Kathleen G. Kane - Pennsylvania Office of Attorney General - Protecting Pennsylvanians

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Tobacco Non-Participating Manufacturer (NPM) Issues

Every tobacco manufacturer that sells its product in Pennsylvania has two options under the Tobacco Settlement Agreement Act:

The tobacco manufacturer must either join the Master Settlement Agreement; or the tobacco manufacturer must setup a qualified escrow account.

Payments to the escrow account are based upon the number of sticks sold in Pennsylvania during a specified timeframe.  The money in the escrow account reverts back to the non-participating manufacturer in 25 years if no suits are filed against the non-participating manufacturer.