2009 Alerts Archive

Legislative & Regulatory Alerts Archive

2009 Alerts:

Sales of NON-Fire Safe Cigarettes after 12-31-09
Governor Signs Smoking Ban
New EEOC Poster reflects GINA law effective 11-21-09
Student Work-Hour Deviation for 2009 Holiday Season
Treasury Issues Updated Sales Tax Rules
LCC Proposes Mandatory Training of Off-Premises Licensees

Final Michigan WIC EBT Cash Value Benefit Program Instructions
Certified Manager Required by June 30, 2009
Swine Influenza Information Resources
Pistachio Recall
Federal Tobacco Tax Effective April 1
New Posting Requirements - Nonreturnable Container Penalties
Senate Passes Resolution Against Federal Card-Check Legis
Grocers Asked to Fight Free Choice Act
MDA issues Michigan Specific Peanut Butter Recall List
Legislature Phases Out MBT's Tax on a Tax
Governor Signs ‘New and Improved’ Reverse Vending Legislation
DOL Releases New Family Medical Leave Act Poster
Americans with Disabilities Act Amendments

2008 Bottle Deposit Fund Reimbursement
Reminder to Post MIOSHA Form 300A Feb 1, 2009
Governor Signs Tobacco Legislation

2009 Alerts:

Purchase & Sales of NON-Fire Safety Compliant Cigarettes after 12/31/2009

[December, 2009] MGA received the following notice regarding the purchase and sales of NON-Fire Safety Compliant Cigarettes after December 31, 2009:

This notice is to confirm the State of Michigan will allow the continued sales of NON-Fire Safety Compliant cigarettes to Michigan Retailers until all current and on-hand inventories as of December 31, 2009, have been exhausted in wholesaler distribution centers. And that Michigan Retailers are allowed to continue to purchase and sell NON-Fire Safety Compliant cigarettes until all wholesale and retail inventories have been exhausted.

Visit the Michigan Department of Energy, Labor & Economic Growth website for additional information. Back to Top

Governor Signs Smoking Ban Legislation

[December, 2009] Governor Granholm signed HB 4377 that bans smoking in most Michigan workplaces. The bill amends the Public Health Code, generally, to prohibit smoking in public places, places of employment, and in food service establishments (such as restaurants, cafeterias, food courts in shopping malls, and bars). Excluded from the ban are cigar bars and specialty tobacco retail stores, gambling areas of casinos and home offices. Public Act 188 of 2009 takes effect May 1, 2010. Michigan will become the 38^th state with a workplace smoking ban.

The bill expands the definition of “public place” under the Public Health Code to include a “place of employment,” and that term refers to an enclosed indoor area serving as the work area for one or more persons employed by a public or private employer. (A “work area” is defined as a site within a place of employment where one or more employees perform services for an employer.).

Section 6127 of the Michigan Food Law of 2000 is repealed. Specifically, retail grocery stores can no longer designate a smoking area for employees and the public that is isolated from the retail food area.

Retailers are still required to post a No Smoking sign or the international no smoking symbol. It must be clearly and conspicuously posted at entrances to and within every building or other area where smoking is prohibited. Additionally, ashtrays and other smoking paraphernalia would have to be removed from places where smoking is prohibited (i.e. break rooms). Owners, operators, managers or others with control over a no-smoking area would be obligated to inform individuals found smoking that they were in violation of state law and subject to penalties. Back to Top

EEOC has revised its “Equal Employment Opportunity is the Law” poster to add information about the Genetic Information Nondiscrimination Act (GINA) of 2008, effective November 21, 2009.

[November, 2009] In May 2008, the President signed the Genetic Information Nondiscrimination Act of 2008 (GINA). GINA includes two titles: Title I, which amends portions of the Employee Retirement Income Security Act, the Public Health Service Act and the Internal Revenue Code, addresses the use of genetic information in health insurance.

Title II prohibits the use of genetic information in employment, prohibits the intentional acquisition of genetic information about applicants and employees, and imposes strict confidentiality requirements. Title II applies to private and public employers with 15 or more employees, employment agencies, labor unions and joint labor- labor management training programs. It also covers Congress and federal executive branch agencies. Title II takes effect November 21, 2009. The NEW POSTER (PDF file) can be downloaded and printed FREE and includes updates from the Department of Labor. Back to Top

MGA Secures 2009 Student Work-Hours Deviation for Holiday Season

[October 27, 2009] To help MGA members with holiday staffing needs, Michigan Grocers Association requested a deviation in the hours standard for youth employment. The Michigan Department of Labor & Economic Growth (DLEG) Wage and Hour Division approved the request in October. The Youth Employment Standards Act was amended to allow 16- and 17-year-olds to work until 11:30 p.m. on Fridays and Saturdays and during school vacations without a deviation. However, many MGA member retailers are open until midnight.

This deviation allows 16 and 17 year olds to work between the hours of 11:30 pm and midnight on Fridays and Saturdays and during school vacation periods beginning November 19, 2009 until January 2, 2010. Additionally, this deviation allows 16 and 17 year old minors to work until midnight on school nights when students are not on a vacation period during November 19, 2009 thru January 2, 2010. The deviation gives MGA retail members greater scheduling flexibility during the busy holiday shopping season.

Click Here (PDF file) to download and print a copy of the deviation approval letter. Each MGA member store MUST keep a copy of this letter on file at the place of employment. Back to Top

Department of Treasury Issues Updated Sales Tax Rules for Food

[October 21, 2009] On October 21, 2009, the Michigan Department of Treasury issued a new Revenue Administrative Bulletin (RAB) that addresses the sales tax of Food for Human Consumption. RAB 2009-8 (PDF file) supersedes RAB 2002-20 and must be followed. This bulletin explains the sales and use tax treatment of food and prepared food. Back to Top

Liquor Commission Proposes Mandatory Training for Off-Premise Licensees

[October, 2009] In October, MGA president Linda Gobler, testified before the Michigan Liquor Control Commission against the Proposed Rule [PDF file] to require off-premise licensees to be trained in alcohol management.

The Commission is very concerned about the increase in sales to minors and has decided that the best course of action is to train all employees who come in contact with alcohol.

Ms. Gobler explained to the Commission what a burdensome, costly regulation this would be to our industry. She also reminded them that MGA has worked with legislators to toughen the laws against employees who illegally sell alcohol.

If this rule passes, MGA asked for the ability to train employees via the Internet and to eliminate the requirement that the tests be proctored, sharing that other government agencies allow for unproctored testing. However, the Commission remains firm in their belief that testing must be supervised.

After the hearing, MLCC members encouraged MGA to meet with them to explore the available training programs used by our members. If you are using an Alcohol Management Training Program, please contact Linda Gobler via email, fax: 517-372-3002 or phone: 800-947- 6237 x 16. She is looking into all the programs our members are currently using. Back to Top

Final Michigan WIC EBT Cash Value Benefit Program Instructions

[June, 2009] Below is a a PDF file of the instructions being mailed to every store using ACS's Stand Beside - Point of Sale (POS) equipment in the MI WIC EBT program. This information is being sent by ACS. Additionally, all vendors in the MI WIC EBT program will be receiving information from the State of Michigan Department of Community Health regarding products covered by the MI WIC EBT Cash Value Benefit program. Back to Top

Final Michigan WIC EBC Cash Value Benefit Program Instructions (PDF file)

Certain Retail Establishments Must Now Employ a Certified Manager by June 30, 2009

[May, 2009] The Michigan Food Law has been updated to require that certain establishments employ a certified manager by June 30, 2009. Certified managers must know the food law's new temperature controls, have knowledge of food allergens and more.

MDA inspected establishments that must now have a certified manager include the following:

	A food service establishment within a retail grocery Examples include: submarine sandwiches for immediate service, fried chicken by the piece, hamburgers, tacos, hand dipped ice cream, wineries with substantial food service and “you buy, we fry” fish and meat operations.
	Extended retail food establishments These are typically grocery stores with a deli and seating.

According to the MDA, retailers will be allowed a “reasonable” period of time beyond June 30, 2009, to provide a certified manager, if needed.

Becoming Certified or Recertified
To be certified you must pass an ANSI/CFP nationally accredited exam once every five years. To prepare for the exam, most individuals take a class (in person or on-line) or self-study. Exams are proctored and must be taken either at an approved testing site or are given at the end of a course by an approved instructor.

To find a course, trainer, textbook or exam by phone, please call your local health department. Online, visit the Michigan Department of Agriculture's Manager Certification page for an online list.

MGA has partnered with Lipari Foods and the Michigan Restaurant Association to make the certification training and testing both accessible and affordable. Click Here to download a brochure with training dates, locations and fees. Back to Top

Swine Influenza Information Resources

[April, 2009] There is quite a bit of information, and misinformation, being circulated about the swine influenza outbreak. We encourage you to rely only on official sources of information. The best resource for international information is the World Health Organization. You can access the WHO updates on swine influenza at: http://www.who.int/csr/disease/swineflu/en/index.html.

Also, the US Centers for Disease Control has useful information on the outbreak along with travel notices, best prevention measures and much more. The link to the CDC site is: http://www.cdc.gov/swineflu/.

Michigan launched a new web site to provide citizens with accurate and timely information on swine flu, as well as updates on the state's actions to protect residents. The site, www.michigan.gov/swineflu, will house all materials produced and distributed by the State of Michigan regarding swine influenza. Back to Top

FDA Class I Recall Expansion Involving Pistachios that may be Contaminated with Salmonella

[April, 2009] Please visit the FDA Pistachio web page for the most current information on pistachio-related recall. A searchable pistachio product database is available.

Cal-Pure co-op of California Pistachio Growers and the Western Pistachio Association have established a website that lists firms that have informed that their products ARE NOT subject to recall. NOTE: Information on this web site has not been verified by FDA, and FDA is not responsible for its contents. Likewise, MGA is providing this link for information only. Back to Top

Federal Tobacco Tax Effective April 1, 2009

[March, 2009] Last month, Congress passed legislation to substantially increase the Federal Excise Taxes on tobacco items. The increase also included a floor stock tax on tobacco products in retailers, wholesalers and manufacturer’s inventories on April 1, 2009. The floor stock tax, which is the difference between the new tax and the current rate, is due on August 1, 2009. Following are links to the Alcohol and Tobacco Tax and Trade Bureau (TTB) tax form and instructions. Back to Top

	TTB Tax Form 5000.28T09
	Instructions for Form 5000.28T09

New Posting Requirements for Nonreturnable Container Penalties Effective March 31, 2009

[March 2009] Public Act 385 of 2008 requires that: "In that portion of the dealer’s premises where returnable containers are redeemed, a dealer shall post a notice that says substantially the following: “A person who returns out-of-state nonreturnable containers for a refund is subject to penalties of up to 5 years in jail, a fine of $5,000.00, and restitution.” This new posting requirement goes into effect March 31, 2009. A “dealer” who fails to comply with this section is subject to a civil fine of not more than $50.00.

We have created a sign to download that addresses the new penalties and also covers the posting requirement stipulated under Public Act 34 of 2004 stating that: “It is illegal to dispose of deposit bottles and cans in landfills” and asks customers to not put any deposit items in trash receptacles. Back to Top

Michigan Senate Passes Resolution Against Federal ‘Card-Check’ Legislation (Update)

[March, 2009] The Michigan Senate passed a resolution in February calling on Congress to reject federal legislation that would make it easier for employees to unionize.

Known as the Employee Free Choice Act or “card-check” legislation, the bill takes away the secret-ballot election on whether to unionize, allowing workers to unionize if a majority submit signed cards to the employer.

As reported below, this issue has become a top priority for labor unions, with Democrats in control of the White House and the U.S. House and Senate. (See background information below - "Grocers Asked to Fight Free Choice Act").

On February 19, 2009, Michigan’s Senate passed Resolution 16, introduced by Senator Mark Jansen (R-Gaines Township), urging Congress to protect workers’ current rights to privacy while voting for or against unionization.

The resolution states that the Employee Free Choice Act “would eliminate the current federal rights of Michigan employees and employees across the nation to recognize a union by a private ballot and would put in place a card-check process through which employees are forced to make their decision in front of union organizers, leaving them vulnerable to threats, harassment and abuse.”

In introducing the legislation, Jansen said legislators “are not allowed to carry a ballot to our neighbors and watch them vote for or against us … it’s done in privacy and that’s part of a Democracy.” He said employees voting for or against a union should have the ability to do so with privacy as well.

Senate Minority Leader Mike Prusi (D-Ishpeming) spoke out against the resolution saying in his years as a union leader he has seen much more coercion on the part of employers than he ever saw on the part of the organizing union.

The Senate passed the resolution. While it has no binding authority on Congress, it’s important because it puts Michigan on the record as opposing this assault on our current Democratic process.

In the Michigan House, on February 4, Rep. Fred Miller (D-Mount Clemens) introduced Resolution 10 memorializing Congress to enact the Employee Free Choice Act. The resolution was not taken up by the House.

In related news, the former chairman of the Michigan Republican Party Saul Anuzis became the national chairman of American Solutions, a non-partisan group organized by former U.S. House Speaker Newt Gingrich, to chair the group’s national effort to oppose the card-check legislation.

According to American Solutions, the card-check legislation is “an enormous power grab by big labor bosses that would strip workers of their right to decide by private ballot whether to join a union, and their right to freely negotiate their contract. Instead, workers would be asked to publicly sign cards in front of union organizers, potentially subjecting them to harassment or intimidation. EFCA is a threat to workers’ rights.”

American Solutions says, “Our effort is not anti-union; our effort is anti-EFCA. Our internal polling shows that the American people are firmly on the side of supporting a worker’s right to a secret ballot election. In fact, the tri-partisan agreement to defend this right is overwhelming, as 77 percent of Republicans, 82 percent of Democrats, and 79 percent of independents believe in protecting private ballots. Support for private ballots is so broad it also spanned union households and every subgroup examined, including majorities of every age, race, geographic group and both genders.”

Michigan Grocers Association, the National Grocers Association, the Food Marketing Institute, United Fresh Produce Association and many other groups are urging grocers to contact their congressperson to tell him or her that you oppose the Employee Free Choice Act.

Supporters of the act are claiming that a vote for the Employee Free Choice Act is a vote for the middle class. This could not be further from the truth, says the National Grocers Association. “The act is as harmful to employees as it is to businesses as employees would be denied their right to a federally supervised private ballot election and subject to contract terms decided through binding arbitration. The purpose of the act is nothing less than to tilt the playing field in favor of unions, who already win over 50 percent of NLRB private ballot elections.”

Visit www.house.gov or www.senate.gov and click on the name of your congressperson for a fax number and email address. Or call the Capitol switchboard and ask for your representative at (202) 225.3121 or senator at (202) 224.3121. Back to Top

Grocers Asked to Fight Free Choice Act

[February, 2009] Democrats now control the White House and the U.S. House and Senate by large margins over Republicans. Various constituencies, including those represented by organized labor, are expected to attempt to advance an extensive agenda before the 111th Congress.

Primary in that agenda is enactment of the Employee Free Choice Act, also known as the “Card Check” legislation, which many food industry groups adamantly oppose.

Called the “Employee ‘Forced’ Choice Act” by the industry, it would take away the right of employees to have a secret-ballot election on whether to unionize. This violates a fundamental American democratic right to vote by secret ballot in any election – whether it is to select a president or form a union.

Background
Under the National Labor Relations Act (NLRA), if employees in an appropriate collective bargaining unit wish to select a union to represent them, the NLRB will hold a secret ballot election based on a petition supported by 30% of the employees in the unit. The NLRB administers the election by bringing portable voting booths, ballots and a ballot box to the workplace.

The election process occurs outside the presence of any supervisors or managerial representatives of the employer. No campaigning of any kind may occur in the voting area. The only people who are allowed in the voting area are the NLRB agent, the employees who are voting and certain designated employee observers.

The NLRB representative is present to oversee the entire voting process to ensure that neither the employer nor the union can determine how an employee voted. Currently, if a majority of the workers voting in the election cast votes in favor of the union, the NLRB will certify the union as the exclusive bargaining representative of all employees in the unit.

Ninety-four percent of the NLRB supervised elections take place within 60 days of the petition and over 50% are won by unions.

Under the Employee Free Choice Act, employees would fill out an authorization card (“card check”) indicating whether or not they are interested in forming a union; the union is deemed to be recognized if more than 50% of the workers simply sign the card. Card check procedures are unreliable and invite undue pressure, coercion and abuse.

Employees are forced to fill out the cards in front of union organizers and their fellow employees who support unionization. Even under current law, Courts have recognized that workers sometimes sign union authorization cards not because they intend to vote for the union but to avoid offending the person who asks them to sign or simply to get the person off their back, since, under current law, signing commits the worker to nothing (except that if enough workers sign, the employer may decide to recognize the union without an election).

Grocery Industry Impact
The supermarket industry is very diverse with large and medium-size companies as well as small, independent operators, many of which are non-union. Food industry groups strongly believe in preserving employees’ right to a federally protected secret ballot election on the question of whether they want union representation. To take away an employee’s access to a secret ballot is wrong and undemocratic.

The Food Marketing Institute, National Grocers Association, United Fresh Produce Association and numerous other groups urge grocers to contact their Congressperson and tell him or her you oppose the Employee Free Choice Act. Tell your Representatives and Senators to oppose this legislation that is designed to do nothing more than to tilt the union organizing playing field in favor of unions and deny employees their right to a private ballot election.

To fax or email a letter to them, go to www.house.gov or www.senate.gov and click on their name to get their fax number or email address. Or you can call the Capitol switchboard and ask for your Representative at (202) 225.3121 or Senator at (202) 224.3121.
Back to Top

	At this time, the law only applies Michigan’s border areas defined as counties bordering other states or Lower Peninsula counties contiguous with counties bordering other states: Berrien, Branch, Cass, Calhoun, Dickinson, Gogebic, Hillsdale, Iron, Jackson, Kalamazoo, Lenawee, Menominee, Monroe, St. Joseph, Van Buren, Washtenaw and Wayne.
	The RVM requirements only take effect when the state appropriates at least $1 million of general fund money to a special fund to retrofit RVM machines in the border areas.
	If money is not available for the retrofit, currently estimated to be $5,000 per machine, and/or the technology is not available, then retailers are held harmless from the law.
	Requirement will first only apply to 12-ounce cans.
	If the technology and funding are available, plastic and glass containers will have to meet the same RVM requirements, approximately 450 days after the bill’s effective date.
	The law requires the Department of Treasury to assess the system within four years to analyze results to determine if the new RVM requirements should apply to the remaining counties.

Following is a list and direct links to the RVM Public Acts signed into law by the Governor:

	Public Act 384 of 2008, sponsored by Representative Rebekah Warren. The law increases fines and penalties for anyone trying to redeem foreign containers. It also establishes an affirmative defense, stating retailers had to ‘knowingly’ break the law. Retailers are also held harmless from activity engaged in by an employee if the retailer has a written policy in place to prohibit the redemption of foreign containers and has informed the employee of it.
	Public Act 385 of 2008, sponsored by Representative Steve Bieda. The law requires retailers to post a sign that lists the new penalties for anyone redeeming foreign containers.
	Public Act 386 of 2008, sponsored by Senator Randy Richardville. The law changes the criminal code to incorporate new penalties and fines for redeeming foreign containers.
	Public Act 387 of 2008, sponsored by Representative Steve Bieda. The new law requires reverse vending machines to read and capture at least 85% of all foreign containers. The act establishes a new fund and an initial funding of one Million dollars.
	Public Act 388 of 2008, sponsored by Senator Cameron Brown. The new law requires the state to provide financial reimbursement to RVM manufacturers for the retrofitting of RVM’s in Michigan.
	Public Act 389 of 2008, sponsored by Senator Ron Jelinek. The new law requires beverage cans, and, at a later date, glass and plastic bottles, to be marked with a special icon to indicate a deposit has been paid on the container.

“Thanks to the hard work of our association and our members, we where able to make harmful legislation better before it became law,” said MGA President Linda Gobler. “This could have been another very expensive unfunded mandate dumped on Michigan’s retailers. However, our hard work really made legislators realize the seriousness of hitting retailers with another huge cost. We are pleased that the law includes all of MGA’s supported amendments.” Back to Top

Department of Labor Releases New Family Medical Leave Act Poster

[January, 2009] On November 17, 2008, the Department of Labor published its final rule to implement the first-ever amendments to the Family and Medical Leave Act (FMLA), signed into law by President Bush in January 2008, which provide new military family leave entitlements and to update the regulations under the 15 year-old FMLA.

The final rule will affect all employers who are required to adhere to FMLA guidelines. (Employers are covered by the provisions of the Act if there are at least 50 employees within a 75 mile radius). The final rule serves two primary purposes:

	To implement new FMLA leave available to military family members; and
	To improve communication between employees, employers and health care providers to make the law operate more smoothly and provide needed clarity for both workers and employers about their responsibilities and rights under the FMLA leave.

To download a summary of the FMLA changes, CLICK HERE. ( PDF file).

The DOL released a New Poster that reflects recent amendments to the FMLA As part of the FMLA, employers are required to post in a conspicuous place a notice explaining the act’s provisions. Among other changes, the new poster contains a description of the requirements for military family leave. Previously, employers were required to post separate notices regarding military family leave and the FMLA.

Visit MGA’s Poster Page for a link to other federal, state and industry specific posting requirements. Back to Top

Americans with Disabilities Act Amendments Take Effect January 1, 2009

[January, 2009] On September 25 President Bush signed the Americans with Disabilities Act (ADA) Amendments Act of 2008, effective January 1, 2009. The Equal Employment Opportunity Commission is charged with proposing rules to implement the act. As of January 5, 2009, the EEOC has not yet done so. More information will be provided when it does.

In the interim, the EEOC issued a notice providing an overview of the amendments, which says in part:

The [Americans with Disabilities] Act makes important changes to the definition of the term “disability” by rejecting the holdings in several Supreme Court decisions and portions of EEOC’s ADA regulations. The act retains the ADA’s basic definition of “disability” as an impairment that substantially limits one or more major life activities, a record of such an impairment or being regarded as having such an impairment.

However, it changes the way that these statutory terms should be interpreted in several ways:

	The term “disability” shall be construed in favor of broad coverage for individuals.
	“Mitigating measures,” such as medication, medical supplies, prosthetics, hearing aids, mobility devices and assistive technology, may not be considered in determining whether an individual has a disability. Employers may have to consider what an individual’s limitations would be without medication. The U.S. Supreme Court held the opposite, that you do not ignore mitigating measures, therefore fewer people were covered.
	An impairment that substantially limits one major life activity need not limit other major life activities to be a disability.
	An impairment that is episodic or in remission is a disability if it would substantially limit a major life activity when active.

Under the amendments, many employees not previously protected under the ADA may now be considered to have a disability. For more information, see: www.eeoc.gov/ada/amendments_notice.html. Back to Top

2008 Bottle Deposit Fund Reimbursement Forms due on or before June 1, 2009.

[January, 2009] Under P.A. 148 of 1989, Michigan retailers and dealers who sell beverages in returnable containers can request compensation for a small portion of the costs for handling empty containers. Any excess of deposits collected over refunds made by manufacturers and distributors in paid annually to the Bottle Deposit Fund within the Michigan Department of Treasury. Seventy-five percent of those funds are deposited into the Cleanup and Redevelopment Trust fund and 25% are apportioned among retailers based on the number of returnable containers redeemed each year.

The payment is based on the number of empty returnable containers handled in a calendar year. Payment amounts will be known after Treasury determines how much money is available. Treasury will begin issuing checks after August 1.

To qualify for a portion of these funds, retailers must file a Request for Bottle Deposit Fund Reimbursement (Form 2196) on or before June 1, 2009. Reports postmarked after June 1 will not be honored.

WHERE TO GET FORM 2196:

Form 2196, along with many other tax forms, can now be completed on-line for printing and mailing. Visit the 2009 Sales & Use Tax Forms Page of Treasury’s website for more information. Back to Top

MIOSHA Reminder: Post Form 300A February 1 to April 30, 2009

[January, 2009] MIOSHA requires employers with 11 or more employees to log and maintain records of work-related injuries and illnesses, and to make those records available during MIOSHA inspections of the workplace. Employers are required to post the total number of job-related injuries and illnesses on MIOSHA Form 300A, Summary of Work Related Injuries and Illnesses, that occurred during the previous calendar year from February 1 to April 30.

Visit MGA’s Required Postings Page to download Form 300A and other required postings or call Nora Hale at 800.947.6237 x 25 if you need forms faxed or mailed to you. Back to Top

Governor Signs Legislation Under Which Retailers May Lose
Sales Tax License for Tobacco Tax Violations

[January, 2009] Before adjourning, the 94th Legislature approved Senate Bill 882 (Senator Tom George, R-Kalamazoo) and SB 883 (Senator Jason Allen, R-Traverse City) to address the issue of counterfeit cigarettes and illegal sales. The Governor signed the bills on January 9, 2009 with immediate effect.

Public Act 459 of 2008 allows the state Treasurer to prohibit the sale of any products subject to the sales tax at any location where a person had knowingly violated provisions of the Tobacco Products Tax Act.

Public Act 458 and 459 establishes criminal and civil penalties for unlawfully possessing, transporting or offering for sale counterfeit or gray market cigarettes or tobacco products.

“Obviously, MGA opposed this legislation, but it became clear that some version of it would pass both the House and Senate,” says MGA President Linda M. Gobler. “So we worked with legislators to mitigate the penalty by inserting the word “knowingly” into the bill.”

Gobler continues, “In addition, it would be an affirmative defense for a retailer that it had in force at the time of a violation, and continues to have in force, a written policy that prohibited employees from selling prohibited products and that the retailer enforced and continues to enforce that policy.”

Public Act 459 of 2008 (SB 883) establishes the following penalties:

	First Offense: If the amount of illegal tobacco products is less than $5,000, a fine of $400. If the amount is $5,000 or more, a fine of at least $1,000 and suspension of the sales tax license for at least three days at the location where the violation occurred.
	Second Offense: If the amount of illegal tobacco products is less than $3,000, a fine of $700. For larger amounts, a fine of at least $1,000 and sales tax license suspension for at least three days at the location where the violation occurred.
	Third and Subsequent Offenses: A fine of at least $1,000 and sales tax license suspension for at least three days. SB 882 establishes the following penalties:

Public Act 458 of 2008 (SB 882) establishes the following penalties for violations of the Tobacco Products Tax Act involving smaller quantities of products then that which currently trigger penalties:

	For 180-599 cigarettes or other tobacco products with a value of $25 or more but less than $50, the offense would be a civil infraction with a maximum civil fine of $100.
	For 600-1,199 cigarettes or other tobacco products with a value of $50 or more but less than $100, the offense would be a misdemeanor, punishable by a fine of up to $1,000 and/or imprisonment for up to 90 days. Back to Top