Status and Campaign Plan for Tobacco Tax Initiative.

Anne Landman's Collection

Status and Campaign Plan for Tobacco Tax Initiative.

Date: 24 Sep 1987
Length: 18 pages
506609215-506609232
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Abstract

This document from the R.J. Reynolds site, Status and Campaign Plan for Tobacco Tax Initiative, is a detailed description of the tobacco industry's game-plan to scuttle citizen-led ballot initiatives. We see here that the tobacco industry and the firms it hires to defeat initiatives go far beyond simply lobbying for their own side. They work behind the scenes to undermine support already won for the initiative by the proponents. They threaten groups that support the initiative financially (for example, here they threatened the California Medical Association by telling them they would push 'anti-medicine' legislation if they backed the initiative), they intimidate legislators by letting them know that getting behind the initiative could damage their future political future. They tie up professional signature-gathering firms with other business to keep the proponents from retaining their services. They employ lawyers to seek out ways to legally harass nonprofit organizations, threaten their charitable status, and make them expend their resources on work that is unrelated to their missions, and more.

This document gives tremendous insight into how the tobacco industry and its operatives interfere with the democratic system.

Fields

Quotes

I. SUMMARY OF ACTIVITIES TO DATE

The initial effort in regard to this issue was the defeat of ACA 14 and the 'trailer' bill, AB 2408, before the Assembly Revenue and Taxation Committee...[This was a bill in California to increase the tobacco tax]. Our major goal of weakening potential support and showing strong pposition was certainly accomplished. The California Medical Association was shocked that their intense lobbying effort could not receive one 'aye' vote in the Committee, considering their campaign support for the members of the Revenue and Taxation Committee (Organized Medicine - $80,300 vs. TI - $17,750 during 1986)....

...Even if unsuccessful, the relatively small amount of resources expended...to keep the initiative off the ballot would place the industry miles ahead for the general campaign. This unique and innovative approach of actively fighting to keep an initiative off the ballot would only reinforce to the potential anti-tobacco forces that it will always be a long and grueling battle when you take on tobacco.

...Recognizing that the most effective approach to any such battle is to contain and, if possible, take away potential resources from the proponents, our initial goal was to contain the California Medical Association, who had already pledged $1 million to qualify the initiative. With this kind of resources, there is no way the initiative could be kept off the ballot. A game plan was formulated to discourage and keep the CMA out of the initiative. This included possible counter anti-medicine initiatives and legislation as well as the use of A-K's considerable contacts within organized medicine. ...We turned our attention almost full time to dissuading CMA from joining the fray...

We were immensely successful in this regard. CMA, after considerable pressure, decided to 'tokenize' the tax initiative campaign with, at best, a $25,000 contribution...To date, the CMA has not actually given the proponents any campaign money. The decision was made that no punitive actions would be taken in regard to anti-medicine initiatives or legislation as long as the CMA maintained this non-participatory attitude toward the tobacco tax initiative...

...When the CMA bowed out of the initiative, the proponents were placed in a very tenuous position. They had counted on CMA's publicly pledged $1 million to qualify the initiative...After re-grouping, the proponents began seeking other sources of funding....[and approached] the Hayden/Fonda machine and organized labor. Recognizing the need to keep informed of liberal activities from an intelligence point of view and to be in a position to dissuade the typical liberal sources of funding to stay out of this initiative, we built a campaign team that not only is extremely talented, experienced and effective, but has great liberal credentials. Following are our major activities in this area:

--Privately approached Hayden/Fonda through...our polling firm. Hayden owes Conelly, who was a major supporter of the Toxics Initiative and a heavy contributor. To date we have been successful in convincing Hayden that there is little advantage to him personally or politically to get involved in the Conelly tobacco tax initiative...

--Paul Kinney, who is assisting us in the overall campaign...has a professional and personal relationship with Conelly's Chief of Staff. Through their relationship, Paul has been able to pick up invaluable inside information as to the proponents strategies...

...Having successfully kept CMA and the Hayden/Fonda organizations involvement at a minimum 'token' level, and having convinced...organized labor to stay out of the proposed tobacco tax initiative completely, we have tremendously damaged the proponents of the initiative and we have greatly enhanced our odds of successfully stopping the initiative from qualifying. Any one of the three groups mentioned above could have financed a successful initiative qualification drive by themselves.

Faced with the reality that their hoped-for financing...had dried up, the proponents...met in San Francisco on June 17, 1987. Several very important decisions came out of the meeting.... they decided to abandon their original goal of qualifying the initiative for the June 1988 ballot and postponed the effort to the November 1988 ballot...

Although we consciously chose to keep the campaign at a low key and personal level (lobbying CMA, labor, Hayden/Fonda, etc.) there was a great deal of activity on our part besides the areas already discussed: ... --Retained O'Donnell and Gordon to explore all avenues of the appropriateness of the Heart, Lung and Cancer societies and thereby cause expenditure of time, effort and resources on their part. Every ounce of effort they have to expend defending themselves is effort they do not have to help in qualifying the Initiative.

--Agreed to retain Myrlie Evers to assist with building strong black opposition to the initiative...

--Met with David Kim many times to discuss possible Asian involvement in our efforts...

--Met with Mario Obledo...to participate as a 'key' consultant in our efforts to mobilize hispanics...

--Numerous meetings with friendly liberal legislators close to Conelly to gain their assistance in trying to convince Conelly that this Initiative is not a good vehicle for him in his aspirations for statewide office in 1990...

--Kept all other legislators out of the Coalition and helped to isolate the group on the left.

--Researched every legal obstacle we can place in the way of proponents, from exploiting opportunities with state law...to checking the vulnerabilities in their non-profit charitable contribution status.

--Met with friends in the attorney General's office to set up the battle over the Initiative's language and title....

RESOURCE LIMITATION CAMPAIGN

...We must redouble our efforts to withhold any potential resources they could possibly garner and cut into their current resources by causing them to expend their resources on something other than qualifying the tobacco tax initiative. ...As the proponents become more desperate they will exert ever increasing pressure....we must effectively counter their efforts at every turn...

--Continue daily campaign to keep CMA, Hayden/Fonda and Labor out of the initiative.

--Contract with the two largest signature-gathering firms to keep them away from the proponents of the initiative...Investigate the possibility of using these firms to develop a 'withdrawal petition' drive disqualifying those already signed up by the initiative proponents....We would basically send our pros behind the proponents amateurs and convince people to sign withdrawal petitions, removing their names from the proponents petition. This could be devastating to the proponents. It should be noted that there is definitely a potential downside to this program. Regardless, we need to tie up these two signature-gathering firms so that proponents will be precluded from using them....

--Shift legal component to charitable contribution analysis mode through challenges to their expenditure process. It is our intention to throw up every roadblock we can and cause the proponents to expend as much time and resources as possible on things other than the initiative...

Company

R.J. Reynolds Tobacco Company

Author

A-K Associates, Inc.

Kinney, P.

Recipient

Mozingo, Roger L. (TI Lobbyist, Sr. VP, headed up state and local lobbying)

Involved in state and local level lobbying for the tobacco industry. Was a Vice President at TI, in the State Activities Division in the 1970's & 1980's, later went to RJR. Roger L. Mozingo was Vice President of State Government Relations for RJR in 1994. (Source: R. J. Reynolds Summary - RJR Liability Notebook)

Marshall, H.

Region

California

Named Person

American Petition Consultants

Kimball Management

Organized Medicine

Latin American Pacific Trade Assn

Heart Society

List, O.F. Labor Leaders

Assembly

Calif. Medical Assn

Tobacco Institute

Calif. Chamber of Commerce

Calif. Taxpayers Assn

Calif. Retailers Assn

Calif. Manufacturers Assn

Hispanic Lobbying Assoc

Mexican American Political Assn

American, G.I. Forum

Latino Peace Officers Assn

Calif.Hispanic Chamber, O.F. Commerce

Calif. Hispanic Womens Forum

List of Calif. Medical Assn Leaders

Calpac

Los Angeles Medical Society

Brown, W.

Waters, M.

Majority Whip

Tucker, C.

Wilson, D.

Kim, D.

Floyd, R.

Hunter, T.

Ca, S.T. Pipe Trades

Henning, J.

Kelly, J.

A-K Assoc

Armstrong

Golden, S.T. Medical Society

Connelly, L.

Hayden

Fonda

Firbank Bregman & Maullin

Kinney, P.

AFL-CIO

OSHA

Nichols, J.

Charlton Research

Tarrance

Reyes, G.

Odonnell

Gordon

Cancer Society

Lung Society

Evers, M.

Obledo, M.

Reynoso, C.

Connelly

Hauck, W.

Brandsma, R.

Information For Public Research

Ca Research

Legislative Analysts Off

Doerr, D.

List, O.F. Key Black Leaders

R.J. Reynolds

Ca Working Group

Kinney

Allen

Konovaloff

Fairbank

Neilsen, C.

Executive Comm

List of Special Interest Groups

Type

LETTER

Operation/Project

Defeat of California tobacco tax initiative

Subject

political interference

Political participation

Document Images

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PERSONAL AND CONFIDENTIAL -2- -Hispanic Lobbying Associates was retained to generate hispanic opposition to ACA 14. The Mexican American Political Asociation, American G.I. Forum, Latino Peace Officers Association, California Hispanic Chamber of Commerce, California flispanic Womens Forum and the Latin American Pacific Trade Association all officially went on record in opposition to ACA14. These groups are still with us awaiting our signal to be turned loose against the tax Initiative. -A very successful letter writing campaign to "key" legislators by companies and TI was orchestrated and effectively carried out. -Personal lobbying of organized medicine began even during the lobbying efforts on ACA 14 in the Legislature. These included personal meetings with the following California Medical Association leaders: -Bob Elsner, Executive Director. -Jay Michael, Director of Government Relations. -Dr. Gladdin Elliott, Immediate Past President. -Allen Pross, CALPAC Director. -Dr. Kai Kristensen and Dr. Phillips Gausewitz, San Diego area. -Frank Clark, Executive Director of the Los'Angeles Medical Society. -Dr. Manny Abrams and Dr. David Olch, Los Angeles area. -Dr. Frank Glanz and Dr. Marshall Ganns, Orange County area. -Dr. Ed Hendricks and Dr.-Pierce Rooney, central valley area. -Dr. Michael Lopiano, Santa Barbara area. -Dr. Paul Dugan, northern California rural area. -Dr. Tom Elmendorf and Dr. James Moorfield, Sacramento area. -Dr. Fred Achermann and Dr. Roberta Fenlon, San Francisco area. -Met with "key" black political leaders to solicit and begin solidifying black support among state legislators for the anti- initiative campaign. We met personally with the following black state legislators or legislative staff: -Willie Brown, Speaker of the Assembly. -Maxine Waters, Majority Whip. -Curtis Tucker, Chairman of the Assembly Health Committee. -Dodson Wilson, Staff to Speaker Willie Brown.

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w PERSONAL AND CONFIDENTIAL -9- -Met with Dave Doerr ( former Chief Consultant to the Revenue and Taxation Committee) to solicit him to help and co-sign the document to be prepared by Hauck and Brandsma -Multiple meetings with "key" black leaders, including: -Willie Brown, Speaker -Curtis Tucker, Chairman, Assembly Health Committee -Maxine Waters, Majority Whip -Dodson Wilson, Staff to the Speaker -Tom Bradley, Mayor of Los Angeles -Mariam Golikely, Senior black leader -Myrlie Evers,Bd. of Directors, NAACP -Multiple meetings with labor leaders, including: -Jack Henning, AFL-CIO. -Tom Hunter, plumbing and pipe unions. -John Harrington, union financial advisors. -Brian Hatch, firefighters. -Dick Floyd, Assemblyman. -Jerry Matthews, independent firefighters. -Regular written and verbal communications with TI staff. -Assisted in the preparation of the poll format and questions. -Consulted with Reynolds re their suggested additions to the poll. -Meetings with the California Working Group to review and strategies on efforts to keep the Initiative off the ballot. -Contacted the two major professional qualification firms to discuss retaining them to assist us with a withdrawal petition drive and to keep them from being available to the proponents of the initiative. -Held almost daily person-to-person and telephone meetings between Kinney, Allen, Konovaloff, Fairbank, Gordon. -Almost daily contact with the CMA to keep them out of the initiative, especially now that the tort reform issue has disappeared for 1988. -Met with Chip Neilsen re campaign committee requirements.

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J PERSONAL AND CONFIDENTIAL -18- RESOURCES LIMITATION CAMPAIGN -Continue to lobby groups like CMA, Hayden/Fonda and Labor to limit the proponents resources. -Legal involvement program to occupy time and resources of profit proponents. COST: $10,000 CONSULTING/ADMINISTRATION COST: $210,000 non- -Initiative "KILL" fee. Bonus to Paul Kinney if tobacco tax Initiative fails to qualify for the ballot. This is standard in the business. COST: $75,000

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PERSONAL AND CONFIDENTIAL -8- -Met withDavid Kim many times to discuss possible Asian involvement in our efforts. -Met with Mario Obledo re possible involvement in our efforts and his willingness to particiapate as a "key" consultant in our efforts to mobilize hispanics. -Met with Cruz Reynoso re possible involvement in our efforts to mobilize hispanics to vocally oppose the proposed Initiative. -Numerous meetings with friendly liberal legislators close to Connelly to gain their assistance in trying to convince Connelly that this Initiative is not a good vehicle for him in his aspirations for statewide office in 1990. Although we have been unable to back Connelly off the Initiative to date, our sources inform us that Connelly has become somewhat engrossed in another "long-term care" initiative and our efforts may have softened him somewhat. Our best political judgement at the time indicated that we had pushed Connelly as far as we reasonably could without causing a backlash from the liberal political community. -Kept all other legislators out of the Coaltibn and helped to isolate the group on the left. -Researched every legal obstacle we can place in the way of the proponents from exploiting opportunities in the state law regarding initiatives to checking the vulnerabilities in their n.Dn-profit charitable contribution status. -Built a tentative list of committee members for our anti- initiative committee. -Met with friends in the Attorney Generals office to set up the battle over the Initiative's language and title. -Met with Bill Hauck and Rick Brandsma of Information For Public Research (formerly California Research) to solicit them to assist in the background document to be given to the Legislative Analyst's Office. Brandsma was former Chief Deputy to the Legislative Analyst and both Brandsma and Hauck have served in numerous prestigious posts in state government. Anything that would come out of this group would be given every consideration by the Legislative Analyst's office.

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PERSONAL AND CONFIDENTIAL -17- P.R./MEDIA CAMPAIGN -By late February, replace ad program. COST: $35,000 -By early February, commission a second poll to test movement of support/opposition to tobacco tax Initiative. This is critical to test movement and to assess arguments to determine which issues are most effective for each side in order to either strengthen our attack or undermine their campaign. COST: $22,000 -Build a personal response file from our community program, mail a solicitation to all those expressing interest in supporting the anti-tax campaign. Create a voter file of names for use in future ads. COST: (Based on 28,325 names, or approximately 1.5% of original mail universe). -production ................. $3,700 -postage .................... $6,232 -Reduce our universe with each mailing to those having expressed support_for the anti-tax effort following receipt of direct mail, mail additional solicitation for financial assistance. COST: (Based on 11,625) -production ................ $3,100 -postage .................. .$2,558 -Continue disqualification campaign right up to the final day signature gathering. -Continue to solicit and educate "smokers" through companies lists and communication capabilities. of COST: Companies plus $7,500 data development and envelope production and shipping.

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: PERSONAL AND CONFIDENTIAL -14- It should be noted that there is definitely a potential downside to this program. Regardless, we need to tie up these two signature gathering firms so that the proponents will be precluded from using them last minute in an attempt to get the Initiative qualified. COST: $50,000 to $75,000 (Funds needed to preempt American Petition Consultants and Kimball Management, Inc.). -Meet with Jack Henning of the AFL-CIO and explore the possibility of reaching a mutual understanding between the Cal-OSHA Initiative and the tobacco tax Initiative. COST: $10,000 -Shift legal component to charitable contribution analysis mode through challenges to their expenditure process. It is our intention to throw up every roadblock we can and cause the proponents to expend as much time and resources as possible on things other than the Initiative. COST: $25,000 CONSULTING/ADMINISTRATION In^ludes fees for overall_ managemnt and c_oordinatio_n ~ A_K Associstes, campaign consultin ~ Pau_ _ Kinney and v_ariou_s consulting fees paid to special_ interest and eth_nlc_ con_so_ilt.as_ This allog_ati'on also includes use of Chip Neilsen's law firm to coordinate and administer all_ reporting reauirements to a_ss_ure that we com_P1_Y with all appropria_te e_lection laws__ COST: $60,000 November SPECIAL INTEREST AND ETHNIC GROUP OUTREACH PROGRAM

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PERSONAL AND CONFIDENTIAL -16- -Begin to identify their petition circulation patterns and possibly begin withdrawal/signature disqualification program. -Continue to explore and implement legal avenues regarding non- profit organizations activities in the campaign. COST: $15,000 CONSULTING/ADMINISTRATION COST: $60,000 December Thru Qualification Deadline (Approximate Date June 1, 1988) SPECIAL INTEREST AND ETHNIC GROUP OUTREACH PROGRAM -Hold regular, frequent field meetings to continuously evaluate and guide consultants and petition company representatives. ~ m COST: $25,000 (Expenses) o cn N W -Continue community outreach program. o COST: $25,000(Expenses)

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P$RSONAL AND CONFIDENTIAL -15- -Begin monthly organizational meetings of our anti-tax troops to coordinate strategy and execution of our disqualification plan. Included in group will be leadership team..minority/special interest field consultants and petition company representatives. COST: $4,000 (Expenses) -Continue grassroots program with accelerated speakers group appearances. COST:. $4,000 (Expenses) P.R./MEDIA CAMPAIGN -Create and distribute to all major California media a press kit that includes our brochure, opposition list, list of our committee members, fiscal analysis and implications, arguments against and previous press. COaT : $2, 500 -Establish strict guidelines and mechanisms for handling press inquiries. -Complete direct mail program. N -Begin ad placement program. 0 0) m 0 RESOURCE LIMITATION CAMPAIGN N N (D -Continue efforts with CMA, Hayden/Fonda, Labor and similar groups.

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PERSONAL AND CONFIDENTIAL -10- -Prepared legal arguments for Attorney General's Title and Summary in written form. O'Donnell and Gordon had primary responsibility for this in consultation with A-K, TI, and Kinney. -Continued working meetings with Bill Hauck (former Chief of Staff to Speaker Willie Brown) and Rick Brandsma (ten year veteran of the Legislative Analyst's office) providing them with background information on the initiative and the regressive nature of excise taxes. Due to the necessity for prompt attention to this matter it was decided not to use Dave Doerr at this time. This document is being prepared now for delivery to the Legislative Analyst's office in mid-to-late October. II. STRATEGY THROUGH THE INITIATIVE QUALIFICATION DEADLINE October (See Attached Calendar) With the postponment of their target election date to November 1938, the "interim ini iative Phase has ee_n expanded bY approximatelY five months S_June tQ Nberl. O_ _arlier time Qrosections, b_ased on the June 1988 election date, would have pla~d the end of the interi minitiative phase in_ t_he Fall cr at the~latest January of_ 1988. With the new pot_ntial e_lectic_n dat.e of Nov_ember 1983~ We are _lo_oki_ng at _a i_ast p_os_sible day for ,1_ialificati_on of this iss_ue of JunA i983. Followi_ng are our strategies_ and estimated _udggt f0r t_r anti= qu.alir'if,ation campaign. We know you ar co nt _o_f the expFnd_itijres to date and the a c }-shments, genera ted bv th2a prUtdent expe_nditures,_but it ouid be pginted out that it i_s !2ur. feeling that this ambitious_ ant - u lification c_aMp_aig_n plan_ _can be carried out within the _resou_rcFS ~a ready aAproved bY the Exec_u+.ive CommittPe.

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PERSONAL AND CONFIDENTIAL -13- -Begin locating ads in special interest periodicals in our target groups, such as, senior publications, labor bulletins, liberal journals and minority papers. The ads should begin appearing in early November. ' COST: 0 -design ........................ $ 4,000 -placement ..................... $35,000 -Sign up and officially release the names of our committee to ensure compliance with all applicable statutes. RESOURCE LIMITATION CAMPAIGN Although a very positive and successful program in this area h~as already taken place we m_ust _re-double our gfforts to withho_ld anY potential resources they could possiblY garner and cut into th_eir c_urr_ent resources bY causin_g them_ to expend their resources on something other than gu_alifing the tobacco tax Initiative. Just bP_cause we_ hav_e successfullY convinced o_ anized medicinz, HaYdenLFonda and labor to staY out gf this issue. does n_ot m_zan we can rest on our 1_au__rels_ As the proponents becrcom_e_ m_ore desperate theY will exert ever increasing pressure on th_?se a_nd other g_r2ups to fin_anciallY __sist t_em. We m_ust effectivel_Y countzr their efforts at e_v_erY turn_ -Continue daily campaign to keep CMA, Hayden/Fonda and Labor out of the Initiative. -Contract with the two largest signature gathering firms to keep them away from the proponents of the Initiative. Investigate ther- possibility of using these firms to develop a "withdrawal petition" drive disqualifying those already signed up by the Initiative proponents. This is a very exciting concept. Although it has been done in a limited sense at the local level, it has never been done at the statewide level. We would basically send our pros behind the proponent's amatuers and convince people to sign withdrawal petitions, removing their names from the proponents petition. This could be devastating to the proponents.

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