This fact sheet answers several frequently asked questions about the largest civil dispute resolution in U.S. history, the Manufactured Tobacco Processing Agreement (MSA). In November 1998, the Attorneys General of the other 46 states, as well as the District of Columbia, Puerto Rico and the Virgin Islands, concluded the Master Settlement Agreement with the four largest cigarette manufacturers in the United States. (Florida, Minnesota, Texas and Mississippi had already entered into individual agreements with the tobacco industry.) The four manufacturers – Philip Morris USA, R. J. Reynolds Tobacco Company, Brown – Williamson Tobacco Corp. and Lorillard Tobacco Company – are designated in the MSA as the original participating manufacturers (OPMs). This sub-chapter expires on September 30, 2001 if the bonds (other than the residual bond) are not sold and issued. In the case of such a process, all of the company`s assets are allocated to the district. In the largest civil dispute settlement in U.S. history, states and territories have won a victory that has led tobacco companies to pay billions of dollars a year to states and territories. The money was used to compensate for taxpayers` money spent on tobacco diseases and loss to the local economy. The agreement also called for the creation of an independent organization for the prevention of youth smoking and included ways to create this organization, now a truth initiative.
As an incentive to join the transaction agreement, the agreement provides that when an MPS has entered into the transaction contract within ninety days of the date of execution of the transaction contract, that PMS is exempt from annual payment to the implementing states, unless the PMS increases its market share in the domestic cigarette market beyond its 1998 market share or beyond 125% of the market share of the 1997 MPS. If, in any given year, the market share of exempt MPS increases beyond these relevant historical limits, the MSA requires the exempt MPS to make annual payments to settlement states, similar to those of OPMs, but only on the basis of PMS sales, which represent the increase in the market share of the exempt MPS.  Programs like this one are a vital artery for smokers trying to quit, workers who try to protect themselves from the damage of second-hand smoke and prevent children from starting to smoke one day; However, states do not always use WMA funds for these efforts. Indeed, as we have already pointed out, although we receive huge sums of money annually from tobacco dwellings and we collect billions more in tobacco taxes; Over the past two decades, states have, on the whole, failed to fund tobacco reduction and cessation programs at the level necessary to reduce smoking rates. While at the time of the MSA, many states have implemented tobacco control programs – very few states have funded them at Centers for Disease Control and Prevention (CDC) levels unscrewed over the past 20 years. And only one state funded these programs at the levels recommended by the CDC in fiscal 2018, according to the Lung Association`s annual report „State of Tobacco Control.“ In fiscal 2018, states received $27.5 billion in tobacco count payments and taxes. But they will spend less than 3 per cent — $721.6 million — on programs to prevent children from smoking and help smokers quit. „a) In general, the District of Columbia Fund is a trust fund: the Tobacco Settlement Trust Fund (`Fund`) and credited, regardless of the year`s requirement, of all revenues due to the District and the District on tobacco dispute resolution revenues), with the exception of the $16.05 million that is recognized as general revenues from the fund and is already included in the fund`s core budget. GJ 2000. , with the exception of the $16.05 million allocated first to the reserve to replace the appropriations that will be released from the reserve for the Fund in accordance with Title XX of this Act.