exempt

   (Reprinted with amendments adopted on June 1, 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 and rights of manufacturers and distributors of cigarettes;  revising the duties of the Department of Taxation; providing 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.

1-12      2.  “Delivery service” means any person engaged in the

1-13  commercial delivery of letters, packages or other containers.

2-1  3.  “Distribute” includes furnishing, giving away or providing

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

2-3  promote the product, whether or not in combination with a sale.

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

2-5  district, or his designee, or, if none, the State Health Officer, or his

2-6  designee.

2-7  Sec. 2.  NRS 202.24935 is hereby amended to read as follows:

2-8      202.24935  1.  It is unlawful for a person to knowingly sell or

2-9  distribute cigarettes, cigarette paper, tobacco of any description or

2-10  products made from tobacco to a child under the age of 18 years

2-11  through [the use of the Internet.] a delivery sale.

2-12      2.  A person who violates the provisions of subsection 1 shall

2-13  be punished by a fine of not more than $500 and a civil penalty of

2-14  not more than $500. Any money recovered pursuant to this section

2-15  as a civil penalty must be deposited in the same manner as money is

2-16  deposited pursuant to subsection 6 of NRS 202.2493.

2-17      3.  Every person who sells or distributes cigarettes, cigarette

2-18  paper, tobacco of any description or products made from tobacco

2-19  through [the use of the Internet] a delivery sale shall adopt a policy

2-20  to prevent a child under the age of 18 years from obtaining

2-21  cigarettes, cigarette paper, tobacco of any description or products

2-22  made from tobacco from the person through [the use of the

2-23  Internet.] a delivery sale. The policy must include, without

2-24  limitation, a method for ensuring that the person who delivers such

2-25  items obtains the signature of a person who is over the age of 18

2-26  years when delivering the items, that the packaging or wrapping of

2-27  the items when they are shipped is clearly marked with the word

2-28  “cigarettes” or the words “tobacco products,” and that the person

2-29  complies with the provisions of 15 U.S.C. § 376. A person who fails

2-30  to adopt a policy pursuant to this subsection is guilty of a

2-31  misdemeanor and shall be punished by a fine of not more than $500.

2-32      Sec. 3.  Chapter 62 of NRS is hereby amended by adding

2-33  thereto the provisions set forth as sections 4 and 5 of this act.

2-34      Sec. 4.  1.  Except as otherwise provided in subsection 2, a

2-35  child under the age of 18 years shall not falsely represent that he

2-36  is 18 years of age or older to purchase or obtain cigarettes,

2-37  cigarette paper, tobacco of any description or products made from

2-38  tobacco.

2-39      2.  Subsection 1 does not apply to a child who is assisting in

2-40  an inspection pursuant to NRS 202.2496.

2-41      Sec. 5.  (Deleted by amendment.)

2-42      Sec. 6.  NRS 62.040 is hereby amended to read as follows:

2-43      62.040  1.  Except if the child involved is subject to the

2-44  exclusive jurisdiction of an Indian tribe, and except as otherwise

3-1  provided in this chapter, the court has exclusive original jurisdiction

3-2  in proceedings:

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

3-4  is in need of supervision because he:

3-5       (1) Is a child who is subject to compulsory school attendance

3-6  and is a habitual truant from school;

3-7       (2) Engages in an act prohibited by section 4 of this act;

3-8       (3) Habitually disobeys the reasonable and lawful demands

3-9  of his parents, guardian or other custodian, and is unmanageable; or

3-10          [(3)] (4) Deserts, abandons or runs away from his home or

3-11  usual place of abode,

3-12  and is in need of care or rehabilitation. [The] A child who is in need

3-13  of supervision pursuant to this paragraph must not be considered a

3-14  delinquent.

3-15      (b) Concerning any child living or found within the county who

3-16  has committed a delinquent act. A child commits a delinquent act if

3-17  he violates a county or municipal ordinance or any rule or regulation

3-18  having the force of law, or he commits an act designated a crime

3-19  under the law of the State of Nevada.

3-20      (c) Concerning any child in need of commitment to an

3-21  institution for the mentally retarded.

3-22      2.  For the purposes of subsection 1, each of the following acts

3-23  shall be deemed not to be a delinquent act, and the court does not

3-24  have jurisdiction of a person who is charged with committing such

3-25  an act:

3-26      (a) Murder or attempted murder and any other related offense

3-27  arising out of the same facts as the murder or attempted murder,

3-28  regardless of the nature of the related offense.

3-29      (b) Sexual assault or attempted sexual assault involving the use

3-30  or threatened use of force or violence against the victim and any

3-31  other related offense arising out of the same facts as the sexual

3-32  assault or attempted sexual assault, regardless of the nature of the

3-33  related offense, if:

3-34          (1) The person was 16 years of age or older when the sexual

3-35  assault or attempted sexual assault was committed; and

3-36          (2) Before the sexual assault or attempted sexual assault was

3-37  committed, the person previously had been adjudicated delinquent

3-38  for an act that would have been a felony if committed by an adult.

3-39      (c) An offense or attempted offense involving the use or

3-40  threatened use of a firearm and any other related offense arising out

3-41  of the same facts as the offense or attempted offense involving the

3-42  use or threatened use of a firearm, regardless of the nature of the

3-43  related offense, if:

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

4-2  or attempted offense involving the use or threatened use of a firearm

4-3  was committed; and

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

4-5  or threatened use of a firearm was committed, the person previously

4-6  had been adjudicated delinquent for an act that would have been a

4-7  felony if committed by an adult.

4-8  (d) A felony resulting in death or substantial bodily harm to the

4-9  victim and any other related offense arising out of the same facts as

4-10  the felony, regardless of the nature of the related offense, if:

4-11          (1) The felony was committed on the property of a public or

4-12  private school when pupils or employees of the school were present

4-13  or may have been present, at an activity sponsored by a public or

4-14  private school or on a school bus while the bus was engaged in its

4-15  official duties; and

4-16          (2) The person intended to create a great risk of death or

4-17  substantial bodily harm to more than one person by means of a

4-18  weapon, device or course of action that would normally be

4-19  hazardous to the lives of more than one person.

4-20      (e) Any other offense if, before the offense was committed, the

4-21  person previously had been convicted of a criminal offense.

4-22      3.  If a child is charged with a minor traffic offense, the court

4-23  may transfer the case and record to a justice’s or municipal court if

4-24  the judge determines that it is in the best interest of the child. If a

4-25  case is so transferred:

4-26      (a) The restrictions set forth in subsection 7 of NRS 62.170 are

4-27  applicable in those proceedings; and

4-28      (b) The child must be accompanied at all proceedings by a

4-29  parent or legal guardian.

4-30  With the consent of the judge of the juvenile division, the case may

4-31  be transferred back to the juvenile court.

4-32      4.  As used in this section, “school bus” has the meaning

4-33  ascribed to it in NRS 483.160.

4-34      Sec. 7.  NRS 62.212 is hereby amended to read as follows:

4-35      62.212  1.  Except as otherwise provided in subsection [3,] 4,

4-36  if the court finds that a child is within the purview of paragraph (a)

4-37  of subsection 1 of NRS 62.040 and has not previously been the

4-38  subject of a complaint under NRS 62.128 before committing the acts

4-39  for which the petition was filed, the court shall:

4-40      (a) Admonish the child to obey the law and to refrain from

4-41  repeating the acts for which the petition was filed, and maintain a

4-42  record of the admonition; and

4-43      (b) Refer the child, without adjudication, to services available in

4-44  the community for counseling, behavioral modification and social

4-45  adjustment.

5-1  2.  Except as otherwise provided in subsection [3,] 4, a child

5-2  described in subsection 1 must not be adjudicated to be a child in

5-3  need of supervision unless a subsequent petition based upon

5-4  additional facts is filed with the court after admonition and referral

5-5  pursuant to [this subsection.

5-6  2.] that subsection.

5-7  3.  A child who is:

5-8  (a) Less than 12 years of age must not be committed to or

5-9  otherwise placed in the Nevada Youth Training Center or the

5-10  Caliente Youth Center.

5-11      (b) Not adjudicated to be delinquent must not be committed to

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

5-13  Caliente Youth Center or any other facility that provides

5-14  correctional care.

5-15      [3.] 4.  The provisions of subsection 1 do not apply to a child

5-16  alleged to be in need of supervision because he is a habitual truant.

5-17      5.  In addition to the actions set forth in subsection 1, a court

5-18  may order a child who engages in an act prohibited by section 4 of

5-19  this act to perform community service. Community service so

5-20  ordered must be performed:

5-21      (a) For and under the supervising authority of a county, city,

5-22  town or other political subdivision or agency of this state or a

5-23  charitable organization that renders service to the community or

5-24  its residents; and

5-25      (b) At the child’s school of attendance, if practicable.

5-26      Sec. 8.  (Deleted by amendment.)

5-27      Sec. 9.  Chapter 370 of NRS is hereby amended by adding

5-28  thereto the provisions set forth as sections 10 to 58, inclusive, of this

5-29  act.

5-30      Secs. 10-37.  (Deleted by amendment.)

5-31      Sec. 38.  The Legislature finds that:

5-32      1.  Violations of the provisions of chapter 370A of NRS

5-33  threaten the integrity of the Master Settlement Agreement, the

5-34  fiscal soundness of the State and the public health.

5-35      2.  The enactment of the procedural enhancements set forth in

5-36  sections 38 to 58, inclusive, of this act will aid in the enforcement

5-37  of the provisions of chapter 370A of NRS and thereby safeguard

5-38  the Master Settlement Agreement, the fiscal soundness of the State

5-39  and the public health.

5-40      Sec. 39.  As used in sections 38 to 58, inclusive, of this act,

5-41  unless the context otherwise requires, the words and terms defined

5-42  in sections 40 to 50, inclusive, of this act have the meanings

5-43  ascribed to them in those sections.

5-44      Sec. 40.  “Brand family” means all styles of cigarettes sold

5-45  under the same trademark and differentiated from one another by

6-1  means of additional modifiers or descriptors, including, but not

6-2  limited to, “menthol,” “lights,” “kings” and “100s,” and includes

6-3  any brand name, whether occurring alone or in conjunction with

6-4  any other word, any trademark, logo, symbol, motto, selling

6-5  message or recognizable pattern of colors, or any other indicia of

6-6  product identification identical or similar to, or identifiable with, a

6-7  previously known brand of cigarettes.

6-8  Sec. 41.  “Cigarette” has the meaning ascribed to it in

6-9  NRS 370A.050.

6-10      Sec. 42.  “Directory” means the directory created pursuant to

6-11  section 53 of this act.

6-12      Sec. 43.  “Distributor” means a person that is authorized to

6-13  affix stamps to cigarette packages pursuant to this chapter or any

6-14  person that is required to pay the taxes on cigarettes imposed

6-15  pursuant to this chapter.

6-16      Sec. 44.  “Manufacturer of tobacco products” has the

6-17  meaning ascribed to it in NRS 370A.060.

6-18      Sec. 45.  “Master Settlement Agreement” has the meaning

6-19  ascribed to it in NRS 370A.070.

6-20      Sec. 46.  “Nonparticipating manufacturer” means any

6-21  manufacturer of tobacco products that is not a participating

6-22  manufacturer.

6-23      Sec. 47.  “Participating manufacturer” has the meaning

6-24  ascribed to it in NRS 370A.080.

6-25      Sec. 48.  “Qualified escrow fund” has the meaning ascribed

6-26  to it in NRS 370A.090.

6-27      Sec. 49.  “Stamp” means the indicia required to be placed on

6-28  a cigarette package that evidences payment of the taxes on

6-29  cigarettes imposed pursuant to this chapter.

6-30      Sec. 50.  “Units sold” has the meaning ascribed to it in

6-31  NRS 370A.120.

6-32      Sec. 51.  1.  A manufacturer of tobacco products whose

6-33  cigarettes are sold in this state, whether directly or through a

6-34  distributor, retailer or similar intermediary or intermediaries,

6-35  shall, not later than April 30 of each year, execute and deliver to

6-36  the Attorney General and the Department, on a form provided by

6-37  the Department, a certification which certifies under penalty of

6-38  perjury that, as of the date of that certification, the manufacturer

6-39  of tobacco products is either:

6-40      (a) A participating manufacturer; or

6-41      (b) In full compliance with subsection 2 of NRS 370A.140,

6-42  including any quarterly installment payments required pursuant to

6-43  section 56 of this act.

6-44      2.  Except as otherwise provided in section 52 of this act:

7-1  (a) A participating manufacturer shall include in its

7-2  certification pursuant to this section a list of its brand families.

7-3  The participating manufacturer shall update that list at least 30

7-4  calendar days before it adds to or modifies its brand families by

7-5  executing and delivering a supplemental certification to the

7-6  Attorney General and the Department.

7-7  (b) A nonparticipating manufacturer shall, in its certification

7-8  pursuant to this section:

7-9      (1) Include:

7-10              (I) A list of all of its brand families and the number of

7-11  units sold for each brand family that were sold in the State during

7-12  the preceding calendar year; and

7-13              (II) A list of all of its brand families that have been sold

7-14  in the State at any time during the current calendar year;

7-15          (2) Indicate, by an asterisk, any brand family sold in the

7-16  State during the preceding calendar year that is no longer being

7-17  sold in the State as of the date of the certification; and

7-18          (3) Identify, by name and address, any other manufacturer

7-19  of those brand families in the preceding or current calendar

7-20  year.

7-21  A nonparticipating manufacturer shall update the information

7-22  required by this paragraph at least 30 calendar days before it adds

7-23  to or modifies its brand families by executing and delivering a

7-24  supplemental certification to the Attorney General and the

7-25  Department.

7-26      3.  In addition to the requirements of subsection 2, the

7-27  certification of a nonparticipating manufacturer pursuant to this

7-28  section must certify:

7-29      (a) That the nonparticipating manufacturer is registered to do

7-30  business in the State or has appointed a resident agent for service

7-31  of process and provided notice thereof as required by section 54 of

7-32  this act;

7-33      (b) That the nonparticipating manufacturer has:

7-34          (1) Established and continues to maintain a qualified

7-35  escrow fund; and

7-36          (2) Executed a qualified escrow agreement governing the

7-37  qualified escrow fund that has been reviewed and approved by the

7-38  Attorney General;

7-39      (c) That the nonparticipating manufacturer is in full

7-40  compliance with chapter 370A of NRS and any regulations

7-41  adopted pursuant thereto;

7-42      (d) The name, address and telephone number of the financial

7-43  institution where the nonparticipating manufacturer has

7-44  established the qualified escrow fund required pursuant to chapter

7-45  370A of NRS and any regulations adopted pursuant thereto;

8-1  (e) The account number of that qualified escrow fund and any

8-2  sub-account number for this state;

8-3  (f) The amount the nonparticipating manufacturer placed in

8-4  that qualified escrow fund for cigarettes sold in the State during

8-5  the preceding calendar year, the date and amount of each such

8-6  deposit, and such evidence or verification as may be deemed

8-7  necessary by the Department to confirm the information required

8-8  by this paragraph; and

8-9  (g) The amount and date of any withdrawal or transfer of

8-10  money the nonparticipating manufacturer made at any time from

8-11  that qualified escrow fund or from any other qualified escrow

8-12  fund into which it ever made escrow payments pursuant to chapter

8-13  370A of NRS and any regulations adopted pursuant thereto.

8-14      Sec. 52.  A manufacturer of tobacco products:

8-15      1.  Shall not include a brand family in its certification

8-16  pursuant to section 51 of this act unless, if the manufacturer is:

8-17      (a) A participating manufacturer, the manufacturer affirms

8-18  that the brand family is to be deemed to be its cigarettes for

8-19  purposes of calculating its payments under the Master Settlement

8-20  Agreement for the relevant year, in the volume and shares

8-21  determined pursuant to the Master Settlement Agreement; or

8-22      (b) A nonparticipating manufacturer, the manufacturer

8-23  affirms that the brand family is to be deemed to be its cigarettes

8-24  for purposes of chapter 370A of NRS.

8-25  This subsection must not be construed as limiting or otherwise

8-26  affecting the right of the State to maintain that a brand family

8-27  constitutes cigarettes of a different manufacturer of tobacco

8-28  products for purposes of calculating payments under the Master

8-29  Settlement Agreement or for purposes of chapter 370A of NRS.

8-30      2.  Shall maintain all invoices and documentation of sales,

8-31  and any other information relied upon by the manufacturer for its

8-32  certification pursuant to section 51 of this act, for at least 5 years,

8-33  unless the manufacturer is otherwise required by law to maintain

8-34  them for a greater period.

8-35      Sec. 53.  1.  The Department shall create and maintain on

8-36  its Internet website and otherwise make available for public

8-37  inspection a directory that lists, except as otherwise provided in

8-38  sections 38 to 58, inclusive, of this act, all manufacturers of

8-39  tobacco products that have provided current and accurate

8-40  certifications conforming to the requirements of sections 38 to 58,

8-41  inclusive, of this act and all brand families that are listed in those

8-42  certifications. The Department:

8-43      (a) Shall not include or retain in the directory the name or

8-44  brand families of any nonparticipating manufacturer that has

8-45  failed to provide the required certification or whose certification

9-1  the Department determines is not in compliance with sections 38

9-2  to 58, inclusive, of this act, unless the Department has determined

9-3  that such violation has been cured to its satisfaction.

9-4  (b) Shall not include or retain in the directory a manufacturer

9-5  of tobacco products or brand family if the Department concludes,

9-6  for a nonparticipating manufacturer, that:

9-7       (1) Any escrow payment required pursuant to chapter 370A

9-8  of NRS for any period for any brand family, whether or not listed

9-9  by the nonparticipating manufacturer, has not been fully paid into

9-10  a qualified escrow fund governed by a qualified escrow agreement

9-11  which has been approved by the Attorney General; or

9-12          (2) Any outstanding final judgment, including any interest

9-13  thereon, for a violation of chapter 370A of NRS has not been fully

9-14  satisfied for that manufacturer or brand family.

9-15      2.  The Department shall update the directory as necessary to

9-16  correct mistakes and to add or remove a manufacturer of tobacco

9-17  products or brand family to keep the directory in conformity with

9-18  the requirements of sections 38 to 58, inclusive, of this act.

9-19      3.  Any determination of the Department not to include in or

9-20  to remove from the directory a manufacturer of tobacco products

9-21  or brand family is a final decision for the purposes of judicial

9-22  review.

9-23      Sec. 54.  1.  Any nonresident or foreign nonparticipating

9-24  manufacturer that has not registered to do business in the State as

9-25  a foreign corporation or other business entity must, as a condition

9-26  precedent to having its brand families included or retained in the

9-27  directory, appoint and continually engage without interruption the

9-28  services of an agent in this state to act as its agent for the service

9-29  of process on whom all process, in any action or proceeding

9-30  against it concerning or arising out of the enforcement of this

9-31  chapter, may be served in any manner authorized by law. Such

9-32  service constitutes legal and valid service of process on the

9-33  nonparticipating manufacturer. The nonparticipating

9-34  manufacturer shall provide the name, address, phone number and

9-35  proof of the appointment and availability of such agent to, and to

9-36  the satisfaction of, the Attorney General and the Department.

9-37      2.  A nonparticipating manufacturer shall provide notice to

9-38  the Attorney General and the Department at least 30 calendar days

9-39  before the termination of the authority of an agent appointed

9-40  pursuant to this section and shall provide proof to the satisfaction

9-41  of the Attorney General and the Department of the appointment of

9-42  a new agent not less than 5 calendar days before the termination

9-43  of appointment of an existing agent. If an agent terminates his

9-44  appointment as an agent, the nonparticipating manufacturer shall

9-45  notify the Attorney General and the Department of that

10-1  termination within 5 calendar days and include with that

10-2  notification proof to the satisfaction of the Attorney General and

10-3  the Department of the appointment of a new agent.

10-4      3.  Any nonparticipating manufacturer whose cigarettes are

10-5  sold in this state and who has not appointed and engaged an agent

10-6  as required by this section shall be deemed to have appointed the

10-7  Secretary of State as such agent and may be proceeded against in

10-8  courts of this state by service of process upon the Secretary of

10-9  State, except that the appointment of the Secretary of State as such

10-10  agent does not satisfy the condition precedent for having the brand

10-11  families of the nonparticipating manufacturer included or

10-12  retained in the directory.

10-13     Sec. 55.  1.  Not later than 20 calendar days after the end of

10-14  each calendar quarter, and more frequently if so directed by the

10-15  Department, each distributor shall submit such information as the

10-16  Department requires to facilitate compliance with the provisions of

10-17  sections 38 to 58, inclusive, of this act, including, without

10-18  limitation, a list by brand family of the total number of cigarettes

10-19  or, in the case of “roll-your-own” tobacco, the equivalent unit

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

10-21  calendar quarter or otherwise paid the tax due for those cigarettes.

10-22  The distributor shall maintain for at least 5 years, and make

10-23  available to the Department, all invoices and documentation of

10-24  sales of all cigarettes of nonparticipating manufacturers and any

10-25  other information relied upon in reporting to the Department.

10-26     2.  The Department may disclose to the Attorney General any

10-27  information received pursuant to sections 38 to 58, inclusive, of

10-28  this act and requested by the Attorney General for purposes

10-29  of determining compliance with and enforcing the provisions of

10-30  sections 38 to 58, inclusive, of this act. The Department and

10-31  Attorney General shall share with each other the information

10-32  received pursuant to the provisions of sections 38 to 58, inclusive,

10-33  of this act, and may share such information with other federal,

10-34  state or local agencies only for purposes of enforcement of those

10-35  provisions, the provisions of chapter 370A of NRS or the

10-36  corresponding laws of other states.

10-37     3.  The Department may require at any time from a

10-38  nonparticipating manufacturer proof, from the financial

10-39  institution in which that manufacturer has established a qualified

10-40  escrow fund for the purpose of compliance with chapter 370A of

10-41  NRS, of the amount of money in that fund, exclusive of interest,

10-42  the amount and date of each deposit to that fund, and the amount

10-43  and date of each withdrawal from that fund.

10-44     4.  In addition to the information otherwise required to be

10-45  submitted pursuant to sections 38 to 58, inclusive, of this act, the

11-1  Department may require a distributor or manufacturer of tobacco

11-2  products to submit any additional information, including, without

11-3  limitation, samples of the packaging or labeling of each brand

11-4  family, as is necessary to enable the Department to determine

11-5  whether a manufacturer of tobacco products is in compliance with

11-6  the provisions of sections 38 to 58, inclusive, of this act.

11-7      5.  Every distributor shall provide to the Department and

11-8  update as necessary an electronic mail address for receiving any

11-9  notifications as may be required to carry out sections 38 to 58,

11-10  inclusive, of this act.

11-11     Sec. 56.  1.  To promote compliance with the provisions of

11-12  NRS 370A.140, the Department may adopt regulations requiring a

11-13  manufacturer of tobacco products to make the escrow deposits

11-14  required by NRS 370A.140 in quarterly installments during the

11-15  year in which the sales covered by those deposits are made. The

11-16  Department may require the production of information sufficient

11-17  to enable the Department to determine the adequacy of the amount

11-18  of each quarterly installment.

11-19     2.  The Department may adopt such regulations as it deems

11-20  necessary to carry out the provisions of sections 38 to 58,

11-21  inclusive, of this act.

11-22     Secs. 57-79.  (Deleted by amendment.)

11-23     Sec. 80.  NRS 370A.150 is hereby amended to read as follows:

11-24      370A.150  A manufacturer of tobacco products that deposits

11-25  money into escrow pursuant to subsection 2 of NRS 370A.140 shall

11-26  receive the interest or other appreciation on the deposit as earned.

11-27  The principal of the deposit may be released from escrow only

11-28  under the following circumstances:

11-29     1.  To pay a judgment or settlement on a released claim brought

11-30  against that manufacturer by this state or by a releasing party located

11-31  or residing in this state. Money may be released from escrow under

11-32  this subsection only in the order in which it was deposited into

11-33  escrow and only to the extent and at the time necessary to make

11-34  payments required under the judgment or settlement.

11-35     2.  To the extent that the manufacturer establishes that the

11-36  amount it was required to deposit into escrow on account of units

11-37  sold in the State in a particular year was greater than [this state’s

11-38  allocable share of the total payments that the manufacturer would

11-39  have been required to make in that year under] the Master

11-40  Settlement Agreement payments, as determined pursuant to section

11-41  IX(i) of that Agreement including after final determination of all

11-42  adjustments, that such manufacturer would have been required to

11-43  make on account of such units sold if the manufacturer had been a

11-44  participating manufacturer, [as such payments are determined

11-45  pursuant to section IX(i)(2) of that Agreement and before any of the

12-1  adjustments or offsets described in section IX(i)(3) of that

12-2  Agreement other than the inflation adjustment,] the excess must be

12-3  released from escrow and revert to the manufacturer.

12-4      3.  To the extent not released from escrow under subsection 1 or

12-5  2, deposits must be released from escrow and revert to the

12-6  manufacturer 25 years after the date on which they were deposited.

12-7      Sec. 81.  NRS 370A.150 is hereby amended to read as follows:

12-8      370A.150  A manufacturer of tobacco products that deposits

12-9  money into escrow pursuant to subsection 2 of NRS 370A.140 shall

12-10  receive the interest or other appreciation on the deposit as earned.

12-11  The principal of the deposit may be released from escrow only

12-12  under the following circumstances:

12-13     1.  To pay a judgment or settlement on a released claim brought

12-14  against that manufacturer by this state or by a releasing party located

12-15  or residing in this state. Money may be released from escrow under

12-16  this subsection only in the order in which it was deposited into

12-17  escrow and only to the extent and at the time necessary to make

12-18  payments required under the judgment or settlement.

12-19     2.  [To the extent that the manufacturer establishes that the

12-20  amount it was required to deposit into escrow on account of units

12-21  sold in the State in a particular year was greater than the Master

12-22  Settlement Agreement payments, as determined pursuant to section

12-23  IX(i) of that Agreement including after final determination of all

12-24  adjustments, that such manufacturer would have been required to

12-25  make on account of such units sold if the manufacturer had been a

12-26  participating manufacturer, the excess must be released from escrow

12-27  and revert to the manufacturer.

12-28     3.] To the extent not released from escrow under subsection 1 ,

12-29  [or 2,] deposits must be released from escrow and revert to the

12-30  manufacturer 25 years after the date on which they were deposited.

12-31     Sec. 82.  NRS 370A.150 is hereby amended to read as follows:

12-32      370A.150  A manufacturer of tobacco products that deposits

12-33  money into escrow pursuant to subsection 2 of NRS 370A.140 shall

12-34  receive the interest or other appreciation on the deposit as earned.

12-35  The principal of the deposit may be released from escrow only

12-36  under the following circumstances:

12-37     1.  To pay a judgment or settlement on a released claim brought

12-38  against that manufacturer by this state or by a releasing party located

12-39  or residing in this state. Money may be released from escrow under

12-40  this subsection only in the order in which it was deposited into

12-41  escrow and only to the extent and at the time necessary to make

12-42  payments required under the judgment or settlement.

12-43     2.  To the extent that the manufacturer establishes that the

12-44  amount it was required to deposit into escrow in a particular year

12-45  was greater than this state’s allocable share of the total payments

13-1  that the manufacturer would have been required to make in that

13-2  year under the Master Settlement Agreement if the manufacturer

13-3  had been a participating manufacturer, as such payments are

13-4  determined pursuant to section IX(i)(2) of that Agreement and

13-5  before any of the adjustments or offsets described in section

13-6  IX(i)(3) of that Agreement other than the inflation adjustment, the

13-7  excess must be released from escrow and revert to the

13-8  manufacturer.

13-9      3.  To the extent not released from escrow under subsection 1

13-10  [,] or 2, deposits must be released from escrow and revert to the

13-11  manufacturer 25 years after the date on which they were deposited.

13-12     Sec. 83.  1.  The first report required by section 55 of this act

13-13  is due on or before October 20, 2003.

13-14     2.  Notwithstanding the provisions of section 51 of this act, the

13-15  initial certifications required by that section are due on or before

13-16  November 15, 2003.

13-17     3.  The Department of Taxation shall create and make available

13-18  for public inspection the directory required pursuant to section 53 of

13-19  this act on or before December 31, 2003.

13-20     Sec. 84.  1.  This section and sections 1 to 56, inclusive, 58 to

13-21  80, inclusive, and 83 of this act become effective:

13-22     (a) Upon passage and approval for the purposes of adopting

13-23  regulations and taking such other actions as are necessary to carry

13-24  out the provisions of this act; and

13-25     (b) On October 1, 2003, for all other purposes.

13-26     2.  Section 57 of this act becomes effective on January 1, 2004.

13-27     3.  Section 81 of this act becomes effective on the date a court

13-28  of competent jurisdiction enters a judgment determining that the

13-29  amendatory provisions of section 80 of this act are unconstitutional.

13-30     4.  Section 82 of this act becomes effective on the date a court

13-31  of competent jurisdiction enters a judgment determining that the

13-32  amendatory provisions of section 81 of this act are unconstitutional.

 

13-33  H