Chapter 335

2009 -- S 0408 AS AMENDED

Enacted 11/13/09

 

A N A C T

RELATING TO TAXATION - CIGARETTE TAX     

     

     Introduced By: Senators Pichardo, Sosnowski, Gallo, Crowley, and Doyle

     Date Introduced: February 12, 2009

 

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, in the aggregate, more than ten percent (10%) of the ownership interests in the

applicant:

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

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

(2) years;

      (c)(3) Has been convicted of a crime relating to cigarettes stolen or counterfeit cigarettes;

      (d)(4) 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;

      (e)(5) Has imported, or caused to be imported, into the United States any cigarette in

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

      (f)(6) 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

changes 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.

 

     SECTION 2. This act shall take effect upon passage.

     

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LC01740

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