[30 Pa.B. 5619]
[Continued from previous Web Page]
North Carolina John McArthur
3116 Pleasant Plains Rd.
Apex, NC 27502Phone: 919-363-9913
FAX: 919-363-9914North Dakota None Northern Marianas None Ohio Ronald L. Motley, National Special Counsel
Joseph F. Rice, National Special Counsel
Ness, Motley, Loadholt, Richardson & Poole
151 Meeting Street
P.O. Box 1137
Charleston, SC 29402Phone: 843-720-9000
FAX: 843-720-9290Richard F. Scruggs, National Special Counsel
Scruggs, Millette, Bozeman & Dent, P.A.
734 Delmas Avenue
Pascagoula, MS 39567Phone: 228-762-6068
FAX: 228-762-1207Don W. Barrett, National Special Counsel
Barrett Law Offices
404 Court Square North, P.O. Box 987
Lexington, MS 39095Phone: 601-834-2376
FAX: 601-834-2628Steve W. Berman, Lead National Special Counsel
Steven C. Mitchell, National Special Counsel
Hagens & Berman, P.S.
1301 Fifth Avenue, Suite 2900
Seattle, WA 98101Phone: 206-623-7292
FAX: 206-623-0594Norman A. Murdock, Ohio Special Counsel
Murdock & Beck
Suite 400
700 Walnut St.
Cincinnati, OH 45202Phone: 513-345-8291
FAX: 513-345-8294John C. Murdock, Ohio Special Counsel
Jeffrey S. Goldenberg
Murdock & Goldenberg
Suite 400
700 Walnut St.
Cincinnati, OH 45202Phone: 513-345-8291
FAX: 513-345-8294Charles R. Saxbe, Lead Ohio Special Counsel
Chester, Willcox & Saxbe
17 South High St.
Suite 900
Columbus, OH 43215Phone: 614-221-4000
FAX: 614-221-4012Oklahoma Ronald L. Motley**
Joseph F. Rice**
Ness, Motley, Loadholt, Richardson & Poole
151 Meeting Street
P.O. Box 1137
Charleston, SC 29402Phone: 843-720-9000
FAX: 843-720-9290Richard F. Scruggs**
Scruggs, Millette, Bozeman & Dent, P.A.
734 Delmas Avenue
Pascagoula, MS 39567Phone: 228-762-6068
FAX: 228-762-1207Henry A. Meyer, III**
Pray, Walker, Jackman, Williamson & Marlar
211 North Robinson, Suite 1601
Oklahoma City, OK 73113Phone: 405-236-8911
FAX: 405-236-0011John W. Norman**
Norman , Edem, McNaughton & Wallace, P.A.
127 N.W. Tenth Street
Oklahoma City, OK 73103Phone: 405-272-0200
FAX: 405-235-2949David Riggs**
Riggs, Abney, Neal, Turpen, Orbison & Lewis, P.A.
502 West 6th Street
Tulsa, OK 74119Phone: 918-587-3161
FAX: 918-587-9708Preston Trimble**
231 S. Peters
Norman, OK 73069Phone: 405-321-8272
FAX: 405-321-9857** Individual names are for contract purposes only. Oregon Ronald L. Motley
Joseph F. RiceNess, Motley, Loadholt, Richardson & Poole
151 Meeting Street
P.O. Box 1137
Charleston, SC 29402Phone: 843-720-9000
FAX: 843-720-9290Richard F. Scruggs
Scruggs, Millette, Bozeman & Dent, P.A.
734 Delmas Avenue
Pascagoula, MS 39567Phone: 228-762-6068
FAX: 228-762-1207Thomas Balmer
Ater, Wynne, Hewitt, Dodson & Skerritt, LLP
222 S.W. Columbia, Suite 1800
Portland, OR 97201Phone: 503-266-1191
FAX: 503-266-0079Steve W. Berman
Hagens & Berman, P.S.
1301 Fifth Avenue, Suite 2900
Seattle, WA 98101Phone: 206-623-7292
FAX: 206-623-0594Robert B. Carey
Norton, Frickey & Associates
2301 East Pikes Peak
Colorado Springs, CO 80909Phone: 719-635-7131
FAX: 719-635-2920Pennsylvania Reeder R. Fox
Mark Lipowicz
Duane, Morris & Heckscher, LLP
One Liberty Place
Philadelphia, PA 19103-7396Phone: 215-979-1000
FAX: 215-979-1020Thomas L. Van Kirk
Stanley Yorsz
Buchanan Ingersoll, PC
One Oxford Centre
301 Grant Street
Pittsburgh, PA 15219-1410Phone: 412-562-8800
FAX: 412-562-1041Puerto Rico Ronald L. Motley
Joseph F. Rice
Ness, Motley, Loadholt, Richardson & Poole
151 Meeting Street
P.O. Box 1137
Charleston, SC 29402Phone: 843-720-9000
FAX: 843-720-9290Richard F. Scruggs
Scruggs, Millette, Bozeman & Dent, P.A.
734 Delmas Avenue
Pascagoula, MS 39567Phone: 228-762-6068
FAX: 228-762-1207Benjamin Acosta, Jr.
Law Offices of Benjamin Acosta, Jr.
331 Recinto Sur Street
San Juan, PR 00901Phone: 787-722-2363
FAX: 787-724-5970Law Offices of Juan A. Ramos
359 De Diego Ave.
Suite 601
San Juan, PR 00909Phone: 787-722-9090
FAX: 787-724-4391Rhode Island Ronald L. Motley
Joseph F. Rice
Ness, Motley, Loadholt, Richardson & Poole
151 Meeting Street
P.O. Box 1137
Charleston, SC 29402Phone: 843-720-9000
FAX: 843-720-9290Richard F. Scruggs
Scruggs, Millette, Bozeman & Dent, P.A.
734 Delmas Avenue
Pascagoula, MS 39567Phone: 228-762-6068
FAX: 228-762-1207Steve W. Berman
Hagens & Berman, P.S.
1301 Fifth Avenue, Suite 2900
Seattle, WA 98101Phone: 206-623-7292
FAX: 206-623-0594William M. Dolan, III
Brown, Rudnick, Freed & Gesmer
One Providence Washington Plaza
Providence, RI 02903Phone: 401-276-2600
FAX: 401-276-2601Richard M. Heimann
Lieff, Cabraser, Heimann & Bernstein
Embaracadero Center West
275 Battery Street, 30th Floor
San Francisco, CA 94111Phone: 415-956-1000
FAX: 415-956-1008South Carolina Ronald L. Motley
Joseph F. Rice
Ness, Motley, Loadholt, Richardson & Poole
151 Meeting Street
P.O. Box 1137
Charleston, SC 29402Phone: 843-720-9000
FAX: 843-720-9290South Dakota None Tennessee John McCarthur
3116 Pleasant Plains Rd.
Apex, NC 27502Phone: 919-363-9913
FAX: 919-363-9914Utah Ronald L. Motley
Joseph F. Rice
Ness, Motley, Loadholt, Richardson & Poole
151 Meeting Street
P.O. Box 1137
Charleston, SC 29402Phone: 843-720-9000
FAX: 843-720-9290Gary F. Bendinger
Giauque, Crockett, Bendinger & Peterson
170 South Main Street, Suite 400
Salt Lake City, UT 84101Phone:
FAX: 801-531-1486Steve Crockett
Giauque, Crockett, Bendinger & Peterson
170 South Main Street, Suite 400
Salt Lake City, UT 84101Phone: 801-533-8383
FAX: 801-531-1486Robert A. Peterson
Giauque, Crockett, Bendinger & Peterson
170 South Main Street, Suite 400
Salt Lake City, UT 84101Phone: 801-533-8383
FAX: 801-531-1486Vermont Ronald L. Motley
Joseph F. RiceNess, Motley, Loadholt, Richardson & Poole
151 Meeting Street
P.O. Box 1137
Charleston, SC 29402Phone: 843-720-9000
FAX: 843-720-9290Richard F. Scruggs
Scruggs, Millette, Bozeman & Dent, P.A.
734 Delmas Avenue
Pascagoula, MS 39567Phone: 228-762-6068
FAX: 228-762-1207Thomas Anderson
Sheehy, Brue, Gray & Furlong
Gateway Square
30 Main Street
Burlington, VT 05402Phone: 802-864-9891
FAX: 802-864-6815Steve W. Berman
Hagens & Berman, P.S.
1301 Fifth Avenue, Suite 2900
Seattle, WA 98101Phone: 206-623-7292
FAX: 206-623-0594Robert B. Carey
Norton , Frickey & Associates
2301 East Pikes Peak
Colorado Springs, CO 80909Phone: 719-635-7131
FAX: 719-635-2920Scot L. Kline
Miller, Eggleston & Cramer, LTD.
P.O. Box 1489
Burlington, VT 05402-1489Phone: 802-864-0880
FAX: 802-864-0328Virgin Islands Stephen C. Braverman
Buchanan Ingersoll, P.C.
11 Penn Center, 14th Floor
1835 Market Street
Philadelphia, PA 19103-2985Phone: 215-665-3864
FAX: 215-665-8760Virginia None Washington Joseph F. Rice
Ness, Motley, Loadholt, Richardson & Poole
151 Meeting Street
P.O. Box 1137
Charleston, SC 29402Phone: 843-720-9000
FAX: 843-720-9290Richard F. Scruggs
Scruggs, Millette, Bozeman & Dent, P.A.
734 Delmas Avenue
Pascagoula, MS 39567Phone: 228-762-6068
FAX: 228-762-1207Steve W. Berman
Hagens & Berman, P.S.
1301 Fifth Avenue, Suite 2900
Seattle, WA 98101Phone: 206-623-7292
FAX: 206-623-0594William J. Leedom
Bennett, Bigelow & Leedom
999 Third Avenue, Suite 2150
Seattle, WA 98101Phone: 206-622-5511
FAX: 206-622-8986Paul N. Luvera
Luvera, Barnett, Brindley, Beninger & Cunningham
6700 Columbia Center
701 Fifth Avenue, Suite 6700
Seattle, WA 98104Phone: 206-467-6090
FAX: 206-467-6961John W. Barrett
Barrett Law Offices
404 Court Square North
Lexington, MS 39095Phone: 601-834-2376
FAX: 601-834-2409West Virginia Ronald L. Motley
Joseph F. Rice
Susan Nial
Ness, Motley, Loadholt, Richardson & Poole
151 Meeting Street
P.O. Box 1137
Charleston, SC 29402Phone: 843-720-9000
FAX: 843-720-9290R. Edison Hill
Hill, Peterson, Carper, Bee & Deitzler
Northgate Business Park
500 Tracy Way
Charleston, WV 25311Phone: 304-345-5667
FAX: 304-345-1519Douglas B. Hunt
Hunt & Barber, L.C.
1116A Kanawha Boulevard East
Charleston, WV 25301Phone: 304-343-2999
FAX: 304-344-3516Scott S. Segal
810 Kanawha Boulevard East
Charleston, WV 25301Phone: 304-344-9100
FAX: 304-344-9105Wisconsin Thomas J. Basting, Sr.
David J. Macdougall
Brennan, Steil, Basting & Macdougall, S.C.
1 E. Milwaukee St.
P.O. Box 1148
Janesville, WI 53545-3011Phone: 608-756-4141
FAX: 608-756-9000Robert L. Habush (Lead Counsel)
Jeffrey P. Archibald
Habush, Habush, Davis & Rottier
777 E. Wisconsin Ave., #2300
Milwaukee, WI 53202Phone: 414-271-0900
FAX: 414-271-6854Robert D. Scott
Ross A. Anderson
Whyte, Hirschboeck, Dudek, S.C.
111 East Wisconsin Ave.
Milwaukee, WI 53202-7405Phone: 414-273-4000
FAX: 414-223-5000Wyoming None
EXHIBIT T
MODEL STATUTE Section __ . Findings and Purpose.1
(a) Cigarette smoking presents serious public health concerns to the State and to the citizens of the State. The Surgeon General has determined that smoking causes lung cancer, heart disease and other serious diseases, and that there are hundreds of thousands of tobacco-related deaths in the United States each year. These diseases most often do not appear until many years after the person in question begins smoking.
(b) Cigarette smoking also presents serious financial concerns for the State. Under certain health-care programs, the State may have a legal obligation to provide medical assistance to eligible persons for health conditions associated with cigarette smoking, and those persons may have a legal entitlement to receive such medical assistance.
(c) Under these programs, the State pays millions of dollars each year to provide medical assistance for these persons for health conditions associated with cigarette smoking.
(d) It is the policy of the State that financial burdens imposed on the State by cigarette smoking be borne by tobacco product manufacturers rather than by the State to the extent that such manufacturers either determine to enter into a settlement with the State or are found culpable by the courts.
(e) On ______ , 1998, leading United States tobacco product manufacturers entered into a settlement agreement, entitled the ''Master Settlement Agreement,'' with the State. The Master Settlement Agreement obligates these manufacturers, in return for a release of past, present and certain future claims against them as described therein, to pay substantial sums to the State (tied in part to their volume of sales); to fund a national foundation devoted to the interests of public health; and to make substantial changes in their advertising and marketing practices and corporate culture, with the intention of reducing underage smoking.
(f) It would be contrary to the policy of the State if tobacco product manufacturers who determine not to enter into such a settlement could use a resulting cost advantage to derive large, short-term profits in the years before liability may arise without ensuring that the State will have an eventual source of recovery from them if they are proven to have acted culpably. It is thus in the interest of the State to require that such manufacturers establish a reserve fund to guarantee a source of compensation and to prevent such manufacturers from deriving large, short-term profits and then becoming judgment-proof before liability may arise.
Section __ . Definitions.
(a) ''Adjusted for inflation'' means increased in accordance with the formula for inflation adjustment set forth in Exhibit C to the Master Settlement Agreement.
(b) ''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 ten percent or more, and the term ''person'' means an individual, partnership, committee, association, corporation or any other organization or group of persons.
(c) ''Allocable share'' means Allocable Share as that term is defined in the Master Settlement Agreement.
(d) ''Cigarette'' means any product that contains nicotine, is intended to be burned or heated under ordinary conditions of use, and consists of or contains (1) any roll of tobacco wrapped in paper or in any substance not containing tobacco; or (2) 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 (3) any roll of tobacco 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 clause (1) of this definition. 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,'' 0.09 ounces of ''roll-your-own'' tobacco shall constitute one individual ''cigarette.''
(e) ''Master Settlement Agreement'' means the settlement agreement (and related documents) entered into on ______ , 1998 by the State and leading United States tobacco product manufacturers.
(f) ''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 section ____ (b)--(c) of this Act.
(g) ''Released claims'' means Released Claims as that term is defined in the Master Settlement Agreement.
(h) ''Releasing parties'' means Releasing Parties as that term is defined in the Master Settlement Agreement.
(i) ''Tobacco Product Manufacturer'' means an entity that after the date of enactment of this Act directly (and not exclusively through any affiliate):
(1) 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 subsections 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);
(2) 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
(3) becomes a successor of an entity described in paragraph (1) or (2). The term ''Tobacco Product Manufacturer'' shall not include an affiliate of a tobacco product manufacturer unless such affiliate itself falls within any of (1)--(3) above.
(j) ''Units sold'' means the number of individual cigarettes sold in the State 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 (or ''roll-your-own'' tobacco containers) bearing the excise tax stamp of the State. The [fill in name of responsible state agency] shall promulgate such regulations as are necessary to ascertain the amount of State excise tax paid on the cigarettes of such tobacco product manufacturer for each year.
Section __ . Requirements.
Any tobacco product manufacturer selling cigarettes to consumers within the State (whether directly or through a distributor, retailer or similar intermediary or intermediaries) after the date of enactment of this Act shall do one of the following:
(a) become a participating manufacturer (as that term is defined in section II(jj) of the Master Settlement Agreement) and generally perform its financial obligations under the Master Settlement Agreement; or
(b)(1) place into a qualified escrow fund by April 15 of the year following the year in question the following amounts (as such amounts are adjusted for inflation)--
1999: $.0094241 per unit sold after the date of enactment of this Act;2
2000: $.0104712 per unit sold after the date of enactment of this Act;3 for each of 2001 and 2002: $.0136125 per unit sold after the date of enactment of this Act;
for each of 2003 through 2006: $.0167539 per unit sold after the date of enactment of this Act;
for each of 2007 and each year thereafter: $.0188482 per unit sold after the date of enactment of this Act.
(2) A tobacco product manufacturer that places funds into escrow pursuant to paragraph (1) shall receive the interest or other appreciation on such funds as earned. Such funds themselves shall be released from escrow only under the following circumstances--
(A) to pay a judgment or settlement on any released claim brought against such tobacco product manufacturer by the State or any releasing party located or residing in the State. Funds shall be released from escrow under this subparagraph (i) in the order in which they were placed into escrow and (ii) only to the extent and at the time necessary to make payments required under such judgment or settlement;
(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
(C) to the extent not released from escrow under subparagraphs (A) or (B), funds shall be released from escrow and revert back to such tobacco product manufacturer twenty-five years after the date on which they were placed into escrow.
(3) Each tobacco product manufacturer that elects to place funds into escrow pursuant to this subsection shall annually certify to the Attorney General [or other State official] that it is in compliance with this subsection. The Attorney General [or other State official] may bring a civil action on behalf of the State against any tobacco product manufacturer that fails to place into escrow the funds required under this section. Any tobacco product manufacturer that fails in any year to place into escrow the funds required under this section shall--
(A) be required within 15 days to place such funds into escrow as shall bring it into compliance with this section. The court, upon a finding of a violation of this subsection, may impose a civil penalty [to be paid to the general fund of the state] in an amount not to exceed 5 percent of the amount improperly withheld from escrow per day of the violation and in a total amount not to exceed 100 percent of the original amount improperly withheld from escrow;
(B) in the case of a knowing violation, be required within 15 days to place such funds into escrow as shall bring it into compliance with this section. The court, upon a finding of a knowing violation of this subsection, may impose a civil penalty [to be paid to the general fund of the state] in an amount not to exceed 15 percent of the amount improperly withheld from escrow per day of the violation and in a total amount not to exceed 300 percent of the original amount improperly withheld from escrow; and
(C) in the case of a second knowing violation, be prohibited from selling cigarettes to consumers within the State (whether directly or through a distributor, retailer or similar intermediary) for a period not to exceed 2 years.
Each failure to make an annual deposit required under this section shall constitute a separate violation.4
EXHIBIT U
STRATEGIC CONTRIBUTION FUND PROTOCOL The payments made by the Participating Manufacturers pursuant to section IX(c)(2) of the Agreement (''Strategic Contribution Fund'') shall be allocated among the Settling States pursuant to the process set forth in this Exhibit U.
Section 1
A panel committee of three former Attorneys General or former Article III judges (''Allocation Committee'') shall be established to determine allocations of the Strategic Contribution Fund, using the process described herein. Two of the three members of the Allocation Committee shall be selected by the NAAG executive committee. Those two members shall choose the third Allocation Committee member. The Allocation Committee shall be geographically and politically diverse.
Section 2
Within 60 days after the MSA Execution Date, each Settling State will submit an itemized request for funds from the Strategic Contribution Fund, based on the criteria set forth in Section 4 of this Exhibit U.
Section 3
The Allocation Committee will determine the appropriate allocation for each Settling State based on the criteria set forth in Section 4 below. The Allocation Committee shall make its determination based upon written documentation.
Section 4
The criteria to be considered by the Allocation Committee in its allocation decision include each Settling State's contribution to the litigation or resolution of state tobacco litigation, including, but not limited to, litigation and/or settlement with tobacco product manufacturers, including Liggett and Myers and its affiliated entities.
Section 5
Within 45 days after receiving the itemized requests for funds from the Settling States, the Allocation Committee will prepare a preliminary decision allocating the Strategic Contribution Fund payments among the Settling States who submitted itemized requests for funds. All Allocation Committee decisions must be by majority vote. Each Settling State will have 30 days to submit comments on or objections to the draft decision. The Allocation Committee will issue a final decision allocating the Strategic Contribution Fund payments within 45 days.
Section 6
The decision of the Allocation Committee shall be final and non-appealable.
Section 7
The expenses of the Allocation Committee, in an amount not to exceed $100,000, will be paid from disbursements from the Subsection VIII(c) Account.
MASTER SETTLEMENT AGREEMENT
AMENDMENTS 1--14
TABLE OF CONTENTS Amendment 1
Addendum to the Master Settlement Agreement
[Comprising Amendments 2 through 11]
Amendment 12
Amendment 13
Amendment 14
AMENDMENT TO THE
MASTER SETTLEMENT AGREEMENTPursuant to Section XVIII(J) of the Master Settlement Agreement, the undersigned parties hereby agree that Section IX(i)(4)(A) of the Master Settlement Agreement is amended to read as follows:
''(A) became a signatory to this Agreement more than 90 days after the MSA Execution Date or''
[Continued on next Web Page] _______
1 [A State may elect to delete the ''findings and purposes'' section in its entirety. Other changes or substitutions with respect to the ''findings and purposes'' section (except for particularized state procedural or technical requirements) will mean that the statute will no longer conform to this model.
2 [All per unit numbers subject to verification]
3 [The phrase ''after the date of enactment of this Act'' would need to be included only in the calendar year in which the Act is enacted.]
4 [A State may elect to include a requirement that the violator also pay the State's costs and attorney's fees incurred during a successful prosecution under this paragraph (3).]
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