59-22-202 - Definitions. - Utah Statutes

59-22-202. Definitions.
As used in this part:
(1) "Adjusted for inflation" means increased in accordance with the formula for inflationadjustment set forth in Exhibit C to the Master Settlement Agreement.
(2) "Affiliate" means a person who directly or indirectly owns or controls, is owned orcontrolled by, or is under common ownership or control with, another person. Solely forpurposes of this definition, the terms "owns," "is owned" and "ownership" mean ownership of anequity interest, or the equivalent thereof, of 10% or more, and the term "person" means anindividual, partnership, committee, association, corporation or any other organization or group ofpersons.
(3) "Allocable share" means Allocable Share as that term is defined in the MasterSettlement Agreement.
(4) "Cigarette" means any product that contains nicotine, is intended to be burned orheated under ordinary conditions of use, and consists of or contains (a) any roll of tobaccowrapped in paper or in any substance not containing tobacco; or (b) tobacco, in any form, that isfunctional 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 itsappearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to beoffered to, or purchased by, consumers as a cigarette described in clause (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," 0.09ounces of "roll-your-own" tobacco shall constitute one individual "cigarette."
(5) "Master Settlement Agreement" means the settlement agreement (and relateddocuments) entered into on November 23, 1998, by the State and leading United States tobaccoproduct manufacturers.
(6) "Qualified escrow fund" means an escrow arrangement with a federally or Statechartered financial institution having no affiliation with any tobacco product manufacturer andhaving assets of at least $1,000,000,000 where such arrangement requires that such financialinstitution hold the escrowed funds' principal for the benefit of releasing parties and prohibits thetobacco product manufacturer placing the funds into escrow from using, accessing, or directingthe use of the funds' principal except as consistent with Subsection 59-22-203(2).
(7) "Released claims" means Released Claims as that term is defined in the MasterSettlement Agreement.
(8) "Releasing parties" means Releasing Parties as that term is defined in the MasterSettlement Agreement.
(9) (a) "Tobacco product manufacturer" means an entity that after the date of enactmentof this Act directly (and not exclusively through any affiliate):
(i) manufactures cigarettes anywhere that such manufacturer intends to be sold in theUnited 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 inthe Master Settlement Agreement) that will be responsible for the payments under the MasterSettlement Agreement with respect to such cigarettes as a result of the provisions of SubsectionII(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 doesnot market or advertise such cigarettes in the United States);
(ii) is the first purchaser anywhere for resale in the United States of cigarettesmanufactured anywhere that the manufacturer does not intend to be sold in the United States; or
(iii) becomes a successor of an entity described in Subsection (9)(a)(i) or (ii).
(b) "Tobacco product manufacturer" shall not include an affiliate of a tobacco productmanufacturer unless such affiliate itself falls within any Subsection (9)(a)(i) through (iii).
(10) "Units sold" means the number of individual cigarettes sold in the State by theapplicable tobacco product manufacturer (whether directly or through a distributor, retailer orsimilar intermediary or intermediaries) during the year in question, as measured by excise taxescollected by the State on packs (or "roll-your-own" tobacco containers). The State TaxCommission shall promulgate such regulations as are necessary to ascertain the amount of Stateexcise tax paid on the cigarettes of such tobacco product manufacturer for each year.

Amended by Chapter 53, 2004 General Session