The following are summaries of tobacco-related statutes contained in the Ohio Revised Code. Please note that federal and local laws and regulations may also apply to tobacco-related issues.

Tobacco Master Settlement Agreement (MSA) Allocation of payments from the 1998 MSA agreement between 46 state Attorneys General and leading tobacco manufacturers.

Tobacco Product Manufacturer Escrow Accounts Tobacco manufacturers that did not sign the MSA must set aside funds to pay claims brought by the state.

Minors Minors are prohibited from possessing, using, purchasing, or receiving cigarettes or other tobacco products.

Public Transportation The law limits smoking on public transportation.

Illegal Distribution Restrictions on the packaging and distribution of tobacco products, including distribution to minors and via vending machines.

Illegal Shipments of Cigarettes (Internet Purchases Prohibited)

Public Schools Smoking or possession and use of tobacco by school students is prohibited.

Boards of Health The law limits the regulatory authority of Boards of Health.

Workplaces and Public Places The law prohibits smoking in nearly all workplaces and public places.

Child Care Centers The law prohibits smoking in child day-care centers.

Correctional Institutions The law limits smoking in designated correctional facilities.

Cigarette and Tobacco Taxes Statutes concerning taxes on tobacco products.

ORC § 183: Tobacco Master Settlement Agreement

• Details the state’s use of the proceeds from the 1998 Master Settlement Agreement (MSA) between the Attorneys General of 46 states (including Ohio) and the leading tobacco manufacturers.
• Creates the Tobacco Master Settlement Agreement Fund to collect Ohio’s share of the annual MSA payments. The General Assembly is to apportion a set percentage of these funds to the Tobacco Use Prevention and Cessation Trust Fund (the exact percentage varies by year).
• Additional portions of the MSA proceeds are to be allocated to the Law Enforcement Improvement Trust Fund, the Southern Ohio Agricultural and Community Development Trust Fund, the Public Health Priorities Trust Fund, the Biomedical Research and Technology Transfer Trust Fund, the Education Facilities Trust Fund, the Education Facilities Endowment Fund, the Education Technology Trust Fund, the Income Tax Reduction Fund, and the Tobacco Settlement Enforcement Fund.
• Creates the Ohio Tobacco Prevention Foundation (OTPF). OTPF is funded by the Tobacco Use Prevention and Cessation Trust Fund, and it is charged with preparing and executing a plan to reduce tobacco use by Ohioans, with an emphasis on reducing the use of tobacco by youth, minority and regional populations, pregnant women, and others who may be disproportionately affected by the use of tobacco.
• Creates the Southern Ohio Agriculture and Community Development Foundation. The Foundation is funded by the Southern Ohio Agriculture and Community Development Foundation Endowment Fund, and it is charged with endeavoring to replace the production of tobacco in southern Ohio with the production of other agricultural products and to mitigate the adverse economic impact of reduced tobacco production in the region.
• Allows the OTPF Board of Trustees to form a nonprofit organization for the purpose of raising money to aid the foundation in the conduct of its duties.

Note: The Fiscal Year 2008-2009 budget approved by the legislature and signed by the governor included a plan to securitize the Master Settlement Agreement payments that the state is scheduled to receive of the next 40 years.  In place of annual payments, the state will receive one lump-sum amount.  The proceeds of the securitization will be used to fund school construction and reduce property taxes for senior citizens.  None of the proceeds of securitization were allocated to tobacco prevention efforts.

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ORC § 1346: Tobacco Product Manufacturer Escrow Accounts

• Tobacco manufacturers that sell cigarettes to Ohio consumers must become participants in the MSA or must annually place a set percentage of their proceeds into escrow. The escrow account is to be used to pay a judgment or settlement on any claim brought against the manufacturer by the State or its subdivisions.
• Tobacco manufacturers must file an annual certification with the Ohio Attorney General stating whether they are participants in the MSA or participants in the escrow program. Certifications must be accompanied by a list of cigarette brand names offered for sale. The Attorney General is to publish a directory listing all tobacco product manufacturers that have provided current and accurate certifications and all brand families listed in those certifications. No cigarettes may be sold, offered for sale, or possessed in Ohio unless the brand name is included in the Attorney General’s directory.

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ORC § 2151.87: Minors prohibited from possessing, using, purchasing, or receiving cigarettes or other tobacco products

• Unless accompanied by a parent, spouse of 18 or older, or legal guardian, no child under the age of 18 is to:
  • use, consume, or possess cigarettes or other tobacco products;
  • order or pay for cigarettes or other tobacco products;
  • accept or receive cigarettes or other tobacco products; or
  • provide false information for the purpose of obtaining cigarettes or other tobacco products.
• A juvenile court that finds that a child has violated this section may do either or both of the following:
  • require the child to attend a smoking education or treatment program; and/or
  • impose a fine of not more than $100.
• If a child disobeys the court order, the court may:
  • increase the fine imposed;
  • require not more than 20 hours of community service; or
  • suspend the child’s driver’s license or temporary permit for 30 days.

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ORC § 2917.41: Smoking limited on public transportation

• No smoking on public transportation where smoking is marked as being prohibited.
• A first violation is a minor misdemeanor; subsequent violations are fourth degree misdemeanors.

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ORC § 2927.02 et seq: Illegal distribution of cigarettes and tobacco products

Minors:

• No manufacturer, producer, distributor, wholesaler, or retailer of cigarettes and tobacco products, or any employee or representative thereof, may give, sell, or distribute cigarettes or other tobacco products to a minor.
• Retailers must conspicuously post a sign stating that giving, selling, or distributing cigarettes or other tobacco products to a minor is prohibited by law.

Vending Machines:

• Vending machines may not be used to sell cigarettes or other tobacco products except in the following locations:
  • within a factory, business, office, or other place not open to the general public;
  • in an area to which children are generally not permitted access; or
  • within the immediate vicinity, plain view, and control of the person operating the premises, or an employee thereof, such that all sales will be readily observed (and provided that the vending machine is inaccessible to the public when the premises are closed).

Packaging:

• Cigarettes cannot be packaged, sold, or distributed in any pack or container with fewer than 20 cigarettes.

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ORC § 2927.023: Illegal Shipments of Cigarettes (Internet Sales Prohibited)

• No person or shipping entity shall knowingly transport cigarettes to any person in Ohio unless the recipient is an “authorized recipient of tobacco products.”  “Authorized recipients” include licensed wholesalers, licensed distributors, and persons who have received approval of the tax commissioner to receive cigarette shipments.  Shipments to residential addresses are presumed to be violations of the law.

• Fine of up to $1000 for each violation.

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ORC § 3313.75.1: Smoking or possession and use of tobacco by school students prohibited

 

• No public school student shall smoke, use, or possess tobacco in any area under the control of a school district or at any school function.
• The board of education of each district is responsible for enforcing this section and establishing penalties.

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ORC § 3709.21: Authority of Boards of Health

 

• Boards of Health of a general health district “may make such orders and regulations as are necessary... for the public health, the prevention or restriction of disease, and the prevention, abatement, or repression of nuisances.”

Note: In D.A.B.E., Inc. v. Toledo-Lucas County Bd. of Health, 96 Ohio St.3d 250 (2002), the Ohio Supreme Court held that ORC § 3709.21 did not grant the Toledo-Lucas County Board of Health the authority to prohibit smoking in all public places.

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ORC § 3794: Smoking limited in workplaces and public places (Smoke-Free Workplace Act)

• Smoking or burning of tobacco is prohibited in enclosed areas of public places and enclosed areas of places of employment.  An enclosed area is defined as a space with a roof or other overhead covering and walls or other side coverings on three or more sides.
• The following places are exempt from the prohibition:
  • private residences, except during hours of operation as a child care or adult care facility for compensation, or when an operator or employee is present that does not reside in the residence or is related to the owner;
  • retail tobacco stores where 80 percent of gross revenue is derived from tobacco products or smoking accessories and the sale of other products is merely incidental;
  • family-owned and operated businesses in which all employees are related to the owner, but only if enclosed areas of the business are not open to the public, and the business solely occupies a free-standing structure where smoke does not drift into  areas where smoking is prohibited
  • designated smoking areas in nursing homes for smoking by residents of the nursing home exclusively;
  • up to 20 percent of sleeping rooms in hotels and other lodging facilities;
  • outdoor patios which are not defined as enclosed areas;
  • private clubs, provided that they meet all of the following requirements:
    • the club has no employees;
    • the club is organized as a not for profit entity;
    • only members of the club are present;
    • the club is located in a freestanding structure occupied solely by the club;
    • smoke does not migrate into an enclosed area where smoking is prohibited; and
    • if the club serves alcohol, it holds a valid D4 liquor permit
• The posting of no smoking signs is required in all public places and places of employment where smoking is prohibited.  All receptacles for disposing of smoking materials must be removed from areas where smoking is prohibited.
• The proprietor of a public place or place of employment is prohibited from allowing smoking in areas where it is prohibited by law.  The proprietor of a public place or place of employment is required to ensure that tobacco smoke does not enter enclosed areas through doors, windows or ventilation systems.  No person shall refuse to immediately stop smoking in any area where it is prohibited when asked by the proprietor or an employee.  No person or employer shall discharge, refuse to hire, or in any other manner retaliate for exercising any right, including reporting a violation, or performing any obligation under this chapter.
• The Ohio Department of Health is required to implement a plan for public education regarding the law, provide proprietors of public places and places of employment with informational material on compliance, establish a process for persons to report violations, provide an opportunity for proprietors or individuals to contest a report of violations, and establish administrative rules and penalties for implementation and enforcement of the law.
• A warning letter will be issued to a proprietor or individual for a first time violation.  Subsequent violations within a two year period may result in a civil fine ranging from $100 to $2,500 for a proprietor and up to $100 for an individual.

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ORC § 5104.01.5: Smoking prohibited in child day-care centers

• Smoking is prohibited in any indoor or outdoor space that is part of a child day-care center. Notice that smoking is prohibited must be conspicuously placed at the main entrance.
• Smoking may be allowed in certain day-care centers that are also the home of the provider or administrator, provided that smoking occurs during non-operational hours, in a separately ventilated indoor area apart from the day-care center, or in an outdoor area far removed from the children.

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ORC § 5145.32: Smoking limited in correctional institutions

• No person shall smoke, use, or possess tobacco at certain designated correctional facilities.
• The department of rehabilitation and correction shall provide smoking and tobacco usage cessation programs for prisoners at all state correctional institutions, subject to available funding.

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ORC § 5743: Cigarette and tobacco taxes

• Establishes excise tax on cigarette sales at the rate of 62 ½ mills per cigarette ($1.25 per pack of 20 cigarettes).
• Counties may impose an additional tax on the sale of cigarettes in the county, not to exceed 2 ¼ mills per cigarette (4.5 cents per pack of 20 cigarettes), for the purpose of servicing the debt of a sports facility. Such tax may be collected only after it is placed on the ballot and approved by a majority of those voting on the question.
• No retail dealer may have in his possession packages of cigarettes not bearing the required tax stamps.
• No person may engage in the wholesale or retail business of trafficking in cigarettes without a license to do so. The license must be conspicuously posted at the place of sale, and licenses may be revoked for failure to pay taxes or for other violations of § 5743.
• Cigarettes for which taxes have not been paid are subject to seizure by the tax commissioner. Wholesale or retail dealers who fail to pay the appropriate taxes are subject to a penalty assessment by the tax commissioner.
• Establishes an excise tax of 17% on the wholesale value of tobacco products (other than cigarettes) that are manufactured in Ohio or imported into Ohio for retail sale. Employees, officers, and managers responsible for the fiscal affairs of a company that fails to pay the tax may be held personally liable.
• REPEALED: a person may have in their possession, without incurring any tax liability, cigarettes at wholesale value of not more than $300 worth in any month and not for resale.

Note: “Tobacco products” includes (without limitation) cigars, snuff, chewing tobacco, and unrolled smoking tobacco. It is unlawful for a retail dealer to possess tobacco products on which the excise tax has not been paid.

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