Pennsylvania Act 2004-114 — TOBACCO SETTLEMENT AGREEMENT ACT - PROVIDING FOR REQUIREMENTS

Act text

TOBACCO SETTLEMENT AGREEMENT ACT - PROVIDING FOR REQUIREMENTS
                 Act of Nov. 19, 2004, P.L. 870, No. 114              Cl. 72
                             Session of 2004
                               No. 2004-114

     SB 1149

                                  AN ACT

     Amending the act of June 22, 2000 (P.L.394, No.54), entitled "An
        act requiring certain tobacco product manufacturers to place
        certain moneys into an escrow fund; conferring powers and
        duties upon the Attorney General and the Department of
        Revenue; and imposing penalties," further providing for
        requirements.

        The General Assembly of the Commonwealth of Pennsylvania
     hereby enacts as follows:

        Section 1.  Section 4(b) of the act of June 22, 2000
     (P.L.394, No.54), known as the Tobacco Settlement Agreement Act,
     is amended to read:
      Section 4.  Requirements.
        * * *
        (b)  Funds in escrow.--A tobacco product manufacturer that
     places funds into escrow under subsection (a)(2) shall receive
     the interest or other appreciation on such funds as earned. The
     funds themselves shall be released from escrow only under the
     following circumstances:
            (1)  To pay a judgment or settlement on any released
        claim brought against such tobacco product manufacturer by
        the Commonwealth or any releasing party located or residing
        in this Commonwealth. Funds shall be released from escrow
        under this paragraph in the order in which they were placed
        into escrow and only to the extent and at the time necessary
        to make payments required under such judgment or settlement.
            [(2)  To the extent that a tobacco product manufacturer
        establishes that the amount it was required to place into
        escrow in a particular year was greater than the
        Commonwealth's allocable share of the total payments that the
        manufacturer would have been required to make in that year
        under the Master Settlement Agreement had it been a
        participating manufacturer, as such payments are determined
        pursuant to section IX(i)(2) of the Master Settlement
        Agreement and before any of the adjustments or offsets
        described in section IX(i)(3) of the Master Settlement
        Agreement other than the inflation adjustment, the excess
        shall be released from escrow and revert back to such tobacco
        product manufacturer.]
            (2.1)  To the extent that a tobacco product manufacturer
        establishes that the amount it was required to place into
        escrow on account of units sold in this Commonwealth in a
        particular year was greater than the Master Settlement
        Agreement payments, as determined pursuant to section IX(i)
        of that agreement including after final determination of all
        adjustments, that such manufacturer would have been required
        to make on account of such units sold had it been a
        participating manufacturer, the excess shall be released from
        escrow and shall revert back to such tobacco product
        manufacturer. The provisions of this paragraph are
        nonseverable. If any provision of this paragraph or its
        application to any person or circumstance is held invalid,
        the remaining provisions or applications of this paragraph
        are void.
            (2.2)  To the extent that a tobacco product manufacturer
        establishes that the amount it was required to place into
        escrow in a particular year was greater than the
        Commonwealth's allocable share of the total payments that the
        manufacturer would have been required to make in that year
        under the Master Settlement Agreement had it been a
        participating manufacturer, as such payments are determined
        pursuant to section IX(i)(2) of the Master Settlement
        Agreement and before any of the adjustments or offsets
        described in section IX(i)(3) of the Master Settlement
        Agreement other than the inflation adjustment, the excess
        shall be released from escrow and revert back to such tobacco
        product manufacturer.
            (3)  To the extent not released from escrow under
        [paragraph (1) or (2)] this subsection, funds shall be
        released from escrow and revert back to the tobacco product
        manufacturer 25 years after the date on which they were
        placed into escrow.
        * * *
        Section 2.  If section 4(b)(2.1) of the act or its
     application to any person or circumstance is held invalid by a
     court of competent jurisdiction and if the decision has become
     final either because of expiration of a period for appellate
     review or because of a decision of a court of last resort, the
     Attorney General shall transmit to the Legislative Reference
     Bureau notice of the holding and its finality for publication in
     the Pennsylvania Bulletin.
        Section 3.  This act shall take effect as follows:
            (1)  The addition of section 4(b)(2.2) of the act shall
        take effect upon publication of the notice under section 2 of
        this act.
            (2)  The remainder of this act shall take effect
        immediately.

     APPROVED--The 19th day of November, A. D. 2004.

     EDWARD G. RENDELL