Tobacco Documents Online

. hOtJ-05-155? 16:42 The Tobacco Settlement: An Overview BACKGROUND On June 20, a group of state attorneys general, plaintiffs' lawyers, public health advocates, and lawyers representing cigarette manufacturers announced an historic settlement that would restructure the tobacco industry and revolutionize the nation's tobacco control efforts. The proposed settlement is intended to be a blueprint for congressional legislation. Two Senate committees have already held hearings on the settlement, and more are planned after the August recess as lawmakers consider how best to approach this issue. Overview of Settlement • Seeks to prevent underage access to, and dramatically reduce underage use of, tobacco products. • Confirms the FDA's authority to regulate tobacco products. • Incorporates most of the provisions of FDA's tobacco regulation, expanding them to include a ban on all outdoor tobacco advertising. • Sets national requirements limiting smoking in public buildings and leaves states and local governments free to set more stringent requirements. • Requires that the participating tobacco companies pay $15 billion a year to fund anti-smoking and smoking cessation programs, smoking- related health care costs incurred by federal, state and local governments, and federal and state enforcement of the proposed regulations. • Protects the industry from all class-action lawsuits, while preserving the rights of individuals to sue the tobacco industry. • Ensures that non-participating tobacco companies are held fully liable for any injuries their products may cause. • Mandates changes in the corporate culture of tobacco companies in order to ensure that they comply with the spirit, as well as the letter, of the proposed resolution. P.03/14