THE CNMI might soon lose a large amount of tobacco settlement money if the Legislature would not pass a measure amending a law enacted last year.
On Nov. 23, 1998, leading U.S. tobacco product manufacturers entered into a settlement agreement with the U.S. and its territories. The agreement obligates these manufacturers to pay substantial sums to the federal, state and insular governments for a national foundation devoted to the interest of public health.
The vice chairwoman of the House Health and Welfare Committee, Gloria DLC. Cabrera, has pre-filed H.B. 13-134 which seeks to amend P.L. 12-45 signed by then Gov. Pedro P. Tenorio on April 20, 2001.
She said the bill was a response to the request of the National Association of Attorneys General for the CNMI to come up with an amendment to the law which should be a “model statute” consistent with the requirements under the master settlement agreement.
The amendment to P.L. 12-45 calls for specific language requiring non-participating tobacco manufacturers to establish a reserve fund that will guarantee a “source of compensation for those who fall victim to tobacco use and abuse as well as to prevent these (manufacturers) from capitalizing or maximizing profits on tobacco sales and be free of any form of liability.”
Non-participating tobacco manufacturers are those small to middle tobacco manufactures that did not enter into the master settlement agreement.
Also, the amendment seeks to omit specific language in the law that is not required by the settlement agreement as well as various typographical errors which pose a “substantive significance” to the overall objective of the law and the CNMI’s participation in the master settlement lawsuit.
Cabrera, R-Saipan, said that if by July 1 the CNMI would still not be able to come up with an amended version of P.L. 12-45, “the (islands) will lose probably hundreds of thousands of dollars which could be invested in developing the necessary programs to address the deadly effects of tobacco use and abuse.”
Based on the March 2002 Tobacco Settlement report by the Council of State Governments, the CNMI is scheduled to receive an estimated $16.53 million of settlement funds.
However, if the data showed that there was a decrease in the number of cigarettes sold, this would negatively impact the amount of money that the participating manufacturers would pay into the settlement agreement and subsequently to each of the participating states and territories.
“This is a pressing issue that needs to be addressed by the Legislature and the administration. With the impending deadline, we cannot afford to sit on the issue. The CNMI must take the necessary action to amend the current statute immediately,” she said.
Cabrera has already requested the House leadership to call a special session for the discussion and passage of her bill.
