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Attorney General’s office: New Mexico received ~$26.8M MSA payment; arbitration and Jewel/dual settlements under way; committee moves to executive session
Summary
Julie Mead briefed the committee that New Mexico's 2025 MSA payment (sales year 2024) resulted in approximately $26.8 million to the state; she reviewed NPM adjustments, ongoing arbitrations for earlier sales years and reported about $4.54 million received under a Jewel settlement. The committee voted to enter executive session to discuss litigation strategy.
Julie Mead opened the committee's second presentation with a high‑level overview of Master Settlement Agreement (MSA) accounting and litigation affecting New Mexico's tobacco payments.
"For the sales year of 2024, the MSA payment was calculated to be the base amount at about 5,500,000,000.0," Mead said, explaining that PricewaterhouseCoopers acts as the independent auditor and that New Mexico's allocable share is 0.0596. She told the committee that New Mexico received approximately $26,800,000 for the year and that projections for the 2026 payment range between $22,000,000 and $25,000,000.
Mead described the nonparticipating manufacturer (NPM) adjustment as the main driver of litigation: if a state does not ‘‘diligently enforce’’ its qualifying statute, its payment can be reduced. She reviewed prior proceedings, noting an arbitration finding for the 2004 sales year that reduced payments but then said the state successfully moved to vacate the non‑diligent finding in district court; an appeal of that decision is pending in the state court of appeals. Mead also described several proactive actions New Mexico has taken, including breach‑of‑contract litigation and requests for declaratory relief about the definition of diligent enforcement; the state has appealed orders that would compel some claims to arbitration and awaits appellate resolution.
Mead provided an update on the Jewel settlement and dual‑settlement payments: the state has received approximately $4.54 million from the Jewel matter and anticipates five remaining yearly dual‑settlement payments through June 1, 2030, each roughly $2.1 million. She reminded the committee that recent appropriations included about $3.5 million to the Department of Health from those settlement proceeds.
After the presentation the chair proposed an executive session to discuss litigation strategy and any sensitive details not appropriate for public discussion. A committee member moved, a second was heard and the body approved by voice vote. The chair instructed nonmembers to vacate the room and the committee paused for executive session.
Mead said the state has taken an aggressive stance in multiple filings — motions to vacate, affirmative breach‑of‑contract claims, and declaratory‑judgment requests — and that several matters remain before arbitration panels and appellate courts. Committee members asked for clarification about how New Mexico's allocable percentage (0.0596) was determined; Mead said it was negotiated in the original 1998 MSA and likely population‑based.
The committee recessed to executive session to receive further confidential detail on ongoing litigations.
