Tennessee Tobacco Manufacturer Bond

TennesseeTennessee State introduced a new law relating to tobacco manufacturers. The new law is referred to as SB 2169 and requires non-participating manufacturers that are not included in the directory of approved tobacco manufacturers to acquire a surety bond in order to be included on the list. These companies do not partake in the State’s master settlement agreement and instead put funds into an escrow account as directed under present legislation. The surety bond must be in a quantity of $100,000 from a corporate surety “located within the United States.” The surety bond is conditioned on the non-participating manufacturer’s execution of all of its responsibilities and obligations under this chapter and the Tennessee Tobacco Manufacturers’ Escrow Fund Act of 1999. SB 2169 became active upon enactment.