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51-32 Remote Sales of Tobacco Products

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CHAPTER 51-32REMOTE SALES OF TOBACCO PRODUCTS51-32-01.Prohibited acts regarding sale of tobacco products to minors.It isunlawful for any person in the business of selling tobacco products to take an order for a tobacco<br>product, other than from a person who is in the business of selling tobacco products, through the<br>mail or through any telecommunications means, including by telephone, facsimile, or the internet,<br>if in providing for the sale or delivery of the product pursuant to the order, the person mails the<br>product or ships the product by carrier, and the person fails to comply with each of the following<br>procedures:1.Before mailing or shipping the product, the person receives from the individual who<br>places the order the following:a.A copy of a valid government-issued document that provides the name,<br>address, and date of birth of the individual; andb.A signed statement from the individual providing a certification that the<br>individual:(1)Is a smoker of legal minimum purchase age in the state;(2)Has selected an option on the statement as to whether the individual<br>wants to receive mailings from a tobacco company; and(3)Understands that providing false information may constitute a violation of<br>law.2.Before mailing or shipping the product, the person:a.Verifies the date of birth or age of the individual against a commercially<br>available data base; orb.Obtains a photocopy or other image of the valid, government-issued<br>identification stating the date of birth or age of the individual placing the order.3.Before mailing or shipping the product, the person provides to the prospective<br>purchaser, by electronic mail or other means, a notice that meets the requirements<br>of section 51-30-04.4.In the case of an order for a product pursuant to an advertisement on the internet,<br>the person receives payment by credit card, debit card, or check for the order before<br>mailing or shipping the product.5.a.The person employs a method of mailing or shipping the product requiring that<br>the individual purchasing the product:(1)Be the addressee;(2)Have an individual of legal minimum purchase age sign for delivery of the<br>package; and(3)If the individual appears to the carrier making the delivery to be under<br>twenty-seven years of age, take delivery of the package only after<br>producing valid government-issued identification that bears a photograph<br>of the individual, indicates that the individual is not under the legal age to<br>purchase cigarettes, and indicates that the individual is not younger than<br>the age indicated on the government-issued document.Page No. 1b.The bill of lading clearly states the requirements in subdivision a and specifies<br>that state law requires compliance with the requirements.6.The person notifies the carrier for the mailing or shipping, in writing, of the age of the<br>addressee as indicated by the government-issued document.51-32-02. Rule of construction regarding common carriers. This chapter may not beconstrued as imposing liability upon any common carrier, or officer or employee of the carrier,<br>when acting within the scope of business of the common carrier.51-32-03. E-mail addresses. A person taking a delivery sale order may request that aprospective purchaser provide an e-mail address for the purchaser.51-32-04. Disclosure requirements. The notice required under subsection 3 of section51-32-01 must include:1.A prominent and clearly legible statement that cigarette sales to consumers below<br>the legal minimum age are illegal;2.A prominent and clearly legible statement that consists of one of the warnings set<br>forth in section 4(a)(1) of the federal Cigarette Labeling and Advertising Act<br>[15 U.S.C. 1333(a)(1)] rotated on a quarterly basis;3.A prominent and clearly legible statement that sales of cigarettes are restricted to<br>those consumers who provide verifiable proof of age in accordance with section<br>51-32-01; and4.A prominent and clearly legible statement that cigarette sales are subject to tax<br>under sections 57-36-06 and 57-36-32, and an explanation of how the tax has been,<br>or is to be, paid with respect to the delivery sale.51-32-05. Registration and reporting requirements.1.Before making a delivery sale or shipping cigarettes in connection with a sale, a<br>person shall file with the tax commissioner a statement setting forth the person's<br>name, trade name, and the address of the person's principal place of business and<br>any other place of business.2.Not later than the tenth day of each month, each person that has made a delivery<br>sale or shipped or delivered cigarettes in connection with any sale during the<br>previous calendar month shall file with the tax commissioner a memorandum or a<br>copy of the invoice, which provides for each delivery sale:a.The name and address of the individual to whom the delivery sale was made;b.The brand of the cigarettes that were sold in the delivery sale; andc.The quantity of cigarettes that were sold in the delivery sale.51-32-06. Taxes. Each person accepting a purchase order for a delivery sale of anytobacco product shall remit to the tax commissioner any taxes due under chapter 57-36 with<br>respect to the delivery sale. This section does not apply if the person has obtained proof, in the<br>form of the presence of applicable tax stamps or otherwise, that the taxes already have been<br>paid to this state.51-32-07. Penalties.1.Except as otherwise provided in this section, a person that violates this chapter is<br>subject to a fine of not more than one thousand dollars. In the case of a second orPage No. 2subsequent violation of this chapter, the person is subject to a fine of not less than<br>one thousand dollars nor more than five thousand dollars.2.Any person who knowingly violates any provision of this chapter is guilty of a class C<br>felony.3.Any individual who knowingly and falsely submits a certification under subdivision a<br>of subsection 5 of section 51-32-01 in another individual's name is guilty of a<br>noncriminal offense and is subject to the penalty provided under subsection 1.4.Any person that fails to pay any tax required in connection with a delivery sale shall<br>pay, in addition to any other penalty, a penalty of fifty percent of the tax due but<br>unpaid.5.Any cigarettes sold or attempted to be sold in a delivery sale that does not meet the<br>requirements of this chapter are forfeited to the state and must be destroyed.51-32-08. Enforcement. The attorney general or any person who holds a permit under26 U.S.C. 5712 may bring an action in the appropriate court in the state to prevent or restrain a<br>violation of this chapter by any person.Page No. 3Document Outlinechapter 51-32 remote sales of tobacco products