Supporters: Bill would close tobacco loophole, save taxpayers $50 million

10 months 1 week 2 days ago April 19, 2016 Apr 19, 2016 Tuesday, April 19 2016 Tuesday, April 19, 2016 3:33:00 PM CDT in News
By: Connor Smith, KOMU 8 Reporter

JEFFERSON CITY - A loophole in a settlement agreement with tobacco companies has cost Missouri $50 million this year. The state has a chance to recover the money if the legislature is able to pass a bill before the end of the session. 

Business, health care, education and law enforcement groups on Tuesday urged lawmakers to pass SB 1096. The legislation, if passed, would make Missouri the last state to close a tobacco loophole that could cost Missouri up to $1 billion in future payments to tobacco companies.

Attorney General Chris Koster negotiated a settlement with tobacco companies in February to resolve a contract dispute over annual tobacco payments to the state. The settlement shows Missouri would recover $50 million dollars already lost, shield itself from future losses, and receive an estimated $11 million increase to the payments tobacco companies make to Missouri beginning in 2020.

The legislature already missed an April 15 deadline that would have allowed the state to receive the $50 million with this year's payments, according to the Attorney General's office.

The bill's sponsor, Sen. Bob Dixon, R-Greene County, said there is still time for the legislature to recover the money. 

"If we enact the reforms and close the loophole in the Master Settlement Agreement by the end of this legislative session, then it'll be potentially $53 million," he said. "Those funds would be included in next April's payment."

Joy Oesterly, Executive Director at Missouri KidsFirst, said, if the loophole is not closed, the loss of revenue could affect the organization's child advocacy groups that investigate child abuse.

"About one-third of their funding on a state-wide basis comes from state revenue and any cut to state revenue has the potential to cut those funds that go out to our child advocacy centers," she said.

The Senate moved the bill to the informal calendar Tuesday, so the bill can be brought up for debate as early as Wednesday. If passed, the bill will move to the House. 

 

More News

Grid
List
COLUMBIA - A local cleaning company is washing its hands of dirty business, but probably not for the last time.... More >>
1 hour ago February 27, 2017 Feb 27, 2017 Monday, February 27 2017 Monday, February 27, 2017 7:54:00 PM CST in Target 8
JEFFERSON CITY (AP) — A Missouri judge said the state Corrections Department intentionally delayed fulfilling a Sunshine request for the... More >>
2 hours ago February 27, 2017 Feb 27, 2017 Monday, February 27 2017 Monday, February 27, 2017 7:19:00 PM CST in News
JEFFERSON CITY (AP) — The Missouri public defender system says Gov. Eric Greitens' proposal to restore some of its budget... More >>
2 hours ago February 27, 2017 Feb 27, 2017 Monday, February 27 2017 Monday, February 27, 2017 7:06:56 PM CST in News
ROLLA - Determination, courage and spunk run in Danny Shelton's blood. But factor IX, a vital clotting protein, does not.... More >>
2 hours ago February 27, 2017 Feb 27, 2017 Monday, February 27 2017 Monday, February 27, 2017 7:05:00 PM CST in News
JEFFERSON CITY – The Missouri State Highway Patrol is searching for more state troopers after experiencing a decrease in applicants.... More >>
2 hours ago February 27, 2017 Feb 27, 2017 Monday, February 27 2017 Monday, February 27, 2017 7:05:00 PM CST in News
KINGDOM CITY - The North Callaway R-1 School District decided to move to a four-day school week for the 2017-2018... More >>
4 hours ago February 27, 2017 Feb 27, 2017 Monday, February 27 2017 Monday, February 27, 2017 4:39:00 PM CST in News
ST. LOUIS (AP) Three people are facing charges after being arrested at a St. Louis rally in support of LGBTQ... More >>
6 hours ago February 27, 2017 Feb 27, 2017 Monday, February 27 2017 Monday, February 27, 2017 3:23:25 PM CST in News
COLUMBIA - New nationwide standards for staffing fire departments suggest Columbia needs 95 more firefighters. This number comes from... More >>
6 hours ago February 27, 2017 Feb 27, 2017 Monday, February 27 2017 Monday, February 27, 2017 2:51:00 PM CST in News
COLUMBIA - Results from the Missouri Quality Initiative for Nursing Homes (MOQI), show that advanced practice registered nurses, or APRNs,... More >>
7 hours ago February 27, 2017 Feb 27, 2017 Monday, February 27 2017 Monday, February 27, 2017 1:52:00 PM CST in News
COLUMBIA - Passengers at Columbia Regional Airport (COU) will soon have more flight options. United Airlines confirmed it will... More >>
8 hours ago February 27, 2017 Feb 27, 2017 Monday, February 27 2017 Monday, February 27, 2017 1:01:00 PM CST in Top Stories
COLUMBIA - "Not enough time" is one of the most frequently-used reasons to not exercise. What if I told you... More >>
8 hours ago February 27, 2017 Feb 27, 2017 Monday, February 27 2017 Monday, February 27, 2017 12:59:00 PM CST in News
ST. JAMES (AP) — An elderly husband and wife are dead after a head-on crash in central Missouri. The... More >>
11 hours ago February 27, 2017 Feb 27, 2017 Monday, February 27 2017 Monday, February 27, 2017 9:46:22 AM CST in News
ST. LOUIS (AP) — A 32-year-old St. Louis native is a key player in President Donald Trump's White House. ... More >>
11 hours ago February 27, 2017 Feb 27, 2017 Monday, February 27 2017 Monday, February 27, 2017 9:43:50 AM CST in News
KANSAS CITY, Mo. (AP) — Kansas City police say one of the victims of a double shooting has died. ... More >>
14 hours ago February 27, 2017 Feb 27, 2017 Monday, February 27 2017 Monday, February 27, 2017 7:07:00 AM CST in News
JEFFERSON CITY- Republican lawmakers continue at odds over the Real ID Act . One side of the argument seeks to... More >>
22 hours ago February 26, 2017 Feb 26, 2017 Sunday, February 26 2017 Sunday, February 26, 2017 11:30:00 PM CST in Top Stories
COLUMBIA - As President Donald Trump prepares an alternate version of a temporary travel ban on refugees and members of... More >>
1 day ago February 26, 2017 Feb 26, 2017 Sunday, February 26 2017 Sunday, February 26, 2017 6:00:00 PM CST in News
COLUMBIA - Planned Parenthood opponents are planning a month of protests after a march that drew between 50 and 100... More >>
1 day ago February 26, 2017 Feb 26, 2017 Sunday, February 26 2017 Sunday, February 26, 2017 5:57:00 PM CST in News
ST. CHARLES (AP) — A Missouri woman has pleaded guilty to neglect after authorities say she left her 2-year-old boy... More >>
1 day ago February 26, 2017 Feb 26, 2017 Sunday, February 26 2017 Sunday, February 26, 2017 5:30:30 PM CST in News
Columbia, MO
Broken Clouds 60°
10pm 59°
11pm 59°
12am 56°
1am 56°

Select a station to view its upcoming schedule:

Coming Up Next

9:00p
Taken
10:00p
KOMU 8 News @ 10
10:35p
The Tonight Show Starring Jimmy Fallon
9:30p
Seinfeld
10:00p
The King of Queens
10:30p
The King of Queens

Tonight's Schedule

7:00p
The Voice
9:00p
Taken
7:00p
Supergirl
8:00p
Jane the Virgin
9:00p
KOMU 8 News @ Nine on The CW
9:30p
Seinfeld