Lorillard
870000 State of the States
Fields
- Type
- REPT, OTHER REPORT
- Alias
- 80420296/80420369
- Site
- G65
- Area
- SPEARS/OFFICE
- Characteristic
- OVER, OVER SIZE DOCUMENT
- Litigation
- Nyag/Produced
- 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
- Healthy Majority
- Health Education Cons
- 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
- Me Chamber of Commerce
- Me Grocers Assn
- Me Heart Assn
- Me House
- Me Joint Taxation Comm
- Me Lung Association
- Me Merchants Assn
- Me Senate
- Miami Dolphins
- Mid Atlantic Food Dea
- Mid Maine Medical Cent
- Mi Chamber of Commerce
- Mi Democratic Party
- Mi General Assembly
- Mi House
- Mi Senate
- Mn Dept of Health
- Mn House
- Mn Legislature
- Mn Senate
- Mn Technical Advisory
- Montgomery County Cou
- Mo Assn Candy + Tobac
- Mo Chamber of Commerc
- Mo Hotel Motel Assn
- Mo House
- Mo Restaurant Assn
- Mo Retailers Assn
- Mo Senate
- 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
- New England Convenien
- New England Wholesale
- New Orleans City Coun
- Ne Legislature
- Nh Branch Amer Lung As
- Nh Business + Industry
- Nh Chamber of Commerce
- Nh Hospitality Assn
- Nh Retail Grocers Assn
- Nh Senate
- Nh State Employees Ass
- Nj Afscme
- Nj Assembly
- Nj Business + Industry
- Nj Chamber of Commerce
- 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
- yau00e00
Document Images
MAINE
(
PREFACE
Maine is really two states. The southern coastal regions below
Augusta support more than 50 percent of the total population, and
yet cover less than one-third of the total land mass. The
northern two-thirds of-the state is largely unincorporated
territory, wilderness, logging operations, and highways
connecting a few outposts of human activity. The socio-economic
and political dynamics in Maine can be extremely volatile.
To a large extent, northern Maine is what most people perceive
Maine to be. Southern Maine--like New Hampshire, its neighbor to
the west--is one of New England's fastest growing areas. The
majority of the people who have made up that growth are vastly
different from the traditional Mainers. They demand more of -
government and are willing to pay for it. They are wealthier,
more liberal, and better educated than the indigenous population.
This backdrop of unequally shared growth and prosperity, combined
with an increasingly affluent, activist, liberal population,
suggests continued problems for not only the tobacco industry,
but all business within the state. This has become evident in
recent years. The legislature has enacted increasingly
burdensome tobacco taxes and restrictions on smoking in public
places. In addition, the legislature has enacted the highest
minimum wage base in the country, and workers compensation laws
have literally driven a number of members of the insurance
industry out of the state. The popular notion is that
Massachusetts is New England's most liberal state. Today,
however, many view Maine as the area's most liberal, anti-tobacco
and anti-business state. Ideas and legislative initiatives born
in the think-tanks and back rooms of Boston may be initiated in
Massachusetts, but they are enacted in Maine.
There are approximately 1.5 million people in Maine. It has a
0.5 percent market share and-a 28-cent per pack excise tax on
cigarettes, compounded by a 5 percent sales tax. Those taxes are
collected on approximately 149 million packs of cigarettes,
producing state revenues of approximately $29.8 million in fiscal
year 1985. This represents a decline of 7.4 million packs and an
increase of $300,000 in state revenues since 1984.
STATE OVERVIEW
Economic Condition and Outlook
Maine is a state of economic contrasts. The northern section
relies heavily on its forest products industry, and to a lesser
degree, farm and dairy industries, for survival. Like any region
that does not enjoy economic diversity, a downturn in one of
those major industries can have devastating effects.
Maine, page 2
All across the country, dairy and farm industries are having
difficulty. While the paper industry continues to enjoy
prosperity in Maine, there have been a number of adverse
legislative actions in the last few years which have hit at the
previously unassailable paper industry. These actions may give
some of those major companies concern about the future.
In the southern part of the state, the development of the
tourist, ship-building, fishing, and the service industries has
resulted in phenomenal growth and prosperity. The rate of this
growth has actually caused some to ask if there should not be
more controls on the rate and type of growth that is allowed in
the state. One of the most influential parts of this growth is
the Bath Iron Works and its locations-in both Bath and Portland.
Notwithstanding the activities of the ecologists and the
environmentalists, it is likely that the tourism and resort
industries will continue to grow during the next few years, and
will replace the paper industry as the state's largest employer.
Political Situation
The year 1986 was one of the most politically interesting and
active in some time. The Democratic party strengthened its
control of both houses. However, battles with broad interest and
appeal were fought for the statewide and federal offices.
Governor Joseph Brennan's second term expires in January 1987.
He will move to Washington as the narrow victor in the First
Congressional District race. While a variety of political
leaders in both parties tested the waters of the governor's race,.
the final candidates were Attorney General James Tierney and
Congressman John McKernan. Although McKernan will be governor,
Tierney will probably continue as the legislatively-elected
attorney general.
Significant State Problems
Primary legislative concerns in 1987 will likely focus on
environmental topics. These will include solid waste disposal,
low-level nuclear, waste disposal, ground water pollution, the
ecological impact of hydro-election production, the Bay of Fundy
electric generation project, and others. Beyond this, a variety
of issues will come back to haunt legislators in Maine. These
are likely to include education, its quality, funding, and the
accountability of its practitioners; workmen's compensation; and
unemployment compensation. Any one of these is a tough issue.
However, the combination of a variety of difficult and media-
sensitive topics and state-wide elections is likely to make for
some very interesting legislative action. .
C)
Maine, page 3
(
RESOURCES: STRENGTHS AND WEAKNESSES
Tobacco Segments
Like the rest of New England, the tobacco industry in the state
tends to be disorganized and torn by a variety of petty
disagreements and competition. What organization exists, we
impose. The fact that there is not an organized wholesaler
association in the state requires a great deal of individual
contact. In contrast, the Pine Tree Vending Association, Maine
-Grocers Association, and the Associated Grocersof Maine are
extremely helpful sources of both legislative lobbying support
and grassroots involvement. For the past few years, our
relationships with these three groups have grown. They are
excellent allies.
Business
Even on matters unrelated to the tobacco industry, the business
community in the state of Maine has little real legislative
clout. This can be seen in some of the major defeats -- including
those in workmans compensation and minimum wage -- it has
suffered over the past few years.
The two main organizations representing the community, the Maine
Chamber of Commerce and Industry and the Maine Merchants
Association, have attempted to be helpful to TI and our
legislative counsel on many bills from smoking in the workplace
through sampling and advertising. Nonetheless, they are also
constantly seeking ways in which to ingratiate themselves with
the liberal Democratic majority in the House and Senate. Too
often, this has caused them to seek compromises at an early stage
rather than maintaining a strong opposition.
We have always been able to access the various associations'
members'and have found them helpful with support when they can.
Labor
Unlike other states where the AFL-CIO and general labor community
are suffering from declining blue-collar employment and a loss of
interest among workers in union concerns, Maine's labor
community, particularly the AFL-CIO and the state employees
union, are alive and well and somewhat influential.
In prior years organized labor testified on our behalf, in
opposition to both smoking restriction legislation and tobacco
tax legislation. In 1985 Maine labor took a more active role as
a result of the interest and involvement of the Maine Locals of
the Bakery, Confectionery, and Tobacco Workers Union.
C
Maine, page 4
a
It is likely that we can continue to count on their support.
However, as with business, tobacco-related issues are not of the
highest priority to the labor movement.
Institute Resources
In the last few years, the most valuable resource TI has in the
state (outside of our legislative counsel and his law firm) has
been the Maine Grocers Association. On numerous occasions, that
organization and its sister group, the Associated Grocers of
Maine, have almost literally turned over the operation of their
associations and their members to the Tobacco Institute.
To a lesser degree, the members of the vending industry have
provided support, mostly on tax-related matters. The key
individual resource in the state is Mr. Charles Canning of Pine
State Candy & Tobacco, his management staff, and the 200
employees located primarily in Augusta but travelling throughout
the state.
If we are to be successful in 1987 and beyond, we must continue
to develop friends and allies in the moderate-to-liberal wing of
the Democratic party.
ANTI-TOBACCO FORCES
Under the Coalition on Smoking OR Health, anti-tobacco activists
in Maine developed a well-coordinated attack in the state
legislature. They are led by the Maine Lung Association, Cancer
Society, and Heart Association. However, there are 24 other
members of the Coalition. It is supported by State Public Health
Commissioner Michael Petit and championed in the legislature by
Reps. Merle Nelson and Peter Manning. In the past, they have used
the shotgun approach to legislative activities, and we were very
successful in deflecting their attacks. In more recent years,
they have learned to focus on one or two objectives.
In 1983 and 1984 the Coalition focused in a timely fashion on
tobacco taxes. Their goals of increasing product cost and
imposing a certain level of punitive taxation on tobacco products
combined very well with the state's need for additional revenues.
Many members of the Joint Taxation Committee would privately jeer
at the tobacco "crazies." Publicly, however, they enjoyed and
encouraged support for tax legislation providing additional
dollars for major state projects: aid to local education and tax
reform. In 1985 the anti's focused on a San Francisco-type
workplace bill and came away with a vastly weaker piece of
legislation. In 1986 their focus was on smokeless tobacco, and
they were successful in their efforts to impose a 45-percent tax
on the product.
(
eh
Maine, page 5
C
C
c
TOBACCO INDUSTRY
Brief History -
The legislative history of the tobacco industry here is somewhat
checkered. In one state, we are losing the only governor to have
vetoed anti-tobacco legislation on two occasions. At the same
time, we have the calamitous 18-month period when Maine increased
its cigarette excise tax first from 16 to 20 cents, then imposed
the state sales tax, and then further increased the excise tax
from 20 to 28 cents.
Our past successes may have contributed to our recent setbacks.
Until the 1983 session, we were effectively winning every major
legislative battle. The perception that the tobacco industry was
simply winning too many took focus. That is a perception that no
legislator or legislative body wants to encourage.
We enjoyed success because we had the best legislative counsel in
the state and because we were able to support him with both
quantitative and qualitative grassroots input. However, in
recent years, the overwhelmingly negative press, a more
coordinated attack by the anti-tobacco community, and a firmer
control on the legislative process by the more liberal elements
of the Democratic party have resulted in an inability to defeat
all legislation. This condition is likely to continue into the
future.
Major Issues--State and Local
At the state level, it appears that the anti-tobacco activists
will be pre-occupied in 1987 with smokeless tobacco and
youth-related issues. These attentions should include cigarette
methods of product promotion, including sampling and advertising.
Also, we are likely to see an attempt to expand and enforce the
current workplace law.
The rash of local anti-tobacco ordinances has not yet struck
Maine, nor is it likely to do so in the foreseeable future.
However, if and when it does occur, it is likely to happen first
in the southern cities, followed shortly by action at the town
meeting level throughout the state. A well-coordinated town
meeting attack on the tobacco industry could be devastating.
Outlook
The next few years in Maine are difficult to predict. If the
national anti-tobacco fever continues to grow, it will be fueled
locally by the Boston and local media outlets. There will be
continued pressure brought on the legislature to restrict smoking
and smokers throughout the state.
Maine, page 6
Four years ago at a legislative hearing, a woman from Gardiner
suggested that the worst form of child abuse was that which
forced a child to live in a household with a parent who smoked.
The elderly woman suggested that it should become the state's
duty to identify those smokers with children, inform them that
they were being investigated, and if they did not refrain from
smoking in the home, they would have their children removed and
made wards of the state for their own protection. At the time
most people felt that this was fanatical. During 1985, without
suggesting any state actions or remedies, the director of the
Mid-Maine Medical Center in Portland called cigarette smoking by
parents a form of child abuse. No one laughed. During 1986 the
NRC reported on the effects of ETS on children. Some people in
the state may think the 1983 statement was on target.
December 1986
C
e
I
V
8U4203~,2
.J
MARYLAND
(
Maryland,'the headquarters for major anti-smoking groups such as
GASP and ASH, and having a high concentration of federal
government employees, presents a unique challenge in fighting
smoking restriction legislation. Maryland has a population of
4.2 million and its market share is 1.9 percent.
STATE OVERVIEW
Economic Condition and Outlook
The economy remains diverse. Twenty percent of employment is
government oriented. Revenue growth predicted for 1987 will be
in the seven percent range. The state has a built-in increase of
five percent. State leaders are awaiting federal tax changes
which have not yet been quantified. There is a possibility of a
$2 billion gain in personal tax, plus a $250 million change in
corporate tax gain. In addition, there is a potential for $100
million more in miscellaneous areas.
For fiscal years 1987-89, projections are for stability with
modest growth. Maryland will have a significant budget surplus
in fiscal year 1987. Most of this will be as a result of recent
federally enacted tax reform. Therefore, no tax increases are
expected during the 1987 session of the legislature.
Maryland ranks high in per capita income, about 10th in the
nation. Of the nonagricultural work-force, manufacturing
employment is a moderately small part (12.3 percent), while both
services (23.8 percent), and government employment (23.3
percent), are larger.
Maryland also ranks high in the following economic indicators:
state and local per capita revenues (14th); state and local per
capita taxes (10th); state debt as a percent of state revenues
(13th); and state and local tax effort (11th). Maryland ranks
low in state aid from the federal government (38th).
Maryland depends more heavily than most states on selective sales
taxes. However, Maryland has a very low tax rate on distilled
spirits (47th), slightly lower than average on beer and wine
taxes, and also lower than average on public utility tax rates.
Its 13-cent cigarette tax is lower than the national average. "L
c
Maryland, page 2
Political Situa tion
The Maryland legislature is Democratically controlled by a wide
margin. In the House there are 124 Democrats and 17 Republicans.
In the Senate there are 41 Democrats and 6 Republicans.
1986 was an active year for Maryland politics. All state- wide
elected offices were open in 1986. Maryland is unique in that
all state House
and end at the and
same Senate
time. seats are four year terms that start
The membership of the Maryland Congressional delegation changed
dramatically as a result of the 1986 elections. There was nearly
a 40 percent turn-over rate in the state legislature due in part
to the number of state delegates and senators running for the
U.S. Senate seat being vacated by Senator Mathias and for four
congressional seats being vacated by incumbents.
Third District Congresswoman Barbara Mikulski was elected to the
U.S. Senate. The four incumbents seeking re-election to Congress
- Dyson, Bentley, Hoyer and Byron - won without much trouble.
The races for the remaining four seats shaped up as follows:
Third District - Former House Speaker Benjamin Cardin won
election to Mikulski's old seat.
Fourth District - Incumbent Majorie Holt retired. N.B.A.
basketball player Tom McMillan (D), won the election to this
seat in a very close vote.
Seventh District - Incumbent Parren Mitchell retired. The
winner was Kweisi Mfume (D), a former Baltimore County
Councilman.
Eighth District - Incumbent Barnes ran for the Democratic
nomination for the U.S. Senate race and lost. His seat was
filled by former state legislator, Delegate Connie Morella, a
Republican.
C
In the ra
won elect ce for Governor, Baltimore Mayor William Donald Schaefe
ion. _. r
Significa nt State Problems
There are
1987: four significant problems facing state legislators in
~
a. Resolving the savings and loan crisis. ~
b.
Medical malpractice and general insurance liability
availability. t~?
O
G.7
c.
d. Health cost containment. "
Transportation and education.
rA
e!
C
(
Maryland, page 3
RESOURCES: STRENGTHS AND WEAKNESSES
Tobacco Segments
The tobacco segment is relatively strong in Maryland,
particularly at the wholesale level. The Maryland Association of
Tobacco and Candy Distributors and the Maryland/D.C. Vending
Association have large memberships and are very active
politically at the state level.
Tobacco is grown in a small section of the state which provides
allies in the legislature with a.strong vested interest in
opposing anti-smoking legislation. The Maryland Farm Bureau has
been active in fighting such measures, but the Maryland Tobacco
Growers Association has not.
The company sales departments have a fairly limited number of
sales personnel in the state. Most are concentrated in the
suburban Washington and Baltimore markets.
Business
Business organizations such as the Chamber of Commerce, Maryland
Restaurant Association, Maryland Hotel and Motel Association, the
Maryland Association of Retail Merchants and the Mid Atlantic
Food Dealers Association are politically active and have
considerable clout. They have all testified in opposition to
smoking restriction bills. _
Labor
Organized labor is particularly active in Maryland, with the
Bakery, Confectionery and Tobacco Workers International Union
headquartered in the suburban Washington area. Labor has been
very helpful with tobacco legislation and often testifies on our
behalf. This includes the state AFL/CIO as well as the other
unions, such as the state employees union.
Fire Groups
The most active fire groups in the state are in the Baltimore
area, which was one of the pilot cities for the initial T.I. fire
program. , -
Gb
~
.~
The Institute's resources in Maryland center on the business tU
community and the various business organizations in the state. ~O
.,. :. .. _ _: . . f.~
."J!
Institute Resources
