The Oregon Administrative Rules contain OARs filed through November 15, 2015
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DEPARTMENT OF JUSTICE
DIVISION 105
NON-PARTICIPATING MANUFACTURERS
137-105-0001
Definitions
The following definitions shall apply to all Oregon Administrative Rules contained in division 105 unless the context requires otherwise:
(1) "Brand Family" has the meaning given that term in ORS 180.405.
(2) "Cigarette" has the meaning given that term in ORS 323.800.
(3) "Certification" means the information required to be provided to the Attorney General under ORS 180.410 and 180.415.
(4) "Directory" means the listing of tobacco product manufacturers that have provided current and accurate certifications pursuant to the provisions of ORS 180.425.
(5) "Distributor" has the meaning given that term in ORS 180.405(3).
(6) "NPM Distributor report" means the information required to be provided to the Attorney General under ORS 180.435(1).
(7) "Escrow deposit" means deposits required to be made into a qualified escrow fund pursuant to ORS 323.806(2)(a).
(8) "Master Settlement Agreement" has the meaning given that term in ORS 323.800.
(9) "Participating manufacturer" has the meaning given that term in ORS 180.405.
(10) "Qualified escrow fund" has the meaning given that term in ORS 323.800.
(11) "Tobacco product manufacturer" has the meaning given that term in ORS 323.800.
(12) "Units Sold" has the meaning given that term in ORS 323.800.
Stat. Auth.: ORS 180.445
Stats. Implemented:
Hist.: DOJ 9-2004, f. & cert. ef. 5-25-04
137-105-0010
Tobacco Product Manufacturers Directory
(1) In exercising the discretion granted by ORS 180.425(2), the Attorney General will consider the following:
(a) Whether the entity tendering a certification is a tobacco product manufacturer;
(b) Timeliness of the certification made by the tobacco product manufacturer;
(c) Completeness, or lack thereof, of the certification made by the tobacco product manufacturer;
(d) Whether the tobacco product manufacturer has provided all requested documents supporting its certification;
(e) Whether the certification is based on misrepresentation, false information, nondisclosure or concealment of facts;
(f) Whether the tobacco product manufacturer is in full compliance with all provisions of Local, State and Federal Law, including but not limited to the provisions of ORS 180.410, 180.415 and 323.800 to 323.806.
(g) Whether the tobacco product manufacturer, predecessor of the tobacco product manufacturer, or previous manufacturer of the brand is the subject of an injunction obtained by the State of Oregon for previous failure to comply with the nonparticipating manufacturer statutes;
(h) Whether the tobacco product manufacturer has failed to fully or timely fund a qualified escrow fund approved by the Attorney General;
(i) Whether all final judgments and penalties, including interest, costs and attorney fees thereon, in favor of the State of Oregon, or any political subdivision thereof, for violation of any Oregon statute, administrative rule or other law, including but not limited to violations of ORS 323.800 to 323.806, have been fully satisfied for the name, brand family, or tobacco product manufacturer;
(j) Whether the tobacco product manufacturer has corrected deficiencies in its certification or criteria set forth in this section in a timely and thorough manner;
(k) Whether the tobacco product manufacturer has complied in a timely and thorough manner with any request by the Attorney General for additional information or documentation supporting its certification or the criteria set forth in this section; and
(l) Any other facts or circumstances the Attorney General determines are relevant.
(2) In a manner provided in subsection (5) of this rule, the Attorney General shall remove a tobacco product manufacturer or brand family from the directory if the Attorney General determines that the tobacco product manufacturer or the brand family no longer meet the requirements of ORS 180.410 and 180.415.
(3) In the manner provided in subsection (5) of this rule, the Attorney General shall reject the application of a tobacco product manufacturer or brand family to be listed in the directory if the Attorney General determines that the tobacco product manufacturer or the brand family does not meet the requirements of ORS 180.410 and 180.415.
(4) The Attorney General shall promptly notify a tobacco product manufacturer in writing (via email or regular mail) if the manufacturer has met the requirements of ORS 180.410 and 180.415 and will be included in the directory. The notice shall include each brand family that the Attorney General determines will be included in the directory.
(5) If, on or after the effective date of these rules, the Attorney General intends to deny a tobacco product manufacturer or brand family a place in the directory, to remove a manufacturer or brand family from the directory, or to exclude an entity because the entity is not a tobacco product manufacturer, the Attorney General shall mail a written Notice of Intended Action to the manufacturer or entity. The Notice of Intended Action shall specify:
(a) The factual and legal basis upon which the Attorney General's intended action rests;
(b) The actions that the tobacco product manufacturer or entity must complete to cure the factual or legal deficiencies upon which the intended action is based; and,
(c) The date upon which attempts to cure the deficiencies must be completed and documentation of completion must be submitted to the Attorney General. In no event shall the Attorney General allow the tobacco product manufacturer or entity less than 15 days within which to cure the deficiencies upon which the Attorney General's intended action is based.
(6) On or before the deadline set in the Notice of Intended Action, the tobacco product manufacturer or entity shall provide documentation to the Attorney General detailing the actions, if any, that the tobacco product manufacturer or entity has taken to cure the deficiencies identified by the Attorney General in the Notice of Intended Action.
(7) Within 45 days of the date on which a certification that is the subject of a Notice of Intent is received, the Attorney General shall determine whether the deficiencies have been cured.
(a) If the deficiencies have been cured to the satisfaction of the Attorney General, the attorney General shall promptly notify a tobacco product manufacturer in writing (via email or regular mail) that the manufacturer or brand name family will be included in the directory.
(b) If any of the deficiencies have not been cured to the satisfaction of the Attorney General, the Attorney General shall promptly issue an order in Other than Contested Case denying a manufacturer, brand name family, or entity a place in the directory.
(8) A tobacco product manufacturer or entity that has complied with subsection (6) of this rule and is aggrieved by an Order denying the manufacturer or brand name family a place in the directory may file a petition for judicial review of the Attorney General's order as provided in ORS 183.484.
(9) The Attorney General may, for any reason and at the Attorney General's discretion, extend any period allowed by these rules.
Stat. Auth.: ORS 180.445
Stats. Implemented:
Hist.: DOJ 9-2004, f. & cert. ef. 5-25-04
137-105-0020
Escrow Deposits
(1) Discretionary authorization to make annual payments. The Attorney General may at any time permit a tobacco product manufacturer to make annual escrow deposits for any period, provided that:
(a) The tobacco product manufacturer has previously established and funded a qualified escrow fund for the State of Oregon;
(b) The tobacco product manufacturer has not failed to make a full and timely escrow deposit into a qualified escrow fund for the State of Oregon for any period as required under ORS 323.806(2)(a) or by these rules;
(c) The Attorney General has no reason to believe that the tobacco product manufacturer or brand family should be removed or excluded from the directory; and,
(d) The Attorney General has no reason to believe that the tobacco product manufacturer may not make its full required escrow deposit at the end of the sales year.
(2) Timing of deposits; conditions:
(a) Deposits for the period ending January 1, 2005. Unless ordered by the Attorney General to make quarterly payments, tobacco product manufacturers that have been in full and continuous compliance with the provisions of ORS 323.806, 180.410 to 180.420 and 180.430 to 180.440 may make annual payments on April 15 for the periods January 1, 2003 through January 1, 2004 and January 1, 2004 through January 1, 2005.
(b) Deposits for periods beginning January 1, 2005 or thereafter.
(A) Unless authorized by the Attorney General to make annual deposits, beginning with the deposit due for the period January 1, 2005 through March 31, 2005, each tobacco product manufacturer shall make the escrow deposits required by ORS 323.806 in quarterly payments for each of the following periods of the year: January 1 through March 31; April 1 through June 30; July 1 through September 30; and October 1 through December 31. The quarterly escrow payments shall be made no later than 15 days after the end of each quarter.
(B) As provided in subsection (1) of this rule, the Attorney General may authorize a tobacco product manufacturer required to make annual deposits for any period after January 1, 2005.
(c) Discretionary authority to require quarterly payments for any period. The Attorney General may at any time require a tobacco product manufacturer to make quarterly escrow deposits if the Attorney General determines that any of the following circumstances exist:
(A) The tobacco product manufacturer has not previously established and funded a qualified escrow fund for Oregon;
(B) The tobacco product manufacturer has failed at any time during the four quarters preceding the date on which the manufacturer's deposit to escrow would be due to make a full and timely escrow deposit into a qualified escrow fund for the State of Oregon for any period as required under ORS 323.806(2)(a) or by these rules;
(C) The Attorney General has reason to believe that the tobacco product manufacturer or brand family should be removed or excluded from the directory; or
(D) The Attorney General has reason to believe that the tobacco product manufacturer may not make its full required escrow deposit at the end of the sales year.
(3) The Attorney General may at any time, upon written request, require a tobacco product manufacturer to produce all documents and information that the Attorney General determines are relevant to determining whether a tobacco product manufacturer is in compliance with ORS 180.400 to 180.455, and with these rules.
(4) Nonparticipating tobacco manufacturers who are required to make quarterly escrow deposits must provide the Attorney General with official notification of the quarterly escrow deposit by filing an Oregon Quarterly Certification of Escrow Funding Compliance form with the Office of the Attorney General no later than ten (10) days after the deadline for which an escrow deposit is required.
Stat. Auth.: ORS 180.445
Stats. Implemented:
Hist.: DOJ 9-2004, f. & cert. ef. 5-25-04
137-105-0030
Distributor Reports ("Schedule B")
(1) Prior to the enactment into law of ORS 180.400 to 180.455, distributors reported information to the Attorney General through the Department of Revenue. Distributors submitted reports to the Department of Revenue on a form entitled "Schedule B" attached to the distributors' quarterly cigarette excise tax payment.
(2) For reports due on or prior to January 20, 2004 (that is, for reports relating to sales in any quarter of 2003), distributors shall continue to submit quarterly reports on Schedule B to: State of Oregon, Cigarette and Tobacco Tax, Oregon Department of Revenue, P.O. Box 14110, Salem, Oregon 97309-0910.
(3) The Department of Justice shall promulgate a form entitled Brand Specific Report for Cigarettes, Little Cigars, and Roll-Your-Own Product with Oregon Tax Paid for All Manufacturers. Distributors shall use the Brand Specific Report for Cigarettes, Little Cigars, and Roll-Your-Own Product with Oregon Tax Paid for All Manufacturers form for reports due on or after January 20, 2004 (i.e. reports relating to sales in 2004 and subsequent years). Brand Specific Report for Cigarettes, Little Cigars, and Roll-Your-Own Product with Oregon Tax Paid for All Manufacturers forms shall be mailed to Department of Justice, Civil Enforcement, 1162 Court Street NE, Salem, Oregon 97301.
(4) The calculation for the amount of the escrow deposit required for deposit into the qualified escrow fund for any given quarter will be based on the number of units sold by the tobacco product manufacturer during the corresponding quarter, as adjusted for inflation pursuant to ORS 323.806(2)(a)(A)-(E).
Stat. Auth.: ORS 180.445
Stats. Implemented:
Hist.: DOJ 9-2004, f. & cert. ef. 5-25-04
137-105-0040
Calculation of Time for Purposes of These Rules
In computing any period of time prescribed or allowed by these rules, the period shall be calculated as provided in Oregon Rule of Civil Procedure 10A.
Stat. Auth.: ORS 180.445
Stats. Implemented:
Hist.: DOJ 9-2004, f. & cert. ef. 5-25-04
137-105-0050
Monitoring and Enforcing Tobacco Product Manufacturer Compliance
(1) ORS 323.862 authorizes the Department of Revenue to disclose to the Attorney General, and such other parties as the Attorney General deems necessary, information submitted to the department relating to cigarettes, tobacco product manufacturers, and tobacco retailers to allow the Attorney General to monitor and enforce compliance by tobacco product manufacturers with ORS 323.800 to 323.806.
(2) For the purposes of ORS 323.862 and this rule:
(a) “Attorney General” includes attorneys employed by the Oregon Department of Justice;
(b) “Department” means the Department of Revenue;
(c) “Distributor” has the meaning given that term in ORS 180.405(3);
(d) “Information” and “information submitted to the department” means cigarette related documents and data submitted to the department, including but not limited to cigarette tax reports and returns filed by distributors, documents related to such tax reports and returns filed by distributors, and department audit documents relating to cigarette tax reports and returns. “Information” includes the amount of tax, penalty, interest, sales information, purchase information, and any other particulars, set forth or disclosed in a cigarette tax report or return or other cigarette related document submitted by a distributor to the Department;
(e) “Legal proceeding” includes but is not limited to lawsuits in state or federal court, proceedings relating to the Master Settlement Agreement, arbitrations, mediations and settlement conferences or negotiations;
(f) “Master Settlement Agreement” has the meaning given that term in ORS 323.800;
(g) “Monitoring and enforcing compliance” includes, but is not limited to:
(A) Investigating and calculating the amount of escrow a nonparticipating manufacturer must deposit in a qualified escrow fund;
(B) Investigating and determining whether a nonparticipating manufacturer has deposited sufficient funds in a qualified escrow fund;
(C) Investigating and determining whether a participating manufacturer is generally performing its obligations under the Master Settlement Agreement;
(D) Investigating and demonstrating enforcement by the Attorney General or the State of Oregon of ORS 323.800 to 323.806 in a legal proceeding relating to ORS 323.800 to 323.806, ORS 180.400 to 180.405 or the Master Settlement Agreement;
(E) Investigating and assessing whether a tobacco product manufacturer is in compliance with ORS 323.800 to 323.806 for the purposes of ORS 180.400 to 180.455;
(h) “Nonparticipating Manufacturer” has the meaning given that term in ORS 323.800;
(i) “Participating Manufacturer” has the meaning given that term in ORS 180.405;
(j) “Particulars” has the meaning given that term in ORS 314.835(2)(b);
(k) “Qualified escrow fund” has the meaning given that term in ORS 323.800;
(l) “Tobacco product manufacturer” has the meaning given that term in ORS 323.800.
Stat. Auth.: ORS 323.865
Stats. Implemented: ORS 323.862
Hist.: DOJ 9-2010(Temp), f. & cert. ef. 4-19-10 thru 10-15-10; DOJ 10-2010, f. & cert. ef. 6-30-10
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contained in the Administrative Order filed at the Archives Division,
800 Summer St. NE, Salem, Oregon 97310. Any discrepancies with the
published version are satisfied in favor of the Administrative Order.
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