MO SB97

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 fund by April 15 of the following year.

Non-participating manufacturers must escrow per-unit amounts ranging from $0.0094241 (1999) to $0.0188482 (2007 and thereafter), adjusted annually for inflation.

Escrowed funds may be released to pay judgments or settlements against the manufacturer, or after 25 years, and any overage above what would have been owed under the Master Settlement Agreement may be released immediately.

Manufacturers failing to place required funds into escrow face civil penalties up to 5 percent daily (capped at 100 percent total) for unintentional violations and 15 percent daily (capped at 300 percent total) for knowing violations, plus potential 2-year sales prohibition for second knowing violations.

The act takes effect immediately upon passage and approval as an emergency measure to protect the state's economic welfare.