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

2 years 8 months 4 weeks ago Tuesday, April 19 2016 Apr 19, 2016 Tuesday, April 19, 2016 3:33:00 PM CDT April 19, 2016 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 - The friend of a man killed on Sarazen Drive over the weekend says investigators told him John Albers... More >>
38 minutes ago Wednesday, January 16 2019 Jan 16, 2019 Wednesday, January 16, 2019 3:46:00 PM CST January 16, 2019 in News
KANSAS CITY (AP) — A University of Missouri-Kansas City professor has resigned after being accused of coercing foreign graduate students... More >>
1 hour ago Wednesday, January 16 2019 Jan 16, 2019 Wednesday, January 16, 2019 2:46:00 PM CST January 16, 2019 in News
SPRINGFIELD — A Missouri health provider will have to pay tens of millions of dollars to a former patient... More >>
3 hours ago Wednesday, January 16 2019 Jan 16, 2019 Wednesday, January 16, 2019 1:13:00 PM CST January 16, 2019 in News
COLUMBIA - Applications are now available for a giveaway designed to provide computers for low-income families. The city relinquishes... More >>
3 hours ago Wednesday, January 16 2019 Jan 16, 2019 Wednesday, January 16, 2019 12:26:00 PM CST January 16, 2019 in News
JEFFERSON CITY - Attorney general Eric Schmitt announced a settlement with Fiat Chrysler and auto parts supplier Bosch over unlawful... More >>
5 hours ago Wednesday, January 16 2019 Jan 16, 2019 Wednesday, January 16, 2019 11:05:00 AM CST January 16, 2019 in News
COLUMBIA - The University of Missouri will open residence halls a day earlier than planned amid predictions of another winter... More >>
6 hours ago Wednesday, January 16 2019 Jan 16, 2019 Wednesday, January 16, 2019 10:04:00 AM CST January 16, 2019 in News
JEFFERSON CITY – Missouri Governor Mike Parson will give his first State of the State address in the Missouri House... More >>
8 hours ago Wednesday, January 16 2019 Jan 16, 2019 Wednesday, January 16, 2019 7:25:00 AM CST January 16, 2019 in News
WASHINGTON (AP) — Staring down the next deadline to pay federal workers, the White House shifted tactics, trying to bypass... More >>
11 hours ago Wednesday, January 16 2019 Jan 16, 2019 Wednesday, January 16, 2019 4:57:00 AM CST January 16, 2019 in News
COLUMBIA - Mayoral incumbent Brian Treece and opponent, Chris Kelly, faced off in the second mayoral candidate forum Tuesday. ... More >>
18 hours ago Tuesday, January 15 2019 Jan 15, 2019 Tuesday, January 15, 2019 9:27:00 PM CST January 15, 2019 in News
Watch KOMU 8 newscasts and download the KOMU WX app for live coverage and alerts. COLUMBIA - Another winter... More >>
19 hours ago Tuesday, January 15 2019 Jan 15, 2019 Tuesday, January 15, 2019 8:30:00 PM CST January 15, 2019 in Weather
OVERLAND (AP) — The Major Case Squad of Greater St. Louis is investigating a fatal shooting outside a McDonald's restaurant... More >>
23 hours ago Tuesday, January 15 2019 Jan 15, 2019 Tuesday, January 15, 2019 4:37:00 PM CST January 15, 2019 in News
COLUMBIA - A new bill before the Senate would ban texting and driving for drivers of all ages. It's... More >>
1 day ago Tuesday, January 15 2019 Jan 15, 2019 Tuesday, January 15, 2019 4:24:00 PM CST January 15, 2019 in News
KANSAS CITY (AP) — Kansas City police say people at one address fired 360 shots from at least nine guns... More >>
1 day ago Tuesday, January 15 2019 Jan 15, 2019 Tuesday, January 15, 2019 3:46:00 PM CST January 15, 2019 in News
OSAGE BEACH – A Sunrise Beach woman who worked at a Zales Outlet Store admitted to stealing a diamond bracelet... More >>
1 day ago Tuesday, January 15 2019 Jan 15, 2019 Tuesday, January 15, 2019 3:43:00 PM CST January 15, 2019 in News
JEFFERSON CITY- The woman accused of killing 4-year-old Darnell Gray waived the formal reading on her arraignment on Tuesday and... More >>
1 day ago Tuesday, January 15 2019 Jan 15, 2019 Tuesday, January 15, 2019 3:00:00 PM CST January 15, 2019 in News
JEFFERSON CITY - When Tiwan Lewis lost her home to a fire in December 2017, she found herself experiencing homelessness.... More >>
1 day ago Tuesday, January 15 2019 Jan 15, 2019 Tuesday, January 15, 2019 2:55:00 PM CST January 15, 2019 in News
JEFFERSON CITY (AP) — A central Missouri prosecutor's office has been ordered to pay $36,000 for failing to provide records... More >>
1 day ago Tuesday, January 15 2019 Jan 15, 2019 Tuesday, January 15, 2019 2:23:00 PM CST January 15, 2019 in News
JEFFERSON CITY, (AP) — Missouri House lawmakers on Tuesday voted against protections for LGBT staffers and gave themselves the option... More >>
1 day ago Tuesday, January 15 2019 Jan 15, 2019 Tuesday, January 15, 2019 2:09:00 PM CST January 15, 2019 in News
Columbia, MO
Broken Clouds 34°
5pm 34°
6pm 34°
7pm 34°
8pm 34°