WashingtonWatch.com - H.R. 1676, The PACT Act

Comment by Jason Cope (November 28, 2009, 01:00:00)

Sat, 28 Nov 2009 00:00:00 EST

This bill will produce the exact opposite of what it's trying to accomplish. Guaranteed. Kids wll smoke whatever they can get their hands on, flavored or not. This only abuses law-abiding adults who choose to smoke something with flavor. As for Uncle Sam getting even more of my money, I'd gladly pay taxes on my online smokes, no problem. But don't tell a law abiding adult that you he or she can't purchase what they want anymore because you said so. The whole nationwide babysitting has gone entirely too far....

Comment by deslock (November 27, 2009, 01:00:00)

Fri, 27 Nov 2009 00:00:00 EST

How to stop the PACT Act of 2009 It's not too late to give them hell.. Online petition is at http://www.thepetitionsite.com/1/us-citzens-against-the-pact-act-of-2009-s1147...

Comment by THIS IS AMERICA (November 23, 2009, 01:00:00)

Mon, 23 Nov 2009 00:00:00 EST

WTF! I SHOULD BE ABLE TO BUY AS MUCH CHEW I WANT TO ONLINE! THIS IS AMERICA WTF IS HAPPENING...

Comment by Chief Kisco (November 22, 2009, 01:00:00)

Sun, 22 Nov 2009 00:00:00 EST

If this bill will pass, there will be just one more field for corruption. No other effect. OK, more dues from taxpayers. And higher prices for cigs. What else? Let me think... Can't think of anything positive....

Comment by Terri (November 16, 2009, 01:00:00)

Mon, 16 Nov 2009 00:00:00 EST

We do not need any more legislation that would corner the market for Phillip Morris!...

Comment by Katie Marie Nelson (November 14, 2009, 01:00:00)

Sat, 14 Nov 2009 00:00:00 EST

No wonder gun sales are up!...

Comment by Katie (November 14, 2009, 01:00:00)

Sat, 14 Nov 2009 00:00:00 EST

I am a smoker of over 20 yrs. I will prob die from lung cancer without the E-Cig.Here are some things you should consider.E-Cigs contain no tar.E-Cigs produce no carbon monoxide (they vaporize the E-liquid producing steam). E-Cigs have only 4 chemicals.Traditional cigs contain tar.Traditional cigs produce carbon monoxide. Traditional cigs contain over 100 chemicals. Carbon monoxide is known to be harmful and cause cancer.Tar clogs the air sacks of the lungs.Lung Cancer is the #1 leading cause of premature death in the USA.If passed it will make it illegal for tobacco and tobacco products to be sent though the mail. The nicotine found in the e-liquid we use in our electronic cigarettes comes from tobacco. I'm telling you if this is passed people are going to die! Genocide is the planned killing of a group of people. I can assure you this WILL kill people. If congress passes this they might as well be watching us in a giant gas chamber not really killing us just blocking the only exit!...

Comment by SmokerNeal (November 13, 2009, 01:00:00)

Fri, 13 Nov 2009 00:00:00 EST

Can You Say Boston Tea "Tobacco" Party and King George "Congress"....or am I the only on that see the similarities that are going on right now to the reason for the Boston Tea Party over the excess tea taxes????????? It is time for us to organize and have another "Boston Tobacco Party" on the steps of congress.....they forget that this country would not exist if it wasn't for tobacco...it is the only thing that provide for the founding and making of the U.S. and provided the income to do such. They are trying to create a Probition without the Constitutional Amendment by sercomventing it with all these little laws to force Tobacco out of existence...........

Comment by Linda Muirhead (November 5, 2009, 01:00:00)

Thu, 05 Nov 2009 00:00:00 EST

How much harder do you all feel you need to make like for others. People need to make $70,000 a year to be able to smoke? You are lucky that some of us still smoke with all these taxes you give us. Making life more difficult. Now in the state of NJ you have taxed us to friggen death. You people governing us are the biggest theives and Congress is no better with the "Lifetime Medical Plans" that you make for yourself at our cost and this is what you want to do to us? How about everyone quit smoking and drinking so there will be no one at all paying taxes and lining your prockets? All of you should go to jail for even considering this....

Comment by Non-smoker (November 5, 2009, 01:00:00)

Thu, 05 Nov 2009 00:00:00 EST

I don't smoke and I think this is law is ridiculous. I thought we lived in a free country. It's starting to feel like a prision....

Comment by Mychyl (November 4, 2009, 01:00:00)

Wed, 04 Nov 2009 00:00:00 EST

First off, those of you who are blaming Obama for this legislation: PACT Act has been circulating through Congress for the last... 6 years? Obama's been in office for less than 1 year. It's not Obama who brought this down on us, so don't blame him. Second, I agree that this legislation is utterly pointless, because (at best) it would be effectively ignored, and e-commerce and reservation commerce will continue much the same as usual. (And those of us who live in border states can cross the border, either way.) Worst case scenario, grow your own or quit. I don't like it either, but if it comes to that, not much we can do. But please, get ahold of your senators and fight this. I would, but I'm in Arizona, so that won't work, McCain and Kyl would rather have the tax money to roll around in....

Comment by AT - California (October 16, 2009, 01:00:00)

Fri, 16 Oct 2009 00:00:00 EDT

I used snus to quit smoking and now they want to ban it? This is nothing more than a way to keep people smoking so that they can collect the taxes from it. Please don't ban snus. Snus is a much safer product than cigarettes and has a great success rate in getting people to quit smoking. I smoked a pack day for well over 20 years. I have tried patches, nicotine gum, lozenges, cold turkey and hypnotherapy without success. Snus works and I am now smoke free. Please don't take this product and the ability to order it away....

Comment by dave des monie (October 5, 2009, 01:00:00)

Mon, 05 Oct 2009 00:00:00 EDT

Smokers wise up and read the writing on the wall. The goverment dose not want you to quit smoking after all they like spending your taxed money from them. they just want you to smoke in your house, inyour bedroom with the door locked and a sign on it saying WARNING SMOKER IN ROOM. Now every smoker today has a choice called E-Cigarettes the give you your nicotine without the smoke I use them and prefer them to regular cigarettes. Get educated to laern more about E-Cigarettes go to www.luck-e-strile.com then blogs and articles their you can read the facts from real reaserch pysicians and doctors...

Comment by DAVE DES MONIE (October 5, 2009, 01:00:00)

Mon, 05 Oct 2009 00:00:00 EDT

Comment by Alan S (October 2, 2009, 01:00:00)

Fri, 02 Oct 2009 00:00:00 EDT

A big no to this law. I use reduced harm products to stay off cigarettes, as in Swedish snus and nasal snuff. The only way to get these products is through the mail. If this bill passes I'll be back on cigarettes in a heart beat, thanks to this misguided law. This is a bad law that will put unnecessary hardship on many thousands of US citizens....

Comment by Gotcha (September 30, 2009, 01:00:00)

Wed, 30 Sep 2009 00:00:00 EDT

Prohibition returns...

Comment by Karl (September 24, 2009, 01:00:00)

Thu, 24 Sep 2009 00:00:00 EDT

I really cant add much to the wisdom that has been written in the previous comments. But what really gets me is that most of the most vicious anti-smoking activists (at least where I live) are obese middle aged women. I say tax the Hell out of ice cream and Ho-Hos and they will be the first to cry foul. But seriously. Smoking is my one and only vice. As a member of the working poor (when I can find steady work) this is pure elitist bull against working folks Liberals claim to love. First they made it illegal to smoke in bars. In BARS!! Then the insane tax increases that almost seemed to come every six months for the last five years or so. Then they tried to take smokes away from our men in uniform. Now this? Just make it illegal and be done with it! Then I can buy my smokes from Tony Soprano for three bucks a pack....

Comment by Jimbo (September 22, 2009, 01:00:00)

Tue, 22 Sep 2009 00:00:00 EDT

It's like the end of days. We've had Boston Tea Party in 1773. Political protest- about taxes. 236 years later, Obama's administration wants to levy more taxes on cigarettes, booze, sugared drinks (which recently passed and will be in effect within a few months), and now H.R. 1676 to stop the smuggling of cigarettes? We paid too much taxes on them.. In this state, the cost of a pack of cigarettes before taxes would be about 48% of the total cost- so that leaves us with 52% for taxes, alone. Do the math. The point is, with economy worsening, the taxation is enough to dispel at least 25% of the deficit- so I say NO to the H.R. Bill 1767. Now, think about the deficits, and heavy taxation. Where does all that money we pay go? You tell us. You're abusing America. You're demoralizing America. You're no better than a Socialist, a Marxist, a communist, and even worse, an American Politican. Whatever happened to the "We, the People, of the United States....." We got rights, mind you!...

Comment by VOTE NO! (September 21, 2009, 01:00:00)

Mon, 21 Sep 2009 00:00:00 EDT

This is ridiculous! First, you're banning the sale of clove cigarettes in America, now you're going to make it so that I can't order them online? I'm am 26 years old! I am an adult, I can make my own decisions. I only smoke a pack a week, when I work. I work in a bar, I'm a recovering alcoholic and smoking helps me to keep from drinking. I don't want to smoke regular cigarettes, just let me have my simple pleasure. I'm a very liberal democrat, but this is RIDICULOUS!...

Comment by cocapelle (August 19, 2009, 01:00:00)

Wed, 19 Aug 2009 00:00:00 EDT

I am sick of all the crap that Obama has put us through, in this short time he has been in office! Too many people have lost their jobs. Now, he is trying to put the indians out of work, for their online cigarettes. Just because smokers can get a break on one thing, he wants to take that away! We are going to h-ll in a handbasket! Our country is getting cancer, and it's not from cigarettes! Stop with taking everything away from us!!! If something is going to be taxed, as if we haven't had enough, it should be something that taxes everyone, not just one group of people, smokers! Why force people to purchase cigarettes where they live, and pay twice the price, already??? What happened, did Obama have to quit smoking, because of the white house rules? What does he care, anyway. He and all his cronies will be able to afford those high prices, and will be taken care of, for the rest of their miserable lives!!! VOTE NO!!!...

Comment by MyTaste (August 3, 2009, 01:00:00)

Mon, 03 Aug 2009 00:00:00 EDT

Well, Lets see what you can buy online? You can buy liquor and have this shipped right to your door. You can buy marijuana and have it shipped to your door. You can buy marijuana seeds and have them shipped to your door. Low and behold.. YOU CAN HAVE CIGARETTES DELIVERED TO YOUR DOOR ANYMORE ! HERE IS WHAT EVERYONE NEEDS TO DO IF THEY PASS THIS LAW !! GET GOOD Tobacco seeds and buy them. Plant them! Dry them and smoke. TAX FREE for personal use. So if enough people do this what will they do next. You can buy a cigarette rolling machine (good one) for about 75-100.00 Look at this.. They are trying to pass a law that say yes to legalize marijuana but ---- No you can buy tobacco online.. http://www.esquire.com/the-side/richardson-report/new-marijuana-laws-071309 Everyone needs to stand up and say hell no to PACT ACT H.R 1676 and tell your reps now !! Hope this helps My Taste is numb...

Comment by Buster (July 28, 2009, 01:00:00)

Tue, 28 Jul 2009 00:00:00 EDT

Lord Obama promised "change". I hope all you sheep who voted for hithis hypocryte (he smokes) are happy! There is a new revolution brewing in this country....

Comment by Ron (July 9, 2009, 01:00:00)

Thu, 09 Jul 2009 00:00:00 EDT

This is wonderfull Bill. There has been a huge black market that has been created and something needs to be done to keep it in check. I mean why even make laws if there is zero enforcment....

Comment by Chris83A (July 9, 2009, 01:00:00)

Thu, 09 Jul 2009 00:00:00 EDT

After the patriot act was signed into law we lost all our freedoms as if we're the terrorist....

Revision by webmaster (July 8, 2009, 01:00:00)

Wed, 08 Jul 2009 00:00:00 EDT

H.R. 1676 would prevent tobacco smuggling, to ensure the collection of all tobacco taxes.

Detailed Summary

Prevent All Cigarette Trafficking Act of 2009 or PACT Act - Amends the Jenkins Act to revise provisions governing the collection of taxes on, and trafficking in, cigarettes and smokeless tobacco. <br>

(Sec. 2) Revises the definition of "cigarette" to include roll-your-own tobacco and to exclude cigars. Defines "delivery sale" to mean any sale of cigarettes or smokeless tobacco to a consumer ordered by telephone, the mails, or the Internet or other online service . Redefines "person" to include state, local, and Indian tribal governments. Redefines "use" to include the consumption, storage, handling, or disposal of smokeless tobacco, in addition to cigarettes.

Applies state tobacco tax reporting requirements to: (1) the sale or advertising for sale of smokeless tobacco products; (2) persons who ship or transfer cigarettes and smokeless tobacco products; and (3) the shipment of cigarettes or smokeless tobacco into a locality or Indian country that taxes the sale or use of such products. Requires sellers of tobacco products to file with the Attorney General reports filed with state tobacco tax administrators. Imposes additional information reporting requirements on such sellers, including the disclosure of electronic mail addresses, website addresses, and authorized agents for service of process. Limits the use of information received from sellers of tobacco products solely for tax enforcement purposes.

Expands requirements for delivery sales by requiring each delivery seller, with respect to delivery sales into a specific state and place, to: (1) comply with specified shipping and record-keeping requirements, all state, local, tribal, and other laws generally applicable to sales of cigarettes or smokeless tobacco as if such delivery sales occurred entirely within the specific state and place (including laws imposing excise taxes and licensing and tax-stamping requirements), and specified tax collection requirements; (2) include on the bill of lading for the shipping package containing cigarettes or smokeless tobacco a clear and conspicuous statement that federal law requires the payment of all applicable excise and sales taxes and compliance with applicable licensing and tax-stamping obligations; (3) comply with specified weight and age verification requirements; and (4) keep records of all delivery sales, organized by state, for four years and make such records accessible to state, local, and Indian tribe tax authorities and the Attorney General.

Prohibits the delivery of cigarettes or smokeless tobacco unless the excise tax on such products has been paid and any required stamps or other indicia of payment are properly affixed to the products. Allows an exception for states that require delivery sellers to collect the tax from consumers and remit such tax to state or local tax authorities.

Requires the Attorney General to compile a list of noncompliant delivery sellers of cigarettes and smokeless tobacco and to distribute such list to state attorneys general and tax administrators and common carriers and other couriers, including the United States Postal Service. Prohibits the delivery of any package to, or on behalf of, a noncompliant delivery seller without determining that such package does not include cigarettes or smokeless tobacco.

Makes knowingly violating the Jenkins Act a felony (currently, a misdemeanor). Increases civil penalties for violations to the greater of $5,000 for a first violation or $10,000 for any other violation, or two percent of the gross sales of cigarettes or smokeless tobacco for the year before the violation.

Grants federal district courts jurisdiction to prevent and restrain violations of this Act and to provide injunctive or equitable relief, including money damages. Empowers the Attorney General to administer and enforce this Act. Authorizes a state attorney general, a local government, an Indian tribe that levies a tax subject to this Act, or a holder of a permit as a manufacturer or importer of tobacco products or as an export warehouse proprietor (permit holder) to bring an action in U.S. district court to prevent and restrain violations of this Act. Authorizes a state attorney general or such a local government or Indian tribe to provide to the Attorney General or a U.S. Attorney evidence of a violation of this Act by any person not subject to state, local, or tribal government enforcement actions for violations of this Act.

Establishes a PACT Anti-Trafficking Fund into which 50% of criminal and civil penalties collected in enforcing this Act shall be deposited and available to the Attorney General to enforce this Act and other laws relating to contraband tobacco products.

Requires the Attorney General to make information on enforcement actions publicly available (including on the Internet) and to report to Congress on such actions.

(Sec. 3) Amends the federal criminal code to treat cigarettes and smokeless tobacco as nonmailable matter and prohibit their deposit into the U.S. mails. Authorizes the U.S. Postal Service to refuse to accept nonmailable tobacco products and to issue cease and desist orders to anyone mailing such products. Imposes civil penalties for failure to comply with such orders. Exempts from such prohibition: (1) cigars; and (2) mailings within Alaska or Hawaii; (3) mailings for business purposes between legally operating tobacco businesses, and by individuals for noncommercial purposes; or (4) mailings for consumer testing by manufacturers or the federal government.

Requires the seizure and forfeiture of any cigarettes or smokeless tobacco illegally deposited into the U.S. mails. Imposes a criminal penalty for intentionally placing nonmailable tobacco products in the U.S. mails.

Establishes the PACT Postal Service Fund to which 50% of criminal and civil fines for mailing violations shall be transferred and made available to the Postmaster General to enforce mailing restrictions on cigarettes and smokeless tobacco products.

Allows a state, local government, or Indian tribe to obtain appropriate injunctive or equitable relief for mailing violations in a civil action in a U.S. district court.

(Sec. 4) Prohibits a tobacco product manufacturer or importer from selling in, delivering to, or placing for delivery sale in a state that is a party to the Master Settlement Agreement (executed November 23, 1998, by state attorneys general and certain tobacco manufacturers) any cigarette of such a manufacturer that is not in full compliance with the terms of the Model Statute or Qualifying Statute enacted by such state. Grants: (1) U.S. district courts jurisdiction to prevent and restrain prohibited sales; and (2) the Attorney General authority to administer and enforce compliance with restrictions on such sales.<br>

(Sec. 5) Authorizes the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) to enter the business premises of delivery sellers and inspect their records and information and any cigarettes or smokeless tobacco stored at such premises. Authorizes federal district courts to compel such inspections. Imposes a civil penalty for failure to comply with inspections.

(Sec. 6) Declares that nothing in this Act shall be construed to affect, amend, or modify specified agreements or limitations relating to the collection of taxes on, and related matters regarding, cigarettes or smokeless tobacco sold in Indian country or to inhibit the coordination of law enforcement by states or other jurisdictions, including Indian tribes, with respect to interstate sales or seizures of tobacco products. <br>

(Sec. 7) Directs the ATF Director to: (1) create six regional contraband trafficking teams over a three-year period in New York City, Washington, D.C., Detroit, Los Angeles, Seattle, and Miami; (2) create a new Tobacco Intelligence Center to oversee and monitor smuggling investigations; (3) establish a covert national warehouse for undercover operations; and (4) create a computer database to track and analyze information from retail sellers of tobacco products who sell through the Internet or mail order or who make other non face-to-face sales. Authorizes appropriations.<br>

(Sec. 10) Expresses the sense of Congress that this Act responds to the unique harms posed by online cigarette sales and does not create a precedent for the collection of state sales or use taxes by, or the validity of efforts to impose other types of taxes on, out-of-state entities that do not have a physical presence in the taxing state.

Status of the Legislation

Latest Major Action: 6/1/2009: Referred to Senate committee. Status: Received in the Senate and Read twice and referred to the Committee on the Judiciary.

Points in Favor

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Points Against

Honest, law-abiding online tobacco companies would suffer financially, and many people would be out of work. This would hurt the Native Americans and Swedish Snus companies who make a living selling tobacco products.

The PACT Act can cause a black market to form and there would be little to no quality-control on these products, meaning in addition to the taxes lost to the government, there will be more people in need of treatment for cancer and other tobacco related diseases. People will also start growing their own tobacco and making smokes or smokeless tobacco at home, undetected and depriving the government of taxes.

The PACT Act allows the online sale and mailing of cigars. Anyone, including possibly someone under-aged, would be able to buy the cigars without paying any taxes, then shred and flavor them, start chewing them instead of the dip or chewing tobacco, or worse, even sell them on the black market disguised as a different product.

Cigarettes, chew tobacco, snus, and dip could even be put in plastic and wrapped in cigar wrap leaves, then sent in the mail labeled as cigars. That will not help the sales or tax problem either.

A better approach would be to mandate tax-payment by the recipient of the tobacco order at the post office or house where the tobacco is delivered. This way, the Government would still get its taxes and the organizations that these taxes fund will not lose any money.

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