HB 1247 Summary

• Requires newly qualified nonparticipating tobacco manufacturers and those determined by the Attorney General to pose elevated noncompliance risk to post a surety bond of at least $50,000 or the amount required for qualified escrow fund deposits, whichever is greater.

• Requires nonparticipating manufacturers with principal places of business outside the United States to obtain annual declarations from importers assuming joint and several liability for escrow payments, penalties, costs, and fees.

• Establishes criteria for determining elevated noncompliance risk, including failure to make required escrow payments in any state within three years, removal from another state's tobacco directory, or pending litigation or unsatisfied judgments related to escrow violations.

• Prevents nonparticipating manufacturers posing elevated risk from being listed in Indiana's tobacco directory unless a surety bond is posted, with newly qualified manufacturers required to post bonds for at least the first three years.

• Effective July 1, 2010; amends IC 24-3-5.4 regarding tobacco product manufacturer regulations and escrow requirements.