MO HB491

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.

Escrow deposit amounts per unit sold are: $0.0094241 (1999), $0.0104712 (2000), $0.0136125 (2001-2002), $0.0167539 (2003-2006), and $0.0188482 (2007 and thereafter), adjusted annually for inflation.

Escrowed funds can be released to pay judgments or settlements against the manufacturer, if escrow amounts exceed what the manufacturer would have owed under the Master Settlement Agreement, or after 25 years.

Manufacturers must annually certify compliance to the Attorney General; violations result in civil penalties up to 5% per day (100% total) for unintentional violations or 15% per day (300% total) for knowing violations, plus a 2-year sales prohibition for second knowing violations.

The act takes effect immediately upon passage and approval as an emergency measure.