SB 930 Summary

• Authorizes the Michigan Department of Treasury to procure and implement digital stamps with unique nonrepeating codes for tobacco products, with a requirement that the successful bidder share technology compatible with handheld devices like smartphones.

• Establishes that digital stamps are considered properly affixed when 90% or more of the stamp is attached to individual cigarette packages, compared to the previous 50% threshold for traditional stamps.

• Provides stamping agents with compensation of 0.5% of tobacco tax revenue following digital stamp implementation and reimbursement of up to 5.55% of equipment costs for 18 months to upgrade technology necessary for digital stamp application.

• Clarifies definitions including cigarette-making machines, counterfeit and gray market cigarettes, and unclassified acquirers to strengthen tobacco tax administration and enforcement.

• Appropriates $6,000,000 for fiscal year 2011-2012 to the Department of Treasury ($1.5 million), Attorney General ($500,000), and Department of State Police ($4 million) for tobacco tax enforcement and administration.