Net Tobacco Enforcement Bill Approved By House Judiciary Panel

by Glen Shapiro, LawAndTax-News.com, New York

02 February 2004

The National Congress of American Indians (NCAI) has voiced its opposition to the Internet Tobacco Sales Enforcement Act (H.R. 2824), which will give states the authority to enforce federal laws on online tobacco vendors, including Indian tribes.

Although the existing Jenkins Act obliges organisations which sell cigarettes to out-of-state customers to report the transactions to the relevant state authority, the law has been widely disregarded by internet tobacco retailers.

Under the terms of the proposed Enforcement Act, approved on a voice vote last Wednesday by the House Judiciary Committee, state authorities will be able to sue vendors who fail to report out-of-state transactions for both civil and criminal penalties in federal court.

Speaking to Internetnews.com, general counsel for the NCAI, John Dossett explained that:

"We are not opposing enforcement of the Jenkins Act. What's unusual about this bill is giving states the authority to enforce federal laws. This is a very tough issue for us."

Explaining that the group supports an alternative Senate bill which would increase penalties for breaches of the Jenkins Act, whilst keeping enforcement in federal hands, he continued:

"Indian reservations are a federal enclave. We understand our obligations under interstate sales laws, and we've fully supported federal enforcement in Indian Country. [But] this bill would do away with tribal immunity from state laws."

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