Extracted text

OCR Page 1 of 56
02/11/98 13:43 202 347 9881 BLOOMBERG/CONUS 001 Cc: Bruce +discand To Elena 456-5542 Conrad Tobacco Bill Denies Industry Lawsuit Shield (Updatel) TOBACCO- Connad bill (Adds Haas quote in 5th paragraph) Washington, Feb. 10 (Bloomberg) -- Vice President Al Gore will join Senate Democrats tomorrow to rally around legislation that would give the federal government authority to regulate tobacco and boost the price of cigarettes by $1.50 per pack in three years, without giving companies protection from lawsuits. The legislation was drafted by a Democratic task force headed by North Dakota Sen. Kent Conrad. Gore will praise Democrats for producing a bill that addresses U.S. President Bill Clinton's priorities for comprehensive tobacco legislation, while stopping short of embracing Conrad's bill as the vehicle the administration wants to enact into law. The vice president's participation in the press conference is an indication that we think this is a strong bill, said Elena Kagan, deputy domestic policy adviser to Clinton. This is not an indication that this is the only bill or our bill. Clinton says he wants national legislation that builds on the $368.5 billion settlement the industry and its foes reached last June. Specifically, Clinton wants money for teen anti- smoking programs, an increase in the per-pack cost of cigarettes, Food and Drug Administration authority to regulate tobacco and limits on cigarette advertising. We will support the Conrad bill just as we would any other legislation that addresses those goals, said Lawrence Haas, Gore's communications director. Administration aides say Clinton is willing to give companies some protection from lawsuits as part of such legislation. Gore's move engages the administration, said Ethan Siegal, president of the Washington Exchange, which provides analysis on federal policy for institutional investors. This doesn't commit the administration to every detail on the bill, but it does allow the administration to say they are behind a comprehensive effort. Lawsuit Protections Yet to be seen is whether the industry ultimately will get the legal protections it seeks, Siegal said. Can the political establishment afford, and do they have the courage, to back immunity, given the growing public sentiment against it? The answer is, it is not impossible, but it will be extremely difficult, he said. Conrad will go before the Democratic caucus today to ask for support for the measure, which has the tentative backing of Massachusetts Sen. Edward Kennedy. Many Democrats look to Kennedy for guidance on the issue because he has long been a champion of public health concerns. Conrad's plan to unveil the legislation tomorrow was reported by the Washington Post. Conrad's bill would settle government lawsuits against cigarette makers, as would the national settlement agreed to on June 20 by the major tobacco companies and 40 states.