Master Settlement Agreement

The “Master Settlement Agreement” was a multi-state tobacco settlement in 1998 which required tobacco companies to pay states $206 billion during the next 25 years and to abide by voluntary advertising and marketing restrictions aimed at reducing youth smoking. The tobacco revenues to California were split 50 percent to the state treasury and 50 percent to local governments. The money received by California State was securitized. Some communities have devoted their MSA money to tobacco control programs, but many more have spent the money on other community needs.

This table outlines the amount of MSA money each community will receive in the coming years:
Projected MSA Payments 2008-2045

Beginning in 2008, state and local elected officials will receive special, new “Strategic Contribution Fund” payments that the cigarette companies must pay to the states from 2008 to 2017. These substantial increases in annual MSA payments will start in April 2008 during the states’ fiscal year 2008. For California, the projected new funds available for 2008 to 2017 are expected to be approximately $40 million. Fifty percent of the money will go to the state of California (the money has already been securitized), and the other fifty percent will go to local counties and cities.

This chart outlines the amount of money each community is expected to receive from the bonus payments:
Projected MSA Bonus Payments 2008-2017
(Note: These bonus payments are already included in the totals for each county in the first table above.)

To learn more about the Master Settlement Agreement, you can visit the California Attorney General’s website.