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7 LONG TITLE
8 General Description:
9 This joint resolution approves an updated settlement agreement.
10 Highlighted Provisions:
11 This resolution:
12 ▸ approves an updated settlement agreement in State of Utah v. R.J. Reynolds
13 Tobacco Company.
14 Special Clauses:
15 None
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17 Be it resolved by the Legislature of the state of Utah:
18 WHEREAS, to further the state's interest in public health, to reduce underage smoking,
19 and to promote tobacco prevention education, the state sued several large tobacco
20 manufacturers stating claims for monetary, equitable, and injunctive relief under state
21 consumer protection and antitrust laws in State of Utah v. R.J. Reynolds Tobacco Company, et
22 al., Civil No. 2:96-CV-0829;
23 WHEREAS, in November 1998, through its elected attorney general, the state of Utah,
24 45 other states, the District of Columbia, the Commonwealth of Puerto Rico, and four
25 territories entered into a Master Settlement Agreement resolving all tobacco-related claims;
26 WHEREAS, since that time the state has been performing its obligations under the
27 terms of the settlement, which terms have now been restated;
28 WHEREAS, the state will endeavor to accept the restated terms, including the
29 transition period and any other terms that the attorney general considers warranted;
30 WHEREAS, the restated terms will result in a net financial benefit to the state, namely:
31 ▸ in April 2018, the state will receive its regularly scheduled tobacco master
32 settlement payment in the approximate amount of $28,000,000, plus an
33 additional approximate payment of $28,000,000; and
34 ▸ between 2018 and 2027 the state will receive substantial additional settlement
35 payments in the approximate amount of $298,000,000; and
36 WHEREAS, as with the terms of the original settlement agreement and in exchange for
37 those sums, the state of Utah will continue to diligently enforce the original and restated terms
38 of the settlement agreement, such actions being in the state's best interest:
39 NOW, THEREFORE, BE IT RESOLVED that the Legislature of the state of Utah
40 acknowledges and agrees with the restated terms and updated settlement, including all
41 additional terms the attorney general considers warranted under the circumstances, and fully
42 supports the attorney general signing the Term Sheet.
Legislative Review Note
Office of Legislative Research and General Counsel