Illinois Administrative Code › Title 86 - REVENUE › Part 445 - TOBACCO PRODUCT MANUFACTURERS' ESCROW ACT › Section 445.10 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
"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 10% or more, and the term "person" means an individual,
				partnership, committee, association, corporation, or any other organization or
				group of persons.
"Distributor" means any and each of the following:
Any person engaged in the business of selling cigarettes in
				this State who brings or causes to be brought into this State from outside this
				State any original packages of cigarettes, on which original packages there is
				no authorized evidence underneath a sealed transparent wrapper showing that the
				tax liability imposed by the Cigarette Tax Act has been paid or assumed by the
				out-of-State seller of such cigarettes, for sale or other disposition in the
				course of such business.
Any person who makes, manufactures or fabricates cigarettes in
				this State for sale in this State.
Any person who makes, manufactures or fabricates cigarettes
				outside this State, which cigarettes are placed in original packages contained
				in sealed transparent wrappers, for delivery or shipment into this State, and
				who elects to qualify and is accepted by the Department as a distributor under
				Section 4b of the Cigarette Tax Act.
"Master Settlement Agreement" means the settlement agreement
				(and related documents) entered into on November 23, 1998 by the State of
				Illinois and leading United States tobacco product manufacturers.
"Participating manufacturer" means a tobacco product
				manufacturer who participates in the Master Settlement Agreement as provided in
				Section II(jj) of the Master Settlement Agreement.
"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 $1,000,000,000
				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 funds into escrow from using,
				accessing, or directing the use of the funds' principal except as consistent
				with subdivision (a)(2)(B) of Section 15 of the Tobacco Product Manufacturers'
				Escrow Act.
"Tobacco product manufacturer":
means any entity that, after June 30, 1999, directly (and not
				exclusively through any affiliate):
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);
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 becomes a successor of an entity described in
				this definition.
does not mean an affiliate of a tobacco product manufacturer
				unless the affiliate itself falls within this definition.
"Unit sold" means an individual cigarette sold in the State of
				Illinois 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 packs bearing the excise tax stamp of the State.