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WELCOME TO THE WEBINAR Hello and thank you for joining today's webinar hosted by the Public Health Law Center. We will be getting started shortly. All attendees are muted. Questions will be held until the designated Q&A section at

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WELCOME TO THE WEBINAR

12/6/2018 1

  • Hello and thank you for joining today's webinar hosted by the

Public Health Law Center. We will be getting started shortly.

  • All attendees are muted. Questions will be held until the

designated Q&A section at the end of the presentation but feel free to submit them at any time. To submit a question: click the black Q&A button in the bottom panel of the Zoom window.

  • This webinar is being recorded. If you miss details or would

like to share it, a link to both the slides and recording will be available at www.publichealthlawcenter.org/webinars/archived usually within 24 hours.

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SLIDE 2

2 12/6/2018

WHERE WE STAND 20 YEARS AFTER THE MSA: LEGACY AND LOOSE ENDS

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THE PUBLIC HEALTH LAW CENTER

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SLIDE 4

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AGENDA

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  • Welcome and brief introductions
  • What is the MSA?
  • How the MSA relates to key developments in tobacco control
  • Moving forward
  • Q & A
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WEBINAR SPONSORS

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SPEAKERS

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Michael Hering, NAAG Center for Tobacco and Public Health Tamara Schlinger, NAAG Center for Tobacco and Public Health Meg Riordan, Campaign for Tobacco Free Kids Thomas Carr, American Lung Association Cathy Callaway, American Cancer Society-Cancer Action Network Joelle Lester, Public Health Law Center

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TOBACCO MASTER SETTLEMENT AGREEMENT 20TH ANNIVERSARY

M ichael Hering Tamara Schlinger Director and Chief Counsel Counsel National Association of Attorneys General Center for Tobacco and Public Health

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Pre-MSA Marketing Methods

The tobacco industry made outlandish claims… and denied the obvious…

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20th Anniversary of the M SA Webinar - December 6, 2018

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… and marketed to kids

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20th Anniversary of the M SA Webinar - December 6, 2018

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20th Anniversary of the M SA Webinar - December 6, 2018

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The Basics of the Agreement

Settling States Participating M anufacturers “ PM s”

20th Anniversary of the M SA Webinar - December 6, 2018

Advertising Restrictions (“ Public Health” provisions)

Settlement Payments States to release claims against companies Truth Initiative

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MSA Parties

20th Anniversary of the M SA Webinar - December 6, 2018

§

Participating [T

  • bacco Product]

M anufacturers” or “ PM s” )

§

2 “Original Participating M anufacturers” or “OPM s;” Phillip M orris, RJR

§

About 50 smaller “ Subsequent Participating M anufacturers” or “ SPM s”

§

Also, “ Non-Participating M anufacturers” or “ NPM s”

52 of the 56 States and Territories signed the Tobacco M aster Settlement Agreement States that did not sign: M ississippi, Florida, Texas, M innesota

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20th Anniversary of the MSA Webinar - December 6, 2018

5 10 15 20 25 30 35 40 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 From 36.4% at 1997 peak to 8.8% in

  • 2017. Current frequent use reduced

from 16.7% to 2.6% (Data from CDC Youth Risk Behavior Surveillance) PERCENTAGE OF HIGH SCHOOL STUDENTS WHO CURRENTL Y SMOKE

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20th Anniversary of the M SA Webinar - December 6, 2018

DECLINES IN U.S. CIGARETTE CONSUMPTION 1990-2017

Sources: 1993 -1996 US Department of Agriculture; 1997-2017 Alcohol & Tobacco Tax and Trade Bureau, Bureau of the Census

100 200 300 400 500

cigarette te c consumpti tion

(in b

billions o

  • f c

cigarettes)

Cigarette consumption i in U U.S. decl eclined ed b by 4 y 45% b bet etween een 1998 a and 201 2017; 7; p per-capita consumption b by ev even en m more

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20th Anniversary of the M SA Webinar - December 6, 2018

$4,000,000,000.00 $4,500,000,000.00 $5,000,000,000.00 $5,500,000,000.00 $6,000,000,000.00 $6,500,000,000.00 $7,000,000,000.00 $7,500,000,000.00 $8,000,000,000.00 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

MSA Payments Due v. Payments Received Sales Year 2003-2017

Payment Due Amount Paid

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MSA Advertising and Marketing Restrictions

  • Prohibition on Targeting Y
  • uth
  • Limitations on Tobacco Brand Name

Sponsorships

  • Elimination of Outdoor and Transit

Advertising

  • Prohibits Use of Cartoons
  • Limitation on Third-Party Use
  • f Brand Names

20th Anniversary of the M SA Webinar - December 6, 2018

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  • Prohibition on Payments Related to

T

  • bacco Products and M edia
  • Ban on T
  • bacco Brand Name M erchandise
  • Ban on Y
  • uth Access to Free Samples
  • Prohibition on M aterial

M isrepresentations of Fact

20th Anniversary of the M SA Webinar - December 6, 2018

MSA Advertising and Marketing Restrictions

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Emerging Issues

Evolving M arketing M ethods Evolving Products

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FDA Regulation

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MASTER SETTLEMENT AGREEMENT HISTORIC IMPORTANCE

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HISTORICAL CONTEXT EVOLUTION OF THE LAW

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HISTORICAL CONTEXT FIRST WAVE OF LITIGATION

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HISTORICAL CONTEXT SECOND WAVE OF LITIGATION

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HISTORICAL CONTEXT SCORCHED EARTH STRATEGY

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“The aggressive posture we have taken … continues to make these cases extremely burdensome and expensive for plaintiffs’ lawyers . . .. To paraphrase General Patton, the way we won these cases was not by spending all of [the tobacco companies’] money, but by making that other son of a bitch spend all of his.” Tobacco Industry Attorney, 1988

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HISTORICAL CONTEXT THIRD WAVE OF LITIGATION

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HISTORICAL CONTEXT STATE SETTLEMENTS

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HISTORICAL CONTEXT U.S. V. PHILIP MORRIS

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TOBACCO INDUSTRY TESTIMONY

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HISTORICAL CONTEXT FEDERAL REGULATION

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1994 Congressional Hearings 1996 FDA Rulemaking 2009 T

  • bacco

Control Act

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STRENGTHS AND LIMITATIONS

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What the Master Settlement Agreement does that U.S. v. Philip Morris and the Tobacco Control Act cannot or did not do.

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TobaccoFreeKids.org >

The State Tobacco Settlement Presented an Historic Opportunity to:

  • Save Lives
  • Protect Children
  • Reduce HealthCare Costs

20Th Anniversary of State Tobacco Settlement (M SA): Opportunity to review progress and identify remaining challenges

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TobaccoFreeKids.org >

The Problem: US Adult Smoking Disparities, 2017

Source: National Health Interview Survey, 2017

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Total Annual State Tobacco Prevention Spending FY1999 - FY2019

Only 3 states – AZ, CA and MA - spent any money on tobacco prevention prior to 1999. Settlement payments to states began in 1999. All states were receiving payments by 2001. Funding amounts only include state funds. * State spending for FY16 includes $13.7 million for Pennsylvania that was not available for the 2015 Broken Promises Report.

??

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Total State Tobacco Revenue vs. Total State Spending on Tobacco Prevention FY2000 - FY2019

$0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500

Total State Tobacco Revenues Total State Tobacco Prevention Spending

Billions

$453.4 Billion

$296.7 Billion Estimated Tobacco Tax Revenues $156.7 Billion Estimated Tobacco Settlement Revenues

$11.8 Billion

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Over past 20 years, just 2.6% of Total Tobacco Revenue has been spent

  • n tobacco prevention

programs

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FY2018 State T

  • bacco Prevention Spending
  • Vs. State T
  • bacco Revenue vs. CDC

Recommendations

$0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000

Total State Tobacco Revenues CDC Recommended Annual Investment Actual State Tobacco Prevention Spending

$3.3 Billion $721.6 Million $27.4 Billion

$8.1 Billion Estimated Tobacco Settlement Revenues $19.3 Billion Estimated Tobacco Tax Revenues

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TobaccoFreeKids.org >

State T e T

  • bacc

cco C

  • Contr

trol

  • l S

Spen endin ing Rep eport, F FY19 s spen endin ing

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Release Date: Friday, December 14th National and State-Specific press Releases State spending infographic Radio and TV interviews on December 14th

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TobaccoFreeKids.org >

State Spending Infographics

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TobaccoFreeKids.org >

Projecting t g the Impact o

  • f F

Funding g Inc ncrease ses a s and nd C Cut uts

41

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TobaccoFreeKids.org >

Projecting t g the Impact o

  • f S

Smoking g De Declines es

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TobaccoFreeKids.org >

Key M essage Points

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TobaccoFreeKids.org >

Qu Ques estion

  • ns?

M eg Riordan Campaign for Tobacco-Free Kids mriordan@tobaccofreekids.org Visit Our Website @ www.tobaccofreekids.org

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  • T
  • bacco companies can’t use cartoon characters in marketing
  • Annual tobacco settlement payments do not have an end date
  • Number of state tobacco control programs still rely on M SA payments for

funding

  • Lock up funding by ballot measure/ constitutional amendment if possible
  • Securitization of M SA payments is bad, eliminates source of funding for

tobacco control programs

  • 20th anniversary golden opportunity to remind state officials about

promises made at the time of the M SA

Key Points About M SA from Advocacy Perspective

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  • Lung Association State of T
  • bacco Control report
  • Release date January 30, 2019
  • In the context of tobacco control program funding campaigns in 2019
  • State-specific M SA-related anniversaries
  • For example when M SA implementing legislation was passed
  • T
  • highlight ongoing questionable/ improper uses of M SA funds
  • If securitization of M SA payments is ending in your state

Additional Opportunities to Highlight M SA 20th Anniversary

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TALES FROM THE FIELD

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CONTACT US

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651.290.7506 publichealthlawcenter@mitchellhamline.edu www.publichealthlawcenter.org @phealthlawctr facebook.com/publichealthlawcenter