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OCR Page 1 of 62Hatch-Feinstein Substitute Bill
Cessation and Research
States receiving funds must conduct anti-tobacco programs
consistent with smoking cessation guidelines issued by the
Agency for Health Care Policy and Research.
State anti-tobacco and cessation programs must be approved by the
Attorney General, Secretary of Treasury and Secretary of HHS.
Separate Title of Act includes detailed provisions to restrict
minors' access to tobacco products and reduce underage
smoking.
National anti-tobacco product consumption and tobacco product
cessation program to be established and implemented by
Secretary of HHS.
These programs are to be provided in part by state and community
action funded by block grants and in part by direct action by
HHS through the Agency for Health Care Policy and research.
Settlement of Cases and Liability
Settles as to participating manufacturers all state actions,
including political subdivisions, parens patriae actions,
punitive damages for past conduct and addiction/dependency
claims reserving the right of individuals to pursue individual
claims not based on addiction/dependency claims.
Precludes future class actions.
Requires payment by participating manufacturers of $398.3+ billion
($303,337,500,000 as compensatory damages and $95 billion as
punitive damages), plus a $10 billion initial payment.
Does not settle liability for future conduct including punitive
damages.
Limits payment of tobacco related judgments to $5.5 billion per
year; however, payment of any judgments by participating
manufacturers shall entitle them to a credit of 80% of such
payment against future payments under the Act. Any excess is
paid the following year.
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