Nev. Rev. Stat. § 370.682 — Bond of nonparticipating manufacturer: Posting requirements; amount; execution; application of amount collected by State; regulations

NRS  370.682    Bond of nonparticipating manufacturer: Posting requirements;
amount; execution; application of amount collected by State; regulations.
1.  A nonparticipating manufacturer shall
post a bond approved by the Attorney General for the benefit of the State of
Nevada.
2.  The bond must be posted not less than
10 days before the beginning of each calendar quarter as a condition of the
nonparticipating manufacturer and its brand families being included in the
directory for that quarter. The amount of the bond must be the greater of
$50,000 or the greatest required escrow amount due from the nonparticipating
manufacturer or its predecessor for any of the immediately preceding 12
calendar quarters.
3.  If a nonparticipating manufacturer has
failed to make or have made on its behalf escrow deposits equal to the full
amount due for a calendar quarter within 15 business days after the due date
for that calendar quarter, the State of Nevada may execute upon the bond posted
by the nonparticipating manufacturer pursuant to subsection 1 in an amount
equal to any remaining escrow amount due.
4.  Any amount that the State of Nevada
collects on a bond posted by a nonparticipating manufacturer pursuant to this
section:
(a) Must be deposited into a special escrow
account established and maintained by the State of Nevada and used for purposes
authorized for the use of money in the qualified escrow fund of the
nonparticipating manufacturer pursuant to this chapter and chapter 370A of NRS; and
(b) Reduces the escrow amount due from the
nonparticipating manufacturer in the dollar amount collected.
5.  Escrow obligations above the amount
collected on the bond remain due from the nonparticipating manufacturer and, as
provided in NRS 370.683 and 370.684 , from wholesale dealers and
importers, respectively, that sold the cigarettes of the nonparticipating
manufacturer during that calendar quarter.
6.  The withholding, use or return of
amounts deposited into the special escrow account must be handled in the same
manner as amounts deposited in the qualified escrow fund of the nonparticipating
manufacturer pursuant to the provisions of this chapter and chapter 370A of NRS.
7.  The Attorney General shall adopt
regulations to carry out the provisions of this section.