As used in this part 2:
(1) "Adjusted for inflation" means increased in accordance with
the formula for inflation adjustment set forth in exhibit C to the master
(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 terms
"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
(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:
(I) Any roll of tobacco wrapped in paper or in any substance not containing
(II) 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
(III) 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 (I) of this paragraph (a).
(b) The term "cigarette" includes roll-your-own, i.e., 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.
(c) For purposes of this definition of "cigarettes", 0.09 ounces
of roll-your-own tobacco shall constitute one individual "cigarette".
(5) "Master settlement agreement" means the settlement agreement
and related documents dated November 23, 1998, entered into by the state
and leading United States tobacco product manufacturers and attached as
exhibit A to the consent decree approved by the district court for the
city and county of Denver on November 25, 1998, in civil action no. 97CV3432.
(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
section 39-28-203 (2).
(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
July 1, 1999, directly and not exclusively through any affiliate:
(I) Manufactures anywhere cigarettes which the manufacturer intends to be
sold in the United States, including cigarettes intended to be sold in
the United States through an importer; provided, however, that an entity
that manufactures cigarettes that it intends to be sold in the United
States shall not be considered a tobacco product manufacturer under this
paragraph (a) if:
(A) Such cigarettes are sold in the United States exclusively through an importer
that 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 section II(z) of the master
settlement agreement; and
(B) The manufacturer of such cigarettes does not market or advertise such
cigarettes in the United States;
(II) 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
(III) Becomes a successor of an entity described in subparagraph (I) or (II)
of this paragraph (a).
(b) "Tobacco product manufacturer" does not include an affiliate
of a tobacco product manufacturer unless such affiliate itself falls within
subparagraphs (I) through (III) of paragraph (a) of this subsection (9).
(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 containers of roll-your-own tobacco, and on packs of cigarettes
bearing the excise tax stamp of the state. The department 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.