Under current law, tobacco manufacturers which are not signatory to the tobacco master settlement agreement are required to deposit funds into escrow to secure payment of potential liability for tobacco related illnesses.
This bill would amend Sections 6-12-2, 6-12-3, 6-12A-2, 6-12A-3, and 6-12A-5, Code of Alabama 1975, relating to the tobacco escrow fund provisions and tobacco master settlement complementary legislation, so as to define an importer of tobacco products, to further define "units sold" to include cigarettes sold to certain consumers without payment of the cigarette excise tax and exclusion of certain cigarettes made in certain tax exempt transactions, to make the importer jointly and severally liable with the tobacco products manufacturer of cigarettes for escrow deposit obligations, to provide for seizure and forfeiture of cigarettes for failure to deposit funds into escrow, to require both the nonparticipating manufacturer and importer or importers of cigarettes to appoint agents for service of process, to require the nonparticipating manufacturer to hold a valid permit under 26 U.S.C.
ยง 5713, to provide for nonparticipating manufacturer bond requirements, and to further provide for disclosure of information.
Pending third reading on day 25 Favorable from Ways and Means General Fund
Read for the second time and placed on the calendar
Read for the first time and referred to the House of Representatives committee on Ways and Means General Fund
Engrossed
Motion to Read a Third Time and Pass adopted Roll Call 694
Figures motion to Adopt adopted Roll Call 693
Finance and Taxation General Fund first Substitute Offered
Third Reading Passed
Read for the second time and placed on the calendar with 1 substitute and
Read for the first time and referred to the Senate committee on Finance and Taxation General Fund
Source: Alabama Legislature