WILLIAM DONALD SCHAEFER, Governor                   Ch. 740

2. IN CONTINUOUS COMPLIANCE WITH THE
CONDITIONS OF THE PERSON'S SECURITY POSTED UNDER THIS SUBSECTION.

(3)  FOR PURPOSES OF PARAGRAPH (2) OF THIS SUBSECTION,
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:

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

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

(III)  OTHERWISE VIOLATED ANY OF THE PROVISIONS
OF TITLE 12 OF THIS ARTICLE OR TITLE 13 OF THIS ARTICLE OR
ARTICLE 56, §§ 607 THROUGH 630 OF THE CODE.

(4)  (I) AN EXEMPTION GRANTED UNDER PARAGRAPH (2) OF
THIS SUBSECTION 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 PARAGRAPH (2) OF THIS
SUBSECTION.

(II)  THE COMPTROLLER MAY REVOKE AN EXEMPTION
GRANTED TO A PERSON UNDER PARAGRAPH (2) OF THIS SUBSECTION IF THE
PERSON AT ANY TIME FAILS TO BE IN CONTINUOUS COMPLIANCE WITH THE
TOBACCO TAX LAWS, AS DESCRIBED IN PARAGRAPH (3) OF THIS
SUBSECTION.

(III)  THE COMPTROLLER MAY REINSTATE AN
EXEMPTION REVOKED UNDER SUBPARAGRAPH (II) OF THIS PARAGRAPH IF
THE PERSON MEETS THE REQUIREMENTS OF PARAGRAPHS PARAGRAPH (2)(I)
AND (II) OF THIS SUBSECTION FOR A PERIOD OF 2 YEARS FOLLOWING THE
REVOCATION.

(5) THE COMPTROLLER MAY NOT EXEMPT A PERSON FROM
POSTING A BOND OR OTHER SECURITY FOR THE TOBACCO TAX UNLESS THE
COMPTROLLER DETERMINES THAT THE PERSON IS SOLVENT AND FINANCIALLY
ABLE TO PAY THE PERSON'S POTENTIAL TOBACCO TAX LIABILITY.

(6) IF A CORPORATION IS GRANTED AN EXEMPTION FROM
POSTING A BOND OR OTHER SECURITY FOR THE TOBACCO TAX, ANY OFFICER
OF THE CORPORATION WHO EXERCISES DIRECT CONTROL OVER ITS FISCAL
MANAGEMENT IS PERSONALLY LIABLE FOR ANY TOBACCO TAX, INTEREST AND
PENALTIES OWED BY THE CORPORATION.---------------------------------

SECTION 3. AND BE IT FURTHER ENACTED, That the continuous
compliance period described in Article 81, § 436(b) and (c) of
the Code and § 13-825(h)(2) and (3) of the Tax - General Article

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