Consumer News Release
For immediate release - Tuesday, April 19, 2005.
Contact Bob Brammer - 515-281-6699.
Tobacco Industry Pays $54 Million to Iowa Tobacco Settlement Authority
Iowa's share of payments since 1998 now totals over $358 million.
DES MOINES. The tobacco industry has paid another $54.8 million to the Iowa Tobacco Settlement Authority. Iowa's share of payments made since the tobacco settlement in November 1998 now totals more than $358 million, Attorney General Tom Miller said today.
Iowa's share of the annual April payment is $54,818,753.00, raising the state's total share of payments to $358,779,853.79 under the 1998 "Master Settlement Agreement." The payments to 52 states and territories, disbursed Friday and today, totaled about $6.3 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 was 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 this year's payment -- or over $12 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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