A bill pending in the Tennessee legislature (SB 3578 / HB 3632) would expand enforcement of escrow obligations.

The bill would require importers of products manufactured abroad to accept joint and several liability for escrow obligations.

The bill also would allow the state to remove nonparticipating manufacturers from the directory of approved manufacturers based on escrow non-payment in another state, or removal from another state’s directory.  The bill would also allow delisting of a nonparticipating manufacturer if the manufacturer has pled guilty to crimes involving the sale or distribution of tobacco products, or if the manufacturer has failed to cooperate with requests for information from the state revenue department.

For questions and/or comments, please contact Bryan Haynes, Troutman Sanders Tobacco practice partner, at 804.697.1420 or by email.