A measure introduced by Rep. Gloria DLC. Cabrera which would entitle the CNMI to get tobacco settlement money was passed by the Senate in a special session on Rota.
The Senate was supposed to entertain H.B. 13-134 last May 27, but then acting Senate President Jose M. Dela Cruz, D-Tinian, said Sen. Pete P. Reyes asked to be given time to “digest” the content of the bill.
The CNMI already has P.L. 12-45 which should have served as a model statute consistent with the requirements under the tobacco master settlement agreement.
However, the National Association of Attorneys General said the law was deficient and needs to be amended so it would not contradict the intent of the agreement. The group said the CNMI must have a law amending P.L. 12-45 on or before July 1 or the CNMI will not be entitled to receive its share of the settlement money.
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 manufacturers from capitalizing or maximizing profits on tobacco sale and be free from any form of liability.
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 CNMI is scheduled to receive an estimated $16.53 million of settlement funds. However, Cabrera, R-Saipan, said that 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.
