1Amending the act of April 9, 1929 (P.L.343, No.176), entitled,
2as amended, "An act relating to the finances of the State
3government; providing for the settlement, assessment,
4collection, and lien of taxes, bonus, and all other accounts
5due the Commonwealth, the collection and recovery of fees and
6other money or property due or belonging to the Commonwealth,
7or any agency thereof, including escheated property and the
8proceeds of its sale, the custody and disbursement or other
9disposition of funds and securities belonging to or in the
10possession of the Commonwealth, and the settlement of claims
11against the Commonwealth, the resettlement of accounts and
12appeals to the courts, refunds of moneys erroneously paid to
13the Commonwealth, auditing the accounts of the Commonwealth
14and all agencies thereof, of all public officers collecting
15moneys payable to the Commonwealth, or any agency thereof,
16and all receipts of appropriations from the Commonwealth,
17authorizing the Commonwealth to issue tax anticipation notes
18to defray current expenses, implementing the provisions of
19section 7(a) of Article VIII of the Constitution of
20Pennsylvania authorizing and restricting the incurring of
21certain debt and imposing penalties; affecting every
22department, board, commission, and officer of the State
23government, every political subdivision of the State, and
24certain officers of such subdivisions, every person,
25association, and corporation required to pay, assess, or
26collect taxes, or to make returns or reports under the laws
27imposing taxes for State purposes, or to pay license fees or
28other moneys to the Commonwealth, or any agency thereof,
29every State depository and every debtor or creditor of the
30Commonwealth," in cigarette sales and licensing, further
31providing for definitions and for retention of records;
32providing for property records; and further providing for
33violations and penalties.

1The General Assembly of the Commonwealth of Pennsylvania
2hereby enacts as follows:

3Section 1. The definitions of "cost of the retailer,"

4"cost of the stamping agent" and "cost of the wholesaler" in
5section 202-A of the act of April 9, 1929 (P.L.343, No.176),
6known as The Fiscal Code, amended or added June 2, 1993
7(P.L.250, No.46) and December 23, 2003 (P.L.243, No.45), are
8amended to read:

9Section 202-A. Definitions.--As used in this article--

10* * *

11"Cost of the Retailer" shall mean the basic cost of
12cigarettes to the retailer plus the cost of doing business by
13the retailer in excess of the basic cost of cigarettes,
14expressed as a percentage and applied to the basic cost of
15cigarettes. In the absence of filing of satisfactory proof of a
16lesser or higher cost of doing business by the retailer making
17the sale, the cost of doing business by the retailer shall be
18presumed to be [six] eight per centum of the basic cost of
19cigarettes to the retailer. When a retailer establishes a lesser
20cost of doing business than the presumptive [six] eight per
21centum cost of doing business, such lesser cost of doing
22business may be used to compute the cost of the retailer for a
23period of time no greater than twelve months, at the end of
24which time the cost to the retailer shall be computed using the
25presumptive [six] eight per centum cost of doing business,
26unless the retailer again establishes a lesser cost of doing
27business. Any fractional part of a cent in such cost per carton
28shall be rounded off to the next higher cent. In the case of any
29person who purchases cigarettes for sale at retail from any
30manufacturer of cigarettes without resort to a wholesaler as

1such, such person shall be deemed, for the purposes of this
2article, to be engaged in the sale of cigarettes as a stamping
3agent, wholesaler and retailer and as such shall be subject to
4all mark-up provisions of this article in the order named.

5"Cost of the Stamping Agent" shall mean the basic cost of
6cigarettes plus the cost of doing business by the cigarette
7stamping agent in excess of the basic cost of cigarettes,
8expressed as a percentage and applied to the basic cost of
9cigarettes. Any fractional part of a cent in the cost per carton
10of cigarettes shall be rounded off to the next higher cent. In
11the case of sales at retail by cigarette stamping agents, the
12cost of the cigarette stamping agent shall be the same as the
13cost of the retailer. There shall be determined a separate cost
14of the cigarette stamping agent for sales to wholesale dealers
15and for sales to retail dealers. In the absence of filing of
16satisfactory proof of a lesser cost of doing business of the
17cigarette stamping agent making the sale, the cost of doing
18business shall be presumed to be [one and seven-tenths] two and 
19five-tenths per centum of the basic cost of cigarettes to the
20stamper for sales to wholesale dealers and, with respect to
21sales to retail dealers, the cost of the stamping agent plus the
22cost of the wholesaler. When a cigarette stamping agent
23establishes a lesser cost of doing business than the presumptive
24costs contained herein, such lesser cost of doing business may
25be used to compute the cost of the cigarette stamping agent for
26a period of time no greater than twelve months, at the end of
27which time the cost of the cigarette stamping agent shall be
28computed using the presumptive costs contained herein, unless
29the cigarette stamping agent again establishes a lesser cost of
30doing business.

1"Cost of the Wholesaler" shall mean the basic cost of
2cigarettes to the wholesaler plus the cost of doing business by
3the wholesaler in excess of the basic cost of cigarettes,
4expressed as a percentage and applied to the basic cost of
5cigarettes. Any fractional part of a cent in the cost to the
6wholesaler per carton of cigarettes shall be rounded off to the
7next higher cent. There shall be determined a separate cost of
8the wholesaler for sale to retail dealers. In the absence of
9filing satisfactory proof of a lesser cost of doing business by
10the wholesaler with respect to sales to retail dealers, the cost
11of doing business shall be presumed to be four and five-tenths
12per centum of the basic cost of cigarettes. When a wholesaler
13establishes a lesser cost of doing business than the presumptive
14cost of doing business, such lesser cost of doing business may
15be used to compute the cost of the wholesaler for a period of
16time no greater than twelve months, at the end of which time the
17cost of the wholesaler shall be computed using the presumptive
18four per centum cost of doing business, unless the wholesaler
19again establishes a lesser cost of doing business.

20* * *

21Section 2. Section 214-A of the act, added July 2, 1993,
22(P.L.250, No.46), is amended to read:

23Section 214-A. [Retention of] Required Records.--(a) Every
24licensed dealer shall keep and maintain for a period of four
25years such records in such form as the department shall by
26regulation prescribe. The records shall be maintained at the
27location for which the license is issued.

28(b) A contract of sale complying with the provisions of this
29article shall be signed by the parties to a sale of cigarettes
30and shall be kept on file by each party at the location for

1which the license is issued. In the case of a dealer having more
2than one location under common ownership, the contract of sale
3shall be kept at the business or corporate headquarters. A
4contract of sale shall include, but not be limited to, an actual
5document or Internet or electronic evidence indicating that a
6transaction for the sale of cigarettes has taken place.

7Section 3. The act is amended by adding a section to read:

8Section 216.1-A. Property Rights.--A purchasing dealer shall
9not have any property rights in any cigarette package to which a
10tax stamp is affixed until the purchasing dealer pays in full
11for the package.

12Section 4. Section 229-A of the act is amended by adding a
13subsection to read:

14Section 229-A. Violations and Penalties.--* * *

15(g) Any licensee who fails to pay for cigarettes in full
16upon delivery or according to the contract of sale, but in no
17event more than ten days after delivery, violates this article
18and the licensee's license shall be suspended until payment is
19made in full. The licensee and any other person with an
20equitable interest in the license shall be prohibited from
21holding an interest in any other license issued pursuant to this
22article. Payment on delivery by a check that is dishonored
23constitutes a failure to pay in full upon delivery.

24Section 5. This act shall take effect immediately.