2013 -- S 0255

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LC00889

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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A N A C T

RELATING TO TAXATION - CIGARETTE TAX

     Introduced By: Senator Christopher S. Ottiano

     Date Introduced: February 13, 2013

     Referred To: Senate Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 44-20-4.1 of the General Laws in Chapter 44-20 entitled "Cigarette

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Tax" is hereby amended to read as follows:

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     44-20-4.1. License availability. -- (a) No license under this chapter may be granted,

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maintained or renewed if the applicant, or any combination of persons owning directly or

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indirectly any interests in the applicant:

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      (1) Owes five hundred dollars ($500) or more in delinquent cigarette taxes;

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      (2) Is delinquent in any tax filings for one month or more;

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      (3) Had a license under this chapter revoked by the administrator within the past two (2)

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years;

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      (4) Has been convicted of a crime relating to cigarettes stolen or counterfeit cigarettes;

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      (5) Is a cigarette manufacturer or importer that is neither: (i) a participating manufacturer

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as defined in subsection II (jj) of the "Master Settlement Agreement" as defined in section 23-71-

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2; nor (ii) in full compliance with chapter 20.2 of this title and section 23-71-3;

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      (6) Has imported, or caused to be imported, into the United States any cigarette in

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violation of 19 U.S.C. section 1681a; or

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      (7) Has imported, or caused to be imported into the United States, or manufactured for

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sale or distribution in the United States any cigarette that does not fully comply with the Federal

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Cigarette Labeling and Advertising Act (15 U.S.C. section 1331, et. seq).

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      (b) (1) No person shall apply for a new license or permit (as defined in section 44-19-1)

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or renewal of a license or permit, and no license or permit shall be issued or renewed for any

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person, unless all outstanding fines, fees or other charges relating to any license or permit held by

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that person have been paid.

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      (2) No license or permit shall be issued relating to a business at any specific location

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until all prior licenses or permits relating to that location have been officially terminated and all

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fines, fees or charges relating to the prior licenses have been paid or otherwise resolved or the

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administrator has found that the person applying for the new license or permit is not acting as an

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agent for the prior licensee or permit holder who is subject to any such related fines, fees or

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charges that are still due. Evidence of such agency status includes, but is not limited to, a direct

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familial relationship and/or an employment, contractual or other formal financial or business

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relationship with the prior licensee or permit holder.

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      (3) No person shall apply for a new license or permit pertaining to a specific location in

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order to evade payment of any fines, fees or other charges relating to a prior license or permit for

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that location.

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      (4) No new license or permit shall be issued for a business at a specific location for

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which a license or permit already has been issued unless there is a bona fide, good faith change in

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ownership of the business at that location.

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      (5) No license or permit shall be issued, renewed or maintained for any person, including

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the owners of the business being licensed or having applied and received a permit, that has been

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convicted of violating any criminal law relating to tobacco products, the payment of taxes or

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fraud or has been ordered to pay civil fines of more than twenty-five thousand dollars ($25,000)

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dollars for violations of any civil law relating to tobacco products, the payment of taxes or fraud.

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     (6) No license shall be issued, renewed or maintained if the applicant, or any combination

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of entities controlled by or under common control with the applicant, is a healthcare facility

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licensed under chapter 17 of title 23 or maintains a healthcare facility license under chapter 17 of

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title 23 to provide healthcare services.

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     SECTION 2. This act shall take effect upon passage.

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LC00889

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO TAXATION - CIGARETTE TAX

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     This act would prohibit the granting of a license under chapter 44-20, the "Cigarette

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Tax," to an applicant that is a healthcare facility or that maintains a healthcare facility license.

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     This act would take effect upon passage.

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LC00889

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