SB413: Bill Text

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1999 - 2000 LEGISLATURE

1999 Senate BILL 413

February 23, 2000 - Introduced by Senators Robson, Risser, Rosenzweig, Roessler, Wirch and Clausing, cosponsored by Representatives M. Lehman, Freese, Townsend, Plale, Huebsch and Sykora. Referred to Committee on Human Services and Aging.

SB413,1,3 An Act to amend 139.30 (7) and 139.321 (1) (intro.); and to create 139.31 (4), 139.34 (3) and 139.39 (4m) of the statutes; relating to: the sale of cigarettes that are not intended for sale in the United States and providing a penalty.

Analysis by the Legislative Reference Bureau

Under current law, tax stamps must be affixed to each package of cigarettes that is sold in this state. Under current law, a person who possesses over 400 cigarettes without tax stamps but not more than 6,000 cigarettes without tax stamps is subject to a fine of not more than $200 or imprisonment for not more than six months or both. A person who possesses over 6,000 cigarettes without tax stamps but not more than 36,000 cigarettes without tax stamps is subject to a fine of not more than $1,000 or imprisonment for not more than one year or both. A person who possesses over 36,000 cigarettes without tax stamps is subject to a fine of not more than $10,000 or imprisonment for not more than two years or both.

This bill prohibits affixing tax stamps to cigarettes that are intended for sale outside the United States; to cigarettes that are labeled as provided under federal law as not for consumption inside the United States; and to cigarette packages that are modified by a person who is not the cigarette manufacturer or an authorized agent of the cigarette manufacturer. Under the bill, a person who possesses, sells or distributes these types of cigarettes is subject to the same penalties that are applicable to the possession of cigarettes without tax stamps.

The bill allows any person to bring a suit for damages or injunctive relief against a person who affixes tax stamps to cigarettes that are intended for sale outside the United States.

For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB413, s. 1 Section 1. 139.30 (7) of the statutes is amended to read:

SB413,2,4 139.30 (7) "Manufacturer" means any person who manufactures cigarettes for the purpose of sale, including the authorized agent of a person who manufactures cigarettes for the purpose of sale.

SB413, s. 2 Section 2. 139.31 (4) of the statutes is created to read:

SB413,2,7 139.31 (4) No person may affix stamps, as described under s. 139.32, to any of the following:

SB413,2,9 (a) A cigarette package that is labeled as tax exempt under section 5704 (b) of the Internal Revenue Code or as tax exempt under 27 CFR 290.185.

SB413,2,11 (b) A cigarette package that is labeled as provided under federal law as not intended for consumption in the United States.

SB413,2,13 (c) A cigarette package that is modified by a person who is not the cigarette manufacturer.

SB413,2,15 (d) Any cigarettes that are imported into the United States after December 31, 1999, in violation of section 5754 of the Internal Revenue Code.

SB413, s. 3 Section 3. 139.321 (1) (intro.) of the statutes is amended to read:

SB413,2,20 139.321 (1) (intro.) It is unlawful for any person to possess in excess of 400 cigarettes unless the required stamps are properly affixed as provided in ss. 139.32 (1) and 139.33 (4). It is unlawful for any person to possess, sell or distribute cigarettes as described under s. 139.31 (4).

SB413, s. 4 Section 4. 139.34 (3) of the statutes is created to read:

SB413,3,4 139.34 (3) No distributor may affix stamps to cigarette packages, as provided in s. 139.32, unless the distributor certifies to the department, in a manner prescribed by the department, that the distributor purchases cigarettes directly from a manufacturer.

SB413, s. 5 Section 5. 139.39 (4m) of the statutes is created to read:

SB413,3,11 139.39 (4m) Any person may bring an action for a violation of s. 139.31 (4) for actual damages sustained as a result of the violation and for injunctive relief. Notwithstanding s. 814.04 (1), the court may order the violator to pay the prevailing party's costs and reasonable attorney fees. The trier of fact may increase recovery to an amount not exceeding 3 times the actual damages sustained as a result of the violation, if the trier of fact determines that the violation is wilful.

SB413,3,12 (End)