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THE SENATE |
S.B. NO. |
3044 |
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THIRTY-FIRST LEGISLATURE, 2022 |
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STATE OF HAWAII |
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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 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) is permanent and irrevocable and applies 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) must be in writing and 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 operates 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 chapter 675.
(g) The attorney general may adopt rules pursuant
to chapter 91 necessary to implement this section.
(h) 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 must 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 account 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."
SECTION 3.
New statutory material is underscored.
SECTION 4. This Act shall take effect upon its approval.
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INTRODUCED
BY: |
_____________________________ |
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BY REQUEST |
Report Title:
Tobacco manufacturer qualified escrow funds; Assignment
Description:
Provides a mechanism to assign non-participating tobacco
manufacturers' qualified escrow account balances to the State of
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.