Lorillard
870000 State of the States
Fields
- Type
- REPT, OTHER REPORT
- Alias
- 80420251/80420295
- Site
- G65
- Area
- SPEARS/OFFICE
- Characteristic
- OVER, OVER SIZE DOCUMENT
- Litigation
- Nyag/Produced
- Date Loaded
- 28 Apr 1999
- Named Organization
- Afscme
- American Lung Assn
- Arvida
- Assn Industries of Fl
- Atlanta Chamber of Co
- at+T
- Bakery Confectionary +
- Barnett Bank Group
- Burley Auction Warehou
- Burley Farmer Advisory
- Burley Growers Coopera
- Burley Leaf Dealers As
- Burley + Dark Leaf Exp
- Business Council Ga
- Bw, Brown & Williamson
- Carter Administration
- Council for Burley Tob
- Delta Airlines
- De House
- De Senate
- Doctors Ought to Care
- Eli Witt Distributing
- Epcot Center
- Fl Candy + Tobacco Ass
- Fl Comprehensive Plan
- Fl County Commissioner
- Fl Hotel Motel Assn
- Fl House
- Fl Independent Beverag
- Fl Leage of Cities
- Fl Legislature
- Fl Outdoor Advertisers
- Fl Restaurant Assn
- Fl Retail Assn
- Fl Retail Federation
- Fl Senate
- Fl Tobacco + Candy As
- Ga Against Smokers Po
- Ga Agricultural Commo
- Ga Farm Bureau Federat
- Ga General Assembly
- Ga Hospitality + Trav
- Ga House
- Ga House Health + Eco
- Ga Legislative Black
- Ga Lung Assn
- Ga Retail Assn
- Ga Senate
- Ga Wholesale Grocers
- General Motors
- Grange
- Havatampa
- Hi Food Industry Counc
- Hi House
- Hi Lung Assn
- Hi Restaurant Assn
- Hi Senate
- Ia Congress
- Ia House
- Ia Senate
- Id Assn Commerce + Ind
- Id Assn Tobacco + Cand
- Id House
- Id Innkeepers Assn
- Id Lung Assn
- Id Restaurant Assn
- Id Senate
- Il Cancer Society
- Il Chamber of Commerce
- Il House
- Il Medical Society
- Il Senate
- Indianapolis Chamber O
- in Assembly
- in Chamber of Commerc
- in House
- in Senate
- Itcda
- Jc Penney
- Jno Swisher & Sons
- Ks Assn of Commerce +
- Ks Chamber of Commerc
- Ks for Nonsmokers Rig
- Ks Retail Council
- Ks Tobacco Candy Dist
- Ky Associated Industri
- Ky Bankers Assn
- Ky Candy + Tobacco Ass
- Ky Chamber of Commerce
- Ky Dept of Agriculture
- Ky Farm Bureau
- Ky House
- Ky Restaurant Assn
- Ky Retail Wholesale Gr
- Ky Seedmans Assn
- Ky Seed Improvement As
- Ky Senate
- Licensed Beverage Deal
- Lockheed
- Martin Marietta
- Mayo Clinic
- Medical College of Ga
- Natl Assn Independent
- Natl Farmers Org
- Natl Fed of Independe
- Olathe City Commissio
- Overland Park City Co
- Pinkerton Tobacco
- PM, Philip Morris
- Retail Grocers Assn Fl
- RJR, R.J.Reynolds
- Rolm
- Sears Roebuck
- Sons of Jacksonville
- Southern Tobacco + Ca
- Storage Tech
- Tektronics
- Toyota
- Tyco Labs
- United Tech
- Univ of Id
- Walt Disney World
- Wichita Gasp
- Named Person
- Baker, R.
- Barnes
- Bartlett, W.
- Bentley
- Blackmun, H.
- Boosalis, H.
- Brennan, J.
- Bryan, W.
- Bryan, W.J.
- Bulger, W.
- Burger, W.
- Byron
- Canning, C.
- Cardin, B.
- Carlson, R.
- Carruthers, G.
- Cashwell, R.
- Chu, R.
- Coyne, W.F.
- Cuomo
- Cyrus, R.
- Decamp, J.
- Dini, J.
- Doyson
- Dukakis, M.
- Erickson, J.
- Esby
- Franklin
- Freeman, O.
- Fulginiti, W.
- Gallen
- Harshe, M.
- Hayes, J.
- Hecht, C.
- Hedden, J.
- Herman, M.
- Holloway, C.
- Holt, M.
- Hoyer
- Humphrey, H.
- Jetson, L.
- Johnson
- Johnson, J.
- Kean
- Kennedy, J.
- Kennedy, J.F.
- Kennedy, R.
- Kerry
- Keverian, G.
- Koop, C.E.
- Long, H.
- Ludeman, C.
- Lundine, S.
- Manning, P.
- Manning, R.
- Marsh, S.
- Mathias
- Mccarthy, E.
- Mckernan, J.
- Mcmillan, T.
- Mcpherson, J.
- Mfume, K.
- Mikulski, B.
- Miller, R.
- Mitchell, P.
- Mondale, W.
- Moore, H.
- Morella, C.
- Nelson, M.
- Norris, G.
- Norton, F.
- Olsher, L.R.
- Oneill, T.
- Orr, K.
- Pappas, J.
- Perpich, R.
- Petit, M.
- Raggio, W.
- Robbie, J.
- Robertson, G.
- Rose
- Schaefer, D.
- Schavitz, R.
- Schwinden
- Stassen, H.
- Thomas, H.
- Thompson
- Tierney, J.
- Vickers, T.
- Walker, B., J.R.
- Woods, H.
- Worthington, P.
- Master ID
- 80420206/0485
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DELAWARE
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PREFACE
Delaware has a population of just under 600,000. It is a
pro-business, conservative state with a high concentration of
white-collar jobs due to the large number of corporations with
headquarters located in the state.
The state's market share is three-tenths of one percent.
STATE OVERVIEW
Economic Condition and Outlook
Delaware is in good fiscal condition with a projected yearly
budget surplus of $40 million and an additional "rainy-day" fund
of $40 million. The outlook is for continued economic growth in
the state during 1987.
Delaware was one of twelve states to lower personal income taxes
in 1985 through-an increase in the personal exemption. In
addition, inheritance taxes were reduced.
Delaware still has one of the five highest personal income taxes
in the country. An unsuccessful effort was made to reduce the
income tax rate, but the plan may come up again in 1987 session.
The state has a highly elastic tax system. States with high
elasticity are able to cut tax rates and still maintain a steady
relationship between revenue and personal income.
Political Situation
Delaware has a Republican governor and a Republican majority
(22-19) in the House. The State Senate is controlled by the
Democrats (12-9). The legislature can be considered
pro-business.
Significant State Problems
The most significant state problems on the horizon are:
1. - Continuation of a balanced budget with increased
appropriation requests.
2. More funds requested for education.
3. More highway funds requested.

Delaware, page 2
RESOURCES: STRENGTHS AND-WEARNESSES
Tobacco Segments
The tobacco segment in Delaware is very small due to the size of
the state. Many retail accounts are serviced by wholesalers and
vendors outside of the state (Maryland, Pennsylvania). There is
no wholesale or vending association. Additionally, many member
company sales personnel live and have offices in adjoining
states.
Business
Delaware has a strong business community due to the large number
of corporate headquarters and the even larger number of companies
incorporated in the state. State laws including tax rates favor
the corporate presence. The Chamber of Commerce is the largest
business organization in the state and can be considered an ally
in smoking restriction matters.
Labor
The organized labor force is centered in the Wilmington area.
Unlike most northeastern states, organized labor is not an
influential political force.
Fire Groups
Fire groups are active in the state and helpful to The Tobacco
Institute, generally speaking. A former president of one of the
largest_national fire groups resides in Delaware.
Institute Resources
Industry resources in Delaware center on the business community
and the variou.s business organizations in the state.
ANTI-TOBACCO FORCES
The anti-tobacco forces in the state are 'few and very low key in
their approach to anti-tobacco programs. The lung, cancer and
heart associations are the largest and strongest anti-smoking C
groups, but their influence is limited. ~
TOBACCO INDUSTRY
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Brief History of Successes and Problems
Most legislative issues in recent years have been confined to the
state level. Cigarette taxes were the chief threat during the
last several sessions. A federal contingency tax bill was
J.ntroduced and passed the House in 1985, but died with
z)ijournment in a Senate committee.
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Delaware, page 3
A smoking restriction bill was narrowly defeated in the House in
1986. An OTP tax was implemented by legislation passed in 1986,
but its effective date was suspended by industry protests until
March 1987.
Major Issues - State and Local
The public smoking issue has not been considered at the local
level, nor has the state legislature paid much attention to it
until this year.
Outlook
There is a probability of restrictive smoking legisl-ation
appearing again during the 1987 session. This would probably
take the form of restaurant, public places, or government
building restrictions. No increase in the cigarette tax is
expected to be considered.
We anticipate legislation in the area of product liability and
tort reform.
December 1986
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80420254
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PREFACE
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FLORIDA
In 1985, the State of Florida was ranked as one of the three
fastest growing states in the Union, following only California
and Texas. The trend remains the same as it gains not only the
largest share of retirees in the country, but also an ever-
increasing number of young professionals who see Florida as one
of the better places to live. This is due to its stable economy,
excellent weather conditions and new-found employment
opportunities.
Florida has an economy based on the tripod of tourism, industry
and agriculture, with all three facets measured in the billions
of dollars to the state's economy. The tremendous number of
tourists -- expected to be more than 40 million in 1987 -- bodes
well for service-related jobs.
The biggest reasons for the optimistic growth by the year 2000
are the population boom and the state's new and more stable
economy, one based on high-tech manufacturing as well as
international finance and banking.
A 1985 census showed a population of 10.9 million. The
prediction is that Florida will have a population in the
neighborhood of 15 to 16 million in the year 2000. Currently,
figures indicate that 13.8 percent of the population is black and
8.8 percent is Hispanic. The state's market share is
approximately 5 percent.
STATE OVERVIEW
Economic Condition and Outlook
Many years ago Florida agriculture was the predominant factor in
the economy. Many good returns were given to the state's
farmers, ranchers and citrus growers due to the usually warm
weather, good rainfall, plentiful farm labor and inexpensive
transportation from farm to market. Tourism was considered
second and industry was a distant and poor third. Over the years
this picture has changed, with tourism taking over the top spot.
However, in recent years industry has forged its way to the top,
followed by tourism and then agriculture.
In 1984, tourism brought in some 36 million visitors from around
the world, resulting in $850 million in tax revenues, more than
632,000 tourism-related jobs, and an annual payroll of more than
$4.3 billion.

Florida, page 2
Industry in Florida ranges from "silicon valley" factories, to
huge defense industries, plus manufacturing of food, clothing and
housing. These businesses include plants with thousands of
employees down to hundreds of "mom and pop" operations. Florida
has an unemployment rate of 6.3 percent.
Florida agriculture produces all major fruits and vegetables.
Most of these products are grown during the winter months when
much of the rest of the nation is unable to grow such
commodities. The Florida citrus industry suffered disastrous
freezes in 1983 and 1985, killing thousands of acres of trees. In
1986, agriculture has returned to the profit side after these
disastrous freezes.
Florida's various regions will grow economically in very
different ways. Miami has staked its future on international
trade and banking, as well as tourists from South and Central
America. Fort Lauderdale and Palm Beach, however, are turning to
high-tech manufacturing with giants such as IBM, Rolm, Storage
Tech, Tyco Labs, Tektronics, and United Tech, etc. All these
companies provide well-paid corporate jobs.
Tampa is a booming center of commerce, construction and culture
with a growing number of light industries settling there.
Orlando isn't just Mickey Mouse and Walt Disney World anymore.
In 1982, Disney opened its billion dollar Epcot.Center, and
recently acquired Arvida, a large housing development company.
This year they announced construction of a massive new filmmaking
center. Just a few miles from Disney World is the 11,000 worker
defense plant of Martin Marietta. AT&T has also announced
construction of a major plant. Jacksonville is rapidly becoming
the insurance capital of the world, and it recently brought in
the prestigious Mayo Clinic's first spin-off operation.
One of the state's profitable "industries" is the hosting of
corporate conventions. In 1983, there were 11,600 annual
association conventions around the country. Florida received the
majority of these groups.
In the past few years the state has also gone after the movie
business. In 1984, 35 feature films were shot in the state, and
in the first six months of 1985 thousands of commercials,
training films and feature films were shot here.
The state's political and industrial leaders are confident that
it will escape its historical tendency toward boom and bust, and
now will simply get on with the boom. The future looks good.
Tourism continues to gain following the fears of terrorism of
overseas trips and vacations. All phases of industry have
increased with larger economic benefits accruing to all sections
of the state.

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Florida, page 3
Political Situation
Historically, the Florida legislature has been conservative.
While there are Democrats and Republicans in both houses, the
dominant Democrats have been reluctant to go along with the very
liberal philosophy of the national Democratic Party. It has
often been said the Florida Democrats are more Republican than
some of the Republicans. There has been a major shift in party
loyalty over the past seven years, with 35 percent of Florida
residents identifying themselves as Republicans (versus 26
percent in 1976), 35 percent identifying themselves as Democrats
and 10 percent as Independents. Blacks, however, have maintained
their Democratic ties by a nine-to-one margin.
The Florida legislature is composed of two houses, the House of
Representatives and the Senate. The former has 120 members and
the latter 40 members.
The 1986 elections in Florida showed a definite power shift. For
the Republicans on the state level, it means that the GOP is
getting closer to parity in this rapidly-changing state.
Republican Bob Martinez broke a 20-year drought for 'the GOP when
he became only the second Republican Governor since 1900. At the
same time the Republicans were able to capture or hold onto 15
seats in the Senate and 45 seats in the House.
The GOP Senators have closed ranks with a number of conservative
Democrats to form a coalition that has wrested power from a
liberal group of Democrats. In the House, GOP members can
effectively uphold any veto that the governor might wish to
attach to any legislative proposal.
,
Political scientists point out that many of the thousands of new
residents are registering as Republicans. This will have a
significant impact on Florida's political future. Governor-elect
Martinez had a 300,000 vote margin over the Democratic nominee in
a state where Democrats have a large majority in registered
voters. ~
In the various Senate races, the GOP took five more seats than it
had two years ago and gave a scare to several other liberal
Democrats.
The only saving grace for Democrats was the election of Governor
Bob Graham over U.S. Senator Paula Hawkins in one of the most
hotly contested and costliest campaigns in the state.
It would appear that with a GOP Governor and a coalition of
Republicans and conservative Democrats in the State Senate, the
newly-found strength of the Republicans would give them control
of many political and legislative proposals. But Democratic
State Representative Jon Mills, House Speaker, says the Florida
House becomes the key to how.far Governor Martinez can carry his
conservative agenda.

Florida, page 4
Significant State Problems
Major problems facing the state are those relating to management
of its tremendous growth. Hundreds of plans are underway by many
different agencies and groups. Many call for different solutions
to the problems of education, transportation, prisons, waterworks
and future economic development. Some solutions suggest a strong
program of privatization. Other solutions suggest consolidation
of services, streamlining the permitting processes, local option
taxes, etc.
A major problem facing landowners in Florida is the issue of
amending the state's Marketable Record Title Act. The question
is whether the 1963 Legislature intended the title clearing act
to deprive the state of title to underwater lands, previously
assumed to be in state ownership. The 1963 law clears titles to
lands that are free of conflicting claims for 30 years. A
legislative commission reviewing the law has found itself
deadlocked over the vesting of such land rights. Other
legislative issues include the repeal of joint and several
liability doctrine, child abuse, higher education, the disposal
of hazardous wastes, protecting the environrnent, reducing crime,
protecting life on the highways, and providing affordable
housing.
Another major issue which will come up during the 1987
legislative session will be the repeal of sales tax exemptions.
The legislature passed a bill in the last session that
automatically repeals most exemptions to the five-percent sales
tax, with the exception of food and medicine, unless they are
re-enacted before July 1, 1987. Such repeal is expected to bring
in more than $1 billion. This additional money cannot be spent,
however, without the approval of the governor and both
legislative bodies.
Despite what is done with the sales tax exemptions, Charles
Zwick, Chairman of the State Comprehensive Planning Committee,
says that Florida's basic tax structure must be changed because
the government cannot keep pace with the ever-increasing need of
services to new residents. He says the costs of such increasing
growth will outstrip projected revenue collections by $72 billion
over the next ten years. He sees the need for additional tax
increases, including the possibility of a one- to two-cent
increase in the sales tax, a personal income tax or a business
receipts tax.
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Florida, page 5
RESOURCES: STRENGTHS AND WEAKNESSES
Tobacco Segments
There are approximately 900 tobacco farmers growing tobacco on
approximately 7,500 acres. While there are no cigarette
factories in Florida, there are some 41 cigar manufacturers,
including Jno. Swisher and Sons of Jacksonville, and the
Hav-A-Tampa Company in Tampa. There are numerous small cigar
manufacturers located in Miami, Tampa and Key West, with Florida
cigar manufacturers producing about one-sixth of the nation's
cigars each year.
Florida is fifth among states in tobacco product manufacturing
employment and fourth in tobacco retailing and vending jobs. Just
under three percent of all private sector jobs are generated
directly or indirectly by tobacco, for a total of 81,520 jobs,
and total wages of $1.15 billion.
The Florida Tobacco and Candy Association has approximately 40
members throughout the state. Within recent years, it has come
of age as a lobbying support group and the future looks bright
for the association. We hope they will continue to be effective
partners. With the election this year of Fred Hoyland of Eli
Witt Distributing Company as president, this hope should become a
reality.
Contact is being maintained with the TAN activists for watchdog
purposes and for the necessary phone calls, personal contacts and
letter-writing campaigns when needed. It is anticipated that
this same level of cooperation will be present in the future.
Business
During the 1985 Legislative Session, Florida had perhaps the best
ever grouping of allies and business coalitions lobbying against
the Florida Clean Indoor Air Act. Because of such efforts, the
tobacco industry and friends were able to weaken the proposed
smoking restriction considerably. Unfortunately, a few
unpalatable provisions were passed in the legislature. The
allies included:
The Florida Chamber of Commerce
Associated Industries of Florida
Florida Hotel and Motel Association
Florida Restaurant Association
The Florida Retail Federation
Retail Grocers Association of Florida
National Association of Independent Businesses
The Florida Independent Beverage Dealers Association
The Florida Outdoor Advertisers
The Eli Witt Distributing Companies
The Barnett Bank Group
Various labor unions under the AFL/CIO

Florida, page 6
Throughout the session, this group of allies met on almost a
weekly schedule. They were always on call, ready to plan
strategy and to meet with their friendly legislators to amend the
bill. Without their assistance, it would have been difficult to
stop a more restrictive bill.
During the 1986 session, most of the same coalition members
joined us in our fight against revisiting the Clean Indoor Air
Act. In addition, many of them aided us in our unsuccessful
efforts to defeat the cigarette tax increase.
Labor
Betty Palmer of the Bakery, Confectionery and Tobacco Union in
Orlando, was the first to make contact with The Tobacco Institute
in Tallahassee on the proposed Florida Clean Indoor Air Act in
1985. Through her efforts, contact was made with Don Resha and
Mike Walsh of AFL/CIO, and through their lobbyist, a solid
working relationship was established that will serve us in the
future.
Fire Groups
Some contact has been made, but little help has been derived from
such contacts as far as legislative lobbying is concerned. It
appears that their sole interest is fire prevention, rather than
legislative lobbying.
Institute Resources
This year there has been a restructuring of the lobbyist program
in the state. It is anticipated this will result in better
lobbying among the leadership of both houses. It is also hoped
that cooperation among our various allies and coalitions will
continue during the next session.
ANTI-TOBACCO FORCES
In prior years, it was not too difficult to defeat legislative
attempts to restrict smoking. The militant anti-smoking groups
were not organized. In 1985, these groups formed a coalition and
were active on the local scene long before the legislators
arrived in Tallahassee, even to the extent of getting
legislators' prior commitments to endorse anti-smoking
legislation. For the first time, the anti-smoking group hired a
full-time lobbyist who was very active throughout the 1985
session.
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