§ 23-71-3 Requirements. – Any tobacco product manufacturer selling cigarettes to consumers within thestate (whether directly or through a distributor, retailer, or similarintermediary or intermediaries) after the date of enactment of this chaptershall do one of the following:
(1) Become a participating manufacturer (as that term isdefined in section II (jj) of the Master Settlement Agreement) and generallyperform its financial obligations under the Master Settlement Agreement; or
(2) Place into a qualified escrow fund by April 15 of theyear following the year in question the following amounts (as those amounts areadjusted for inflation):
1999: $.0094241 per unit sold after the date of enactment ofthis chapter [June 29, 1999];
2000: $.0104712 per unit sold;
For each of 2001 and 2002: $.0136125 per unit sold;
For each 2003 through 2006: $.0167539 per unit sold;
For each of 2007 and each year thereafter: $.0188482 per unitsold.
(ii) A tobacco product manufacturer that places funds intoescrow pursuant to subdivision (i) shall receive the interest or otherappreciation on the funds as earned. The funds themselves shall be releasedfrom escrow only under the following circumstances:
(A) To pay a judgment or settlement on any released claimbrought against the tobacco product manufacturer by the state or any releasingparty located or residing in the state. Funds shall be released from escrowunder this subparagraph: (I) in the order in which they were placed intoescrow, and (II) only to the extent and at the time necessary to make paymentsrequired under the judgment or settlement.
(B) To the extent that a tobacco product manufacturerestablishes that the amount it was required to place into escrow on account ofunits sold in the state in a particular year was greater than the MasterSettlement Agreement payments, as determined pursuant to section IX(i) of thatagreement including after final determination of all adjustments, that suchmanufacturer would have been required to make on account of such units sold hadit been a participating manufacturer, the excess shall be released from escrowand revert back to the tobacco product manufacturer; or
(C) To the extent not released from escrow undersubparagraphs (A) or (B), funds shall be released from escrow and revert backto the tobacco product manufacturer twenty-five (25) years after the date onwhich they were placed into escrow.
(iii) Each tobacco product manufacturer that elects to placefunds into escrow pursuant to this subsection shall annually certify to theattorney general that it is in compliance with this subsection. The attorneygeneral may bring a civil action on behalf of the estate against any tobaccoproduct manufacturer that fails to place into escrow the funds required underthis section. Any tobacco product manufacturer that fails in any year to placeinto escrow the funds required under this section:
(A) Is required within fifteen (15) days to place any fundsinto escrow that will bring it into compliance with this section. The court,upon a finding of a violation of this subsection, may impose a civil penalty tobe paid to the general fund of the state in an amount not to exceed fivepercent (5%) percent of the amount improperly withheld from escrow per day ofthe violation and in a total amount not to exceed one hundred percent (100%) ofthe original amount improperly withheld from escrow;
(B) In the case of a knowing violation, is required withinfifteen (15) days to place any funds into escrow that will bring it intocompliance with this section. The court, upon a finding of a knowing violationof this subsection, may impose a civil penalty to be paid to the general fundof the state in an amount not to exceed fifteen percent (15%) of the amountimproperly withheld from escrow per day of the violation and in a total amountnot to exceed three hundred percent (300%) of the original amount improperlywithheld from escrow;
(C) In the case of a second knowing violation, is prohibitedfrom selling cigarettes to consumers within the state (whether directly orthrough a distributor, retailer or similar intermediary) for a period not toexceed two (2) years; and
(D) Will be ordered to pay the costs and attorney's fees ofthe state in a civil action in which the court finds that a violation of thissection has occurred.
(3) Each failure to make an annual deposit required underthis section shall constitute a separate violation.
§ 23-71-3 Requirements. – Any tobacco product manufacturer selling cigarettes to consumers within thestate (whether directly or through a distributor, retailer, or similarintermediary or intermediaries) after the date of enactment of this chaptershall do one of the following:
(1) Become a participating manufacturer (as that term isdefined in section II (jj) of the Master Settlement Agreement) and generallyperform its financial obligations under the Master Settlement Agreement; or
(2) Place into a qualified escrow fund by April 15 of theyear following the year in question the following amounts (as those amounts areadjusted for inflation):
1999: $.0094241 per unit sold after the date of enactment ofthis chapter [June 29, 1999];
2000: $.0104712 per unit sold;
For each of 2001 and 2002: $.0136125 per unit sold;
For each 2003 through 2006: $.0167539 per unit sold;
For each of 2007 and each year thereafter: $.0188482 per unitsold.
(ii) A tobacco product manufacturer that places funds intoescrow pursuant to subdivision (i) shall receive the interest or otherappreciation on the funds as earned. The funds themselves shall be releasedfrom escrow only under the following circumstances:
(A) To pay a judgment or settlement on any released claimbrought against the tobacco product manufacturer by the state or any releasingparty located or residing in the state. Funds shall be released from escrowunder this subparagraph: (I) in the order in which they were placed intoescrow, and (II) only to the extent and at the time necessary to make paymentsrequired under the judgment or settlement.
(B) To the extent that a tobacco product manufacturerestablishes that the amount it was required to place into escrow on account ofunits sold in the state in a particular year was greater than the MasterSettlement Agreement payments, as determined pursuant to section IX(i) of thatagreement including after final determination of all adjustments, that suchmanufacturer would have been required to make on account of such units sold hadit been a participating manufacturer, the excess shall be released from escrowand revert back to the tobacco product manufacturer; or
(C) To the extent not released from escrow undersubparagraphs (A) or (B), funds shall be released from escrow and revert backto the tobacco product manufacturer twenty-five (25) years after the date onwhich they were placed into escrow.
(iii) Each tobacco product manufacturer that elects to placefunds into escrow pursuant to this subsection shall annually certify to theattorney general that it is in compliance with this subsection. The attorneygeneral may bring a civil action on behalf of the estate against any tobaccoproduct manufacturer that fails to place into escrow the funds required underthis section. Any tobacco product manufacturer that fails in any year to placeinto escrow the funds required under this section:
(A) Is required within fifteen (15) days to place any fundsinto escrow that will bring it into compliance with this section. The court,upon a finding of a violation of this subsection, may impose a civil penalty tobe paid to the general fund of the state in an amount not to exceed fivepercent (5%) percent of the amount improperly withheld from escrow per day ofthe violation and in a total amount not to exceed one hundred percent (100%) ofthe original amount improperly withheld from escrow;
(B) In the case of a knowing violation, is required withinfifteen (15) days to place any funds into escrow that will bring it intocompliance with this section. The court, upon a finding of a knowing violationof this subsection, may impose a civil penalty to be paid to the general fundof the state in an amount not to exceed fifteen percent (15%) of the amountimproperly withheld from escrow per day of the violation and in a total amountnot to exceed three hundred percent (300%) of the original amount improperlywithheld from escrow;
(C) In the case of a second knowing violation, is prohibitedfrom selling cigarettes to consumers within the state (whether directly orthrough a distributor, retailer or similar intermediary) for a period not toexceed two (2) years; and
(D) Will be ordered to pay the costs and attorney's fees ofthe state in a civil action in which the court finds that a violation of thissection has occurred.
(3) Each failure to make an annual deposit required underthis section shall constitute a separate violation.
§ 23-71-3 Requirements. – Any tobacco product manufacturer selling cigarettes to consumers within thestate (whether directly or through a distributor, retailer, or similarintermediary or intermediaries) after the date of enactment of this chaptershall do one of the following:
(1) Become a participating manufacturer (as that term isdefined in section II (jj) of the Master Settlement Agreement) and generallyperform its financial obligations under the Master Settlement Agreement; or
(2) Place into a qualified escrow fund by April 15 of theyear following the year in question the following amounts (as those amounts areadjusted for inflation):
1999: $.0094241 per unit sold after the date of enactment ofthis chapter [June 29, 1999];
2000: $.0104712 per unit sold;
For each of 2001 and 2002: $.0136125 per unit sold;
For each 2003 through 2006: $.0167539 per unit sold;
For each of 2007 and each year thereafter: $.0188482 per unitsold.
(ii) A tobacco product manufacturer that places funds intoescrow pursuant to subdivision (i) shall receive the interest or otherappreciation on the funds as earned. The funds themselves shall be releasedfrom escrow only under the following circumstances:
(A) To pay a judgment or settlement on any released claimbrought against the tobacco product manufacturer by the state or any releasingparty located or residing in the state. Funds shall be released from escrowunder this subparagraph: (I) in the order in which they were placed intoescrow, and (II) only to the extent and at the time necessary to make paymentsrequired under the judgment or settlement.
(B) To the extent that a tobacco product manufacturerestablishes that the amount it was required to place into escrow on account ofunits sold in the state in a particular year was greater than the MasterSettlement Agreement payments, as determined pursuant to section IX(i) of thatagreement including after final determination of all adjustments, that suchmanufacturer would have been required to make on account of such units sold hadit been a participating manufacturer, the excess shall be released from escrowand revert back to the tobacco product manufacturer; or
(C) To the extent not released from escrow undersubparagraphs (A) or (B), funds shall be released from escrow and revert backto the tobacco product manufacturer twenty-five (25) years after the date onwhich they were placed into escrow.
(iii) Each tobacco product manufacturer that elects to placefunds into escrow pursuant to this subsection shall annually certify to theattorney general that it is in compliance with this subsection. The attorneygeneral may bring a civil action on behalf of the estate against any tobaccoproduct manufacturer that fails to place into escrow the funds required underthis section. Any tobacco product manufacturer that fails in any year to placeinto escrow the funds required under this section:
(A) Is required within fifteen (15) days to place any fundsinto escrow that will bring it into compliance with this section. The court,upon a finding of a violation of this subsection, may impose a civil penalty tobe paid to the general fund of the state in an amount not to exceed fivepercent (5%) percent of the amount improperly withheld from escrow per day ofthe violation and in a total amount not to exceed one hundred percent (100%) ofthe original amount improperly withheld from escrow;
(B) In the case of a knowing violation, is required withinfifteen (15) days to place any funds into escrow that will bring it intocompliance with this section. The court, upon a finding of a knowing violationof this subsection, may impose a civil penalty to be paid to the general fundof the state in an amount not to exceed fifteen percent (15%) of the amountimproperly withheld from escrow per day of the violation and in a total amountnot to exceed three hundred percent (300%) of the original amount improperlywithheld from escrow;
(C) In the case of a second knowing violation, is prohibitedfrom selling cigarettes to consumers within the state (whether directly orthrough a distributor, retailer or similar intermediary) for a period not toexceed two (2) years; and
(D) Will be ordered to pay the costs and attorney's fees ofthe state in a civil action in which the court finds that a violation of thissection has occurred.
(3) Each failure to make an annual deposit required underthis section shall constitute a separate violation.
