AG Griffin announces $47 million in tobacco settlement funds

Arkansas Attorney General Tim Griffin announced Friday (April 25) that the state has received $47 million in annual proceeds in tobacco settlement funds.

The state of Arkansas received $47,044,772.69 in annual proceeds from the 1998 Master Settlement Agreement. In total, Arkansas has received more than $1.4 billion in tobacco settlement funds.

The 1998 Master Settlement Agreement (MSA) was a historic agreement between 46 states, the District of Columbia, five U.S. territories, and the four largest cigarette manufacturers in the United States.

It settled lawsuits related to the costs of smoking-related illnesses and imposed restrictions on tobacco advertising and marketing, particularly those targeting youth. The MSA required tobacco companies to make annual payments to states for an indefinite number of years.

“The annual disbursement of settlement funds, which is received by the State Treasurer’s office, supports key programs in Arkansas that improve health outcomes. With this year’s disbursement, Arkansas has now received a total of more than $1.4 billion. My office enforces the MSA and various tobacco statutes enacted pursuant to the MSA,” said Griffin.

In 2000, Arkansas voters created the Tobacco Settlement Proceeds Act, which governs how the MSA funds are used.

Tobacco settlement moneys are received by the State Treasurer’s office and are used to fund numerous health-related programs in Arkansas, including the Arkansas Biosciences Institute, an agricultural and medical research consortium; the Medicaid Expansion Program, which provides Medicaid coverage for underserved populations; the Tobacco 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.

In addition to enforcing the terms of the MSA, Arkansas law also requires the Office of Attorney General to operate a certification process for tobacco manufacturers and to litigatie if violations of the tobacco statutes occur.