Lorillard
870000 State of the States
Fields
- Type
- REPT, OTHER REPORT
- Alias
- 80420370/80420446
- Site
- G65
- Area
- SPEARS/OFFICE
- Characteristic
- OVER, OVER SIZE DOCUMENT
- Litigation
- Okag/Produced
- Date Loaded
- 28 Apr 1999
- Named Organization
- Amer Cigar
- Asheville City Council
- Assn or Industries
- Bismarck Chamber of Co
- Blue Cross Blue Shiel
- Cgi
- Cincinnati Health Boa
- Citicorp
- Citizens Against Tobac
- Citizens for Courtesy
- Consolidated Cigar
- Covington Burling
- First Bank
- Flue Cured Tobacco Coo
- Fraternal Order Police
- Friends of Tobacco
- Garber Brothers
- General Cigar
- Howard Rubenstein Ass
- Intl Brotherhood Fire
- Leaf Tobacco Exporters
- Los Alamos County Cou
- Middleton Tobacco
- NC Citizens for Busine
- NC Dept of Agriculture
- NC Farm Bureau
- NC General Assembly
- NC Grange
- NC House
- NC Senate
- NC Tobacco Growers Ass
- NC Trial Lawyers Assn
- Nd House
- Nd Lung Assn
- Nd Senate
- Nd Wholesale Grocers A
- Nj Assembly
- Nj Comm on Smoking or
- Nj Gasp
- Nj Health Dept
- Nj Public Affairs Divi
- Nm Assn of Tobacco +
- Nm Hotel Motel Assn
- Nm House
- Nm Human Services Dep
- Nm Municipal League
- Nm Restaurant Assn
- Nm Retail Merchants A
- Nm Senate
- Nonpartisan League
- Norwest
- Ny Assembly
- Ny City Council
- Ny Dept of Health
- Ny Dept Tax + Finance
- Ny Legislature
- Ny Public Health Coun
- Ny Senate
- Oh House
- Oh Senate
- Ok Assn of Tobacco Di
- Ok House
- Ok Retail Tobacco Dea
- Ok Senate
- Ok State Legislature
- or Lung Assn
- or Restaurants + Beve
- Pa Assembly
- Pa Consensus Conferenc
- Pa Fire Chiefs Assn
- Pa House
- Pa House Appropriaions
- Pa House Health + Welf
- Pa Interagecy Council
- Pa Restaurant Assn
- Pa Senate
- Pa Tavern Assn
- Pa Volunteer Firefight
- Pee Dee Tobacco Wareh
- Providence Journal
- Rand
- Restaurants of or Ass
- Ri Assembly
- Ri Coalition on Smokin
- Ri Dept of Public Heal
- Ri Housing Mortgage +
- Ri Senate
- Sandia Labs
- Savarese Associates
- SC Agricultural Commod
- SC Bankers Assn
- SC Budget + Control Bo
- SC Chamber of Commerc
- SC Commission on Alch
- SC Dept Health + Envi
- SC Dept of Agricultur
- SC Farm Bureau
- SC Heart Assn
- SC House
- SC Lung Assn
- SC Restaurant Assn
- SC Tobacco Warehouse
- Southwest Bell
- Teamsters
- TI Labor Management Co
- Tn House
- Tn House Commerce Com
- Tn Press Assn
- Tn Restaurant Assn
- Tn Retail Grocers Assn
- Tn Senate
- Tn Wholesale Grocers A
- Tobacco Associates
- Tobacco Associates US
- Tobacco Growers Inform
- Tx Assn of Business
- Tx Assn of Tobacco + C
- Tx Bowling Proprietors
- Tx Cancer Council
- Tx Gas + Pipeline
- Tx Hotel Motel Assn
- Tx House
- Tx Merchandise Vendors
- Tx Restaurant Assn
- Tx Retail Grocers Assn
- Tx Senate
- US Tobacco
- Ut House
- Ut Restaurant Assn
- Ut Retailers Assn
- Ut Senate
- Ut Taxpayers Assn
- Wall Street Journal
- Women Involved in Far
- Wv Lung Assn
- Asheville City Council
- Named Person
- Cheney, R.
- Kruger, T.
- Lancaster
- Neubauer, J.
- Sullivan, M.
- Kruger, T.
- Master ID
- 80420206/0485
Related Documents: - UCSF Legacy ID
- vae00e00
Document Images
New York, page 2
The key question in the Governor's Address will be how to return
the revenue windfall from the federal reforms to New Yorkers.
Under consideration will be a reduction of the personal income
tax to a rate of 8 percent; increasing the $900 personal
exemption; corporate tax reform; and other issues of concern to
the Legislature.
The state presently collects a 21-cent per pack excise tax on
cigarettes, yielding in excess of $440 million annually. In 1985
a state sunset tax was made permanent. In 1986, the Governor did
not propose a tax increase, and no state tobacco tax increases
are expected in 1987.
The fiscal year begins April lst and expires March 31st. The
budget cycle in the New York State Legislature traditionally
begins in mid-January and concludes with the adoption of a budget
by the end of March. Unless unforeseen obstacles arise, it is
expected that the state budget will be resolved prior to April 1,
1987.
Political Situation
Legislative power in'New York State is vested by its Constitution
in a Senate of 61 members and an Assembly of 150 members. They
are elected for two-year terms.
The Legislature convenes annually in January and remains in
session until it has concluded its business.
Currently the Democrats enjoy a 96 - 54 majority in the Assembly
while the Republicans hold a 36 - 25 majority in the Senate. All
assemblymen and senators are up for re-election in 1988.
Governor Cuomo was reelected in 1986 for a four-year term but
speculation exists that he will step down to run for President.
If this occurs, Lt. Gov. Stanley Lundine would become Governor.
RESOURCES: STRENGTHS AND WEAKNESSES
Tobacco Segments
The Tobacco Action Network (TAN) in New York State presently has
1,267 activists, of which most are member company employees.
These activists have been particularly responsive to local
legislative activities in their legislative and legislative
support efforts. This past year our TAN activists were mobilized
on numerous occasions to assist with local and statewide issues.
TAN continues to be a cornerstone for our grassroots efforts and
will remain so into 1987.
While 1986 saw only moderate response from our wholesaler,
retailer and vendor segments, an improved working relationship
during the last half of the year should create a more fruitful
and aggressive program of assistance in 1987.
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New York, page 3
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Business
The business community continues to be extremely responsive on
the issue of public smoking restriction legislation. It has not
been willing to involve itself in any other issues of interest to
the industry. A glaring weakness relates to non-activity by the
business community regarding opposition to workplace restriction
legislation. Outright workplace restrictions are not, in New
York, a motivating influence within the state's business
community.
Labor
Labor coalitions have been helpful in opposing public smoking
restriction legislation. This is true both for state and local
legislative matters. Next year promises greater levels of
activity by labor groups in the state. Through working
relationships with the Labor Management Committee and the New
York State AFL-CIO, it is expected solid cooperation will be
achieved from labor to more favorably affect adverse legislation.
Institute Resources
Legal analyses were provided by Covington & Burling, economic
impact studies by Savarese Associates, ventilation studies by
Gray Robertson's firm, public relations assistance by Howard
Rubenstein Associates, as well as scientific and medical
witnesses provided by TI Headquarters.
This office looks forward to even greater utilization of TI and
member company resources in 1987. -
ANTI-TOBACCO FORCES
In 1986, at the state level, Assemblyman Grannis, the primary
sponsor of anti-tobacco legislation, initiated a major effort to
solicit support from various health organizations throughout the
state. He was in communication with county health departments,
boards of health and other health related associations. Because
of our success in the state legislature in defeating anti-tobacco
legislation over the past nine years, Assemblyman Grannis is
attempting to motivate localities to introduce and adopt local
legislation.
In 1987 it is expected that anti-tobacco forces will push local
legislation and support Public Health Council regulations. GASP,
the lung association and the cancer society are teaming their
forces to conduct an all-out push on local legislative and
regulatory efforts. Additionally, in 1986, they collectively
retained a state lobbyist to promote smoking restriction
legislation and other health-related issues.
New York, page 4
There is little doubt that anti-tobacco forces are more
sophisticated in their approach to promoting anti-tobacco
legislation. 1987 promises to be a much more difficult
legislative year locally as a result of the anti's determina-
tion to promote anti-tobacco legislation and regulations.
TOBACCO INDUSTRY
Brief History of Successes and Problems
New York State is fortunate to enjoy the presence of three major
tobacco companies and several subsidiaries of these companies.
The support provided by these companies has been most valuable in
assisting at the state and local levels. They have been
cooperative and diligent in committing resources.
Local legislation continues to be one of the major problems
facing the industry. It is expected numerous localities will
begin consideration of such legislation. In the state capitol, it
is expected that no major legislative proposals will be adopted.
We have had success in opposing excise tax legislation and that
area will not be troublesome in the near future.
The Public Health Council will be our most serious problem in
early 1987. By working with the Legislature we hope to remove
the Council's supposed authority to enact a statewide regulation.
Major Issues -- State and Local
In 1985, the 6-cent per pack increase in the cigarette excise tax
passed in 1983 was made permanent. No other statewide
legislation has been approved by the legislature.
For the first time in nine years, an onerous public smoking
restriction bill failed to be approved by the Assembly. Problems
exist in two areas, however. The Public Health Council's
proposed regulations could be implemented as early as mid-April.
Therefore, a major effort will be made to prompt legislative
action to preempt this Public Health Council activity.
Our second major problem area will occur in New York City where
Major Koch is actively supporting.a citywide restriction
regulation. Hearings are expected early in the year and every
effort will be made to have the City Council defeat any
restriction regulations. A move to increase the city's local
cigarette tax is also anticipated.
Assemblyman Grannis' "policy bill" is also expected to be
reintroduced and receive legislative consideration should the
Public Health Council issue be deflected by the Legislature.
Grannis is also expected to press on other fronts -- the "I smell
blood" theory. Sampling, advertising, "self-extinguishing" and
ingredients disclosure legislation are all expected.
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New York, page 5
Outlook
In the final analysis, 1986 has been a most difficult year. Next
year will be as difficult. Statewide and local legislation and
regulations will be promoted early and often.
Other major issues in 1987: ingredients disclosure, advertising
prohibitions, sampling prohibition, "self-extinguishing"
cigarettes and product liability legislation. The New York State
Department of Health will continue to promote a major campaign
for smoking restrictions in public places and workplaces.
Local legislative battles will arise in such locales as Buffalo,
Rochester, Syracuse, Albany, Westchester, Saratoga and New York
City. It is expected that at least a handful of other localities
will initiate legislation.
December 1986
I
80420,184
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NORTH CAROLINA
PREFACE
North Carolina has a population of 5.9 million. Because of
ramifications in neighboring states, cigarette tax proposals in
North Carolina are dealt with swiftly and comprehensively.
There are members of the North Carolina General Assembly who
would increase the cigarette tax. There are also a few who would
place restrictions on the use of our product in North Carolina.
North Carolina's market share is 3.4 percent.
STATE OVERVIEW
Economic Condition and Outlook
The budget fo-r fiscal 1986-87 is based on a 6.5-6.8 percent
growth in North Carolina's economy over fiscal year 1985-86. This
growth should bring in $3-4 hundred million in new revenue. Most
of the money is scheduled for education programs. The revenue
projections have been adjusted downward to a 6 percent growth
rate. That means a $40-50 million dollar shortfall for budgeted
programs. The overall effect is all departments. are being asked
to prepare two budgets. One is to be at 97 percent of the base,
the other at 100 percent. The outlook is not bright. 'If the
revenue drops further, the legislature may have to look at some
taxes.
Political Situation
At the federal level, Terry Sanford (D) upset Broyhill (R) for
the U.S. Senate race. This brings a Democrat who will be pro
tobacco. In the House, Lancaster (D), Price (D), Ballenger (R)
and Clarke (D) were elected.
At the state level the Senate leadership is undecided. There are
two strong candidates vying for majority leader. We may see some
strange alliances next session. There should not be any problems
for tobacco. In the House there has been an effort by a small
group of representatives to change the rules and perhaps elect a
new speaker. The outcome will probably be some bruised egos.
while leadership changes very little this session we have friends
on both sides of the fence in the House, therefore, we remain
neutral. Tobacco should not be greatly affected.
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North Carolina, page 2
Significant State Problems
There are several-issues of interest to business that may be
considered during the upcoming 1987 legislative session.
o Workers Compensation - The state Trial Lawyers
Association is interested in changing the present law
which the business community feels is sufficient.
o Tort Law - The Trial Lawyers Association is also
interested in establishing a "comparative fault"
doctrine in place of the present contributory
negligence, which would adversely affect business.
o Environmental Issues - The present state law provides
that no state standards will exceed Federal standards.
Attempts are being made to change the present law to
increase certain state environmental standards.
o The lottery, which failed on a close vote last session,
will be brought back up this session. It could be a
vehicle which provides the revenue to overcome the
- projected shortfalls.
RESOURCES: STRENGTHS AND WEAKNESSES
Tobacco Segments _
All segments of the tobacco industry are present in North
Carolina. -Each is represented by an organization or association.
The Tobacco Institute staff'has been fortunate to maintain good
relationships with all groups.
Growers organizations include:
N. C. Farm Bureau
N. C. Grange
Tobacco Growers Information Committee
The Tobacco Growers Association of N. C.
Flue-Cured Tobacco Cooperative Stabilization Corp.
Leaf Tobacco Exporters Association, Inc.
Tobacco Associates Tobacco Association of the U. S.,
~+
O
The N. C. Department of Agriculture has always been a staunch
advocate for tobacco. The commissioner has dedicated time and
staff to the protection of tobacco.
N. C. enjoys the residence of six cigarette or tobacco
manufacturing plants. In the past each manufacturer has played a
role in the preservation of our industry. From the seedbed to
the supermarket our industry is well represented.
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North Carolina, page 3
Business
There has been little need in recent times"to utilize business
allies in state legislative battles. Since the influence of the
tobacco industry blankets a wide variety of business interests
such as banking, the retail trade, chemical companies, paper
manufacturers, etc., this resource can be effective.
North Carolina Citizens for Business and Industry represents
business in state legislative matters and should be considered a
strong ally on issues of concern to The Institute.
Labor
Labor is not considered a strong resource at the state level and
has not been utilized.
Institute Resources
Our lobbyists have been very effective in the state legislature.
The "Friends of Tobacco," which TI finances, was created for a
legislative support program. It used members and officers of the
various farm organizations to contact state legislators on a
regular basis as well as during a crisis.
ANTI-TOBACCO FORCES
Anti-tobacco forces have been active in Raleigh, Greensboro and
Charlotte. We can expect to hear from them in future sessions.
TOBACCO INDUSTRY
Brief History of Successes and Problems
Throughout the years, all segments of the tobacco industry have
stood strongly in opposition to cigarette taxes and restrictions
at the state and local levels. Last year there was some division
in the ranks because of the anticipated need for revision of the
tobacco allotment program. Most of those problems have been
worked out at the congressional level. Some strong feelings
still remain in certain areas of North Carolina; however, we feel
they can be resolved through good efforts and show of faith on
the part of manufacturers and the farm community.
Major Issues - State and Local
There is a remote possibility we might see the manufacturers tax
introduced again in North Carolina. However, indications from
leadership are that if such a tax is introduced it will not fair
well.
North Carolina, page 4 ( 1
t
There is a small possibility we will see a smoking restriction
bill at the state level. If so this will be brought about by
efforts of the American Lung Association. We expect them to push
their efforts at the local levels.
Asheville is the only locality to consider a smoking restriction
ordinance in the 1980's. In 1984, the Asheville City Council
passed an ordinance to restrict smoking in elevators and certain
areas of hospitals. The original proposal called for
restrictions in retail stores and other public places, but our
efforts helped weaken the ordinance.
The mayor of Asheville stated publicly that the ordinance was a
fire prevention measure considered at the request of the fire
chief and not an anti-tobacco efforts.
Outlook -
Leadership has indicated that they will work with us to prevent
adverse legislation. We are beginning to rebuild our coalitions
this year. If we are as successful as we should be, the tobacco
industry will remain strong in North Carolina.
December 1986 -
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80420?89
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