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.
An Act Concerning The Use Of Funds In The Opioid And Tobacco Settlement Funds And Funds Received By The State As Part Of Any Settlement Agreement With A Manufacturer Of Electronic Nicotine Delivery System And Vapor Products.
An Act Concerning The Department Of Revenue Services' Statutes And Procedures, Including Background Checks For Employees, The Master Settlement Agreement, The Motor Vehicle Fuels Tax, The Estate Tax, Additions And Changes To Various Public Lists Maintained By The Department, The Payment Schedule For The Sales And Use Tax, A Data Match System With Financial Institutions, The Personal Income Tax And Technical Corrections.
In preliminary provisions, further providing for definitions; in tobacco product manufacturers directory, further providing for directory, for certification, for required information, for agent for service of process and for records and reporting and providing for nonparticipating manufacturer and importer joint and several liability and for surety bond requirements; and imposing duties on the Office of Attorney General.