25 mark to cover information on the packages. For purposes of this
26 paragraph, a cigarette package shall not be construed to have
27 been modified or altered by a person other than the manufacturer
28 if the most recent modification or alteration was made by the
29 manufacturer or person authorized by the manufacturer and
30 approved by the department.
31 (b) The department is authorized to exchange information
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1 with the United States Customs Service for purposes of enforcing
2 this act.
3 Section 2. Section 229-A heading of the act is amended and
4 the section is amended by adding subsections to read:
5 Section 229-A. Violations and Penalties.--* * *
6 (c.1) A person who violates section 217.1-A shall be subject
7 to a civil penalty equal to two hundred per centum of the value
8 of the cigarettes or two thousand five hundred dollars ($2,500),
9 whichever is greater. The cigarettes, vending machine,
10 machinery, equipment or vehicles involved in a violation of
11 section 217.1-A shall be confiscated by the department and
12 forfeited to the Commonwealth in accordance with section 1285 of
13 the act of March 4, 1971 (P.L.6, No.2), known as the "Tax Reform
14 Code of 1971." Upon a second or subsequent violation of section
15 217.1-A, the department shall MAY revoke the license of the <--
16 person. The licensee, and any other person with an equitable
17 interest in the license, shall MAY be prohibited from holding an <--
18 interest in any license issued pursuant to this act for a period
19 of UP TO two years. <--
20 * * *
21 (e) A person who violates section 217.1-A commits the
22 following:
23 (1) A summary offense for a first offense involving twenty
24 or fewer cartons of cigarettes. Upon conviction, the person
25 shall be subject to imprisonment and to a fine of not less than
26 two hundred fifty dollars ($250) nor more than one thousand
27 dollars ($1,000) and shall pay the costs of prosecution.
28 (2) A misdemeanor of the first degree for a second offense,
29 or first offense involving more than twenty and fewer than three
30 hundred cartons of cigarettes. Upon conviction, the person shall
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1 be subject to imprisonment and to a fine of not less than one
2 thousand dollars ($1,000) nor more than fifteen thousand dollars
3 ($15,000) and shall pay the costs of prosecution.
4 (3) A felony of the third degree for a third or subsequent
5 offense, or first or second offense involving more than three
6 hundred cartons of cigarettes. Upon conviction, the person shall
7 be subject to imprisonment and to a fine of not less than two
8 thousand dollars ($2,000) nor more than twenty thousand dollars
9 ($20,000) and shall pay the costs of prosecution.
10 (F) RECEIPT OF A PERCENTAGE OF A FRANCHISEE'S GROSS PROFITS <--
11 BY A FRANCHISOR SHALL NOT BE DEEMED AN EQUITABLE INTEREST IN THE
12 RETAIL LICENSE OF A FRANCHISEE.
13 Section 3. This act shall take effect in 60 days.
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