Arizona Attorney General Terry Goddard 2010 Annual Report

Public Advocacy Division (continued)
Containment System (“AHC-
CCS”). The Office’s Tobacco
Enforcement Unit protects Arizona’s
MSA payments by diligently
enforcing Arizona’s qualifying
statute. During FY 2010, the
unit worked at both the state
and national level to ensure that
Arizona will continue to receive
its full allocated MSA payment.
These efforts included:
(1) Participating in efforts to
recover defaulted MSA payments
and defend the state’s ability
to enforce the MSA’s payment
provisions; (2) Diligently enforcing
the qualifying statute and
(3) Monitoring the state’s efforts
to receive the maximum recovery
in bankruptcy proceedings
initiated by PMs.
With the exception of a single
NPM which filed for bankruptcy
protection, the unit obtained full
compliance for sales made in
Arizona during the year.
Enforcement of public health
provisions: The unit has also
been charged with enforcing
the public health provisions
of the MSA, especially when
violations of those provisions
have a direct impact on Arizona
citizens. The public health
provisions contained in the MSA
place restrictions on the PMs’
marketing practices in an effort
to protect public health.
In April of 2010, Arizona, along
with 39 other states, reached
an agreement with Valero
Retail Holdings Inc., and Valero
Marketing and Supply Company,
based in San Antonio,
Texas. Valero is a large national
oil company that owns 1,000
convenience store outlets and
has nearly 4,000 franchises.
Valero has 92 company-owned
or franchise outlets in Arizona.
Under the Assurance of Voluntary
Compliance, Valero will
instruct clerks to check identification
for all tobacco customers
who appear to be under age
27, use security videotapes to
monitor compliance by clerks,
eliminate self-service tobacco
displays and vending machines,
perform random compliance
checks involving youthful
tobacco purchasers, and implement
other safeguards. Valero
also agreed to change the
terms of its franchise contracts
so that tobacco sales to minors
must be reported to Valero, and
illegal sales could result in loss
of the franchise.
• Arizona “Counter Strike”
Youth Tobacco Program:
In partnership with the
Arizona Department of Health
Services, the Attorney General’s
Office has developed
and maintained the Arizona
“Counter Strike” Youth
Tobacco Program. Its goal
is to reduce youth access
to tobacco in retail outlets
by systematically monitoring
retailer compliance with
state laws which prohibit the
sale of tobacco products to
minors. The program also
serves to encourage local
enforcement of these laws.
During FY 2010, the program
conducted 2,561 undercover
inspections throughout
Arizona in both rural and
urban communities. With
the assistance of local law
enforcement agencies, 305
criminal citations were issued
to retail clerks who violated
Arizona law by selling tobacco
products to minors during
undercover inspections.
This fiscal year, the program
reported a three percent
The Office held two poster contests during the year. The Meth Poster Contest was
co-sponsored by the Arizona Meth Project. The “Why Should I Care about Elder Abuse
Poster Contest was co-sponsored by the Arizona Elder Abuse Coalition and the Area
Agencies on Aging.
Arizona Attorney General Terry Goddard • 2010 Annual Report
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