Internet Tobacco Sales Enforcement Act - Amends the Jenkins Act to require each person who engages in an interstate sale of cigarettes or smokeless tobacco or in an interstate distribution of cigarettes or smokeless tobacco to comply with all the excise, sales, and use tax laws applicable to the sale or other transfer of cigarettes or smokeless tobacco in the State and place in which the cigarettes or smokeless tobacco are delivered.
Prohibits the cigarettes or smokeless tobacco from being delivered to the buyer unless in advance of the delivery the excise tax has been paid and any required stamps or other indicia that such tax has been paid are properly affixed or applied, with an exception.
Authorizes a State Attorney General to bring a civil action to obtain any appropriate relief, including money damages where appropriate, against any person who violates such prohibition or who knowingly assists or participates in such a violation. Expresses the sense of Congress that any State Attorney General who commences such a civil action should inform the U.S. Attorney General who should make information about the case publicly available. Authorizes civil penalties for violations. Eliminates the $1,000 criminal penalty limitation.
Declares that the Act does not limit the remedies provided by State or Federal law with respect to alleged violations relating to a sale or distribution of cigarettes or smokeless tobacco in connection with an interstate sale or distribution of cigarettes or smokeless tobacco.
[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2824 Introduced in House (IH)]
108th CONGRESS
1st Session
H. R. 2824
To revise and reform the Act commonly called the Jenkins Act, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 23, 2003
Mr. Green of Wisconsin (for himself, Mr. Meehan, Ms. Pryce of Ohio, Mr.
Feeney, Mr. Pence, Ms. Lofgren, Ms. Baldwin, Mr. Weiner, Mr. Isakson,
Mr. Conyers, Mr. Shuster, Mr. Carter, and Mrs. Blackburn) introduced
the following bill; which was referred to the Committee on the
Judiciary
_______________________________________________________________________
A BILL
To revise and reform the Act commonly called the Jenkins Act, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Internet Tobacco Sales Enforcement
Act''.
SEC. 2. REVISION OF ACT OF OCTOBER 19, 1949.
The Act of October 19, 1949, entitled ``An Act to assist States in
collecting sales and use taxes on cigarettes'' (15 U.S.C. 375 et seq.)
is amended by striking ``That for the purposes of this Act'' and all
that follows through the end of the Act and inserting the following:
``SECTION 1. SHORT TITLE.
``This Act may be cited as the `Jenkins Act'.
``SEC. 2. INTERSTATE SALES OF CIGARETTES AND SMOKELESS TOBACCO.
``(a) Compliance With Laws.--
``(1) Each person who engages in an interstate sale of
cigarettes or smokeless tobacco or in an interstate
distribution of cigarettes or smokeless tobacco shall comply
with all the excise, sales, and use tax laws applicable to the
sale or other transfer of cigarettes or smokeless tobacco in
the State and place in which the cigarettes or smokeless
tobacco are delivered as though the person were physically
located in that State or place.
``(2) Unless the law of the State and place in which
cigarettes or smokeless tobacco are delivered pursuant to an
interstate sale requires otherwise for the payment of an excise
tax imposed on that sale, the cigarettes or smokeless tobacco
may not be delivered to the buyer unless in advance of the
delivery--
``(A) the excise tax has been paid; and
``(B) any required stamps or other indicia that the
excise tax has been paid are properly affixed or
applied to the cigarettes or smokeless tobacco.
``(3)(A) Each State may compile a list of interstate
sellers of cigarettes or smokeless tobacco who are in
compliance with this Act with respect to that State. If a State
posts a list pursuant to this subsection, no person may
knowingly make an interstate distribution of cigarettes or
smokeless tobacco into that State other than to a person
engaged in the business of manufacturing, distributing or
selling cigarettes or smokeless tobacco unless the person
initiating or ordering the delivery is on the list at the time
of delivery.
``(B) Each State may also compile a list of interstate
sellers of cigarettes or smokeless tobacco who are not in
compliance with this Act with respect to that State. If a State
posts a list pursuant to this subsection, no person make an
interstate distribution of any item into that State for a
person on the list unless--
``(i) the person in good faith determines that the
item does not include cigarettes or smokeless tobacco;
or
``(ii) the delivery is made to a person engaged in
the business of manufacturing, distributing or selling
cigarettes or smokeless tobacco.
``(b) Recordkeeping and Reporting.--Each person who engages in an
interstate sale of cigarettes or smokeless tobacco, or who advertises,
or offers to engage in, such a sale, shall--
``(1) first file with the tobacco tax administrator of the
State and place in which the cigarettes or smokeless tobacco
are to be offered, advertised, or delivered, a statement
setting forth the person's name and trade name (if any), and
the address of that person's principal place of business and
any other place of business, as well as telephone numbers for
each place of business, a principal electronic mail address,
any website addresses, and the name, address and telephone
number of an agent authorized to accept service on behalf of
that person;
``(2) not later than the 10th day of each calendar month,
file with that tobacco tax administrator a memorandum or copy
of the invoice covering each and every interstate sale of
cigarettes or smokeless tobacco by the filer into that State or
place, and each interstate distribution of cigarettes or
smokeless tobacco pursuant to that sale, during the previous
calendar month, and such memorandum or invoice shall include
the name and address of the person to whom the cigarettes or
smokeless tobacco are delivered, the brand, and the type, the
quantity delivered, and the name, address, and phone number of
the person delivering; and
``(3) maintain records, including the information specified
in paragraph (2), for not less than 5 years after the date of
an interstate sale of cigarettes or smokeless tobacco and of
each interstate distribution of cigarettes or smokeless tobacco
pursuant to that sale, and make those records available for
inspection upon the lawful demand of the Attorney General of
the United States, an Attorney General of a State, the
Commissioner of Internal Revenue, or the chief tax collection
official of a State.
``(c) Deeming Rule.--For the purposes of this section--
``(1) an interstate sale or delivery of cigarettes or
smokeless tobacco shall be deemed to have occurred in the State
and place where the buyer obtains personal possession of the
cigarettes or smokeless tobacco; and
``(2) a delivery pursuant to an interstate sale is deemed
to have been initiated or ordered by the seller.
``SEC. 3. CIVIL ACTION.
``(a) In General.--In addition to any other remedies available
under other Federal or State or local law, the Attorney General of a
State may in a civil action obtain any appropriate relief, including
money damages where appropriate, against--
``(1) any person who violates, or is about to engage in a
violation of, section 2; or
``(2) any person who knowingly assists or participates, or
knowingly is about to engage, in such a violation.
``(b) Notice.--It is the sense of Congress that, if the Attorney
General of a State commences a civil action under subsection (a), that
Attorney General should inform the Attorney General of the United
States, and that the Attorney General of the United States should make
information about the case publicly available, through posting the
information on the Internet and through other means.
``SEC. 4. CIVIL PENALTY.
``Whoever violates section 2 is subject to a civil penalty not to
exceed $5,000 in the case of a first violation, and not to exceed
$10,000 in any other case.
``SEC. 5. CRIMINAL PENALTY.
``Whoever violates section 2 shall be fined under title 18, United
States Code, or imprisoned not more than 6 months, or both.
``SEC. 6. NONPREEMPTION.
``This Act does not limit the remedies provided by State or Federal
law with respect to alleged violations of State or Federal law relating
to a sale or distribution of cigarettes or smokeless tobacco, in
connection with an interstate sale or distribution of cigarettes or
smokeless tobacco.
``SEC. 7. DEFINITIONS.
``As used in this Act--
``(1) the term `Attorney General', with respect to a State,
means the chief law enforcement officer of that State, or the
designee of that officer;
``(2) the term `cigarette' means--
``(A) any roll of tobacco wrapped in paper or in
any substance not containing tobacco which is to be
burned;
``(B) any roll of tobacco wrapped in any substance
containing tobacco that, because of its appearance, the
type of tobacco used in the filler, or its packaging or
labeling is likely to be offered to, or purchased by
consumers as a cigarette described in subparagraph (A);
``(C) any roll of tobacco wrapped in any substance
that because of its appearance, the type of tobacco
used in the filler, or its packaging or labeling is
likely to be offered to, or purchased by consumers as a
cigarette; or
``(D) loose rolling tobacco that, because of its
appearance, type, packaging, or labeling, is likely to
be offered to, or purchased by, consumers as tobacco
for making cigarettes;
``(3) the term `smokeless tobacco' has the meaning given
that term in section 9 of the Comprehensive Smokeless Tobacco
Health Education Act of 1986 (15 U.S.C. 4408);
``(4) the term `interstate sale of cigarettes or smokeless
tobacco' means any sale of cigarettes or smokeless tobacco in
interstate or foreign commerce to a person, other than a person
licensed as a distributor in the State where the cigarettes or
smokeless tobacco is delivered, in which the buyer is either
not in the seller's physical presence at the time the request
for purchase is made or not in the seller's physical presence
at the time the buyer obtains personal possession of the
cigarettes or smokeless tobacco;
``(5) the term `interstate or foreign commerce' means
commerce between a State and any place outside that State,
commerce between a State and any Indian lands in that State, or
commerce between points in the same State but through any place
outside that State;
``(6) the term `interstate distribution of cigarettes or
smokeless tobacco' means a delivery or other distribution of
cigarettes or smokeless tobacco pursuant to an interstate sale
of cigarettes or smokeless tobacco;
``(7) the term `State' means a State of the United States,
the District of Columbia, the Commonwealth of Puerto Rico, or
any territory or possession of the United States;
``(8) the term `person' means an individual, a corporation,
company, association, firm, partnership, society, joint stock
company, an Indian tribal organization, or an Indian tribal
government;
``(9) the term `tribal organization' has the meaning given
that term in section 4 of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 450b); and
``(10) the term `Indian lands' has the meaning given that
term in section 3 of the Archaeological Resources Protection
Act of 1979 (16 U.S.C. 470bb).''.
SEC. 3. EFFECTIVE DATE.
The amendment made by this Act shall take effect on the first day
of the first month beginning on or after 60 days after the date of the
enactment of this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on the Judiciary.
Referred to the Subcommittee on Courts, the Internet, and Intellectual Property.
Subcommittee Consideration and Mark-up Session Held.
Forwarded by Subcommittee to Full Committee (Amended) by Voice Vote.
Committee Consideration and Mark-up Session Held.
Ordered to be Reported (Amended) by Voice Vote.
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