UNDERAGE TOBACCO SALES:  INCREASE PENALTIES

House Bill 4444 (Substitute H-1)

Sponsor:  Rep. Dudley Spade

Committee:  Commerce

Complete to 5-12-08

A SUMMARY OF HOUSE BILL 4444 AS REPORTED FROM COMMITTEE

The bill would amend the Youth Tobacco Act (MCL 722.641) to increase penalties for selling or furnishing tobacco to a minor.  It establishes separate, higher penalties for sales at a distance.

However, under the substitute, a retailer or clerk, agent, or employee of a retailer could not be convicted of a misdemeanor involving the sale of tobacco to a minor unless the minor was also charged with a misdemeanor in connection with transaction.  (This would not apply to undercover operations.)

The current misdemeanor fine is $50 per violation.  The bill would increase the fines to:

o                   $100 for a first violation; $250 for a second violation within three years; and $500 for a third or subsequent violation, if the violation occurred within three years of the previous violation.

o                   If the violation is an Internet, mail order, or telephone sale of a tobacco product to a person under 18:  $500 for a first violation, $1,000 for a second violation within three years; and $2,000 for a third or subsequent violation, if the violation occurred within three years of the previous violation.

FISCAL IMPACT:

To the extent that the bill increased collections of penal fine revenues, it could benefit local libraries, which are the constitutionally-designated recipients of such revenues.

POSITIONS:

The following indicated support for the bill to the House Commerce Committee on 5-13-08:  The Michigan Grocers Association; the Associated Food and Petroleum Dealers; and Spartan Stores.

                                                                                           Legislative Analyst:   Chris Couch

                                                                                                  Fiscal Analyst:   Marilyn Peterson

■ This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.