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Davidoff
August 1998
Volume 25
Number 4

Find a Tobacconist near you!
NATIONAL TOBACCO SETTLEMENT UNRAVELS AT THE SEAMS
by Craig Diamond

June 17 marked the death knell for the chances of passing tobacco legislation in 1998, as S1415, cited as the "Universal Tobacco Settlement Act," was killed by the Senate after a month of debate. The tobacco bill was finally set aside after supporters could not win enough votes to cut off the debate and move the legislation to a final vote. As a final blow, the Senate then voted to send the bill back to the Commerce Committee. With that went almost any hope of the bill being revived this year.

The Senate Commerce Committee passed the proposed tobacco bill by a margin of 19-1 on April 1. The bill, drafted by Committee chairman John McCain (R-Ariz.), effectively replaced the settlement the tobacco industry reached with state attorneys general last June and laid the framework for the country's first comprehensive tobacco legislation.

Upon its passing, the bill received opposition from various factions. Lawmakers from all sides voiced complaints that the proposed bill was either too tough or not tough enough. Most Republicans were opposed to the tax increase and new regulatory powers given to the government. Most vocal were House Speaker Newt Gingrich, who called the bill a "a very liberal, big government, big bureaucracy bill" and Senator Trent Lott (R-Miss.), the majority leader, who called it a "big spending bill." Also, in response to the bill, the tobacco companies, led by RJR Nabisco Holdings Corp.'s chief executive Steven Goldstone, decided they would no longer take part in any efforts to draft tobacco legislation and started a national advertising campaign against the McCain bill.

On May 18, the bill was brought to the Senate floor for a vote. What ensued was several weeks of debate, mostly over issues that had little to do with the core ideas originally cited for creating legislation; mainly, reducing teen smoking, restricting tobacco company advertising, and creating smoking cessation and health care programs. Debates over items such as reducing the "marriage penalty" on income taxes, limiting attorney's fees, and plans to aid tobacco farmers resulted in amendments being added to the bill, but brought the Senate no closer to an actual vote.

Throughout the debates, a deep partisan divide developed. Republicans complained that the legislation was a "tax-and-spend, big-government approach" to the problem of teenage smoking. Democrats argued that the bill was the most important public health measure to come before Congress in years. President Clinton, a staunch supporter of tough, bipartisan tobacco legislation, continually urged the Senate to pass the bill.

Supporters of the bill, mostly Democrats, tried several times to cut off debate on the legislation by invoking cloture motions, a procedural move used to push the bill to a final vote, but were unsuccessful. Their efforts were defeated as they were continually unable to get the 60 votes needed for approval. Republicans voted solidly against cloture motions, considering them challenges to the Republican leadership.

Finally, Republican opponents of the bill managed first to defeat a proposal to end debate on the measure and then sent the bill back to committee for further consideration. Lott, who orchestrated the two votes, said he was not necessarily hostile to the principle of a national tobacco settlement but felt that the measure under consideration had become too big and unwieldy. He also expressed his frustration with the time spent on the tobacco bill as other bills stacked up behind it.

For now tobacco legislation is dead. There will be no immediate increase in cigarette prices and the tobacco industry will now face a flood of legal battles and pending lawsuits from state to state. President Clinton has placed the blame for the bill's defeat on Republicans. Democrats vowed to keep fighting for legislation, attempting to attach anti-smoking provisions to other bills being considered this year, and will probably use the failure to create tobacco legislation as an election issue this fall.

Going forward, a number of lawmakers have stated they will offer alternative or slimmed-down tobacco bills this year. House Republicans, led by Representative Deborah Pryce of Ohio, proposed a plan involving an antitobacco ad campaign. Also, tobacco companies are once again talking with state attorneys general to reach a new accord. The new settlement would differ from last June's proposal because it would include no Federal components such as regulating nicotine or providing relief from lawsuits brought by smokers or insurers. The only thing that remains for sure is that reaching any deal or crafting any new legislation is going to be a hard-fought and complex process.


SMOKESHOP - August 98

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