{"data":{"id":"us-ky/krs-131.600","jurisdiction":"us-ky","citation":"KRS 131.600","heading":"Definitions for KRS 131.600 to 131.630.","body":"As used in KRS 131.600 to 131.630:\n(1) \"Adjusted for inflation\" means increased in accordance with the formula for\ninflation adjustment set forth in Exhibit C to the master settlement agreement;\n(2) \"Affiliate\" means a person who directly or indirectly own s or controls, is owned or\ncontrolled by, or is under common ownership or control with, another person.\nSolely for purposes of this definition, the terms \"owns,\" \"is owned,\" and\n\"ownership\" mean ownership of an equity interest, or the equivalent thereof, o f ten\npercent (10%) or more, and the term \"person\" means an individual, partnership,\ncommittee, association, corporation, or any other organization or group of persons;\n(3) \"Allocable share\" means allocable share as that term is defined in the master\nsettlement agreement;\n(4) \"Brand family\" means all styles of cigarettes sold under the same trademark and\ndifferentiated from one another by means of additional modifiers or descriptors,\nincluding but not limited to menthol, kings, and 100's, and includes any b rand name\nalone or in conjunction with any other word, trademark, logo, symbol, motto,\nselling message, recognizable pattern of colors, or any other indicia of product\nidentification identical or similar to, or identifiable with, a previously known brand\nof cigarettes;\n(5) \"Cigarette\" means any product that contains nicotine, is intended to be burned or\nheated under ordinary conditions of use, and consists of or contains:\n(a) Any roll of tobacco wrapped in paper or in any substance not containing\ntobacco;\n(b) Tobacco, in any form, that is functional in the product, which, because of its\nappearance, the type of tobacco used in the filler, or its packaging and\nlabeling, is likely to be offered to, or purchased by, consumers as a cigarette;\nor\n(c) Any roll of t obacco wrapped in any substance containing tobacco which,\nbecause of its appearance, the type of tobacco used in the filler, or its\npackaging and labeling, is likely to be offered to, or purchased by, consumers\nas a cigarette described in paragraph (a) of this subsection.\nThe term \"cigarette\" includes \"roll -your-own\", i.e., any tobacco which, because of\nits appearance, type, packaging, or labeling is suitable for use and likely to be\noffered to, or purchased by, consumers as tobacco for making cigarettes. For\npurposes of this definition of \"cigarette,\" nine -hundredths (0.09) ounces of \"roll -\nyour-own\" tobacco shall constitute one (1) individual \"cigarette\";\n(6) \"Commissioner\" means the commissioner of the department;\n(7) \"Department\" means the Department of Revenue;\n(8) \"Directory\" means the directory as provided in KRS 131.610;\n(9) \"Distributor\" means a person, wherever residing or located, who purchases nontax -\npaid cigarettes and stores, sells, or otherwise disposes of the cigarettes. This\nincludes resident wholesalers, nonresident wholesalers, and unclassified acquirers\nas defined in KRS 138.130;\n(10) \"Financial instrument\" has the same meaning as in KRS 138.210;\n(11) \"Importer\" has the same meaning as in KRS 248.750;\n(12) \"Master settlement agreement\" means the settlement agreement and related\ndocuments entered into on November 23, 1998, by Ke ntucky and leading United\nStates tobacco product manufacturers;\n(13) \"Nonparticipating manufacturer\" means any tobacco product manufacturer that is\nnot a participating manufacturer;\n(14) \"Participating manufacturer\" has the meaning given the term in Sectio n II(jj) of the\nmaster settlement agreement and all amendments thereto;\n(15) \"Qualified escrow fund\" means an escrow arrangement with a federally or state -\nchartered financial institution having no affiliation with any tobacco product\nmanufacturer and havin g assets of at least one billion dollars ($1,000,000,000)\nwhere such arrangement requires that such financial institution hold the escrowed\nfunds' principal for the benefit of releasing parties and prohibits the tobacco product\nmanufacturer placing the fun ds into escrow from using, accessing, or directing the\nuse of the funds' principal except as consistent with KRS 131.602(3);\n(16) \"Released claims\" means released claims as that term is defined in the master\nsettlement agreement;\n(17) \"Releasing parties\" m eans releasing parties as that term is defined in the master\nsettlement agreement;\n(18) \"Stamping agent\" means a person, including a distributor, that is authorized to affix\ntax stamps to packages or other containers of cigarettes pursuant to KRS 138.146 or\nany person that is required to pay the excise tax imposed pursuant to KRS 138.155;\n(19) \"Tobacco product manufacturer\" means an entity that after June 30, 2000, directly\nand not exclusively through any affiliate:\n(a) Manufactures cigarettes anywhere that such manufacturer intends to be sold in\nthe United States, including cigarettes intended to be sold in the United States\nthrough an importer, except where such importer is an original participating\nmanufacturer, as that term is defined in the master settl ement agreement, that\nwill be responsible for the payments under the master settlement agreement\nwith respect to such cigarettes as a result of the provisions of subsection\nII(mm) of the master settlement agreement and that pays the taxes specified in\nsubsection II(z) of the master settlement agreement, and provided that the\nmanufacturer of such cigarettes does not market or advertise such cigarettes in\nthe United States;\n(b) Is the first purchaser anywhere for resale in the United States of cigarettes\nmanufactured anywhere that the manufacturer does not intend to be sold in the\nUnited States; or\n(c) Becomes a successor of an entity described in paragraph (a) or (b) of this\nsubsection.\nThe term \"tobacco product manufacturer\" shall not include an affiliate o f a tobacco\nproduct manufacturer unless such affiliate itself falls within any of the definitions\ndescribed in paragraph (a), (b), or (c) of this subsection; and\n(20) \"Units sold\" means the number of individual cigarettes sold in Kentucky by the\napplicable tobacco product manufacturer, whether directly or through a distributor,\nretailer, or similar intermediary or intermediaries, during the year in question, as\nmeasured by excise taxes collected by Kentucky on packs or \"roll -your-own\"\ntobacco. The departmen t shall promulgate administrative regulations as are\nnecessary to ascertain the amount of state excise tax paid on the cigarettes of the\ntobacco product manufacturer for each year.","path":["KRS Chapter 131"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=44700","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:22Z","sha256":"421a899c8a7900698c28ff6f9be9a7db6f2c7f6b7985d6132a714f6eb715f839","source_id":"us-ky","stale":false,"prev":"us-ky/krs-131.595","next":"us-ky/krs-131.602"},"notice":"GroundRules: Original legal text. Not legal advice."}