Section 1 increases the appropriation to the division from the tobacco education programs fund, which fund consists of 16% of the money collected from cigarette and tobacco taxes, from $350,000 to $500,000 and directs the division to use up to $150,000 of the money for the administration of the retailers registry.
Section 3 applies the hearing procedures established for other nicotine product sales violations to violations of the requirement that a retailer register with the division.
Section 4 increases the civil penalties a retailer would face for violating the prohibitions against selling cigarettes, tobacco products, or nicotine products to minors or selling individual cigarettes, a pack of cigarettes containing fewer than twenty cigarettes, or roll-your-own tobacco in a package containing less than 0.60 ounces of tobacco.
From state cigarette tax money, the state currently apportions 27% to cities, towns, and counties (local governments) in proportion to the amount of state sales tax revenues collected within the boundaries of the local governments. A local government is prohibited from receiving its allocation of this money if it imposes its own fees, licenses, or taxes on cigarette sales. Section 5
Under current law, if a tobacco product distributor ships or transports tobacco products to a consumer outside of the state between September 1, 2015, and September 1, 2018, and reports and pays the taxes on those tobacco products, the department of revenue may credit the tax to the distributor. Section 6
(Note: This summary applies to this bill as introduced.)