Press Release from Texas Attorney General Dan Morales


SUMMARY OF TOBACCO SETTLEMENT

  • $15.3 billion over 25 years.
  • $1.2 billion the first year, primarily for children's health care.
  • $428 million for the creation of a non-profit foundation that will provide grants to organizations that offer a variety of health care services.
  • $151 million to be used exclusively for the Children's Health Insurance Program, which will pay for health care for more than a million uninsured children.
  • $200 million to the University of Texas Health Science Center of San Antonio to be used exclusively for establishing, maintaining and operating the Texas Children's Cancer Institute.
  • $100 million to the MD Anderson Cancer Center in Houston for an endowment for research and reimbursement of indigent health-care costs.
  • $50 million to the Texas Tech Health Sciences Center in Lubbock and El Paso for border health initiatives, including the establishment and operation of the Institute of Border Health.
  • $50 million to The University of Texas Southwestern Medical Center at Dallas for research, endowments and other programs that benefit the public health.
  • 7.25 percent of the total annual payments agreed to by the tobacco industry under the national settlement now pending approval by Congress. Texas' share the first year will be $290 million and exceeds the 5 to 6 percent contemplated in the national settlement.
  • $200 million to the General Revenue of the State to be used for smoking cessation programs, enforcement of juvenile smoking laws and other anti-tobacco educational programs.
  • Restrictions on the industry's marketing practices, such as the elimination of all billboard advertising in the state; and, no advertising on buses, taxis or in transit stations or waiting areas.
  • Industry may not challenge laws recently passed by the Texas Legislature which affect the sale to, and possession of, tobacco products by children under the age of 18.
  • Tobacco industry will pay the Office of the Attorney General $5 million for its costs and attorneys' fees.
  • Three-person arbitration panel or the court to decides costs, expenses and fees for private counsel used by the State.

CONTACT:

Ron Dusek, Ward Tisdale or Sonya Sanchez @ 512-463-2050 or press@oag.state.tx.us