2014 -- H 7166

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LC002996

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

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A N   A C T

RELATING TO TAXATION - CIGARETTE TAX

     Introduced By: Representatives Corvese, O'Brien, Handy, Azzinaro, and Edwards

     Date Introduced: January 23, 2014

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 44-20-4.1 of the General Laws in Chapter 44-20 entitled "Cigarette

Tax" is hereby amended to read as follows:

     44-20-4.1. License availability. -- (a) No license under this chapter may be granted,

maintained or renewed if the applicant, or any combination of persons owning directly or

indirectly any interests in the applicant:

      (1) Owes five hundred dollars ($500) or more in delinquent cigarette taxes;

      (2) Is delinquent in any tax filings for one month or more;

      (3) Had a license under this chapter revoked by the administrator within the past two (2)

years;

      (4) Has been convicted of a crime relating to cigarettes stolen or counterfeit cigarettes;

      (5) Is a cigarette manufacturer or importer that is neither: (i) a participating manufacturer

as defined in subsection II (jj) of the "Master Settlement Agreement" as defined in section 23-71-

2; nor (ii) in full compliance with chapter 20.2 of this title and section 23-71-3;

      (6) Has imported, or caused to be imported, into the United States any cigarette in

violation of 19 U.S.C. section 1681a; or

      (7) Has imported, or caused to be imported into the United States, or manufactured for

sale or distribution in the United States any cigarette that does not fully comply with the Federal

Cigarette Labeling and Advertising Act (15 U.S.C. section 1331, et. seq).

      (b) (1) No person shall apply for a new license or permit (as defined in section 44-19-1)

or renewal of a license or permit, and no license or permit shall be issued or renewed for any

person, unless all outstanding fines, fees or other charges relating to any license or permit held by

that person have been paid.

      (2) No license or permit shall be issued relating to a business at any specific location

until all prior licenses or permits relating to that location have been officially terminated and all

fines, fees or charges relating to the prior licenses have been paid or otherwise resolved or the

administrator has found that the person applying for the new license or permit is not acting as an

agent for the prior licensee or permit holder who is subject to any such related fines, fees or

charges that are still due. Evidence of such agency status includes, but is not limited to, a direct

familial relationship and/or an employment, contractual or other formal financial or business

relationship with the prior licensee or permit holder.

      (3) No person shall apply for a new license or permit pertaining to a specific location in

order to evade payment of any fines, fees or other charges relating to a prior license or permit for

that location.

      (4) No new license or permit shall be issued for a business at a specific location for

which a license or permit already has been issued unless there is a bona fide, good faith change in

ownership of the business at that location.

      (5) No license or permit shall be issued, renewed or maintained for any person, including

the owners of the business being licensed or having applied and received a permit, that has been

convicted of violating any criminal law relating to tobacco products, the payment of taxes or

fraud or has been ordered to pay civil fines of more than twenty-five thousand dollars ($25,000)

dollars for violations of any civil law relating to tobacco products, the payment of taxes or fraud.

     (6) No license shall be issued, renewed, or maintained if the applicant, or any

combination of entities controlled by or under common control with the applicant, is a health care

facility licensed pursuant to the provisions of chapter 17 of title 23 (“Licensing of Health Care

Facilities”) or maintains a health care facility license pursuant to the provisions of said chapter 17

of title 23 to provide health care services.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TAXATION - CIGARETTE TAX

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     This act would prohibit the granting of a license under chapter 44-20, the “Cigarette

Tax,” to an applicant that is a health care facility or that maintains a health care facility license.

     This act would take effect upon passage.

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