State Looking for Tobacco Growers Whose Checks Were Returned

Source from:  Associated Press LEXINGTON, Ky. 01/04/2006

It's not exactly the lottery, but some Kentucky tobacco growers have money waiting on them in the state coffers. The total of more than 5,000 checks that came back after the state sent them out last June was more than $863,000. The 164,000 checks totaled $114 million as part of the Phase II Tobacco Settlement program. Tobacco companies paid the money to compensate for years of dwindling quotas. Some were returned because no forwarding address was left, the forwarding address had expired, the recipient was deceased or unknown or the Post Office box was closed. The state set up a Web site listing recipients of returned checks to help find those who are missing and get their money to them. "This money belongs to tobacco farmers and we want to make sure they get it," state Sen. Ernesto Scorsone, D-Lexington, said in a statement. More returns are expected from another round of 164,000 checks sent out on Friday. Those checks total $16.5 million. The June checks expire after a year, then the money will go into an unclaimed property fund. After three years, the state will spend it elsewhere. The checks sent out last week will be the last. Kentucky tobacco quota holders, growers and tenants have received more than $732.6 million in Phase II money since 1999. The program was superseded by the Federal Tobacco Buyout in October 2004. Quota holders and growers will receive $9.6 billion over the next decade from the buyout. Tobacco companies balked at paying the last two Phase II checks, saying the buyout ended the settlement program. The state fronted the money for the June payments but was reimbursed after a North Carolina judge ruled that the companies owed the money. Enditem