(a)(1)  A distributor may not affix, or cause to be affixed, stamps to individual packages of cigarettes to be sold or distributed in this state by a distributor licensed in this state if the attorney general has notified the distributor that the tobacco product manufacturer of those cigarettes has:

(i)  Failed to become a participating manufacturer as defined in §?23-71-3(1); and

(ii)  Failed to create a qualified escrow fund and make the required deposits in the escrow fund pursuant to §?23-71-3(2)(i) for any cigarettes the distributor sold or distributed for that tobacco product manufacturer in this state.

(2)  As used in this section, “tobacco product manufacturer” has the same meaning as that term is defined in §?23-71-2.

Terms Used In Rhode Island General Laws 44-20-28.1

  • Escrow: Money given to a third party to be held for payment until certain conditions are met.
  • Licensed: when used with reference to a manufacturer, importer, distributor or dealer, means only those persons who hold a valid and current license issued under § 44-20-2 for the type of business being engaged in. See Rhode Island General Laws 44-20-1
  • Manufacturer: means any person who manufactures, fabricates, assembles, processes, or labels a finished cigarette and/or other tobacco products;

    (8)  "Other tobacco products" (OTP) means any cigars (excluding Little Cigars, as defined in § 44-20. See Rhode Island General Laws 44-20-1

(b)  A distributor who violates this section is subject to suspension or revocation of its license pursuant to §?44-20-8.

History of Section.
P.L. 2002, ch. 59, § 1; P.L. 2002, ch. 65, art. 8, § 3; P.L. 2002, ch. 67, § 6.