II 109th CONGRESS 2d Session S. 3816 IN THE SENATE OF THE UNITED STATES August 3, 2006 Ms. Collins introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs A BILL To prohibit the shipment of tobacco products in the mail, and for other purposes.

1.

Tobacco as nonmailable matter

Section 3001 of title 39, United States Code, is amended by inserting after subsection (n) the following: (o)(1)In this section— (A)the terms cigarette, pipe tobacco, and roll-your-own tobacco have the meanings given such terms under section 5702 of the Internal Revenue Code of 1986; (B)the term smokeless tobacco has the meaning given such term under section 5702 of the Internal Revenue Code of 1986, and includes any product containing tobacco that is intended to be placed in the oral or nasal cavity or otherwise expected or intended to be consumed without being combusted; and (C)the term tobacco product means cigarettes, pipe tobacco, roll-your-own tobacco and smokeless tobacco. (2)(A)Except as provided under subparagraphs (B) and (C), the shipment in the mails of any tobacco product for purposes of sale is prohibited, and tobacco products mailed for such purpose are nonmailable and shall not be deposited in or carried through the mails. (B)Subparagraph (A) shall apply only to shipments deposited in the mails, or addressed to a delivery point, in a State that is contiguous with at least 1 other State of the United States. (C)Nothing in subparagraph (A) is intended to prohibit from the mails the shipment of tobacco products sent for purposes of testing and evaluation or replacement of defective tobacco products. (D)The Postal Service may by regulation establish mailing standards to carry out this paragraph. (3)(A)(i)In addition to any other penalties or fines provided for by law, any person who violates paragraph (2) for commercial or for profit purposes shall be liable to the United States for a civil penalty for a first violation in the amount of $5,000 or 10 times the estimated retail value of the tobacco products, including all Federal, State, and local taxes, whichever is highest, and for a second or subsequent violation in an amount not to exceed $100,000 for each violation. (ii)In determining the amount of the civil penalty for second and subsequent violations described under clause (i), the following factors may be considered: (I)The nature, circumstances, extent, and gravity of the violation. (II)With respect to the violator, the degree of culpability, ability to pay, and any history of prior violations. (III)Such other matters as justice may require. (B)The Postal Service may determine that a person has violated paragraph (2) only after notice and an opportunity for a hearing. Proceedings under this paragraph shall be conducted in accordance with subsection (m). (C)Notwithstanding any other provision of law, an amount equal to 50 percent of any civil penalties collected by the United States Government under subparagraph (A) shall be directed to the Postal Service for the purpose of administering and enforcing this subsection. All other amounts received in payment of any such civil penalties under subparagraph (A) in any action commenced by the United States Government shall be deposited as miscellaneous receipts in the Treasury of the United States. .