As Passed by the Senate

127th General Assembly Regular Session 2007-2008

Sub. H. B. No. 500

Representative Hughes 

Cosponsors: Representatives Flowers, Yuko, Letson, Stebelton, Stewart, D., Carmichael, Domenick, Bacon, Batchelder, Brown, Chandler, Collier, Combs, Dyer, Evans, Gerberry, Gibbs, Goyal, Harwood, Heard, Hite, Luckie, Lundy, McGregor, J., Raussen, Sayre, Schindel, Schneider, Setzer, Slesnick, Szollosi, Williams, B., Zehringer 

Senators Fedor, Miller, R., Padgett, Turner, Goodman, Sawyer, Cates 

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A BILL

To amend sections 5703.21 and 5743.08 and to enact

1

sections 3739.01 to 3739.18, 3739.99, 4112.31,

2

and 4112.32 of the Revised Code to establish

3

reduced ignition propensity standards for

4

cigarettes, to authorize the State Fire Marshal

5

to monitor and the Attorney General and the

6

State Fire Marshal to enforce such standards, to

7

establish penalties for violations of such

8

standards, and to establish a New African

9

Immigrants Commission to advocate for the

10

development and implementation of policies and

11

programs to address the needs of the State's

12

sub-Saharan African population.

13

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1.  That sections 5703.21 and 5743.08 be amended and	14
sections 3739.01, 3739.02, 3739.03, 3739.04, 3739.05, 3739.06,	15
3739.07, 3739.08, 3739.09, 3739.10, 3739.11, 3739.12, 3739.13,	16
3739.14, 3739.15, 3739.16, 3739.17, 3739.18, 3739.99, 4112.31,	17
and 4112.32 of the Revised Code be enacted to read as follows:	18

Sec. 3739.01.  As used in this chapter:

19

(A) "Agent" means any person licensed by a county auditor or	20
the tax commissioner to purchase and affix adhesive or meter	21
stamps on packages of cigarettes pursuant to Chapter 5743. of the	22
Revised Code.	23

(B) "Brand family" means all styles of cigarettes sold under	24
the same trademark and differentiated from one another by means of	25
additional modifiers or descriptors, including, but not limited	26
to, "menthol," "lights," "kings," and "100s." "Brand family"	27
includes cigarettes sold under a brand name, whether that name is	28
used alone or in conjunction with any other word, trademark, logo,	29
symbol, motto, selling message, recognizable pattern of colors, or	30
other indicia of product identification identical or similar to,	31
or identifiable with, a previous brand of cigarettes.	32

(C) "Cigarettes" has the same meaning as in division (D)(1)	33
of section 1346.01 of the Revised Code but does not include	34
"roll-your-own" cigarettes as defined in division (D)(2) of that	35
section.	36

(D) "Manufacturer" means either of the following:

37

(1) Any entity or the entity's successor that, in any	38
location, manufactures or otherwise produces cigarettes, or causes	39
cigarettes to be manufactured or produced, that the entity intends	40
to be sold in this state, including, but not limited to,	41
cigarettes intended to be sold in the United States through an	42
importer;	43

(2) Any entity or the entity's successor that meets both of	44
the following criteria:	45

(a) Purchases cigarettes, in any location, from a second	46
entity that manufactures or otherwise produces cigarettes in any	47
location when that second entity does not intend that the	48
cigarettes it manufactures be sold in the United States;	49

(b) Intends to resell the cigarettes described in division	50
(D)(2)(a) of this section in the United States.	51

(E) "Repeatability" means the range of values within which	52
ninety-five per cent of the results of cigarette test trials from	53
a single laboratory will fall.	54

(F) "Retail dealer" has the same meaning as in division	55
(C)(1) of section 5743.01 of the Revised Code.	56

(G) "Quality control and quality assurance program" means the	57
procedures a laboratory implements to ensure both of the	58
following:	59

(1) Operator bias, systematic and nonsystematic	60
methodological errors, and equipment-related problems do not	61
affect cigarette test results.	62

(2) Testing repeatability remains within the required	63
repeatability values for all test trials used by the laboratory to	64
certify cigarettes in accordance with this chapter and is not	65
greater than 0.19.	66

(H) "Sale" has the same meaning as in section 5743.01 of the	67
Revised Code.	68

(I) "Wholesale dealer" means either of the following persons:

69

(1) A person, other than a manufacturer, who sells cigarettes	70
to retail dealers or other persons for purposes of resale;	71

(2) A person who owns, operates, or maintains one or more	72
cigarette vending machines upon premises owned or occupied by any	73
other person.	74

Sec. 3739.02.  Except as otherwise permitted in section	75
3739.12 of the Revised Code, no person shall sell or offer to	76
sell cigarettes in this state or sell or offer to sell	77
cigarettes to persons located in this state unless all of the	78
following requirements are met:	79

(A) The manufacturer of the cigarettes has the cigarettes	80
tested in accordance with the testing method specified in section	81
3739.03 of the Revised Code or the testing method approved by the	82
state fire marshal under section 3739.04 of the Revised Code.	83

(B) The cigarettes meet the performance standard specified	84
under division (B) of section 3739.03 of the Revised Code or the	85
performance standard approved by the state fire marshal under	86
section 3739.04 of the Revised Code.	87

(C) The manufacturer has marked the packaging of the	88
cigarettes as required in section 3739.06 of the Revised Code.	89

(D) The manufacturer files a written certification with the	90
state fire marshal as required under section 3739.07 of the	91
Revised Code.	92

Sec. 3739.03.  (A) A manufacturer shall have a laboratory	93
conduct the testing required under division (B) of this section.	94
The laboratory that the manufacturer uses for the testing shall be	95
accredited pursuant to the international organization for	96
standardization and international electrotechnical commission	97
standard 17025 of the international organization for	98
standardization, or another comparable accreditation standard	99
required by the state fire marshal. The laboratory shall implement	100
a quality control and quality assurance program and shall use that	101
program when conducting the testing required under division (B) of	102
this section.	103

(B) A manufacturer shall have the laboratory described in	104
division (A) of this section test the manufacturer's cigarettes in	105
accordance with all of the following requirements:	106

(1) The laboratory shall test the cigarettes in accordance	107
with the American society of testing and materials standard	108
E2187-04, titled "standard test method for measuring ignition	109
strength of cigarettes" or any subsequent standard adopted by the	110
state fire marshal in accordance with division (E) of this	111
section.	112

(2) The laboratory shall test the cigarettes on ten layers of	113
filter paper.	114

(3) Not more than twenty-five per cent of the cigarettes	115
tested in a test trial shall exhibit full-length burns.	116

(C) The performance standard required under division (B)(3)	117
of this section shall apply only to a complete test trial. For	118
purposes of this division and division (B)(3) of this section,	119
"test trial" means forty replicate tests for each type of	120
cigarette tested.	121

(D) The requirements described in division (B) of this	122
section shall not be construed to require additional cigarette	123
testing if a manufacturer tests cigarettes in accordance with the	124
requirements listed in that division for any other purposes other	125
than the purposes specified in that division.	126

(E) The state fire marshal may adopt any American society of	127
testing and materials standard used to measure the ignition	128
strength of cigarettes that takes effect after the effective date	129
of this section if the state fire marshal determines that that	130
subsequent standard does not result in a change in the percentage	131
of full-length burns exhibited by any tested cigarette when	132
compared to the percentage of full-length burns the same cigarette	133
would exhibit when tested using the American society of testing	134
and materials standard E2187-04 referenced in division (B)(1) of	135
this section and the performance standard specified in division	136
(B)(3) of this section.	137

Sec. 3739.04.  (A) If a manufacturer manufactures a cigarette	138
that the state fire marshal determines cannot be tested in	139
accordance with division (B) of section 3739.03 of the Revised	140
Code, the state fire marshal shall require the manufacturer to	141
propose and submit a test method and performance standard for the	142
cigarette to the state fire marshal for approval. If the state	143
fire marshal determines that the test method and performance	144
standard proposed by the manufacturer are equivalent to the test	145
method and performance standard prescribed in division (B) of	146
section 3739.03 of the Revised Code, the state fire marshal shall	147
approve the proposed test method and performance standard, and	148
the manufacturer may use that test method and performance	149
standard to certify the cigarettes pursuant to section 3739.07 of	150
the Revised Code.	151

(B) If the state fire marshal determines that another state	152
has enacted reduced cigarette ignition propensity standards that	153
include a test method and performance standard that are the same	154
as those specified in section 3739.03 of the Revised Code and	155
that the officials responsible for implementing those standards	156
have determined that the alternative test method and performance	157
standard for a particular cigarette proposed by the manufacturer	158
under division (A) of this section satisfies the standards for	159
that state's law or regulation under a statute or regulation that	160
is comparable to this section, the state fire marshal shall	161
authorize the manufacturer to use that alternative test method and	162
performance standard to certify the manufacturer's cigarettes for	163
sale in this state. The state fire marshal is not required to	164
approve an alternative test method and performance standard	165
approved in another state if the state fire marshal demonstrates a	166
reasonable basis for why that alternative test method and	167
performance standard should not be approved under this section.	168

All other applicable requirements of this chapter apply to a	169
manufacturer authorized to use an alternative test method and	170
performance standard under this section.	171

Sec. 3739.05.  (A) Each manufacturer shall maintain copies	172
of the reports of all tests conducted on all cigarettes offered	173
for sale in this state for a period of three years after a test	174
is concluded, and shall make copies of these reports available to	175
the state fire marshal and the attorney general upon receipt of a	176
written request from the state fire marshal or attorney general.	177

(B) No manufacturer shall fail to make these copies available	178
to the state fire marshal or attorney general within sixty days	179
after receiving such a request from the state fire marshal or the	180
attorney general.	181

Sec. 3739.06.  (A) A manufacturer, shall place a marking on	182
each package of cigarettes that is certified under section 3739.07	183
of the Revised Code. The marking shall be in eight-point type or	184
larger, permanently printed, stamped, engraved, or embossed upon	185
the cigarette package or cellophane wrap at or near the UPC code	186
on the package, and consist of only the letters "FSC" that shall	187
signify "fire standards compliant."	188

(B) A manufacturer shall include the approved mark on each	189
package of cigarettes that is certified under section 3739.07 of	190
the Revised Code to indicate compliance with the requirements of	191
this chapter. A manufacturer shall use such marking for all of	192
the cigarettes the manufacturer sells and shall apply the marking	193
uniformly to all packages, including, but not limited to, packs,	194
cartons, cases, and brands sold by that manufacturer.	195

Sec. 3739.07.  (A) Each manufacturer shall submit to the	196
state fire marshal a written certification that each type of	197
cigarette listed in the certification has been tested in	198
accordance with division (B) of section 3739.03 or section 3739.04	199
of the Revised Code and each type of cigarette listed in the	200
certification meets the performance standard set forth in division	201
(B) of section 3739.03 of the Revised Code or approved under	202
section 3739.04 of the Revised Code.	203

(B) A manufacturer shall include in the written certification	204
the manufacturer submits under division (A) of this section all of	205
the following information for each type of cigarette listed in the	206
certification:	207

(1) The brand or trade name on the cigarette package;

208

(2) The style of cigarette;

209

(3) The length of the cigarette in millimeters;

210

(4) The circumference of the cigarette in millimeters;

211

(5) The flavor of the cigarette, if applicable;

212

(6) Whether the cigarette is filter or nonfilter;

213

(7) A description of the package;

214

(8) The marking the manufacturer uses that the state fire	215
marshal approved in accordance with section 3739.06 of the Revised	216
Code;	217

(9) The name, address, and telephone number of the	218
laboratory, if different than the manufacturer, that conducted the	219
test of the cigarette;	220

(10) The date that the testing of the cigarette occurred.

221

(C) A manufacturer shall make the written certification	222
required under division (A) of this section available to the	223
attorney general and the tax commissioner for the purposes of	224
ensuring compliance with this chapter.	225

(D) No manufacturer shall submit a false certification to the	226
state fire marshal.	227

Sec. 3739.08.  Each cigarette a manufacturer lists in a	228
certification submitted pursuant to section 3739.07 of the Revised	229
Code for which the manufacturer uses lowered permeability bands in	230
the cigarette paper to comply with the testing requirements	231
described in division (B) of section 3739.03 of the Revised Code	232
shall have either of the following bands surrounding the tobacco	233
column:	234

(A) For cigarettes on which bands are not positioned by	235
design, at least two nominally identical bands, one of which shall	236
be located at least fifteen millimeters from the lighting end of	237
the cigarette;	238

(B) For cigarettes on which bands are positioned by design,	239
at least two bands, one of which is located at least fifteen	240
millimeters from the lighting end of the cigarette and the other	241
of which is located in either of following places:	242

(1) For filtered cigarettes, ten millimeters from the filter	243
end of the tobacco column;	244

(2) For nonfiltered cigarettes, ten millimeters from the	245
labeled end of the tobacco column.	246

Sec. 3739.09.  A manufacturer shall recertify each cigarette	247
the manufacturer certifies pursuant to section 3739.07 of the	248
Revised Code every three years. A manufacturer that certifies a	249
cigarette in accordance with that section and that subsequently	250
makes any change to that cigarette that alters the cigarette in	251
such a way that the manufacturer knows that the cigarette is	252
likely to no longer meet the standard specified in section	253
3739.03 of the Revised Code or the standard approved under	254
section 3739.04 of the Revised Code shall not sell or offer to	255
sell that cigarette in this state until the manufacturer retests	256
the cigarette in accordance with the testing standards specified	257
in section 3739.03 of the Revised Code or approved under section	258
3739.04 of the Revised Code. The manufacturer shall maintain	259
records of that retesting in the same manner as the manufacturer	260
maintains records under section 3739.05 of the Revised Code. A	261
manufacturer shall not sell in this state any altered cigarette	262
that does not meet either the performance standard set forth in	263
division (B)(3) of section 3739.03 of the Revised Code or the	264
performance standard approved under section 3739.04 of the	265
Revised Code.	266

Sec. 3739.10.  A manufacturer that certifies its cigarettes	267
in accordance with section 3739.07 of the Revised Code shall	268
provide a copy of the certifications to each wholesale dealer and	269
agent to which the manufacturer sells cigarettes and shall provide	270
sufficient copies of an illustration of the package marking used	271
by the manufacturer pursuant to section 3739.06 of the Revised	272
Code for each retail dealer to which the wholesale dealer or agent	273
sells cigarettes. Each wholesale dealer and agent who receives a	274
copy of a manufacturer's certification and copies of the	275
manufacturer's illustration shall provide to each retail dealer to	276
which the wholesale dealer and agent sell the manufacturer's	277
cigarettes a copy of the illustration provided to the wholesale	278
dealer or agent by the manufacturer. A wholesale dealer, agent,	279
or retail dealer shall allow the state fire marshal, the tax	280
commissioner, and the attorney general to inspect the markings of	281
cigarette packaging marked in accordance with section 3739.06 of	282
the Revised Code.	283

Sec. 3739.11.  The state fire marshal may conduct testing on	284
cigarettes certified by a manufacturer pursuant to section 3739.07	285
of the Revised Code to determine whether the manufacturer complied	286
with the requirements of this chapter. The state fire marshal	287
shall conduct any such testing in accordance with division (B) of	288
section 3739.03 of the Revised Code.	289

Whenever the state fire marshal or a designee of the state	290
fire marshal discovers any cigarettes that do not include a mark	291
as required under section 3739.06 of the Revised Code, or for	292
which no certification has been filed in accordance with section	293
3739.07 of the Revised Code, the state fire marshal or the state	294
fire marshal's designee may seize and take possession of such	295
cigarettes and shall give such cigarettes to the tax	296
commissioner, and such cigarettes thereupon shall be forfeited to	297
the state. The tax commissioner shall order the destruction of	298
any cigarettes forfeited pursuant to this section, but prior to	299
the destruction of any cigarette forfeited pursuant to this	300
section, the true holder of the trademark rights in the cigarette	301
brand shall be permitted to inspect the cigarette.	302

In addition to any other remedy provided by law, if the state	303
fire marshal or attorney general determines that reasonable	304
evidence exists that a violation of this chapter has occurred, the	305
state fire marshal or attorney general may file an action in the	306
court of common pleas in the county where the alleged violation	307
occurred. The action may include a petition for preliminary or	308
permanent injunctive relief against any manufacturer, importer,	309
wholesale dealer, retail dealer, agent, or any other person or	310
entity to enjoin such entity from selling, offering to sell, or	311
affixing tax stamps to any cigarette that does not comply with the	312
requirements of this chapter, or a claim to recover any costs or	313
damages suffered by the state because a violation of this	314
chapter occurred, including enforcement costs relating to the	315
specific violation and attorney's fees. Each violation of this	316
chapter or the rules adopted pursuant to it constitutes a	317
separate civil violation for which the state fire marshal may	318
obtain relief. Upon obtaining judgment for injunctive relief	319
under this section, the state fire marshal shall provide a copy	320
of the judgment to all wholesale dealers and agents to which the	321
cigarette has been sold.	322

To enforce the requirements of this chapter, the state fire	323
marshal may examine the books, papers, invoices, and other	324
business records of any person in possession or control of, or	325
occupying any premises where cigarettes are placed, stored,	326
sold, or offered for sale, including the stock of cigarettes on	327
the premises, if the state fire marshal reasonably suspects that	328
a violation of this chapter has occurred. Every person in the	329
possession or control of, or occupying any premises where	330
cigarettes are placed, sold, or offered for sale shall give to	331
the state fire marshal the means, facilities, and opportunity	332
for the examinations authorized under this section.	333

The tax commissioner, in the regular course of conducting	334
inspections of wholesale dealers, agents, and retail dealers, as	335
authorized under section 5743.14 of the Revised Code, may inspect	336
any cigarette packaging to determine if the package is marked as	337
required under section 3739.06 of the Revised Code. If a package	338
containing cigarettes is not marked, the tax commissioner shall	339
notify the state fire marshal of this fact.	340

Sec. 3739.12.  (A) Nothing in this chapter shall be construed	341
to prohibit any person or entity from manufacturing or selling	342
cigarettes that do not meet the requirements specified in this	343
chapter if the cigarette's packaging is or will be stamped for	344
sale in another state or is packaged for sale outside of the	345
United States, and that person or entity has taken reasonable	346
steps to ensure that those cigarettes will not be sold or offered	347
for sale to persons located in this state.	348

(B) The requirements of sections 3739.02 to 3739.10 of the	349
Revised Code shall not prohibit a wholesale dealer or retail	350
dealer of cigarettes from selling the dealer's inventory of	351
cigarettes in existence on or after the effective date of this	352
section if the dealer establishes both of the following:	353

(1) That the state tax stamps were affixed to the cigarettes	354
prior to the effective date of this section;	355

(2) That the inventory that was purchased prior to the	356
effective date of this section is comparable in quantity to the	357
inventory purchased during the same period of the prior year.	358

(C) Nothing in this chapter shall be construed to prohibit	359
the sale of cigarettes solely for the purpose of consumer testing.	360
For purposes of this division, "consumer testing" means an	361
assessment of cigarettes that is conducted by a manufacturer or	362
under the control and direction of a manufacturer for the purpose	363
of evaluating consumer acceptance of such cigarettes, utilizing	364
only the quantity of cigarettes that is reasonably necessary for	365
such assessment.	366

Sec. 3739.13.  The implementation and substance of the New	367
York fire safety standards for cigarettes shall be persuasive	368
authority in implementing this chapter. The state fire marshal and	369
attorney general may adopt rules, pursuant to Chapter 119. of the	370
Revised Code, as necessary to administer this chapter. The tax	371
commissioner may adopt rules, pursuant to division (M) of section	372
5703.05 of the Revised Code and section 5703.14 of the Revised	373
Code, as necessary to enforce this chapter.	374

Sec. 3739.14.  The state fire marshal shall periodically	375
evaluate the effectiveness of this chapter. The state fire marshal	376
shall submit a report that consists of the state fire marshal's	377
findings to the general assembly on the first day of the	378
forty-ninth month after the effective date of this section, and	379
every three years after that date.	380

Sec. 3739.15.  Notwithstanding any provision of law to the	381
contrary, no political subdivision of this state may enact or	382
enforce any ordinance or other local law or regulation that	383
conflicts with or preempts this chapter or any policy of this	384
state expressed in this chapter.	385

Sec. 3739.16.  No person is required to comply with this	386
chapter or the rules adopted pursuant to it if a federal reduced	387
cigarette ignition propensity standard that preempts this chapter	388
or rules adopted under it is adopted and becomes effective.	389

Sec. 3739.17. In addition to any other immunities, defenses,	390
and exclusions provided under the Revised Code, the state, the	391
department of taxation, the department of commerce, the division	392
of the fire marshal within the department of commerce, and any	393
employees of the state, either department, or the division, are	394
immune from liability in any civil action or proceeding arising	395
from the performance or nonperformance of any duties specified in	396
this chapter that the state, either department, the division, or	397
any employees of the state, either department, or division are	398
required to perform. In no event shall the state, either	399
department, division, or any employees of the state, either	400
department, or division be liable to any person for any claims	401
for injury or damages, including, but not limited to, claims for	402
indirect, consequential, incidental, special, or punitive damages	403
or claims for lost profits, arising from the performance or	404
nonperformance of the duties specified in this chapter that the	405
state, either department, division, or employees of the state,	406
either department, or division are required to perform.	407

Sec. 3739.18. (A) A manufacturer shall pay the state fire	408
marshal a fee of one thousand dollars or an adjusted fee pursuant	409
to division (B) of this section for each type of brand family	410
included in a certification required under division (A) of	411
section 3739.07 of the Revised Code. The fee for each type of	412
brand family includes any new cigarette certified under this	413
chapter within that brand family during the three-year	414
certification period described in section 3739.09 of the Revised	415
Code.	416

(B) The state fire marshal may adjust the fee described in	417
division (A) of this section annually to ensure the fee is	418
sufficient to defray the actual costs of processing, testing,	419
enforcing, and overseeing the activities required under this	420
chapter. The fee as adjusted by the state fire marshal pursuant to	421
this division shall not exceed two thousand five hundred dollars	422
for each type of brand family.	423

(C) There is hereby created in the state treasury the reduced	424
cigarette ignition propensity and firefighter protection act	425
enforcement fund. The fund shall consist of all certification fees	426
submitted by manufacturers and any other moneys made available to	427
the state fire marshal specifically to support processing	428
certifications, testing, enforcing, and overseeing activities	429
conducted pursuant to this chapter. The state fire marshal shall	430
use the fund only for the activities specified in this division.	431

(D) There is hereby created in the state treasury the fire	432
prevention and public safety fund. Moneys collected from penalties	433
assessed under divisions (B) to (E) of section 3739.99 of the	434
Revised Code shall be deposited into the fund. The state fire	435
marshal shall use this fund to support fire safety and prevention	436
programs. If the department of taxation has expenses for the	437
storage or destruction of cigarettes as required by this chapter,	438
the state fire marshall also may use the fund to compensate the	439
department of taxation for those expenses.	440

Sec. 3739.99.  (A) A manufacturer who violates division (B)	441
of section 3739.05 of the Revised Code shall be subject to a civil	442
penalty not to exceed ten thousand dollars for each day after the	443
sixtieth day that the manufacturer fails to comply with that	444
division.	445

(B) A manufacturer, wholesale dealer, agent, or any other	446
person other than a retail dealer who knowingly sells or offers to	447
sell cigarettes in violation of section 3739.02 of the Revised	448
Code is liable for a civil penalty not to exceed one hundred	449
dollars per each pack of such cigarettes sold or offered for sale,	450
provided that in no case shall the penalty against any such	451
person or entity exceed one hundred thousand dollars during any	452
thirty-day period.	453

(C) A retail dealer who knowingly violates section 3739.02 of	454
the Revised Code is liable for a civil penalty not to exceed one	455
hundred dollars per each pack of cigarettes sold or offered for	456
sale, provided that in no case shall the penalty against any	457
retail dealer exceed twenty-five thousand dollars for sales or	458
offers to sell during any thirty-day period.	459

(D) A manufacturer that is a corporation, partnership, sole	460
proprietorship, limited partnership, or association who knowingly	461
violates division (D) of section 3739.07 of the Revised Code is	462
liable for a civil penalty of at least seventy-five thousand	463
dollars, not to exceed two hundred fifty thousand dollars for	464
each such violation, in addition to any other penalty prescribed	465
by law.	466

(E) Any person who violates any provision of this chapter	467
other than section 3739.02, division (B) of section 3739.05, and	468
division (D) of section 3739.07 of the Revised Code, for a first	469
offense is liable for a civil penalty not to exceed one thousand	470
dollars for each violation and for a subsequent offense is	471
liable for a civil penalty not to exceed five thousand dollars	472
for each violation.	473

Sec. 4112.31.  The new African immigrants commission shall	474
do all of the following:	475

(A) Gather and disseminate information and conduct hearings,	476
conferences, investigations, and special studies on problems and	477
programs concerning sub-Saharan African people;	478

(B) Secure appropriate recognition of the accomplishments and	479
contributions of sub-Saharan African people to this state;	480

(C) Stimulate public awareness of the problems of sub-Saharan	481
African people by conducting a program of public education;	482

(D) Develop, coordinate, and assist other public and private	483
organizations that serve sub-Saharan African people, including the	484
conducting of training programs for community leadership and	485
service project staff;	486

(E) Advise the governor, general assembly, and state	487
departments and agencies of the nature, magnitude, and priorities	488
of the problems of sub-Saharan African people;	489

(F) Advise the governor, general assembly, and state	490
departments and agencies on, and assist in the development and	491
implementation of, comprehensive and coordinated policies,	492
programs, and procedures focusing on the special problems and	493
needs of sub-Saharan African people, especially in the fields of	494
education, employment, energy, health, housing, welfare, and	495
recreation;	496

(G) Propose new programs concerning sub-Saharan African	497
people to public and private agencies and evaluate for such	498
agencies existing programs or prospective legislation concerning	499
sub-Saharan African people;	500

(H) Review and approve grants to be made from federal, state,	501
or private funds that are administered or subcontracted by the	502
commission;	503

(I) Prepare, review, and approve an annual report;

504

(J) Serve as a clearinghouse to review and comment on all	505
proposals to meet the needs of sub-Saharan African people that are	506
submitted to it by public and private agencies;	507

(K) Apply for and accept grants and gifts from governmental	508
and private sources to be administered by the commission or	509
subcontracted to local agencies;	510

(L) Monitor and evaluate all programs subcontracted to local	511
agencies by the commission;	512

(M) Endeavor to assure that sub-Saharan African people have	513
access to decision-making bodies in all state and local	514
governmental departments and agencies;	515

(N) Establish advisory committees on special subjects as	516
needed to facilitate and maximize community participation in the	517
operation of the commission;	518

(O) Establish with state and local governments and private	519
business and industry relationships that promote and assure equal	520
opportunity for sub-Saharan African people in government,	521
education, and employment.	522

(P) Create an interagency council consisting of the following	523
persons or their authorized representatives: one member of the	524
senate appointed by the president of the senate; one member of the	525
house of representatives appointed by the speaker of the house of	526
representatives; the directors of administrative services,	527
agriculture, education, development, health, highway safety, job	528
and family services, liquor control, mental health, mental	529
retardation and developmental disabilities, natural resources,	530
rehabilitation and correction, youth services, transportation,	531
environmental protection, and budget and management; the	532
chairperson of the Ohio civil rights commission, the	533
administrators of the bureau of workers' compensation and the	534
rehabilitation services commission, and an additional member of	535
the governor's cabinet appointed by the governor. The new African	536
immigrants commission, by rule, may designate other state officers	537
or their representatives to be members of the council. The	538
director of the commission shall be the chairperson of the	539
council.	540

The interagency council shall provide and coordinate the	541
exchange of information relative to the needs of sub-Saharan	542
African people and promote the delivery of state services to such	543
people. The council shall meet at the call of the chairperson.	544

Advisory committees shall be composed of persons representing	545
community organizations and charitable institutions, public	546
officials, and such other persons as the commission determines.	547

Sec. 4112.32.  There is hereby created the new African	548
immigrants commission consisting of eleven members appointed by	549
the governor with the advice and consent of the senate. The	550
speaker of the house of representatives shall recommend to the	551
governor two persons for appointment to the commission, the	552
president of the senate shall recommend to the governor two such	553
persons, and the minority leaders of the house and senate shall	554
each recommend to the governor one such person. The governor shall	555
make initial appointments to the commission. Of the initial	556
appointments made to the commission, three shall be for a term	557
ending October 7, 2009, four shall be for a term ending October 7,	558
2010, and four shall be for a term ending October 7, 2011.	559
Thereafter, terms of office shall be for three years, each term	560
ending on the same day of the same month of the year as did the	561
term which it succeeds. Each member shall hold office from the	562
date of appointment until the end of the term for which the member	563
was appointed. Vacancies shall be filled in the same manner as the	564
original appointment. Any member appointed to fill a vacancy	565
occurring prior to the expiration of the term for which the	566
member's predecessor was appointed shall hold office for the	567
remainder of such term. Any member shall continue in office	568
subsequent to the expiration date of the member's term until the	569
member's successor takes office, or until a period of sixty days	570
has elapsed, whichever occurs first. At the first organizational	571
meeting of the commission, the original eleven members shall draw	572
lots to determine the length of the term each member shall serve.	573

All members of the commission shall be of sub-Saharan African	574
origin, and shall be American citizens or lawful, permanent,	575
resident aliens. Members shall be from urban, suburban, and rural	576
geographical areas representative of sub-Saharan African people	577
with a numerical and geographical balance of the sub-Saharan	578
African population throughout the state.	579

The commission shall elect a chairperson, vice-chairperson,	580
and other officers from among its members as it considers	581
advisable. Six members constitute a quorum. The commission shall	582
adopt rules governing its procedures. No action of the commission	583
is valid without the concurrence of six members.	584

Members shall not be compensated for work as members of the	585
commission.	586

Sec. 5743.08.  Whenever the tax commissioner discovers any	587
cigarettes which are being shipped, or which have been shipped, or	588
transported in violation of section 2927.023 of the Revised Code,	589
or discovers cigarettes, subject to the taxes levied under section	590
5743.02, 5743.021, 5743.024, or 5743.026 of the Revised Code, and	591
upon which the taxes have not been paid or that are held for sale	592
or distribution in violation of any other provision of this	593
chapter, the commissioner may seize and take possession of such	594
cigarettes, which shall thereupon be forfeited to the state, and	595
the commissioner, within a reasonable time thereafter shall sell	596
or destroy the forfeited cigarettes. If the commissioner takes	597
possesssion of cigarettes seized pursuant to section 3739.11 of	598
the Revised Code, such cigarettes shall be forfeited to the state,	599
and the commissioner shall destroy such cigarettes, except prior	600
to the destruction of any such cigarettes, the true holder of the	601
trademark rights in the cigarette brand shall be permitted to	602
inspect the cigarettes. If the commissioner sells cigarettes under	603
this section, the commissioner shall use proceeds from the sale to	604
pay the costs incurred in the proceedings. Any proceeds remaining	605
after all costs have been paid shall be considered revenue arising	606
from the taxes levied under this chapter. Seizure and sale shall	607
not be deemed to relieve any person from the fine or imprisonment	608
provided for violation of sections 5743.01 to 5743.20 of the	609
Revised Code or from a civil penalty under section 3739.99 of the	610
Revised Code. A sale shall be made where it is most convenient	611
and economical. The tax commissioner may order the destruction of	612
the forfeited cigarettes if the quantity or quality of the	613
cigarettes is not sufficient to warrant their sale.	614

Sec. 5703.21.  (A) Except as provided in divisions (B) and	615
(C) of this section, no agent of the department of taxation,	616
except in the agent's report to the department or when called on	617
to testify in any court or proceeding, shall divulge any	618
information acquired by the agent as to the transactions,	619
property, or business of any person while acting or claiming to	620
act under orders of the department. Whoever violates this	621
provision shall thereafter be disqualified from acting as an	622
officer or employee or in any other capacity under appointment or	623
employment of the department.	624

(B)(1) For purposes of an audit pursuant to section 117.15 of	625
the Revised Code, or an audit of the department pursuant to	626
Chapter 117. of the Revised Code, or an audit, pursuant to that	627
chapter, the objective of which is to express an opinion on a	628
financial report or statement prepared or issued pursuant to	629
division (A)(7) or (9) of section 126.21 of the Revised Code, the	630
officers and employees of the auditor of state charged with	631
conducting the audit shall have access to and the right to examine	632
any state tax returns and state tax return information in the	633
possession of the department to the extent that the access and	634
examination are necessary for purposes of the audit. Any	635
information acquired as the result of that access and examination	636
shall not be divulged for any purpose other than as required for	637
the audit or unless the officers and employees are required to	638
testify in a court or proceeding under compulsion of legal	639
process. Whoever violates this provision shall thereafter be	640
disqualified from acting as an officer or employee or in any other	641
capacity under appointment or employment of the auditor of state.	642

(2) For purposes of an internal audit pursuant to section	643
126.45 of the Revised Code, the officers and employees of the	644
office of internal auditing in the office of budget and management	645
charged with conducting the internal audit shall have access to	646
and the right to examine any state tax returns and state tax	647
return information in the possession of the department to the	648
extent that the access and examination are necessary for purposes	649
of the internal audit. Any information acquired as the result of	650
that access and examination shall not be divulged for any purpose	651
other than as required for the internal audit or unless the	652
officers and employees are required to testify in a court or	653
proceeding under compulsion of legal process. Whoever violates	654
this provision shall thereafter be disqualified from acting as an	655
officer or employee or in any other capacity under appointment or	656
employment of the office of internal auditing.	657

(3) As provided by section 6103(d)(2) of the Internal Revenue	658
Code, any federal tax returns or federal tax information that the	659
department has acquired from the internal revenue service, through	660
federal and state statutory authority, may be disclosed to the	661
auditor of state or the office of internal auditing solely for	662
purposes of an audit of the department.	663

(4) For purposes of Chapter 3739. of the Revised Code, an	664
agent of the department of taxation may share information with the	665
division of state fire marshal that the agent finds during the	666
course of an investigation.	667

(C) Division (A) of this section does not prohibit any of the	668
following:	669

(1) Divulging information contained in applications,	670
complaints, and related documents filed with the department under	671
section 5715.27 of the Revised Code or in applications filed with	672
the department under section 5715.39 of the Revised Code;	673

(2) Providing information to the office of child support	674
within the department of job and family services pursuant to	675
section 3125.43 of the Revised Code;	676

(3) Disclosing to the board of motor vehicle collision repair	677
registration any information in the possession of the department	678
that is necessary for the board to verify the existence of an	679
applicant's valid vendor's license and current state tax	680
identification number under section 4775.07 of the Revised Code;	681

(4) Providing information to the administrator of workers'	682
compensation pursuant to sections 4123.271 and 4123.591 of the	683
Revised Code;	684

(5) Providing to the attorney general information the	685
department obtains under division (J) of section 1346.01 of the	686
Revised Code;	687

(6) Permitting properly authorized officers, employees, or	688
agents of a municipal corporation from inspecting reports or	689
information pursuant to rules adopted under section 5745.16 of the	690
Revised Code;	691

(7) Providing information regarding the name, account number,	692
or business address of a holder of a vendor's license issued	693
pursuant to section 5739.17 of the Revised Code, a holder of a	694
direct payment permit issued pursuant to section 5739.031 of the	695
Revised Code, or a seller having a use tax account maintained	696
pursuant to section 5741.17 of the Revised Code, or information	697
regarding the active or inactive status of a vendor's license,	698
direct payment permit, or seller's use tax account;	699

(8) Releasing invoices or invoice information furnished under	700
section 4301.433 of the Revised Code pursuant to that section;	701

(9) Providing to a county auditor notices or documents	702
concerning or affecting the taxable value of property in the	703
county auditor's county. Unless authorized by law to disclose	704
documents so provided, the county auditor shall not disclose such	705
documents;	706

(10) Providing to a county auditor sales or use tax return or	707
audit information under section 333.06 of the Revised Code;	708

(11) Subject to section 4301.441 of the Revised Code,	709
disclosing to the appropriate state agency information in the	710
possession of the department of taxation that is necessary to	711
verify a permit holder's gallonage or noncompliance with taxes	712
levied under Chapter 4301. or 4305. of the Revised Code.	713

(12) Disclosing to the department of natural resources	714
information in the possession of the department that is necessary	715
to verify the taxpayer's compliance with division (A)(1), (8), or	716
(9) of section 5749.02 of the Revised Code.	717

Section 2.  That existing sections 5703.21 and 5743.08 of the	718
Revised Code are hereby repealed.	719

Section 3. Division (B) of section 3739.05, division (D) of	720
section 3739.07, and sections 3739.02, 3739.09, 3739.11, 3739.12,	721
and 3739.99 of the Revised Code, as enacted by this act, shall	722
take effect on the first day of the thirteenth month after the	723
effective date of this act.	724

Section 4.  Section 5703.21 of the Revised Code is presented	725
in this act as a composite of the section as amended by both Am.	726
Sub. H.B. 562 and Sub. S.B. 150 of the 127th General Assembly.	727
The General Assembly, applying the principle stated in division	728
(B) of section 1.52 of the Revised Code that amendments are to be	729
harmonized if reasonably capable of simultaneous operation, finds	730
that the composite is the resulting version of the section in	731
effect prior to the effective date of the section as presented in	732
this act.	733