Definitions

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Section 1. As used in this chapter, the following words shall have the following meanings:-

''Adjusted for inflation'', increased in accordance with the formula for inflation adjustment set forth in Exhibit C to the Master Settlement Agreement.

''Affiliate'', 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 per cent or more; and the term ''person'' means an individual, partnership, committee, association, corporation or any other organization or group of persons.

''Allocable share'', allocable share as that term is defined in the Master Settlement Agreement.

''Cigarette'', 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; (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; or (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 clause (a) of this definition. The term ''cigarette'' includes ''roll-your-own'', so-called, which is any tobacco that, 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''.

''Master Settlement Agreement'', the settlement agreement, and related documents, entered into on November 23, 1998 by the commonwealth and leading United States tobacco product manufacturers.

''Qualified escrow fund'', 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 $1,000,000,000 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 clause (b) of section 2.

''Released claims'', released claims as that term is defined in the Master Settlement Agreement.

''Releasing parties'', releasing parties as that term is defined in the Master Settlement Agreement.

''Tobacco product manufacturer'', an entity that directly, and not exclusively through any affiliate:

(a) 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 if the manufacturer of such cigarettes does not market or advertise such cigarettes in the United States);

(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; or

(c) becomes a successor of an entity described in clause (a) or (b).

The term ''Tobacco product manufacturer'' shall not include an affiliate of a tobacco product manufacturer unless such affiliate itself falls within clauses (a) to (c), inclusive.

''Units sold'', the number of individual cigarettes sold in the commonwealth by the applicable tobacco product manufacturer, whether directly or through a distributor, retailer or similar intermediary during the year in question, as measured by excise collected by the commonwealth on packs bearing the excise stamp of the commonwealth, or roll-your-own tobacco containers. The department of revenue shall promulgate such regulations as are necessary to ascertain the amount of state excise paid on the cigarettes of such tobacco product manufacturer for each year.


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