ROBERT L. EHRLICH, JR., Governor

Ch. 455

(K) "TOBACCO PRODUCT MANUFACTURER" HAS THE MEANING AS STATED IN
SUBSECTION 2(J) OF THE ESCROW ACT.

(L) "UNITS SOLD" HAS THE MEANING AS STATED IN SUBSECTION 2(K) OF THE
ESCROW ACT.

16-502.

(A)     VIOLATIONS OF THE ESCROW ACT, AN ACT CONCERNING
NONPARTICIPATING MANUFACTURERS AND DEPOSITS OF FUNDS INTO ESCROW
ACCOUNTS, THREATEN THE INTEGRITY OF THE TOBACCO MASTER SETTLEMENT
AGREEMENT, THE FISCAL SOUNDNESS OF THE STATE, AND THE PUBLIC HEALTH.

(B)     ENACTING PROCEDURAL ENHANCEMENTS WILL HELP PREVENT
VIOLATIONS AND AID THE ENFORCEMENT OF THE ESCROW ACT AND THEREBY
SAFEGUARD THE MASTER SETTLEMENT AGREEMENT, THE FISCAL SOUNDNESS OF
THE STATE, AND THE PUBLIC HEALTH.

(C)     THE PROVISIONS OF THIS SUBTITLE ARE NOT INTENDED TO AND SHALL
MAY NOT BE INTERPRETED TO AMEND THE ESCROW ACT.

16-503.

(A)     A TOBACCO PRODUCT MANUFACTURER WHOSE CIGARETTES ARE SOLD IN
THIS STATE, WHETHER DIRECTLY OR THROUGH A DISTRIBUTOR, RETAILER OR
SIMILAR INTERMEDIARY, SHALL EXECUTE AND DELIVER, ON A FORM PRESCRIBED BY
THE COMPTROLLER ATTORNEY GENERAL, A CERTIFICATION TO THE COMPTROLLER
AN© ATTORNEY GENERAL NO LATER THAN THE 30TH DAY OF APRIL EACH YEAR,
CERTIFYING UNDER PENALTY OF PERJURY THAT, AS OF THE DATE OF THE
CERTIFICATION, THE TOBACCO PRODUCT MANUFACTURER EITHER:

(1)      IS A PARTICIPATING MANUFACTURER; OR

(2)      IS IN FULL COMPLIANCE WITH THE ESCROW ACT.

(B)     (1) A PARTICIPATING MANUFACTURER SHALL INCLUDE IN ITS
CERTIFICATION A LIST OF ITS BRAND FAMILIES.

(2) THE PARTICIPATING MANUFACTURER SHALL UPDATE THE LIST AT
LEAST 30 CALENDAR DAYS PRIOR TO ANY ADDITION OR MODIFICATION TO ITS BRAND
FAMILIES BY EXECUTING AND DELIVERING A SUPPLEMENTAL CERTIFICATION TO
THE ATTORNEY GENERAL AND COMPTROLLER.

(C)     (1) A NONPARTICIPATING MANUFACTURER SHALL INCLUDE IN ITS
CERTIFICATION A COMPLETE LIST OF ALL OF ITS BRAND FAMILIES.

(2) THE CERTIFICATION SHALL:

(I)      SEPARATELY LIST EACH BRAND FAMILY OF CIGARETTES AND
THE NUMBER OF UNITS SOLD FOR EACH BRAND FAMILY THAT WAS SOLD IN THE
STATE DURING THE PRECEDING CALENDAR YEAR;

(II)     LIST EACH OF ITS BRAND FAMILIES THAT HAVE BEEN SOLD IN
THE STATE AT ANY TIME DURING THE CURRENT CALENDAR YEAR;

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