Eight Leading Organizations Urge Oklahoma Supreme Court to Protect Independence of Tobacco Settlement Endowment Trust

Oklahoma City, OK – Eight leading medical, public health and community organizations have filed an amicus brief with the Oklahoma Supreme Court in support of the Tobacco Settlement Endowment Trust (TSET) lawsuit filed last month challenging the constitutionality of a new state law (HB 2783) that undermines TSET’s independence and work to reduce tobacco use. The TSET fund, established in 2000 by Oklahoma voters, is a grant-making trust that receives the majority of Oklahoma’s Master Settlement Agreement (MSA) payments.

The brief was filed by the Oklahoma State Medical Association, Oklahoma Academy of Family Physicians, Oklahoma Chapter of the American Academy of Pediatrics, American Cancer Society Cancer Action Network, American Heart Association, American Lung Association, Americans for Nonsmokers’ Rights, and Campaign for Tobacco-Free Kids.

The brief urges the Court to declare HB 2783 to be unconstitutional. It argues that the law usurps the independence of the TSET Board of Directors, as established by the voters of Oklahoma and enshrined in the State Constitution, by permitting the appointing authorities to replace members of the board “at their pleasure.” This law alters the constitutionally mandated duration of the term of board members, converting them into political appointees and politicizing the board in defiance of the State Constitution and the will of the voters of Oklahoma.

“The impact of allowing appointing officials to dismiss and replace TSET Directors at their pleasure, in violation of the Constitution, will be profound, as illustrated not only by the significant public health and fiscal benefits of TSET’s policies over the last quarter of a century, but also by comparing Oklahoma’s allocation of MSA funds to other states,” the brief states.

According to the brief, the state Constitution provides that appointed members of the TSET Board of Directors shall serve seven-year terms of office. HB 2783 contradicts this, saying Board members “shall serve at the pleasure of their appointing authority.” The insertion of this discretionary power over the term of the Directors violates the constitutional provision that states unambiguously that Directors “shall” serve a seven-year term with no reference to the pleasure of their appointing authority.

The brief continues, “Allowing appointing officials to remove existing TSET Directors and replace the same with individuals likely to be more compliant to political whims will threaten what TSET has achieved and its future success. It is important to note that voters have twice rejected legislative attempts to modify TSET’s constitutionally mandated funding and expenditure formulas. The constitutionality of HB 2783 must be addressed now given the unassailable conclusion that TSET has functioned to date exactly as the voters intended and must continue to do so absent voters’ say. There can be little doubt that the entire purpose of providing TSET with constitutional protection was to allow it to most effectively prevent tobacco-related disease and death among Oklahomans, free of political pressure to divert MSA funds to other purposes.

“Precisely because the voters protected TSET in the Oklahoma Constitution, it has functioned to achieve its lifesaving mission with remarkable effectiveness that other states . . . cannot claim. HB 2783, if permitted to take effect, will no doubt have gravely adverse effects on TSET’s activities and programs.

TSET has consistently funded tobacco control efforts in Oklahoma and at higher levels than other states that signed the 1998 Master Settlement Agreement, with Oklahoma reaping substantial public health and fiscal benefits. While other states securitized or politicized their MSA funds and now use little or no MSA funds for tobacco-related purposes, Oklahoma ranks second nationally in funding tobacco prevention and cessation efforts at 85.9% of CDC-recommended levels.

Since its launch in 2003, the TSET-funded Oklahoma Tobacco Helpline has served over 600,000 individuals in all 77 counties. The Helpline was ranked #1 by the North American Quitline Consortium for reaching tobacco users in need of treatment. These efforts contributed to a 45% decrease in adult smoking prevalence in Oklahoma, falling from 28.6% at TSET’s inception to 15.8% in 2025.