Board approves positions to enforce tobacco settlement agreement

The Board of Examiners approved three new positions Tuesday to enforce provisions of the tobacco Master Settlement Agreement.

Taxation Director Bill Chisel said it's part of an effort in 46 states to track cigarette makers that aren't party to the 1998 agreement and ensure they are putting money into escrow accounts as required by law. The tax is 2 cents for every cigarette. For now, that money remains in escrow, but the states hope to eventually get it.

Chisel said the purpose of the enforcement unit is to audit the payments against records of those manufacturers.

Gov. Brian Sandoval asked him whether this isn't something that should have been requested during the 2011 Legislature. He said yes, "but at this point we need the money to get going."

He said it should be included in the next budget.

Ray Lummus of the state Taxation Department said the cigarette makers that aren't party to the settlement agreement are becoming a bigger market.

He said it's important that the state makes sure that 2 cents is put in escrow "for every stick that comes into Nevada."

The Master Settlement Agreement is worth as much as $40 million a year to Nevada. In Nevada, its primary uses are for health programs - including anti-smoking - and the Kenny Guinn Millennium Scholarship program, named for the formergovernor.