MO HB1242

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

Non-participating manufacturers must deposit per-unit amounts into escrow by April 15 each year, ranging from $0.0094241 per unit (1999) to $0.0188482 per unit (2007 and thereafter), adjusted for inflation.

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

Manufacturers must annually certify compliance to the Attorney General; violations result in civil penalties up to 5% per day (100% maximum) for unintentional violations and up to 15% per day (300% maximum) for knowing violations, with a two-year sales ban for second knowing violations.

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