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132-666: The settlement also dissolved the tobacco industry groups Tobacco Institute , the Center for Indoor Air Research , and the Council for Tobacco Research. In the MSA, the original participating manufacturers (OPM) agreed to pay a minimum of $ 206 billion over the first 25 years of the agreement. In September 1950, an article was published in the British Medical Journal linking smoking to lung cancer and heart disease. In 1954

264-604: A prenuptial agreement that kept most of her family's assets under her name; they kept their finances separate and filed separate income tax returns . McCain decided to leave the Navy. It was doubtful whether he would ever be promoted to the rank of full admiral , as he had poor annual physicals and had not been given a major sea command. His chances of being promoted to rear admiral were better, but he declined that prospect, as he had already made plans to run for Congress and said he could "do more good there." McCain retired from

396-597: A "personal choice" and a "small ritual". There was no mention of any health effects. An example pamphlet is Answers to the Most Asked Questions about Cigarettes . The institute also published newsletters aimed at physicians and dentists such as Tobacco and Health ( OCLC   48549026 ) and a newsletter Tobacco Observer ( OCLC   4556750 ) that seems to have been aimed at a general audience. Richard Kluger characterized Tobacco Observer as "attack literature." The Tobacco Institute published

528-714: A Baptist. Following in the footsteps of his father and grandfather, McCain entered the United States Naval Academy , where he was a friend and informal leader for many of his classmates and sometimes stood up for targets of bullying . He also fought as a lightweight boxer . He earned the nickname "John Wayne" "for his attitude and popularity with the opposite sex." McCain did well in academic subjects that interested him, such as literature and history, but studied only enough to pass subjects that gave him difficulty, such as mathematics. He came into conflict with higher-ranking personnel and did not always obey

660-468: A Model Statute attached to the MSA and enacted by all of the settling states. Most of the settling states have also voluntarily adopted "complementary" legislation to provide additional enforcement tools to compel compliance with the Model Statute. The original escrow statutes provided that NPM payments would remain in escrow for 25 years, but authorized an early release of any escrow amount which

792-588: A Nonparticipating Manufacturer (NPM). As an incentive to join the Master Settlement Agreement, the agreement provides that, if an SPM joined within ninety days following the Master Settlement Agreement's "Execution Date," that SPM is exempt ("exempt SPM") from making annual payments to the settling states unless the SPM increases its share of the national cigarette market beyond its 1998 market share, or beyond 125% of that SPM's 1997 market share. If

924-509: A Republican for an open seat in Arizona's 1st congressional district , which was being vacated by 30-year incumbent Republican John Jacob Rhodes . A newcomer to the state, McCain was termed a carpetbagger . McCain responded to a voter making that charge with what a Phoenix Gazette columnist later described as "the most devastating response to a potentially troublesome political issue I've ever heard": Listen, pal. I spent 22 years in

1056-701: A daughter, Sidney. The same year, he was a one-day champion on the game show Jeopardy ! McCain requested a combat assignment, and was assigned to the aircraft carrier USS  Forrestal flying A-4 Skyhawks . His combat duty began in mid-1967, when Forrestal was assigned to a bombing campaign, Operation Rolling Thunder , during the Vietnam War . Stationed in the Gulf of Tonkin , McCain and his fellow pilots became frustrated by micromanagement from Washington; he later wrote, "In all candor, we thought our civilian commanders were complete idiots who didn't have

1188-550: A fascinating history of a remarkable military family." McCain announced his candidacy for president on September 27, 1999, in Nashua, New Hampshire , saying he was staging "a fight to take our government back from the power brokers and special interests, and return it to the people and the noble cause of freedom it was created to serve". The frontrunner for the Republican nomination was Texas Governor George W. Bush , who had

1320-452: A few states. Because the originally enacted escrow statute refunded escrow funds to the extent those funds exceeded each state's "allocable share" of the national MSA payment, NPMs were able to obtain refunds of most of the monies they had paid into a state's escrow fund. To illustrate, if an NPM only sold cigarettes in Kansas in 2006, the Kansas escrow statute would require that NPM to pay into

1452-560: A half years, until his release on March 14, 1973, along with 108 other prisoners of war. His wartime injuries left him permanently incapable of raising his arms above his head. After the war, McCain, accompanied by his family, returned to the site on a few occasions. McCain was reunited with his family when he returned to the United States. His wife Carol had been severely injured by an automobile accident in December 1969. She

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1584-692: A large beer distributorship . They began dating, and he urged his wife, Carol, to grant him a divorce, which she did in February 1980; the uncontested divorce took effect in April 1980. The settlement included two houses and financial support for her ongoing medical treatments due to her 1969 car accident; they remained on good terms. McCain and Hensley were married on May 17, 1980, with Senators William Cohen and Gary Hart attending as groomsmen . McCain's children did not attend, and several years passed before they reconciled. John and Cindy McCain entered into

1716-494: A large number of lengthy "white papers". Scanned copies of many of these are available in the Legacy Tobacco Documents Library . Many of these papers rebutted scientific reports critical of tobacco. The Tobacco Institute's response to such a report was rapid: a rebuttal was published to the 1979 Surgeon General 's report on "Smoking and Health" one day before that report was issued. Another rebuttal

1848-489: A leg when he ejected from the aircraft, and nearly drowned after he parachuted into Trúc Bạch Lake . Some North Vietnamese pulled him ashore, then others crushed his shoulder with a rifle butt and bayoneted him. McCain was then transported to Hanoi's main Hỏa Lò Prison , nicknamed the "Hanoi Hilton". Although McCain was seriously wounded and injured, his captors refused to treat him. They beat and interrogated him and he

1980-484: A low level. Robert Hockett (first scientific director of Sugar Research Foundation , a sugar-equivalent of TIRC) became TIRCs associate scientific director. The Tobacco Institute collected intelligence on attitudes toward smoking, developed strategies, and lobbied legislators. Allan M. Brandt wrote, "The Tobacco Institute, on behalf of the companies, assembled an impressive record of derailing attempts to bring tobacco under any regulatory mandates whatsoever". By 1978

2112-463: A participating manufacturer, the excess shall be released from escrow and revert to such tobacco product manufacturer. Thus, an NPM still has to pay annually into a state's escrow fund an amount calculated by multiplying the number of cigarettes the NPM sells in that state during the year in question by the same per-cigarette amount for that year as set forth in the state's escrow statute. The NPM can obtain

2244-481: A payment equal to its "Allocable Share," a percentage of the funds held in escrow that has been agreed upon by the settling states and memorialized in the MSA. This "Allocable Share" (as measured by a percentage of the total funds in escrow) does not vary according to how many cigarettes are sold in a particular state in a given year. During the drafting of the MSA, the OPMs and the settling states contemplated that many of

2376-409: A refund to the extent those escrowed funds are greater than the amount that the NPM would have had to pay under the MSA for that same year, based upon that same number of cigarettes sold. By the middle of 2000, domestic NPMs and importers had begun to obtain greater market share. The NAAG noted that reductions in settlement payments which result from an overall reduction in cigarette consumption benefit

2508-485: A release from its Kansas escrow fund of more than 49 per cent of its full escrow payment. In other words, the original allocable share release provision created an unintended loophole: it only operated as intended if the NPMs distributed their products nationally. In that circumstance, the NPMs' total escrow obligations to all states with similar tobacco statutes approximately totaled the payments those NPMs would have made under

2640-630: A representative because he was interested in current events, was ready for a new challenge, and had developed political ambitions. Living in Phoenix, he went to work for his new father-in-law's large Anheuser-Busch beer distributorship. As vice president of public relations at the distributorship, he gained political support among the local business community, meeting powerful figures such as banker Charles Keating Jr. , real estate developer Fife Symington III (later Governor of Arizona) and newspaper publisher Darrow "Duke" Tully . In 1982, McCain ran as

2772-500: A reputation as a man who partied. He completed flight school in 1960, and became a naval pilot of ground-attack aircraft ; he was assigned to A-1 Skyraider squadrons aboard the aircraft carriers USS  Intrepid and USS  Enterprise in the Caribbean and Mediterranean Seas . McCain began as a sub-par flier who was at times careless and reckless; during the early to mid-1960s, two of his flight missions crashed, and

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2904-520: A reputation for independence during the 1990s. He took pride in challenging party leadership and establishment forces, becoming difficult to categorize politically. As a member of the 1991–1993 Senate Select Committee on POW/MIA Affairs , chaired by fellow Vietnam War veteran and Democrat, John Kerry , McCain investigated the Vietnam War POW/MIA issue , to determine the fate of U.S. service personnel listed as missing in action during

3036-479: A senator—and as a lifelong gambler with close ties to the gambling industry —McCain was one of the main authors of the 1988 Indian Gaming Regulatory Act , which codified rules regarding Native American gambling enterprises . McCain was also a strong supporter of the Gramm–Rudman legislation that enforced automatic spending cuts in the case of budget deficits. McCain soon gained national visibility. He delivered

3168-406: A settling state's allocated payment—that is, the portion of the annual MSA payment that a particular state receives in a given year—could be reduced by applying a non-participating manufacturers ("NPM") adjustment. That adjustment lowers a state's allocated share of the annual MSA payment if the OPMs lose market share to NPMs and if "a nationally recognized firm of economic consultants" determines that

3300-401: A successful example of "retail politics", and he used free media to compensate for his lack of funds. One reporter later recounted that, "McCain talked all day long with reporters on his Straight Talk Express bus; he talked so much that sometimes he said things that he shouldn't have, and that's why the media loved him." On February 1, 2000, he won New Hampshire's primary with 49 percent of

3432-411: A third mission collided with power lines, but he received no major injuries. His aviation skills improved over time, and he was seen as a good pilot, albeit one who tended to " push the envelope " in his flying. On July 3, 1965, McCain was 28 when he married Carol Shepp , who had worked as a runway model and secretary. McCain adopted her two young children, Douglas and Andrew. He and Carol then had

3564-820: A vocal critic of the Trump administration . While McCain opposed the Obama-era Affordable Care Act (ACA), he cast the deciding vote against the American Health Care Act of 2017 , which would have partially repealed the ACA. After being diagnosed with glioblastoma in 2017, he reduced his role in the Senate to focus on treatment, dying from the disease in 2018. John Sidney McCain III was born on August 29, 1936, at Coco Solo Naval Air Station in

3696-640: A well-received speech at the 1988 Republican National Convention , was mentioned by the press as a short list vice-presidential running mate for Republican nominee George H. W. Bush , and was named chairman of Veterans for Bush. McCain became embroiled in a scandal during the 1980s, as one of five United States senators comprising the so-called Keating Five . Between 1982 and 1987, McCain had received $ 112,000 in lawful political contributions from Charles Keating Jr. and his associates at Lincoln Savings and Loan Association , along with trips on Keating's jets that McCain belatedly repaid, in 1989. In 1987, McCain

3828-461: Is thus in the interest of the State to require that such manufacturers establish a reserve fund to guarantee a source of compensation and to prevent such manufacturers from deriving large, short-term profits and then becoming judgment-proof before liability may arise. In light of that, the model escrow statute requires an NPM selling cigarettes in [*1122] a given state to do one of two things: 1) join

3960-606: The British Doctors Study confirmed the suggestion, based on which the government issued advice that smoking and lung cancer rates were related. In 1964 the United States Surgeon General 's Report on Smoking and Health likewise began suggesting the relationship between smoking and cancer. By the mid-1950s, individuals in the United States began to sue the companies responsible for manufacturing and marketing cigarettes for damages related to

4092-785: The Civil Rights Restoration Act of 1987 , and voted to override President Reagan's veto of that legislation the following March. Senator McCain became a member of the Armed Services Committee , with which he had formerly done his Navy liaison work; he also joined the Commerce Committee and the Indian Affairs Committee . He continued to support the Native American agenda. As first a House member and then

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4224-637: The Clinton administration but opposed by the industry and most Republicans, the bill failed to gain cloture . In November 1998, McCain won re-election to a third Senate term in a landslide over his Democratic opponent, environmental lawyer Ed Ranger. In the February 1999 Senate trial following the impeachment of Bill Clinton , McCain voted to convict the president on both the perjury and obstruction of justice counts, saying Clinton had violated his sworn oath of office. In March 1999, McCain voted to approve

4356-587: The House Committee on Interior Affairs . Also that year, he opposed creation of a federal Martin Luther King Jr. Day , but admitted in 2008: "I was wrong and eventually realized that, in time to give full support [in 1990] for a state holiday in Arizona." At this point, McCain's politics were mainly in line with those of President Ronald Reagan ; this included support for Reaganomics , and he

4488-790: The NATO bombing campaign against the Federal Republic of Yugoslavia , saying that the ongoing genocide of the Kosovo War must be stopped and criticizing past Clinton administration inaction. Later in 1999, McCain shared the Profile in Courage Award with Feingold for their work in trying to enact their campaign finance reform, although the bill was still failing repeated attempts to gain cloture. In August 1999, McCain's memoir Faith of My Fathers , co-authored with Mark Salter ,

4620-643: The Panama Canal Zone , to naval officer John S. McCain Jr. and Roberta Wright McCain . He had an older sister, Sandy, and a younger brother, Joe . At that time, the Panama Canal was under U.S. control, and he was granted U.S. citizenship at the age of eleven months. His father and his paternal grandfather, John S. McCain Sr. , were also Naval Academy graduates and both became four-star admirals in

4752-597: The Senate Commerce Committee from 1997 to 2001 and 2003 to 2005, where he opposed pork barrel spending and earmarks . He belonged to the bipartisan " Gang of 14 ", which played a key role in alleviating a crisis over judicial nominations. McCain entered the race for the 2000 Republican presidential nomination , but lost a heated primary season contest to George W. Bush . He secured the 2008 Republican presidential nomination , beating fellow candidates Mitt Romney and Mike Huckabee , though he lost

4884-707: The Tobacco Master Settlement Agreement , the Tobacco Institute, the Center for Indoor Air Research , and the Council for Tobacco Research were dissolved. John McCain John Sidney McCain III (August 29, 1936 – August 25, 2018) was an American politician and United States Navy officer who served as a U.S. senator from Arizona from 1987 until his death in 2018. He previously served two terms in

5016-476: The U.S. House of Representatives and was the Republican Party 's nominee in the 2008 U.S. presidential election . McCain was a son of Admiral John S. McCain Jr. and grandson of Admiral John S. McCain Sr. He graduated from the U.S. Naval Academy in 1958 and received a commission in the U.S. Navy. McCain became a naval aviator and flew ground-attack aircraft from aircraft carriers . During

5148-694: The USS ; Oriskany , another carrier employed in Operation Rolling Thunder. There, he was awarded the Navy Commendation Medal and the Bronze Star Medal for missions flown over North Vietnam. McCain was taken prisoner of war on October 26, 1967. He was flying his 23rd bombing mission over North Vietnam when his A-4E Skyhawk was shot down by a missile over Hanoi . McCain fractured both arms and

5280-652: The United States Environmental Protection Agency 's 1993 report declaring tobacco smoke to be a Class A human carcinogen. In at least one case the Tobacco Institute paid for an article to be written and placed in a major national magazine while keeping their involvement secret. The article, "To Smoke or Not to Smoke—That is still the Question" by Stanley Frank was published in the January 1968 issue of True magazine. Frank

5412-788: The United States Navy . The McCain family moved with their father as he took various naval postings in the United States and in the Pacific. As a result, the younger McCain attended a total of about 20 schools. In 1951, the family settled in Northern Virginia , and McCain attended Episcopal High School , a private preparatory boarding school in Alexandria . He excelled at wrestling and graduated in 1954. He referred to himself as an Episcopalian as recently as June 2007, after which date he said he came to identify as

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5544-582: The Vietnam War , he almost died in the 1967 USS Forrestal fire . While on a bombing mission during Operation Rolling Thunder over Hanoi in October 1967, McCain was shot down, seriously injured, and captured by the North Vietnamese . He was a prisoner of war until 1973. McCain experienced episodes of torture and refused an out-of-sequence early release . He sustained wounds that left him with lifelong physical disabilities. McCain retired from

5676-429: The 14 states that grow flue-cured and burley tobacco used to manufacture cigarettes are eligible to receive payments from the trust fund. The states are Alabama, Florida, Georgia, Indiana, Kentucky, Maryland, Missouri, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia. At the time the Master Settlement Agreement became effective, the OPMs collectively controlled approximately 97% of

5808-533: The 1980s, tobacco companies claimed contributory negligence as they asserted adverse health effects were previously unknown or lacked substantial credibility. In the mid-1990s, more than 40 states commenced litigation against the tobacco industry, seeking monetary, equitable, and injunctive relief under various consumer-protection and antitrust laws. The first case was declared in May 1994 by Mississippi Attorney General Mike Moore . The general theory of these lawsuits

5940-565: The 46 settling states (including Kansas) have enacted these statutes. See K.S.A. § 50-6a04. The Kansas Attorney General is charged with enforcing the Escrow and Contraband Statutes. Tobacco Institute The Tobacco Institute, Inc. was a United States tobacco industry trade group , founded in 1958 by the American tobacco industry. It was dissolved in 1998 as part of the Tobacco Master Settlement Agreement . The Tobacco Institute

6072-659: The Allocable Share Release Repealer ("ASR Repealer"), a model statute which eliminated the ASR. In a memo dated September 12, 2003, Attorney General William H. Sorrell of Vermont, Chairman of the NAAG Tobacco Project, underscored the urgency of "all States taking steps to deal with the proliferation of NPM sales, including enactment of complementary legislation and allocable share legislation and consideration of other measures designed to serve

6204-722: The Attorneys General of the remaining 46 states, as well as of the District of Columbia, Puerto Rico, and the Virgin Islands, entered into the Master Settlement Agreement with the four largest manufacturers of cigarettes in the United States. ( Florida , Minnesota , Texas and Mississippi had already reached individual agreements with the tobacco industry.) The four manufacturers— Philip Morris USA , R. J. Reynolds Tobacco Company , Brown & Williamson Tobacco Corp. , and Lorillard Tobacco Company —are referred to in

6336-670: The Federal Tobacco Legislation Offset, the Litigating Releasing Parties Offset, and the offsets for claims over described in subsections XII(a)(4)(B) and XII(a)(8). The attorneys general did not have the authority to grant all this by themselves: the Global Settlement Agreement would require an act of Congress. Senator John McCain of Arizona carried the bill, which was much more aggressive than even

6468-447: The Kansas escrow fund $ .0167539 for each cigarette the NPM sold in that state. Pursuant to the refund provision in the originally enacted Kansas escrow statute, however, the NPM could obtain a refund of all but .8336712% of those payments. One commentator further explains that the calculations under the [originally enacted escrow] statutes were based on an assumption that a nonparticipating manufacturer sold cigarettes nationally. When this

6600-601: The MSA as the Original Participating Manufacturers (OPMs). This settlement process yielded two other national agreements: In the Smokeless Tobacco Master Settlement Agreement, which was executed at the same time as the Master Settlement Agreement, the leading manufacturer in the smokeless tobacco market (United States Tobacco Company, now known as U.S. Smokeless Tobacco Company ) settled with

6732-532: The MSA provide these other tobacco companies with incentives to join the agreement. One such incentive, called the NPM Adjustment, provides that the payments by the PMs to the settling states may be adjusted according to the "NPM Adjustment Percentage." According to this provision, if a nationally recognized firm of economic consultants determines that the PMs have lost market share as a result of compliance with

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6864-461: The MSA requires from OPMs and SPMs for sales which are not exempt. To the extent it differs, the OPMs pay slightly more than the SPMs, which pay slightly more than the NPMs. The escrow statute specifically requires that the NPM place into a qualified escrow fund by April 15 of the year following the year in question the following amounts (as such amounts are adjusted for inflation)— Each state receives

6996-481: The MSA was "a significant factor contributing to the Market Share Loss for the year in question." The NPM adjustment does not apply to any state that has enacted and has in "full force and effect" a "qualifying" or model escrow statute. All settling states have enacted qualifying statutes. The escrow statute is premised on the legislative finding that, in light of the MSA settling the states' claims against

7128-432: The MSA within 90 days of its execution, the annual payments are determined by the number of cigarettes an SPM sells beyond the "grandfathered" volume—calculated as the higher of either the individual SPM's market share in 1998 (the year the MSA was executed) or 125% of the SPM's market share in 1997. If an SPM's sales volume or market share declines below the grandfathered amount, then it is not required to make any payments to

7260-401: The MSA, agreeing to "become a participating manufacturer (as that term is defined in section II(jj) of the [MSA]) and generally perform its financial obligations under the [MSA]," or 2) make similar annual payments into a state "liability reserve" escrow account, the funds of which can only be used to pay a judgment or settlement on a claim against the NPM. (After 25 years, any amount remaining in

7392-414: The MSA, the PMs' required payments to the settling states will be reduced to account for the loss. The NPM Adjustment therefore gives the settling states an incentive to protect the market dominance of the PMs, because [*551] otherwise the settling states themselves will receive less funds. The MSA also provides a safe harbor from the NPM Adjustment if a settling state "diligently enforces" the provision of

7524-448: The MSA. If an NPM concentrated its sales in a few state with low allocable share percentages, however, the NPM could obtain a refund of much of its escrow payments. Because the Kansas percentage was so low—roughly 0.8 per cent—NPMs concentrated their sales within Kansas and a few other states to receive immediate escrow refunds from those states. Rather than selling cigarettes nationally, several NPMs instead concentrated their sales in just

7656-490: The MSA. In addition, the congressional proposal would have mandated Food and Drug Administration oversight and imposed federal advertising restrictions. It also would have granted immunity from state prosecutions; eliminated punitive damages in individual tort suits; and prohibited the use of class actions, or other joinder or aggregation devices without the defendant's consent, assuring that only individual actions could be brought. The congressional proposal called for payments to

7788-616: The National Association of Attorneys General and the Majors jointly petitioned Congress for a global resolution. On June 20, 1997, Mississippi Attorney General Michael Moore and a group of other attorneys general announced the details of the settlement. The settlement included a payment by the companies of $ 365.5 billion, agreement to possible Food and Drug Administration regulation under certain circumstances, and stronger warning labels and restrictions on advertising. In exchange

7920-559: The Navy as a captain in 1981 and moved to Arizona. In 1982, McCain was elected to the House of Representatives, where he served two terms. Four years later, he was elected to the Senate, where he served six terms. While generally adhering to conservative principles, McCain also gained a reputation as a "maverick" for his willingness to break from his party on certain issues, including LGBT rights , gun regulations , and campaign finance reform where his stances were more moderate than those of

8052-566: The Navy as a captain on April 1, 1981. He was designated as disabled and awarded a disability pension . Upon leaving the military, he moved to Arizona. His numerous military decorations and awards include: the Silver Star , two Legion of Merits , Distinguished Flying Cross , three Bronze Star Medals, two Purple Hearts , two Navy and Marine Corps Commendation Medals , and the Prisoner of War Medal . McCain set his sights on becoming

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8184-512: The Navy's liaison to the U.S. Senate beginning in 1977. In retrospect, he said that this represented his "real entry into the world of politics, and the beginning of my second career as a public servant." His key behind-the-scenes role gained congressional financing for a new supercarrier against the wishes of the Carter administration . In April 1979, McCain met Cindy Lou Hensley , a teacher from Phoenix, Arizona , whose father had founded

8316-413: The Navy. My father was in the Navy. My grandfather was in the Navy. We in the military service tend to move a lot. We have to live in all parts of the country, all parts of the world. I wish I could have had the luxury, like you, of growing up and living and spending my entire life in a nice place like the First District of Arizona, but I was doing other things. As a matter of fact, when I think about it now,

8448-407: The North Vietnamese a propaganda victory. From late 1969, treatment of McCain and many of the other POWs became more tolerable, while McCain continued to resist the camp authorities. McCain and other prisoners cheered the U.S. "Christmas Bombing" campaign of December 1972, viewing it as a forceful measure to push North Vietnam to terms. McCain was a prisoner of war in North Vietnam for five and

8580-417: The OPMs have agreed to pay the settling states each year. Those annual amounts are subject to a number of adjustments. The OPMs each pay a portion of the total annual payment according to each OPM's "Relative Market Share" for the preceding year. For the SPMs (Subsequent Participating Manufacturers), the payments are determined by their relative market share as compared to other SPMs. For the SPMs that joined

8712-404: The PMs are required to annually contribute to the states varies according to several factors. All payments are based primarily on the number of cigarettes sold. For the OPMs (Original Participating Manufacturers), the payments are determined in accordance with their relative market share as of 1997. The payment amount of a particular OPM is also dictated by the "Volume Adjustment," which compares

8844-423: The SPM's national cigarette sales for a given year. In addition to its annual payment obligations, in order [**9] to join the Master Settlement Agreement now, a non-exempt SPM must, "within a reasonable time after signing the" Master Settlement Agreement, pay the amount it would have been obligated to pay under the Master Settlement Agreement during the time between the Master Settlement Agreement's effective date and

8976-400: The Subsequent Participating Manufacturers (SPMs), are bound by the Master Settlement Agreement's restrictions and must make payments to the settling states as set forth in the Master Settlement Agreement. Collectively, the OPMs and the SPMs are referred to as the Participating Manufacturers (PMs). Any tobacco company choosing not to participate in the Master Settlement Agreement is referred to as

9108-411: The Tobacco Institute had 70 lobbyists, and Senator Ted Kennedy said in 1979, "Dollar for dollar they're probably the most effective lobby on Capitol Hill". The Tobacco Institute hired the Roper Organization in 1978 to survey public attitudes on environmental tobacco smoke . Among its findings were "Nearly six out of ten believe that smoking is hazardous to the non-smoker's health, up sharply over

9240-539: The U.S. from a Bangladeshi orphanage run by Mother Teresa . The McCains decided to adopt her and named her Bridget. McCain's Senate career began in January 1987, after he defeated his Democratic opponent, former state legislator Richard Kimball , by 20 percentage points in the 1986 election. McCain succeeded Arizona native, conservative icon, and the 1964 Republican presidential nominee Barry Goldwater upon Goldwater's retirement as U.S. senator from Arizona for 30 years. In January 1988, McCain voted in favor of

9372-477: The Vietnam War. The committee's unanimous report stated there was "no compelling evidence that proves that any American remains alive in captivity in Southeast Asia." Helped by McCain's efforts, in 1995 the U.S. normalized diplomatic relations with Vietnam. McCain was vilified by some POW/MIA activists who, despite the committee's unanimous report, believed many Americans were still held against their will in Southeast Asia. From January 1993 until his death, McCain

9504-472: The annual MSA payment among themselves according to each state's preset allocable share, rather than according to the volume of sales made in a particular state in a given year. An NPM's payments into a state's escrow fund, on the other hand, were dependent on the number of cigarettes that the NPM sold in that state in a given year. Nevertheless, the originally enacted escrow statute based any refund of those escrowed funds payments on that state's allocable share of

9636-473: The brutality of American politics". A variety of interest groups, which McCain had challenged in the past, ran negative ads. Bush borrowed McCain's earlier language of reform, and declined to dissociate himself from a veterans activist who accused McCain (in Bush's presence) of having "abandoned the veterans" on POW/MIA and Agent Orange issues. Incensed, McCain ran ads accusing Bush of lying and comparing

9768-487: The companies would be freed from class-action suits and litigation costs would be capped. This proposed congressional remedy (1997 National Settlement Proposal (NSP), a.k.a. the "June 20, 1997 Proposal") for the cigarette tobacco problem resembled the eventual Multistate Settlement Agreement (MSA), but with important differences. For example, although the congressional proposal would have earmarked one-third of all funds to combat teenage smoking, no such restrictions appear in

9900-485: The corrupting influence of large political contributions—from corporations, labor unions, other organizations, and wealthy individuals—and he made this his signature issue. Starting in 1994, he worked with Democratic Wisconsin Senator Russ Feingold on campaign finance reform ; their McCain–Feingold bill attempted to put limits on " soft money ". The efforts of McCain and Feingold were opposed by some of

10032-622: The date on which the SPM joined the agreement. The addition of the Subsequent Participating Manufacturers meant that nearly all of the cigarette producers in the domestic market had signed the Multistate Settlement Agreement. Their addition was significant. The Majors allegedly feared that any cigarette manufacturer left out of a settlement (Non-Participating Manufacturers or NPMs) would be free to expand market share or could enter

10164-453: The denominator in the calculation is the total OPM market share, not the total OPM and SPM market share." Furthermore, the parties agree that the amount the SPMs pay per cigarette is roughly the same as the per-cigarette amount that the OPMs pay under the MSA. To the extent the amount differs, the OPMs pay slightly more than the SPMs on a per cigarette basis. The payments from all the PMs are deposited into an escrow account until disbursement to

10296-438: The domestic market for cigarettes. In addition to these "originally settling parties" (OSPs), the Master Settlement Agreement permits other tobacco companies to join the settlement; a list of these "subsequently settling parties" (SSPs) is maintained by the National Association of Attorneys General. Since 1998, approximately 41 additional tobacco companies have joined the Master Settlement Agreement. These companies, referred to as

10428-491: The effects of smoking. In the forty years through 1994, over 800 private claims were brought against tobacco companies in state courts across the country. The individuals asserted claims for negligent manufacture, negligent advertising, fraud, and violation of various state consumer protection statutes. The tobacco companies were successful against these lawsuits. Only two plaintiffs ever prevailed, and both of those decisions were reversed on appeal. As scientific evidence mounted in

10560-419: The escrow account is returned to the NPM.) An NPM's annual escrow payments in a particular state are calculated by multiplying a per-cigarette amount, established by the state's legislature and set forth in the statute, by the number of cigarettes the NPM sold in that state in the year for which payment is being made. The parties agree that this per-cigarette amount is roughly equivalent to the per-cigarette amount

10692-437: The exempt SPM's market share in a given year increases beyond those relevant historic limits, the MSA requires that the exempt SPM make annual payments to the settling states, similar to those made by the OPMs, but based only upon the SPM's sales representing the exempt SPM's market share increase. SPMs joining the Master Settlement Agreement after this ninety-day exempt period must, instead, make annual payments based upon all of

10824-542: The four states recovering a total of over $ 35 billion. Four states (Mississippi, Florida, Texas and Minnesota) settled with the OPMs before the MSA. The OPMs pay those four states (the "previously settled states") 17 per cent of the MSA per-cigarette payment amount for each cigarette sold in any state. Thus, the OPMs pay the settling and previously settled states 104.55 per cent of the per-cigarette amount for each cigarette sold. In 2005, OPM payments totaled about 2.2 cents per cigarette or 44 cents per box. On November 23, 1998,

10956-559: The general election to Barack Obama . McCain subsequently adopted more orthodox conservative stances and attitudes and largely opposed actions of the Obama administration , especially with regard to foreign policy matters. In 2015, he became Chairman of the Senate Armed Services Committee . He refused to support then-Republican presidential nominee Donald Trump in the 2016 presidential election and later became

11088-469: The global settlement. However, in the spring of 1998, Congress rejected both the proposed settlement and an alternative proposal submitted by McCain. While the proposed legislation was being discussed in Congress, some individual states began settling their litigation against the tobacco industry. On July 2, 1997, Mississippi became the first. Over the next year, Florida, Texas, and Minnesota followed, with

11220-455: The governor to Bill Clinton , which Bush said was "about as low a blow as you can give in a Republican primary". An anonymous smear campaign began against McCain, delivered by push polls , faxes, e-mails, flyers, and audience plants . The smears claimed that McCain had fathered a black child out of wedlock (the McCains' dark-skinned daughter was adopted from Bangladesh), that his wife Cindy

11352-483: The interests of the States in avoiding reductions in tobacco settlement payments." He stressed that "NPM sales anywhere in the country hurt all States," that NPM sales in any state reduce payments to every other State," and that "[a]ll States have an interest in reducing NPM sales in every State." The "Allocable Share Release Repeal" ("ASR Repeal") revised the originally enacted escrow statute's refund calculation to remove

11484-529: The jurisdictions who signed the MSA, plus Minnesota and Mississippi. The next year, the major cigarette manufacturers settled with the tobacco-growing states to compensate tobacco growers for losses they were expected to suffer due to the higher cigarette prices resulting from the earlier settlements. Called the "Phase II" settlement, this agreement created the National Tobacco Growers' Settlement Trust Fund. Tobacco growers and quota holders in

11616-492: The last four years. More than two-thirds of non-smokers believe it, nearly half of all smokers believe it. This we see as the most dangerous development to the viability of the tobacco industry that has yet occurred." A 1985 meeting of the executive committee of the Tobacco Institute outlined plans to broaden the indoor air quality issue. In December 1987 the Tobacco Institute's executive committee discussed creating an industry-based Center for Indoor Air Research, intended to broaden

11748-561: The least notion of what it took to win the war." On July 29, 1967, McCain was a lieutenant commander when he was near the center of the USS Forrestal fire . He escaped from his burning jet and was trying to help another pilot escape when a bomb exploded; McCain was struck in the legs and chest by fragments. The ensuing fire killed 134 sailors. With the Forrestal out of commission, McCain volunteered for assignment with

11880-409: The major cigarette manufacturers, [i]t would be contrary to the policy of the State if tobacco product manufacturers who determine not to enter into such a settlement could use a resulting cost advantage to derive large, short-term profits in the years before liability may arise without ensuring that the State will have an eventual source of recovery from them if they are proven to have acted culpably. It

12012-464: The market with lower prices, drastically altering the Majors' future profits and their ability to increase prices to pay for the settlement. The Original Participating Manufacturers (OPMs) agreed to several broad categories of conditions: A section on enforcement gave jurisdiction to individual state courts to implement and enforce the term, and established a state enforcement fund ($ 50 million one-time payment). The participating manufacturers also paid

12144-489: The moneyed interests targeted, by incumbents in both parties, by those who felt spending limits impinged on free political speech and might be unconstitutional as well, and by those who wanted to counterbalance the power of what they saw as media bias . Despite sympathetic coverage in the media, initial versions of the McCain–Feingold Act were filibustered and never came to a vote. The term " maverick Republican"

12276-424: The national MSA payment. This refund provision, then, assumed an NPM would sell its cigarettes nationally. If an NPM made the bulk of its sales in a few states, however, it could obtain a refund of those escrow payments in excess of what it would have paid each of those States had it been an SPM. For example, an NPM which made 50 per cent of its sales in Kansas (which has a relatively low allocable share) would obtain

12408-513: The number of cigarettes sold in each payment year to the number of cigarettes sold in 1997. If the number of cigarettes sold by an OPM in a given year is less than the number it sold in 1997, the Volume Adjustment allows that OPM to reduce its payment to the settling states. In other words, a reduction in the amount of cigarettes sold by the OPMs results in the settling states receiving less money. The MSA sets forth specific amounts that

12540-748: The outskirts of Hanoi. In December 1967, McCain was placed in a cell with two other Americans, who did not expect him to live more than a week. In March 1968, McCain was placed in solitary confinement , where he remained for two years. In mid-1968, his father John S. McCain Jr. was named commander of all U.S. forces in the Vietnam theater, and the North Vietnamese offered McCain early release because they wanted to appear merciful for propaganda purposes, and also to show other POWs that elite prisoners were willing to be treated preferentially. McCain refused repatriation unless every man taken in before him

12672-476: The party's base. McCain was investigated and largely exonerated in a political influence scandal of the 1980s as one of the Keating Five ; he then made regulating the financing of political campaigns one of his signature concerns, which eventually resulted in passage of the McCain–Feingold Act in 2002. He was also known for his work in the 1990s to restore diplomatic relations with Vietnam . McCain chaired

12804-414: The place I lived longest in my life was Hanoi. McCain won a highly contested primary election with the assistance of local political endorsements, his Washington connections, and money that his wife lent to his campaign. He then easily won the general election in the heavily Republican district. In 1983, McCain was elected to lead the incoming group of Republican representatives, and was assigned to

12936-538: The political and financial support of most of the party establishment, whereas McCain was supported by many moderate Republicans and some conservative Republicans. McCain focused on the New Hampshire primary , where his message appealed to independents. He traveled on a campaign bus called the Straight Talk Express. He held many town hall meetings , answering every question voters asked, in

13068-545: The powerful Senate Commerce Committee; he was criticized for accepting funds from corporations and businesses under the committee's purview, but in response said the small contributions he received were not part of the big-money nature of the campaign finance problem. McCain took on the tobacco industry in 1998, proposing legislation to increase cigarette taxes to fund anti-smoking campaigns, discourage teenage smokers, increase money for health research studies, and help states pay for smoking-related health care costs. Supported by

13200-628: The question of indoor air pollution beyond tobacco smoke. The CIAR was created in March 1988 by Philip Morris , R. J. Reynolds , and Lorillard . In 1990 the Tobacco Institute opposed federal regulations banning smoking on domestic airline flights . The Tobacco Institute ran advertisements and issued pamphlets for general readers. One advertisement consisted of facing two-page advertisements titled "A word to smokers (about nonsmokers and anti-smokers)" and "A word to nonsmokers (about smokers)." The ad encourages tolerance of smokers by depicting smoking as

13332-593: The reference to the enacting state's "allocable share" of the annual MSA payments. HN2The amended statute, therefore, now provides that an NPM will be entitled to a refund[t]o the extent that a tobacco product manufacturer establishes that the amount it was required to place into escrow, based on units sold in the state ... in a particular year, was greater than the [MSA] payments, as determined pursuant to section IX(i) of that agreement including, after final determination of all adjustments, that such manufacturer would have been required to make based on such units sold had it been

13464-419: The rules. "He collected demerits the way some people collect stamps." His class rank (894 of 899) was not indicative of his intelligence nor his IQ , which had been tested to be 128 and 133. McCain graduated in 1958. McCain began his early military career when he was commissioned as an ensign , and started two and a half years of training at Pensacola to become a naval aviator. While there, he earned

13596-427: The settling states' motivation was different from that of the OPMs, these states also were concerned about the effect of the tobacco companies that refused to join the MSA. The settling states worried that the NPMs would be able to regulate their sales so as to stay afloat financially while at the same time being effectively judgment-proof. As a result of these twin concerns, the OPMs and the settling states sought to have

13728-509: The settling states. The MSA includes a model escrow (or qualifying) act and provides strong incentives for settling states to adopt it. "[A] Qualifying Statute ... is one that effectively and fully neutralizes the cost disadvantages that the Participating Manufacturers experience vis-a-vis Nonparticipating Manufacturers within the state." The MSA encouraged settling states to adopt the model escrow act by providing that

13860-464: The settling states. SPMs that failed to join the MSA within 90 days of its execution do not receive the benefit of any grandfathered amount. Both exempt and non-exempt SPMs' annual payment obligations under the MSA are "calculated on the basis of the percentage of the four original participating manufacturers' total domestic market share represented by the SPM[s'] domestic market share. ... In other words,

13992-462: The smaller tobacco companies would choose not to join the MSA. This failure to join posed a potential problem for both the OPMs and the settling states. The OPMs worried that the NPMs, both because they would not be bound by the advertising and other restrictions in the MSA and because they would not be required to make payments to the settling states, would be able to charge lower prices for their cigarettes and thus increase their market share. Although

14124-480: The state unless the manufacturer becomes a PM under the MSA or is an NPM which makes all escrow payments required by the Escrow Statute. The model Contraband Statute imposes a criminal penalty on wholesalers who sell cigarettes made by NPMs who are not duly registered in the state and making full escrow payments. By the middle of 2002, only seven settling states had enacted Contraband Statutes. As of 2007, 44 of

14256-562: The states because health care costs imposed by each cigarette exceed the settlement payments. On the other hand, when reductions in settlement payments occur because NPM sales displace PM sales, the states receive no benefits if the NPMs do not make escrow payments. Therefore, in late 2000, the NAAG drafted a model Contraband Statute to ensure that NPMs made escrow payments on cigarettes. See PX 116. The model Contraband Statute provides that excise tax stamping agents may not stamp cigarettes for sale in

14388-701: The states of $ 368.5 billion over 25 years. By contrast, assuming that the Majors would maintain their market share, the MSA provides baseline payments of about $ 200 billion over 25 years. This baseline payment is subject to the Inflation Adjustment, the Volume Adjustment, the Previously Settled States Reduction, the Non-Settling States Reduction, the NPM Adjustment, the offset for miscalculated or disputed payments described in subsection XI(i),

14520-663: The states' Attorney Fees. Generally, the participating manufacturers agreed not to "take any action, directly or indirectly, to target Youth within any Settling State in the advertising, promotion or marketing of Tobacco Products, or take any action the primary purpose of which is to initiate, maintain or increase the incidence of Youth smoking within any Settling State." (§III(a)) The restrictions specified included bans on outdoor billboards , advertising on transit vehicles, as well as restrictions on sports marketing, event sponsorships and promotional products. States were to receive over $ 206 billion over 25 years: The amount of money that

14652-415: The total payments that such manufacturer would have been required to make in that year under the [MSA] ... had it been a participating manufacturer. This "Allocable Share Release Provision" was intended to create substantial equivalence between the escrow obligation of NPMs under the escrow statutes and the amounts the NPMs would have paid if they had they joined the MSA. The settling states agreed to divide

14784-425: The treatment of smoking-induced illnesses. Importantly, the defenses of personal responsibility that were so effective for the tobacco industry in suits by private individuals were inapplicable to the causes of action alleged by the states. Faced with the prospect of defending multiple actions nationwide, the Majors sought a congressional remedy, primarily in the form of a national legislative settlement. In June 1997,

14916-669: The troops too late; in the interim, the 1983 Beirut barracks bombing killed hundreds. McCain won re-election to the House easily in 1984, and gained a spot on the House Foreign Affairs Committee . In 1985, he made his first return trip to Vietnam, and also traveled to Chile where he met with its military junta ruler, General Augusto Pinochet . In 1984, McCain and Cindy had their first child, daughter Meghan , followed two years later by son John IV and in 1988 by son James. In 1991, Cindy brought an abandoned three-month-old girl needing medical treatment to

15048-554: The vote to Bush's 30 percent. The Bush campaign and the Republican establishment feared that a McCain victory in the crucial South Carolina primary might give his campaign unstoppable momentum. The Arizona Republic wrote that the McCain–Bush primary contest in South Carolina "has entered national political lore as a low-water mark in presidential campaigns", while The New York Times called it "a painful symbol of

15180-668: Was Chairman of the International Republican Institute , an organization that supports the emergence of political democracy worldwide. In 1993 and 1994, McCain voted to confirm President Clinton's nominees to the U.S. Supreme Court , Ruth Bader Ginsburg and Stephen Breyer , whom he considered qualified. He later explained that "under our Constitution, it is the president's call to make." McCain had also voted to confirm nominees of presidents Ronald Reagan and George H. W. Bush, including Robert Bork and Clarence Thomas . McCain attacked what he saw as

15312-699: Was active on Indian Affairs bills. He supported most aspects of the foreign policy of the Reagan administration , including its hardline stance against the Soviet Union and policy towards Central American conflicts , such as backing the Contras in Nicaragua. McCain opposed keeping U.S. Marines deployed in Lebanon , citing unattainable objectives, and subsequently criticized President Reagan for pulling out

15444-491: Was again on the short list of possible vice-presidential picks, this time for Republican nominee Bob Dole . While Dole instead selected Jack Kemp , he chose McCain to deliver the nominating speech for him in the presidential roll call vote at the 1996 Republican National Convention . The following year, Time magazine named McCain as one of the "25 Most Influential People in America". In 1997, McCain became chairman of

15576-586: Was also released. Such early release was prohibited by the POWs' interpretation of the military Code of Conduct , which states in Article III: "I will accept neither parole nor special favors from the enemy." To prevent the enemy from using prisoners for propaganda, officers were to agree to be released in the order in which they were captured. Beginning in August 1968, McCain was subjected to severe torture. He

15708-862: Was bound and beaten every two hours, and he was suffering from heat exhaustion and dysentery . Further injuries brought McCain to "the point of suicide", but his preparations were interrupted by guards. Eventually, McCain made an anti-U.S. propaganda "confession". He had always felt that his statement was dishonorable, but as he later wrote: "I had learned what we all learned over there: every man has his breaking point. I had reached mine." Many U.S. POWs were tortured and maltreated to extract "confessions" and propaganda statements; virtually all eventually yielded something. McCain received two to three beatings weekly because of his continued refusal to sign additional statements. McCain refused to meet various anti-war groups seeking peace in Hanoi, wanting to give neither them nor

15840-735: Was founded in 1958 as a trade association by cigarette manufacturers, who funded it proportionally to each company's sales. It was initially to supplement the work of the Tobacco Industry Research Committee (TIRC), which later became the Council for Tobacco Research . The TIRC work had been limited to attacking scientific studies that put tobacco in a bad light, and the Tobacco Institute had a broader mission to put out good news about tobacco, especially economic news. It also attacked scientific studies, although more by casting doubt on them rather than by rebutting them directly. It also lobbied Congress, although initially at

15972-607: Was frequently applied to McCain, and he also used it himself. In 1993, McCain opposed military operations in Somalia . Another target of his was pork barrel spending by Congress, and he actively supported the Line Item Veto Act of 1996 , which gave the president power to veto individual spending items but was ruled unconstitutional by the Supreme Court in 1998. In the 1996 presidential election , McCain

16104-401: Was given medical care only when the North Vietnamese discovered that his father was an admiral. His status as a prisoner of war (POW) made the front pages of major American newspapers. McCain spent six weeks in the hospital, where he received marginal care. He had lost 50 pounds (23 kg), he was in a chest cast, and his gray hair had turned white. McCain was sent to a different camp on

16236-408: Was greater than the allocable share which that state would have received if the NPM had been an SPM. The originally enacted escrow statutes permitted an NPM to obtain a refund of the amount the NPM paid into the escrow fund to the extent that a tobacco product manufacturer establishes that the amount it was required to place into escrow in a particular year was greater than the State's allocable share of

16368-511: Was issued to James Repace and Alfred Lowrey's report "A Quantitative Estimate of Nonsmokers' Lung Cancer Risk." A press release from the Tobacco Institute attacked the 1986 Surgeon General's report on second-hand smoke, saying that the Surgeon General had distorted the evidence and that Health and Human Services was suppressing contrary scientific viewpoints. There was also a longer rebuttal paper. The Tobacco Institute criticized

16500-425: Was one of the five senators whom Keating contacted to prevent the government's seizure of Lincoln, and McCain met twice with federal regulators to discuss the government's investigation of Lincoln. In 1999, McCain said: "The appearance of it was wrong. It's a wrong appearance when a group of senators appear in a meeting with a group of regulators, because it conveys the impression of undue and improper influence. And it

16632-532: Was paid $ 500 by Brown & Williamson to write the article, and the Tobacco Institute paid $ 500,000 to Rosser Reeves to publicize the article and distribute one million copies of it. The story of the Tobacco Institute's involvement was uncovered and published by Consumer Reports . By the 1990s the Tobacco Institute had lost its preeminent role in tobacco lobbying to the market leader, Philip Morris , but continued to gather intelligence on anti-smoking sentiment and legislative actions. In 1998, as part of

16764-606: Was published; a reviewer observed that its appearance "seems to have been timed to the unfolding Presidential campaign." The most successful of his writings, it received positive reviews, became a bestseller, and was later made into a TV film . The book traces McCain's family background and childhood, covers his time at Annapolis and his service before and during the Vietnam War, concluding with his release from captivity in 1973. According to one reviewer, it describes "the kind of challenges that most of us can barely imagine. It's

16896-464: Was reinstated. In 1976, he became Commanding Officer of a training squadron stationed in Florida. He improved the unit's flight readiness and safety records, and won the squadron its first-ever Meritorious Unit Commendation . During this period in Florida, he had extramarital affairs, and his marriage began to falter, about which he later stated: "The blame was entirely mine". McCain served as

17028-549: Was that the cigarettes produced by the tobacco industry contributed to health problems among the population, which in turn resulted in significant costs to the states' public health systems. As Moore declared, "'[The] lawsuit is premised on a simple notion: you caused the health crisis; you pay for it.'" The states alleged a wide range of deceptive and fraudulent practices by the tobacco companies over decades of sales. Other states soon followed. The state lawsuits sought recovery for Medicaid and other public health expenses incurred in

17160-417: Was the case, the statutes functioned as intended, permitting the NPM to obtain a refund of excess amounts placed in escrow in each state. However, when an NPM followed a regional sales strategy, as several did, the original escrow statutes allowed the NPM to obtain a refund that was much larger than intended. To close this loophole, in late 2002, the National Association of Attorneys General ("NAAG") introduced

17292-621: Was the wrong thing to do." In the end, McCain was cleared by the Senate Ethics Committee of acting improperly or violating any law or Senate rule, but was mildly rebuked for exercising "poor judgment". In his 1992 re-election bid, the Keating Five affair was not a major issue, and he won handily, gaining 56 percent of the vote to defeat Democratic community and civil rights activist Claire Sargent and independent former governor, Evan Mecham . McCain developed

17424-545: Was then four inches shorter, in a wheelchair or on crutches, and substantially heavier than when he had last seen her. As a returned POW, he became a celebrity of sorts. McCain underwent treatment for his injuries that included months of physical therapy . He attended the National War College at Fort McNair in Washington, D.C., during 1973–1974. He was rehabilitated by late 1974, and his flight status

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