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WELCOME TO THE WEBINAR
12/6/2018 1
• Hello and thank you for joining today's webinar hosted by the Public Health Law Center. We will be getting started shortly.
• All attendees are muted. Questions will be held until the designated Q&A section at the end of the presentation but feel free to submit them at any time. To submit a question: click the black Q&A button in the bottom panel of the Zoom window.
• This webinar is being recorded. If you miss details or would like to share it, a link to both the slides and recording will be available at www.publichealthlawcenter.org/webinars/archivedusually within 24 hours.
http://www.publichealthlawcenter.org/webinars/archived
212/6/2018
WHERE WE STAND 20 YEARS AFTER THE MSA:LEGACY AND LOOSE ENDS
THE PUBLIC HEALTH LAW CENTER
12/6/2018 3
12/6/2018 4
AGENDA
12/6/2018 5
• Welcome and brief introductions• What is the MSA? • How the MSA relates to key developments in tobacco control • Moving forward • Q & A
WEBINAR SPONSORS
12/6/2018 6
SPEAKERS
12/6/2018 7
Michael Hering, NAAG Center for Tobacco and Public Health
Tamara Schlinger, NAAG Center for Tobacco and Public Health
Meg Riordan, Campaign for Tobacco Free Kids
Thomas Carr, American Lung Association
Cathy Callaway, American Cancer Society-Cancer Action Network
Joelle Lester, Public Health Law Center
TOBACCO MASTER SETTLEMENT AGREEMENT20TH ANNIVERSARY
Michael Hering Tamara Schlinger Director and Chief Counsel Counsel
National Association of Attorneys General Center for Tobacco and Public Health
Pre-MSA Marketing Methods
The tobacco industry made outlandish claims…
and denied the obvious…
920th Anniversary of the MSA Webinar - December 6, 2018
…and marketed to kids
1020th Anniversary of the MSA Webinar - December 6, 2018
20th Anniversary of the MSA Webinar - December 6, 2018
The Basics of the Agreement
Settling States Participating Manufacturers “PMs”
20th Anniversary of the MSA Webinar - December 6, 2018
Advertising Restrictions(“Public Health” provisions)
Settlement Payments
States to release claims against
companies
Truth Initiative
MSA Parties
20th Anniversary of the MSA Webinar - December 6, 2018
ß Participating [Tobacco Product] Manufacturers” or “PMs”)ß 2 “Original Participating
Manufacturers” or “OPMs;” Phillip Morris, RJR
ß About 50 smaller “Subsequent Participating Manufacturers” or “SPMs”
ß Also, “Non-Participating Manufacturers” or “NPMs”
52 of the 56 States and Territories signed the Tobacco Master Settlement Agreement
States that did not sign:
Mississippi, Florida,
Texas, Minnesota
20th Anniversary of the MSA Webinar - December 6, 2018
0
5
10
15
20
25
30
35
40
1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017
From 36.4% at 1997 peak to 8.8% in 2017. Current frequent use reduced
from 16.7% to 2.6% (Data from CDC Youth Risk Behavior Surveillance)
PERCENTAGE OF HIGH SCHOOL STUDENTS WHO CURRENTLY SMOKE
Chart1
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
2015
2017
Percentage of High Schoolers who Smoke
27.5
30.5
34.8
36.4
34.8
28.5
21.9
23
20
19.5
18.1
15.7
10.8
8.8
Sheet1
Percentage of High Schoolers who Smoke
199127.5
199330.5
199534.8
199736.4
199934.8
200128.5
200321.9
200523
200720
200919.5
201118.1
201315.7
201510.8
20178.8
20th Anniversary of the MSA Webinar - December 6, 2018
DECLINES IN U.S. CIGARETTE CONSUMPTION 1990-2017
Sources: 1993 -1996 US Department of Agriculture; 1997-2017 Alcohol & Tobacco Tax and Trade Bureau, Bureau of the Census
0
100
200
300
400
500
cig
aret
te c
ons
um
ptio
n (in
bill
ions
of c
igar
ette
s)
Cigarette consumption in U.S. declined by 45% between 1998 and 2017; per-capita consumption by
even more
Chart1
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Cigarette consumption in U.S. declined by 45% between 1998 and 2017; per-capita consumption by even more
North
cigarette consumption (in billions of cigarettes)
525
510
500
485
486
487
487
480.5
455.4
430.2
428.9
421.8
409.9
395.1
395.6
379
379.5
360.5
344.8
316.8
300.5
291.8
286.9
273
263
267
257
246
Sheet1
1990199119921993199419951996199719981999200020012002200320042005200620072008200920102011201220132014201520162017
North525510500485486487487481455430429422410395396379380361345317301292287273263267257246
20th Anniversary of the MSA Webinar - December 6, 2018
$4,000,000,000.00
$4,500,000,000.00
$5,000,000,000.00
$5,500,000,000.00
$6,000,000,000.00
$6,500,000,000.00
$7,000,000,000.00
$7,500,000,000.00
$8,000,000,000.00
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
MSA Payments Due v. Payments Received Sales Year 2003-2017
PaymentDue
AmountPaid
Chart1
Data
MSA Payments Due v. Payments Received 2003-2015
Sales Year2003200420052006200720082009201020112012201320142015
IX(c)(1) Payment DuePwC Notice241 Att. 2265 Att. 2294 Att. 2315 Att. 2337 Att. 2363 Att. 2398 Att. 2435 Att. 2472 Att. 2475 Att.2478 Att. 2488 Att. 2484 Att. 2
OPM$ 5,950,426,215.61$ 6,047,952,939.94$ 6,128,156,358.56$ 6,220,729,722.06$ 6,314,699,586.15$ 6,256,791,434.71$ 5,798,398,973.10$ 5,744,104,913.25$ 5,740,378,816.01$ 5,799,528,493.93$ 5,724,338,636.68$ 5,696,244,445.68$ 5,858,713,438.90
PwC Notice241 Att. 6265 Att. 6294 Att. 6315 Att. 6337 Att. 6363 Att. 6398 Att. 6435 Att. 6472 Att. 6441 Att.6478 Att.6488 Att.6484 Att. 2
SPM$ 484,528,492.07$ 433,711,105.18$ 441,533,140.68$ 519,196,810.65$ 430,674,672.79$ 515,198,144.87$ 516,804,514.34$ 468,108,952.63$ 441,891,298.46$ 432,988,995.14$ 374,756,860.41$393,282,243.50$ 402,122,294.61
TOTAL$ 6,434,954,707.68$ 6,481,664,045.12$ 6,569,689,499.24$ 6,739,926,532.71$ 6,745,374,258.94$ 6,771,989,579.58$ 6,315,203,487.44$ 6,212,213,865.88$ 6,182,270,114.47$ 6,232,517,489.07$ 6,099,095,497.09$ 6,089,526,689.18$ 6,260,835,733.51
IX(c)(2) Payment DuePwC Notice338 Att. 2364 Att. 2399 Att. 2436 Att. 2473 Att. 2476 Att.2479 Att.2452 Att.2485 Att. 6
OPM$ 761,158,664.94$ 754,178,555.98$ 698,925,033.73$ 692,380,558.64$ 691,931,423.86$ 699,061,183.44$ 689,997,979.31$ 686,611,573.26$ 706,195,194.03
PwC Notice338 Att. 6364 Att. 6399 Att. 6436 Att. 6473 Att. 6476 Att.6479 Att.6452 Att.6485 Att. 6
SPM$ 45,559,760.82$ 54,501,241.25$ 54,671,174.22$ 49,519,819.19$ 46,746,333.40$ 45,804,585.95$ 39,644,385.90$41,604,129.68$ 42,539,291.78
TOTAL$ 806,718,425.76$ 808,679,797.23$ 753,596,207.95$ 741,900,377.83$ 738,677,757.26$ 744,865,769.39$ 729,642,365.21$ 728,215,702.94$ 748,734,485.81
Total Payment DueOPM$ 5,950,426,215.61$ 6,047,952,939.94$ 6,128,156,358.56$ 6,220,729,722.06$ 7,075,858,251.09$ 7,010,969,990.69$ 6,497,324,006.83$ 6,436,485,471.89$ 6,432,310,239.87$ 6,498,589,677.37$ 6,414,336,615.99$ 6,382,856,018.94$ 6,564,908,632.93
SPM$ 484,528,492.07$ 433,711,105.18$ 441,533,140.68$ 519,196,810.65$ 476,234,433.61$ 569,699,386.12$ 571,475,688.56$ 517,628,771.82$ 488,637,631.86$ 478,793,581.09$ 414,401,246.31$ 434,886,373.18$ 444,661,586.39
TOTAL$ 6,434,954,707.68$ 6,481,664,045.12$ 6,569,689,499.24$ 6,739,926,532.71$ 7,552,092,684.70$ 7,580,669,376.81$ 7,068,799,695.39$ 6,954,114,243.71$ 6,920,947,871.73$ 6,977,383,258.46$ 6,828,737,862.30$ 6,817,742,392.12$ 7,009,570,219.32
Amount Paid$ 6,286,714,340.83$ 6,375,972,583.15$ 5,832,686,276.31$ 6,070,161,916.24$ 6,990,917,084.06$ 7,647,315,602.55$ 6,393,360,363.92$ 6,035,499,690.19$ 6,154,221,969.99$ 7,481,564,551.84$ 5,869,438,687.20$ 5,568,503,917.59$ 6,841,236,872.46
Note: This includes $540,647,702.60 released from DPA on 2/26/2009
California2003200420052006200720082009201020112012201320142015
IX(c)(1) Payment Due: CA Allocable Share 12.7639554%PwC Notice241 Att. 2265 Att. 2294 Att. 2315 Att. 2337 Att. 2363 Att. 2398 Att. 2435 Att. 2472 Att. 2475 Att.2478 Att. 2488 Att. 2484 Att. 2
OPM$ 759,509,748.27$ 771,958,015.87$ 782,195,144.45$ 794,011,167.28$ 806,005,438.82$ 798,614,068.20$ 740,105,058.84$ 733,174,989.26$ 732,699,391.87$ 740,249,230.38$ 730,652,030.53$ 727,066,100.52$ 747,803,570.36
PwC Notice241 Att. 6265 Att. 6294 Att. 6315 Att. 6337 Att. 6363 Att. 6398 Att. 6435 Att. 6472 Att. 6441 Att.6478 Att.6488 Att.6484 Att. 2
SPM$ 61,845,000.63$ 55,358,692.03$ 56,357,093.15$ 66,270,049.35$ 54,971,123.15$ 65,759,661.43$ 65,964,697.72$ 59,749,217.94$ 56,402,808.25$ 55,266,522.23$ 47,833,798.52$ 50,198,370.16$ 51,326,710.34
TOTAL$ 821,354,748.90$ 827,316,707.90$ 838,552,237.60$ 860,281,216.63$ 860,976,561.97$ 864,373,729.63$ 806,069,756.56$ 792,924,207.19$ 789,102,200.12$ 795,515,752.60$ 778,485,829.05$ 777,264,470.68$ 799,130,280.69
IX(c)(2) Payment Due: CA Allocable Share 5.1730408%PwC Notice338 Att. 2364 Att. 2399 Att. 2436 Att. 2473 Att. 2476 Att.2479 Att.2452 Att.2485 Att. 6
OPM$ 39,375,048.29$ 39,013,964.41$ 36,155,677.16$ 35,817,128.79$ 35,793,894.86$ 36,162,720.24$ 35,693,876.99$ 35,518,696.82$ 36,531,765.51
PwC Notice338 Att. 6364 Att. 6399 Att. 6436 Att. 6473 Att. 6476 Att.6479 Att.6452 Att.6485 Att. 6
SPM$ 2,356,825.02$ 2,819,371.45$ 2,828,162.15$ 2,561,680.45$ 2,418,206.90$ 2,369,489.92$ 2,050,820.26$ 2,152,198.60$ 2,200,574.92
TOTAL$ 41,731,873.31$ 41,833,335.85$ 38,983,839.30$ 38,378,809.24$ 38,212,101.76$ 38,532,210.16$ 37,744,697.25$ 37,670,895.43$ 38,732,340.43
Total Payment DueOPM$ 759,509,748.27$ 771,958,015.87$ 782,195,144.45$ 794,011,167.28$ 845,380,487.11$ 837,628,032.60$ 776,260,736.00$ 768,992,118.05$ 768,493,286.73$ 776,411,950.61$ 766,345,907.52$ 762,584,797.34$ 784,335,335.87
SPM$ 61,845,000.63$ 55,358,692.03$ 56,357,093.15$ 66,270,049.35$ 57,327,948.17$ 68,579,032.88$ 68,792,859.86$ 62,310,898.39$ 58,821,015.15$ 57,636,012.15$ 49,884,618.78$ 52,350,568.76$ 53,527,285.26
TOTAL$ 821,354,748.90$ 827,316,707.90$ 838,552,237.60$ 860,281,216.63$ 902,708,435.28$ 906,207,065.48$ 845,053,595.86$ 831,303,016.43$ 827,314,301.88$ 834,047,962.76$ 816,230,526.30$ 814,935,366.10$ 837,862,621.13
Amount Paid$ 802,380,615.28$ 813,704,038.79$ 744,481,474.95$ 774,792,759.73$ 832,082,527.19$ 914,379,413.49$ 762,460,887.50$ 721,534,131.93$ 735,787,248.90$ 1,111,243,297.52$ 726,682,162.91$ 721,703,487.76$ 713,588,532.35
ILLINOIS2003200420052006200720082009201020112012201320142015
IX(c)(1) Payment Due IL Allocable Share: 4.6542472%PwC Notice241 Att. 2265 Att. 2294 Att. 2315 Att. 2337 Att. 2363 Att. 2398 Att. 2435 Att. 2472 Att. 2475 Att.2478 Att. 2488 Att. 2484 Att. 2
OPM$ 276,947,545.53$ 281,486,680.36$ 285,219,545.73$ 289,528,138.91$ 293,901,728.68$ 291,206,540.16$ 269,871,821.85$ 267,344,842.09$ 267,171,420.31$ 269,924,392.54$ 266,424,870.72$ 265,117,297.62$ 272,679,006.19
PwC Notice241 Att. 6265 Att. 6294 Att. 6315 Att. 6337 Att. 6363 Att. 6398 Att. 6435 Att. 6472 Att. 6441 Att.6478 Att.6488 Att.6484 Att. 2
SPM$ 22,551,153.78$ 20,185,986.97$ 20,550,043.84$ 24,164,703.02$ 20,044,663.90$ 23,978,595.23$ 24,053,359.64$ 21,786,947.82$ 20,566,713.39$ 20,152,378.18$ 17,442,110.68$ 18,304,327.81$ 18,715,765.64
TOTAL$ 299,498,699.30$ 301,672,667.33$ 305,769,589.57$ 313,692,841.93$ 313,946,392.58$ 315,185,135.39$ 293,925,181.49$ 289,131,789.91$ 287,738,133.70$ 290,076,770.72$ 283,866,981.40$ 283,421,625.42$ 291,394,771.82
IX(c)(2) Payment Due IL Allocable Share: 2.7169243%PwC Notice338 Att. 2364 Att. 2399 Att. 2436 Att. 2473 Att. 2476 Att.2479 Att.2452 Att.2485 Att. 6
OPM$ 20,680,104.73$ 20,490,460.45$ 18,989,264.08$ 18,811,455.65$ 18,799,252.99$ 18,992,963.16$ 18,746,722.77$ 18,654,716.68$ 19,186,788.83
PwC Notice338 Att. 6364 Att. 6399 Att. 6436 Att. 6473 Att. 6476 Att.6479 Att.6452 Att.6485 Att. 6
SPM$ 64,033.15$ 76,600.19$ 76,839.02$ 69,598.92$ 65,700.85$ 64,377.25$ 55,719.23$ 58,473.61$ 59,787.95
TOTAL$ 20,744,137.88$ 20,567,060.64$ 19,066,103.10$ 18,881,054.56$ 18,864,953.85$ 19,057,340.41$ 18,802,442.00$ 18,713,190.29$ 19,246,576.79
Total Payment DueOPM$ 276,947,545.53$ 281,486,680.36$ 285,219,545.73$ 289,528,138.91$ 314,581,833.41$ 311,697,000.61$ 288,861,085.93$ 286,156,297.74$ 285,970,673.31$ 288,917,355.71$ 285,171,593.49$ 283,772,014.30$ 291,865,795.02
SPM$ 22,551,153.78$ 20,185,986.97$ 20,550,043.84$ 24,164,703.02$ 20,108,697.05$ 24,055,195.42$ 24,130,198.66$ 21,856,546.74$ 20,632,414.24$ 20,216,755.43$ 17,497,829.92$ 18,362,801.41$ 18,775,553.59
TOTAL$ 299,498,699.30$ 301,672,667.33$ 305,769,589.57$ 313,692,841.93$ 334,690,530.46$ 335,752,196.03$ 312,991,284.59$ 308,012,844.48$ 306,603,087.54$ 309,134,111.14$ 302,669,423.40$ 302,134,815.71$ 310,641,348.61
Amount Paid$ 292,565,960.91$ 296,708,945.24$ 271,467,637.70$ 282,520,341.03$ 310,001,623.65$ 340,172,902.87$ 283,887,102.82$ 268,443,765.94$ 273,739,561.58$ 273,596,370.16$ 306,880,465.89$ 265,106,130.55$ 278,191,269.03
NEW MEXICO2003200420052006200720082009201020112012201320142015
IX(c)(1) Payment Due NM Allocable Share: .5963897%PwC Notice241 Att. 2265 Att. 2294 Att. 2315 Att. 2337 Att. 2363 Att. 2398 Att. 2435 Att. 2472 Att. 2475 Att.2478 Att. 2488 Att. 2484 Att. 2
OPM$ 35,487,729.06$ 36,069,368.39$ 36,547,693.32$ 37,099,791.33$ 37,660,217.92$ 37,314,859.67$ 34,581,054.24$ 34,257,250.06$ 34,235,028.00$ 34,587,790.59$ 34,139,366.02$ 33,971,815.16$ 34,940,763.50
PwC Notice241 Att. 6265 Att. 6294 Att. 6315 Att. 6337 Att. 6363 Att. 6398 Att. 6435 Att. 6472 Att. 6441 Att.6478 Att.6488 Att.6484 Att. 2
SPM$ 2,889,678.02$ 2,586,608.36$ 2,633,258.17$ 3,096,436.30$ 2,568,499.39$ 3,072,588.67$ 3,082,168.89$ 2,791,753.58$ 2,635,394.19$ 2,582,301.77$ 2,235,011.32$ 2,345,494.79$ 2,398,215.95
TOTAL$ 38,377,407.08$ 38,655,976.75$ 39,180,951.50$ 40,196,227.63$ 40,228,717.31$ 40,387,448.34$ 37,663,223.13$ 37,049,003.64$ 36,870,422.19$ 37,170,092.36$ 36,374,377.34$ 36,317,309.95$ 37,338,979.45
IX(c)(2) Payment Due NM Allocable Share .9959277%PwC Notice338 Att. 2364 Att. 2399 Att. 2436 Att. 2473 Att. 2476 Att.2479 Att.2452 Att.2485 Att. 6
OPM$ 7,580,589.99$ 7,511,073.15$ 6,960,788.01$ 6,895,609.77$ 6,891,136.72$ 6,962,143.97$ 6,871,881.01$ 6,838,154.85$ 7,033,193.55
PwC Notice338 Att. 6364 Att. 6399 Att. 6436 Att. 6473 Att. 6476 Att.6479 Att.6452 Att.6485 Att. 6
SPM$ 453,742.28$ 542,792.96$ 544,485.37$ 493,181.60$ 465,559.68$ 456,180.56$ 394,829.42$ 414,347.05$ 423,660.59
TOTAL$ 8,034,332.26$ 8,053,866.10$ 7,505,273.38$ 7,388,791.37$ 7,356,696.40$ 7,418,324.53$ 7,266,710.43$ 7,252,501.90$ 7,456,854.14
Total Payment DueOPM$ 35,487,729.06$ 36,069,368.39$ 36,547,693.32$ 37,099,791.33$ 45,240,807.90$ 44,825,932.81$ 41,541,842.25$ 41,152,859.83$ 41,126,164.71$ 41,549,934.55$ 41,011,247.03$ 40,809,970.01$ 41,973,957.06
SPM$ 2,889,678.02$ 2,586,608.36$ 2,633,258.17$ 3,096,436.30$ 3,022,241.67$ 3,615,381.63$ 3,626,654.26$ 3,284,935.17$ 3,100,953.87$ 3,038,482.33$ 2,629,840.74$ 2,759,841.84$ 2,821,876.54
TOTAL$ 38,377,407.08$ 38,655,976.75$ 39,180,951.50$ 40,196,227.63$ 48,263,049.57$ 48,441,314.44$ 45,168,496.51$ 44,437,795.01$ 44,227,118.59$ 44,588,416.88$ 43,641,087.76$ 43,569,811.85$ 44,795,833.59
Amount Paid$ 37,488,987.17$ 38,019,931.31$ 34,785,540.19$ 36,201,820.45$ 44,863,501.60$ 48,856,383.63$ 40,949,708.41$ 38,565,431.91$ 39,320,878.23$ 39,303,326.52$ 14,711,671.10$ 35,035,795.57$ 39,551,978.02
NEBRASKA2003200420052006200720082009201020112012201320142015
IX(c)(1) Payment Due NM Allocable Share: .5949833%PwC Notice241 Att. 2265 Att. 2294 Att. 2315 Att. 2337 Att. 2363 Att. 2398 Att. 2435 Att. 2472 Att. 2475 Att.2478 Att. 2488 Att. 2484 Att. 2
OPM$ 35,404,042.26$ 35,984,309.98$ 36,461,506.93$ 37,012,302.98$ 37,571,407.98$ 37,226,864.15$ 34,499,505.56$ 34,176,464.97$ 34,154,295.31$ 34,506,226.02$ 34,058,858.92$ 33,891,703.18$ 34,858,366.56
PwC Notice241 Att. 6265 Att. 6294 Att. 6315 Att. 6337 Att. 6363 Att. 6398 Att. 6435 Att. 6472 Att. 6441 Att.6478 Att.6488 Att.6484 Att. 2
SPM$ 2,882,863.61$ 2,580,508.65$ 2,627,048.45$ 3,089,134.32$ 2,562,442.38$ 3,065,342.92$ 3,074,900.55$ 2,785,170.09$ 2,629,179.43$ 2,576,212.21$ 2,229,740.74$ 2,339,963.67$ 2,392,560.50
TOTAL$ 38,286,905.87$ 38,564,818.63$ 39,088,555.38$ 40,101,437.30$ 40,133,850.36$ 40,292,207.08$ 37,574,406.11$ 36,961,635.06$ 36,783,474.74$ 37,082,438.23$ 36,288,599.66$ 36,231,666.85$ 37,250,927.05
IX(c)(2) Payment Due NM Allocable Share .7549361%PwC Notice338 Att. 2364 Att. 2399 Att. 2436 Att. 2473 Att. 2476 Att.2479 Att.2452 Att.2485 Att. 6
OPM$ 5,746,261.54$ 5,693,566.18$ 5,276,437.39$ 5,227,030.79$ 5,223,640.11$ 5,277,465.23$ 5,209,043.84$ 5,183,478.63$ 5,331,322.46
PwC Notice338 Att. 6364 Att. 6399 Att. 6436 Att. 6473 Att. 6476 Att.6479 Att.6452 Att.6485 Att. 6
SPM$ 343,947.08$ 411,449.55$ 412,732.43$ 373,842.99$ 352,904.95$ 345,795.35$ 299,289.78$ 314,084.59$ 321,144.47
TOTAL$ 6,090,208.62$ 6,105,015.72$ 5,689,169.82$ 5,600,873.78$ 5,576,545.05$ 5,623,260.59$ 5,508,333.62$ 5,497,563.23$ 5,652,466.93
Total Payment DueOPM$ 35,404,042.26$ 35,984,309.98$ 36,461,506.93$ 37,012,302.98$ 43,317,669.52$ 42,920,430.33$ 39,775,942.95$ 39,403,495.75$ 39,377,935.42$ 39,783,691.25$ 39,267,902.76$ 39,075,181.81$ 40,189,689.01
SPM$ 2,882,863.61$ 2,580,508.65$ 2,627,048.45$ 3,089,134.32$ 2,906,389.46$ 3,476,792.47$ 3,487,632.98$ 3,159,013.09$ 2,982,084.38$ 2,922,007.57$ 2,529,030.52$ 2,654,048.26$ 2,713,704.97
TOTAL$ 38,286,905.87$ 38,564,818.63$ 39,088,555.38$ 40,101,437.30$ 46,224,058.98$ 46,397,222.80$ 43,263,575.93$ 42,562,508.84$ 42,360,019.79$ 42,705,698.82$ 41,796,933.27$ 41,729,230.08$ 42,903,393.98
Amount Paid$ 37,400,836.94$ 37,930,273.08$ 34,703,509.28$ 36,116,449.68$ 42,864,037.92$ 46,800,801.98$ 39,168,544.11$ 36,939,233.81$ 37,664,587.43$ 56,205,296.51$ 37,337,763.21$ 37,119,646.57$ 36,737,857.33
Hawaii2003200420052006200720082009201020112012201320142015
IX(c)(1) Payment Due NM Allocable Share: .6018650%PwC Notice241 Att. 2265 Att. 2294 Att. 2315 Att. 2337 Att. 2363 Att. 2398 Att. 2435 Att. 2472 Att. 2475 Att.2478 Att. 2488 Att. 2484 Att. 2
OPM$ 35,813,532.74$ 36,400,511.96$ 36,883,228.27$ 37,440,394.94$ 38,005,966.66$ 37,657,437.77$ 34,898,533.98$ 34,571,757.04$ 34,549,330.96$ 34,905,332.17$ 34,452,790.74$ 34,283,701.63$ 35,261,545.64
PwC Notice241 Att. 6265 Att. 6294 Att. 6315 Att. 6337 Att. 6363 Att. 6398 Att. 6435 Att. 6472 Att. 6441 Att.6478 Att.6488 Att.6484 Att. 2
SPM$ 2,916,207.41$ 2,610,355.34$ 2,657,433.44$ 3,124,863.88$ 2,592,080.12$ 3,100,797.31$ 3,110,465.49$ 2,817,383.95$ 2,659,589.06$ 2,606,009.22$ 2,255,530.38$ 2,367,028.17$ 2,420,233.35
TOTAL$ 38,729,740.15$ 39,010,867.31$ 39,540,661.70$ 40,565,258.83$ 40,598,046.78$ 40,758,235.08$ 38,008,999.47$ 37,389,140.98$ 37,208,920.02$ 37,511,341.39$ 36,708,321.11$ 36,650,729.81$ 37,681,778.99
IX(c)(2) Payment Due NM Allocable Share 2.3645190%PwC Notice338 Att. 2364 Att. 2399 Att. 2436 Att. 2473 Att. 2476 Att.2479 Att.2452 Att.2485 Att. 6
OPM$ 17,997,741.25$ 17,832,695.25$ 16,526,215.22$ 16,371,469.86$ 16,360,849.98$ 16,529,434.50$ 16,315,133.32$ 16,235,061.11$ 16,698,119.54
PwC Notice338 Att. 6364 Att. 6399 Att. 6436 Att. 6473 Att. 6476 Att.6479 Att.6452 Att.6485 Att. 6
SPM$ 1,077,269.20$ 1,288,692.20$ 1,292,710.30$ 1,170,905.53$ 1,105,325.94$ 1,083,058.14$ 937,399.04$ 983,737.55$ 1,005,849.64
TOTAL$ 19,075,010.45$ 19,121,387.45$ 17,818,925.52$ 17,542,375.39$ 17,466,175.92$ 17,612,492.64$ 17,252,532.36$ 17,218,798.66$ 17,703,969.18
Total Payment DueOPM$ 35,813,532.74$ 36,400,511.96$ 36,883,228.27$ 37,440,394.94$ 56,003,707.92$ 55,490,133.02$ 51,424,749.20$ 50,943,226.90$ 50,910,180.95$ 51,434,766.67$ 50,767,924.06$ 50,518,762.74$ 51,959,665.18
SPM$ 2,916,207.41$ 2,610,355.34$ 2,657,433.44$ 3,124,863.88$ 3,669,349.32$ 4,389,489.52$ 4,403,175.79$ 3,988,289.48$ 3,764,915.00$ 3,689,067.35$ 3,192,929.41$ 3,350,765.73$ 3,426,082.99
TOTAL$ 38,729,740.15$ 39,010,867.31$ 39,540,661.70$ 40,565,258.83$ 59,673,057.24$ 59,879,622.54$ 55,827,924.99$ 54,931,516.38$ 54,675,095.94$ 55,123,834.03$ 53,960,853.47$ 53,869,528.46$ 55,385,748.16
Amount Paid$ 37,835,201.00$ 38,368,982.49$ 35,104,897.25$ 36,534,180.01$ 56,062,799.06$ 60,358,380.09$ 50,922,091.79$ 47,665,178.58$ 48,588,837.44$ 48,579,011.95$ 52,658,365.24$ 47,229,074.73$ 49,266,822.47
Chart
2003200420052006200720082009201020112012201320142015
Payment Due$ 6,434,954,707.68$ 6,481,664,045.12$ 6,569,689,499.24$ 6,739,926,532.71$ 7,552,092,684.70$ 7,580,669,376.81$ 7,068,799,695.39$ 6,954,114,243.71$ 6,920,947,871.73$ 6,977,383,258.46$ 6,831,508,192.19$ 6,817,742,392.12$ 7,009,570,219.32
Amount Paid$ 6,286,714,340.83$ 6,375,972,583.15$ 5,832,686,276.31$ 6,070,161,916.24$ 6,990,917,084.06$ 7,647,315,602.55$ 6,393,360,363.92$ 6,035,499,690.19$ 6,154,221,969.99$ 7,481,564,551.84$ 5,869,438,687.20$ 5,568,503,917.59$ 6,841,236,872.46
Chart
Payment Due
Amount Paid
MSA Payments Due v. Payments Received Sales Year 2003-2015
MSA Advertising and Marketing Restrictions¸ Prohibition on Targeting Youth
¸ Limitations on Tobacco Brand Name Sponsorships
¸ Elimination of Outdoor and Transit Advertising
¸ Prohibits Use of Cartoons
¸ Limitation on Third-Party Use of Brand Names
20th Anniversary of the MSA Webinar - December 6, 2018
¸ Prohibition on Payments Related to Tobacco Products and Media
¸ Ban on Tobacco Brand Name Merchandise
¸ Ban on Youth Access to Free Samples
¸ Prohibition on Material Misrepresentations of Fact
20th Anniversary of the MSA Webinar - December 6, 2018
MSA Advertising and Marketing Restrictions
Emerging Issues
¸ Evolving Marketing Methods
¸ Evolving Products
20th Anniversary of the MSA Webinar - December 6, 2018
FDA Regulation
2020th Anniversary of the MSA Webinar - December 6, 2018
MASTER SETTLEMENT AGREEMENTHISTORIC IMPORTANCE
12/6/2018 21
HISTORICAL CONTEXTEVOLUTION OF THE LAW
12/6/2018 22
HISTORICAL CONTEXTFIRST WAVE OF LITIGATION
12/6/2018 23
HISTORICAL CONTEXTSECOND WAVE OF LITIGATION
12/6/2018 24
HISTORICAL CONTEXTSCORCHED EARTH STRATEGY
12/6/2018 25
“The aggressive posture we have taken … continues to make these cases extremely burdensome and expensive for plaintiffs’ lawyers . . .. To paraphrase General Patton, the way we won these cases was not by spending all of [the tobacco companies’] money, but by making that other son of a bitch spend all of his.”
Tobacco Industry Attorney, 1988
HISTORICAL CONTEXTTHIRD WAVE OF LITIGATION
12/6/2018 26
HISTORICAL CONTEXTSTATE SETTLEMENTS
12/6/2018 27
HISTORICAL CONTEXTU.S. V. PHILIP MORRIS
12/6/2018 28
TOBACCO INDUSTRY TESTIMONY
12/6/2018 29
HISTORICAL CONTEXTFEDERAL REGULATION
12/6/2018 30
1994 Congressional
Hearings
1996 FDA Rulemaking
2009 Tobacco Control Act
STRENGTHS AND LIMITATIONS
12/6/2018 31
What the Master Settlement Agreement
does that U.S. v. Philip Morris and the
Tobacco Control Act cannot or did not do.
TobaccoFreeKids.org >
The State Tobacco Settlement Presented an Historic Opportunity to:
• Save Lives
•Protect Children
•Reduce HealthCare Costs
20Th Anniversary of State Tobacco Settlement (MSA): Opportunity to review progress and identify remaining challenges
TobaccoFreeKids.org >
The Problem: US Adult Smoking Disparities, 2017
Source: National Health Interview Survey, 2017
Chart1
Midwest
< High School Education
GED
American Indian/Alaska Native
Household Income
Total Annual State Tobacco Prevention SpendingFY1999 - FY2019
Only 3 states – AZ, CA and MA - spent any money on tobacco prevention prior to 1999. Settlement payments to states began in 1999. All states were receiving payments by 2001. Funding amounts only include state funds.
* State spending for FY16 includes $13.7 million for Pennsylvania that was not available for the 2015 Broken Promises Report.
??
Chart1
FY99
FY00
FY01
FY02
FY03
FY04
FY05
FY06
FY07
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16*
FY17
FY18
FY19
Tobacco Prevention Spending*
Millions
$517.9
300.1
680.3000002328
737.5
749.7
674.4
542.8
538.2
551
597.5
717.2
670.9
569.3
517.2
456.7
459.5
481.2
490.4
481.7
491.6
721.6
Sheet1
FY99FY00FY01FY02FY03FY04FY05FY06FY07FY08FY09FY10FY11FY12FY13FY14FY15FY16*FY17FY18FY19
Tobacco Prevention Spending*$300.1$680.3$737.5$749.7$674.4$542.8$538.2$551.0$597.5$717.2$670.9$569.3$517.2$456.7$459.5$481.2$490.4$481.7$491.6$721.6
Total State Tobacco Revenue vs. Total State Spending on Tobacco Prevention
FY2000 - FY2019
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
Total State Tobacco Revenues Total State Tobacco PreventionSpending
Bill
ions
$453.4 Billion
$296.7 Billion Estimated Tobacco
Tax Revenues
$156.7 BillionEstimated Tobacco
Settlement Revenues
$11.8 Billion
xi
Over past 20 years, just 2.6% of Total Tobacco
Revenue has been spent on tobacco prevention
programs
FY2018 State Tobacco Prevention Spending Vs. State Tobacco Revenue vs. CDC
Recommendations
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
Total State TobaccoRevenues
CDC RecommendedAnnual Investment
Actual State TobaccoPrevention Spending
$3.3 Billion$721.6 Million
$27.4 Billion $8.1 Billion Estimated Tobacco
Settlement Revenues
$19.3 BillionEstimated Tobacco
Tax Revenues
TobaccoFreeKids.org >
State Tobacco Control Spending Report, FY19 spending
39
Release Date: Friday, December 14th
National and State-Specific press Releases
State spending infographic
Radio and TV interviews on December 14th
TobaccoFreeKids.org >
State Spending Infographics
40
TobaccoFreeKids.org >
Projecting the Impact of Funding Increases and Cuts
41
TobaccoFreeKids.org >
Projecting the Impact of Smoking Declines
42
TobaccoFreeKids.org >
Key Message Points
43
TobaccoFreeKids.org >
Questions?
Meg Riordan Campaign for Tobacco-Free Kids [email protected]
Visit Our Website @ www.tobaccofreekids.org
mailto:[email protected]://www.tobaccofreekids.org/
4545
• Tobacco companies can’t use cartoon characters in marketing• Annual tobacco settlement payments do not have an end date• Number of state tobacco control programs still rely on MSA payments for
funding• Lock up funding by ballot measure/constitutional amendment if possible• Securitization of MSA payments is bad, eliminates source of funding for
tobacco control programs• 20th anniversary golden opportunity to remind state officials about
promises made at the time of the MSA
Key Points About MSA from Advocacy Perspective
4646
• Lung Association State of Tobacco Control reporto Release date January 30, 2019
• In the context of tobacco control program funding campaigns in 2019• State-specific MSA-related anniversaries
o For example when MSA implementing legislation was passed• To highlight ongoing questionable/improper uses of MSA funds• If securitization of MSA payments is ending in your state
Additional Opportunities to Highlight MSA 20th Anniversary
TALES FROM THE FIELD
12/6/2018 47
CONTACT US
12/6/2018 48
651.290.7506
www.publichealthlawcenter.org
@phealthlawctr
facebook.com/publichealthlawcenter
mailto:[email protected]://www.publichealthlawcenter.org/http://www.twitter.com/phealthlawctrhttp://www.facebook.com/publichealthlawcenter
Welcome to the webinarSlide Number 2The Public health law centerSlide Number 4agendaWebinar sponsors�speakersTobacco Master Settlement Agreement�20th AnniversaryPre-MSA Marketing MethodsSlide Number 10Slide Number 11The Basics of the Agreement�MSA PartiesSlide Number 14����MSA Advertising and Marketing RestrictionsMSA Advertising and Marketing RestrictionsEmerging IssuesFDA RegulationMaster settlement agreement�historic importanceHistorical context�evolution of the lawHistorical context�first wave of litigationHistorical context�second wave of litigationHistorical context�scorched earth strategyHistorical context�third wave of litigationHistorical context�state settlementsHistorical context�U.S. v. Philip MorrisTobacco industry testimonyHistorical context�federal regulationStrengths and limitations�The State Tobacco Settlement Presented an Historic Opportunity to:Slide Number 33The Problem: �US Adult Smoking Disparities, 2017Slide Number 35Total Annual State Tobacco Prevention Spending�FY1999 - FY2019Total State Tobacco Revenue vs. �Total State Spending on Tobacco Prevention �FY2000 - FY2019FY2018 State Tobacco Prevention Spending Vs. State Tobacco Revenue vs. CDC RecommendationsState Tobacco Control Spending Report, FY19 spendingState Spending InfographicsProjecting the Impact of Funding Increases and CutsProjecting the Impact of Smoking DeclinesKey Message PointsQuestions?Slide Number 45Slide Number 46Tales from the field�CONTACT US