For immediate release - Friday, April 16, 2004.
Contact Bob Brammer - 515-281-6699.
Tobacco Industry Pays $52 Million
to Iowa Tobacco Settlement Authority
Iowa's share of payments since 1998 now totals over $300 million.
DES MOINES. The tobacco industry paid another $52 million to the Iowa Tobacco Settlement Authority yesterday.
Iowa's share of payments made since the tobacco settlement in November 1998 totals more than $303 million, Attorney
General Tom Miller said today.
Iowa's share received yesterday was $52,035,336.59, raising the state's total share of payments to $303,967,837.91 under
the 1998 "Master Settlement Agreement." The total payment yesterday to 52 states and territories was about $6 billion.
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 markets and sells tobacco products, in particular with an eye toward reducing youth
use of tobacco.
Iowa's share of payments 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., Lorillard Tobacco Co., and subsequent participating tobacco manufacturers. The industry
makes settlement payments each year on April 15.
Miller said 22% of Monday's total -- about $11.4 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 November 2001.
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