Lorillard
870000 State of the States
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- 80420296/80420369
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- Date Loaded
- 28 Apr 1999
- Named Organization
- American Cancer Socie
- American Heart Assn
- American Lung Assn
- Ash, Action on Smoking & Health
- Associated Grocers Me
- Associated Industries
- Bath Iron Works
- Cbs
- Chamber of Commerce
- Chrysler
- Democratic Farm Labor
- Digital Equipment
- Gm
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- Helena Lung Assn
- Honeywell
- Independent Repuplican
- King Louie
- Ks City Fire Dept
- Ky Assn of County Off
- Ky County Judge Execu
- Ky Dept Health + Huma
- Ky House
- Ky Municipal League
- Ky Senate
- Ky Treasurers Assn
- La Assn of Business +
- La Hotel Motel Assn
- La House Health + Wel
- La Restaurant Assn
- La Wholesale Grocers
- Lincoln Chamber of Com
- Louisville Fire Dept
- Mama
- Ma Automatic Merchand
- Ma Dept of Revenue
- Ma Food Assn
- Ma Puplic Health Counc
- Ma Senate
- Md Assn of Retail Mer
- Md Assn of Tobacco + C
- Md Dc Vending Assn
- Md Farm Bureau
- Md Hotel Motel Assn
- Md House
- Md House Environmenta
- Md Legislature
- Md Nurses Assn
- Md Restaurant Assn
- Md Senate
- Md Senate Budget + Ta
- Md Tobacco Growers As
- Me Bakery Confectionar
- Me Cancer Society
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- Me Heart Assn
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- Mn Dept of Health
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- Ms Assn of Convenience
- Ms Cancer Assn
- Ms Heart Assn
- Ms House
- Ms Lung Assn
- Ms Mfg Assn
- Ms Senate
- Ms Senate Health + We
- Ms Senate House Ways +
- Mtcdva
- Mt Assn of Tobacco +
- Mt House
- Mt Restaurant Assn
- Mt Retail Assn
- Mt Senate
- Nba
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- New Orleans City Coun
- Ne Legislature
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- Nj Legislature
- Nj Senate
- Nrc
- Nv Legislature
- Omaha Chamber of Comme
- Pine State Candy + Tob
- Pine Tree Vending
- Public Service of Nh
- Reno Chapter of Ala
- Seabrook Nuclear Power
- Seven Eleven Stores
- Seven Up
- Southern Nh Business +
- Sperry Rand
- St Louis Fire Dept
- Tn Valley Authority
- Tobacco Distributors
- Tobacco Product Liabil
- Vending Assn Golf Stat
- Wang
- 3m
- American Heart Assn
- Named Person
- Abdnor, J.
- Adams, B.
- Alexander
- Andrews, H.
- Andrews, M.
- Austad, R.
- Bailey, D.
- Baliles, G.L.
- Ballenger
- Bellmon, H.
- Bivens, S.
- Bragg, J.
- Broyhill
- Casey, R.E.
- Celeste
- Chafee, J.
- Clarke
- Clements, W.
- Coffin, R.
- Conrad, K.
- Custer, G.A.
- Dangerter
- Darnell, R.
- Daschle, T.
- Dawida, M.
- Deberry, L.
- Diprete
- Doran, H.
- Douglass, G.
- Dunn, G.
- Earl, A.
- Edwards, V.
- Flynn, J.
- Garvey, E.
- Gibbons, H.
- Gillespie, W.
- Goldschmidt, N.
- Gorton, S.
- Grannis
- Hanaway, D.
- Hanson, G.
- Herseth, L.
- Hickock, W.W.
- Hodges, J.
- Huddleston, R.
- Janklow, W.
- Johnson, T.
- Kasten, R.
- Kimball, S.
- Koch
- Kunin, M.
- Lafollette, B.
- Leichtman, A.
- Mccallum, S.
- Mccarthy, J.
- Mcelroy, E.
- Mcgovern, G.
- Mckown, P.
- Mcnally, R.
- Mcwherter, N.
- Mickelson, G.
- Moise, M.
- Murray, E.
- Myers, R.
- Packwood
- Patrick, B.
- Paulus, N.
- Peterson, D.
- Price
- Risser, F.
- Roberts, D.
- Rossie, R.
- Sanders, B.
- Sanford, T.
- Schoenwald, L.
- Singel, M.
- Sinner, G.
- Smith, T.
- Starnes, P.
- Sununu
- Terry, M.S.
- Thompson, T.
- Thurber, M.
- Tindal, L.
- Violet, A.
- White
- Wieczorek, D.E.
- Wilder, J.
- Wilder, L.D.
- Willey, E.E.
- Wimmer, J.W., J.R.
- Wright, R.
- Adams, B.
- Master ID
- 80420206/0485
Related Documents: - UCSF Legacy ID
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Kentucky, page 3
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Finally, Kentucky is the headquarters for Brown and Williamson
Tobacco Company. In addition, Philip Morris, Lorillard,
Pinkerton Tobacco and R. J. Reynolds have manufacturing or
processing operations here.
Many people are involved in the tobacco industry in Kentucky,
literally from the seedbed to the supermarket. Each of the
groups mentioned is considered a resource.
Business
In the past we have had excellent cooperation from the Kentucky
Chamber of Commerce and Associated Industries of Kentucky. These
organizations are actively supported by many members of our
industry coalition. They are aware of the tobacco industry's
impact on Kentucky's economy.
The local chambers in Louisville, Northern Kentucky, Lexington,
Paducah, Bowling Green and Owensboro are all cognizant of
tobacco's importance. They work cooperatively with TI staff to
prevent restrictive measures. '
We share common interests with the Kentucky Bankers Association,
Kentucky Retail/Wholesale Grocers and the Kentucky Restaurant
Association.
In Kentucky we are fortunate to have governmental organizations
interested in tobacco. We have good working relationships with
the Kentucky County Judge/Executives Association, Kentucky
Municipal League, Kentucky Association of County Officials, and
the Kentucky Treasurers Association. Most members of these
groups are touched by the tobacco industry. Many are tobacco
farmers or have family involved in tobacco farming.
Labor
Louisville and Lexington -- and Kentucky in general -- are heavy
in union organization. Representative Ron Cyrus heads the
AFL-CIO. He has been a friend and supporter of tobacco, and we
have received support from his staff.
Fire Groups
The Louisville Fire Department requested support from our member
companies for a smoke detector program in 1985. TI contributed
in their behalf. It has not been necessary to ask any fire group
in Kentucky for legislative support.
ANTI-TOBACCO FORCES
There are no organized groups in Kentucky that attempt to disrupt
the tobacco industry. A group called H.E.C.K., or Health
Education Consortium of Kentucky, which is comprised of doctors,
nurses and some educators, is the closest we have to an
anti-tobacco organization. Thus far, they have been ineffective.
Kentucky, page 4
The Department of Health and Human Services began observance of
national "smokeout" day under Governor Brown. Brown, whose wife
is no friend of tobacco, was the first Kentucky Governor ever to
sign anything condemning tobacco.
TOBACCO INDUSTRY
Brief History of Successes and Problems
We have been successful in defeating all attempts to increase the
three-cent cigarette tax, or to restrict the use of tobacco in
Kentucky. Not to be repetitive, but this state depends on tobacco
for much of its livelihood.
Farmers, warehousemen, importers/exporters, auctioneers, leaf
processors, manufacturers, wholesalers and retailers are all
involved in state and local politics. They are involved in
business and social organizations. Leaders in the academic
community recognize tha.t tobacco supports the university system.
There was a rift in the tobacco family in the 1986 session. It
was caused primarily by House Speaker Pro Tem Pete Worthington.
He agreed with Congressman Rose's ideas and introduced a
cigarette tax to trigger when the price supports went below a
specific level. The cigarette tax would have funded income tax
credits for Kentucky burley producers. When the Kentucky Farm
Bureau broke ranks we were unable to hold the bill on the House
floor. We were, however, able to keep the bill in committee in
the Senate.
The most difficult part of TI's job is to communicate with all
segments of the industry and to ascertain whether they are moving
along the same path on specific issues.
Major Issues -- State and Local
The major issues will remain:
Health care cost containment
The tobacco support program
The loss of revenue sharing
Workman's compensation
Outlook =.
There is no session scheduled for 1987. However, there have been
repeated statements on the need for a special session to deal
with workman's compensation and other business problems. We
should remain watchful in this regard. If there is a special
session, there will be efforts to expand the call.
(
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December 1986
80420298
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No state has seen more drastic changes in its economy and
standard of living in the past generation--up, down, and
sideways--than Louisiana. Forty years ago its income level was
about 60 percent of the national average; as late as 1970 it was
about 75 percent. In the early 1980s it reached 90 percent; and
so, accounting for differences in local taxes and cost of living,
income levels in Louisiana had essentially reached the national
average.
(
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Yet as the 1980s went on and the national recovery surged ahead,
Louisiana slumped._ Its unemployment rate was, suddenly, one of
the nation's highest, and income growth stopped. This may just
look like a pause on the charts, but for many Louisianans it
spelled catastrophe. The reason is that Louisianans had come'to
expect rapid growth, had banked on it, literally; citizens made
all their plans on that basis.
New Orleans, even in its poor neighborhoods.
When prosperity failed to show up, they were in trouble. As a
symbol of the situation, the 1984 World's Fair in New Orleans
serves nicely. Planned on an unrealistically optimistic basis (it
was outdoors and open mostly during thesteamy Louisiana summer),
it was overpriced for tourists and nbt of much interest to
business travelers. It was sloppily and perhaps scandalously
financed by the state government and wound up millions of dollars
in debt.
.::;.. _
Since 1935, proteges of former Governor Huey Long and members of
the Long family have held high political office in Louisiana.
Elections for 30 years split on pro- and anti-Long lines. Huey
Long built a coalition of the rural poor, including some blacks,
against the rich and better off. He never, however, did well in
always allowed to vote.
What is so amazing is that this structure of politics was
superimposed on a state already divided in two other ways. First
was division by race. Although Louisiana has always had a large
black population (in 1980 the third highest black percentage
among states), many blacks, especially in New Orleans, were
The other division was between Catholic and Protestant, Cajun and
Baptist. About one in every six Louisianans today speaks French
as his native tongue.
Louisiana, page 2
In short, there are many cultural differences between the
teetot°aling Baptists of northern Louisiana and the beer-drinking
Cajuns of the south, and those differences emerge from time to
time in politics, usually in no more threatening form than a
preference for a candidate of one religious background or
another.
Louisiana's rapid economic growth for a time smoothed over some
of these old divisions: elections are not referenda on the Longs
any more, racial issues are submerged if not gone, and cultural
hostilities between Cajuns and Baptists are of little importance.
Louisianans are family people, with lots of children. The
politics of cultural variety is not yet a major factor here. As
for politicians and businessmen, they are judged by results, not
the process by which they achieve them, ends justify the means.
STATE OVERVIEW
Economic Condition and Outlook
Presently the Louisiana economy is in its worst position since
the Great Depression. Oil is at $15 a barrel, gas is down
proportionally. Drilling is way down, offshore activity is
limited. Thousands of vessels, rigs, etc., are rusting away
along the banks of rivers and bayous.
Unemployment is the highest'in the nation, with some areas in the
30 percent category. Agriculture is down. Soybean farmers are
going out of business. Sugar cane farmers are barely able to
survive. Real estate values are down. Farm land value is down
from $1,500 per acre to $600 - $800 per acre. Some banks are in
trouble, some have closed as a result of the economy. -
Tax revenues have been reduced by at least 20 percent in just
about all areas. The state has a deficit for the 1984-85 fiscal
year of about $200 million and a projected 1985-86 fiscal year
deficit of $177 million, total $386 million. This is after a 10
percent cut across-the-board ordered by the governor.
Economic and fiscal conditions will cause our industry to be:
a. An appealing target for increasing state taxes.
b. Faced with legislation giving all other taxing bodies
the right to tax tobacco. The New Orleans consumption
-..tax is an example of this sort of tax. -
c. Subject to legislation allowing the state to keep all of
the proceeds of the present tobacco taxes, thereby
encouraging local governments to levy their own taxes.
d. Hit with a smokeless tobacco tax. There is presently
no tax on smokeless products.
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Louisiana, page 3
Political Situation
The present political situation in the state is highly
disorganized. It is felt that up to 50 percent of the present
members of the legislature may not be back for many reasons after
the next elections in 1987.
It is generally concluded, by people in the know, that the
present governor will not run again. However, he should not be
counted out yet. There is a long line of possible candidates.
Of the Republicans, only one will make the race. He will be
selected by the Republican party and the rest will close ranks
and support him. The Democrats may not be so cooperative. The
race is wide open and it's anybody's guess who the winner will
be.
In order to solve the short-range fiscal problems, the governor
called a special session in December 1986. While the call was
open to all forms of revenue-raising, no increase in the state
excise tax was proposed. A defeated bill would have allowed for
local governments to tax tobacco and other products, however. As
yet, there are no long-range plans for solving the state's fiscal
problems. ,
Significant State Problems
The state faced a deficit in 1986. The revenue shortage will
cause a decrease in government services, a general increase in
taxes, or both.
Money is needed ta fund education, including parochial schools
which presently receive public funds. The state owns hospitals,
which are not_ profitable. Prisons are overcrowded, and the
unemployment rolls are a burden. There is a need to restructure
the property tax. By lowering the homestead exemption, the
pressure on local communities would be lessened. Added to all of
these problems, Louisiana state government is bloated with
high-paid bureaucrats.
It will take decisive, bi-partisan action by leadership to put
Louisiana back on the path to financial security.
RESOURCES: STRENGTHS AND WEAKNESSES
Tobacco Segments
There are fewer than ten tobacco farmers in Louisiana. They have
almost no impact on legislation. The perique tobacco grown there
is sold through the only warehouse for chewing and pipe blends.
It is grown for export to European and Asian countries.
The wholesale and vending segments of our industry are active
politically. They participate at the local and state levels of
;vovernment. The wholesale association has a full-time executive
elirector who lobbies. She works closely with TI's lobbyist.
Louisiana, page 4
Business
We have worked with the Hotel/Motel Association, Restaurant
Association and the Wholesale Grocers' Association. The
Institute is a member of the Louisiana Association of Business
and Industry. We hope to get more participation from this group
in the future. Individual company representatives have been most
helpful on a voluntary basis.
Labor
Labor groups have been quiet in past sessions. The primary union
lobbyist and his wife are not pro-tobacco. We have requested
assistance with contacts from our Washington office and from our
union friends in Kentucky.
Fire Groups
We have had no occasion to deal with fire groups in Louisiana.
They have not been involved in tobacco issues. Their legislative
friends usually vote with us.
ANTI-TOBACCO FORCES
Three health organizations announced a major anti-smoking
campaign on November 27, 1985 aimed at one million Louisiana
smokers and youngsters. Sponsors of the campaign, the American
Heart Association, American Lung Association and'American Cancer
Society, designed the program to coincide with the new surgeon
general's-"warning labels" that began appearing in November,
1985.
The health agencies want their public service advertising
campaign and educational program to help publicize the serious
health messages on the labels. The campaign has continued
through 1986.
Other goals of the group included: passage of non-smokers rights
legislation on the state and federal level; raising money for
cancer research by increasing state tobacco taxes; lobbying
against cigarette promotions and cigarette company-sponsored
events and "fighting R.J. Reynolds in their deliberate and
calculated attempt to mislead the public" through its
advertisements.
e
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Louisiana, page 5
TOBACCO INDUSTRY
Brief History of Successes and Problems
In a 1984 special session called one week before the regular
legislative session, the cigarette tax was increased by 5 cents,
to 16 cents a pack. High cigarette tax rates in neighboring
Texas and Arkansas helped make the tax hike palatable to
legislators. The increase was the first in 14 years. Also, at
that time, we were able to convince the Governor not to use "a
percent of value tax" which is what the proposed, legislation
originally contained.
During 1985, legislation to increase the tobacco tax for cancer
research was proposed. We were able to hold back that
legislation by appropriating instead a set amount from the state
general fund. $one million of the tobacco tax was appropriated
for cancer research. However, it was not put in the appropriation
bill and the funds could not be used until 1986.
During 1986 the health organizations were relatively quiet in
Louisiana. They have been involved with the studies pertaining
to the relationship of high lung cancer and the petrol chemical
industry.
Anti-smoking legislation was introduced in each of the past seven
years. Each time we were able to keep it bottled up in
committee. During the 1985 session one bill got out of the Health
and Welfare Committee and was killed on the floor.
In 1986 one of the main proponents of anti-smoking legislation,
Representative Jon Johnson of New Orleans, won the race for the
Senate. This was good for us because the vacant space on the
House Health and Welfare Committee had been filed by a friend of
ours, Representative Louis Jetson. A vacant place left on the
Senate Health and Welfare Committee was filled by Senator Joe
McPherson, also our friend.
In summary, only one tax increase in 15 years and no anti-smoking
legislation has been successful. A piece of enabling legislation
concerning the Superdome passed this year. It provided the
management with the right to restrict smoking in the Superdome.
After it was passed the Superdome management group realized they
had made a mistake with the legislation. Thus far, no rules of
enforcement have been promulgated.
In New Orleans a "consumption tax" of five percent was levied on
cigarettes late in 1984 and increased this year. A formal
resolution was passed by the City Council that if The Tobacco
Institute could assist in collecting revenues in another way, the
Council would rescind the tax. On December 1, 1986 during the
City Council meeting the consumption tax was amended to be
repealed if the city's earnings tax was ruled constitutional.
The increased consumption tax goes into effect January 1, 1987.
Louisiana, page 6
Outlook
There appears to be no impact on our programs as a result of the
recent elections. Congressman Henson Moore was against tobacco,
but he lost. Clyde Holloway, the new congressman, is a farmer.
It is not known how newly elected Congressmen Richard Baker and
Jimmy Hayes feel about the tobacco industry.
The state of Louisiana's economic picture remains dim. If the
OPEC nations set their oil price at $18 per barrel it will take
several years to restimulate the oil economy. We expect to see
larger deficits, maybe as much as $600 million in projected
revenues.
Two things to consider for 1987 are:
1. Odd numbered years mean non-fiscal sessions of the
legislature. To increase revenues and taxes would
require a special session.
2. 1987 is an election year. House and Senate members
have not recovered politically from the $750 million
taxincrease of 1984. This means Louisiana will
probably remain in a political and fiscal morass for
the next year.
Our most dangerous tifie will be immediately following the-
November elections when we would have to deal with the
p.ossibility of a lame duck session.
December 1986
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