Minnesota Legislature
SF 3055
as introduced - 86th Legislature (2009 - 2010) Posted on 03/04/2010 03:23pm
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A bill for an act
relating to tobacco; tobacco control and preventing tobacco use; modernizing
definitions of cigarette, tobacco, tobacco products, and tobacco-related devices;
modifying promotional and self-service distribution rules; subjecting sale of
tobacco related devices to municipal licensing; proposing a study; appropriating
money; amending Minnesota Statutes 2008, sections 297F.01, subdivisions 3,
19; 299F.850, subdivision 3; 325D.32, subdivision 2; 325F.77, subdivision 4;
461.12, subdivisions 1, 2, 3, 4, 5, 6; 609.685, subdivision 1.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. new text begin CITATION.
new text end
new text begin
This act may be cited as the Tobacco Modernization and Compliance Act of 2010.
new text end
Sec. 2.
Minnesota Statutes 2008, section 297F.01, subdivision 3, is amended to read:
Subd. 3.
Cigarette.
"Cigarette" means any roll for smoking made wholly or in
part of tobaccodeleted text begin ,deleted text end new text begin :
new text end
new text begin (1)new text end the wrapper or cover of which is made of paper or another substance or material
except tobaccodeleted text begin .deleted text end new text begin ; or
new text end
new text begin
(2) wrapped in any substance weighing 4.5 pounds or less per thousand; or
new text end
new text begin
(3) wrapped in any substance, however labeled or named, which because of its
appearance, size, the type of tobacco used in the filler, or its packaging, pricing, marketing,
or labeling, is likely to be offered to, purchased by, or consumed by consumers as a
cigarette, as defined in clause (1) or (2).
new text end
Sec. 3.
Minnesota Statutes 2008, section 297F.01, subdivision 19, is amended to read:
Subd. 19.
Tobacco products.
"Tobacco products" meansnew text begin any product containing,
made, or derived from tobacco that is intended for human consumption, whether chewed,
smoked, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by any other means,
or any component, part, or accessory of a tobacco product, including, but not limited
to,new text end cigars; deleted text begin little cigars;deleted text end cheroots; stogies; periques; granulated, plug cut, crimp cut,
ready rubbed, and other smoking tobacco; snuff; snuff flour; cavendish; plug and twist
tobacco; fine-cut and other chewing tobacco; shorts; refuse scraps, clippings, cuttings and
sweepings of tobacco, and other kinds and forms of tobaccodeleted text begin , prepared in such manner
as to be suitable for chewing or smoking in a pipe or otherwise, or both for chewing and
smokingdeleted text end ; but does not include cigarettes as defined in this section.new text begin Tobacco products
excludes any tobacco product that has been approved by the United States Food and
Drug Administration for sale as a tobacco cessation product, as a tobacco dependence
product, or for other medical purposes, and is being marketed and sold solely for such an
approved purpose.
new text end
Sec. 4.
Minnesota Statutes 2008, section 299F.850, subdivision 3, is amended to read:
Subd. 3.
Cigarette.
"Cigarette" means any roll for smoking made wholly or in
part of tobaccodeleted text begin ,deleted text end new text begin :
new text end
new text begin (1)new text end the wrapper or cover of which is made of paper or any other substance or
material except tobaccodeleted text begin .deleted text end new text begin ; or
new text end
new text begin
(2) wrapped in any substance weighing 4.5 pounds or less per thousand; or
new text end
new text begin
(3) wrapped in any substance, however labeled or named, which because of its
appearance, size, the type of tobacco used in the filler, or its packaging, pricing, marketing,
or labeling, is likely to be offered to, purchased by, or consumed by consumers as a
cigarette, as defined in clause (1) or (2).
new text end
Sec. 5.
Minnesota Statutes 2008, section 325D.32, subdivision 2, is amended to read:
Subd. 2.
Cigarettes.
"Cigarettes" means and includes any roll for smoking, made
wholly or in part of tobacco, irrespective of size and shape and whether or not such
tobacco is flavored, adulterated or mixed with any other ingredientdeleted text begin ,deleted text end new text begin :new text end
new text begin (1) new text end the wrapper or cover of which is made of paper or any other substance or
material except tobaccodeleted text begin .deleted text end new text begin ; or
new text end
new text begin
(2) wrapped in any substance weighing 4.5 pounds or less per thousand; or
new text end
new text begin
(3) wrapped in any substance, however labeled or named, which because of its
appearance, size, the type of tobacco used in the filler, or its packaging, pricing, marketing,
or labeling, is likely to be offered to, purchased by, or consumed by consumers as a
cigarette, as defined in clause (1) or (2).
new text end
Sec. 6.
Minnesota Statutes 2008, section 325F.77, subdivision 4, is amended to read:
Subd. 4.
Prohibition.
No person shall distribute smokeless tobacco products or
cigarettes, cigars, pipe tobacco, or other tobacco products deleted text begin suitable for smokingdeleted text end new text begin , as defined
in section 297F.01, subdivision 19new text end , except that single serving samples of tobacco may
be distributed in tobacco stores.
Sec. 7.
Minnesota Statutes 2008, section 461.12, subdivision 1, is amended to read:
Subdivision 1.
Authorization.
A town board or the governing body of a home
rule charter or statutory city may license and regulate the retail sale of tobacconew text begin and
tobacco-related devicesnew text end as defined in section 609.685, subdivision 1, and establish a
license fee for sales to recover the estimated cost of enforcing this chapter. The county
board shall license and regulate the sale of tobacconew text begin and tobacco-related devicesnew text end in
unorganized territory of the county and in a town or a home rule charter or statutory city if
the town or city does not license and regulate retail tobacco sales. Retail establishments
licensed by a town or city to sell tobacco are not required to obtain a second license for the
same location under the licensing ordinance of the county.
Sec. 8.
Minnesota Statutes 2008, section 461.12, subdivision 2, is amended to read:
Subd. 2.
Administrative penalties; licensees.
If a licensee or employee of a
licensee sells tobacconew text begin or tobacco-related devicesnew text end to a person under the age of 18 years, or
violates any other provision of this chapter, the licensee shall be charged an administrative
penalty of $75. An administrative penalty of $200 must be imposed for a second violation
at the same location within 24 months after the initial violation. For a third violation at the
same location within 24 months after the initial violation, an administrative penalty of
$250 must be imposed, and the licensee's authority to sell tobacco at that location must be
suspended for not less than seven days. No suspension or penalty may take effect until the
licensee has received notice, served personally or by mail, of the alleged violation and an
opportunity for a hearing before a person authorized by the licensing authority to conduct
the hearing. A decision that a violation has occurred must be in writing.
Sec. 9.
Minnesota Statutes 2008, section 461.12, subdivision 3, is amended to read:
Subd. 3.
Administrative penalty; individuals.
An individual who sells tobacconew text begin
or tobacco-related devicesnew text end to a person under the age of 18 years must be charged an
administrative penalty of $50. No penalty may be imposed until the individual has
received notice, served personally or by mail, of the alleged violation and an opportunity
for a hearing before a person authorized by the licensing authority to conduct the hearing.
A decision that a violation has occurred must be in writing.
Sec. 10.
Minnesota Statutes 2008, section 461.12, subdivision 4, is amended to read:
Subd. 4.
Minors.
The licensing authority shall consult with interested educators,
parents, children, and representatives of the court system to develop alternative penalties
for minors who purchase, possess, and consume tobacconew text begin or tobacco-related devicesnew text end .
The licensing authority and the interested persons shall consider a variety of options,
including, but not limited to, tobacco free education programs, notice to schools, parents,
community service, and other court diversion programs.
Sec. 11.
Minnesota Statutes 2008, section 461.12, subdivision 5, is amended to read:
Subd. 5.
Compliance checks.
A licensing authority shall conduct unannounced
compliance checks at least once each calendar year at each location where tobacco is sold
to test compliance with section 609.685. Compliance checks must involve minors over
the age of 15, but under the age of 18, who, with the prior written consent of a parent
or guardian, attempt to purchase tobacconew text begin or tobacco-related devicesnew text end under the direct
supervision of a law enforcement officer or an employee of the licensing authority.
Sec. 12.
Minnesota Statutes 2008, section 461.12, subdivision 6, is amended to read:
Subd. 6.
Defense.
It is an affirmative defense to the charge of selling tobacconew text begin or
tobacco-related devicesnew text end to a person under the age of 18 years in violation of subdivision 2
or 3 that the licensee or individual making the sale relied in good faith upon proof of age
as described in section 340A.503, subdivision 6.
Sec. 13.
Minnesota Statutes 2008, section 609.685, subdivision 1, is amended to read:
Subdivision 1.
Definitions.
For the purposes of this section, the following terms
shall have the meanings respectively ascribed to them in this section.
(a) "Tobacco" means cigarettesnew text begin and any product containing, made, or derived from
tobacco that is intended for human consumption, whether chewed, smoked, absorbed,
dissolved, inhaled, snorted, sniffed, or ingested by any other means, or any component,
part, or accessory of a tobacco product, including, but not limited to, electronic cigarettesnew text end ;
cigars; cheroots; stogies; perique; granulated, plug cut, crimp cut, ready rubbed, and other
smoking tobacco; snuff; snuff flour; cavendish; plug and twist tobacco; fine cut and other
chewing tobaccos; shorts; refuse scraps, clippings, cuttings and sweepings of tobacco; and
other kinds and forms of tobaccodeleted text begin , prepared in such manner as to be suitable for chewing
or smoking in a pipe or other tobacco-related devicesdeleted text end new text begin . Tobacco excludes any tobacco
product that has been approved by the United States Food and Drug Administration for
sale as a tobacco cessation product, as a tobacco dependence product, or for other medical
purposes, and is being marketed and sold solely for such an approved purposenew text end .
(b) "Tobacco-related devices" means cigarette papers or pipes for smokingnew text begin or
electronic cigarettes or any components, parts, or accessories of electronic cigarettes,
including cartridgesnew text end .
new text begin
(c) "Electronic cigarettes" means any electronic oral devices which provide vapor
of nicotine or any other substances in any manner or in any form to an individual user,
the use or inhalation of which simulates smoking. This term includes any components,
parts, or accessories of electronic cigarettes, including cartridges, whether manufactured,
distributed, marketed, or sold as an e-cigarette, as an e-pipe, or under any other product
name or descriptor.
new text end
Sec. 14. new text begin TOBACCO TAX COLLECTION REPORT.
new text end
new text begin Subdivision 1. new text end
new text begin Report to legislature. new text end
new text begin
(a) The commissioner of revenue shall report
to the 2011 legislature on the tobacco tax collection system, including recommendations
that will improve compliance under the excise tax for both cigarettes and other tobacco
products. The purpose of the report is to provide information and guidance to the
legislature on improvements to the tobacco tax collection system that will:
new text end
new text begin
(1) provide a unified system of collecting both the cigarette and other tobacco
products taxes, regardless of category, size, or shape, that ensures the highest reasonable
rates of tax collection;
new text end
new text begin
(2) discourage tax evasion; and
new text end
new text begin
(3) help to prevent illegal sale of tobacco products, which may make these products
more accessible to youth.
new text end
new text begin
(b) In the report, the commissioner shall:
new text end
new text begin
(1) provide a detailed review of the present excise tax collection and compliance
system as it applies to both cigarettes and other tobacco products. This must include
an assessment of the levels of compliance for each category of products and the effect
of the stamping requirement on compliance rates for cigarettes relative to other tobacco
products. It also must identify any weaknesses in the system;
new text end
new text begin
(2) survey the methods of collection and enforcement used by other states or nations,
including identifying and discussing emerging best practices that ensure tracking of both
cigarettes and other tobacco products and result in the highest rates of tax collection and
compliance. These best practices must consider high-technology alternatives, such as use
of bar codes, radio-frequency identification tags, or similar mechanisms for tracking
compliance;
new text end
new text begin
(3) evaluate the adequacy and effectiveness of the existing penalties and other
sanctions for noncompliance;
new text end
new text begin
(4) evaluate the adequacy of the resources allocated by the state to enforce the
tobacco tax and prevention laws; and
new text end
new text begin
(5) make recommendations on implementation of a comprehensive tobacco tax
collection system for Minnesota that can be implemented by January 1, 2013, including:
new text end
new text begin
(i) recommendations on the specific steps needed to institute and implement the new
system, including estimates of the state's costs of doing so and any additional personnel
requirements;
new text end
new text begin
(ii) recommendations on methods to recover the cost of implementing the system
from the industry;
new text end
new text begin
(iii) evaluation of the extent to which the proposed system is sufficiently flexible
and adaptable to adjust to modifications in the construction, packaging, formatting, and
marketing of tobacco products by the industry; and
new text end
new text begin
(iv) recommendations to modify existing penalties or to impose new penalties or
other sanctions to ensure compliance with the system.
new text end
new text begin Subd. 2. new text end
new text begin Due date. new text end
new text begin
The report required by subdivision 1 is due January 15, 2011.
new text end
new text begin Subd. 3. new text end
new text begin Procedure. new text end
new text begin
The report required under this section must be made in
the manner provided under section 3.195. In addition, copies must be provided to the
chairs and ranking minority members of the legislative committees and divisions with
jurisdiction over taxation.
new text end
new text begin Subd. 4. new text end
new text begin Appropriation. new text end
new text begin
(a) $....... is appropriated from the general fund to the
commissioner of revenue for fiscal year 2011 for the cost of preparing the report under
subdivision 1.
new text end
new text begin
(b) The appropriation under this subdivision is a onetime appropriation and is not
included in the base budget.
new text end