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
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