NAC370.330. Nonparticipating manufacturer: Requirements for quarterly escrow deposits and reports; noncompliance with requirements.

     1. A nonparticipating manufacturer shall make escrow deposits in quarterly installments for the calendar year in which the sales covered by those deposits are made if:

     (a) The nonparticipating manufacturer:

          (1) Has not previously established a qualified escrow fund and made escrow deposits to that fund for sales in Nevada;

          (2) Has not made any escrow deposits for more than 1 year;

          (3) Has failed to make any escrow deposits in a complete and timely manner for any prior calendar year;

          (4) Has failed to pay any judgments entered against the nonparticipating manufacturer in any jurisdiction, including, without limitation, any judgments for any civil penalties arising from a failure to comply with the law of any jurisdiction requiring a deposit into a qualified escrow fund; or

          (5) Sells more than 1.6 million cigarettes in Nevada during a calendar quarter; or

     (b) The Department, in consultation with the Attorney General:

          (1) Has reasonable cause to believe that the nonparticipating manufacturer may not make the entire annual escrow deposit otherwise required by subsection 2 of NRS 370A.140 in a timely manner for a particular year; and

          (2) Serves the nonparticipating manufacturer with a notice that the nonparticipating manufacturer is required to make quarterly installments for that year.

     2. A nonparticipating manufacturer who is required to make a quarterly installment pursuant to this section shall:

     (a) Deposit the full amount of that installment on or before the last day of the month following the calendar quarter in which the sales covered by the installment are made; and

     (b) Not later than 10 days after the last date upon which that installment is required pursuant to paragraph (a), provide the Attorney General with a quarterly report that includes such information as the Attorney General determines to be necessary to ascertain whether the nonparticipating manufacturer is in compliance with NRS 370.600 to 370.705, inclusive, chapter 370A of NRS and NAC 370.300 to 370.330, inclusive. The report required pursuant to this paragraph must be provided:

          (1) On a form prescribed by the Attorney General; or

          (2) Electronically, in a format prescribed by the Attorney General.

     3. If a nonparticipating manufacturer fails to comply with any provision of subsection 2, the Department shall:

     (a) Serve the nonparticipating manufacturer with a notice that the Department will remove the name and brand families of the nonparticipating manufacturer from the directory in 5 days, excluding weekends and holidays, unless the nonparticipating manufacturer fully complies with the provisions of subsection 2 within that time; and

     (b) Upon the expiration of 5 days, excluding weekends and holidays, after the service of the notice pursuant to paragraph (a), remove the name and brand families of the nonparticipating manufacturer from the directory unless the nonparticipating manufacturer has fully complied with the provisions of subsection 2 within that time.

     (Added to NAC by Tax Comm’n by R191-05, eff. 11-13-2006)