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Senate Journal: Page 1225: Monday, April 22, 2002

S.F. 2323 - Relating to the creation of a registered nurse recruitment program and
fund to be administered by the college student aid commission. Approved April 26.

S.F. 2325 - Relating to certain state agency regulatory functions by reorganizing the
duties of the department of inspections and appeals, transferring the court appointed
special advocate program to the department of inspections and appeals, renaming and
revising the duties of the state citizen foster care review board, reorganizing the
administrative structure of the department of natural resources, providing for
legislative review of state agencies, and revising requirements for licensed birth
centers. Approved May 10.

S.F. 2328 - Providing for the establishment of the state percent of growth for
purposes of the state school foundation program and providing an applicability date.
Approved May 9.


May 10, 2002

The Honorable Chester Culver
Secretary of State
State Capitol

Dear Secretary Culver:

I hereby transmit Senate File 2317, an act relating to the tobacco master
settlement agreement, including tobacco product manufacturer compliance, making an
appropriation, and providing penalties. This legislation provides additional remedies
to aid in the enforcement of the Model Statute, Code 453C which was required to be
approved and enforced by the State in the Master Settlement Agreement with the
Tobacco Manufacturers.

Sections 1-8 of this bill would require compliance with chapter 453C before a
distributor could affix stamps to the product. Additionally, a registered agent would be
required for service of process of those out of state manufacturers selling in this state.
Iowa is required to "diligently enforce" chapter 453C and penalties for failure to are
monetary and substantial. The possibility exists that the entire amount owed to Iowa
for any particular year could be eliminated if the statute is not diligently enforced.

Section 9 is the balance owed the private counsel retained to represent Iowa in its
litigation against the Tobacco manufacturers. The original appropriation contained in
House File 755, section 25, of last year's appropriation was $944,877.60 short of the
obligation owed to the attorneys by contract. The shortage was created when estimates
paid by Tobacco manufacturers over the last three years did not meet actual obligation.
When the contractual obligation to the attorneys is concluded, the balance of the
payments will be assigned to the State.

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