To amend sections 3701.84, 5743.51, 5743.62, and 5743.63 and to enact section 5743.511 of the Revised Code to create the Center for Tobacco Use Prevention in the Department of Health to exercise duties of the former Tobacco Use Prevention and Control Foundation that were transferred to the Department, and to fund the Center's operations with an increased rate of tax on noncigarette tobacco products.

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

Sec. 3701.84. There is hereby created the center for tobacco use prevention within the department of health. The department of health may center shall prepare a plan to reduce tobacco use by Ohioans, with emphasis on reducing the use of tobacco by youth, minority and regional populations, pregnant women, and others who may be disproportionately affected by the use of tobacco. The plan may provide for periodic surveys to measure tobacco use and behavior toward tobacco use by Ohioans. If the department prepares a plan, copies Copies of the plan shall be available to the public.

The plan may also describe youth tobacco consumption prevention programs to be eligible for consideration for grants from the department center and may set forth the criteria by which applications for grants for such programs will be considered by the department center. Programs eligible for consideration may include:

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

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

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

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

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

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

The department center shall endeavor to coordinate its research and programs with the efforts of other agencies of this state to reduce tobacco use by Ohioans. Any state agency that conducts a survey that measures tobacco use or behavior toward tobacco use by Ohioans shall share the results of the survey with the department center.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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