New Jersey § 52:4d-4

§ 52:4d-4.

The Legislature finds and declares that facilitating the diligent enforcement of P.L.1999, c. 148 ( C.52:4D-1 et seq. ), the so-called “Model Statute” contemplated by the “Master Settlement Agreement”

which settled tobacco-related litigation between the settling states, including New

Jersey, and leading United States tobacco product manufacturers, is beneficial to

the public interest. The Model Statute requires tobacco product manufacturers that are not participants

in the Master Settlement Agreement to pay into a qualified escrow fund to guarantee

a source of compensation to pay any future judgment or settlement that may be reached

with the State. Overall tobacco industry compliance with the provisions of the Model Statute will

be encouraged by requiring cigarette distributors to stamp and distribute only cigarettes

of tobacco product manufacturers that are in compliance with the act and by requiring

holders of certificates of authority under P.L.1990, c. 39 ( C.54:40B-1 et seq. ) and other persons that collect or pay the tax on a tobacco product as defined in

section 2 of P.L.1990, c. 39 ( C.54:40B-2 ) that is also defined as a cigarette under section 2 of P.L.1999, c. 148 ( C.52:4D-2 ) to distribute only the tobacco products of tobacco product manufacturers that are

in compliance with the act. The establishment of additional procedural enhancements and penalties related to

these requirements will aid the State in its continuing diligent enforcement of this

law and thereby safeguard the Master Settlement Agreement and the effectuation of

the goals of the tobacco litigation settlement, which in turn will have a salutary

effect on the fiscal soundness of the State and the public health.