{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/3.2-4206.1.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/3.2-4206.1.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/3.2-4206.1.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/3.2-4206.1.html"}],"law_id":84065,"edition_id":1,"section_id":84065,"structure_id":14890,"section_number":"3.2-4206.1","catch_line":"Bond requirement for newly qualified and elevated-risk nonparticipating manufacturers","history":"2008, c. 758, \u00a7 3.1-336.5:1; 2011, c. 297.","full_text":"A\n\nNotwithstanding any other provision of law, if a newly qualified nonparticipating manufacturer is to be listed in the Virginia Tobacco Directory (the Directory), or if the Attorney General reasonably determines that any nonparticipating manufacturer who has filed a certification pursuant to § 3.2-4205 poses an elevated risk for noncompliance with this article or with Article 1 (§ 3.2-4200 et seq.), neither such nonparticipating manufacturer nor any of its brand families shall be included in the Directory unless and until such nonparticipating manufacturer, or its United States importer that undertakes joint and several liability for the manufacturer’s performance in accordance with § 3.2-4208.1, has posted a bond in accordance with this section.B\n\nThe bond shall be posted by corporate surety located within the United States in an amount equal to the greater of $50,000 or the amount of escrow the manufacturer in either its current or predecessor form was required to deposit as a result of its highest calendar year’s sales in Virginia. The bond shall be written in favor of the Commonwealth of Virginia 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 in accordance with subsection A of § 3.2-4201, of all of its duties and obligations under this article and Article 1 (§ 3.2-4200 et seq.) during the year in which the certification is filed and the next succeeding calendar year.C\n\nA nonparticipating manufacturer may be deemed to pose an elevated risk for noncompliance with this article or Article 1 (\u00a7 3.2-4200 et seq.) if:1\n\nThe nonparticipating manufacturer or any affiliate thereof has underpaid an escrow obligation with respect to any state at any time during the calendar year or within the past three calendar years unless (i) the manufacturer did not make underpayment knowingly or recklessly and the manufacturer promptly cured the underpayment within 180 days of notice of it, or (ii) 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 180 days of entry of a final order establishing the amount of the required escrow payment;2\n\nAny state has removed the manufacturer or its brands or brand families or an affiliate or any of the affiliate’s brands or brand families from the state’s tobacco directory for noncompliance with the state law at any time during the calendar year or within the past three calendar years; or3\n\nAny state has litigation pending against, or an unsatisfied judgment against, the manufacturer or any affiliate thereof for escrow or for penalties, costs, or attorney fees related to noncompliance with state escrow laws.D\n\nAs used in this section “newly qualified nonparticipating manufacturer” means a nonparticipating manufacturer that has not previously been listed in the Virginia Tobacco Directory. Such manufacturers may be required to post a bond in accordance with this section for the first three years of their listing, or longer if they have been determined to pose an elevated risk for noncompliance.","order_by":null,"text":{"0":{"id":301247,"text":"Notwithstanding any other provision of law, if a newly qualified nonparticipating manufacturer is to be listed in the Virginia Tobacco Directory (the Directory), or if the Attorney General reasonably determines that any nonparticipating manufacturer who has filed a certification pursuant to § 3.2-4205 poses an elevated risk for noncompliance with this article or with Article 1 (§ 3.2-4200 et seq.), neither such nonparticipating manufacturer nor any of its brand families shall be included in the Directory unless and until such nonparticipating manufacturer, or its United States importer that undertakes joint and several liability for the manufacturer’s performance in accordance with § 3.2-4208.1, has posted a bond in accordance with this section.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":301248,"text":"The bond shall be posted by corporate surety located within the United States in an amount equal to the greater of $50,000 or the amount of escrow the manufacturer in either its current or predecessor form was required to deposit as a result of its highest calendar year’s sales in Virginia. The bond shall be written in favor of the Commonwealth of Virginia 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 in accordance with subsection A of § 3.2-4201, of all of its duties and obligations under this article and Article 1 (§ 3.2-4200 et seq.) during the year in which the certification is filed and the next succeeding calendar year.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":301249,"text":"A nonparticipating manufacturer may be deemed to pose an elevated risk for noncompliance with this article or Article 1 (\u00a7 3.2-4200 et seq.) if:","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"C1"},"3":{"id":301250,"text":"The nonparticipating manufacturer or any affiliate thereof has underpaid an escrow obligation with respect to any state at any time during the calendar year or within the past three calendar years unless (i) the manufacturer did not make underpayment knowingly or recklessly and the manufacturer promptly cured the underpayment within 180 days of notice of it, or (ii) 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 180 days of entry of a final order establishing the amount of the required escrow payment;","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"4":{"id":301251,"text":"Any state has removed the manufacturer or its brands or brand families or an affiliate or any of the affiliate’s brands or brand families from the state’s tobacco directory for noncompliance with the state law at any time during the calendar year or within the past three calendar years; or","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1","next_prefix":"C3"},"5":{"id":301252,"text":"Any state has litigation pending against, or an unsatisfied judgment against, the manufacturer or any affiliate thereof for escrow or for penalties, costs, or attorney fees related to noncompliance with state escrow laws.","type":"section","prefixes":["C","3"],"prefix":"3","entire_prefix":"C3","prefix_anchor":"C3","level":2,"prior_prefix":"C2","next_prefix":"D"},"6":{"id":301253,"text":"As used in this section “newly qualified nonparticipating manufacturer” means a nonparticipating manufacturer that has not previously been listed in the Virginia Tobacco Directory. Such manufacturers may be required to post a bond in accordance with this section for the first three years of their listing, or longer if they have been determined to pose an elevated risk for noncompliance.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C3"}},"ancestry":[{"id":14890,"edition_id":1,"name":"Enforcement of Requirements for Tobacco Product Manufacturers","identifier":"3","label":"article","depth":4,"order_by":1,"parent_id":13950,"metadata":{},"date_created":"2026-06-26 03:50:36","date_modified":"2026-06-26 03:50:36","permalink":{"id":196277,"object_type":"structure","relational_id":14890,"identifier":"3","token":"3.2\/III\/42\/3","url":"\/3.2\/III\/42\/3\/","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":80628,"structure_id":14890,"section_number":"3.2-4204","catch_line":"Definitions","url":"\/3.2-4204\/","token":"3.2\/III\/42\/3\/3.2-4204","metadata":false},{"id":56853,"structure_id":14890,"section_number":"3.2-4205","catch_line":"Certifications","url":"\/3.2-4205\/","token":"3.2\/III\/42\/3\/3.2-4205","metadata":false},{"id":76149,"structure_id":14890,"section_number":"3.2-4206","catch_line":"Directory of cigarettes approved for stamping and sale","url":"\/3.2-4206\/","token":"3.2\/III\/42\/3\/3.2-4206","metadata":false},{"id":70883,"structure_id":14890,"section_number":"3.2-4206.01","catch_line":"List of persons ineligible to be authorized holders","url":"\/3.2-4206.01\/","token":"3.2\/III\/42\/3\/3.2-4206.01","metadata":false},{"id":84065,"structure_id":14890,"section_number":"3.2-4206.1","catch_line":"Bond requirement for newly qualified and elevated-risk nonparticipating manufacturers","url":"\/3.2-4206.1\/","token":"3.2\/III\/42\/3\/3.2-4206.1","metadata":false},{"id":74369,"structure_id":14890,"section_number":"3.2-4207","catch_line":"Prohibition against stamping or sale or import of cigarettes not in the Directory","url":"\/3.2-4207\/","token":"3.2\/III\/42\/3\/3.2-4207","metadata":false},{"id":77004,"structure_id":14890,"section_number":"3.2-4208","catch_line":"Agent for service of process","url":"\/3.2-4208\/","token":"3.2\/III\/42\/3\/3.2-4208","metadata":false},{"id":80741,"structure_id":14890,"section_number":"3.2-4208.1","catch_line":"Joint and several 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Attorney General","url":"\/3.2-4216\/","token":"3.2\/III\/42\/3\/3.2-4216","metadata":false},{"id":68406,"structure_id":14890,"section_number":"3.2-4217","catch_line":"Disgorgement of profits for violations","url":"\/3.2-4217\/","token":"3.2\/III\/42\/3\/3.2-4217","metadata":false},{"id":82259,"structure_id":14890,"section_number":"3.2-4217.1","catch_line":"Presumption","url":"\/3.2-4217.1\/","token":"3.2\/III\/42\/3\/3.2-4217.1","metadata":false},{"id":61847,"structure_id":14890,"section_number":"3.2-4218","catch_line":"Conflicts","url":"\/3.2-4218\/","token":"3.2\/III\/42\/3\/3.2-4218","metadata":false},{"id":72681,"structure_id":14890,"section_number":"3.2-4219","catch_line":"Materially false statements","url":"\/3.2-4219\/","token":"3.2\/III\/42\/3\/3.2-4219","metadata":false}],"previous_section":{"id":70883,"structure_id":14890,"section_number":"3.2-4206.01","catch_line":"List of persons ineligible to be authorized holders","url":"\/3.2-4206.01\/","token":"3.2\/III\/42\/3\/3.2-4206.01","metadata":false},"next_section":{"id":74369,"structure_id":14890,"section_number":"3.2-4207","catch_line":"Prohibition against stamping or sale or import of cigarettes not in the Directory","url":"\/3.2-4207\/","token":"3.2\/III\/42\/3\/3.2-4207","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/3.2-4206.1\/","history_text":"

This law was first created in 2008. The record of its establishment is cataloged in chapter 758<\/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 1 time. 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. That modification is as follows: in 2011, chapter 297<\/a>.<\/p>","references":[{"id":67252,"section_number":"3.2-4211","catch_line":"Quarterly escrow payments by certain nonparticipating manufacturers","order_by":null,"url":"\/3.2-4211\/"}],"refers_to":[{"id":80296,"section_number":"3.2-4200","catch_line":"Definitions","order_by":null,"url":"\/3.2-4200\/"},{"id":55010,"section_number":"3.2-4201","catch_line":"Requirements on tobacco product manufacturers; escrow of funds; civil penalties for violations","order_by":null,"url":"\/3.2-4201\/"},{"id":56853,"section_number":"3.2-4205","catch_line":"Certifications","order_by":null,"url":"\/3.2-4205\/"},{"id":80741,"section_number":"3.2-4208.1","catch_line":"Joint and several liability","order_by":null,"url":"\/3.2-4208.1\/"}],"permalink":{"id":196295,"object_type":"law","relational_id":84065,"identifier":"3.2-4206.1","token":"3.2\/III\/42\/3\/3.2-4206.1","url":"\/3.2-4206.1\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/3.2-4206.1\/","token":"3.2\/III\/42\/3\/3.2-4206.1","dublin_core":{"Title":"Bond requirement for newly qualified and elevated-risk nonparticipating manufacturers","Type":"Text","Format":"text\/html","Identifier":"\u00a7 3.2-4206.1","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Notwithstanding any other provision of law<\/span>, if a newly qualified nonparticipating manufacturer<\/span> is to be listed in the Virginia Tobacco Directory (the Directory), or if the Attorney General<\/span> reasonably determines that any nonparticipating manufacturer who has filed a certification pursuant to § 3.2-4205<\/a> poses an elevated risk for noncompliance with this article or with Article 1 (§ 3.2-4200<\/a> et seq.), neither such nonparticipating manufacturer nor any of its brand families shall be included in the Directory unless and until such nonparticipating manufacturer, or its United States importer that undertakes joint and several liability for the manufacturer’s performance in accordance with § 3.2-4208.1<\/a>, has posted a bond<\/span> in accordance with this section. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The bond<\/span> shall be posted by corporate surety<\/span> located within the United States in an amount equal to the greater of $50,000 or the amount of escrow the manufacturer in either its current or predecessor form was required to deposit as a result of its highest calendar year’s sales in Virginia. The bond<\/span> shall be written in favor of the Commonwealth of Virginia 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 in accordance with subsection A of § 3.2-4201<\/a>, of all of its duties and obligations under this article and Article 1 (§ 3.2-4200<\/a> et seq.) during the year in which the certification is filed and the next succeeding calendar year. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> A nonparticipating manufacturer may be deemed to pose an elevated risk for noncompliance with this article or Article 1 (\u00a7 3.2-4200<\/a> et seq.) if: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The nonparticipating manufacturer or any affiliate thereof has underpaid an escrow obligation with respect to any state at any time during the calendar year or within the past three calendar years unless (i) the manufacturer did not make underpayment knowingly or recklessly and the manufacturer promptly cured the underpayment within 180 days of notice of it, or (ii) the underpayment or lack of payment is the subject of a good faith dispute as documented to the satisfaction of the Attorney General<\/span> and the underpayment is cured within 180 days of entry of a final order<\/span> establishing the amount of the required escrow payment; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Any state has removed the manufacturer or its brands or brand families or an affiliate or any of the affiliate’s brands or brand families from the state’s tobacco directory for noncompliance with the state law<\/span> at any time during the calendar year or within the past three calendar years; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Any state has litigation<\/span> pending against, or an unsatisfied judgment<\/span> against, the manufacturer or any affiliate thereof for escrow or for penalties, costs, or attorney fees related to noncompliance with state escrow laws<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> As used in this section “newly qualified nonparticipating manufacturer<\/span>” means a nonparticipating manufacturer that has not previously been listed in the Virginia Tobacco Directory. Such manufacturers may be required to post a bond<\/span> in accordance with this section for the first three years of their listing, or longer if they have been determined to pose an elevated risk for noncompliance. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nBOND REQUIREMENT FOR NEWLY QUALIFIED AND ELEVATED-RISK NONPARTICIPATING\nMANUFACTURERS (\u00a7 3.2-4206.1)\n\nA. Notwithstanding any other provision of law, if a newly qualified\nnonparticipating manufacturer is to be listed in the Virginia Tobacco Directory\n(the Directory), or if the Attorney General reasonably determines that any\nnonparticipating manufacturer who has filed a certification pursuant to §\n3.2-4205 poses an elevated risk for noncompliance with this article or with\nArticle 1 (§ 3.2-4200 et seq.), neither such nonparticipating manufacturer\nnor any of its brand families shall be included in the Directory unless and\nuntil such nonparticipating manufacturer, or its United States importer that\nundertakes joint and several liability for the manufacturer’s performance\nin accordance with § 3.2-4208.1, has posted a bond in accordance with this\nsection.\n\nB. The bond shall be posted by corporate surety located within the United States\nin an amount equal to the greater of $50,000 or the amount of escrow the\nmanufacturer in either its current or predecessor form was required to deposit\nas a result of its highest calendar year’s sales in Virginia. The bond\nshall be written in favor of the Commonwealth of Virginia and shall be\nconditioned on the performance by the nonparticipating manufacturer, or its\nUnited States importer that undertakes joint and several liability for the\nmanufacturer’s performance in accordance with subsection A of §\n3.2-4201, of all of its duties and obligations under this article and Article 1\n(§ 3.2-4200 et seq.) during the year in which the certification is filed\nand the next succeeding calendar year.\n\nC. A nonparticipating manufacturer may be deemed to pose an elevated risk for\nnoncompliance with this article or Article 1 (\u00a7 3.2-4200 et seq.) if:\n\n 1. The nonparticipating manufacturer or any affiliate thereof has underpaid an\n escrow obligation with respect to any state at any time during the calendar\n year or within the past three calendar years unless (i) the manufacturer did\n not make underpayment knowingly or recklessly and the manufacturer promptly\n cured the underpayment within 180 days of notice of it, or (ii) the\n underpayment or lack of payment is the subject of a good faith dispute as\n documented to the satisfaction of the Attorney General and the underpayment is\n cured within 180 days of entry of a final order establishing the amount of the\n required escrow payment;\n\n 2. Any state has removed the manufacturer or its brands or brand families or\n an affiliate or any of the affiliate’s brands or brand families from the\n state’s tobacco directory for noncompliance with the state law at any\n time during the calendar year or within the past three calendar years; or\n\n 3. Any state has litigation pending against, or an unsatisfied judgment\n against, the manufacturer or any affiliate thereof for escrow or for\n penalties, costs, or attorney fees related to noncompliance with state escrow\n laws.\n\nD. As used in this section “newly qualified nonparticipating\nmanufacturer” means a nonparticipating manufacturer that has not\npreviously been listed in the Virginia Tobacco Directory. Such manufacturers may\nbe required to post a bond in accordance with this section for the first three\nyears of their listing, or longer if they have been determined to pose an\nelevated risk for noncompliance.\n\nHISTORY: 2008, c. 758, \u00a7 3.1-336.5:1; 2011, c. 297.","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}}