Oklahoma Tobacco Manufacturer Bond

OklahomaSB 608 is a new Oklahoma State law relating to “nonparticipating tobacco manufacturers” that was enacted this year. The new law requires “nonparticipating tobacco manufacturers” to acquire a surety bond to be included in the State’s directory of tobacco manufacturers and cigarette varieties. The nonparticipating manufacturers do not partake in the Master Settlement Agreement and as a substitute place funds in escrow account. The manufacturers also may be required to attain a surety bond if they have been predicted to create amplification of risk for disobedience of the law. The surety bond must be $50,000, or the quantity the manufacturer is obliged to deposit due to its prior calendar year’s sales in Oklahoma, whichever is more. SB 608 became active on January 1st, 2010.