Arkansas receives $57 million in tobacco settlement money

Arkansas has received $57 million in 2018 for its share of the tobacco settlement funds from the 1998 Master Settlement Agreement (MSA) with tobacco companies, according to the office of Arkansas Attorney General Leslie Rutledge.

In the 1998 settlement, 46 states and numerous other jurisdictions entered into a multibillion dollar agreement to settle consumer-protection lawsuits for the costs that they had incurred for treating the negative health effects of smoking. 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.

This year’s disbursement of $57,047,679.82 brings the total amount received since 2001 to fund various public health programs in Arkansas to $1,004,303,330.82.

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.