As Passed by the House 1
123rd General Assembly 4
Regular Session Sub. S. B. No. 98 5
1999-2000 6
SENATORS NEIN-GARDNER-LATTA-WHITE-BLESSING-DRAKE-MUMPER- 8
DiDONATO-McLIN-WACHTMANN-SPADA-HERINGTON-ARMBRUSTER- 9
REPRESENTATIVES MOTTLEY-CORBIN-JOLIVETTE-FLANNERY-BRITTON- 10
AMSTUTZ-D.MILLER-TERWILLEGER-BRADING-COUGHLIN-CATES-BARNES- 11
BUEHRER-O'BRIEN-VESPER-MAIER-BOYD-VERICH-HARRIS-HEALY-CALVERT- 12
BATEMAN-HAINES-JONES 13
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A B I L L
To amend sections 5743.11, 5743.111, 5743.17, 15
5743.18, and 5743.99 and to enact section 5743.21 16
of the Revised Code to prohibit the affixing of
tax stamps to certain packages of cigarettes and 17
to declare an emergency.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 19
Section 1. That sections 5743.11, 5743.111, 5743.17, 21
5743.18, and 5743.99 be amended and section 5743.21 of the 22
Revised Code be enacted to read as follows:
Sec. 5743.11. No person shall sell cigarettes without 31
there having been first affixed to each individual package the 32
stamp required by section 5743.03 of the Revised Code OR WITH THE 33
STAMP HAVING BEEN AFFIXED TO THE PACKAGE IN VIOLATION OF SECTION 34
5743.21 OF THE REVISED CODE.
Sec. 5743.111. No person shall have in his possession 43
POSSESS packages of cigarettes not bearing the stamps required by 45
Chapter 5743. of the Revised Code, OR BEARING STAMPS THAT HAVE 46
BEEN AFFIXED IN VIOLATION OF SECTION 5743.21 OF THE REVISED CODE, 47
when the wholesale value of the cigarettes exceeds sixty dollars. 48
Sec. 5743.17. The court of common pleas may enter an order 57
to revoke a wholesale or retail cigarette license held by any 58
2
person convicted of a misdemeanor for any violation of sections 59
5743.01 to 5743.20 5743.21 of the Revised Code. The court of 61
common pleas shall enter an order to revoke a wholesale or retail 62
cigarette license held by any person convicted of a felony for
violation of sections 5743.01 to 5743.20 5743.21 of the Revised 64
Code. The clerk of the court of common pleas shall certify a 66
copy of either of such orders in duplicate to the county auditor 67
and to the tax commissioner, and thereafter such person shall be 68
considered not to have obtained any license; provided that after 69
the expiration of one year from the date of such revocation, such 71
person may apply for such license. 72
Sec. 5743.18. Upon notice and hearing in accordance with 81
sections 119.01 to 119.13, inclusive, of the Revised Code, the 82
tax commissioner may revoke any wholesale or retail cigarette 84
license for violation of sections 5743.01 to 5743.20, inclusive, 85
5743.21 of the Revised Code. A certified copy of the order 86
revoking such license shall be transmitted to the county auditor 87
of the county in which the license was issued. 88
Sec. 5743.21. (A) NO PERSON SHALL AFFIX A STAMP REQUIRED 90
BY SECTION 5743.03 OF THE REVISED CODE TO ANY PACKAGE THAT: 91
(1) BEARS ANY LABEL OR NOTICE PRESCRIBED BY THE UNITED 94
STATES TO IDENTIFY CIGARETTES EXEMPT FROM TAXATION BY THE UNITED 95
STATES PURSUANT TO SECTION 5704(b) OF THE "INTERNAL REVENUE CODE 99
OF 1986," 100 Stat. 2085, 26 U.S.C.A. 5704(b), INCLUDING ANY 102
NOTICE OR LABEL DESCRIBED IN 27 C.F.R. 290.185; 104
(2) IS NOT LABELED IN CONFORMITY WITH THE "FEDERAL 107
CIGARETTE LABELING AND ADVERTISING ACT," 79 STAT. 282, 15 110
U.S.C.A. 1331 (1965), OR ANY OTHER FEDERAL REQUIREMENT FOR THE
PLACEMENT OF LABELS, WARNINGS, OR OTHER INFORMATION APPLICABLE TO 111
PACKAGES OF CIGARETTES INTENDED FOR DOMESTIC CONSUMPTION; 113
(3) HAS BEEN ALTERED BY ANYONE OTHER THAN THE MANUFACTURER 115
OR A PERSON AUTHORIZED BY THE MANUFACTURER, INCLUDING BY THE 116
PLACEMENT OF A STICKER TO COVER INFORMATION ON OR ADD INFORMATION 117
TO THE PACKAGE;
3
(4) HAS BEEN IMPORTED OR BROUGHT INTO THE UNITED STATES 120
AFTER JANUARY 1, 2000, IN VIOLATION OF SECTION 5754 OF THE 121
"INTERNAL REVENUE CODE OF 1986," 100 STAT. 2085, 26 U.S.C.A. 122
5754, OR REGULATIONS ADOPTED UNDER THAT SECTION. 123
(B) WHENEVER THE TAX COMMISSIONER DISCOVERS ANY PACKAGES 125
TO WHICH STAMPS HAVE BEEN AFFIXED IN VIOLATION OF THIS SECTION, 126
THE COMMISSIONER MAY SEIZE THE PACKAGES, WHICH SHALL THEREUPON BE 127
FORFEITED TO THE STATE, AND SHALL ORDER THEIR DESTRUCTION, 128
PROVIDED THAT THE SEIZURE AND DESTRUCTION SHALL NOT EXEMPT ANY 129
PERSON FROM PROSECUTION OR FROM THE FINE OR IMPRISONMENT PROVIDED 130
FOR VIOLATION OF THIS SECTION.
Sec. 5743.99. (A) Whoever violates section 5743.10, 139
5743.11, OR 5743.12, or division (C) of section 5743.54 of the 141
Revised Code is guilty of a misdemeanor of the first degree. If 142
the offender has been previously convicted of an offense under 143
this division, violation is a felony of the fourth degree. 144
(B) Whoever violates section 5743.111, 5743.112, 5743.13, 146
5743.59, or 5743.60 of the Revised Code is guilty of a felony of 147
the fourth degree. If the offender has been previously convicted 148
of an offense under this division, violation is a felony of the 149
second degree. 150
(C) Whoever violates section 5743.41 or 5743.42 of the 152
Revised Code is guilty of a misdemeanor of the fourth degree. If 153
the offender has been previously convicted of an offense under 154
this division, violation is a misdemeanor of the third degree. 155
(D) WHOEVER VIOLATES SECTION 5743.21 OF THE REVISED CODE 157
IS GUILTY OF A MISDEMEANOR OF THE FIRST DEGREE. IF THE OFFENDER 159
HAS BEEN PREVIOUSLY CONVICTED OF AN OFFENSE UNDER THIS DIVISION, 160
VIOLATION IS A FELONY OF THE FIFTH DEGREE.
(E) Whoever violates any provision of this chapter, or any 162
rule promulgated by the tax commissioner under authority of this 163
chapter, for the violation of which no penalty is provided 164
elsewhere, is guilty of a misdemeanor of the fourth degree. 165
(E)(F) In addition to any other penalty imposed upon a 167
4
person convicted of a violation of section 5743.112 or 5743.60 of 168
the Revised Code who was the operator of a motor vehicle used in 169
the violation, the registrar of motor vehicles shall suspend any 170
driver's or commercial driver's license issued to the offender 171
pursuant to the order and determination of the trial judge of any 172
court of record as provided in section 4507.16 of the Revised 173
Code. 174
Section 2. That existing sections 5743.11, 5743.111, 176
5743.17, 5743.18, and 5743.99 of the Revised Code are hereby 177
repealed.
Section 3. This act is hereby declared to be an emergency 179
measure necessary for the immediate preservation of the public 180
peace, health, and safety. The reason for such necessity is that 181
Ohio's legitimate and taxpaying cigarette wholesalers and 182
retailers are being threatened by unfair competition from
gray-market dealers and Ohio's tax collections and payments under 183
the tobacco industry settlement are being threatened with losses 184
to the gray market. Therefore, this act shall go into immediate 185
effect.