Session of 1998
By Committee on Federal and State Affairs
            9             AN ACT concerning cigarettes; amending K.S.A. 79-3313 and 79-3321
10             and repealing the existing sections.
12       Be it enacted by the Legislature of the State of Kansas:
13           Section 1. K.S.A. 79-3313 is hereby amended to read as follows:
14       79-3313. All cigarettes sold in this state shall be in packages, and each of
15       the packages shall bear evidence of payment of the tax thereon except
16       that any railroad or sleeping car company licensed as a retailer is hereby
17       authorized to sell cigarettes upon its cars without affixing stamps to the
18       packages of cigarettes provided that monthly reports and payment of the
19       tax due is made directly to the director in the manner and under the
20       terms provided for by the director.   In addition, manufacturers are hereby
21       authorized to distribute in the state, through their authorized represen-
22       tatives or wholesale dealers, free sample packages of cigarettes containing
23       less than 20 cigarettes without affixing stamps to the packages provided
24       that monthly reports and payment of a tax at the rates prescribed by law
25       are made directly to the director. No wholesale dealer or manufacturers'
26       authorized representatives shall sell or distribute cigarettes  , except free
27       sample packages, to any person in the state of Kansas not holding a
28       dealer's license as provided in this act.   Such packages of sample cigarettes
29       shall bear the word ``sample'' or ``not for sale'' and ``state tax paid'' in
30       letters easily read.
31           Whenever the director shall have reason to believe that any manufac-
32       turer has violated the provisions of this section or the conditions provided
33       by the director, the director shall conduct a hearing thereon in accordance
34       with the provisions of the Kansas administrative procedure act in the
35       office of the director at Topeka. If upon the basis of such hearing it
36       appears to the satisfaction of the director that such manufacturer has
37       violated any of the provisions of this section or the conditions provided
38       by the director, the director is   hereby authorized to suspend or revoke
39       the authorization to the manufacturer for such period as the director
40       determines is necessary but in no case for more than one year.
41           Sec. 2. K.S.A. 79-3321 is hereby amended to read as follows: 79-
42       3321. It shall be unlawful for any person:
43           (a) To possess, except as otherwise specifically provided by this act,

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  1       more than 200 cigarettes without the required tax indicia being affixed as
  2       herein provided.
  3           (b) To mutilate or attach to any individual package of cigarettes any
  4       stamp that has in any manner been mutilated or that has been heretofore
  5       attached to a different individual package of cigarettes or to have in pos-
  6       session any stamps so mutilated.
  7           (c) To prevent the director or any officer or agent authorized by law,
  8       to make a full inspection for the purpose of this act, of any place of
  9       business and all premises connected thereto where cigarettes are or may
10       be manufactured, sold, distributed  , or given away.
11           (d) To use any artful device or deceptive practice to conceal any vi-
12       olation of this act or to mislead the director or officer or agent authorized
13       by law in the enforcement of this act.
14           (e) Who is a dealer to fail to produce on demand of the director or
15       any officer or agent authorized by law any records or invoices required
16       to be kept by such person.
17           (f) Knowingly to make, use, or present to the director or agent thereof
18       any falsified invoice or falsely state the nature or quantity of the goods
19       therein invoiced.
20           (g) Who is a dealer to fail or refuse to keep and preserve for the time
21       and in the manner required herein all the records required by this act to
22       be kept and preserved.
23           (h) To wholesale cigarettes to any person, other than a manufacturer's
24       salesperson, retail dealer or wholesaler who is:
25           (1) Duly licensed by the state where such manufacturer's salesperson,
26       retail dealer or wholesaler is located  ,; or
27           (2) exempt from state licensing under applicable state or federal laws
28       or court decisions including any such person operating as a retail dealer
29       upon land allotted to or held in trust for an Indian tribe recognized by
30       the United States bureau of Indian affairs.
31           (i) To have in possession any evidence of tax indicia provided for
32       herein not purchased from the director.
33           (j) To fail or refuse to permit the director or any officer or agent
34       authorized by law to inspect a carrier transporting cigarettes.
35           (k) To vend small cigars, or any products so wrapped as to be con-
36       fused with cigarettes, from a machine vending cigarettes, nor shall a vend-
37       ing machine be so built to vend cigars or products that may be confused
38       with cigarettes, be attached to a cigarette vending machine.
39           (l) To sell, furnish or distribute cigarettes or tobacco products to any
40       person under 18 years of age.
41           (m) Who is under 18 years of age to purchase or attempt to purchase
42       cigarettes or tobacco products.
43           (n) Who is under 18 years of age to possess or attempt to possess

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  1       cigarettes or tobacco products.
  2           (o) To sell cigarettes to a retailer or at retail that do not bear Kansas
  3       tax indicia or upon which the Kansas cigarette tax has not been paid.
  4           (p) To sell cigarettes without having a license for such sale as provided
  5       herein.
  6           (q) To sell a vending machine without having a vending machine dis-
  7       tributor's license.
  8           (r) Who is a retail dealer to fail to post and maintain in a conspicuous
  9       place in the dealer's establishment the following notice: ``By law, ciga-
10       rettes and tobacco products may be sold only to persons 18 years of age
11       and older.''
12           (s) To distribute samples   within 500 feet of any school when such
13       facility is being used primarily by persons under 18 years of age unless
14       the sampling is: (1) In an area to which persons under 18 years of age are
15       denied access; (2) in or at a retail location where cigarettes and tobacco
16       products are the primary commodity offered for sale at retail; or (3) at or
17       adjacent to an outdoor production, repair or construction site or facility.
18           (t) To sell cigarettes or tobacco products by means of a vending ma-
19       chine in any establishment, or portion of an establishment, which is open
20       to minors, except that this subsection shall not apply to:
21           (1) The installation and use by the proprietor of the establishment,
22       or by the proprietor's agents or employees, of vending machines behind
23       a counter, or in some place in such establishment, or portion thereof, to
24       which minors are prohibited by law from having access;
25           (2) the installation and use of a vending machine in a commercial
26       building or industrial plant, or portions thereof, where the public is not
27       customarily admitted and where machines are intended for the sole use
28       of adult employees employed in the building or plant; or
29           (3) a vending machine which has a lock-out device which is inoper-
30       able in the continuous standby mode and which requires manual activa-
31       tion by the person supervising the operation of the machine each time
32       cigarettes or tobacco products are purchased from the machine.
33           Sec. 3. K.S.A. 79-3313 and 79-3321 are hereby repealed.
34           Sec. 4. This act shall take effect and be in force from and after its
35       publication in the statute book.