{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/3.2-4201.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/3.2-4201.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/3.2-4201.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/3.2-4201.html"}],"law_id":55010,"edition_id":1,"section_id":55010,"structure_id":13951,"section_number":"3.2-4201","catch_line":"Requirements on tobacco product manufacturers; escrow of funds; civil penalties for violations","history":"1999, cc. 714, 754, \u00a7 3.1-336.2; 2004, c. 1029; 2005, cc. 4, 870; 2008, c. 860.","full_text":"A\n\nAny tobacco product manufacturer selling cigarettes to consumers within the Commonwealth, whether directly or through a distributor, retailer or similar intermediary or intermediaries, after July 1, 1999, shall do one of the following:1\n\nBecome 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; or2\n\nPlace 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):\n\t\t\t\tYear\n\t\t\t\tAmount per unit sold in such year (except for 1999, the amount per unit sold after July 1, 1999)\n\t\t\t\t1999\n\t\t\t\t$.0094241\n\t\t\t\t2000\n\t\t\t\t$.0104712\n\t\t\t\teach of 2001 and 2002\n\t\t\t\t$.0136125\n\t\t\t\teach of 2003 through 2006\n\t\t\t\t$.0167539\n\t\t\t\teach of 2007 and each year thereafter\n\t\t\t\t$.0188482B\n\nA tobacco product manufacturer that places funds into escrow pursuant to subdivision A 2 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:1\n\nTo pay a judgment or settlement on any released claim brought against such tobacco product manufacturer by the Commonwealth or any releasing party located or residing in the Commonwealth. Funds shall be released from escrow under this subdivision (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;2\n\nTo the extent that a tobacco product manufacturer establishes that the amount it was required to place into escrow on account of units sold in this Commonwealth 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; or3\n\nTo the extent not released from escrow under subdivisions 1 or 2, funds shall be released from escrow and revert back to such tobacco product manufacturer 25 years after the date on which they were placed into escrow.C\n\nEach tobacco product manufacturer that elects to place funds into escrow pursuant to subdivision A 2 shall annually certify to the Attorney General that it is in compliance with that subdivision. The Attorney General may bring a civil action on behalf of the Commonwealth 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:1\n\nBe 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 in an amount not to exceed five 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;2\n\nIn 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 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; and3\n\nIn the case of a second knowing violation, be prohibited from selling cigarettes to consumers within the Commonwealth (whether directly or through a distributor, retailer or similar intermediary) for a period not to exceed two years.\n\t\t\t\tEach failure to make an annual deposit required under this section shall constitute a separate violation.","order_by":null,"text":{"0":{"id":201783,"text":"Any tobacco product manufacturer selling cigarettes to consumers within the Commonwealth, whether directly or through a distributor, retailer or similar intermediary or intermediaries, after July 1, 1999, shall do one of the following:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":201784,"text":"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","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":201785,"text":"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):\n\t\t\t\tYear\n\t\t\t\tAmount per unit sold in such year (except for 1999, the amount per unit sold after July 1, 1999)\n\t\t\t\t1999\n\t\t\t\t$.0094241\n\t\t\t\t2000\n\t\t\t\t$.0104712\n\t\t\t\teach of 2001 and 2002\n\t\t\t\t$.0136125\n\t\t\t\teach of 2003 through 2006\n\t\t\t\t$.0167539\n\t\t\t\teach of 2007 and each year thereafter\n\t\t\t\t$.0188482","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"B"},"3":{"id":201786,"text":"A tobacco product manufacturer that places funds into escrow pursuant to subdivision A 2 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:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A2","next_prefix":"B1"},"4":{"id":201787,"text":"To pay a judgment or settlement on any released claim brought against such tobacco product manufacturer by the Commonwealth or any releasing party located or residing in the Commonwealth. Funds shall be released from escrow under this subdivision (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;","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"5":{"id":201788,"text":"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 this Commonwealth 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","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"6":{"id":201789,"text":"To the extent not released from escrow under subdivisions 1 or 2, funds shall be released from escrow and revert back to such tobacco product manufacturer 25 years after the date on which they were placed into escrow.","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"C"},"7":{"id":201790,"text":"Each tobacco product manufacturer that elects to place funds into escrow pursuant to subdivision A 2 shall annually certify to the Attorney General that it is in compliance with that subdivision. The Attorney General may bring a civil action on behalf of the Commonwealth 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:","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B3","next_prefix":"C1"},"8":{"id":201791,"text":"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 in an amount not to exceed five 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;","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"9":{"id":201792,"text":"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 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","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1","next_prefix":"C3"},"10":{"id":201793,"text":"In the case of a second knowing violation, be prohibited from selling cigarettes to consumers within the Commonwealth (whether directly or through a distributor, retailer or similar intermediary) for a period not to exceed two years.\n\t\t\t\tEach failure to make an annual deposit required under this section shall constitute a separate violation.","type":"section","prefixes":["C","3"],"prefix":"3","entire_prefix":"C3","prefix_anchor":"C3","level":2,"prior_prefix":"C2"}},"ancestry":[{"id":13951,"edition_id":1,"name":"Requirements for Tobacco Product Manufacturers","identifier":"1","label":"article","depth":4,"order_by":1,"parent_id":13950,"metadata":{},"date_created":"2026-06-26 03:46:24","date_modified":"2026-06-26 03:46:24","permalink":{"id":196257,"object_type":"structure","relational_id":13951,"identifier":"1","token":"3.2\/III\/42\/1","url":"\/3.2\/III\/42\/1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13950,"edition_id":1,"name":"Implementation of Tobacco Master Settlement Agreement","identifier":"42","label":"chapter","depth":3,"order_by":1,"parent_id":13102,"metadata":{},"date_created":"2026-06-26 03:46:24","date_modified":"2026-06-26 03:46:24","permalink":{"id":196255,"object_type":"structure","relational_id":13950,"identifier":"42","token":"3.2\/III\/42","url":"\/3.2\/III\/42\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13102,"edition_id":1,"name":"Production and Sale of Agricultural Products","identifier":"III","label":"subtitle","depth":2,"order_by":1,"parent_id":12793,"metadata":{},"date_created":"2026-06-26 03:44:17","date_modified":"2026-06-26 03:44:17","permalink":{"id":195443,"object_type":"structure","relational_id":13102,"identifier":"III","token":"3.2\/III","url":"\/3.2\/III\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12793,"edition_id":1,"name":"Agriculture, Animal Care, and Food","identifier":"3.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:53","date_modified":"2026-06-26 03:43:53","permalink":{"id":193939,"object_type":"structure","relational_id":12793,"identifier":"3.2","token":"3.2","url":"\/3.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":80296,"structure_id":13951,"section_number":"3.2-4200","catch_line":"Definitions","url":"\/3.2-4200\/","token":"3.2\/III\/42\/1\/3.2-4200","metadata":false},{"id":55010,"structure_id":13951,"section_number":"3.2-4201","catch_line":"Requirements on tobacco product manufacturers; escrow of funds; civil penalties for violations","url":"\/3.2-4201\/","token":"3.2\/III\/42\/1\/3.2-4201","metadata":false}],"previous_section":{"id":80296,"structure_id":13951,"section_number":"3.2-4200","catch_line":"Definitions","url":"\/3.2-4200\/","token":"3.2\/III\/42\/1\/3.2-4200","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/3.2-4201\/","history_text":"

This law was first created in 1999. The record of its establishment is cataloged in chapters 714<\/a> and 754<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 3 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 2004, chapter 1029<\/a>; in 2005, chapters 4<\/a> and 870<\/a>; in 2008, chapter 860<\/a>.<\/p>","references":[{"id":80296,"section_number":"3.2-4200","catch_line":"Definitions","order_by":null,"url":"\/3.2-4200\/"},{"id":55303,"section_number":"3.2-4202","catch_line":"Assignment to the Commonwealth of rights to tobacco manufacturer escrow funds; contribution to the Commonwealth","order_by":null,"url":"\/3.2-4202\/"},{"id":65112,"section_number":"3.2-4203","catch_line":"Withdrawal of escrow funds assigned and contributed to the Commonwealth","order_by":null,"url":"\/3.2-4203\/"},{"id":56853,"section_number":"3.2-4205","catch_line":"Certifications","order_by":null,"url":"\/3.2-4205\/"},{"id":84065,"section_number":"3.2-4206.1","catch_line":"Bond requirement for newly qualified and elevated-risk nonparticipating manufacturers","order_by":null,"url":"\/3.2-4206.1\/"},{"id":80741,"section_number":"3.2-4208.1","catch_line":"Joint and several liability","order_by":null,"url":"\/3.2-4208.1\/"},{"id":67252,"section_number":"3.2-4211","catch_line":"Quarterly escrow payments by certain nonparticipating manufacturers","order_by":null,"url":"\/3.2-4211\/"},{"id":82259,"section_number":"3.2-4217.1","catch_line":"Presumption","order_by":null,"url":"\/3.2-4217.1\/"},{"id":55618,"section_number":"58.1-1034","catch_line":"Records to be kept; filing with Department","order_by":null,"url":"\/58.1-1034\/"},{"id":57817,"section_number":"58.1-3","catch_line":"Secrecy of information; penalties","order_by":null,"url":"\/58.1-3\/"},{"id":77752,"section_number":"58.1-3.2","catch_line":"Attorney General's and Tax Commissioner's authority to request and share information","order_by":null,"url":"\/58.1-3.2\/"}],"refers_to":false,"permalink":{"id":196263,"object_type":"law","relational_id":55010,"identifier":"3.2-4201","token":"3.2\/III\/42\/1\/3.2-4201","url":"\/3.2-4201\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/3.2-4201\/","token":"3.2\/III\/42\/1\/3.2-4201","dublin_core":{"Title":"Requirements on tobacco product manufacturers; escrow of funds; civil penalties for violations","Type":"Text","Format":"text\/html","Identifier":"\u00a7 3.2-4201","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Any tobacco product manufacturer<\/span> selling cigarettes<\/span> to consumers within the Commonwealth, whether directly or through a distributor, retailer or similar intermediary or intermediaries, after July 1, 1999, shall do one of the following: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Become a participating manufacturer (as that term is defined in section II (jj) of the Master Settlement Agreement<\/span>) and generally perform its financial obligations under the Master Settlement Agreement<\/span>; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Place into a qualified escrow fund<\/span> by April 15 of the year following the year in question the following amounts (as such amounts are adjusted for inflation<\/span>):\n\t\t\t\tYear\n\t\t\t\tAmount per unit sold in such year (except for 1999, the amount per unit sold after July 1, 1999)\n\t\t\t\t1999\n\t\t\t\t$.0094241\n\t\t\t\t2000\n\t\t\t\t$.0104712\n\t\t\t\teach of 2001 and 2002\n\t\t\t\t$.0136125\n\t\t\t\teach of 2003 through 2006\n\t\t\t\t$.0167539\n\t\t\t\teach of 2007 and each year thereafter\n\t\t\t\t$.0188482 <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> A tobacco product manufacturer<\/span> that places funds into escrow pursuant to subdivision A 2 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: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> To pay a judgment<\/span> or settlement on any released claim brought against such tobacco product manufacturer<\/span> by the Commonwealth or any releasing party<\/span> located or residing in the Commonwealth. Funds shall be released from escrow under this subdivision (i) in the order<\/span> 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<\/span> or settlement; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> To the extent that a tobacco product manufacturer<\/span> establishes that the amount it was required to place into escrow on account of units sold<\/span> in this Commonwealth in a particular year was greater than the Master Settlement Agreement<\/span> 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<\/span> had it been a participating manufacturer, the excess shall be released from escrow and revert back to such tobacco product manufacturer<\/span>; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> To the extent not released from escrow under subdivisions 1 or 2, funds shall be released from escrow and revert back to such tobacco product manufacturer<\/span> 25 years after the date on which they were placed into escrow. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Each tobacco product manufacturer<\/span> that elects to place funds into escrow pursuant to subdivision A 2 shall annually certify to the Attorney General<\/span> that it is in compliance with that subdivision. The Attorney General<\/span> may bring a civil action<\/span> on behalf of the Commonwealth against any tobacco product manufacturer<\/span> that fails to place into escrow the funds required under this section. Any tobacco product manufacturer<\/span> that fails in any year to place into escrow the funds required under this section shall: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Be required within 15 days to place such funds into escrow as shall bring it into compliance with this section. The court<\/span>, upon a finding<\/span> of a violation of this subsection, may impose a civil penalty<\/span> in an amount not to exceed five 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; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> 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<\/span>, upon a finding<\/span> of a knowing violation of this subsection, may impose a civil penalty<\/span> 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 <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> In the case of a second knowing violation, be prohibited from selling cigarettes<\/span> to consumers within the Commonwealth (whether directly or through a distributor, retailer or similar intermediary) for a period not to exceed two years.\n\t\t\t\tEach failure to make an annual deposit required under this section shall constitute a separate violation. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nREQUIREMENTS ON TOBACCO PRODUCT MANUFACTURERS; ESCROW OF FUNDS; CIVIL PENALTIES\nFOR VIOLATIONS (\u00a7 3.2-4201)\n\nA. Any tobacco product manufacturer selling cigarettes to consumers within the\nCommonwealth, whether directly or through a distributor, retailer or similar\nintermediary or intermediaries, after July 1, 1999, shall do one of the\nfollowing:\n\n 1. Become a participating manufacturer (as that term is defined in section II\n (jj) of the Master Settlement Agreement) and generally perform its financial\n obligations under the Master Settlement Agreement; or\n\n 2. Place into a qualified escrow fund by April 15 of the year following the\n year in question the following amounts (as such amounts are adjusted for\n inflation):\n \t\t\t\tYear\n \t\t\t\tAmount per unit sold in such year (except for 1999, the amount per unit\n sold after July 1, 1999)\n \t\t\t\t1999\n \t\t\t\t$.0094241\n \t\t\t\t2000\n \t\t\t\t$.0104712\n \t\t\t\teach of 2001 and 2002\n \t\t\t\t$.0136125\n \t\t\t\teach of 2003 through 2006\n \t\t\t\t$.0167539\n \t\t\t\teach of 2007 and each year thereafter\n \t\t\t\t$.0188482\n\nB. A tobacco product manufacturer that places funds into escrow pursuant to\nsubdivision A 2 shall receive the interest or other appreciation on such funds\nas earned. Such funds themselves shall be released from escrow only under the\nfollowing circumstances:\n\n 1. To pay a judgment or settlement on any released claim brought against such\n tobacco product manufacturer by the Commonwealth or any releasing party\n located or residing in the Commonwealth. Funds shall be released from escrow\n under this subdivision (i) in the order in which they were placed into escrow\n and (ii) only to the extent and at the time necessary to make payments\n required under such judgment or settlement;\n\n 2. To the extent that a tobacco product manufacturer establishes that the\n amount it was required to place into escrow on account of units sold in this\n Commonwealth in a particular year was greater than the Master Settlement\n Agreement payments, as determined pursuant to section IX(i) of that Agreement,\n including after final determination of all adjustments, that such manufacturer\n would have been required to make on account of such units sold had it been a\n participating manufacturer, the excess shall be released from escrow and\n revert back to such tobacco product manufacturer; or\n\n 3. To the extent not released from escrow under subdivisions 1 or 2, funds\n shall be released from escrow and revert back to such tobacco product\n manufacturer 25 years after the date on which they were placed into escrow.\n\nC. Each tobacco product manufacturer that elects to place funds into escrow\npursuant to subdivision A 2 shall annually certify to the Attorney General that\nit is in compliance with that subdivision. The Attorney General may bring a\ncivil action on behalf of the Commonwealth against any tobacco product\nmanufacturer that fails to place into escrow the funds required under this\nsection. Any tobacco product manufacturer that fails in any year to place into\nescrow the funds required under this section shall:\n\n 1. Be required within 15 days to place such funds into escrow as shall bring\n it into compliance with this section. The court, upon a finding of a violation\n of this subsection, may impose a civil penalty in an amount not to exceed five\n percent of the amount improperly withheld from escrow per day of the violation\n and in a total amount not to exceed 100 percent of the original amount\n improperly withheld from escrow;\n\n 2. In the case of a knowing violation, be required within 15 days to place\n such funds into escrow as shall bring it into compliance with this section.\n The court, upon a finding of a knowing violation of this subsection, may\n impose a civil penalty in an amount not to exceed 15 percent of the amount\n improperly withheld from escrow per day of the violation and in a total amount\n not to exceed 300 percent of the original amount improperly withheld from\n escrow; and\n\n 3. In the case of a second knowing violation, be prohibited from selling\n cigarettes to consumers within the Commonwealth (whether directly or through a\n distributor, retailer or similar intermediary) for a period not to exceed two\n years.\n \t\t\t\tEach failure to make an annual deposit required under this section shall\n constitute a separate violation.\n\nHISTORY: 1999, cc. 714, 754, \u00a7 3.1-336.2; 2004, c. 1029; 2005, cc. 4, 870;\n2008, c. 860.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}