Offset Relating to Incentive Payment A. If a Settling State is not eligible for Incentive Payment A at the third Payment Date, the Settling Distributors shall receive an offset with respect to that State.10 The offset shall be the dollar amount difference between (1) the total amount of the Incentive Payment A due from the Settling Distributors on the Effective Date and on the Payment Date for Payment Year 2 allocated to that State and its Participating Subdivisions, and (2) the total amount of Incentive Payments B and C that would have been due from the Settling Distributors on the Effective Date and on the Payment Date for Payment Year 2 so allocated but for the State’s deemed eligibility for Incentive Payment A. The offset shall be applied in equal installments to reduce the Annual Payments for Payment Years 3 through 7 that would be apportioned to that State and to its Subdivisions, and shall remain applicable even if that State subsequently becomes eligible for Incentive Payment A.
Offset Relating to Incentive Payment A. If the State of Ohio is not eligible for Incentive Payment A at the third Payment Date,9 Settling Distributors shall receive an offset.10 The offset shall be the dollar amount difference between (1) the total amount of the Incentive Payment A due from Settling Distributors on the Effective Date and on the Payment Date for Payment Year 2 allocated to the State of Ohio and the Participating Subdivisions, and (2) the total amount of Incentive Payments B and C that would have been due from Settling Distributors on the Effective Date and on the Payment Date for Payment Year 2 so allocated but for the State of Ohio’s deemed eligibility for Incentive Payment A. The offset shall be applied in equal installments to reduce the Settling Distributor’s Payments for Payment Years 3 through 7 that 9 In the event that the State of Ohio has passed a legislative bar before the Payment Date for Payment Year 3 that would otherwise qualify the State of Ohio for Incentive Payment A, but such legislation is not effective until a date in 2023 after the Payment Date for Payment Year 3, the State of Ohio will not be required to make the offset required by this Section XI.A. 10 For purposes of this provision, in determining whether the State of Ohio would not be eligible for Incentive Payment A for Payment Year 3, the criteria set forth in Section V.F.1.b shall apply to that Payment Year. would be apportioned to the State of Ohio or the Participating Subdivisions, and shall remain applicable even if that the State of Ohio subsequently becomes eligible for Incentive Payment A.
Offset Relating to Incentive Payment A. If the State of Rhode Island is not eligible for Incentive Payment A at the third Payment Date,9 Settling Distributors shall receive an offset.10 The offset shall be the dollar amount difference between (1) the total amount of the Incentive Payment A due from Settling Distributors on the Effective Date and on the Payment Date for Payment Year 2 allocated to the State of Rhode Island and the Participating Subdivisions, and (2) the total amount of Incentive Payments B and C that would have been due from Settling Distributors on the Effective Date and on the Payment Date for Payment Year 2 so allocated but for the State of Rhode Island’s deemed eligibility for Incentive Payment A. The offset shall be applied in equal installments to reduce the Settling Distributor’s Payments for Payment Years 3 through 7 that would be apportioned to the State of Rhode Island or the Participating Subdivisions, and shall remain applicable even if the State of Rhode Island subsequently becomes eligible for Incentive Payment A.
Offset Relating to Incentive Payment A. If Texas is not eligible for Incentive Payment A at the third Payment Date,11 Settling Distributors shall receive an offset.12 The offset shall be the dollar amount difference between (1) the total amount of the Incentive Payment A due from Settling Distributors on the Effective Date and on the Payment Date for Payment Year 2 allocated to Texas and the Participating Subdivisions, and (2) the total amount of Incentive Payments B and C that would have been due from Settling Distributors on the Effective Date and on the Payment Date for Payment Year 2 so allocated but for Texas’s deemed eligibility for Incentive Payment A. The offset shall be applied in equal installments to reduce the Settling Distributor’s Payments for Payment Years 3 through 7 that would be apportioned to Texas or the Participating Subdivisions, and shall remain applicable even if that Texas subsequently becomes eligible for Incentive Payment A.
