35 Pa. Stat. § 5702.102

Current through Pa Acts 2024-53, 2024-56 through 2024-92

Section 5702.102 - [See Note] Definitions

The following words and phrases when used in this act shall have the meanings given to them in this section unless the context clearly indicates otherwise:

"Adjusted for inflation." Increased in accordance with the formula for inflation adjustment set forth in Exhibit C of the Master Settlement Agreement.

"Affiliate." A person who, directly or indirectly, owns or controls, is owned or controlled by, or is under common ownership or control with another person. For purposes of this definition, the terms " owns," "is owned" and " ownership" shall mean ownership of an equity interest, or its equivalent, of 10% or more.

"Allocable share." As that term is defined in the Master Settlement Agreement.

"Brand family." All styles of cigarettes sold under the same trademark and differentiated from one another by means of additional modifiers or descriptors, including, but not limited to, "menthol," " lights," "kings" and "100s." The term includes any use of a brand name, alone or in conjunction with any other word, trademark, logo, symbol, motto, selling message, recognizable pattern of colors or any other indicia of product identification identical or similar to or identifiable with a previously known brand of cigarettes.

"Cigarette." Any product that contains nicotine, is intended to be burned or heated under ordinary conditions of use and consists of or contains any of the following:

(1) Any roll of tobacco wrapped in paper or in any substance not containing tobacco.

(2) 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.

(3) 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 (1).

(4) Any "roll-your-own," which means 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, 0.09 ounces of "roll-your-own" tobacco shall constitute one individual cigarette.

"Cigarette stamping agent." Any person licensed as such under Article XII of the act of March 4, 1971 (P.L. 6, No. 2), known as the Tax Reform Code of 1971.

"Department." The Department of Revenue of the Commonwealth.

"Directory." The listing of cigarette brands and manufacturers developed by the Attorney General under section 301.

"Master Settlement Agreement." The settlement agreement and related documents entered into on November 23, 1998, by the Commonwealth and leading United States tobacco product manufacturers and approved by the court in Commonwealth v. Philip Morris, April Term, 1997, No. 2443 (C.P. Philadelphia County), on January 13, 1999.

"Nonparticipating manufacturer." Any tobacco product manufacturer that is not a participating manufacturer.

"Participating manufacturer." A tobacco product manufacturer that is a party to the Master Settlement Agreement.

"Person." Any individual, unincorporated association, corporation, limited liability corporation, joint stock company, group, committee, agency, syndicate, trust or trustee, receiver, fiduciary, partnership or conservator. Whenever used in any section of this act to establish or impose penalties, the term "person" when applied to a partnership, unincorporated association or other joint venture means the partners or members thereof and when applied to a corporation means all officers and directors thereof.

"Qualified escrow fund." An escrow arrangement with a federally chartered or State-chartered financial institution that has no affiliation with any tobacco product manufacturer and has assets of at least $1,000,000,000 in which the escrow arrangement:

(1) requires that the financial institution hold the principal of the escrowed funds for the benefit of releasing parties as that term is defined in the Master Settlement Agreement; and

(2) prohibits the tobacco product manufacturer placing the funds into escrow from using, accessing or directing the use of the principal of the funds except as consistent with section 4 of the act of June 22, 2000 (P.L. 394, No. 54) , known as the Tobacco Settlement Agreement Act. "Released claims." As that term is defined in the Master Settlement Agreement.

"Sell" or "sold." The term includes sales made directly or through a distributor, retailer or similar intermediary.

"Tobacco product manufacturer."

(1) A person that directly and not exclusively through any affiliate:

(i) 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 the 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 the 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 the cigarettes does not market or advertise the 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 a person described in subparagraph (i) or (ii).

(2) The term shall not include an affiliate of a tobacco product manufacturer unless the affiliate itself falls under paragraph (1)(i), (ii) or (iii). "Tobacco Settlement Agreement Act." The act of June 22, 2000 (P.L. 394, No. 54) , known as the Tobacco Settlement Agreement Act.

"Units sold." The number of individual cigarettes sold in this Commonwealth by the applicable tobacco product manufacturer during the year in question, as measured by taxes collected by the Commonwealth on packs bearing the tax stamp of the Commonwealth required under section 1215 of the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971; by taxes collected by theCommonwealth on "roll-your-own" tobacco containers which are notrequired to have a tax stamp under section 1215 of the Tax Reform Code of 1971 ; and by taxes collected by the Commonwealth on cigarettes soldwithout a tax stamp, when authorized by the Department of Revenue under section 1215(h) of the Tax Reform Code of1971.

35 P.S. § 5702.102

Amended by P.L. TBD 2015 No. 95, § 1, eff. until 60 days after the Office of Attorney General publishes notice of consent under section 2(2)(ii) of the 2023 act.

2003, Dec. 30, P.L. 441, No. 64, § 102, imd. effective.

This section is set out more than once due to postponed, multiple, or conflicting amendments.