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Anne Landman's Collection

California Initiative

Date: 12 Jan 1994
Length: 1 page
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Abstract

This short Philip Morris (PM) memo written by Ellen Merlo (Senior Vice President of Corporate Affairs) in 1994 shows how the cigarette company abuses state legislative processes. The memo describes strategies the cigarette company used to combat local smoking restrictions and increased cigarette taxes (Proposition 99) in California in 1994. One strategy was to "create a flurry of legislative activity to confound the antis by introducing various bills and measures to put them on the defensive..."

This indicates that Philip Morris will tie up entire state legislatures with essentially meaningless bills aimed solely at antagonizing public health advocates (the "anti's"). It also indicates the company's ability to introduce legislation at will, showing how the company wields far more power than citizens.

This memo was circulated to executives at the highest levels of Philip Morris.

Fields

Notes

Thanks to Dr. Richard Hurt for information on this memo.

Quotes

PHILIP MORRIS USA

TO: Geoff Bible FROM: Ellen Merlo SUBJECT: Califomia Initiative

INTER-OFFICE CORRESPONDENCE 20 PARK AVENUE, NEW YORK NY 10017-5592

DATE: January 12, 1994

As requested, here is a summation of the steps that we will take in California over the next several weeks in order to achieve state-wide preemption with accommodation for smokers.

1. We will file a lawsuit on February 1st against the City of San Francisco over the jurisdictional issue of whether or not the City has the authority to ban workplace smoking. We will be a co-plaintiff along with local business people in this lawsuit and based on precedent and legal advice, we think we have an excellent chance of prevailing.

2. At the state level, we will create a flurry of legislative activity to confound the antis by introducing various bills and measures to put them on the defensive, including asking for an audit of the Proposition 99 trust fund, an investigation of political abuses of the Proposition 99 fund and a resolution to ask U.S. OSHA to establish Indoor Air Quality Standards within the state.

3. We will create the same level of local activity in cities like Anaheim, South San Francisco, Stockton, Palm Desert, Rancho Mirage, etc. by introducing smoking accommodation bills.

4. Finally, on or about January 17th, we will file a ballot initiative seeking a State preemption bill that provides for smoker accommodation. The Initiative will be filed by three independent business and/or association members. Simultaneous with our filing of the ballot initiative, we will conduct additional polling to ensure that we thoroughly probe voter reaction to this bill, which preliminary polling indicates we have a very good chance of winning.

We will be tracking progress and updating the status of our polling results, as well as any feedback from legislative leadership, as we move through the initiative process.

If at any time during the process we 1) have the opportunity to reach a negotiated settlement through the Legislature for preemption and accommodation, we will do so; and 2) before we submit all signatures to move ahead with the ballot initiative, we will review and evaluate our chances for victory in light of the most current information obtainable.

You will be getting weekly updates as soon as we actually file the Initiative.

CC: M. Bring W. Campbell C. Fuller D. Laufer S. Parrish

Company
Philip Morris
Author
Merlo, Ellen (PM Corp. Affairs VP)
Marketing Services prior to 1986. Understood use of nicotine addiction in selling PM products.
Recipient
Bible, Geoffrey C. (PM President & CEO (1994-2002))
After a long career with Philip Morris, the Australian-born Bible served as the company's CEO from 1994 until he reached the company's mandatory retirement age in 2002.
Region
United States
California
Type
MEMO, MEMORANDUM
Litigation
Stmn/Produced
Named Person
Bring, Murray H. (PM Attorney, Sr. VP & Counsel, Board of Directors)
Senior Vice President and General Counsel of PM, 1994; former partner of Arnold & Porter in Washington, D.C. Defended PM in the Cipollone case.
Campbell, William Ian (PM, CEO and President, 1986, & 1991-95)
VP of PM Inc. from 1984 to 1985. President and CEO of PM in 1986 and then again from 1991 to 1995. He was on the Board of Directors for Philip Morris, Inc. from 1986 to 1987 and then again from 1992 to 1995. He stated, "I believe that nicotine is not addictive, yes."
Fuller, Craig L. (Sr. V.P. Corporate Affairs for PM, 1994)
He was Philip Morris' top spokesman in 1994. (WSJ 6-3-94) He was a Philip Morris Vice President. (PMI's Introduction to Privilege Log and Glossary of Names, Estate of Burl Butler v. PMI, et al, April 19, 1996)
Laufer, David (PM Regional Dir. of Gov't Affairs '93-94,)
Philip Morris 1993-94- Regional Director, Government Affairs 1995-96 - Communications Director 1997-99 (current?) Vice President, State Government Affairs
Parrish, Steven C. (PM, Sr. VP, General Counsel)
Partner of industry law firm Shook Hardy and Bacon before going to work for PM. Was VP of PM Corporate Scientific Affairs in 1990. Defends PM on television.
Operation/Project
California Local Referenda Program (Tobacco Institute program to defeat smoking bans in Calif.)
A strategic program developed by R. MacAdam, Vice President of the Tobacco Institute in Washington, D.C., in 1991 to defeat a wave of local smoking bans being enacted at the city and county levels within the state of California.
Named Organization
City of San Francisco
Occupational Safety and Health Administration (Held hearings in 1994 to ban smoking in workplaces)
OSHA opened hearings in September 1994 on a proposal that amounts to a virtual ban on smoking in every workplace in the nation
PM, Philip Morris
Subject
Legislatures
Corporate strategy
legislation
smoking restriction
taxation

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Page 1: qlo44e00
~., PHILIP MORRIS USA TO: Geoff Bible FROM: Ellen Merlo S U BJ E CT: California Initiative m _JSA ~ INTER-OFFICE CORRE SPONDENCE 120 PARK AVENUE, NEW YORK, NY 10017-5592 DATE: January 12, 1994 As requested, here is a summation of the steps that we will take in California over the next several weeks in order to achieve state-wide preemption with accommodation for smokers. 1. We will file a lawsuit on February 1st against the City of San Francisco over the jurisdictional issue of whether or not the City has the authority to ban workplace smoking. We will be a co-plaintiff along with local business people in this lawsuit and based on precedent and legal advice, we think we have an excellent chance of prevailing. 2. At the state level, we will create a flurry of legislative activity to confound the antis by introducing various bills and measures to put them on the defensive, including asking for an audit of the Proposition 99 trust fund, an investigation of political abuses of the Proposition 99 fund and a resolution to ask U.S. OSHA to establish Indoor Air Quality Standards within the state. 3. We will create the same level of local activity in cities like Anaheim, South San Francisco, Stockton, Palm Desert, Rancho Mirage, etc. by introducing smoking accommodation bills. 4. Finally, on or about January 17th, we will file a ballot initiative seeking a state preemption bill that provides for smoker accommodation. The Initiative will be filed by three independent business and/or association members. Simultaneous with our filing of the ballot initiative, we will conduct additional polling to ensure that we thoroughly probe voter reaction to this bill, which preliminary polling indicates we have a very good chance of winning. We will be tracking progress and updating the status of our polling results, as well as any feedback from legislative leadership, as we move through the initiative process. If at any time during the process we 1) have the opportunity to reach a negotiated settlement through the Legislature for preemption and accommodation, we will do so; and 2) before we submit all signatures to move ahead with the ballot initiative, we will review and evaluate our chances for victory in light of the most current information obtainable. You will be getting weekly updates as soon as we actually file the Initiative. EM/kak cc M. Bring W. Campbell C. Fuller D. Laufer S. Parrish N 0 N N m ~ ~ w C1T

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