September 13, 2012
In July, an arbitration panel began hearing tobacco companies’ complaints that some states — including Kansas — have been less than diligent in enforcing the terms of the 1998 master settlement agreement. If the panel agrees with the tobacco companies, Kansas likely will have to refund at least $9.6 million or, in a worst-case scenario, all $48.3 million paid to the state in 2003. Under current arbitration, a state will not have to give back more than it received in 2003, but similar refunds are possible in subsequent years as well.
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