123STA T . 1 09PUBLIC LA W 111 – 3 —FE B. 4, 2009 (B)Sections5702 ( j ) a n d 5702( k )o f s u c hC ode a r e each a m ended by insertin g‘ ‘ , or any p rocessed tobacco, ’ ’ after ‘‘tobacco products or cigarette papers or tubes’’ . ( 6 ) EF F ECTIV E DA TE. —T he amendments made by this sub - section sha l l take effect on A pril 1 , 200 9 . (b) BA S ISF ORD E N IA L ,S U S P ENSION, OR R EVOCATION OF P ER- M ITS.— (1) DENIAL.—Paragraph ( 3 ) of section 5712 of such Code is amended to read as follo w s
‘‘(3) such person (including, in the case of a corporation, any officer, director, or principal stockholder and, in the case of a partnership, a partner)— ‘‘(A) is, by reason of his business e x perience, financial standing, or trade connections or by reason of pre v ious or current legal proceedings involving a felony violation of any other provision of F ederal criminal law relating to tobacco products, processed tobacco, cigarette paper, or cigarette tubes, not likely to maintain operations in compli- ance with this chapter, ‘‘(B) has been convicted of a felony violation of any provision of Federal or State criminal law relating to tobacco products, processed tobacco, cigarette paper, or cigarette tubes, or ‘‘(C) has failed to disclose any material information re q uired or made any material false statement in the application therefor.’’. (2) SUSPENSION OR REVOCATION.—Subsection (b) of section 5713 of such Code is amended to read as follows: ‘‘(b) SUSPENSION OR REVOCATION.— ‘‘(1) S H O W CAUSE HEARIN G .— I f the Secretary has reason to believe that any person holding a permit— ‘‘(A) has not in good faith complied with this chapter, or with any other provision of this title involving intent to defraud, ‘‘(B) has violated the conditions of such permit, ‘‘(C) has failed to disclose any material information required or made any material false statement in the application for such permit, ‘‘(D) has failed to maintain his premises in such manner as to protect the revenue, ‘‘(E) is, by reason of previous or current legal pro- ceedings involving a felony violation of any other provision of Federal criminal law relating to tobacco products, proc- essed tobacco, cigarette paper, or cigarette tubes, not likely to maintain operations in compliance with this chapter, or ‘‘(F) has been convicted of a felony violation of any provision of Federal or State criminal law relating to tobacco products, processed tobacco, cigarette paper, or cigarette tubes, the Secretary shall issue an order, stating the facts charged, citing such person to show cause why his permit should not be suspended or revoked. ‘‘(2) ACTION FOLLOWING HEARING.—If, after hearing, the Secretary finds that such person has not shown cause why his permit should not be suspended or revoked, such permit Orde r .26USC5713 . 26 USC 5712. 26 USC 57 0 2 not e. 26 USC 5702.
