§ 1399-OO — Definitions

New York § 1399-OO

• Jurisdiction: New York
• Law PBH: Public Health
• Art. 13-G: Tobacco Escrow Funds

Text

§ 1399-oo. Definitions. As used in this article the following terms\nshall mean:\n 1. "Adjusted for inflation" means increased in accordance with the\nformula for inflation adjustment set forth in exhibit C to the master\nsettlement agreement.\n 2. "Affiliate" means a person who directly or indirectly owns or\ncontrols, is owned or controlled by, or is under common ownership or\ncontrol with, another person. Solely for purposes of this definition,\nthe term "owns," "is owned" and "ownership" mean ownership of an equity\ninterest, or the equivalent thereof, of ten percent or more, and the\nterm "person" means an individual, partnership, committee, association,\ncorporation or any other organization or group of persons.\n 3. "Allocable share" means allocable share as that term is defined in\nthe master settlement agreement.\n 4. "Cigarette" means any product that contains nicotine, is intended\nto be burned or heated under ordinary conditions of use, and consists of\nor contains: (a) any roll of tobacco wrapped in any substance not\ncontaining tobacco, or (b) tobacco, in any form, that is functional in\nthe product, which, because of its appearance, the type of tobacco used\nin the filler, or its packaging and labeling, is likely to be offered\nto, or purchased by, consumers as a cigarette; or (c) any roll of\ntobacco wrapped in any substance containing tobacco which, because of\nits appearance, the type of tobacco used in the filler, or its packaging\nand labeling, is likely to be offered to, or purchased by, consumers as\na cigarette described in paragraph (a) of this definition. The term\n"cigarette" includes "roll-your-own" (i.e., any tobacco which, because\nof its appearance, type, packaging or labeling is suitable for use and\nlikely to be offered to, or purchased by, consumers as tobacco for\nmaking cigarettes). For purposes of this definition of "cigarette," 0.09\nounces of "roll-your-own" tobacco shall constitute one individual\n"cigarette."\n 5. "Master settlement agreement" means the settlement agreement (and\nrelated documents) entered into on November twenty-third, nineteen\nhundred ninety-eight by the state and leading United States tobacco\nproduct manufacturers. A copy of said agreement, including any\namendments thereto, shall be kept on file by the attorney general, who\nshall make it available for inspection and copying pursuant to the\nprovisions of article six of the public officers law.\n 6. "Qualified escrow fund" means an escrow arrangement with a\nfederally or state chartered financial institution having no affiliation\nwith any tobacco product manufacturer and having assets of at least one\nbillion dollars where such arrangement requires that such financial\ninstitution hold the escrowed funds' principal for the benefit of\nreleasing parties and prohibits the tobacco product manufacturer placing\nthe funds into escrow from using, accessing or directing the use of the\nfunds' principal except as consistent with paragraph (b) of subdivision\ntwo of section thirteen hundred ninety-nine-pp of this article.\n 7. "Released claims" means released claims as that term is defined in\nthe master settlement agreement.\n 8. "Releasing parties" means releasing parties as that term is defined\nin the master settlement agreement.\n 9. "Tobacco product manufacturer" means an entity that after the\neffective date of this article directly (and not exclusively through any\naffiliate):\n (a) manufacturers cigarettes anywhere that such manufacturer intends\nto be sold in the United States, including cigarettes intended to be\nsold in the United States through an importer (except where such\nimporter is an original participating manufacturer (as that term is\ndefined in the master settlement agreement) that will be responsible for\nthe payments under the master settlement agreement with respect to such\ncigarettes as a result of the provisions of subsections II(mm) of the\nmaster settlement agreement and that pays the taxes specified in\nsubsection II(z) of the master settlement agreement, and provided that\nthe manufacturer of such cigarettes does not market or advertise such\ncigarettes in the United States);\n (b) is the first purchaser anywhere for resale in the United States of\ncigarettes manufactured anywhere that the manufacturer does not intend\nto be sold in the United States; or\n (c) becomes a successor of an entity described in paragraph (a) or (b)\nof this subdivision.\nThe term "tobacco product manufacturer" shall not include an affiliate\nof a tobacco product manufacturer unless such affiliate itself falls\nwithin any of the provisions of paragraph (a), (b) or (c) of this\nsubdivision.\n 10. "Units sold" means the number of individual cigarettes sold in the\nstate by the applicable tobacco product manufacturer (whether directly\nor through a distributor, retailer or similar intermediary or\nintermediaries) during the year in question, as measured by excise taxes\ncollected by the state on packs bearing the excise tax stamp of the\nstate, or on "roll-your-own" tobacco containers. The commissioner of\ntaxation and finance shall promulgate such regulations as are necessary\nto ascertain the amount of state excise tax paid on the cigarettes and\nroll-your-own tobacco of such tobacco product manufacturer for each\nyear. Notwithstanding any other provision of law, a failure of a\ncigarette tax agent or distributor licensed pursuant to section four\nhundred seventy-two of the tax law to provide any information required\nby such regulations shall be deemed a violation of the regulations of\nthe commissioner of taxation and finance promulgated under article\ntwenty of the tax law. Notwithstanding any provision of law to the\ncontrary, the commissioner of taxation and finance shall provide to the\nattorney general any information necessary for the administration and\nenforcement of this article, including: (a) returns filed in accordance\nwith article twenty or twenty-eight of the tax law (or any other\nprovision of the tax law providing for an excise tax on cigarettes or\nroll-your-own tobacco); and (b) in the event the commissioner is unable\nto ascertain the identity of the applicable tobacco product manufacturer\nwith respect to particular cigarettes or roll-your-own tobacco sold in\nthe state, the number and brand names of such cigarettes or\nroll-your-own tobacco, the identity of the person from whom the excise\ntax on such cigarettes or roll-your-own tobacco was collected, and all\nother available information relating to such cigarettes or roll-your-own\ntobacco, to be used by the attorney general to ascertain the identity of\nsuch tobacco product manufacturer and for the administration and\nenforcement of this article. Notwithstanding any provision of law to the\ncontrary, the attorney general may redisclose any such information if\nnecessary for the administration or enforcement of this article.\n