§ 24-3-5.4-13.6 — Bonds required for certain newly qualified and certain nonparticipating manufacturers

Indiana § 24-3-5.4-13.6

• Jurisdiction: Indiana
• Art. 3: TOBACCO PRODUCTS
• Ch. 5.4: Master Settlement Agreement Protection Act

Text

6. (a) The attorney general may determine
that a nonparticipating manufacturer, including a newly qualified
nonparticipating manufacturer, poses an elevated risk for
noncompliance with this article if any of the following apply:
(1) The nonparticipating manufacturer or an affiliate of a
nonparticipating manufacturer has failed to make required
payments into a qualified escrow fund in any state during the
three (3) calendar years immediately preceding the date of the
determination unless:
(A) the nonparticipating manufacturer or affiliate:
(i) did not knowingly or recklessly fail to make the required
payments; and
(ii) makes the required payment not more than one hundred
eighty (180) days after receiving notice of the missed or
insufficient payment; or
(B) the failure to make the required payment is:
(i) the subject of a good faith dispute that is documented to
the satisfaction of the attorney general; and
(ii) cured not more than one hundred eighty (180) days after
entry of a final order that resolves the good faith dispute and
establishes the amount of the required escrow payment.
(2) A state has removed the nonparticipating manufacturer, an
affiliate of the nonparticipating manufacturer, or a brand family
of the nonparticipating manufacturer or an affiliate of the
nonparticipating manufacturer from the state's tobacco directory
for noncompliance with state law during the three (3) calendar
years immediately preceding the date of the determination.
(3) A state has:
(A) litigation pending; or
(B) an unsatisfied judgment;
against the nonparticipating manufacturer or an affiliate of the
nonparticipating manufacturer for escrow payments or penalties,
costs, or fees related to the nonparticipating manufacturer or
affiliate's noncompliance with the state's escrow laws.
(b) The attorney general shall require:
(1) a newly qualified nonparticipating manufacturer; or
(2) a nonparticipating manufacturer that:
(A) has filed a certification under section 13 of this chapter; and
(B) poses an elevated risk for noncompliance, as determined by
the attorney general under subsection (a);
to post a bond as described in subsection (c).
(c) A bond required under subsection (b) must be:
(1) posted by corporate surety located within the United States;
(2) in an amount equal to the greater of:
(A) fifty thousand dollars ($50,000); or
(B) the amount that the nonparticipating manufacturer is
required to place into a qualified escrow fund under IC 24-3-3-12(2) for the calendar year in which the bond is posted;
(3) written in favor of the state of Indiana; and
(4) for a nonparticipating manufacturer, conditioned on the
performance of the nonparticipating manufacturer, or an importer
that assumes joint and several liability with the nonparticipating
manufacturer under section 13.5 of this chapter, of all of
obligations and duties of the nonparticipating manufacturer under
this article during the calendar year in which the bond is posted
and the immediately succeeding calendar year.
(d) If the attorney general determines under subsection (a) that a
newly qualified nonparticipating manufacturer poses an elevated risk
of noncompliance, the attorney general may require the newly qualified
nonparticipating manufacturer to post a bond under subsection (c) for
at least the first three (3) years during which the newly qualified
nonparticipating manufacturers brand families are listed in a directory
under section 14 of this chapter.

Legislative History

As added by P.L.24-2010, SEC.5.