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OCR Page 1 of 25From: Mary Aronson To: Bruce Reed
Date: 9/26/97 Time: 6:28:02 PM
Page 1 of 1
ARONSON WASHINGTON RESEARCH
Mary Aronson
202-291-0654
To:
Tobacco Analyst, Portfolio Manager, Research Director
From: Mary Aronson
Date:
September 25, 1997
Re:
Shalala Testifies before Senate Labor & Human Resources Committee
Secretary of Health and Human Services Donna Shalala told members of the Senate Labor and
Human Resources Committee yesterday that the five goals President Clinton enumerated last week
were the core elements of a tobacco settlement and would have to be included in any legislation
before the Administration would consider industry immunity.
The five goals included:
a comprehensive plan for combating teen smoking, including tough penalties against the
industry if established targets are missed;
full FDA authority to regulate tobacco similar to that which it has over drugs or devices;
new business practices for the tobacco industry, including broad disclosure of industry
documents;
progress toward public health goals, including second-hand smoke, tobacco-cessation
programs, international control efforts and research; and
protection for tobacco farmers and their communities.
When some members of the committee expressed disappointment that the president had failed to
send draft legislation to the Hill, Shalala emphasized the Administration's interest in working closely with
congress in writing a bill. Translated from Washington-speak, this suggests that the tobacco
settlement is such a political hot potato that neither branch of government wants to be caught holding
the bag if whatever is developed backfires.
During the course of the three hour session, panel members peppered Shalala with questions about
other issues which were not identified by the president in his long-awaited speech. These concerns
included reimbursement for Medicare tobacco expenditures, whether to maintain the tobacco price
support program, attorneys' fees, and more. Shalala's responses alternated between stressing that the
Administration's primary emphasis was protection of teens, and assuring members that the White
House would be happy to work with congress on other provisions once Clinton's goals were nailed
down. However, the vast number of additional concerns identified by various senators throughout the
three hour hearing suggests that the settlement may become so bogged down with special interests,
that it is likely to stall. In such a situation, the easiest solution might be the passage of a measure
everyone can agree to legislation to protect kids -- and not much more. (See AWR, 9/21/97.)
Should a kids-only bill be enacted, the Administration likely will push to have the power of administering
the program in the FDA. When questioned by one senator about the wisdom of vesting all the power of
a tobacco program with that agency, Shalala emphasized that smoking was a public health problem,
and that the FDA, as the primary governmental health and safety agency, should justifiably be in
charge.
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