WELCOME TO THE WEBINAR Hello and thank you for joining today's - PowerPoint PPT Presentation

WELCOME TO THE WEBINAR • Hello and thank you for joining today's webinar hosted by the Public Health Law Center. We will be getting started shortly. • All attendees are muted. Questions will be held until the designated Q&A section at the end of the presentation but feel free to submit them at any time. To submit a question: click the black Q&A button in the bottom panel of the Zoom window. • This webinar is being recorded. If you miss details or would like to share it, a link to both the slides and recording will be available at www.publichealthlawcenter.org/webinars/archived usually within 24 hours. 12/6/2018 1

WHERE WE STAND 20 YEARS AFTER THE MSA: LEGACY AND LOOSE ENDS 12/6/2018 2

THE PUBLIC HEALTH LAW CENTER 12/6/2018 3

12/6/2018 4

AGENDA • Welcome and brief introductions • What is the MSA? • How the MSA relates to key developments in tobacco control • Moving forward • Q & A 12/6/2018 5

WEBINAR SPONSORS 12/6/2018 6

SPEAKERS Michael Hering , NAAG Center for Tobacco and Public Health Tamara Schlinger , NAAG Center for Tobacco and Public Health Meg Riordan , Campaign for Tobacco Free Kids Thomas Carr , American Lung Association Cathy Callaway , American Cancer Society-Cancer Action Network Joelle Lester , Public Health Law Center 12/6/2018 7

TOBACCO MASTER SETTLEMENT AGREEMENT 20 TH ANNIVERSARY M ichael Hering Tamara Schlinger Director and Chief Counsel Counsel National Association of Attorneys General Center for Tobacco and Public Health

Pre-MSA Marketing Methods The tobacco industry made outlandish claims… and denied the obvious… 20th Anniversary of the M SA Webinar - December 6, 2018 9

… and marketed to kids 20th Anniversary of the M SA Webinar - December 6, 2018 10

20th Anniversary of the M SA Webinar - December 6, 2018

The Basics of the Agreement Participating M anufacturers “ PM s” Settling States Advertising Restrictions Settlement (“ Public Health” provisions) Payments States to release claims against companies Truth Initiative 20th Anniversary of the M SA Webinar - December 6, 2018

MSA Parties § Participating [T obacco Product] M anufacturers” or “ PM s” ) § 2 “Original Participating M anufacturers” or “OPM s;” Phillip M orris, RJR § About 50 smaller “ Subsequent Participating M anufacturers” or “ SPM s” § Also, “ Non-Participating M anufacturers” or “ NPM s” States that did not sign: 52 of the 56 States and Territories signed M ississippi, Florida, the Tobacco M aster Settlement Texas, M innesota Agreement 20th Anniversary of the M SA Webinar - December 6, 2018

PERCENTAGE OF HIGH SCHOOL STUDENTS WHO CURRENTL Y SMOKE 40 35 From 36.4% at 1997 peak to 8.8% in 30 2017. Current frequent use reduced from 16.7% to 2.6% (Data from CDC Youth Risk Behavior Surveillance) 25 20 15 10 5 0 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 20th Anniversary of the MSA Webinar - December 6, 2018

D ECLINES IN U.S. C IGARETTE C ONSUMPTION 1990-2017 Cigarette consumption i in U U.S. 500 decl eclined ed b by 4 y 45% b bet etween een 1998 a and 2017; 201 7; p per-capita consumption b by ev even en m more 400 tion cigarettes) consumpti of c 300 billions o te c cigarette ( in b 200 100 0 Sources: 1993 -1996 US Department of Agriculture; 1997-2017 Alcohol & Tobacco Tax and Trade Bureau, Bureau of the Census 20th Anniversary of the M SA Webinar - December 6, 2018

MSA Payments Due v. Payments Received Sales Year 2003-2017 $8,000,000,000.00 $7,500,000,000.00 $7,000,000,000.00 $6,500,000,000.00 $6,000,000,000.00 Payment Due Amount $5,500,000,000.00 Paid $5,000,000,000.00 $4,500,000,000.00 $4,000,000,000.00 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 20th Anniversary of the M SA Webinar - December 6, 2018

MSA Advertising and Marketing Restrictions � � Prohibition on Targeting Y outh Prohibits Use of Cartoons � Limitations on Tobacco Brand Name Sponsorships � Elimination of Outdoor and Transit � Limitation on Third-Party Use Advertising of Brand Names 20th Anniversary of the M SA Webinar - December 6, 2018

MSA Advertising and Marketing Restrictions � Prohibition on Payments Related to T obacco Products and M edia � Ban on T obacco Brand Name M erchandise � Ban on Y outh Access to Free Samples � Prohibition on M aterial M isrepresentations of Fact 20th Anniversary of the M SA Webinar - December 6, 2018

Emerging Issues � Evolving M arketing M ethods � Evolving Products 20th Anniversary of the M SA Webinar - December 6, 2018

FDA Regulation 20 20th Anniversary of the M SA Webinar - December 6, 2018

MASTER SETTLEMENT AGREEMENT HISTORIC IMPORTANCE 12/6/2018 21

HISTORICAL CONTEXT EVOLUTION OF THE LAW 12/6/2018 22

HISTORICAL CONTEXT FIRST WAVE OF LITIGATION 12/6/2018 23

HISTORICAL CONTEXT SECOND WAVE OF LITIGATION 12/6/2018 24

HISTORICAL CONTEXT SCORCHED EARTH STRATEGY “The aggressive posture we have taken … continues to make these cases extremely burdensome and expensive for plaintiffs’ lawyers . . .. To paraphrase General Patton, the way we won these cases was not by spending all of [the tobacco companies’] money, but by making that other son of a bitch spend all of his.” Tobacco Industry Attorney, 1988 12/6/2018 25

HISTORICAL CONTEXT THIRD WAVE OF LITIGATION 12/6/2018 26

HISTORICAL CONTEXT STATE SETTLEMENTS 12/6/2018 27

HISTORICAL CONTEXT U.S. V. PHILIP MORRIS 12/6/2018 28

TOBACCO INDUSTRY TESTIMONY 12/6/2018 29

HISTORICAL CONTEXT FEDERAL REGULATION 1994 Congressional Hearings 1996 FDA Rulemaking 2009 T obacco Control Act 12/6/2018 30

STRENGTHS AND LIMITATIONS What the Master Settlement Agreement does that U.S. v. Philip Morris and the Tobacco Control Act cannot or did not do. 12/6/2018 31

The State Tobacco Settlement Presented an Historic Opportunity to: • Save Lives • Protect Children • Reduce HealthCare Costs 20 Th Anniversary of State Tobacco Settlement (M SA): Opportunity to review progress and identify remaining challenges TobaccoFreeKids.org >

The Problem: US Adult Smoking Disparities, 2017 TobaccoFreeKids.org > Source: National Health Interview Survey, 2017

Total Annual State Tobacco Prevention Spending FY1999 - FY2019 ?? Only 3 states – AZ, CA and MA - spent any money on tobacco prevention prior to 1999. Settlement payments to states began in 1999. All states were receiving payments by 2001. Funding amounts only include state funds. * State spending for FY16 includes $13.7 million for Pennsylvania that was not available for the 2015 Broken Promises Report.

Total State Tobacco Revenue vs. Total State Spending on Tobacco Prevention FY2000 - FY2019 $500 $453.4 Billion $450 $400 $350 $156.7 Billion Estimated Tobacco Over past 20 years, just $300 Settlement Revenues Billions 2.6% of Total Tobacco $250 Revenue has been spent on tobacco prevention $296.7 Billion $200 Estimated Tobacco programs Tax Revenues $150 $100 $50 $11.8 Billion $0 Total State Tobacco Revenues Total State Tobacco Prevention Spending xi

FY2018 State T obacco Prevention Spending Vs. State T obacco Revenue vs. CDC Recommendations $30,000 $27.4 Billion $8.1 Billion Estimated Tobacco Settlement $25,000 Revenues $20,000 $19.3 Billion $15,000 Estimated Tobacco Tax Revenues $10,000 $3.3 Billion $5,000 $721.6 Million $0 Total State Tobacco CDC Recommended Actual State Tobacco Revenues Annual Investment Prevention Spending

State T e T obacc cco C o Contr trol ol S Spen endin ing Rep eport, F FY19 s spen endin ing Release Date: Friday, December 14 th National and State-Specific press Releases State spending infographic Radio and TV interviews on December 14 th 39 TobaccoFreeKids.org >

State Spending Infographics 40 TobaccoFreeKids.org >

Projecting t g the Impact o of F Funding g Inc ncrease ses a s and nd C Cut uts 41 TobaccoFreeKids.org >

Projecting t g the Impact o of S Smoking g De Declines es 42 TobaccoFreeKids.org >

Key M essage Points 43 TobaccoFreeKids.org >

Qu Ques estion ons? M eg Riordan Campaign for Tobacco-Free Kids mriordan@tobaccofreekids.org Visit Our Website @ www.tobaccofreekids.org TobaccoFreeKids.org >

Key Points About M SA from Advocacy Perspective • T obacco companies can’t use cartoon characters in marketing • Annual tobacco settlement payments do not have an end date • Number of state tobacco control programs still rely on M SA payments for funding • Lock up funding by ballot measure/ constitutional amendment if possible • Securitization of M SA payments is bad, eliminates source of funding for tobacco control programs • 20 th anniversary golden opportunity to remind state officials about promises made at the time of the M SA 45 45