27-70-15 - Prepayment of fee by certain nonsettling manufacturers.
§ 27-70-15. Prepayment of fee by certain nonsettling manufacturers.
(1) If cigarettes of a nonsettling manufacturer are not offered for sale or distribution in this state on September 1, 2009, the nonsettling manufacturer may not offer those cigarettes for sale or distribution in this state after that date unless the manufacturer first prepays the fee imposed by this chapter for sales of cigarettes that will occur in the first calendar month in which they are sold or distributed in this state.
(2) The amount a nonsettling manufacturer is required to prepay under this section is equal to the greater of:
(a) The rate prescribed by Section 27-70-7 in effect on that date multiplied by the number of cigarettes the commissioner reasonably projects that the nonsettling manufacturer will sell or distribute in this state during that calendar month; or
(b) Fifty Thousand Dollars ($50,000.00).
(3) The fee imposed by this section does not apply to cigarettes that are included in computing payments due to be made by a settling manufacturer under the tobacco settlement agreement.
(4) The commissioner may require a nonsettling manufacturer to provide any information reasonably necessary to determine the prepayment amount.
(5) The commissioner shall establish procedures to:
(a) Reimburse a nonsettling manufacturer if the actual sales or distributions in the first calendar month are less than the projected sales or distributions; and
(b) Require additional payments if the actual sales or distributions in the first calendar month are greater than the projected sales or distributions.
(6) A nonsettling manufacturer shall pay the fee imposed by this chapter in the manner provided by Section 27-70-11, beginning in the second calendar month in which the manufacturer offers the cigarettes for sale or distribution in this state.
Sources: Laws, 2009, 2nd Ex Sess, ch. 85, § 8, eff from and after July 1, 2009.