WILLIAM DONALD SCHAEFER, Governor                         Ch. 692

(6)     $10,000 for a Class "G-Temporary" license;

(7)     $1,000 for a Class "S" license; and

(8)     $1,000 for a Class "U" license.

(g) The Comptroller may require a person subject to the sales and use tax to post
security for the tax in the amount that the Comptroller determines.

(h) (1) The Comptroller may require a person subject to the tobacco tax to post
security for the tax in the amount that the Comptroller requires.

(2)     Except as provided in paragraph (5) of this subsection, the Comptroller
may exempt a person from posting security for the tobacco tax if the person is and has
been for the past 5 years:

(i) licensed as required under § 16-202 of the Business Regulation
Article to act as a wholesaler; and

(ii) 1. in continuous compliance with the tobacco tax laws, as
determined under paragraph (3) of this subsection: and

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 or Title 13 of
this article or Title 16 of the Business Regulation Article.

(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 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.

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