MO HB2027

Tobacco product manufacturers selling cigarettes in Missouri must either become a participating manufacturer under the Master Settlement Agreement or place funds into a qualified escrow account.

Non-participating manufacturers must deposit per-unit amounts into escrow by April 15 following the year of sale, ranging from $0.0094241 per unit in 1999 to $0.0188482 per unit from 2007 onward, adjusted for inflation.

Escrow funds may be released to: (1) pay judgments or settlements against the manufacturer, (2) refund excess amounts exceeding what would be owed under the Master Settlement Agreement, or (3) revert to the manufacturer after 25 years.

The Attorney General may pursue civil action against manufacturers failing to deposit required funds, with penalties up to 5 percent daily (100 percent total) for violations and up to 15 percent daily (300 percent total) for knowing violations, plus potential sales prohibition for second knowing violations.

The act includes an emergency clause making it effective immediately upon passage and approval.