exempt

                                                 (Reprinted with amendments adopted on April 17, 2003)

 

Assembly Bill No. 460–Committee on Judiciary

 

March 24, 2003

____________

 

Referred to Committee on Judiciary

 

SUMMARY—Makes various changes regarding manufacture, sale and use of tobacco products. (BDR 15‑1283)

 

FISCAL NOTE:  Effect on Local Government: Yes.

                           Effect on the State: Yes.

 

~

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to tobacco; making various changes relating to the sale of tobacco products to and the purchase of those products by minors; making various changes regarding the sale, delivery and taxation of cigarettes; revising the duties, rights and licensing requirements of manufacturers, wholesale dealers and retail dealers of cigarettes; providing additional procedures for statutory enforcement; increasing certain criminal penalties and providing additional civil and criminal penalties; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1  Section 1. NRS 202.2485 is hereby amended to read as

1-2  follows:

1-3  202.2485  As used in NRS 202.2485 to 202.2497, inclusive:

1-4  1.  “Delivery sale” means any sale or distribution of a product

1-5  for which:

1-6  (a) The purchaser submits the order for the sale by means of a

1-7  telephonic or other method of voice transmission, the mail or any

1-8  other delivery service, or the Internet or any other online service;

1-9  or

1-10      (b) The product is delivered by mail or the use of another

1-11  delivery service, or by the seller or distributor or his agent.

2-1  2.  “Delivery service” means any person engaged in the

2-2  commercial delivery of letters, packages or other containers.

2-3  3.  “Distribute” includes furnishing, giving away or providing

2-4  products made from tobacco or samples thereof at no cost to

2-5  promote the product, whether or not in combination with a sale.

2-6  [2.] 4.  “Health authority” means the district health officer in a

2-7  district, or his designee, or, if none, the State Health Officer, or his

2-8  designee.

2-9  Sec. 2.  NRS 202.24935 is hereby amended to read as follows:

2-10      202.24935  1.  It is unlawful for a person to knowingly sell or

2-11  distribute cigarettes, cigarette paper, tobacco of any description or

2-12  products made from tobacco to a child under the age of 18 years

2-13  through [the use of the Internet.] a delivery sale.

2-14      2.  A person who violates the provisions of subsection 1 shall

2-15  be punished by a fine of not more than $500 and a civil penalty of

2-16  not more than $500. Any money recovered pursuant to this section

2-17  as a civil penalty must be deposited in the same manner as money is

2-18  deposited pursuant to subsection 6 of NRS 202.2493.

2-19      3.  Every person who sells or distributes cigarettes, cigarette

2-20  paper, tobacco of any description or products made from tobacco

2-21  through [the use of the Internet] a delivery sale shall adopt a policy

2-22  to prevent a child under the age of 18 years from obtaining

2-23  cigarettes, cigarette paper, tobacco of any description or products

2-24  made from tobacco from the person through [the use of the

2-25  Internet.] a delivery sale. The policy must include, without

2-26  limitation, a method for ensuring that the person who delivers such

2-27  items obtains the signature of a person who is over the age of 18

2-28  years when delivering the items, that the packaging or wrapping of

2-29  the items when they are shipped is clearly marked with the word

2-30  “cigarettes” or the words “tobacco products,” and that the person

2-31  complies with the provisions of 15 U.S.C. § 376. A person who fails

2-32  to adopt a policy pursuant to this subsection is guilty of a

2-33  misdemeanor and shall be punished by a fine of not more than $500.

2-34      Sec. 3.  Chapter 62 of NRS is hereby amended by adding

2-35  thereto the provisions set forth as sections 4 and 5 of this act.

2-36      Sec. 4.  1.  Except as otherwise provided in subsection 2, a

2-37  child under the age of 18 years shall not falsely represent that he

2-38  is 18 years of age or older to purchase or obtain cigarettes,

2-39  cigarette paper, tobacco of any description or products made from

2-40  tobacco.

2-41      2.  Subsection 1 does not apply to a child who is assisting in

2-42  an inspection pursuant to NRS 202.2496.

 

 

 

3-1  Sec. 5.  (Deleted by amendment.)

3-2  Sec. 6.  NRS 62.040 is hereby amended to read as follows:

3-3  62.040  1.  Except if the child involved is subject to the

3-4  exclusive jurisdiction of an Indian tribe, and except as otherwise

3-5  provided in this chapter, the court has exclusive original jurisdiction

3-6  in proceedings:

3-7  (a) Concerning any child living or found within the county who

3-8  is in need of supervision because he:

3-9       (1) Is a child who is subject to compulsory school attendance

3-10  and is a habitual truant from school;

3-11          (2) Engages in an act prohibited by section 4 of this act;

3-12          (3) Habitually disobeys the reasonable and lawful demands

3-13  of his parents, guardian or other custodian, and is unmanageable; or

3-14          [(3)] (4) Deserts, abandons or runs away from his home or

3-15  usual place of abode,

3-16  and is in need of care or rehabilitation. [The] A child who is in need

3-17  of supervision pursuant to this paragraph must not be considered a

3-18  delinquent.

3-19      (b) Concerning any child living or found within the county who

3-20  has committed a delinquent act. A child commits a delinquent act if

3-21  he violates a county or municipal ordinance or any rule or regulation

3-22  having the force of law, or he commits an act designated a crime

3-23  under the law of the State of Nevada.

3-24      (c) Concerning any child in need of commitment to an

3-25  institution for the mentally retarded.

3-26      2.  For the purposes of subsection 1, each of the following acts

3-27  shall be deemed not to be a delinquent act, and the court does not

3-28  have jurisdiction of a person who is charged with committing such

3-29  an act:

3-30      (a) Murder or attempted murder and any other related offense

3-31  arising out of the same facts as the murder or attempted murder,

3-32  regardless of the nature of the related offense.

3-33      (b) Sexual assault or attempted sexual assault involving the use

3-34  or threatened use of force or violence against the victim and any

3-35  other related offense arising out of the same facts as the sexual

3-36  assault or attempted sexual assault, regardless of the nature of the

3-37  related offense, if:

3-38          (1) The person was 16 years of age or older when the sexual

3-39  assault or attempted sexual assault was committed; and

3-40          (2) Before the sexual assault or attempted sexual assault was

3-41  committed, the person previously had been adjudicated delinquent

3-42  for an act that would have been a felony if committed by an adult.

3-43      (c) An offense or attempted offense involving the use or

3-44  threatened use of a firearm and any other related offense arising out

3-45  of the same facts as the offense or attempted offense involving the

4-1  use or threatened use of a firearm, regardless of the nature of the

4-2  related offense, if:

4-3       (1) The person was 16 years of age or older when the offense

4-4  or attempted offense involving the use or threatened use of a firearm

4-5  was committed; and

4-6       (2) Before the offense or attempted offense involving the use

4-7  or threatened use of a firearm was committed, the person previously

4-8  had been adjudicated delinquent for an act that would have been a

4-9  felony if committed by an adult.

4-10      (d) A felony resulting in death or substantial bodily harm to the

4-11  victim and any other related offense arising out of the same facts as

4-12  the felony, regardless of the nature of the related offense, if:

4-13          (1) The felony was committed on the property of a public or

4-14  private school when pupils or employees of the school were present

4-15  or may have been present, at an activity sponsored by a public or

4-16  private school or on a school bus while the bus was engaged in its

4-17  official duties; and

4-18          (2) The person intended to create a great risk of death or

4-19  substantial bodily harm to more than one person by means of a

4-20  weapon, device or course of action that would normally be

4-21  hazardous to the lives of more than one person.

4-22      (e) Any other offense if, before the offense was committed, the

4-23  person previously had been convicted of a criminal offense.

4-24      3.  If a child is charged with a minor traffic offense, the court

4-25  may transfer the case and record to a justice’s or municipal court if

4-26  the judge determines that it is in the best interest of the child. If a

4-27  case is so transferred:

4-28      (a) The restrictions set forth in subsection 7 of NRS 62.170 are

4-29  applicable in those proceedings; and

4-30      (b) The child must be accompanied at all proceedings by a

4-31  parent or legal guardian.

4-32  With the consent of the judge of the juvenile division, the case may

4-33  be transferred back to the juvenile court.

4-34      4.  As used in this section, “school bus” has the meaning

4-35  ascribed to it in NRS 483.160.

4-36      Sec. 7.  NRS 62.212 is hereby amended to read as follows:

4-37      62.212  1.  Except as otherwise provided in subsection [3,] 4,

4-38  if the court finds that a child is within the purview of paragraph (a)

4-39  of subsection 1 of NRS 62.040 and has not previously been the

4-40  subject of a complaint under NRS 62.128 before committing the acts

4-41  for which the petition was filed, the court shall:

4-42      (a) Admonish the child to obey the law and to refrain from

4-43  repeating the acts for which the petition was filed, and maintain a

4-44  record of the admonition; and

5-1  (b) Refer the child, without adjudication, to services available in

5-2  the community for counseling, behavioral modification and social

5-3  adjustment.

5-4  2.  Except as otherwise provided in subsection [3,] 4, a child

5-5  described in subsection 1 must not be adjudicated to be a child in

5-6  need of supervision unless a subsequent petition based upon

5-7  additional facts is filed with the court after admonition and referral

5-8  pursuant to [this subsection.

5-9  2.] that subsection.

5-10      3.  A child who is:

5-11      (a) Less than 12 years of age must not be committed to or

5-12  otherwise placed in the Nevada Youth Training Center or the

5-13  Caliente Youth Center.

5-14      (b) Not adjudicated to be delinquent must not be committed to

5-15  or otherwise placed in the Nevada Youth Training Center, the

5-16  Caliente Youth Center or any other facility that provides

5-17  correctional care.

5-18      [3.] 4.  The provisions of subsection 1 do not apply to a child

5-19  alleged to be in need of supervision because he is a habitual truant.

5-20      5.  In addition to the actions set forth in subsection 1, a court

5-21  may order a child who engages in an act prohibited by section 4 of

5-22  this act to perform community service. Community service so

5-23  ordered must be performed:

5-24      (a) For and under the supervising authority of a county, city,

5-25  town or other political subdivision or agency of this state or a

5-26  charitable organization that renders service to the community or

5-27  its residents; and

5-28      (b) At the child’s school of attendance, if practicable.

5-29      Sec. 8.  NRS 179.1164 is hereby amended to read as follows:

5-30      179.1164  1.  Except as otherwise provided in subsection 2,

5-31  the following property is subject to seizure and forfeiture in a

5-32  proceeding for forfeiture:

5-33      (a) Any proceeds attributable to the commission or attempted

5-34  commission of any felony.

5-35      (b) Any property or proceeds otherwise subject to forfeiture

5-36  pursuant to NRS 179.121, 200.760, 202.257, 453.301 or 501.3857

5-37  [.] , or section 34 of this act.

5-38      2.  Property may not, to the extent of the interest of any

5-39  claimant, be declared forfeited by reason of an act or omission

5-40  shown to have been committed or omitted without the knowledge,

5-41  consent or willful blindness of the claimant.

5-42      3.  Unless the owner of real property or a mobile home:

5-43      (a) Has given the tenant notice to surrender the premises

5-44  pursuant to NRS 40.254 within 90 days after the owner receives

5-45  notice of a conviction pursuant to subsection 2 of NRS 453.305; or

6-1  (b) Shows the court that he had good cause not to evict the

6-2  tenant summarily pursuant to NRS 40.254,

6-3  the owner of real property or a mobile home used or intended for

6-4  use by a tenant to facilitate any violation of the provisions of NRS

6-5  453.011 to 453.552, inclusive, except NRS 453.336, is disputably

6-6  presumed to have known of and consented to that use if the notices

6-7  required by NRS 453.305 have been given in connection with

6-8  another such violation relating to the property or mobile home. The

6-9  holder of a lien or encumbrance on the property or mobile home is

6-10  disputably presumed to have acquired his interest in the property for

6-11  fair value and without knowledge or consent to such use, regardless

6-12  of when the act giving rise to the forfeiture occurred.

6-13      Sec. 9.  Chapter 370 of NRS is hereby amended by adding

6-14  thereto the provisions set forth as sections 10 to 58, inclusive, of this

6-15  act.

6-16      Sec. 10.  “Cigarette package” means the individual pack, box

6-17  or other container that contains a cigarette. The term does not

6-18  include a container that itself contains other containers, such as a

6-19  carton of cigarettes.

6-20      Sec. 11.  “Counterfeit cigarettes” means any cigarettes or

6-21  cigarette packages:

6-22      1.  Bearing false manufacturing labels;

6-23      2.  Bearing no stamps;

6-24      3.  Bearing counterfeit stamps; or

6-25      4.  Meeting any combination of the descriptions contained in

6-26  subsections 1, 2 and 3.

6-27      Sec. 12.  “Counterfeit stamp” means any stamp that:

6-28      1.  Falsely depicts a stamp approved by the Department or a

6-29  tax stamp authorized pursuant to the laws of any other state

6-30  governing the taxation of cigarettes; or

6-31      2.  Was not sold by the Department or its agents or pursuant

6-32  to the laws of any other state governing the taxation of cigarettes.

6-33      Sec. 13.  1.  “Delivery sale” means any sale of cigarettes,

6-34  whether the seller is located within or outside of the borders of this

6-35  state, to a consumer in this state for which:

6-36      (a) The purchaser submits the order for the sale by means of a

6-37  telephonic or other method of voice transmission, the mail or any

6-38  other delivery service, or the Internet or any other online service;

6-39  or

6-40      (b) The cigarettes are delivered by mail or the use of another

6-41  delivery service.

6-42      2.  For the purpose of this section, any sale of cigarettes to a

6-43  natural person in this state who does not hold a current license as

6-44  a wholesale or retail dealer constitutes a sale to a consumer.

7-1  Sec. 14.  “Delivery service” means any person engaged in the

7-2  commercial delivery of letters, packages or other containers.

7-3  Sec. 15.  (Deleted by amendment.)

7-4  Sec. 16.  “License” means a license issued pursuant to NRS

7-5  370.001 to 370.430, inclusive, and sections 10 to 37, inclusive, of

7-6  this act, that authorizes the holder to conduct business as a

7-7  manufacturer or a wholesale or retail dealer.

7-8  Sec. 17.  “Licensee” means the holder of a license.

7-9  Sec. 18.  “Manufacturer” means any person who:

7-10      1.  Manufactures, fabricates, assembles, processes or labels a

7-11  finished cigarette; or

7-12      2.  Imports, whether directly or indirectly, a finished cigarette

7-13  for sale or distribution in this state.

7-14      Sec. 19.  “Place of business” means, for a person engaged in

7-15  business as:

7-16      1.  A wholesale dealer, any location from which cigarettes are

7-17  distributed or where cigarettes are warehoused, stored or affixed

7-18  with stamps; or

7-19      2.  A retail dealer, any store, stand, outlet or other location

7-20  through which cigarettes are distributed or sold to a consumer.

7-21      Sec. 20.  “Secretary” means the Secretary of the United

7-22  States Department of the Treasury.

7-23      Sec. 21.  “Shipping container” means a container in which

7-24  cigarettes are shipped in connection with a delivery sale.

7-25      Sec. 22.  “Shipping documents” means bills of lading, airbills

7-26  or any other documents used to evidence an undertaking by a

7-27  delivery service to deliver letters, packages or other containers.

7-28      Sec. 23.  “Stamp” means the indicia required to be placed on

7-29  a cigarette package that evidences payment of the taxes on

7-30  cigarettes imposed pursuant to NRS 370.0751 and 370.165.

7-31      Sec. 24.  No license may be issued, maintained or renewed:

7-32      1.  If the applicant for the license or any combination of

7-33  persons directly or indirectly owning, in the aggregate, more than

7-34  10 percent of the ownership interests in the applicant:

7-35      (a) Owes $500 or more in delinquent cigarette taxes;

7-36      (b) Had a license as a manufacturer or as a wholesale or retail

7-37  dealer revoked by the Department within the past 2 years;

7-38      (c) Has been convicted of a crime relating to the sale of stolen

7-39  or counterfeit cigarettes or stamps or the receipt of stolen

7-40  cigarettes;

7-41      (d) Is a manufacturer who has:

7-42          (1) Imported any cigarettes into the United States in

7-43  violation of 19 U.S.C. § 1681a; or

8-1       (2) Imported or manufactured any cigarettes that do not

8-2  fully comply with the Federal Cigarette Labeling and Advertising

8-3  Act, 15 U.S.C. §§ 1331 et seq.; or

8-4  (e) Is a nonparticipating manufacturer, as defined in section

8-5  46 of this act, who is not in full compliance with subsection 2 of

8-6  NRS 370A.140.

8-7  2.  Unless the applicant for the license certifies in writing,

8-8  under penalty of perjury, that the applicant will comply fully with

8-9  the provisions of chapter 370A of NRS and sections 38 to 58,

8-10  inclusive, of this act.

8-11      Sec. 25.  The Department shall create and maintain on its

8-12  Internet website and otherwise make available for public

8-13  inspection a list of all currently valid licenses and the identity of

8-14  the licensees holding those licenses, and shall update that list at

8-15  least once each month.

8-16      Sec. 26.  1.  Except as otherwise provided in subsection 2 or

8-17  a regulation of the Department:

8-18      (a) No person, other than a wholesale dealer that receives

8-19  unstamped cigarette packages directly from a person who holds a

8-20  current permit to engage in business as a manufacturer or

8-21  importer of cigarettes issued pursuant to 26 U.S.C. § 5713, may

8-22  possess an unstamped cigarette package.

8-23      (b) Any person who ships unstamped cigarette packages into

8-24  this state other than to a wholesale dealer who holds a current

8-25  license shall first file with the Department a notice of that

8-26  shipment.

8-27      2.  Subsection 1 does not apply to any common or contract

8-28  carrier who is transporting cigarettes in compliance with the

8-29  provisions of NRS 370.295.

8-30      Sec. 27.  1.  Each manufacturer shall submit to the

8-31  Department periodic reports of:

8-32      (a) The quantity of cigarette packages that were distributed or

8-33  shipped to another manufacturer or to a wholesale dealer within

8-34  the borders of this state during the reporting period, and the name

8-35  and address of each person to whom those products were

8-36  distributed or shipped;

8-37      (b) The quantity of cigarette packages that were distributed or

8-38  shipped to another facility of the same manufacturer within the

8-39  borders of this state during the reporting period; and

8-40      (c) The quantity of cigarette packages that were distributed or

8-41  shipped within the borders of this state to Indian tribal entities or

8-42  instrumentalities of the Federal Government during the reporting

8-43  period, and the name and address of each person to whom those

8-44  products were distributed or shipped.

9-1  2.  Each wholesale dealer shall submit to the Department

9-2  periodic reports of:

9-3  (a) The inventory of stamped and unstamped cigarette

9-4  packages held by the wholesale dealer for sale or distribution

9-5  within the borders of this state on hand at the beginning of the

9-6  reporting period;

9-7  (b) The inventory of cigarette packages held by the wholesale

9-8  dealer for sale or distribution outside of the borders of this state on

9-9  hand at the beginning of the reporting period;

9-10      (c) The quantity of stamped cigarette packages held for sale or

9-11  distribution within the borders of this state that were received by

9-12  the wholesale dealer from another person during the reporting

9-13  period, and the name and address of each person from whom

9-14  those products were received;

9-15      (d) The quantity of cigarette packages held for sale or

9-16  distribution outside of the borders of this state that were received

9-17  by the wholesale dealer from another person during the reporting

9-18  period, and the name and address of each person from whom

9-19  those products were received;

9-20      (e) The quantity of cigarette packages to which Nevada stamps

9-21  were affixed that were distributed or shipped to another wholesale

9-22  dealer or to a retail dealer within the borders of this state during

9-23  the reporting period, and the name and address of each person to

9-24  whom those products were distributed or shipped;

9-25      (f) The quantity of cigarette packages to which Nevada stamps

9-26  were affixed that were distributed or shipped to another facility of

9-27  the same wholesale dealer within the borders of this state during

9-28  the reporting period;

9-29      (g) The quantity of stamped cigarette packages that were

9-30  distributed or shipped within the borders of this state to Indian

9-31  tribal entities or instrumentalities of the Federal Government

9-32  during the reporting period, and the name and address of each

9-33  person to whom those products were distributed or shipped;

9-34      (h) The quantity of cigarette packages held for distribution

9-35  outside of the borders of this state that were distributed or shipped

9-36  outside of the borders of this state during the reporting period;

9-37      (i) The inventory of stamped and unstamped cigarette

9-38  packages held for sale or distribution within the borders of this

9-39  state on hand at the end of the reporting period;

9-40      (j) The inventory of cigarette packages held for sale or

9-41  distribution outside of the borders of this state on hand at the end

9-42  of the reporting period;

9-43      (k) The number of each type of stamp on hand at the

9-44  beginning of the reporting period;

10-1      (l) The number of each type of stamp purchased or received

10-2  during the reporting period;

10-3      (m) The number of each type of stamp applied during the

10-4  reporting period; and

10-5      (n) The number of each type of stamp on hand at the end of

10-6  the reporting period.

10-7      3.  The reports required by this section must be:

10-8      (a) Submitted on forms provided by the Department; and

10-9      (b) Provided separately for each of the facilities operated by

10-10  the manufacturer or wholesale dealer.

10-11     4.  In each report required by this section, the information

10-12  required must be itemized so as to disclose clearly:

10-13     (a) The quantities of stamped and unstamped cigarettes to

10-14  which the report applies; and

10-15     (b) The brand and style of cigarettes to which the report

10-16  applies.

10-17     5.  The Department shall by regulation establish:

10-18     (a) A reporting period for the reports required by this section,

10-19  which must be not less than 1 month nor more than 3 months; and

10-20     (b) Procedures for the electronic submission of the reports

10-21  required by this section.

10-22     Sec. 28.  1.  A person shall not accept an order for a delivery

10-23  sale unless the person first obtains a license as a retail dealer.

10-24     2.  A person who accepts an order for a delivery sale shall

10-25  comply with all of the requirements of this chapter and chapters

10-26  370A, 372 and 374 of NRS, and all other laws of this state

10-27  generally applicable to sales of cigarettes that occur entirely

10-28  within this state.

10-29     Sec. 29.  1.  A person shall not cause the mailing or

10-30  shipment of cigarettes in connection with an order for a delivery

10-31  sale unless the person accepting the order first:

10-32     (a) Obtains from the prospective purchaser a certification

10-33  which includes:

10-34         (1) Reliable confirmation that the purchaser is at least 18

10-35  years of age; and

10-36         (2) A statement signed by the prospective purchaser in

10-37  writing and under penalty of perjury which:

10-38             (I) Certifies the prospective purchaser’s address and

10-39  date of birth;

10-40             (II) Confirms that the prospective purchaser

10-41  understands that signing another person’s name to such

10-42  certification is illegal and that sales of cigarettes to children under

10-43  18 years of age are illegal under the laws of this state; and

10-44             (III) Confirms that the prospective purchaser desires to

10-45  receive mailings from a tobacco company.

11-1      (b) Makes a good faith effort to verify the information

11-2  contained in the certification provided by the prospective

11-3  purchaser pursuant to paragraph (a) against any federal or

11-4  commercially available database established for that purpose;

11-5      (c) Sends to the prospective purchaser, by electronic mail or

11-6  other means, a notice which meets the requirements of subsection

11-7  2 and requests confirmation that the order for the delivery sale

11-8  was placed by the prospective purchaser;

11-9      (d) Receives from the prospective purchaser confirmation,

11-10  pursuant to the request described in paragraph (c), that such

11-11  person placed the order for the delivery sale; and

11-12     (e) Receives payment for the delivery sale from the prospective

11-13  purchaser by a credit or debit card that has been issued in that

11-14  purchaser’s name.

11-15     2.  The notice required by paragraph (c) of subsection 1 must

11-16  include:

11-17     (a) A prominent and clearly legible statement that the sale of

11-18  cigarettes to children under 18 years of age is illegal;

11-19     (b) A prominent and clearly legible statement that the sale of

11-20  cigarettes is restricted to persons who provide verifiable proof of

11-21  age in accordance with this section; and

11-22     (c) A prominent and clearly legible statement that sales of

11-23  cigarettes are taxable under this chapter, and an explanation of

11-24  how the tax has been or is to be paid with respect to the delivery

11-25  sale.

11-26     3.  Persons accepting orders for delivery sales may request

11-27  that prospective purchasers provide their electronic mail

11-28  addresses.

11-29     Sec. 30.  1.  A person who causes the mailing or shipment of

11-30  cigarettes in connection with an order for a delivery sale shall:

11-31     (a) Use a method of mailing or shipping that obligates the

11-32  delivery service to carry out the provisions of section 32 of this act;

11-33     (b) Provide to the delivery service retained to deliver the

11-34  delivery sale evidence that all taxes levied by this state with respect

11-35  to the delivery sale have been paid to this state; and

11-36     (c) Include as part of the shipping documents:

11-37         (1) A copy of the retail dealer’s license authorizing the

11-38  delivery sale;

11-39         (2) An envelope addressed to the Department, with postage

11-40  prepaid, that contains an invoice which provides the information

11-41  required by section 31 of this act for that delivery sale; and

11-42         (3) A clear and conspicuous statement providing as follows:

 

 

 

12-1  “DELIVERY SALE OF CIGARETTES: NEVADA LAW

12-2  PROHIBITS SHIPPING TO CHILDREN UNDER 18

12-3  YEARS OF AGE AND REQUIRES THE PAYMENT OF

12-4  ALL APPLICABLE TAXES.”

 

12-5      2.  A person who accepts an order for a delivery sale and

12-6  delivers the cigarettes without using a third-party delivery service

12-7  shall comply with all the requirements of section 32 of this act

12-8  applicable to a delivery service.

12-9      Sec. 31.  Not later than the 10th day of each calendar month,

12-10  each person who has mailed, shipped or otherwise delivered

12-11  cigarettes in connection with a delivery sale during the previous

12-12  calendar month, except a delivery service, shall file with the

12-13  Department a memorandum or a copy of the invoice which

12-14  provides for every such delivery sale:

12-15     1.  The name and address of the person to whom the delivery

12-16  sale was made; and

12-17     2.  The quantity and brands of cigarettes that were sold in the

12-18  delivery sale.

12-19     Sec. 32.  1.  Except as otherwise provided in subsection 2, a

12-20  delivery service shall:

12-21     (a) Before delivering a shipping container in connection with

12-22  a delivery sale:

12-23         (1) Ensure that the shipping documents include the

12-24  documents required by paragraph (c) of subsection 1 of section 30

12-25  of this act;

12-26         (2) Obtain the evidence required by paragraph (b) of

12-27  subsection 1 of section 30 of this act regarding the cigarettes in the

12-28  shipping container; and

12-29         (3) Ensure that each cigarette package in the shipping

12-30  container bears a valid stamp. The delivery service shall return to

12-31  the shipper any cigarette packages that do not bear a valid stamp.

12-32     (b) When delivering a shipping container in connection with a

12-33  delivery sale, require:

12-34         (1) The purchaser placing the order for the delivery sale, or

12-35  an adult designated by that purchaser, to sign to accept delivery of

12-36  the shipping container; and

12-37         (2) Proof, in the form of valid identification that was issued

12-38  by a governmental entity and bears a photograph of the person

12-39  who signs to accept delivery of the shipping container,

12-40  demonstrating:

12-41             (I) That the person is either the addressee or the adult

12-42  designated by the addressee; and

12-43             (II) If the person appears to be under 27 years of age,

12-44  that the person is at least 18 years of age.

13-1      (c) After delivering a shipping container in connection with a

13-2  delivery sale, mail to the Department the invoice included in the

13-3  shipping documents pursuant to paragraph (c) of subsection 1 of

13-4  section 30 of this act.

13-5      2.  A delivery service is required to comply with the provisions

13-6  of subsection 1 only if the delivery service:

13-7      (a) Is obligated to do so under a method of shipping;

13-8      (b) Delivers any container pursuant to shipping documents

13-9  containing the statement described in paragraph (c) of subsection

13-10  1 of section 30 of this act; or

13-11     (c) Delivers any container that the delivery service otherwise

13-12  has reason to know contains cigarettes sold pursuant to a delivery

13-13  sale.

13-14     Sec. 33.  In addition to any other penalty authorized by law:

13-15     1.  The Department may:

13-16     (a) Impose a civil penalty of $1,000 on any person who

13-17  knowingly:

13-18         (1) Omits, neglects or refuses to:

13-19             (I) Comply with any duty imposed upon him pursuant to

13-20  the provisions of NRS 370.080 to 370. 315, inclusive, and sections

13-21  24 to 27, inclusive, of this act; or

13-22             (II) Do or cause to be done any of the things required

13-23  pursuant to those provisions; or

13-24         (2) Does anything prohibited by the provisions of NRS

13-25  370.080 to 370. 315, inclusive, and sections 24 to 27, inclusive, of

13-26  this act.

13-27     (b) Impose on each person who violates any of the provisions

13-28  of sections 28 to 32, inclusive, of this act, a civil penalty of:

13-29         (1) Not more than $1,000 for the first violation; and

13-30         (2) Not less than $1,000 nor more than $5,000 for each

13-31  subsequent violation.

13-32     2.  Any person who fails to pay any tax imposed pursuant to

13-33  the provisions of NRS 370.080 to 370. 315, inclusive, and sections

13-34  24 to 32, inclusive, of this act within the time prescribed by law or

13-35  regulation shall pay a penalty of 500 percent of the tax due but

13-36  unpaid, in addition to the tax.

13-37     Sec. 34.  All fixtures, equipment and other materials and

13-38  personal property on the premises of any wholesale or retail dealer

13-39  who, with intent to defraud the state:

13-40     1.  Fails to keep or make any record, return, report or

13-41  inventory required pursuant to NRS 370.080 to 370.315, inclusive,

13-42  and sections 24 to 32, inclusive, of this act;

13-43     2.  Keeps or makes any false or fraudulent record, return,

13-44  report or inventory required pursuant to NRS 370.080 to 370.315,

13-45  inclusive, and sections 24 to 32, inclusive, of this act;

14-1      3.  Refuses to pay any tax imposed pursuant to NRS 370.080

14-2  to 370.315, inclusive, and sections 24 to 32, inclusive, of this act;

14-3  or

14-4      4.  Attempts in any manner to evade or defeat the

14-5  requirements of NRS 370.080 to 370.315, inclusive, and sections

14-6  24 to 32, inclusive, of this act,

14-7  is subject to forfeiture pursuant to NRS 179.1156 to 179.119,

14-8  inclusive.

14-9      Sec. 35.  1.  It is unlawful for a person, with the intent to

14-10  defraud the state:

14-11     (a) To fail to keep or make any record, return, report or

14-12  inventory, or keep or make any false or fraudulent record, return,

14-13  report, or inventory, required pursuant to NRS 370.080 to 370.315,

14-14  inclusive, and sections 24 to 32, inclusive, of this act or any

14-15  regulations adopted for the administration or enforcement of those

14-16  provisions;

14-17     (b) To refuse to pay any tax imposed pursuant to NRS 370.080

14-18  to 370.315, inclusive, and sections 24 to 32, inclusive, of this act,

14-19  or attempt in any manner to evade or defeat the tax or the payment

14-20  thereof;

14-21     (c) To alter, forge or otherwise counterfeit any stamp;

14-22     (d) To sell or possess for the purpose of sale any counterfeit

14-23  stamp;

14-24     (e) To have in his possession any counterfeit stamp, with the

14-25  intent to use the counterfeit stamp, knowing or having reasonable

14-26  grounds to believe the stamp to be a counterfeit stamp;

14-27     (f) To have in his possession any stamp which he knows has

14-28  been removed from any cigarette package to which it was affixed;

14-29     (g) To affix to any cigarette package a stamp which he knows

14-30  has been removed from any other cigarette package; or

14-31     (h) To fail to comply with any requirement of NRS 370.080 to

14-32  370.315, inclusive, and sections 24 to 32, inclusive, of this act.

14-33     2.  A person who violates any of the provisions of subsection 1

14-34  is guilty of a category C felony and shall be punished as provided

14-35  in NRS 193.130.

14-36     Sec. 36.  1.  It is unlawful for any person knowingly to sell

14-37  or to possess for the purpose of sale any counterfeit cigarettes. The

14-38  presence of counterfeit cigarettes in a cigarette vending machine

14-39  is prima facie evidence of the purpose to sell those cigarettes.

14-40     2.  A person who violates any provision of subsection 1 is

14-41  guilty of:

14-42     (a) For the first offense involving less than 400 cigarettes, a

14-43  misdemeanor.

15-1      (b) For each subsequent offense involving less than 400

15-2  cigarettes, a category D felony and shall be punished as provided

15-3  in NRS 193.130.

15-4      (c) For the first offense involving 400 or more cigarettes, a

15-5  gross misdemeanor.

15-6      (d) For each subsequent offense involving 400 or more

15-7  cigarettes, a category C felony and shall be punished as provided

15-8  in NRS 193.130.

15-9      Sec. 37.  A person who:

15-10     1.  Knowingly violates any of the provisions of sections 28 to

15-11  32, inclusive, of this act; or

15-12     2.  Knowingly and falsely submits a certification pursuant to

15-13  paragraph (a) of subsection 1 of section 29 of this act in the name

15-14  of another person,

15-15  is guilty of a category C felony and shall be punished as provided

15-16  in NRS 193.130.

15-17     Sec. 38.  The Legislature finds that:

15-18     1.  Violations of the provisions of chapter 370A of NRS

15-19  threaten the integrity of the Master Settlement Agreement, the

15-20  fiscal soundness of the State and the public health.

15-21     2.  The enactment of the procedural enhancements set forth in

15-22  sections 38 to 58, inclusive, of this act will aid in the enforcement

15-23  of the provisions of chapter 370A of NRS and thereby safeguard

15-24  the Master Settlement Agreement, the fiscal soundness of the State

15-25  and the public health.

15-26     Sec. 39.  As used in sections 38 to 58, inclusive, of this act,

15-27  unless the context otherwise requires, the words and terms defined

15-28  in sections 40 to 50, inclusive, of this act have the meanings

15-29  ascribed to them in those sections.

15-30     Sec. 40.  “Brand family” means all styles of cigarettes sold

15-31  under the same trademark and differentiated from one another by

15-32  means of additional modifiers or descriptors, including, but not

15-33  limited to, “menthol,” “lights,” “kings” and “100s,” and includes

15-34  any brand name, whether occurring alone or in conjunction with

15-35  any other word, any trademark, logo, symbol, motto, selling

15-36  message or recognizable pattern of colors, or any other indicia of

15-37  product identification identical or similar to, or identifiable with, a

15-38  previously known brand of cigarettes.

15-39     Sec. 41.  “Cigarette” has the meaning ascribed to it in

15-40  NRS 370A.050.

15-41     Sec. 42.  “Directory” means the directory created pursuant to

15-42  section 53 of this act.

15-43     Sec. 43.  “Distributor” means a person that is authorized to

15-44  affix stamps to cigarette packages pursuant to this chapter or any

16-1  person that is required to pay the taxes on cigarettes imposed

16-2  pursuant to this chapter.

16-3      Sec. 44.  “Manufacturer of tobacco products” has the

16-4  meaning ascribed to it in NRS 370A.060.

16-5      Sec. 45.  “Master Settlement Agreement” has the meaning

16-6  ascribed to it in NRS 370A.070.

16-7      Sec. 46.  “Nonparticipating manufacturer” means any

16-8  manufacturer of tobacco products that is not a participating

16-9  manufacturer.

16-10     Sec. 47.  “Participating manufacturer” has the meaning

16-11  ascribed to it in NRS 370A.080.

16-12     Sec. 48.  “Qualified escrow fund” has the meaning ascribed

16-13  to it in NRS 370A.090.

16-14     Sec. 49.  “Stamp” means the indicia required to be placed on

16-15  a cigarette package that evidences payment of the taxes on

16-16  cigarettes imposed pursuant to this chapter.

16-17     Sec. 50.  “Units sold” has the meaning ascribed to it in

16-18  NRS 370A.120.

16-19     Sec. 51.  1.  A manufacturer of tobacco products whose

16-20  cigarettes are sold in this state, whether directly or through a

16-21  distributor, retailer or similar intermediary or intermediaries,

16-22  shall, not later than April 30 of each year, execute and deliver to

16-23  the Attorney General and the Department, on a form provided by

16-24  the Department, a certification which certifies under penalty of

16-25  perjury that, as of the date of that certification, the manufacturer

16-26  of tobacco products is either:

16-27     (a) A participating manufacturer; or

16-28     (b) In full compliance with subsection 2 of NRS 370A.140,

16-29  including any quarterly installment payments required pursuant to

16-30  section 56 of this act.

16-31     2.  Except as otherwise provided in section 52 of this act:

16-32     (a) A participating manufacturer shall include in its

16-33  certification pursuant to this section a list of its brand families.

16-34  The participating manufacturer shall update that list at least 30

16-35  calendar days before it adds to or modifies its brand families by

16-36  executing and delivering a supplemental certification to the

16-37  Attorney General and the Department.

16-38     (b) A nonparticipating manufacturer shall, in its certification

16-39  pursuant to this section:

16-40         (1) Include:

16-41             (I) A list of all of its brand families and the number of

16-42  units sold for each brand family that were sold in the State during

16-43  the preceding calendar year; and

16-44             (II) A list of all of its brand families that have been sold

16-45  in the State at any time during the current calendar year;

17-1          (2) Indicate, by an asterisk, any brand family sold in the

17-2  State during the preceding calendar year that is no longer being

17-3  sold in the State as of the date of the certification; and

17-4          (3) Identify, by name and address, any other manufacturer

17-5  of those brand families in the preceding or current calendar

17-6  year.

17-7  A nonparticipating manufacturer shall update the information

17-8  required by this paragraph at least 30 calendar days before it adds

17-9  to or modifies its brand families by executing and delivering a

17-10  supplemental certification to the Attorney General and the

17-11  Department.

17-12     3.  In addition to the requirements of subsection 2, the

17-13  certification of a nonparticipating manufacturer pursuant to this

17-14  section must certify:

17-15     (a) That the nonparticipating manufacturer is registered to do

17-16  business in the State or has appointed a resident agent for service

17-17  of process and provided notice thereof as required by section 54 of

17-18  this act;

17-19     (b) That the nonparticipating manufacturer has:

17-20         (1) Established and continues to maintain a qualified

17-21  escrow fund; and

17-22         (2) Executed a qualified escrow agreement governing the

17-23  qualified escrow fund that has been reviewed and approved by the

17-24  Attorney General;

17-25     (c) That the nonparticipating manufacturer is in full

17-26  compliance with chapter 370A of NRS and any regulations

17-27  adopted pursuant thereto;

17-28     (d) The name, address and telephone number of the financial

17-29  institution where the nonparticipating manufacturer has

17-30  established the qualified escrow fund required pursuant to chapter

17-31  370A of NRS and any regulations adopted pursuant thereto;

17-32     (e) The account number of that qualified escrow fund and any

17-33  sub-account number for this state;

17-34     (f) The amount the nonparticipating manufacturer placed in

17-35  that qualified escrow fund for cigarettes sold in the State during

17-36  the preceding calendar year, the date and amount of each such

17-37  deposit, and such evidence or verification as may be deemed

17-38  necessary by the Department to confirm the information required

17-39  by this paragraph; and

17-40     (g) The amount and date of any withdrawal or transfer of

17-41  money the nonparticipating manufacturer made at any time from

17-42  that qualified escrow fund or from any other qualified escrow

17-43  fund into which it ever made escrow payments pursuant to chapter

17-44  370A of NRS and any regulations adopted pursuant thereto.

 

18-1      Sec. 52.  A manufacturer of tobacco products:

18-2      1.  Shall not include a brand family in its certification

18-3  pursuant to section 51 of this act unless, if the manufacturer is:

18-4      (a) A participating manufacturer, the manufacturer affirms

18-5  that the brand family is to be deemed to be its cigarettes for

18-6  purposes of calculating its payments under the Master Settlement

18-7  Agreement for the relevant year, in the volume and shares

18-8  determined pursuant to the Master Settlement Agreement; or

18-9      (b) A nonparticipating manufacturer, the manufacturer

18-10  affirms that the brand family is to be deemed to be its cigarettes

18-11  for purposes of chapter 370A of NRS.

18-12  This subsection must not be construed as limiting or otherwise

18-13  affecting the right of the State to maintain that a brand family

18-14  constitutes cigarettes of a different manufacturer of tobacco

18-15  products for purposes of calculating payments under the Master

18-16  Settlement Agreement or for purposes of chapter 370A of NRS.

18-17     2.  Shall maintain all invoices and documentation of sales,

18-18  and any other information relied upon by the manufacturer for its

18-19  certification pursuant to section 51 of this act, for at least 5 years,

18-20  unless the manufacturer is otherwise required by law to maintain

18-21  them for a greater period.

18-22     Sec. 53.  1.  The Department shall create and maintain on

18-23  its Internet website and otherwise make available for public

18-24  inspection a directory that lists, except as otherwise provided in

18-25  sections 38 to 58, inclusive, of this act, all manufacturers of

18-26  tobacco products that have provided current and accurate

18-27  certifications conforming to the requirements of sections 38 to 58,

18-28  inclusive, of this act and all brand families that are listed in those

18-29  certifications. The Department:

18-30     (a) Shall not include or retain in the directory the name or

18-31  brand families of any nonparticipating manufacturer that has

18-32  failed to provide the required certification or whose certification

18-33  the Department determines is not in compliance with sections 38

18-34  to 58, inclusive, of this act, unless the Department has determined

18-35  that such violation has been cured to its satisfaction.

18-36     (b) Shall not include or retain in the directory a manufacturer

18-37  of tobacco products or brand family if the Department concludes,

18-38  for a nonparticipating manufacturer, that:

18-39         (1) Any escrow payment required pursuant to chapter 370A

18-40  of NRS for any period for any brand family, whether or not listed

18-41  by the nonparticipating manufacturer, has not been fully paid into

18-42  a qualified escrow fund governed by a qualified escrow agreement

18-43  which has been approved by the Attorney General; or

19-1          (2) Any outstanding final judgment, including any interest

19-2  thereon, for a violation of chapter 370A of NRS has not been fully

19-3  satisfied for that manufacturer or brand family.

19-4      2.  The Department shall update the directory as necessary to

19-5  correct mistakes and to add or remove a manufacturer of tobacco

19-6  products or brand family to keep the directory in conformity with

19-7  the requirements of sections 38 to 58, inclusive, of this act.

19-8      3.  Any determination of the Department not to include in or

19-9  to remove from the directory a manufacturer of tobacco products

19-10  or brand family is a final decision for the purposes of judicial

19-11  review.

19-12     Sec. 54.  1.  Any nonresident or foreign nonparticipating

19-13  manufacturer that has not registered to do business in the State as

19-14  a foreign corporation or other business entity must, as a condition

19-15  precedent to having its brand families included or retained in the

19-16  directory, appoint and continually engage without interruption the

19-17  services of an agent in this state to act as its agent for the service

19-18  of process on whom all process, in any action or proceeding

19-19  against it concerning or arising out of the enforcement of this

19-20  chapter, may be served in any manner authorized by law. Such

19-21  service constitutes legal and valid service of process on the

19-22  nonparticipating manufacturer. The nonparticipating

19-23  manufacturer shall provide the name, address, phone number and

19-24  proof of the appointment and availability of such agent to, and to

19-25  the satisfaction of, the Attorney General and the Department.

19-26     2.  A nonparticipating manufacturer shall provide notice to

19-27  the Attorney General and the Department at least 30 calendar days

19-28  before the termination of the authority of an agent appointed

19-29  pursuant to this section and shall provide proof to the satisfaction

19-30  of the Attorney General and the Department of the appointment of

19-31  a new agent not less than 5 calendar days before the termination

19-32  of appointment of an existing agent. If an agent terminates his

19-33  appointment as an agent, the nonparticipating manufacturer shall

19-34  notify the Attorney General and the Department of that

19-35  termination within 5 calendar days and include with that

19-36  notification proof to the satisfaction of the Attorney General and

19-37  the Department of the appointment of a new agent.

19-38     3.  Any nonparticipating manufacturer whose cigarettes are

19-39  sold in this state and who has not appointed and engaged an agent

19-40  as required by this section shall be deemed to have appointed the

19-41  Secretary of State as such agent and may be proceeded against in

19-42  courts of this state by service of process upon the Secretary of

19-43  State, except that the appointment of the Secretary of State as such

19-44  agent does not satisfy the condition precedent for having the brand

20-1  families of the nonparticipating manufacturer included or

20-2  retained in the directory.

20-3      Sec. 55.  1.  Not later than 20 calendar days after the end of

20-4  each calendar quarter, and more frequently if so directed by the

20-5  Department, each distributor shall submit such information as the

20-6  Department requires to facilitate compliance with the provisions of

20-7  sections 38 to 58, inclusive, of this act, including, without

20-8  limitation, a list by brand family of the total number of cigarettes

20-9  or, in the case of “roll-your-own” tobacco, the equivalent unit

20-10  count, for which the distributor affixed stamps during the previous

20-11  calendar quarter or otherwise paid the tax due for those cigarettes.

20-12  The distributor shall maintain for at least 5 years, and make

20-13  available to the Department, all invoices and documentation of

20-14  sales of all cigarettes of nonparticipating manufacturers and any

20-15  other information relied upon in reporting to the Department.

20-16     2.  The Department may disclose to the Attorney General any

20-17  information received pursuant to sections 38 to 58, inclusive, of

20-18  this act and requested by the Attorney General for purposes

20-19  of determining compliance with and enforcing the provisions of

20-20  sections 38 to 58, inclusive, of this act. The Department and

20-21  Attorney General shall share with each other the information

20-22  received pursuant to the provisions of sections 38 to 58, inclusive,

20-23  of this act, and may share such information with other federal,

20-24  state or local agencies only for purposes of enforcement of those

20-25  provisions, the provisions of chapter 370A of NRS or the

20-26  corresponding laws of other states.

20-27     3.  The Department may require at any time from a

20-28  nonparticipating manufacturer proof, from the financial

20-29  institution in which that manufacturer has established a qualified

20-30  escrow fund for the purpose of compliance with chapter 370A of

20-31  NRS, of the amount of money in that fund, exclusive of interest,

20-32  the amount and date of each deposit to that fund, and the amount

20-33  and date of each withdrawal from that fund.

20-34     4.  In addition to the information otherwise required to be

20-35  submitted pursuant to sections 38 to 58, inclusive, of this act, the

20-36  Department may require a distributor or manufacturer of tobacco

20-37  products to submit any additional information, including, without

20-38  limitation, samples of the packaging or labeling of each brand

20-39  family, as is necessary to enable the Department to determine

20-40  whether a manufacturer of tobacco products is in compliance with

20-41  the provisions of sections 38 to 58, inclusive, of this act.

20-42     5.  Every distributor shall provide to the Department and

20-43  update as necessary an electronic mail address for receiving any

20-44  notifications as may be required to carry out sections 38 to 58,

20-45  inclusive, of this act.

21-1      Sec. 56.  1.  To promote compliance with the provisions of

21-2  NRS 370A.140, the Department may adopt regulations requiring a

21-3  manufacturer of tobacco products to make the escrow deposits

21-4  required by NRS 370A.140 in quarterly installments during the

21-5  year in which the sales covered by those deposits are made. The

21-6  Department may require the production of information sufficient

21-7  to enable the Department to determine the adequacy of the amount

21-8  of each quarterly installment.

21-9      2.  The Department may adopt such regulations as it deems

21-10  necessary to carry out the provisions of sections 38 to 58,

21-11  inclusive, of this act.

21-12     Sec. 57.  1.  It is unlawful for any person to:

21-13     (a) Affix a stamp to a package or other container of cigarettes

21-14  of a manufacturer of tobacco products or brand family which is

21-15  not included in the directory; or

21-16     (b) Sell, or offer or possess for sale, in this state cigarettes of a

21-17  manufacturer of tobacco products or brand family not included in

21-18  the directory.

21-19     2.  A person who violates any provision of subsection 1 is

21-20  guilty of a gross misdemeanor.

21-21     3.  In addition to any other penalty authorized by law, the

21-22  Department may impose on each person who violates any

21-23  provision of subsection 1 a civil penalty for each such violation of

21-24  not more than $5,000 or 500 percent of the retail value of the

21-25  cigarettes involved in the violation, whichever is greater.

21-26     4.  Any violation of subsection 1 constitutes a deceptive trade

21-27  practice for the purposes of NRS 598.0903 to 598.0999, inclusive.

21-28     5.  For the purposes of this section, each stamp affixed to and

21-29  each sale or offer to sell cigarettes in violation of subsection 1

21-30  constitutes a separate violation.

21-31     Sec. 58.  1.  The Attorney General, on behalf of the

21-32  Department, may bring an action in the district court of this state

21-33  to:

21-34     (a) Enjoin any threatened or actual violation of the provisions

21-35  of sections 38 to 58, inclusive, of this act by a distributor and to

21-36  compel the distributor to comply with those provisions; or

21-37     (b) Enforce any of the provisions of sections 38 to 58,

21-38  inclusive, of this act.

21-39     2.  In any action brought by the State to enforce the provisions

21-40  of sections 38 to 58, inclusive, of this act, the State is entitled to

21-41  recover any costs of investigation, expert witness fees, costs of the

21-42  action and reasonable attorney fees.

21-43     3.  If a court determines that any person has violated any

21-44  provision of sections 38 to 58, inclusive, of this act, the court shall

21-45  order any profits, gain, gross receipts or other benefit from the

22-1  violation to be disgorged and paid to the State Treasurer for

22-2  deposit in the State General Fund.

22-3      4.  The remedies and penalties provided in sections 38 to 58,

22-4  inclusive, of this act are cumulative to each other and to the

22-5  remedies and penalties available under any other law of this state.

22-6      Sec. 59.  NRS 370.001 is hereby amended to read as follows:

22-7      370.001  As used in NRS 370.001 to 370.430, inclusive, and

22-8  sections 10 to 37, inclusive, of this act, unless the context otherwise

22-9  requires, the words and terms defined in NRS 370.005 to 370.055,

22-10  inclusive, and sections 10 to 23, inclusive, of this act have the

22-11  meanings ascribed to them in those sections.

22-12     Sec. 60.  NRS 370.015 is hereby amended to read as follows:

22-13     370.015  “Cigarette vending machine operator” means any

22-14  [person] retail dealer licensed to sell only Nevada stamped

22-15  cigarettes by means of coin-operated machines anywhere in Nevada.

22-16     Sec. 61.  NRS 370.025 is hereby amended to read as follows:

22-17     370.025  “Contraband cigarettes” means any [cigarettes

22-18  exported] :

22-19     1.  Counterfeit cigarettes; or

22-20     2.  Cigarettes:

22-21     (a) Exported from or imported into this state , or mailed,

22-22  shipped, delivered or held for distribution within the borders of

22-23  this state by any person in violation of any of the provisions of this

22-24  chapter [or which are, in any way,] ;

22-25     (b) In any way held in the possession or constructive possession

22-26  of any person not authorized under this chapter to possess or

22-27  constructively possess [these cigarettes.] the cigarettes; or

22-28     (c) Stamped, sold, or offered or possessed for sale in violation

22-29  of section 57 of this act.

22-30     Sec. 62.  NRS 370.033 is hereby amended to read as follows:

22-31     370.033  “Retail dealer” means any person , whether located

22-32  within or outside of the borders of this state, who [offers to sell

22-33  cigarettes at retail or who is engaged in selling cigarettes at retail.]

22-34  sells or distributes cigarettes to a consumer within the State.

22-35     Sec. 63.  NRS 370.055 is hereby amended to read as follows:

22-36     370.055  “Wholesale dealer” means:

22-37     1.  Any person , whether located within or outside of the

22-38  borders of this state, who [brings] :

22-39     (a) Brings, sends, or causes to be brought or sent into this state

22-40  any unstamped cigarettes purchased from the manufacturer or

22-41  another [wholesaler, and who stores,] wholesale dealer; and

22-42     (b) Stores, sells or otherwise disposes of [them] those cigarettes

22-43  within the State.

22-44     2.  Any person who manufactures or produces cigarettes within

22-45  this state and who sells or distributes them within the State.

23-1      3.  Any person , whether located within or outside of the

23-2  borders of this state, who acquires cigarettes solely for the purpose

23-3  of bona fide resale to retail dealers in this state or to other persons

23-4  in this state for the purpose of resale only.

23-5      Sec. 64.  NRS 370.065 is hereby amended to read as follows:

23-6      370.065  In order to obtain evidence of any violation of this

23-7  chapter, the Department, its agents, and all peace officers and

23-8  revenue-collecting officers of this state [shall have the right of

23-9  visitation and inspection of any] may enter and inspect, without a

23-10  warrant during normal business hours and with a warrant at any

23-11  other time:

23-12     1.  The facilities and records of any manufacturer, wholesale

23-13  dealer or retail dealer; and

23-14     2.  Any other place where they may have reason to believe

23-15  [unstamped] contraband cigarettes are stored, warehoused or kept

23-16  for sale. [Such visitation and inspection shall be conducted during

23-17  business hours.]

23-18     Sec. 65.  NRS 370.080 is hereby amended to read as follows:

23-19     370.080  1.  A person shall not engage in business as a [dealer

23-20  of cigarettes] wholesale dealer in the State of Nevada unless he first

23-21  secures a [wholesale or retail cigarette dealer’s] license to engage in

23-22  that activity from the Department.

23-23     2.  A person shall not engage in business as a retail dealer in

23-24  the State of Nevada unless he first secures a license to engage in

23-25  that activity from the Department.

23-26     3.  A manufacturer shall not sell any cigarettes to a wholesale

23-27  dealer in the State of Nevada unless he first secures a license to

23-28  engage in that activity from the Department.

23-29     4.  A separate license is required to engage in each of the

23-30  activities described in this section.

23-31     Sec. 66.  NRS 370.100 is hereby amended to read as follows:

23-32     370.100  An application for a [cigarette dealer’s] license must:

23-33     1.  Be made to the Department on forms prescribed by the

23-34  Department.

23-35     2.  Include the name and address of the applicant. If the

23-36  applicant is a firm, association or partnership, the application must

23-37  include the names and addresses of [all partners.] each of its

23-38  members. If the applicant is a corporation, [association or other

23-39  organization,] the application must include the names and addresses

23-40  of the president, vice president, secretary and managing officer or

23-41  officers.

23-42     3.  Specify the location, by street and number, of the principal

23-43  place of business of the applicant and of the premises for which the

23-44  license is sought.

24-1      4.  [Be] Specify any other information the Department may

24-2  require.

24-3      5.  Except as otherwise provided in NRS 370.001 to 370.430,

24-4  inclusive, and sections 10 to 37, inclusive, of this act, be

24-5  accompanied by the required license fee.

24-6      [5.] 6.  Be accompanied by a certified copy of the certificate

24-7  required by NRS 602.010 or any renewal certificate required by

24-8  NRS 602.035.

24-9      Sec. 67.  NRS 370.140 is hereby amended to read as follows:

24-10     370.140  1.  [Wholesale cigarette dealers’ licenses shall permit

24-11  the holders] A current license as a:

24-12     (a) Manufacturer authorizes the holder thereof to sell

24-13  cigarettes [to retail dealers, or to other Nevada licensed wholesale

24-14  cigarette dealers, or to cigarette vending machine operators

24-15  anywhere in Nevada.

24-16     2.  No retailer, retail cigarette dealer or cigarette vending

24-17  machine operator shall purchase any cigarettes from other than a

24-18  Nevada licensed wholesale cigarette dealer.] anywhere within the

24-19  borders of this state to a wholesale dealer who holds a current

24-20  license.

24-21     (b) Wholesale dealer authorizes the holder thereof to:

24-22         (1) Purchase cigarettes from any manufacturer or

24-23  wholesale dealer who holds a current license; or

24-24         (2) Sell cigarettes anywhere within the borders of this state

24-25  to any wholesale or retail dealer who holds a current license.

24-26     (c) Retail dealer authorizes the holder thereof to:

24-27         (1) Purchase cigarettes from any wholesale dealer who

24-28  holds a current license; or

24-29         (2) Sell cigarettes anywhere within the borders of this state

24-30  to any consumer.

24-31     2.  No person who holds a current license as a:

24-32     (a) Manufacturer may sell cigarettes within the borders of this

24-33  state to any person other than a wholesale dealer who holds a

24-34  current license.

24-35     (b) Wholesale or retail dealer may purchase cigarettes for sale

24-36  within the borders of this state or sell cigarettes within the borders

24-37  of this state except as authorized pursuant to subsection 1.

24-38     Sec. 68.  NRS 370.150 is hereby amended to read as follows:

24-39     370.150  1.  Each license issued by the Department is valid

24-40  only for the calendar year for which it is issued, and must be

24-41  renewed annually.

24-42     2.  The Department shall not charge any license fees for a

24-43  manufacturer’s or retail [cigarette] dealer’s license.

24-44     [2.] 3.  An annual license fee of $150 [shall] must be charged

24-45  for each wholesale [cigarette] dealer’s license. If [any license, other

25-1  than the renewal of a delinquent license,] such a license is issued at

25-2  any time during the year other than on January 1, except for the

25-3  renewal of a delinquent license pursuant to subsection 5, the

25-4  licensee shall pay a proportionate part of the annual fee for the

25-5  remainder of the year, but not less than 25 percent of the annual

25-6  license fee.

25-7      [3.  Wholesale cigarette]

25-8      4.  The fees for a wholesale dealer’s license [fees] are due and

25-9  payable on January 1 of each year. If the annual license fee is not

25-10  paid by January 15, the license is cancelled automatically.

25-11     [4.] 5.  A wholesale [cigarette] dealer’s license which is

25-12  cancelled for nonpayment of the annual license fee may be renewed

25-13  at any time by the payment of the fee plus a 5 percent penalty

25-14  thereon.

25-15     Sec. 69.  NRS 370.210 is hereby amended to read as follows:

25-16     370.210  1.  A wholesale dealer whose stamping facilities are

25-17  located within the borders of this state shall affix stamps to all

25-18  applicable cigarette packages received at those stamping facilities

25-19  within 10 days after receipt. A wholesale dealer may set aside,

25-20  without affixing stamps, only that part of the stock of the

25-21  wholesale dealer that is identified for sale or distribution outside

25-22  of the borders of this state. A wholesale dealer must identify any

25-23  stock to be set aside pursuant to this subsection within 10 days

25-24  after the receipt of that stock.

25-25     2.  A wholesale dealer may affix stamps only to cigarette

25-26  packages that the wholesale dealer has received directly from a

25-27  person who holds a current permit to engage in business as a

25-28  manufacturer or importer of cigarettes issued pursuant to 26

25-29  U.S.C. § 5713.

25-30     3.  If a wholesale dealer maintains stocks of unstamped

25-31  cigarette packages as authorized pursuant to subsection 1, those

25-32  unstamped cigarette packages must be stored separately from

25-33  stamped cigarette packages and must not be transferred by the

25-34  wholesale dealer to another facility of the wholesale dealer within

25-35  the borders of this state or to any other person within the borders

25-36  of this state.

25-37     4.  A person shall not affix [cigarette revenue stamps or metered

25-38  machine impressions] stamps to any [package, packet or container

25-39  of cigarettes] cigarette packages except upon the premises

25-40  described in the license of a [cigarette] wholesale dealer or upon

25-41  other premises where authorized by regulation.

25-42     Sec. 70.  NRS 370.250 is hereby amended to read as follows:

25-43     370.250  1.  If any dealer in cigarettes upon which a

25-44  precollected or advance tax is required to be paid fails to file any

25-45  report [to] required pursuant to NRS 370.240 with the Department

26-1  or its agents on or before the date due, the Department may suspend

26-2  his license [or permit] until the report is received and found to be

26-3  correct.

26-4      2.  The Department may temporarily suspend or permanently

26-5  revoke the [licenses] license of any [cigarette dealer] licensee for

26-6  violating, or causing or permitting to be violated, any of the

26-7  provisions of NRS 370.001 to 370.430, inclusive[.] , and sections

26-8  10 to 37, inclusive, of this act, or of sections 51 to 57, inclusive, of

26-9  this act, or any regulations adopted for the administration or

26-10  enforcement of any of those provisions.

26-11     3.  The Department shall permanently revoke the license of

26-12  any licensee convicted of any felony pursuant to section 36 of this

26-13  act.

26-14     Sec. 71.  NRS 370.255 is hereby amended to read as follows:

26-15     370.255  1.  Each [dealer authorized to purchase or affix

26-16  cigarette revenue stamps] :

26-17     (a) Wholesale dealer shall maintain [records of all cigarettes

26-18  received, sold or distributed by him. Each dealer shall also obtain

26-19  and keep receipts, freight bills, invoices and other documents

26-20  necessary to substantiate his records. Records and documents shall

26-21  be kept at the dealer’s place of business] copies of invoices or

26-22  equivalent documentation for each of its facilities for every

26-23  transaction in which the wholesale dealer is the seller, purchaser,

26-24  consignor, consignee or recipient of cigarettes. The invoices or

26-25  documentation must indicate the name and address of the

26-26  consignor, seller, purchaser or consignee, and the quantity by

26-27  brand and style of the cigarettes involved in the transaction.

26-28     (b) Retail dealer shall maintain copies of invoices or

26-29  equivalent documentation for every transaction in which the retail

26-30  dealer receives or purchases cigarettes at each of its facilities. The

26-31  invoices or documentation must indicate the name and address of

26-32  the wholesale dealer from whom, or the address of another facility

26-33  of the same retail dealer from which, the cigarettes were received,

26-34  and the quantity of each brand and style of the cigarettes received

26-35  in the transaction.

26-36     (c) Manufacturer shall maintain copies of invoices or

26-37  equivalent documentation for each of its facilities for every

26-38  transaction in which the manufacturer is the seller, purchaser,

26-39  consignor, consignee or recipient of cigarettes. The invoices or

26-40  documentation must indicate the name and address of the

26-41  consignor, seller, purchaser or consignee, and the quantity by

26-42  brand and style of the cigarettes involved in the transaction.

26-43     2.  The records required by this section must be preserved on

26-44  the premises described in the license of the manufacturer,

26-45  wholesale dealer or retail dealer in such a manner as to ensure

27-1  permanency and accessibility for inspection at reasonable hours

27-2  by authorized personnel of the Department. With the permission of

27-3  the Department, manufacturers, wholesale dealers and retail

27-4  dealers with multiple places of business may retain centralized

27-5  records, but shall transmit duplicates of the invoices or the

27-6  equivalent documentation to each place of business within 24

27-7  hours after the request of the Executive Director or his designee.

27-8      3.  The records required by this section must be retained for

27-9  not less than [4] 3 years after the date of the transaction unless the

27-10  Department authorizes, in writing, their earlier removal or

27-11  destruction.

27-12     Sec. 72.  NRS 370.257 is hereby amended to read as follows:

27-13     370.257  1.  Each manufacturer, wholesale dealer and retail

27-14  dealer shall provide to the Executive Director and his designees

27-15  and to the Secretary or his designee, upon request, access to all the

27-16  reports and records required by NRS 370.001 to 370.430,

27-17  inclusive, and sections 10 to 37, inclusive, of this act. The

27-18  Department at its sole discretion may share the records and

27-19  reports required by those sections with law enforcement officials

27-20  of the Federal Government, this state, other states or international

27-21  authorities.

27-22     2.  Except as otherwise provided in this subsection, the reports

27-23  submitted by licensees pursuant to NRS 370.001 to 370.430,

27-24  inclusive, and sections 10 to 37, inclusive, of this act are public

27-25  records. Any information contained in those reports about

27-26  quantities of cigarettes by brand must not be released to anyone

27-27  other than persons permitted access to those reports pursuant to

27-28  subsection 1.

27-29     3.  The Department may audit the records of each [dealer

27-30  authorized to purchase or affix cigarette revenue stamps]

27-31  manufacturer, wholesale dealer or retail dealer to determine [that

27-32  the dealer] whether the manufacturer, wholesale dealer or retail

27-33  dealer has complied with the provisions of NRS 370.001 to

27-34  370.430, inclusive[.] , and sections 10 to 37, inclusive, of this act.

27-35     Sec. 73.  NRS 370.301 is hereby amended to read as follows:

27-36     370.301  1.  If any unstamped cigarettes are consigned to or

27-37  purchased by any person in this state, such purchaser or consignee

27-38  must be a person authorized by this chapter to possess unstamped

27-39  cigarettes.

27-40     2.  If invoices or delivery tickets for unstamped cigarettes are

27-41  lacking, if the name or address of the consignee or purchaser is

27-42  falsified or if the purchaser or consignee is not authorized by this

27-43  chapter to possess unstamped cigarettes, the cigarettes transported

27-44  [shall be] are subject to seizure and sale under the provisions of

27-45  NRS 370.270.

28-1      3.  Transportation of cigarettes through this state from a point

28-2  outside this state to a point in some other state is not a violation of

28-3  this section if the person transporting the cigarettes has in his

28-4  possession adequate invoices or delivery tickets which give the true

28-5  name and address of the out-of-state seller or consignor and the out-

28-6  of-state purchaser or consignee.

28-7      4.  In any case where the Department, its duly authorized agent

28-8  or any peace officer of the state has knowledge or reasonable

28-9  grounds to believe that any vehicle is transporting cigarettes in

28-10  violation of this [section,] chapter, the Department, agent or peace

28-11  officer may stop the vehicle and inspect it for [unstamped]

28-12  contraband cigarettes.

28-13     Sec. 74.  NRS 370.380 is hereby amended to read as follows:

28-14     370.380  1.  It is unlawful for a person, with the intent to

28-15  defraud the State:

28-16     (a) To alter, forge or counterfeit any license[, stamp or cigarette

28-17  tax meter impression provided for in this chapter;] ; or

28-18     (b) To have in his possession any forged, counterfeited, spurious

28-19  or altered license[, stamp or cigarette tax meter impression,] with

28-20  the intent to use the same, knowing or having reasonable grounds to

28-21  believe the same to be such . [;

28-22     (c) To have in his possession one or more cigarette stamps or

28-23  cigarette tax meter impressions which he knows have been removed

28-24  from the pieces of packages or packages of cigarettes to which they

28-25  were affixed;

28-26     (d) To affix to any piece of a package or package of cigarettes a

28-27  stamp or cigarette tax meter impression which he knows has been

28-28  removed from any other piece of a package or package of cigarettes;

28-29  or

28-30     (e) To have in his possession for the purpose of sale cigarettes

28-31  which do not bear indicia of the State of Nevada excise tax

28-32  stamping. Presence of the cigarettes in a cigarette vending machine

28-33  is prima facie evidence of the purpose to sell.]

28-34     2.  A person who violates any of the provisions of subsection 1

28-35  is guilty of [a misdemeanor on the first offense and upon the second

28-36  or subsequent offense is guilty of] a category [D] C felony and shall

28-37  be punished as provided in NRS 193.130.

28-38     Sec. 75.  NRS 370.390 is hereby amended to read as follows:

28-39     370.390  Except as otherwise provided in NRS 370.380[,] and

28-40  section 35 of this act, any person violating any of the provisions of

28-41  NRS 370.080 to [370.310, inclusive, shall be] 370.315, inclusive,

28-42  and sections 24 to 27, inclusive, of this act is guilty of a gross

28-43  misdemeanor.

 

 

29-1      Sec. 76.  NRS 370.410 is hereby amended to read as follows:

29-2      370.410  [Any] Except as otherwise provided in section 36 of

29-3  this act, any person exporting, importing, possessing or

29-4  constructively possessing contraband cigarettes is guilty of a gross

29-5  misdemeanor.

29-6      Sec. 77.  NRS 370.415 is hereby amended to read as follows:

29-7      370.415  1.  The Department, its agents, sheriffs within their

29-8  respective counties and all other peace officers of the State of

29-9  Nevada shall seize any counterfeit stamps and any contraband

29-10  cigarettes and machinery used to manufacture contraband

29-11  cigarettes, found or located in the State of Nevada.

29-12     2.  A sheriff or other peace officer who seizes stamps, cigarettes

29-13  or machinery pursuant to this section shall provide written

29-14  notification of the seizure to the Department not later than 5

29-15  working days after the seizure. The notification must include the

29-16  reason for the seizure.

29-17     3.  After consultation with the Department, the sheriff or other

29-18  peace officer shall transmit the cigarettes to the Department if:

29-19     (a) The cigarettes, except for revenue stamps or metered

29-20  machine impressions being properly affixed as required by this

29-21  chapter, comply with all state and federal statutes and regulations;

29-22  and

29-23     (b) The Department approves the transmission of the cigarettes.

29-24     4.  Upon receipt of the cigarettes, the Department shall dispose

29-25  of the cigarettes as provided in subsection 4 of NRS 370.270.

29-26     5.  [If the] The sheriff or other peace officer who seizes any

29-27  stamps, cigarettes or machinery pursuant to this section shall:

29-28     (a) Destroy the stamps and machinery; and

29-29     (b) If he does not transmit the cigarettes to the Department, [he

29-30  shall] destroy the cigarettes.

29-31     Sec. 78.  NRS 370.525 is hereby amended to read as follows:

29-32     370.525  1.  Except as otherwise provided in subsection 2, a

29-33  person may institute a civil action in a court of competent

29-34  jurisdiction for appropriate injunctive relief if the person:

29-35     (a) Sells, distributes or manufactures cigarettes; and

29-36     (b) Sustains direct economic or commercial injury as a result of

29-37  a violation of [subsection 4 of NRS 370.240 or NRS 370.385.]  NRS

29-38  370.080 to 370.315, inclusive, and sections 24 to 32, inclusive, of

29-39  this act, NRS 370.380, 370.385 or 370.410, or section 35, 36 or 37

29-40  of this act.

29-41     2.  Nothing in this section authorizes an action against this state,

29-42  a political subdivision of this state, or an officer, employee or

29-43  agency thereof.

 

 

30-1      Sec. 79.  NRS 370.530 is hereby amended to read as follows:

30-2      370.530  1.  The Attorney General or the district attorney of

30-3  the proper county may investigate and prosecute any civil or

30-4  criminal violation of this chapter.

30-5      2.  Sheriffs, within their counties, and all other peace officers of

30-6  the State of Nevada [are charged with the duty,] shall, without

30-7  further compensation, [of assisting] assist in the enforcement of this

30-8  chapter.

30-9      Sec. 80.  NRS 370A.150 is hereby amended to read as follows:

30-10     370A.150  A manufacturer of tobacco products that deposits

30-11  money into escrow pursuant to subsection 2 of NRS 370A.140 shall

30-12  receive the interest or other appreciation on the deposit as earned.

30-13  The principal of the deposit may be released from escrow only

30-14  under the following circumstances:

30-15     1.  To pay a judgment or settlement on a released claim brought

30-16  against that manufacturer by this state or by a releasing party located

30-17  or residing in this state. Money may be released from escrow under

30-18  this subsection only in the order in which it was deposited into

30-19  escrow and only to the extent and at the time necessary to make

30-20  payments required under the judgment or settlement.

30-21     2.  To the extent that the manufacturer establishes that the

30-22  amount it was required to deposit into escrow on account of units

30-23  sold in the State in a particular year was greater than [this state’s

30-24  allocable share of the total payments that the manufacturer would

30-25  have been required to make in that year under] the Master

30-26  Settlement Agreement payments, as determined pursuant to section

30-27  IX(i) of that Agreement including after final determination of all

30-28  adjustments, that such manufacturer would have been required to

30-29  make on account of such units sold if the manufacturer had been a

30-30  participating manufacturer, [as such payments are determined

30-31  pursuant to section IX(i)(2) of that Agreement and before any of the

30-32  adjustments or offsets described in section IX(i)(3) of that

30-33  Agreement other than the inflation adjustment,] the excess must be

30-34  released from escrow and revert to the manufacturer.

30-35     3.  To the extent not released from escrow under subsection 1 or

30-36  2, deposits must be released from escrow and revert to the

30-37  manufacturer 25 years after the date on which they were deposited.

30-38     Sec. 81.  NRS 370A.150 is hereby amended to read as follows:

30-39     370A.150  A manufacturer of tobacco products that deposits

30-40  money into escrow pursuant to subsection 2 of NRS 370A.140 shall

30-41  receive the interest or other appreciation on the deposit as earned.

30-42  The principal of the deposit may be released from escrow only

30-43  under the following circumstances:

30-44     1.  To pay a judgment or settlement on a released claim brought

30-45  against that manufacturer by this state or by a releasing party located

31-1  or residing in this state. Money may be released from escrow under

31-2  this subsection only in the order in which it was deposited into

31-3  escrow and only to the extent and at the time necessary to make

31-4  payments required under the judgment or settlement.

31-5      2.  [To the extent that the manufacturer establishes that the

31-6  amount it was required to deposit into escrow on account of units

31-7  sold in the State in a particular year was greater than the Master

31-8  Settlement Agreement payments, as determined pursuant to section

31-9  IX(i) of that Agreement including after final determination of all

31-10  adjustments, that such manufacturer would have been required to

31-11  make on account of such units sold if the manufacturer had been a

31-12  participating manufacturer, the excess must be released from escrow

31-13  and revert to the manufacturer.

31-14     3.] To the extent not released from escrow under subsection 1 ,

31-15  [or 2,] deposits must be released from escrow and revert to the

31-16  manufacturer 25 years after the date on which they were deposited.

31-17     Sec. 82.  NRS 370A.150 is hereby amended to read as follows:

31-18     370A.150  A manufacturer of tobacco products that deposits

31-19  money into escrow pursuant to subsection 2 of NRS 370A.140 shall

31-20  receive the interest or other appreciation on the deposit as earned.

31-21  The principal of the deposit may be released from escrow only

31-22  under the following circumstances:

31-23     1.  To pay a judgment or settlement on a released claim brought

31-24  against that manufacturer by this state or by a releasing party located

31-25  or residing in this state. Money may be released from escrow under

31-26  this subsection only in the order in which it was deposited into

31-27  escrow and only to the extent and at the time necessary to make

31-28  payments required under the judgment or settlement.

31-29     2.  To the extent that the manufacturer establishes that the

31-30  amount it was required to deposit into escrow in a particular year

31-31  was greater than this state’s allocable share of the total payments

31-32  that the manufacturer would have been required to make in that

31-33  year under the Master Settlement Agreement if the manufacturer

31-34  had been a participating manufacturer, as such payments are

31-35  determined pursuant to section IX(i)(2) of that Agreement and

31-36  before any of the adjustments or offsets described in section

31-37  IX(i)(3) of that Agreement other than the inflation adjustment, the

31-38  excess must be released from escrow and revert to the

31-39  manufacturer.

31-40     3.  To the extent not released from escrow under subsection 1

31-41  [,] or 2, deposits must be released from escrow and revert to the

31-42  manufacturer 25 years after the date on which they were deposited.

31-43     Sec. 83.  1.  The first report required by section 55 of this act

31-44  is due on or before October 20, 2003.

32-1      2.  Notwithstanding the provisions of section 51 of this act, the

32-2  initial certifications required by that section are due on or before

32-3  November 15, 2003.

32-4      3.  The Department of Taxation shall create and make available

32-5  for public inspection the directory required pursuant to section 53 of

32-6  this act on or before December 31, 2003.

32-7      Sec. 84.  1.  This section and sections 1 to 56, inclusive, 58 to

32-8  80, inclusive, and 83 of this act become effective:

32-9      (a) Upon passage and approval for the purposes of adopting

32-10  regulations and taking such other actions as are necessary to carry

32-11  out the provisions of this act; and

32-12     (b) On October 1, 2003, for all other purposes.

32-13     2.  Section 57 of this act becomes effective on January 1, 2004.

32-14     3.  Section 81 of this act becomes effective on the date a court

32-15  of competent jurisdiction enters a judgment determining that the

32-16  amendatory provisions of section 80 of this act are unconstitutional.

32-17     4.  Section 82 of this act becomes effective on the date a court

32-18  of competent jurisdiction enters a judgment determining that the

32-19  amendatory provisions of section 81 of this act are unconstitutional.

 

32-20  H