Tobacco trust fund established
The Tenorio administration installed safety nets and well-crafted mechanism to secure remittances from tobacco manufacturers involved in the multi-million Tobacco Master Settlement Agreement.
Gov. Pedro P. Tenorio yesterday signed into law House Bill 12-290 which established the Master Settlement Agreement Trust Fund to protect revenues received by the Commonwealth under the accord.
The bill which is now Public Law 12-44 designates a trust fund to which all payments obtained from tobacco companies will be deposited.
Under the law, these funds will be appropriated to the CNMI Health and Life Insurance Trust Fund, to the Department of Public Health, and to the implementation of the Youth Tobacco Education and Prevention Program.
At the same time, the governor signed into law House Bill 12-260 which requires tobacco manufacturers selling cigarettes to consumers within the CNMI to become a participating manufacturer bound by the Master Settlement Agreement.
Under PL 12-45, all tobacco manufacturers will be required to deposit substantial amount of money to a proposed trust fund which will finance future cigarette-related medical services that may be needed by CNMI smokers.
The law obligates all tobacco manufacturers whose products are being sold in the Northern Marianas market to participate in the Master Settlement Agreement.
This after the Attorney General’s Office warned that CNMI will lose millions from the Tobacco Master Settlement Agreement if the Legislature fail to tie loose ends of HB 12-260.
“Any tobacco product manufacturer selling cigarettes to consumers within the CNMI after the date of enactment of the Act shall become a participating manufacturer and generally perform its financial obligations under the agreement”, the new law reads.
The law also asked manufacturers to place into a qualified escrow fund by April 15 of the year the following amounts: $.01047 per unit sold after the date of enactment of the Act; for each 2001 and 2002, $..01675 per unit sold and for each of 2007 and each year after, $.01885 per unit sold.
Based on reports, lung cancer rates in the Commonwealth continue to soar in recent years, exceeding prevailing rates in the mainland United States.
In fact, an estimated 18 percent of the total cost of hospital days in 1994 for Chamorro and Carolinian patients were attributed to smoking-related ailments such as coronary heart disease, chronic obstructive lung disease and a variety of cancer.
Smoking presents serious public health concerns and may induce serious financial problems for the Commonwealth government.
The CNMI government pays millions of dollars each year to provide Commonwealth residents with medical assistance for health conditions associated with smoking.
AGO consumer counsel David Lochabay earlier alarmed Ms. Peter on the proposed 30-day notice posted by MSA states and territories regarding the 1999 Non-Participating Manufacturers Statutes.(EGA)
