{"data":{"id":"us-ok/okla.-stat.-tit.-68-68-360.9","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 68, § 68-360.9","heading":"Listing of nonparticipating manufacturers in the","body":"Oklahoma Tobacco Directory - Bond.\n\nA. Notwithstanding any other provision of law, any\n\nnonparticipating manufacturer shall post a bond for the exclusive\n\nbenefit of this state if:\n\n1. It was not listed in the Oklahoma Tobacco Directory,\n\nhereinafter referred to as the Directory, during the four (4)\n\nconsecutive calendar quarters preceding its application to be on the\n\nDirectory;\n\n2. It had been previously listed in the Directory, but was\n\ninvoluntarily removed or denied recertification for noncompliance\n\nwith the Master Settlement Agreement Complementary Act or the\n\nPrevention of Youth Access to Tobacco Act, unless the removal was\n\ndetermined to have been erroneous or illegal; or\n\n3. The Attorney General reasonably determines that the\n\nnonparticipating manufacturer who has filed a certification pursuant\n\nto Section 360.4 of this title poses an elevated risk for\n\nnoncompliance with the Master Settlement Agreement Complementary Act\n\nor with the Prevention of Youth Access to Tobacco Act. A reasonable\n\nrisk of noncompliance with this section or the Prevention of Youth\n\nAccess to Tobacco Act includes, but is not limited to, the following\n\ncircumstances and a nonparticipating manufacturer shall be deemed to\n\npose an elevated risk for noncompliance if:\n\na. any state has removed the manufacturer or its brand or\n\nbrand families or an affiliate or any of the\n\naffiliate's brands or brand families from the tobacco\n\ndirectory of the state or placed the manufacturer or\n\nits brand or brand families or an affiliate or any of\n\nthe affiliate's brands on a list of noncompliant\n\ncompanies, brands or brand families for noncompliance\n\nwith the state law at any time during the calendar\n\nyear or within the past five (5) consecutive calendar\n\nyears, unless it submits proof that its brands, or the\n\nbrands of an affiliate were erroneously or illegally\n\nremoved from a tobacco directory of a state,\n\nb. any state, or the federal government, has filed\n\nlitigation against or has an unsatisfied judgment\n\nagainst the manufacturer or any affiliate thereof for\n\nescrow or for penalties, costs, or attorney fees\n\nrelated to noncompliance with state escrow laws or\n\ncomplementary legislation, or\n\nc. the nonparticipating manufacturer or any affiliate has\n\nbeen charged, entered a plea or has been convicted of\n\nviolating the Contraband Cigarette Trafficking Act,\n\nthe Jenkins Act or the PACT Act.\n\nB. For purposes of this section, an affiliate is an entity or\n\nindividual that either controls or is controlled by the\n\nnonparticipating manufacturer, regardless of whether the control\n\nbeing exercised is direct or indirect.\n\nC. Neither a nonparticipating manufacturer nor any of its brand\n\nfamilies shall be included in the Directory unless and until the\n\nnonparticipating manufacturer:\n\n1. Undertakes joint and several liability with its importer for\n\nthe performance of the manufacturer in accordance with Section\n\n360.5-1 of this title and, if required, has posted a joint bond in\n\naccordance with this section;\n\n2. The manufacturer and importer, if any, have:\n\na. registered to do business within the state with the\n\nSecretary of State,\n\nb. maintained a registered service agent within the State\n\nof Oklahoma, and\n\nc. agreed that the Secretary of State will act as service\n\nagent if the registered service agent dies, resigns or\n\notherwise is unavailable to accept service on behalf\n\nof the nonparticipating manufacturer or importer; and\n\n3. The manufacturer and importer, if any, consent to be sued in\n\nthe district courts of the State of Oklahoma for purposes of the\n\nstate enforcing any provision of the Prevention of Youth Access to\n\nTobacco Act, the Master Settlement Agreement Complementary Act and\n\nOklahoma cigarette excise tax statutes.\n\nD. The bond shall be posted by corporate surety located within\n\nthe United States in an amount equal to the greater of Fifty\n, if any, consent to be sued in\n\nthe district courts of the State of Oklahoma for purposes of the\n\nstate enforcing any provision of the Prevention of Youth Access to\n\nTobacco Act, the Master Settlement Agreement Complementary Act and\n\nOklahoma cigarette excise tax statutes.\n\nD. The bond shall be posted by corporate surety located within\n\nthe United States in an amount equal to the greater of Fifty\n\nThousand Dollars ($50,000.00) or fifty percent (50%) of the required\n\nescrow that the manufacturer in either its current or predecessor\n\nform was required to deposit as a result of its sales in Oklahoma\n\nduring the last full calendar year it was listed in the Directory.\n\nThe bond shall be written in favor of the State of Oklahoma and\n\nshall be conditioned on the performance by the nonparticipating\n\nmanufacturer, or its United States importer that undertakes joint\n\nand several liability for the performance of the manufacturer in\n\naccordance with Section 360.5-1 of this title, of all of its duties\n\nand obligations under the Prevention of Youth Access to Tobacco Act\n\nand the Master Settlement Agreement Complementary Act during the\n\nyear in which the certification is filed and the next succeeding\n\ncalendar year.\n\nE. Any manufacturer or importer required to post a bond in\n\naccordance with this section shall do so for three (3) consecutive\n\nyears, or longer if the Attorney General determines the manufacturer\n\nor importer poses an elevated risk at the end of the three-year\n\nperiod.\n\nF. If a nonparticipating manufacturer fails to make or have\n\nmade in its behalf deposits equal to the full amount owed for a\n\nquarter within fifteen (15) days of the due date of the quarter, the\n\nState of Oklahoma may execute on the bond in the amount of the\n\nremaining escrow deposit due. Escrow amounts collected from the\n\nbond shall be used to reduce the amount of escrow due from and\n\npenalties assessed against that nonparticipating manufacturer and\n\nunpaid escrow that exceeds the amount covered by the bond remains\n\ndue from the nonparticipating manufacturer and any importer that is\n\njointly and severally liable for its cigarette sales into the state.\n\nG. In addition to the grounds contained in paragraph 3 of\n\nsubsection B of Section 360.4 of this title, the Attorney General\n\nhas the authority to not retain or not to include in the Directory\n\nany nonparticipating manufacturer, its brands and brand families if\n\nthe manufacturer:\n\n1. Does not certify it is subject to, without any immunity, the\n\nMaster Settlement Agreement Complementary Act and the Prevention of\n\nYouth Access to Tobacco Act;\n\n2. Fails to disclose that a state or the federal government has\n\nbrought an action in compliance with any state or federal law,\n\nregulating the sale and or distribution of tobacco products,\n\nincluding the escrow statute of another state; or\n\n3. Fails to sell only through an Oklahoma-licensed wholesaler\n\nany tobacco product sold into the state or fails to provide monthly\n\nPACT Act reports to the Oklahoma Tax Commission and the Oklahoma\n\nAttorney General for sales into the state.\n\nH. The Attorney General shall have the authority to require a\n\nnonparticipating manufacturer to submit all information and\n\nmaterials the Attorney General deems appropriate to determine\n\ncompliance of the nonparticipating manufacturer with this section\n\nand other related laws including the grounds for retaining or not\n\nincluding a manufacturer or its brands and brand families in the\n\nDirectory.","path":["OK Code","Title 68"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os68.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"ffe97eeb42e0ea40572fd9a31641b1a5b625af87967fdc737b00ed9317a861df","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-68-68-360.8","next":"us-ok/okla.-stat.-tit.-68-68-3601"},"notice":"GroundRules: Original legal text. Not legal advice."}