Pa. Attorney General Continues Fight For Tobacco Settlement Money

By Tony Romeo

HARRISBURG, Pa. (CBS) - Pennsylvania's attorney general is continuing the fight against an arbitration panel's decision that could cost the state millions of dollars in tobacco settlement money.

Adrian King, first deputy attorney general, says the decision could cost Pennsylvania more than $170 million in tobacco settlement funds. He says the arbitration panel determined that in the year 2003, Pennsylvania did not adequately enforce laws related to collecting taxes and other payments from tobacco companies that did not participate in the settlement.

For one thing, King notes that Ohio had a similar tax collection rate to Pennsylvania, and was found in compliance.

Furthermore, "The arbitration panel made a very large issue with respect to roll your own tobacco, yet for the ruling for Oregon, it said that roll your own was not an issue at all."

King says the attorney general has now filed a motion in Philadelphia Common Pleas Court, arguing that the arbitration panel's decision was "irrational."