The Master Settlement Agreement
In 1998, the Attorneys General of 46 states, including Nevada,
signed the Master Settlement Agreement (MSA) with the four largest tobacco
companies in the United States: Brown & Williamson, Lorillard, Philip
Morris, and R.J. Reynolds, the “Original Participating Manufacturers.” The MSA and related documents can be found at
the following website http://www.naag.org/tobacco.php.
The MSA settled lawsuits by the states to recover costs
associated with the treatment of smoking-related illnesses. Four states – Florida, Minnesota, Texas, and
Mississippi – settled their tobacco cases separately from the MSA states.
The MSA imposes restrictions on the advertising, promotion, and
marketing or packaging of cigarettes, including a ban on “targeting youth,” and
requires the signatory tobacco manufacturers to make payments to the MSA states
on or before April 15th of each year.
A “Participating Manufacturer” or “PM” is any Tobacco Product
Manufacturer that is a signatory to the MSA. There are two types of PMs: “Original
Participating Manufacturers,” who signed onto the MSA on November 23, 1998, and
“Subsequent Participating Manufacturers,” who signed onto the MSA sometime
after November 23, 1998.
Since 1998, approximately 41 additional tobacco companies have
joined the MSA as “Subsequent Participating Manufacturers.”
A “Non-Participating Manufacturer” or “NPM” is any tobacco
product manufacturer who is not a Participating Manufacturer.
In 1999, the Nevada Legislature approved two bills which
determine how the tobacco settlement proceeds are distributed. Approximately 60% of Nevada’s annual MSA
payment goes towards the Fund for a Healthy Nevada and 40% funds Nevada’s
Millennium Scholarship Program. See NRS
396.926 and 439.620.