Attorney General Jan Graham briefs Senate on tobacco settlement and urges protective intent language

Attorney General Jan Graham and public-health experts briefed the Utah Senate in Committee of the Whole on Feb. 24 about the national tobacco settlement, Utah’s projected share, timing, legal risks and policy options for spending the funds.

Graham said the national settlement totals $206 billion and Utah’s state-specific share is $836 million, to be paid annually over 25 years. She told the Senate Utah could receive roughly $40 million in fiscal year 2000 if the payment trigger is met; the payment is triggered when 80% of states (and 80% of the money) reach state-specific finality. At the time of the briefing she said about 42% of states had achieved state-specific finality, and she confirmed Utah’s order of dismissal had been entered in state court.

Graham outlined a potential federal challenge: the Health Care Financing Administration (HCFA) had signaled (but, at the time, not formally filed) a claim that some settlement money could be subject to federal Medicaid offsets because Medicaid previously paid tobacco-related costs. Graham said Congress was considering legislation to bar federal claims and that bipartisan bills in both chambers could resolve the issue; she urged lawmakers to adopt strong intent language committing funds to public-health purposes so Utah’s allocation is less vulnerable to federal pressure.

Gordon Lindsay, professor of health sciences at Brigham Young University and chair of a state tobacco coalition, presented evidence on prevention: he said teenage tobacco use in Utah has risen roughly 73% since 1988 and that the average initiation age has fallen to about 13. Lindsay reviewed effectiveness evidence from other states — including California and Massachusetts — showing that coordinated strategies (tax increases paired with targeted media campaigns, school curricula and community programs) reduce smoking prevalence. He recommended a multi-pronged approach rather than single, isolated interventions.

During Q&A, Graham and staff clarified settlement mechanics and program funding: the settlement does not dictate how states spend proceeds; state law and the governor’s approval determine spending. Graham explained a national enforcement/monitoring fund (administered by the National Association of Attorneys General) will support compliance oversight and noted a one-time $50 million research fund to study youth tobacco prevention was part of the settlement resources. She also said the settlement covered smokeless tobacco and omitted cigars. Senators asked whether increasing state cigarette taxes would affect the settlement payments; Graham said she would circulate a memo with specifics.

Senators praised the presentation and moved to thank the Attorney General and her staff. The Committee of the Whole was dissolved and the Senate returned to regular business.