CHAPTER 846
An Act to amend and reenact §3.2-4207 of the Code of
Virginia, relating to the Master Settlement Agreement; regulation of cigarette
manufacturers.
[S 1059]
Approved April 6, 2011
Be it enacted by the General Assembly of Virginia:
1. That §3.2-4207 of the Code of Virginia is amended and
reenacted as follows:
§3.2-4207. Prohibition against stamping or sale or import of
cigarettes not in the Directory.
A. It shall be unlawful for any person (i) to affix a
stamp to a package or other container of cigarettes of a tobacco product
manufacturer or brand family not included in the Directory, or (ii) to sell,
offer or possess for sale in the Commonwealth, ship or otherwise distribute
into or within the Commonwealth, or import for personal consumption into the
Commonwealth, cigarettes of a tobacco product manufacturer or brand family not
included in the Directory. For purposes of this article a person shall be
deemed to have received notice that cigarettes of a tobacco product
manufacturer or brand family are not included in the Directory at the time the
Attorney General's website fails to list any such cigarettes in the Directory
or at the time any such cigarettes are removed from the Directory. A person
purchasing cigarettes for resale shall not be in violation of this section (i
a) if at the time of such purchase the manufacturer and brand families
of the cigarettes are included in the Directory and the cigarettes are
otherwise lawfully stamped and sold within 14 45 days of the date
such manufacturer and brand families were removed from the Directory or (ii
b) if, in the case of a retailer, the cigarettes are sold or delivered
to consumers within 14 45 days after receipt of delivery of such
cigarettes from a wholesaler, which cigarettes otherwise have been lawfully
purchased from the same wholesaler. A tobacco product manufacturer that is
otherwise in compliance with the requirements of this chapter may, for reasons
satisfactory to the Attorney General, request removal of itself, or cigarettes
in a brand family that it manufactures or has manufactured, from the Directory.
A person purchasing cigarettes for resale shall not be in violation of this
section if (1) at the time of such purchase, the manufacturer and brand families
of the cigarettes are included in the Directory and the cigarettes are
otherwise lawfully stamped and sold within 60 days of the date such cigarettes
were removed from the Directory or (2) in the case of a retailer, the
cigarettes are sold or delivered to consumers within 60 days after receipt of
delivery of such cigarettes from a wholesaler and the cigarettes have been
lawfully purchased from the same wholesaler. The updates to the Directory
required by subsection B of §3.2-4206 shall contain a notation indicating such
voluntary removal. For purposes of this subsection, "reasons satisfactory to
the Attorney General" shall include cessation of the business operations of the
tobacco products manufacturer and voluntary discontinuance of a product line or
brand family.
B. Any manufacturer, wholesaler or retail dealer
selling cigarettes for resale of a manufacturer or brand family that has been
removed from the Directory shall notify the purchaser of such cigarettes of
that fact at the time of delivery of such cigarettes. Unless otherwise provided
by contract or purchase agreement, a purchaser shall be entitled to
receive a refund from the such manufacturer, wholesaler or
retail dealer from whom the cigarettes were purchased of the purchase price of
any cigarettes that are the product of a manufacturer or brand family removed
from the Directory. Any failure of such manufacturer, wholesaler or retail
dealer to provide the purchaser with the refund required under this subsection
shall (i) create a cause of action against such manufacturer, wholesaler or
retail dealer in favor of the purchaser and (ii) subject such manufacturer,
wholesaler or retail dealer to a civil penalty of $500 for each violation,
which shall be assessed by the Commissioner and payable to the Literary Fund.
C. The Commissioner shall, by regulation or guidelines,
provide for the refund of the purchase price of tax stamps that have been
lawfully affixed to cigarettes that may not be sold pursuant to the provisions
of this section.
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