MO HB978

Repeals and replaces section 196.1003, RSMo, governing tobacco product manufacturer escrow requirements and the Tobacco Master Settlement Agreement

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

Escrow deposit amounts per unit sold are set at $.0094241 (1999), $.0104712 (2000), $.0136125 (2001-2002), $.0167539 (2003-2006), and $.0188482 (2007 and thereafter), adjusted annually for inflation

Escrowed funds may be released to pay judgments or settlements, returned if amounts exceed what would be owed under the Master Settlement Agreement, or returned to the manufacturer 25 years after deposit

Manufacturers failing to deposit required escrow funds face civil penalties up to 5% daily (maximum 100% of withheld amount) for violations or up to 15% daily (maximum 300%) for knowing violations, plus potential 2-year sales prohibition for second knowing violation

Act takes effect immediately upon passage and approval as an emergency measure