PRIOR PRINTER'S NO. 1888 PRINTER'S NO. 2264
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 REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES, AS AMENDED, SEPTEMBER 27, 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. Section 229-A of the act of April 9, 1929 <-- 7 (P.L.343, No.176), known as The Fiscal Code, is amended by 8 adding subsections to read: 9 Section 229-A. Violations.--* * * 10 (e) Any stamping agent who affixes any stamp or meter 11 impression to or upon any package of cigarettes or any 12 wholesaler or retailer who sells, gives, transfers or delivers 13 to any person any package of cigarettes: 14 (1) that bears any label or notice prescribed by the United 15 States Department of Treasury to identify cigarettes exempt from 16 tax by the United States pursuant to the Internal Revenue Code 17 (Public Law 105-33, 26 U.S.C. § 5704(b)) (concerning cigarettes 18 intended for shipment to a foreign country, Puerto Rico, the 19 Virgin Islands, or a possession of the United States, or for 20 consumption beyond the jurisdiction of the Internal Revenue laws 21 of the United States), including any notice or label described 22 in 27 CFR § 290.185; 23 (2) that is not labeled in conformity with the provisions of 24 the Federal Cigarette Labeling and Advertising Act (Public Law 25 89-92, 15 U.S.C. § 1331 et seq.), or any other Federal 26 requirement for the placement of labels, warnings and other 27 information, applicable to cigarette packages intended for 28 domestic consumption; or 29 (3) the packaging of which has been modified or altered by a 30 person other than the manufacturer, including by the placement 31 of a sticker to cover information on the package, for purposes 19990H1569B2264 - 2 -
1 of this subsection, a cigarette package shall not be construed 2 to have been modified or altered by a person other than the 3 manufacturer if the most recent modification to, or alteration 4 of, the package was by the manufacturer or by a person 5 authorized by the manufacturer; 6 shall be subject to a civil penalty in the amount of two hundred 7 per cent (200%) of the cost of the dealer according to this law 8 and shall forfeit all of said packages of cigarettes and, upon a 9 second finding of a violation of this subsection, the department 10 shall revoke said license. The licensee, and anyone having an 11 equitable interest in the license, shall have no interest in any 12 license issued pursuant to this act for a period of two years. 13 (f) The department is authorized to obtain and exchange 14 information with the United States Customs Service for the 15 purposes of enforcing this act. 16 SECTION 1. THE ACT OF APRIL 9, 1929 (P.L.343, NO.176), KNOWN <-- 17 AS THE FISCAL CODE, IS AMENDED BY ADDING A SECTION TO READ: 18 SECTION 217.1-A. LABELING AND PACKAGING.--(A) IT SHALL BE 19 UNLAWFUL TO AFFIX A TAX STAMP OR METER IMPRESSION TO, OR TO 20 SELL, GIVE, TRANSFER OR DELIVER TO ANY PERSON, ANY CIGARETTE 21 PACKAGE: 22 (1) THAT BEARS A LABEL OR NOTICE SET FORTH IN 27 CFR § 23 290.185 (RELATING TO LABEL OR NOTICE) OR USED TO IDENTIFY 24 CIGARETTES THAT ARE EXEMPT FROM TAX UNDER THE INTERNAL REVENUE 25 CODE OF 1986 (PUBLIC LAW 99-514, 26 U.S.C. § 5704(B)); 26 (2) THAT IS NOT LABELED IN CONFORMITY WITH THE FEDERAL 27 CIGARETTE LABELING AND ADVERTISING ACT (PUBLIC LAW 89-92, 15 28 U.S.C. § 1331 ET SEQ.), OR ANY OTHER FEDERAL REQUIREMENT FOR THE 29 PLACEMENT OF LABELS, WARNINGS AND OTHER INFORMATION APPLICABLE 30 TO CIGARETTE PACKAGES INTENDED FOR DOMESTIC CONSUMPTION; OR 19990H1569B2264 - 3 -
1 (3) THE PACKAGING OF WHICH HAS BEEN MODIFIED OR ALTERED BY A 2 PERSON OTHER THAN THE ORIGINAL MANUFACTURER. MODIFICATION OR 3 ALTERATION SHALL INCLUDE THE PLACEMENT OF A STICKER, WRITING OR 4 MARK TO COVER INFORMATION ON THE PACKAGES. FOR PURPOSES OF THIS 5 PARAGRAPH, A CIGARETTE PACKAGE SHALL NOT BE CONSTRUED TO HAVE 6 BEEN MODIFIED OR ALTERED BY A PERSON OTHER THAN THE MANUFACTURER 7 IF THE MOST RECENT MODIFICATION OR ALTERATION WAS MADE BY THE 8 MANUFACTURER OR PERSON AUTHORIZED BY THE MANUFACTURER AND 9 APPROVED BY THE DEPARTMENT. 10 (B) THE DEPARTMENT IS AUTHORIZED TO EXCHANGE INFORMATION 11 WITH THE UNITED STATES CUSTOMS SERVICE FOR PURPOSES OF ENFORCING 12 THIS ACT. 13 SECTION 2. SECTION 229-A HEADING OF THE ACT IS AMENDED AND 14 THE SECTION IS AMENDED BY ADDING SUBSECTIONS TO READ: 15 SECTION 229-A. VIOLATIONS AND PENALTIES.--* * * 16 (C.1) A PERSON WHO VIOLATES SECTION 217.1-A SHALL BE SUBJECT 17 TO A CIVIL PENALTY EQUAL TO TWO HUNDRED PER CENTUM OF THE VALUE 18 OF THE CIGARETTES OR TWO THOUSAND FIVE HUNDRED DOLLARS ($2,500), 19 WHICHEVER IS GREATER. THE CIGARETTES, VENDING MACHINE, 20 MACHINERY, EQUIPMENT OR VEHICLES INVOLVED IN A VIOLATION OF 21 SECTION 217.1-A SHALL BE CONFISCATED BY THE DEPARTMENT AND 22 FORFEITED TO THE COMMONWEALTH IN ACCORDANCE WITH SECTION 1285 OF 23 THE ACT OF MARCH 4, 1971 (P.L.6, NO.2), KNOWN AS THE "TAX REFORM 24 CODE OF 1971." UPON A SECOND OR SUBSEQUENT VIOLATION OF SECTION 25 217.1-A, THE DEPARTMENT SHALL REVOKE THE LICENSE OF THE PERSON. 26 THE LICENSEE, AND ANY OTHER PERSON WITH AN EQUITABLE INTEREST IN 27 THE LICENSE, SHALL BE PROHIBITED FROM HOLDING AN INTEREST IN ANY 28 LICENSE ISSUED PURSUANT TO THIS ACT FOR A PERIOD OF TWO YEARS. 29 * * * 30 (E) A PERSON WHO VIOLATES SECTION 217.1-A COMMITS THE 19990H1569B2264 - 4 -
1 FOLLOWING: 2 (1) A SUMMARY OFFENSE FOR A FIRST OFFENSE INVOLVING TWENTY 3 OR FEWER CARTONS OF CIGARETTES. UPON CONVICTION, THE PERSON 4 SHALL BE SUBJECT TO IMPRISONMENT AND TO A FINE OF NOT LESS THAN 5 TWO HUNDRED FIFTY DOLLARS ($250) NOR MORE THAN ONE THOUSAND 6 DOLLARS ($1,000) AND SHALL PAY THE COSTS OF PROSECUTION. 7 (2) A MISDEMEANOR OF THE FIRST DEGREE FOR A SECOND OFFENSE, 8 OR FIRST OFFENSE INVOLVING MORE THAN TWENTY AND FEWER THAN THREE 9 HUNDRED CARTONS OF CIGARETTES. UPON CONVICTION, THE PERSON SHALL 10 BE SUBJECT TO IMPRISONMENT AND TO A FINE OF NOT LESS THAN ONE 11 THOUSAND DOLLARS ($1,000) NOR MORE THAN FIFTEEN THOUSAND DOLLARS 12 ($15,000) AND SHALL PAY THE COSTS OF PROSECUTION. 13 (3) A FELONY OF THE THIRD DEGREE FOR A THIRD OR SUBSEQUENT 14 OFFENSE, OR FIRST OR SECOND OFFENSE INVOLVING MORE THAN THREE 15 HUNDRED CARTONS OF CIGARETTES. UPON CONVICTION, THE PERSON SHALL 16 BE SUBJECT TO IMPRISONMENT AND TO A FINE OF NOT LESS THAN TWO 17 THOUSAND DOLLARS ($2,000) NOR MORE THAN TWENTY THOUSAND DOLLARS 18 ($20,000) AND SHALL PAY THE COSTS OF PROSECUTION. 19 Section 2 3. This act shall take effect in 60 days. <-- E7L72JLW/19990H1569B2264 - 5 -