As Passed by the Senate 1
123rd General Assembly 4
Regular Session Sub. S. B. No. 98 5
1999-2000 6
SENATORS NEIN-GARDNER-LATTA-WHITE-BLESSING-DRAKE-MUMPER-DiDONATO- 8
McLIN-WACHTMANN-SPADA-HERINGTON-ARMBRUSTER 9
_________________________________________________________________ 11
A B I L L
To amend sections 5743.11, 5743.111, 5743.17, 13
5743.18, and 5743.99 and to enact section 5743.21 14
of the Revised Code to prohibit the affixing of
tax stamps to certain packages of cigarettes and 15
to declare an emergency.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 17
Section 1. That sections 5743.11, 5743.111, 5743.17, 19
5743.18, and 5743.99 be amended and section 5743.21 of the 20
Revised Code be enacted to read as follows:
Sec. 5743.11. No person shall sell cigarettes without 29
there having been first affixed to each individual package the 30
stamp required by section 5743.03 of the Revised Code OR WITH THE 31
STAMP HAVING BEEN AFFIXED TO THE PACKAGE IN VIOLATION OF SECTION 32
5743.21 OF THE REVISED CODE.
Sec. 5743.111. No person shall have in his possession 41
POSSESS packages of cigarettes not bearing the stamps required by 43
Chapter 5743. of the Revised Code, OR BEARING STAMPS THAT HAVE 44
BEEN AFFIXED IN VIOLATION OF SECTION 5743.21 OF THE REVISED CODE, 45
when the wholesale value of the cigarettes exceeds sixty dollars. 46
Sec. 5743.17. The court of common pleas may enter an order 55
to revoke a wholesale or retail cigarette license held by any 56
person convicted of a misdemeanor for any violation of sections 57
5743.01 to 5743.20 5743.21 of the Revised Code. The court of 59
common pleas shall enter an order to revoke a wholesale or retail 60
cigarette license held by any person convicted of a felony for
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violation of sections 5743.01 to 5743.20 5743.21 of the Revised 62
Code. The clerk of the court of common pleas shall certify a 64
copy of either of such orders in duplicate to the county auditor 65
and to the tax commissioner, and thereafter such person shall be 66
considered not to have obtained any license; provided that after 67
the expiration of one year from the date of such revocation, such 69
person may apply for such license. 70
Sec. 5743.18. Upon notice and hearing in accordance with 79
sections 119.01 to 119.13, inclusive, of the Revised Code, the 80
tax commissioner may revoke any wholesale or retail cigarette 82
license for violation of sections 5743.01 to 5743.20, inclusive, 83
5743.21 of the Revised Code. A certified copy of the order 84
revoking such license shall be transmitted to the county auditor 85
of the county in which the license was issued. 86
Sec. 5743.21. (A) NO PERSON SHALL AFFIX A STAMP REQUIRED 88
BY SECTION 5743.03 OF THE REVISED CODE TO ANY PACKAGE THAT: 89
(1) BEARS ANY LABEL OR NOTICE PRESCRIBED BY THE UNITED 92
STATES TO IDENTIFY CIGARETTES EXEMPT FROM TAXATION BY THE UNITED 93
STATES PURSUANT TO SECTION 5704(b) OF THE "INTERNAL REVENUE CODE 97
OF 1986," 100 Stat. 2085, 26 U.S.C.A. 5704(b), INCLUDING ANY 100
NOTICE OR LABEL DESCRIBED IN 27 C.F.R. 290.185; 102
(2) IS NOT LABELED IN CONFORMITY WITH THE "FEDERAL 105
CIGARETTE LABELING AND ADVERTISING ACT," 79 STAT. 282, 15 108
U.S.C.A. 1331 (1965), OR ANY OTHER FEDERAL REQUIREMENT FOR THE
PLACEMENT OF LABELS, WARNINGS, OR OTHER INFORMATION APPLICABLE TO 109
PACKAGES OF CIGARETTES INTENDED FOR DOMESTIC CONSUMPTION; 111
(3) HAS BEEN ALTERED BY ANYONE OTHER THAN THE MANUFACTURER 113
OR A PERSON AUTHORIZED BY THE MANUFACTURER, INCLUDING BY THE 114
PLACEMENT OF A STICKER TO COVER INFORMATION ON OR ADD INFORMATION 115
TO THE PACKAGE;
(4) HAS BEEN IMPORTED OR BROUGHT INTO THE UNITED STATES 118
AFTER JANUARY 1, 2000, IN VIOLATION OF SECTION 5754 OF THE 119
"INTERNAL REVENUE CODE OF 1986," 100 STAT. 2085, 26 U.S.C.A. 120
5754, OR REGULATIONS ADOPTED UNDER THAT SECTION. 121
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(B) WHENEVER THE TAX COMMISSIONER DISCOVERS ANY PACKAGES 123
TO WHICH STAMPS HAVE BEEN AFFIXED IN VIOLATION OF THIS SECTION, 124
THE COMMISSIONER MAY SEIZE THE PACKAGES, WHICH SHALL THEREUPON BE 125
FORFEITED TO THE STATE, AND SHALL ORDER THEIR DESTRUCTION, 126
PROVIDED THAT THE SEIZURE AND DESTRUCTION SHALL NOT EXEMPT ANY 127
PERSON FROM PROSECUTION OR FROM THE FINE OR IMPRISONMENT PROVIDED 128
FOR VIOLATION OF THIS SECTION.
Sec. 5743.99. (A) Whoever violates section 5743.10, 137
5743.11, OR 5743.12, or division (C) of section 5743.54 of the 139
Revised Code is guilty of a misdemeanor of the first degree. If 140
the offender has been previously convicted of an offense under 141
this division, violation is a felony of the fourth degree. 142
(B) Whoever violates section 5743.111, 5743.112, 5743.13, 144
5743.59, or 5743.60 of the Revised Code is guilty of a felony of 145
the fourth degree. If the offender has been previously convicted 146
of an offense under this division, violation is a felony of the 147
second degree. 148
(C) Whoever violates section 5743.41 or 5743.42 of the 150
Revised Code is guilty of a misdemeanor of the fourth degree. If 151
the offender has been previously convicted of an offense under 152
this division, violation is a misdemeanor of the third degree. 153
(D) WHOEVER VIOLATES SECTION 5743.21 OF THE REVISED CODE 155
IS GUILTY OF A MISDEMEANOR OF THE FIRST DEGREE. IF THE OFFENDER 157
HAS BEEN PREVIOUSLY CONVICTED OF AN OFFENSE UNDER THIS DIVISION, 158
VIOLATION IS A FELONY OF THE FIFTH DEGREE.
(E) Whoever violates any provision of this chapter, or any 160
rule promulgated by the tax commissioner under authority of this 161
chapter, for the violation of which no penalty is provided 162
elsewhere, is guilty of a misdemeanor of the fourth degree. 163
(E)(F) In addition to any other penalty imposed upon a 165
person convicted of a violation of section 5743.112 or 5743.60 of 166
the Revised Code who was the operator of a motor vehicle used in 167
the violation, the registrar of motor vehicles shall suspend any 168
driver's or commercial driver's license issued to the offender 169
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pursuant to the order and determination of the trial judge of any 170
court of record as provided in section 4507.16 of the Revised 171
Code. 172
Section 2. That existing sections 5743.11, 5743.111, 174
5743.17, 5743.18, and 5743.99 of the Revised Code are hereby 175
repealed.
Section 3. This act is hereby declared to be an emergency 177
measure necessary for the immediate preservation of the public 178
peace, health, and safety. The reason for such necessity is that 179
Ohio's legitimate and taxpaying cigarette wholesalers and 180
retailers are being threatened by unfair competition from
gray-market dealers and Ohio's tax collections and payments under 181
the tobacco industry settlement are being threatened with losses 182
to the gray market. Therefore, this act shall go into immediate 183
effect.