Bill Text: HI SB3044 | 2022 | Regular Session | Amended
Bill Title: Relating To Tobacco Manufacturer Qualified Escrow Funds.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2022-06-17 - Act 093, on 06/17/2022 (Gov. Msg. No. 1193). [SB3044 Detail]
Download: Hawaii-2022-SB3044-Amended.html
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THE SENATE |
S.B. NO. |
3044 |
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THIRTY-FIRST LEGISLATURE, 2022 |
S.D. 1 |
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STATE OF HAWAII |
H.D. 1 |
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A BILL FOR AN ACT
RELATING TO TOBACCO MANUFACTURER QUALIFIED ESCROW FUNDS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Chapter 675, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§675- Assignment of interest in qualified escrow fund to the State. (a) A tobacco product manufacturer that elects to place funds into a qualified escrow fund pursuant to section 675-3(b) may assign to the State the tobacco product manufacturer's interest in any moneys in the qualified escrow fund.
(b) An assignment executed pursuant to subsection
(a) shall be permanent and irrevocable and shall apply to all moneys in the
qualified escrow fund, including all moneys deposited into the qualified escrow
fund before the tobacco product manufacturer executes the assignment, all
moneys deposited into the qualified escrow fund after the tobacco product
manufacturer executes the assignment, and any interest or other appreciation
earned on any moneys in the qualified escrow fund.
(c) A qualified escrow agreement, as referenced in
section 486P-5(c)(4), may be amended by the parties to the agreement for the
purpose of executing an assignment pursuant to subsection (a).
(d) An assignment executed pursuant to subsection
(a) shall be in writing and shall be signed by the assignee and the assignor or
by an authorized agent or representative thereof. An executed assignment becomes enforceable
after a copy of the assignment is delivered to the attorney general and the
financial institution where the qualified escrow fund is maintained.
(e) Notwithstanding the provisions of section 675-3(b),
funds assigned to the State shall be deposited in the Hawaii tobacco settlement
special fund established pursuant to section 328L-2.
(f) Nothing in this section shall operate to:
(1) Waive the right
of the State to bring a claim against a tobacco product manufacturer, except
that any funds assigned to the State under this section shall be credited on a
dollar-for-dollar basis against any judgment or settlement; or
(2) Relieve a
tobacco product manufacturer from any obligation or duty imposed pursuant to
chapter 245, chapter 486P, or this chapter.
(g) When a
qualified escrow fund has been deemed abandoned by a tobacco product
manufacturer according to the criteria set by each financial institution, the
financial institution maintaining the qualified escrow fund and acting as the
escrow agent may file a petition in circuit court for an order authorizing a
transfer of funds in the qualified escrow fund to the State. The petition shall state the factual and legal
bases for the relief sought. The
financial institution shall serve the petition on the attorney general at the
time the petition is filed. Upon a
finding that the fund has been abandoned, the court may order the transfer of
funds in the qualified escrow fund to the Hawaii tobacco settlement special fund
established pursuant to section 328L-2.
(h) The department of the attorney general may adopt rules pursuant to chapter 91 necessary to implement this section."
SECTION 2.
New statutory material is underscored.
SECTION 3. This Act shall take effect upon its approval.
Report Title:
Tobacco Manufacturer Qualified Escrow Funds; Assignment to the State
Description:
Provides a mechanism to assign nonparticipating tobacco manufacturers' qualified escrow fund balances to the State. Provides a mechanism for the financial institution acting as the escrow agent of the qualified escrow fund to petition the courts to authorize transfer of funds to the State when the qualified escrow fund is abandoned. (HD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
