As Introduced

127th General Assembly Regular Session 2007-2008

H. B. No. 572

Representative Yates 

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A BILL

To amend sections 3701.84, 5743.51, 5743.62, and

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5743.63 and to enact section 5743.511 of the

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Revised Code to create the Center for Tobacco Use

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Prevention in the Department of Health to exercise

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duties of the former Tobacco Use Prevention and

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Control Foundation that were transferred to the

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Department, and to fund the Center's operations

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with an increased rate of tax on noncigarette

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tobacco products.

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

Section 1. That sections 3701.84, 5743.51, 5743.62, and	10
5743.63 be amended and section 5743.511 of the Revised Code be	11
enacted to read as follows:	12

Sec. 3701.84. There is hereby created the center for tobacco	13
use prevention within the department of health. The department of	14
health maycenter shall prepare a plan to reduce tobacco use by	15
Ohioans, with emphasis on reducing the use of tobacco by youth,	16
minority and regional populations, pregnant women, and others who	17
may be disproportionately affected by the use of tobacco. The	18
plan may provide for periodic surveys to measure tobacco use and	19
behavior toward tobacco use by Ohioans. If the department	20
prepares a plan, copiesCopies of the plan shall be available to	21
the public.	22

The plan may also describe youth tobacco consumption	23
prevention programs to be eligible for consideration for grants	24
from the departmentcenter and may set forth the criteria by which	25
applications for grants for such programs will be considered by	26
the departmentcenter. Programs eligible for consideration may	27
include:	28

(A) Media campaigns directed to youth to prevent underage	29
tobacco consumption;	30

(B) School-based education programs to prevent youth tobacco	31
consumption;	32

(C)(B) Community-based youth programs involving youth tobacco	33
consumption prevention through general youth development;	34

(D)(C) Retailer education and compliance efforts to prevent	35
youth tobacco consumption;	36

(E)(D) Mentoring programs designed to prevent or reduce	37
tobacco use by students.	38

Pursuant to the plan, the department maycenter shall carry	39
out, or provide funding for private or public agencies to carry	40
out, research and programs related to tobacco use prevention and	41
cessation. If the department provides such funding, the department	42
The center shall establish an objective process to determine	43
which research and program proposals to fund. When appropriate,	44
proposals for research shall be peer-reviewed. No program shall	45
be carried out or funded by the departmentcenter unless there is	46
research that indicates that the program is likely to achieve the	47
results desired. All research and programs funded by the	48
departmentcenter shall be goal-oriented and independently and	49
objectively evaluated annually on whether it is meeting its	50
goals. The departmentcenter shall contract for such evaluations,	51
and the department shall adopt rules under Chapter 119. of the	52
Revised Code regarding conflicts of interest in the research and	53
programs itthe center funds.	54

The departmentcenter shall endeavor to coordinate its	55
research and programs with the efforts of other agencies of this	56
state to reduce tobacco use by Ohioans. Any state agency that	57
conducts a survey that measures tobacco use or behavior toward	58
tobacco use by Ohioans shall share the results of the survey with	59
the departmentcenter.	60

The center's operating and other expenses shall be paid from	61
money appropriated from the tobacco use prevention and cessation	62
fund created by section 5743.511 of the Revised Code, and from any	63
other sources authorized by law.	64

The department may adopt rules under Chapter 119. of the	65
Revised Code as necessary to implement this section.	66

Sec. 5743.51.  (A) To provide revenue for the general revenue	67
fund of the state and the tobacco use prevention and cessation	68
fund established under section 5743.511 of the Revised Code, an	69
excise tax on tobacco products is hereby levied at the rate of	70
seventeenfifty-four and eight-tenths per cent of the wholesale	71
price of the tobacco product received by a distributor or sold by	72
a manufacturer to a retail dealer located in this state. Each	73
distributor who brings tobacco products, or causes tobacco	74
products to be brought, into this state for distribution within	75
this state, or any out-of-state distributor who sells tobacco	76
products to wholesale or retail dealers located in this state for	77
resale by those wholesale or retail dealers is liable for the tax	78
imposed by this section. Only one sale of the same article shall	79
be used in computing the amount of the tax due.	80

(B) The treasurer of state shall place to the credit of the	81
tax refund fund created by section 5703.052 of the Revised Code,	82
out of the receipts from the tax levied by this section, amounts	83
equal to the refunds certified by the tax commissioner pursuant to	84
section 5743.53 of the Revised Code. The treasurer shall place to	85
the credit of the tobacco use prevention and cessation fund	86
created by section 5743.511 of the Revised Code an amount equal to	87
sixty-nine per cent of the receipts from the tax levied by this	88
section. The balance of the taxes collected under this section	89
shall be paid into the general revenue fund.	90

(C) The commissioner may adopt rules as are necessary to	91
assist in the enforcement and administration of sections 5743.51	92
to 5743.66 of the Revised Code, including rules providing for the	93
remission of penalties imposed.	94

(D) A manufacturer is not liable for payment of the tax	95
imposed by this section for sales of tobacco products to a retail	96
dealer that has filed a signed statement with the manufacturer in	97
which the retail dealer agrees to pay and be liable for the tax,	98
as long as the manufacturer has provided a copy of the statement	99
to the tax commissioner.	100

Sec. 5743.511. For the purposes of preventing tobacco use,	101
encouraging cessation of tobacco use by Ohioans, and implementing	102
section 3701.84 of the Revised Code, there is hereby created in	103
the state treasury the tobacco use prevention and cessation fund.	104
The fund shall consist of money credited to it under sections	105
5743.51, 5743.62, and 5743.63 of the Revised Code and from any	106
other source authorized by law.	107

Sec. 5743.62.  (A) To provide revenue for the general revenue	108
fund of the state and the tobacco use prevention and cessation	109
fund, an excise tax is hereby levied on the seller of tobacco	110
products in this state at the rate of seventeenfifty-four and	111
eight-tenths per cent of the wholesale price of the tobacco	112
product whenever the tobacco product is delivered to a consumer in	113
this state for the storage, use, or other consumption of such	114
tobacco products. The tax imposed by this section applies only to	115
sellers having nexus in this state, as defined in section 5741.01	116
of the Revised Code.	117

(B) A seller of tobacco products who has nexus in this state	118
as defined in section 5741.01 of the Revised Code shall register	119
with the tax commissioner and supply any information concerning	120
the seller's contacts with this state as may be required by the	121
tax commissioner. A seller who does not have nexus in this state	122
may voluntarily register with the tax commissioner. A seller who	123
voluntarily registers with the tax commissioner is entitled to the	124
same benefits and is subject to the same duties and requirements	125
as a seller required to be registered with the tax commissioner	126
under this division.	127

(C) Each seller of tobacco products subject to the tax levied	128
by this section, on or before the last day of each month, shall	129
file with the tax commissioner a return for the preceding month	130
showing any information the tax commissioner finds necessary for	131
the proper administration of sections 5743.51 to 5743.66 of the	132
Revised Code, together with remittance of the tax due, payable to	133
the treasurer of state. The return and payment of the tax required	134
by this section shall be filed in such a manner that it is	135
received by the tax commissioner on or before the last day of the	136
month following the reporting period. If the return is filed and	137
the amount of the tax shown on the return to be due is paid on or	138
before the date the return is required to be filed, the seller is	139
entitled to a discount equal to two and five-tenths per cent of	140
the amount shown on the return to be due.	141

(D) The tax commissioner shall immediately forward to the	142
treasurer of state all money received from the tax levied by this	143
section,. The treasurer shall credit to the tobacco use prevention	144
and cessation fund created by section 5743.511 of the Revised Code	145
an amount equal to sixty-nine per cent of the receipts from the	146
tax levied by this section and the treasurer shall credit the	147
amountbalance to the general revenue fund.	148

(E) Each seller of tobacco products subject to the tax levied	149
by this section shall mark on the invoices of tobacco products	150
sold that the tax levied by that section has been paid and shall	151
indicate the seller's account number as assigned by the tax	152
commissioner.	153

Sec. 5743.63.  (A) To provide revenue for the general revenue	154
fund of the state and the tobacco use prevention and cessation	155
fund, an excise tax is hereby levied on the storage, use, or other	156
consumption of tobacco products at the rate of seventeen	157
fifty-four and eight-tenths per cent of the wholesale price of the	158
tobacco product, provided the tax has not been paid by the seller	159
as provided in section 5743.62 of the Revised Code, or by the	160
distributor as provided in section 5743.51 of the Revised Code.	161

(B) Each person subject to the tax levied by this section, on	162
or before the last day of each month, shall file with the tax	163
commissioner a return for the preceding month showing any	164
information the tax commissioner finds necessary for the proper	165
administration of sections 5743.51 to 5743.66 of the Revised Code,	166
together with remittance of the tax due, payable to the treasurer	167
of state. The return and payment of the tax required by this	168
section shall be filed in such a manner that it is received by the	169
tax commissioner on or before the last day of the month following	170
the reporting period.	171

(C) The tax commissioner shall immediately forward to the	172
treasurer of state all money received from the tax levied by this	173
section,. The treasurer shall credit to the tobacco use prevention	174
and cessation fund created by section 5743.511 of the Revised Code	175
an amount equal to sixty-nine per cent of the receipts from the	176
tax levied by this section and the treasurer shall credit the	177
amountbalance of those receipts to the general revenue fund.	178

Section 2. That existing sections 3701.84, 5743.51, 5743.62,	179
and 5743.63 of the Revised Code are hereby repealed.	180