As used in this part 2:
(1) Adjusted for inflation means increased in accordance with the formula
for inflation adjustment set forth in exhibit C to the master settlement agreement.
(2) 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.
(3) Allocable share means allocable share as that term is defined in the
master settlement agreement.
(4) (a) Cigarette means any product that contains nicotine, is intended to
be burned or heated under ordinary conditions of use, and consists of or contains:
(I) Any roll of tobacco wrapped in paper or in any substance not containing
tobacco; or
(II) 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
(III) Any roll of tobacco wrapped in any substance containing tobacco that,
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 subparagraph (I) of this paragraph (a).
(b) The term cigarette includes roll-your-own, i.e., any tobacco that,
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.
(c) For purposes of this definition of cigarettes, 0.09 ounces of roll-your-own tobacco shall constitute one individual cigarette.
(5) Master settlement agreement means the settlement agreement and
related documents dated November 23, 1998, entered into by the state and leading
United States tobacco product manufacturers and attached as exhibit A to the
consent decree approved by the district court for the city and county of Denver on
November 25, 1998, in civil action no. 97CV3432.
(6) 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 one billion dollars, 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 39-28-203 (2).
(7) Released claims means released claims as that term is defined in the
master settlement agreement.
(8) Releasing parties means releasing parties as that term is defined in the
master settlement agreement.
(9) (a) Tobacco product manufacturer means an entity that, after July 1,
1999, directly and not exclusively through any affiliate:
(I) Manufactures anywhere cigarettes which the manufacturer intends to be
sold in the United States, including cigarettes intended to be sold in the United
States through an importer; provided, however, that an entity that manufactures
cigarettes that it intends to be sold in the United States shall not be considered a
tobacco product manufacturer under this paragraph (a) if:
(A) Such cigarettes are sold in the United States exclusively through an
importer that 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 section II(z) of the master settlement agreement; and
(B) The manufacturer of such cigarettes does not market or advertise such
cigarettes in the United States;
(II) 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
(III) Becomes a successor of an entity described in subparagraph (I) or (II) of
this paragraph (a).
(b) Tobacco product manufacturer does not include an affiliate of a
tobacco product manufacturer unless such affiliate itself falls within
subparagraphs (I) through (III) of paragraph (a) of this subsection (9).
(10) 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 containers of roll-your-own tobacco, and on packs of cigarettes bearing the excise tax stamp of the
state. The department shall promulgate such rules as are necessary to ascertain
the amount of state excise tax paid on the cigarettes of such tobacco product
manufacturer for each year.