HB 390/FN (BR 1029) - R. Thomas, R. Wilkey, L. Clark, J. Richards, G. Stumbo
AN ACT relating to the enforcement of the Tobacco Master Settlement Agreement, making an appropriation therefor and declaring an emergency.
Amend and create various sections of KRS Chapter 131 with regard to the Tobacco Master Settlement Agreement and the state's enforcement of noncompliant nonparticipating manufacturers to: (1) define the terms "brand family", "distributor" and "stamping agent"; (2) prohibit the sale of cigarettes of nonparticipating manufacturers unless they: (a) are in compliance with all escrow fund requirements, to include providing account numbers, current account balance, withdrawal and deposit history, and the name and address of the financial institution for which the accounts are held, (b) have provided certification to the Revenue Cabinet and the Attorney General of current and past cigarette sales by brand family, (c) have certified that they are registered to do business in Kentucky, and (d) are properly listed on the brand family 'directory'; (3) require that the failure of nonparticipating manufacturers to meet the above requirements and certifications shall result in their stamping activities being deemed unlawful, and classified as a class A misdemeanor, and their products deemed as contraband; (4) appropriate to the Revenue Cabinet from the tobacco settlement agreement fund, for each year of the biennium, $175,000 dollars to carry out the provisions of KRS Chapter 131; (5) declare an emergency.
HB 390 - AMENDMENTS
HCS/FN - Retain original provisions; make technical corrections; clarify that participating and non-participating manufacturers must deliver a supplemental certification to the Attorney General; require the Attorney General to develop and make available the "directory" and establish criteria for validating the appointment of an agent; require that cigarettes in violation of Section 5 of the Act be seized and forfeited and that cigarettes in violation of Section 10 of the Act be destroyed; prohibit distributors from knowing violating Section 5 of the Act; allow the secretary to suspend the sale of cigarette stamps to a distributor upon violation of Section 5; prohibit the Attorney General from removing a non-participating manufacturer or its brand families from the directory unless a non-participating manufacturer has been given 30 days' notice of the intended action and allow a non-participating manufacturer 30 days from receipt of notice to comply; require the Attorney General at the time of its intent to remove a non-participating manufacturer from the "directory" to post notice of the intent on the directory; delete provision allowing the Attorney General to promulgate administrative regulations requiring tobacco manufacturers to produce information sufficient to enable the Attorney General to determine the adequacy of the amount of the escrow installment deposits; allow the Attorney General to recover, from stamping agents and distributors, the costs of investigation, costs of the action, and reasonable attorney fees due to injunctions to restrain a violation of Sections 5 or 7 of the Act; allow the loss of the ability to sell tobacco products as a result of removal from the directory to be deemed to constitute irreparable harm for the purposes of a temporary injunction sought pursuant to Section 11 of the Act; allow stamping agents or distributors to possess unstamped containers of cigarettes held in inventory for delivery to, or for sale in, another state; and allow any person aggrieved by a determination of the Attorney General to not include in or to remove from the directory to appeal the determination to the circuit court of the county in which the person aggrieved resides or conducts.
HFA (1, L. Napier) - Retain original provisions of HB 390/HCS; redefine the term "tobacco product manufacturer" to exempt a tobacco product manufacturer who is organized, exists, transacts their business, produces tobacco products and has their principal place of business in Kentucky.
SCS - Retain original provisions of HB 390/GA; delete the allowance of the secretary to disclose to the Attorney General any information received under the Act but allow the secretary to disclose to the Attorney General the name and address of a stamping agent or distributor and the number of sticks by brand name that have been purchased from a nonparticipating manufacturer and have been stamped with Kentucky stamps by that agent or distributor; delete disclosure for public record; create a new section of KRS Chapter 136 to provide that a corporation that holds securities in other corporations equal to 50% or more of total assets may compute capital employed either by filing a consolidated return or by deducting the book value of the investment; provide that the section applies only to returns with due dates between April 15, 2004 and April 15, 2005; repeal KRS 136.071.
SCA (1, E. Harris) - Retain original provisions of HB 390/GA; delete the allowance of the secretary to disclose to the Attorney General any information received under the Act but allow the secretary to disclose to the Attorney General the name and address of a stamping agent or distributor and the number of sticks by brand name that have been purchased from a nonparticipating manufacturer and have been stamped with Kentucky stamps by that agent or distributor; delete disclosure for public record.
SCA (2/Title, R. Sanders Jr) - Make title amendment.
Feb 7-introduced in House
Feb 10-to Appropriations and Revenue (H)
Feb 13-posted in committee
Feb 19-reported favorably, 1st reading, to Calendar with Committee Substitute ; floor amendment (1) filed to Committee Substitute
Feb 20-2nd reading, to Rules
Feb 21-posted for passage in the Regular Orders of the Day for Monday, February 24, 2003
Feb 25-3rd reading; floor amendment (1) defeated ; passed 93-1 with Committee Substitute
Feb 26-received in Senate
Feb 28-to Agriculture and Natural Resources (S)
Mar 4-reported without opinion; 1st reading, to Calendar
Mar 5-2nd reading, to Rules; recommitted to Agriculture and Natural Resources (S)
Mar 6-reported favorably, to Rules with committee amendment (1)
Mar 24-recommitted to Appropriations and Revenue (S); reported favorably, to Rules with Committee Substitute, committee amendment (2-title) ; posted for passage in the Regular Orders of the Day for Monday, March 24, 2003; 3rd reading; committee amendment (1) withdrawn ; passed 34-0 with Committee Substitute, committee amendment (2-title) ; received in House; posted for passage for concurrence in Senate Committee Substitute, committee amendment (2-title)
Mar 25-House concurred in Senate Committee Substitute, committee amendment (2-title) ; passed 91-4; enrolled, signed by each presiding officer; delivered to Governor
Apr 3-line item vetoed; delivered to Secretary of State (Acts Ch. 194)