26- 239 C.M.R. ch. 200, § 2

Current through 2025-03, January 15, 2025

Section 239-200-2 - QUARTERLY CERTIFICATIONS AND ESCROW DEPOSITS

A. Quarterly Certifications and Escrow Deposits. To promote compliance with22 M.R.S.A. §1580-Get seq., the Attorney General may require nonparticipating manufacturers quarterly to certify their compliance with the Tobacco Act. The Attorney General may also require nonparticipating manufacturers to make the escrow payments required by22 M.R.S.A. §1580-I(2)in quarterly installments during the year in which the sales covered by such payments are made. This rule applies to nonparticipating manufacturers who meet any of the following criteria:

1. No Previous Escrow Deposit. Nonparticipating manufacturers that have not previously established and funded a qualified escrow fund in Maine;

2. No Escrow Deposit for More Than One Year.Nonparticipating manufacturers that have not made any escrow deposits for more than one (1) year in Maine;

3.Untimely or Incomplete Deposits. Nonparticipating manufacturers that have failed to make a timely and complete escrow deposit for any prior calendar year;

4.Outstanding Judgments. Nonparticipating manufacturers that have failed to pay any judgment, including any civil penalty;

5. Large Sales Volume. Nonparticipating manufacturers that have more than 1,000,000 of their cigarettes sold in Maine during a quarter; and

6. Other Reasonable Cause. In addition to the reasons specified above, the Attorney General may require quarterly escrow deposits from a nonparticipating manufacturer if the Attorney General has reasonable cause to believe the nonparticipating manufacturer may not make its full required escrow deposit by April 15 of the year following the year in which the cigarettes sales were made.

B. Notice to Nonparticipating Manufacturers. Any nonparticipating manufacturer required to make quarterly escrow deposits and to certify its compliance with this rule shall be notified of those requirements by first class mail sent to its last known address.

C. Deadline for Quarterly Escrow Deposits. Nonparticipating manufacturers that are required to make quarterly escrow deposits must do so no later than thirty (30) days after the end of the quarter in which the sales are made. For example, the deadline for making a quarterly escrow deposit for cigarette sales occurring in February is April 30 of the same year.

D.Deadline for Submitting Quarterly Certification and Notifying Attorney General of Quarterly Escrow Deposit. Nonparticipating manufacturers that are required to make quarterly escrow deposits must provide the Attorney General with official notification of the quarterly escrow deposit no later than ten (10) days after the deadline for which an escrow deposit is required. Nonparticipating manufacturers must also provide their quarterly certifications within the same deadline. For example, the deadline for certifying and officially notifying the Attorney General of a quarterly escrow deposit for sales of cigarettes that occurred in February is May 10 of the same year.

E. Quarterly Periods Defined. For purposes of this subchapter, the calendar year shall be divided into the following quarters: January 1 through March 31; April 1 through June 30; July 1 through September 30; and October 1 through December 31.

F. Untimely or Incomplete Quarterly Certification or Quarterly Escrow Deposit. If the required quarterly escrow deposit is not timely made in full, or the required quarterly certification is not provided to the Attorney General in a timely fashion, or the Attorney General does not receive timely official notice of the quarterly escrow deposit, the delinquent nonparticipating manufacturer and its brand families may be immediately removed from the directory.

26- 239 C.M.R. ch. 200, § 2