An amendment numbered 12 printed in part B of House Report 109-178 to amend the Contraband Cigarette Trafficking Act (18 U.S.C. 2341 et seq.)("CCTA") which makes it unlawful for any person knowingly to ship, posses, sell, distribute or purchase contraband cigarettes. The CCTA would be amended by: (1) extending its provisions to cover contraband smokeless tobacco; (2)reducing the number of cigarettes that trigger application of the CCTA from 60,000 to 10,000 cigarettes; (3) imposing reporting requirements on persons, except tribal governments, who engage in delivery sales of more than 10,000 cigarettes or 500 single-unit cans or packages of smokeless tobacco in a single month; (4) requiring the destruction of cigarettes and smokeless tobacco seized and forfeited under the CCTA; and (5) authorizing state and local governments, and certain persons holding federal tobacco permits, to bring causes of action against violators of the CCTA.
What it does: Adds SECTION 17. PENAL PROVISIONS REGARDING TRAFFICKING IN CONTRABAND CIGARETTES OR SMOKELESS TOBACCO at the end of the bill
Rep. Howard Coble (R-NC)Description
Amendment, as modified, amends the Contraband Cigarette Trafficking Act by lowering the threshold requirements for a violation of the Act, applying the Act to smokeless tobacco, imposing certain reporting requirements, and specifying who may bring causes of action against violators of the Act.
We couldn't match these changes to the text of H.R. 3199, so they're shown as written.
Adds SECTION 17. PENAL PROVISIONS REGARDING TRAFFICKING IN CONTRABAND CIGARETTES OR SMOKELESS TOBACCO at the end of the bill
Adds a sectionInserted: SECTION 17. PENAL PROVISIONS REGARDING TRAFFICKING IN CONTRABAND CIGARETTES OR SMOKELESS TOBACCO.
Inserted: (a) Threshold Quantity for Treatment as Contraband Cigarettes.--(1) Section 2341(2) of title 18, United States Code, is amended by striking "60,000 cigarettes" and inserting "10,000 cigarettes".
Inserted: (2) Section 2342(b) of that title is amended by striking "60,000" and inserting "10,000".
Inserted: (3) Section 2343 of that title is amended--
Inserted: (A) in subsection (a), by striking "60,000" and inserting "10,000"; and
Inserted: (B) in subsection (b), by striking "60,000" and inserting "10,000".
Inserted: (b) Contraband Smokeless Tobacco.--(1) Section 2341 of that title is amended--
Inserted: (A) in paragraph (4), by striking "and" at the end;
Inserted: (B) in paragraph (5), by striking the period at the end and inserting a semicolon; and
Inserted: (C) by adding at the end the following new paragraphs:
Inserted: "(6) the term 'smokeless tobacco' means any finely cut, ground, powdered, or leaf tobacco that is intended to be placed in the oral or nasal cavity or otherwise consumed without being combusted;
Inserted: "(7) the term 'contraband smokeless tobacco' means a quantity in excess of 500 single-unit consumer-sized cans or packages of smokeless tobacco, or their equivalent, that are in the possession of any person other than--
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Inserted: "(A) a person holding a permit issued pursuant to chapter 52 of the Internal Revenue Code of 1986 as manufacturer of tobacco products or as an export warehouse proprietor, a person operating a customs bonded warehouse pursuant to section 311 or 555 of the Tariff Act of 1930 (19 U.S.C. 1311, 1555), or an agent of such person;
Inserted: "(B) a common carrier transporting such smokeless tobacco under a proper bill of lading or freight bill which states the quantity, source, and designation of such smokeless tobacco;
Inserted: "(C) a person who--
Inserted: "(i) is licensed or otherwise authorized by the State where such smokeless tobacco is found to engage in the business of selling or distributing tobacco products; and
Inserted: "(ii) has complied with the accounting, tax, and payment requirements relating to such license or authorization with respect to such smokeless tobacco; or
Inserted: "(D) an officer, employee, or agent of the United States or a State, or any department, agency, or instrumentality of the United States or a State (including any political subdivision of a State), having possession of such smokeless tobacco in connection with the performance of official duties;".
Inserted: (2) Section 2342(a) of that title is amended by inserting "or contraband smokeless tobacco" after "contraband cigarettes".
Inserted: (3) Section 2343(a) of that title is amended by inserting ", or any quantity of smokeless tobacco in excess of 500 single-unit consumer-sized cans or packages," before "in a single transaction".
Inserted: (4) Section 2344(c) of that title is amended by inserting "or contraband smokeless tobacco" after "contraband cigarettes".
Inserted: (5) Section 2345 of that title is amended by inserting "or smokeless tobacco" after "cigarettes" each place it appears.
Inserted: (6) Section 2341 of that title is further amended in paragraph (2), as amended by subsection (a)(1) of this section, in the matter preceding subparagraph (A), by striking "State cigarette taxes in the State where such cigarettes are found, if the State" and inserting "State or local cigarette taxes in the State or locality where such cigarettes are found, if the State or local government";
Inserted: (c) Recordkeeping, Reporting, and Inspection.--Section 2343 of that title, as amended by this section, is further amended--
Inserted: (1) in subsection (a)--
Inserted: (A) in the matter preceding paragraph (1), by striking "only--" and inserting "such information as the Attorney General considers appropriate for purposes of enforcement of this chapter, including--"; and
Inserted: (B) in the flush matter following paragraph (3), by striking the second sentence;
Inserted: (2) by redesignating subsection (b) as subsection (c);
Inserted: (3) by inserting after subsection (a) the following new subsection (b):
Inserted: "(b) Any person, except for a tribal government, who engages in a delivery sale, and who ships, sells, or distributes any quantity in excess of 10,000 cigarettes, or any quantity in excess of 500 single-unit consumer-sized cans or packages of smokeless tobacco, or their equivalent, within a single month, shall submit to the Attorney General, pursuant to rules or regulations prescribed by the Attorney General, a report that sets forth the following:
Inserted: "(1) The person's beginning and ending inventory of cigarettes and cans or packages of smokeless tobacco (in total) for such month.
Inserted: "(2) The total quantity of cigarettes and cans or packages of smokeless tobacco that the person received within such month from each other person (itemized by name and address).
Inserted: "(3) The total quantity of cigarettes and cans or packages of smokeless tobacco that the person distributed within such month to each person (itemized by name and address) other than a retail purchaser."; and
Inserted: (4) by adding at the end the following new subsections:
Inserted: "(d) Any report required to be submitted under this chapter to the Attorney General shall also be submitted to the Secretary of the Treasury and to the attorneys general and the tax administrators of the States from where the shipments, deliveries, or distributions both originated and concluded.
Inserted: "(e) In this section, the term 'delivery sale' means any sale of cigarettes or smokeless tobacco in interstate commerce to a consumer if--
Inserted: "(1) the consumer submits the order for such sale by means of a telephone or other method of voice transmission, the mails, or the Internet or other online service, or by any other means where the consumer is not in the same physical location as the seller when the purchase or offer of sale is made; or
Inserted: "(2) the cigarettes or smokeless tobacco are delivered by use of the mails, common carrier, private delivery service, or any other means where the consumer is not in the same physical location as the seller when the consumer obtains physical possession of the cigarettes or smokeless tobacco.
Inserted: "(f) In this section, the term 'interstate commerce' means commerce between a State and any place outside the State, or commerce between points in the same State but through any place outside the State.".
Inserted: (d) Disposal or Use of Forfeited Cigarettes and Smokeless Tobacco.--Section 2344(c) of that title, as amended by this section, is further amended by striking "seizure and forfeiture," and all that follows and inserting "seizure and forfeiture, and any cigarettes or smokeless tobacco so seized and forfeited shall be either--
Inserted: "(1) destroyed and not resold; or
Inserted: "(2) used for undercover investigative operations for the detection and prosecution of crimes, and then destroyed and not resold.".
Inserted: (e) Effect on State and Local Law.--Section 2345 of that title is amended--
Inserted: (1) in subsection (a), by striking "a State to enact and enforce" and inserting "a State or local government to enact and enforce its own"; and
Inserted: (2) in subsection (b), by striking "of States, through interstate compact or otherwise, to provide for the administration of State" and inserting "of State or local governments, through interstate compact or otherwise, to provide for the administration of State or local".
Inserted: (f) Enforcement.--Section 2346 of that title is amended--
Inserted: (1) by inserting "(a)" before "The Attorney General"; and
Inserted: (2) by adding at the end the following new subsection:
Inserted: "(b)(1) A State, through its attorney general, a local government, through its chief law enforcement officer (or a designee thereof), or any person who holds a permit under chapter 52 of the Internal Revenue Code of 1986, may bring an action in the United States district courts to prevent and restrain violations of this chapter by any person (or by any person controlling such person), except that any person who holds a permit under chapter 52 of the Internal Revenue Code of 1986 may not bring such an action against a State or local government.
Inserted: "(2) A State, through its attorney general, or a local government, through its chief law enforcement officer (or a designee thereof), may in a civil action under paragraph (1) also obtain any other appropriate relief for violations of this chapter from any person (or by any person controlling such person), including civil penalties, money damages, and injunctive or other equitable relief. Nothing in this chapter shall be deemed to abrogate or constitute a waiver of any sovereign immunity of a State or local government against any unconsented lawsuit under this chapter, or otherwise to restrict, expand, or modify any sovereign immunity of a State or local government.
Inserted: "(3) The remedies under paragraphs (1) and (2) are in addition to any other remedies under Federal, State, local, or other law.
Inserted: "(4) Nothing in this chapter shall be construed to expand, restrict, or otherwise modify any right of an authorized State official to proceed in State court, or take other enforcement actions, on the basis of an alleged violation of State or other law.
Inserted: "(5) Nothing in this chapter shall be construed to expand, restrict, or otherwise modify any right of an authorized local government official to proceed in State court, or take other enforcement actions, on the basis of an alleged violation of local or other law.".
Inserted: (g) Conforming and Clerical Amendments.--(1) The section heading for section 2343 of that title is amended to read as follows:
Inserted: "Sec. 2343. Recordkeeping, reporting, and inspection".
Inserted: (2) The section heading for section 2345 of such title is amended to read as follows:
Inserted: "Sec. 2345. Effect on State and local law".
Inserted: (3) The table of sections at the beginning of chapter 114 of that title is amended--
Inserted: (A) by striking the item relating to section 2343 and inserting the following new item:
Inserted: "2343. Recordkeeping, reporting, and inspection."
Inserted: ; and
Inserted: (B) by striking the item relating to section 2345 and insert the following new item:
Inserted: "2345. Effect on State and local law.".
Inserted: (4)(A) The heading for chapter 114 of that title is amended to read as follows:
Inserted: "CHAPTER 114--TRAFFICKING IN CONTRABAND CIGARETTES AND SMOKELESS TOBACCO".
Inserted: (B) The table of chapters at the beginning of part I of that title is amended by striking the item relating to section 114 and inserting the following new item:
Inserted: "114. Trafficking in contraband cigarettes and smokeless tobacc2341".
Original wording
Add at the end the following (and make such technical and conforming changes as may be appropriate):
Change made on the floor
In the matter proposed to be inserted as subsection (b) of section 2346 of title 18, United States Code, by subsection (f) after the period at the end of paragraph (1) insert “No civil action may be commenced under this paragraph against an Indian tribe or an Indian in Indian country (as defined in section 1151).”.
In the same matter in paragraph (2) insert “, or an Indian tribe” after “State or local government” each place it appears.
Read automatically from the Congressional Record. Check the original before relying on it.
As printed
Add at the end the following (and make such technical and conforming changes as may be appropriate):
SECTION 17. PENAL PROVISIONS REGARDING TRAFFICKING IN CONTRABAND CIGARETTES OR SMOKELESS TOBACCO.
(a) Threshold Quantity for Treatment as Contraband Cigarettes.--(1) Section 2341(2) of title 18, United States Code, is amended by striking “60,000 cigarettes” and inserting “10,000 cigarettes”.
(2) Section 2342(b) of that title is amended by striking “60,000” and inserting “10,000”.
(3) Section 2343 of that title is amended--
(A) in subsection (a), by striking “60,000” and inserting “10,000”; and
(B) in subsection (b), by striking “60,000” and inserting “10,000”.
(b) Contraband Smokeless Tobacco.--(1) Section 2341 of that title is amended--
(A) in paragraph (4), by striking “and” at the end;
(B) in paragraph (5), by striking the period at the end and inserting a semicolon; and
(C) by adding at the end the following new paragraphs:
“(6) the term ‘smokeless tobacco' means any finely cut, ground, powdered, or leaf tobacco that is intended to be placed in the oral or nasal cavity or otherwise consumed without being combusted;
“(7) the term ‘contraband smokeless tobacco' means a quantity in excess of 500 single-unit consumer-sized cans or packages of smokeless tobacco, or their equivalent, that are in the possession of any person other than--
“(A) a person holding a permit issued pursuant to chapter 52 of the Internal Revenue Code of 1986 as manufacturer of tobacco products or as an export warehouse proprietor, a person operating a customs bonded warehouse pursuant to section 311 or 555 of the Tariff Act of 1930 (19 U.S.C. 1311, 1555), or an agent of such person;
“(B) a common carrier transporting such smokeless tobacco under a proper bill of lading or freight bill which states the quantity, source, and designation of such smokeless tobacco;
“(C) a person who--
“(i) is licensed or otherwise authorized by the State where such smokeless tobacco is found to engage in the business of selling or distributing tobacco products; and
“(ii) has complied with the accounting, tax, and payment requirements relating to such license or authorization with respect to such smokeless tobacco; or
“(D) an officer, employee, or agent of the United States or a State, or any department, agency, or instrumentality of the United States or a State (including any political subdivision of a State), having possession of such smokeless tobacco in connection with the performance of official duties;”.
(2) Section 2342(a) of that title is amended by inserting “or contraband smokeless tobacco” after “contraband cigarettes”.
(3) Section 2343(a) of that title is amended by inserting “, or any quantity of smokeless tobacco in excess of 500 single-unit consumer-sized cans or packages,” before “in a single transaction”.
(4) Section 2344(c) of that title is amended by inserting “or contraband smokeless tobacco” after “contraband cigarettes”.
(5) Section 2345 of that title is amended by inserting “or smokeless tobacco” after “cigarettes” each place it appears.
(6) Section 2341 of that title is further amended in paragraph (2), as amended by subsection (a)(1) of this section, in the matter preceding subparagraph (A), by striking “State cigarette taxes in the State where such cigarettes are found, if the State” and inserting “State or local cigarette taxes in the State or locality where such cigarettes are found, if the State or local government”;
(c) Recordkeeping, Reporting, and Inspection.--Section 2343 of that title, as amended by this section, is further amended--
(1) in subsection (a)--
(A) in the matter preceding paragraph (1), by striking “only--” and inserting “such information as the Attorney General considers appropriate for purposes of enforcement of this chapter, including--”; and
(B) in the flush matter following paragraph (3), by striking the second sentence;
(2) by redesignating subsection (b) as subsection (c);
(3) by inserting after subsection (a) the following new subsection (b):
“(b) Any person, except for a tribal government, who engages in a delivery sale, and who ships, sells, or distributes any quantity in excess of 10,000 cigarettes, or any quantity in excess of 500 single-unit consumer-sized cans or packages of smokeless tobacco, or their equivalent, within a single month, shall submit to the Attorney General, pursuant to rules or regulations prescribed by the Attorney General, a report that sets forth the following:
“(1) The person's beginning and ending inventory of cigarettes and cans or packages of smokeless tobacco (in total) for such month.
“(2) The total quantity of cigarettes and cans or packages of smokeless tobacco that the person received within such month from each other person (itemized by name and address).
“(3) The total quantity of cigarettes and cans or packages of smokeless tobacco that the person distributed within such month to each person (itemized by name and address) other than a retail purchaser.”; and
(4) by adding at the end the following new subsections:
“(d) Any report required to be submitted under this chapter to the Attorney General shall also be submitted to the Secretary of the Treasury and to the attorneys general and the tax administrators of the States from where the shipments, deliveries, or distributions both originated and concluded.
“(e) In this section, the term ‘delivery sale' means any sale of cigarettes or smokeless tobacco in interstate commerce to a consumer if--
“(1) the consumer submits the order for such sale by means of a telephone or other method of voice transmission, the mails, or the Internet or other online service, or by any other means where the consumer is not in the same physical location as the seller when the purchase or offer of sale is made; or
“(2) the cigarettes or smokeless tobacco are delivered by use of the mails, common carrier, private delivery service, or any other means where the consumer is not in the same physical location as the seller when the consumer obtains physical possession of the cigarettes or smokeless tobacco.
“(f) In this section, the term ‘interstate commerce' means commerce between a State and any place outside the State, or commerce between points in the same State but through any place outside the State.”.
(d) Disposal or Use of Forfeited Cigarettes and Smokeless Tobacco.--Section 2344(c) of that title, as amended by this section, is further amended by striking “seizure and forfeiture,” and all that follows and inserting “seizure and forfeiture, and any cigarettes or smokeless tobacco so seized and forfeited shall be either--
“(1) destroyed and not resold; or
“(2) used for undercover investigative operations for the detection and prosecution of crimes, and then destroyed and not resold.”.
(e) Effect on State and Local Law.--Section 2345 of that title is amended--
(1) in subsection (a), by striking “a State to enact and enforce” and inserting “a State or local government to enact and enforce its own”; and
(2) in subsection (b), by striking “of States, through interstate compact or otherwise, to provide for the administration of State” and inserting “of State or local governments, through interstate compact or otherwise, to provide for the administration of State or local”.
(f) Enforcement.--Section 2346 of that title is amended--
(1) by inserting “(a)” before “The Attorney General”; and
(2) by adding at the end the following new subsection:
“(b)(1) A State, through its attorney general, a local government, through its chief law enforcement officer (or a designee thereof), or any person who holds a permit under chapter 52 of the Internal Revenue Code of 1986, may bring an action in the United States district courts to prevent and restrain violations of this chapter by any person (or by any person controlling such person), except that any person who holds a permit under chapter 52 of the Internal Revenue Code of 1986 may not bring such an action against a State or local government.
“(2) A State, through its attorney general, or a local government, through its chief law enforcement officer (or a designee thereof), may in a civil action under paragraph (1) also obtain any other appropriate relief for violations of this chapter from any person (or by any person controlling such person), including civil penalties, money damages, and injunctive or other equitable relief. Nothing in this chapter shall be deemed to abrogate or constitute a waiver of any sovereign immunity of a State or local government against any unconsented lawsuit under this chapter, or otherwise to restrict, expand, or modify any sovereign immunity of a State or local government.
“(3) The remedies under paragraphs (1) and (2) are in addition to any other remedies under Federal, State, local, or other law.
“(4) Nothing in this chapter shall be construed to expand, restrict, or otherwise modify any right of an authorized State official to proceed in State court, or take other enforcement actions, on the basis of an alleged violation of State or other law.
“(5) Nothing in this chapter shall be construed to expand, restrict, or otherwise modify any right of an authorized local government official to proceed in State court, or take other enforcement actions, on the basis of an alleged violation of local or other law.”.
(g) Conforming and Clerical Amendments.--(1) The section heading for section 2343 of that title is amended to read as follows:
“Sec. 2343. Recordkeeping, reporting, and inspection”.
(2) The section heading for section 2345 of such title is amended to read as follows:
“Sec. 2345. Effect on State and local law”.
(3) The table of sections at the beginning of chapter 114 of that title is amended--
(A) by striking the item relating to section 2343 and inserting the following new item:
“2343. Recordkeeping, reporting, and inspection.”
; and
(B) by striking the item relating to section 2345 and insert the following new item:
“2345. Effect on State and local law.”.
(4)(A) The heading for chapter 114 of that title is amended to read as follows:
“CHAPTER 114--TRAFFICKING IN CONTRABAND CIGARETTES AND SMOKELESS TOBACCO”.
(B) The table of chapters at the beginning of part I of that title is amended by striking the item relating to section 114 and inserting the following new item:
“114. Trafficking in contraband cigarettes and smokeless tobacc2341”.
Legislative Activity
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House amendment offered
July 21, 2005
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House amendment offered
July 21, 2005
Amendment agreed to Committee of the Whole
July 21, 2005 • 6:44 PM
House amendment agreed to: On agreeing to the Coble amendment (A012) as modified Agreed to by voice vote.
July 21, 2005 • 6:44 PM
House amendment offered/reported by : Amendment (A012) offered by Mr. Coble.(consideration: CR H6282-6285; text: CR H6282-6283)
July 21, 2005 • 6:35 PM
Amendment (A012) offered by Mr. Coble. (consideration: CR H6282-6285; text: CR H6282-6283)
July 21, 2005 • 6:35 PM
Coble amendment (A012) modified by unanimous consent. (text as modified: CR H6283)
July 21, 2005 • 6:36 PM
On agreeing to the Coble amendment (A012) as modified Agreed to by voice vote.
July 21, 2005 • 6:44 PM