Welcome to the webinar - Public Health Law · 2018-12-06 · WELCOME TO THE WEBINAR. 12/6/2018 1...

WELCOME TO THE WEBINAR

12/6/2018 1

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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


The Basics of the Agreement

Settling States Participating Manufacturers “PMs”


Advertising Restrictions(“Public Health” provisions)

Settlement Payments

States to release claims against

companies

Truth Initiative

MSA Parties


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


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


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


$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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


¸ 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


MSA Advertising and Marketing Restrictions

Emerging Issues

¸ Evolving Marketing Methods

¸ Evolving Products


FDA Regulation


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


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


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


State Spending Infographics

40


Projecting the Impact of Funding Increases and Cuts

41


Projecting the Impact of Smoking Declines

42


Key Message Points

43


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

[email protected]

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

Welcome to the webinar - Public Health Law · 2018-12-06 · WELCOME TO THE WEBINAR. 12/6/2018 1...

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