SB166 (2005) Detail

Relative to procedures for the forfeiture and sale of unstamped tobacco products.


SB 166-FN – AS INTRODUCED

2005 SESSION

05-0981

09/01

SENATE BILL 166-FN

AN ACT relative to procedures for the forfeiture and sale of unstamped tobacco products.

SPONSORS: Sen. Clegg, Dist 14; Sen. Odell, Dist 8; Rep. Dickinson, Carr 1

COMMITTEE: Ways and Means

ANALYSIS

This bill permits the department of revenue administration to seize and forfeit unstamped and invalidly stamped tobacco products without court proceedings. The bill allows the department to hold liquidation sales of forfeited unstamped and invalidly stamped tobacco products or to destroy such products.

This bill was requested by the department of revenue administration.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

05-0981

09/01

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Five

AN ACT relative to procedures for the forfeiture and sale of unstamped tobacco products.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Seizure, Forfeiture, Sale, and Destruction of Illegal Tobacco Products. RSA 78:16 is repealed and reenacted to read as follows:

78:16 Seizure, Forfeiture, Sale, and Destruction of Illegal Tobacco Products.

I. Unless tobacco products are subject to the exemption under RSA 78:12, II, or unless they are in the possession of a licensed manufacturer or wholesaler, or unless they are in the course of transit by common carrier from a bonded warehouse and consigned to a licensed manufacturer, wholesaler, or anyone excepted by statute, any tobacco products which are without the necessary stamps affixed to them, or are misstamped, or have been stamped with an invalid state stamp or out-of-state stamp shall be considered to be contraband goods and are forfeited to the state. The commissioner, the commissioner’s authorized agents, sheriffs, deputy sheriffs, and police officers shall have the power to immediately seize such tobacco products in the manner provided by this section or by RSA 617.

II. Immediately upon the seizure of the contraband goods, the officer conducting the seizure shall serve upon the person in possession of the contraband goods a notice of intention to sell or destroy the goods on a date at least 60 days after the date of seizure. The notice shall inform the person in possession of the contraband goods that the person may request a hearing before the commissioner concerning the seizure, forfeiture, sale, or destruction of the goods within 60 days of the date of seizure of the goods; that destruction of the goods shall be at the expense of such person, for which such person shall be billed and shall be liable after the destruction; and that the contraband goods shall not be destroyed until after the 60-day period for requesting a hearing before the commissioner has expired.

III. In cases where a hearing before the commissioner is requested, within 30 days of the notice of the commissioner’s decision on the matters heard, the person requesting the hearing may appeal such decision by written application to the board of tax and land appeals or the superior court in the county in which such person resides or has a place of business or a resident agent.

IV. The commissioner and his or her authorized agents are hereby authorized to enter into written settlement agreements with persons in possession of the contraband goods described in this section resolving all claims under this section and RSA 617. These agreements shall:

(a) State that the owner of the contraband goods, or the owner’s authorized agent, is the person in possession of the contraband goods and that the owner agrees that the contraband goods are subject to forfeiture pursuant to this section or RSA 617.

(b) State the approximate value of the contraband goods.

(c) Transfer title of the contraband goods to the department, the commissioner, or authorized agents.

(d) Authorize the department, the commissioner, or his or her authorized agents to dispose of the contraband goods at no expense to the owner or his or her authorized agent.

(e) Provide that the owner of the contraband goods or the owner’s authorized agents are liable for any claims of third parties to the contraband goods arising under this chapter or RSA 617.

V. The commissioner shall have the authority to sell the contraband goods to a licensed wholesaler as an alternative to the destruction of such contraband goods. The procedure and procedural protections for the forfeiture of unstamped tobacco products as contraband goods shall be the same whether the contraband goods are sold or destroyed.

2 Effective Date. This act shall take effect January 1, 2006.

LBAO

05-0981

1/14/05

SB 166-FN - FISCAL NOTE

AN ACT relative to procedures for the forfeiture and sale of unstamped tobacco products.

FISCAL IMPACT:

The Department of Revenue Administration states this bill may increase state general fund revenue by an indeterminable amount in FY 2006 and each year thereafter. There will be no fiscal impact on state, county, and local expenditures or county and local revenues.

METHODOLOGY:

The Department states this bill would allow the department to seize and forfeit unstamped and invalidly stamped tobacco products. The products could be auctioned off by the Department to raise revenue for the state general fund. The Department is unable to determine the exact fiscal impact at this time.

Links

SB166 at GenCourtMobile

Action Dates

Date Body Type

Bill Text Revisions

SB166 Revision: 9221 Date: Jan. 21, 2010, midnight

Docket