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Representative John Harris Session:
State Capitol, Room 110
Juneau, AK 99801-1182
Phone: (907) 465-4859
Fax: (907) 465-3799
Send E-Mail

Senate Asks White House to Keep Hands Off Tobacco Money
Alaska Could Lose $400 Million in Settlement Money

For Immediate Release: March 30, 1999
Contact: Representative John Harris at (907) 465-4859.

Juneau -- The Alaska Senate Tuesday unanimously passed House Joint Resolution 12, sponsored by Representative John Harris (R-Valdez). HJR 12 asks the federal government to abandon its announced intention to take some of the billions of dollars Alaska and other states will receive from a huge settlement with tobacco companies.

"The State of Alaska and the 45 other states sued the tobacco companies for violations of their state laws," Harris said. "The suit was brought by the states, not the federal government, and the states alone are entitled to that money."

HJR 12, which also passed the House unanimously, calls on Congress to enact legislation to prohibit federal claims on the settlement money. It also asks the President to sign the legislation, which has been introduced in Congress. Senator Frank Murkowski is a co-sponsor of the Senate version, S.346.

The federal government is attempting to recoup a portion of federal funds given to the states over the years for Medicaid. Estimates of this recoupment are as high as two-thirds of the $246 billion settlement, which will be paid out to the 46 states over a period of 25 years. The State of Alaska is scheduled to receive $669 million for its part of the settlement, of which the federal government could claim $400 million. The FY2000 federal budget proposal released by President Clinton includes some $16 billion in tobacco settlement funds as a revenue source.

HJR 12 now returns to the House for concurrence with Senate changes.

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