Opinion ID: 4271526
Heading Depth: 2
Heading Rank: 1

Heading: The MSA.

Text: In 1998, leading tobacco product manufacturers entered into the MSA with the State of West Virginia.2 In pertinent part, “[t]he master settlement agreement obligates these manufacturers, in return for a release of past, present and certain future claims against them . . . to pay substantial sums to the State (tied in part to their volume of sales) . . . .”3 The following year, the Legislature enacted Article 9B of Chapter 16. In part, Article 9B requires cigarette manufacturers who are not part of the MSA, but whose cigarettes are sold in West Virginia, to make annual deposits into escrow accounts intended to pay a 2 W. Va. Code § 16-9B-1(e) (2016). 3 Id. 2 judgment or settlement resulting from a claim brought against the manufacturer by the State or a West Virginia resident.4 In 2003, the West Virginia Legislature enacted model legislation to prevent violations and aid enforcement of the obligations imposed by Article 9B of Chapter 16 of the West Virginia Code.5 This legislation, codified at Article 9D of Chapter 16 of the West Virginia Code, directs the Commissioner to create and maintain a directory of cigarette brands approved for sale in West Virginia.6 Chapter 16, Article 9D also charges the Commissioner with adding or removing manufacturers from the list as appropriate,7 but not without first notifying the manufacturer and distributors of the manufacturer’s affected brand or brands.8 However, a manufacturer or distributor’s failure to receive notice from the Commissioner of changes to the directory, or even the Commissioner’s failure to 4 W. Va. Code §§ 16-9B-1(f) and 3(b)(2)(A) (2016). 5 W. Va. Code §§ 16-9D-1 through 10 (2016). 6 W. Va. Code § 16-9D-3(b), which states in full: The commissioner shall develop and publish on the Tax Division’s website a directory listing all tobacco product manufacturers that have provided current and accurate certifications conforming to the requirements of subsection (a) of this section and all brand families that are listed in the certifications, except as provided in subdivisions (1) and (2) of this subsection. 7 W. Va. Code § 16-9D-3(b)(3). 8 Id. § 16-9D-3(b)(3)(A) and (B). 3 provide such notice, does not excuse a party from their obligations under Article 9D of Chapter 16 of the West Virginia Code.9 It is unlawful to sell, offer, or possess for sale in West Virginia a brand of cigarettes that is not included in the Commissioner’s list.10 Pursuant to West Virginia Code § 16-9D-8(a), the Commissioner may impose a wide range of penalties upon a party that sells a brand of cigarettes in West Virginia when that brand does not appear on the Commissioner’s list—that is, when the brand is “delisted.”