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Tobacco Settlement Summary

Requires industry payments to the states in perpetuity, with payments totaling $206 billion through the year 2025.
- Montana is slated to receive approximately $832 million through the year 2025 under this portion of the agreement.
Requires the companies to pay $861 million into a strategic contribution fund from April 2008 through April 2017, with the funds distributed to states based on a formula that reflects the contribution each state made toward resolving its individual lawsuit against the tobacco companies.
- Montana is scheduled to receive an additional $90 million from this fund.

Requires the tobacco industry to pay $25 million each year for 10 years to fund a charitable foundation that will support the study of programs to reduce teen smoking and substance abuse and the prevention of diseases associated with tobacco use.
Requires the tobacco industry to fund a $1.45 billion national public education fund for tobacco control.
- The American Legacy Foundation began operation in March 1999. For more information, visit the Foundation's website at www.americanlegacy.org.

Prohibits the use of cartoon characters in advertising, promoting, packaging or labeling tobacco products.
Prohibits targeting youth in advertising, promotions or marketing.
Requires the tobacco industry to identify ways to reduce youth access to and consumption of tobacco.

Bans all outdoor tobacco product advertising, including billboards, signs and placards in arenas, stadiums, shopping malls and video game arcades.
Limits advertising outside retail establishments to 14 square feet.
Allows states to substitute, for the duration of billboard lease periods, alternative advertising that discourages youth smoking.
- In Montana, one Phillip Morris tobacco billboard was replaced with alternative advertising under the terms of the agreement. In addition, Lamar Outdoor Advertising of Billings donated another 10 billboards for anti-tobacco advertising.

Bans distribution and sale of apparel and merchandise—such as caps, T-shirts and backpacks—that contain brand-name logos.

Bans payments to promote tobacco products in movies, television shows, theater productions or live performances, live or recorded music performances, videos and video games.
Prohibits brand-name sponsorship of events with a significant youth audience or team sports, such as football, basketball, baseball, hockey or soccer.
Bans tobacco brand names for stadiums and arenas.
Limits tobacco companies to one brand-name sponsorship per year, after current contracts expire or after three years, whichever comes first.

Bans free samples except in a facility or enclosed area where the operator ensures no underage person is present.

Disbands the Council for Tobacco Research, the Tobacco Institute, and the Council for Indoor Air Research.
Provides regulation and oversight of new trade organizations.

Provides court jurisdiction for implementation and enforcement.
Imposes monetary, civil contempt, or criminal sanctions on any party found in violation of the court enforcement orders.
Allows settling Attorneys General access to company documents, records and personnel to enforce the agreement.
Directs the industry to pay $50 million to assist settling states in enforcing and implementing the agreement and to investigate and litigate potential violations of state tobacco laws.

Prohibits tobacco companies from opposing proposed state or local laws or administrative rules intended to limit youth access to and consumption of tobacco products.
Requires industry lobbyists to certify in writing that they have reviewed and will comply with the settlement terms.

Limits minimum pack size to 20 cigarettes through Dec. 31, 2001.
Prohibits tobacco companies from opposing state legislation that bans the manufacture and sale of packs containing fewer than 20 cigarettes.

Prohibits the industry from making any material misrepresentation about the health consequences of smoking.
Prohibits manufacturers from jointly contracting or conspiring to: limit information about the health hazards from the use of their products; limit or suppress research into the marketing or development of new products; or limit or suppress research into smoking and health.

Requires tobacco companies to open a website that includes all documents produced in state and other smoking and health-related lawsuits. The industry must maintain the site for 10 years in a user-friendly format.