DES MOINES — Tobacco companies involved in the landmark 1998 settlement transferred about $53.2 million to the state treasury for this year’s payment.
Over the past 24 years, Iowa has received $1.41 billion in payments under the settlement. The state will continue to receive annual Master Settlement Agreement payments in perpetuity, based on the number of cigarettes sold in the United States. The MSA is the largest colony in United States history.
“Nearly a quarter century after the Master Settlement Agreement was reached, it remains one of the most important settlements for consumers in Iowa and the country. It is our duty year after year to ensure that the terms of the agreement are met and that Iowa receives its fair share,” Attorney General Tom Miller said.
About $11.7 million of this year’s payout, or 22%, will go to the state.
The remaining 78% will primarily be used to pay bondholders who purchased bonds issued by the Tobacco Settlement Authority. a
In 1998, Miller and attorneys general from 45 states signed the MSA with the nation’s four largest tobacco companies to settle lawsuits to recover billions of dollars in health care costs associated with treating tobacco-related illnesses. smoking.
Since then, several other tobacco companies have signed the agreement. The 2022 payment came from 20 companies, including Philip Morris USA, RJ Reynolds, Santa Fe Natural Tobacco, Vector and Commonwealth Brands.
The regulations created restrictions on the advertising, marketing and promotion of cigarettes, including a ban on advertising targeting children. It also includes bans on outdoor cigarette advertising and the advertising of cigarettes on public transit facilities, as well as the use of cigarette brand names on merchandise, and a host of other restrictions.
The central goal of the MSA was to reduce smoking, especially among young people. Since its announcement, cigarette sales in the United States have dropped significantly. Adult smoking rates have fallen from 24% of the US population in 1999 to 12.5% in 2020, according to the US Centers on Disease Control and Prevention. Only 13.4% of high school students reported having smoked a cigarette in the past 30 days in 2020, according to the National Youth Smoking Survey.