Tommy Thompson and Tobacco: Full Report
Tommy Thompson and Tobacco: Full Report
Presented by:
SmokeFree Pennsylvania, Wisconsin Initiative on Smoking and Health (WISH) and Tobacco BBS
January 16, 2001
The document that follows is in three parts.
Social Relations with Philip Morris Executives
: Thompson took three international vacations at the expense of Philip Morris, going to Europe, southern Africa, and Australia. In Australia he went scuba diving with PM lobbyist John C. Lenzi. Lenzi reported lobbying activity for that time period to the Wisconsin Ethics Board. Lenzi had just worked to kill a local control bill (1995 Assembly Bill 516) sponsored by a conservative Republican which had about half of the legislature as cosigners.Philip Morris executive Andrew Whist has invited Thompson to many other social engagements.
Campaign Finance
: According to the Wisconsin Democracy Campaign, a nonpartisan group that works on campaign finance issues, Philip Morris executives are the leading contributors of large contributions to Thompson. Whist is the leading contributor among Philip Morris executives.Smokefree Issues
: In 1983 as minority leader, Thompson tried to defeat Sen. Fred Risser’s (D-Madison) Clean Indoor Air Act. This legislation took several sessions to pass. In February 1984, he offered an amendment, which was defeated, in which all restaurants and not just those with 50% or more alcohol would be exempted. Then he offered an amendment which apparently would have exempted virtually all businesses. Finally, after the measure passed, he asked for a reconsideration. In the mid 90’s comprehensive smokefree legislation offered by Sen. Risser floundered without his support. Additionally, he vetoed a ban on smoking in the Milwaukee Brewers new park even though virtually all other major league teams were already smokefree. He was concerned because the naming rights were going to Philip Morris operating company. The stadium is named Miller Park. In this last session a bill that only banned smoking in the capitol and its immediate vicinity finally passed. Thompson did sign it.Excise Taxes
. In 1991 Thompson vetoed a 10 cent per pack increase which he viewed as excessive. In 1997, he only supported a 5 cent increase when Philip Morris/Miller executive Paul Lucas objected to a double digit increase. Some assembly Republicans were willing to go along with a 16 cent increase. The health groups were pushing to raise the tax from 44 cents to $1.00. He later signed a 15 cent increase.Preemption
: In 1988 (1987 Wisconsin Act 336), he signed poorly drafted language that required local ordinances to be in strict conformity with a bad state law, Wi 134.66(5). The next session he vetoed budget language that would have allowed local communities to ban the free distribution of cigarettes, saying that such measures should not be in the budget but should be stand alone measures. In contrast, this session his staff and other government officials worked with Philip Morris lobbyists Scott Stenger and Kelly McDowell as well as Wisconsin Grocers lobbyist Brandon Scholz to preempt the ability to enforce the law that makes it illegal to sell tobacco to minors. He then appointed Scholz to the Wisconsin Tobacco Control Board (WTCB).Youth Smoking Issues and Data
: During the 1987-1988 session signed legislation which preempted local communities from passing stricter laws. So, for example, local communities cannot pass legislation which would ban cigarette vending machines. In 1999 his people worked with the tobacco industry to eliminate all enforcement of the youth access law. This is in spite of the fact that high ranking DHFS officials said that Wisconsin was in complete compliance with Synar and new legislation was not necessary. Thompson then used his veto power to wipe out the grandfathered Madison ordinance. Afterwards, top DHFS officials supported legislation introduced by State Sen. Judy Robson (D-Beloit) that would have corrected the budget language because Wisconsin was now out of compliance with Synar. That went nowhere.Data from DHFS has repeatedly shown that Wisconsin is doing extremely poorly with respect to reducing youth smoking. Data from UCSD et al showed that Wisconsin was near the bottom with respect to young people’s smoking prevalence.
Data from Wisconsin Project ASSIST show that none of its goals will be met.
November 19, 1941 Born in Elroy, Wisconsin
1963 receives BS from UW-Madison
1966 Receives law degree from UW-Madison
1966 Elected to Wisconsin assembly
1973 Elected assistant minority leader
1981 Elected minority leader
1983 Worked unsuccessfully with Sen. Shoemaker to try and defeat the Clean Indoor Air Act (SB-80), Sen. Risser is the main sponsor
1986 Elected governor defeating incumbent Tony Earl
1988 (1987 Wisconsin Act 336) Thompson sign’s legislation preempting local youth access laws (Wi 134.66 (5) )
1989 (1989 Wisconsin Act 336, Senate Bill 542, Budget Adjustment Bill) Thompson vetoes a budget item proposed by Rep. Peter Bock on behalf of the City of Milwaukee, which would have reduced the impact of the preemption language with respect to the free distribution of cigarettes. Thompson says that policy should not be in the budget. Compare to his 1999 work on behalf of Philip Morris to eliminate enforcement of the law that make sit illegal to sell cigarettes to minors.
1990 Re-elected governor.
1991 (1991 WI Act 39. Gov. Veto message) Thompson vetoes 10-cent increase in the cigarette excise tax . He later signs an eight cent increase. 1991 Veto Message on cigarette tax hike. "These sections increase the cigarette tax from the current 30 cents per pack to 40 cents per pack. I am willing to support a more modest five cent per pack cigarette tax increase …"
July 15, 1991 Philip Morris CEO Hamish Maxwell writes Tommy Thompson a letter supporting the veto of the 10-cent increase.
1992 Thompson signs smokers’ rights legislation even though the Wisconsin Manufacturers and Commerce opposed it. Philip Morris quits WM&C in protest.
1994 Re-elected governor
Fall, 1995 Thompson vetoes ban on smoking in new Brewers stadium saying it might effect naming rights. The stadium was then named Miller Park, after Miller beer.
1996 Thompson delays Doyle’s lawsuit against the tobacco companies and only acts after contacting Philip Morris executives to ask for permission. On November 28, 1996 the Milwaukee Journal Sentinel reports that Thompson had taken at least $55,000 in campaign contributions from Philip Morris executives. Thompson makes it difficult for Doyle to sue.
1997 Thompson’s free travels are questioned Tommy’s comment. More on the travels.
November 1997 Money and Influence: Inside the Thompson Administration (Milwaukee Journal Sentinel)
1997 Wisconsin State Journal criticizes Thompson’s close relationship with Philip Morris and an apparent consequence — he will only support a five cent increase in the cigarette excise tax when conservative assembly Republicans support a 16-cent increase.
1998 Thompson faces Ethics Board issues I and II
1999 Tommy Thompson introduces budget language to preempt local youth access laws and his staff/government officials work with Philip Morris lobbyists and retailer lobbyists such as Brandon Scholz to eliminate enforcement of the law that makes it illegal to sell cigarettes to minors. According to Wisconsin DHFS officials Wisconsin goes from in compliance with the Synar regs to out of compliance with the Synar regs.
1999 Thompson uses his veto pen to make the preemption as bad as possible.
1999 Thompson uses his veto pen to reduce tobacco control board money and to give him full control of its make-up. Thompson appoints Wisconsin Grocers lobbyist Brandon Scholz to the Wisconsin Tobacco Control Board.
2000 Thompson signs ban on smoking in capitol. This is years after other state office buildings voluntarily go smokefree.
January 10, 2001 Thompson Has Strong Tobacco Ties (Washington Post)
January 10, 2001 Thompson links to Philip Morris may be issue (Milwaukee Journal Sentinel)
January 12, 2001 Choice for Health Secretary Is Faulted on Tobacco Issue (New York Times)
January 12, 2001 Governor defends his record (Milwaukee Journal Sentinel)
January 12, 2001 Wisconsin Democracy Campaign (WDC) provides information on Thompson finances
Youth Risk Behavior Survey (YRBS) on high Wisconsin youth smoking rates
Milwaukee Journal Sentinel EXCERPTS
September 29, 1995
Page 13A
Smoking ban may affect naming rights, Thompson says
By Amy Rinard
A last-minute change in the stadium financing package approved by the Assembly early Thursday morning that bans smoking in a new stadium could hinder the team’s ability to sell the naming rights to the new facility, Gov. Tommy Thompson said Thursday.
Asked about whether he would veto the amendment to legislation needed to help the Brewers build a new, $250 million stadium, Thompson said: "I want to look at the language before I say anything."
During its long debate on the stadium legislation that began just after noon Wednesday and ended with a 52-47 vote in favor of the proposal at 1:25 a.m. Thursday, the Assembly considered 35 amendments to the bill.
The majority of the proposed changes were killed on a tabling motion. Few of the amendments were adopted.
...
Milwaukee Journal Sentinel
November 28, 1996
Thompson received tobacco money Companies, affiliates gave at least $55,000 since ‘86
DANIEL BICE AND AMY RINARD
Gov. Tommy Thompson, who waited five weeks before agreeing to have the state sue cigarette manufacturers, has received at least $55,000 in campaign contributions from tobacco companies and their affiliates since 1986, state records show.
Thompson on Monday agreed to go along with Attorney General James Doyle’s request to follow the lead of 19 states by suing tobacco companies for the costs of tobacco-related illnesses. The suit would accuse the companies of selling a product that has cost Wisconsin hundreds of millions of dollars in Medicaid claims for tobacco-related illnesses.
Department of Justice officials met with Thompson’s staff attorney on this issue repeatedly over the last five weeks. But the governor agreed to go along with the suit only after Doyle held two news conferences Monday urging him to do so.
That had a Doyle aide and others questioning whether Thompson’s reluctance was related to the campaign contributions he has received from the industry.
Employees at Philip Morris have donated $4,430 to the governor’s campaign coffers and the company’s political action committee has given $3,250 since 1990, according to state records.
Philip Morris owns Miller Brewing Co. in Milwaukee. Miller employees have given $10,067 to Thompson over the past 10 years, and Miller’s PAC has donated $11,000 since 1990. Much of the PAC money originated with Philip Morris’ national committee.
Thompson also has received $2,500 from employees at R.J. Reynolds and $1,250 from those at the Tobacco Institute. Employees of Oscar Mayer, another Philip Morris subsidiary, gave him $22,570.
Roger Bybee, spokesman for Wisconsin Citizen Action, a consumer and environmental advocacy group, said he believed the campaign contributions of tobacco companies kept the case from going to court earlier.
"Wisconsin certainly is a Johnny-come-lately to the lawsuit against the tobacco companies," Bybee said. "There’s good reason to think all the campaign contributions from the tobacco companies to Gov. Thompson played a role in that."
He added, "Where there’s tobacco money and tobacco smoke, there is fire."
James Haney, a spokesman for Doyle, said: "The governor’s close relationship with the Philip Morris Co. could be part of this. It’s not like he doesn’t have connected friends."
Capital Times (Madison, WI.)
December 14, 1996
Editorial, Pg. 13A
Now this sure is a fancy dance step the governor is doing.
Attorney General Jim Doyle asks Gov. Tommy Thompson for permission to have the state of Wisconsin join 19 other states in suing tobacco companies.
At issue is whether those tobacco firms should have to reimburse the states for taxpayer dollars that went to provide health care for people suffering from tobacco-related illnesses.
Gov. Thompson tells the attorney general, sure, join the suit.
This was a bit of a surprise, because tobacco companies and their affiliates have contributed $ 55,000 to Thompson’s political campaigns over the years and because two major Wisconsin industries -- Miller Brewing and Oscar Mayer– are owned by tobacco giant Philip Morris.
Ah, but the dance wasn’t over.
Doyle had planned to have private law firms with expertise in this kind of case handle the suit. If the state wins, the law firms would get 25 percent of the settlement. If the state loses, they get nothing.
The American Cancer Society and other health groups, meanwhile, had pledged to raise the money to pay for three temporary positions in the Attorney General’s Office to help coordinate the suit.
Nothing doing, says the gov, backing away from his brief waltz with Doyle.
It’s not fair for the lawyers to get so much money, says the gov. File the suit and then see what kind of legal help you need, says the gov.
You can just imagine the smiles in the executive offices of the tobacco companies at that approach. It’s like saying you’ll send the Green Bay Packers into the Super Bowl, but you’ll suit up the front office staff for the big game.
Thompson had no hesitation hiring outside counsel for cases he thought were vital for the state to win, like the school choice case. His message on the tobacco case is that it is clearly not important enough to him to go after the best legal representation possible–even though that representation comes at no cost to the taxpayers.
THOMPSON HITS MONEY TRAIL
Pat Simms
It's the season for ''remote'' candidates to trawl inside the Beltway for political contributions.
About a dozen U.S. senators attended a fund-raiser for Gov. Tommy Thompson at the Ronald Reagan Center in Washington, D.C., April 17.
GOP insiders say Philip Morris was a sponsor of the event.
Wisconsin State Journal, May 5, 1996
And Madison Mayor Paul Soglin, running as a Democrat for Congress in the 2nd District, will be at the Stewart Mott House in D.C. for a fund-raiser May 15.
Hosting the event at the liberal money-raising mecca are current Wisconsin U.S. Sens. Russ Feingold and Herb Kohl, former Wisconsin U.S. Sens. Gaylord Nelson and Bill Proxmire, and former 2nd Dist. Congressman Bob Kastenmeier.
Follow the fruit: By the way, Thompson's 1995 ethics statement is out.
Thompson listed scores of gifts he received -- plenty of cheese, nuts, candy, plants, hams and the like.
But also reported was a cigar from TV and Dean Clinic doc Zorba Paster, a book on sculptures and goddesses from Mr. and Mrs. Ernest Borgnine of Beverly Hills, Calif., an autographed baseball from Milwaukee Brewers GM Sal Bando, a ''barefooting videotape'' from Michael Krutza of Farm Credit Services in Wausau -- and grapefruit from Nicholas Muller III , outgoing director of the State Historical Society.
Thompson trip not under ethics review
Board’s attorney calls Journal Sentinel article inaccurate, misleading
By Steve Schultze of the Journal Sentinel staff
February 10, 1998
A state Ethics Board official has strongly objected to a Journal Sentinel article that said the agency would review records raising questions about whether Gov. Tommy Thompson was lobbied by a Philip Morris lobbyist while traveling in Australia in 1996.
Thompson was one of two governors who took an eight-day trip to Australia that was largely funded by Philip Morris through two non-profit groups closely linked to the tobacco giant.
Ethics Board attorney Jonathan Becker, in a letter addressed to a reporter, acknowledged that he responded to the reporter’s request to review lobby reports by saying he would. But, Becker said in the letter, "It is grossly unfair for you to have characterized my willingness to look at Philip Morris’ lobbying reports as anything other than a desire to cooperate with the press and to satisfy my own curiosity."
Becker also called the Jan. 30 article "inaccurate and grossly misleading" and said it was based on what he had thought was a casual conversation. In a brief interview Monday, Becker declined to elaborate on his letter, which was dated Friday and given to the governor’s office that day.
The Journal Sentinel received a mailed copy of the letter Monday.
"I have no comment to make on the letter," Becker said.
Thompson’s office distributed the letter Monday to news media in the state Capitol and elsewhere. Kevin Keane, Thompson’s press secretary, said, "It’s our reputation, and we’ll defend it."
Thompson’s attorney, Jon P. Axelrod, sent a letter to the Journal Sentinel Monday, calling the article "libelous and defamatory because it falsely indicated that the State of Wisconsin Ethics Board is investigating Governor Thompson regarding a trip which he made to Australia to promote the State’s economy."
Axelrod’s letter, which demanded a retraction, was based on Becker’s letter to the reporter.
"We find it strange that a public official would consider a telephone interview by a reporter a ‘casual conversation,’ " said Martin Kaiser, editor of the Journal Sentinel. "We assume that public officials are speaking in their official capacity when answering a reporter’s questions in an interview."
Ethics Board Executive Director R. Roth Judd said Thompson’s office had not asked Ethics Board officials to write the letter.
Becker’s letter said he didn’t tell the newspaper that he would review lobbying reports filed by Philip Morris in Minnesota. The Jan. 30 story said Becker would review the Minnesota reports and lobbying reports filed in Wisconsin by John C. Lenzi, Philip Morris’ chief lobbyist for the Midwest at the time.
Becker was asked in a Jan. 26 interview whether he would review reports showing that Lenzi had claimed lobbying expenses in Minnesota and Wisconsin for periods that included the Australia trip. Becker said he would.
Lenzi claimed $3,169 in Minnesota lobby expenses for a period that included the Australia trip. He also claimed $465 in Wisconsin lobby expenses for June 1996.
Minnesota Gov. Arne Carlson and his wife were on the trip, along with Thompson, several aides to the governors and at least four Philip Morris officials, including Lenzi. Thompson said the trip was a trade mission and cultural exchange, and a draft itinerary of the trip listed official functions in three Australian cities.
Thompson spokesman Keane said Monday the governor had been "verbally cleared" by the state Ethics Board of any legal concerns relating to his acceptance of trips to Australia, as well as earlier trips to Africa and England indirectly funded by Philip Morris.
Judd reaffirmed a comment in Becker’s letter saying that, based on information the board had reviewed so far, Thompson’s 1996 trip to Australia appeared appropriate.
Asked whether the board had fully cleared Thompson in connection with the trips, Judd said: "There was one sentence in (the letter) that addressed the issue. That was the only thing discussed."
Ethics officials will examine lobbying on Thompson trip Philip Morris lobbyist logged activity around time of visit to Australia
By Steve Schultze of the Journal Sentinel
January 30, 1998
State ethics officials will review records filed in Wisconsin and Minnesota that raise new questions about whether Gov. Tommy Thompson talked with a tobacco lobbyist about pending legislation during a 1996 trip to Australia indirectly funded by cigarette maker Philip Morris.
Jonathan Becker, an attorney with the Wisconsin Ethics Board, said he was checking reports filed by Philip Morris lobbyist John C. Lenzi that show he claimed lobbying "preparation" time while on the trip as well as lobbying expenses around the time of the trip.
Thompson and Philip Morris officials have denied any lobbying took place on the trip, which the governor has described as a trade mission and cultural exchange. It’s an important distinction. If the trip’s purpose included lobbying the governor, that could make the trip, worth an estimated $7,000 per person, appear to have been more a gift from a lobbying organization, illegal under Wisconsin law.
Thompson spokesman Kevin Keane declined to comment Thursday, saying Thompson’s previous statements on the topic should suffice.
"We are not going to rehash old stories," Keane said. Thompson has said he wasn’t lobbied on the trip.
Thompson has said he didn’t believe accepting the trip was unethical but might not have gone had he realized Philip Morris was paying for most of it. Thompson has received more than $60,000 in campaign donations from the firm and its employees, according to campaign records.
Lenzi, who headed Philip Morris’ lobbying efforts for the Midwest and was a registered lobbyist in Wisconsin at the time of the trip, was unavailable for comment. He now holds the title of director of strategic planning and programs for Philip Morris’ lobbying in all states.
Darienne Dennis, director of communications for Philip Morris Management Corp., also said Lenzi did no lobbying on the trip.
"Philip Morris always complies with both the letter and the spirit of the law in every state," Dennis said.
Thompson’s Australia trip ran from June 12-20, 1996. The trip was taken under the auspices of the National Governors’ Association, but was completely funded by two non-profit groups largely bankrolled by Philip Morris, Wisconsin’s largest private employer. Its subsidiaries include Miller Brewing Co. and Kraft Foods Corp.
One trip sponsor, the New York Society for International Affairs, has received 98% of its funding from Philip Morris, and the other sponsor, the America-European Community Association, has substantial Philip Morris funding, the Journal Sentinel has reported.
A preliminary schedule for the trip listed several meetings with Australian government officials in three cities, as well as some sightseeing. Thompson, in a July 8, 1996, letter to Lenzi after the trip, thanked the lobbyist for his "participation."
"I am especially grateful that you agreed to take the scuba diving plunge with me" while in Australia, Thompson wrote. The governor sent similar thank-you letters to two other Philip Morris executives.
Governors association officials have said 55 state and territorial governors were invited, but only Thompson and Minnesota Gov. Arne Carlson went on the trip. Thompson was chairman of the governors association at the time.
Association spokeswoman Becky Fleischauer could provide no figures on full costs of the trip. She said non-profit groups backed by Philip Morris likely paid the bills directly. Asked what the governors association’s role was in the trip, she said the group "facilitated" rather than sponsored it.
Accompanying Thompson and Carlson were four Philip Morris executives or employees, including Lenzi and Andrew Whist, a Philip Morris senior vice president who also heads the two non-profit groups that paid for the trip. The invitation for the trip sent to governors said the non-profit groups would pay for all travel to and within Australia, and meals and lodging for governors and their spouses. Carlson brought his wife along; Thompson did not.
The only others listed as participants on the trip were Thompson aide Nate Elias, Thompson bodyguard Gerald Baumbach, Carlson’s bodyguard, National Governors’ Association aide Victoria Becker and a travel agent acting as host.
In lobbying logs required by the Wisconsin Ethics Board, Lenzi reported that on June 13, 1996, he spent about 25 minutes preparing to lobby on state legislation then pending in Wisconsin. There were several bills, opposed by Philip Morris, that aimed at restricting the sale or use of tobacco.
Lenzi also reported incurring $465 in Wisconsin lobbying expenses during June 1996, but the report does not specify an exact date or say what the money was spent on.
Becker, the ethics board attorney, also said he would review records filed by Lenzi in Minnesota in which the lobbyist reported $3,169 in lobbying expenses during a three-month period that included the Australia trip dates. The sum was broken down as $2,443 for travel and lodging and $726 for food and beverages on reports filed with the Minnesota Campaign Finance and Public Disclosure Board.
Dennis, the Philip Morris spokeswoman, said none of those records referred to lobbying on the Australia trip. Lenzi’s June 13 activity was studying material to prepare to lobby Wisconsin officials, not actual lobbying contacts, she said. Besides, on that date Thompson probably had not yet arrived in Australia, Dennis said.
The lobbying expenses reported in Wisconsin and Minnesota were not for the Australia trip, she said. They related to other costs linked to lobbying in the two states, she said.
While state law generally bans lobbyists or firms that employ them from making gifts to state officials, there is one big exception. It is permissible for the governor to decide to accept trips from companies with lobbyists if he is representing the state at some event linked to state interests, the Ethics Board’s Becker said.
"If there is any question about that decision, we would look to see what was the nature of it," he said. "If something turned out to be nothing more than a vacation at a warm spot in winter, that might raise some problems."
Minnesota ethics officials rejected a complaint about Carlson’s acceptance of the Australia trip, saying that state’s gift ban didn’t apply because Carlson got the trip as a member of a group in which a majority of the members were not Minnesota officials. In this case, Carlson got the trip as a member of the National Governors’ Association, the Minnesota board ruled.
Thompson also accepted two other overseas trips from non-profit groups backed by Philip Morris: a 1995 trip to Africa and a 1992 trip to England. He has listed the value of those trips at $9,200.
After a Journal Sentinel story, the National Governors’ Association ordered its staff to check into actual sources of funding when non-profit groups offer to sponsor trips.
Free Thompson trips have risen sharply
Value of ‘95-‘96 travel nearly four times higher than all previous journeys
By Steve Schultze and Daniel Bice of the Journal Sentinel staff
August 7, 1997
Gov. Tommy Thompson took to the air more than 50 times in 1995 and ‘96 on trips funded by private groups or organizations with corporate funding–nearly quadruple the value of his free trips in his previous eight years in office, state records show.
The Republican valued such trips in ‘95-‘96 at $100,481, including a ‘96 trip to Australia worth an estimated $7,000 and a ‘95 trip to Africa worth $8,250. Ethical questions have been raised about cigarette maker Philip Morris’ indirect funding of the trips to Australia and Africa and a ‘92 trip to England through three separate non-profit organizations.
Thompson’s pace of travel picked up considerably during 1995 and ‘96, as he worked to burnish a national reputation and position himself as a potential presidential or vice presidential candidate.
The total value of the free trips he took during his previous eight years as governor was $25,198.
In 1996, Thompson took $61,189 in free trips; in ‘95 he took $39,292. Before 1995, his biggest free trip value was one valued at $9,287 in 1990.
Many of the trips provided at least an opportunity for access by firms with lobbying or procurement interests in state government. The state Ethics Board has been asked to determine whether any of Thompson’s travel violated state ethics law.
Some of his trips in 1995 and 1996 were linked to political speeches given by Thompson and paid for by Republican Party sources, which raise no legal questions. Those accounted for $12,738, or about 13%, of his two-year total. State law also wouldn’t bar such travel if it were linked to Thompson’s participation in a public issues seminar.
But many trips were funded directly by corporations or by trade groups or non-profit groups financed in part by corporate interests, potentially placing them on murkier legal ground.
By comparison, Nevada Gov. Bob Miller, who went with Thompson on the African trip, took seven trips worth $3,200 in 1996, his ethics report shows. Miller succeeded Thompson as chairman of the National Governors’ Association in mid-‘96.
Comparisons with other governors’ trips are difficult to make because most states have less strict gift-reporting rules. For example, officials in Minnesota, Iowa and Mississippi said there was no requirement that governors disclose most privately funded travel. Governors from those states accompanied Thompson on his recent overseas trips.
Thompson’s ‘95-‘96 travel tab had heavier corporate sponsorship than his earlier treks.
For example, he reported a $1,288 trip paid for by the Blue Cross Blue Shield Association, a $1,170 trip from Kohler Co., and a $1,200 outing from the Outdoor Amusement Business Association, all last year. In ‘95, he listed $1,157 in travel expenses from cable TV executive Don Jones, $1,106 for a trip from the National Association of Manufacturers, $1,070 from GTE Corp., $414 from Wausau Paper Co. and $450 from Johnson Controls.
Most have had regulatory or legislative interests in state government. For example, Blue Cross Blue Shield had concerns about a health insurance reform proposal, Kohler wanted state permits to develop a golf resort and GTE was interested in a major telecommunications deregulation plan.
Thompson rejected any suggestion that corporate interests could get their foot in the door of his office by paying for his travel.
"Absolutely not," he said. "Nobody gets special access. Take a look at Philip Morris. .
. . If they’re doing things to have influence with me, they’ve done a lousy job."
Trips and other types of corporate largess given to public officials have become more creative as campaign costs have risen and officeholders and their benefactors look for ways to trump donation limits, said Gail Shea, executive director of the non-partisan Wisconsin Democracy Campaign, which advocates for campaign finance reform.
"This is just another way for soft money to get into the process," Shea said. Soft money refers to largely unregulated donations to candidates. Officeholders should ask lots of questions about sources of trips and gifts to ensure there isn’t even an appearance of undue influence, she said.
Philip Morris substantially funded Thompson’s trips to Australia, Africa and England through three non-profit groups: the America-European Community Association, the New York Society for International Affairs and Libertad, all ostensibly formed to promote free trade, the Journal Sentinel reported last week.
Andrew Whist, a Philip Morris senior vice president, runs all three organizations, with the assistance of other Philip Morris employees. One of the groups received 98% of its contributions from the tobacco company between 1991 and 1995. Philip Morris had registered lobbyists in Wisconsin at the time of the trips.
The total value of those three trips: about $16,000.
State law bars officials from taking anything of value from lobbyists or firms that employ them. It is also illegal for lobbyists or their firms to provide anything of value to officials.
The State Ethics Board has not determined whether indirect trip funding by a firm that lobbies state government could constitute a violation of state lobbying law. That issue would lie at the heart of any case that might come out of Thompson’s travel to Australia, Africa and England.
Philip Morris, along with its subsidiaries Miller Brewing and Kraft Foods, reported more than $1 million in direct lobbying expenses in Wisconsin in 1995-‘96.
State Democratic Party Chairwoman Terri Spring last week called for a formal investigation of the trips. Ethics officials have declined to comment.
Thompson lists $41,830 in ‘95-‘96 travel from the National Governors’ Association. No breakdown is given, but much of that was likely linked to his ‘95-‘96 chairmanship of the organization and the frequent travel connected with it.
Travel is just one of many avenues that corporate interests have used to court Thompson; other access routes have included financial support for partisan and non-partisan governors’ associations.
The NGA itself is partly funded by corporations, some of them with lobbyists in Wisconsin. The NGA runs on a budget of some $6 million a year, through its non-profit arm, the NGA Center for Best Practices. Thompson is chairman of the center.
Corporate donations have been stressed as a result of dwindling government support. "Corporate fellows" of the center pay $12,000 to take part in exclusive policy-making sessions with governors. Philip Morris, General Electric, Blue Cross-Blue Shield, Johnson Controls and WMX Technologies are among the current and past donor firms listed by the NGA that have substantial Wisconsin ties.
The groups that funded the governors’ trips abroad also have sponsored or co-sponsored foreign trips for the National Conference of State Legislatures. Two Philip Morris-backed non-profit groups covered half the costs of the trips to promote trade, said Kathy Brennan Wiggins, a conference spokeswoman. The America-European Community Association and the New York Society for International Affairs also sponsored earlier trips, but she could not provide details.
Just how tight a relationship Thompson has with Philip Morris was underscored in records connected with his overseas trips.
Thompson wrote a thank-you note to Philip Morris Midwest lobbyist Jack Lenzi, who was on the Australian trip, for a scuba diving outing. "I am especially grateful you agreed to take the scuba diving plunge with me," he wrote. "You were definitely the star of the group."
Thompson also expressed his gratitude to Whist after the African trip. In a Dec. 26, 1995, letter to the Philip Morris senior vice president, Thompson called the trip "the experience of a lifetime" and closed by saying: "I value your loyalty and friendship and look forward to sharing many more great meals and exchanging many more unbelievable stories with you in the future . . . I eagerly anticipate our next adventure together–maybe it will be Australia."
It was–less than six months later.
Thompson and Whist have stressed that no lobbying took place on the trips or in phone calls that Thompson placed to Whist’s office at Philip Morris’ New York headquarters. Whist said his work for the non-profit groups was separate from his Philip Morris job. Thompson said he was aware only that the tobacco company had "indirect" involvement with the groups.
But a board member for the New York Society for International Affairs suggested last week that Philip Morris was intimately involved in the activities of his organization and the America-European Community Association.
"I think the (New York Society’s) budget was quite modest, and I suppose any deficits were covered by Philip Morris," said Ingo Walter, vice chairman of the society and a former consultant to Philip Morris. "I’ve viewed the whole thing as one of the company’s high-quality PR efforts."
The governors should have known better
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From the Journal Sentinel
August 4, 1997
Relying on the National Governors Association staff to organize things, Wisconsin
Gov. Tommy Thompson and several other states’ chief execs took overseas trips, apparently unaware that costs were paid indirectly by cigarette maker Philip Morris.
The firm is not only Wisconsin’s largest employer, but also a giant in an industry under increasing attack by many states for causing tobacco-related illnesses.
At the minimum, the trips present ethical concerns, not just for the governors who went along, but for the NGA overall.
The decision of the governors’ association merely to study the situation indicates that the group still doesn’t get it, though Thompson apparently got the message and promises NGA executive committee action by September.
Thompson took three such trips from 1992 to ‘96 -- to Australia, southern Africa and London. The funding was funneled through three non-profit groups that received the money from Philip Morris. A form of laundering? It could be viewed that way.
Thompson says he might not have taken the trips if he had known of Philip Morris’ backing, although he says there was nothing illegal about them. He describes the trips more or less as trade missions.
Maybe the governors didn’t know of Philip Morris’ involvement. Yet one might still ask what the governors thought about the presence of a Philip Morris lobbyist and other executives on some of the journeys. Were they just along for the ride?
Simply from an appearance standpoint, the trips raise concerns because they provided Philip Morris with convenient access to the governors at some very sensitive times.
Thompson can claim justifiably that no influences swayed him, because he has proposed a state cigarette tax increase and had helped assemble a legal team to sue the tobacco industry to recover medical expenses for tobacco-related illnesses.
Nevertheless, it remains incumbent upon the NGA to clean up its act and at least conduct background checks, as Thompson now proposes, to determine who actually pays for travel.
Wisconsin law does it right, barring governors and other state officials from accepting anything of value–not even a cup of coffee–from lobbyists or firms that employ lobbyists here. Had they kept that standard in mind, the governors might not have left the hangar.
Thompson seeks checks on travel
‘On future trips like this we should know who’s paying,’ governor says
By Daniel Bice and Steve Schultze of the Journal Sentinel
August 1, 1997
Madison–In response to news reports that cigarette maker Philip Morris funded three of his overseas trips, Gov. Tommy Thompson on Thursday called for the National Governors’ Association to conduct background checks to determine who is really paying for any future travel.
The Milwaukee Journal Sentinel reported this week that Philip Morris helped pay for recent Thompson trips to London, southern Africa and Australia through payments to non-profit groups.
Thompson has said he might have not made the trips had he known who paid for them. Two trips were sponsored under the auspices of the NGA.
But the three-term Republican governor softened his earlier criticism of his travel at an impromptu news conference at the Capitol and in a separate interview.
"There’s nothing illegal or unethical about what happened," Thompson said. He described the trips as economic development and cultural exchanges.
He even went so far as to say he may take another similar trip in the future so long as the funding sources are made public.
Thompson said he had asked the NGA executive committee on Wednesday to require its staff to identify the funding source of non-profit groups that pay for NGA travel. The panel, made up of nine governors, is expected to vote on the issue in September.
"On future trips like this we should know who’s paying," Thompson said. "And that’s being clarified and taken care of."
Thompson’s trips to Australia last year, Africa in 1995 and England in 1992 were worth about $16,000. The three non-profit groups that paid for the trips were largely funded by cigarette maker Philip Morris, the Journal Sentinel reported Wednesday.
The non-profit groups–the America-European Community Association, New York Society for International Affairs and Libertad–all were headed by Andrew Whist, a Philip Morris senior vice president.
Whist and other Philip Morris executives were on the Australian and African trips.
John Lenzi, Philip Morris’ chief lobbyist for the Midwest, went on the Australian trip.
Lenzi was a registered lobbyist in Wisconsin at the time of the trips. Thompson said he wasn’t lobbied during the trip and didn’t know Lenzi would be along.
Philip Morris owns several major Wisconsin companies, including Miller Brewing and Oscar Mayer Foods.
It is illegal for Wisconsin public officials to accept gifts from lobbyists or firms that employ them and it’s also against the law for lobbyists or their employers to make gifts to officials. State Ethics Board officials have declined to comment about Thompson’s trips.
Thompson was one of just two governors on the Australia trip; the other was Minnesota Gov. Arne Carlson. On the trip to Zimbabwe and South Africa, Thompson was joined by Iowa Gov. Terry Branstad, Nevada Gov. Bob Miller and Mississippi Gov. Kirk Fordice. The wives of all four, as well as the governor of Guam and his wife, also went.
Branstad said in a statement this week that he wouldn’t accept a trip financed by tobacco interests and was unaware they were paying for the ‘95 trip to southern Africa.
"I didn’t know who contributed to the group," Branstad said. "I would not go on a tobacco-sponsored trip."
Branstad said he relied on Thompson, who headed the governors association in 1995-‘96, to handle the logistics of the trip. Branstad’s press secretary, Eric Woolson, said the nondescript name of the group that financed the trip would not lead people to believe it was financed with tobacco money.
Spokespeople for the other governors stressed their belief that the trip was legal and did not express regrets about going.
In a separate interview, Thompson declined to comment on a suggestion by state Rep. Judy Robson (D-Beloit) that he pay for the trips out of his own pocket. He said she was "playing politics."
Anti-tobacco groups weighed in with criticism of Thompson over the trips. Jack Lohman, executive director of Wisconsin Initiative on Smoking and Health, called on Thompson to provide more details about the trips and links to Philip Morris.
Philip Morris helped fund trips
Thompson was among VIPs who traveled through groups backed by firm
By Steve Schultze and Daniel Bice of the Journal Sentinel
July 30, 1997
Philip Morris, the state’s largest private employer, provided funding through three non-profit groups to send Gov. Tommy Thompson on three overseas trips.
Public records reviewed by the Journal Sentinel suggest the trips–worth about $16,000 total–provided convenient access for Philip Morris officials to Thompson and the few other governors who participated in the June 1996 trip to Australia and a weeklong southern Africa trip in December 1995. The records and interviews show Philip Morris as the primary funder of those trips, through its support of two non-profit groups, the America-European Community Association (AECA) and the New York Society for International Affairs.
The trips were organized under the auspices of the National Governors Association. Victoria Becker, the governors association aide who helped set up the trips, refused to comment.
In addition, a third non-profit group that has received money from Philip Morris, Libertad Inc., along with AECA paid for a trip Thompson and two aides took to London in 1992, the Journal Sentinel found.
Among those on the Australian trip was Jack Lenzi, the chief Midwest lobbyist for Philip Morris, Andrew Whist, a Philip Morris senior vice president, and at least two other Philip Morris employees.
Lenzi, who was a registered lobbyist in 1992 in Wisconsin and remains so today, didn’t return phone calls.
State law bars the governor and other state officials from taking anything of value from lobbyists or firms that employ lobbyists in Wisconsin. It also forbids such firms from providing gifts such as foreign trips to officials. It is unclear whether the law would apply to situations where the funding for trips is passed through another group.
R. Roth Judd, executive director of the Ethics Board, declined to comment.
Thompson, who was chairman of the national governors group at the time of the Australia and Africa trips, said he knew Whist, Lenzi and other Philip Morris officials were involved in the trips but was not aware of Philip Morris’ financial role.
He said he relied on National Governors Association staff members to set up the trips and never asked where the non-profits that paid for the trips got their money.
"I led the delegation and I don’t see anything unethical about it," Thompson said. "It was a trade mission and also a cultural exchange between government leaders."
However, Thompson also said if he had known of the Philip Morris backing at the time the trips were broached by Whist, he might not have gone.
"I would have raised some questions," Thompson said. "But I did not."
The trips led by Thompson were the only times private groups helped sponsor trips for the National Governors Association, an NGA spokeswoman said.
Total value of the London and Africa trips was $9,200, as reported by Thompson on his annual state ethics forms. Those forms said the National Governors Association paid. The Australia trip was worth about $7,000, according to Burkhalter Travel, a Madison firm.
Tax records filed by the New York Society for International Affairs show that Philip Morris was nearly the exclusive donor to the non-profit organization between 1991 and 1995.
In that five-year span, the tobacco giant was responsible for $620,000, or 98% , of the $631,000 in contributions received by the New York Society.
The other sponsor of Thompson’s two international trips, the America-European Community Association, does not make public in its federal tax records how much money it has received from Philip Morris. Whist said Philip Morris is "certainly a large contributor" to the group, which reported more than $1 million in income between 1993 and 1996. He added that there were other funding sources for AECA.
In 1994, according to records, Libertad’s entire $219,000 budget was funded by Philip Morris.
Philip Morris officials declined to detail the company’s exact contributions to the three organizations. The Journal Sentinel obtained funding figures from tax records filed with the New York state attorney general’s office.
The trips raise ethical questions about special access provided to Philip Morris, said Bill Hogan, director of investigative projects for the Center for Public Integrity in Washington, D.C., a non-partisan, non-profit research center.
"Politicians like to call a trip like this a fact-finding mission," Hogan said. "It’s an escorted vacation that has business value to the corporation and not the people of Wisconsin."
Thompson said the trips could pay dividends to the state in the form of greater exporting opportunities for Wisconsin firms. He said the fact he proposed a 5-cent-a-pack cigarette tax increase demonstrated he wasn’t beholden to Philip Morris. The Legislature’s budget committee has voted to raise the increase to 16 cents a pack, which Thompson has said is too much.
Despite the Philip Morris involvement, Thompson said there was no lobbying on issues important to the firm, which has more than 7,400 workers at Miller Brewing, Oscar Mayer Foods, Kraft and other companies.
Philip Morris had many legislative and regulatory issues of interest in Wisconsin and other states, including opposition to tobacco tax increases and concern over the then-brewing multistate tobacco industry lawsuits. Neither was discussed on the trip, Thompson said in an interview, or in a string of phone calls made by the governor to Whist since January 1996.
Thompson has close ties to Philip Morris, including more than $60,000 in campaign donations from employees, from political action committees of the parent firm and its Wisconsin subsidiaries, and a personal friendship with M. William Gerrard, longtime Philip Morris lobbyist in Wisconsin.
Thompson acknowledged he called Philip Morris chief executive Geoffrey Bible twice in the last year, to tip him off that Thompson would include a 5-cent cigarette tax increase in his budget bill and that the state would sue the tobacco industry to recover medical expenses for tobacco-related illnesses.
Common Themes:
The common themes of the Australia, Africa and London trips were promotion of free trade and key roles for Philip Morris’ Whist and the non-profit group sponsors with Philip Morris ties.
Whist is a founder, officer or both of all three non-profits: America-European Community Association, New York Society for International Affairs and Libertad. AECA primarily sponsors European trips and the New York group promotes foreign travel to Africa, Australia and elsewhere, Whist said.
All told, the groups have sponsored 18 trips, most for business people but also including some state legislators, congressmen and governors, Whist said.
Whist suggested the southern Africa and Australia trips to the governors association after being approached by leaders in those regions seeking more trade with the United States, Whist said. Thompson agreed to lead the trips, on the condition he could use them to sell Wisconsin, the governor said.
Trip itineraries included meetings with business and political leaders, but also let the governors play tourist as well. For example, the first stop for the group in Africa was Victoria Falls in Zimbabwe for three days, before moving on to South Africa. In Australia, the governor group went sightseeing in Sydney, including a steam launch ride in the harbor, dinner at the world famous Sydney Opera House, and scuba diving. The group flew from one side of the vast country to the other, stopping also in Canberra and Melbourne.
The Africa trip included Thompson, his wife, Sue Ann, and four other Wisconsinites:
State Trooper/bodyguard Loren Raether; Dennis and Carol Markos, friends of the
Thompsons; and Gerard Randall, an aide to Milwaukee County Executive F. Thomas
Ament. The governors of Iowa, Nevada, Mississippi and Guam and their wives also were along.
Only Thompson and Minnesota Gov. Arne Carlson went on the Australia trip. He said if he had known so few governors would go on the trips, he would have canceled the whole trip but couldn’t back out at the last minute.
Spokeswomen for Carlson and Iowa Gov. Terry Branstad said those governors were unaware of any Philip Morris sponsorship, but didn’t view that as an ethical problem because the funding was channeled through the non-profit groups. A spokesman for Mississippi Gov. Kirk Fordice said he relied on Thompson and the National Governors Association to set up the trip and wouldn’t comment on Philip Morris funding. A spokesman for Nevada Gov. Bob Miller did not return a phone call.
Here is Tommy's veto message.
http://www.doa.state.wi.us/debf/sbo/state_budget/9901_exec_budget/pdf_files/vm5_hrt.pdf
Go to page 5 of the pdf document, which is page 64 of the actual document. This is section 9, Uniform Compliance Checks.
9. Uniform Compliance Checks
Section 2485j [as it relates to s. 254.916 (1) (a) and (c), (3) (f), (12) and (13)]
Section 2485j [as it relates to s. 254.916 (1) (a)] defines the authority of the Department of Health and Family Services (DHFS) under Chapter 254, Investigation of the Sale or Gift of Cigarettes or Tobacco Products to Minors, including the requirement that in using statistically sound sampling techniques in designing annual surveys, DHFS must stratify the sample so as to measure compliance by type of retail outlets, excluding a barroom. I am vetoing the provision that excludes barrooms from the sample because,
under 42 USC 300x-021, DHFS has included taverns in its sample of outlets and federal regulations require states to maintain consistency in their samples from year-to-year.
Section 2485j [as it relates to s. 254.916 (3) (f)] requires that, excluding investigations conducted under 42 USC 300x-021 and 21 CFR part 897, detailed information concerning the investigation must be reported to DHFS and to the retailer. I am vetoing the provision requiring that investigation results be reported to DHFS because the reports are not necessary for the department' s efforts to collect data to comply with federal law.
Section 2485j [as it relates to s. 254.916 (1) (c) and (12)] exempts surveys conducted by local units of government that have not entered into contracts with DHFS under 42 USC 300x-021 and 21 CFR part 897 from provisions of Chapter 254 and provides that no local surveys may be used for the purpose of issuing warnings or citations or any other enforcement mechanism. I am vetoing these provisions because one of the purposes in creating Chapter 254 was to strengthen compliance checks across the state to achieve a statewide goal of reducing the use of tobacco products by minors. In addition, I am concerned that the provision that precludes local municipalities from using the results of compliance checks for law enforcement purposes may curtail the ability of local governments in enforcing state law prohibiting tobacco sales to minors.
Section 2485j [as it relates to s. 254.916 (13)] exempts the City of Madison or the local health department or local law enforcement agency of the City of Madison from all provisions of Chapter 254. I am vetoing this provision because no county, town, village or city should have a special exemption from the requirements of Chapter 254.
Go to page 10 of the pdf document, which is page 69 of the actual document. This is the
Wisconsin Tobacco Control Board.
19. Tobacco Control Board
Sections 30d, 172 [as it relates to s. 20.436 (1) (tb) and (tc)], 717t, 2486g, 9101
(20c) and 9158 (11mg)
These sections create the Tobacco Control Board (board) to develop a state plan for spending the funds received under the tobacco settlement and set aside $25,992,000 of those funds in a separate segregated fund. The board is attached administratively to the Department of Health and Family Services (DHFS). The sections also define the duties of the board, identify the activities on which the funds can be spent and provide 2.0 FTE SEG positions. An annual report is required each year evaluating the success of the grant program and audits are required of the University of Wisconsin Center for Tobacco Research and Intervention and the Medical College of Wisconsin. Finally, the Department of Administration (DOA) is required to study the possibility of selling and transferring the state's rights to the monies to establish a permanent endowment fund.
Prior to outlining my vetoes, I want to underscore the importance of investing dollars in worthy and effective programs to prevent smoking, as well as further research on both the health-effects of smoking and medical care for those who suffer from tobacco's ill effects. I fully expect this funding, which provides more than ample resources, will enable Wisconsin to be a bold leader in an aggressive battle to tackle smoking.
First, I am partially vetoing section 30d [as it relates to the board members, terms and number of meetings] because I am dissatisfied with the board's composition. My concern with the board as statutorily constituted stems from what I believe is an unbalanced composition that keeps important constituencies, such as retailers and parents of teenagers, from having a place at the table. I am also vetoing section 9158
(11mg) which specifies the expiration dates of certain members because it is no longer necessary if the specific membership of the board is not set statutorily.
Second, I am partially vetoing section 30d [as it relates to DHFS sending the board's budget to DOA without changes] because it is inconsistent with language which governs all attached boards. Under s. 15.03, "budgeting, program coordination and related management functions shall be performed under the direction and supervision of the head of the department" to which the board is attached. The agency that is responsible for the state's tobacco control program should have input into the board's budget, and my partial veto ensures this input will occur.
Third, while I recognize there was substantial compromise in reconciling the funding level proposed by each house, I still believe the final, agreed upon amount is too high.
As a result, I am partially vetoing section 717t so that a total of $23,500,000 SEG will be available for the biennium, which will save $2,492,000. As a result, I am writing down the amounts in s. 20.436 (1) (tb), the administrative appropriation, by $200,000 SEG in fiscal year 1999-2000 and in s. 20.436 (1) (tc), the grants appropriation, by $2,292,000 SEG in fiscal year 2000-2001 to what I believe are more reasonable funding levels. I am requesting the Department of Administration secretary not to allot these funds. I am retaining the full amount of funding for administration in fiscal year 2000-2001 in order to ensure that the board has sufficient funding to reimburse DHFS for the cost of services, such as accounting or personnel, provided to the board.
Fourth, I am partially vetoing section 2486g which describes the duties of the board to eliminate the provision that the plan for spending the tobacco settlement funds must conform to the model developed by the Centers for Disease Control and be modeled after successful tobacco control programs in other states. While I understand it is not effective practice to reinvent the wheel, I believe the board members should not be constrained by these limitations. I want to provide each member with greater flexibility and encourage creativity and forward-thinking as they develop and propose programs to meet the specific needs of Wisconsin residents.
Finally, section 9101 (20c) requires DOA to study the possibility of selling and transferring Wisconsin's rights to the tobacco settlement funds in order to create a permanent endowment fund. The study is to be completed by January 1, 2000. I am partially vetoing this section to eliminate the study due date in order to provide more time for the department to complete a thorough and comprehensive review.
The entire October 27, 1999 document can be found at
http://www.doa.state.wi.us/debf/sbo/state_budget/9901_exec_budget/9901vmess.asp
Below is Gov. Tommy Thompson's budget of February 1999. The above is what actually became law.
http://www.doa.state.wi.us/debf/sbo/state_budget/9901_exec_budget/9901xbud.asp
Here is what he has on the eventual tobacco control board. Go to pdf page 13. It is page 201 of the actual document.
http://www.doa.state.wi.us/debf/sbo/state_budget/9901_exec_budget/pdf_files/435agcy.pdf
PROGRAM 1 AND 5 - HEALTH SERVICES PLANNING, REGULATION AND DELIVERY
1. Smoking Prevention and Health Initiative
The Governor recommends a Smoking Prevention and Health Initiative which will be supported from funds received from the tobacco litigation settlement. Activities which will be supported include:
FY00 FY01
1. UNIVERSITY OF WISCONSIN $1,000,000 $1,000,000
These funds would support new education programs sponsored by the Center for Tobacco Research and Intervention. Prevention strategies would be targeted toward specific groups, such as teenage girls, to keep them from starting to smoke. The funds would also support evaluation efforts to determine the most effective types of prevention programs and dissemination of information regarding cessation programs.
2. MEDICAL COLLEGE OF WISCONSIN
These funds would help expand existing programs for research efforts on cancer and cardiovascular disease, for translating research findings into medical practice for medical students and residents, and for community outreach to providers and clinics on smoking cessation programs and techniques.
$500,000 $500,000
3. DEPARTMENT OF PUBLIC INSTRUCTION
This funding would be used for grants of up to $10,000 to schools for smoking prevention activities in grades kindergarten through eighth grade.
$500,000 $500,000
4. DEPARTMENT OF HEALTH AND FAMILY SERVICES
This funding would be used to establish a smoking prevention program for women and children as part of the women's health program. See Item #2.
$500,000 $500,000
5. OFFICE OF THE COMMISSIONER OF INSURANCE
This one-time funding would be issued as a grant by the Office of the Commissioner of Insurance to an entity that would develop a plan for a small employer purchasing pool. Under the pool, small employers could band together to create a large enough group that they could purchase insurance at more affordable rates.
$200,000
Here is the enormous budget proposal
http://www.legis.state.wi.us/1999/data/AB133.pdf
Page 392. SECTION
255. 20.255 (2) (c) of the statutes is created to read:20.255 (2) (c) Grants for smoking prevention programs. The amounts in the schedule for grants for smoking prevention programs under s. 115.363.
page 1398
(16) SYNAR COMPLIANCE CHECKS. The legislative reference bureau shall prepare legislation authorizing the development of a statewide protocol for licensing authorities and law enforcement agencies in conducting compliance surveys to determine the prevalence of illegal retail sales of tobacco products to underage persons, based on instructions provided by the department of administration. The final instructions for this legislation shall be submitted to the legislative reference bureau by the department of administration not later than March 1, 1999. The secretary of administration shall submit the proposed legislation to the cochairpersons of the joint committee on finance no later than April 1, 1999.
From a Folio Search of AB 133, the budget bill.
AB133
This bill directs the board of regents of the UW System to allocate $1,000,000 from the UW System's general program operations appropriation in each year of the biennium to advance the work of the UW center for tobacco research and intervention.
AB133
This bill appropriates money to the Medical College of Wisconsin for the study and prevention of tobacco-related illnesses.
Sales of tobacco to minors
AB133
This bill requires the LRB to prepare legislation, based on final drafting instructions submitted by DOA no later than March 1, 1999, authorizing the development of a statewide protocol for licensing authorities and law enforcement agencies in conducting compliance surveys to determine the prevalence of illegal retail sales of tobacco products to underage persons. The bill requires the secretary of administration to submit the proposed legislation to the cochairpersons of JCF not later than April 1, 1999.
AB133
This bill changes the tobacco products tax from an occupational tax to an excise tax. The change allows the state to tax certain sales of tobacco products sold on reservations by American Indians to persons who are not American Indians.
AB133
This bill permits DOR to enter into agreements with American Indian tribes to provide for the refunding of the tobacco products tax imposed on tobacco products sold on reservations to enrolled members of the tribe residing on the tribal reservation. In addition, DOR is required to refund 50% of the taxes collected with respect to sales on reservations or trust lands of an American Indian tribe to the tribal council of the tribe having jurisdiction over the reservation or trust land on which the sale is made. These two provisions parallel existing authority of DOR in regard to cigarette taxes.
Here is some stuff from the non-partisan Legislative Fiscal Bureau
http://www.legis.state.wi.us/lfb/index.html
http://www.legis.state.wi.us/lfb/lfb_publications.htm
http://www.legis.state.wi.us/lfb/1999-01budgetdocuments/99-01Governorsummary/tableofcontents.htm
http://www.legis.state.wi.us/lfb/1999-01budgetdocuments/99-01Governorsummary/h&fs.pdf
http://www.legis.state.wi.us/lfb/1999-01budgetdocuments/99-01JFCsummary/tableofcontents.htm
http://www.legis.state.wi.us/lfb/1999-01budgetdocuments/99-01JFCsummary/h&fs.pdf
2.
WOMEN'S HEALTH INITIATIVE [LFB Paper 500] [Page 47 of PDF document]Governor Jt. Finance
(Chg. to Base) (Chg. to Gov) Net Change
GPR $1,200,000 - $1,066,000 $134,000
Governor:
Provide $600,000 annually to support women's health activities. Of this amount, $500,000 annually would be provided to establish a smoking prevention program for women and children. The remaining $100,000 annually would be available to support women's health projects, such as: (a) an LTE to provide administrative support to the women's health officer; (b) women's health conference expenses; and (c) a women's health hotline.Joint Finance: Reduce funding by $526,000 in 1999-00 and $540,000 in 2000-01 to delete funding to establish a smoking prevention program for women and children (-$500,00 annually)
and reduce funding to support women's health projects (-$26,000 in 1999-00) and -$40,000 in 2000-01). Provide funding to support: (a) a half-time LTE position to provide administrative support to the women's health officer ($14,000 in 2000-01); (b) women's health conference expenses ($10,000 annually); and (c) a women's health hotline ($50,000 annually).
There has to be more in the above file, but I cannot find it.
http://www.legis.state.wi.us/lfb/1999-01budgetdocuments/99-01VetoSummary/humanresources.pdf
Page 62 HUMAN RESOURCES
ITEM C-9. UNIFORM COMPLIANCE CHECKS [
Page 6 of the pdf document]As passed by the Legislature, Assembly Bill 133 would create a new subchapter under Chapter 254 relating to investigations of the sale or gift of cigarettes or tobacco products to minors. In creating this subchapter, DHFS would be authorized to contract with local health departments, as agents of DHFS, with state agencies and with state and local law enforcement agencies to conduct unannounced investigations at retail outlets. Enrolled AB 133 would establish a regulatory framework for the development of a compliance survey, conducting unannounced investigations and reporting the results of such investigations.
Enrolled AB 133 requires that compliance surveys conducted under the new subchapter conform to certain statistical requirements, including the requirement that: (a) the survey cover a range of retail outlets not preselected on the basis of prior violations; (b) the sample of outlets reflect the distribution of minors throughout the state where minors are likely to attempt to purchase cigarettes; (c) statistically sound sampling techniques are used in designing the survey;
and (d) DHFS stratify the sample of outlets to measure compliance by type of retail outlets,
including a private place of business other than a retail establishment, but not including a barroom.
Enrolled AB 133 requires that certain procedures be used in conducting unannounced investigations as part of a compliance survey. The enrolled bill specifies: (a) that no retailer may be subject to unannounced investigations more than twice annually for the purposes of enforcing the prohibition against the sale of tobacco products to minors unless the retailer is found to have violated the prohibition during each investigation; (b) the minor participating in the investigation must be supervised by an adult employe of a governmental regulatory authority and have written authorization to participate in the investigation from the governmental regulatory authority or district attorney; (c) if questioned about his or her age, the minor must state his or her true age; (d)
the minor participating in the investigation may not be a regular customer of the retail outlet being investigated; (e) the appearance of the minor may not be materially altered so as to indicate a greater age; (f) a photograph or videotape of the minor must be taken on the day of the unannounced investigation and kept until final disposition in a case; and (g) various periods for reporting the results of unannounced investigations for enforcement purposes.
Enrolled AB 133 would provide two exemptions to these provisions. First, none of these provisions would apply to compliance surveys and unannounced investigations conducted by the City of Madison, its health department or law enforcement agencies within the City of Madison.
Second, none of these provisions would apply to compliance surveys and unannounced investigations conducted by local units of government that have not entered into a contract with DHFS, to survey retailers' compliance with the prohibition to sell tobacco products to minors.
Information obtained from unannounced investigations conducted as part of these local efforts could not be used for enforcement proceedings against a retailer or be included in the limit on the number of unannounced investigations conducted annually.
The Governor's partial veto deletes the provisions which would provide an exemption from the new requirement for investigations conducted by the City of Madison, its health department or law enforcement agencies and investigations conducted by local units of government for survey purposes only. In addition, the Governor's partial veto deletes a provision which would require that certain information regarding the results of investigations be provided to DHFS.
Finally, the Governor's partial veto deletes the provision that would exclude barrooms from other private places of business, that would be subject to compliance surveys.
[Act 9 Vetoed Section: 2485j]
Page 11 of the PDF document
HUMAN RESOURCES Page 67
ITEM C-19. TOBACCO CONTROL BOARD
As passed by the Legislature, Assembly Bill 133 would create a Tobacco Control Board, attached to DHFS, that would develop and administer a state plan for a portion of the funds received under the tobacco settlement. The Governor's partial vetoes affect several provisions relating to the Tobacco Control Board, including: (a) program funding; (b) the amount of settlement revenue transferred to the segregated fund; (c) the composition and duties of the Board; and (d) a provision that directs DOA to study the feasibility of selling and transferring the state's rights to the settlement funds. These provisions are summarized below.
Program Funding. Enrolled AB 133 would have provided $2,492,000 SEG in 1999-00 and $23,500,000 SEG in 2000-01 to support the Board's operations, including 2.0 SEG positions,
beginning in 1999-00 ($400,000 annually) and grants distributed by the Board ($2,092,000 in 1999-
00 and $23,100,000 in 2000-01). The Governor's partial veto deletes the amount appropriated for the Board's operations in 1999-00 and inserts a lower amount ($200,000). In addition, the Governor's partial veto deletes the amount appropriated for grants in 2000-01 and inserts a lower amount ($20,808,000).
The Governor's partial vetoes do not affect provisions in Enrolled AB 133 that earmark a portion of the grant funding for specific projects. Consequently, the effect of the Governor's partial vetoes is to reduce funding for the Board's program operations by $200,000 in 1999-00 and reduce funding for grants that would be provided on a competitive basis by $2,292,000 in 2000-01.
The following table compares the program funding in the Enrolled AB 133 with the funding provided in Act 9.
Chg to Enr AB 133
GPR-REV $2,492,000
SEG-REV - $2,492,000
SEG - $2,492,000
Page 68 HUMAN RESOURCES
Enrolled AB 133 Act 9
1999-00 2000-01 1999-00 2000-01
State Operations $400,000 $400,000 $200,000 $400,000
Grants
UW Center for Tobacco Research $1,000,000 $1,000,000 $1,000,000 $1,000,000
Thomas T. Melvin Program 1,000,000 1,000,000 1,000,000 1,000,000
Youth Smokeless Tobacco Campaign 92,000 0 92,000 0
Medical College of Wisconsin 0 500,000 0 500,000
Competitive Grants 0 20,600,000 0 18,308,000
Subtotal $2,092,000 $23,100,000 $2,092,000 $20,808,000
Grand Total $2,492,000 $23,500,000 $2,292,000 $21,208,000
Transfers to the Segregated Fund.
Enrolled AB 133 would have transferred $2,492,000 in 1999-00 and $23,500,000 in 2000-01 and each subsequent year from moneys the state receives from the tobacco settlement to the segregated tobacco control fund. By deleting references to the $2,492,000 amount that would be transferred in 1999-00 and references to transfers in subsequent years, the Governor's partial veto creates a single transfer of $23,500,000 in 1999-00 from moneys the state receives from the tobacco settlement to the segregated tobacco control fund. This amount equals the total funding that would be budgeted from the fund to support the Board's expenditures in the 1999-01 biennium.Board Composition and Operations. Act 9 creates a Tobacco Control Board attached to DHFS for administrative purposes. As passed by the Legislature, DHFS would be required to submit to DOA the proposed budget for the Board exactly as it was prepared by the Board to the extent that it comports to DOA requirements.
As passed by the Legislature, the bill would have required the Board to consist of the following members: (a) the Attorney General or his or her designee; (b) one majority party senator, one minority party senator, one majority party representative to the Assembly and one minority party representative to the Assembly, appointed as are members of the standing committees in their respective houses; (c) the DHFS Secretary or his or her designee; (d) the Superintendent of the Department of Public Instruction; (e) one physician with expertise in oncology, cardiovascular disease, smoking cessation or public health; (f) one student from the University of Wisconsin System; (g) two high school students, including at least one minority student; (h) five representatives of organizations that have as their primary organizational mission reducing the health or economic consequences of tobacco use or ameliorating the effects of tobacco use and reducing the incidence of particular diseases or health conditions associated with tobacco use; (i) one local public health officer; (j) one person who is a minority group member; (k) one retailer who sells tobacco products; (l) one representative of a hospital.
Board members would have been appointed for staggered, three-year terms, except that if an appointed student member loses the status upon which the appointment is based, he or she would cease to be a member of the Board.
Enrolled AB 133 would have required the Board to meet at least four times per year. In addition, the bill would have specified that ten members constitute a quorum and, that for the purpose of conducting business and exercising its powers, a majority vote of the Board is required.
The Governor's partial veto deletes: (a) the provision that requires the DHFS Secretary to submit the Board's budget request exactly as it was prepared by the Board to the extent that it comports with DOA requirements; (b) all of the specifications relating to Board membership,
including the number of persons who would serve on the Board, qualifications for Board members and length of service on the Board; and (c) the Board's meeting procedures.
Board Duties. The enrolled bill would require the Board to do all of the following: (a)
appoint an executive director within the classified service with appropriate programmatic and technical expertise; (b) administer the grant program; (c) promulgate rules establishing criteria for grant recipients, including performance-based standards for grant recipients that propose to use the grant for media efforts, and to ensure that programs or projects conducted under the grants are culturally sensitive; (d) provide a forum for the discussion, development and recommendation of public policy alternatives in the field of smoking cessation and prevention; (e)
provide a clearinghouse of information on matters relating to tobacco issues and how they are being met in different places throughout the nation such that both lay and professional groups in the field of government, health care and education may have additional avenues for sharing experiences and interchanging ideas in the formulation of public policy on tobacco; and (f)
develop and prepare an annual plan regarding the allocation of funding for a statewide tobacco control program based on successful tobacco control programs in other states and based on recommendations of the U.S. Centers for Disease Control regarding the allocation of funding for comprehensive tobacco control programs.
The Governor's partial veto deletes the requirement that the Board's annual plan be based on successful tobacco control programs in other states and the recommendations of the U.S.
Centers for Disease Control regarding the allocation of funding for comprehensive tobacco control programs.
DOA Study. Enrolled AB 133 would have required DOA to study the idea of selling and transferring Wisconsin's rights to the tobacco settlement funds for the purpose of creating a permanent endowment fund and to submit the study to the Legislature by January 1, 2000. The Governor's partial veto deletes the January 1, 2000, deadline for the study.
[Act 9 Vetoed Sections: 30d, 172 (as it relates to 20.436(1)(tb) and (tc)), 717t, 2486g, 9101(20c)
and 9158(llmg)]
http://www.legis.state.wi.us/lfb/1999-01budgetdocuments/99-01Act9/tableofcontents.htm
http://www.legis.state.wi.us/lfb/1999-01budgetdocuments/99-01Act9/h&fs.pdf
HEALTH AND FAMILY SERVICES -- PUBLIC HEALTH Page 675
2.
WOMEN'S HEALTH [LFB Paper 500]Governor Jt. Finance/Leg.
(Chg. to Base) (Chg. to Gov) Net Change
GPR $1,200,000 - $1,066,000 $134,000
Governor:
Provide $600,000 annually to support women's health activities. Of this amount, $500,000 annually would be provided to establish a smoking prevention program for women and children. The remaining $100,000 annually would be available to support women's health projects, such as: (a) an LTE to provide administrative support to the women's health officer; (b) women's health conference expenses; and (c) a women's health hotline.Joint Finance/Legislature: Reduce funding by $540,000 in 1999-00 and $526,000 in 2000-01 to delete funding to establish a smoking prevention program for women and children
(-$500,000 annually) and reduce funding to support women's health projects (-$40,000 in 1999-00 and -$26,000 in 2000-01). The act would provide funding to support: (a) a half-time LTE position to provide administrative support to the women's health officer ($14,000 in 2000-01);
(b) women's health conference expenses ($10,000 annually); and (c) a women's health hotline
($50,000 annually).
3.
HIV/AIDS PROGRAM FUNDING [LFB Paper 501]Governor Jt. Finance Legislature
(Chg. to Base) (Chg. to Gov) (Chg. to JFC) Net Change
GPR - $447,900 - $473,900 $100,000
- $821,800Governor:
Delete $505,900 in 1999-00 and provide $58,000 in 2000-01 to reflect a reestimate of the amount of funding required to support the AIDS drug reimbursement program (ADRP) and the HIV/AIDS insurance program in the 1999-01 biennium.ADRP. Reduce funding for the ADRP by $178,700 in 1999-00 and increase funding by $179,500 in 2000-01 so that $409,600 GPR in 1999-00 and $767,800 GPR in 2000-01 would be budgeted for the program. The ADRP reimburses HIV positive individuals with income at or below 200% of the federal poverty level (FPL) for AIDS/HIV-related drug therapies. The program is also supported with federal Ryan White grant funds and rebates from drug manufacturers.
HIV/AIDS Insurance Program. Reduce funding by $327,200 in 1999-00 and $121,500 in 2000-
01 so that $664,300 in 1999-00 and $783,900 in 2000-01 would be budgeted for the program. This program subsidizes continuation group and individual health insurance premiums for individuals with income up to 300% of the FPL whose HIV infections prevent them from continuing to work.
Page 714 HEALTH AND FAMILY SERVICES -- PUBLIC HEALTH
39.
TOBACCO USE PREVENTION FUNDING [LFB Paper 455]Jt. Finance Legislature
(Chg. to Base) (Chg. to JFC) Net Change Funding Positions Funding Positions Funding Positions
SEG $2,492,000 2.00 - $2,492,000 - 2.00 $0 0.00
Joint Finance:
Provide $2,492,000 in 1999-00 and 2.0 SEG positions from the tobacco control fund to support: (a) DHFS surveillance activities and administration ($400,000 and 2.0 positions); (b) a grant for the UW Center for Tobacco Research and Intervention ($1,000,000); (c)increased funding for the Thomas T. Melvin tobacco prevention and education program
($1,000,000); and (d) a youth smokeless tobacco cessation and prevention campaign program
($92,000).
Assembly: Modify the Joint Finance provision by reducing funding budgeted in DHFS by $2,092,000 in 1999-00 and increasing funding budgeted in DHFS by $1,500,000 in 2000-01 to:
(a) delete all funding for programs supported from the new segregated fund in 1999-00, except for DHFS surveillance and administration activities; and (b) budget funding in 2000-01 for DHFS to support: (a) the UW Center for Tobacco Research ($500,000); (b) the Thomas T, Melvin tobacco prevention and education program ($500,000); and (c) a grant to the Medical College of Wisconsin to support smoking cessation and prevention activities ($500,000).
Senate/Legislature: Modify the Joint Finance provision by deleting all funding and positions budgeted in DHFS from the tobacco control fund to reflect that funding for these purposes would instead be administered by the Tobacco Control Board.
Additional information on this item is provided under "Tobacco Control Board."
http://www.legis.state.wi.us/lfb/1999-01budgetdocuments/99-01Act9/tableofcontents.htm
http://www.legis.state.wi.us/lfb/1999-01budgetdocuments/99-01Act9/tobaccocontolboard.pdf
This is the big document
http://www.execpc.com/~jlohman/wish.html
Thompson
received tobacco moneyMilwaukee Journal Sentinel
Thursday, November 28, 1996
By Daniel Bice and Amy Rinard of the Journal Sentinel staff
Madison -- Gov. Tommy Thompson, who waited five weeks before agreeing to have the state sue cigarette manufacturers, has received at least $55,000 in campaign contributions from tobacco companies and their affiliates since 1986, state records show.
Thompson
on Monday agreed to go along with Attorney General James Doyle's request to follow the lead of 19 states by suing tobacco companies for the costs of tobacco-related illnesses. The suit would accuse the companies of selling a product that has cost Wisconsin hundreds of millions of dollars in Medicaid claims for tobacco-related illnesses.Department of Justice officials met with Thompson's staff attorney on this issue repeatedly over the last five weeks. But the governor agreed to go along with the suit only after Doyle held two news conferences Monday urging him to do so.
That had a Doyle aide and others questioning whether Thompson's reluctance was related to the campaign contributions he has received from the industry.
Employees at Philip Morris have donated $4,430 to the governor's campaign coffers and the company's political action committee has given $3,250 since 1990, according to state records.
Philip Morris owns Miller Brewing Co. in Milwaukee. Miller employees have given $10,067 to Thompson over the past 10 years, and Miller's PAC has donated $11,000 since 1990. Much of the PAC money originated with Philip Morris' national
committee.
Thompson
also has received $2,500 from employees at R.J. Reynolds and $1,250 from those at the Tobacco Institute. Employees of Oscar Mayer, another Philip Morris subsidiary, gave him $22,570.Roger Bybee, spokesman for Wisconsin Citizen Action, a consumer and environmental advocacy group, said he believed the campaign contributions of tobacco companies kept the case from going to court earlier.
"Wisconsin certainly is a Johnny-come-lately to the lawsuit against the tobacco companies," Bybee said. "There's good reason to think all the campaign contributions from the tobacco companies to Gov. Thompson played a role in that."
He added, "Where there's tobacco money and tobacco smoke, there is fire."
James Haney, a spokesman for Doyle, said: "The governor's close relationship with the Philip Morris Co. could be part of this. It's not like he doesn't have connected friends."
But Kevin Keane, a spokesman for the governor, said the tobacco money had no impact on Thompson's consideration of the matter.
Keane said the governor's office had a number of questions that needed to be answered before moving forward. He added that Thompson approved the suit despite the tobacco contributions he has received.
No contributions from Philip Morris or other tobacco companies were found in a review of Doyle's campaign finance records.
But state Elections Board records show that partners in one of the law firms that Doyle hopes to hire as special counsel in the lawsuit have been contributors to Doyle's past campaigns.
Doyle recommended that the governor appoint two firms: Habush, Habush, Davis & Rottier, of Milwaukee, and Brennan, Steil, Basting & McDougall, of Janesville.
State records show that Robert Habush gave $500 to Doyle's campaign in 1994 and $250 earlier this year. Daniel Rottier contributed $120 last year.
The Habush firm is a leading member of the Wisconsin Academy of Trial Lawyers, which gave $4,000 to Doyle in his 1994 bid for re-election. The academy's executive director gave him an additional $525 that year, according to state records.
"Do they want to play politics, or are they really concerned about the impact of smoking on Wisconsin citizens?" Keane said. "You have to wonder whether this is a payoff to trial lawyers for funding Democrat campaigns."
Haney said the contributions played no part in Doyle's decision to recommend the Habush firm.
Haney said Doyle selected the firms primarily because of their expertise in the area and their willingness to absorb $1 million in costs yearly to work on the case. The firms would receive commissions of 10% to 25%, depending how quickly the case is settled.
Doyle chose the firms because they were so different from each other, Haney said. The Janesville firm specializes in corporate law and has strong ties to Republicans. One of its partners, George Steil, is Thompson's personal attorney.
Employees at the Janesville firm have given $10,200 to Thompson's campaign. Members of the Habush law firm have given him $8,150.
The academy contributed $375 to Thompson in 1991.
(c) Copyright 1996, the Milwaukee Journal Sentinel. All rights reserved.
Back to Wisconsin Tobacco Tax Page
Copyright (c) Madison Newspapers, Inc. 1997
Sunday, August 3, 1997
OPINION EDITORIAL
THOMPSON AND
PHILIP MORRIS CO.: TOO CLOSE FOR COMFORTOnce upon a time, when governors of Wisconsin received national attention, it was as bold reformers who set the highest ethical standards. While other states hid their collective heads in shame as their governors were called before grand juries and hounded from office beneath clouds of scandal, Wisconsin could point to Robert M. La Follette and Phillip La Follette and Gaylord Nelson and Warren Knowles as models for a nation sorely in need of political heroes.
But those days are gone.
Gone. Gone. Gone.
Witness the national attention paid last week to the revelation that Gov. Tommy Thompson's travels to Australia, South Africa and Europe were paid for by the Philip Morris Cos., Wisconsin's largest employer and a tobacco conglomerate. Headlines in newspapers across the nation announced: "Philip Morris paid for Wisconsin governor's trips."
And the stories that ran beneath those headlines contained the sort of details that no politician-and no state-should be associated with. Not only did the corporation funnel $16,000 through nonprofit groups to pay for Thompson's travels, not only did a Philip Morris lobbyist and top executives go along for the rides, but Thompson also collected $60,000 in campaign contributions from the company and its associates.
And what did Philip Morris get? While an alliance of Wisconsin health care groups is pushing for a 56-cent a pack increase in cigarette taxes, and even some conservative Republican legislators have embraced a 16-cent a pack increase, Thompson has suggested a 5-cent a pack tax hike would be just about right
. also dragged his heals when Attorney General James Doyle started making noises about suing the tobacco industry to recover medical expenses for tobacco-related illnesses. And when he finally did give something akin to serious backing to the suit, he went out of his way to personally call Philip Morris' chief executive officer, Geoffrey Bible, to inform him of the action-presumably hoping to maintain their cozy relationship.In his defense, Thompson says that he did not know Philip Morris was paying for his globe-trotting jaunts.
Fair enough. Let's accept the governor at his word.
Now that he does know that he has accepted gifts of significant value from a company that employs lobbyists in the state-a clear violation of Wisconsin's ethics law-why hasn't he moved to repay the money to Philip Morris? So far, Thompson has brushed off suggestions that he should abide by the ethics law, choosing to have his aides suggest that its regulations are vague regarding money that is funneled through nonprofit organizations.
Please!
This is precisely the sort of dodge that governors in other states used when they got caught red-handed. Not that many years ago, Wisconsinites used to be able to react to such a dodge by saying, "Thank goodness we live in a state where we have a tradition of clean and ethical government."
That tradition has been imperiled frequently by the Thompson administration's ethical missteps, but never so seriously as it is today.
Tommy Thompson likes to start his speeches by asking, "Isn't it great to be a Wisconsinite?" If his answer to that question is yes, then he should act as a Wisconsinite and return the tainted money to Philip Morris.
Capital Times (Madison, WI.)
December 14, 1996, Saturday, ALL EDITIONS
SECTION: Editorial, Pg. 13A
HEADLINE: SEND IN THE A TEAM
BODY:
Now this sure is a fancy dance step the governor is doing.
Attorney General Jim Doyle asks Gov. Tommy Thompson for permission to have the state of Wisconsin join 19 other states in suing tobacco companies.
At issue is whether those tobacco firms should have to reimburse the states for taxpayer dollars that went to provide health care for people suffering from tobacco-related illnesses.
Gov. Thompson tells the attorney general, sure, join the suit.
This was a bit of a surprise, because tobacco companies and their affiliates have contributed $ 55,000 to Thompson’s political campaigns over the years and because two major Wisconsin industries -- Miller Brewing and Oscar Mayer–are owned by tobacco giant Philip Morris.
Ah, but the dance wasn’t over.
Doyle had planned to have private law firms with expertise in this kind of case handle the suit. If the state wins, the law firms would get 25 percent of the settlement. If the state loses, they get nothing.
The American Cancer Society and other health groups, meanwhile, had pledged to raise the money to pay for three temporary positions in the Attorney General’s Office to help coordinate the suit.
Nothing doing, says the gov, backing away from his brief waltz with Doyle.
It’s not fair for the lawyers to get so much money, says the gov. File the suit and then see what kind of legal help you need, says the gov.
You can just imagine the smiles in the executive offices of the tobacco companies at that approach. It’s like saying you’ll send the Green Bay Packers into the Super Bowl, but you’ll suit up the front office staff for the big game.
Thompson
had no hesitation hiring outside counsel for cases he thought were vital for the state to win, like the school choice case. His message on the tobacco case is that it is clearly not important enough to him to go after the best legal representation possible–even though that representation comes at no cost to the taxpayers.Capital Times (Madison, WI.)
November 26, 1996, Tuesday, ALL EDITIONS
HEADLINE: DOYLE TO SUE TOBACCO FIRMS; AT STAKE: TAX MONEY SPENT ON SMOKING-LINKED ILLS
BYLINE: By David Callender The Capital Times
Wisconsin’s legal fight with the nation’s tobacco companies could begin sometime before Christmas, a state Justice Department officials says.
"We’re ready to file suit immediately," said Jim Haney, a spokesman for Attorney General Jim Doyle. "Once we get written authorization from the governor and the details are finalized, we can be in court immediately. We already have the complaint completely drafted."
On Monday, Gov. Tommy Thompson gave Doyle the go-ahead to proceed with a planned suit against the nation’s largest tobacco firms.
Doyle had to get the governor’s approval to sue to recover state Medicaid funds that paid for smoking-related illnesses.
The attorney general said during a press conference that the suit will claim that the tobacco industry has engaged in a "conspiracy to mislead, deceive and confuse" state residents about the health effects of tobacco use and the addictiveness of nicotine.
The state also will argue that the tobacco companies have illegally targeted children through deceptive and misleading advertising "in a concerted effort to hook and addict young people into being lifelong smokers," he said.
The suit will most likely be filed in Dane County Circuit Court, Haney said.
Every cigarette company doing business in the United States will be named as a defendant, he said.
The suit will seek to recover up to $ 112 million annually in Medicaid costs for medical care attributable to smoking, Doyle said.
Wisconsin will join nearly 20 other states that are suing cigarette manufacturers to recover Medicaid costs for smoking-related illnesses.
None of those cases has gone to trial. Earlier this year, the nation’s fifth-largest tobacco company, the Liggett Group, agreed to pay five states $ 10 million plus an additional 2.5 percent of its profits over the next 25 years. None of the other tobacco firms has settled.
Doyle stressed that Wisconsin taxpayers will not have to pay the costs of the suit. The American Cancer Society, the State Medical Society, Tobacco Free Wisconsin, and two lawyers in private practice in Wisconsin have agreed to assume the costs of filing the suit and pursuing it in court.
Thompson
press secretary Kevin Keane said the governor has not decided whether to allow two private personal injury lawyers, Robert Habush of Milwaukee and Thomas Basting Sr. of Janesville, to act as special counsel in the case.Keane said the governor would consider competitive bids before deciding whether to appoint special counsel.
Both lawyers mentioned by Doyle had agreed to accept the case on a contingency basis, which means they would get a portion of whatever money the state receives if it wins the suit.
The costs of the suit are expected to be enormous. In Minnesota, where Attorney General Hubert Humphrey III has filed a similar case, the Philip Morris tobacco firm is said to be spending $ 1.2 million a week to review and process documents in the case.
Doyle said smoking is the leading cause of preventable death in Wisconsin, killing more state residents annually than homicide, traffic accidents, suicides, drug abuse, alcohol and AIDS combined.
Lobbyist M. William Gerrard, a longtime friend of the governor who has represented Philip Morris for several years, attended Doyle’s press conference announcing the suit, but refused to speak to reporters.
The State Medical Society said it supported Doyle’s action.
"Tobacco-use is the single leading preventable cause of death in the U.S., "said Raymond Zastrow, a Milwaukee pathologist and chairman of the society’s board.
"It kills more than 400,000 Americans each year–more people each year than AIDS, car accidents, alcohol, homicides, illegal drugs, suicides and fires combined," Zastrow said.
The society estimates that more than 5 million packs of cigarettes were sold illegally to children in Wisconsin last year.
Dolly Colby, spokeswoman with Philip Morris Companies Inc., declined comment because no lawsuit had been filed. Philip Morris USA, the company’s subsidiary, is the largest producer of cigarettes in the country.
Philip Morris, R.J. Reynolds Tobacco USA, the Tobacco Institute, and the Smokeless Tobacco Council Inc., spent $ 272,377 lobbying on teen-smoking bills in Wisconsin in the first half of the year, according to reports filed with the state Ethics Board.
Philip Morris owns Miller Brewing Co. of Milwaukee, which has contributed $ 40 million to the Milwaukee Brewers for the right to name the ballclub’s new $250 million ballpark Miller Park. It also owns Kraft Foods Inc., which owns Madison-based Oscar Mayer and Medford, Wis.-based Kraft Pizza Co.
"If you don’t move on these lawsuits because of all of these interlocking corporate entities, you wouldn’t sue anybody," Doyle said.
NOTES:
This story was supplemented with an Associated Press report.
HEADLINE: DAIRY FARMERS' PROTEST IS GRIM
BYLINE: By Luke Timmerman The Capital Times
The dairy farmers' faces were grim, their eyes narrowly focused, and their words hard-edged.
Standing up to a cold wind, about 250 farmers from around the state picketed and heard speakers from farm organizations Friday afternoon outside the State Capitol.
They came hoisting signs with crossed red lines through Kraft's insignia, or ''No farms, no future,'' or ''Tommy is in bed with Kraft. ''
Behind the protest was a message to state government: Farmers want more regulation of the National Cheese Exchange.
In recent weeks, cheese prices have declined sharply by about 40 cents per pound. Right now, Wisconsin farmers are projected to lose $ 50 million in revenue because of the price drop.
Prices for milk produced by the farmers are closely linked to the cheese prices set by the exchange, which is located in Green Bay.
Jim Koch of the town of Dane said the price of milk was roughly $ 13 per 100 pounds in the 1970s, when a 100-horsepower tractor was around $ 10,000. Now, milk is again selling for $ 13 per 100 pounds and a similar tractor sells for $60,000.
''The general public is going to have to sit down and listen,'' Koch said. ''For the family farm, the profit margin is not there.''
It's little wonder, several farmers repeated, that Wisconsin loses an average of three family farms per day.
''We lost four neighbors this summer,'' said Jan Morrow of Bloomer. ''Even when the price of milk was up, we still lost four farms.''
Despite that, many farmers openly acknowledged the farm economy was in decent shape a month ago, with milk selling at an all-time high of around $ 17 per 100 pounds.
That's not the case anymore, farmers said, because of the influence of Kraft Inc. at the National Cheese Exchange. Since Oct. 18, cheddar cheese has dropped from $ 1.69 1/2 per pound to $ 1.30 per pound.
The farmers blame processors and marketers such as Kraft Foods for the problems they face. They contend that Kraft has intentionally sought to lower cheese and milk prices by dumping cheese on the Green Bay market.
Government regulators and farmers say no milk surplus exists that might have caused the decline.
''You've got a few traders on there who can manipulate the prices very strongly by moving a small amount of cheese,'' said John Paradies of the Upper Midwest Dairy Farmers. ''That's our basic problem. We've got to have a system based on supply and demand. Once that happens, we'll see a free market which will drive our price up.''
After the cheese drop, milk prices soon began to decline as well, selling at $ 13.80 per 100 pounds with futures bottoming out at $ 12.48 per 100 pound for delivery next February.
When cheese hit the record of $ 1.69 1/2 , farmers weren't grumbling.
''They were a record as far as the highest it's ever been, but my expenses are the highest they've ever been,'' said Randy Jasper, a dairy farmer from Muscoda.
''Nobody here is looking to get rich. They're trying to pay the bills and make a living. They can't even pay the bills.''
Gov. Tommy Thompson's press secretary, Kevin Keane, said Friday that the farmers' complaints should not be with the state government.
The governor's advisory task force on dairy issues will discuss the issues at a meeting on Nov. 14 at the Department of Agriculture, Trade and Consumer Protection building.
Keane said Thompson added two more farmers to the task force Friday, so that farmers hold seven of the 20 positions. Still, he said the task force is limited because the cheese exchange falls under federal, not state, regulations.
''The criticism of the governor is unfair,'' Keane said. ''It's very unfair. If you look at who's doing the most on this issue, it's the governor. The people who have the most ability to affect change are federal lawmakers.''
''The governor owns a farm and has had dairy herds himself,'' Keane said.
''He knows as well as the farmers do how dairy prices can affect a family farm.''
Art Wedig, a Lafayette County dairy farmer, said he has scaled his operation down from 170 cows to 70 cows in the past year and is considering getting out of the business.
''When you take a kick in the guts like this, I don't know what else to do,' 'he said while marching in a mock funeral procession around Capitol Square.
Although Darin Von Rudin, vice chairman of the Upper Midwest Dairy Farmers, admitted that carrying a coffin to symbolize the woes of dairy farmers looked like a publicity stunt, it carries some meaning.
''A lot of farmers have committed suicide over price drops,'' Von Rudin said.
''It's one of those things. They can't handle the pressure of economic loss.''
Copyright 1996 St. Louis Post-Dispatch, Inc.
St. Louis Post-Dispatch
June 6, 1996, Thursday, FIVE STAR LIFT Edition
SECTION: NEWS; Pg. 14A
HEADLINE: SMALL TAVERNS, STORES CALL FOR CARNAHAN TO VETO LIQUOR BILL
BYLINE: Terry Ganey Post-Dispatch Jefferson City Bureau Chief
DATELINE: JEFFERSON CITY
An organization of small St. Louis taverns and retail liquor stores wants Gov. Mel Carnahan to veto a bill that would allow some taverns in St. Louis to open at 8 a.m. on Sunday.
Matthew Miley, the president of the St. Louis Taverns and Independent Liquor Licensees, said the measure should be rejected because it would expand some tavern opening hours and allow 18-year-olds to sell packaged alcoholic beverages in liquor stores.
"Introducing 18-year-olds to alcohol by permitting them to rotate, stock , arrange and check out at the cash register is fraught with potential abuse," Miley said in a letter addressed to Carnahan. Chris Sifford, a spokesman for the governor, said Wednesday the letter had not been received and that the governor "has not found any reason to veto the bill."
"It's still under review," Sifford said.
The bill (SB933) would change several provisions of the state's liquor code. It would relax the law on what liquor and beer wholesalers could give to retail establishments to entice them to advertise the sale of their products. It would allow people between the ages of 18 and 21 to deliver liquor products and arrange them in stores, as well as sell them in liquor stores.
The law allows those 18 to 21 years of age to handle liquor products only if they work for a store that gets 50 percent of its income from the sale of food.
Sifford said grocers favored the bill and that the only other request for a veto had come from Wisconsin Gov. Tommy Thompson. Thompson has said the bill contains beer-labeling requirements that will force Miller Brewing Co. of Milwaukee to change the labels of some of its products.
Competition is behind some of Miley's opposition as well. He said the advertising and promotion language would discriminate against small retailers.
"This is a competitive market," Miley said. "Of course we have to be opposed to this."
His organization has about 105 members that are package-liquor stores and bars.
Miley said that allowing 18-year-olds to sell liquor products would lead to more teen-age drinking. "They are going to knowingly sell to their buddies," Miley said. "Certainly there are enough adults in Missouri that can handle these tasks without involving the young."
Miley said Carnahan's office should have his letter because it was hand-delivered by the organization's lobbyist, Paul Lewis.
The bill, sponsored by Sen. Bill McKenna, D-Barnhart, would allow bars and restaurants holding special liquor licenses in St. Louis to change opening hours to 8 a.m. from 11 a.m. on Sunday.
McKenna has said the change is designed to accommodate restaurants and taverns that want to attract customers on their way to St. Louis Rams football games.
February 20, 1996, Tuesday, ALL EDITIONS
SECTION: Local/State, Pg. 4A
BURKES CASE BACK TO MEDIATION
BYLINE: By Mike Miller The Capital Times
There has been yet another twist to the Marshall Burkes influence peddling case.
Rather than selecting a jury Monday, lawyers spent the entire day in a mediation session aimed at settling the case, which is now about 6 _
years old.
As the more than 100 jurors called for the case cooled their heels, and often grumbled their discontent, Dane County Circuit Judge Gerald Nichol attempted to win a settlement.
By day’s end there was no settlement, but Nichol had enough encouragement to determine to try again today. Jurors were told, at about 4:45 p.m., to go home and return on Wednesday.
Nichol, who tried to mediate the dispute last week, will conduct further sessions today. Dane County Circuit Judge P. Charles Jones is the judge for the trial–if there is one–but Nichol has had success in mediating other disputes and was using his expertise to try to settle the case.
Burkes is the ousted State Investment Board executive director who was fired in 1989. He claims he was fired because he took his concerns about the cozy relationship between lobbyist William Gerrard and members of the Thompson administration to the attorney general.
Gerrard was obtaining loans for his clients from the Investment Board at the same time Edward Hales, who was Gerrard’s attorney, was chairman of the board and longtime Gerrard friend James Klauser was a member of the board. Klauser is secretary of administration and Gov. Tommy Thompson’s key adviser.
The lawyers in the case had actually selected a jury last Monday, but on Tuesday morning four of those selected to serve said they would refuse to do so, citing hardships from four weeks of duty.
That forced Judge Jones to dismiss that panel and order a new group brought in Monday.
Those folks spent the day chatting with one another in the hallways and rooms set aside for their use.
---------------
Subject: Tobacco contribs to TT
Date: Fri, 12 Jan 2001 13:42:41 -0600
From: "Mike Buelow" <buelow@wisdc.org>
Wisconsin Democracy Campaign
16 N. Carroll, Ste 420
Madison, WI 53703
608/255-4260
www.wisdc.org
Here's the info we've worked up on TT and tobacco contribs.
Mike Buelow
Wisconsin Democracy Campaign
16 North Carroll Street · Suite 420 · Madison, WI 53703 · 608-255-4260
January 12, 2001
TOP LARGE INDIVIDUAL CONTRIBUTORS ($100 or more) IN THE TOBACCO INDUSTRY TO GOV. TOMMY THOMPSON
1993 – June 2000
| CONTRIBUTOR | CITY | STATE | EMPLOYER | Amount |
| Whist, Ulf A | New York | NY | Philip Morris | $6,950 |
| Nettum, George E | Viroqua | WI | Northern Tobacco Council | 300 |
| Kratovil, Edward D | Darien | CT | UST | 250 |
| Boman, Stan | Woodbridge | VA | Smokeless Tobacco Council | 250 |
| TOTAL | $7,750 |
TOTAL LARGE INDIVIDUAL CONTRIBUTIONS ($100 or more) FROM TOBACCO INDUSTRY EXECUTIVES (Grouped by Employer) TO GOV. TOMMY THOMPSON
1993 - June 2000
| EMPLOYER | AMOUNT |
| Philip Morris | $72,232 |
| Northern Tobacco Council | 300 |
| UST | 250 |
| Smokeless Tobacco Council | 250 |
| TOTAL | $73,032 |
* This total represents large individual contributions from Philip Morris and its subsidiaries. The breakdown is: Oscar Mayer Foods, $22,495; Miller Brewing, $20,942; Kraft Foods, $11,750; Miller Brands, $10,095; Philip Morris, $6,950.
TOTAL PAC CONTRIBUTIONS FROM THE TOBACCO INDUSTRY AND SUBSIDIARIES TO GOV. TOMMY THOMPSON
1993 - June 2000
| PAC NAME | AMOUNT |
| UST Executives Administrators and Managers | $11,000 |