RCW 70.157.020
Requirements. (Contingent expiration date.)
Any tobacco product manufacturer selling cigarettes to consumers
within the State (whether directly or through a distributor,
retailer or similar intermediary or intermediaries) after May 18,
1999, shall do one of the following:
(a) become a participating manufacturer (as that term is
defined in section II(jj) of the Master Settlement Agreement) and
generally perform its financial obligations under the Master
Settlement Agreement; or
(b)(1) place into a qualified escrow fund by April 15 of the
year following the year in question the following amounts (as
such amounts are adjusted for inflation) --
1999: $.0094241 per unit sold after May 18, 1999;
2000: $.0104712 per unit sold;
for each of 2001 and 2002: $.0136125 per unit sold;
for each of 2003 through 2006: $.0167539 per unit sold;
for each of 2007 and each year thereafter: $.0188482 per
unit sold.
(2) A tobacco product manufacturer that places funds into
escrow pursuant to paragraph (1) shall receive the interest or
other appreciation on such funds as earned. Such funds
themselves shall be released from escrow only under the following
circumstances --
(A) to pay a judgment or settlement on any released claim
brought against such tobacco product manufacturer by the State or
any releasing party located or residing in the State. Funds
shall be released from escrow under this subparagraph (i) in the
order in which they were placed into escrow and (ii) only to the
extent and at the time necessary to make payments required under
such judgment or settlement;
(B) to the extent that a tobacco product manufacturer
establishes that the amount it was required to place into escrow
on account of units sold in the state in a particular year was
greater than the Master Settlement Agreement payments, as
determined pursuant to section IX(i) of that Agreement including
after final determination of all adjustments, that such
manufacturer would have been required to make on account of such
units sold, had it been a Participating Manufacturer, the excess
shall be released from escrow and revert back to such tobacco
product manufacturer; or
(C) to the extent not released from escrow under
subparagraphs (A) or (B), funds shall be released from escrow and
revert back to such tobacco product manufacturer twenty-five
years after the date on which they were placed into escrow.
(3) Each tobacco product manufacturer that elects to place
funds into escrow pursuant to this subsection shall annually
certify to the Attorney General that it is in compliance with
this subsection. The Attorney General may bring a civil action
on behalf of the State against any tobacco product manufacturer
that fails to place into escrow the funds required under this
section. Any tobacco product manufacturer that fails in any year
to place into escrow the funds required under this section
shall --
(A) be required within 15 days to place such funds into
escrow as shall bring it into compliance with this section. The
court, upon a finding of a violation of this subsection, may
impose a civil penalty to be paid to the general fund of the
state in an amount not to exceed 5 percent of the amount
improperly withheld from escrow per day of the violation and in a
total amount not to exceed 100 percent of the original amount
improperly withheld from escrow;
(B) in the case of a knowing violation, be required within
15 days to place such funds into escrow as shall bring it into
compliance with this section. The court, upon a finding of a
knowing violation of this subsection, may impose a civil penalty
to be paid to the general fund of the state in an amount not to
exceed 15 percent of the amount improperly withheld from escrow
per day of the violation and in a total amount not to exceed 300
percent of the original amount improperly withheld from escrow;
and
(C) in the case of a second knowing violation, be prohibited
from selling cigarettes to consumers within the State (whether
directly or through a distributor, retailer or similar
intermediary) for a period not to exceed 2 years.
Each failure to make an annual deposit required under this
section shall constitute a separate violation. The violator
shall also pay the State's costs and attorney's fees incurred
during a successful prosecution under this paragraph (3).
[2003 c 342 § 1; 1999 c 393 § 3.]
NOTES:
Captions not law -- Effective date -- 1999 c 393: See notes following RCW 70.157.005.
RCW 70.157.020
Requirements. (Contingent effective date.)
Any tobacco product manufacturer selling cigarettes to consumers
within the State (whether directly or through a distributor,
retailer or similar intermediary or intermediaries) after May 18,
1999, shall do one of the following:
(a) become a participating manufacturer (as that term is
defined in section II(jj) of the Master Settlement Agreement) and
generally perform its financial obligations under the Master
Settlement Agreement; or
(b)(1) place into a qualified escrow fund by April 15 of the
year following the year in question the following amounts (as
such amounts are adjusted for inflation) --
1999: $.0094241 per unit sold after May 18, 1999;
2000: $.0104712 per unit sold;
for each of 2001 and 2002: $.0136125 per unit sold;
for each of 2003 through 2006: $.0167539 per unit sold;
for each of 2007 and each year thereafter: $.0188482 per
unit sold.
(2) A tobacco product manufacturer that places funds into
escrow pursuant to paragraph (1) shall receive the interest or
other appreciation on such funds as earned. Such funds
themselves shall be released from escrow only under the following
circumstances --
(A) to pay a judgment or settlement on any released claim
brought against such tobacco product manufacturer by the State or
any releasing party located or residing in the State. Funds
shall be released from escrow under this subparagraph (i) in the
order in which they were placed into escrow and (ii) only to the
extent and at the time necessary to make payments required under
such judgment or settlement;
(B) to the extent that a tobacco product manufacturer
establishes that the amount it was required to place into escrow
in a particular year was greater than the State's allocable share
of the total payments that such manufacturer would have been
required to make in that year under the Master Settlement
Agreement (as determined pursuant to section IX(i)(2) of the
Master Settlement Agreement, and before any of the adjustments or
offsets described in section IX(i)(3) of that Agreement other
than the Inflation Adjustment) had it been a participating
manufacturer, the excess shall be released from escrow and revert
back to such tobacco product manufacturer; or
(C) to the extent not released from escrow under
subparagraphs (A) or (B), funds shall be released from escrow and
revert back to such tobacco product manufacturer twenty-five
years after the date on which they were placed into escrow.
(3) Each tobacco product manufacturer that elects to place
funds into escrow pursuant to this subsection shall annually
certify to the Attorney General that it is in compliance with
this subsection. The Attorney General may bring a civil action
on behalf of the State against any tobacco product manufacturer
that fails to place into escrow the funds required under this
section. Any tobacco product manufacturer that fails in any year
to place into escrow the funds required under this section
shall --
(A) be required within 15 days to place such funds into
escrow as shall bring it into compliance with this section. The
court, upon a finding of a violation of this subsection, may
impose a civil penalty to be paid to the general fund of the
state in an amount not to exceed 5 percent of the amount
improperly withheld from escrow per day of the violation and in a
total amount not to exceed 100 percent of the original amount
improperly withheld from escrow;
(B) in the case of a knowing violation, be required within
15 days to place such funds into escrow as shall bring it into
compliance with this section. The court, upon a finding of a
knowing violation of this subsection, may impose a civil penalty
to be paid to the general fund of the state in an amount not to
exceed 15 percent of the amount improperly withheld from escrow
per day of the violation and in a total amount not to exceed 300
percent of the original amount improperly withheld from escrow;
and
(C) in the case of a second knowing violation, be prohibited
from selling cigarettes to consumers within the State (whether
directly or through a distributor, retailer or similar
intermediary) for a period not to exceed 2 years.
Each failure to make an annual deposit required under this
section shall constitute a separate violation. The violator
shall also pay the State's costs and attorney's fees incurred
during a successful prosecution under this paragraph (3).
[1999 c 393 § 3.]
NOTES:
Captions not law -- Effective date -- 1999 c 393: See notes following RCW 70.157.005.