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OCR Page 1 of 15OF
ATTORNEY
CITY OF LOS ANGELES
JAMES K. HAHN
CITY ATTORNEY
May 29, 1998
VIA FACSIMILE & U.S. MAIL
Bruce Reed
Assistant for Domestic Policy
1600 Pennsylvania Avenue, N.W.
Washington, D.C. 20500
Dear Mr. Reed:
I am writing to express my concern over the serious negative impacts that
the McCain tobacco bill would have on local governments. I am particularly interested in
the bill, since my office is co-counsel in pending tobacco litigation involving local
government prosecutors throughout California. It is my understanding that the
Administration was deeply involved in the negotiations that led up to the most recent
draft of the McCain bill.
First, the McCain bill would settle all local government lawsuits without
providing any compensation to local governments. Local governments have incurred
substantial tobacco related health care costs that are distinct from the costs incurred by
the States under the Medicaid program. Any comprehensive tobacco legislation which
settles local government claims should provide compensation for these costs. At a
minimum, those local governments that have sued the industry should be allowed to
share in the proceeds of the bill. Senator Feinstein has prepared an amendment (No.
2443) to the McCain bill that would accomplish this objective. On behalf of NACo, NLC,
the U.S. Conference of Mayors, and other local government representatives, we seek
the Administration's support for this amendment.
Second, under Title XIV of the McCain bill, local governments might have
been prevented from suing to enforce their laws relating to the future conduct of the
tobacco industry. This defect in the McCain bill would be cured if certain provisions
from the Gregg/Leahy amendment are incorporated in the final bill. Specifically, section
1408(c)(1) of the amendment prevents the preemption of claims based on future
conduct. In addition, section 1408(b)(4) of the amendment allows local governments
who have sued the industry to opt out of the legislation. Even if the Gregg/Leahy
amendment is not ultimately successful in eliminating all liability protections from the
1800 CITY HALL EAST
LOS ANGELES CA
90012
(213) 485-5408
FAX: (213) 680-3634
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