Welcome to the Department of Justice, Iowa Attorney General Tom Miller

For immediate release - Monday, December 31, 2001. Contact Bob Brammer - 515-281-6699.

Tobacco Industry Paying $16.9 Million to Iowa Tobacco Settlement Authority

DES MOINES. Attorney General Tom Miller said the tobacco industry is paying $16.9 million today to the Iowa Tobacco Settlement Authority under terms of the settlement of lawsuits filed by Miller and other states. Iowa's share of payments made under the settlement over the last couple years now exceeds $140 million.

Miller said $3.7 million of today's total, 22 per cent, is going 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 health needs of Iowa children, adults and families.

"Money from the settlement helps us make a healthier Iowa," Miller said, "including helping us reduce the terrible toll of tobacco-related disease and death."

The remainder will be used principally to pay bondholders who recently bought bonds worth over $644 million based on the stream of payments the tobacco industry is required to pay to Iowa in perpetuity. Bondholders are paid from a 78% portion of the industry payments under the "tobacco securitization" arrangement. The industry makes payments at the end of each year and in April.

"This is our first payment since the securitization was accomplished this fall," Miller said.

The tobacco industry is making payments nationwide today. Iowa's share is $16,905,713.54

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