As Reported by the Senate Ways and Means Committee 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
_________________________________________________________________ 10
A B I L L
To amend sections 5743.11, 5743.111, 5743.17, 12
5743.18, and 5743.99 and to enact section 5743.21 13
of the Revised Code to prohibit the affixing of
tax stamps to certain packages of cigarettes and 14
to declare an emergency.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 16
Section 1. That sections 5743.11, 5743.111, 5743.17, 18
5743.18, and 5743.99 be amended and section 5743.21 of the 19
Revised Code be enacted to read as follows:
Sec. 5743.11. No person shall sell cigarettes without 28
there having been first affixed to each individual package the 29
stamp required by section 5743.03 of the Revised Code OR WITH THE 30
STAMP HAVING BEEN AFFIXED TO THE PACKAGE IN VIOLATION OF SECTION 31
5743.21 OF THE REVISED CODE.
Sec. 5743.111. No person shall have in his possession 40
POSSESS packages of cigarettes not bearing the stamps required by 42
Chapter 5743. of the Revised Code, OR BEARING STAMPS THAT HAVE 43
BEEN AFFIXED IN VIOLATION OF SECTION 5743.21 OF THE REVISED CODE, 44
when the wholesale value of the cigarettes exceeds sixty dollars. 45
Sec. 5743.17. The court of common pleas may enter an order 54
to revoke a wholesale or retail cigarette license held by any 55
person convicted of a misdemeanor for any violation of sections 56
5743.01 to 5743.20 5743.21 of the Revised Code. The court of 58
common pleas shall enter an order to revoke a wholesale or retail 59
cigarette license held by any person convicted of a felony for
violation of sections 5743.01 to 5743.20 5743.21 of the Revised 61
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Code. The clerk of the court of common pleas shall certify a 63
copy of either of such orders in duplicate to the county auditor 64
and to the tax commissioner, and thereafter such person shall be 65
considered not to have obtained any license; provided that after 66
the expiration of one year from the date of such revocation, such 68
person may apply for such license. 69
Sec. 5743.18. Upon notice and hearing in accordance with 78
sections 119.01 to 119.13, inclusive, of the Revised Code, the 79
tax commissioner may revoke any wholesale or retail cigarette 81
license for violation of sections 5743.01 to 5743.20, inclusive, 82
5743.21 of the Revised Code. A certified copy of the order 83
revoking such license shall be transmitted to the county auditor 84
of the county in which the license was issued. 85
Sec. 5743.21. (A) NO PERSON SHALL AFFIX A STAMP REQUIRED 87
BY SECTION 5743.03 OF THE REVISED CODE TO ANY PACKAGE THAT: 88
(1) BEARS ANY LABEL OR NOTICE PRESCRIBED BY THE UNITED 91
STATES TO IDENTIFY CIGARETTES EXEMPT FROM TAXATION BY THE UNITED 92
STATES PURSUANT TO SECTION 5704(b) OF THE "INTERNAL REVENUE CODE 96
OF 1986," 100 Stat. 2085, 26 U.S.C.A. 5704(b), INCLUDING ANY 99
NOTICE OR LABEL DESCRIBED IN 27 C.F.R. 290.185; 101
(2) IS NOT LABELED IN CONFORMITY WITH THE "FEDERAL 104
CIGARETTE LABELING AND ADVERTISING ACT," 79 STAT. 282, 15 107
U.S.C.A. 1331 (1965), OR ANY OTHER FEDERAL REQUIREMENT FOR THE
PLACEMENT OF LABELS, WARNINGS, OR OTHER INFORMATION APPLICABLE TO 108
PACKAGES OF CIGARETTES INTENDED FOR DOMESTIC CONSUMPTION; 110
(3) HAS BEEN ALTERED BY ANYONE OTHER THAN THE MANUFACTURER 112
OR A PERSON AUTHORIZED BY THE MANUFACTURER, INCLUDING BY THE 113
PLACEMENT OF A STICKER TO COVER INFORMATION ON OR ADD INFORMATION 114
TO THE PACKAGE;
(4) HAS BEEN IMPORTED OR BROUGHT INTO THE UNITED STATES 117
AFTER JANUARY 1, 2000, IN VIOLATION OF SECTION 5754 OF THE 118
"INTERNAL REVENUE CODE OF 1986," 100 STAT. 2085, 26 U.S.C.A. 119
5754, OR REGULATIONS ADOPTED UNDER THAT SECTION. 120
(B) WHENEVER THE TAX COMMISSIONER DISCOVERS ANY PACKAGES 122
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TO WHICH STAMPS HAVE BEEN AFFIXED IN VIOLATION OF THIS SECTION, 123
THE COMMISSIONER MAY SEIZE THE PACKAGES, WHICH SHALL THEREUPON BE 124
FORFEITED TO THE STATE, AND SHALL ORDER THEIR DESTRUCTION, 125
PROVIDED THAT THE SEIZURE AND DESTRUCTION SHALL NOT EXEMPT ANY 126
PERSON FROM PROSECUTION OR FROM THE FINE OR IMPRISONMENT PROVIDED 127
FOR VIOLATION OF THIS SECTION.
Sec. 5743.99. (A) Whoever violates section 5743.10, 136
5743.11, OR 5743.12, or division (C) of section 5743.54 of the 138
Revised Code is guilty of a misdemeanor of the first degree. If 139
the offender has been previously convicted of an offense under 140
this division, violation is a felony of the fourth degree. 141
(B) Whoever violates section 5743.111, 5743.112, 5743.13, 143
5743.59, or 5743.60 of the Revised Code is guilty of a felony of 144
the fourth degree. If the offender has been previously convicted 145
of an offense under this division, violation is a felony of the 146
second degree. 147
(C) Whoever violates section 5743.41 or 5743.42 of the 149
Revised Code is guilty of a misdemeanor of the fourth degree. If 150
the offender has been previously convicted of an offense under 151
this division, violation is a misdemeanor of the third degree. 152
(D) WHOEVER VIOLATES SECTION 5743.21 OF THE REVISED CODE 154
IS GUILTY OF A MISDEMEANOR OF THE FIRST DEGREE. IF THE OFFENDER 156
HAS BEEN PREVIOUSLY CONVICTED OF AN OFFENSE UNDER THIS DIVISION, 157
VIOLATION IS A FELONY OF THE FIFTH DEGREE.
(E) Whoever violates any provision of this chapter, or any 159
rule promulgated by the tax commissioner under authority of this 160
chapter, for the violation of which no penalty is provided 161
elsewhere, is guilty of a misdemeanor of the fourth degree. 162
(E)(F) In addition to any other penalty imposed upon a 164
person convicted of a violation of section 5743.112 or 5743.60 of 165
the Revised Code who was the operator of a motor vehicle used in 166
the violation, the registrar of motor vehicles shall suspend any 167
driver's or commercial driver's license issued to the offender 168
pursuant to the order and determination of the trial judge of any 169
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court of record as provided in section 4507.16 of the Revised 170
Code. 171
Section 2. That existing sections 5743.11, 5743.111, 173
5743.17, 5743.18, and 5743.99 of the Revised Code are hereby 174
repealed.
Section 3. This act is hereby declared to be an emergency 176
measure necessary for the immediate preservation of the public 177
peace, health, and safety. The reason for such necessity is that 178
Ohio's legitimate and taxpaying cigarette wholesalers and 179
retailers are being threatened by unfair competition from
gray-market dealers and Ohio's tax collections and payments under 180
the tobacco industry settlement are being threatened with losses 181
to the gray market. Therefore, this act shall go into immediate 182
effect.