Chapter 707
AN ACT
HB 3454
Relating to tobacco; amending ORS 323.800.
Be It Enacted by the People of
the State of Oregon:
SECTION 1.
ORS 323.800 is amended to read:
323.800. As used in ORS
323.800 to 323.806:
(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)(a) “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.
(b) For purposes of
defining “affiliate”:
(A) The terms “owns,” “is
owned” and “ownership” mean ownership of an equity interest, or the equivalent
thereof, of 10 percent or more; and
(B) 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)(a) “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 paper or in any substance not containing tobacco;
(B) Tobacco, in any
form, that is functional in the product and that 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 that, 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
subparagraph (A) of this paragraph.
(b) The term “cigarette”
includes “roll-your-own tobacco” (i.e., 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 paragraph, 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 23, 1998, by the State of Oregon and leading United States tobacco
product manufacturers.
(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 $1 billion 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 who is placing
the funds into escrow from using, accessing or directing the use of the
escrowed funds’ principal except as consistent with ORS 323.806 (2)(b).
(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)(a) “Tobacco product
manufacturer” means an entity that, after October 23, 1999, 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 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
(C) Becomes a successor
of an entity described in subparagraph (A) or (B) of this paragraph.
(b) The term “tobacco
product manufacturer” does not include an affiliate of a tobacco product
manufacturer unless such affiliate is itself a tobacco product manufacturer
under paragraph (a)(A), (B) or (C) of this subsection.
(10) “Units sold” means
the number of individual cigarettes sold in the State of Oregon 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 of Oregon
on roll-your-own tobacco containers or on packs [(or roll-your-own tobacco containers)] bearing the excise tax stamp
of this state. The Department of Revenue shall promulgate such rules as are
necessary to ascertain the amount of state excise tax paid on the cigarettes of
such tobacco product manufacturer for each year.
Approved by the Governor June 28, 2007
Filed in the office of Secretary of State July 2, 2007
Effective date January 1, 2008
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