EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *hb1173* HOUSE BILL 1173 C2 4lr2404 CF SB 1018 By: Delegate Qi Introduced and read first time: February 7, 2024 Assigned to: Health and Government Operations A BILL ENTITLED AN ACT concerning 1 Tobacco Product Manufacturers – Escrow Act – Alterations 2 FOR the purpose of requiring, beginning in a certain year, a certain tobacco product 3 manufacturer to pay a certain equity fee instead of depositing certain funds in a 4 certain escrow account; authorizing a certain tobacco product manufacturer to 5 contest the amount of the equity fee paid under certain circumstances; requiring a 6 certain tobacco product manufacturer to make a certain certification to the Attorney 7 General each year; authorizing the Attorney General to recover the attorney’s fees, 8 costs, and expenses of a certain action and to deposit certain funds into the Cigarette 9 Restitution Fund; altering the information that certain tobacco product 10 manufacturers must include in a certain certification to the Attorney General; and 11 generally relating to the tobacco product manufacturers and the Escrow Act. 12 BY repealing and reenacting, with amendments, 13 Article – Business Regulation 14 Section 16–401 and 16–403 to be under the amended subtitle “Subtitle 4. Tobacco 15 Product Manufacturers Equity Act”; and 16–501, 16–503, 16–504, and 16 16–506(e) to be under the amended subtitle “Subtitle 5. Equity Requirements 17 for Nonparticipating Tobacco Product Manufacturers” 18 Annotated Code of Maryland 19 (2015 Replacement Volume and 2023 Supplement) 20 BY adding to 21 Article – Business Regulation 22 Section 16–404 23 Annotated Code of Maryland 24 (2015 Replacement Volume and 2023 Supplement) 25 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 26 That the Laws of Maryland read as follows: 27 2 HOUSE BILL 1173 Article – Business Regulation 1 Subtitle 4. Tobacco Product Manufacturers [Escrow] EQUITY Act. 2 16–401. 3 (a) Cigarette smoking presents serious public health concerns to the State and to 4 the citizens of the State. The United States Surgeon General has determined that smoking 5 causes lung cancer, heart disease, and other serious diseases, and that there are hundreds 6 of thousands of tobacco–related deaths in the United States each year. These diseases most 7 often do not appear until many years after the person in question begins smoking. 8 (b) Cigarette smoking also presents serious financial concerns for the State. 9 Under certain health care programs, the State may have a legal obligation to provide 10 medical assistance to eligible persons for health conditions associated with cigarette 11 smoking, and those persons may have a legal entitlement to receive the medical assistance. 12 (c) Under these programs, the State pays millions of dollars each year to provide 13 medical assistance for these persons for health conditions associated with cigarette 14 smoking. 15 (d) It is the policy of the State that financial burdens imposed on the State by 16 cigarette smoking be borne by tobacco product manufacturers rather than by the State [to 17 the extent that such manufacturers either determine to enter into a settlement with the 18 State or are found culpable by the courts] AND, FOR THAT PURPOSE, TOBACCO 19 PRODUCT MANUFACTURER S THAT HAVE SETTLED WITH THE STATE PAY THE STATE 20 MILLIONS OF DOLLARS EACH YEAR , UNLIKE OTHER TOBACCO PRODUCT 21 MANUFACTURERS THAT DO NOT MAKE DIRECT P AYMENTS. 22 (e) On November 23, 1998, leading United States tobacco product manufacturers 23 entered into a settlement agreement, entitled the “Master Settlement Agreement”, with 24 the State. The Master Settlement Agreement obligates these manufacturers, in return for 25 a release of past, present, and certain future claims against them as described in the 26 Agreement, to pay substantial sums to the State (tied in part to their volume of sales); to 27 fund a national foundation devoted to the interests of public health; and to make 28 substantial changes in their advertising and marketing practices and corporate culture, 29 with the intention of reducing underage smoking. 30 (f) [(1) It would be contrary to the policy of the State if tobacco product 31 manufacturers who determine not to enter into such a settlement could use a resulting cost 32 advantage to derive large, short–term profits in the years before liability may arise without 33 ensuring that the State will have an eventual source of recovery from them if they are 34 proven to have acted culpably. 35 (2) It is thus in the interest of the State to require such tobacco product 36 manufacturers to establish a reserve fund to guarantee a source of compensation in order 37 HOUSE BILL 1173 3 to prevent them from deriving large, short–term profits and then becoming judgment–proof 1 before liability may arise] THE PUBLIC HEALTH OBL IGATIONS OF THE STATE ARE 2 OWED EQUALLY TO ALL INDIVIDUALS IN THE STATE WHO SMOKE , REGARDLESS OF 3 THE BRAND OF CIGARET TE SMOKED OR THE STA TUS OF THE TOBACCO P RODUCT 4 MANUFACTURER UNDER T HE MASTER SETTLEMENT AGREEMENT. 5 (G) IT IS CONSISTENT WITH THE POLICY OF THE STATE TO REQUIRE 6 TOBACCO PRODUCT MANU FACTURERS THAT DO NO T MAKE PAYMENTS DIRE CTLY TO 7 THE STATE THROUGH THE MASTER SETTLEMENT AGREEMENT TO PAY AN A MOUNT 8 THAT IS INTENDED TO : 9 (1) PREVENT MANUFACTU RERS FROM DERIVING L ARGE 10 SHORT–TERM PROFITS AND THE N BECOMING JUDGMENT –PROOF; 11 (2) REQUIRE TOBACCO PRODUCT MANUFACTURERS TO INT ERNALIZE 12 THE HEALTH CARE COSTS IMPOSED O N THE STATE BY CIGARETTE SMOKING ; 13 (3) INCREASE THE PRICE O F CIGARETTES TO REDUCE SMOKING 14 RATES, PARTICULARLY AMONG THE YOUTH OF THE STATE, CONSISTENT WITH 15 STATE POLICY TO DISCOURAGE UNDERAGE SMOKING ; AND 16 (4) SERVE AS PARTIAL COM PENSATION FOR THE FI NANCIAL 17 BURDENS IMPOSED ON T HE STATE BY CIGARETTE SM OKING. 18 16–403. 19 (a) Any tobacco product manufacturer that sells cigarettes to consumers within 20 the State, whether directly or through a distributor, retailer, or similar intermediary or 21 intermediaries, after June 1, 1999, shall either: 22 (1) become a participating manufacturer, as that term is defined in section 23 II(jj) of the Master Settlement Agreement, and generally perform its financial obligations 24 under the Master Settlement Agreement; or 25 (2) (I) [place] HAVE PLACED into a qualified escrow fund by April 15 26 of the year following the year in question the following amounts, as such amounts are 27 adjusted for inflation: 28 [(i)] 1. for 1999, $.0094241 per unit sold after June 1, 1999; 29 [(ii)] 2. for 2000, $.0104712 per unit sold; 30 [(iii)] 3. for each of 2001 and 2002, $.0136125 per unit sold; 31 4 HOUSE BILL 1173 [(iv)] 4. for each of 2003, 2004, 2005, and 2006, $.0167539 per unit 1 sold; and 2 [(v)] 5. for 2007 [and each year thereafter] THROUGH 2023, 3 $.0188482 per unit sold; AND 4 (II) BEGINNING IN 2024 AND EACH YEAR THEREA FTER, PAY TO 5 THE COMPTROLLER AN EQUITY FEE OF $.0188482 PER UNIT SOLD , AS ADJUSTED 6 FOR INFLATION . 7 (b) (1) A tobacco product manufacturer that [places] PLACED funds into 8 escrow in accordance with subsection [(a)(2)] (A)(2)(I) of this section shall receive the 9 interest or other appreciation on the funds as earned. 10 (2) The funds themselves shall be released from escrow only under the 11 following circumstances: 12 (i) to pay a judgment or settlement on any released claim brought 13 against such tobacco product manufacturer by the State or any releasing party located or 14 residing in the State. Funds shall be released from escrow under this subparagraph: 15 1. in the order in which they were placed into escrow; and 16 2. only to the extent and at the time necessary to make 17 payments required under such judgment or settlement; 18 (ii) to the extent that a tobacco product manufacturer establishes 19 that the amount it was required to place into escrow on account of units sold in the State 20 in a particular year was greater than the Master Settlement Agreement payments, as 21 determined pursuant to section IX(i) of that Agreement, including after final determination 22 of all adjustments, that such manufacturer would have been required to make on account 23 of such units sold had it been a participating manufacturer, the excess shall be released 24 from escrow and revert back to such tobacco manufacturer; or 25 (iii) to the extent funds are not released from escrow under item (i) 26 or (ii) of this paragraph, funds shall be released from escrow and revert to such tobacco 27 product manufacturer 25 years after the date on which they were placed into escrow. 28 (C) A TOBACCO PRODUCT MANU FACTURER THAT TIMELY PAYS THE EQUITY 29 FEE UNDER SUBSECTION (A)(2)(II) OF THIS SECTION MAY CONTEST THE AMOUNT O F 30 THE EQUITY FEE REQUIRED WITHIN 1 YEAR AFTER THE DATE OF PAYMENT . 31 (D) THE COMPTROLLER SHALL DIS TRIBUTE THE EQUITY F EES PAID UNDER 32 SUBSECTION (A)(2)(II) OF THIS SECTION TO T HE CIGARETTE RESTITUTION FUND 33 HOUSE BILL 1173 5 ESTABLISHED UNDER § 7–317 OF THE STATE FINANCE AND PROCUREMENT 1 ARTICLE. 2 [(c)] (E) (1) [Each] ON OR BEFORE APRIL 30 EACH YEAR, EACH tobacco 3 product manufacturer [that elects to place funds into escrow pursuant to subsection (a)(2) 4 of this section] shall [annually]: 5 (I) certify to the Attorney General that it is in compliance with 6 subsections (a)(2) and (b) of this section; AND 7 (II) 1. HAVE PLACED FUNDS INTO ES CROW UNDER 8 SUBSECTION (A)(2)(I) OF THIS SECTION; OR 9 2. HAVE PAID THE EQUITY FEE UNDER SUBSECTION 10 (A)(2)(II) OF THIS SECTION . 11 (2) (I) The Attorney General may bring a civil action on behalf of the 12 State against any tobacco product manufacturer that fails to place into escrow the funds 13 OR PAY THE EQUITY FE E required under this section. 14 (II) THE ATTORNEY GENERAL IS ENTITLED T O RECOVER THE 15 ATTORNEY’S FEES, COSTS, AND EXPENSES OF THE ACTION FOR THE USE O F THE 16 STATE. 17 (III) THE ATTORNEY GENERAL SHALL DEPOSIT ANY FUNDS 18 RECEIVED UNDER SUBPA RAGRAPH (II) OF THIS PARAGRAPH IN TO THE CIGARETTE 19 RESTITUTION FUND ESTABLISHED UNDE R § 7–317 OF THE STATE FINANCE AND 20 PROCUREMENT ARTICLE. 21 (3) (i) Any tobacco product manufacturer that fails in any year to place 22 into escrow the funds OR PAY THE EQUITY FE E required under this section shall be 23 required within 15 days to place such funds into escrow OR PAY THE EQUITY FEE as will 24 bring the manufacturer into compliance with this section. 25 (ii) The court, upon a finding of a violation of subsection (a)(2) or (b) 26 of this section, may impose a civil penalty, to be paid to the General Fund of the State: 27 1. in an amount not to exceed 5 percent of the amount 28 improperly withheld [from escrow] per day of the violation; and 29 2. in a total amount not to exceed 100 percent of the original 30 amount improperly withheld [from escrow]. 31 (4) (i) If a tobacco product manufacturer has knowingly violated 32 subsection (a)(2) or (b) of this section, the manufacturer shall be required within 15 days to 33 6 HOUSE BILL 1173 place such funds into escrow OR PAY THE EQUITY FEE as will bring it into compliance with 1 this section. 2 (ii) Upon a finding of a knowing violation of subsection (a)(2) or (b) 3 of this section, the court may impose a civil penalty, to be paid to the General Fund of the 4 State: 5 1. in an amount not to exceed 15 percent of the amount 6 improperly withheld [from escrow] per day of the violation; and 7 2. in a total amount not to exceed 300 percent of the original 8 amount improperly withheld [from escrow]. 9 (5) In the case of a second knowing violation of subsection (a)(2) or (b) of 10 this section, the tobacco product manufacturer shall be prohibited from selling cigarettes 11 to consumers within the State, whether directly or through a distributor, retailer, or similar 12 intermediary or intermediaries, for a period not to exceed 2 years. 13 (6) Each failure to make the annual deposit OR PAY THE EQUITY FEE 14 required under this section shall constitute a separate violation. 15 16–404. 16 THE ATTORNEY GENERAL MAY ADOPT REG ULATIONS TO CARRY OU T THE 17 PROVISIONS OF THIS S UBTITLE. 18 Subtitle 5. [Escrow] EQUITY Requirements for Nonparticipating Tobacco Product 19 Manufacturers. 20 16–501. 21 (a) In this subtitle the following words have the meanings indicated. 22 (b) (1) “Brand family” means all styles of cigarettes sold under the same 23 trademark, regardless of whether the cigarettes are differentiated from one another by 24 means of additional modifiers or descriptors such as “menthol”, “lights”, “kings”, “100s”, or 25 other differentiation. 26 (2) “Brand family” includes any use of a brand name (alone or in 27 conjunction with any other word) trademark, logo, symbol, motto, selling message, 28 recognizable pattern of colors, or any other indicia of product identification identical or 29 similar to, or identifiable with, a previously known brand of cigarettes. 30 (c) “Cigarette” has the meaning stated in § 16–402(e) of this title (the [Escrow] 31 EQUITY Act). 32 HOUSE BILL 1173 7 (d) “Comptroller” means the Comptroller of the State or any authorized agent of 1 the Comptroller who is responsible for collection of the excise tax on cigarettes. 2 (e) [“Escrow] “EQUITY Act” means Subtitle 4 of this title. 3 (f) “Executive Director” includes an agent or employee of the Alcohol and Tobacco 4 Commission responsible for the enforcement of State tobacco laws and regulations. 5 (g) “Licensed wholesaler” means a wholesaler who is licensed under Subtitle 2 of 6 this title to act as a wholesaler and any person who is an authorized agent of the licensed 7 wholesaler for the stamping and distribution of cigarettes. 8 (h) “Master Settlement Agreement” has the meaning stated in § 16–402(f) of this 9 title (the [Escrow] EQUITY Act). 10 (i) “Nonparticipating manufacturer” means any tobacco product manufacturer 11 that is not a participating manufacturer. 12 (j) “Participating manufacturer” has the meaning stated in section II(jj) of the 13 Master Settlement Agreement and all amendments to the Agreement. 14 (k) “Qualified escrow fund” has the meaning stated in § 16–402(g) of this title (the 15 [Escrow] EQUITY Act). 16 (l) “Tobacco product manufacturer” has the meaning stated in § 16–402(j) of this 17 title (the [Escrow] EQUITY Act). 18 (m) “Units sold” has the meaning stated in § 16–402(k) of this title (the [Escrow] 19 EQUITY Act). 20 16–503. 21 (a) A tobacco product manufacturer whose cigarettes are sold in this State, 22 whether directly or through a distributor, retailer or similar intermediary, shall execute 23 and deliver, on a form prescribed by the Attorney General, a certification to the Attorney 24 General no later than the 30th day of April each year, certifying under penalty of perjury 25 that, as of the date of the certification, the tobacco product manufacturer either: 26 (1) is a participating manufacturer; or 27 (2) is in full compliance with the [Escrow] EQUITY Act. 28 (b) (1) A participating manufacturer shall include in its certification a list of 29 its brand families. 30 8 HOUSE BILL 1173 (2) The participating manufacturer shall update the list at least 30 1 calendar days prior to any addition or modification to its brand families by executing and 2 delivering a supplemental certification to the Attorney General. 3 (c) (1) A nonparticipating manufacturer shall include in its certification a 4 complete list of all of its brand families. 5 (2) The certification shall: 6 (i) separately list each brand family of cigarettes and the number of 7 units sold for each brand family that was sold in the State during the preceding calendar 8 year; 9 (ii) list each of its brand families that have been sold in the State at 10 any time during the current calendar year; 11 (iii) indicate by an asterisk any brand family sold in the State during 12 the preceding calendar year that is no longer being sold in the State as of the date of such 13 certification; and 14 (iv) identify by name and address any other manufacturer of such 15 brand families in the preceding or current calendar year. 16 (3) The nonparticipating manufacturer shall update the list at least 30 17 calendar days prior to any addition or modification of its brand families by executing and 18 delivering a supplemental certification to the Attorney General. 19 (d) (1) In the case of a nonparticipating manufacturer, the certification shall 20 further certify that the nonparticipating manufacturer: 21 (i) is registered to do business in the State or has appointed a 22 resident agent for service of process and provided notice of the appointment as required by 23 § 16–505 of this subtitle; 24 (ii) 1. REGARDING SALES MADE ON OR BEFORE DECEMBER 25 31, 2023, has established and continues to maintain a qualified escrow fund, and has 26 executed a qualified escrow agreement that has been reviewed and approved by the 27 Attorney General and that governs the qualified escrow fund; [and] OR 28 2. HAS PAID THE EQUITY FEE REQUIRED UNDER § 29 16–403(A)(2)(II) OF THIS TITLE; AND 30 (iii) is in full compliance with the [Escrow] EQUITY Act and this 31 subtitle and any regulations adopted in accordance with the [Escrow] EQUITY Act and this 32 subtitle. 33 HOUSE BILL 1173 9 (2) The certification shall include: 1 (i) FOR NONPARTICIPATING MAN UFACTURERS THAT 2 ESTABLISHED AN ESCRO W FUND: 3 1. the name, address and telephone number of the financial 4 institution in which the nonparticipating manufacturer has established a qualified escrow 5 fund required under [§ 16–403(a)(2)] § 16–403(A)(2)(I) of this title (the [Escrow] EQUITY 6 Act) and all regulations adopted under it; 7 [(ii)] 2. the account number of the qualified escrow fund and 8 subaccount number for the State of Maryland; 9 [(iii)] 3. the amount the nonparticipating manufacturer HAS 10 placed in the fund for cigarettes sold in the State during the preceding calendar year, the 11 date and amount of each deposit, and any additional information the Attorney General 12 considers necessary to confirm the information required by this subparagraph; and 13 [(iv)] 4. the amount of and date of any withdrawal or transfer of 14 funds the nonparticipating manufacturer made at any time from the fund or from any other 15 qualified escrow fund into which the nonparticipating manufacturer made escrow 16 payments under [§ 16–403(a)(2)] § 16–403(A)(2)(I) of this title (the [Escrow] EQUITY Act) 17 and all regulations adopted under that section; OR 18 (II) FOR A NONPARTICIPATI NG MANUFACTURER THAT PAID THE 19 EQUITY FEE, THE AMOUNT OF THE PA YMENT THE NONPARTICI PATING 20 MANUFACTURER HAS PAI D FOR CIGARETTES SOL D IN THE STATE DURING THE 21 PRECEDING CALENDAR Y EAR, THE DATE AND AMOUNT OF THE PAYMENT , AND ANY 22 ADDITIONAL INFORMATI ON THE ATTORNEY GENERAL CONSIDERS NEC ESSARY TO 23 CONFIRM THE INFORMATIO N REQUIRED BY THIS I TEM. 24 (e) (1) A tobacco product manufacturer may not include a brand family in its 25 certification unless: 26 (i) in the case of a participating manufacturer, the participating 27 manufacturer affirms that the brand family is deemed to be its cigarettes for purposes of 28 calculating its payments under the Master Settlement Agreement for the relevant year, in 29 the volume and shares determined in accordance with the Master Settlement Agreement; 30 and 31 (ii) in the case of a n onparticipating manufacturer, the 32 nonparticipating manufacturer affirms that the brand family is deemed to be its cigarettes 33 for purposes of the [Escrow] EQUITY Act. 34 (2) Nothing in this section may be construed as limiting or otherwise 35 affecting the State’s right to maintain that a brand family constitutes cigarettes of a 36 10 HOUSE BILL 1173 different tobacco product manufacturer for purposes of calculating payments under the 1 Master Settlement Agreement or for purposes of the [Escrow] EQUITY Act. 2 (3) The tobacco product manufacturer shall maintain all invoices and 3 documentation of sales and any other information relied upon for its certification for a 4 period of 5 years, unless otherwise required by law to maintain them for a greater period 5 of time. 6 16–504. 7 (a) Except as provided in subsection (b) of this section, the Attorney General shall 8 develop and make available for public inspection a directory listing all tobacco product 9 manufacturers that THE ATTORNEY GENERAL DETERMINES have provided current and 10 accurate certifications conforming to the requirements of § 16–503 of this subtitle AND 11 WITH ALL APPLICABLE FEDERAL, STATE, AND LOCAL LAWS and all COMPLIANT brand 12 families that are listed in such certifications. 13 (b) (1) The Attorney General may not include or retain in the directory the 14 name or brand families of any nonparticipating manufacturer that fails to provide the 15 required certification or whose certification the Attorney General determines is not in 16 compliance with § 16–503(c)(3) and (d) of this subtitle, unless the Attorney General has 17 determined that the violation has been cured to the satisfaction of the Attorney General. 18 (2) Neither a tobacco product manufacturer nor a brand family may be 19 included or retained in the directory if the Attorney General concludes, in the case of a 20 nonparticipating manufacturer, that: 21 (i) 1. any escrow payment required under [§ 16–403(a)(2)] § 22 16–403(A)(2)(I) of this title (the [Escrow] EQUITY Act) for any period for any brand 23 family, whether or not listed by such nonparticipating manufacturer, has not been fully 24 paid into a qualified escrow fund governed by a qualified escrow agreement that has been 25 approved by the Attorney General; or 26 2. ANY EQUITY FEE REQUI RED UNDER § 16–403(A)(2)(II) 27 OF THIS TITLE FOR AN Y PERIOD FOR ANY BRAND FAMILY, WHETHER OR NOT LISTE D 28 BY SUCH NONPARTICIPA TING MANUFACTURER , HAS NOT BEEN FULLY P AID TO THE 29 COMPTROLLER ; OR 30 (ii) any outstanding final judgment, including interest on the 31 judgment, for a violation of the Escrow Act has not been fully satisfied for the brand family 32 or the manufacturer. 33 (3) The Attorney General shall update the directory as necessary in order 34 to correct mistakes and to add or remove a tobacco product manufacturer or brand family 35 to keep the directory in conformity with the requirements of this subtitle. 36 HOUSE BILL 1173 11 (4) Each licensed wholesaler shall provide and update as necessary an 1 electronic mail address to the Attorney General for the purpose of receiving any 2 notifications that may be required by this subtitle. 3 (c) A person may not: 4 (1) affix a stamp to a package or other container of cigarettes of a tobacco 5 product manufacturer or brand family not included in the directory; or 6 (2) sell, offer or possess for sale in this State, or import for personal 7 consumption in this State, cigarettes of a tobacco product manufacturer or brand family 8 not included in the directory. 9 16–506. 10 (e) (1) To promote compliance with this subtitle, the Attorney General may 11 adopt regulations requiring a tobacco product manufacturer subject to the requirements of 12 § 16–503(a) of this subtitle to make the escrow deposits OR PAY THE EQUITY FE E required 13 in quarterly installments during the year in which the sales covered by the deposits OR 14 PAYMENTS are made. 15 (2) The Attorney General may require production of information sufficient 16 to enable the Attorney General to determine the adequacy of the amount of the installment 17 deposit OR PAYMENT . 18 SECTION 2. AND BE IT FURTHER ENACTED, That notwithstanding the 19 provisions of § 1–210 of the General Provisions Article, the provisions of this Act are not 20 severable, and if any provision of this Act or the application thereof to any person or 21 circumstance is held invalid for any reason in a court of competent jurisdiction no other 22 provision or application of this Act may be given effect. 23 SECTION 3. AND BE IT FURTHER ENACTED, That : 24 (a) In this section, “Master Settlement Agreement” means the settlement 25 agreement and related documents entered into on November 23, 1998, by the State and 26 leading United States tobacco product manufacturers. 27 (b) Notwithstanding the provisions of § 1–210 of the General Provisions Article, 28 the provisions of this Act are not severable, and if all or any portion of the equity fee 29 established under § 16–403 of the Business Regulation Article, as enacted under Section 1 30 of this Act, results in a determination by the Firm, as that term is defined by the Master 31 Settlement Agreement, that Title 16, Subtitle 4 (the Equity Act) of the Business Regulation 32 Article no longer constitutes a qualifying statute, as that term is defined in § IX(d)(1)(C) of 33 the Master Settlement Agreement, no other provision or application of this Act may be 34 given effect. 35 12 HOUSE BILL 1173 SECTION 4. AND BE IT FURTHER ENACTED, That this Act shall take effect 1 October 1, 2024. 2