71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 1235-1
B-Engrossed
Senate Bill 423
Ordered by the Senate May 14
Including Senate Amendments dated April 4 and May 14
Printed pursuant to Senate Interim Rule 213.28 by order of the
President of the Senate in conformance with presession filing
rules, indicating neither advocacy nor opposition on the part
of the President (at the request of Governor John A. Kitzhaber,
M.D., for Department of Revenue)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
Modifies criminal and civil penalties for violations of
cigarette tax laws.
{ + Creates crime of unlawful distribution of cigarettes.
Punishes by maximum one year's imprisonment, $5,000 fine, or
both. Creates cause of action for injunctive relief for certain
persons who sustain direct economic or commercial injury due to
unlawful distribution of cigarettes. + }
Takes effect on 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to cigarette tax law enforcement; creating new
provisions; amending ORS 323.990; and prescribing an effective
date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 323.990 is amended to read:
323.990. { + (1) A civil penalty may be imposed in the manner
provided in ORS 183.090 on any person who violates any provision
of ORS 323.005 to 323.455. A civil penalty imposed under this
subsection may not exceed $1,000 per violation. + }
{ - (1) - } { + (2)(a) + } Any person required to obtain a
license as a distributor under ORS 323.005 to 323.455 who { + ,
with the intent to defeat or evade the requirement that the
person be licensed, + } engages in business as a distributor
without a license or after a license has been canceled, suspended
{ - , - } or revoked, and each officer of any corporation
{ - which so - } { + that + } engages in business { + with
that intent + }, is guilty of a { - misdemeanor, and upon
conviction thereof, shall be fined not more than $1,000, or shall
be imprisoned for not more than one year, or both, for each
offense - } { + Class C felony + }.
{ + (b) This subsection does not apply to a person who
distributes fewer than 60,000 cigarettes. + }
{ - (2) Any person who fails or refuses to file any report
required to be made by ORS 323.005 to 323.455, or who fails or
refuses to furnish a supplemental report or other data required
by the Department of Revenue under ORS 323.005 to 323.455, or who
renders a false report is guilty of a misdemeanor and, upon
conviction thereof, shall be fined not more than $500 for each
offense. - }
(3) Any person required to make, render, sign or verify any
report under ORS 323.005 to 323.455 { - , - } who makes any
false report with { + the + } intent to defeat or evade
{ - the determination required by law to be made - } { + any
requirement imposed on the person by ORS 323.005 to 323.455 + }
is guilty of a { - misdemeanor and, upon conviction thereof,
shall be fined not more than $5,000, or be imprisoned for not
exceeding one year in the county jail, or be subject to both fine
and imprisonment, in the discretion of the circuit court - }
{ + Class C felony + }.
{ - (4) Any transporter who violates the provisions of ORS
323.225 shall be guilty of a misdemeanor and, upon conviction
thereof, shall be fined not more than $1,000, or be imprisoned
for not exceeding one year in the county jail, or be subject to
both fine and imprisonment, in the discretion of the circuit
court. - }
{ + (4)(a) Any transporter who violates the provisions of ORS
323.225 with the intent to defeat or evade a requirement imposed
by ORS 323.225, or with the intent to aid another to defeat or
evade the determination or payment of a cigarette tax imposed
under ORS 323.005 to 323.455, is guilty of a Class C felony.
(b) This subsection does not apply to a transporter who
transports or possesses or acquires for the purpose of
transporting fewer than 60,000 cigarettes. + }
(5) Any person who violates any provisions of ORS 323.005 to
323.455, except as otherwise provided { + in this section, with
the intent to defeat or evade a requirement imposed on the person
by ORS 323.005 to 323.455 + }, is guilty of a { + Class A + }
misdemeanor { - and, upon conviction thereof, shall be fined
not more than $500 for each offense - } .
{ + (6) A person who files a fraudulent refund claim under
ORS 323.320 is guilty of a Class C felony. + }
SECTION 2. { + Section 3 of this 2001 Act is added to and made
a part of ORS 323.005 to 323.455. + }
SECTION 3. { + (1) A person commits the crime of unlawful
distribution of cigarettes if the person knowingly sells or
distributes, possesses or transports for sale or distribution or
imports for sale or distribution cigarettes that do not comply
with ORS 323.005 to 323.455 or 323.850 to 323.862, the Federal
Cigarette Labeling and Advertising Act (15 U.S.C. 1331 et seq.)
or section 5754 of the Internal Revenue Code.
(2) Unlawful distribution of cigarettes is a Class A
misdemeanor.
(3) Cigarettes sold, distributed, possessed, transported or
imported in violation of subsection (1) of this section are
contraband and subject to destruction under ORS 133.623.
(4) A person who manufactures, distributes or sells cigarettes
and who sustains a direct economic or commercial injury as a
result of a violation of subsection (1) of this section may bring
an action for appropriate injunctive relief.
(5) The penalties set forth in this section are in addition to
and not in lieu of any other applicable penalties or
sanctions. + }
SECTION 4. { + This 2001 Act takes effect on the 91st day
after the date on which the regular session of the Seventy-first
Legislative Assembly adjourns sine die. + }
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