Source: New York Times (NY)
Contact:  http://www.nytimes.com/
Pubdate: May 4, 1998
Author: Daivd E. Rosenbaum

WHO SAYS WHAT ABOUT A TOBACCO BILL

Tobacco legislation is now at the stage where the various sides are staking
out positions, and no consensus is in sight.

TOBACCO INDUSTRY

The cigarette manufacturers support the settlement they reached last June
with 40 state attorneys general.

Cost: Cigarette companies would agree to pay $368.5 billion over 25 years
and accept stiff restrictions on advertising. Cigarette prices would be
driven up about 60 cents a pack over five years.

Liability: In return, the industry would get immunity from class-action
lawsuits, a limit on punitive damages from actions in the past and a $5
billion annual ceiling on legal claims by individuals.

Regulation: The Food and Drug Administration’s authority to regulate
tobacco products would be enhanced.

Teen-age Smoking: The industry would have to pay up to $2 billion more a
year if the number of teen-agers who smoke did not fall to specified levels.

MCCAIN

A bill sponsored by Senator John McCain, Republican of Arizona, was
approved by the Senate Commerce Committee in April.

Cost: The industry would pay $516 billion over 25 years.  A pack of
cigarettes would rise about $1.10 over five years.

Liability: State lawsuits would be settled, and an annual ceiling of $6.5
billion would be set on private legal claims. But the industry would
receive no other protection from liability, and class-action suits would be
permitted.

Regulation: The F.D.A.'s authority over tobacco products would be
stiffened. Teen-age Smoking: Annual penalties for failing to meet the goals
could reach $3.5 billion.

Other Provisions: $28.5 billion over five years to assist tobacco farmers,
displaced workers and their communities.

CLINTON

Without endorsing any particular legislation, President Clinton says a
tobacco bill should include these elements:

Cost: An increase of at least $1.10 a pack over five years. The President
would spend the money on anti-smoking programs and health research but also
on such unrelated areas as child care and education.

Liability: Clinton says he would accept some form of immunity if it is
essential to getting legislation passed.

Regulation: Full authority for the F.D.A. to regulate tobacco products.

Teen-age Smoking: Stiffer penalties than in the McCain bill for not meeting
the targets, and other measures to prevent marketing cigarettes to children.

Other Provisions: Promotion of public health research and protection for
tobacco farmers.

OTHER DEMOCRATS

Most Democratic senators and many Democratic representatives endorse an
approach favored by C. Everett Koop, former Surgeon General, and David A.
Kessler, former Commissioner of Food and Drugs, the most outspoken public
health authorities on this issue.

Cost: Their legislation would drive up cigarette prices by $1.50 over three
years. The money would go to anti-smoking programs and other public health
activities.

Liability: State lawsuits would be settled. But the industry would be given
no protection from private lawsuits, and no annual limit on damage awards.

Regulation: Similar to the McCain bill.

Teen-age Smoking: Stiffer penalties than those in the McCain bill if annual
youth smoking goals were not met.

REPUBLICAN LEADERS

Speaker Newt Gingrich and Senator Trent Lott, the majority leader, have
offered no specific plan but say the Clinton and McCain approaches
represent a big-government solution to the problem of youth smoking. They
worry that legislation too tough on the industry would lead to a black
market in cigarettes.

Cost: The Republican leaders say any money from higher taxes on cigarettes
should be offset by tax cuts, probably related to health care costs.

Liability: Gingrich is opposed to giving the tobacco industry any relief
from lawsuits, including an annual ceiling on damages.

Teen-age Smoking: The Republicans argue that drug abuse is a more serious
problem than smoking and that tobacco legislation should be combined with
an anti-drug measure.