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• Anti-smoking groups call for legislative committees to give back tobacco money 

Legislative campaign committees should give back nearly $100,000 in contributions they have received so far in 2002 from the tobacco industry, a coalition of anti-smoking groups said Tuesday.

Evidence is strong that cigarette companies "engaged in a long-running conspiracy to deceive and defraud the American public," according to Russell Sciandra of the Center for Tobacco Free New York, and their political donations should be treated like those from Enron, WorldCom and other discredited companies.

Candidates have routinely begun to return the donations of companies caught up in accounting scandals, as well as contributions from companies or individuals involved in criminal activities.

In a letter to state political leaders and the chairmen of the campaign committees in the Legislature, the groups said it is "unconscionable" for elected officials and political committees to be accepting tobacco industry cash.

According to contribution reports at the state Board of Elections, Philip Morris has made $39,000 in contributions to legislative election committees, R.J. Reynolds $22,000, Brown & Williamson $20,750 and Lorillard $17,500.

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• Haynes: Tobacco taxes needed  

Light up another cigarette. California's counting on you.

The state is so addicted to tobacco-tax revenue, a Riverside lawmaker says, that California can't afford to discourage smoking -- or let anyone else do so.

On Thursday, Senate Republican Whip Ray Haynes unveiled a resolution that would discourage California from supporting anti-smoking efforts, such as the Great American Smokeout held each November.

"I've never smoked in my life and I'm truly sorry about that, because . . . I'm not paying taxes for programs for kids that save their lives," Haynes jokingly said. "This is sort of a tongue-in-cheek reference to all of the absurd things being said in the Capitol right now" about the state budget.

However, anti-smoking groups didn't see much humor in Haynes' Senate Concurrent Resolution 97, which he vowed to introduce when the Senate reconvenes on Aug. 5. . .

"If tobacco use is stopped for one day, the state could lose $3 million in revenue," it says. That's enough money to pay for health insurance for 3,000 children for a year, the resolution says.

Haynes said he wanted to turn Democrats' logic on its head.

"Three thousand kids losing their health care, in the eyes of my left-wing friends in the Legislature, means kids are going to die everywhere," he said. "So how can we stop smoking if kids are going to die?"

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Three thousand kids losing their health care, in the eyes of my left-wing friends in the Legislature, means kids are going to die everywhere [if cigarette tax revenue ends due to smokers quitting]. So how can we stop smoking if kids are going to die?
California Senate Republican Whip Ray Haynes, who has unveiled a resolution (SCR 97) that would discourage California from supporting anti-smoking efforts. GARRETT, R.

• Peace, health advocates tangle over tobacco 

A verbal donnybrook erupted Tuesday when public health advocates accused a state senator and others of disguising a major tobacco industry bill as part of a new state budget.

Lisa Rea, a lobbyist for the American Heart Association, was describing the legislation as "a last-minute move ... written by the tobacco industry" when an incensed Sen. Steve Peace jumped to his feet and interrupted her.

"You're a liar," Peace shouted. "I'm not going to sit here and listen to it. ... You're a liar, Lisa." . .

The outburst and ugly confrontation that followed was unusual because Democrats like Peace typically have been aligned with public health groups as California enacted some of the nation's toughest anti-smoking laws.

But Rea noted that Dan Howle, Peace's former chief of staff and an erstwhile tobacco industry lobbyist, was behind the original push for the legislation. Peace confirmed that, saying Howle was uniquely qualified to negotiate with his former employers. . .

But health advocates believe that by creating a statewide licensing system for tobacco retailers, the bill contains "implied pre-emption" of local efforts to curb tobacco sales to minors.

Pre-emption of local governments is a top tobacco industry priority. . . "We're frankly tired of trying to make a bad bill better," the lung association's Knepprath said. "I have not seen any anti-pre-emption language that satisfies our concerns."

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• State files to move lawsuit to federal court 

The state of Oklahoma on Friday exercised its right to move a lawsuit challenging new smoking rules in restaurants from state court into federal court, the state's attorney said.

Gary Gardenhire, general counsel for the Health Department, said he filed papers to change the venue from Creek County District Court to U.S. District Court in Tulsa because the lawsuit deals with federal questions.

The motion means a hearing on a restraining order scheduled in Creek County on Monday, the day the rules take effect, is likely canceled, Gardenhire and the plaintiffs' attorney said.

"We'll probably show up anyway, but I doubt (the judge) will take any action," said Michael Morgan, who's representing Sapulpa plaintiffs Freddie's Barbecue and Steakhouse and the Veterans of Foreign Wars Post 1320. . .

Gardenhire said the case deals with two federal questions.

One raised by the plaintiffs accuses the government of taking restaurateurs property without due process, he said. The state's defense will also involve the Americans with Disabilities Act, a federal law giving rights to the disabled, Gardenhire said.

"That sounds like an imaginative approach," Morgan said. "We'll have to look at it, but it's hard to imagine there's a federal issue in this."

The lawsuit claims that Keating and the department lacked the authority to enact the rules and that they violate state law governing smoking in public places.

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• Tobacco industry spent $2.7 million on lobbying between 1999-2001 

The tobacco industry spent more than $2.6 million lobbying Wisconsin's Legislature between 1999 and 2001, a study released Tuesday by a government watchdog group found.

The report from Common Cause in Wisconsin was based on documents filed with the state Ethics Board.

Common Cause Executive Director Jay Heck said it was intended to " document how big tobacco has undermined smoking prevention programs and impeded efforts to enforce existing laws designed to protect young people from smoking."

The report showed Philip Morris spent $867, 908 during that time, the most among tobacco companies on lobbying. The company did not immediately return a telephone message left Tuesday by The Associated Press.

Assembly Majority Leader Steven Foti, R-Oconomowoc, criticized the report for characterizing groups such as convenience stores as tobacco interests.

He said he receives campaign contributions from such businesses because they are located in his district.

" They don' t care about the tobacco issue, " he said.

Legislators are preparing to use all of the $1.3 billion from the one-time sale of its share of annual payments from the 1998 tobacco settlement to help plug the state' s $1.1 billion budget hole.

Heck said the fact that legislators aren' t considering an increase in the cigarette tax shows the effect of tobacco industry lobbying.

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• Cigarette discount ban gets 2d look 

Fearful that Massachusetts retailers and smokers would be hurt if a state-imposed prohibition on retail cigarette discounts takes effect next week, the administration of Acting Governor Jane M. Swift yesterday started backing away from the ban.

The surprising reversal came as Philip Morris, the nation's largest cigarette manufacturer, said it was preparing to eliminate its retail price promotions in Massachusetts for at least the next two months, a move that was expected to boost the price of a pack of Marlboros and other brands by 60 cents each.

Kevin Sullivan, Swift's secretary of administration and finance, said he wanted to take a second look at the directive on retail cigarette discounts issued by the Massachusetts Revenue Department. The directive had been in the works for months and was scheduled to take effect Monday.

The fallout from the retail discount ban, coupled with a proposed 75-cents-a-pack increase in the cigarette excise tax passed by the House and Senate, could have made Massachusetts cigarettes the most expensive in the country.

Some retailers, who rely heavily on cigarette sales and the foot traffic they generate, have warned that the rapid runup in prices would spur consumers to buy cigarettes in other states or on the Internet.

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• I-791 foes smoke out Big Tobacco 

Opponents of an initiative to strengthen the state's spending limit are trying to scare off potential supporters by tying them to one of the measure's biggest backers: tobacco giant Philip Morris.

Butt Out of Washington, a coalition of labor unions, education groups and health-care organizations, ran full-page newspaper ads this week painting Initiative 791 as a sinister attempt by Big Tobacco to attract young smokers.

"They've found a new way to target our children," the ads proclaimed.

Andy Grow, a paid spokesman for the opposition campaign, said the ads were aimed mainly at businesses and groups that might consider donating money to the I-791 campaign, which is struggling to get enough voter signatures to qualify for the fall ballot.

"We're trying to help people understand that if they get in bed with Philip Morris, they are going to be painted with that same brush," Grow said.

I-791 supporters called the ads a deceptive attack funded mostly by groups with a vested interest in keeping state spending unfettered. . .

Filed in March, I-791 would restore the two-thirds vote of the Legislature for state tax increases and reserve spending. . .

Filled with slogans such as "One more pack of big tobacco lies," the ads say Philip Morris is bankrolling I-791 — and urging businesses to help out — in an effort to hold down taxes and boost corporate profits.

Philip Morris spokesman Dave Tovar said the company, which has a variety of subsidiaries in Washington, is worried how tax increases would affect all its business interests, not just tobacco. But he denied trying to recruit other businesses to support the initiative.

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• California to cut tobacco-control funding 

California is set to shut off nearly $61 million in funding for state tobacco prevention and education programs as a way for Gov. Gray Davis to balance the state's projected $24 billion deficit next year...

Heath officials said available funding would be redirected to "projects addressing 18-24-year-olds" because it has the "highest smoking prevalence" of any age group. The department also has elected to cut funding to advanced youth tobacco control projects and funding for projects aimed at curtailing smoking in the entertainment industry...

Ken August, a spokesman for the Department of Health's Tobacco Control Section, said no Prop. 99 money "will be redirected" to other agencies. Rather, he said the state had a "surplus" of unspent Prop. 99 money that would be utilized to offset Davis' proposed budget cuts. And, he said, Davis' proposal included a new 50-cents-per-pack tax hike on each pack of cigarettes. . .

Heath officials said available funding would be redirected to "projects addressing 18-24-year-olds" because it has the "highest smoking prevalence" of any age group. The department also has elected to cut funding to advanced youth tobacco control projects and funding for projects aimed at curtailing smoking in the entertainment industry.

Officials decided to leave funding intact for law-enforcement control projects, however, as well as all three "Tobacco Control Through the Arts" pilot programs.

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• Deal on restaurant smoking bill reached 

New York's restaurants will be required to segregate smokers or ban smoking under a deal consummated Friday between the Assembly and Senate, according to a bill sponsor.

The "Clean Indoor Air Act,'' sponsored by Sen. Charles Fuschillo, R-Merrick, and Assemblyman Alexander Grannis, D-Manhattan, comes after negotiations the past week that would change a version passed earlier in the Assembly.

The measure, expected to be discussed next week by the Senate, restricts smoking in all restaurants, starting in a year with those having 35 seats or more. It will make New York eateries essentially smoke-free within 18 months of Gov. George Pataki's signing the measure.

Fuschillo's office was unable to confirm the deal and the senator was unavailable for comment.

Pataki has not spoken on the issue in recent months, and his office said only that if the bill passes, the governor will look at it.

The secondhand smoke ban has been supported by Senate Majority Leader Joseph Bruno, R-Brunswick. . .

Fuschillo agreed to go along with the bill as long as he allowed smaller restaurants to have an extra six months to prepare for the new restrictions.

Another concession to the Assembly's bill is that the new deal allows for restaurants with bars comprising up to 25 percent of the dining seats to permit bar room smoking. However, a wall or a six-foot space would have to separate the bar area and the dining room.

"It's a modest but significant step forward from protecting people from secondhand smoke. We hope the Legislature will pass it and send it to the governor promptly,'' said Russell Sciandra, director of the Center for a Tobacco-Free New York.

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• Mayors come to Madison  

Activists representing a variety of causes also are planning to use the meeting as a springboard for public forums and demonstrations on such issues as economic justice and corporate influence on public policy.

Cities for People!, a coalition of local groups, has scheduled a day of workshops on Saturday at the Madison Labor Temple featuring Santa Monica Mayor Mike Feinstein and Wisconsin Democratic activist Ed Garvey. . .

Organizers are still working to meet the $1 million private fund-raising goal Bauman set to cover entertainment costs for the mayors meeting. Major sponsors include Philip Morris, Madison Gas and Electric, American Family Insurance and Alliant Energy, among others. . .

With a $10,000 annual fee, such corporations as the Coca-Cola Co., Philip Morris, DuPont and Waste Management Inc. gain entrance to meetings of the U.S. Conference of Mayors and are provided periodic policy briefings during the year, among other perks.

Local activists are incensed that businesses can buy access to the mayors meeting while the general public is shut out. . .

"All these reform initiatives have not been in the best interest of the people," Miranda said. "They have been in the best interest of corporations that have taken advantage of the fact that our elected officials have surrendered the people's control of our resources." . .

"I think there's an awful lot of lack of understanding and an incredible readiness to claim that the mayors have sold out," she said. "Believe me, we haven't."

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• Mayors' Conference: Protest Set For This Afternoon 

The U.S. Conference of Mayors is now just two days away, and the first of what are being billed as "nonviolent direct actions" by the Creative People's Resistance is scheduled for this afternoon.

Madison police told News 3 the CPR demonstrators are the ones they're most concerned about.

The group's spokeswoman said that creativity is emphasized in trying to get their messages heard -- something she says is necessary when you don't have an invitation to the actual conference.

"(The mayors) are answerable to the people in their cities -- and not the corporations who court them," said "Dawn" of CPR, who did not give her last name.

To put the conference together and save tax dollars, Madison's mayor Sue Bauman has relied on $750,000 in donations from dozens of companies, including cigarette maker Phillip Morris, News 3 reported.

"Yes, the sponsors get to go to the event -- if you pay for food and beverages for somebody, I think you're entitled to be there, and share in that," Bauman said. "Yeah, you might have an opportunity to talk to a mayor that you might not have the opportunity to otherwise."

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• Bay State cigarette prices may become highest in US 

Massachusetts smokers, already bracing for a 75-cents-a-pack tax increase on cigarettes that is making its way through the Legislature, may be in for another price shock this summer.

Starting July 1, the state intends to prohibit cigarette manufacturers from offering retail discounts that in recent months have averaged about 60 cents a pack. Officials say the combination of the tax increase and the discount prohibition could make Massachusetts cigarettes the most expensive in the country, boosting their current price by 30 to 35 percent.

''It's a huge price increase for consumers,'' said Thomas Ryan, a spokesman for Philip Morris, the manufacturer of Marlboros. . .

Retailers such as CVS are able to charge less than the official minimum retail price because they receive payments called buy-downs from cigarette manufacturers that allow them to cut their retail price. Kalell said the average buy-down has increased from 10 cents to 20 cents a pack several years ago to an average of about 60 cents today.

The buy-downs apparently vary from retailer to retailer and differ in duration. But because most manufacturers match each others' buy-downs, the result is that cigarettes are almost always being discounted.

''I began to ask myself why I make these calculations when no one pays attention,'' Kalell said.

He and his superiors at the Revenue Department eventually concluded the buy-downs were violations of the fair pricing law for cigarettes. They are also reviewing the legality of special coupon offers, as well as buy-one-get-one-free promotions.

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• House sends cigarette tax hike to Ryan 

Lawmakers voted today to raise cigarette taxes by 40 cents a pack, a key piece of the plan to erase a gaping deficit and balance the state budget.

The Illinois House approved the tax increase 82-33. It had already passed the Senate, so it now goes to Gov. George Ryan.

Legislators could vote later in the day on raising casino taxes and borrowing about $750 million that would be paid back with the proceeds from a lawsuit against the tobacco industry.

The cigarette increase would bring the total tax to 98 cents a pack and generate about $230 million a year. About $50 million would be used to help school districts replace old, outdated buildings.

Critics say it would drive some smokers across the border to states with cheaper cigarettes.

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• Spain Plans Tough Measures Against Smoking 

The Spanish government is planning tough measures to curb smoking, press reports said Friday.

The measures would prohibit smoking in public places such as schools, hospitals or buses and strictly limit it in offices, restaurants and hotels.

"It would be difficult to smoke practically anywhere "except at home", DPA quoted the daily **** El Mundo **** as saying.

The plan would also ban the advertising of cigarettes, their sale separately or to people aged under 18 years, and gradually abolish cigarette vending machines.

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• Tobacco lobbyists prowl capital halls in every state 

Tobacco lobbyists are cajoling legislators in all 50 states, trying to crush efforts to raise cigarette taxes and require fire-safe cigarettes, the nonpartisan, nonprofit Center for Public Integrity has found.

Four tobacco companies were among the top 10 most active corporations or special-interest groups lobbying state capitals from Annapolis, Md., to Sacramento, Calif., in 2000, the study said. . .

"We own the biggest tobacco company, the biggest food company and the second-largest beer company," said Peggy Roberts, a Philip Morris spokeswoman. "When you couple that with the thousands of employees we have across the country, we think it's important to make our views known on issues that have an impact on our employees and our businesses and our shareholders."

R.J. Reynolds, which ranked No. 10 by employing lobbyists in 41 states, lobbied against proposed smoking bans in bars and rules requiring cigarettes to be kept behind store counters in 2000, said Jan Smith, a Reynolds spokeswoman. . .

Lobbyists are frequently more powerful in state legislatures than in Congress, the center says, because of the shift in legislative responsibility and power from Washington to the state capitals.

State legislatures, for example, decide whether Medicaid, the federal-state insurance for the poor, should cover stop-smoking programs. Seventeen states provide no Medicaid coverage for smoking-cessation programs.

Legislatures also decide how to spend money received in the $206 billion settlement between the states and the cigarette manufacturers. The money was intended for smoking-prevention programs but is being used in many states for legislative pet projects.

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