ENROLLED
Senate Bill No. 697
(By Senators Craigo, Anderson, Bailey, Bowman, Chafin, Edgell, Helmick,
Jackson, Love, Plymale, Prezioso, Sharpe, Unger, Walker, Sprouse, Boley
and Minear)
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[Passed March 9, 1999; in effect from passage.]
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AN ACT to amend chapter sixteen of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, by adding
thereto a new article, designated article nine-c, relating
to the creation of a state tobacco growers' settlement
board; setting forth legislative findings; defining terms;
establishing the membership of and positions on the board;
and duties and responsibilities of the state tobacco
grower's settlement board.
Be it enacted by the Legislature of West Virginia:
That chapter sixteen of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, be amended by
adding thereto a new article, designated article nine-c, to read
as follows:
ARTICLE 9C. STATE TOBACCO GROWERS' SETTLEMENT BOARD.
§16-9C-1. Findings and purpose.
(a) Cigarette smoking presents serious public health
concerns as well as serious financial concerns for the state. In
response, the state pursued legal claims against leading tobacco
product manufacturers to recover damages caused by the public
health and financial consequences of cigarette smoking. On the
twenty-third day of November, one thousand nine hundred ninety- eight, leading United States tobacco product manufacturers
entered into a settlement agreement, entitled "master settlement
agreement", with the state. The master settlement agreement
obligates these manufacturers to pay substantial sums to the
state in exchange for a release of past, present and future
claims against them.
(b) The tobacco growers of the state are not a party or a
beneficiary of the master settlement agreement.
(c) In view of the master settlement agreement, similar
agreements between other states and tobacco product
manufacturers, and the heightened public awareness and scrutiny
of the dangers associated with cigarette smoking, the state has a significant interest in protecting tobacco growers from
negative economic and financial consequences arising from changes
in the cigarette industry, such as decreased consumption, demand
and prices.
(d) On the twenty-first day of January, one thousand nine
hundred ninety-nine, leading United States tobacco product
manufacturers agreed to establish a national tobacco community
trust, for the sole benefit of tobacco growers, payable over a
twelve-year period, beginning in the year one thousand nine
hundred ninety-nine. The tobacco growers in this state (and
thirteen other states) are eligible to participate in the
national tobacco community trust upon the creation of a state
tobacco grower board, which will consummate a tobacco grower
settlement with the tobacco product manufacturers.
§16-9C-2. Definitions.
(a) "Cigarette" means any product that contains nicotine, is
intended to be burned or heated under ordinary conditions of use,
and consists of or contains: (1) Any roll of tobacco wrapped in
paper or in any substance not containing tobacco; or (2) tobacco,
in any form, that is functional in the product, which, because of its appearance, the type of tobacco used in the filler, or its
packaging and labeling, is likely to be offered to, or purchased
by, consumers as a cigarette; or (3) any roll of tobacco wrapped
in any substance containing tobacco which, because of its
appearance, the type of tobacco used in the filler, or its
packaging and labeling, is likely to be offered to, or purchased
by, consumers as a cigarette as that term is described in this
subsection. The term "cigarette" includes "roll-your-own" which
means any tobacco which, because of its appearance, type,
packaging, or labeling is suitable for use and likely to be
offered to, or purchased by, consumers as tobacco for making
cigarettes. For purposes of this definition of cigarette, 0.09
ounces of "roll-your-own" tobacco shall constitute one individual
cigarette.
(b) "Master settlement agreement" means the settlement
agreement (and related documents) entered into on the twenty- third day of November, one thousand nine hundred ninety-eight, by
the state and leading United States tobacco product
manufacturers.
(c) "National tobacco community trust" means the trust fund agreed to by leading United States tobacco product manufacturers,
to be established and funded by them for the sole benefit of
state tobacco growers.
(d) "Tobacco grower" means a person who has a direct
financial interest in planting, cultivating and harvesting
tobacco for sale. Tobacco grower includes a person who possesses
a quota to market tobacco as administered by the United States
Department of Agriculture.
(e) "Trust" means the national tobacco community trust as
defined in section two-c of this article subsection (c) of this section.
§16-9BC-3. Creation of board.
There is hereby created a board to be known as the "state
tobacco growers' settlement board" consisting of three members:
the governor, the attorney general and the commissioner of
agriculture, or their designees. The governor or his or her
designee shall serve as the chair, the commissioner of
agriculture or his or her designee shall serve as the vice chair,
and the attorney general or his or her designee shall serve as
the secretary.
§16-9BC-4. Duties and responsibilities of the state tobacco
grower board.
The duties and responsibilities of the board shall include,
but are not limited to:
(a) The consummation of a settlement with leading United
States tobacco product manufacturers for the exclusive benefit of
state tobacco growers;
(b) The execution of all necessary written agreements
relative to the national tobacco community trust to ensure state
tobacco growers' receipt of funds directly from the trust;
(c) Consultation with tobacco growers within the state in
order to determine how funds allocated by the national tobacco
community trust shall be distributed among state tobacco growers
to compensate them for the adverse effects of decreased
consumption, demand and price for cigarettes;
(d) The submission of a plan to the national tobacco
community trust identifying state tobacco growers and the
distribution of trust funds to state tobacco growers; and
(e) The certification of instructions annually to the
national tobacco community trust regarding distribution of funds
from the trust directly to the state tobacco growers during the
twelve year payment period, beginning in the year one thousand nine hundred ninety-nine.
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