The bill also establishes the financial requirements for nonparticipating tobacco product manufacturers. The Master Settlement Agreement includes a model statute to create a reserve fund for nonparticipating manufacturers to pay future claims, establishing a level playing field between participating and nonparticipating manufacturers. HB 2313 incorporates this model statute and establishes an escrow account and financial requirements for nonparticipating tobacco product manufacturers.
C Contains a findings and purpose section.
C Defines several terms. The specific rates for the annual escrow payments are on a per unit basis. Requires a nonparticipating tobacco product manufacturer that fails in any year to fulfill the escrow requirements to deposit the monies into escrow within 15 days. Requires civil penalties to be placed in the state general fund.