INTRODUCTION
## Legislative bill overview
This bill would alter the existing Tobacco Product Manufacturers' Escrow Act by replacing the escrow fund requirement with an annual "equity fee" paid by tobacco manufacturers who do not participate in the 1998 Master Tobacco Settlement Agreement. The fee aims to help the state recoup tobacco-related health care costs.
## Why is this important
The bill seeks to create a more equitable system to have all tobacco manufacturers, not just those in the 1998 settlement, help pay for the public health impacts of smoking. It would provide funding for tobacco prevention and health care programs.
## Potential points of contention
- The impact the fees would have on cigarette prices and smoking rates
- Whether the fees sufficiently match health care costs caused by non-participating manufacturers
- Ensuring the change does not negatively impact Maryland's Master Settlement Agreement payments
- How dispute mechanisms over annual fees would work
STATUS
11 months ago -
Introduced