[30 Pa.B. 5619]

[Continued from previous Web Page]

North Carolina	John McArthur 3116 Pleasant Plains Rd. Apex, NC 27502	Phone: 919-363-9913 FAX: 919-363-9914
North 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 29402	Phone: 843-720-9000 FAX: 843-720-9290
	Richard F. Scruggs, National Special Counsel Scruggs, Millette, Bozeman & Dent, P.A. 734 Delmas Avenue Pascagoula, MS 39567	Phone: 228-762-6068 FAX: 228-762-1207
	Don W. Barrett, National Special Counsel Barrett Law Offices 404 Court Square North, P.O. Box 987 Lexington, MS 39095	Phone: 601-834-2376 FAX: 601-834-2628
	Steve W. Berman, Lead National Special Counsel Steven C. Mitchell, National Special Counsel Hagens & Berman, P.S. 1301 Fifth Avenue, Suite 2900 Seattle, WA 98101	Phone: 206-623-7292 FAX: 206-623-0594
	Norman A. Murdock, Ohio Special Counsel Murdock & Beck Suite 400 700 Walnut St. Cincinnati, OH 45202	Phone: 513-345-8291 FAX: 513-345-8294
	John C. Murdock, Ohio Special Counsel Jeffrey S. Goldenberg Murdock & Goldenberg Suite 400 700 Walnut St. Cincinnati, OH 45202	Phone: 513-345-8291 FAX: 513-345-8294
	Charles R. Saxbe, Lead Ohio Special Counsel Chester, Willcox & Saxbe 17 South High St. Suite 900 Columbus, OH 43215	Phone: 614-221-4000 FAX: 614-221-4012
Oklahoma	Ronald L. Motley** Joseph F. Rice** Ness, Motley, Loadholt, Richardson & Poole 151 Meeting Street P.O. Box 1137 Charleston, SC 29402	Phone: 843-720-9000 FAX: 843-720-9290
	Richard F. Scruggs** Scruggs, Millette, Bozeman & Dent, P.A. 734 Delmas Avenue Pascagoula, MS 39567	Phone: 228-762-6068 FAX: 228-762-1207
	Henry A. Meyer, III** Pray, Walker, Jackman, Williamson & Marlar 211 North Robinson, Suite 1601 Oklahoma City, OK 73113	Phone: 405-236-8911 FAX: 405-236-0011
	John W. Norman** Norman , Edem, McNaughton & Wallace, P.A. 127 N.W. Tenth Street Oklahoma City, OK 73103	Phone: 405-272-0200 FAX: 405-235-2949
	David Riggs** Riggs, Abney, Neal, Turpen, Orbison & Lewis, P.A. 502 West 6th Street Tulsa, OK 74119	Phone: 918-587-3161 FAX: 918-587-9708
	Preston Trimble** 231 S. Peters Norman, OK 73069	Phone: 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 29402	Phone: 843-720-9000 FAX: 843-720-9290
	Richard F. Scruggs Scruggs, Millette, Bozeman & Dent, P.A. 734 Delmas Avenue Pascagoula, MS 39567	Phone: 228-762-6068 FAX: 228-762-1207
	Thomas Balmer Ater, Wynne, Hewitt, Dodson & Skerritt, LLP 222 S.W. Columbia, Suite 1800 Portland, OR 97201	Phone: 503-266-1191 FAX: 503-266-0079
	Steve W. Berman Hagens & Berman, P.S. 1301 Fifth Avenue, Suite 2900 Seattle, WA 98101	Phone: 206-623-7292 FAX: 206-623-0594
	Robert B. Carey Norton, Frickey & Associates 2301 East Pikes Peak Colorado Springs, CO 80909	Phone: 719-635-7131 FAX: 719-635-2920
Pennsylvania	Reeder R. Fox Mark Lipowicz Duane, Morris & Heckscher, LLP One Liberty Place Philadelphia, PA 19103-7396	Phone: 215-979-1000 FAX: 215-979-1020
	Thomas L. Van Kirk Stanley Yorsz Buchanan Ingersoll, PC One Oxford Centre 301 Grant Street Pittsburgh, PA 15219-1410	Phone: 412-562-8800 FAX: 412-562-1041
Puerto Rico	Ronald L. Motley Joseph F. Rice Ness, Motley, Loadholt, Richardson & Poole 151 Meeting Street P.O. Box 1137 Charleston, SC 29402	Phone: 843-720-9000 FAX: 843-720-9290
	Richard F. Scruggs Scruggs, Millette, Bozeman & Dent, P.A. 734 Delmas Avenue Pascagoula, MS 39567	Phone: 228-762-6068 FAX: 228-762-1207
	Benjamin Acosta, Jr. Law Offices of Benjamin Acosta, Jr. 331 Recinto Sur Street San Juan, PR 00901	Phone: 787-722-2363 FAX: 787-724-5970
	Law Offices of Juan A. Ramos 359 De Diego Ave. Suite 601 San Juan, PR 00909	Phone: 787-722-9090 FAX: 787-724-4391
Rhode Island	Ronald L. Motley Joseph F. Rice Ness, Motley, Loadholt, Richardson & Poole 151 Meeting Street P.O. Box 1137 Charleston, SC 29402	Phone: 843-720-9000 FAX: 843-720-9290
	Richard F. Scruggs Scruggs, Millette, Bozeman & Dent, P.A. 734 Delmas Avenue Pascagoula, MS 39567	Phone: 228-762-6068 FAX: 228-762-1207
	Steve W. Berman Hagens & Berman, P.S. 1301 Fifth Avenue, Suite 2900 Seattle, WA 98101	Phone: 206-623-7292 FAX: 206-623-0594
	William M. Dolan, III Brown, Rudnick, Freed & Gesmer One Providence Washington Plaza Providence, RI 02903	Phone: 401-276-2600 FAX: 401-276-2601
	Richard M. Heimann Lieff, Cabraser, Heimann & Bernstein Embaracadero Center West 275 Battery Street, 30th Floor San Francisco, CA 94111	Phone: 415-956-1000 FAX: 415-956-1008
South Carolina	Ronald L. Motley Joseph F. Rice Ness, Motley, Loadholt, Richardson & Poole 151 Meeting Street P.O. Box 1137 Charleston, SC 29402	Phone: 843-720-9000 FAX: 843-720-9290
South Dakota	None
Tennessee	John McCarthur 3116 Pleasant Plains Rd. Apex, NC 27502	Phone: 919-363-9913 FAX: 919-363-9914
Utah	Ronald L. Motley Joseph F. Rice Ness, Motley, Loadholt, Richardson & Poole 151 Meeting Street P.O. Box 1137 Charleston, SC 29402	Phone: 843-720-9000 FAX: 843-720-9290
	Gary F. Bendinger Giauque, Crockett, Bendinger & Peterson 170 South Main Street, Suite 400 Salt Lake City, UT 84101	Phone: FAX: 801-531-1486
	Steve Crockett Giauque, Crockett, Bendinger & Peterson 170 South Main Street, Suite 400 Salt Lake City, UT 84101	Phone: 801-533-8383 FAX: 801-531-1486
	Robert A. Peterson Giauque, Crockett, Bendinger & Peterson 170 South Main Street, Suite 400 Salt Lake City, UT 84101	Phone: 801-533-8383 FAX: 801-531-1486
Vermont	Ronald L. Motley Joseph F. RiceNess, Motley, Loadholt, Richardson & Poole 151 Meeting Street P.O. Box 1137 Charleston, SC 29402	Phone: 843-720-9000 FAX: 843-720-9290
	Richard F. Scruggs Scruggs, Millette, Bozeman & Dent, P.A. 734 Delmas Avenue Pascagoula, MS 39567	Phone: 228-762-6068 FAX: 228-762-1207
	Thomas Anderson Sheehy, Brue, Gray & Furlong Gateway Square 30 Main Street Burlington, VT 05402	Phone: 802-864-9891 FAX: 802-864-6815
	Steve W. Berman Hagens & Berman, P.S. 1301 Fifth Avenue, Suite 2900 Seattle, WA 98101	Phone: 206-623-7292 FAX: 206-623-0594
	Robert B. Carey Norton , Frickey & Associates 2301 East Pikes Peak Colorado Springs, CO 80909	Phone: 719-635-7131 FAX: 719-635-2920
	Scot L. Kline Miller, Eggleston & Cramer, LTD. P.O. Box 1489 Burlington, VT 05402-1489	Phone: 802-864-0880 FAX: 802-864-0328
Virgin Islands	Stephen C. Braverman Buchanan Ingersoll, P.C. 11 Penn Center, 14th Floor 1835 Market Street Philadelphia, PA 19103-2985	Phone: 215-665-3864 FAX: 215-665-8760
Virginia	None
Washington	Joseph F. Rice Ness, Motley, Loadholt, Richardson & Poole 151 Meeting Street P.O. Box 1137 Charleston, SC 29402	Phone: 843-720-9000 FAX: 843-720-9290
	Richard F. Scruggs Scruggs, Millette, Bozeman & Dent, P.A. 734 Delmas Avenue Pascagoula, MS 39567	Phone: 228-762-6068 FAX: 228-762-1207
	Steve W. Berman Hagens & Berman, P.S. 1301 Fifth Avenue, Suite 2900 Seattle, WA 98101	Phone: 206-623-7292 FAX: 206-623-0594
	William J. Leedom Bennett, Bigelow & Leedom 999 Third Avenue, Suite 2150 Seattle, WA 98101	Phone: 206-622-5511 FAX: 206-622-8986
	Paul N. Luvera Luvera, Barnett, Brindley, Beninger & Cunningham 6700 Columbia Center 701 Fifth Avenue, Suite 6700 Seattle, WA 98104	Phone: 206-467-6090 FAX: 206-467-6961
	John W. Barrett Barrett Law Offices 404 Court Square North Lexington, MS 39095	Phone: 601-834-2376 FAX: 601-834-2409
West Virginia	Ronald L. Motley Joseph F. Rice Susan Nial Ness, Motley, Loadholt, Richardson & Poole 151 Meeting Street P.O. Box 1137 Charleston, SC 29402	Phone: 843-720-9000 FAX: 843-720-9290
	R. Edison Hill Hill, Peterson, Carper, Bee & Deitzler Northgate Business Park 500 Tracy Way Charleston, WV 25311	Phone: 304-345-5667 FAX: 304-345-1519
	Douglas B. Hunt Hunt & Barber, L.C. 1116A Kanawha Boulevard East Charleston, WV 25301	Phone: 304-343-2999 FAX: 304-344-3516
	Scott S. Segal 810 Kanawha Boulevard East Charleston, WV 25301	Phone: 304-344-9100 FAX: 304-344-9105
Wisconsin	Thomas J. Basting, Sr. David J. Macdougall Brennan, Steil, Basting & Macdougall, S.C. 1 E. Milwaukee St. P.O. Box 1148 Janesville, WI 53545-3011	Phone: 608-756-4141 FAX: 608-756-9000
	Robert L. Habush (Lead Counsel) Jeffrey P. Archibald Habush, Habush, Davis & Rottier 777 E. Wisconsin Ave., #2300 Milwaukee, WI 53202	Phone: 414-271-0900 FAX: 414-271-6854
	Robert D. Scott Ross A. Anderson Whyte, Hirschboeck, Dudek, S.C. 111 East Wisconsin Ave. Milwaukee, WI 53202-7405	Phone: 414-273-4000 FAX: 414-223-5000
Wyoming	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 AGREEMENT

   Pursuant 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''

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_______

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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