Oregon House Bill HB2128

Oregon 2023 Regular Session

• Introduced: 1/9/23
• Refer: 1/16/23
• Refer: 3/28/23
• Report Pass: 6/5/23
• Engrossed: 6/15/23
• Refer: 6/15/23
• Report Pass: 6/20/23
• Report Pass: 6/23/23
• Enrolled: 6/25/23
• Passed: 7/27/23
• Chaptered: 8/4/23
• Passed: 8/4/23

Caption

Relating to the Master Settlement Agreement.

Impact

If enacted, HB 2128 will amend several statutes that currently regulate tobacco product manufacturers in Oregon. The new provisions will effectively eliminate the escrow system that has been in place since the Master Settlement Agreement was established. Instead, manufacturers will be required to directly remit payments that equate to their liability for health care costs. This shift is expected to impact the financial obligations of both participating and non-participating manufacturers significantly, as it imposes a more immediate financial responsibility on tobacco companies.

Summary

House Bill 2128 seeks to overhaul the current system of escrow deposits required of tobacco product manufacturers by replacing it with a new requirement for direct payments to the state. The bill reflects Oregon's policy to hold all tobacco manufacturers liable for healthcare costs associated with cigarette-related diseases, regardless of their participation in the Master Settlement Agreement. This reform is aimed at ensuring that the financial burdens associated with smoking-related health issues are borne by the manufacturers rather than the state, enhancing accountability for health-related expenses generated by tobacco use.

Contention

The bill has prompted discussions around the implications for non-participating manufacturers who may face heightened financial scrutiny under the new framework. Critics argue that transitioning from an escrow deposit system could lead to increased financial burdens on smaller manufacturers, who might struggle with the immediate payment requirements. Supporters, however, view the legislation as a necessary step to ensure that all manufacturers contribute a fair share to offset the healthcare costs incurred by the state due to tobacco use, and thus, protect public health more effectively.