Fighting for tobacco control
funding has been a long-term effort
1998: The Master Settlement Agreement
In 1998, the Attorneys General of 46 states signed the Tobacco Master Settlement Agreement (MSA) with four of the largest tobacco companies in the United States: Brown & Williamson, Lorillard, Philip Morris, and R.J. Reynolds.
The purpose of the MSA was to settle lawsuits by states to recover costs associated with the treatment of smoking-related illnesses. Four states – Florida, Minnesota, Texas, and Mississippi – settled their tobacco cases separately from the MSA states. The MSA authorizes additional tobacco product manufacturers to participate in the agreement. As of October 2018, there are more than 50 participating manufacturers who are bound by the terms of the MSA.
As part of the MSA it is estimated participating manufacturers will pay $246 billion over the first 25 years to the settling states, including Nevada. The MSA also imposes restrictions on the advertising, promotion, and marketing or packaging of cigarettes including a ban on targeting youth.
1999: Spending MSA Dollars
In 1999, the Nevada Legislature passed two bills, Assembly Bill 474 and Senate Bill 496, that determined how the tobacco settlement proceeds would be distributed. These bills required approximately 60% of Nevada’s annual MSA payment to go toward health care programs and the remaining 40% to be used for Nevada’s Millennium Scholarship program.
The U.S. Centers for Disease Control and Prevention (CDC) has developed estimates of what it would cost each state to adequately fund a comprehensive tobacco control effort. These estimates make it very clear that each state could run a strong statewide tobacco prevention program with only a fraction of the settlement payments they receive each year from the tobacco companies.
More than two decades after the passage of the 1998 state tobacco settlement, Nevada ranks 47th in the nation in funding programs to stop kids from smoking and help smokers quit, according to a national report.
Nevada currently spends $950,000 per year on tobacco prevention and control programs using the MSA payments it receives, which is just 3% of the $32 million recommended by the CDC.
1998
Tobacco Master Settlement Agreement (MSA) is signed between major tobacco companies and 46 U.S. states and the District of Columbia, including Nevada.
1999
The Fund for a Healthy Nevada (FHN) is created under Nevada Revised Statute 439.620 using a portion of the state’s share of the MSA.
2000
The State of Nevada initiates use of FHN funding for tobacco control. Nevada dedicates approximately $2 million of FHN funds yearly to tobacco control, nearly matching federal funding granted by the CDC to the state at the time.
2003
Nevada increases its state tax on cigarettes from 35 to 80 cents per pack.
2006
The Nevada Clean Indoor Air Act (NCIAA) is passed by a majority of Nevada voters, taking effect on December 8, 2006. Its passage provides for major changes to Nevada’s smoking laws to protect children and adults from secondhand smoke in most public places and allows for local jurisdictions to enact even stronger smoking laws.
2009
The federal tax on cigarettes increases from 39 cents to $1.01 per pack. At the same time, NTCSC is successful in preventing a repeal of the NCIAA. Senate Bill 340 is drafted and supported by state and local health authorities identifying Local Lead Agencies (LLA) for tobacco programming and FHN
funding beginning July 2010.
2010
Southern Nevada Health District is awarded $14.6 million for tobacco control through the Communities Putting Prevention to Work initiative.
2013
NTCSC efforts advocating for restoration of FHN funds dedicated to tobacco control are successful, resulting in reinstatement of FHN funds for tobacco control at half the previous amount, $1 million annually.
2015
Nevada increases its state tax on cigarettes from 80 cents to $1.80 per pack. Nevada also passed a law prohibiting a person from selling, distributing, or offering to sell e-liquid containing nicotine for electronic smoking devices to any child under the age of 18. Youth smoking prevalence in Nevada drops to its lowest recorded level at just 7.5 percent.
2016
Adult smoking prevalence in Nevada drops to its lowest recorded level at just 16.5 percent.
2019
The Nevada legislature passes Senate Bill 263 (SB263) requiring vapor and nicotine products to be taxed and regulated as other tobacco products (30% tax of wholesale price) and establishes penalties for selling to minors. The NCIAA was also amended to include e-cigarettes and vape products.
2020
The Nevada Youth Vaping Campaign, a result of a $2.5 million appropriation, is launched statewide to prevent initiation and promote cessation of e-cigarettes and vaping products among youth and young adults.
2021
Adult smoking prevalence in Nevada falls to 14.2%, but more than 24% of Nevada high school students report using electronic vapor products.
2022
Nevada receives $14.4 million dollars from a $438.5 million multistate settlement with JUUL Labs, Inc. over its youth-targeted marketing and sales practices. Nevada allocates $0 from this settlement for youth vaping prevention, education, and nicotine cessation programs.
2023
The funding for the Nevada Youth Vaping Prevention Campaign is terminated, resulting in loss of $2.5 million per year for vaping prevention programs.
2023
NTCSC, through the Nevada Cancer Coalition, is awarded funding to support a yearlong tobacco retail purchase campaign, assisting the state in
educating tobacco retailers about selling tobacco and vapor products to those under 21.
2025
The Nevada Legislature passes Assembly Bill 76, further weakening the Nevada Clean Indoor Air Act by allowing smoking in licensed cannabis consumption lounges.
2025
The funding local tobacco control programs receive from the State of Nevada from Master Settlement Agreement dollars (FHN) is cut by 20%.
1998
Tobacco Master Settlement Agreement (MSA) is signed between major tobacco companies and 46 U.S. states and the District of Columbia, including Nevada.
1999
The Fund for a Healthy Nevada (FHN) is created under Nevada Revised Statute 439.620 using a portion of the state’s share of the MSA.
2000
The State of Nevada initiates use of FHN funding for tobacco control. Nevada dedicates approximately $2 million of FHN funds yearly to tobacco control, nearly matching federal funding granted by the CDC to the state at the time.
2003
Nevada increases its state tax on cigarettes from 35 to 80 cents per pack.
2006
The Nevada Clean Indoor Air Act (NCIAA) is passed by a majority of Nevada voters, taking effect on December 8, 2006. Its passage provides for major changes to Nevada’s smoking laws to protect children and adults from secondhand smoke in most public places and allows for local jurisdictions to enact even stronger smoking laws.
2009
The federal tax on cigarettes increases from 39 cents to $1.01 per pack. At the same time, NTCSC is successful in preventing a repeal of the NCIAA. Senate Bill 340 is drafted and supported by state and local health authorities identifying Local Lead Agencies (LLA) for tobacco programming and FHN
funding beginning July 2010.
2010
Southern Nevada Health District is awarded $14.6 million for tobacco control through the Communities Putting Prevention to Work initiative.
2013
NTCSC efforts advocating for restoration of FHN funds dedicated to tobacco control are successful, resulting in reinstatement of FHN funds for tobacco control at half the previous amount, $1 million annually.
2015
Nevada increases its state tax on cigarettes from 80 cents to $1.80 per pack. Nevada also passed a law prohibiting a person from selling, distributing, or offering to sell e-liquid containing nicotine for electronic smoking devices to any child under the age of 18. Youth smoking prevalence in Nevada drops to its lowest recorded level at just 7.5 percent.
2016
Adult smoking prevalence in Nevada drops to its lowest recorded level at just 16.5 percent.
2019
The Nevada legislature passes Senate Bill 263 (SB263) requiring vapor and nicotine products to be taxed and regulated as other tobacco products (30% tax of wholesale price) and establishes penalties for selling to minors. The NCIAA was also amended to include e-cigarettes and vape products.
2020
The Nevada Youth Vaping Campaign, a result of a $2.5 million appropriation, is launched statewide to prevent initiation and promote cessation of e-cigarettes and vaping products among youth and young adults.
2021
Adult smoking prevalence in Nevada falls to 14.2%, but more than 24% of Nevada high school students report using electronic vapor products.
2022
Nevada receives $14.4 million dollars from a $438.5 million multistate settlement with JUUL Labs, Inc. over its youth-targeted marketing and sales practices. Nevada allocates $0 from this settlement for youth vaping prevention, education, and nicotine cessation programs.
2023
The funding for the Nevada Youth Vaping Prevention Campaign is terminated, resulting in loss of $2.5 million per year for vaping prevention programs.
2023
NTCSC, through the Nevada Cancer Coalition, is awarded funding to support a yearlong tobacco retail purchase campaign, assisting the state in
educating tobacco retailers about selling tobacco and vapor products to those under 21.
2025
The Nevada Legislature passes Assembly Bill 76, further weakening the Nevada Clean Indoor Air Act by allowing smoking in licensed cannabis consumption lounges.
2025
The funding local tobacco control programs receive from the State of Nevada from Master Settlement Agreement dollars (FHN) is cut by 20%.
What will happen if tobacco prevention funding is cut?
Tobacco use is the single most preventable cause of death and disease in our society. If Nevada does not invest in efforts to prevent and control tobacco use, Nevadans will experience not only increased smoking rates but also increased health complications, reduced quality of life, and increased medical costs associated with the chronic diseases that result from tobacco use.
Studies have found that once tobacco prevention funding is eliminated or reduced significantly, smoking rates begin to increase quickly, leading to a reversal of positive tobacco trends. A reduction of tobacco prevention funding could also result in job loss within Nevada’s public health workforce, as it did just a decade ago when funding was eliminated.
The best way for a state to reduce tobacco use and its harms and costs is to establish an adequately funded comprehensive tobacco prevention program that employs a variety of proven approaches, including smoke-free laws and periodic tobacco tax increases. Published studies provide evidence of the effectiveness of comprehensive tobacco control programs and tobacco control policies, in both reducing harms associated with tobacco use and increasing quit rates among smokers.
