2019 New York Laws
PBH - Public Health
Article 13-G - Tobacco Escrow Funds
1399-OO - Definitions.

§  1399-oo.  Definitions.  As used in this article the following terms
shall mean:
  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. Solely for purposes  of  this  definition,
the  term "owns," "is owned" and "ownership" mean ownership of an equity
interest, or the equivalent thereof, of ten percent  or  more,  and  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  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;  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  paragraph  (a) 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  shall  constitute  one  individual
"cigarette."
  5. "Master settlement agreement" means the settlement  agreement  (and
related  documents)  entered  into  on  November  twenty-third, nineteen
hundred ninety-eight by the state  and  leading  United  States  tobacco
product   manufacturers.   A  copy  of  said  agreement,  including  any
amendments thereto, shall be kept on file by the attorney  general,  who
shall  make  it  available  for  inspection  and copying pursuant to the
provisions of article six of the public officers law.
  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 paragraph (b) of subdivision
two of section thirteen hundred ninety-nine-pp of this article.
  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 that after the
effective date of this article directly (and not exclusively through any
affiliate):
  (a) manufacturers 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 subsections 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);
  (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 paragraph (a) or (b)
of this subdivision.
The  term  "tobacco product manufacturer" shall not include an affiliate
of a tobacco product manufacturer unless  such  affiliate  itself  falls
within  any  of  the  provisions  of  paragraph  (a), (b) or (c) of this
subdivision.
  10. "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 bearing the  excise  tax  stamp  of  the
state,  or  on  "roll-your-own"  tobacco containers. The commissioner of
taxation and finance shall promulgate such regulations as are  necessary
to  ascertain  the amount of state excise tax paid on the cigarettes and
roll-your-own tobacco of such  tobacco  product  manufacturer  for  each
year.  Notwithstanding  any  other  provision  of  law,  a  failure of a
cigarette tax agent or distributor licensed  pursuant  to  section  four
hundred  seventy-two  of the tax law to provide any information required
by such regulations shall be deemed a violation of  the  regulations  of
the  commissioner  of  taxation  and  finance  promulgated under article
twenty of the tax law. Notwithstanding  any  provision  of  law  to  the
contrary,  the commissioner of taxation and finance shall provide to the
attorney general any information necessary for  the  administration  and
enforcement  of this article, including: (a) returns filed in accordance
with article twenty or  twenty-eight  of  the  tax  law  (or  any  other
provision  of  the  tax law providing for an excise tax on cigarettes or
roll-your-own tobacco); and (b) in the event the commissioner is  unable
to ascertain the identity of the applicable tobacco product manufacturer
with  respect  to particular cigarettes or roll-your-own tobacco sold in
the  state,  the  number  and  brand  names  of   such   cigarettes   or
roll-your-own  tobacco,  the identity of the person from whom the excise
tax on such cigarettes or roll-your-own tobacco was collected,  and  all
other available information relating to such cigarettes or roll-your-own
tobacco, to be used by the attorney general to ascertain the identity of
such  tobacco  product  manufacturer  and  for  the  administration  and
enforcement of this article. Notwithstanding any provision of law to the
contrary, the attorney general may redisclose any  such  information  if
necessary for the administration or enforcement of this article.