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OCR Page 1 of 5602/11/98
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.
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