(a) A tobacco product manufacturer that elects to comply with Alaska Stat. § 45.53.020 by placing money into escrow under that section shall annually, at the time of compliance, certify to the commissioner of revenue that it is in compliance with Alaska Stat. § 45.53.020.
Terms Used In Alaska Statutes 45.53.040
action: includes any matter or proceeding in a court, civil or criminal. See Alaska Statutes 01.10.060
Escrow: Money given to a third party to be held for payment until certain conditions are met.
state: means the State of Alaska unless applied to the different parts of the United States and in the latter case it includes the District of Columbia and the territories. See Alaska Statutes 01.10.060
(b) If the commissioner of revenue does not timely receive a certification of compliance from a tobacco product manufacturer as required by (a) of this section, the commissioner shall notify the attorney general. The attorney general shall require the manufacturer, within 15 days, to place into a qualified escrow fund the money necessary to bring the manufacturer into compliance with Alaska Stat. § 45.53.020. The attorney general may bring a civil action on behalf of the state against a tobacco product manufacturer that fails to place into a qualified escrow fund the money necessary to bring the manufacturer into compliance with Alaska Stat. § 45.53.020. The court, upon a finding of a tobacco product manufacturer’s
(1) violation of Alaska Stat. § 45.53.020, shall require the manufacturer, within 15 days, to place into a qualified escrow fund the money necessary to bring the manufacturer into compliance with Alaska Stat. § 45.53.020 and may impose a civil penalty, in an amount not to exceed five percent of the amount improperly withheld from escrow, for each day of the violation; the total amount of the penalty under this paragraph may not exceed 100 percent of the original amount improperly withheld from escrow;(2) knowing violation of Alaska Stat. § 45.53.020, shall require the manufacturer, within 15 days, to place into a qualified escrow fund the money necessary to bring the manufacturer into compliance with Alaska Stat. § 45.53.020 and may impose a civil penalty, in an amount not to exceed 15 percent of the amount improperly withheld from escrow, for each day of the violation; the total amount of the penalty under this paragraph may not exceed 300 percent of the original amount improperly withheld from escrow; and(3) second knowing violation of Alaska Stat. § 45.53.020, shall require the manufacturer, within 15 days, to place into a qualified escrow fund the money necessary to bring the manufacturer into compliance with Alaska Stat. § 45.53.020, and may impose a monetary penalty as described in (2) of this subsection, and shall prohibit the manufacturer from selling cigarettes to consumers within the state, whether directly or through a distributor, retailer, or similar intermediary, for a period not to exceed two years.(c) In addition to the civil penalties described in (b) of this section, the court may award the state full reasonable attorney fees and costs if the state prevails in a civil action brought under (b) of this section.(d) Each failure to make an annual placement of money into a qualified escrow fund as required by Alaska Stat. § 45.53.020 is a separate violation for the purposes of this section.
