Nebraska State Statutes

   All statutes on tobacco (licensing/manufacture/restrictions..)

     Contact:  Licensing for sales: Your local or County Clerk

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                         Chapter 28.  Crimes and Punishments.

   Tobacco; use by minors; penalty.
                     28-1418.    Whoever,  being  a  minor  under the age of
           eighteen years, shall smoke cigarettes or cigars, or use  tobacco
           in any form whatever, in this state, shall be guilty of a Class V
           misdemeanor.    Any  minor  so charged with the violation of this
           section may be free from prosecution when he shall have furnished
           evidence for the conviction of the person or persons  selling  or
           giving him the cigarettes, cigars or tobacco.


   Tobacco; sale to minors; penalty.
                     28-1419.    Whoever shall sell, give or furnish, in any
           way, any tobacco in any form  whatever,  or  any  cigarettes,  or
           cigarette  paper, to any minor under eighteen years of age, shall
           be guilty of a Class III misdemeanor for each offense.


   Tobacco; license requisite for sale; violation; penalty.
                     28-1420.     It  shall  be  unlawful  for  any  person,
           partnership, limited liability company, or corporation  to  sell,
           keep  for  sale,  or  give  away  in course of trade, any cigars,
           tobacco, cigarettes, or  cigarette  material  to  anyone  without
           first  obtaining  a  license  as provided in sections 28-1421 and
           28-1422.  It shall also be unlawful for any wholesaler to sell or
           deliver any cigars, tobacco, cigarettes, or cigarette material to
           any  person,   partnership,   limited   liability   company,   or
           corporation who, at the time of such sale or delivery, is not the
           recipient  of  a  valid  tobacco  license for the current year to
           retail the same as provided in such sections.  It shall  also  be
           unlawful  for any person, partnership, limited liability company,
           or corporation to purchase or receive, for  purposes  of  resale,
           any  cigars,  tobacco,  cigarettes, or cigarette material if such
           person, partnership, limited liability company, or corporation is
           not the recipient of a  valid  tobacco  license  to  retail  such
           tobacco  products at the time the same are purchased or received.
           Whoever shall be found guilty of violating this section shall  be
           guilty of a Class III misdemeanor for each offense.


   License for sale of tobacco; where obtained; prohibited sales.
                     28-1421.    Licenses  for  the sale of cigars, tobacco,
           cigarettes, and cigarette material to persons  over  the  age  of
           eighteen  years  shall  be  issued  to individuals, partnerships,
           limited liability companies, and corporations  by  the  clerk  or
           finance  director  of any city or village and by the county clerk
           of any county upon application duly made as provided  in  section
           28-1422.    The  sale  of  cigarettes or cigarette materials that
           contain perfumes or drugs in any form is prohibited  and  is  not
           licensed  by the provisions of this section.  Only cigarettes and
           cigarette material containing pure white paper and  pure  tobacco
           shall be licensed.


   License for sale of tobacco; application; contents.
                     28-1422.   Every person, partnership, limited liability
           company, or corporation desiring a license under sections 28-1420
           to 28-1429 shall file with the clerk or finance department of the
           city, town, or village where his, her, their,  or  its  place  of
           business  is  located,  if  within the limits of a city, town, or
           village or with the clerk of  the  county  where  such  place  of
           business  is  located if outside the limits of any city, town, or
           village a written application stating the  name  of  the  person,
           partnership,  limited  liability company, or corporation for whom
           such license is desired and the exact location of  the  place  of
           business  and  shall  deposit with such application the amount of
           the license fee provided in section 28-1423.  If the applicant is
           an individual, the  application  shall  include  the  applicant's
           social security number.


   License for sale of tobacco; term; fees; false swearing; penalty.
                     28-1423.    The  term  for which such license shall run
           shall be from the date of filing such application and paying such
           license fee to and including December 31 of the calendar year  in
           which  application  for such license is made, and the license fee
           for  any  person,  partnership,  limited  liability  company,  or
           corporation  selling  at  retail  shall be twenty-five dollars in
           cities of the metropolitan class, fifteen dollars  in  cities  of
           the  primary  and first classes, and ten dollars in cities of all
           other classes and in towns and villages and in locations  outside
           of  the  limits  of  cities,  towns  and  villages.   Any person,
           partnership, limited liability company,  or  corporation  selling
           annually  in  the  aggregate more than one hundred fifty thousand
           cigars, packages of cigarettes, and packages of  tobacco  in  any
           form,  at  wholesale,  shall  pay  a  license  fee of one hundred
           dollars, and if such combined annual sales amount  to  less  than
           one  hundred  fifty  thousand  cigars, packages of cigarettes and
           packages of tobacco, the annual  license  fee  shall  be  fifteen
           dollars.   No wholesaler's license shall be issued in any year on
           a less basis than  one  hundred  dollars  per  annum  unless  the
           applicant  for  the  same  shall  file  with  such  application a
           statement duly sworn to by himself or herself, or if applicant is
           a partnership, by a member of the firm, or if a limited liability
           company, by  a  member  or  manager  of  the  company,  or  if  a
           corporation,  by  an officer or manager thereof, that in the past
           such  wholesaler's  combined  sales  of   cigars,   packages   of
           cigarettes,  and  packages  of  tobacco  in  every  form have not
           exceeded in the aggregate one hundred  fifty  thousand  annually,
           and that such sales will not exceed such aggregate amount for the
           current  year  for  which  the  license is to issue.   Any person
           swearing falsely in such affidavit shall be guilty of perjury and
           upon conviction thereof shall be punished as provided by  section
           28-915  and  such wholesaler's license shall be revoked until the
           full license fee of one hundred dollars is paid.  If  application
           for  license  is  made after July 1 of any calendar year, the fee
           shall be one-half of the fee provided in this section.


   License for sale of tobacco; rights of licensee.
                     28-1424.  The license, provided for in sections 28-1421
           and  28-1422  when  issued,  shall  authorize the sale of cigars,
           tobacco, cigarettes, and cigarette material by the  licensee  and
           employees,  to  persons  over  the  age of eighteen years, at the
           place of business described in such license for the term  therein
           authorized,  unless  the same be forfeited as provided in section
           28-1425.


   Licensees;  sale  of tobacco to persons under the age of eighteen
           years; penalty.
                     28-1425.  Any licensee who shall sell, give or  furnish
           in  any way to any person under the age of eighteen years, or who
           shall willingly allow to be taken from his place of  business  by
           any  person under the age of eighteen years, any cigars, tobacco,
           cigarettes or cigarette material, shall be guilty of a Class  III
           misdemeanor.   Any officer, director, or manager having charge or
           control either separately or jointly with others, of the business
           of any corporation which  violates  the  provisions  of  sections
           28-1420  to  28-1429,  if he have knowledge of the same, shall be
           subject to the penalties provided in this section.   In  addition
           to the penalties provided in this section, such licensee shall be
           subject  to the additional penalty of a revocation and forfeiture
           of his, their, or its license, at the  discretion  of  the  court
           before  whom  the complaint for violation of said sections may be
           heard.   If such license be revoked  and  forfeited,  all  rights
           under such license shall at once cease and terminate.


   Licenses for sale of tobacco; fees inure to school fund.
                     28-1426.  All money collected as license fees under the
           provisions  of sections 28-1420 to 28-1429, shall be paid over by
           the clerk or finance director receiving it to  the  treasurer  of
           the school fund for the particular city, town, village or county,
           as the case may be.


   Minor misrepresenting age to obtain tobacco; penalty.
                     28-1427.    Any  person under the age of eighteen years
           who  shall  obtain  cigars,  tobacco,  cigarettes  or   cigarette
           material  from a licensee hereunder by representing that he is of
           the age of eighteen years or over, shall be guilty of a  Class  V
           misdemeanor.


   Transfer of tobacco license.
                     28-1428.    In case of the sale of a business where the
           owner has  a  license  hereunder,  the  licensing  authority  may
           authorize  such  license  to be transferred to the purchaser.  In
           case of a change of  location  by  any  licensee  hereunder,  the
           licensing   authority  may  transfer  such  license  to  the  new
           location.


   Revocation of tobacco license; reissue.
                     28-1429.    In the event that the license of a licensee
           hereunder shall be revoked and forfeited as provided  in  section
           28-1425,  no  new  license shall be issued to such licensee until
           the expiration of one year from the date of such  revocation  and
           forfeiture.

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                         Chapter 69.  Personal Property.

   Tobacco Enforcement Fund; created; use; investment.
                     69-2701.    (1)  For  purposes  of this section, Master
           Settlement Agreement means the settlement agreement (and  related
           documents)  entered  into  on November 23, 1998, by the state and
           leading United States tobacco manufacturers.
                     (2) The Tobacco Enforcement Fund is created.  Any money
           received by the state from the State Enforcement Fund established
           as part of the Master Settlement  Agreement  shall  be  deposited
           into the Tobacco Enforcement Fund.  The fund shall be used by the
           Attorney  General  to enforce the Master Settlement Agreement and
           to investigate and litigate potential violations of state tobacco
           laws.  The Attorney General may contract with the Nebraska  State
           Patrol  and  local  law  enforcement  agencies to assist with the
           investigation.  The contractual costs may be paid from the  fund.
           Any  money in the fund available for investment shall be invested
           by the state investment officer pursuant to the Nebraska  Capital
           Expansion Act and the Nebraska State Funds Investment Act.


   Tobacco product manufacturer; terms, defined.
                     69-2702.    For  purposes  of  this section and section
           69-2703:
                     (1)  Adjusted  for   inflation   means   increased   in
           accordance with the formula for inflation adjustment set forth in
           Exhibit C to the Master Settlement Agreement;
                     (2)   Affiliate   means   a  person  that  directly  or
           indirectly owns or controls, is owned or  controlled  by,  or  is
           under  common  ownership or control with, another person.  Solely
           for purposes of this subdivision, the terms owns, is  owned,  and
           ownership   means   ownership  of  an  equity  interest,  or  the
           equivalent thereof, of ten percent or more, and the  term  person
           means   an   individual,   partnership,  committee,  association,
           corporation, or any other organization or group of persons;
                     (3) Allocable share means allocable share as that  term
           is defined in the Master Settlement Agreement;
                     (4) Cigarette means any product that contains nicotine,
           is  intended  to be burned or heated under ordinary conditions of
           use, and consists of or contains (a) any roll of tobacco  wrapped
           in paper or in any substance not containing tobacco; (b) tobacco,
           in any form, that is functional in the product, which, because of
           its  appearance,  the  type of tobacco used in the filler, or its
           packaging and labeling, is likely to be offered to, or  purchased
           by,  consumers as a cigarette; or (c) any roll of tobacco wrapped
           in  any  substance  containing  tobacco  which,  because  of  its
           appearance,  the  type  of  tobacco  used  in  the filler, or its
           packaging and labeling, is likely to be offered to, or  purchased
           by, consumers as a cigarette described in subdivision (a) of this
           subdivision.    The term cigarette includes roll-your-own tobacco
           (i.e., any  tobacco  which,  because  of  its  appearance,  type,
           packaging,  or  labeling  is  suitable  for  use and likely to be
           offered to, or purchased by,  consumers  as  tobacco  for  making
           cigarettes).  For purposes of this definition, nine-hundredths of
           an ounce of roll-your-own tobacco shall constitute one individual
           cigarette;
                     (5)  Master  Settlement  Agreement means the settlement
           agreement entered into on November 23, 1998,  between  the  state
           and  specific  United  States  tobacco  product manufacturers and
           related documents to such agreement;
                     (6) Qualified escrow fund means an  escrow  arrangement
           with  a federally or state-chartered financial institution having
           no affiliation with any tobacco product manufacturer  and  having
           assets  of  at  least  one billion dollars where such arrangement
           requires that such financial institution hold the escrowed funds'
           principal for the benefit of releasing parties and prohibits  the
           tobacco  product  manufacturer that places such funds into escrow
           from using,  accessing,  or  directing  the  use  of  the  funds'
           principal except as consistent with subdivision (2)(b) of section
           69-2703;
                     (7)  Released claims means released claims as that term
           is defined in the Master Settlement Agreement;
                     (8) Releasing parties means releasing parties  as  that
           term is defined in the Master Settlement Agreement;
                     (9)  Tobacco  product manufacturer means an entity that
           after April 29, 1999, directly and not  exclusively  through  any
           affiliate:
                     (a)   Manufactures   cigarettes   anywhere   that  such
           manufacturer intends to be sold in the United  States,  including
           cigarettes  intended  to  be sold in the United States through an
           importer (except when such importer is an original  participating
           manufacturer  (as  that  term is defined in the Master Settlement
           Agreement) that will be responsible for the  payments  under  the
           Master  Settlement Agreement with respect to such cigarettes as a
           result of the provisions  of  subsection  II(mm)  of  the  Master
           Settlement  Agreement  and  that  pays  the  taxes  specified  in
           subsection II(z) of the Master Settlement Agreement, and provided
           that the manufacturer of  such  cigarettes  does  not  market  or
           advertise such cigarettes in the United States);
                     (b)  Is  the first purchaser anywhere for resale in the
           United  States  of  cigarettes  manufactured  anywhere  that  the
           manufacturer does not intend to be sold in the United States; or
                     (c)  Becomes  a  successor  of  an  entity described in
           subdivision (9)(a) or (9)(b) of this section.
                     The term tobacco product manufacturer does not  include
           an  affiliate  of  a  tobacco  product  manufacturer  unless such
           affiliate itself falls within any of subdivisions (9)(a)  through
           (9)(c) of this section; and
                     (10)   Units   sold  means  the  number  of  individual
           cigarettes sold in the state by the  applicable  tobacco  product
           manufacturer,   whether   directly   or  through  a  distributor,
           retailer, or similar intermediary or intermediaries,  during  the
           year  in  question,  as measured by excise taxes collected by the
           state on packs or roll-your-own  tobacco  containers.    The  Tax
           Commissioner   shall   adopt   and   promulgate  such  rules  and
           regulations as are necessary to ascertain  the  amount  of  state
           excise  tax  paid  on  the  cigarettes  of  such  tobacco product
           manufacturer for each year.


   Tobacco  product  manufacturer;  requirements  to sell within the
           state.
                     69-2703.   Any  tobacco  product  manufacturer  selling
           cigarettes  to  consumers  within  the state, whether directly or
           through a  distributor,  retailer,  or  similar  intermediary  or
           intermediaries,  after  April  29,  1999,  shall  do  one  of the
           following:
                     (1) Become a participating manufacturer, as  that  term
           is  defined in section II(jj) of the Master Settlement Agreement,
           and generally perform its financial obligations under the  Master
           Settlement Agreement; or
                     (2)(a)  Place  into a qualified escrow fund by April 15
           of the year following the year in question the following amounts,
           as such amounts are adjusted for inflation:
                     (i) 1999: $.0094241 per unit sold after April 29, 1999;
                     (ii) 2000: $.0104712 per unit sold;
                     (iii) For each of the years 2001  and  2002:  $.0136125
           per unit sold;
                     (iv)  For each of the years 2003, 2004, 2005, and 2006:
           $.0167539 per unit sold; and
                     (v)  For  the  year  2007  and  each  year  thereafter:
           $.0188482 per unit sold.
                     (b)  A  tobacco  product manufacturer that places funds
           into escrow pursuant to subdivision (2)(a) of this section  shall
           receive  the  interest  or  other  appreciation  on such funds as
           earned.  Such funds shall be released from escrow only under  the
           following circumstances:
                     (i)  To  pay  a  judgment or settlement on any released
           claim brought against such tobacco product  manufacturer  by  the
           state  or  any  releasing party located or residing in the state.
           Funds shall  be  released  from  escrow  under  this  subdivision
           (2)(b)(i)  in the order in which they were placed into escrow and
           only to the extent and at the time  necessary  to  make  payments
           required under such judgment or settlement;
                     (ii)  To the extent that a tobacco product manufacturer
           establishes that the amount it was required to place into  escrow
           in a particular year was greater than the state's allocable share
           of  the  total  payments  that  such manufacturer would have been
           required to  make  in  that  year  under  the  Master  Settlement
           Agreement  (as  determined  pursuant  to  section IX(i)(2) of the
           Master Settlement Agreement, and before any of the adjustments or
           offsets described in section IX(i)(3)  of  that  agreement  other
           than  the  Inflation  Adjustment)  had  it  been  a participating
           manufacturer, the excess shall be released from escrow and revert
           back to such tobacco product manufacturer; or
                     (iii) To the extent  not  released  from  escrow  under
           subdivisions (2)(b)(i) or (2)(b)(ii) of this section, funds shall
           be  released  from escrow and revert back to such tobacco product
           manufacturer twenty-five years after the date on which they  were
           placed into escrow.
                     (c)  Each  tobacco  product manufacturer that elects to
           place funds into escrow  pursuant  to  subdivision  (2)  of  this
           section shall annually certify to the Attorney General that it is
           in compliance with subdivision (2) of this section.  The Attorney
           General  may  bring a civil action on behalf of the state against
           any  tobacco product manufacturer that fails to place into escrow
           the funds required under  this  section.    Any  tobacco  product
           manufacturer  that  fails  in  any  year to place into escrow the
           funds required under this section shall:
                     (i) Be required within fifteen days to place such funds
           into escrow as shall bring the manufacturer into compliance  with
           this  section.    The  court,  upon  a  finding of a violation of
           subdivision (2) of this section, may impose a civil penalty in an
           amount not to  exceed  five  percent  of  the  amount  improperly
           withheld  from  escrow  per  day  of the violation and in a total
           amount not to exceed one hundred percent of the  original  amount
           improperly withheld from escrow;
                     (ii)  In  the  case of a knowing violation, be required
           within fifteen days to place such  funds  into  escrow  as  shall
           bring  the  manufacturer  into compliance with this section.  The
           court, upon a finding of a knowing violation of  subdivision  (2)
           of  this  section, may impose a civil penalty in an amount not to
           exceed fifteen percent of the  amount  improperly  withheld  from
           escrow  per  day  of  the  violation and in a total amount not to
           exceed three hundred percent of the  original  amount  improperly
           withheld from escrow.  Such civil penalty shall be disposed of in
           accordance  with  Article  VII, section 5, of the Constitution of
           Nebraska; and
                     (iii) In the case of a  second  knowing  violation,  be
           prohibited from selling cigarettes to consumers within the state,
           whether  directly  or through a distributor, retailer, or similar
           intermediary, for a period not to exceed two years.
                     Each failure to make an annual deposit  required  under
           this section constitutes a separate violation.


   Tobacco   product   manufacturer;  certification;  contents;  Tax
           Commissioner; powers and duties; directory; prohibited acts.
                     69-2706.   (1)(a) Every  tobacco  product  manufacturer
           whose  cigarettes  are  sold  in  this state, whether directly or
           through a  distributor,  retailer,  or  similar  intermediary  or
           intermediaries, shall execute and deliver on a form prescribed by
           the  Tax Commissioner a certification to the Tax Commissioner and
           the Attorney General no later than the  thirtieth  day  of  April
           each  year,  certifying  under penalty of perjury that, as of the
           date of such certification,  such  tobacco  product  manufacturer
           either  is  a participating manufacturer or is in full compliance
           with subdivision (2) of section 69-2703, including all  quarterly
           installment  payments  required  by such rules and regulations as
           may be adopted and promulgated by the Tax Commissioner.
                     (b) A participating manufacturer shall include  in  its
           certification  a  list  of its brand families.  The participating
           manufacturer shall update such list thirty calendar days prior to
           any  addition  to  or  modification  of  its  brand  families  by
           executing  and delivering a supplemental certification to the Tax
           Commissioner and the Attorney General.
                     (c) A nonparticipating manufacturer  shall  include  in
           its certification (i) a list of all of its brand families and the
           number  of units sold for each brand family that were sold in the
           state during the preceding calendar year and (ii) a list  of  all
           of  its  brand  families  that have been sold in the state at any
           time during the  current  calendar  year  (A)  indicating  by  an
           asterisk  any brand family sold in the state during the preceding
           or current calendar year that is no  longer  being  sold  in  the
           state as of the date of such certification and (B) identifying by
           name and address any other manufacturer of such brand families in
           the  preceding  calendar year.  The nonparticipating manufacturer
           shall update such list thirty calendar days prior to any addition
           to or  modification  of  its  brand  families  by  executing  and
           delivering  a  supplemental certification to the Tax Commissioner
           and the Attorney General.
                     (d) In the case  of  a  nonparticipating  manufacturer,
           such certification shall further certify:
                     (i)   That   such   nonparticipating   manufacturer  is
           registered to do business in the state or has appointed an  agent
           for service of process and provided notice thereof as required by
           section 69-2707;
                     (ii)   That   such  nonparticipating  manufacturer  has
           established and continues to maintain  a  qualified  escrow  fund
           pursuant  to  a qualified escrow agreement that has been reviewed
           and approved by the Attorney General or has  been  submitted  for
           review by the Attorney General;
                     (iii)  That  such  nonparticipating  manufacturer is in
           full compliance with subdivision (2) of section 69-2703 and  this
           section  and  any  rules  and regulations adopted and promulgated
           pursuant thereto; and
                     (iv)(A) The name, address, and telephone number of  the
           financial institution where the nonparticipating manufacturer has
           established  such  qualified  escrow  fund  required  pursuant to
           subdivision (2) of section 69-2703 and all rules and  regulations
           adopted  and promulgated pursuant thereto; (B) the account number
           of  such  qualified escrow fund and any subaccount number for the
           State  of  Nebraska;  (C)  the   amount   such   nonparticipating
           manufacturer placed in such fund for cigarettes sold in the state
           during  the preceding calendar year, the dates and amount of each
           such deposit, and such evidence or verification as may be  deemed
           necessary  by  the Attorney General to confirm the foregoing; and
           (D) the amounts and dates of any withdrawal or transfer of  funds
           the nonparticipating manufacturer made at any time from such fund
           or  from  any other qualified escrow fund into which it ever made
           escrow payments pursuant to subdivision (2)  of  section  69-2703
           and  all  rules  and regulations adopted and promulgated pursuant
           thereto.
                     (e) A tobacco product manufacturer shall not include  a
           brand  family  in  its  certification unless (i) in the case of a
           participating  manufacturer,   the   participating   manufacturer
           affirms  that  the  brand  family  is  to  be  deemed  to  be its
           cigarettes for purposes of calculating  its  payments  under  the
           Master  Settlement  Agreement for the relevant year in the volume
           and shares determined pursuant to the Master Settlement Agreement
           and (ii) in the case  of  a  nonparticipating  manufacturer,  the
           nonparticipating manufacturer affirms that the brand family is to
           be deemed to be its cigarettes for purposes of subdivision (2) of
           section  69-2703.   Nothing in this section shall be construed as
           limiting or otherwise affecting the  state's  right  to  maintain
           that a brand family constitutes cigarettes of a different tobacco
           product  manufacturer  for purposes of calculating payments under
           the Master  Settlement  Agreement  or  for  purposes  of  section
           69-2703.
                     (f)  Tobacco  product  manufacturers shall maintain all
           invoices and documentation of sales and  other  such  information
           relied  upon  for  such  certification for a period of five years
           unless otherwise required by law to maintain them for  a  greater
           period of time.
                     (2)  The  Tax Commissioner shall develop, maintain, and
           make available for public inspection or publish on its web site a
           directory listing all tobacco  product  manufacturers  that  have
           provided  current  and  accurate certifications conforming to the
           requirements of subsection (1) of  this  section  and  all  brand
           families that are listed in such certifications except:
                     (a) The Tax Commissioner shall not include or retain in
           such  directory the name or brand families of any tobacco product
           manufacturer  that   has   failed   to   provide   the   required
           certification  or whose certification the commissioner determines
           is not in compliance with subdivisions (1)(c)  and  (d)  of  this
           section  unless  the  Tax  Commissioner  has determined that such
           violation has been cured to his or her satisfaction;
                     (b) Neither a tobacco product  manufacturer  nor  brand
           family  shall  be  included  or  retained in the directory if the
           Attorney General recommends and notifies the Tax Commissioner who
           concludes, in the case of a nonparticipating  manufacturer,  that
           (i)  any  escrow  payment required pursuant to subdivision (2) of
           section 69-2703 for any period for any brand family,  whether  or
           not  listed  by  such nonparticipating manufacturer, has not been
           fully paid into a qualified escrow fund governed by  a  qualified
           escrow  agreement  that has been approved by the Attorney General
           or  (ii)  any  outstanding  final  judgment,  including  interest
           thereon,  for  violations  of  section 69-2703 has not been fully
           satisfied for such brand family and such manufacturer;
                     (c) The Tax Commissioner shall update the directory  no
           later  than May 15 of each year to reflect certifications made on
           or before April 30 as required in subsection (1) of this section.
           The Tax Commissioner shall continuously update the  directory  as
           necessary  in  order  to  correct mistakes and to add or remove a
           tobacco  product  manufacturer  or  brand  family  to  keep   the
           directory in conformity with the requirements of sections 69-2704
           to 69-2710;
                     (d)  The  Tax  Commissioner  shall transmit by email or
           other practicable means to each  stamping  agent  notice  of  any
           removal from the directory of any tobacco product manufacturer or
           brand family.  Unless otherwise provided by agreement between the
           stamping  agent  and a tobacco product manufacturer, the stamping
           agent shall be entitled  to  a  refund  from  a  tobacco  product
           manufacturer  for  any  money  paid  by the stamping agent to the
           tobacco product manufacturer for any cigarettes  of  the  tobacco
           product manufacturer still held by the stamping agent on the date
           of  notice  by  the  Tax  Commissioner  of  the  removal from the
           directory of that  tobacco  product  manufacturer  or  the  brand
           family  or  for  any cigarettes returned to the stamping agent by
           its customers under subsection (2) of section 69-2709.   The  Tax
           Commissioner  shall  not  restore  to  the  directory the tobacco
           product manufacturer  or  the  brand  family  until  the  tobacco
           product  manufacturer has paid the stamping agent any refund due;
           and
                     (e) Every stamping agent shall provide  and  update  as
           necessary  an electronic mail address to the Tax Commissioner for
           the purpose of receiving any notifications as may be required  by
           sections 69-2704 to 69-2710.
                     (3)  It shall be unlawful for any person (a) to affix a
           Nebraska stamp to a package or other container of cigarettes of a
           tobacco product manufacturer or brand family not included in  the
           directory  or  (b)  to  sell,  offer, or possess for sale in this
           state cigarettes of  a  tobacco  product  manufacturer  or  brand
           family  intended  for  sale  in  this  state  not included in the
           directory.

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                     Chapter 71.  Public Health and Welfare.

   Tobacco   Prevention   and   Control  Cash  Fund;  created;  use;
           investment.
                     71-5714.  The Tobacco Prevention and Control Cash  Fund
           is created.  The fund shall be used for a comprehensive statewide
           tobacco-related   public   health  program  administered  by  the
           Department of Health and Human Services which  includes,  but  is
           not  limited to (1) community programs to reduce tobacco use, (2)
           chronic disease programs,  (3)  school  programs,  (4)  statewide
           programs,  (5)  enforcement, (6) counter marketing, (7) cessation
           programs,   (8)   surveillance   and    evaluation,    and    (9)
           administration.  Any  money in the Tobacco Prevention and Control
           Cash Fund available for investment shall be invested by the state
           investment officer pursuant to the Nebraska Capital Expansion Act
           and the Nebraska State Funds Investment Act.


   Teen  Tobacco Education and Prevention Project; created; purpose;
           Teen Tobacco Education and Prevention Project Committee; created;
           members; expenses; project proposals; procedure; report.
                     71-5715.  (1) The Teen Tobacco Education and Prevention
           Project is created.  The purpose of the  project  is  to  provide
           scholarships for high school students who design creative project
           proposals  to  aid in the prevention, reduction, and cessation of
           teen smoking and to provide award money for the sponsors of  such
           proposals.
                     (2)  The  Teen Tobacco Education and Prevention Project
           Committee is created.  The committee shall develop  criteria  for
           the  submission  of  project  proposals  and shall select winning
           project proposals pursuant to subsection (4) of this section  and
           rules and regulations adopted and promulgated under this section.
           The  committee  shall be appointed by the Governor and shall have
           no more than fifteen members.   Committee members  shall  include
           (a) high school teachers or advisors, (b) one high school student
           from  each  category  of  school listed in subsection (4) of this
           section,  (c)  a  physician,  (d)  persons  with  advertising  or
           broadcasting expertise, (e) tobacco control advocates, (f) public
           health representatives, and (g) business persons.  Any vacancy on
           the  committee  shall be filled in the same manner as the initial
           appointment.  The Department of Health and Human  Services  shall
           provide staff support for the committee.  Committee members shall
           be reimbursed for their actual and necessary expenses as provided
           in sections 81-1174 to 81-1177.
                     (3)  On  or  before  December  31 of each year prior to
           2003, high  school  students  who  reside  or  attend  school  in
           Nebraska  may  submit  project  proposals to the committee.  Each
           project proposal shall be designed and developed, by no more than
           four high school students, to be implemented statewide or in  the
           school, community, or geographic
           area  where  such  students  reside  or  attend school.   Project
           proposals may include programs,  advertisement  campaigns,  small
           group  projects,  conferences,  seminars,  billboards, pamphlets,
           productions,  television  advertisements,  radio  advertisements,
           promotional ideas, or any other innovative concept the purpose of
           which  is  to  help  reduce,  prevent, or stop teen smoking.  The
           budget for each project proposal shall  not  exceed  one  hundred
           thousand  dollars.    The Department of Health and Human Services
           shall use all reasonable efforts to promote the program and shall
           provide at least one application  to  each  high  school  in  the
           state.
                     (4)  By  March  1  of  each  year  prior  to  2004, the
           committee shall select four winning project proposals from  among
           those submitted:  (a) One from a school with a membership of less
           than  one  hundred  twenty-five  students  in grades nine through
           twelve, (b) one from a school with  a  membership  of  less  than
           three  hundred  twenty  but  at  least  one  hundred  twenty-five
           students in grades nine through twelve, (c)  one  from  a  school
           with  a  membership  of less than one thousand fifty but at least
           three hundred twenty students in grades nine through twelve,  and
           (d)  one from a school with a membership of one thousand fifty or
           more students in grades nine through twelve.   The  designers  of
           the   winning   project   proposals   shall  each  be  awarded  a
           five-thousand-dollar   scholarship   and   shall   oversee    the
           implementation  of  such  project proposals statewide or in their
           school, community, or geographic  area.    The  sponsor  of  each
           winning  project  proposal  shall  also  be awarded five thousand
           dollars.   The Department of  Health  and  Human  Services  shall
           oversee  and  administer  the sponsorship awards provided in this
           section.
                     (5) The Department of Health and Human  Services  shall
           adopt  and promulgate rules and regulations as necessary to carry
           out the duties set forth in subsections (1) through (4)  of  this
           section.
                     (6)   The  Coordinating  Commission  for  Postsecondary
           Education shall oversee and administer the scholarships  provided
           in  this  section.   Scholarships may only be used by an eligible
           student for educational expenses  at  an  eligible  postsecondary
           educational institution as defined under the Nebraska Scholarship
           Act.    The  commission  shall  adopt  and  promulgate  rules and
           regulations as necessary to carry out the  duties  set  forth  in
           this subsection.
                     (7)  The  Department of Health and Human Services shall
           annually review the Teen Tobacco Education and Prevention Project
           and  submit  a  report  of  such  review  to  the  Governor   and
           Legislature on or before December 31 of each year prior to 2004.


   Nebraska Tobacco Settlement Trust Fund; created; use; investment.
                     71-7608.  The Nebraska Tobacco Settlement Trust Fund is
           created.  The fund shall include any settlement payments or other
           revenue  received by the State of Nebraska in connection with any
           tobacco-related litigation to which the State of  Nebraska  is  a
           party.    The Department of Health and Human Services Finance and
           Support shall remit such  revenue  to  the  State  Treasurer  for
           credit  to  the fund. Subject to the terms and conditions of such
           litigation, money from the Nebraska Tobacco Settlement Trust Fund
           shall be transferred to the Nebraska Health  Care  Cash  Fund  as
           provided  in  section 71-7611.  Any money in the Nebraska Tobacco
           Settlement Trust Fund available for investment shall be  invested
           by  the state investment officer pursuant to the Nebraska Capital
           Expansion Act and the Nebraska State Funds Investment Act.

 ___________________________________________________________________________


                         Chapter 77.  Revenue and Taxation.

   Tobacco products, defined.
                     77-4007.    Tobacco products shall mean (1) cigars, (2)
           cheroots, (3) stogies, (4) periques, (5)  granulated,  plug  cut,
           crimp  cut,  ready  rubbed, and other smoking tobacco, (6) snuff,
           (7) snuff flour, (8) cavendish, (9) plug and twist tobacco,  (10)
           fine  cut  and other chewing tobacco, (11) shorts, refuse scraps,
           clippings, cuttings, and sweepings of  tobacco,  and  (12)  other
           kinds  and  forms  of  tobacco,  prepared in such manner as to be
           suitable for chewing or smoking in a pipe or  otherwise  or  both
           for  chewing  and smoking, except that tobacco products shall not
           mean cigarettes as defined in section 77-2601.


   Tobacco   Products   Administration   Cash  Fund;  created;  use;
           investment.
                     77-4025.  There is hereby created a cash  fund  in  the
           Department  of  Revenue  to  be  known  as  the  Tobacco Products
           Administration Cash  Fund.    Except  as  otherwise  provided  in
           section  77-4008,  all  revenue  collected or received by the Tax
           Commissioner from the license  fees  and  taxes  imposed  by  the
           Tobacco Products Tax Act shall be remitted to the State Treasurer
           for credit to the Tobacco Products Administration Cash Fund.  All
           costs required for administration of the Tobacco Products Tax Act
           shall  be paid from such fund.  Credits and refunds allowed under
           the act shall be paid from the  Tobacco  Products  Administration
           Cash Fund.  Any receipts, after credits and refunds, in excess of
           the  amounts  sufficient to cover the costs of administration may
           be transferred to the  General  Fund  at  the  direction  of  the
           Legislature.  The State Treasurer shall transfer two million five
           hundred thousand dollars from the Tobacco Products Administration
           Cash  Fund to the General Fund within fifteen days after November
           1, 2002.  Any money in the Tobacco Products  Administration  Cash
           Fund  available  for  investment  shall  be invested by the state
           investment officer pursuant to the Nebraska Capital Expansion Act
           and the Nebraska State Funds Investment Act.

 ___________________________________________________________________________


                         Chapter 79.  Schools.

   School systems; tobacco, alcohol, and drugs; failure to instruct;
           action of State Department of Education.
                     79-714.   School systems failing to meet the provisions
           of sections 79-712 and 79-713 shall be guilty of a deviation from
           the rules and regulations for the approval and  accreditation  of
           schools,  and  proper action by the State Department of Education
           shall be taken.


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