HB 503: "An Act relating to the tobacco product Master Settlement Agreement; and providing for an effective date."
00 HOUSE BILL NO. 503 01 "An Act relating to the tobacco product Master Settlement Agreement; and providing 02 for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 45.53.020(b) is amended to read: 05 (b) A tobacco product manufacturer that places money into escrow under 06 (a)(2) of this section is entitled to receive the interest or other appreciation on such 07 money as earned. Such money itself shall be released from escrow only under the 08 following circumstances: 09 (1) to pay a judgment or settlement on a released claim brought against 10 such tobacco product manufacturer by this state or a releasing party located or residing 11 in this state; the funds shall be released from escrow under this paragraph in the order 12 in which they were placed into escrow and only to the extent and at the time necessary 13 to make payments required under the judgment or settlement; 14 (2) to the extent that the tobacco product manufacturer establishes that
01 the amount that it was required to place into escrow on account of units sold in the 02 state in a particular year was greater than the Master Settlement Agreement 03 payments, as determined under sec. IX(i) of the Master Settlement Agreement, 04 including, after final determination of all adjustments, payments that the 05 manufacturer would have been required to make on account of those units had it 06 been a participating manufacturer [STATE'S ALLOCABLE SHARE OF THE 07 TOTAL PAYMENTS THAT THE MANUFACTURER WOULD HAVE BEEN 08 REQUIRED TO MAKE IN THAT YEAR UNDER THE MASTER SETTLEMENT 09 AGREEMENT HAD IT BEEN A PARTICIPATING MANUFACTURER, AS SUCH 10 PAYMENTS ARE DETERMINED UNDER SEC. IX(i)(2) OF THE MASTER 11 SETTLEMENT AGREEMENT AND BEFORE ANY OF THE ADJUSTMENTS OR 12 OFFSETS DESCRIBED IN SEC. IX(i)(3) OF THAT AGREEMENT OTHER THAN 13 THE INFLATION ADJUSTMENT], the excess shall be released from escrow and 14 revert back to that tobacco product manufacturer; or 15 (3) to the extent not released from escrow under (1) or (2) of this 16 subsection [SUBSECTIONS], funds placed into escrow shall be released from escrow 17 and revert back to the tobacco product manufacturer 25 years after the date on which 18 they were placed into escrow. 19 * Sec. 2. AS 45.53.020(b) is repealed and reenacted to read: 20 (b) A tobacco product manufacturer that places money into escrow under 21 (a)(2) of this section is entitled to receive the interest or other appreciation on such 22 money as earned. Such money itself shall be released from escrow only under the 23 following circumstances: 24 (1) to pay a judgment or settlement on a released claim brought against 25 such tobacco product manufacturer by this state or a releasing party located or residing 26 in this state; the funds shall be released from escrow under this paragraph in the order 27 in which they were placed into escrow and only to the extent and at the time necessary 28 to make payments required under the judgment or settlement; 29 (2) to the extent not released from escrow under (1) of this subsection, 30 funds placed into escrow shall be released from escrow and revert back to the tobacco 31 product manufacturer 25 years after the date on which they were placed into escrow.
01 * Sec. 3. AS 45.53.020(b) is repealed and reenacted to read: 02 (b) A tobacco product manufacturer that places money into escrow under 03 (a)(2) of this section is entitled to receive the interest or other appreciation on such 04 money as earned. Such money itself shall be released from escrow only under the 05 following circumstances: 06 (1) to pay a judgment or settlement on a released claim brought against 07 such tobacco product manufacturer by this state or a releasing party located or residing 08 in this state; the funds shall be released from escrow under this paragraph in the order 09 in which they were placed into escrow and only to the extent and at the time necessary 10 to make payments required under the judgment or settlement; 11 (2) to the extent that the tobacco product manufacturer establishes that 12 the amount that it was required to place into escrow in a particular year was greater 13 than the state's allocable share of the total payments that the manufacturer would have 14 been required to make in that year under the master settlement agreement had it been a 15 participating manufacturer, as such payments are determined under sec. IX(i)(2) of the 16 master settlement agreement and before any of the adjustments or offsets described in 17 sec. IX(i)(3) of that agreement other than the inflation adjustment, the excess shall be 18 released from escrow and revert back to that tobacco product manufacturer; or 19 (3) to the extent not released from escrow under (1) or (2) of this 20 subsection, funds placed into escrow shall be released from escrow and revert back to 21 the tobacco product manufacturer 25 years after the date on which they were placed 22 into escrow. 23 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 24 read: 25 CONDITIONAL EFFECT. (a) Section 2 of this Act takes effect only if 26 AS 45.53.020(b)(2), as amended in sec. 1 of this Act, is held by a court of competent 27 jurisdiction to be unconstitutional. 28 (b) Section 3 of this Act takes effect only if AS 45.53.020(b)(2), as amended in sec. 1 29 and in sec. 2 of this Act, are held by a court of competent jurisdiction to be unconstitutional. 30 * Sec. 5. Section 1 of this Act takes effect July 1, 2004. 31 * Sec. 6. If sec. 2 of this Act takes effect under sec. 4(a) of this Act, it takes effect on the
01 day after the date of a final order or decision by a court of competent jurisdiction holding 02 AS 45.53.020(b)(2), as amended in sec. 1 of this Act, to be unconstitutional. 03 * Sec. 7. If sec. 3 of this Act takes effect under sec. 4(b) of this Act, it takes effect on the 04 day after the date of a final order or decision by a court of competent jurisdiction holding 05 AS 45.53.020(b)(2), as amended in sec. 2 of this Act, to be unconstitutional.