2013 California Health and Safety Code 104556 – The definitions contained in this section shall govern the…
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The definitions contained in this section shall govern the
construction of this article.
(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 thereof, of 10 percent 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 this section. "Cigarette" also 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."
(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 subdivision (b) of Section 104557.
(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) "Tobacco product manufacturer" means an entity that after the
date of enactment of this article directly, and not exclusively
through any affiliate:
(1) 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 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); or
(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; or
(3) Becomes a successor of an entity described in paragraph (1) or
(2).
The term "tobacco product manufacturer" shall not include an
affiliate of a tobacco product manufacturer unless the affiliate
itself falls within any of paragraphs (1) to (3) of this subdivision.
(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. The State
Board of Equalization shall adopt any regulations as are necessary to
ascertain the amount of state excise tax paid on the cigarettes of
the tobacco product manufacturer for each year.