Download Zipped Enrolled WordPerfect HB0312.ZIP
[Introduced][Amended][Status][Bill Documents][Fiscal Note][Bills Directory]
H.B. 312 Enrolled
This bill modifies the Cigarette and Tobacco Tax and Licensing Act by imposing an
equity assessment on nonparticipating manufacturer cigarettes.
. defines terms;
. levies an equity assessment of 1.75 cents per cigarette on nonparticipating tobacco
product manufacturers; and
. designates cigarettes in violation of this section as contraband goods.
Monies Appropriated in this Bill:
Other Special Clauses:
This bill takes effect on July 1, 2004.
Utah Code Sections Affected:
59-14-213, as last amended by Chapters 52 and 175, Laws of Utah 2002
59-14-214, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 59-14-213 is amended to read:
59-14-213. Contraband goods.
(1) Any cigarettes in violation of any state or federal law, including Sections 59-14-203 ,
59-14-205 , 59-14-211 [
goods and may be seized without a warrant by the commission, its employees, or any peace
officer of the state or its political subdivisions.
(2) Any goods seized pursuant to Subsection (1) shall be delivered to the commission and
(3) Any cigarettes, as defined in Subsection 59-22-202 (4), in violation of Subsection
59-14-408 (2) are contraband goods and may be seized in accordance with Subsections (1) and
Section 2. Section 59-14-214 is enacted to read:
59-14-214. Nonparticipating manufacturer equity assessment.
(1) As used in this section, "nonparticipating manufacturer" means a tobacco product
manufacturer, as defined in Subsection 59-22-202 (9), that is not a participating manufacturer
within the meaning of Subsection II(jj) of the Master Settlement Agreement, as defined in
Subsection 59-22-202 (5).
(2) (a) There is levied an equity assessment, at the rate of 1.75 cents on each cigarette, for
all cigarette packages of nonparticipating manufacturers to which a stamp is affixed as required
under Section 59-14-205 .
(b) The equity assessment imposed by this section is in addition to all other assessments,
fees, and taxes levied under existing law.
(c) The equity assessment imposed by this section shall be paid by affixing a stamp in the
manner and at the time described in Section 59-14-205 .
(d) Except as otherwise provided in this section, the equity assessment shall be collected,
paid, administered, and enforced in the same manner as the tax on cigarettes levied by Section
(3) The purposes of this equity assessment are:
(a) to recover health care costs to the state imposed by nonparticipating manufacturers;
(b) to prevent nonparticipating manufacturers from undermining the state's policy of
reducing underage smoking by offering cigarettes for sale substantially below the prices of
cigarettes of other manufacturers;
(c) to protect funding, which is reduced as a result of the growth of nonparticipating
manufacturer cigarette sales, for programs funded in whole or in part by payments to the state
under the Master Settlement Agreement, as defined in Subsection 59-22-202 (5);
(d) to recoup settlement-payment revenue lost to the state as a result of nonparticipating
manufacturer cigarette sales; and
(e) to fund enforcement and administration of:
(i) Section 59-14-408 ;
(ii) Sections 59-22-201 through 59-22-203 , related to nonparticipating manufacturers;
(iii) the equity assessment imposed by this section.
(4) (a) Each manufacturer, distributor, wholesaler, or retail dealer who under Section
59-14-205 affixes a stamp to a package of cigarettes, shall report monthly to the commission for
each place of business, the number and denominations of stamps affixed to individual packages of
nonparticipating manufacturer cigarettes sold by the manufacturer, distributor, wholesaler, or
retail dealer in the preceding month, including the manufacturer and brand family.
(b) A person required to file a report under this section is subject to the penalties under
Section 59-1-401 for failing to file a report in a timely manner, or for supplying false or fraudulent
Section 3. Effective date.
This bill takes effect on July 1, 2004.
[Bill Documents][Bills Directory]