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AN ACT RELATING TO GRAY MARKETED CIGARETTES
It is hereby enacted by the General Assembly of the State of Vermont:
Sec. 1. FINDINGS
The General Assembly hereby finds that:
(1) Cigarette smoking presents serious public health concerns to the
state and to the citizens of the state. The U.S. Surgeon General has determined
that smoking causes lung cancer, heart disease, other serious diseases, and that
there are hundreds of thousands of tobacco-related deaths each year. These
diseases often do not appear until many years after the person in question
begins smoking.
(2) It is the policy of Vermont that consumers be adequately informed
about the adverse health effects of cigarette smoking by including the
federally-mandated warning notices on each package of cigarettes.
(3) It is the policy of Vermont that manufacturers and importers of
cigarettes shall not make any material misrepresentation of fact regarding the
health consequences of using cigarettes, including compliance with applicable
federal laws, regulations, and policies.
(4) It is the intent of the legislature to align state and federal laws,
regulations, and policies relating to the manufacture, importation, and
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marketing of cigarettes; specifically, the federal Cigarette Labeling and
Advertising Act (15 U.S.C. Sec. 1331 et seq.) and 26 U.S.C. § 5754.
(5) The legislature finds that consumers and retailers purchasing
cigarettes are entitled to be fully informed about any adverse health effects of
cigarette smoking by inclusion of warning notices on each package of
cigarettes and to be assured through appropriate enforcement measures that
cigarettes they purchase in the state were manufactured for consumption within
the United States.
Sec. 2. 32 V.S.A. § 7779 is amended to read:
§ 7779. --SEIZURE
Any cigarettes found at any place in this state without stamps affixed
thereto or without stamps properly affixed thereto, as required by this chapter,
or any tobacco products found at any place in this state upon which the tax
imposed by this chapter has not been paid, are declared to be contraband goods
and may be seized without a warrant by the commissioner, the commissioner's
agents, or employees, or by any peace officer of this state when directed by the
commissioner to do so, unless such cigarettes or tobacco products shall be in
the possession of a licensed wholesale dealer, or unless they shall be in the
course of transit and consigned to a licensed wholesale dealer, or a retail
dealer, or unless they shall have been received by a retail dealer within
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twenty-four 24 hours. Nothing herein shall be construed to require the
commissioner to confiscate unstamped cigarettes or tobacco products when the
commissioner shall have reason to believe that the owner thereof has
possession of the same for personal consumption or is not wilfully willfully or
intentionally evading the tax imposed by this chapter. Any cigarettes or
tobacco products seized under the provisions of this chapter shall be destroyed
by the commissioner. The seizure of any cigarettes or tobacco products under
the provisions of this section shall not relieve any person from a fine or other
penalty for violation of this chapter.
Sec. 3. 32 V.S.A. § 7786 is added to read:
§ 7786. GRAY MARKETED CIGARETTES
(a) A package or container of cigarettes shall not have a stamp affixed to or
made upon if:
(1) the container or package does not comply with all the requirements
of the federal Cigarette Labeling and Advertising Act (15 U.S.C. Sec. 1331 et
seq.) for the placement of labels, warnings, or any other information upon a
package of cigarettes that is to be sold within the United States;
(2) the container or package has been imported into the United States
after January 1, 2000, in violation of 26 U.S.C. § 5754;
(3) the container or package, including a container of
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individually-stamped containers or packages is labeled “For Export Only”,
“U.S. Tax Exempt”, “For Use Outside U.S.”, or similar wording indicating that
the manufacturer did not intend that the product be sold in the United States; or
(4) the container or package has been altered by making or deleting the
wording described in subdivision (3) of this subsection.
(b) A violation of any provision of this section shall constitute an unfair or
deceptive act and practice in commerce prohibited under section 2453 of
Title 9, and shall be subject to enforcement and to the rights and remedies
provided for under chapter 63 of Title 9. In addition to any other remedy or
penalty provided for under law, a violation of this section shall be subject to
the forfeiture provisions otherwise provided by this chapter.
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