(REPRINTED WITH ADOPTED AMENDMENTS)

 

Senate Bill No. 527–Committee on Taxation

 

March 26, 2001

____________

 

Referred to Committee on Taxation

 

SUMMARY—Revises provisions governing contraband cigarettes, licensing and taxation of cigarette dealers and enforcement of statutes regarding cigarettes. (BDR 32‑1326)

 

FISCAL NOTE:    Effect on Local Government: No.

                                 Effect on the State: Yes.

 

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to cigarettes; exempting duty-free sales enterprises and persons importing cigarettes for personal use from provisions governing the licensing of cigarette dealers and the taxation of cigarettes; providing that cigarette revenue stamps must identify the dealer who affixed the stamps; requiring certain dealers to file certificates regarding cigarettes imported into the United States; expanding the definition of contraband cigarettes; expanding the scope of prohibited activities with regard to contraband cigarettes; requiring certain contraband cigarettes to be confiscated and destroyed; providing for a private right of action for injunctive relief regarding a violation of chapter 370A of NRS; providing a penalty; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

   Section 1. NRS 370.025 is hereby amended to read as follows:

   370.025  “Contraband cigarettes” means any cigarettes :

   1.  Acquired, sold, held, owned, possessed, constructively possessed, transported, exported from or imported into this state by any person in violation of [any of the provisions of this chapter or which] a state or federal law; or

   2.  Which are, in any way, held in the possession or constructive possession of any person not authorized under this chapter to possess or constructively possess these cigarettes.

1-1    Sec. 2. NRS 370.070 is hereby amended to read as follows:

1-2    370.070  The provisions of NRS 370.001 to 370.430, inclusive, do not

1-3  apply to [common] :

1-4    1.  Common carriers while engaged in interstate commerce which sell

1-5  or furnish cigarettes on their trains, buses or airplanes[.] ;

2-1    2.  A person entering this state with a quantity of cigarettes for

2-2  household or personal use which is exempt from federal import duty; and

2-3    3.  A duty-free sales enterprise as defined in 19 U.S.C. §

2-4  1555(b)(8)(D) that:

2-5    (a) Operates pursuant to the provisions of 19 U.S.C. § 1555(b); and

2-6    (b) To the extent it sells cigarettes, only sells cigarettes that are duty-

2-7  free merchandise as defined in 19 U.S.C. § 1555(b)(8)(E).

2-8    Sec. 3.  NRS 370.180 is hereby amended to read as follows:

2-9    370.180  1.  The department shall:

2-10    (a) Design [a suitable stamp or] suitable stamps for the purpose of this

2-11  chapter[.] which meet the requirements of this section; and

2-12    (b) From time to time, have as many revenue stamps printed as may be

2-13  required.

2-14    2.  Each stamp must be designed to permit the identification of the

2-15  dealer who affixed the stamp to a package or other container of

2-16  cigarettes. The dealer must be identified by a number or other mark on

2-17  the stamp. The department shall maintain, for not less than 3 years after

2-18  the date the stamp is provided to the dealer, a record of the information

2-19  necessary to identify the dealer by examining the stamp. Upon request,

2-20  the department shall provide to any person the information maintained

2-21  pursuant to this subsection.

2-22    3.  The use of a metered stamping machine approved by and registered

2-23  with the department shall be subject to such regulations as prescribed by

2-24  the department.

2-25    Sec. 4.  NRS 370.240 is hereby amended to read as follows:

2-26    370.240  1.  Each dealer authorized to purchase or affix cigarette

2-27  revenue stamps shall report to the department:

2-28    (a) The inventory of all cigarettes in his possession or control at the

2-29  close of business on the last day of each month.

2-30    (b) The total value of all cigarette revenue stamps affixed by him upon

2-31  cigarette packages sold in or shipped into the state by him during the

2-32  preceding month.

2-33    2.  The report must be made by the 25th day of the month following

2-34  shipments upon forms to be provided by the department.

2-35    3.  The dealer may be allowed 5 additional days to file his report, if he

2-36  makes prior written application to the department and the department finds

2-37  good cause for extension.

2-38    4.  If, during the preceding month, the dealer affixed cigarette

2-39  revenue stamps upon cigarette packages imported into the United States,

2-40  he shall file with the report a copy of each certificate submitted pursuant

2-41  to 19 U.S.C. § 1681a(c) with regard to the cigarette packages.

2-42    Sec. 5. NRS 370.410 is hereby amended to read as follows:

2-43    370.410  Any person acquiring, selling, holding, owning,

2-44  transporting, exporting, importing, possessing or constructively possessing

2-45  contraband cigarettes is guilty of a gross misdemeanor.

2-46    Sec. 6. NRS 370.415 is hereby amended to read as follows:

2-47    370.415  [The] Except as otherwise provided in subsection 4 of NRS

2-48  370.270, the department, its agents, sheriffs within their respective

2-49  counties and all other peace officers of the State of Nevada shall seize ,

3-1  confiscate and destroy any contraband cigarettes found or located in the

3-2  State of Nevada.

3-3    Sec. 7. Chapter 370A of NRS is hereby amended by adding thereto a

3-4  new section to read as follows:

3-5    1.  Except as otherwise provided in subsection 2, a person may

3-6  institute a civil action in a court of competent jurisdiction for appropriate

3-7  injunctive relief if the person:

3-8    (a) Sells, distributes or manufactures cigarettes; and

3-9    (b) Sustains direct economic or commercial injury as a result of a

3-10  violation of the provisions of this chapter.

3-11    2.  Nothing in this section authorizes an action against this state, a

3-12  political subdivision of this state, or an officer, employee or agency

3-13  thereof.

3-14    Sec. 8.  The amendatory provisions of this act do not apply to offenses

3-15  committed before July 1, 2001.

3-16    Sec. 9.  This act becomes effective on July 1, 2001.

 

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