Tobacco funds coming soon to Utah programs

Utah health programs that enforce tobacco laws will receive over $337,000 from a major tobacco company.

A settlement with Vibo, which does business as General Tobacco, was reached Thursday. Vibo will make an immediate payment of $78 million to 46 states and a full payment over the next 10 years of $1.7 billion.

The $337,603 will be distributed to the Utah Department of Health for the Children's Health Insurance Program and tobacco control efforts, Huntsman Cancer Institute, drug courts, Attorney General's Office for tobacco law enforcement efforts and a constitutional trust fund.

"Turnaround is fair play," Attorney General Mark Shurtleff said in a statement. "Since thousands of Utahns get sick and die from tobacco, it make(s) sense to make sure tobacco companies pick up part of the tab for Utah's health care costs."

General Tobacco is the largest cigarette seller in Utah that is not covered by the Master Settlement Agreement. Bronco, GT One, Silver and Champion are some of the cigarette brands the manufacturer sells.

The Master Settlement Agreement binds manufacturers who participate to restrict advertising, promotion and marketing of cigarettes, including bans on targeting youth, outdoor advertising and distribution of any merchandise advertising a cigarette brand. Since the agreement took effect between 46 states and the major tobacco companies in November 1998, national youth smoking rates have dropped by more than 25 percent. Overall smoking has declined nearly 20 percent.

Vibo represented the largest tobacco product manufacturer remaining outside of the settlement. The manufacturer is also the exclusive importer of cigarettes from Protobaco of Bogota, Colombia. Protobaco is now bound to sell all of its cigarettes in the U.S. through Vibo in accordance with the agreement.