Sec. 4-28h. Regulation of certain cigarette manufacturers under tobacco settlement agreement: Definitions.
Sec. 4-28h. Regulation of certain cigarette manufacturers under tobacco settlement agreement: Definitions. As used in sections 4-28h to 4-28j, inclusive:
(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. The
terms "owns", "is owned" and "ownership" mean ownership of an equity interest, or
the equivalent thereof, of ten per cent or more. 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) "Cigarette" means any product that contains nicotine, is intended to be burned
or heated under ordinary conditions of use, and consists of or contains (A) any roll of
tobacco wrapped in paper or in any substance not containing tobacco; or (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 labeling, is likely to be offered to, or
purchased by, consumers as a cigarette; and (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 packaging and labeling, is likely to be offered to, or purchased by,
consumers as a cigarette described in subparagraph (A) of this subdivision. The term
"cigarette" includes roll-your-own tobacco, meaning 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 shall constitute one individual
"cigarette";
(5) "Master Settlement Agreement" means the settlement agreement executed November 23, 1998, by the state of Connecticut and leading tobacco product manufacturers,
entitled "State of Connecticut v. Philip Morris, et al.";
(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 the provisions of subsection (b) of section 4-28i;
(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) "Tobacco product manufacturer" means an entity, or its successor, that, after
July 1, 2000, directly and not exclusively through an affiliate (A) manufactures cigarettes
anywhere 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 that
an entity that manufactures cigarettes that it intends to be sold in the United States shall
not be considered to be a tobacco product manufacturer under this subparagraph (A) if
(i) 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 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 (ii) the manufacturer of such cigarettes
does not market or advertise such cigarettes in the United States; or (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 United States. A tobacco product
manufacturer shall not include an affiliate of a tobacco product manufacturer unless such
affiliate itself meets the criteria specified in subparagraph (A) or (B) of this subdivision;
(10) "Units sold" means the number of individual cigarettes sold in this state by
the applicable tobacco product manufacturer, whether directly or through a distributor,
dealer or similar intermediary or intermediaries during the year in question, as measured
by excise taxes collected by this state on packs, or on "roll-your-own" tobacco containers, bearing the excise tax stamp of the state. The Department of Revenue Services shall
adopt such regulations, in accordance with the provisions of chapter 54, as are necessary
to ascertain the amount of state excise tax paid on the cigarettes of such tobacco product
manufacturer for each year.
(P.A. 00-208, S. 1, 4; P.A. 01-2, S. 3, 4.)
History: P.A. 00-208 effective July 1, 2000; P.A. 01-2 amended Subdiv. (9) to make a technical change, effective March
30, 2001.