Okla. Stat. tit. 68, § 68-360.7

penalties - Contraband - Seizure and forfeiture - Injunction.

A. In addition to or in lieu of any other civil or criminal

remedy provided by law, upon a determination that a stamping agent

has violated Section 360.6 of this title or any rule promulgated

pursuant to the Master Settlement Agreement Complementary Act, the

Oklahoma Tax Commission may revoke or suspend the license of the

stamping agent. Each stamp affixed and each sale or offer to sell

cigarettes in violation of the Master Settlement Agreement

Complementary Act shall constitute a separate violation. For each

violation, the Oklahoma Tax Commission may also impose a civil

penalty in an amount not to exceed the greater of five hundred

percent (500%) of the retail value of the cigarettes or Five

Thousand Dollars ($5,000.00) upon a determination of violation of

the Master Settlement Agreement Complementary Act or any rules

promulgated pursuant thereto.

B. Any cigarettes that have been sold, offered for sale, or

possessed for sale in this state or imported for personal

consumption in this state, in violation of the Master Settlement

Agreement Complementary Act, shall be deemed contraband pursuant to

the Master Settlement Agreement Complementary Act. Those cigarettes

shall be subject to seizure and forfeiture as provided by this

section and all cigarettes so seized and forfeited shall be

destroyed as provided by this section and not resold.

C. 1. Cigarettes or tobacco product distributors and

wholesalers licensed by the Oklahoma Tax Commission, pursuant to

Section 304 or 415 of this title, who also distribute cigarettes in

a state bordering Oklahoma may store in their Oklahoma warehouse

cigarettes made contraband under this section if, and only if, they

have the tax stamp of another state affixed to each package of

cigarettes.

2. Cigarettes or roll-your-own tobacco products made contraband

pursuant to this section, without being subject to seizure or

forfeiture, may be transported in, into, or through the state

either:

a. on a commercial carrier with a proper bill of lading

with an out-of-state destination,

b. when the tax stamp of another state is affixed to each

pack of cigarettes or tobacco product transported, or

c. on a commercial carrier with a proper bill of lading

to a tobacco product distributor or wholesaler

licensed by the Oklahoma Tax Commission, pursuant to

Oklahoma Statutes - Title 68. Revenue and Taxation Page 214

Section 304 or 415 of this title, who also distributes

cigarettes in a state bordering Oklahoma if, and only

if, the packing slip accompanying the shipment

indicates the shipment is for sale in another state

and indicates which state, and the invoice for the

shipment also indicates the shipment is for sale in a

state other than Oklahoma and identifies the state in

which the shipment is to be sold. The time of

delivery of the shipments shall be indicated on the

bill of lading of the common carrier when delivery is

completed. The receiving Oklahoma distributor or

wholesaler must, within twenty-four (24) hours of

receiving the delivery, affix or cause to be affixed

to each package of cigarettes the stamp of the state

in which they are to be sold.

3. All such cigarettes and tobacco products so seized shall

first be listed and appraised by the officer making such seizure and

turned over to the Tax Commission and a receipt therefor taken. The

person making such seizure shall immediately make and file a written

report thereof, showing the name of the person making such seizure,

the place where and the person from whom such property was seized,

and an inventory and appraisement thereof, at the usual and ordinary

retail price of such articles received, to the Tax Commission, and

the Attorney General, in the case of cigarettes stamped, sold,

offered for sale, or imported into this state in violation of the

provisions of Section 305.1 of this title and tobacco made
re,

the place where and the person from whom such property was seized,

and an inventory and appraisement thereof, at the usual and ordinary

retail price of such articles received, to the Tax Commission, and

the Attorney General, in the case of cigarettes stamped, sold,

offered for sale, or imported into this state in violation of the

provisions of Section 305.1 of this title and tobacco made

contraband by this section. Within sixty (60) days of seizure, the

person from whom the property was seized may file a request for

hearing with the Tax Commission or the Attorney General to show why

the seized property should not be forfeited and destroyed. If a

hearing is requested, the owner of the cigarettes and tobacco

products shall be given at least ten (10) days' notice of the

hearing. If no request for hearing is filed within the time

provided, the property seized will be forfeited and destroyed.

4. Any and all vehicles and property so seized shall be listed

and appraised by the officer making the seizure and turned over to

the county sheriff of the county in which the seizure is made and a

receipt therefor taken. The person making the seizure shall

immediately make a written report of the seizure, showing the name

of the person making the seizure, the location of the seizure, the

person from whom the property was seized, and an inventory and

appraisement of the property at the usual and ordinary retail price

of the articles received. The report shall be filed with the

Oklahoma Tax Commission and the Attorney General. The district

attorney of the county in which the seizures are made, at the

request of the Oklahoma Tax Commission or Attorney General, shall

file in the district court forfeiture proceedings in the name of the

Oklahoma Statutes - Title 68. Revenue and Taxation Page 215

State of Oklahoma, as plaintiff, and in the name of the owner or

person in possession, as defendant, if known, and if unknown or not

susceptible to the jurisdiction of the court, in the name of the

property seized. The clerk of the court shall issue a summons to

the owner or person in whose possession the property was found

directing the owner or person to answer within ten (10) days. At

the forfeiture proceeding, if a distributor or wholesaler

demonstrates through clear and convincing evidence that the

possession of contraband by the distributor or wholesaler was

accidental, the vehicle in which the contraband was being

transported shall not be forfeited. In no case, however, shall

possession of more than twenty (20) cartons of contraband product be

considered by the courts as being possessed accidentally. If the

property is declared forfeited and ordered sold, notice of the sale

shall be posted not less than ten (10) days before the date of sale

in five public places in the county in which the seizures are made.

Proceeds of the sale shall be deposited with the clerk of the court,

who shall, after deducting costs including the costs of prosecution,

storage, and sale, pay the balance to the Oklahoma Tax Commission

for deposit in the Tobacco Settlement Endowment Trust Fund.

D. The Attorney General may seek an injunction to restrain a

threatened or actual violation of the Master Settlement Agreement

Complementary Act by a stamping agent and to compel the stamping

agent to comply with those provisions. In any action brought

pursuant to this section, the state shall be entitled to recover the

costs of investigation, costs of the action, and reasonable attorney

fees.

E. 1. It shall be unlawful for a person to:

a. sell or distribute cigarettes, or

b. acquire, hold, own, possess, transport, import, or

cause to be imported cigarettes that the person knows

or should know are intended for distribution or sale

in the state in violation of the Master Settlement

Agreement Complementary Act. A violation of the act

shall be a misdemeanor.

2. A person who violates subsection C of Section 360.4 of this
to:

a. sell or distribute cigarettes, or

b. acquire, hold, own, possess, transport, import, or

cause to be imported cigarettes that the person knows

or should know are intended for distribution or sale

in the state in violation of the Master Settlement

Agreement Complementary Act. A violation of the act

shall be a misdemeanor.

2. A person who violates subsection C of Section 360.4 of this

title engages in an unfair and deceptive trade practice in violation

of the provisions of the Oklahoma Consumer Protection Act.