|
Session:
State Capitol, Room 110 Juneau, AK 99801-1182 Phone: (907) 465-4859 Fax: (907) 465-3799 Send E-Mail |
No Federal Claim on State Tabacco Settlement
Relating to federal claims against funds obtained by settlement of state tobacco litigation.
Posted: February 22, 2000
Contact: Representative John Harris, at (907) 465-4859.
Last November, Alaska and 45 other states settled a comprehensive lawsuit against the nation's major tobacco producers for a total sum of $246 billion, to be paid out over a period of about 25 years. The federal government, which was not a party to the litigation, asserts that it is entitled to recoup a significant portion of the settlement monies to reimburse it for Medicaid funds given to the states over the years.
We do not believe the federal government should be asserting a claim to any of the settlement monies. The lawsuit brought by the various states against the tobacco companies was based on violations of state laws. The federal government did not join the suit or assert any federal claims of its own.
For its part of the settlement, the State of Alaska is scheduled to receive a total of $668,903,056.53 over the next 25 years, in annual payments of between $21 million and $28 million. The federal government, if successful in asserting any right to recoupment of the settlement funds, could take as much as $400 million of Alaska's share.
The Clinton administration is evidently so determined to take the lion's share of the settlement funds that it has included them as a funding source in the FY 2000 budget introduced by the President on February 1.
Legislation has been introduced in the Congress to prohibit federal recoupment of settlement monies. HJR 12, directed at the President and our Congressional delegation, asks the Congress to enact such legislation and the President to sign it.