September 7, 2005, Introduced by Reps. Gaffney, Mortimer and Hune and referred to the Committee on Regulatory Reform.
A bill to amend 1993 PA 327, entitled
"Tobacco products tax act,"
by amending section 11 (MCL 205.431), as amended by 2004 PA 474.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 11. (1) A person, either as principal or agent, shall not
sell or solicit a sale of a tobacco product to be shipped, mailed,
or otherwise sent or brought into the state, to a person not a
licensed manufacturer, licensed wholesaler, licensed secondary
wholesaler, licensed vending machine operator, licensed
unclassified acquirer, licensed transporter, or licensed
transportation company, unless the tobacco product is to be sold to
or through a licensed wholesaler.
(2) All sales conducted through the internet, by telephone, or
in a mail-order transaction shall not be completed unless, before
each delivery of cigarettes is made, whether through the mail,
through a transportation company, or through any other delivery
system, the seller has obtained from the purchaser an affirmation
that includes a copy of a valid government-issued document that
confirms the purchaser's name, address, and date of birth showing
that the purchaser is at least the legal minimum age to purchase
cigarettes; that the cigarettes purchased are not intended for
consumption by an individual who is younger than the legal minimum
age to purchase cigarettes; and a written statement signed by the
purchaser that affirms the purchaser's address and that the
purchaser is at least the minimum legal age to purchase cigarettes.
The statement shall also confirm that the purchaser understands
that signing another person's name to the affirmation is illegal;
that the sale of cigarettes to individuals under the legal minimum
purchase age is illegal; and that the purchase of cigarettes by
individuals under the legal minimum purchase age is illegal under
the laws of the state of Michigan. The seller shall verify the
information contained in the affirmation provided by the purchaser
against a commercially available database of governmental records,
or obtain a photocopy, fax copy, or other image of the valid,
government-issued identification stating the date of birth or age
of the purchaser.
(3)
All invoices, bills of lading, sales receipts, or other
documents related to cigarette sales conducted through the
internet, by telephone, or in a mail-order transaction shall
contain the current seller's valid Michigan sales tax registration
number, business name and address of the seller, and a statement as
to whether all sales taxes and taxes levied under this act have
been paid. All packages of cigarettes shipped from a cigarette
seller to purchasers who reside in Michigan shall clearly print or
stamp the package with the word "CIGARETTES" on the outside of all
sides of the package so it is clearly visible to the shipper. In
addition, the package shall contain an externally visible and
clearly legible notice located on the same side of the package as
the address to which the package is delivered, as follows:
"IF THESE CIGARETTES HAVE BEEN SHIPPED TO YOU FROM A SELLER
LOCATED OUTSIDE OF THE STATE IN WHICH YOU RESIDE, THE SELLER HAS
REPORTED UNDER FEDERAL LAW THE SALE OF THESE CIGARETTES TO OUR
STATE TAX COLLECTION AGENCY, INCLUDING YOUR NAME AND ADDRESS. YOU
ARE LEGALLY RESPONSIBLE FOR ALL APPLICABLE UNPAID STATE TAXES ON
THESE CIGARETTES."
If an order is made as a result of advertisement over the
internet, the tobacco retailer shall request the electronic mail
address of the purchaser and shall receive payment by credit card
or check before shipping. This subsection and subsection (2) do not
apply to sales by wholesalers and unclassified acquirers.
(4) The
Any person who completes a
sale of cigarettes
conducted through the internet, by telephone, or in a mail-order
transaction shall use a method of mailing, shipping, or delivery
that
obligates the deliverer of the
cigarettes is required to
obtain
proof from a valid government-issued document that the
person
signing for the cigarettes is the purchaser to require an
individual who is at least the minimum legal age to purchase
cigarettes to sign to accept delivery of the shipping container.
(5) As used in this section:
(a) "Computer" means any connected, directly interoperable or
interactive device, equipment, or facility that uses a computer
program or other instructions to perform specific operations,
including logical, arithmetic, or memory functions with or on
computer data or a computer program, and that can store, retrieve,
alter, or communicate the results of the operations to a person,
computer program, computer, computer system, or computer network.
(b) "Computer network" means the interconnection of hardwire
or wireless communication lines with a computer through remote
terminals or a complex consisting of 2 or more interconnected
computers.
(c) "Computer program" means a series of internal or external
instructions communicated in a form acceptable to a computer that
directs the functioning of a computer, computer system, or computer
network in a manner designed to provide or produce products or
results from the computer, computer system, or computer network.
(d) "Computer system" means related, connected or unconnected,
computer equipment, devices, software, or hardware.
(e) "Credit card" means a card or device issued by a person
licensed under 1984 PA 379, MCL 493.101 to 493.114, or under the
consumer financial services act, 1988 PA 161, MCL 487.2051 to
487.2072, or issued by a depository financial institution as
defined in section 1a of the mortgage brokers, lenders, and
services licensing act, 1987 PA 173, MCL 445.1651a, under a credit
card arrangement.
(f) "Device" includes, but is not limited to, an electronic,
magnetic, electrochemical, biochemical, hydraulic, optical, or
organic object that performs input, output, or storage functions by
the manipulation of electronic, magnetic, or other impulses.
(g) "Internet" means the connection to the world wide web
through the use of a computer, a computer network, or a computer
system.
(h) "Sale conducted through the internet" means a sale of, a
solicitation to sell, a purchase of, or an offer to purchase
cigarettes conducted all or in part by accessing an internet
website.