3.2-4211 - Quarterly escrow payments by certain nonparticipating manufacturers.
§ 3.2-4211. Quarterly escrow payments by certain nonparticipatingmanufacturers.
A. Notwithstanding the provisions of § 3.2-4201, on and after January 1,2007, the Attorney General may require a nonparticipating manufacturer thatis a new market entrant to make the escrow payments required by § 3.2-4201 ona quarterly, rather than annual basis. For the purposes of this section, a"new market entrant" shall mean a tobacco product manufacturer that firstseeks certification pursuant to § 3.2-4205 on or after January 1, 2007.
B. A nonparticipating manufacturer required to make quarterly paymentspursuant to this section shall place into a qualified escrow account theamounts required pursuant to subdivision A 2 of § 3.2-4201 by the fifteenthof the second month following the end of each calendar quarter, except thepayment for the last quarter of a calendar year shall be made by April 15 ofthe year following the year in question. Any adjustments for inflation to theamounts placed into a qualified escrow pursuant to this section shall bereflected in the payments for the last quarter of a calendar year.
C. A nonparticipating manufacturer required to make payments pursuant to thissection shall also provide the certification required by subsection C of §3.2-4201 on a quarterly basis. Any such nonparticipating manufacturer thatfails in any quarter to place into escrow the funds required under thissection shall be subject to the penalty provisions of § 3.2-4201.
D. The Attorney General is authorized to create any forms and require anynonparticipating manufacturer required to make quarterly payments pursuant tothis section to submit any additional information as is necessary to enablethe Attorney General to determine whether the nonparticipating manufactureris in compliance with the provisions of this section. At the time thenonparticipating manufacturer is first certified by the Attorney Generalpursuant to § 3.2-4205, the Attorney General will notify the nonparticipatingmanufacturer as to whether it will be required to make quarterly paymentspursuant to this section. The Attorney General may seek an injunction tocompel compliance with the reporting requirements. In any action broughtpursuant to this subsection in which the Commonwealth prevails, theCommonwealth shall be entitled to recover the reasonable costs ofinvestigation, costs of the action, and reasonable attorney fees.
E. A nonparticipating manufacturer required to make quarterly paymentspursuant to this section who fails to properly do so shall be deemed to havefailed to make required payments pursuant to § 3.2-4201 and shall be subjectto all enforcement actions available for a violation of § 3.2-4201.
F. A nonparticipating manufacturer required to make quarterly paymentspursuant to this section who, to the satisfaction of the Attorney General,has complied with the provisions of Article 1 (§ 3.2-4200 et seq.) of thischapter and the provisions of this article for a period of at least threecalendar years may, upon request and upon the concurrence of the AttorneyGeneral, be permitted to make annual payments pursuant to Article 1 (§3.2-4200 et seq.) of this chapter and be relieved of further obligation tomake quarterly payments.
(2006, c. 674, § 3.1-336.9:1; 2008, c. 860.)