Millions In Tobacco Settlement Money Received

(WTVQ-TV, LLC)
(WTVQ-TV, LLC)
Set Text Size SmallSet Text Size MediumSet Text Size LargeSet Text Size X-Large
Share
Updated: 4/19/2012 4:42 pm
The state attorney general's office says Kentucky received its annual payment of more than $101.7 million in tobacco settlement money this week.

Under the Master Settlement Agreement, the tobacco companies agreed to make annual payments in perpetuity to the settling states, to fund a national foundation dedicated to significantly reducing the use of tobacco products by youth and to abide by certain restrictions on promotional and lobbying activity. Kentucky’s share of the settlement is approximately $3.45 billion over the first 25 years. Payments are determined according to a formula that is calculated, in part, by the number of cigarettes sold by companies that have agreed to join the settlement. This year’s payment totals $101.7 million.

The total received by Kentucky since the initial MSA payment in 1999 is $1.4 billion for “Phase I.” An additional $600 million was received by Kentucky tobacco growers under “Phase II,” the Tobacco Growers Trust Agreement, which was created as a result of an MSA provision to address affected tobacco-growing communities in 14 states.

Most of the MSA payment was to be paid by the three largest cigarette manufacturers - Philip Morris USA, RJ Reynolds, and Lorillard. Philip Morris USA, RJ Reynolds and Lorillard put into a disputed payment account more than $750 million based upon their claim to reduced payments under a provision in the MSA called the Non-Participating Manufacturer (NPM) Adjustment. The Office of Attorney General is currently participating in an ongoing proceeding to obtain Kentucky’s full share of the disputed payment amounts going back several years.




Share
1 Comment(s)
Comments: Show | Hide

Here are the most recent story comments.View All

Weeble - 4/19/2012 5:05 PM
0 Votes
Sure give it to the states... Wheres the compensation for all of the PEOPLE that have been hurt by these companies? Just another way to pay off legislators imo.
Most Popular
UK Criticized For Not Notifying High School Students Of Controversial Guest Speaker
Teachers, students and parents from duPont Manual High School said they were outraged that the University of Kentucky didn't tell them that the guest speaker at their awards ceremony was a controversial write-in U.S. Senate candidate with an anti-Semitic platform. Video Video
iPhone Campers Evacuated, Mall Searched For Reported Armed Suspect
Lexington Police made campers for the newest iPhone leave their spots in line outside Fayette Mall Thursday night after reports of a man with a gun in the area. Video Video
School bookkeeper charged with embezzling funds
A former bookkeeper at Saint Gabriel the Archangel Church and School in Louisville has been charged with embezzling $83,191 in funds from the parish by means of wire fraud.
Louisville woman loses state fair blue ribbon
The Louisville woman whose prize-winning recipe for buttermilk pie featured a store-bought crust has lost her blue ribbon.
Former Kentucky Republican Leader Dies
Former Kentucky gubernatorial press secretary and congressional aide Larry Van Hoose has died in Florida. He was 76.
Inergize Digital This site is hosted and managed by Inergize Digital.
   

WTVQ.com supports children's privacy rights. All persons under the age of 13 MUST have parental permission to use this website and direct parental supervision is strongly recommended.