PRINTER'S NO. 2605
No. 1985 Session of 2001
INTRODUCED BY CALTAGIRONE, TRICH, DALEY, HORSEY, JOSEPHS, MELIO,
SCRIMENTI, WASHINGTON AND M. COHEN, OCTOBER 3, 2001
REFERRED TO COMMITTEE ON FINANCE, OCTOBER 3, 2001
AN ACT
1 Prohibiting the distribution of coupons for tobacco products;
2 imposing penalties; and imposing further duties on the
3 Department of Revenue and on local and county law enforcement
4 officers.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. Coupons for tobacco products prohibited.
8 Except as provided in section 2, no person who is engaged in
9 the business of producing, selling or otherwise distributing
10 tobacco products for commercial purposes, or an agent or
11 employee of such person, may knowingly, in furtherance of his
12 business, distribute coupons which are redeemable for tobacco
13 products to an individual.
14 Section 2. Exceptions.
15 Notwithstanding the general rule set forth in section 1, a
16 person who is engaged in the business of producing, selling or
17 otherwise distributing tobacco products, or his agent or
18 employee, may distribute coupons which are redeemable for
19 tobacco products if the coupons are distributed in any of the
1 following ways:
2 (1) In newspapers, magazines or other types of
3 publications.
4 (2) Through the purchase of tobacco products.
5 (3) At a limited designated area of a commercial
6 location which sells tobacco products.
7 (4) Through the mail.
8 Section 3. Discounts and incentive programs.
9 (a) A person engaged in business in Pennsylvania as a
10 cigarette manufacturer, dealer, wholesaler, retailer or stamping
11 agency, or an officer, agent or employee of such person, shall
12 not provide to any other person a discount, incentive program,
13 volume discount or other reduction in price below the price
14 normally charged by such cigarette manufacturer, dealer,
15 wholesaler, retailer or stamping agency in the regular course of
16 business on the sale for resale of any cigarettes subject to the
17 tax imposed pursuant to Article XII of the act of March 4, 1971
18 (P.L.6, No.2), known as the Tax Reform Code of 1971.
19 (b) A person engaged in business in Pennsylvania as a
20 cigarette manufacturer, dealer, wholesaler, retailer or stamping
21 agency, or an officer, agent or employee of such person, shall
22 not receive from any other person a discount, incentive program,
23 volume discount or other reduction in price below the price
24 normally charged by such other person in the regular course of
25 business on the purchase for resale of any cigarettes subject to
26 the tax imposed pursuant to Article XII of the Tax Reform Code
27 of 1971.
28 (c) A person engaged in business in Pennsylvania as a
29 cigarette manufacturer, dealer, wholesaler, retailer or stamping
30 agency, or an officer, agent or employee of such person, shall
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1 not possess any cigarettes which were sold in violation of
2 subsections (a) and (b).
3 (d) A person engaged in business in Pennsylvania as a
4 cigarette manufacturer, dealer, wholesaler, retailer or stamping
5 agency shall establish the price or prices normally charged by
6 such person in the regular course of business on the sale for
7 resale of any cigarettes subject to the tax imposed pursuant to
8 Article XII of the Tax Reform Code of 1971, and shall report the
9 price or prices or any changes therein to the Department of
10 Revenue. Such reports shall be a matter of public record. The
11 Department of Revenue shall promulgate regulations to provide
12 for the reporting required by this paragraph and the
13 dissemination of the reports.
14 Section 4. Penalties.
15 (a) A person who violates section 1 commits a misdemeanor of
16 the third degree, and shall be subject to a fine not to exceed
17 $100,000.
18 (b) A person who violates section 3 commits a misdemeanor of
19 the third degree, and shall be subject to a fine not to exceed
20 $100,000 or 10 cents for each cigarette involved in the
21 violation, whichever is greater.
22 (c) The Attorney General is authorized to bring a civil
23 action for enforcement for a violation of the provisions of this
24 act. In all cases, the court may award such relief as it deems
25 appropriate, including the award of all investigative costs,
26 court costs, attorney fees and other costs incurred by the
27 Commonwealth, and may prohibit the violator from engaging in
28 business in the future in Pennsylvania as a cigarette
29 manufacturer, dealer, wholesaler, retailer or stamping agency.
30 Section 5. Effective date.
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1 This act shall take effect in 60 days.
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