Andy Arnold to Drebes: Koster Covering His Ass on Master Settlement
“Dave- I know it’s complicated, but get the facts straight!
“The Missouri legislature enacted the model escrow statute that requires non-participating manufacturers to escrow money rather than join and pay into the MSA in 1999. That statute is Section 196.1000-1003. Subsequent to that, the legislature also enacted what is referred to as the ‘MSA complementary statute’, sections 196.1020-196.1035, RSMo in 2010 to give the AG the tools he needs to go after manufacturers that don’t pay escrow. Now Koster wants the legislature to pass a statute (SB 97) that severely restricts the non-participating manufacturers ability to compete by fixing their retail price $6 a carton higher than the current market price. Yes we are the only state that hasn’t passed this price-fixing measure, and yes I have lobbied effectively against it. Koster’s letter is a CYA because his office is charged with enforcement. If Missouri loses any money it’s because Koster didn’t enforce the law, not because the state legislature didn’t pass his price fixing bill. BTW, every other state in the MSA is in arbitration too, and they passed his price fixing bill.”
Originally in February 27 MOScout.