MO SB375

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 by April 15 following the year of sale.

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

Escrowed funds may be released to pay judgments or settlements against the manufacturer, to refund excess amounts over what would have been owed under the Master Settlement Agreement, or to revert to the manufacturer after 25 years.

Manufacturers must annually certify compliance to the Attorney General; violations result in civil penalties up to 5% of improperly withheld amounts daily (maximum 100% total) and up to 15% daily for knowing violations (maximum 300% total), with a 2-year sales ban for second knowing violations.

The act takes effect immediately upon passage and approval as an emergency measure to protect the economic welfare of Missouri citizens.