Delaware News

Delaware Department of Justice announces $2 million payment to support health-related programs

Civil Division | Department of Justice | Department of Justice Press Releases | Date Posted: Friday, February 27, 2009



Today, the Delaware Department of Justice announced that Delaware has received a $2,138,096 supplemental payment through its participation in the Master Settlement Agreement (MSA) with the tobacco industry. Today’s payment represents Delaware’s share of $540 million that was initially withheld in April 2008 by the tobacco industry from its annual payment to states who participate in the MSA. The payment has been deposited into the Delaware Health Fund.

“We welcome the receipt of these funds, particularly during this time of lower state revenue,”
stated Chief Deputy Attorney General Richard Gebelein. “This payment is now available to benefit
Delawareans by supporting health-related programs across our state.”

The $540 million initially withheld by the tobacco industry related to a dispute of its 2005
payments to the states. The funds were held in a disputed payments account, and as part of ongoing
arbitration related to its previous years’ payments, tobacco manufacturers recently agreed to release
this amount to the states.

Under the MSA, participating tobacco manufacturers make substantial payments to states that
have reached settlements with the industry. They are also bound by a wide array of restrictions on the
advertising, promotion and marketing of cigarettes, including outright bans on targeting youth and
distribution of merchandise advertising a cigarette brand. Studies show that the vast majority of
current adult smokers began smoking before the age of 18, and since the MSA took effect, youth
smoking rates nationally have dropped nationwide.

In 1999, the Delaware Health Act was signed into law. This statute established the Delaware
Health Fund, which receives payments received by the state under the MSA; created the Delaware
Health Fund Advisory Committee to make recommendations for appropriating monies received by the
Delaware Health Fund; and directed how money paid into the fund should be spent. The Delaware
Department of Justice administers the state’s participation in the MSA.

Learn more about the Delaware Health Fund and the Health Fund Advisory Committee by
visiting http://dhss.delaware.gov/dhss/healthfund/about.html.
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Delaware Department of Justice announces $2 million payment to support health-related programs

Civil Division | Department of Justice | Department of Justice Press Releases | Date Posted: Friday, February 27, 2009



Today, the Delaware Department of Justice announced that Delaware has received a $2,138,096 supplemental payment through its participation in the Master Settlement Agreement (MSA) with the tobacco industry. Today’s payment represents Delaware’s share of $540 million that was initially withheld in April 2008 by the tobacco industry from its annual payment to states who participate in the MSA. The payment has been deposited into the Delaware Health Fund.

“We welcome the receipt of these funds, particularly during this time of lower state revenue,”
stated Chief Deputy Attorney General Richard Gebelein. “This payment is now available to benefit
Delawareans by supporting health-related programs across our state.”

The $540 million initially withheld by the tobacco industry related to a dispute of its 2005
payments to the states. The funds were held in a disputed payments account, and as part of ongoing
arbitration related to its previous years’ payments, tobacco manufacturers recently agreed to release
this amount to the states.

Under the MSA, participating tobacco manufacturers make substantial payments to states that
have reached settlements with the industry. They are also bound by a wide array of restrictions on the
advertising, promotion and marketing of cigarettes, including outright bans on targeting youth and
distribution of merchandise advertising a cigarette brand. Studies show that the vast majority of
current adult smokers began smoking before the age of 18, and since the MSA took effect, youth
smoking rates nationally have dropped nationwide.

In 1999, the Delaware Health Act was signed into law. This statute established the Delaware
Health Fund, which receives payments received by the state under the MSA; created the Delaware
Health Fund Advisory Committee to make recommendations for appropriating monies received by the
Delaware Health Fund; and directed how money paid into the fund should be spent. The Delaware
Department of Justice administers the state’s participation in the MSA.

Learn more about the Delaware Health Fund and the Health Fund Advisory Committee by
visiting http://dhss.delaware.gov/dhss/healthfund/about.html.
# # #

image_printPrint


Graphic that represents delaware news on a mobile phone

Keep up to date by receiving a daily digest email, around noon, of current news release posts from state agencies on news.delaware.gov.

Here you can subscribe to future news updates.