                                 CODE OF VIRGINIA

QUARTERLY ESCROW PAYMENTS BY CERTAIN NONPARTICIPATING MANUFACTURERS (§
3.2-4211)

A. Notwithstanding the provisions of &#xA7; 3.2-4201, on and after January 1,
2007, the Attorney General may require a nonparticipating manufacturer that is a
new market entrant or that has been designated by the Attorney General as an
elevated risk pursuant to subsection C of &#xA7; 3.2-4206.1 to make the escrow
payments required by &#xA7; 3.2-4201 on a quarterly, rather than annual basis.
For the purposes of this section, a &#8220;new market entrant&#8221; shall mean
a tobacco product manufacturer that first seeks certification pursuant to &#xA7;
3.2-4205 on or after January 1, 2007.

B. A nonparticipating manufacturer required to make quarterly payments pursuant
to this section shall place into a qualified escrow account the amounts required
pursuant to subdivision A 2 of &#xA7; 3.2-4201 by the fifteenth of the second
month following the end of each calendar quarter, except the payment for the
last quarter of a calendar year shall be made by April 15 of the year following
the year in question. Any adjustments for inflation to the amounts placed into a
qualified escrow pursuant to this section shall be reflected in the payments for
the last quarter of a calendar year.

C. A nonparticipating manufacturer required to make payments pursuant to this
section shall also provide the certification required by subsection C of &#xA7;
3.2-4201 on a quarterly basis. Any such nonparticipating manufacturer that fails
in any quarter to place into escrow the funds required under this section shall
be subject to the penalty provisions of &#xA7; 3.2-4201.

D. The Attorney General is authorized to create any forms and require any
nonparticipating manufacturer required to make quarterly payments pursuant to
this section to submit any additional information as is necessary to enable the
Attorney General to determine whether the nonparticipating manufacturer is in
compliance with the provisions of this section. At the time the nonparticipating
manufacturer is first certified by the Attorney General pursuant to &#xA7;
3.2-4205 or at any time that the nonparticipating manufacturer is designated by
the Attorney General as an elevated risk pursuant to subsection C of &#xA7;
3.2-4206.1, the Attorney General will notify the nonparticipating manufacturer
as to whether it will be required to make quarterly payments pursuant to this
section. The Attorney General may seek an injunction to compel compliance with
the reporting requirements. In any action brought pursuant to this subsection in
which the Commonwealth prevails, the Commonwealth shall be entitled to recover
the reasonable costs of investigation, costs of the action, and reasonable
attorney fees.

E. A nonparticipating manufacturer required to make quarterly payments pursuant
to this section who fails to properly do so shall be deemed to have failed to
make required payments pursuant to &#xA7; 3.2-4201 and shall be subject to all
enforcement actions available for a violation of &#xA7; 3.2-4201.

F. A nonparticipating manufacturer required to make quarterly payments pursuant
to this section who, to the satisfaction of the Attorney General, has complied
with the provisions of Article 1 (&#xA7; 3.2-4200 et seq.) of this chapter and
the provisions of this article for a period of at least three calendar years
may, upon request and upon the concurrence of the Attorney General, be permitted
to make annual payments pursuant to Article 1 (&#xA7; 3.2-4200 et seq.) of this
chapter and be relieved of further obligation to make quarterly payments.

HISTORY: 2006, c. 674, § 3.1-336.9:1; 2008, c. 860; 2011, c. 297.