US: Kentucky to Get More than $101 Million in Tobacco Settlement Money

Source from:  Business First  04/19/2013

As part of the 1998 Master Settlement Agreement between major tobacco manufacturers and 52 states and/or territories, Kentucky received its annual payment of more than $101 million this week.

"The money Kentucky receives each year from the (agreement) provides funding for many invaluable programs — from agriculture to eduction," Kentucky Attorney General Jack Conway said in a news release.

"My office continues to closely monitor and enforce the agreement and stands ready to defend actions brought to challenge it in both state and federal courts."

Each year, the payments are calculated in part based on the number of cigarettes sold by the companies that are part of the settlement. Cigarette sales nationally are down more than 30 percent since the agreement went into effect.

Since the initial payment in 1999, Kentucky has received $1.5 billion from Phase I of the settlement. An additional $600 million was received by Kentucky tobacco growers under Phase II, the Tobacco Growers Trust Agreement, which was created because of a Master Settlement Agreement provision to address effects of the agreement on tobacco-growing communities in 14 states. Enditem