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91_HB4210
LRB9111228DJcd
1 AN ACT concerning tobacco proceeds.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Tobacco Product Manufacturers' Escrow
5 Act is amended by changing Section 10 as follows:
6 (30 ILCS 168/10)
7 Sec. 10. Definitions. As used in this Act:
8 "Adjusted for inflation" means increased in accordance
9 with the formula for inflation adjustment as set forth in
10 Exhibit C to the Master Settlement Agreement.
11 "Affiliate" means a person who directly or indirectly
12 owns or controls, is owned or controlled by, or is under
13 common ownership or control with, another person. Solely for
14 purposes of this definition, the terms "owns", "is owned",
15 and "ownership" mean ownership of an equity interest, or the
16 equivalent thereof, of 10% or more, and the term "person"
17 means an individual, partnership, committee, association,
18 corporation, or any other organization or group of persons.
19 "Allocable share" means Allocable Share as that term is
20 defined in the Master Settlement Agreement.
21 "Cigarette" means any product that contains nicotine, is
22 intended to be burned or heated under ordinary conditions of
23 use, and consists of or contains:
24 (1) any roll of tobacco wrapped in paper or in any
25 substance not containing tobacco; or
26 (2) tobacco, in any form, that is functional in the
27 product, which, because of its appearance, the type of
28 tobacco used in the filler, or its packaging and
29 labeling, is likely to be offered to, or purchased by,
30 consumers as a cigarette; or
31 (3) any roll of tobacco wrapped in any substance
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1 containing tobacco which, because of its appearance, the
2 type of tobacco used in the filler, or its packaging and
3 labeling, is likely to be offered to, or purchased by,
4 consumers as a cigarette described in item (1) of this
5 definition.
6 "Cigarette" also means "roll-your-own" tobacco (i.e., any
7 tobacco which, because of its appearance, type, packaging, or
8 labeling is suitable for use and likely to be offered to, or
9 purchased by, consumers as tobacco for making cigarettes).
10 For purposes of this Act, 0.09 ounces of "roll-your-own"
11 tobacco shall constitute one individual cigarette.
12 "Master Settlement Agreement" means the settlement
13 agreement (and related documents) entered into on November
14 23, 1998 by the State of Illinois and leading United States
15 tobacco product manufacturers.
16 "Qualified escrow fund" means an escrow arrangement with
17 a federally or State chartered financial institution having
18 no affiliation with any tobacco product manufacturer and
19 having assets of at least $1,000,000,000 where such
20 arrangement requires that such financial institution hold the
21 escrowed funds' principal for the benefit of releasing
22 parties and prohibits the tobacco product manufacturer
23 placing the funds into escrow from using, accessing, or
24 directing the use of the funds' principal except as
25 consistent with subdivision (a)(2)(B) of Section 15 of this
26 Act.
27 "Released claims" means Released Claims as that term is
28 defined in the Master Settlement Agreement.
29 "Releasing parties" means Releasing Parties as that term
30 is defined in the Master Settlement Agreement.
31 "Tobacco Product Manufacturer" means any entity that,
32 after the effective date of this Act directly (and not
33 exclusively through any affiliate):
34 (1) manufactures cigarettes anywhere that such
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1 manufacturer intends to be sold in the United States,
2 including cigarettes intended to be sold in the United
3 States through an importer (except where such importer is
4 an original participating manufacturer (as that term is
5 defined in the Master Settlement Agreement) that will be
6 responsible for the payments under the Master Settlement
7 Agreement with respect to such cigarettes as a result of
8 the provisions of subsection II(mm) of the Master
9 Settlement Agreement and that pays the taxes specified in
10 subsection II(z) of the Master Settlement Agreement, and
11 provided that the manufacturer of such cigarettes does
12 not market or advertise such cigarettes in the United
13 States);
14 (2) is the first purchaser anywhere for resale in
15 the United States of cigarettes manufactured anywhere
16 that the manufacturer does not intend to be sold in the
17 United States; or
18 (3) becomes a successor of an entity described in
19 items (1) or (2).
20 "Tobacco Product Manufacturer" does not mean an affiliate of
21 a tobacco product manufacturer unless the affiliate itself
22 falls within any of items (1) through (3) of this
23 definition.
24 "Units sold" means the number of individual cigarettes
25 sold in the State of Illinois by the applicable tobacco
26 product manufacturer (whether directly or through a
27 distributor, retailer, or similar intermediary or
28 intermediaries) during the year in question, as measured by
29 excise taxes collected by the State on packs (or
30 "roll-your-own" tobacco containers) bearing the excise tax
31 stamp of the State. The Illinois Department of Revenue shall
32 promulgate such rules as are necessary to ascertain the
33 amount of State excise tax paid on the cigarettes of such
34 tobacco product manufacturer for each year.
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1 (Source: P.A. 91-41, eff. 6-30-99.)