U.S. - Senate Judiciary Committee Approves PACT ACT..

November 20, 2009 - Senate Judiciary Committee Approves Internet Tobacco Bill. The PACT (Prevent All Cigarette Trafficking) Act closes gaps in current federal laws regulating ‘remote’ or ‘delivery’ sales of cigarettes and smokeless tobacco products. The U.S. Senate Judiciary Committee unanimously approved legislation yesterday that will help combat online cigarette sales and prevent youth access to tobacco products.

Prohibits the United States Postal Service from delivering tobacco products.. UPS, FedEX and DHL have signed agreements with state attorneys general that they will not deliver tobacco products — but not the Postal Service - so far. (Protect Our Children - Make it illegal to use the U.S. Postal Service to deliver any form of tobacco product..)

See companion news brief: U.S. - Senate Committee scheduled to vote on PACT..

The Prevent All Cigarette Trafficking (PACT) Act closes gaps in current federal laws regulating “remote” or “delivery” sales of cigarettes and smokeless tobacco products. The bill enhances penalties for violations and provides law enforcement with new tools to combat the innovative methods being used by cigarette traffickers to distribute their products.

“Tobacco smuggling has developed into a popular, and highly profitable, means of generating revenue for criminal and terrorist organizations,” said Sen. Herb Kohl (D-WI), noting that cigarette trafficking, including the illegal sale of tobacco products over the Internet, costs states billions of dollars in lost tax revenue each year.

“More people are selling cigarettes illegally, and they are getting better at it. As these cases become more difficult to crack, we owe it to law enforcement officials to do our part to lend a helping hand,” Kohl said.

The PACT Act will:

* Strengthen the reporting requirements for interstate cigarette sellers.
* Increase the criminal penalty from a misdemeanor to a felony and create a substantial civil penalty for violations, including violations of the reporting requirements and state tobacco tax laws.
* Grant federal and state law enforcement officials more powers to investigate and prosecute violators.
* Prohibit the United States Postal Service from delivering tobacco products

On May 21, 2009, the House of Representatives passed companion legislation by an overwhelming majority of 397 to 11, and the Senate Judiciary Committee unanimously approved Kohl’s PACT Act in May 2007.

NACS, as part of the Coalition to Stop Contraband Tobacco, urged Senate passage of the PACT Act this week on Capitol Hill.

“At the very time when states have undertaken extraordinary efforts to restrict minors’ access to cigarettes and continue to increase cigarette excise taxes, the Internet still offers minors a virtually risk-free and attractively priced means to easily obtain them,” said Hank Armour, NACS president and CEO. “The PACT Act addresses long-standing concerns that law-abiding neighborhood convenience stores have with respect to tax evasion and underage sales.”

Reference: Senate Judiciary Committee Approves Internet Tobacco Bill, NACS Online, 11/20/2009.

Some PACT related news briefs:
U.S. - Senate Committee scheduled to vote on PACT..;
Web-Based Companies must stop selling flavored cigarettes..;
Internet, Flavors everywhere - snuff being marketed to kids as hip, cool and healthy..;
U.S. customs officials bar imports bearing the Philip Morris USA trademark..;
Let's Get It Passed - Prevent All Tobacco Trafficking Act of 2009..;
U.S - PACT legislation passed by House..;
U.S. - PACT Legislation to be considered by House this month..;
We must get the United States Postal Service (USPS) out of the tobacco delivery business..;
PACT Legislation now in the U.S. Senate Judiciary Committee..;
U.S. House Passes Bill to Prevent Tobacco Delivery By Mail..;
We must get the United States Postal Service (USPS) out of the tobacco delivery business..
Protect Our Children - Make it illegal to use the U.S. Postal Service to deliver any form of tobacco product...