§ 23-71-2. 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 of an equity interest of ten percent
(10%) 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; (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
constitutes 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 one billion dollars ($1,000,000,000) where the arrangement
requires that the 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 §â€‚23-71-3.
(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)(1) "Tobacco product manufacturer� means an entity that after the date of enactment of
this chapter directly (and not exclusively through any affiliate):
(i) Manufactures cigarettes anywhere that the manufacturer intends to be sold in the United
States, including cigarettes intended to be sold in the United States through an importer,
except where the 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 the 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 the cigarettes does not market or advertise the 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 subdivision (i) or (ii).
(2) The term "tobacco product manufacturer� does not include an affiliate of a tobacco
product manufacturer unless the affiliate itself falls within any of (a)(1)(i) — (iii).
(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 or unstamped roll your own containers. The
division of taxation shall promulgate any regulations that are necessary to ascertain
the amount of state excise tax paid on the cigarettes of the tobacco product manufacturer
for each year.