WILLIAM DONALD SCHAEFER, Governor Ch. 740

the taxpayer shall request in writing a hearing before the
Comptroller, at which hearing the necessity, propriety and amount
of the bond shall be determined by the Comptroller. Such
determination by the Comptroller shall be final and shall be
complied with within fifteen (15) days after the taxpayer is
given notice thereof.

(2) In lieu of the bond required by this section,
securities approved by the Comptroller or cash in such amount as
he may prescribe may be deposited, which shall be kept in the
custody of the Comptroller, who may at any time, without notice
to the depositor, apply them to any tax and/or, interest or
penalties due, and for that purpose the securities may be sold by
the Comptroller at public or private sale without notice to the
depositor.

(B)  EXCEPT AS PROVIDED IN SUBSECTION (E) OF THIS SECTION,
THE COMPTROLLER MAY EXEMPT A PERSON FROM POSTING  A BOND OR OTHER
SECURITY FOR THE TOBACCO TAX UNDER THIS SECTION   IF THE PERSON IS
AND HAS BEEN FOR THE PAST 5 YEARS:

(1)  LICENSED AS A DISTRIBUTOR UNDER §§ 445 THROUGH
448 OF THIS SUBTITLE AND AS A WHOLESALER UNDER ARTICLE 56, §§ 63
THROUGH 74 OF THE CODE; AND

(2)  (I) IN CONTINUOUS COMPLIANCE WITH THE TOBACCO TAX
LAWS, AS DETERMINED UNDER SUBSECTION (C) OF THIS SECTION; AND

(II) IN CONTINUOUS COMPLIANCE WITH THE
CONDITIONS OF THE PERSON'S BOND OR OTHER SECURITY FURNISHED UNDER
THIS SECTION.

(C)  FOR PURPOSES OF SUBSECTION (B) OF THIS SECTION, A
PERSON IS IN CONTINUOUS COMPLIANCE WITH THE TOBACCO TAX LAWS FOR
A PERIOD IF THE PERSON HAS NOT, AT ANY TIME DURING THAT PERIOD:

(1)  FAILED TO PAY ANY TOBACCO TAX OR ANY TOBACCO TAX
ASSESSMENT WHEN DUE;

(2)  FAILED TO FILE A TOBACCO TAX RETURN WHEN DUE; OR

(3)  OTHERWISE VIOLATED ANY OF THE PROVISIONS OF THIS
SUBTITLE OR ARTICLE 56, §§ 63 THROUGH 74 OF THE CODE.

(D)  (1) AN EXEMPTION GRANTED UNDER SUBSECTION (B) OF THIS
SECTION IS EFFECTIVE ONLY TO THE -EXTENT THAT A PERSON'S POTENTIAL
TOBACCO TAX LIABILITY DOES NOT EXCEED AN AMOUNT DETERMINED BY THE
COMPTROLLER BASED ON THE PERSON'S EXPERIENCE DURING THE 5-YEAR
COMPLIANCE PERIOD UNDER SUBSECTION (B) OF THIS SECTION.

(2) THE COMPTROLLER MAY REVOKE AN EXEMPTION GRANTED
TO A PERSON UNDER SUBSECTION (B) OF THIS SECTION IF THE PERSON AT

- 4835 -