How does the tobacco settlement agreement affect the state’s settlement payments?
Thus, to the extent that the volume of cigarettes shipped within the U.S. does not decrease, the total payments to the states will increase. The tobacco settlement agreement likely brings to a close various state and local government litigation against the tobacco companies and has a number of legal implications.
What is the tobacco Master Settlement Agreement (MSA)?
The Tobacco Master Settlement Agreement (MSA) | NAAG In 1998, 52 state and territory attorneys general signed the Master Settlement Agreement (MSA) with the four largest tobacco companies in the U.S. to settle dozens of state lawsuits brought to recover billions of dollars in health care costs associated with treating smoking-related illnesses.
How much did Michigan receive from the tobacco settlement money?
^ "Since the MSA was adopted, the tobacco companies have paid a total of more than $138 billion, with Michigan receiving more than $5.9 billion". ^ "Tobacco Settlement Funds Sprinklers, Golf Carts and a Grease Trap". ^ "Who Is Really Benefiting From the Tobacco Settlement Money?".
How did the tobacco companies get money from the government?
Basically, the tobacco companies had money; the states and their hired-gun attorneys wanted money; so the companies paid and the states collected. Then sick smokers got stuck with the bill.
What effect did the settlement have on tobacco sold in the US?
Revenues from domestic sales of tobacco products increased after the MSA was reached, and profits from this source increased as well. Although overall domestic consumption of cigarettes decreased,22 the cigarette price increases more than offset such declines.
What was the result of the tobacco lawsuit?
Under the Master Settlement Agreement, seven tobacco companies agreed to change the way they market tobacco products and to pay the states an estimated $206 billion.
What was the purpose of the tobacco lawsuit case that resulted in the tobacco Master settlement?
to create and fund the National Public Education Foundation, dedicated to reducing youth smoking and preventing diseases associated with smoking. to make annual payments to the settling states in perpetuity.
How does the tobacco settlement money help disease prevention and health promotion?
The American Lung Association believes that states must use these tobacco settlement dollars, which are intended to compensate states for the healthcare costs from treating sick smokers and former smokers, and revenue from tobacco taxes to fund robust tobacco prevention programs to help tackle the #1 preventable cause ...
Does the government get money from cigarettes?
State and local governments collected $19 billion in revenue from tobacco taxes in 2019, which was 0.6 percent of state and local general revenue.
Can I sue tobacco companies for COPD?
Yes, you can still sue tobacco companies in certain cases. You may be able to bring an action as an individual or, in some cases, as a representative of a class in a class action.
When was the tobacco lawsuit settled?
In 1998, 52 state and territory attorneys general signed the Master Settlement Agreement (MSA) with the four largest tobacco companies in the U.S. to settle dozens of state lawsuits brought to recover billions of dollars in health care costs associated with treating smoking-related illnesses.
What was the big tobacco lawsuit?
In 2006, the American Cancer Society and other plaintiffs won a major court case against Big Tobacco. Judge Gladys Kessler found tobacco companies guilty of lying to the American public about the deadly effects of cigarettes and secondhand smoke.
What is MSA reporting for tobacco?
MSA Multicat Mandatory Data Multicat reports are weekly reports filed electronically by tobacco, candy, drinks, and grocery distributors to report sales and inventory floor counts to brand manufacturers as part of participating in their trade programs.
What were the terms of the Master Settlement Agreement?
It requires the tobacco industry to pay the settling states billions of dollars annually forever, forbids participating cigarette manufacturers from targeting youth, imposes restrictions on advertising and promotional activities, and bans or restricts transit advertising, outdoor advertising, product placement in media ...
When was the big tobacco lawsuit?
In 2006, the American Cancer Society and other plaintiffs won a major court case against Big Tobacco. Judge Gladys Kessler found tobacco companies guilty of lying to the American public about the deadly effects of cigarettes and secondhand smoke.
What law did Congress pass in 1984 that affected how cigarettes are labeled?
As a result of this report, Congress enacted the Comprehensive Smoking Education Act of 1984 (Public Law 98–474), which required four specific health warnings on all cigarette packages and advertisements: SURGEON GENERAL'S WARNING: Smoking Causes Lung Cancer, Heart Disease, Emphysema, and May Complicate Pregnancy.
What do you put in a snuff box?
Snuffboxes were used for containing snuff, a mixture of ground tobacco and scented oils, and were very popular in the 18th century when snuff-taking was fashionable. Highly decorated and valuable objects, they became collectors' items in the 19th century. Read more about this object in our search the collection pages.
Where did tobacco originally come from?
Tobacco is derived from the leaves of the genus Nicotiana, a plant from the night-shade family, indigenous to North and South America. Archeological studies suggest the use of tobacco in around first century BC, when Maya people of Central America used tobacco leaves for smoking, in sacred and religious ceremonies.
How many tobacco companies have settled under the MSA?
Eventually, more than 45 tobacco companies settled with the Settling States under the MSA. Although Florida, Minnesota, Mississippi, and Texas are not signatories to the MSA, they have their own individual tobacco settlements, which occurred prior to the MSA.
What is the prohibition on tobacco companies?
Prohibiting tobacco companies from taking any action to target youth in the advertising, promotion or marketing of tobacco products.
What is the NAAG Center for Tobacco and Public Health?
The NAAG Center for Tobacco and Public Health works with the Settling States of the MSA to preserve and enforce the MSA’s monetary and public-health mandates, including: Representing, advising, and supporting the Settling States in MSA-related legal matters , including litigation and arbitrations.
What law gave the FDA the power to regulate tobacco products?
In 2009, the Family Smoking Prevention and Tobacco Control Act gave the FDA the power to regulate tobacco products. State attorneys general have been active participants in helping the FDA shape its regulatory authority.
How does the MSA affect smoking?
The MSA continues to have a profound effect on smoking in America, particularly among youth. Between 1998 and 2019 , U.S. cigarette consumption dropped by more than 50%. During that same time period, regular smoking by high schoolers dropped from its near peak of 36.4% in 1997 to a low 6.0% in 2019. As advocates for the public interest, state attorneys general are actively and successfully continuing to enforce the provisions of the MSA to reduce tobacco use and protect consumers.
What is the purpose of entering into agreements with major retail chains?
Entering into agreements with major retail chains to ensure that retailers comply with state laws setting the minimum age at which tobacco products may be purchased and limiting the quantity and content of tobacco advertising at retail locations.
What is the Truth Initiative?
Establishing and funding the Truth Initiative, an organization “dedicated to achieving a culture where all youth and young adults reject tobacco.”.
What is the tobacco master settlement agreement?
The Tobacco Master Settlement Agreement ( MSA) was entered in November 1998, originally between the four largest United States tobacco companies ( Philip Morris Inc., R. J. Reynolds, Brown & Williamson and Lorillard – the "original participating manufacturers", referred to as the "Majors") and the attorneys general of 46 states. The states settled their Medicaid lawsuits against the tobacco industry for recovery of their tobacco-related health-care costs. In exchange, the companies agreed to curtail or cease certain tobacco marketing practices, as well as to pay, in perpetuity, various annual payments to the states to compensate them for some of the medical costs of caring for persons with smoking-related illnesses. The money also funds a new anti-smoking advocacy group, called the Truth Initiative, that is responsible for such campaigns as Truth and maintains a public archive of documents resulting from the cases.
Who was the first to sue the tobacco industry?
The first was declared in May 1994 by Mississippi Attorney General Mike Moore . The general theory of these lawsuits was that the cigarettes produced by the tobacco industry contributed to health problems among the population, which in turn resulted in significant costs to the states' public health systems.
Why did the OPMs and the settling states not join the MSA?
The OPMs worried that the NPMs, both because they would not be bound by the advertising and other restrictions in the MSA and because they would not be required to make payments to the settling states, would be able to charge lower prices for their cigarettes and thus increase their market share.
How long does it take for a SPM to join the Master Settlement Agreement?
As an incentive to join the Master Settlement Agreement, the agreement provides that, if an SPM joined within ninety days following the Master Settlement Agreement's "Execution Date," that SPM is exempt ("exempt SPM") from making annual payments to the settling states unless the SPM increases its share of the national cigarette market beyond its 1998 market share, or beyond 125% of that SPM's 1997 market share. If the exempt SPM's market share in a given year increases beyond those relevant historic limits, the MSA requires that the exempt SPM make annual payments to the settling states, similar to those made by the OPMs, but based only upon the SPM's sales representing the exempt SPM's market share increase.
What was the 1997 National Settlement Proposal?
This proposed congressional remedy (1997 National Settlement Proposal (NSP), a.k.a. the "June 20, 1997 Proposal") for the cigarette tobacco problem resembled the eventual Multistate Settlement Agreement (MSA), but with important differences. For example, although the congressional proposal would have earmarked one-third of all funds to combat teenage smoking, no such restrictions appear in the MSA. In addition, the congressional proposal would have mandated Food and Drug Administration oversight and imposed federal advertising restrictions. It also would have granted immunity from state prosecutions; eliminated punitive damages in individual tort suits; and prohibited the use of class actions, or other joinder or aggregation devices without the defendant's consent, assuring that only individual actions could be brought. The congressional proposal called for payments to the states of $368.5 billion over 25 years. By contrast, assuming that the Majors would maintain their market share, the MSA provides baseline payments of about $200 billion over 25 years. This baseline payment is subject to
How many plaintiffs have ever prevailed in the tobacco case?
Only two plaintiffs ever prevailed, and both of those decisions were reversed on appeal. As scientific evidence mounted in the 1980s, tobacco companies claimed contributory negligence as they asserted adverse health effects were previously unknown or lacked substantial credibility.
How many lawsuits were filed against tobacco companies?
By the mid-1950s, individuals in the United States began to sue the companies responsible for manufacturing and marketing cigarettes for damages related to the effects of smoking. In the forty years through 1994, over 800 private claims were brought against tobacco companies in state courts across the country. The individuals asserted claims for negligent manufacture, negligent advertising, fraud, and violation of various state consumer protection statutes. The tobacco companies were successful against these lawsuits. Only two plaintiffs ever prevailed, and both of those decisions were reversed on appeal. As scientific evidence mounted in the 1980s, tobacco companies claimed contributory negligence as they asserted adverse health effects were previously unknown or lacked substantial credibility.
What are the services that are not counted in the septic system?
Health care education, outreach, screening, laboratory services, counseling, and case management may be counted. However, environmental services such as mosquito control, water testing, and septic tank inspection may not be counted.
Can a political subdivision spend the money it receives from the tobacco settlement for any purpose it chooses?
May a political subdivision spend the money it receives from the tobacco settlement for any purpose it chooses?#N#Yes, the use of the money is unrestricted. The settlement agreement does not require that it be spent for a particular purpose.
Can a foundation give money to a county?
However, if the foundation gave the money to the county as a general donation, giving the county clear authority to use the money at the county’s discretion, and the county used the money on health care, then the county could count the use of such funds as an unreimbursed health care expenditure.
Is tobacco settlement based on pro rata?
Yes, because all pro rata shares, beginning in 2000, are based on unreimbursed health care expenditures, as defined in the settlement agreement and health care expenditures made with tobacco settlement proceeds are treated as unreimbursed. See #12.
What is the Tobacco Master Settlement Agreement?
The Tobacco Master Settlement Agreement simultaneously represents one of the most egregious examples of a government shakedown of private industry and offers a case study of the problems that stem from big government and big business scratching each other’s backs. It has turned the largest tobacco companies into an indispensable cash cow for politicians and bureaucrats, enabled irresponsible state spending, and, amazingly, has resulted in less money for public health and tobacco control while propping up a declining industry. As is the case with discriminatory tobacco taxes, the incentives of the MSA are perverse: the more people smoke, the more money the government gets to spend on whatever it wants. The biggest losers are those with tobacco-related diseases and smokers trying to quit.
What was the master settlement agreement between the tobacco companies and the states?
In November 1998, forty-six US states, along with the District of Columbia and five US territories, and the major tobacco companies entered into a contract of an extraordinary nature. (The other four states, Florida, Minnesota, Mississippi, and Texas, had entered similar agreements on their own beginning the year before.) The agreement, known as the Master Settlement Agreement (MSA), represented the culmination of a decades-long argument between the tobacco companies and state governments. After the dangers of smoking became known, the tobacco industry had engaged in extensive efforts to somehow stay in business, deflect and defeat lawsuits, and minimize negative attention. Public healthcare systems—and most of the healthcare in this country is taxpayer-funded or subsidized—had seen an influx of patients with smoking-related diseases, and state governments began filing lawsuits against the tobacco companies, claiming they wanted money to help cover smoking-related healthcare costs. The tobacco companies had lots of money but were nervous about the states’ potential to sue them out of business. So, they decided to talk. The result was the MSA.
How do politicians take advantage of the tobacco industry?
Besides politicians’ quintessential habit of spending money on things it was not meant for, there is a more insidious way that they have taken advantage of the never-ending stream of money from the tobacco companies. This is called securitization, and it occurs when a cash-strapped state borrows against promised future MSA payments so that it can get the money immediately. The state issues bonds backed up by the promise of future payments. The term “tobacco bonds” is a reference to this irresponsible practice. The buyers of bonds (the most prominent of which are powerful financial institutions) make a handsome long-term profit. State governments and their taxpayers get a raw deal. As the Campaign for Tobacco-Free Kids warned as early as 2002, states that securitize their tobacco funds get much smaller total payments, “usually for about 40 cents on the dollar or less,” than they would if they let the future revenue come in as planned. Borrowing against future payments in exchange for less money today leads to fewer resources for public health and more money for Wall Street. Yet politicians openly turn to the MSA revenue to cover for their irresponsible spending. For example, in November 2017, as Pennsylvania tried to balance its budget shortfall that had been caused by a refusal to eliminate wasteful spending, securitizing tobacco settlement revenue was the preferred course of all parties. Unfortunately, even some otherwise fiscally responsible politicians like to securitize tobacco revenue, as they consider it a better option than raising taxes.
How does the amount paid by tobacco companies affect the number of cigarettes sold?
The amount paid by the tobacco companies would directly correlate to the number of cigarettes sold—the more cigarettes sold, the more money the states would get. In exchange for their money, the tobacco companies would not be sued by state and local governments seeking recovery of costs associated with tobacco use.
How much money did tobacco companies pay to the states?
Nearly twenty years later, the tobacco companies have paid a staggering $119.5 billion to the states and territories participating in the MSA and another $25.4 billion to the four states with their own agreements. What have the states done with this huge amount of money?
What is tobacco bonds?
The state issues bonds backed up by the promise of future payments. The term “tobacco bonds” is a reference to this irresponsible practice. The buyers of bonds (the most prominent of which are powerful financial institutions) make a handsome long-term profit. State governments and their taxpayers get a raw deal.
What are the incentives of the MSA?
As is the case with discriminatory tobacco taxes, the incentives of the MSA are perverse: the more people smoke, the more money the government gets to spend on whatever it wants. The biggest losers are those with tobacco-related diseases and smokers trying to quit.
How does the settlement affect cigarettes?
The settlement agreement contains provisions that allow the tobacco companies to decrease the amount they pay to the states if the nationwide sales of cigarettes decrease. Specifically, each year the amount of the payment to the states will be adjusted based on the volume of cigarettes shipped within the U.S. for sale. To the extent that this volume drops, the payments to states will decrease over time. The tobacco companies have raised their price per pack by 45 cents in order to pay for the settlement. To the extent that the increase in the price per pack reduces the amount of cigarettes consumed, the payments to the states would decrease over time.
What actions could offset tobacco payments?
Actions of the Federal Government That Could Offset Payments. The agreement has provisions to reduce the payments to the states in the event that the federal government takes certain specified actions against the tobacco companies by November 30, 2002. Specifically, if the Congress enacts legislation that provides for payments by the tobacco manufacturers (whether by settlement payment, tax, or other means), which the federal government then makes available to the states for health-related, tobacco-related, or for unrestricted purposes, the tobacco companies could offset their payments to the states by that amount. Under this scenario, the state might receive the same overall amount of money it would have otherwise received, but with the federal government setting the priorities or with significant strings attached. Neither the Congress nor the President have announced any intention to take such actions at this time; nevertheless, such actions remain a possibility in the future.
How much money did the tobacco companies pay in 2025?
The settlement agreement requires the tobacco companies to make payments to the states in perpetuity, with the payments totaling an estimated $206 billion through 2025 nationally. These funds will be divided among the states based on allocation percentages negotiated by the attorneys general. These allocation percentages are based on a variety of factors such as population and cigarette sales within the state. These state allocation percentages will not change over time. In order to pay for the settlement, the tobacco companies have raised the price per pack of cigarettes by 45 cents.
What companies are part of the tobacco agreement?
What Companies Are Part of the Agreement? The four major tobacco companies that negotiated the agreement are Brown & Williamson Tobacco Corporation, Lorillard Tobacco Company, Philip Morris Incorporated, and R.J. Reynolds Tobacco Company. These four manufacturers account for more than 95 percent of the total sales of cigarettes nationally. Since the release of the settlement, most of the remaining smaller tobacco manufacturers have joined the agreement, so that the market share of the participating tobacco companies accounts for about 99.7 percent of total national sales.
What is the settlement agreement?
The settlement agreement calls for financial payments to the states, the creation of a national foundation to develop an antismoking advertising and education program, and the establishment of certain advertising restrictions to benefit public health. Figure 1 summarizes the key features of the agreement, many of which are discussed in more detail below.
What was the result of the 1998 settlement of the California tobacco industry?
The agreement will result in significant new revenues to the state and local governments. In addition, it could result in reductions in smoking by citizens and thus have positive impacts on public health. In this report, we review the settlement agreement and its potential impact on California, answer a number of questions about how the settlement would work, and raise a number of issues for consideration by the Legislature.
Which states have settled their tobacco cases?
As indicated earlier, four states (Florida, Minnesota, Mississippi, and Texas) all have previously settled their cases against the tobacco companies with conditions and provisions similar to those of the current settlement. The amount of money projected for California under the current settlement, on a per capita basis, is similar to the amounts projected for Florida and Texas. However, in Mississippi, which was the first state to file a lawsuit, and in Minnesota, which settled just prior to the end of the trial, the per capita amounts were much greater than for California in the current multistate agreement.
How much did tobacco companies invest in 2002?
Relative to all four indices, investments in tobacco companies yielded higher returns to stockholders during 1990–2002 (fig 1, panel A). The value of a $100 investment in the tobacco industry by year end 2002 was $360, over $115 (47%) higher than an index of industries most similar to the tobacco companies. An equivalent investment in the S&P index would have yielded $249. The value of a $100 investment in 2002 was $308 for the total market (NASDAQ, AMEX, and NYSE) and $250 for the small-cap index Russell 2000. The value of a $100 investment in three tobacco companies exceeded S&P returns: Philip Morris ($528), Liggett ($898), and British American Tobacco ($494). For RJ Reynolds, the value of the investment ($127) was less than the S&P value during 1991–2002 ($240). Using a four year return for 1999–2002, an investment in tobacco at the beginning of 1999 yielded $162 by the end of 2002 (from $198 to $360). By contrast, the same investment in similar industries rose to $112 by the end of 2002 (from $223 to $245). By contrast, pre-MSA the increases were higher for the comparison companies ($100 to $223) than for the tobacco companies ($100 to $198). Returns for all of the other indexes were negative over this period.
How much did tobacco cost in 2002?
Using a four year return for 1999–2002, an investment in tobacco at the beginning of 1999 yielded $162 by the end of 2002 (from $198 to $360). By contrast, the same investment in similar industries rose to $112 by the end of 2002 (from $223 to $245).
How does MSA affect future profitability?
Several features of the MSA also potentially contributed to the companies’ future profitability. First, the MSA may have facilitated collusion in price. Experiencing a common “cost shock” from the MSA payment obligation, the companies could raise their selling prices of cigarettes with less fear of price cutting from their major competitors or from anti-trust scrutiny. Forward shifting is likely to be stronger in response to a federal (like the MSA) than to a state excise tax increase since there is a potential for cross border shopping for the latter. 11
How much was the penalty for smoking in 1999?
The penalty for 1999 amounted to $0.40 per pack, 19 including the cost of the four individual state settlements that were no part of the MSA. But price per pack rose by $0.73 between 1998 and 1999, a 29.7% increase for the year, most of which occurred in the month immediately following the MSA. 9,20 The value of coupons and promotions also rose by $0.09 per pack, but net, there still was an increase of $0.64 in the per pack price of cigarettes in the USA. 20,21 As a result, the companies remained profitable.
When did tobacco advertising increase?
Total advertising expenditures by the tobacco companies increased at a higher rate than the 1990–98 trend during 1999–2002, but total advertising expenditures net of spending on coupons and promotions decreased.
What are the main outcome measures of MSA?
Main outcome measures: Stockholder returns, operating performance of defendant companies, exports, market share of the original participants in the MSA, and advertising/promotion expenditures.
When was the Master Settlement Agreement reached?
Until recently, it was not possible to evaluate the effects of the settlements on company decision making because an insufficient number of years had elapsed since the MSA was reached in November 1998.
What is the advantage of a settlement?
Timeline is not the only advantage in a settlement. Settlement also means fewer costs for plaintiffs and defendants alike. Court costs can be incredible. Few involved in a lawsuit understand that litigation means the cost of medical records, expert witnesses, transcripts, court reporters, and more, which adds up over time. Many attorneys charge a much higher percentage of your judgement if you take the case to trial. Often it can be seven to ten percent more than it would be if the case is settled out of court, which may be a powerful motivator for some plaintiffs.
How does settlement help in a case?
Settlement, often achieved through mediation, can also help reduce the amount of stress involved. Going to trial means a number of hearings, as well as depositions on both sides, cross-examination from the other side while you’re in a trial, continual meetings with your attorney, and much more. That may affect your ability to work and create quite a bit of stress. Settlement, though, helps to avoid much of that time involved in the case.
Why settle out of court?
Many cases choose to settle out of court for different reasons. There are a number of benefits of settling out of court that serve as the driver for plaintiffs and defendants alike. One of the most important benefits for plaintiffs is that you receive compensation much faster than you’d expect to. Trials are a very slow process. Depending on the court involved, trials often don’t start for one to two years after the initial lawsuit is filed. Even if you do win once you go to trial, the defendant can appeal the verdict, which can put your compensation on hold until the appeal has worked its way through the court of appeals. Often the entire process can take three years or more, which can be a long time to wait if your bills from the lawsuit begin to pile out.
What does it mean to settle a case?
Settlement also means a level of predictability that a trial simply cannot. With a settlement, you know what the offer is before you go to trial. Should you go on to trial, almost anything can happen. A judge can decide to exclude important evidence, the jury may decide not to give you as much in damages, and witnesses may not appear or testify in a convincing manner. All of these things can lead to some uncertainty in your case that simply won’t happen if you decide to settle. What’s more, though, is that settlement guarantees you will collect the amount for which the defendant has settled. The settlement amount is part of the negotiated agreement, and that means that even if the defendant declares bankruptcy, he or she is still responsible for the settlement amount.
Is a settlement confidential?
Additionally, settlement provides a level of privacy that a trial simply doesn’t. Settlements can remain confidential at all times. In fact, many settlements must remain confidential according to the terms of the agreement. For both plaintiffs and defendants, that can be incredibly important because the details of medical records, personal relationships, and more never have to be entered into the record.
Overview
Summary of terms
The Original Participating Manufacturers (OPMs) agreed to several broad categories of conditions:
• to restrict their advertising, sponsorship, lobbying, and litigation activities, particularly as those activities were seen as targeting youth;
• to disband three specific "Tobacco-Related Organizations," and to restrict their creation and participation in trade associations;
History of adoption
In September 1950, an article was published in the British Medical Journal linking smoking to lung cancer and heart disease. In 1954 the British Doctors Study confirmed the suggestion, based on which the government issued advice that smoking and lung cancer rates were related. In 1964 the United States Surgeon General's Report on Smoking and Health likewise began suggesting the relatio…
Contraband statutes
By the middle of 2000, domestic NPMs and importers had begun to obtain greater market share. The NAAG noted that reductions in settlement payments which result from an overall reduction in cigarette consumption benefit the states because health care costs imposed by each cigarette exceed the settlement payments. On the other hand, when reductions in settlement payments occur because NPM sales displace PM sales, the states receive no benefits if the NPMs do not …
Criticism
Some anti-smoking advocates, such as William Godshall, have criticized the MSA as being too lenient on the major tobacco companies. In a speech at the National Tobacco Control Conference, Godshall stated that "[w]ith unprecedented future legal protection granted by the state A.G.s in exchange for money, it appears that the tobacco industry has emerged from the state lawsuits even more powerful".
Securitization
In the ten years following the settlement, many state and local governments have opted to sell so-called Tobacco Bonds. They are a form of securitization. In many cases the bonds permit state and local governments to transfer the risk of declines in future master settlement agreement payments to bondholders. In some cases, however, the bonds are backed by secondary pledges of state or local revenues, which creates what some see as a perverse incentive to support the to…
Individual state settlements
There is technically a distinct MSA signed separately with each state. While these MSAs are identical, the states have had to enact enabling legislation which differs from state to state. Furthermore, each state's court system is entitled to create its own jurisdictional interpretations of the MSA text. As a result, legal understanding of the MSA differ from state to state.
Documents relating to the initial lawsuits filed by each individual state are available at the UCSF
See also
• Operation Berkshire
• Project SCUM
• Tobacco Settlement Financing Corporation
• "Truth" ad campaign
General Information
- Who is qualified to receive an annual pro rata share of the tobacco settlement proceeds? Political subdivisions as defined in 25 Tex. Admin. Code § 102.1(b). These include “a hospital district, ano...
- How can I determine whether a given political subdivision qualifies for tobacco settlement proceeds under this definition? Consult Chapter 61 of the Texas Health and Safety Code pert…
- Who is qualified to receive an annual pro rata share of the tobacco settlement proceeds? Political subdivisions as defined in 25 Tex. Admin. Code § 102.1(b). These include “a hospital district, ano...
- How can I determine whether a given political subdivision qualifies for tobacco settlement proceeds under this definition? Consult Chapter 61 of the Texas Health and Safety Code pertaining to the C...
- How can I get a copy of the settlement agreement? A text copy of the settlement agreement is available online or may be requested via e-mail at [email protected] telephone at 512.776.2591.
- What was the total settlement amount, initially, for political subdivisions? The settlement agr…
Distribution Calculation
- Once the DSHS receives the expenditure statements, how will it apportion the available dollars among the political subdivisions? The DSHS combines eligible expenditures from all statements received...
Use of Tobacco Settlement Proceeds
- May a political subdivision spend the money it receives from the tobacco settlement for any purpose it chooses? Yes, the use of the money is unrestricted. The settlement agreement does not require...
- What are some of the ways in which political subdivisions intend to use the tobacco settlement proceeds? Use of funds varies widely, based on information received by the DSHS.
- May a political subdivision spend the money it receives from the tobacco settlement for any purpose it chooses? Yes, the use of the money is unrestricted. The settlement agreement does not require...
- What are some of the ways in which political subdivisions intend to use the tobacco settlement proceeds? Use of funds varies widely, based on information received by the DSHS.
- Is there any incentive for political subdivisions to spend their tobacco settlement proceeds on health care? Yes, because all pro rata shares, beginning in 2000, are based on unreimbursed health ca...
General Information Regarding Counties
- Should counties coordinate with cities to determine how best to maximize funds for reimbursement? Yes, counties should coordinate with cities to maximize all dollars being spent on health care in t...
- More specifically, for what kinds of services can a county expect to receive payment under the settlement agreement? These must be for services such as a hospital district may provide. T…
- Should counties coordinate with cities to determine how best to maximize funds for reimbursement? Yes, counties should coordinate with cities to maximize all dollars being spent on health care in t...
- More specifically, for what kinds of services can a county expect to receive payment under the settlement agreement? These must be for services such as a hospital district may provide. They will ty...
- May a county include expendable medical supplies such as bandages, medications, and syringes? Yes, medical supplies may be included, but administrative supplies, such as copy paper, can be counted...
- Are expenditures related to medical waste disposal, including the destruction of drugs and n…
County Jail, Sheriff, & Prisoner Information
- May a county include the salary and benefits of the nurse in a county jail? Yes, under 25 Tex. Admin. Code § 102.3(b)(1)(J), the county may include employee salary and benefits to the extent the em...
- If a county hires a private contractor to provide inmate medical care, would it be considered an eligible expenditure? Yes, the county can claim the contract amount.
- May a county include the salary and benefits of the nurse in a county jail? Yes, under 25 Tex. Admin. Code § 102.3(b)(1)(J), the county may include employee salary and benefits to the extent the em...
- If a county hires a private contractor to provide inmate medical care, would it be considered an eligible expenditure? Yes, the county can claim the contract amount.
- May a county include drug testing for the sheriff’s department personnel? No, the expense must be related to health care for the general public or the inmates of the county jail.
- Can the expense of mental competency hearings or mental health commitments in the court system be included as a possible expense? No, court costs and deputy sheriff’s time spent transporting a pris...
Hospital District & County Information
- If you have a hospital district that does not cover the entire county, is the hospital district responsible for claiming jail health care? No, the county will file its own report and will include i...
- If a county has a hospital district that covers the entire county, which entity will count the unreimbursed health care expenditures for inmates of the county jail – the county or the hos…
- If you have a hospital district that does not cover the entire county, is the hospital district responsible for claiming jail health care? No, the county will file its own report and will include i...
- If a county has a hospital district that covers the entire county, which entity will count the unreimbursed health care expenditures for inmates of the county jail – the county or the hospital dist...
- What expenditures may be claimed by a political subdivision that has sold its public hospital to a private company? Note the following provision in 25 Tex. Admin. Code § 102.3(e)for the distributio...
- Who submits an expenditure statement when a new hospital district comes into existence in …