Tobacco Documents Online

( ( Utah, page 3 ANTI-TOBACCO FORCES Utah was one of the first states to adopt a so-called "Clean Indoor Air Act" (1976). As a result, anti-smoking forces have had little reason to organize. Recently, however, Salt Lake City's Public Health Director, Dr. Harry Gibbons, has become a very outspoken critic of the existing law and succeeded in adopting a series of amendments in the 1986 legislative session. Gibbons succeeded in gaining support for his activities from the state's health department and elements within the University of Utah. The cancer society, lung association, etc., are supportive but not leading the charge, so far, in Utah. TOBACCO INDUSTRY Brief History of Successes and Problems The state-wide Clean Indoor Air Act was enacted in 1976. There has been little or no enforcement of its provisions. The cigarette tax is currently 12 cents, well below the national average. In 1986, the "other tobacco products" tax was increased to 35 percent of manufacturers' selling price. No municipal taxes are on the books and there are no local smoking restriction laws. Major Issues - 1987 A bill to increase Utah's cigarette tax by 8 cents per pack has been pre-filed. Outlook Enactment of amendments to the Indoor Clean Air Act must be considered likely. December 1986 c

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VERMONT C c PREFACE Advertising promotion for the state declares: "Vermont - A State of Mind." That may be the best description of New England's least populated state. Vermont is different things to different people. It is the last bastion of the conservative, Yankee, rugged individualist. It is also one of the final outposts ot the aging, 1960's counter-culture communists from the affluent suburbs of Boston and New York. It has one of the most active, environmental, no-growth, anti-business coalitions in the country, facing one of the fastest-growing resort industries in the Northeast. In some sections the abject poverty reminds one of news photographs of Appalachia. On the other hand, the conspicuous consumption of "Yuppie" skiers from Boston, New York, and Washington is the fuel for the economic furnace that runs the state. In one state, some of the most conservative politicians in the area are squared off against the avowed Communist mayor of the city of Burlington. In all of these aspects, it is not so different from what we see in the rest of New England--just more extreme. There are approximately 800,000 people living in Vermont. It has a 0.3 percent market share and a 17-cent per pack excise tax on cigarettes, compounded by a 4 percent sales tax. Those taxes are collected on approximately 77 million packs of cigarettes, producing state revenues of approximately $13 million in fiscal year 1985. This represents an increase of 700,000 packs and state revenues of $400,000 since 1984. STATE OVERVIEW Economic Condition Unlike New Hampshire and Maine, the growth patterns in Vermont are more evenly distributed, particularly in the development of resort facilities. In contrast, industrial growth has focused in Chittendon County in the extreme northern part of the state. This growth has focused on the city of Burlington, but in recent months has begun to spread out into some of the other outlying areas of the county. It is likely that this economic growth will continue throughout the 1980s.

Vermont, page 2 Following her reelection, Governor Kunin vowed to continue her attempts to bring foreign investment to the state and opened negotiations with trading partners and developers as far away as Osaka, Japan. The biggest single block to continued economic growth may be the lack of skilled and professional labor forces. However, the construction of a bridge tunnel across Lake Champlain, scheduled to begin in 1987, is likely to provide construction jobs and fuel the continued economic growth of the north. The effect of the economic prosperity on the social and political climates of the state -- and the way in which the pebple and the legislature respond -- will determine whether the growth continues and at what rate. Political Situation Recent Vermont politics send mixed signals. Two years ago, the Reagan landslide swept Democrats out of office across New England and the country. In contrast, in Vermont, for the first time in many years, Democrats gained control of the Executive Office, absolute control of the Senate, and were close enough in the House to elect a Democratic minority speaker. The lack of a strong Republican candidate assured Democratic incumbent Madeleine Kunin a second term. However, the addition of Burlington Mayor Bernard Sanders as an independent resulted in the election being thrown into the legislature. The immediate political concern is who will be Speaker of the House. The Democratic/liberal Republican coalition that elected Rep. Ralph Wright as speaker in 1985 and 1986 appears intact for 1987. However, it is always difficult to elect a minority speaker. Following the election of speaker, the goal will be to get through the legislative session with a minimum of difficulty and get on to the business of running for re-election. Significant State Problems Primary problems are a result of the phenomenal growth and prosperity and the indication that this growth and prosperity is likely to continue into 1987 and beyond. The concerns relate to the environment and the destruction of the mountain forests for the development of resort condominium complexes. Those resorts -- built primarily to allow city dwellers from Boston, New York, and Washington to enjoy the pristine solitude of the Vermont mountains -- are destroying the very mountains they seek to promote. Further, their development is stretching the state and local infrastructures to their limits. (

( ( C Vermont, page 3 These complexes often house in excess of 3,000 or 4,000 people and are equipped with support facilities and entertainment complexes. Volunteer fire departments that satisfied the needs of small, rural communities of 1,000 people are no longer adequate to meet the demands of multiple resort complexes. Similarly strained are the rural water supplies, road systems, and electrical delivery systems. One of the largest legislative concerns will be how much of this growth is enough, what kind of controls can be placed on it, and who should be the arbiter of those controls. In addition to these and other problems associated with overall growth and prosperity, the governor would like to develop some sort of program to relieve property taxes. There are also those who suggest that the question of smoking in the workplace is a major state problem. RESOURCES: STRENGTHS AND WEAKNESSES Tobacco Segments The tobacco family in Vermont is extremely small, and the members tend to have difficulty coordinating their efforts. There is neither an organized wholesaler nor vending association. Even the New England Convenience Store Association does not reach into the state. There is a strong retail grocery association, but very few retail tobacco outlets. Over the years, a number of individual wholesalers have been very responsive to requests for legislative action. However, their lack of organization and coordination has required a great deal of personal contact. This contact is difficult and time-consuming, particularly in the middle of a legislative fight. However, our relationship with the Vermont Retail Grocers Association is such that they have lobbied directly on our behalf and given us access to their members wherever and whenever we have needed it. There is far less acrimony and dissension among the wholesalers in Vermont than in other parts of the region. This allows us to organize and coordinate their activities as required, but we still cannot maintain a consistent level of organization between legislative battles. The burden for that organization must fall primarily on the shoulders of the wholesalers who will benefit from it and not be left to the Tobacco Institute. Business Established business organizations are very influential. The Vermont Chamber of Commerce and the Associated Industries of Vermont maintain active and involved legislative committees and full-time lobbyists; and have developed a consistent, credible, and welcomed presence in the Vermont legislature.

Vermont, page 4 On a variety of occasions, these two organizations have provided the industry with outstanding legislative and grassroots support. In some instances, particularly tax-related areas, they have not been able to support us because our success might mean failure for their own legislative goals. Nonetheless, at no time has either of these organizations suggested that the legislature focus their tax-increasing attentions on the tobacco industry instead of their members. In other instances, such as workplace smoking restrictions, they are happy to support our activities and even take the lead in opposing laws to regulate smoking in the workplace. Supporting these two major groups are other organizations like the Vermont Restaurant and Lodging Association and the Vermont Merchants Association. These have far less influence but have been equally supportive in the past. We can expect that support to continue. Labor During the Republican-dominated years, the minimal influence of Vermont labor waned further. For the most part, labor was not a force at the legislative level. With the return of the Democratic party, organized labor has enjoyed a small resurgence. However, their chief lobbyist Steve Kimball has been brought into the Kunin Administration. While he can now act as an inside advocate and spokesman for a labor-oriented administration, he loses the political maneuverability he enjoyed as an external advocate for labor. We do, however, enjoy good relations with the president and current lobbyist for the AFL-CIO. They are extremely interested in the workplace smoking issue, and are likely to support us during the legislative session. On the other hand, the new labor lobbyist has been contacted by the anti-tobacco groups to act as their counsel in 1987. Fire Groups As a result of our activities in the area of "self-extinguishing" cigarettes, we became acquainted with the Vermont Volunteer Fire Fighters Association. During the past two years we have continued to maintain our contact with that organization. While they have never been called on to act on the "self-extinguishing" issue or other tobacco-related matters, they have indicated a willingness to maintain an open mind and provide us with assistance where possible. Institute Resources We have been able to defend successfully against the anti-tobacco activists by utilizing the resources and manpower of our friends and allies, especially in the hospitality and retail grocery industries. C e

( C Vermont, page 5 However, as our legislative needs increase in Vermont, it is likely that we will have to review continually the need for additional legislative help and the help of other consulting services, such as public relations. As in all of New England, one of our biggest assets in the state is our legislative counsel. His access to both sides of the aisle in both houses and to both ends of the political spectrum has made our overall program the success that it is. ANTI-TOBACCO FORCES The anti-tobacco advocates in Vermont cut across all the social, economic, and political strata of the state. The most credible of their number is Dr. Roberta Coffin, the head of the State Department of Public Health. In support of Dr. Coffin are the members of the Vermont Lung Association, Cancer Society, and Heart Association. GASP and ASH organizations also have chapters in Vermont. Activities of these groups are supported by students from the University of Vermont in Burlington's Public Interest Research Group (PIRG) and a scattering of liberal, counter-culturists left over from the sixties. Our observation of the loosely-knit coalition used to suggest that without the leadership and presence of Dr. Coffin, the remaining members of the coalition would dissolve into a strident and fanatical fringe group. However, their goals are supported by the local press, particularly the Montpelier Times-Ar us; and they have engaged a lobbyist for 1987. Therefore, t ey speak with unwarranted credibility. TOBACCO INDUSTRY Brief History of Successes and Problems When viewed in context, the successes of the tobacco industry in the state of Vermont are enviable. In 1983 the state increased the cigarette excise tax from 12 to 17 cents per pack. The last tax increase prior to that was 14 years earlier. During the 1985 legislative session, the state imposed its sales tax on tobacco products. In 1981 a broad "clean indoor act" was defeated by three votes on the floor of the House. Since then the industry has been successful in keeping all smoking restriction legislation tied up in committee and off the floor. In 1984 we made a timely change in our legislative counsel situation and have been able to continue our success in the two years since the change.

Vermont, page 6 Our immediate problems have been few, and yet they suggest that our future problems will be more serious. They focus on the inability of the extended tobacco family to work as a cohesive unit on those legislative initiatives affecting it. To a certain extent, the industry family is content to believe that it can organize itself and respond overnight. It does not yet recognize that a strong, standing organization will be,essential in the more volatile anti-tobacco climate of the future. Again, some of this ongoing organizational activity must fall upon the shoulders of those who reside in the state, not solely on the shoulders of The Tobacco Institute. Major Issues - State and Local During 1987 there is likely to be a single, well-focused attack by the anti-tobacco advocates in the state on the issue of smoking in the workplace. Two separate pieces of carryover legislation received a great deal of attention during the abbreviated 1986 legislative session and were defeated. The bill in the House was a San Francisco-type workplace ordinance. The other in the Senate was a bill restricting smoking in public buildings. There is some suggestion that the Democratic legislature will be inclined to give the liberal proponents of the anti-tobacco legislation at least a piece of the pie in 1987. Our overall goal is to bring pressure to bear from the organized business and labor communities in combination with our legislative and scientific witness programs to defeat again even the most lenient workplace restriction bills. During these efforts on smoking restriction legislation, it must be remembered that, as a result of tax reform, Vermont will once again sustain a deficit. There is currently no indication that tobacco tax bills will be pushed by the legislative leadership or the governor during 1987. Nonetheless, the fact that the state needs money means that the possibility of increasing the cigarette excise tax must be a concern to us. Finally, the large volume of adverse publicity on smokeless tobacco issues has raised some questions about minimum sales age and labelling of smokeless tobacco products in Vermont. It is possible that this type of legislation will become part of the Department of Public Health's legislative agenda for 1987. To date, local smoking restriction activities in Vermont have surfaced only in Burlington. If the organized anti-tobacco movement should recognize the local level as fertile ground, it is likely to move from the city council in Burlington to other locations. Depending on that response, it may move quickly to the town meeting format on town meeting day in either the spring or fall. An organized effort to place questions of smoking restrictions on the ballot on a town meeting day could have a devastating effect on the industry in Vermont. C ( e

( ( ` Vermont, page 7 Outlook The outlook for the tobacco industry and its legislative program in Vermont is not unlike that in the other five New England states. Our supporters are brow-beaten and frustrated. We have brought them to the legislature time and time again to explain the economic impact of a particular legislative action on their industry only to be ignored and in some cases insulted. Our allies beyond the tobacco industry are generally reluctant participants in our legislative battles and would prefer that we fight them without their support. However, with each succeeding year and each succeeding presentation before the legislature, the industry's credibility, particularly on tobacco tax issues, has grown stronger. In 1987 we will attempt to transfer some of that credibility from the economic issues to the emotional smoking restriction issue. December 1986 C

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