Tobacco Documents Online

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TOBACCO AND CQALITION' POLITICS IN THE 1980''s A Proposal Efforts to reaulate use of tobacco will undoubtedl,)", continue' at the inertia behind the movement to restrict tobacco use 4till probably no . ~r ,,nationwide Libertaria:m Party offers some hope for the future; but 'th,e, election of many political conservatives;and the emergence.of.a: state and local level during the next several years. The'recent abate in the near-term future. ' . ,_ political animosity to tobacco makes increased taxation a rea In addition to 'the regulation of tobacco use, the large:;bloc of Additionallv, the possibiLitSl of additional ballot nropositions cannot- state legislatures and local governments in both of these;areas.' We believe major legislative efforts will be mounted in 1981 in-many possibility in many states. De ignored. What can the tobacco industry implications of these trends? The industry has -traditionally fought excessive regulat.ion 'and {, anta o istic ba11ot ro ositions , past, three years, by funding political campaigns to.~:oppose,; taxation through governmental advocacy (lobbying);~and, du:ing the,., should~be continued. However, we also believe"traditional lobbying Aw and campaign financing may be in~sufficient to cope effective?y with We believe both of these methods remain valid for the industry, an ,. ~ . . . .~ .... . Y~' \ 'ii the size and nature of the problem~. = The most 'vital element of long-term political survival is co:.litiori`'~.' decision-makers (voters or.office holders) is the only final guarantor Strong alliances of sufficient breadth to influenca_ a majority of° or success. ihis is a particul'ar problem for the industry in states like California: • Enactment of strict restraints on property taxes as a sou'rce new revenue an'd' the political reluctance to incr-,se income taxCa:: ' makes user taxes -- such as on tobacco productc - a very it;vit ing alternative for 1a~1 .miaF;ers, Relatively few jobs (i) e. ,votcrs) are depenc:~~nt on viabil.i-_• . th;~

And the corollary question: T h e * is `r:a ~: ~~~ion of tobacco i r. the state. Gro%,r,in,g' an' manuf cturinc_ liave played no part in the history of the state; and, because California is primarily a product of the post-Civil L•lar erW`, there is no hist-orical perspective of tobacco as a vital trac:ir~~q~ partncr. ,~.~~1 Ca2iformia is:,most certainly the "health-nut capital of the ;. wo`rlG:" Even `the suggestion that tobacco use by so;ae persons may' ',;,„be'delet'erious to their health is sufficient reason for xtremists to clamor for regulation --, or , at least try te taiscouraae tcbacco use by placing punitive tGxes on~'consumers. In sumr ary', there is only a shallow natural basis for poli.tical alliance,'coupled with a political environment which is conducive to regulating and taxing, tobacco use. Developing a broad-and~ effective coalition of persons and groups opposed to'excessive regulation and taxation of tobacco is an ; important ingredient for political viability in states like California during the 1980's. The Potential for Effective Coalition The Proposition 10 campaign demonstrates that a'credible'coalition can.' be generated for a crisis response to a specific regulatory proposal. But, in terms of long-term success,-some questions need be examined: ,,e:.1.,_. Can~ the allian(;e be made to be an independently effective` well as credible) means of persuading decision makers? Can the alliance be maintained on'an on-going basis,' a reactionary basis? ,~ . ~. . . . ... . . .. . ~:. . . -.., . . .. ~ .,. . ~ „ .,f - If on-going mechanisms for dialog between members of the`` coalition~ are developed, can it be realisticaily,expected;.that' an effective coalition can be reassembled each~time a political crisis emerges? ;; Based on our experiences in the Proposition 10 campaign and,ou~r combined political experiences in the state, we believe the coalition can be maintained, strengthened'and activated in an effective manner.` But an efifective coalition is dependent on sincere, demonstrated leadership and support fromithe tobacco industry. ; Q3Q18921 Developr;,ent of the 1980 coalition was significantly affected by the fLilure to maintain communications with the broad range of persor's and groups who helped in the 1978 No on Proposition 5 campaign. Goodwill and cooperation, have their limits. If no on-going mechanisr.: for

co:,1r.nI ;.ca ion ~~n« ,qutu~T assistance is developed;' we'doubt tl;' credible nd effectZVe `u~ ~ liances can be mounted in the future, `t o `nrose dama5ing IcgislUtion or ballot proposais. The Nature of Alli:ance Po] :tica1`J dynamicsreflect the personal dynamics of the humans who`' _ , crcute,~'thi's':.social institution. There are no magic formulGs for``; success.' ':To the contrary, the best way to understand arid use political action to maximum advantage is to understand the nature o rclGtronships between individuals.' Good political alliances combine the attributes`of persona friendships and partnerships. ' As in a partnership, ;there mu'st ~be`" opportunity for both parties to share equitably in the rewards'of a' a"" ventiare; "and, if you want to have friends, you have to be a friend. = Members of~'an allied political coalition must find ways to be'of help to one another, without expressly defined limits on the'.assistance to be offered.As in good friendships, there must also be frequent opportunities for candid dialog -- a sharing of insights, aspirations and frustrations. , The partnership aspect of alliance also needs care. '::,If there js no tangible profit (though not necessarily monetary) from participation;: no depth of commitment c•rill,exist.'The coal ition participants who are. not dedicated will not be effective; and, eventually the alliance will. collapse from neglect. These, then, are the elements needed for the tobacco industry to create a manageable and effective coalition of political alliances in California, on whose assistance the industry can rely in.the important years ahead: Identification of the individuals and groups who can be most effective at political persuasion by nature of their political. "sex I appeal" (police, etc.); their appeal to, and credibility with,"news agencies (civil libertarians,.minority groups,•' 'feminists,`etc.); their geographical dispersion and proclivity to initiate communication (Libertarian Party activists, etc.) Definition' of the agenda of issues to which the coalition`will' confine itself. The agenda must be such that no item inherently. conflicts with any other item. There must be some tangible reward for each coalition member somewhere within the agenda. t•'o item on the agenda can~be at odds with the goals or image of the tobacco industry or any other coalition member. , , Q3018~~ =- Creation of a workable organizational structure and methods of , communication between the mer,bers.

vEVelopment of a' meant:, of assuri~nr, ir.c?ustr~~ control o~•er`t .4 - content, timinc~` and forum of actions by the coalitiongroupL. .~.. . It is our.telief that the latter element is critical for'the'industry Although dE-monstrating leadership by creating the coalition will help ill' control, 'the only effective assurance of control w xesult establish from ~~~,], control. The Golden Rule of Politics .is: ~".He. who has - . ; - : .. the Gold makes the Rules." What Would The Oraanization~Do? It"must be remembered that the primary reason for the coalition is to ;i;maintain an' effective alliance as a reserve force to.fight emerging proposals for excessive regulation or taxation. _,. But ..the dynamics of maintaining the alliance require that''a constructive-program of activity and communication are necessary. .Additionally, if the alliance is to achieve credibility as an organizational entity, there must be contact with the media, the public and elected officials at times other than during political crises. The dnifying theme of organizational activity should beto educate the general public, the media and elected officials on,the hazards of excessive governmental regulation. This can be accomplished through researching and exposing examples of such excess in rational and'~ ls' well-documented formats. Additionally, selected legislative proposa can be examined and supported or opposed based on the extent to;;:which the proposal discourages or promotes excessive regulation. At all times, the organization should attempt to broade'n-::its :membership,- develop mailing lists and affirm sympathetic_;contacts within the news media and'decision makers. r1akin We propose that the Tobacco Institute or itss individual member ,;. companies help activate a protective coalition of political allies in~~ California by funding an effort to: Create a new,'.tax-ded'uctible, non-profit corporation successor to the;existing CARE organization; ~ ,. Maintain most"•existing members of the CARE Board of Directors and expand the Board to include members from organized labor, Democratic Party leadership, the manufacturing industry and small business groups; Develop a program for mutual assistance for members's legis- lative and public relations objectives, in accordance with the group' s charter; 0301-8:023 Retain Robert Nelson & Assnciates.as developers'of. and counselors to, the new group.

, ~ a , ~. . . ... , .. I .7,, ti noseci 1981 Californi.a Coalition nudcet ~_. . .. - .. .Boatd riember. Quarterly Per Diem Fcen A,(15 members x 4 meetings @$150) 9,0010.00 Aevelopment; Consultation, Supervision by '' P.obert rdelson & Associates (12 months @ $7,500/nonth) 90,000.00 .' Executive Director Salary (and payroll- ~ related costs) "($2,500/month + $500/month related costs) 36,0001.00 „ , . . . . .. . . . . ,., '.. -~ :.' . .., .. : .. -. .. ..,., - ; - . ..,.. , .. . . ._ . ,.. . Research Consultants (300 hours @ $25/hour) t 7,500.00 ., Legal and Accounting Fees . (12 months @ $750/month) ; 9,000.00 . Ne%,rs Releases (10 x 1000 @ $0.40) 4,000.0:0 .. Direct t•iail, Printing, etc. 12,000:00 8. i•Iiscellaneous Office Expense (12 months @ $750/month~) 9,000.00 . Travel (Staff, board members, speakers) (12 months @ $1,500/month) TOTAL $194,500.00 O 1w w 67 , I 4 r 3 I ,,; =,..: ~. v...Ai~