State Receives $55 Million in Tobacco Settlement Funds

Bringing more than $1 billion total for public health programs

LITTLE ROCK – Arkansas Attorney General Leslie Rutledge has secured the 2019 share of proceeds from the 1998 Master Settlement Agreement (MSA) with tobacco companies. More than 20 years ago, 46 states and numerous other jurisdictions entered into a historic, multibillion dollar agreement to settle consumer-protection lawsuits for the costs that they had incurred for treating the negative health effects of smoking.

“The funds from the Master Settlement Agreement are important to the overall health and welfare of Arkansans,” said Attorney General Rutledge. “I am proud to continue to enforce the tobacco statutes and secure the State’s disbursement from the agreement. This money funds smoking cessation programs, health care research and the Arkansas Medicaid program, which are all vital resources for a number of Arkansas families and children.”

This year’s disbursement of $ 55,375,060.96 brings the total amount received since 2001 to fund various public health programs in Arkansas to $1,059,678,391.78.

The MSA imposed health-related and advertising restrictions on tobacco companies. Additionally, the agreement requires the settling manufacturers to make annual payments to the settling states.

 The Attorney General is tasked with enforcing the tobacco statutes that were enacted pursuant to the MSA. This enforcement includes operation of a certification process for tobacco manufacturers, ongoing quarterly and annual reporting, maintaining an Approved-For-Sale Directory, conducting audits, collection of escrow amounts and investigation or even litigation should violations of the tobacco statutes occur.

 In 2000, Arkansas voters created the Tobacco Settlement Act, which governs how the funds received under the settlement are used. Payments are placed into the Tobacco Settlement Program Fund for later distribution to the programs supported by the settlement payments, including the Arkansas Biosciences Institute, an agricultural and medical research consortium; the Medicaid Expansion Program, which provides Medicaid coverage for pregnant women and increases hospital benefits for Medicaid beneficiaries; the Prevention and Cessation Program, which aims to reduce tobacco use; and the Targeted State Needs Program, which includes support for public health programs for minorities, older Arkansans and residents of rural areas and the Delta.