{"data":{"id":"us-ok/okla.-stat.-tit.-37-37-600.23","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 37, § 37-600.23","heading":"Participating manufacturers – Escrow deposits","body":"A. Any tobacco product manufacturer selling cigarettes to\n\nconsumers within the state, whether directly or through a\n\ndistributor, retailer or similar intermediary or intermediaries,\n\nafter July 1, 1999, shall do one of the following:\n\n1. Become a participating manufacturer, as that term is defined\n\nin Section II(jj) of the Master Settlement Agreement, and generally\n\nperform its financial obligations under the Master Settlement\n\nAgreement; or\n\n2. Place into a qualified escrow fund, by April 15 of the year\n\nfollowing the year in question, the following amounts, as such\n\namounts are adjusted for inflation:\n\na. 1999: ninety-four thousand two hundred forty-one one-\n\nhundred-thousandths of one cent ($.0094241) per unit\n\nsold after July 1, 1999,\n\nb. 2000: one hundred four thousand seven hundred twelve\n\none-hundred-thousandths of one cent ($.0104712) per\n\nunit sold,\n\nc. for each of 2001 and 2002: one hundred thirty-six\n\nthousand one hundred twenty-five one-hundred-\n\nthousandths of one cent ($.0136125) per unit sold,\n\nd. for each of 2003 through 2006: one hundred sixty-\n\nseven thousand five hundred thirty-nine one-hundred-\n\nthousandths of one cent ($.0167539) per unit sold, and\n\ne. for each of 2007 and each year thereafter: one\n\nhundred eighty-eight thousand four hundred eighty-two\n\none-hundred-thousandths of one cent ($.0188482) per\n\nunit sold.\n\nB. A tobacco product manufacturer that places funds into escrow\n\npursuant to paragraph 2 of subsection A of this section shall\n\nreceive the interest or other appreciation on such funds as earned.\n\nSuch funds themselves shall be released from escrow only under the\n\nfollowing circumstances:\n\n1. To pay a judgment or settlement on any released claim\n\nbrought against such tobacco product manufacturer by the state or\n\nany releasing party located or residing in the state. Funds shall\n\nbe released from escrow under this paragraph:\n\na. in the order in which they were placed into escrow,\n\nand\n\nb. only to the extent and at the time necessary to make\n\npayments required under such judgment or settlement;\n\n2. To the extent that a tobacco product manufacturer\n\nestablishes that the amount it was required to place into escrow on\n\naccount of units sold in this state in a particular year was greater\n\nthan the Master Settlement Agreement payments, as determined\n\npursuant to Section IX(i) of that Agreement, including after final\n\ndetermination of all adjustments, that such manufacturer would have\n\nbeen required to make on account of such units sold had it been a\n\nparticipating manufacturer, the excess shall be released from escrow\n\nand revert back to such tobacco product manufacturer, unless\n\notherwise provided for by subsection C or D of this section; or\n\n3. To the extent not released from escrow under paragraph 1 or\n\n2 of this subsection, funds shall be released from escrow and revert\n\nback to such tobacco product manufacturer twenty-five (25) years\n\nafter the date on which they were placed into escrow.\n\nC. If this act, or any portion of the amendment to paragraph 2\n\nof subsection B of this section made by this act, is held by a court\n\nof competent jurisdiction to be unconstitutional, then paragraph 2\n\nof subsection B of this section shall have no force and effect.\n\nD. If in accordance with the provisions of subsection C of this\n\nsection, paragraph 2 of subsection B of this section shall have no\n\nforce and effect because a court of competent jurisdiction found\n\nsuch provisions unconstitutional, and if, thereafter, a court of\n\ncompetent jurisdiction finds that subsection B of this section\n\nwithout the provisions of paragraph 2 of subsection B of this\n\nsection is unconstitutional, then paragraph 2 of subsection B of\n\nthis section shall be replaced by the provisions of paragraph 1 of\n\nthis subsection.\n\n1. To the extent that a tobacco product manufacturer\n\nestablishes that the amount it was required to place into escrow in\ncompetent jurisdiction finds that subsection B of this section\n\nwithout the provisions of paragraph 2 of subsection B of this\n\nsection is unconstitutional, then paragraph 2 of subsection B of\n\nthis section shall be replaced by the provisions of paragraph 1 of\n\nthis subsection.\n\n1. To the extent that a tobacco product manufacturer\n\nestablishes that the amount it was required to place into escrow in\n\na particular year was greater than the allocable share for the state\n\nof the total payments that such manufacturer would have been\n\nrequired to make in that year under the Master Settlement Agreement\n\n(as determined pursuant to Section IX(i)(2) of the Master Settlement\n\nAgreement, and before any of the adjustments or offsets described in\n\nSection IX(i)(3) of that Agreement other than the Inflation\n\nAdjustment) had it been a participating manufacturer, the excess\n\nshall be released from escrow and revert back to such tobacco\n\nproduct manufacturer.\n\n2. Neither any holding of unconstitutionality nor the rendering\n\nof paragraph 2 of subsection B of this section to have no force and\n\neffect shall affect, impair or invalidate any other provision of\n\nthis section, or the application of this section to any other person\n\nor circumstance, and the remaining portions of this section shall at\n\nall times continue in full force and effect.\n\nE. Each tobacco product manufacturer that elects to place funds\n\ninto escrow pursuant to paragraph 2 of subsection A of this section\n\nshall annually certify to the Attorney General that it is in\n\ncompliance with paragraph 2 of subsection A of this section. The\n\nAttorney General may bring a civil action on behalf of the state\n\nagainst any tobacco product manufacturer that fails to place into\n\nescrow the funds required under this section. Any tobacco product\n\nmanufacturer that fails in any year to place into escrow the funds\n\nrequired under this section shall:\n\n1. Be required within fifteen (15) days to place such funds\n\ninto escrow as shall bring it into compliance with this section.\n\nThe court, upon a finding of a violation of paragraph 2 of\n\nsubsection A or this subsection of this section, may impose a civil\n\npenalty to be paid to the General Fund of the state in an amount not\n\nto exceed five percent (5%) of the amount improperly withheld from\n\nescrow per day of the violation and in a total amount not to exceed\n\none hundred percent (100%) of the original amount improperly\n\nwithheld from escrow;\n\n2. In the case of a knowing violation, be required within\n\nfifteen (15) days to place such funds into escrow as shall bring it\n\ninto compliance with this section. The court, upon a finding of a\n\nknowing violation of paragraph 2 of subsection A or this subsection\n\nof this section, may impose a civil penalty to be paid to the\n\nGeneral Fund of the state in an amount not to exceed fifteen percent\n\n(15%) of the amount improperly withheld from escrow per day of the\n\nviolation and in a total amount not to exceed three hundred percent\n\n(300%) of the original amount improperly withheld from escrow; and\n\n3. In the case of a second knowing violation, be prohibited\n\nfrom selling cigarettes to consumers within the state, whether\n\ndirectly or through a distributor, retailer or similar intermediary,\n\nfor a period not to exceed two (2) years.\n\nEach failure to make an annual deposit required under this\n\nsection shall constitute a separate violation.","path":["OK Code","Title 37"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os37.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"e0a05eef983145886e45d8e4de66339ba476990a0c29a651860df1968ecc8627","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-37-37-600.22","next":"us-ok/okla.-stat.-tit.-37-37-600.3"},"notice":"GroundRules: Original legal text. Not legal advice."}