ORS 323.807 Assignment of interest in qualified escrow fund to state

Notwithstanding the provisions of ORS 323.806 (2)(b), a tobacco product manufacturer that elects to place funds into a qualified escrow fund pursuant to ORS 323.806 (1)(b) may assign to the state the tobacco product manufacturer’s interest in any funds in the qualified escrow fund.

An assignment executed pursuant to subsection (1) of this section is permanent and irrevocable and applies to all moneys in the qualified escrow fund established for the benefit of the state, 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.

The parties to a qualified escrow agreement may amend the agreement for the purposes of executing an assignment pursuant to subsection (1) of this section.

An assignment executed pursuant to subsection (1) of this section must be in writing and be signed by the assignee and the assignor or by an authorized agent or representative thereof. An assignment that is duly executed 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.

Notwithstanding the provisions of ORS 323.806 (1)(b), funds assigned to the state shall be deposited in the Oregon Health Authority Fund established under ORS 413.101 and shall be used for expenses of the Oregon Health Plan.

Nothing in this section operates to:

Waive the right of the state to bring a claim against a tobacco product manufacturer as described in ORS 323.806 (2)(b), 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 described in ORS 323.806 (2)(b); or

Relieve a tobacco product manufacturer from any obligation or duty imposed pursuant to ORS 180.400 to 180.455 or 323.800 to 323.807.

The Attorney General may adopt rules necessary to implement this section.

A financial institution in which a qualified escrow fund is maintained 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. The court may order the transfer of funds in the fund to the Oregon Health Authority Fund pursuant to this section.