sb 0453

CHAPTER 226

SB 453 – FINAL VERSION

AN ACT establishing a committee to study the tobacco master settlement agreement revenue stream to the state, and changing requirements for tobacco manufacturers not participating in the tobacco Master Settlement Agreement.

SPONSORS: Sen. Johnson, Dist 2

This bill establishes a committee to study the tobacco master settlement agreement revenue stream to the state.

The bill also changes requirements regarding escrow of funds by tobacco manufacturers not participating in the tobacco Master Settlement Agreement.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

Be it Enacted by the Senate and House of Representatives in General Court convened:

226:1 Committee Established. There is established a committee to study the tobacco master settlement agreement revenue stream to the state.

(b) Three members of the house of representatives, appointed by the speaker of the house.

II. Members of the committee shall receive mileage at the legislative rate when attending to the duties of the committee.

226:3 Duties. The committee shall study the current effects of the implementation of the tobacco master settlement agreement as to the revenue that is being allocated to the state on a fiscal year basis. The committee shall research and analyze methods that states are considering and/or implementing to maximize tobacco revenues to the states.

226:4 Chairperson; Quorum. The members of the study committee shall elect a chairperson from among the members. The first meeting of the committee shall be called by the first-named senate member. The first meeting of the committee shall be held within 45 days of the effective date of this section.

226:5 Report. The committee shall report its findings and any recommendations for proposed legislation to the senate president, the speaker of the house of representatives, the senate clerk, the house clerk, the governor, and the state library on or before November 1, 2004.

226:6 Master Settlement Agreement; Non-participating Tobacco Manufacturers; Escrow Requirement. Amend RSA 541-C:3, II(b) to read as follows:

(b) 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 the state in a particular year was greater than the [state's allocable share of the total payments that such manufacturer would have been required to make in that year under the Master Settlement Agreement (as 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 that Agreement other than the inflation adjustment)] 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 revert back to such tobacco product manufacturer; or

226:7 Master Settlement Agreement; Non-participating Tobacco Manufacturers; Escrow Requirement. RSA 541-C:3, II(b) is repealed and reenacted to read as follows:

(b) 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 state's allocable share of the total payments that such manufacturer would have been required to make in that year under the Master Settlement Agreement (as 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 that Agreement other than the inflation adjustment) had it been a participating manufacturer, the excess shall be released from escrow and revert back to such tobacco product manufacturer; or

226:8 Severability; Contingency. If RSA 541-C:3, II(b) as inserted by section 6 of this act is held by a court of competent jurisdiction to be unconstitutional, then subparagraph II(b) as inserted by section 6 shall be deemed to be repealed and section 7 of this act shall take effect. If RSA 541-C:3, II(b) is not held to be unconstitutional, section 7 of this act shall not take effect. Neither any holding of unconstitutionality nor the repeal of RSA 541-C:3, II(b) shall affect, impair, or invalidate any other portion of RSA 541-C:3, or the application of such section to any other person or circumstance, and such remaining portions of RSA 541-C:3 shall at all times continue in full force and effect.

226:9 New Paragraph; Master Settlement Agreement; Non-participating Tobacco Manufacturers; Escrow Requirement. Amend RSA 541-C:3, I by inserting after paragraph I the following new paragraph:

I-a. The payments required by subparagraph I(b) shall be made in quarterly installments during the year in which the sales covered by such deposits are made.

II. Section 7 of this act shall take effect as provided in section 8 of this act.

III. The remainder of this act shall take effect 60 days after its passage.

II. Section 7 shall take effect as provided in section 8.

III. Remainder shall take effect August 10, 2004.)