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 subsection (c) of this section.
§16-9C-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.
§16-9C-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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