(KNSI) – On Tuesday, Minnesota Attorney General Keith Ellison announced that the state will receive $81 million in back payments from two tobacco companies as required by a 1998 agreement.
That tobacco agreement holds R.J. Reynolds Tobacco Company and ITG Brands responsible for settlement payments to the state. A payment dispute occurred when Reynolds transferred some of its brands to ITG, and that stalled those settlement payments between 2015-2020. The AG’s office says that the dispute has been resolved, and after the state receives the $81 million in back pay, those companies will pay out $10 million or more each year to Minnesota.
CentraCare’s community wellness program director Jodi Gertken calls the settlement resolution a win.
“We see this as an important victory that actually holds Big Tobacco accountable for the death and disease that they cause in Minnesota, so it’s a big win for our state,” Gertken said. “And it’s important also that these monies are going to be dedicated to tobacco prevention and treatment.”
Right now, the $81 million and future payments will go to Minnesota’s general fund. However, companion bills in the Minnesota Senate and House seek to use $15 million from the payments to create a new tobacco use prevention account.
“This money would be significantly important so we can keep our use rates — they’re kind of stagnant right now — you want to see them continue to decline,” Gertken said.
The pandemic has added another layer of urgency to health care professionals’ tobacco use prevention and cessation efforts.
“Current and former smokers are at increased risk for severe illness caused by COVID,” Gertken said. “To make matters worse, communities targeted by the tobacco industry are some of the hardest hit by COVID. That’s our BIPOC communities, LGBTQ, so we know there is a significant need.”
Gertken says effective messaging combined with legislation will have the greatest impact on tobacco use prevention and cessation.
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