COMMITTEE ON FINANCE
SENATE AMENDMENTS TO H.B. 2674
(Reference to House engrossed bill)
Page 21, line 34, strike “ONE MONTH” insert “two months”
Page 24, between lines 32 and 33, insert:
“B. for the purposes of subsection A of this section, An applicant with a controlling interest in more than one business engaged in activities as a distributor shall apply for a single license encompassing all such businesses and list each place of business in its application. for the purposes of this subsection, “controlling interest” means direct or indirect ownership of at least eighty per cent of the voting shares of a corporation or of the interests in a company, business or person other than a corporation.”
Reletter to conform
Page 25, line 17, strike “ANY” insert “either of the following:
1. a”
Between lines 21 and 22, insert:
“2. A vehicle that is transporting unstamped cigarettes or other untaxed tobacco products to a licensed distributor as part of a lawful sale or in interstate commerce to a person lawfully operating as a manufacturer, distributor or retailer of cigarettes or other tobacco products.”
Line 27, after the period insert “this paragraph does not include a person holding or storing tobacco products by or on behalf of the distributor, when such tobacco products are in transit to a distributor or retailer as part of a lawful sale.”
Page 26, line 16, strike “AT ANY TIME”; after the period insert “An applicant whose civil rights have been suspended will be ineligible to hold a license for a period of five years following the restoration of the applicant’s civil rights.”
Between lines 39 and 40, insert:
“n. Notwithstanding any other law, for purposes of subsection G, paragraphs 1 and 2 of this section; section 42-1127, subsection C; and section 42-3210, subsection B, if a distributor has listed in its application more than one place of business, any suspension, revocation or nonrenewal of a distributor’s license shall apply only with effect to remove the place of business at which the activity occurred that resulted in the violation from the distributor’s license. If such a removal occurs, the distributor shall be subject to restrictions that the department prescribes by rule.”
Page 27, line 1, after “CIGARETTES” insert a comma
Line 2, after “PAID” insert a comma
Line 5, after the period insert “This subsection does not prohibit the lawful delivery of tobacco products by a person who holds a valid license issued under section 42-3201 using a vehicle that is owned, operated or contracted by that person.”
Line 21, strike “THE NONCIGARETTE TOBACCO PRODUCTS AT ISSUE” insert “such tobacco products”
Page 28, between lines 18 and 19, insert:
“D. notwithstanding subsection C of this section, a licensed distributor can submit a written request in the form and manner prescribed by the department in rule or procedure to sell, distribute or transfer unstamped cigarettes to another licensed distributor. Once an accurate and complete request is submitted to the department, the department will approve or deny the request as prescribed in rule or procedure within ten days of receipt of the request.”
Reletter to conform
Page 29, between lines 33 and 34, insert:
“Sec. 18. Section 42-3207, Arizona Revised Statutes, is amended to read:
42-3207. Secured cigarette stamp purchases on credit; cancellation of credit privileges; collection action
A. Subject to subsections B and C, and except as provided in subsection d, of this section a licensed cigarette distributor who furnishes a bond of a surety company qualified to do business in this state, in an amount equal to two times the amount of the distributor's current monthly stamp purchases and conditioned upon the payment within the time prescribed, may make payment for the official stamp on or before the twentieth day of the month next following the purchase of an official stamp. All other cigarette distributors shall pay for each stamp at the time of purchase.
B. Upon a finding that the amount of stamp purchases, or meter machine usage, exceeds seventy-five per cent of the amount of the bond the department may cancel the credit privileges provided to qualified cigarette distributors pursuant to subsection A.
C. If the indebtedness of a cigarette distributor whose credit privileges have been canceled pursuant to this section remains unpaid for thirty days after cancellation the director shall request the attorney general to take suitable action on behalf of the department to collect either on the indebtedness or the surety bond.
D. the cigarette distributor may request that the department waive the bonding requirement in subsection A of this section if the distributor maintains a timely, accurate and complete filing and payment record for a period of two years and otherwise complies with all requirements of a licensed distributor pursuant to Title 42, chapter 3 and title 44, chapter 27. The waiver of the bonding requirement applies only to the distributor’s purchases of tax stamps with which the distributor prepays the indian reservation tobacco tax, pursuant to section 42-3303.”
Renumber to conform
Page 30, line 22, after the period insert “Except as otherwise provided by the department for a refund or redemption issued under section 42-3008 or 42-3209,”
Line 23, after “SECTION” insert “or under article 7 of this chapter”
Page 34, line 42, after the period insert “From and after December 31, 2014,”
Page 35, line 8, strike “C.” insert “b.”
Page 42, line 31, strike “RESIDENTIAL AND NONRESIDENTIAL” insert “resident and nonresident”
Page 51, between lines 7 and 8, insert:
“Sec. 29. Retroactivity
Section 42-3207, Arizona Revised Statutes, as amended by this act, is effective retroactively to from and after March 31, 2012.”
Amend title to conform