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26-57-1308. Bond.
Arkansas Code — all titles (historical 2020) · legal_authorities
26-57-1308. Bond.
(a) If a newly qualified nonparticipating manufacturer is to be listed in the directory maintained by the Attorney General under § 26-57-1303 or if the Attorney General determines that a nonparticipating manufacturer who has filed a certification under § 26-57-1303 poses an elevated risk for noncompliance with either § 26-57-1305 or §§ 26-57-260 and 26-57-261, the nonparticipating manufacturer and the nonparticipating manufacturer's brand families shall not be included in the directory unless the nonparticipating manufacturer or its United States importer that undertakes joint and several liability for the nonparticipating manufacturer's performance under § 26-57-1307 has posted a bond in accordance with this section.
(b)(1) The bond required under subsection (a) of this section shall be posted by corporate surety located within the United States in an amount equal to the greater of fifty thousand dollars ($50,000) or the amount of escrow the manufacturer in either its current form or predecessor form was required to deposit as a result of its previous two (2) calendar quarters sales in the state.
(2) The bond required under subsection (a) of this section shall be written in favor of the state and shall be conditioned on the performance by the nonparticipating manufacturer or its United States importer that undertakes joint and several liability for the manufacturer's performance under § 26-57-1307 of all of the nonparticipating manufacturer's duties and obligations under § 26-57-1305 or §§ 26-57-260 and 26-57-261.
(c) A nonparticipating manufacturer may be deemed to pose an elevated risk for noncompliance with this section if:
(1) The nonparticipating manufacturer or any affiliate thereof has underpaid an escrow obligation with respect to an
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-57-1308
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.
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Stable record: arkansas_code:legal_authorities:26-57-1308
Source file: gov.ar.code.title.26.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 556ed124a193dd0cd7fa1b0b7bd16699680e38a5803e3a298410d7cb43e131ff
Source location: content.xml paragraph 29061
Stored source content
26-57-1308. Bond.
(a) If a newly qualified nonparticipating manufacturer is to be listed in the directory maintained by the Attorney General under § 26-57-1303 or if the Attorney General determines that a nonparticipating manufacturer who has filed a certification under § 26-57-1303 poses an elevated risk for noncompliance with either § 26-57-1305 or §§ 26-57-260 and 26-57-261, the nonparticipating manufacturer and the nonparticipating manufacturer's brand families shall not be included in the directory unless the nonparticipating manufacturer or its United States importer that undertakes joint and several liability for the nonparticipating manufacturer's performance under § 26-57-1307 has posted a bond in accordance with this section.
(b)(1) The bond required under subsection (a) of this section shall be posted by corporate surety located within the United States in an amount equal to the greater of fifty thousand dollars ($50,000) or the amount of escrow the manufacturer in either its current form or predecessor form was required to deposit as a result of its previous two (2) calendar quarters sales in the state.
(2) The bond required under subsection (a) of this section shall be written in favor of the state and shall be conditioned on the performance by the nonparticipating manufacturer or its United States importer that undertakes joint and several liability for the manufacturer's performance under § 26-57-1307 of all of the nonparticipating manufacturer's duties and obligations under § 26-57-1305 or §§ 26-57-260 and 26-57-261.
(c) A nonparticipating manufacturer may be deemed to pose an elevated risk for noncompliance with this section if:
(1) The nonparticipating manufacturer or any affiliate thereof has underpaid an escrow obligation with respect to any state during the calendar year or within the past three (3) calendar years unless:
(A) The manufacturer did not knowingly or recklessly make an underpayment, and the manufacturer promptly cured the underpayment within one hundred eighty (180) days of receiving the notice of the underpayment; or
(B) The underpayment or lack of payment is the subject of a good faith dispute as documented to the satisfaction of the Attorney General, and the underpayment is cured within one hundred eighty (180) days of entry of a final order establishing the amount of the required escrow payment;
(2) A state has removed the manufacturer, the manufacturer's brands or brand families, an affiliate of the manufacturer, or any of the affiliate's brands or brand families from the state's tobacco directory for noncompliance with the state's law during the calendar year or within the past three (3) calendar years; or
(3) A state has litigation pending against, or an unsatisfied judgment against, the manufacturer or any affiliate of the manufacturer for escrow, penalties, costs, or attorney's fees related to noncompliance with state escrow laws.
(d) A newly qualified nonparticipating manufacturer may be required to post a bond under this section for the first three (3) years of the newly qualified nonparticipating manufacturer's listing or longer if the newly qualified nonparticipating manufacturer has been deemed to pose an elevated risk for noncompliance.
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Arkansas Code — all titles (historical 2020) · legal_authorities
26-57-1303. Certifications — Directory — Tax stamps.
(a)Certification.
(1) No later than April 30 each year, every tobacco product manufacturer whose cigarettes are sold in the state, whether directly or through a wholesaler, retailer, or similar intermediary or intermediaries, shall execute and deliver on a form prescribed by the Attorney General a certification to the Attorney General certifying under penalty of perjury that as of the date of the certification the tobacco product manufacturer either:
(A) Is a participating manufacturer; or
(B) Is in full compliance with §§ 26-57-260 and 26-57-261, including all quarterly installment payments that may be required under § 26-57-1305(e).
(2)(A) A participating manufacturer shall include in its certification a list of its brand families.
(B) The participating manufacturer shall update the list required under subdivision (a)(2)(A) of this section thirty (30) calendar days before an addition to or modification of the participating manufacturer's brand families by executing and delivering a supplemental certification to the Attorney General.
(3) A nonparticipating manufacturer shall include in its certification:
(A) An electronic mail address and fax number to which notices from the Attorney General may be sent and a list of all of its brand families and the number of units sold for each brand family that were sold in the state during the preceding calendar year; and
(B) A list of the nonparticipating manufacturer's brand families that have been sold in the state at any time during the current calendar year:
(i) Indicating by an asterisk any brand family sold in the state during the preceding calendar year but that is no longer being sold in the state as of the date of the certification; and
(ii) Identif
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-57-1303
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 26-57-1303. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
26-57-1305. Reporting of information — Escrow installments.
(a)Reporting by Wholesalers.
(1) Not later than twenty (20) calendar days after the end of each calendar quarter, each wholesaler shall submit such information as the Attorney General requires to facilitate compliance with this subchapter, including, but not limited to, a list by brand family of the total number of cigarettes or in the case of “roll-your-own”, the equivalent stick count for which the wholesaler affixed tax stamps during the previous calendar quarter or otherwise paid the tax due for the cigarettes.
(2) The wholesaler shall maintain and make available to the Attorney General all invoices and documentation of sales of all nonparticipating manufacturer cigarettes and any other information relied upon in reporting to the Attorney General for a period of five (5) years.
(b)Disclosure of Information.
(1) The Arkansas Tobacco Control Board and the Department of Finance and Administration may disclose to the Attorney General any information in their possession as requested by the Attorney General for purposes of determining compliance with and enforcing the provisions of this subchapter.
(2) The board, the department, and the Attorney General may share with each other any information received under this subchapter and may share the information with other federal, state, or local agencies only for purposes of enforcement of this subchapter, §§ 26-57-260 and 26-57-261, or corresponding laws of other states.
(c) Verification of Qualified Escrow Fund. The Attorney General may require at any time from the nonparticipating manufacturer proof from the financial institution in which the nonparticipating manufacturer has established a qualified escrow fund for the purpose of compliance with §§ 26-5
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-57-1305
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 26-57-1305. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
26-57-260. Definitions.
As used in this section and § 26-57-261:
(1) “Adjusted for inflation” means increased in accordance with the formula for inflation adjustment set forth in Exhibit C to the Master Settlement Agreement;
(2)(A) “Affiliate” means a person who directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or control with another person.
(B) Solely for the purposes of the definition of “affiliate”, the term:
(i) “Owns”, “is owned”, and “ownership” mean ownership of an equity interest, or the equivalent thereof, of ten percent (10%) or more; and
(ii) “Person” means an individual, partnership, committee, association, corporation, or any other organization or group of persons;
(3) “Allocable share” means the allocable share as that term is defined in the Master Settlement Agreement;
(4)(A) “Cigarette” means any product that contains nicotine, is intended to be burned or heated under ordinary conditions of use, and consists of or contains:
(i) Any roll of tobacco wrapped in paper or in any substance not containing tobacco;
(ii) Tobacco in any form that is functional in the product which, because of its appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to be offered to or purchased by consumers as a cigarette; or
(iii) Any roll of tobacco wrapped in any substance containing tobacco which, because of its appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to be offered to or purchased by consumers as a cigarette described in subdivision (4)(A)(i) of this section.
(B) “Cigarette” includes “roll-your-own”, that is, any tobacco which, because of its appearance, type, packaging, or labeling is suitable for use and likely to
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-57-260
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 26-57-260. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
26-57-261. Requirements.
(a) Any tobacco product manufacturer selling cigarettes to consumers within the state, whether directly or through a distributor, retailer, or similar intermediary or intermediaries, after July 30, 1999, shall do one (1) of the following:
(1) 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
(2)(A) Place into a qualified escrow fund by April 15 of the year following the year in question the following amounts, as the amounts are adjusted for inflation:
(i) 1999: $.0094241 per unit sold after July 30, 1999;
(ii) 2000: $.0104712 per unit sold;
(iii) For each of 2001 and 2002: $.0136125 per unit sold;
(iv) For each of 2003 through 2006: $.0167539 per unit sold; and
(v) For each of 2007 and each year thereafter: $.0188482 per unit sold.
(B) A tobacco product manufacturer that places funds into escrow pursuant to subdivision (a)(2)(A) of this section shall receive the interest or other appreciation on the funds as earned. The funds themselves shall be released from escrow only under the following circumstances:
(i) To pay a judgment or settlement on any released claim brought against the tobacco product manufacturer by the state or any releasing party located or residing in the state. Funds shall be released from escrow under this subdivision (a)(2)(B)(i):
(a) In the order in which they were placed into escrow; and
(b) Only to the extent and at the time necessary to make payments required under the judgment or settlement;
(ii) 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 st
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-57-261
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 26-57-261. This identifies an authority to review, not proof of applicability.