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UTAH FINALLY GETS BIG TOBACCO BUCKS
The State of Utah is seven million dollars richer. The Attorney General’s Office handed a $6,850,549 check to the State Treasurer on Friday from the national tobacco settlement.
The money was being held in a trust account set up by a federal judge to cover claims from outside attorneys in Utah’s tobacco lawsuit. The funds became available after state lawmakers approved a settlement with outside counsel during the special session on June 21.
"This makes it possible for all of Utah’s tobacco money to start going into state coffers, " said Attorney General Mark Shurtleff. "It also means a lot more money will go to warn teenagers about the dangers of smoking." The Health Department will receive up to two million additional dollars because of a provision in Utah law that earmarked the money for anti-smoking programs – provided it was received by June 30.
The Senate overwhelmingly approved the payoff resolution but the House came up one vote short to release the funds immediately. Unless legislators provided a two-thirds majority the money would have been held up for 60 days, too late to get extra cash for smoking prevention and it would mean less interest for the state. Representatives voted a second time and the resolution passed 53-17.
Utah became the 16th state to join a multi-state lawsuit against the tobacco companies on September 30, 1996. Two years later a settlement was reached that would give Utah nearly one billion dollars by 2025.
The outside attorneys on the tobacco case filed a lien against Utah stating they were entitled to 25 percent of the settlement - approximately $250 million. Chief Deputy Raymond Hintze of the Attorney General’s Office negotiated a settlement with the law firm for $9,950,000.
"This was a reasonable resolution to a dispute involving a very complex contract," said Hintze. "I’m glad Utah will finally get the rest of its money."
After the latest deposit, Utah has received nearly $56 million from tobacco companies so far.
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