Tobacco Documents Online

i•/(1Fn A1MM(r0n/Nc trQl!h•/t 11/ AA/LRICd. IM!' 4bN~y~.,•rf Arr..+tr* iiK.f/t1t.. Oft) lN•TOtO 'r.rr nf;7 :.ln IIrW JI,}r 6yisf y.fri SAe.( /0r lA afk7J0 (Ti.tJJIOIOff/Irh n(9). , 9141 ?11 VMCSr,A 5k('L-. C•~+ip ~1! K)nk7 7u~ II 1- f)f /N~r /.).17J bp''177}9JpChoshxA'9+~co~ tAibdc vw PA tovp,l (tu1sj.-...o /&„ f7rs7 5~J roav s /30110,"9.~ iNCG`(.5f/+fRrfKCO tA 01(O!(pff) sa7•Jl+f /r,a. tets/ Se.t e1IA ,'q ,W"'IlV10;9 `! t6t7 %1A'''"° u a,nti Jp //V~..t~iy $h.~l, Aturc7+~ AM O?1(S (I fn lMJVff / har (6 (7) lM ll(Jf ~1r as~N~ i ~ ~ 7595t +.7 ea.•xw k?oa llk+k-'O Ars+&Aynn µbu-~n (aC ~ols (?ol) ars•7tto /rn. rJp9I JsV~lS 10260 wlry+/V-M,x. Ibt S/on rx 71nru (>'a) rrl- f1M /!tx (/i•1) .)eo ooW . A11=t,A''Wja lV (a.u1 M~-h[1 /FOr j2TZ. F4i()(EQ" Q~~~/ ~+'yN ~ (MC71~ _ CI Q1nt'T ~~~ ~ (~X~]J~1 SM•Q?,10 ~ A: L.-.. f 't:E~d A/lqON TI1M.7CRIr" I DATR January 20, 1994 TIM 9:00-10:00 PM (CT) sUtZ110StK ABC PaOMAI Prime Time Live Sam Donaldaon, co-anchor: we caught them before, and, tonight, we catch them again: members of Congress living it up at a luxury Florida resort, courtesy of powerful lobbying Qroups. Although what they're doing is not ill ~al, many critics eay it compromises their ability to impartially weigh the public interest against the speeial ~terest when writing laws. This time it's not just your elected lawmakers who are getting the red carpet treatment, it's also their staff inembers. Chief Correspondent Chris Wallace has our hidden camera investigation. Chris Wallace reporting: It'e been a rough winter for much of the country, with punishing storms and brutal tcmperatures, but some members of Congress have been able to avoid much of it, spending their weekends in the sun. Howard Coble (North Carolina Representatlve)t Playing tennis was fun. The comradery with the people there whom I'd seen beforel met some new friends--that part of it was good. 8o, it was a good weekend. Wallace: What makes it an even better weekend is that, for members of Congress, it's all free. All expenses-- plane fare, a room in a luxury hotel, meals, even tennis and greens.feed--are picked up by lobbyists for big companies that have a vital interest in the laws that Congress writes. M.w..ry .-+ft ha/ Irr N.R..."v 'r+v ~....w.+~ w. .w..+r sw.r o.dde la twar... Ay1'. (*RAC0ft.% .rft t..-r*r+r n p.tl[ OrdOV 1pr 1fniM (t M.tlakf.w. A ..Ws.c+k+n. a..n.i...-%w ~.,...v. O....rw..e,.0 Dt^0O o1.J1.Ck1r. A.w% .nr rnw .wrOn.ctwson.n b. w eYVVC ('.ie t.wvMC .rtf .

-2- Paul Equale (Independent Insurance A.qents of America): Look. was this an exercise, to some extent, in relationship building? Absolutely. i+lallaeee The lobbyists are so intent on building relationships, they even take congressional staffers on trips, wining and dining the young administrative assistants who handJ.e the legislative details. Critics call it a blatant effort by lobbyists to curry favor. lCathleen O'Reilly (National Insurance Consumers Organization): It's glad handing, and it is essentially saying 'in exchange for us pampering you and making life comfortable for you when you are out of town, we want you to make life comfortable for us when you are in the legislative process.' Wallacec But when we asked members of Congress why they and their staffere go on these tripa, they said we were the bad guys for following them around. John Breaux (Louisiana Senator): You ought to be ashamed of yourself in reality. I mean you.r program's becoming like the National Inquirer with a TV camera. iQallace: Members of Congress accept more thaa a thousand trips a year from corporate lobbyists, sosle to raise money for charity, far more to exchange information. And many are scheduled for sun-drenched resorts while it's cold and forbidding here in Washington. All of it ie legal, within the rules Congress writes for itself, but some have called it legalized bribery. Two weeks ago, the action was at the exclusive Boca Raton Resort and Club on Florida's Gold Coast where rooms go for more than three hundred dollars a night. We first went there a year ago and found seventeen present and former lawmakers having a good time, courtesy of companies like U.S. Tobacco. Tennis Club Announcer: We will see you next year. January 7, 8, 9 for the 1994 Corporate Charity Claasic. Wallace: We're not sure they meant us, but we decided to come back too. We set up our cameras to see which members of Congress would show up. But the event sponsors were making their own preparations. The resort N has tight security, but U.S. Tobacco brought its own O guarde. The back section of the tennis complex was N

JAN 21 '94 13:59 FROM UMS-HOUSTON PAGE.004 -3- cordoned off. only lawmakers and lobbyists could get close. When one of our people, who was a guest at the resort and wearing a hidden camera, tried to peek at the tennis courts, a guard rushed up to ask for identification and told him to leave. There were other changes. Last year, the corporate sponsors got top billing. (Visual of Sponsors on sign: v.s. SurQicals Warwick, Baker a Fiores Patton, Boggs k Blowt Air Productss Forstmann Little & Companyt Prudential Securitiesl Skadden, AAPS, Slate, l[eagher a Flom; Texaco) But this year, only the charities that would benefit were listed, with no mention of sponsors like U.S. Surgical, Texaco, and Prudential Securities. (Visual of Charities signs: Great Plains Food Bank= Mississippi Special Olympicss International Institute for Alooholisa Rducation and Training). Breauxs A charity event--there's nothing wrong with it as long as it complies with all the rules and regulations. Wallace: Louisiana Senator John Breaux has attended the Boca Raton event every year since it started in 1990. Breaux: All the money that is raised goes to pay for the cost of the event, and the rest of it all goes to charity. Now, I'm not sure what the return is, but I guarantee it's better than most fund-raising events for charity that I've attended. Wallace: All money fros, the event ocsies from corporate sponsors; no tickets are sold. U.S. Tobacco turned down our request for an interview but said off camera that sponsors this year are giving sixty-four thousand five hundred dollars to charity. But the coat of putting on the weekend, according to U.S. Tobacco, was more than one hundred fifty thousand dollars. For instance, the lobbyists got eighteen golf and tennis pros, like Ilie DTastase and Roscoe Tanner, to play with the lawmakers. Just hiring the pros cost in excess of seventy thousand dollars, more than the event raised for charity. Frank Lautenberg (New Jersey Senator)s When the trappings to get you there are- cost more to provide tbe benefit to the charity, that doesn't make sense, and you N don't have to be a rocket scientist to figure that one out. ~ 91

.IAN 21 '94 14:00 FROM VMS-HOUSTON -4- PAGE.005 Wallace: Last spring, New Jersey Senator Frank Lautenberg introduced a measure to limit congressional travel and ban so-called 'charity events.• 90 far- the bill has gone nowhere. How have your colleagues here reacted to your legislation? - Lautenberg: I would say, publicly, support is really good. Privately, 'Frank, what do you want to do this for?' Wallace: Friday afternoon, day one. The six amsmob.rs of Congress begin arriving, and right away we sN sose familiar faces. Senator Breaux who is an avid tennis player heads for the courts. So does Mississippi Senator Thad Cochran who's been here four of the past five years. But there's not just tennie. Oregon Congressman Bob Smith is off playing with a group of Iobbyiats and golf pros. Congressman Nick Rahall of West Virginia is also on the course. Congress is considering several bills aff.cting the tobacco industry, such as a tax on cigarettes to help pay for health care reform. But later, Senator Cochran says no one lobbied him on the trip. Thad Cochran (Mississippi Senator) : ldell. I thinlt they're trying to get together a group of ,people who want to participate in an enjoyable event*and at the same time make contributions to worthy charities. I think that is the purpose of the events. Wallace: And you don't think they're attracted to the fact that you are a U.S. Senator and that you vote on a number of issues that affect their businesses? Cochran: Well, there are a lot of peopl• who are called on to vote on these issues, and I've never voted on on*, one way or the other. because I've played teuuis. Cliff Douglas (Consultant, Advocacy Institute): There is an inherent conflict of intereat in me®bers of Congress being flown to play tennis at luxury resorts by tobacco interests. Wallace: Cliff Douglas is a consultant for The Advocacy Institute, a non-profit group that studies the effect of the tobacco industry's lobbying and campaign contributions. N You're not suggesting that a member of Congress may 0 ~ W GD _ (3D tJ C~

JPN 21 '94 1-4:00 FROM VMS-HOUSTON PAGE.006 -5- be bought for a weekend in the sun, ars you? Douglass One tennis trip doeaa't make a bought senator. 4n the other hand, a lot of theae•trips and the acceptancs of a lot of political action committee money certainly does make a diffsrsnce. Wallace: Saturday morning, day two. Virginia Congrasamati Tho®as.Blilsy is .sariag the warmup that sponsors put into his gift bag. After breakfast in tb.e tennis tent, North Carolina Congressman Ho..ard Coble, another regular here, takes to the court. Later, the tsaais touraamient stops so lawmaksrs and lobbyists can have their pictures taken with the tennis pros. U.S. Tobacco says the wsskead costs sponsors two thousand dollars for each lawmaker, more it their wives comn along. But ConQreasman Cobls sees aothiag wrong with it. When thsss lobbyists pay for you to sp.nd a w.akand in Florida, do you feel you owe thsm anything? Coble: No. Wallacs: You don't fesl at all bshold.n? Coble: No. Wallace: At all obligated? Cobls: No. Wallace: Compromised? Coble: I don't. xo.w maybe I'm sort of oddball by not feeling that way. Wallace: Sunday, day three, and the tournamspt .rraps up. Senator Breaux mskss it to the finila playing with Nastase. Latsr, he joins ConQressaan Blilsy and Senator Cochran in their matching warmup jaoksts to hand out a..ards. And Cochran ..asa• t the only one in his of f ias enjoying the Florida sun. senator, you havs a fsllow on your staff aamsd Haley Pisaksrly, is that correct? COchraII t Mm-hmIIt. F Wallaces Do you know that when you w4re playing tennia in Boca Raton, the same weekend yrur'administrative assistant was having a good tims iYt x,y West?

JAN 21 '94 14:01 FROM UMS-HOUSTON -6- J PAGE.007 Cochran: Well, I didn't know it at the time, or if I knew it, I had not thought about it. Wallace: That's Haley Fisakerly at the bar wearing sun glassee, Senator Coohran's twenty-nine-year-old administrative assistant Nho' been working on Capitol Hill for thre. years. For two days and three nights at a resort in Key West, insuraace lobbyists hosted more than thirty staffers from soste of the most powerful committees in Congress that vote on matters affecting the insurance industry. Hquale: Now, did we have a discussion of the issues? Absolutely. Was there so®e nefarious, underhaaded eecret handshake? Absolutely not. Wallaae: Paul squale, Senior Vice President for the Independent Insurance Agsnts of America, says there was nothing improper about what was called the Congressional Insurance 3emiiaar. Nothing nefarious here? Equale: I don't think so. Wallic.s' Nothing to hide? $quale: No. Wallace: Let me ask you a question. Who were the staffers you invited? Rqualer Oh, I don't have that list at my fingertips. wallaces Would you give us the names? tquale: If I had that list here, I'd be happy to give it to you. Wallace: Equal., who helped put on the weekend, promised to try to get the list, but when he checked with the other groups involved in the event, the word aase back no list was available. The insurasace lobbyists held morning meetings to discuss matters of interest to the industry: establishing a natural disaster fund, baaked in part by ' federal loans so hurricanes, floods, and earthquakes don't bankrupt insurance companiesp reform of Superfund laws, the industry's goal is to limit its liability in ~ ha:ardous waste cleanupep and health care reform. The 0 industry wants a say in the final outcome. N W CD . 1~ ~ ~ •~

JAN 21 '94 14:01 FROM VMS-HOUSTON PAGE.008 -? - This legislation, whether it's passed or killed, could mean huudr.ds of millions of dollars to the industry. $Quale: I'll say it for you. Clearly, there is a financial comdponent to most of the legislation facing any business in the Congress, including the insurance industry. 1Pallaoet The meetings break up by noon. But the lobbyists have scheduled the rest of the day for socialisissg. Some staffers head to the beach where they can charge their lunch and drinks to lobbry.ista .rbo sit with them enjoying the sun. Others head for the golf course where lobbyists pay the forty-nine dollar yYeena fees. One night, cocktail parties are held ou an ocean-front pier and a rooftop veranda. hnother night, there' s a dinner on the lawn of Barry Truaata' s winter White Hous.. The insurance lobbyists say their weekend trip didn't compros<ise the ConQressional staffers anymore than paying Prime Time's Sam Donaldson to speak to an insuranoe me.ting last year compromised him. And they nots that our industry group, the National Crganisation of Broadcasters, does the same thing, taking members of Congress to play golf in Florida or ee the shows in Las Vegas while at the sase time se.king tax breaks and opposing new regulations. squale i There is a.rell-kaonrn quote from a bygone era in politics that if you can't tak. their money, drink their whiskey, and eat their food and then vote against the®, then you don't belong in this business. eaturday, it's more of the samri meetings in the morninQ# playing in the afternoon with the lobbyists picking up th. tab, whioh, by the and of the weekend, comes to about a thousand dollars per staffer. OoBeilly= They become the symbol of Santa Claus becauss... Nallacee Kathleen O'Reilly, President of the National Insurance Consumers OrQani:ation, says the lobbYista are investing in a relationship with ao2gr essional staffers who have tremendous influence on Capitol Bill. O'Reillyt For a t.renty-sis-year-old, often for who this is their first major job out of graduate sahool, it is pretty heady to suddenly.be put in a liano aad to be catered to as if you were royalty. O N 0

JAN 21 '94 14:02 FROM VMS-HOUSTON -8- PAGE.009 Wallaces The generosity of lobbyists certainly isn't lost on oae s<embers of Congress. Congressman Coble doss not travel often. Does sastie of your colleagues abuse this? Do soae of your colleagues go on the circuit? Coble: oh, I'a sure they do. I know for a fact they do. Wallace: You want to tell us sme of your colleagues who abuse the privilege? Coble: I'd be reluctant to do that. I could name thasl, but I think it would not be proper for ms to do that. Wallace: Senator, do you know how many of thase corporate sponsored trips you took? Breaux: I have a record of thea, surs. Wallace, In the last five years for which you filed disclosure reports, you have taken fifty-five trips ovar -a hundred and forty-nine days. Senator, you're one of the most frequent fliers on Capitol Hill. Hreauxt But all of those trips have met with the rules and regulations and ths rulings of the pthics Col4oaittN. That's what we are guided by. I'm not guided by Chris Wallace. Wallaces In the past few years, lobbyists have paid for Breaux to go to West Palm Hsachs Yort 1[yers j lort Walton Beacb, Scottsdale, Arisoua: Palm Spr s= Las VeQasr San Di.Qo and San Yrancisco. There's no 1 t on hom many trips a member of Congress can take. You're kind of on a congressional travel circuit, aren't you? Breaux: No, that's not true at all. NoW' yon mentionsd the naaes of nice places. I don't select .+hsrs they have conferencest they do. O'Reilly: The access is the o:ygan supply of Waashington lobbyists. Wallacss O'Aeilly says that constiser groups like hers can't afford to take members of Congress to rlorida. She says tbe result is that corporate lobbyists Qet N ecisl m~A aaoess s s ecial influanoe ia the lasrs that 0 p p • ~ Ir G~J W ~ O

JAN 21 '94 14:02 FROM UMS-HOUSTON PAGE.010 -9- Congress passs . O'Aeilly: T'he insurance industry would not spend that kind of money to take people to Florida if they did not know from .xp.ri.nce that it would work. Bqnalea It you ar. trying to be involved in th. public policy process, it certainly helps for people who are also involved in that process to know who you are, to r.turn your phoae calis, and to meet with you. wallac.: And don't these trips giv. big bvuiness, give lobbyists like yourself, special access? $qual.i I don't b.li.v. so. Wallaces Meanwhile, sm* members of Congreas say, as long as the rules permit it, they sen no reason to change. llre you going to be back in Boca Raton next year? Br.auxt If they have the event, I•d like to. I think it's a good event. noasldson& You should know that about a year ago, Congr.ssman Andrew Jacobs from Indiana introduced•a bill that would mak. it a federal crime- -bribery-- for members of Congress to take trips funded by lobbyists. As yovu might suspect, so far nothing has happened with that bill. But you can be sure that Prime Time will stay an tha case. ~ i f