MO SB820

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 with specified per-unit amounts ranging from $0.0094241 (1999) to $0.0188482 (2007 and thereafter).

Escrow funds earn interest and are released only to pay judgments or settlements against the manufacturer, to refund excess amounts over what would have been owed as a participating manufacturer, or to revert to the manufacturer after 25 years.

Manufacturers must annually certify compliance to the Attorney General, who may bring civil actions against those failing to deposit required funds.

Penalties for non-compliance include civil penalties of up to 5 percent per day (maximum 100 percent of withheld amount) for violations and 15 percent per day (maximum 300 percent) for knowing violations, plus prohibition from selling cigarettes in Missouri for up to 2 years on a second knowing violation.

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