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As Introduced
136th
General Assembly
Regular
Session
H. B. No. 465
2025-2026
Representative Upchurch
Cosponsors: Representatives Mohamed,
Williams, Brennan, Fischer
To
amend sections 4303.271, 5743.15, and 5743.61 of the Revised Code
to
require the renewal of various licenses or permits related to liquor,
tobacco, and vapor products within forty-eight hours of filing.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section
1.
That
sections 4303.271, 5743.15, and 5743.61 of the Revised Code be
amended to read as follows:
Sec.
4303.271.
(A)
Except as provided in divisions (B) and (D) of this section, the
holder of a permit issued under sections 4303.02 to 4303.232 of the
Revised Code, who files an application for the renewal of the same
class of permit for the same premises, shall be entitled to the
renewal of the permit. The division of liquor control shall renew the
permit unless the division rejects for good cause any renewal
application, subject to the right of the applicant to appeal the
rejection to the liquor control commission.
(B)
The legislative authority of the municipal corporation, the board of
township trustees, or the board of county commissioners of the county
in which a permit premises is located may object to the renewal of a
permit issued under sections 4303.11 to 4303.183 of the Revised Code
for any of the reasons contained in division (A) of section 4303.292
of the Revised Code. Any objection shall be made no later than thirty
days prior to the expiration of the permit, and the division shall
accept the objection if it is postmarked no later than thirty days
prior to the expiration of the permit. The objection shall be made by
a resolution specifying the reasons for objecting to the renewal and
requesting a hearing, but no objection shall be based upon
noncompliance of the permit premises with local zoning regulations
that prohibit the sale of beer or intoxicating liquor in an area
zoned for commercial or industrial uses, for a permit premises that
would otherwise qualify for a proper permit issued by the division.
The resolution shall be accompanied by a statement by the chief legal
officer of the political subdivision that, in the chief legal
officer's opinion, the objection is based upon substantial legal
grounds within the meaning and intent of division (A) of section
4303.292 of the Revised Code.
Upon
receipt of a resolution of a legislative authority or board objecting
to the renewal of a permit and a statement from the chief legal
officer, the division shall set a time for the hearing and send by
certified mail to the permit holder, at the permit holder's usual
place of business, a copy of the resolution and notice of the
hearing. The division shall then hold a hearing in the central office
of the division, except that, upon written request of the legislative
authority or board, the hearing shall be held in the county seat of
the county in which the permit premises is located, to determine
whether the renewal shall be denied for any of the reasons contained
in division (A) of section 4303.292 of the Revised Code. Only the
reasons for refusal contained in division (A) of section 4303.292 of
the Revised Code and specified in the resolution of objection shall
be considered at the hearing.
The
permit holder and the objecting legislative authority or board shall
be parties to the proceedings under this section and shall have the
right to be present, to be represented by counsel, to offer evidence,
to require the attendance of witnesses, and to cross-examine
witnesses at the hearing.
(C)
An application for renewal of a permit shall be filed with the
division at least fifteen days prior to the expiration of an existing
permit, and the existing permit shall continue in effect as provided
in section 119.06 of the Revised Code until the application is
approved or rejected by the division. Any holder of a permit, which
has expired through failure to be renewed as provided in this
section, shall obtain a renewal of the permit, upon filing an
application for renewal with the division, at any time within thirty
days from the date of the expired permit. A penalty of ten per cent
of the permit fee shall be paid by the permit holder if the
application for renewal is not filed at least fifteen days prior to
the expiration of the permit.
If
there are no objections filed under this section, the division shall
issue a renewal of a permit not later than forty-eight hours after an
application for renewal is filed.
(D)(1)
Annually, the tax commissioner shall examine the department of
taxation's records for the horse-racing, alcoholic beverage, motor
fuel, petroleum activity, sales or use, cigarette, other tobacco
products, employer withholding, commercial activity, and gross casino
revenue tax and gross receipts taxes levied pursuant to section
5739.101 of the Revised Code for each holder of a permit issued under
sections 4303.02 to 4303.232 of the Revised Code to determine if the
permit holder is delinquent in filing any returns, submitting any
information required by the commissioner, or remitting any payments
with respect to those taxes or any fees, charges, penalties, or
interest related to those taxes.
If
any delinquency or liability exists, the commissioner shall send a
notice of that fact to the permit holder in the manner provided in
section 5703.37 of the Revised Code. The notice shall specify, in as
much detail as is possible, the periods for which returns have not
been filed and the nature and amount of unpaid assessments and other
liabilities and shall be sent on or before the first day of the third
month preceding the month in which the permit expires. The
commissioner also shall notify the division of liquor control of the
delinquency or liability, identifying the permit holder by name and
permit number.
(2)(a)
Except as provided in division (D)(4) of this section, the division
of liquor control shall not renew the permit of any permit holder the
tax commissioner has identified as being delinquent in filing any
returns, providing any information, or remitting any payments with
respect to the taxes listed in division (D)(1) of this section as of
the first day of the sixth month preceding the month in which the
permit expires, or of any permit holder the commissioner has
identified as having been assessed by the department on or before the
first day of the third month preceding the month in which the permit
expires, until the division is notified by the commissioner that the
delinquency, liability, or assessment has been resolved.
(b)(i)
Within ninety days after the date on which the permit expires, any
permit holder whose permit is not renewed under this division may
file an appeal with the liquor control commission. The commission
shall notify the tax commissioner regarding the filing of any such
appeal. During the period in which the appeal is pending, the permit
shall not be renewed by the division. The permit shall be reinstated
if the permit holder and the commissioner or the attorney general
demonstrate to the liquor control commission that the commissioner's
notification of a delinquency or assessment was in error or that the
issue of the delinquency or assessment has been resolved.
(ii)
A permit holder who has filed an appeal under division (D)(2)(b)(i)
of this section may file a motion to withdraw the appeal. The
division of liquor control may renew a permit holder's permit if the
permit holder has withdrawn such an appeal and the division receives
written certification from the tax commissioner that the permit
holder's delinquency or assessment has been resolved.
(3)
A permit holder notified of delinquency or liability under this
section may protest the notification to the tax commissioner on the
basis that no return or information is delinquent and no tax, fee,
charge, penalty, or interest is outstanding. The commissioner shall
expeditiously consider any evidence submitted by the permit holder
and, if it is determined that the notification was in error,
immediately shall inform the division of liquor control that the
renewal application may be granted. The renewal shall not be denied
if the delinquency or unreported liability is the subject of a bona
fide dispute as to the validity of the delinquency or unreported
liability and is the subject of an assessment and of an appeal
properly filed by the permit holder.
(4)
If the commissioner concludes that under the circumstances the permit
holder's delinquency or liability has been conditionally resolved,
the commissioner shall allow the permit to be renewed, conditioned
upon the permit holder's continuing performance in satisfying the
delinquency and liability. The conditional nature of the renewal
shall be specified in the notification given to the division of
liquor control under division (D)(1) of this section. Upon receipt of
notice of the resolution, the division shall issue a conditional
renewal. If the taxpayer defaults on any agreement to pay the
delinquency or liability or fails to keep subsequent tax or fee
payments current, the liquor control commission, upon request and
proof of the default or failure to keep subsequent tax or fee
payments current, shall indefinitely suspend the permit holder's
permit until all taxes or fees and interest due are paid.
(5)
The commissioner may adopt rules to assist in administering the
duties imposed by this section.
Sec.
5743.15.
(A)
Except as otherwise provided in this division, no person shall engage
in this state in the wholesale or retail business of trafficking in
cigarettes or in the business of a manufacturer or importer of
cigarettes without having a license to conduct each such activity
issued by a county auditor under division (B) of this section or the
tax commissioner under divisions (C) and (F) of this section. On
dissolution of a partnership by death, the surviving partner may
operate under the license of the partnership until expiration of the
license, and the heirs or legal representatives of deceased persons,
and receivers and trustees in bankruptcy appointed by any competent
authority, may operate under the license of the person succeeded in
possession by such heir, representative, receiver, or trustee in
bankruptcy if the partner or successor notifies the issuer of the
license of the dissolution or succession within thirty days after the
dissolution or succession.
(B)(1)
Each applicant for a license to engage in the retail business of
trafficking in cigarettes under this section, annually, on or before
the first day of June, shall make and deliver to the county auditor
of the county in which the applicant desires to engage in the retail
business of trafficking in cigarettes, upon a blank form furnished by
such auditor for that purpose, a statement showing the name of the
applicant, each physical place in the county where the applicant's
business is conducted, the nature of the business, and any other
information the tax commissioner requires in the form of statement
prescribed by the commissioner. If the applicant is a firm,
partnership, or association other than a corporation, the application
shall state the name and address of each of its members. If the
applicant is a corporation, the application shall state the name and
address of each of its officers. At the time of making the
application required by this section, every person desiring to engage
in the retail business of trafficking in cigarettes shall pay an
application fee in the sum of one hundred twenty-five dollars for
each physical place where the person proposes to carry on such
business. Each place of business shall be deemed such space, under
lease or license to, or under the control of, or under the
supervision of the applicant, as is contained in one or more
contiguous, adjacent, or adjoining buildings constituting an
industrial plant or a place of business operated by, or under the
control of, one person, or under one roof and connected by doors,
halls, stairways, or elevators, which space may contain any number of
points at which cigarettes are offered for sale, provided that each
additional point at which cigarettes are offered for sale shall be
listed in the application.
(2)
Upon receipt of the application and exhibition of the county
treasurer's receipt showing the payment of the application fee, the
county auditor shall issue to the applicant a license for each place
of business designated in the application, authorizing the applicant
to engage in such business at such place for one year commencing on
the first day of June. The form of the license shall be prescribed by
the commissioner. A duplicate license may be obtained from the county
auditor upon payment of a five-dollar fee if the original license is
lost, destroyed, or defaced. When an application is filed after the
first day of June, the application fee required to be paid shall be
proportioned in amount to the remainder of the license year, except
that it shall not be less than twenty-five dollars in any one year.
(3)
The holder of a retail dealer's cigarette license may transfer the
license to a place of business within the same county other than that
designated on the license on condition that the licensee's ownership
interest and business structure remain unchanged, and that the
licensee applies to the county auditor therefor, upon forms approved
by the commissioner and the payment of a fee of five dollars into the
county treasury.
(4)
If an application for a renewal of a license to engage in the retail
business of trafficking in cigarettes under this section meets all
the requirements for the renewal of the license, the county auditor
shall issue the renewal not later than forty-eight hours after an
application for renewal is filed.
(C)(1)
Each applicant for a license to engage in the wholesale business of
trafficking in cigarettes under this section, annually, on or before
the first day of June, shall make and deliver to the tax
commissioner, upon a blank form furnished by the commissioner for
that purpose, a statement showing the name of the applicant, physical
street address where the applicant's business is conducted, the
nature of the business, and any other information required by the
commissioner. If the applicant is a firm, partnership, or association
other than a corporation, the applicant shall state the name and
address of each of its members. If the applicant is a corporation,
the applicant shall state the name and address of each of its
officers. At the time of making the application required by this
section, every person desiring to engage in the wholesale business of
trafficking in cigarettes shall pay an application fee of one
thousand dollars for each physical place where the person proposes to
carry on such business. Each place of business shall be deemed such
space, under lease or license to, or under the control of, or under
the supervision of the applicant, as is contained in one or more
contiguous, adjacent, or adjoining buildings constituting an
industrial plant or a place of business operated by, or under the
control of, one person, or under one roof and connected by doors,
halls, stairways, or elevators. A duplicate license may be obtained
from the commissioner upon payment of a twenty-five-dollar fee if the
original license is lost, destroyed, or defaced.
(2)
Upon receipt of the application and payment of any application fee
required by this section, the commissioner shall verify that the
applicant is not in violation of any provision of Chapter 1346. or
Title LVII of the Revised Code. The commissioner shall also verify
that the applicant has filed any returns, submitted any information,
and paid any outstanding taxes, charges, or fees as required for any
tax, charge, or fee administered by the commissioner, to the extent
that the commissioner is aware of the returns, information, or
payments at the time of the application. Upon approval, the
commissioner shall issue to the applicant a license for each physical
place of business designated in the application authorizing the
applicant to engage in business at that location for one year
commencing on the first day of June. For licenses issued after the
first day of June, the application fee shall be reduced
proportionately by the remainder of the twelve-month period for which
the license is issued, except that the application fee required to be
paid under this section shall be not less than two hundred dollars in
any one year.
(3)
The holder of a wholesale dealer cigarette license may transfer the
license to a place of business other than that designated on the
license on condition that the licensee's ownership or business
structure remains unchanged, and that the licensee applies to the
commissioner for such a transfer upon a form promulgated by the
commissioner and pays a fee of twenty-five dollars, which shall be
deposited into the cigarette tax enforcement fund created in division
(E) of this section.
(4)
If an application for a renewal of a license to engage in the
wholesale business of trafficking in cigarettes under this section
meets all the requirements for the renewal of the license, the tax
commissioner shall issue the renewal not later than forty-eight hours
after an application for renewal is filed.
(D)(1)
The wholesale cigarette license application fees collected under this
section shall be paid into the cigarette tax enforcement fund.
(2)
The retail cigarette license application fees collected under this
section shall be distributed as follows:
(a)
Thirty per cent shall be paid upon the warrant of the county auditor
into the treasury of the municipal corporation or township in which
the places of business for which the tax revenue was received are
located;
(b)
Ten per cent shall be credited to the general fund of the county;
(c)
Sixty per cent shall be paid into the cigarette tax enforcement fund.
(3)
The remainder of the revenues and fines collected under this section
and the penal laws relating to cigarettes shall be distributed as
follows:
(a)
Three-fourths shall be paid upon the warrant of the county auditor
into the treasury of the municipal corporation or township in which
the place of business, on account of which the revenues and fines
were received, is located;
(b)
One-fourth shall be credited to the general fund of the county.
(E)
There is hereby created within the state treasury the cigarette tax
enforcement fund for the purpose of providing funds to assist in
paying the costs of enforcing sections 1333.11 to 1333.21 and Chapter
5743. of the Revised Code.
The
portion of cigarette license application fees received by a county
auditor during the annual application period that ends on the first
day of June and that is required to be deposited in the cigarette tax
enforcement fund shall be sent to the tax commissioner by the
thirtieth day of June each year accompanied by the form prescribed by
the tax commissioner. The portion of cigarette license application
fees received by each county auditor after the first day of June and
that is required to be deposited in the cigarette tax enforcement
fund shall be sent to the commissioner by the last day of the month
following the month in which such fees were collected.
(F)(1)
Every person who desires to engage in the business of a manufacturer
or importer of cigarettes shall, annually, on or before the first day
of June, make and deliver to the tax commissioner, upon a blank form
furnished by the commissioner for that purpose, a statement showing
the name of the applicant, the nature of the applicant's business,
and any other information required by the commissioner. If the
applicant is a firm, partnership, or association other than a
corporation, the applicant shall state the name and address of each
of its members. If the applicant is a corporation, the applicant
shall state the name and address of each of its officers.
(2)
Upon receipt of the application required under this section, the
commissioner shall verify that the applicant is not in violation of
any provision of Chapter 1346. of the Revised Code. The commissioner
shall also verify that the applicant has filed any returns, submitted
any information, and paid any outstanding taxes, charges, or fees as
required for any tax, charge, or fee administered by the
commissioner, to the extent that the commissioner is aware of the
returns, information, taxes, charges, or fees at the time of the
application. Upon approval, the commissioner shall issue to the
applicant a license authorizing the applicant to engage in the
business of manufacturer or importer, whichever the case may be, for
one year commencing on the first day of June.
(3)
The issuing of a license under division (F)(1) of this section to a
manufacturer does not excuse a manufacturer from the certification
process required under section 1346.05 of the Revised Code. A
manufacturer who is issued a license under division (F)(1) of this
section and who is not listed on the directory required under section
1346.05 of the Revised Code shall not be permitted to sell cigarettes
in this state other than to a licensed cigarette wholesaler for sale
outside this state. Such a manufacturer shall provide documentation
to the commissioner evidencing that the cigarettes are legal for sale
in another state.
(4)
If an application for a renewal of a license to engage in the
business of a manufacturer or importer of cigarettes under this
section meets all the requirements for the renewal of the license,
the tax commissioner shall issue the renewal not later than
forty-eight hours after an application for renewal is filed.
(G)
The tax commissioner may adopt rules necessary to administer this
section.
Sec.
5743.61.
(A)(1)
No distributor or vapor distributor shall engage in the business of
distributing tobacco products, vapor products, or both within this
state without having a license issued by the department of taxation
to engage in that business.
(2)
On the dissolution of a partnership by death, the surviving partner
may operate under the license of the partnership until the expiration
of the license, and the heirs or legal representatives of deceased
persons, and receivers and trustees in bankruptcy appointed by any
competent authority, may operate under the license of the person
succeeded in possession by the heir, representative, receiver, or
trustee in bankruptcy if the partner or successor notifies the
department of taxation of the dissolution or succession within thirty
days after the dissolution or succession.
(B)(1)
Each applicant for a license described by division (A)(1) of this
section, annually, on or before the first day of February, shall make
and deliver to the tax commissioner, upon a form furnished by the
commissioner for that purpose, a statement showing the name of the
applicant, each physical place from which the applicant distributes
to distributors, vapor distributors, retail dealers, or wholesale
dealers, and any other information the commissioner considers
necessary for the administration of sections 5743.51 to 5743.66 of
the Revised Code.
(2)
At the time of making the application for a license to engage either
in the business of distributing tobacco products or in the business
of distributing both tobacco products and vapor products, the
applicant shall pay an application fee of one thousand dollars for
each place listed on the application where the applicant proposes to
carry on that business. The application fee for a license to engage
solely in the business of distributing vapor products shall be one
hundred twenty-five dollars for each place listed on the application
where the applicant proposes to carry on that business. The fee
charged for the application shall accompany the application and shall
be made payable to the treasurer of state for deposit into the
cigarette tax enforcement fund.
(3)
Upon receipt of the application and payment of any licensing fee
required by this section, the commissioner shall verify that the
applicant has filed all returns, submitted all information, and paid
all outstanding taxes, charges, or fees as required for any taxes,
charges, or fees administered by the commissioner, to the extent the
commissioner is aware of the returns, information, taxes, charges, or
fees at the time of the application. Upon approval, the commissioner
shall issue to the applicant a license for each place of distribution
designated in the application authorizing the applicant to engage in
business at that location for one year commencing on the first day of
February. For licenses issued after the first day of February, the
license application fee shall be reduced proportionately by the
remainder of the twelve-month period for which the license is issued,
except that the application fee required to be paid under this
section shall be not less than two hundred dollars. If the original
license is lost, destroyed, or defaced, a duplicate license may be
obtained from the commissioner upon payment of a license replacement
fee of twenty-five dollars.
(4)
If an applicant for a renewal of a license to engage in the business
of distributing tobacco products, vapor products, or both within this
state meets all the requirements for the renewal of the license, the
tax commissioner shall issue the renewal not later than forty-eight
hours after an application for renewal is filed.
(C)
The holder of a tobacco or vapor products license may transfer the
license to a place of business on condition that the licensee's
ownership and business structure remains unchanged and the licensee
applies to the commissioner for the transfer on a form issued by the
commissioner, and pays a transfer fee of twenty-five dollars.
(D)
If a distributor or vapor distributor fails to file forms as required
under Chapter 1346. or section 5743.52 of the Revised Code or pay the
tax due for two consecutive periods or three periods during any
twelve-month period, the commissioner may suspend the license issued
to the distributor or vapor distributor under this section. The
suspension is effective ten days after the commissioner notifies the
distributor or vapor distributor of the suspension in writing in the
manner provided in section 5703.37 of the Revised Code. The
commissioner shall lift the suspension when the distributor or vapor
distributor files the delinquent forms and pays the tax due,
including any penalties, interest, and additional charges. The
commissioner may refuse to issue the annual renewal of the license
required by this section and may refuse to issue a new license for a
location of the distributor until all delinquent forms are filed and
outstanding taxes are paid. This division does not apply to any
unpaid or underpaid tax liability that is the subject of a petition
or appeal filed pursuant to section 5743.56, 5717.02, or 5717.04 of
the Revised Code.
(E)(1)
The tax commissioner may impose a penalty of up to one thousand
dollars on any person found to be engaging in the business of
distributing tobacco products or vapor products without a license as
required by this section.
(2)
Any person engaging in the business of distributing tobacco products
or vapor products without a license as required by this section shall
comply with divisions (B)(1) and (2) of this section within ten days
after being notified of the requirement to do so. Failure to comply
with division (E)(2) of this section subjects a person to penalties
imposed under section 5743.99 of the Revised Code.
Section
2.
That
existing sections 4303.271, 5743.15, and 5743.61 of the Revised Code
are hereby repealed.