FOR IMMEDIATE RELEASE
November 23, 2004
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Rafferty's Senate Bill 1149 Becomes Law 

The General Assembly has approved legislation sponsored by Sen. John Rafferty (R-Montgomery) that would close a loophole that could cost payments into Pennsylvania's Tobacco Settlement Fund.

The Tobacco Settlement Agreement Act of 2000 requires cigarette manufacturers not participating in the settlement (NPMs) to contribute to the Tobacco Settlement Fund escrow account to cover any future judgments against them. 

However, the law allows NPMs that concentrate their sales in a single state or a few states to obtain releases of the great majority of their escrow deposits. Senate Bill 1149 would amend the Tobacco Settlement Agreement Act to close the loophole. Similar legislation has been adopted by 32 states.

"This legislation will ensure that Pennsylvania is receiving its fair share of dollars from all cigarette manufacturers and will bring more money to the state for vital health-care programs and services," Rafferty said.  "Our tobacco fund pays for a wide range of health-related services, from in-home care for seniors to prescription drug assistance and health insurance for low-income Pennsylvanians.  So it's important that we receive every dollar we are entitled to."