SN 93(19)

1993 Legislation Affecting Licensed Cigarette
Distributors and Dealers

PURPOSE: The purpose of this Special Notice is to describe two recently enacted public acts, one of which imposes an additional requirement for licensure as a cigarette distributor and the other of which imposes mandatory penalties for violation of the cigarette minimum pricing laws.

STATUTORY AUTHORITY: 1993 Conn. Pub. Acts 74, §12, amending Conn. Gen. Stat. §12-286, and 1993 Conn. Pub. Acts 368, §1, amending Conn. Gen. Stat. §12-295.

EFFECTIVE DATE: October 1, 1993.

FILING OF AFFIDAVITS FROM THREE RECOGNIZED DOMESTIC CIGARETTE MANUFACTURERS: In enacting 1993 Conn. Pub. Acts 74, §12, the General Assembly has amended Conn. Gen. Stat. §12-286 so that persons applying for a distributor's license are required to file, in addition to such other information as may be deemed necessary, affidavits from three recognized domestic cigarette manufacturers. Each affidavit must attest to such manufacturer's intent to supply the applicant if the applicant is granted a distributor's license. If the affidavits are not submitted, the applicant will not be granted a distributor's license. The Department is seeking an opinion from the Attorney General concerning whether this provision violates the laws or constitution of the United States, but must enforce this provision unless and until the Attorney General advises that the provision violates the laws or constitution of the United States.

MANDATORY PENALTIES FOR VIOLATION OF MINIMUM PRICING LAW: In enacting 1993 Conn. Pub. Acts 368, §1, the General Assembly has amended Conn. Gen. Stat. §12-295 so that the Department is required to impose the following penalties on licensed cigarette distributors or dealers violating the cigarette minimum pricing laws:

• for initial violation: suspension of license for not less than seven days and assessment of a penalty of not less than $1,000.
• for second or subsequent violation within a five year period: suspension of license for not less than 30 days and assessment of a penalty of not less than $5,000.
• for any violation: the conspicuous display of a notice stating that cigarettes cannot be sold by such dealer or distributor during the period of such suspension and the reasons therefor. The sale of cigarettes by such dealer or distributor during any period of suspension shall be deemed an additional violation of this law.

EFFECT OF THIS DOCUMENT: A Special Notice is a document that announces a new policy or practice in response to changes in State or federal laws or regulations or to judicial decisions. A Special Notice indicates the Department's informal interpretation of Connecticut tax law and may be referred to for general guidance by taxpayers or tax practitioners.

EFFECT ON OTHER DOCUMENTS: None affected.