HLS 16RS-1194 REENGROSSED
2016 Regular Session
HOUSE BILL NO. 710
BY REPRESENTATIVE HOLLIS
SALES/TOBACCO DEALERS: Changes the time period in which cigarettes must be
stamped
1 AN ACT
2To amend and reenact R.S. 47:843(D)(1), 847(A) and (D)(1), and 849(B) and (C), relative
3 to tobacco; to provide for requirements relative to stamped and unstamped cigarettes;
4 to provide relative to the time period in which cigarettes must be stamped; to provide
5 relative to the inventory or stock of certain cigarettes; to provide relative to prima
6 facie evidence of a violation; to provide for requirements relative to products not
7 listed on the attorney general's state directory; and to provide for related matters.
8Be it enacted by the Legislature of Louisiana:
9 Section 1. R.S. 47:843(D)(1), 847(A) and (D)(1) and 849(B) and (C) are hereby
10amended and reenacted to read as follows:
11 §843. Use of stamps or meter impression required; limitations
12 * * *
13 D. Affixing stamps. (1) No person other than a dealer holding a valid
14 stamping agent designation under R.S. 26:902(2) may affix a stamp to any package
15 of cigarettes. Stamps shall be affixed by the dealer, on the smallest container or
16 package of cigarettes that is subject to the tax, to permit the secretary to readily
17 ascertain by an inspection of any dealer's stock on hand, whether or not the tax has
18 been paid. The dealer shall cause to be affixed on every package of cigarettes on
19 which a tax is due, stamps of an amount equaling the tax due thereon, before any
20 person, firm, partnership, corporation, or association of persons sells, offers for sale,
21 handles, removes, or otherwise disturbs or distributes the same cigarettes. The
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HB NO. 710
1 stamps shall be affixed in such a manner that their removal will require continued
2 application of steam or water and shall be canceled by placing thereon the license
3 number of the dealer.
4 * * *
5 §847. Dealers required to affix stamps
6 A. Every registered tobacco dealer holding a valid stamping agent
7 designation pursuant to R.S. 26:902(2)(a) R.S. 26:902(2) shall immediately after
8 receipt of stamp any unstamped cigarettes unless sooner offered for sale and prior
9 to selling, offering for sale, removing, or otherwise distributing the cigarettes in or
10 into the state to wholesale dealers or retail outlets. , cause the same to have the
11 requisite denominations and amount of stamp or stamps to represent the tax affixed
12 as stated herein. The stamping of the unstamped cigarettes shall actually begin as
13 soon as practicable after receipt of the cigarettes in the premises of the tobacco
14 dealer and shall be continued with reasonable diligence by the dealer until all of the
15 unstamped cigarettes have been stamped as provided by law. Stamped cigarettes
16 shall be kept separate and apart from the dealer's stock of unstamped cigarettes.
17 * * *
18 D.(1) If and whenever any of the cigarettes taxed in this Chapter are found
19 in the place of business of any tobacco dealer or any other person, except bonded
20 interstate tobacco dealers a dealer holding a valid stamping agent designation
21 pursuant to R.S. 26:902(2), without the stamps affixed as herein provided, the prima
22 facie presumption shall arise that such cigarettes are kept therein in violation of the
23 provisions of this Chapter.
24 * * *
25 §849. Interstate business of tobacco dealers
26 * * *
27 B. A dealer may not purchase or possess unstamped cigarettes in this state
28 for sale into another state where the manufacturer and brand family of the cigarettes
29 are not at the time of sale listed on this state's directory unless it holds an exporter
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HB NO. 710
1 license pursuant to R.S. 26:902(2)(b). The dealer holding an exporter license shall
2 affix the stamp required by the other state to the package containing the cigarettes
3 within seventy-two hours after receipt. However, if the law of the other state permits
4 the sale of the cigarettes to consumers in a package not bearing a stamp, the dealer
5 may sell cigarettes into the other state without a stamp only if it first pays an excise,
6 use, or similar tax imposed on the cigarettes by the other state. The dealer shall
7 ensure that any cigarettes and roll-your-own tobacco in its stock that are not listed
8 on the attorney general's state directory of products approved for sale in or into the
9 state are kept separate and apart from stock that is approved for sale in or into the
10 state.
11 C. Any registered tobacco dealer desiring to engage in interstate business
12 shall furnish a bond for that purpose. This bond shall be in addition to the bond
13 provided for in R.S. 47:848, in an amount and of tenor and solvency satisfactory to
14 the collector. He shall then be permitted to set aside such part of his stock as may
15 be absolutely necessary for the conduct of such interstate business, without affixing
16 the stamps required by this Chapter. Such interstate stock shall be kept in an entirely
17 separate part of the building, separate and apart from stamped stock, and the
18 interstate business shall be conducted by the dealer in accordance with rules and
19 regulations to be promulgated by the collector.
20 * * *
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 710 Reengrossed 2016 Regular Session Hollis
Abstract: Requires the stamping of cigarettes prior to selling, offering for sale, removing,
or otherwise distributing the cigarettes instead of immediately upon receipt.
Present law requires the stamping of cigarettes with tobacco tax stamps immediately upon
receipt of the cigarettes by a tobacco dealer.
Proposed law changes present law to require that tobacco dealers stamp cigarettes prior to
selling, offering for sale, removing, or otherwise distributing the cigarettes.
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HB NO. 710
Present law provides a prima facie presumption that cigarettes found in the place of business
of any tobacco dealer or other person, except bonded interstate tobacco dealers, without the
stamps affixed are in violation of present law.
Proposed law retains present law except that it removes the exception for bonded interstate
tobacco dealers and provides an exception for a dealer holding a valid stamping agent
designation.
Present law prohibits a dealer from purchasing or possessing unstamped cigarettes in this
state for sale into another state where the manufacturer and brand family of the cigarettes
are not listed on the state's directory unless the dealer holds an exporter license.
Proposed law retains present law and further requires the dealer holding the exporter license
to affix the stamp required by the other state to the package within 72 hours after receipt
unless the other state does not require the stamp, then the dealer may sell cigarettes into the
other state if the excise, use, or similar tax is paid. Proposed law further requires the dealer
to ensure that any cigarettes and roll-your-own tobacco in its stock that are not listed on the
attorney general's state directory are kept separate and apart from the approved stock.
(Amends R.S. 47:843(D)(1), 847(A) and (D)(1), and 849(B) and (C))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Judiciary to the original
bill:
1. Adds the requirement that the stamping of the unstamped cigarettes occur prior
to offering for sale, removing, or distributing them in or into the state.
2. Adds that stamped cigarettes shall be kept separate and apart from the dealer's
stock of unstamped cigarettes.
3. Removes the prima facie presumption exception for bonded interstate tobacco
dealers and extends the exception to a dealer holding a valid stamping agent
designation.
4. Requires a dealer holding an exporter license to affix the stamp required by
another state to the package within 72 hours after receipt unless the other state
does not require the stamp, then the dealer may sell cigarettes into the other state
if the excise, use, or similar tax is paid.
5. Requires the dealer to ensure that any cigarettes and roll-your own tobacco in its
stock that are not listed on the attorney general's state directory are kept separate
and apart from approved stock.
6. Makes technical amendments.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.