Chuck
December 14th, 2004, 07:15 PM
FRANKFORT--A court in North Carolina holds the key to Kentucky tobacco
farmers and farm owners getting $124 million in tobacco trust payments
this year.
Michael Plumley with the Kentucky Office of Attorney General told the
legislative Tobacco Settlement Agreement Fund Oversight Committee today
that the court has placed a moratorium on 2004 Phase II payments until
it decides whether the tobacco industry must make the payments,
typically mailed to Kentucky farmers in December.
Tobacco companies argue that the recent passage of a federal tobacco
buyout relieves them of their Phase II obligation for 2004.
It is unlikely that the payments will be disbursed this year, Plumley
said, but he did not rule a disbursement out completely.
"We should know next week if we will have a decision saying that the
money should be paid or distributed," he said.
Governor's Office of Agricultural Policy Executive Director Keith Rogers
told the committee that should the moratorium be lifted, Phase II
trustees say it will take about three weeks to disburse available funds.
No matter what the court's decision is, Plumley said there will likely
be an appeal.
Committee co-chair Rep. Roger Thomas, D-Smiths Grove, said he has heard
that tobacco companies are scaling back their discount retail cigarette
market and plan to increase cigarette prices. Rogers said that may be a
reaction to the buyout legislation.
"I think they're looking at how they're going to pay for the buyout," he
said.
farmers and farm owners getting $124 million in tobacco trust payments
this year.
Michael Plumley with the Kentucky Office of Attorney General told the
legislative Tobacco Settlement Agreement Fund Oversight Committee today
that the court has placed a moratorium on 2004 Phase II payments until
it decides whether the tobacco industry must make the payments,
typically mailed to Kentucky farmers in December.
Tobacco companies argue that the recent passage of a federal tobacco
buyout relieves them of their Phase II obligation for 2004.
It is unlikely that the payments will be disbursed this year, Plumley
said, but he did not rule a disbursement out completely.
"We should know next week if we will have a decision saying that the
money should be paid or distributed," he said.
Governor's Office of Agricultural Policy Executive Director Keith Rogers
told the committee that should the moratorium be lifted, Phase II
trustees say it will take about three weeks to disburse available funds.
No matter what the court's decision is, Plumley said there will likely
be an appeal.
Committee co-chair Rep. Roger Thomas, D-Smiths Grove, said he has heard
that tobacco companies are scaling back their discount retail cigarette
market and plan to increase cigarette prices. Rogers said that may be a
reaction to the buyout legislation.
"I think they're looking at how they're going to pay for the buyout," he
said.