AB 455 — Authorizes the imposition of a civil penalty by the Department of Taxation for certain violations relating to contraband tobacco products. (BDR 32-1068)

(ReprintedAssembly withBill amendmentsNo. adopted on April 20, 2023) FIRST REPRINT A.B.

455455–Committee ASSEMBLYon BILLRevenue NOCHAPTER.......... .

455–COMMITTEE ON REVENUE (O NB EHALF OF THE OFFICE OF FINANCE IN THE OFFICE OF THE G OVERNOR ) M ARCH 27, 2023 ____________ Referred to Committee on Revenue SUMMARY—Authorizes the imposition of a civil penalty by the Department of Taxation for certain violations relating to contraband tobacco products.

(BDR 32-1068) FISCAL NOTE:

Effect on Local Government:

No.

Effect on the State:

No.

~ EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

(1) prohibits a person from knowingly selling or possessing for personthe whopurpose exports,of imports,selling possessesany or constructively possesses contraband any tobacco products,products; with certain exceptions, is guilty of a gross misdemeanor.

and (2) provides that any tobacco products, with certain exceptions, is guilty of a gross misdemeanor.

-EXPLANATION *AB455_R1* – 2Matter –in THEbolded PEOPLEitalics OFis THEnew; STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

matter between brackets [omitted material] is material to be omitted.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

(1)- Except82nd forSession revenue(2023) stamps– being2 properly– affixed as required by this chapter, the cigarettes comply with all state and federal statutes and regulations;

(a) Cigarettes pursuant to subsection 3, the Department shall dispose of the cigarettes as provided in subsection 4 of NRS 370(b)370.270; Other tobacco products pursuant to subsection 3, the Department shall:

(1)or Sell(b) theOther other tobacco products topursuant the highest bidder among the licensed wholesale dealers in this State after due notice to allsubsection licensed3, Nevada wholesale dealers has been given by mail to the addressesDepartment containedshall: in the Department’s records;

or(1) (2)Sell the other tobacco products to the highest bidder among the licensed wholesale dealers in this State after due notice to all licensed Nevada wholesale dealers has been given by mail to the addres(2) If there is no bidder, or in the opinion of the Department the quantity of the other tobacco products is insufficient, or for any other reason such disposition would be impractical, destroy or dispose of the other tobacco products as the Department may see fit.

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6.Department may impose a civil penalty upon a person who violates NRS 370.405 or 370.410 resulting in the seizure of counterfeit stamps, contraband tobacco products, machinery or cigarette rolling machines pursuant to this section in the amount of $10,000 or the total costs incurred by the Department for the transportation, storage and disposal of the counterfeit stamps, contraband tobacco products, machinery or cigarette rolling machines, whichever is greater.

In- addition82nd toSession any(2023) other– penalty3 provided– by7. law, the Department may impose a civil penalty upon a person who violates NRS 370.405 or 370.410 resulting in the seizure of counterfeit rolling machines pursuant to this section in the amount of $10,000 or the total costs incurred by the Department for the transportation, storage and disposal of the counterfeit stamps, contraband tobacco products, machinery or cigarette rolling machines, whichever is greater.

7.

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