HB 263 -- TOBACCO MANUFACTURERS

CO-SPONSORS:  Cooper (120), Dempsey, Pratt

COMMITTEE ACTION:  Voted "do pass" by the Committee on Tax Policy
by a vote of 16 to 0 with 1 present.

This bill establishes certain requirements for participating
tobacco manufacturers and for nonparticipating tobacco
manufacturers relating to the 1998 Master Settlement Agreement
between various tobacco companies and the State of Missouri, 45
other states, the District of Columbia, and five U. S.
territories.

The bill requires all tobacco manufacturers whose cigarettes are
sold in Missouri to report and certify to the Department of
Revenue and the Attorney General's office by April 13 of each
year that they are in compliance with the Tobacco Settlement
Model Statute currently in Missouri law.

In addition to the certification, participating manufacturers
must also provide a list of "brand families" of cigarette types.
Nonparticipating manufacturers must submit their brand families,
the number of units sold at any time during the year for each
family, the name and address of any other manufacturer of their
brand families in the preceding or current calendar year, and
other information to verify compliance with the Model Statute.
Each nonresident or foreign nonparticipating manufacturer must
maintain an agent within the state for purposes of service of
process relating to the enforcement of the bill.

The bill also requires that by January 1, 2004, the Attorney
General's office must publish on its web site for public
inspection a list of all tobacco product manufacturers that have
provided the certification requirements established in the bill.

Stamping agents (persons authorized to affix cigarette tax stamps
to cigarette packages) are required to submit to the Attorney
General an e-mail address for receipt of notifications as
required by the bill and to submit various reports and documents
as required by the Attorney General.

Various penalties and actions for failure to comply with the
requirements of the bill are included.

The bill contains an emergency clause.

FISCAL NOTE:  Estimated Net Income to the Tobacco Control Special
Fund of Unknown in FY 2004, FY 2005, and FY 2006.  The income
from disgorgements, penalties, and fees is expected to exceed the
AGO costs.

PROPONENTS:  Supporters say that the bill will help enforce the
Model Act of 1999, which required certain deposits by
nonparticipating manufacturers into escrow accounts in order to
level the playing field with participating manufacturers and
protect state interests in the future.  The bill will reduce
market share loss by the participating manufacturers and increase
the state's tobacco settlement payments.

Testifying for the bill were Representative Cooper (120); R J
Reynolds Tobacco Company; Office of the Attorney General; and
Missouri Retailers Association.

OPPONENTS:  There was no opposition voiced to the committee.

Bill Tucker, Deputy Director of Research

Missouri House of Representatives
Last Updated July 25, 2003 at 10:11 am