SB 298: "An Act relating to certain licenses for the sale of tobacco products; relating to tobacco taxes and sales and cigarette tax stamps; relating to provisions making certain cigarettes contraband and subject to seizure and forfeiture; relating to certain crimes, penalties, and interest concerning tobacco taxes and sales; relating to notification regarding a cigarette manufacturer's noncompliance with the tobacco product Master Settlement Agreement or related statutory provisions and to confiscation of the affected cigarettes; and providing for an effective date."
00 SENATE BILL NO. 298 01 "An Act relating to certain licenses for the sale of tobacco products; relating to tobacco 02 taxes and sales and cigarette tax stamps; relating to provisions making certain cigarettes 03 contraband and subject to seizure and forfeiture; relating to certain crimes, penalties, 04 and interest concerning tobacco taxes and sales; relating to notification regarding a 05 cigarette manufacturer's noncompliance with the tobacco product Master Settlement 06 Agreement or related statutory provisions and to confiscation of the affected cigarettes; 07 and providing for an effective date." 08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 09 * Section 1. AS 43.50.035 is amended to read: 10 Sec. 43.50.035. Wholesaler-distributor license. A person outside of this 11 state who sells cigarettes into this state and is not required to be licensed under 12 AS 43.50.010 may apply [QUALIFY] for a wholesaler-distributor license [BY 13 FURNISHING A GOOD AND SUFFICIENT SURETY BOND IN AN AMOUNT
01 EQUAL TO TWICE THE AVERAGE MONTHLY RETURN AND IN NO CASE 02 LESS THAN $5,000, PAYABLE TO THE DEPARTMENT AND APPROVED BY 03 THE DEPARTMENT OF LAW. IF A WHOLESALER-DISTRIBUTOR FAILS TO 04 PAY THE CIGARETTE TAX WHEN DUE, THE BOND MAY BE FORFEITED 05 AND THE LICENSE REVOKED. THE DEPARTMENT MAY ISSUE PERMITS 06 IN PLACE OF BONDS TO RESIDENT HOLDERS OF WHOLESALER- 07 DISTRIBUTOR LICENSES DOING BUSINESS WHOLLY IN THE STATE WHO 08 PAY THE TAX BEFORE SHIPMENT]. The department shall adopt reasonable 09 regulations that it considers necessary regarding the wholesaler-distributor 10 license, including standards for 11 (1) application and issuance of the license; and 12 (2) refusal to issue the license. 13 * Sec. 2. AS 43.50.040 is amended to read: 14 Sec. 43.50.040. Expiration of licenses. A license issued under AS 43.50.010 15 or 43.50.035 expires on June 30, following the date of issue. If a license is revoked, 16 or the business for which the license is issued changes ownership or the licensee 17 changes the place of business from the premises covered by the license, the licensee 18 shall immediately return the license to the department. If the licensee moves the 19 business to another location in the state, the license shall, upon the payment of a fee of 20 50 cents, be reissued for the new location for the balance of the unexpired term. The 21 licensee, on application to the department accompanied by the renewal fee, may, 22 before the expiration of the license, renew the license for one year from the expiration 23 date of the license. 24 * Sec. 3. AS 43.50.070 is amended to read: 25 Sec. 43.50.070. Suspension or revocation [REVOCATION] of licenses. 26 The department may suspend or revoke a license issued under this chapter 27 [AS 43.50.010 - 43.50.180] (1) for a negligent violation of AS 11.76.100, 11.76.106, 28 11.76.107, or a violation of this chapter [AS 43.50.010 - 43.50.180] or a regulation of 29 the department adopted under this chapter [AS 43.50.010 - 43.50.180]; (2) if a 30 licensee ceases to act in the capacity for which the license was issued; or (3) if a 31 licensee [MANUFACTURER, DISTRIBUTOR, OR WHOLESALE DISTRIBUTOR]
01 negligently sells tobacco or products containing tobacco to a person who is required 02 to, but does not, hold a license endorsement under AS 43.70.075 or 03 [NONLICENSED RETAILER OR A RETAILER] whose license endorsement under 04 AS 43.70.075 has been suspended. A person whose license is suspended or revoked 05 may not sell cigarettes or tobacco products, or permit cigarettes or tobacco products 06 to be sold, during the period of the suspension or revocation on the premises occupied 07 or controlled by that person. A disciplinary proceeding or action is not barred or 08 abated by the expiration, transfer, surrender, renewal, or extension of a license issued 09 under this chapter [AS 43.50.010 - 43.50.180]. The department shall comply with 10 the provisions of AS 44.62 [THE] (Administrative Procedure Act) [(AS 44.62)]. 11 * Sec. 4. AS 43.50.070 is amended by adding a new subsection to read: 12 (b) In this section, "licensee" means a person licensed under AS 43.50.010 - 13 43.50.180 or under AS 43.50.300 - 43.50.390. 14 * Sec. 5. AS 43.50.090(a) is amended to read: 15 (a) There is levied an excise tax of 38 mills on each cigarette imported or 16 acquired in the state. The tax shall be paid through the use of stamps as provided 17 in AS 43.50.500 - 43.50.700. The failure to pay the tax through the use of stamps 18 does not relieve a person of the obligation to pay taxes due under this chapter. 19 The person shall still pay the tax and the tax is due on or before the end of the 20 month following the month in which cigarettes were manufactured, imported, 21 acquired, or sold in this state. [EACH LICENSEE SHALL, AT THE TIME OF 22 FILING THE RETURN REQUIRED BY AS 43.50.080, PAY TO THE 23 DEPARTMENT THE EXCISE FOR THE CALENDAR MONTH COVERED BY 24 THE RETURN, DEDUCTING FOUR-TENTHS OF ONE PERCENT OF THE 25 TOTAL TAX DUE, WHICH THE LICENSEE SHALL RETAIN TO COVER THE 26 EXPENSE OF ACCOUNTING AND FILING RETURNS.] Cigarettes upon which 27 the excise is imposed are not again subject to the excise when acquired by another 28 person. 29 * Sec. 6. AS 43.50.100(d) is amended to read: 30 (d) A person or licensee who is in control or possession of cigarettes contrary 31 to this chapter [AS 43.50.010 - 43.50.180], or who offers to sell or dispose of
01 cigarettes to others for the purpose of resale without being licensed to do so is 02 considered to have possession of the cigarettes as a consumer and is personally liable 03 for the cigarette taxes imposed by this chapter [TAX], plus a penalty of 100 percent 04 [PER CENT]. 05 * Sec. 7. AS 43.50.130(d) is amended to read: 06 (d) An invoice for the sale of cigarettes given or accepted by a licensee under 07 this chapter [AS 43.50.010 - 43.50.180] must state whether the taxes [TAX] imposed 08 by this chapter have [AS 43.50.010 - 43.50.180 HAS] been paid. 09 * Sec. 8. AS 43.50.170(7) is amended to read: 10 (7) "person" includes an individual, company, partnership, limited 11 liability partnership, joint venture, joint agreement, limited liability company, 12 association, mutual or otherwise, corporation, estate, trust, business trust, receiver, 13 trustee, syndicate, or political subdivision of this state, or combination acting as a unit; 14 * Sec. 9. AS 43.50.170 is amended by adding new paragraphs to read: 15 (11) "tobacco product" has the meaning given in AS 43.50.390; 16 (12) "wholesaler-distributor" means a person outside this state who 17 sells or distributes cigarettes into this state and is not required to be licensed under 18 AS 43.50.010. 19 * Sec. 10. AS 43.50.190(b) is amended to read: 20 (b) The tax levied by this section is in addition to the tax levied by 21 AS 43.50.010 - 43.50.180. The tax shall be administered and collected in the same 22 manner as the tax levied by AS 43.50.010 - 43.50.180, except that receipts from the 23 tax shall be deposited in the general fund. The penalties provided in AS 43.05 and 24 this chapter apply to the tax levied in this section. 25 * Sec. 11. AS 43.50.320(f) is amended to read: 26 (f) The department may suspend or revoke a license issued under this section 27 as provided in AS 43.50.070 [IF THE LICENSEE VIOLATES A PROVISION OF 28 AS 43.50.300 - 43.50.390 OR A REGULATION ADOPTED UNDER AS 43.50.370]. 29 * Sec. 12. AS 43.50.390(5) is repealed and reenacted to read: 30 (5) "wholesale price" means 31 (A) if the manufacturer's established price is adequately
01 supported by bona fide arm's length sales as determined by the department, the 02 established price for which a manufacturer sells a tobacco product to a 03 distributor, after deduction of a discount or other reduction received by the 04 distributor for quantity or cash; or 05 (B) if the manufacturer's established price does not meet the 06 standards of (A) of this paragraph, the price, as determined by the department, 07 for which tobacco products of comparable retail price are sold to distributors in 08 the ordinary course of trade. 09 * Sec. 13. AS 43.50 is amended by adding a new section to article 4 to read: 10 Sec. 43.50.395. Notification of noncompliance; confiscation of 11 noncomplying cigarettes. (a) The department shall notify licensees in writing when 12 a determination has been made that a tobacco product manufacturer has failed to 13 comply with AS 45.53.020 or 45.53.040(a). The department's notification shall 14 contain the name of the tobacco product manufacturer that failed to comply and its 15 affected brands of cigarettes. Upon receipt of the department's notification under this 16 section, the licensee may not sell or distribute in this state the affected brands of 17 cigarettes, and the licensee has 30 days to destroy the affected brands of cigarettes or 18 return the affected brands of cigarettes to the manufacturer or the distributor from 19 which the cigarettes were purchased. Beginning on the 31st day after the receipt of 20 the notice, the brands of cigarettes affected by the notice are contraband and subject to 21 immediate confiscation, regardless of whether cigarette tax stamps have been affixed 22 in accordance with AS 43.50.500 - 43.50.700 to cigarette packages affected by the 23 notice. The department may allow a credit for the tax on the cigarettes destroyed or 24 returned under this section. 25 (b) Cigarettes confiscated under this section are forfeited to the state. After 26 notice and an opportunity for a hearing, the commissioner shall destroy the cigarettes 27 forfeited under this section. 28 (c) In this section, 29 (1) "cigarette" has the meaning given in AS 45.53.100; 30 (2) "licensee" means a person licensed by the department under 31 AS 43.50.010, 43.50.035, or 43.50.320;
01 (3) "tobacco product manufacturer" has the meaning given in 02 AS 45.53.100. 03 * Sec. 14. AS 43.50 is amended by adding new sections to read: 04 Article 5. Cigarette Tax Stamps. 05 Sec. 43.50.500. Tax payment by use of stamps. A licensee shall pay the tax 06 imposed under AS 43.50.090(a) and 43.50.190(a) through the use of stamps issued 07 under AS 43.50.500 - 43.50.700. 08 Sec. 43.50.510. Stamp design; manner of affixing. (a) The department shall 09 design and furnish stamps of sizes and denominations as determined by the 10 department. 11 (b) Notwithstanding the packaging requirements of AS 43.70.075(g)(1), a 12 stamp required under AS 43.50.500 - 43.50.700 must be affixed 13 (1) on the smallest package that will be handled, sold, used, consumed, 14 or distributed in this state; and 15 (2) in a denomination equal to the amount of tax due under this chapter 16 on the cigarettes in the package. 17 (c) A stamp required under AS 43.50.500 - 43.50.700 shall be affixed to the 18 bottom of each individual package of cigarettes in a manner so that the stamp cannot 19 be removed from the package without being mutilated or destroyed. 20 (d) For purposes of this section, a stamp is considered affixed only if more 21 than 60 percent of the stamp is attached to the individual package in accordance with 22 (c) of this section and regulations adopted by the department. 23 Sec. 43.50.520. Stamp required before sale, distribution, or consumption. 24 (a) Except as provided in AS 43.50.570, a licensee or the authorized agent or designee 25 of the licensee shall affix a stamp, in the manner required by AS 43.50.510, to each 26 package of cigarettes immediately upon the opening of the shipping container 27 containing the package and before sale, distribution, or consumption in this state. 28 (b) Except as provided in AS 43.50.570 and 43.50.600, a person may not 29 engage in the following activities in this state unless the package containing the 30 cigarettes is affixed with the required stamp: 31 (1) sell or distribute cigarettes to a person who is a consumer in this
01 state; 02 (2) acquire, hold, own, possess, or transport cigarettes for sale or 03 distribution in this state; 04 (3) import or cause to be imported into this state cigarettes for sale, 05 distribution, or consumption; or 06 (4) place or store cigarette packages in a vending machine in this state. 07 Sec. 43.50.530. Sale of stamps. (a) The department shall furnish stamps for 08 sale to licensees. 09 (b) The department may enter into agreements with financial institutions to 10 permit the sale of stamps by those institutions. The department shall make available to 11 the public a list of financial institutions authorized to sell stamps under this section. 12 Sec. 43.50.540. Purchase of and payment for stamps. (a) A licensee shall 13 apply to the department or a financial institution authorized under AS 43.50.530(b) to 14 purchase stamps required by AS 43.50.500 - 43.50.700. 15 (b) A licensee may authorize an agent or designee to purchase stamps for the 16 licensee at a location where stamps are sold. The licensee's authorization of an agent 17 or designee shall be in writing and shall be signed by the licensee. The licensee shall 18 provide to the department a copy of the authorization. The authorization continues in 19 effect until the licensee's written notice of revocation of the authorization is received 20 by the department. 21 (c) Except as otherwise provided in this subsection, each stamp shall be sold 22 to a licensee at its denominated value less the discount provided in this subsection. 23 For the first $1,000,000 in denominated value of stamps purchased by a licensee under 24 this section in a calendar year, the discount to the licensee is equal to two percent of 25 the stamps' denominated values. The discount on additional stamps purchased by the 26 licensee under this section in the same calendar year is equal to one percent of the 27 denominated values of the additional stamps. The discount under this subsection is 28 provided as compensation for affixing stamps to packages as required by 29 AS 43.50.500 - 43.50.700. The department may reduce or eliminate the discount to a 30 licensee under this subsection if the licensee fails to meet the requirements of 31 AS 43.50.500 - 43.50.700.
01 (d) Payment for stamps shall be made at the time of purchase, except that the 02 department may permit a licensee to defer payments as provided in AS 43.50.550. 03 (e) The licensee or the licensee's agent or designee must obtain the stamps in 04 person from the department or a financial institution authorized to sell stamps under 05 AS 43.50.530(b). Alternatively, the licensee may request in writing that the stamps be 06 shipped or transported in a manner specified by the licensee that is acceptable to the 07 department. The department may accept as a shipping or transportation method only 08 United States mail or common or private carrier. 09 (f) Title to the stamps passes immediately to the licensee at the time the 10 stamps are obtained in person or, if the stamps are shipped or transported, at the time 11 the stamps are placed in the United States mail or received by the common or private 12 carrier. The licensee bears all costs associated with shipping or transporting the 13 stamps and all risks of possible loss or damage while in transit. 14 (g) Loss, destruction, or theft of the stamps does not absolve the licensee of its 15 obligation to make payment for the stamps, including payment on a deferred-payment 16 basis under AS 43.50.550. 17 (h) For purposes of the discount provided in (c) of this section, stamps 18 purchased by a licensee includes stamps purchased by affiliated licensees. 19 Sec. 43.50.550. Deferred-payment basis for stamps. (a) A licensee may 20 apply to the department to purchase stamps on a deferred-payment basis. Upon 21 receipt of the application and the bond required under (b) of this section, the 22 department may set the maximum dollar amount of stamps that the licensee is 23 authorized to purchase on a deferred-payment basis in a calendar month. 24 (b) A licensee who submits an application for the purchase of stamps on a 25 deferred-payment basis shall post a bond acceptable to the department in an amount 26 equal to 200 percent of the maximum dollar amount of allowed monthly purchases 27 under this section as a condition of department approval of the application. 28 (c) Amounts owing for stamps purchased on a deferred-payment basis in a 29 calendar month are due on or before the last day of the next calendar month. Payment 30 shall be made by a remittance acceptable to the department that is made payable to the 31 department.
01 (d) The department may designate the sales locations where the licensee may 02 make purchases of stamps on a deferred-payment basis and fix the dollar amount of 03 purchases that the licensee may make under this section each month at each designated 04 sales location. 05 Sec. 43.50.560. Suspension of deferred-payment basis privilege. The 06 department may suspend, without prior notice, a licensee's privilege to purchase 07 stamps on a deferred-payment basis or may reduce the monthly dollar amount of 08 purchases allowed the licensee under AS 43.50.550 if 09 (1) the licensee fails to pay for stamps when payment is due; 10 (2) the licensee's bond is canceled or becomes void, impaired, or 11 unenforceable; 12 (3) the department determines that the collection of an amount unpaid 13 or due from the licensee under this chapter is jeopardized; or 14 (4) the licensee violates a state statute or regulation related to the 15 collection of taxes under this chapter. 16 Sec. 43.50.565. Interest. A licensee who fails to pay an amount due for the 17 purchase of stamps within the time required is considered to have failed to pay the 18 cigarette taxes due under this chapter and is subject to pay interest at the rate 19 established under AS 43.05.225 from the date on which the amount became due until 20 the date of payment. 21 Sec. 43.50.570. Possession of unstamped cigarettes. (a) Except as provided 22 in (b) of this section and in AS 43.50.600, a person may not possess unstamped 23 cigarettes in this state. 24 (b) A licensee may possess unstamped cigarettes in this state if 25 (1) the licensee posts a surety bond in an amount satisfactory to the 26 department to ensure performance of its duties under this chapter; and 27 (2) unstamped cigarettes are necessary for the conduct of the licensee's 28 business in making sales or distributions to an instrumentality of the federal 29 government or an Indian tribal organization authorized by law to possess cigarettes not 30 taxed under this chapter. 31 (c) At the time of shipping or delivering cigarettes to an instrumentality of the
01 federal government or an Indian tribal organization authorized by law to possess 02 cigarettes not taxed under this chapter, a licensee shall make a duplicate invoice 03 showing complete details of the shipment or other distribution and a statement 04 indicating whether stamps were affixed to each cigarette package in accordance with 05 AS 43.50.500 - 43.50.700. The licensee shall transmit the duplicate invoice to the 06 department as an attachment to the monthly report required under AS 43.50.620. 07 (d) If a licensee who is authorized to possess unstamped cigarettes under (b) 08 of this section fails to comply with the requirements of this section, the licensee is no 09 longer authorized to, and may not, possess unstamped cigarettes under this section, 10 and is subject to the imposition of any other penalty available under this title or other 11 law. 12 (e) For purposes of (a) of this section, "person" does not include entities to 13 whom sales or distributions are made as described in (b)(2) of this section. 14 Sec. 43.50.580. Refunds or credits for unused stamps and for unsalable, 15 destroyed, or certain returned cigarette packages. (a) The department shall adopt 16 procedures for a refund or credit to a licensee in the amount of the denominated value, 17 less the discount given under AS 43.50.540, for 18 (1) unused or damaged stamps; or 19 (2) stamps affixed to cigarette packages that have become unfit for use 20 or sale, are destroyed, or are returned to the manufacturer for credit or replacement, if 21 the licensee provides proof acceptable to the department that the cigarettes have not 22 been and will not be consumed in this state. 23 (b) A refund or credit under (a) of this section may not be allowed for stamps 24 affixed to cigarette packages in violation of this chapter. 25 Sec. 43.50.590. Stamps prohibited on cigarette packages not complying 26 with federal and state laws. A licensee, or the licensee's authorized agent or 27 designee, may not affix a stamp to a cigarette package if 28 (1) the cigarettes may not be acquired, held, owned, imported, 29 possessed, sold, or distributed in this state under AS 43.50.400; or 30 (2) the licensee has received notification from the department under 31 AS 43.50.395 that the manufacturer of the cigarettes has not complied with
01 AS 45.53.020 or filed with the state a certification of compliance under 02 AS 45.53.040(a). 03 Sec. 43.50.600. Unstamped cigarettes as contraband; seizure. Unstamped 04 cigarettes found in this state are contraband, and may be seized by the commissioner 05 of revenue or an agent or employee of the commissioner of revenue or by any peace 06 officer of the state, unless 07 (1) the cigarettes are 08 (A) in the possession of a licensee or are in transit from outside 09 the state and are consigned to a licensee; and 10 (B) in the original and unopened shipping container; or 11 (2) possession of the unstamped cigarettes is not a violation of this 12 chapter. 13 Sec. 43.50.610. Forfeiture and destruction of seized cigarettes. Cigarettes 14 seized under AS 43.50.500 - 43.50.700 are forfeited to the state. After notice and an 15 opportunity for a hearing, the commissioner of revenue shall destroy the cigarettes 16 forfeited under this section. 17 Sec. 43.50.620. Monthly reports; records retention; inspection of records. 18 (a) On or before the last day of each calendar month, a licensee shall file with the 19 department, on a form or in a format prescribed by the department, the following 20 information for each place of business: 21 (1) the quantity and brands of cigarettes manufactured, imported, 22 acquired, or sold in the state during the preceding calendar month; 23 (2) the number and dollar amount of stamps purchased during the 24 preceding calendar month; 25 (3) the number and dollar amount of stamps affixed to cigarette 26 packages during the preceding calendar month; 27 (4) the number and dollar amount of stamps not affixed to cigarette 28 packages and on hand at the end of the preceding calendar month; and 29 (5) any other information that the department requires to carry out its 30 duties under this chapter. 31 (b) If a licensee ceases to manufacture, import, acquire, or sell cigarettes, the
01 licensee shall immediately file with the department the form required under (a) of this 02 section, containing the required information, for the period ending with the cessation. 03 (c) All statements and other records required by AS 43.50.500 - 43.50.700 04 shall be in a form or format prescribed by the department, shall be preserved by a 05 licensee for a period of three years, and shall be available for inspection at any time 06 upon oral or written demand by the department or its authorized agent. 07 Sec. 43.50.630. Misconduct involving unstamped cigarettes or stamps in 08 the first degree. (a) A person commits the crime of misconduct involving unstamped 09 cigarettes or stamps in the first degree if the person 10 (1) sells or distributes 1,000 or more unstamped cigarettes in a single 11 transaction; 12 (2) owns or possesses with the intent to sell 1,000 or more unstamped 13 cigarettes; 14 (3) acquires, holds, transports, imports, or possesses 10,000 or more 15 unstamped cigarettes; 16 (4) affixes to a cigarette package a stamp that was previously affixed to 17 another cigarette package; or 18 (5) possesses, sells, or distributes a stamp that was previously affixed 19 to a cigarette package. 20 (b) Each sale or distribution of, or ownership or possession with intent to sell, 21 1,000 or more cigarettes in violation of (a)(1) or (2) of this section is a separate 22 violation. 23 (c) Misconduct involving unstamped cigarettes or stamps in the first degree is 24 a class C felony. 25 Sec. 43.50.640. Misconduct involving unstamped cigarettes or stamps in 26 the second degree. (a) A person commits the crime of misconduct involving 27 unstamped cigarettes or stamps in the second degree if the person 28 (1) sells or distributes less than 1,000 unstamped cigarettes in a single 29 transaction; 30 (2) owns or possesses with the intent to sell less than 1,000 unstamped 31 cigarettes;
01 (3) acquires, holds, transports, imports, or possesses less than 10,000 02 unstamped cigarettes; or 03 (4) is not licensed under this chapter or otherwise authorized by the 04 department to possess stamps, and possesses a stamp that is not affixed to a cigarette 05 package. 06 (b) Each sale or distribution of, or ownership or possession with intent to sell, 07 less than 1,000 cigarettes in violation of (a)(1) or (2) of this section is a separate 08 violation. 09 (c) Misconduct involving unstamped cigarettes or stamps in the second degree 10 is a class A misdemeanor. 11 Sec. 43.50.650. Construction of criminal statutes. (a) The provisions of 12 AS 11.16, AS 11.81.600, 11.81.610, and 11.81.900 apply to AS 43.50.630 and 13 43.50.640. 14 (b) For purposes of AS 43.50.630 and 43.50.640, display of cigarettes by a 15 person, or possession other than in the original and unopened shipping container of 16 cigarettes by a person who holds a business license endorsement under AS 43.70.075, 17 is prima facie evidence of possession with intent to sell cigarettes. 18 (c) In AS 43.50.630, 43.50.640, and (b) of this section, "display" means to 19 openly exhibit. 20 Sec. 43.50.660. Unauthorized transfer of unaffixed stamps. (a) A licensee 21 may not sell, exchange, or otherwise transfer stamps not affixed to a package of 22 cigarettes in accordance with this chapter to another person without the prior written 23 approval of the department. 24 (b) After notice and hearing, the department may assess a civil fine of not less 25 than $500 nor more than $1,000 for a violation of (a) of this section. The fine assessed 26 is in addition to any other penalty available under the law. 27 Sec. 43.50.700. Definitions. In AS 43.50.500 - 43.50.700, unless the context 28 otherwise requires, 29 (1) "affiliated licensees" means two or more licensees in which the 30 same person holds, directly or indirectly, at least a 50 percent ownership interest; 31 (2) "carton" means a box or container originating from the
01 manufacturer that contains packages of that manufacturer's cigarettes; 02 (3) "cigarette" has the meaning given in AS 43.50.170; 03 (4) "licensee" means a person licensed by the department under 04 AS 43.50.010 or 43.50.035 to sell, distribute, purchase, possess, or acquire cigarettes; 05 (5) "package" means the individual packet, box, or other container, 06 originating from the manufacturer, in which retail sales of cigarettes are normally 07 made or intended to be made; "package" does not include containers that are cartons, 08 cases, bales, or boxes that contain packages of cigarettes; 09 (6) "person" has the meaning given in AS 43.50.170; 10 (7) "shipping container" means the case, box, parcel, or other container 11 in which cartons or packages of cigarettes are placed for shipment or transportation 12 from one place to another; "shipping container" does not include a package in which 13 retail sales of cigarettes are normally made or intended to be made; 14 (8) "stamp" means a stamp or other indicia that is 15 (A) printed, manufactured, or made under authorization of the 16 department under this chapter; 17 (B) issued, sold, or circulated by the department; and 18 (C) used to pay the cigarette taxes levied under this chapter; 19 (9) "unstamped cigarettes" means a package containing cigarettes that 20 is not affixed with the stamp required by AS 43.50.500 - 43.50.700. 21 * Sec. 15. AS 43.50.080 and 43.50.145 are repealed. 22 * Sec. 16. The uncodified law of the State of Alaska is amended by adding a new section to 23 read: 24 TRANSITION: REGULATIONS. Notwithstanding sec. 20 of this Act, the 25 Department of Revenue may immediately proceed to adopt regulations necessary to 26 implement the changes made by this Act. The regulations take effect under AS 44.62 27 (Administrative Procedure Act), but not before the effective date of the respective statutory 28 changes. 29 * Sec. 17. The uncodified law of the State of Alaska is amended by adding a new section to 30 read: 31 TRANSITION: ACTIVITIES INVOLVING UNSTAMPED CIGARETTES
01 THROUGH MARCH 31, 2003. (a) Notwithstanding the requirements of AS 43.50.500 - 02 43.50.700, enacted by sec. 14 of this Act, a person may acquire, hold, own, import, possess, 03 sell, distribute, or consume unstamped cigarettes in this state on or after January 1, 2003, and 04 until March 31, 2003, if the cigarettes were in this state before January 1, 2003. 05 (b) In this section, "unstamped cigarettes" has the meaning given in AS 43.50.700, 06 enacted by sec. 14 of this Act. 07 * Sec. 18. The uncodified law of the State of Alaska is amended by adding a new section to 08 read: 09 REVISOR'S INSTRUCTION. The revisor of statutes is instructed to change the 10 heading of art. 4 of AS 43.50 from "Compliance With Federal Laws Relating to Cigarettes" to 11 "Compliance With Other Laws Relating to Cigarettes." 12 * Sec. 19. Section 16 of this Act takes effect immediately under AS 01.10.070(c). 13 * Sec. 20. Except as provided in sec. 19 of this Act, this Act takes effect January 1, 2003.