State Codes and Statutes

State Codes and Statutes

Statutes > Kentucky > 131-00 > 600

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Page 1 of 2 131.600 Definitions for KRS 131.600 and 131.602. As used in this section and KRS 131.602: <br>(1) &quot;Adjusted for inflation&quot; means increased in accordance with the formula for inflation adjustment set forth in Exhibit C to the master settlement agreement. (2) &quot;Affiliate&quot; 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. <br>Solely for purposes of this definition, the terms &quot;owns,&quot; &quot;is owned,&quot; and <br>&quot;ownership&quot; mean ownership of an equity interest, or the equivalent thereof, of ten <br>percent (10%) or more, and the term &quot;person&quot; means an individual, partnership, <br>committee, association, corporation, or any other organization or group of persons. (3) &quot;Allocable share&quot; means allocable share as that term is defined in the master settlement agreement. (4) &quot;Cigarette&quot; means any product that contains nicotine, is intended to be burned or heated under ordinary conditions of use, and consists of or contains: <br>(a) Any roll of tobacco wrapped in paper or in any substance not containing tobacco; (b) 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 <br>labeling, is likely to be offered to, or purchased by, consumers as a cigarette; <br>or (c) 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 <br>packaging and labeling, is likely to be offered to, or purchased by, consumers <br>as a cigarette described in paragraph (a) of this subsection. The term &quot;cigarette&quot; includes &quot;roll-your-own&quot;, i.e., any tobacco which, because of <br>its appearance, type, packaging, or labeling is suitable for use and likely to be <br>offered to, or purchased by, consumers as tobacco for making cigarettes. For <br>purposes of this definition of &quot;cigarette,&quot; nine-hundredths (0.09) ounces of &quot;roll-<br>your-own&quot; tobacco shall constitute one (1) individual &quot;cigarette.&quot; (5) &quot;Master settlement agreement&quot; means the settlement agreement and related documents entered into on November 23, 1998, by Kentucky and leading United <br>States tobacco product manufacturers. (6) &quot;Qualified escrow fund&quot; means an escrow arrangement with a federally or state-chartered financial institution having no affiliation with any tobacco product <br>manufacturer and having assets of at least one billion dollars (&#36;1,000,000,000) <br>where such arrangement requires that such financial institution hold the escrowed <br>funds' principal for the benefit of releasing parties and prohibits the tobacco product <br>manufacturer placing the funds into escrow from using, accessing, or directing the <br>use of the funds' principal except as consistent with KRS 131.602(2). (7) &quot;Released claims&quot; means released claims as that term is defined in the master settlement agreement. Page 2 of 2 (8) &quot;Releasing parties&quot; means releasing parties as that term is defined in the master settlement agreement. (9) &quot;Tobacco product manufacturer&quot; means an entity that after June 30, 2000, directly and not exclusively through any affiliate: <br>(a) Manufactures cigarettes anywhere that such manufacturer intends to be sold in the United States, including cigarettes intended to be sold in the United States <br>through an importer, except where such importer is an original participating <br>manufacturer, as that term is defined in the master settlement agreement, that <br>will be responsible for the payments under the master settlement agreement <br>with respect to such cigarettes as a result of the provisions of subsection <br>II(mm) of the master settlement agreement and that pays the taxes specified in <br>subsection II(z) of the master settlement agreement, and provided that the <br>manufacturer of such cigarettes does not market or advertise such cigarettes in <br>the United States; (b) 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 <br>United States; or (c) Becomes a successor of an entity described in paragraph (a) or (b) of this subsection. The term &quot;tobacco product manufacturer&quot; shall not include an affiliate of a tobacco <br>product manufacturer unless such affiliate itself falls within any of the definitions <br>described in paragraph (a), (b), or (c) of this subsection. (10) &quot;Units sold&quot; means the number of individual cigarettes sold in Kentucky by the applicable tobacco product manufacturer, whether directly or through a distributor, <br>retailer, or similar intermediary or intermediaries, during the year in question, as <br>measured by excise taxes collected by Kentucky on packs or &quot;roll-your-own&quot; <br>tobacco. The Department of Revenue shall promulgate such regulations as are <br>necessary to ascertain the amount of state excise tax paid on the cigarettes of such <br>tobacco product manufacturer for each year. Effective: April 25, 2006 <br>History: Amended 2006 Ky. Acts ch. 252, Pt. XXXII, sec. 1, effective April 25, 2006. -- Amended 2005 Ky. Acts ch. 85, secs. 153 and 155, effective June 20, 2005. -- <br>Created 2000 Ky. Acts ch. 342, sec. 1, effective June 30, 2000.