Definitions for KRS 131.600 to 131.630

As used in KRS 131.600 to 131.630:
(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) "Affiliate" means a person who directly or indirectly own s 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, o f ten
percent (10%) or more, and 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) "Brand family" means 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, kings, and 100's, and includes any b rand 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;
(5) "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, 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 t obacco 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 (a) of this subsection.
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," nine -hundredths (0.09) ounces of "roll -
your-own" tobacco shall constitute one (1) individual "cigarette";
(6) "Commissioner" means the commissioner of the department;
(7) "Department" means the Department of Revenue;
(8) "Directory" means the directory as provided in KRS 131.610;
(9) "Distributor" means a person, wherever residing or located, who purchases nontax -
paid cigarettes and stores, sells, or otherwise disposes of the cigarettes. This
includes resident wholesalers, nonresident wholesalers, and unclassified acquirers
as defined in KRS 138.130;
(10) "Financial instrument" has the same meaning as in KRS 138.210;
(11) "Importer" has the same meaning as in KRS 248.750;
(12) "Master settlement agreement" means the settlement agreement and related
documents entered into on November 23, 1998, by Ke ntucky and leading United
States tobacco product manufacturers;
(13) "Nonparticipating manufacturer" means any tobacco product manufacturer that is
not a participating manufacturer;
(14) "Participating manufacturer" has the meaning given the term in Sectio n II(jj) of the
master settlement agreement and all amendments thereto;
(15) "Qualified escrow fund" means an escrow arrangement with a federally or state -
chartered financial institution having no affiliation with any tobacco product
manufacturer and havin g assets of at least one billion dollars ($1,000,000,000)
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 fun ds into escrow from using, accessing, or directing the
use of the funds' principal except as consistent with KRS 131.602(3);
(16) "Released claims" means released claims as that term is defined in the master
settlement agreement;
(17) "Releasing parties" m eans releasing parties as that term is defined in the master
settlement agreement;
(18) "Stamping agent" means a person, including a distributor, that is authorized to affix
tax stamps to packages or other containers of cigarettes pursuant to KRS 138.146 or
any person that is required to pay the excise tax imposed pursuant to KRS 138.155;
(19) "Tobacco product manufacturer" means an entity that after June 30, 2000, 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 settl ement 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 United States of cigarettes
manufactured anywhere that the manufacturer does not intend to be sold in the
United States; or
(c) Becomes a successor of an entity described in paragraph (a) or (b) of this
subsection.
The term "tobacco product manufacturer" shall not include an affiliate o f a tobacco
product manufacturer unless such affiliate itself falls within any of the definitions
described in paragraph (a), (b), or (c) of this subsection; and
(20) "Units sold" means the number of individual cigarettes sold in Kentucky 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 Kentucky on packs or "roll -your-own"
tobacco. The departmen t shall promulgate administrative regulations as are
necessary to ascertain the amount of state excise tax paid on the cigarettes of the
tobacco product manufacturer for each year.