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Tobacco Settlement Information

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In November 1998, the four largest cigarette manufacturers reached an agreement with 46 states to settle state suits to recover costs associated with treating smoking-related illnesses. According to the Master Settlement Agreement (MSA), the cigarette industry is projected to pay the settling states in excess of $200 billion over the next 25 years, in addition to paying $46 billion to the four states that previously settled their suits.

The Master Settlement Agreement called for participating manufacturers to address the negative impact that the MSA would have on tobacco growers and quota holders. This resulted in Phase II of the settlement, which is a $5.15 billion fund to be divided among the states that produce cigarette tobaccos.

This section of our website is devoted to providing information about the Master Settlement Agreement and Phase II of the settlement. It focuses particularly on settlement actions and impacts in major tobacco growing states.
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Policy Updates
Expectations vs. Experience: Use of Tobacco Settlement Payments in Major Tobacco States
—Kelly H. Tiller, Presented at the 2002 Tobacco Workers Conference, Pinehurst, NC, January 16, 2002

Policy Update: Use of Tobacco Settlement Payments in Tennessee
—Issue of Policy Update that summarizes the status of spending tobacco settlement (MSA) funds in Tennessee through Spring 2001. (March 2, 2001)

Policy Update: Use of Tobacco Settlement Payments in Other Major Tobacco States
—Issue of Policy Update that summarizes the status of spending tobacco settlement (MSA) funds in major tobacco producing states (North Carolina, Kentucky, Tennessee, Virginia, South Carolina, and Georgia) through Spring 2001. (March 2, 2001)

Policy Update: Use of Phase II Payments in Tennessee
—Issue of Policy Update that summarizes the status of Phase II tobacco settlement funds in Tennessee through 2000. (March 2, 2001)

Policy Update: Use of Phase II Payments in Other Major Tobacco States
—Issue of Policy Update that summarizes the status of Phase II tobacco settlement funds in major tobacco producing states other than Tennessee (North Carolina, Kentucky, Virginia, and others) through 2000. (March 2, 2001)

Policy Update: Tobacco Master Settlement Agreement
—Issue of Policy Update that summarizes the status of spending tobacco settlement (MSA) funds in major tobacco producing states (North Carolina, Kentucky, Tennessee, Virginia, South Carolina, and Georgia). (March 20, 2000)

Policy Update: Tobacco Settlement Phase II
—Issue of Policy Update that summarizes the status of spending Phase II tobacco settlement funds in major tobacco producing states (North Carolina, Kentucky, Tennessee, Virginia, South Carolina, and Georgia) for 1999. (March 20, 2000)

Summary of Phase I & Phase II Allocations in Major Tobacco States
—State-by-state summary of where Phase I (MSA) and Phase II stand in the six major tobacco producing states. Includes graphs of funding amounts. (September 1999)

MSA Annual Payment Schedule
—State-by-state payment schedule for tobacco MSA payments, 1999 through 2025, for eleven Southeastern states. (September 1999)

Pending Bills Before the Tennessee General Assembly
—Issue of Policy Update that summarizes all pending bills before the 101st General Assembly related to allocating Phase I tobacco settlement money. (March 10, 2000)

Summary of Virginia Settlement Legislation
Link to a document prepared for a TTWG meeting that summarizes Virginia's legislation affecting MSA receipts. (March 1999)

Virginia Farm Bureau Bill Summary
—Link to a document prepared by the Virginia Farm Bureau that summarizes Virginia's legislation allocating MSA payments. (March 1999)

Virginia Tobacco Foundation Fact Sheet
—Link to a document prepared by Frank Dukes (University of Virginia, Institute for Environmental Negotiation) that summarizes Virginia's legislation establishing the Virginia Tobacco Communities Indemnification and Revitalization Foundation. (April 1999)

Virginia Tobacco Commission Fact Sheet
—Link to a document prepared by Frank Dukes (University of Virginia, Institute for Environmental Negotiation) that summarizes Virginia's legislation establishing the Virginia Tobacco and Health Commission. (April 1999)

Summary of North Carolina Settlement Legislation
—Link to a document prepared for a TTWG meeting that summarizes North Carolina's legislation affecting MSA receipts. (April 1999)


Tobacco Settlement Links

Link to the Full Text of the Master Settlement Agreement

General Accounting Office Reports:

Tobacco Settlement: States’ Use of Master Settlement Agreement Payments (GAO-01-851)

Tobacco Settlement: States’ Allocations of Fiscal Years 2002 and 2003 Master Settlement Agreement Payments (GAO-03-407)

Tobacco Settlement: States’ Allocations of Fiscal Years 2003 and Expected Fiscal Year 2004 Master Settlement Agreement Payments (GAO-04-518)

Tennessee's Website for Phase II Funds

North Carolina's Website for Phase II Funds

Kentucky's Phase I Money

Kentucky's Website for Phase II Funds

National Governors' Association: Tobacco Settlement Information for States

National Association of Attorneys General: Tobacco Settlement

National Conference of State Legislatures: Tobacco Settlement Information

Campaign for Tobacco Free Kids