[§675-2]  Definitions.  (a) 
"Adjusted for inflation" means increased in accordance with the
formula for inflation adjustment set forth in Exhibit C to the Master
Settlement Agreement.



(b)  "Affiliate" means a person who
directly or indirectly owns or controls, is owned or controlled by, or is under
common ownership or control with, another person.  Solely for purposes of this
definition, the terms "owns," "is owned" and
"ownership" mean ownership of an equity interest, or the equivalent
thereof, of ten percent or more, and the term "person" means an
individual, partnership, committee, association, corporation or any other
organization or group of persons.



(c)  "Allocable share" means
Allocable Share as that term is defined in the Master Settlement Agreement.



(d)  "Cigarette" means any product
that contains nicotine, is intended to be burned or heated under ordinary
conditions of use, and consists of or contains (1) any roll of tobacco wrapped
in paper or in any substance not containing tobacco; or (2) tobacco, in any
form, that is functional in the product, which, because of its appearance, the
type of tobacco used in the filler, or its packaging and labeling, is likely to
be offered to, or purchased by, consumers as a cigarette; or (3) any roll of
tobacco wrapped in any substance containing tobacco which, because of its
appearance, the type of tobacco used in the filler, or its packaging and
labeling, is likely to be offered to, or purchased by, consumers as a cigarette
described in clause (1) of this definition.  The term "cigarette"
includes "roll-your-own" (i.e., any tobacco which, because of its
appearance, type, packaging, or labeling is suitable for use and likely to be
offered to, or purchased by, consumers as tobacco for making cigarettes).  For
purposes of this definition of "cigarette," 0.09 ounces of
"roll-your-own" tobacco shall constitute one individual
"cigarette."



(e)  "Master Settlement Agreement"
means the settlement agreement (and related documents) entered into on November
23, 1998 by the State and leading United States tobacco product manufacturers.



(f)  "Qualified escrow fund" means an
escrow arrangement with a federally or State chartered financial institution
having no affiliation with any tobacco product manufacturer and having assets
of at least $1,000,000,000 where such arrangement requires that such financial
institution hold the escrowed funds' principal for the benefit of releasing
parties and prohibits the tobacco product manufacturer placing the funds into
escrow from using, accessing or directing the use of the funds' principal
except as consistent with section 3(b) of this Act.



(g)  "Released claims" means Released
Claims as that term is defined in the Master Settlement Agreement.



(h)  "Releasing parties" means
Releasing Parties as that term is defined in the Master Settlement Agreement.



(i)  "Tobacco product manufacturer"
means an entity that after the date of enactment of this Act directly (and not
exclusively through any affiliate):



(1)  manufactures cigarettes anywhere that such
manufacturer intends to be sold in the United States, including cigarettes
intended to be sold in the United States through an importer (except where such
importer is an original participating manufacturer (as that term is defined in
the Master Settlement Agreement) that will be responsible for the payments
under the Master Settlement Agreement with respect to such cigarettes as a
result of the provisions of subsection II(mm) of the Master Settlement
Agreement and that pays the taxes specified in subsection II(z) of the Master
Settlement Agreement, and provided that the manufacturer of such cigarettes
does not market or advertise such cigarettes in the United States);



(2)  is the first purchaser anywhere for resale in the
United States of cigarettes manufactured anywhere that the manufacturer does
not intend to be sold in the United States; or



(3)  becomes a successor of an entity described in
paragraph (1) or (2).



The term "Tobacco Product
Manufacturer" shall not include an affiliate of a tobacco product
manufacturer unless such affiliate itself falls within any of (1)-(3) above.



(j)  "Units sold" means the number of
individual cigarettes sold in the State by the applicable tobacco product
manufacturer (whether directly or through a distributor, retailer or similar
intermediary or intermediaries) during the year in question, as measured by
excise taxes collected by the State on packs (or "roll-your-own"
tobacco containers) bearing the excise tax stamp of the State.  The Department
of the Attorney General shall promulgate such regulations as are necessary to
ascertain the amount of State excise tax paid on the cigarettes of such tobacco
product manufacturer for each year. [L 1999, c 188, pt of §1]



 



Note



 



  "The date of enactment of this Act", referred to in
subsection (i), is July 2, 1999.