SB 2259 Summary

• Requires tobacco product manufacturers whose cigarettes are sold in North Dakota to certify annually to the attorney general by April 30th that they are either participating manufacturers under the Master Settlement Agreement or comply with escrow and reporting requirements.

• Participating manufacturers must list brand families in certification and update the list 30 days before any changes; nonparticipating manufacturers must provide detailed information on brand families, units sold, escrow fund details, and financial institution information.

• Nonresident or foreign nonparticipating manufacturers must appoint and maintain a resident agent for service of process in North Dakota or be deemed to have appointed the secretary of state.

• Distributors must report quarterly to the attorney general on cigarettes sold by brand family, maintaining invoices for five years; the attorney general publishes a directory of compliant manufacturers and brand families.

• Selling cigarettes from manufacturers or brand families not listed in the directory is unlawful; violations result in civil penalties up to $5,000 or 500% of retail value, license revocation, seizure and forfeiture of cigarettes, and criminal penalties for knowing violations (class A misdemeanor).