NRS370A.157. Release of money deposited into escrow to Indian tribes. [Effective January 1, 2014.]

      1.  The State may release to an Indian tribe, pursuant to a compact with that tribe, not more than 50 percent of the amounts deposited into a qualified escrow fund pursuant to NRS 370A.140 for cigarettes sold on or after January 1, 2015, in a retail transaction to a consumer on the qualified tribal land of the tribe, if:

      (a) The tribe is a federally recognized tribe or a tribe that was recognized by the State on or before January 1, 2012, and, in each case, has a reservation or colony in the State;

      (b) The money to be released was timely deposited into escrow in compliance with NRS 370A.140;

      (c) State excise tax or tribal excise tax was paid on the cigarettes;

      (d) The release occurs not earlier than 1 year after the money is deposited into escrow;

      (e) The money released is provided to the tribe itself and used only for the purpose of public safety on the qualified tribal land of the tribe or for social services for tribal members, including, without limitation, health care or education, and not used for any function that could directly or indirectly promote or reduce the costs of cigarette production, marketing or sales;

      (f) The money released is not used in any way for the benefit of any manufacturer of tobacco products that is not a participating manufacturer under the Master Settlement Agreement or to facilitate cigarette sales by any such manufacturer of tobacco products; and

      (g) The compact with the tribe provides that the taxing and stamping requirements and policies for cigarettes sold on the qualified tribal land of the tribe, including the applicability, amount, collection and refund of taxes, will not be different for any cigarettes of participating manufacturers than for any cigarettes of manufacturers of tobacco products that are not participating manufacturers, and the tribe is in compliance with these provisions of the compact.

      2.  The total amount released to all Indian tribes from escrow pursuant to this section in any 1 year must not exceed $1 million in the aggregate.

      3.  This section applies only to:

      (a) The cigarettes of a manufacturer of tobacco products that existed in the United States market on or before June 1, 2012; and

      (b) A manufacturer of tobacco products involved in the production, distribution or sale of the cigarettes for which money would be released that is not a manufacturer, or an affiliate or successor of such manufacturer, affiliated with the Indian tribe or any member of the tribe to which the money would be released.

      4.  For the purposes of this section, an Indian tribe with qualified tribal land located in more than one state or territory of the United States is considered to have a reservation or colony in, and to be eligible for the release of money pursuant to this section from, this State only if the largest portion of the qualified tribal land of the tribe is located within this State.

      5.  The Attorney General may withdraw from a qualified escrow fund the money released pursuant to this section. The manufacturers of tobacco products that elect to deposit money into a qualified escrow fund pursuant to NRS 370A.140 and the financial institutions in which such qualified escrow funds are maintained shall make such amendments to their qualified escrow agreements as may be necessary to effectuate a withdrawal of money from the qualified escrow funds pursuant to this section.

      6.  Notwithstanding the provisions of NRS 370A.150, a manufacturer of tobacco products does not have any right to reversion of the money, including, without limitation, the interest or other appreciation earned on the money, released from escrow pursuant to this section.

      7.  If a court of competent jurisdiction invalidates the provisions of subsection 5, the money authorized to be released to Indian tribes pursuant to this section may be paid to the appropriate tribes out of the State General Fund, subject to all conditions and limits provided in this section.

      8.  The Attorney General is authorized to enter into compacts on behalf of the State as provided in this section. Any compact so entered into must require the Indian tribe to verify that the conditions set forth in paragraphs (e), (f) and (g) of subsection 1 are met.

      (Added to NRS by 2013, 2664, effective January 1, 2014)