Oklahoma 2022 Regular Session

Oklahoma House Bill HB2292 Compare Versions

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Version 2 (New)

Old	New		Differences
1		-	An Act
2		-	ENROLLED HOUSE
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	28	+	ENGROSSED SENATE AMENDMENT
	29	+	TO
	30	+	ENGROSSED HOUSE
3	31		BILL NO. 2292 By: Roberts (Dustin), Lawson
4	32		and Caldwell (Chad) of the
5	33		House
6	34
7	35		and
8	36
9		-	Bullard~~, Pederson and~~
10		-	~~Montgomery of the Senate~~
	37	+	Bullard of the Senate
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14	42		An Act relating to tobacco products enforcement;
	43	+	creating the Tobacco Products Tax Enforcement Ac t of
	44	+	2021; **** amending 68 O.S. 2011, Sections 401, 402 -
	45	+	1, as amended by Section 4, Chapter 8, 2nd
	46	+	Extraordinary Session, O.S.L. 2018, 403, 403.1,
	47	+	403.2, 407, **** 413, as amended by Section 7,
	48	+	Chapter 357, O.S.L. 2012, 414, 415, 417, as amended
	49	+	by Section 6, Chapter 66, O.S.L. 2018 **** increasing
	50	+	penalty for certain acts related to contraband
	51	+	products****; providing for codification; providing
	52	+	for noncodification; providing an effective date; and
	53	+	declaring an emergency.
	54	+
	55	+
	56	+
	57	+	AUTHOR: Add the following Senate Coauthors: Pederson and
	58	+	Montgomery
	59	+
	60	+	AMENDMENT NO. 1. Page 1, strike the title, enacting clause and
	61	+	entire bill and insert
	62	+
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	64	+	"An Act relating to tobacco products enforcement;
15	65		creating the Tobacco Products Tax Enforcement Act of
16	66		2021; authorizing establis hment of Tobacco Products
17	67		Tax Enforcement Unit by Oklahoma Tax Commission and
18	68		enumerating duties; requiring submission of annual
19	69		report containing specified information; establishing
20	70		specified requirements and procedures for remittance
21	71		and reporting of tob acco products tax by a
22	72		wholesaler; providing for collection of tobacco
23	73		products tax by specified parties other than
24	74		wholesaler when tax is not remitted by wholesaler;
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25	101		establishing liability of certain vendors under
26	102		specified circumstances; clarifying statu s of certain
27	103		vendors with respect to assessment of fines;
28	104		establishing specified requirements and procedures
29	105		for remittance and reporting of tobacco products tax
30	106		by a retailer or consumer under specified
31	107		circumstances; requiring retailers to purchase
32	108		products from licensed wholesalers and providing
33	109		penalty for noncompliance; providing for deposit of
34	110		penalties and fines; requiring Tax Commission to make
35	111		list of licensed wholesalers available in certain
36	112		manner; creating the Tobacco Products Tax Enforcement
37	113		Unit Revolving Fund; providing for deposit and
38	114		expenditure of funds; providing for transfer of
39	115		monies under certain circumstances; directing Tax
40	116		Commission to make administrative changes for
41	117		specified purpose; providing enforcement of act based
42	118		on contingency of funds; amending 68 O.S. 2011,
43	119		Sections 401, 402-1, as amended by Section 4, Chapter
44	120		8, 2nd Extraordinary Session, O.S.L. 2018, 403,
45	121		403.1, 403.2, 407, 412, as amended by Section 1,
46		-	Chapter 334, O.S.L. 2013, 413, as amended by ~~S ection ENR. H. B. NO. 2292 Page 2~~
	122	+	Chapter 334, O.S.L. 2013, 413, as amended by Section
47	123		7, Chapter 357, O.S.L. 2012, 414, 415, 417, as
48	124		amended by Section 6, Chapter 66, O.S.L. 2018, 418,
49	125		as amended by Section 2, Chapter 334, O.S.L. 2013,
50	126		420.1, 421, 422 and 426 (68 O.S. Supp. 2020, Sections
51	127		402-1, 412, 413, 417 and 418), which relate to
52	128		tobacco products excis e tax compliance and
53	129		enforcement; modifying definitions; deleting
54	130		definitions; defining term; deleting requirement for
55	131		stamps as evidence of tax; modifying manner in which
56	132		tobacco products tax is levied with respect to use of
57	133		stamps and deleting associated procedures and
58	134		penalties; imposing requirements on wholesalers in
59	135		sales transactions involving tobacco products and
60	136		deleting requirements on certain other parties;
61	137		modifying specified terms and procedures related to
62	138		taxation of certain sales subject to tr ibal compacts;
63	139		deleting reference to tax stamps for certain products
64	140		imported into the state; increasing penalty for
65	141		certain practices to deter enforcement by inspection;
66	142		conforming language; increasing penalty for certain
67	143		noncompliant carriers and specify ing that certain
68	144		penalty is administrative; deleting requirement for
69	145		certain monthly reports; authorizing Tax Commission
70	146		or peace officer to confiscate certain vehicles used
71	147		to transport untaxed products; deleting certain
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72	174		application requirement and proced ures related to
73	175		distributing agents; increasing penalty for
74	176		wholesaler and retailer operating without a license;
75	177		authorizing Tax Commission, sheriff or police to
76	178		seize vehicle used in avoidance of tax; increasing
77	179		penalties for specified licensees for trans porting or
78	180		possessing untaxed product; modifying requirements
79	181		related to maintenance of invoices or other
80	182		documentation; clarifying reference; increasing
81	183		penalty for sale of product subject to certain
82	184		exemption; providing for applicability of certain
83	185		compliance requirement; increasing penalty for
84	186		certain acts related to contraband products;
85	187		repealing 68 O.S. 2011, Sections 406, 408, 409 and
86	188		411, which relate to tobacco products excise tax
87	189		procedures; providing for codification; providing for
88	190		noncodification; providing an effective date; and
89	191		declaring an emergency.
90	192
91		-	ENR. H. B. NO. 2292 Page 3
92		-
93		-	SUBJECT: Tobacco products enforcement
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94	195
95	196		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
96		-
97	197		SECTION 1. NEW LAW A new section of law to be codified
98	198		in the Oklahoma Statutes as Section 400 of Title 68, unless there is
99	199		created a duplication in numbering, reads as follows:
100		-
101		-	This act shall be known and may be cited as the " Tobacco
102		-	Products Tax Enforcement Act of 2021" .
103		-
	200	+	This act shall be known and may be cited as the “Tobacco
	201	+	Products Tax Enforcement Act of 2021”.
104	202		SECTION 2. NEW LAW A new section of law to be codified
105	203		in the Oklahoma Statutes as Section 400.1 of Title 68, unless there
106	204		is created a duplication in numbering, reads as follows:
107		-
108	205		A. For the purpose of enforcing the tobacco tax laws of this
109	206		state, the Oklahoma Tax Commission is authorized, contingent upon
110	207		the availability of f unds, to establish and maintain a unit to be
111		-	known as the "Tobacco Products Tax Enforcement Unit" . The unit
	208	+	known as the “Tobacco Products Tax Enforcement Unit”. The unit
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112	235		shall enforce the tobacco tax laws of this state and ensure that all
113	236		taxes are paid on tobacco products by:
114		-
115	237		1. Confirming that all entities sellin g tobacco products in
116	238		this state are properly licensed as provided in Section 400 et seq.
117	239		of Title 68 of the Oklahoma Statutes;
118		-
119	240		2. Verifying that all retailers are only purchasing tobacco
120	241		products from wholesalers licensed by the Tax Commission;
121		-
122	242		3. Providing a dedicated telephone line and email address for
123	243		licensed wholesalers, licensed retailers and the general public to
124	244		report suspected violations of tobacco tax laws; provided, no
125	245		entity, individual or those who report violations on behalf of a
126	246		licensed wholesaler or retailer shall be required to disclose their
127	247		identity;
128		-
129	248		4. Auditing licensed wholesalers and retailers to ensure all
130	249		tobacco product taxes are paid;
131		-
132	250		5. Issuing fines for violations as provided in Section 400 et
133	251		seq. of Title 68 of the Oklah oma Statutes;
134		-
135	252		6. Conducting wholesale and retail tobacco inspections to find
136		-	and confiscate untaxed tobacco products; ENR. H. B. NO. 2292 Page 4
137		-
	253	+	and confiscate untaxed tobacco products;
138	254		7. Establishing data -sharing programs with tax departments in
139	255		surrounding states related to tobacco product taxes;
140		-
141	256		8. Creating an indus try advisory committee including licensed
142	257		wholesalers and retailers who may represent the entity related to
143	258		tobacco products tax enforcement concerns and suggestions. The
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144	285		Oklahoma Tax Commission shall promulgate rules establishing the
145	286		membership and minim um requirements as may be deemed necessary to
146	287		carry out the purposes of the committee; and
147		-
148	288		9. Working with law enforcement and conducting investigations
149	289		to stop illegal acquisition and shipment of tobacco products by
150	290		persons not licensed to sell tobacco p roducts in this state.
151		-
152	291		B. The Tax Commission shall annually submit a report to the
153	292		Governor, President Pro Tempore of the Senate and Speaker of the
154	293		House of Representatives listing the number of wholesale and retail
155	294		tobacco inspections conducted, the amou nt of untaxed tobacco
156	295		products confiscated, the number of tobacco products tax audits
157	296		conducted, the amount of taxes assessed and the amount of taxes
158	297		collected as the result of audits and confiscations, the number of
159	298		suspected violations reported and the a ctions taken in response, and
160	299		the number of fines issued and the amount of fines collected.
161		-
162	300		SECTION 3. NEW LAW A new section of law to be codified
163	301		in the Oklahoma Statutes as Section 400.2 of Title 68, unless there
164	302		is created a duplication in numbering, reads as follows:
165		-
166	303		A. The excise tax imposed pursuant to the provisions of Section
167	304		400 et seq. of Title 68 of the Oklahoma Statutes upon the sale,
168	305		distribution, use, exchange, barter or possession of tobacco
169	306		products within the state shall be due and payable on the first day
170	307		of each month by the wholesaler. For the purpose of ascertaining
171	308		the amount of the tax payable by the wholesaler, the wholesaler
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172	335		shall file electronically with the Oklahoma Tax Commission, on or
173	336		before the twentieth day of each month and upon a form prescribed
174	337		and furnished by the Commission, a tobacco products tax report
175	338		signed by the wholesaler under oath. The report shall include:
176		-
177	339		1. All purchases and deliveries including invoices detailing
178	340		purchases and shipments from manufacturers to the wholesaler and
179	341		from the wholesaler to the licensed retailer for the previous
180	342		calendar month;
181		-	ENR. H. B. NO. 2292 Page 5
182	343		2. The taxes due under Section 400 et seq. of Title 68 of the
183	344		Oklahoma Statutes during the preceding calendar month; and
184		-
185	345		3. Any other information required by the Commission for the
186	346		purposes of correctly computing and collecting the tax levied
187	347		herein. In addition to the information required on reports, the Tax
188	348		Commission may request, and the taxpayer must furnish, any
189	349		information deemed necessary to enforce the provisions of Section
190	350		400 et seq. of Title 68 of the Oklahoma Statutes. Such tax remitter
191	351		shall compute and remit to the Tax Commission the required tax due
192	352		for the preceding calendar month, the remittance or remittances of
193	353		the tax to accompany the reports herein required. If not filed or
194	354		paid on or before the twentieth day of such month, the tax shall be
195	355		delinquent from such date. If a report is not timely filed,
196	356		interest shall be charged from the date the report should have been
197	357		filed until the date the report is actually filed.
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199	384		B. It shall not be necessary for any person or entity to
200	385		purchase stamps or affix stamps to tobacco products in order to
201	386		comply with the requirements of Section 400 et seq. of Title 68 of
202	387		the Oklahoma Statutes or the provisions of this act.
203		-
204	388		C. If the tobacco products tax report or payment of taxes is
205	389		due on any day specified in Section 82.1 of Title 25 of the Oklahoma
206	390		Statutes or on a date when the Federal Reserve Banks are closed,
207	391		such requirements may be performed on the next succeeding business
208	392		day and no liability shall result from the delay.
209		-
210	393		D. The monthly reports shall be filed electronically in the
211	394		format prescribed by the Tax Commission and the tax shall be
212	395		remitted to the Tax Commission by electronic funds transfer.
213		-
214	396		SECTION 4. NEW LAW A new section of law to be codified
215	397		in the Oklahoma Statutes as Section 400.3 of Title 68, unless there
216	398		is created a duplication in numbering, reads as follows:
217		-
218	399		A. In the event the tax imposed by Section 400 et seq. of Title
219	400		68 of the Oklahoma Statutes is not otherwise paid by the wholesaler
220	401		as provided in Section 3 of this act, the tax shall be collected as
221	402		a backup tax upon the first receipt of tobacco products by any
222	403		retailer or end user when received from a source outside of the
223	404		state or upon the first sale or use when the product is manufactured
224	405		in this state. Such tax is imposed upon, and shall be the liability
225	406		of, any such retailer or consumer who first received the tobacco
226		-	products in the state. ENR. H. B. NO. 2292 Page 6
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228	434		B. The ultimate vendor of tobacco products shall be jointly and
229	435		severally liable for the backup tax levied by subsection A of this
230	436		section if the ultimate vendor knows or has reason to know that the
231	437		tobacco products tax imposed by Section 400 et seq. of Title 68 of
232	438		the Oklahoma Statutes has not been paid.
233		-
234	439		C. The payment of the tax as provided in this section shall not
235	440		absolve any person from payment of fines assessed under this
236	441		article.
237		-
238	442		SECTION 5. NEW LAW A new sec tion of law to be codified
239	443		in the Oklahoma Statutes as Section 400.4 of Title 68, unless there
240	444		is created a duplication in numbering, reads as follows:
241		-
242	445		In the event the tax imposed by this act is not paid by the
243	446		wholesaler as provided in Section 3 of this act and must be
244	447		collected as a backup tax from the retailer or consumer in
245	448		accordance with Section 4 of this act, the tax is due and payable by
246	449		the retailer or consumer on the first day of each month for the
247	450		preceding calendar month, and if not paid on or before the twentieth
248	451		day of the following month, shall be delinquent. The retailer or
249	452		consumer shall file with the Oklahoma Tax Commission, on forms
250	453		furnished by the Tax Commission, a return verified by affidavit
251	454		showing in detail the total purchase price of the tobacco products,
252	455		the location of the purchase of the tobacco products and any other
253	456		information the Tax Commission may deem reasonably necessary. With
254	457		each return, the retailer or consumer shall remit to the Tax
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255	484		Commission the amount of tax shown on the return to be due. Reports
256	485		timely mailed shall be considered timely filed. If a report is not
257	486		timely filed, interest shall be charged from the date the report
258	487		should have been filed until the date the report is actually filed.
259		-
260	488		SECTION 6. NEW LAW A new section of law to be codified
261	489		in the Oklahoma Statutes as Section 400.5 of Title 68, unless there
262	490		is created a duplication in numbering, reads as follows:
263		-
264	491		A. Retailers shall only purchase tobacco products from an
265	492		Oklahoma-licensed tobacco wholesaler evidenced by a current listing
266	493		provided by the Oklahoma Tax Commission. All purchase invoices
267	494		shall contain the license number of the wholesaler and shall be made
268	495		available for inspection by the Tax Commission. Any purchases of
269	496		tobacco products from a person who is not holding a current Oklahoma
270	497		wholesale tobacco license shall be punishable by a fine of the
271		-	greater of One Thousand Dollars ($1,000.00) or five times the unpaid ~~ENR. H. B. NO. 2292 Page 7~~
	498	+	greater of One Thousand Dollars ($1,000.00) or five times the unpaid
272	499		tax on such products. The fine shall be in addition to p ayment of
273	500		any unpaid tobacco products tax. A second or subsequent offense
274	501		shall be punishable by revocation of the license. If the retailer
275	502		fails to pay a fine within thirty (30) days, the retailer’s license
276	503		shall be suspended until the fine is paid in f ull.
277		-
278	504		B. The Oklahoma Tax Commission shall make available for all
279	505		licensed retailers a list of currently licensed wholesalers at least
280	506		monthly or through the use of a website maintained by or on behalf
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281	533		of the Oklahoma Tax Commission with updates made as of ten as
282	534		practical but no less than every thirty (30) days.
283		-
284	535		C. Fines collected pursuant to the provisions of subsection A
285	536		of this section shall be deposited in the Tobacco Products Tax
286	537		Enforcement Unit Revolving Fund created in Section 7 of this act.
287		-
288	538		SECTION 7. NEW LAW A new section of law to be codified
289	539		in the Oklahoma Statutes as Section 400.6 of Title 68, unless there
290	540		is created a duplication in numbering, reads as follows:
291		-
292	541		A. There is hereby created in the State Treasury a revolv ing
293		-	fund for the Oklahoma Tax ~~Co mmission~~, to be designated the " Tobacco
294		-	Products Tax Enforcement Unit Revolving Fund" . The fund shall be a
	542	+	fund for the Oklahoma Tax Commission, to be designated the “Tobacco
	543	+	Products Tax Enforcement Unit Revolving Fund”. The fund shall be a
295	544		continuing fund, not subject to fiscal limitations, and shall
296	545		consist of any monies designated to the fund by law. All monies
297	546		accruing to the credit of said fund are hereby appropriated and may
298	547		be budgeted and expended by the Commission for the purposes of
299	548		enforcing the provisions of the Tobacco Products Tax Enforcement Act
300	549		of 2021. Expenditures from said fund shall b e made upon warrants
301	550		issued by the State Treasurer against claims filed as prescribed by
302	551		law with the Director of the Office of Management and Enterprise
303	552		Services for approval and payment.
304		-
305	553		B. At the end of each fiscal year, if the balance of the fund
306	554		exceeds Two Million Dollars ($2,000,000.00), any amount in excess of
307	555		Two Million Dollars ($2,000,000.00) shall be transferred to the
308	556		General Revenue Fund of the State Treasury.
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310	583		SECTION 8. NEW LAW A new section of law not to be
311	584		codified in the Oklahoma Statutes reads as follows:
312		-
313	585		The Oklahoma Tax Commission is hereby directed, contingent upon
314	586		the availability of funds, to provide sufficient staff to comply
315	587		with the Tobacco Products Tax Enforcement Act of 2021. The Tax
316		-	Commission may ~~employ~~ unclassified personnel to staff the Tobacco ~~ENR. H. B. NO. 2292 Page 8~~
	588	+	Commission may emplo y unclassified personnel to staff the Tobacco
317	589		Products Tax Enforcement Unit provided for in Section 2 of this act,
318	590		compensate the employees of the unit for working overtime, develop
319	591		alternative work schedules for members of the Enforcement Unit to
320	592		investigate reported tobacco products tax evasion and expend funds
321	593		for employees to participate in tobacco products tax enforcement
322	594		training provided by the Federation of Tax Administrators.
323		-
324	595		The Tax Commission is also directed to enhance agency efforts to
325	596		discover and reduce tobacco products tax evasion. Such efforts may
326	597		include increased inspections of tobacco products retailers
327	598		including inspections after normal business hours; enhanced tobacco
328	599		products tax auditing including the auditing of out -of-state
329	600		licensed wholesalers; the acquisition and use of technology systems
330	601		designed to identify underreporting of tobacco products taxes; and
331	602		analysis of data from the electronic reporting of invoices by
332	603		tobacco products wholesalers.
333		-
334	604		SECTION 9. AMENDATORY 68 O.S. 2011, Section 401, is
335	605		amended to read as follows:
336		-
337	606		Section 401. For the purpose of this article:
338	607
339		-	(a) 1. The word "person" shall mean any individual, company,
	608	+	ENGR. S. A. TO ENGR. H. B. NO. 2292 Page 12 1
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	632	+
	633	+	(a) 1. The word “person” shall mean any individual, company,
340	634		limited liability company, corporation, partnership, association,
341	635		joint adventure, estate, trust, or any other group, or combination
342	636		acting as a unit, and the plural as well as the singular, unless the
343	637		intention to give a more limited meaning is disclosed by the
344	638		context.
345		-
346		-	(b) 2. The term "Tax Commission" shall mean the Oklahoma Tax
	639	+	(b) 2. The term “Tax Commission” shall mean the Oklahoma Tax
347	640		Commission.
348		-
349		-	(c) 3. The word "wholesaler" shall include dealers whose
	641	+	(c) 3. The word “wholesaler” shall include dealers whose
350	642		principal business is that of a wholesale dealer or jobber, and who
351	643		is known to the trade as such, who shall sell any cigars or tobacco
352	644		products to licensed retail dealers only for the purpose of resale,
353	645		or giving them away, or exposing the same where they may be taken or
354	646		purchased, or otherwise acquired by the retailer .
355		-
356		-	(d) 4. The word "retailer" shall include every dealer, other
	647	+	(d) 4. The word “retailer” shall include every dealer, other
357	648		than a wholesale dealer wholesaler as defined above, who se principal
358	649		business is that of selling merchandise at retail, who shall sell,
359	650		or offer for sale, cigars or tobacco products , irrespective of
360		-	quantity, number of sales, giving the same away or exposing the same ~~ENR. H. B. NO. 2292 Page 9~~
	651	+	quantity, number of sales, giving the same away or exposing the same
361	652		where they may be taken, or purchased, or ot herwise acquired by the
362	653		consumer.
363		-
364	654		(e) 5. The word “consumer” shall mean a person who comes into
365	655		possession of tobacco for the purpose of consuming it , giving it
366	656		away, or disposing of it in any way by sale, barter or exchange .
367	657
368		-	(f) 6. The words "first sale" shall mean and include the first
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	683	+	(f) 6. The words “first sale ” shall mean and include the first
369	684		sale, or distribution, of cigars or tobacco products in intrastate
370	685		commerce, or the first use or consumption of cigars, or tobacco
371	686		products within this state.
372		-
373		-	(g) 7. The words "tobacco products" shall mean any cigars,
	687	+	(g) 7. The words “tobacco products” shall mean any cigars,
374	688		cheroots, stogies, smoking tobacco (including granulated, plug cut,
375	689		crimp cut, ready rubbed and any other kinds and forms of tobacco
376	690		suitable for smoking in a pipe or cigarette), chewing tobacco
377	691		(including cavendish, twist, plug, scrap and any other kinds an d
378	692		forms of tobacco suitable for chewing), however prepared; and shall
379	693		include any other articles or products made of tobacco or any
380	694		substitute therefor.
381		-
382	695		(h) The term “distributing agent” shall mean and include every
383	696		person in this state who acts as an age nt of any person outside the
384	697		state by receiving cigars and tobacco products in interstate
385	698		commerce and storing such items subject to distribution or delivery,
386	699		upon order from said person outside the state, to distributors,
387	700		wholesale dealers and retail deal ers, or to consumers. The term
388	701		“distributing agent” shall also mean and include any person who
389	702		solicits or takes orders for cigars and tobacco products to be
390	703		shipped in interstate commerce to a person in this state by a person
391	704		residing outside of Oklahoma , the tax not having been paid on such
392	705		cigars and tobacco products.
393	706
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	731	+
394	732		(i) The term “stamp” shall mean the stamp or stamps by use of
395	733		which:
396		-
397	734		1. The tax levied pursuant to the provisions of Section 401 et
398	735		seq. of this title is paid;
399		-
400	736		2. The tax levied pursuan t to the provisions of Section 426 of
401	737		this title is paid; or
402		-
403	738		3. The payment in lieu of taxes authorized pursuant to a
404		-	compact entered into by the State of Oklahoma and a federally ~~ENR. H. B. NO. 2292 Page 10~~
	739	+	compact entered into by the State of Oklahoma and a federally
405	740		recognized Indian tribe or nation pursuant to the provisions of
406	741		subsection C of Section 346 of this title is paid.
407		-
408	742		(j) The term “drop shipment” shall mean and include any
409	743		delivery of cigars or tobacco products received by any person within
410	744		the state when payment for such cigars or tobacco products is made
411	745		to the shipper or selle r by or through a person other than the
412	746		consignee.
413		-
414		-	(k) 8. The term "cigars" shall include any roll of tobacco for
	747	+	(k) 8. The term “cigars” shall include any roll of tobacco for
415	748		smoking, irrespective of size or shape and irrespective of the
416	749		tobacco being flavored, adulterated or mixed with any other
417	750		ingredients, where such roll has a wrapper made chiefly of tobacco.
418		-
419	751		(l) The word “dealer” shall include every person, firm,
420	752		corporation, or association of persons, who manufactures cigars or
421	753		tobacco products for distribution, sale, use or consumption in the
422	754		State of Oklahoma. The word “dealer” is also further defined to
423	755		mean any person, firm, corporation or association of persons, who
	756	+
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	781	+
424	782		imports cigars or tobacco products from any state or foreign
425	783		country, for distribution, sale, use or consumption in the State of
426	784		Oklahoma.
427		-
428		-	9. The term "untaxed" means that the full amount of tax has not
	785	+	9. The term “untaxed” means that the full amount of tax has not
429	786		been paid as required by Section 400 et seq. of this title.
430		-
431	787		SECTION 10. AMENDATORY 68 O.S. 2011, Section 402 -1, as
432	788		amended by Section 4, Chapter 8, 2nd Extraordinary S ession, O.S.L.
433	789		2018 (68 O.S. Supp. 2020, Section 402 -1), is amended to read as
434	790		follows:
435		-
436	791		Section 402-1. In addition to the tax levied by Section 402 of
437	792		this title, there is hereby levied upon the sale, use, exchange or
438	793		possession of articles containing tob acco as defined in said Section
439	794		402, a tax in the following amounts:
440		-
441	795		(a) 1. Upon cigars of all descriptions made of tobacco, or any
442	796		substitute therefor, and weighing more than three (3) pounds per
443		-	thousand, and having a manufacturer' s recommended retail ~~selling~~
	797	+	thousand, and having a manufacturer’s recommended retail s elling
444	798		price, under the Federal Code, of more than four cents ($0.04) for
445	799		each cigar, Ten Dollars ($10.00) per thousand. For the purpose of
446	800		computing the tax, cheroots, stogies, etc., are hereby classed as
447	801		cigars;
448		-	ENR. H. B. NO. 2292 Page 11
449	802		(b) 2. Upon all smoking tobacco includin g granulated, plug cut,
450	803		crimp cut, ready rubbed and other kinds and forms of tobacco
451	804		prepared in such manner as to be suitable for smoking in a pipe or
452	805		cigarette, the tax shall be fifteen percent (15%) of the factory
	806	+
	807	+	ENGR. S. A. TO ENGR. H. B. NO. 2292 Page 16 1
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	831	+
453	832		list price exclusive of any trade disco unt, special discount or
454	833		deals; and
455		-
456	834		(c) 3. Upon chewing tobacco, smokeless tobacco , and snuff, the
457	835		tax shall be ten percent (10%) of the factory list price exclusive
458	836		of any trade discount, special discount or deals.
459		-
460	837		This tax shall be paid by the consumer and no retailer may
461	838		advertise that he will pay or absorb this tax.
462		-
463	839		The tax herein levied on tobacco products shall be evidenced by
464	840		stamps and collected on the same basis and in the same manner and in
465	841		all respects as the tax levied by the Tobacco Products T ax Law. The
466	842		revenue from this additional tax shall be apportioned by the
467	843		Oklahoma Tax Commission in the same manner as provided in Section
468	844		404 of this title, for the apportionment of other tobacco products
469	845		tax revenue.
470		-
471	846		SECTION 11. AMENDATORY 68 O.S. 2011, Section 403, is
472	847		amended to read as follows:
473		-
474	848		Section 403. (a) A. The excise taxes levied by this article
475	849		shall be paid by affixing stamps in the manner and at the time
476		-	herein set forth. In the case of cigars, including five (5) pack
	850	+	herein set forth. In the case of cigars, including five (5) -pack
477	851		and other small packs, stogies and cheroots, the stamps shall be
478	852		affixed to the box, or container, in which or from which normally
479	853		sold at wholesale. Wholesalers and jobbers shall affix the required
480	854		stamps within seventy -two (72) hours after such tob acco products are
481	855		received by them. Any retailer shall have twenty -four (24) hours
	856	+
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482	882		within which to affix the stamps after such tobacco products are
483	883		received by him, or them the wholesaler liable for payment of the
484	884		tax. Provided, that the Tax Commission m ay, in its discretion,
485	885		where it is practical and reasonable for the enforcement of the
486	886		collection of taxes provided hereunder, promulgate such rules and
487	887		regulations as to permit cigars, stogies, cheroots , and tobacco
488	888		products, to remain unstamped untaxed in the hands of the
489	889		wholesalers and jobbers until the original case or crate is broken,
490	890		unpacked or sold.
491		-
492	891		(b) In the case of tobacco products wrapped in packages of two
493		-	(2) pounds or less, the stamps shall be affixed to the containers in ~~ENR. H. B. NO. 2292 Page 12~~
	892	+	(2) pounds or less, the stamps shall be affixed to the containers in
494	893		which or from which the individual packages are normally sold at
495	894		wholesale and the stamps shall be affixed by wholesalers and jobbers
496	895		within seventy-two (72) hours after such products are received by
497	896		them, and by any retailer within the twenty -four (24) hours of
498	897		receipt by him or them of any such products. Such goods must be
499	898		stamped before being sold. All retail dealers in manufactured
500	899		tobacco products, purchasing or receiving such commodities from
501	900		without the state, whether the same shall have been ordered through
502	901		a wholesaler or jobber in this state and/or by drop shipment and/or
503	902		otherwise, shall within five (5) days after receipt of same, mail a
504	903		duplicate invoice of all such purchases or receipts to the Tax
505	904		Commission. Failure to furnish duplicate invoices as required s hall
506	905		be deemed a misdemeanor, and, upon conviction, be punishable by a
	906	+
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507	932		fine of not more than One Hundred Dollars ($100.00) for each
508	933		offense, or imprisonment in the county jail for a period not
509	934		exceeding thirty (30) days.
510		-
511	935		(c) B. It is the intent and purpos e of this section to require
512	936		all manufacturers within this State, wholesale dealers, jobbers,
513	937		distributors and retail dealers, wholesalers to affix the stamps pay
514	938		applicable tax provided for in this section to article upon the
515	939		sale, use, exchange or posses sion of taxable commodities, but when
516	940		the stamps have been affixed as required herein, no further or other
517	941		stamp shall be required regardless of how often such articles may be
518	942		sold or resold within this State.
519		-
520	943		SECTION 12. AMENDATORY 68 O.S. 2011, Section 403.1, is
521	944		amended to read as follows:
522		-
523		-	Section 403.1 A. The Oklahoma Tax Commission is hereby
	945	+	Section 403.1. A. The Oklahoma Tax Commission is hereby
524	946		authorized and empowered, if in its discretion it deems practical
525	947		and reasonable, to establish procedures for payment of excise taxes
526	948		levied in Section 401 400 et seq. of this title, for the collection
527	949		from a wholesaler of payments in lieu of excise taxes authorized
528	950		pursuant to a compact entered into by the State of Oklahoma and a
529	951		federally recognized Indian tribe or nation pursuant to the
530	952		provisions of subsection C of Section 346 of this title, in respect
531	953		to articles containing tobacco, pursuant to monthly tobacco products
532	954		tax reports in lieu of payment by purchasing and affixing stamps,
533	955		notwithstanding the provisions of Section 403 et seq . of this title.
	956	+
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534	982		Provided, exercise by the Tax Commission of the authority granted
535	983		herein shall be by adoption of rules and regulations necessary to
536	984		establish procedures for collection of such tax through monthly
537		-	reporting procedures consistent with the ~~provisions~~ of Section 401 ~~ENR. H. B. NO. 2292 Page 13~~
	985	+	reporting procedures consistent with the p rovisions of Section 401
538	986		400 et seq. of this title , other than those provisions relating
539	987		directly to payment of such tax by purchasing and affixing stamps .
540		-
541	988		B. In the event the Tax Commission shall determine to collect
542	989		such tax through monthly reporting pr ocedures and adopt rules and
543	990		regulations therefor:
544		-
545	991		1. All provisions of Section 401 400 et seq. of this title
546	992		relating to unstamped untaxed tobacco products shall be interpreted
547	993		to include and shall be applicable to all tobacco products for which
548	994		the tax required by law has not been paid;
549		-
550	995		2. No person, dealer, distributing agent retailer or
551	996		wholesaler, as defined in Section 401 400 of this title, shall
552	997		possess, sell, use, exchange, barter, give away or in any manner
553	998		deal with any tobacco products within t his state upon which such tax
554	999		is levied and unpaid , unless such person, dealer, retailer,
555	1000		distributing agent or wholesaler holds a valid tobacco license
556	1001		issued pursuant to Section 415 of this title ; and
557		-
558	1002		3. Any person wholesaler required to report and remi t such
559	1003		taxes or payments in lieu of taxes required pursuant to a compact
560	1004		authorized by subsection C of Section 346 of this title to the Tax
561	1005		Commission shall be allowed a discount of two percent (2%) of the
	1006	+
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562	1032		tax due for maintaining and collecting such tax or payments for the
563	1033		benefit of the state, if such tax or payment is timely reported and
564	1034		remitted.
565		-
566	1035		SECTION 13. AMENDATORY 68 O.S. 2011, Section 403.2, is
567	1036		amended to read as follows:
568		-
569		-	Section 403.2 A. It shall be unlawful to affix a stamp to any
	1037	+	Section 403.2. A. It shall be unlawful to affix a stamp to any
570	1038		package or container of tobacco products or for any person to sell,
571	1039		offer for sale, or import into this state any package or container
572	1040		of tobacco products:
573		-
574	1041		1. Which bears any label or notice prescribed by the United
575	1042		States Department of Treas ury to identify tobacco products intended
576	1043		for export and exempt from tax by the United States pursuant to
577	1044		Section 5704(b) of Title 26 of the United States Code or any notice
578	1045		or label described in Section 290.185 of Title 27 of the United
579	1046		States Code of Federal Regulations;
580		-
581	1047		2. Which is not labeled in conformity with the provisions of
582		-	the Federal Cigarette Labeling and ~~Ad vertising~~ Act, or any other ~~ENR. H. B. NO. 2292 Page 14~~
	1048	+	the Federal Cigarette Labeling and Advertising Act, or any other
583	1049		federal requirement for the placement of labels, warnings or other
584	1050		information applicable to packages or contai ners of tobacco products
585	1051		intended for domestic consumption;
586		-
587	1052		3. Upon which all federal taxes due have not been paid or which
588	1053		is not in compliance with all federal trademark and copyright laws;
589	1054		or
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590	1080
591	1081		4. The packaging of which has been modified or altered by a
592	1082		person other than the manufacturer or person specifically authorized
593	1083		by the manufacturer, including, but not limited to, the placement of
594	1084		a sticker or label to cover information on the package or container.
595		-
596	1085		Possession of more than thirty (30) ounces of to bacco products
597	1086		in packages or containers bearing Oklahoma stamps in violation of
598	1087		this subsection by a person other than an employee of this state or
599	1088		the federal government performing official duties relating to
600	1089		enforcement of the provisions of Section 401 400 et seq. of this
601	1090		title shall constitute prima facie evidence of a violation of the
602	1091		provisions of this subsection.
603		-
604	1092		B. Except as otherwise provided by law, the Attorney General
605	1093		shall enforce the provisions of this section.
606		-
607	1094		SECTION 14. AMENDATORY 68 O.S. 2011, Section 407, is
608	1095		amended to read as follows:
609		-
610	1096		Section 407. It shall be provided by regulations of the Tax
611	1097		Commission the methods of breaking packages, forms and kinds of
612	1098		containers, and methods of affixing stamps, that shall be employed
613	1099		by persons subject to the tax levied by this Article article which
614	1100		will make possible the enforcement of payment by inspection; and any
615	1101		such person engaging in or permitting such practices as are
616	1102		prohibited by this Article article, or in any other practice which
617	1103		makes it difficult to enforce the provisions of this Article article
618	1104		by inspection, and any person or agent thereof who shall upon demand
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619	1131		of any officer or agent of the Tax Commission refuse to allow full
620	1132		inspection of the premises or any part thereof, or who shall hinder
621	1133		or in anywise delay or prevent such inspection when demand is made
622	1134		therefor, shall be guilty of a misdemeanor and shall, upon
623	1135		conviction, be fined not more than Two Hundred Dollars ($200.00) Two
624	1136		Thousand Dollars ($2,000.0 0) for each offense, or imprisonment in
625	1137		the county jail for a period not exceeding sixty (60) days or both.
626		-	ENR. H. B. NO. 2292 Page 15
627	1138		SECTION 15. AMENDATORY 68 O.S. 2011, Section 412, as
628	1139		amended by Section 1, Chapter 334, O.S.L. 2013 (68 O.S. Supp. 2020,
629	1140		Section 412), is amended to read as follows:
630		-
631	1141		Section 412. (a) A. Every wholesaler, jobber, retailer or
632	1142		consumer who purchases or allows to come into his or her possession
633	1143		any unstamped untaxed merchandise coming under the scope of this
634	1144		article shall file w ith the Oklahoma Tax Commission a surety or
635	1145		collateral or cash bond in the amount of Twenty -five Thousand
636	1146		Dollars ($25,000.00), payable to the State of Oklahoma and
637	1147		conditioned upon compliance with the provisions of this article and
638	1148		the rules of the Tax Co mmission.
639		-
640	1149		(b) B. Any consumer who purchases or brings into this state
641	1150		unstamped untaxed cigars or tobacco products whereon the tax would
642	1151		be more than twenty-five cents ($0.25) is subject to the tax
643	1152		thereon. Upon failure to pay the tax levied in this arti cle, the
644	1153		consumer shall be subject to a fine of not more than Five Hundred
645	1154		Dollars ($500.00) or not less than Twenty -five Dollars ($25.00) to
	1155	+
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646	1181		be deposited in the Tobacco Products Tax Enforcement Unit Revolving
647	1182		Fund created in Section 7 of this act . Provided, any person in
648	1183		possession of more than one thousand small or large cigars or two
649	1184		hundred sixteen (216) ounces of chewing or smoking tobacco products
650	1185		in packages or containers for which the tax required by law has not
651	1186		been paid shall be punished by admin istrative fines in the manner
652	1187		and amounts provided in subsection D of Section 418 of this title.
653		-
654	1188		SECTION 16. AMENDATORY 68 O.S. 2011, Section 413, as
655	1189		amended by Section 7, Chapter 357, O.S.L. 2012 (68 O.S. Supp. 2020,
656	1190		Section 413), is amended to read as follows:
657		-
658	1191		Section 413. A. The right of a carrier in this state to carry
659	1192		unstamped untaxed cigars and tobacco products shall not be affected
660	1193		hereby; provided, that carriers delivering untaxed tobacco products
661	1194		to any person in this st ate other than an Oklahoma -licensed
662	1195		wholesaler for the purpose of selling or consuming untaxed tobacco
663	1196		products in this state in violation of this article shall be subject
664	1197		to seizure of the shipments and forfeiture of the inventory pursuant
665	1198		to the provisions of Section 417 of this title. Provided further,
666	1199		that should any such carrier sell any cigars and tobacco products in
667	1200		this state, such sale shall be subject to the stamp tax and other
668	1201		provisions of this article and to the rules of the Tax Commission.
669	1202		The carrier transporting tobacco products and cigars to a point
670	1203		within this state, or a bonded warehouseman or bailee having in its
671		-	possession tobacco products and cigars, shall transmit to the Tax ENR. H. B. NO. 2292 Page 16
	1204	+	possession tobacco products and cigars, shall transmit to the Tax
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672	1231		Commission a statement of such consignment of tobacco produ cts and
673	1232		cigars, showing the date, point of origin, point of delivery , and to
674	1233		whom delivered. All carriers or bailees or warehousemen shall
675	1234		permit an examination by the Tax Commission, or its agents or
676	1235		legally authorized representatives, of their records r elating to the
677	1236		shipment or receipt of tobacco products and cigars. Any person who
678	1237		fails or refuses to transmit to the Tax Commission the aforesaid
679	1238		statement, or who refuses to permit the examination of his or her
680	1239		records by the Tax Commission or its legal ly authorized agents or
681	1240		representatives, shall be guilty of a misdemeanor and shall be
682	1241		subject to a an administrative fine of not to exceed Five Hundred
683	1242		Dollars ($500.00) Two Thousand Dollars ($2,000.00) and not less than
684	1243		Twenty-five Dollars ($25.00) One Thousand Dollars ($1,000.00) to be
685	1244		deposited in the Tobacco Products Tax Enforcement Unit Revolving
686	1245		Fund created in Section 7 of this act .
687		-
688	1246		B. Wholesalers shall make a monthly report to the Tax
689	1247		Commission. Such report must be received in the office of the Tax
690	1248		Commission not later than the twentieth day of each month, showing
691	1249		purchases and invoices of all merchandise coming under this article,
692	1250		for the previous month; and the report shall also show the invoice
693	1251		number, the name and address of the consignee and consignor, the
694	1252		date, and such other information as may be requested by the Tax
695	1253		Commission. Retailers or consumers purchasing tobacco products and
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696	1280		cigars in drop shipments shall be required to make monthly reports
697	1281		to the Tax Commission, as are required of wholesalers.
698		-
699	1282		SECTION 17. AMENDATORY 68 O.S. 2011, Section 414, is
700	1283		amended to read as follows:
701		-
702	1284		Section 414. (a) A. Each truck or vehicle wherefrom cigars or
703	1285		tobacco products are sold shall be considered as a place of business
704	1286		and required to have a wholesale license and a bond of not less than
705	1287		Five Hundred Dollars ($500.00).
706		-
707	1288		(b) B. Any person operating a truck or vehicle by selling,
708	1289		exchanging, or giving away unstamped untaxed merchandise covered by
709	1290		this article shall be deemed g uilty of violation of same and shall
710	1291		be penalized as hereinbefore set forth, and unstamped untaxed
711	1292		merchandise handled by him this person as well as the vehicle used
712	1293		to transport the untaxed tobacco products shall be subject to
713	1294		confiscation by authorized a gents of the Tax Commission or duly
714	1295		authorized peace officers.
715		-	ENR. H. B. NO. 2292 Page 17
716	1296		(c) C. After seizure or confiscation by such agent or officer,
717	1297		the merchandise and property shall be held until all taxes, interest
718	1298		and penalties due have been paid. If not paid within five ( 5) days
719	1299		after date of seizure, it shall be sold at public sale by the
720	1300		sheriff of the county where confiscated, after being advertised by
721	1301		posting of notice of such sale in five (5) public places in the
722	1302		county where the sale is to occur. The proceeds of the sale shall
723	1303		be applied to taxes, interest and penalties due and to the cost of
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724	1330		the sale, and the remainder, if any, shall be paid to the State
725	1331		Treasurer, by the sheriff conducting such sale, to be deposited to
726	1332		the credit of the General Revenue Fund.
727		-
728	1333		SECTION 18. AMENDATORY 68 O.S. 2011, Section 415, is
729	1334		amended to read as follows:
730		-
731	1335		Section 415. A. Every dealer and wholesaler of tobacco
732	1336		products in this state, as a condition of carrying on such business,
733	1337		shall annually secure from the Oklahoma Tax Commission a written
734	1338		license and shall pay an annual fee of Two Hundred Fifty Dollars
735	1339		($250.00); provided, such fee shall not be applicable if paid
736	1340		pursuant to Section 304 of this title. The Tax Commission shall
737	1341		promulgate rules which provid e a procedure for the issuance of a
738	1342		joint license for any wholesaler making application pursuant to this
739	1343		section and Section 304 of this title. Application for such
740	1344		license, which shall be made upon such forms as prescribed by the
741	1345		Tax Commission, shall in clude the following:
742		-
743	1346		1. The applicant’s agreement to the jurisdiction of the Tax
744	1347		Commission and the courts of this state for purposes of enforcement
745	1348		of the provisions of Section 301 et seq. of this title; and
746		-
747	1349		2. The applicant’s agreement to abide by the provisions of
748	1350		Section 301 et seq. of this title and the rules promulgated by the
749	1351		Tax Commission with reference thereto. This license, which will be
750	1352		for the ensuing year, must at all times be displayed in a
751	1353		conspicuous place so that it can be seen. Person s operating more
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752	1380		than one place of business must secure a license for each place of
753		-	business. "Place of business" shall be construed to include the
	1381	+	business. “Place of business” shall be construed to include the
754	1382		place where orders are received, or where tobacco products are sold.
755	1383		If tobacco products are sold on or fr om any vehicle, the vehicle
756	1384		shall constitute a place of business, and the license fee of Two
757	1385		Hundred Fifty Dollars ($250.00) shall be paid with respect thereto.
758	1386		However, if the vehicle is owned or operated by a place of business
759	1387		for which the regular lice nse fee is paid, the annual fee for the
760		-	license with respect to such vehicle shall be only Ten ~~Do llars ENR. H. B. NO. 2292 Page 18~~
	1388	+	license with respect to such vehicle shall be only Ten Dollars
761	1389		($10.00). The expiration for such vehicle license shall expire on
762	1390		the same date as the current license of the place of business.
763		-
764	1391		B. Every retailer in t his state, as a condition of carrying on
765	1392		such business, shall secure from the Tax Commission a license and
766	1393		shall pay therefor a fee of Thirty Dollars ($30.00). Application
767	1394		for such license, which shall be made upon such forms as prescribed
768	1395		by the Tax Commission, shall include the following:
769		-
770	1396		1. The applicant’s agreement to the jurisdiction of the Tax
771	1397		Commission and the courts of this state for purposes of enforcement
772	1398		of the provisions of Section 301 et seq. of this title; and
773		-
774	1399		2. The applicant’s agreement to abide by the provisions of
775	1400		Section 301 et seq. of this title and the rules promulgated by the
776	1401		Tax Commission with reference thereto;
777	1402
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778	1428		3. The applicant’s agreement that it shall not purchase any
779	1429		tobacco products for resale from a supplier that does not h old a
780	1430		current wholesaler’s license issued pursuant to this section; and
781		-
782	1431		4. The applicant’s agreement to sell tobacco products only to
783	1432		consumers.
784		-
785	1433		Such license, which will be for the ensuing three (3) years,
786	1434		must at all times be displayed in a conspicuous p lace so that it can
787	1435		be seen. Upon expiration of such license, the retailer to whom such
788	1436		license was issued may obtain a renewal license which shall be valid
789	1437		for three (3) years or until expiration of the retailer’s sales tax
790	1438		permit, whichever is earlier, after which a renewal license shall be
791	1439		valid for three (3) years. The manner and prorated fee for renewals
792	1440		shall be prescribed by the Tax Commission. Every person operating
793	1441		under such license as a retailer and who owns or operates more than
794	1442		one place of business must secure a license for each place of
795		-	business. "Place of business" shall be construed to include places
	1443	+	business. “Place of business” shall be construed to include places
796	1444		where orders are received or where tobacco products are sold.
797		-
798	1445		C. Nothing in this section shall be construed to prohibit any
799	1446		person holding a retail license from also holding a wholesaler
800	1447		license.
801		-
802	1448		D. Every distributing agent shall, as a condition of carrying
803	1449		on such business, pursuant to written application on a form
804	1450		prescribed by and in such detailed form as the Tax Commission may
805		-	require, annually secure from the Tax Commission a license, and ENR. H. B. NO. 2292 Page 19
	1451	+	require, annually secure from the Tax Commission a license, and
	1452	+
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806	1478		shall pay therefor an annual fee of One Hundred Dollars ($100.00).
807	1479		An application shall be filed and a license obtained for each place
808	1480		of business owned or operated by a distributing agent. The licen se,
809	1481		which will be for the ensuing year, shall be consecutively numbered,
810	1482		nonassignable and nontransferable, and shall authorize the storing
811	1483		and distribution of unstamped tobacco products within this state
812	1484		when such distribution is made upon interstate orde rs only.
813		-
814	1485		E. 1. All wholesale, or retail, and distributing agents’
815	1486		licenses shall be nonassignable and nontransferable from one person
816	1487		to another person. Such licenses may be transferred from one
817	1488		location to another location after an application has been filed
818	1489		with the Tax Commission requesting such transfer and after the
819	1490		approval of the Tax Commission.
820		-
821	1491		2. Wholesale, and retail, and distributing agent’s licenses
822	1492		shall be applied for on a form prescribed by the Tax Commission.
823	1493		Any person operating as a w holesaler, or retailer, or distributing
824	1494		agent must at all times have an effective unexpired license which
825	1495		has been issued by the Tax Commission. If any such person or
826	1496		licensee continues to operate as such on a license issued by the Tax
827	1497		Commission which has expired, or operates without ever having
828	1498		obtained from the Tax Commission such license, such person or
829	1499		licensee shall, after becoming delinquent for a period in excess of
830	1500		fifteen (15) days, pay to the Tax Commission, in addition to the
831	1501		annual license fee, a penalty of twenty-five cents ($0.25) Ten
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832	1528		Dollars ($10.00) per day on each delinquent license for each day so
833	1529		operated in excess of fifteen (15) days. The penalty provided for
834	1530		herein shall not exceed the annual license fee for such license.
835	1531		The penalties collected pursuant to the provisions of this paragraph
836	1532		shall be deposited in the Tobacco Products Tax Enforcement Unit
837	1533		Revolving Fund created in Section 7 of this act.
838		-
839	1534		F. E. No license may be granted, maintained or renewed if any
840	1535		of the following cond itions apply to the applicant. For purposes of
841		-	this section, "applicant" includes any combination of persons owning
	1536	+	this section, “applicant” includes any combination of persons owning
842	1537		directly or indirectly, in the aggregate, more than ten percent
843	1538		(10%) of the ownership interests in the applicant:
844		-
845	1539		1. The applicant owes F ive Hundred Dollars ($500.00) or more in
846	1540		delinquent tobacco products taxes;
847		-
848	1541		2. The applicant had a dealer, wholesaler, or retailer license
849	1542		revoked by the Tax Commission within the past two (2) years; or
850		-	ENR. H. B. NO. 2292 Page 20
851	1543		3. The applicant has been convicted of a crime rela ting to
852	1544		stolen or counterfeit tobacco products, or receiving stolen or
853	1545		counterfeit tobacco products.
854		-
855	1546		G. F. No person or entity licensed pursuant to the provisions
856	1547		of this section shall purchase tobacco products from or sell tobacco
857	1548		products to a person or entity required to obtain a license unless
858	1549		such person or entity has obtained such license.
859		-
860	1550		H. G. In addition to any civil or criminal penalty provided by
861	1551		law, upon a finding that a licensee has violated any provision of
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862	1578		Section 301 et seq. of this title , the Tax Commission may revoke or
863	1579		suspend the license or licenses of the licensee pursuant to the
864	1580		procedures applicable to revocation of a license set forth in
865	1581		Section 418 of this title.
866		-
867	1582		SECTION 19. AMENDATORY 68 O.S. 2011, Sectio n 417, as
868	1583		amended by Section 6, Chapter 66, O.S.L. 2018 (68 O.S. Supp. 2020,
869	1584		Section 417), is amended to read as follows:
870		-
871	1585		Section 417. A. All unstamped tobacco products upon which a
872	1586		tax is levied by Section 401 400 et seq. of this title and all
873	1587		tobacco products stamped, sold, offered for sale , or imported into
874	1588		this state in violation of the provisions of Section 403.2 of this
875	1589		title, found in the possession, custody or control of any person for
876	1590		the purpose of being consumed, sold or transported from one pl ace to
877	1591		another in this state, for the purpose of evading or violating the
878	1592		provisions of Section 401 400 et seq. of this title, or with intent
879	1593		to avoid payment of the tax imposed thereunder, and any vehicle
880	1594		being used in avoidance of such tax may be seized by any authorized
881	1595		agent of the Oklahoma Tax Commission or any sheriff, deputy sheriff
882	1596		or police within the state. Tobacco products from the time of
883	1597		seizure shall be forfeited to the State of Oklahoma. A proper
884	1598		proceeding shall be filed to maintain such s eizure and prosecute the
885	1599		forfeiture as herein provided; the provisions of this section shall
886	1600		not apply, however, where the tax on such unstamped tobacco products
887	1601		does not exceed One Dollar ($1.00).
888	1602
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889	1628		B. All such tobacco products so seized shall first be lis ted
890	1629		and appraised by the officer making such seizure and turned over to
891	1630		the Tax Commission and a receipt taken therefor.
892		-
893	1631		C. The person making such seizure shall immediately make and
894	1632		file a written report thereof to the Tax Commission, showing the
895		-	name of the person making such seizure, the place where seized, the ~~ENR. H. B. NO. 2292 Page 21~~
	1633	+	name of the person making such seizure, the place where seized, the
896	1634		person from whom seized, the property seized and an inventory and
897	1635		appraisement thereof, which inventory shall be based on the usual
898	1636		and ordinary retail price or value of the articles seized, and t he
899	1637		Attorney General, in the case of tobacco products stamped, sold,
900	1638		offered for sale, or imported into this state in violation of the
901	1639		provisions of Section 403.2 of this title. Within sixty (60) days
902	1640		of seizure, the person from whom the property was seize d may file a
903	1641		request for hearing with the Tax Commission or the Attorney General
904	1642		to show why the seized property should not be forfeited and
905	1643		destroyed. If a hearing is requested, the owner of the tobacco
906	1644		products shall be given at least ten (10) days’ not ice of the
907	1645		hearing. If no request for hearing is filed within the time
908	1646		provided, the property seized will be forfeited and destroyed.
909		-
910	1647		D. The seizure of such tobacco products shall not relieve the
911	1648		person from whom such tobacco products were seized from pr osecution
912	1649		or the payment of penalties.
913		-
914	1650		E. The forfeiture provisions of Section 401 400 et seq. of this
915	1651		title shall only apply to persons having possession of or
	1652	+
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916	1678		transporting tobacco products with intent to barter, sell or give
917	1679		away the same.
918		-
919	1680		SECTION 20. AMENDATORY 68 O.S. 2011, Section 418, as
920	1681		amended by Section 2, Chapter 334, O.S.L. 2013 (68 O.S. Supp. 2020,
921	1682		Section 418), is amended to read as follows:
922		-
923	1683		Section 418. A. It shall be unlawful for any person to
924	1684		transport or possess unstamped tobacco products where the tax on
925	1685		such unstamped tobacco products has not been paid and exceeds the
926	1686		sum of One Dollar ($1.00) One Hundred Dollars ($100.00) .
927		-
928	1687		B. Except as otherwise provided in subsections C and D of this
929	1688		section, any person found guilty of violating the provisions of
930	1689		Section 401 400 et seq. of this title shall be punished by an
931	1690		administrative fine of not more than Five Hundred Dollars ($500.00)
932	1691		One Thousand Dollars ($1,000.00) for a first offense or not more
933	1692		than Four Thousand Dol lars ($4,000.00) for a second or subsequent
934	1693		offense. Provided, any person in possession of more than one
935	1694		thousand small or large cigars or two hundred sixteen (216) ounces
936	1695		of chewing or smoking tobacco products in packages or containers for
937	1696		which the tax required by law has not been paid shall be punished by
938	1697		administrative fines in the manner and amounts provided in
939	1698		subsection D of this section.
940		-	ENR. H. B. NO. 2292 Page 22
941	1699		C. Any retailer violating the provisions of Section 403.2 of
942	1700		this title shall:
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943	1726
944	1727		1. For a first offense, be puni shed by an administrative fine
945	1728		of not more than One Thousand Dollars ($1,000.00) Two Thousand
946	1729		Dollars ($2,000.00);
947		-
948	1730		2. For a second offense, be punished by an administrative fine
949	1731		of not more than Five Thousand Dollars ($5,000.00) Ten Thousand
950	1732		Dollars ($10,000.00); and
951		-
952	1733		3. For a third or subsequent offense, be punished by an
953	1734		administrative fine of not more than Ten Thousand Dollars
954	1735		($10,000.00) Twenty Thousand Dollars ($20,000.00) .
955		-
956	1736		D. Any wholesaler, distributing agent or dealer violating the
957	1737		provisions of Section 403.2 of this title shall:
958		-
959	1738		1. For a first offense, be punished by an administrative fine
960	1739		of not more than Five Thousand Dollars ($5,000.00) Ten Thousand
961	1740		Dollars ($10,000.00) ; and
962		-
963	1741		2. For a second or subsequent offense, be punished by an
964	1742		administrative fine of not more than Twenty Thousand Dollars
965	1743		($20,000.00).
966		-
967	1744		Administrative fines collected pursuant to the provisions of
968	1745		this subsection shall be deposited to the revolving fund created in
969	1746		Section 305.2 of this title.
970		-
971	1747		E. The Oklahoma Tax Commission s hall immediately revoke the
972	1748		license of a person punished for a violation pursuant to the
973	1749		provisions of paragraph 3 of subsection C of this section or a
974	1750		person punished for a violation pursuant to the provisions of
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975	1777		subsection D of this section. A person wh ose license is so revoked
976	1778		shall not be eligible to receive another license pursuant to the
977	1779		provisions of Section 301 et seq. of this title for a period of ten
978	1780		(10) years.
979		-
980	1781		F. Fines collected pursuant to the provisions of subsections B,
981	1782		C and D of this sect ion shall be deposited in the Tobacco Products
982	1783		Tax Enforcement Unit Revolving Fund created in Section 7 of this
983	1784		act.
984		-	ENR. H. B. NO. 2292 Page 23
985	1785		SECTION 21. AMENDATORY 68 O.S. 2011, Section 420.1, is
986	1786		amended to read as follows:
987		-
988		-	Section 420.1 A. Each distributor wholesaler of tobacco
	1787	+	Section 420.1. A. Each distributor wholesaler of tobacco
989	1788		products, as defined in Section 401 400 of Title 68 of the Oklahoma
990	1789		Statutes this title, shall maintain copies of invoices or equivalent
991	1790		documentation for each of its facilities for every transaction in
992	1791		which the distributor wholesaler is the seller, purchaser,
993	1792		consignor, consignee , or recipient of tobacco products. The
994	1793		invoices or documentation shall contain the distributor’s
995	1794		wholesaler’s tobacco license number and the retailer’s tobacco
996	1795		license number if the sale is to a retai ler and the quantity by
997	1796		brand style of the tobacco products involved in the transaction.
998	1797		Each wholesaler shall maintain the documents required by this
999	1798		subsection for a period of three (3) years.
1000		-
1001	1799		B. Each retailer of tobacco products, as defined in Section 401
1002	1800		400 of Title 68 of the Oklahoma Statutes this title, shall maintain
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1003	1827		copies of invoices or equivalent documentation for every transaction
1004	1828		in which the retailer receives or purchases tobacco products at each
1005	1829		of its facilities. The invoices or documenta tion shall show the
1006	1830		name and, address and tobacco license number of the distributor
1007	1831		wholesaler from whom, or the address of another facility of the same
1008	1832		retailer from which, the tobacco products were received, the
1009	1833		quantity of each brand style received in s uch transaction, the date
1010	1834		the tobacco products were received and the retail cigarette license
1011	1835		number or sales tax license number. Each retailer shall maintain
1012	1836		the documents required by this subsection for a period of one (1)
1013	1837		year.
1014		-
1015	1838		SECTION 22. AMENDATORY 68 O.S. 2011, Section 421, is
1016	1839		amended to read as follows:
1017		-
1018	1840		Section 421. The sale of such tobacco products under the two
1019	1841		(2) preceding Sections paragraph 1 of Section 419 and Section 420 of
1020	1842		this title shall be restricted to sales or distribution to inmates
1021	1843		of such Veterans’ Hospitals veterans hospitals, or residents of such
1022	1844		state operated state-operated domiciliary homes for Veterans
1023	1845		veterans, as shown by the records thereof, for their own personal
1024	1846		use and consumption. Possession of tobacco products taxed under
1025	1847		this Article article, which have been purchased or received from any
1026	1848		such Veterans’ Hospital veterans hospital or any such home by any
1027	1849		person other than an inmate or resident thereof, shall be deemed a
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1028	1876		misdemeanor and punishabl e by a fine of Two Hundred Dollars
1029		-	($200.00) Five Hundred Dollars ($500.00) for each offense. ENR. H. B. NO. 2292 Page 24
1030		-
	1877	+	($200.00) Five Hundred Dollars ($500.00) for each offense.
1031	1878		SECTION 23. AMENDATORY 68 O.S. 2011, Section 422, is
1032	1879		amended to read as follows:
1033		-
1034	1880		Section 422. All manufacturers, wholesalers, jobbers, or
1035	1881		retailers, or other person, selling or distributing such tobacco
1036	1882		products under the three (3) preceding Sections the provisions of
1037	1883		this act shall comply with the provisions of such Sections sections,
1038	1884		and the rules and regulations of the Oklahoma Tax Comm ission as to
1039	1885		such sale or distribution, and failure to so comply shall constitute
1040	1886		grounds for revocation of any license issued to said manufacturer,
1041	1887		the wholesaler, jobber, or retailer or other person, by the Tax
1042	1888		Commission.
1043		-
1044	1889		SECTION 24. AMENDATORY 68 O.S. 2011, Section 426, is
1045	1890		amended to read as follows:
1046		-
	1891	+	Section 426. A. It shall be unlawful for any person knowingly
	1892	+	to ship, transport, receive, possess, sell, distribute or purchase
	1893	+	contraband tobacco products. Any person who engag es in shipping,
	1894	+	transporting, receiving, possessing, selling, distributing or
	1895	+	purchasing contraband tobacco products shall, upon conviction, be
	1896	+	guilty of a misdemeanor punishable by a fine of not more than One
	1897	+	Thousand Dollars ($1,000.00) Two Thousand Dollars ($2,000.00). Any
	1898	+	person convicted of a second or subsequent violation hereof shall be
	1899	+	guilty of a felony and shall be punishable by a fine of not more
	1900	+
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	1925	+
	1926	+	than Five Thousand Dollars ($5,000.00), by a term of imprisonment in
	1927	+	the State Penitentiary custody of the Department of Corrections for
	1928	+	not more than two (2) years, or by both such fine and imprisonment.
	1929	+	B. Any person who knowingly engages in shipping, transporting,
	1930	+	receiving, possessing, selling, distributing or purchasing
	1931	+	contraband tobacco products shall be subject to the forfeiture of
	1932	+	property as is provided by Section 417 of this title and assessment
	1933	+	of penalty as provided thereby and assessment for any delinquent
	1934	+	taxes found to be owing.
	1935	+	SECTION 25. REPEALER 68 O.S. 2011, Se ctions 406, 408,
	1936	+	409 and 411, are hereby repealed.
	1937	+	SECTION 26. This act shall become effective July 1, 2021.
	1938	+	SECTION 27. It being immediately necessary for the preservation
	1939	+	of the public peace, health or safety, an emergency is hereby
	1940	+	declared to exist, by reason whereof this act shall take effect and
	1941	+	be in full force from and after its passage and approval. "
	1942	+
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	1967	+
	1968	+	Passed the Senate the 19th day of April, 2021.
	1969	+
	1970	+
	1971	+
	1972	+	Presiding Officer of the Senate
	1973	+
	1974	+
	1975	+	Passed the House of Representati ves the ____ day of __________,
	1976	+	2021.
	1977	+
	1978	+
	1979	+
	1980	+	Presiding Officer of the House
	1981	+	of Representatives
	1982	+
	1983	+	ENGR. H. B. NO. 2292 Page 1 1
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	1985	+	3
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	2007	+
	2008	+	ENGROSSED HOUSE
	2009	+	BILL NO. 2292 By: Roberts (Dustin), Lawson
	2010	+	and Caldwell (Chad) of the
	2011	+	House
	2012	+
	2013	+	and
	2014	+
	2015	+	Bullard of the Senate
	2016	+
	2017	+
	2018	+
	2019	+
	2020	+	An Act relating to tobacco prod ucts enforcement;
	2021	+	creating the Tobacco Products Tax Enforcement Act of
	2022	+	2021; authorizing establishment of Tobacco Products
	2023	+	Tax Enforcement Unit by Oklahoma Tax Commission and
	2024	+	enumerating duties; requiring submission of annual
	2025	+	report containing specified in formation; establishing
	2026	+	specified requirements and procedures for remittance
	2027	+	and reporting of tobacco products tax by a
	2028	+	wholesaler; providing for collection of tobacco
	2029	+	products tax by specified parties other than
	2030	+	wholesaler when tax is not remitted by whol esaler;
	2031	+	establishing liability of certain vendors under
	2032	+	specified circumstances; clarifying status of certain
	2033	+	vendors with respect to assessment of fines;
	2034	+	establishing specified requirements and procedures
	2035	+	for remittance and reporting of tobacco products t ax
	2036	+	by a retailer or consumer under specified
	2037	+	circumstances; requiring retailers to purchase
	2038	+	products from licensed wholesalers and providing
	2039	+	penalty for noncompliance; requiring Tax Commission
	2040	+	to make list of licensed wholesalers available in
	2041	+	certain manner; directing Tax Commission to make
	2042	+	administrative changes for specified purpose;
	2043	+	amending 68 O.S. 2011, Sections 401, 402 -1, as
	2044	+	amended by Section 4, Chapter 8, 2nd Extraordinary
	2045	+	Session, O.S.L. 2018, 403, 403.1, 403.2, 407, 412, as
	2046	+	amended by Section 1, Chapter 334, O.S.L. 2013, 413,
	2047	+	as amended by Section 7, Chapter 357, O.S.L. 2012,
	2048	+	414, 415, 417, as amended by Section 6, Chapter 66,
	2049	+	O.S.L. 2018, 418, as amended by Section 2, Chapter
	2050	+	334, O.S.L. 2013, 420.1, 421, 422 and 426 (68 O.S.
	2051	+	Supp. 2020, Sections 402-1, 412, 413, 417 and 418),
	2052	+	which relate to tobacco products excise tax
	2053	+	compliance and enforcement; modifying definitions;
	2054	+	deleting definitions; defining term; deleting
	2055	+
	2056	+	ENGR. H. B. NO. 2292 Page 2 1
	2057	+	2
	2058	+	3
	2059	+	4
	2060	+	5
	2061	+	6
	2062	+	7
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	2067	+	12
	2068	+	13
	2069	+	14
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	2072	+	17
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	2075	+	20
	2076	+	21
	2077	+	22
	2078	+	23
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	2080	+
	2081	+	requirement for stamps as evidence of tax; modifying
	2082	+	manner in which tobacco produc ts tax is levied with
	2083	+	respect to use of stamps and deleting associated
	2084	+	procedures and penalties; imposing requirements on
	2085	+	wholesalers in sales transactions involving tobacco
	2086	+	products and deleting requirements on certain other
	2087	+	parties; modifying specified t erms and procedures
	2088	+	related to taxation of certain sales subject to
	2089	+	tribal compacts; deleting reference to tax stamps for
	2090	+	certain products imported into the state; increasing
	2091	+	penalty for certain practices to deter enforcement by
	2092	+	inspection; conforming lang uage; increasing penalty
	2093	+	for certain noncompliant carriers and specifying that
	2094	+	certain penalty is administrative; deleting
	2095	+	requirement for certain monthly reports; authorizing
	2096	+	Tax Commission or peace officer to confiscate certain
	2097	+	vehicles used to transport untaxed products; deleting
	2098	+	certain application requirement and procedures
	2099	+	related to distributing agents; increasing penalty
	2100	+	for wholesaler and retailer operating without a
	2101	+	license; authorizing Tax Commission, sheriff or
	2102	+	police to seize vehicle used in av oidance of tax;
	2103	+	increasing penalties for specified licensees for
	2104	+	transporting or possessing untaxed product; modifying
	2105	+	requirements related to maintenance of invoices or
	2106	+	other documentation; clarifying reference; increasing
	2107	+	penalty for sale of product subj ect to certain
	2108	+	exemption; providing for applicability of certain
	2109	+	compliance requirement; increasing penalty for
	2110	+	certain acts related to contraband products;
	2111	+	repealing 68 O.S. 2011, Sections 406, 408, 409 and
	2112	+	411, which relate to tobacco products excise tax
	2113	+	procedures; providing for codification; providing for
	2114	+	noncodification; providing an effective date; and
	2115	+	declaring an emergency.
	2116	+
	2117	+
	2118	+
	2119	+
	2120	+
	2121	+	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
	2122	+	SECTION 28. NEW LAW A new section of law to b e codified
	2123	+	in the Oklahoma Statutes as Section 400 of Title 68, unless there is
	2124	+	created a duplication in numbering, reads as follows:
	2125	+
	2126	+	ENGR. H. B. NO. 2292 Page 3 1
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	2150	+
	2151	+	Sections 1 through 7 of this act shall be known and may be cited
	2152	+	as the "Tobacco Products Tax Enforcement Act of 2021".
	2153	+	SECTION 29. NEW LAW A new section of law to be codified
	2154	+	in the Oklahoma Statutes as Section 400.1 of Title 68, unless there
	2155	+	is created a duplication in numbering, reads as follows:
	2156	+	A. For the purpose of enforcing the tobacco tax laws of this
	2157	+	state, the Oklahoma Tax Commission is authorized to establish and
	2158	+	maintain a unit to be known as the "Tobacco Products Tax Enforcement
	2159	+	Unit". The unit shall enforce the tobacco tax laws of this state
	2160	+	and ensure that all taxes are paid on tobacco p roducts by:
	2161	+	1. Confirming that all entities selling tobacco products in
	2162	+	this state are properly licensed as provided in Section 400 et seq.
	2163	+	of Title 68 of the Oklahoma Statutes;
	2164	+	2. Verifying that all retailers are only purchasing tobacco
	2165	+	products from wholesalers licensed by the Tax Commission;
	2166	+	3. Providing a dedicated telephone line and email address for
	2167	+	licensed wholesalers, licensed retailers and the general public to
	2168	+	report suspected violations of tobacco tax laws; provided, no
	2169	+	entity, individual or those who report violations on behalf of a
	2170	+	licensed wholesaler or retailer shall be required to disclose their
	2171	+	identity;
	2172	+	4. Auditing licensed wholesalers and retailers to ensure all
	2173	+	tobacco product taxes are paid;
	2174	+
	2175	+	ENGR. H. B. NO. 2292 Page 4 1
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	2200	+	5. Issuing fines for violations as provi ded in Section 400 et
	2201	+	seq. of Title 68 of the Oklahoma Statutes ;
	2202	+	6. Conducting wholesale and retail tobacco inspections to find
	2203	+	and confiscate untaxed tobacco products;
	2204	+	7. Establishing data -sharing programs with tax departments in
	2205	+	surrounding states rela ted to tobacco product taxes;
	2206	+	8. Creating an industry advisory committee including licensed
	2207	+	wholesalers and retailers who may represent the entity related to
	2208	+	tobacco products tax enforcement concerns and suggestions. The
	2209	+	Oklahoma Tax Commission shall pro mulgate rules establishing the
	2210	+	membership and minimum requirements as may be deemed necessary to
	2211	+	carry out the purposes of the committee; and
	2212	+	9. Working with law enforcement and conducting investigations
	2213	+	to stop illegal acquisition and shipment of tobacco products by
	2214	+	persons not licensed to sell tobacco products in this state.
	2215	+	B. The Tax Commission shall annually submit a report to the
	2216	+	Governor, President Pro Tempore of the Senate and Speaker of the
	2217	+	House of Representatives listing the number of wholesale and retail
	2218	+	tobacco inspections conducted, the amount of untaxed tobacco
	2219	+	products confiscated, the number of tobacco products tax audits
	2220	+	conducted, the amount of taxes assessed and the amount of taxes
	2221	+	collected as the result of audits and confiscations, th e number of
	2222	+	suspected violations reported and the actions taken in response, and
	2223	+	the number of fines issued and the amount of fines collected.
	2224	+
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	2250	+	SECTION 30. NEW LAW A new section of law to be codified
	2251	+	in the Oklahoma Statutes as Sectio n 400.2 of Title 68, unless there
	2252	+	is created a duplication in numbering, reads as follows:
	2253	+	A. The excise tax imposed pursuant to the provisions of Section
	2254	+	400 et seq. of Title 68 of the Oklahoma Statutes upon the sale,
	2255	+	distribution, use, exchange, barter or possession of tobacco
	2256	+	products within the state shall be due and payable on the first day
	2257	+	of each month by the wholesaler. For the purpose of ascertaining
	2258	+	the amount of the tax payable by the wholesaler, the wholesaler
	2259	+	shall file electronically with th e Oklahoma Tax Commission, on or
	2260	+	before the twentieth day of each month and upon a form prescribed
	2261	+	and furnished by the Commission, a tobacco products tax report
	2262	+	signed by the wholesaler under oath. The report shall include:
	2263	+	1. All purchases and deliveri es including invoices detailing
	2264	+	purchases and shipments from manufacturers to the wholesaler and
	2265	+	from the wholesaler to the licensed retailer for the previous
	2266	+	calendar month;
	2267	+	2. The taxes due under Section 400 et seq. of Title 68 of the
	2268	+	Oklahoma Statutes during the preceding calendar month; and
	2269	+	3. Any other information required by the Commission for the
	2270	+	purposes of correctly computing and collecting the tax levied
	2271	+	herein. In addition to the information required on reports, the Tax
	2272	+	Commission may request, and the taxpayer must furnish, any
	2273	+	information deemed necessary to enforce the provisions of Section
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	2299	+
	2300	+	400 et seq. of Title 68 of the Oklahoma Statutes. Such tax remitter
	2301	+	shall compute and remit to the Tax Commission the required tax due
	2302	+	for the preceding calendar month, the remittance or remittances of
	2303	+	the tax to accompany the reports herein required. If not filed or
	2304	+	paid on or before the twentieth day of such month, the tax shall be
	2305	+	delinquent from such date. If a report is not timely filed,
	2306	+	interest shall be charged from the date the report should have been
	2307	+	filed until the date the report is actually filed.
	2308	+	B. It shall not be necessary for any person or entity to
	2309	+	purchase stamps or affix stamps to tobacco products in order to
	2310	+	comply with the requiremen ts of Section 400 et seq. of Title 68 of
	2311	+	the Oklahoma Statutes or the provisions of this act.
	2312	+	C. If the tobacco products tax report or payment of taxes is
	2313	+	due on any day specified in Section 82.1 of Title 25 of the Oklahoma
	2314	+	Statutes or on a date when the Federal Reserve Banks are closed,
	2315	+	such requirements may be performed on the next succeeding business
	2316	+	day and no liability shall result from the delay.
	2317	+	D. The monthly reports shall be filed electronically in the
	2318	+	format prescribed by the Tax Commission and the tax shall be
	2319	+	remitted to the Tax Commission by electronic funds transfer.
	2320	+	SECTION 31. NEW LAW A new section of law to be codified
	2321	+	in the Oklahoma Statutes as Section 400.3 of Title 68, unless there
	2322	+	is created a duplication in num bering, reads as follows:
	2323	+
	2324	+	ENGR. H. B. NO. 2292 Page 7 1
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	2348	+
	2349	+	A. In the event the tax imposed by Section 400 et seq. of Title
	2350	+	68 of the Oklahoma Statutes is not otherwise paid by the wholesaler
	2351	+	as provided in Section 3 of this act, the tax shall be collected as
	2352	+	a backup tax upon the first r eceipt of tobacco products by any
	2353	+	retailer or end user when received from a source outside of the
	2354	+	state or upon the first sale or use when the product is manufactured
	2355	+	in this state. Such tax is imposed upon, and shall be the liability
	2356	+	of, any such retaile r or consumer who first received the tobacco
	2357	+	products in the state.
	2358	+	B. The ultimate vendor of tobacco products shall be jointly and
	2359	+	severally liable for the backup tax levied by subsection A of this
	2360	+	section if the ultimate vendor knows or has reason to kn ow that the
	2361	+	tobacco products tax imposed by Section 400 et seq. of Title 68 of
	2362	+	the Oklahoma Statutes has not been paid.
	2363	+	C. The payment of the tax as provided in this section shall not
	2364	+	absolve any person from payment of fines assessed under this
	2365	+	article.
	2366	+	SECTION 32. NEW LAW A new section of law to be codified
	2367	+	in the Oklahoma Statutes as Section 400.4 of Title 68, unless there
	2368	+	is created a duplication in numbering, reads as follows:
	2369	+	In the event the tax imposed by this act is not paid by the
	2370	+	wholesaler as provided in Section 3 of this act and must be
	2371	+	collected as a backup tax from the retailer or consumer in
	2372	+	accordance with Section 4 of this act, the tax is due and payable by
	2373	+
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	2398	+
	2399	+	the retailer or consumer on the first day of each month for t he
	2400	+	preceding calendar month, and if not paid on or before the twentieth
	2401	+	day of the following month, shall be delinquent. The retailer or
	2402	+	consumer shall file with the Oklahoma Tax Commission, on forms
	2403	+	furnished by the Tax Commission, a return verified by a ffidavit
	2404	+	showing in detail the total purchase price of the tobacco products,
	2405	+	the location of the purchase of the tobacco products and any other
	2406	+	information the Tax Commission may deem reasonably necessary. With
	2407	+	each return, the retailer or consumer shall remit to the Tax
	2408	+	Commission the amount of tax shown on the return to be due. Reports
	2409	+	timely mailed shall be considered timely filed. If a report is not
	2410	+	timely filed, interest shall be charged from the date the report
	2411	+	should have been filed until the date the report is actually filed.
	2412	+	SECTION 33. NEW LAW A new section of law to be codified
	2413	+	in the Oklahoma Statutes as Section 400.5 of Title 68, unless there
	2414	+	is created a duplication in numbering, reads as follows:
	2415	+	A. Retailers shall o nly purchase tobacco products from an
	2416	+	Oklahoma-licensed tobacco wholesaler evidenced by a current listing
	2417	+	provided by the Oklahoma Tax Commission. All purchase invoices
	2418	+	shall contain the license number of the wholesaler and shall be made
	2419	+	available for inspection by the Tax Commission. Any purchases of
	2420	+	tobacco products from a person who is not holding a current Oklahoma
	2421	+	wholesale tobacco license shall be punishable by a fine of the
	2422	+	greater of One Thousand Dollars ($1,000.00) or five times the unpaid
	2423	+
	2424	+	ENGR. H. B. NO. 2292 Page 9 1
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	2449	+	tax on such products. The fine shall be in addition to payment of
	2450	+	any unpaid tobacco products tax. A second or subsequent offense
	2451	+	shall be punishable by revocation of the license. If the retailer
	2452	+	fails to pay a fine within thirty (30) days, the retailer's lic ense
	2453	+	shall be suspended until the fine is paid in full.
	2454	+	B. The Oklahoma Tax Commission shall make available for all
	2455	+	licensed retailers a list of currently licensed wholesalers at least
	2456	+	monthly or through the use of a website maintained by or on behalf
	2457	+	of the Oklahoma Tax Commission with updates made as often as
	2458	+	practical but no less than every thirty (30) days.
	2459	+	SECTION 34. NEW LAW A new section of law not to be
	2460	+	codified in the Oklahoma Statutes reads as follows:
	2461	+	The Oklahoma Tax Comm ission is hereby directed to provide
	2462	+	sufficient staff to comply with the Tobacco Products Tax Enforcement
	2463	+	Act of 2021. The Tax Commission may employ unclassified personnel
	2464	+	to staff the Tobacco Products Tax Enforcement Unit provided for in
	2465	+	Section 2 of this act, compensate the employees of the unit for
	2466	+	working overtime, develop alternative work schedules for members of
	2467	+	the Enforcement Unit to investigate reported tobacco products tax
	2468	+	evasion and expend funds for employees to participate in tobacco
	2469	+	products tax enforcement training provided by the Federation of Tax
	2470	+	Administrators.
	2471	+	The Tax Commission is also directed to enhance agency efforts to
	2472	+	discover and reduce tobacco products tax evasion. Such efforts may
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	2499	+	include increased inspections of tobacco product s retailers,
	2500	+	including inspections after normal business hours; enhanced tobacco
	2501	+	products tax auditing, including the auditing of out -of-state
	2502	+	licensed wholesalers; the acquisition and use of technology systems
	2503	+	designed to identify underreporting of tobacc o products taxes; and
	2504	+	analysis of data from the electronic reporting of invoices by
	2505	+	tobacco products wholesalers.
	2506	+	SECTION 35. AMENDATORY 68 O.S. 2011, Section 401, is
	2507	+	amended to read as follows:
	2508	+	Section 401. For the purpose of thi s article:
	2509	+	(a) The word "person" shall mean any individual, company,
	2510	+	limited liability company, corporation, partnership, association,
	2511	+	joint adventure, estate, trust, or any other group, or combination
	2512	+	acting as a unit, and the plural as well as the singu lar, unless the
	2513	+	intention to give a more limited meaning is disclosed by the
	2514	+	context.
	2515	+	(b) The term "Tax Commission" shall mean the Oklahoma Tax
	2516	+	Commission.
	2517	+	(c) The word "wholesaler" shall include dealers whose principal
	2518	+	business is that of a wholesale de aler or jobber, and who is known
	2519	+	to the trade as such, who shall sell any cigars or tobacco products
	2520	+	to licensed retail dealers only for the purpose of resale , or giving
	2521	+	them away, or exposing the same where they may be taken or
	2522	+	purchased, or otherwise acq uired by the retailer .
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	2549	+	(d) The word "retailer" shall include every dealer, other than
	2550	+	a wholesale dealer wholesaler as defined above, whose principal
	2551	+	business is that of selling merchandise at retail, who shall sell,
	2552	+	or offer for sale, cigars or tobacco p roducts, irrespective of
	2553	+	quantity, number of sales, giving the same away or exposing the same
	2554	+	where they may be taken, or purchased, or otherwise acquired by the
	2555	+	consumer.
	2556	+	(e) The word "consumer" shall mean a person who comes into
	2557	+	possession of tobacco fo r the purpose of consuming it , giving it
	2558	+	away, or disposing of it in any way by sale, barter or exchange .
	2559	+	(f) The words "first sale" shall mean and include the first
	2560	+	sale, or distribution, of cigars or tobacco products in intrastate
	2561	+	commerce, or the first use or consumption of cigars, or tobacco
	2562	+	products within this state.
	2563	+	(g) The words "tobacco products" shall mean any cigars,
	2564	+	cheroots, stogies, smoking tobacco (including granulated, plug cut,
	2565	+	crimp cut, ready rubbed and any other kinds and forms of toba cco
	2566	+	suitable for smoking in a pipe or cigarette), chewing tobacco
	2567	+	(including cavendish, twist, plug, scrap and any other kinds and
	2568	+	forms of tobacco suitable for chewing), however prepared; and shall
	2569	+	include any other articles or products made of tobacco or any
	2570	+	substitute therefor.
	2571	+	(h) The term "distributing agent" shall mean and include every
	2572	+	person in this state who acts as an agent of any person outside the
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	2599	+	state by receiving cigars and tobacco products in interstate
	2600	+	commerce and storing such items subje ct to distribution or delivery,
	2601	+	upon order from said person outside the state, to distributors,
	2602	+	wholesale dealers and retail dealers, or to consumers. The term
	2603	+	"distributing agent" shall also mean and include any person who
	2604	+	solicits or takes orders for ci gars and tobacco products to be
	2605	+	shipped in interstate commerce to a person in this state by a person
	2606	+	residing outside of Oklahoma, the tax not having been paid on such
	2607	+	cigars and tobacco products.
	2608	+	(i) The term "stamp" shall mean the stamp or stamps by use of
	2609	+	which:
	2610	+	1. The tax levied pursuant to the provisions of Section 401 et
	2611	+	seq. of this title is paid;
	2612	+	2. The tax levied pursuant to the provisions of Section 426 of
	2613	+	this title is paid; or
	2614	+	3. The payment in lieu of taxes authorized pursuant to a
	2615	+	compact entered into by the State of Oklahoma and a federally
	2616	+	recognized Indian tribe or nation pursuant to the provisions of
	2617	+	subsection C of Section 346 of this title is paid.
	2618	+	(j) The term "drop shipment" shall mean and include any
	2619	+	delivery of cigars or tobacco products received by any person within
	2620	+	the state when payment for such cigars or tobacco products is made
	2621	+	to the shipper or seller by or through a person other than the
	2622	+	consignee.
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	2649	+	(k) The term "cigars" shall include any roll of tobacco for
	2650	+	smoking, irrespective of size or shape and irrespective of the
	2651	+	tobacco being flavored, adulterated or mixed with any other
	2652	+	ingredients, where such roll has a wrapper made chiefly of tobacco.
	2653	+	(l) The word "dealer" shall include every person, firm,
	2654	+	corporation, or associa tion of persons, who manufactures cigars or
	2655	+	tobacco products for distribution, sale, use or consumption in the
	2656	+	State of Oklahoma. The word "dealer" is also further defined to
	2657	+	mean any person, firm, corporation or association of persons, who
	2658	+	imports cigars or tobacco products from any state or foreign
	2659	+	country, for distribution, sale, use or consumption in the State of
	2660	+	Oklahoma.
	2661	+	(i) The term "untaxed" means that the full amount of tax has
	2662	+	not been paid as required by Section 400 et seq. of this title.
	2663	+	SECTION 36. AMENDATORY 68 O.S. 2011, Section 402 -1, as
	2664	+	amended by Section 4, Chapter 8, 2nd Extraordinary Session, O.S.L.
	2665	+	2018 (68 O.S. Supp. 2020, Section 402 -1), is amended to read as
	2666	+	follows:
	2667	+	Section 402-1. In addition to the tax le vied by Section 402 of
	2668	+	this title, there is hereby levied upon the sale, use, exchange or
	2669	+	possession of articles containing tobacco as defined in said Section
	2670	+	402, a tax in the following amounts:
	2671	+	(a) Upon cigars of all descriptions made of tobacco, or any
	2672	+	substitute therefor, and weighing more than three (3) pounds per
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	2699	+	thousand, and having a manufacturer's recommended retail selling
	2700	+	price, under the Federal Code, of more than four cents ($0.04) for
	2701	+	each cigar, Ten Dollars ($10.00) per thousand. For the pu rpose of
	2702	+	computing the tax, cheroots, stogies, etc., are hereby classed as
	2703	+	cigars;
	2704	+	(b) Upon all smoking tobacco including granulated, plug cut,
	2705	+	crimp cut, ready rubbed and other kinds and forms of tobacco
	2706	+	prepared in such manner as to be suitable for smok ing in a pipe or
	2707	+	cigarette, the tax shall be fifteen percent (15%) of the factory
	2708	+	list price exclusive of any trade discount, special discount or
	2709	+	deals; and
	2710	+	(c) Upon chewing tobacco, smokeless tobacco, and snuff, the tax
	2711	+	shall be ten percent (10%) of the factory list price exclusive of
	2712	+	any trade discount, special discount or deals.
	2713	+	This tax shall be paid by the consumer and no retailer may
	2714	+	advertise that he will pay or absorb this tax.
	2715	+	The tax herein levied on tobacco products shall be evidenced by
	2716	+	stamps and collected on the same basis and in the same manner and in
	2717	+	all respects as the tax levied by the Tobacco Products Tax Law. The
	2718	+	revenue from this additional tax shall be apportioned by the
	2719	+	Oklahoma Tax Commission in the same manner as provided in Sectio n
	2720	+	404 of this title, for the apportionment of other tobacco products
	2721	+	tax revenue.
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	2723	+	ENGR. H. B. NO. 2292 Page 15 1
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	2747	+
	2748	+	SECTION 37. AMENDATORY 68 O.S. 2011, Section 403, is
	2749	+	amended to read as follows:
	2750	+	Section 403. (a) The excise taxes levied by this article shall
	2751	+	be paid by affixing stamps in the manner and at the time herein set
	2752	+	forth. In the case of cigars, including five -pack and other small
	2753	+	packs, stogies and cheroots, the stamps shall be affixed to the box,
	2754	+	or container, in which or from which normally sold at w holesale.
	2755	+	Wholesalers and jobbers shall affix the required stamps within
	2756	+	seventy-two (72) hours after such tobacco products are received by
	2757	+	them. Any retailer shall have twenty -four (24) hours within which
	2758	+	to affix the stamps after such tobacco products a re received by him,
	2759	+	or them the wholesaler liable for payment of the tax . Provided that
	2760	+	the Tax Commission may, in its discretion, where it is practical and
	2761	+	reasonable for the enforcement of the collection of taxes provided
	2762	+	hereunder, promulgate such rule s and regulations as to permit
	2763	+	cigars, stogies, cheroots, and tobacco products , to remain unstamped
	2764	+	untaxed in the hands of the wholesalers and jobbers until the
	2765	+	original case or crate is broken, unpacked or sold.
	2766	+	(b) In the case of tobacco products wrapp ed in packages of two
	2767	+	(2) pounds or less, the stamps shall be affixed to the containers in
	2768	+	which or from which the individual packages are normally sold at
	2769	+	wholesale and the stamps shall be affixed by wholesalers and jobbers
	2770	+	within seventy-two (72) hours after such products are received by
	2771	+	them, and by any retailer within the twenty -four (24) hours of
	2772	+
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	2798	+	receipt by him or them of any such products. Such goods must be
	2799	+	stamped before being sold. All retail dealers in manufactured
	2800	+	tobacco products, purchasing o r receiving such commodities from
	2801	+	without the state, whether the same shall have been ordered through
	2802	+	a wholesaler or jobber in this state and/or by drop shipment and/or
	2803	+	otherwise, shall within five (5) days after receipt of same, mail a
	2804	+	duplicate invoice of all such purchases or receipts to the Tax
	2805	+	Commission. Failure to furnish duplicate invoices as required shall
	2806	+	be deemed a misdemeanor, and, upon conviction, be punishable by a
	2807	+	fine of not more than One Hundred Dollars ($100.00) for each
	2808	+	offense, or imprisonment in the county jail for a period not
	2809	+	exceeding thirty (30) days.
	2810	+	(c) It is the intent and purpose of this section to require all
	2811	+	manufacturers within this state, wholesale dealers, jobbers,
	2812	+	distributors and retail dealers, wholesalers to affix the stamps pay
	2813	+	applicable tax provided for in this section to article upon the
	2814	+	sale, use, exchange or possession of taxable commodities, but when
	2815	+	the stamps have been affixed as required herein, no further or other
	2816	+	stamp shall be required regardless of how of ten such articles may be
	2817	+	sold or resold within this state .
	2818	+	SECTION 38. AMENDATORY 68 O.S. 2011, Section 403.1, is
	2819	+	amended to read as follows:
	2820	+	Section 403.1 The Oklahoma Tax Commission is hereby authorized
	2821	+	and empowered, if in its discretion it deems practical and
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	2823	+	ENGR. H. B. NO. 2292 Page 17 1
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	2848	+	reasonable, to establish procedures for payment of excise taxes
	2849	+	levied in Section 401 400 et seq. of this title, for the collection
	2850	+	from a wholesaler of payments in lieu of excise taxes authorized
	2851	+	pursuant to a compact ent ered into by the State of Oklahoma and a
	2852	+	federally recognized Indian tribe or nation pursuant to the
	2853	+	provisions of subsection C of Section 346 of this title, in respect
	2854	+	to articles containing tobacco, pursuant to monthly tobacco products
	2855	+	tax reports in lieu of payment by purchasing and affixing stamps,
	2856	+	notwithstanding the provisions of Section 403 et seq. of this title .
	2857	+	Provided, exercise by the Tax Commission of the authority granted
	2858	+	herein shall be by adoption of rules and regulations necessary to
	2859	+	establish procedures for collection of such tax through monthly
	2860	+	reporting procedures consistent with the provisions of Section 401
	2861	+	400 et seq. of this title , other than those provisions relating
	2862	+	directly to payment of such tax by purchasing and affixing stamps .
	2863	+	In the event the Tax Commission shall determine to collect such
	2864	+	tax through monthly reporting procedures and adopt rules and
	2865	+	regulations therefor:
	2866	+	1. All provisions of Section 401 400 et seq. of this title
	2867	+	relating to unstamped untaxed tobacco products shall be interpreted
	2868	+	to include and shall be applicable to all tobacco products for which
	2869	+	the tax required by law has not been paid;
	2870	+	2. No person, dealer, distributing agent retailer or
	2871	+	wholesaler, as defined in Section 401 400 of this title, shall
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	2898	+	possess, sell, use, exchange, barter, give away or in any manner
	2899	+	deal with any tobacco products within this state upon which such tax
	2900	+	is levied and unpaid , unless such person, dealer, retailer,
	2901	+	distributing agent or wholesaler holds a valid tobacco license
	2902	+	issued pursuant to Section 415 of this title ; and
	2903	+	3. Any person wholesaler required to report and remit such
	2904	+	taxes or payments in lieu of taxes required pursuant to a compact
	2905	+	authorized by subsection C of Section 346 of this title to the Tax
	2906	+	Commission shall be allowed a discount of two percent (2%) of the
	2907	+	tax due for maintaining and collecting such tax or payments for the
	2908	+	benefit of the state, if such tax or payment is timely reported and
	2909	+	remitted.
	2910	+	SECTION 39. AMENDATORY 68 O.S. 2011, Se ction 403.2, is
	2911	+	amended to read as follows:
	2912	+	Section 403.2 A. It shall be unlawful to affix a stamp to any
	2913	+	package or container of tobacco products or for any person to sell,
	2914	+	offer for sale, or import into this state any package or container
	2915	+	of tobacco products:
	2916	+	1. Which bears any label or notice prescribed by the United
	2917	+	States Department of Treasury to identify tobacco products intended
	2918	+	for export and exempt from tax by the United States pursuant to
	2919	+	Section 5704(b) of Title 26 of the United States Code o r any notice
	2920	+	or label described in Section 290.185 of Title 27 of the United
	2921	+	States Code of Federal Regulations;
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	2948	+	2. Which is not labeled in conformity with the provisions of
	2949	+	the Federal Cigarette Labeling and Advertising Act, or any other
	2950	+	federal requirement for the placement of labels, warnings or other
	2951	+	information applicable to packages or containers of tobacco products
	2952	+	intended for domestic consumption;
	2953	+	3. Upon which all federal taxes due have not been paid or which
	2954	+	is not in compliance with all federa l trademark and copyright laws;
	2955	+	or
	2956	+	4. The packaging of which has been modified or altered by a
	2957	+	person other than the manufacturer or person specifically authorized
	2958	+	by the manufacturer, including, but not limited to, the placement of
	2959	+	a sticker or label to cover information on the package or container.
	2960	+	Possession of more than thirty (30) ounces of tobacco products
	2961	+	in packages or containers bearing Oklahoma stamps in violation of
	2962	+	this subsection by a person other than an employee of this state or
	2963	+	the federal government performing official duties relating to
	2964	+	enforcement of the provisions of Section 401 400 et seq. of this
	2965	+	title shall constitute prima facie evidence of a violation of the
	2966	+	provisions of this subsection.
	2967	+	B. Except as otherwise provided by law, the Attorney General
	2968	+	shall enforce the provisions of this section.
	2969	+	SECTION 40. AMENDATORY 68 O.S. 2011, Section 407, is
	2970	+	amended to read as follows:
	2971	+
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	2997	+	Section 407. It shall be provided by regulations of the Tax
	2998	+	Commission the methods of breaking packages, forms and kinds of
	2999	+	containers, and methods of affixing stamps, that shall be employed
	3000	+	by persons subject to the tax levied by this article which will make
	3001	+	possible the enforcement of payment by inspection; and any such
	3002	+	person engaging in or permitting such practices as are prohibited by
	3003	+	this article, or in any other practice which makes it difficult to
	3004	+	enforce the provisions of this article by inspection, and any person
	3005	+	or agent thereof who shall upon demand of any officer or agent of
	3006	+	the Tax Commission refuse to allow full inspection of the premises
	3007	+	or any part thereof, or who shall hinder or in anywise delay or
	3008	+	prevent such inspection when demand is made therefor, shall be
	3009	+	guilty of a misdemeanor and shall, upon conviction, be fined not
	3010	+	more than Two Hundred Dollars ($200.00) Two Thousand Dollars
	3011	+	($2,000.00) for each offense, or imprisonment in the county jail for
	3012	+	a period not exceeding sixty (60) days or both.
	3013	+	SECTION 41. AMENDATORY 68 O.S. 2011, Section 412, as
	3014	+	amended by Section 1, Chapter 334, O.S.L. 2013 (68 O.S. Supp. 2020,
	3015	+	Section 412), is amended to read as follows:
	3016	+	Section 412. (a) Every wholesaler , jobber, retailer or
	3017	+	consumer who purchases or allows to come into his or her possession
	3018	+	any unstamped untaxed merchandise coming under the scope of this
	3019	+	article shall file with the Oklahoma Tax Commission a surety or
	3020	+	collateral or cash bond in the amount of Twenty -five Thousand
	3021	+
	3022	+	ENGR. H. B. NO. 2292 Page 21 1
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	3047	+	Dollars ($25,000.00), payable to the State of Oklahoma and
	3048	+	conditioned upon compli ance with the provisions of this article and
	3049	+	the rules of the Tax Commission.
	3050	+	(b) Any consumer who purchases or brings into this state
	3051	+	unstamped untaxed cigars or tobacco products whereon the tax would
	3052	+	be more than twenty-five cents ($0.25) is subject to the tax
	3053	+	thereon. Upon failure to pay the tax levied in this article, the
	3054	+	consumer shall be subject to a fine of not more than Five Hundred
	3055	+	Dollars ($500.00) or not less than Twenty -five Dollars ($25.00).
	3056	+	Provided, any person in possession of more than on e thousand small
	3057	+	or large cigars or two hundred sixteen (216) ounces of chewing or
	3058	+	smoking tobacco products in packages or containers for which the tax
	3059	+	required by law has not been paid shall be punished by
	3060	+	administrative fines in the manner and amounts pr ovided in
	3061	+	subsection D of Section 418 of this title.
	3062	+	SECTION 42. AMENDATORY 68 O.S. 2011, Section 413, as
	3063	+	amended by Section 7, Chapter 357, O.S.L. 2012 (68 O.S. Supp. 2020,
	3064	+	Section 413), is amended to read as follows:
	3065	+	Section 413. A. The right of a carrier in this state to carry
	3066	+	unstamped untaxed cigars and tobacco products shall not be affected
	3067	+	hereby; provided, that carriers delivering untaxed tobacco products
	3068	+	to any person in this state other than an Oklahoma -licensed
	3069	+	wholesaler for the purpose of selling or consuming untaxed tobacco
	3070	+	products in this state in violation of this article shall be subject
	3071	+
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	3097	+	to seizure of the shipments and forfeiture of the inventory pursuant
	3098	+	to the provisions of Section 417 of this title. Provided f urther,
	3099	+	that should any such carrier sell any cigars and tobacco products in
	3100	+	this state, such sale shall be subject to the stamp tax and other
	3101	+	provisions of this article and to the rules of the Tax Commission.
	3102	+	The carrier transporting tobacco products and cigars to a point
	3103	+	within this state, or a bonded warehouseman or bailee having in its
	3104	+	possession tobacco products and cigars, shall transmit to the Tax
	3105	+	Commission a statement of such consignment of tobacco products and
	3106	+	cigars, showing the date, point of o rigin, point of delivery, and to
	3107	+	whom delivered. All carriers or bailees or warehousemen shall
	3108	+	permit an examination by the Tax Commission, or its agents or
	3109	+	legally authorized representatives, of their records relating to the
	3110	+	shipment or receipt of tobacc o products and cigars. Any person who
	3111	+	fails or refuses to transmit to the Tax Commission the aforesaid
	3112	+	statement, or who refuses to permit the examination of his or her
	3113	+	records by the Tax Commission or its legally authorized agents or
	3114	+	representatives, sha ll be guilty of a misdemeanor and shall be
	3115	+	subject to a an administrative fine of not to exceed Five Hundred
	3116	+	Dollars ($500.00) Two Thousand Dollars ($2,000.00) and not less than
	3117	+	Twenty-five Dollars ($25.00) One Thousand Dollars ($1,000.00) .
	3118	+	B. Wholesalers shall make a monthly report to the Tax
	3119	+	Commission. Such report must be received in the office of the Tax
	3120	+	Commission not later than the twentieth day of each month, showing
	3121	+
	3122	+	ENGR. H. B. NO. 2292 Page 23 1
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	3147	+	purchases and invoices of all merchandise coming under this article,
	3148	+	for the previous month; and the report shall also show the invoice
	3149	+	number, the name and address of the consignee and consignor, the
	3150	+	date, and such other information as may be requested by the Tax
	3151	+	Commission. Retailers or consumers purchasing tobacco products and
	3152	+	cigars in drop shipments shall be required to make monthly reports
	3153	+	to the Tax Commission, as are required of wholesalers.
	3154	+	SECTION 43. AMENDATORY 68 O.S. 2011, Section 414, is
	3155	+	amended to read as follows:
	3156	+	Section 414. (a) Each truck or vehicle wherefrom cigars or
	3157	+	tobacco products are sold shall be considered as a place of business
	3158	+	and required to have a wholesale license and a bond of not less than
	3159	+	Five Hundred Dollars ($500.00).
	3160	+	(b) Any person operating a truck or vehicle by selling,
	3161	+	exchanging, or giving away unstamped untaxed merchandise covered by
	3162	+	this article shall be deemed guilty of violation of same and shall
	3163	+	be penalized as hereinbefore set forth, and unstamped untaxed
	3164	+	merchandise handled by him this person as well as the vehicl e used
	3165	+	to transport the untaxed tobacco products shall be subject to
	3166	+	confiscation by authorized agents of the Tax Commission or duly
	3167	+	authorized peace officers.
	3168	+	(c) After seizure or confiscation by such agent or officer, the
	3169	+	merchandise and property shall be held until all taxes, interest and
	3170	+	penalties due have been paid. If not paid within five (5) days
	3171	+
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	3197	+	after date of seizure, it shall be sold at public sale by the
	3198	+	sheriff of the county where confiscated, after being advertised by
	3199	+	posting of notice of such sale in five (5) public places in the
	3200	+	county where the sale is to occur. The proceeds of the sale shall
	3201	+	be applied to taxes, interest and penalties due and to the cost of
	3202	+	the sale, and the remainder, if any, shall be paid to the State
	3203	+	Treasurer, by the sheriff conducting such sale, to be deposited to
	3204	+	the credit of the General Revenue Fund.
	3205	+	SECTION 44. AMENDATORY 68 O.S. 2011, Section 415, is
	3206	+	amended to read as follows:
	3207	+	Section 415. A. Every dealer and wholesaler of tobacco
	3208	+	products in this state, as a condition of carrying on such business,
	3209	+	shall annually secure from the Oklahoma Tax Commission a written
	3210	+	license and shall pay an annual fee of Two Hundred Fifty Dollars
	3211	+	($250.00); provided, such fee shall not be applicable if paid
	3212	+	pursuant to Section 304 of this title. The Tax Commission shall
	3213	+	promulgate rules which provide a procedure for the issuance of a
	3214	+	joint license for any wholesaler making application pursuant to this
	3215	+	section and Section 304 of this title. Application for s uch
	3216	+	license, which shall be made upon such forms as prescribed by the
	3217	+	Tax Commission, shall include the following:
	3218	+	1. The applicant's agreement to the jurisdiction of the Tax
	3219	+	Commission and the courts of this state for purposes of enforcement
	3220	+	of the provisions of Section 301 et seq. of this title; and
	3221	+
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	3246	+
	3247	+	2. The applicant's agreement to abide by the provisions of
	3248	+	Section 301 et seq. of this title and the rules promulgated by the
	3249	+	Tax Commission with reference thereto. This license, which will be
	3250	+	for the ensuing year, must at all times be displayed in a
	3251	+	conspicuous place so that it can be seen. Persons operating more
	3252	+	than one place of business must secure a license for each place of
	3253	+	business. "Place of business" shall be construed to include the
	3254	+	place where orders are received, or where tobacco products are sold.
	3255	+	If tobacco products are sold on or from any vehicle, the vehicle
	3256	+	shall constitute a place of business, and the license fee of Two
	3257	+	Hundred Fifty Dollars ($250.00) shall be paid with respect thereto.
	3258	+	However, if the vehicle is owned or operated by a place of business
	3259	+	for which the regular license fee is paid, the annual fee for the
	3260	+	license with respect to such vehicle shall be only Ten Dollars
	3261	+	($10.00). The expiration for such vehicle license shall ex pire on
	3262	+	the same date as the current license of the place of business.
	3263	+	B. Every retailer in this state, as a condition of carrying on
	3264	+	such business, shall secure from the Tax Commission a license and
	3265	+	shall pay therefor a fee of Thirty Dollars ($30.00). A pplication
	3266	+	for such license, which shall be made upon such forms as prescribed
	3267	+	by the Tax Commission, shall include the following:
	3268	+	1. The applicant's agreement to the jurisdiction of the Tax
	3269	+	Commission and the courts of this state for purposes of enforcem ent
	3270	+	of the provisions of Section 301 et seq. of this title; and
	3271	+
	3272	+	ENGR. H. B. NO. 2292 Page 26 1
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	3296	+
	3297	+	2. The applicant's agreement to abide by the provisions of
	3298	+	Section 301 et seq. of this title and the rules promulgated by the
	3299	+	Tax Commission with reference thereto;
	3300	+	3. The applicant's agreem ent that it shall not purchase any
	3301	+	tobacco products for resale from a supplier that does not hold a
	3302	+	current wholesaler's license issued pursuant to this section; and
	3303	+	4. The applicant's agreement to sell tobacco products only to
	3304	+	consumers.
	3305	+	Such license, which will be for the ensuing three (3) years,
	3306	+	must at all times be displayed in a conspicuous place so that it can
	3307	+	be seen. Upon expiration of such license, the retailer to whom such
	3308	+	license was issued may obtain a renewal license which shall be valid
	3309	+	for three (3) years or until expiration of the retailer's sales tax
	3310	+	permit, whichever is earlier, after which a renewal license shall be
	3311	+	valid for three (3) years. The manner and prorated fee for renewals
	3312	+	shall be prescribed by the Tax Commission. Every pers on operating
	3313	+	under such license as a retailer and who owns or operates more than
	3314	+	one place of business must secure a license for each place of
	3315	+	business. "Place of business" shall be construed to include places
	3316	+	where orders are received or where tobacco pr oducts are sold.
	3317	+	C. Nothing in this section shall be construed to prohibit any
	3318	+	person holding a retail license from also holding a wholesaler
	3319	+	license.
	3320	+
	3321	+	ENGR. H. B. NO. 2292 Page 27 1
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	3346	+	D. Every distributing agent shall, as a condition of carrying
	3347	+	on such business, pursuant to written app lication on a form
	3348	+	prescribed by and in such detailed form as the Tax Commission may
	3349	+	require, annually secure from the Tax Commission a license, and
	3350	+	shall pay therefor an annual fee of One Hundred Dollars ($100.00).
	3351	+	An application shall be filed and a lic ense obtained for each place
	3352	+	of business owned or operated by a distributing agent. The license,
	3353	+	which will be for the ensuing year, shall be consecutively numbered,
	3354	+	nonassignable and nontransferable, and shall authorize the storing
	3355	+	and distribution of un stamped tobacco products within this state
	3356	+	when such distribution is made upon interstate orders only.
	3357	+	E. 1. All wholesale, or retail, and distributing agents'
	3358	+	licenses shall be nonassignable and nontransferable from one person
	3359	+	to another person. Such l icenses may be transferred from one
	3360	+	location to another location after an application has been filed
	3361	+	with the Tax Commission requesting such transfer and after the
	3362	+	approval of the Tax Commission.
	3363	+	2. Wholesale, and retail, and distributing agent's licenses
	3364	+	shall be applied for on a form prescribed by the Tax Commission.
	3365	+	Any person operating as a wholesaler , or retailer, or distributing
	3366	+	agent must at all times have an effective unexpired license which
	3367	+	has been issued by the Tax Commission. If any such pers on or
	3368	+	licensee continues to operate as such on a license issued by the Tax
	3369	+	Commission which has expired, or operates without ever having
	3370	+
	3371	+	ENGR. H. B. NO. 2292 Page 28 1
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	3396	+	obtained from the Tax Commission such license, such person or
	3397	+	licensee shall, after becoming delinquent for a period in excess of
	3398	+	fifteen (15) days, pay to the Tax Commission, in addition to the
	3399	+	annual license fee, a penalty of twenty-five cents ($0.25) Ten
	3400	+	Dollars ($10.00) per day on each delinquent license for each day so
	3401	+	operated in excess of fifteen (15) days. The pen alty provided for
	3402	+	herein shall not exceed the annual license fee for such license.
	3403	+	F. E. No license may be granted, maintained or renewed if any
	3404	+	of the following conditions apply to the applicant. For purposes of
	3405	+	this section, "applicant" includes any combination of persons owning
	3406	+	directly or indirectly, in the aggregate, more than ten percent
	3407	+	(10%) of the ownership interests in the applicant:
	3408	+	1. The applicant owes Five Hundred Dollars ($500.00) or more in
	3409	+	delinquent tobacco products taxes;
	3410	+	2. The applicant had a dealer, wholesaler, or retailer license
	3411	+	revoked by the Tax Commission within the past two (2) years; or
	3412	+	3. The applicant has been convicted of a crime relating to
	3413	+	stolen or counterfeit tobacco products, or receiving stolen or
	3414	+	counterfeit tobacco products.
	3415	+	G. F. No person or entity licensed pursuant to the provisions
	3416	+	of this section shall purchase tobacco products from or sell tobacco
	3417	+	products to a person or entity required to obtain a license unless
	3418	+	such person or entity has obtained such licen se.
	3419	+
	3420	+	ENGR. H. B. NO. 2292 Page 29 1
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	3445	+	H. G. In addition to any civil or criminal penalty provided by
	3446	+	law, upon a finding that a licensee has violated any provision of
	3447	+	Section 301 et seq. of this title, the Tax Commission may revoke or
	3448	+	suspend the license or licenses of the licensee pursua nt to the
	3449	+	procedures applicable to revocation of a license set forth in
	3450	+	Section 418 of this title.
	3451	+	SECTION 45. AMENDATORY 68 O.S. 2011, Section 417, as
	3452	+	amended by Section 6, Chapter 66, O.S.L. 2018 (68 O.S. Supp. 2020,
	3453	+	Section 417), is amended to read as follows:
	3454	+	Section 417. A. All unstamped tobacco products upon which a
	3455	+	tax is levied by Section 401 400 et seq. of this title and all
	3456	+	tobacco products stamped, sold, offered for sale, or imported into
	3457	+	this state in violation of the provisions of Section 403.2 of this
	3458	+	title, found in the possession, custody or control of any person for
	3459	+	the purpose of being consumed, sold or transported from one place to
	3460	+	another in this state, for the purpose of evading or violating the
	3461	+	provisions of Section 401 400 et seq. of this title, or with intent
	3462	+	to avoid payment of the tax imposed thereunder, and any vehicle
	3463	+	being used in avoidance of such tax may be seized by any authorized
	3464	+	agent of the Oklahoma Tax Commission or any sheriff, deputy sheriff
	3465	+	or police within the state. Tobacco products from the time of
	3466	+	seizure shall be forfeited to the State of Oklahoma. A proper
	3467	+	proceeding shall be filed to maintain such seizure and prosecute the
	3468	+	forfeiture as herein provided; the provisions of this section sh all
	3469	+
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	3494	+
	3495	+	not apply, however, where the tax on such unstamped tobacco products
	3496	+	does not exceed One Dollar ($1.00).
	3497	+	B. All such tobacco products so seized shall first be listed
	3498	+	and appraised by the officer making such seizure and turned over to
	3499	+	the Tax Commission and a receipt taken therefor.
	3500	+	C. The person making such seizure shall immediately make and
	3501	+	file a written report thereof to the Tax Commission, showing the
	3502	+	name of the person making such seizure, the place where seized, the
	3503	+	person from whom seized, the property seized and an inventory and
	3504	+	appraisement thereof, which inventory shall be based on the usual
	3505	+	and ordinary retail price or value of the articles seized, and the
	3506	+	Attorney General, in the case of tobacco products stamped, sold,
	3507	+	offered for sale, or imported into this state in violation of the
	3508	+	provisions of Section 403.2 of this title. Within sixty (60) days
	3509	+	of seizure, the person from whom the property was seized may file a
	3510	+	request for hearing with the Tax Commission or the Attorney General
	3511	+	to show why the seized property should not be forfeited and
	3512	+	destroyed. If a hearing is requested, the owner of the tobacco
	3513	+	products shall be given at least ten (10) days' notice of the
	3514	+	hearing. If no request for hearing is filed within the time
	3515	+	provided, the property seized will be forfeited and destroyed.
	3516	+	D. The seizure of such tobacco products shall not relieve the
	3517	+	person from whom such tobacco products were seized from prosecution
	3518	+	or the payment of penalties.
	3519	+
	3520	+	ENGR. H. B. NO. 2292 Page 31 1
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	3544	+
	3545	+	E. The forfeiture provisions of Section 401 400 et seq. of this
	3546	+	title shall only apply to persons having possession of or
	3547	+	transporting tobacco products with intent to barter, sell or give
	3548	+	away the same.
	3549	+	SECTION 46. AMENDATORY 68 O.S. 2011, Section 418, as
	3550	+	amended by Section 2, Ch apter 334, O.S.L. 2013 (68 O.S. Supp. 2020,
	3551	+	Section 418), is amended to read as follows:
	3552	+	Section 418. A. It shall be unlawful for any person to
	3553	+	transport or possess unstamped tobacco products where the tax on
	3554	+	such unstamped tobacco products has not been paid and exceeds the
	3555	+	sum of One Dollar ($1.00).
	3556	+	B. Except as otherwise provided in subsections C and D of this
	3557	+	section, any person found guilty of violating the provisions of
	3558	+	Section 401 400 et seq. of this title shall be punished by an
	3559	+	administrative fine of not more than Five Hundred Dollars ($500.00)
	3560	+	One Thousand Dollars ($1,000.00) for a first offense or not more
	3561	+	than Four Thousand Dollars ($4,000.00) for a second or subsequent
	3562	+	offense. Provided, any person in possession of more than one
	3563	+	thousand small or large cigars or two hundred sixteen (216) ounces
	3564	+	of chewing or smoking tobacco products in packages or containers for
	3565	+	which the tax required by law has not been paid shall be punished by
	3566	+	administrative fines in the manner and amounts provided in
	3567	+	subsection D of this section.
	3568	+
	3569	+	ENGR. H. B. NO. 2292 Page 32 1
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	3594	+	C. Any retailer violating the provisions of Section 403.2 of
	3595	+	this title shall:
	3596	+	1. For a first offense, be punished by an administrative fine
	3597	+	of not more than One Thousand Dollars ($1,000.00) Two Thousand
	3598	+	Dollars ($2,000.00);
	3599	+	2. For a second offense, be punished by an administrative fine
	3600	+	of not more than Five Thousand Dollars ($5,000.00) Ten Thousand
	3601	+	Dollars ($10,000.00) ; and
	3602	+	3. For a third or subsequent offense, be punished by an
	3603	+	administrative fine of not more than Ten Thousand Dollars
	3604	+	($10,000.00) Twenty Thousand Dollars ($20,000.00) .
	3605	+	D. Any wholesaler, distributing agent or dealer violating the
	3606	+	provisions of Section 403.2 of this title shall:
	3607	+	1. For a first offense, be punished by an administrative fine
	3608	+	of not more than Five Thousand Dollars ($5,000.00) Ten Thousand
	3609	+	Dollars ($10,000.00) ; and
	3610	+	2. For a second or subsequent offense, be punished by an
	3611	+	administrative fine of not more than Twenty Thousand Dollars
	3612	+	($20,000.00).
	3613	+	Administrative fines collected pursuant to the provisi ons of
	3614	+	this subsection shall be deposited to the revolving fund created in
	3615	+	Section 305.2 of this title.
	3616	+	E. The Oklahoma Tax Commission shall immediately revoke the
	3617	+	license of a person punished for a violation pursuant to the
	3618	+
	3619	+	ENGR. H. B. NO. 2292 Page 33 1
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	3644	+	provisions of paragraph 3 of s ubsection C of this section or a
	3645	+	person punished for a violation pursuant to the provisions of
	3646	+	subsection D of this section. A person whose license is so revoked
	3647	+	shall not be eligible to receive another license pursuant to the
	3648	+	provisions of Section 301 et seq. of this title for a period of ten
	3649	+	(10) years.
	3650	+	SECTION 47. AMENDATORY 68 O.S. 2011, Section 420.1, is
	3651	+	amended to read as follows:
	3652	+	Section 420.1 A. Each distributor wholesaler of tobacco
	3653	+	products, as defined in Section 401 400 of Title 68 of the Oklahoma
	3654	+	Statutes this title, shall maintain copies of invoices or equivalent
	3655	+	documentation for each of its facilities for every transaction in
	3656	+	which the distributor wholesaler is the seller, purchaser,
	3657	+	consignor, consignee, or recipie nt of tobacco products. The
	3658	+	invoices or documentation shall contain the distributor's
	3659	+	wholesaler’s tobacco license number and the retailer's tobacco
	3660	+	license number if the sale is to a retailer and the quantity by
	3661	+	brand style of the tobacco products involv ed in the transaction .
	3662	+	Each wholesaler shall maintain the documents required by this
	3663	+	subsection for a period of three (3) years .
	3664	+	B. Each retailer of tobacco products, as defined in Section 401
	3665	+	400 of Title 68 of the Oklahoma Statutes this title, shall maintain
	3666	+	copies of invoices or equivalent documentation for every transaction
	3667	+	in which the retailer receives or purchases tobacco products at each
	3668	+
	3669	+	ENGR. H. B. NO. 2292 Page 34 1
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	3694	+	of its facilities. The invoices or documentation shall show the
	3695	+	name and, address and tobacco license number of the distributor
	3696	+	wholesaler from whom, or the address of another facility of the same
	3697	+	retailer from which, the tobacco products were received, the
	3698	+	quantity of each brand style received in such transaction , the date
	3699	+	the tobacco products were received and the retail cigarette license
	3700	+	number or sales tax license number. Each retailer shall maintain
	3701	+	the documents required by this subsection for a period of one (1)
	3702	+	year.
	3703	+	SECTION 48. AMENDATORY 68 O.S. 2011, Section 421, is
	3704	+	amended to read as follows:
	3705	+	Section 421. The sale of such tobacco products under the two
	3706	+	preceding sections paragraph 1 of Section 419 and Section 420 of
	3707	+	this title shall be restricted to sales or distribution to inmates
	3708	+	of such veterans hospitals, or residents of su ch state-operated
	3709	+	domiciliary homes for veterans, as shown by the records thereof, for
	3710	+	their own personal use and consumption. Possession of tobacco
	3711	+	products taxed under this article, which have been purchased or
	3712	+	received from any such veterans hospital o r any such home by any
	3713	+	person other than an inmate or resident thereof, shall be deemed a
	3714	+	misdemeanor and punishable by a fine of Two Hundred Dollars
	3715	+	($200.00) Five Hundred Dollars ($500.00) for each offense.
	3716	+	SECTION 49. AMENDATORY 68 O.S. 2011, Section 422, is
	3717	+	amended to read as follows:
	3718	+
	3719	+	ENGR. H. B. NO. 2292 Page 35 1
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	3743	+
	3744	+	Section 422. All manufacturers, wholesalers, jobbers, or
	3745	+	retailers, or other person, selling or distributing such tobacco
	3746	+	products under the three preceding sections the provisions of this
	3747	+	act shall comply with the provisions of such sections, and the rules
	3748	+	and regulations of the Oklahoma Tax Commission as to such sale or
	3749	+	distribution, and failure to so comply shall constitute grounds for
	3750	+	revocation of any license issued to said manufacturer, the
	3751	+	wholesaler, jobber, or retailer or other person, by the Tax
	3752	+	Commission.
	3753	+	SECTION 50. AMENDATORY 68 O.S. 2011, Section 426, is
	3754	+	amended to read as follows:
1047	3755		Section 426. A. It shall be unlawful for any person knowingly
1048	3756		to ship, transport, receive, possess, sell, distribute or purchase
1049	3757		contraband tobacco products. Any person who engages in shipping,
1050	3758		transporting, receiving, possessing, selling, distributing or
1051	3759		purchasing contraband tobacco products shall, upon conviction, be
1052	3760		guilty of a misdemeanor punishable by a fine of not more than One
1053	3761		Thousand Dollars ($1,000.00) Two Thousand Dollars ($2,000.00) . Any
1054	3762		person convicted of a second or subsequent violation hereof shall be
1055	3763		guilty of a felony and shall be punishable by a fine of not mor e
1056	3764		than Five Thousand Dollars ($5,000.00), by a term of imprisonment in
1057	3765		the State Penitentiary custody of the Department of Corrections for
1058	3766		not more than two (2) years, or by both such fine and imprisonment.
1059	3767
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	3787	+	20
	3788	+	21
	3789	+	22
	3790	+	23
	3791	+	24
	3792	+
1060	3793		B. Any person who knowingly engages in shipping, transporting,
1061	3794		receiving, possessing, selling, distributing or purchasing
1062	3795		contraband tobacco products shall be subject to the forfeiture of
1063	3796		property as is provided by Section 417 of this title and assessment
1064	3797		of penalty as provided thereby and assessment fo r any delinquent
1065	3798		taxes found to be owing.
1066		-
1067		-	SECTION 25. REPEALER 68 O.S. 2011, Sections 406, 408,
	3799	+	SECTION 51. REPEALER 68 O.S. 2011, Sections 406, 408,
1068	3800		409 and 411, are hereby repealed.
1069		-
1070		-	SECTION 26. This act shall become effective July 1, 2021.
1071		-
1072		-	SECTION 27. It being immediately necessary for the preservation
1073		-	of the public peace, health or safety, an emergency is hereby ENR. H. B. NO. 2292 Page 25
	3801	+	SECTION 52. This act shall become effective July 1, 2021.
	3802	+	SECTION 53. It being immediately necessary for the preservation
	3803	+	of the public peace, health or safety, an emergency is hereby
1074	3804		declared to exist, by reason whereof this act shall take effect and
1075	3805		be in full force from and after its passage and approval.
1076		-	ENR. H. B. NO. 2292 Page 26
1077		-	Passed the House of Representatives the 27th day of April, 2021.
	3806	+	Passed the House of Representatives the 10th day of March, 2021.
1078	3807
1079	3808
1080	3809
1081	3810
1082	3811		Presiding Officer of the House
1083	3812		of Representatives
1084	3813
1085	3814
1086		-	Passed the Senate the ~~19th~~ day of ~~April~~, 2021.
	3815	+	Passed the Senate the ___ day of __________, 2021.
1087	3816
1088	3817
1089	3818
1090	3819
1091	3820		Presiding Officer of the Senate
1092	3821
1093		-
1094		-
1095		-	OFFICE OF THE GOVERNOR
1096		-	Received by the Office of the Governor this ____________________
1097		-	day of ___________________, 20_______, at _______ o'clock _______ M.
1098		-	By: _________________________________
1099		-	Approved by the Governor of the State of Oklahoma this _________
1100		-	day of ___________________, 20_______, at _______ o'clock _______ M.
1101		-
1102		-
1103		-	_________________________________
1104		-	Governor of the State of Oklahoma
1105		-
1106		-	OFFICE OF THE SECRETARY OF STATE
1107		-	Received by the Office of the Se cretary of State this __________
1108		-	day of ___________________, 20_______, at _______ o'clock _______ M.
1109		-	By: _________________________________