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 defined in the master settlement agreement.
4.
a.“Cigarette” means any product that contains nicotine, is intende
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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 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 any of the following:
(1) Any roll of tobacco wrapped in paper or in any substance not containing tobacco.
(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.
(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 subparagraph (1).
b. The term “cigarette” includes “roll-your-own” tobacco, meaning 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”.
5. “Mastersettlementagreement”meansthesettlementagreementandrelateddocuments
entered into on November 23, 1998, by the state and leading United States tobacco product
manufacturers.
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 453C.2, subsection 2, paragraph “b”.
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 on or after May 20, 1999,
directly and not exclusively through any affiliate does any of the following:
(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).
§453C.1, TOBACCO PRODUCT MANUFACTURERS — FINANCIAL OBLIGATIONS 2
(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.
(3) Becomes a successor of an entity described in subparagraph (1) or (2).
b. The term “tobacco product manufacturer” shall not include an affiliate of a tobacco
product manufacturer unless such affiliate itself falls within any of paragraph “a”,
subparagraphs (1) through (3).
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, in packs required to
bear the excise stamp of the state or in the case of roll-your-own tobacco on which a tax is
due pursuant to chapter 453A. The department of revenue shall adopt rules as are necessary
to ascertain the amount of state excise tax paid on the cigarettes of such tobacco product
manufacturer for each year.