Indiana Directory of Cigarettes Approved For Stamping and Sale (Part I)
In 1998, the state of Indiana, along with 45 other states, the District of Columbia and five United States Territories entered into the Master Settlement Agreement (MSA) (Summary pdf) with the four largest tobacco manufacturers in the United States. Currently, more than 40 tobacco product manufacturers are signatories of the MSA. Under the MSA, manufacturers agree to certain restrictions on their marketing and advertising and the payment of monies into a national fund used to support the study of and programs to reduce youth tobacco product usage and educational programs to prevent diseases associated with the use of tobacco products.
Tobacco manufacturers who are not signatories of the MSA (Non-Participating Manufacturers or "NPMs") who wish to sell their products in Indiana must comply with the requirements of Indiana's Escrow Statute passed by the state legislature in 1999. Under the Escrow Statute, tobacco manufacturers must either become a party to the MSA and comply with its terms, or establish an escrow account and pay into it in accordance with I.C. 24-3-3-1 et seq. as a "non-participating manufacturer." A tobacco product manufacturer who fails to comply with these requirements, and sells its product in Indiana, is subject to litigation and civil penalties.
In April 2003, the Indiana Legislature passed complementary tobacco legislation entitled "House Enrolled Act 1788" ("HEA 1788") (pdf). Adopted as I.C. 24-3-5.4-1 et seq. and as amendments to other various tobacco-related statutes, this statute mandates that any tobacco manufacturer who wishes to sell cigarettes in Indiana must first certify the company's brand families and, in the case of NPMs, provide the Attorney General and Department of Revenue with additional information and documentation. Only then can the manufacturer's cigarettes be approved for sale and be listed in the Indiana Tobacco Directory published by the Attorney General: (1) for members of the MSA (Participating Manufacturers) and; (2) for non-members of the MSA (Non-Participating Manufacturers). Each list includes those "brand families" that can be legally sold in the state of Indiana.
It is unlawful for any person to stamp, sell, offer or possess for sale a package or container of cigarettes of a tobacco product manufacturer or brand family that is not listed in the directory. Those who violate this legislation may face criminal charges and a civil penalty of $5,000 per violation, or 500 percent of the retail value of the cigarettes sold, whichever is greater. In addition, people who are found in violation of HEA 1788 may have their licenses suspended or revoked and any product found in their possession will be deemed contraband and will be seized and destroyed. Finally, any profits gained in violation of this legislation can be ordered turned over to the state treasurer for deposit into the Indiana Tobacco Master Settlement Agreement Fund.
The "Tobacco Settlement Agreement" and other tobacco related documents and information are available on the Web site of the National Association of Attorneys General (NAAG): http://www.naag.org/issues/tobacco/msa_at_a_glance.php
For additional information, please contact the Office of the Indiana Attorney General, Tobacco Litigation Section at (317) 232-6240, or by email at Tobacco@atg.state.in.us.
|
