BackSTATE ATTORNEYS GENERAL
A Communication From the Chief Legal Officers of the Following:
Alaska, American Samoa, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Guam, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Dakota, Northern Mariana Islands, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Washington, West Virginia, Wisconsin, Wyoming
November 7, 1997
Dear Mr. President:
Over the last three years, 40 states and one commonwealth have filed suits against the tobacco industry. These state actions have served as a catalyst for change in an industry that has been widely perceived as untouchable.
As you may appreciate, the Attorneys General, who have brought these actions on behalf of the public, have shared common goals which you embraced on September 17. Through their lawsuits, the Attorneys General have asserted a broad range of claims against the industry seeking to reduce youth smoking, secure disclosure of documents, ensure change in the industry, and recoup state health care costs. The state actions assert a variety of legal theories. Many seek recovery of Medicaid payments made by the states for tobacco-related illnesses, as well as damages and penalties for violation of state antitrust and consumer protection laws. Indeed, in some states, the latter claims are the core elements of the lawsuit against the industry, as Medicaid-related claims have been dismissed by the courts or were not brought at all. As our state cases proceed to trial and judgment, to individual state settlement, or to resolution through the pending national settlement, the recovery to the states will represent a resolution of all the claims brought by the states, not just recoupment of Medicaid-related health care costs.
Recently, the federal government has asserted that it is entitled to a significant share of the states’ recovery, whether that be through settlement or other recovery, on the basis that it represents the federal share of Medicaid costs. The federal government makes this claim despite the fact these recoveries will represent success in state suits, under state law theories, for a variety of claims unrelated to Medicaid payments. The federal government has declined to bring its own suit against the industry.
On October 17, 1997, the National Governors’ Association endorsed a policy regarding tobacco settlement funds. As stated in that policy, the Governors take the position that they will strongly oppose federal efforts to seize state tobacco settlement funds. The Attorneys General are in agreement with this position and will advance this interest on behalf of our states. We urge your full consideration of the position advanced by the Governors and the Attorneys General.
It is the intention of the states that their damage payments be used within each state primarily for public health purposes. The citizens of our states are entitled to the benefit of the litigation we have prosecuted on their behalf and any settlement entered into to resolve their lawsuits. The Attorneys General urge you to take action to clarify the position of the Administration on this fiscal issue and work with us to achieve our shared goal of a changed tobacco policy for this country.
Thank you.
Sincerely yours,