Sec. U-10. 36 MRSA §4366-A, sub-§1, as enacted by PL 1997, c. 458, §10, is repealed and the following enacted in its place:

1.__Generally.__A distributor may not:

A.__Sell, offer for sale or display for sale any cigarettes within this State that do not bear stamps evidencing the payment of the tax imposed by this chapter; or

B.__Violate paragraph A when the distributor has 2 prior convictions for violation of this chapter.

The face value of the stamps must be considered as part of the retail cost of the cigarettes.

Sec. U-11. 36 MRSA §4366-A, sub-§4, as enacted by PL 1997, c. 458, §10, is repealed and the following enacted in its place:

4.__Resale and reuse of stamps prohibited.__A distributor may not:

A.__Sell, transfer or use more than once cigarette stamps issued by the assessor pursuant to this chapter; or

B.__Violate paragraph A when the distributor has 2 prior convictions for violation of this chapter.

Sec. U-12. 36 MRSA §4366-A, sub-§4-A is enacted to read:

4-A.__Redemption of stamps.__The assessor shall redeem any unused, uncancelled stamps presented within one year of the date of purchase by a licensed distributor at a price equal to the amount paid for them.__The assessor may also redeem, at face value, cigarette tax stamps affixed to packages of cigarettes that have become unsalable if application is made within 90 days of the return of the unsalable cigarettes to the manufacturer.__ The Treasurer of State shall provide out of money collected pursuant to this chapter, the funds necessary for the redemption.

Sec. U-13. 36 MRSA §4366-A, sub-§6, as enacted by PL 1997, c. 458, §10, is repealed and the following enacted in its place:

6.__Penalties.__The following penalties apply to violations of this section.