Attorney General Chris Koster stated on Monday that he's reached a deal with major tobacco manufacturers. This will enable to restore $50 million in lost tobacco settlement proceeds to Missouri, but it is contingent on action from the Legislature.
According to Herald Courier, Chris Koster claimed that the state will get the money back plus an eventual extra $11 million per year. This will take effect as long as lawmakers this session tighten laws on smaller companies that didn't sign the original settlement.
"Recovering $50 million and preserving future payments provides the legislature some certainty going into the next budget cycle and continues to fund the programs that depend on this money," Koster stated. He added "I hope that we are able to work together to protect a significant revenue stream that benefits Missourians."
St. Louis Post-Dispatch noted that the Senate President Pro Tem Ron Richard, however, suggests otherwise. In fact, when asked by a reporter Monday if there was support for Koster's plan, the Republican leader revealed, "Not at this time."
Missouri lost $50 million after Missouri officials failed to sufficiently put into effect a part of a landmark 1998 settlement with Big Tobacco. Particularly the pact required smaller tobacco companies that didn't sign the agreement to pay into an escrow account.
Under the agreement created by Koster, the money would be restored if the GOP-led House and Senate tighten laws on the smaller cigarette companies. The state has appealed, but the appeal is still pending with the Missouri Supreme Court.
Governor Jay Nixon last year cited loss of those funds as a reason to contain the $46 million in planned spending. However, Koster promised that tobacco manufacturers that signed the original agreement will restore the $50 million if lawmakers this session require other companies to pay their full share into the escrow account, as reported by News Tribune.
For now, the state law allows companies that concentrate sales in a few states to only pay in a portion to escrow. And if the lawmakers will pass that legislation, the state also will get an additional $11 million annually starting in 2020 and protection against any arbitration claims between 2004 and 2014.
