MO HB1221

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 amounts are specified per unit sold, ranging from $0.0094241 (1999) to $0.0188482 (2007 and thereafter), adjusted annually for inflation.

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

Manufacturers must annually certify compliance to the Attorney General; violations result in civil penalties up to 5% per day (maximum 100% of withheld amount) for first violations and up to 15% per day (maximum 300%) for knowing violations.

A second knowing violation results in prohibition from selling cigarettes in Missouri for up to 2 years; the bill takes effect immediately upon passage as an emergency measure.