HB 190: "An Act relating to certain licenses for the sale, distribution, or manufacture 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 HOUSE BILL NO. 190 01 "An Act relating to certain licenses for the sale, distribution, or manufacture of tobacco 02 products; relating to tobacco taxes and sales and cigarette tax stamps; relating to 03 provisions making certain cigarettes contraband and subject to seizure and forfeiture; 04 relating to certain crimes, penalties, and interest concerning tobacco taxes and sales; 05 relating to notification regarding a cigarette manufacturer's noncompliance with the 06 tobacco product Master Settlement Agreement or related statutory provisions and to 07 confiscation of the affected cigarettes; 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 shall adopt reasonable 06 regulations necessary for the collection of cigarette taxes on cigarette sales made 07 by the [MAY ISSUE PERMITS IN PLACE OF BONDS TO RESIDENT HOLDERS 08 OF] wholesaler-distributor licensee into this state and standards for 09 (1) application and issuance of the license; and 10 (2) refusal to issue the license [LICENSES DOING BUSINESS 11 WHOLLY IN THE STATE WHO PAY THE TAX BEFORE SHIPMENT]. 12 * Sec. 2. AS 43.50.040 is amended to read: 13 Sec. 43.50.040. Expiration of licenses. A license issued under AS 43.50.010 14 or 43.50.035 expires on June 30 [,] following the date of issue. If a license is revoked, 15 or the business for which the license is issued changes ownership or the licensee 16 changes the place of business from the premises covered by the license, the licensee 17 shall immediately return the license to the department. If the licensee moves the 18 business to another location in the state, the license shall, upon the payment of a fee of 19 50 cents, be reissued for the new location for the balance of the unexpired term. The 20 licensee, on application to the department accompanied by the renewal fee, may, 21 before the expiration of the license, renew the license for one year from the expiration 22 date of the license. 23 * Sec. 3. AS 43.50.070 is amended to read: 24 Sec. 43.50.070. Suspension or revocation [REVOCATION] of licenses. 25 The department may suspend or revoke a license issued under this chapter 26 [AS 43.50.010 - 43.50.180] (1) for a negligent violation of AS 11.76.100, 11.76.106, 27 11.76.107, or a violation of this chapter [AS 43.50.010 - 43.50.180] or a regulation of 28 the department adopted under this chapter [AS 43.50.010 - 43.50.180]; (2) if a 29 licensee ceases to act in the capacity for which the license was issued; or (3) if a 30 licensee [MANUFACTURER, DISTRIBUTOR, OR WHOLESALE DISTRIBUTOR] 31 negligently sells tobacco or products containing tobacco to a person who is required
01 to, but does not, hold a license endorsement under AS 43.70.075 or 02 [NONLICENSED RETAILER OR A RETAILER] whose license endorsement under 03 AS 43.70.075 has been suspended. A person whose license is suspended or revoked 04 may not sell cigarettes or tobacco products, or permit cigarettes or tobacco products 05 to be sold, during the period of the suspension or revocation on the premises occupied 06 or controlled by that person. A disciplinary proceeding or action is not barred or 07 abated by the expiration, transfer, surrender, renewal, or extension of a license issued 08 under this chapter [AS 43.50.010 - 43.50.180]. The department shall comply with the 09 provisions of AS 44.62 ( [THE] Administrative Procedure Act [(AS 44.62)]). 10 * Sec. 4. AS 43.50.070 is amended by adding a new subsection to read: 11 (b) In this section, "licensee" means a person licensed under AS 43.50.010 - 12 43.50.180 or 43.50.300 - 43.50.390. 13 * Sec. 5. AS 43.50.090(a) is amended to read: 14 (a) There is levied an excise tax of 38 mills on each cigarette imported or 15 acquired in the state. The tax shall be paid through the use of stamps as provided 16 in AS 43.50.500 - 43.50.700. The failure to pay the tax through the use of stamps 17 does not relieve a person of the obligation to pay taxes due under this chapter. 18 The person shall still pay the tax, and the tax is due on or before the end of the 19 month following the month in which cigarettes were manufactured, imported, 20 acquired, or sold in this state [EACH LICENSEE SHALL, AT THE TIME OF 21 FILING THE RETURN REQUIRED BY AS 43.50.080, PAY TO THE 22 DEPARTMENT THE EXCISE FOR THE CALENDAR MONTH COVERED BY 23 THE RETURN, DEDUCTING FOUR-TENTHS OF ONE PERCENT OF THE 24 TOTAL TAX DUE, WHICH THE LICENSEE SHALL RETAIN TO COVER THE 25 EXPENSE OF ACCOUNTING AND FILING RETURNS]. Cigarettes upon which 26 the excise is imposed are not again subject to the excise when acquired by another 27 person. 28 * Sec. 6. AS 43.50.100(d) is amended to read: 29 (d) A person or licensee who is in control or possession of cigarettes contrary 30 to this chapter [AS 43.50.010 - 43.50.180,] or who offers to sell or dispose of 31 cigarettes to others for the purpose of resale without being licensed to do so is
01 considered to have possession of the cigarettes as a consumer and is personally liable 02 for the cigarette taxes imposed by this chapter [TAX], plus a penalty of 100 percent 03 [PER CENT]. 04 * Sec. 7. AS 43.50.130(d) is amended to read: 05 (d) An invoice for the sale of cigarettes given or accepted by a licensee under 06 this chapter [AS 43.50.010 - 43.50.180] must state whether the taxes [tax] imposed 07 by this chapter have [AS 43.50.010 - 43.50.180 HAS] been paid. 08 * Sec. 8. AS 43.50.170(7) is amended to read: 09 (7) "person" includes an individual, company, partnership, limited 10 liability partnership, joint venture, joint agreement, limited liability company, 11 association, mutual or otherwise, corporation, estate, trust, business trust, receiver, 12 trustee, syndicate, or political subdivision of this state, or combination acting as a unit; 13 * Sec. 9. AS 43.50.170 is amended by adding new paragraphs to read: 14 (11) "tobacco product" has the meaning given in AS 43.50.390; 15 (12) "wholesaler-distributor" means a person outside this state who 16 sells or distributes cigarettes into this state and is not required to be licensed under 17 AS 43.50.010. 18 * Sec. 10. AS 43.50.190(b) is amended to read: 19 (b) The tax levied by this section is in addition to the tax levied by 20 AS 43.50.010 - 43.50.180. The tax shall be administered and collected in the same 21 manner as the tax levied by AS 43.50.010 - 43.50.180, except that receipts from the 22 tax shall be deposited in the general fund. The penalties provided in AS 43.05 and 23 this chapter apply to the tax levied in this section. 24 * Sec. 11. AS 43.50.320(f) is amended to read: 25 (f) The department may suspend or revoke a license issued under this section 26 as provided in AS 43.50.070 [IF THE LICENSEE VIOLATES A PROVISION OF 27 AS 43.50.300 - 43.50.390 OR A REGULATION ADOPTED UNDER AS 43.50.370]. 28 * Sec. 12. AS 43.50.390(5) is repealed and reenacted to read: 29 (5) "wholesale price" means 30 (A) the established price for which a manufacturer sells a 31 tobacco product to a distributor after deduction of a discount or other reduction
01 received by the distributor for quantity or cash if the manufacturer's established 02 price is adequately supported by bona fide arm's length sales as determined by 03 the department; or 04 (B) the price, as determined by the department, for which 05 tobacco products of comparable retail price are sold to distributors in the 06 ordinary course of trade if the manufacturer's established price does not meet 07 the standards of (A) of this paragraph. 08 * Sec. 13. AS 43.50 is amended by adding a new section to article 4 to read: 09 Sec. 43.50.395. Notification of noncompliance; confiscation of 10 noncomplying cigarettes. (a) The department shall notify a licensee in writing when 11 a determination has been made that a tobacco product manufacturer has failed to 12 comply with AS 45.53.020 or 45.53.040(a). The department's notification must 13 contain the name of the tobacco product manufacturer that failed to comply and its 14 affected brands of cigarettes. Upon receipt of the department's notification under this 15 section, the licensee may not sell or distribute the affected brands of cigarettes in this 16 state, and the licensee has 30 days to destroy the affected brands of cigarettes or return 17 the affected brands of cigarettes to the manufacturer or the distributor from which the 18 cigarettes were purchased. Beginning on the 31st day after the receipt of the notice, 19 the brands of cigarettes affected by the notice are contraband and subject to immediate 20 confiscation regardless of whether cigarette tax stamps have been affixed under 21 AS 43.50.500 - 43.50.700 to cigarette packages affected by the notice. The 22 department may allow a credit for the tax on the cigarettes destroyed or returned under 23 this section. 24 (b) Cigarettes confiscated under this section are forfeited to the state. After 25 notice and an opportunity for a hearing, the commissioner shall destroy the cigarettes 26 forfeited under this section. 27 (c) In this section, 28 (1) "cigarette" has the meaning given in AS 45.53.100; 29 (2) "licensee" means a person licensed by the department under 30 AS 43.50.010, 43.50.035, or 43.50.320; 31 (3) "tobacco product manufacturer" has the meaning given in
01 AS 45.53.100. 02 * Sec. 14. AS 43.50 is amended by adding new sections to read: 03 Article 5. Cigarette Tax Stamps. 04 Sec. 43.50.500. Tax payment by use of stamps. A licensee shall pay the tax 05 imposed under AS 43.50.090(a) and 43.50.190(a) through the use of stamps issued 06 under AS 43.50.500 - 43.50.700. 07 Sec. 43.50.510. Stamp design; manner of affixing. (a) The department shall 08 design and furnish stamps of sizes and denominations as determined by the 09 department. 10 (b) Notwithstanding the packaging requirements of AS 43.70.075(g)(1), a 11 stamp required under AS 43.50.500 - 43.50.700 must be affixed 12 (1) on the smallest package that will be handled, sold, used, consumed, 13 or distributed in this state; and 14 (2) in a denomination equal to the amount of tax due under this chapter 15 on the cigarettes in the package. 16 (c) A stamp required under AS 43.50.500 - 43.50.700 shall be affixed to the 17 bottom of each individual package of cigarettes in a manner so that the stamp cannot 18 be removed from the package without being mutilated or destroyed. 19 (d) For purposes of this section, a stamp is considered affixed only if more 20 than 60 percent of the stamp is attached to the individual package in accordance with 21 (c) of this section and regulations adopted by the department. 22 Sec. 43.50.520. Stamp required before sale, distribution, or consumption. 23 (a) Except as provided in AS 43.50.580, a licensee or the authorized agent or designee 24 of the licensee shall affix a stamp, in the manner required by AS 43.50.510, to each 25 package of cigarettes immediately upon the opening of the shipping container 26 containing the package and before sale, distribution, or consumption in this state. 27 (b) Except as provided in AS 43.50.580 and 43.50.610, a person may not 28 engage in the following activities in this state unless the package containing the 29 cigarettes is affixed with the required stamp: 30 (1) sell or distribute cigarettes to a person who is a consumer in this 31 state;
01 (2) acquire, hold, own, possess, or transport cigarettes for sale or 02 distribution in this state; 03 (3) import or cause to be imported cigarettes into this state for sale, 04 distribution, or consumption; or 05 (4) place or store cigarette packages in a vending machine in this state. 06 Sec. 43.50.530. Sale of stamps. (a) The department shall furnish stamps for 07 sale to licensees. 08 (b) The department may enter into agreements with financial institutions to 09 permit the sale of stamps by those institutions. The department shall make a list of 10 financial institutions authorized to sell stamps under this section available to the 11 public. 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 must be in writing and must be signed by the licensee. The licensee shall 18 provide a copy of the authorization to the department. The authorization continues in 19 effect until the department receives the licensee's written notice of revocation of the 20 authorization. 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 The discount under this subsection is provided as compensation for affixing stamps to 24 packages as required by AS 43.50.500 - 43.50.700. The department may reduce or 25 eliminate the discount to a licensee under this subsection if the licensee fails to meet 26 the requirements of AS 43.50.500 - 43.50.700. The discount under this subsection is 27 equal to the sum of the amounts calculated using the following percentages of 28 denominated value of stamps purchased by a licensee under this section in a calendar 29 year: 30 (1) $1,000,000 or less, three percent; 31 (2) the amount that is more than $1,000,000 but not more than
01 $2,000,000, two percent; 02 (3) the amount that is more than $2,000,000 but not more than 03 $5,000,000, 0.5 percent; 04 (4) the amount that is over $5,000,000, zero percent. 05 (d) Payment for stamps shall be made at the time of purchase, except that the 06 department may permit a licensee to defer payments as provided in AS 43.50.550. 07 (e) The licensee or the licensee's agent or designee must obtain the stamps in 08 person from the department or a financial institution authorized to sell stamps under 09 AS 43.50.530(b). Alternatively, the licensee may request in writing that the stamps be 10 shipped or transported in a manner specified by the licensee that is acceptable to the 11 department. The department may accept only United States mail or common or 12 private carrier as a shipping or transportation method. 13 (f) Title to the stamps passes immediately to the licensee at the time the 14 stamps are obtained in person or, if the stamps are shipped or transported, at the time 15 the stamps are placed in the United States mail or received by the common or private 16 carrier. The licensee bears all costs associated with shipping or transporting the 17 stamps and all risks of possible loss or damage while in transit. 18 (g) Loss, destruction, or theft of stamps does not absolve the licensee of its 19 obligation to make payment for the stamps, including payment on a deferred-payment 20 basis under AS 43.50.550. 21 (h) For purposes of the discount provided in (c) of this section, "stamps 22 purchased by a licensee" includes stamps purchased by affiliated licensees. 23 Sec. 43.50.550. Deferred-payment basis for stamps. (a) A licensee may 24 apply to the department to purchase stamps on a deferred-payment basis. Upon 25 receipt of the application and the bond required under (b) of this section, the 26 department may set the maximum dollar amount of stamps that the licensee is 27 authorized to purchase on a deferred-payment basis in a calendar month. 28 (b) A licensee who submits an application for the purchase of stamps on a 29 deferred-payment basis shall post a bond acceptable to the department in an amount 30 equal to 200 percent of the maximum dollar amount of allowed monthly purchases 31 under this section as a condition of approval of the application.
01 (c) Amounts owing for stamps purchased on a deferred-payment basis in a 02 calendar month are due on or before the last day of the next calendar month. Payment 03 shall be made by a remittance acceptable to the department that is made payable to the 04 department. 05 (d) The department may designate the sales locations where the licensee may 06 make purchases of stamps on a deferred-payment basis and fix the dollar amount of 07 purchases that the licensee may make under this section at each designated sales 08 location each month. 09 Sec. 43.50.560. Suspension of deferred-payment basis privilege. The 10 department may suspend, without prior notice, a licensee's privilege to purchase 11 stamps on a deferred-payment basis or may reduce the monthly dollar amount of 12 purchases the licensee may make under AS 43.50.550 if 13 (1) the licensee fails to pay for stamps when payment is due; 14 (2) the licensee's bond is cancelled or becomes void, impaired, or 15 unenforceable; 16 (3) the department determines that the collection of an amount unpaid 17 or due from the licensee under this chapter is jeopardized; or 18 (4) the licensee violates a state statute or regulation related to the 19 collection of taxes under this chapter. 20 Sec. 43.50.570. Interest. A licensee who fails to pay an amount due for the 21 purchase of stamps within the time required 22 (1) is considered to have failed to pay the cigarette taxes due under this 23 chapter; and 24 (2) shall pay interest at the rate established under AS 43.05.225 from 25 the date on which the amount became due until the date of payment. 26 Sec. 43.50.580. Possession of unstamped cigarettes. (a) Except as provided 27 in (b) of this section and in AS 43.50.610, a person may not possess unstamped 28 cigarettes in this state. 29 (b) A licensee may possess unstamped cigarettes in this state if 30 (1) the licensee posts a surety bond in an amount satisfactory to the 31 department to ensure performance of its duties under this chapter; and
01 (2) unstamped cigarettes are necessary for the conduct of the licensee's 02 business in making sales or distributions to an instrumentality of the federal 03 government or an Indian tribal organization authorized by law to possess cigarettes not 04 taxed under this chapter. 05 (c) At the time of shipping or delivering cigarettes to an instrumentality of the 06 federal government or an Indian tribal organization authorized by law to possess 07 cigarettes not taxed under this chapter, a licensee shall make a duplicate invoice 08 showing complete details of the shipment or other distribution and a statement 09 indicating whether stamps were affixed to each cigarette package in accordance with 10 AS 43.50.500 - 43.50.700. The licensee shall transmit the duplicate invoice to the 11 department as an attachment to the monthly report required under AS 43.50.630. 12 (d) If a licensee who is authorized to possess unstamped cigarettes under (b) 13 of this section fails to comply with the requirements of this section, the licensee is no 14 longer authorized to and may not possess unstamped cigarettes under this section and 15 is subject to the imposition of any applicable penalty under this title or other law. 16 (e) For purposes of (a) of this section, "person" does not include entities to 17 whom sales or distributions are made as described in (b)(2) of this section. 18 Sec. 43.50.590. Refunds or credits for unused stamps and for unsalable, 19 destroyed, or certain returned cigarette packages. (a) The department shall adopt 20 procedures for a refund or credit to a licensee in the amount of the denominated value, 21 less the discount given under AS 43.50.540, for 22 (1) unused or damaged stamps; or 23 (2) stamps affixed to cigarette packages that have become unfit for use 24 or sale, are destroyed, or are returned to the manufacturer for credit or replacement if 25 the licensee provides proof acceptable to the department that the cigarettes have not 26 been and will not be consumed in this state. 27 (b) A refund or credit under (a) of this section may not be allowed for stamps 28 affixed to cigarette packages in violation of this chapter. 29 Sec. 43.50.600. Stamps prohibited on cigarette packages not complying 30 with federal and state laws. A licensee or the licensee's authorized agent or designee 31 may not affix a stamp to a cigarette package if
01 (1) the cigarettes may not be acquired, held, owned, imported, 02 possessed, sold, or distributed in this state under AS 43.50.400; or 03 (2) the licensee has received notification from the department under 04 AS 43.50.395 that the manufacturer of the cigarettes has not complied with 05 AS 45.53.020 or filed a certification of compliance with the state under 06 AS 45.53.040(a). 07 Sec. 43.50.610. Unstamped cigarettes as contraband; seizure. Unstamped 08 cigarettes found in this state are contraband and may be seized by the commissioner or 09 an agent or employee of the commissioner or by any peace officer of the state, unless 10 (1) the cigarettes are 11 (A) in the possession of a licensee or are in transit from outside 12 the state and are consigned to a licensee; and 13 (B) in the original and unopened shipping container; or 14 (2) possession of the unstamped cigarettes is not a violation of this 15 chapter. 16 Sec. 43.50.620. Forfeiture and destruction of seized cigarettes. Cigarettes 17 seized under AS 43.50.500 - 43.50.700 are forfeited to the state. After notice and an 18 opportunity for a hearing, the commissioner shall destroy the cigarettes forfeited under 19 this section. 20 Sec. 43.50.630. Monthly reports; records retention; inspection of records. 21 (a) On or before the last day of each calendar month, a licensee shall file the 22 following information for each place of business with the department, on a form or in 23 a format prescribed by the department: 24 (1) the quantity and brands of cigarettes manufactured, imported, 25 acquired, or sold in the state during the preceding calendar month; 26 (2) the number and dollar amount of stamps purchased during the 27 preceding calendar month; 28 (3) the number and dollar amount of stamps affixed to cigarette 29 packages during the preceding calendar month; 30 (4) the number and dollar amount of stamps not affixed to cigarette 31 packages and on hand at the end of the preceding calendar month; and
01 (5) any other information that the department requires to carry out its 02 duties under this chapter. 03 (b) If a licensee ceases to manufacture, import, acquire, or sell cigarettes, the 04 licensee shall immediately file the form required under (a) of this section with the 05 department, for the period ending with the cessation. 06 (c) All statements and other records required by AS 43.50.500 - 43.50.700 07 must be 08 (1) in a form or format prescribed by the department; 09 (2) preserved by a licensee for a period of three years; and 10 (3) available for inspection at any time upon oral or written demand by 11 the department or its authorized agent. 12 Sec. 43.50.640. Misconduct involving unstamped cigarettes or stamps in 13 the first degree. (a) A person commits the crime of misconduct involving unstamped 14 cigarettes or stamps in the first degree if the person 15 (1) sells or distributes 1,000 or more unstamped cigarettes in a single 16 transaction; 17 (2) with the intent to sell, owns or possesses 1,000 or more unstamped 18 cigarettes; 19 (3) acquires, holds, transports, imports, or possesses 10,000 or more 20 unstamped cigarettes; 21 (4) affixes a stamp to a cigarette package if the stamp was previously 22 affixed to another cigarette package; or 23 (5) possesses, sells, or distributes a stamp that was previously affixed 24 to a cigarette package. 25 (b) Each sale or distribution of 1,000 or more cigarettes in violation of (a)(1) 26 of this section is a separate violation. 27 (c) Misconduct involving unstamped cigarettes or stamps in the first degree is 28 a class C felony. 29 Sec. 43.50.650. Misconduct involving unstamped cigarettes or stamps in 30 the second degree. (a) A person commits the crime of misconduct involving 31 unstamped cigarettes or stamps in the second degree if the person
01 (1) sells or distributes at least one but less than 1,000 unstamped 02 cigarettes in a single transaction; 03 (2) with the intent to sell, owns or possesses at least one but less than 04 1,000 unstamped cigarettes; 05 (3) acquires, holds, transports, imports, or possesses at least one but 06 less than 10,000 unstamped cigarettes; or 07 (4) is not licensed under this chapter or otherwise authorized by the 08 department to possess stamps and possesses a stamp that is not affixed to a cigarette 09 package. 10 (b) Each sale or distribution of at least one but less than 1,000 cigarettes in 11 violation of (a)(1) of this section is a separate violation. 12 (c) Misconduct involving unstamped cigarettes or stamps in the second degree 13 is a class A misdemeanor. 14 Sec. 43.50.660. Construction of criminal statutes. (a) The provisions of 15 AS 11.16, AS 11.81.600, 11.81.610, and 11.81.900 apply to AS 43.50.640 and 16 43.50.650. 17 (b) For purposes of AS 43.50.640 and 43.50.650, display of cigarettes by a 18 person, or possession other than in the original and unopened shipping container of 19 cigarettes by a person who holds a business license endorsement under AS 43.70.075, 20 is prima facie evidence of possession with intent to sell cigarettes. In this subsection, 21 "display" means to openly exhibit. 22 Sec. 43.50.670. Unauthorized transfer of unaffixed stamps. (a) A licensee 23 may not sell, exchange, or otherwise transfer stamps not affixed to a package of 24 cigarettes in accordance with this chapter to another person without the prior written 25 approval of the department. 26 (b) After notice and hearing, the department may assess a civil fine of not less 27 than $500 nor more than $1,000 for a violation of (a) of this section. The fine assessed 28 is in addition to any other penalty available under the law. 29 Sec. 43.50.700. Definitions. In AS 43.50.500 - 43.50.700, unless the context 30 otherwise requires, 31 (1) "affiliated licensees" means two or more licensees in which the
01 same person holds, directly or indirectly, at least a 50 percent ownership interest; 02 (2) "carton" means a box or container originating from the 03 manufacturer that contains packages of that manufacturer's cigarettes; 04 (3) "cigarette" has the meaning given in AS 43.50.170; 05 (4) "licensee" means a person licensed by the department under 06 AS 43.50.010 or 43.50.035 to sell, distribute, purchase, possess, or acquire cigarettes; 07 (5) "package" means the individual packet, box, or other container, 08 originating from the manufacturer, in which retail sales of cigarettes are normally 09 made or intended to be made; "package" does not include containers that are cartons, 10 cases, bales, or boxes that contain packages of cigarettes; 11 (6) "person" has the meaning given in AS 43.50.170; 12 (7) "shipping container" means the case, box, parcel, or other container 13 in which cartons or packages of cigarettes are placed for shipment or transportation 14 from one place to another; "shipping container" does not include a package in which 15 retail sales of cigarettes are normally made or intended to be made; 16 (8) "stamp" means a stamp or other indicium that is 17 (A) printed, manufactured, or made under authorization of the 18 department under this chapter; 19 (B) issued, sold, or circulated by the department; and 20 (C) used to pay the cigarette taxes levied under this chapter; 21 (9) "unstamped cigarettes" means a package containing cigarettes that 22 is not affixed with the stamp required by AS 43.50.500 - 43.50.700. 23 * Sec. 15. AS 43.50.080 and 43.50.145 are repealed. 24 * Sec. 16. The uncodified law of the State of Alaska is amended by adding a new section to 25 read: 26 TRANSITION: REGULATIONS. Notwithstanding sec. 20 of this Act, the 27 Department of Revenue may immediately proceed to adopt regulations necessary to 28 implement the changes made by this Act. The regulations take effect under AS 44.62 29 (Administrative Procedure Act), but not before the effective date of the respective statutory 30 changes. 31 * Sec. 17. The uncodified law of the State of Alaska is amended by adding a new section to
01 read: 02 TRANSITION: ACTIVITIES INVOLVING UNSTAMPED CIGARETTES 03 THROUGH MARCH 31, 2004. (a) Notwithstanding the requirements of AS 43.50.500 - 04 43.50.700, enacted by sec. 14 of this Act, a person may acquire, hold, own, import, possess, 05 sell, distribute, or consume unstamped cigarettes in this state on or after January 1, 2004, and 06 on or before March 31, 2004, if the cigarettes were in this state before January 1, 2004. 07 (b) In this section, "unstamped cigarettes" has the meaning given in AS 43.50.700, 08 enacted by sec. 14 of this Act. 09 * Sec. 18. The uncodified law of the State of Alaska is amended by adding a new section to 10 read: 11 REVISOR INSTRUCTION. The revisor of statutes is instructed to change the 12 heading of art. 4 of AS 43.50 from "Compliance with Federal Laws Relating to Cigarettes" to 13 "Compliance with Other Laws Relating to Cigarettes." 14 * Sec. 19. Section 16 of this Act takes effect immediately under AS 01.10.070(c). 15 * Sec. 20. Except as provided in sec. 19 of this Act, this Act takes effect January 1, 2004.