The settlement resulted from lawsuits filed by Miller and other states against the tobacco industry. The industry also had to
make dramatic changes in the ways it marketed and sold tobacco products, in particular with an eye toward reducing youth
use of tobacco.
Yesterday's payment to the Iowa Tobacco Settlement Authority was $42,891,021.71*
[See footnote below.] That brings Iowa's share of total payments to
$250,343,918.73 in the last few years. Iowa's share is estimated at about
$2 billion over the first 25 years of the settlement, with payments continuing
after that as well. Tobacco companies making the payments include Philip
Morris Inc., R.J. Reynolds Tobacco Co., Brown & Williamson Tobacco
Corp., and Lorillard Tobacco Co.
Miller said 22% of Monday's total -- about $9.4 million -- will go directly to the "Endowment for Iowa's Health Account,"
which is dedicated to purposes related to preventing and controlling tobacco use, substance abuse treatment and
enforcement, health care, and other needs of Iowa children, adults and families.
The 78% remainder will be used principally to pay bondholders who bought bonds issued by the Tobacco Settlement
Authority in the aggregate principal amount of $644,245,000 in Nov. 2001. The industry makes settlement payments each
year on April 15 and at the end of the year.
"Money from the settlement helps us make a healthier Iowa," Miller said, "including funding our state program to cut youth
smoking. Tobacco use by Iowa high school kids dropped 13%, and 31% for middle school kids, according to the JEL
program of the Dept. of Public Health. We are making progress in reducing youth smoking and addiction in Iowa, but we
need adequate funding for these efforts. We still have a long way to go to cut the death toll of tobacco."
* Footnote – Update as of April 17, 2003.
On April 17, an additional nationwide payment was received from other tobacco companies
now participating in the tobacco settlement. The national payment was $182.7 million.
The additional payment to the Iowa Tobacco Settlement Authority was $1,588,582.59.
Thus, the total April 2003 payment to the I.T.S.A. was $44,479,604.30.
Thus, Iowa's share of total payments in the last few years is $251,932,501.32.