Chapter 94E of the Massachusetts General Laws requires cigarette manufacturers that do not enter into the Master Settlement Agreement (Non-Participating Manufacturers, or NPMs) to make deposits into a qualified escrow account each year, based on their sales in Massachusetts during the previous year. Money in the escrow account is held to pay settlements or judgments against those companies on claims brought by the Commonwealth.
The Attorney General’s Office has brought civil enforcement actions against cigarette companies that have failed to comply with the escrow statute. In addition, pursuant to regulations at 830 CMR 94E.1.1, the Department of Revenue has stopped the sale of non-compliant NPM cigarettes by prohibiting its authorized stampers from placing the Massachusetts excise stamp on those cigarettes.
Chapter 94F of the Massachusetts General Laws requires that cigarette manufacturers and brands be listed in a directory in order to sell cigarettes in Massachusetts. In order to be listed in the directory, a manufacturer must submit a Tobacco Product Manufacturer (TPM) Certification identifying its brands and satisfying certain additional requirements.
The Attorney General’s Office regulations governing TPM Certification is at 940 CMR 24.00.