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2003 SESSION

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HB 2536 Enforcement of requirements for tobacco product manufacturers; penalty

Introduced by: Kathy J. Byron | all patrons    ...    notes | add to my profiles | history

SUMMARY AS PASSED:

Enforcement of requirements for tobacco product manufacturers; penalty. Includes a number of procedural enhancements in order to aid enforcement and thereby prevent violations of the Model Act. The enhancements include: (i) a requirement that every tobacco product manufacturer whose cigarettes are sold in the Commonwealth certify the Tax Commissioner and Attorney General that it is either a participating manufacturer for purposes of the Master Settlement Agreement or is in full compliance as a nonparticipating manufacturer; (ii) a requirement that the Attorney General develop and publish on the Attorney General's website a directory listing all tobacco product manufacturers that have provided current and accurate certifications; (iii) a prohibition against stamping, selling, or importing cigarettes not in the directory; (iv) the appointment of an agent in the Commonwealth for service of process for any nonresident or foreign nonparticipating manufacturer and notice of such agent's termination; (v) reporting quarterly information by the stamping agent as the Tax Commissioner and Attorney General require to facilitate compliance with this act; (vi) proof from the financial institutional that the nonparticipating manufacturer has established a qualified escrow fund; and (vii) a penalty not to exceed the greater of 500 percent of the retail value of the cigarettes sold or $5,000, for any violation involving stamping, selling or importing cigarettes not in the directory.

SUMMARY AS PASSED HOUSE:

Enforcement of requirements for tobacco product manufacturers; penalty. Includes a number of procedural enhancements in order to aid enforcement and thereby prevent violations of the Model Act. The enhancements include: (i) a requirement that every tobacco product manufacturer whose cigarettes are sold in the Commonwealth certify to the Tax Commissioner and Attorney General that it is either a participating manufacturer for purposes of the Master Settlement Agreement or is in full compliance as a nonparticipating manufacturer; (ii) a requirement that the Attorney General develop and publish on the Attorney General's website a directory listing all tobacco product manufacturers that have provided current and accurate certifications; (iii) a prohibition against stamping, selling, or importing cigarettes not in the directory; (iv) the appointment of an agent in the Commonwealth for service of process for any non-resident or foreign nonparticipating manufacturer and notice of such agent's termination; (v) reporting quarterly information by the stamping agent as the Tax Commissioner and Attorney General require to facilitate compliance with this act; (vi) proof from the financial institutional that the nonparticipating manufacturer has established a qualified escrow fund; and (vii) a penalty not to exceed the greater of 500 percent of the retail value of the cigarettes sold or $5,000, for any violation involving stamping, selling or importing cigarettes not in the directory.

SUMMARY AS INTRODUCED:

Enforcement of requirements for tobacco product manufacturers; penalty. Includes a number of procedural enhancements in order to aid enforcement and thereby prevent violations of the Model Act that threaten the integrity of the tobacco Master Settlement Agreement, the fiscal soundness of the Commonwealth, and the public health. The enhancements include: (i) a requirement that every tobacco product manufacturer whose cigarettes are sold in the Commonwealth to certify to the Tax Commissioner and Attorney General that it is either a participating manufacturer for purposes of the Master Settlement Agreement or is in full compliance as a nonparticipating manufacturer; (ii) a requirement that the Attorney General to develop and publish on its website a directory listing all tobacco product manufacturers that have provided curent and accurate certifications; (iii) a prohibition against stamping, selling, or importing cigarettes not in the directory; (iv) the appointment of an agent in the Commonwealth for service of process for any non-resident or foreign nonparticipating manufacturer and notice of such agent's termination; (v) reporting quarterly information by the stamping agent as the Tax Commissioner and Attorney General require to facilitate compliance with this act; (vi) proof from the financial institutional that the nonparticipating manufacturer has established a qualified escrow fund; and (vii) a penalty not to exceed the greater of 500 percent of the retail value of the cigarettes sold or $5,000, for any violation involving stamping, selling or importing cigarettes not in the directory.