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[Tobacco] Bills

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Tobacco Tobacco bills Status of Tobacco Bill (green fite) June 17, 1998 McCain Manager's Where We Are Today Amendment Price Increase $1.10 over 5 years Unchanged Penalties: 1. Industry Industry penalties are based on Durbin amendment reduced the number of percentage points these penalties: $40 million for missed: $80 million the first five percentage points (1-5 points); $160 million (6-10 by which the industry misses the points); $240 million (11 points target, and $120 million for each or more). Penalties are capped point missed thereafter. at $4 billion. Penalties are capped at $2 billion. 2. Company Specific $1000 per teen by which the Durbin amendment increased company misses its youth these penalties: $80 million per smoking reduction target. This percentage point for the first 5 figure (which is equivalent to percentage points, and $24 about $64 million per million per percentage point percentage point) represents thereafter. This figure twice the forgone profits of represents approximately 2.5 hooking a teen. No cap on times the forgone profits for the penalties. first five percentage points, and about 7.5 times the forgone profits for the next 19 percentage points. Penalties are capped at $5 billion. Youth Smoking Reduction Reduces youth smoking by 60% Durbin amendment increased Targets over 10 years. targets to 67% over 10 years. Full FDA Authority Provides full authority in a Unchanged. separate title. Advertising and Access Codifies advertising and access Unchanged. Provisions provisions in the FDA rule and adds additional restrictions through a consent protocol. Protections of Tobacco Farmers Includes Sen. Ford's LEAF Act Bill now contains both the which includes compensation LEAF Act and Senator Lugar's (buyout and/or subsidies) for proposal to end the subsidy producers; continues a price program. Votes are likely to support program. occur to resolve this conflict.

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