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PLAN OF ACTION EXPANSION OF TAN' INTO THE SOUTHEASTERN STATES - 1981 Prepared by TAN, June 3,©, 198&

I INTRODUCTION 2024077839

INTRODUCTION

We are pleased to present our plan for completing the mandate given us some two and one half years ago when th~e Tobacco Action Network program was approved as a priority program in the Tobacco Institute business plan. Muchihas happened since then. The foundation of the 50-state national pro-tobacco organizationithat our member companies envisioned has been firmly set into place. TAN is operating in 36 states, under the direction of 17 state directors. By the end of 1980, 20 state directors will be operating in 41 states. For the first time, members of the tobacco family in these states have been unified. Und'er the TAN banner, they are working to blunt the anti-tobacco attacks on the industry. They have been remarkably successful. Th~e value of a coordinated national pro-tobacco force has beenidemonstrated very clearly. TAN is working! N O N Now it is time to bring TAN up to the full potential mandated two $kDh the heartland of the tobacco Q incliud'in h lf ars a o b d' g ye g - y an one a family, the southeastern states. " GO ~Pb 1-h

TAN NEEDS THE TOB'ACC&GROWING STATES Obviously the heart of the tobacco family is in the southeastern states. These states, therefore, are crucial to the validity of the nationwide TAN effort. When "Tobaccoland" is officially included in the TAN structure, the TAN pro-tobacco message will be able to be delivered at full strength. WhemTAN acts, it will clearly be acting for all of tobacco. This extra - and most important - clout will most certainly make the TAN effort even more effective, especially on the national and state legislative levels. A total national response will also help TAN counteract proposed anti-tobacco rules and regulations by such federal agencies as the FDA, CAB, and FTC, wh~en needed. In TAN's first CAB letter writing campaign, the response from the tobacco states was pitifully small. In the future, we would hope the response from the major tobacco producing 'states will be the strongest of all the TAN areas. This is as it should be! There will be another benefit when TAN expands into major tobacco growing states. The stature of the organization will be further enhanced, and~ that will help TAUgain even broader support from the various elements of the tobacco family throughout the nation.

THE TOBACCO'GROW'ING STATES NEED TAN The attack on tobaccolis national iniscope. Countering it requires a unified, coordinated national effort. That is, in fact, why TAN is so badly needed and was created~as a 50-state nationwide organization. The tobacco growing states are not immune to anti-tobacco efforts. Many potentially-damaging proposals have been introduced in state legislatures and local communities throughout the southeast. Addendum A to this presentation outlines these proposals. They represent challenges that TANIwas designed:to overcome - more will surface in the future. The many tobacco-family organizations already in place ini the southeast are functioning well in their specific problem areas. Th~e expansion of TAN into the southeastern states will not affect their important work. Rather, TAN will, rally them under a national banner and permit them to participate in and support coordinated efforts in those areas that affect the tobacco family as a whole, an effort which is lacking at present. TAN will permit the great strength of th~e tobacco heartland to be mobilized against anti-tobacco efforts elsewhere in the nation. TAN will permit this area to speak out as one, in favor of the tobacco point-of-view.

WITH THE TOBACCO' GROWING STATES THE FULL POTENTIAL OF TAN CAN BE REALIZED When the tobacco-growing states are included in TAN, the nationwide organization mandated by the member companies on November 8, 1977 will be totally in place. At this point, the full potential of TAN will begin to be realized throughout the nation. All the basic industry- segments will then be a part of TAN. The work of the TAN organization can then be directed more effectively to fight efforts at federal, state, county, and municipal levels to restrict or prohibit the use of tobacco or to increase taxes. And, in the longer term, TANican more readily help create a greater sense of unity and pride among the members of the tobacco family, as well as a more positive image for tobacco with the general public.

IMPLEMENTATION ~ 2024077845 ~

IMPLEMENTATION

IMPLEMENTING TAN IN THE SOUTHEASTERN STATES 1 - PERSONAL PRESENTATION AND EXPLANATION OF TAN TO KEY MEMBERS OF ALL TOBACCO-RELATED GROUPS; REQUEST SUPPORT 2 - RECRUIT AND HIRE STATE DIRECTORS 3 - OPEN STATE OFFICES 4- ORGANIZE STATE TAN'ADVISORY COMMITTEES 5 - BEGIN TAN MEMBER ENROLLMENT PROCESS 6 - PUT TAN TO WORK

li. PERSONAL PRESENTATION AND EXPLANATION OF TAN TO KEY MEMBERS OF ALL TOBACCO-RELATED GROUPS; REQUEST SUPPORT All tobacco-related groups in each state will be identified, including both primary and secondary types. Primary groups are defined as those composed of people who make their livings directly from the production and ~ the manufacture, distribution and sale of tobacco products. Secondary groups are defined as those individuals, companies and supplier organizations that provide services or products to the primary groups. Addendum B to thi.s presentation lists key primary group contacts imthe six tobacco-growing states. The list also includes key political figures from~each state. The presentatiomand explanation of TAN to key contacts will be handled by Horace Kornegay, with support from other Tobacco Institute and TAN officials. It will be emphasized' strongly that TAN will not replace or conflict with any existing organization. TAN's function is to indentify, enroll, educate, and' activate individuals to respond~to anti-tobacco legislative or regulatory action affecting the industry as a whole. Leaders of existing tobacco organizations recognize a need'o to be more involved in countering the anti-tobacco movement.

A. State Farm Bureau Federations The first presentations will be made to the State Farm Bureau Federations - the groups that most closely represent the views of the tobacco farmers. Mr. Kornegay will appear before the tobacco committee of each Farm Bureau in major states to request a resolution, inisupport of the TAN program. Mr. Kornegay willl then be available to appear at the FarmiBureau's Annual Convention tolexplain the program to the entire organization, if required. B. Political Leaders Having gained the support of the State Farm Bureau Feder- ations, contact will be made with the state political leaders to explain the purpose and goals of TAN. C. State and Regional Tobacco Groups Representatives of all major tobacco groups in each state will then be invited to a central location where Mr. Kornegay and other industry leaders will introduce TAN. An explanation will be given of how TAN will function in relation to the existing groups, and how it will benefit each of them, the state as a:whole, and the entire national pro=tobacco effort.

With the acceptance of TAN by tobacco organizations in a state, the next step in the implementation process can proceed.

2. RECRUIT AND HIRE STATE DIRECTORS Staffing will be on a multi-state basis, with one State Director for each of the following state combinatioms: Virginia, West Virginia, Maryland, and D.C. Georgia, Alabama:, and Mississippi Kentucky and Tennessee North Carolina and South Carolina * Recruitment'and hiring of the four southeast State Directors will foll'ow the procedures already established by TAN. Each State Director should be in!his or her mid-thirtes or older, have a thorough knowledge of the tobacco industry and have an interest in helping to solve our problem~s. As each State Director is selected, an office will be established. ~ Note - A State Director has been authorizedl to be ~ O N hired for Maryland and D.C. during 1980; upon ~] O approval of this plan the State Director would ~ be assigned Virginia and West Virginia in January, 1981. ~ ~ ~

3'. OPEN STATE OFFICES Recommend'ed office locations and proposed~dates and~ estimated budget for opening are as follows: - Virginia, West Virginia, Maryland, D.C.- * Operate from TAN National office Open January 1'981 - Estimated 1981 Budget -$92,000 Georgia, Alabama, Mississippi - Operate from TAN Area office in Atlanta, Georgia Open April 1981 - Estimated 1981 Budget -- $8'0,000 Kentucky and Tennessee - New office in Lexington,, Kentucky Openi June 1981 - Estimated 1981 Budget -- $5$,000 N!orth Carolina and South Carolina - New office in Raleigh, NorthiCarolina Open October 1981 - Estimated 198'1i Budget -$37,000 Total Estimated 1981 Budget -------------- $267,000 As soon as each office is opened, the next step of the implementation program can begin. * See note preceeding page.

4. ORGANIZE STATE TAMADVISORY COMMITTEES The new State Director in each locale, with assistance from Washington headquarters, will form a State TAN Advisory Committee. It is anticipated that the Advisory Committees in the tobacco-growing states will be larger than those formed in other staffed~ states. This will accommodate the greater number of existing t.obacco-related~ organizations and associations that should be represented. Manufacturers will be rep esented by a high ranking official from each company. He or she should be well- connected with headquarters as well as company sales representatives covering the state. Thus - individuals with direct knowledge of the excellent current pro-tobacco efforts and programs already underway in the area will be available to share their experience with the new TAN organization, and to provide guidance in the unified approach. After each State Advisory Committee is formed, TAN membership enrollment will begin.

5. BEGIN TAN MEMBERSHIP ENROLLLMENT PROCESS TAN already has an effective enrollment program und'erway inithe rest of the nation,and it will be put into effect inithe southeast area. Much of the effort will be directed at the current tobacco organizations to achieve group enrollments. Enrollment procedures will concentrate on personal contact and presentations throughout, rather than, indirect methods such as mass mailings. Addendum C itemizes potential enrollment figures for the southeastern states. As the TAN membership grows, the organization can be put to work.

6. PUT TAN! T0 WORK With the enrollees on board, the nationwide TAN orien- tation, education, and training programs can be inaugurated. Then the TAN members will be called upon as necessary to respond to specific anti-tobacco initiatives. It should be re-emphasized! that TAN was created to respond to proposed legislation or regulations that affect the entire tobacco industry, not proposals that affect only one particular segment of the industry. For example, TAN could be involved in the on-going legislative effort to discontinue the price support program. It would not be involved in proposed.rules by the U. S. Department of Agriculture regarding a procedure within the price support program that might evoke different reactions from various elements of the industry. Nor would it become involved in tobacco tariff regulations, thie U.S.D.A. Four Leaf program, regulations on the lease and transfer of leaf across county lines, or the bal'ed burley program. TAN'was created to represent the entire tobacco family - including the Tobacco Tax Council. If the original mandate for TAN' is to be realized, there should be one total industry grass-roots program.

The Tobacco~Tax Council will continue to be encouraged to participate in TAN. Full cooperatiom between the Tobacco.Tax Council, the Tobacco Institute, manufacturers, and other pro-tobacco organizations is vital to the success of TAN in the south- eastern states. TAN must be clearly defined's as a total industry organization to avoid the appearance that the program will usurp the responsibilities of existing tobacco organizations.

IN SUMMARY The time has come for TAN to assume the full nationwide scope that was originally mandated for it, by expanding to include the heart of the nation's tobacco family - the southeastern states. Withithese states firmly im the organization, TAN canitruly act for all of tobacco. The success that the effort has achieved thus far is just the beginning! With all the pro-tobacco resources mobilized under the TAN'banner, the benefits originally envisioned by the member companies can be more readily achieved. Withithe approval of this plan, we will begin to expand the TAN program into the southeastern states in 1981. The pressures on the industry continue to grow. With:the entire nation mobilized, the tobacco family will be in a fa orable position to meet and beat the ongoing challenges. We believe TAN is much needed and will be well received in the Southeastern States.

ApDJ5NDUM A 2024077858

ADDENDUM A LEGISLATIVE HISTORY

ALABAMA Smoking Restriction Legislation State 1980 In the 19'80 session, no smoking restriction legislation was introduced. However, TI Legislative Counsel Knox Argo indicated that he had spoken with a prominent anti-smoking activist in the state who indicated that there will be a major push in 1981 to pass a state-wide restriction bill. 1979 H-623 - Would have restricted smoking in certain places and areas and prescribes penalties for any violation. Smoking would be prohibited in health care facilities, public elevators, andany place prohibited by the fire marshall or by other law, ordinance', or regulation. Died with adjournment. S-404 - Companion to H'-623. Would have restricted smoking in certain places and areas and~prescribes penalties for violation of this act. Died with adjournment. H-781 - Would~have restricted smoking in certain places and~ areas. Died with adjournment. 1978 S-191! - Would have restricted smoking in healthicare facilities, elevators and any place prohibited by the fire marshall or by other law, ordinance or regulation. Defeated in committee by 3-3'vote. 1977 H-185 - Would have prohibited smoking in patient areas of health care facilities, schools, office elevators. Died in Committee. 1976 H-221 - Would have restricted smoking in certain public areas. Similar to Minnesota Law. Died with adjournment. 1975 H-140 - Would ha e banned smoking in certain public places. Died with adjournment.

Alabama (continued) Local 1980 Montgomery City Council rejected resolution to ban smoking at council meetings; council voted 6-2 to install an exhaust fan in the council chamber and to, provide for a smoking section in the auditorium. 1978 Homewood City Council passed smoking restriction ordinance. Smoking is restricted'n in retail stores, hospitals, cultural areas and public meetings. 1976 Birmingham banned'smoking onicity buses. Birmingham City Council passed aniordinance prohlib- iting smo ing in public buildings, at public gather- ings and other public places. Selma City Council bann~ed smoking in city owned buildings except in designated areas. Tax 198'0, H-8'4 - Increases cigarette tax from 12 to 16 cents per pack. Enacted. H-508 - Would increase cigarette cents per pack. Pending. tax from 12 to 14 H-9'41 - Allows Bibb County to enact 2 cents local cigarette tax. Enacted. H-1063 - Allows Baldwin County to enact 2 cents local cigarette tax. Enacted. 1979 H-582 - Wouldihave increased cigarette tax from 12 to 15 cents per pack. Died' with adjournment. 1969 Last cigarette tax increase 10 to 12 cents per pack. Miscellaneous 19,80 S-52 - Would have provided for tax credit for pay- ments for enrollment in programs for dieting,or stopping smoking. Died on calendar. 1979 H-58'2 - Would have levied a license or privilege tax upon every personiwho sells, stores, or re- ceives cigarettes for the purpose of distribution. Died with adjournment.

GEORGIA Smoking Restriction Legislation State 19801 H-472 - Would have restricted smoking in hospitals and health care facilities except in designated areas. Killed in Committee by 8 to 7 vote. 1979' H-474 - Would have restricted smoking in hospitals and health care facilities except in d~esignated' areas. Carried~ over to 1980 session. 197$' S-330 - On reconsideration, House failed to pass by 77 to 70 votes. 1977 S-330 - Would have prohibited smoking in certain places in hospitals and healthicare facilities. Passed Senate by a vote of 41 to 12. Passed House by a vote of 108 to 46. Motion to reconsider passed. Referred back to Committee. 1976 HR-961 - The Georgia Legislature recommended that all hospitals and health care facilities prohibit smoking in areas occupied or frequented by non-smoking patients, and to allow smoking by visitors and staff only in clearly designated smoking areas. 1975 Enactediinto law a bill to prohibit smoking in ele- vators, public transportation vehicles and any public place where no-smoking signs are posted. Local 19'80 Athens City Council adopted~a ban on smoking in City Council chambers by a 3 to 2 vote. MaconiCity Council passed a resolution prohibiting smoking on the main floor of the city auditorium unless special permission is granted in lease agreements. Smoking is also prohibited in balconies, elevators, and in the lobby areas located just outside the main floor area. 1976 Columbus- Ordinance adoptedi that prohibited smokingg on the first five rows of seats on Columbus Transit System buses. Tax 1980 H-1433 - Would have increased cigarette tax fromi12 to ',7 cents per pack. Dizd'i with adjournment.

Georgia Tax (continued) 1971 Last cigarette tax increase 8'to 12 cents per pack. Miscellianeous 1980 H-621 - Would have imposed on each seller (manufacturers and wholesalers)~ an annual excise tax of 3 cents on each $100 gross proceeds to fund the resource conserva- tion, recovery and beautification act. Died with adjournment. 1979 H-621 - Would have imposed on each seller (manufacturers and.wholesalers) an annual excise tax of 3 cents on each $100 gross proceeds to fund the resource conserva- tion, recovery and beautificatin act. Carried over to 1980.

KENTUCKY Smoking Restriction Legislation State While no state legisl'ation to restrict smoking in public places or to increase cigarette taxes has been introduced in the past four years, there is an active chapter of GASP in Louisville that been seeking a sponsor for a:smoking restric- tion bill. The president of this chapter, Roger Setters, appeared as a witness before the National Commission on Smoking and Public Policy at the Atlanta meeting in June of 1977. He was quoted as saying "We are trying to approach it kind of on a general, gradual basis and we are going to hit places where we feel like there is an obvious reason for (banning smoking) - - - grocery stores, hospitals, places of public gatherings. If we can get these through it will give us something to work with, a foundation to build on." 1976 H-693 - Would have segregated smokers and nonsmokers in places of public assembly. -Died with adjournment. H - 178 - Bars smoking on school premises. Passed March 20, 1876. Enacted into law. Local The Jefferson County Fiscal Court is considering a:proposed ordinance to restrict the use of outdoor advertising. Since this proposal would affect all of the tobacco products manufacturers, TAN would be a useful vehicle in which to generate grass-roots oppositon to the ordinance. At this writing, no action has been taken on the proposal by the Fiscal Court. 1979 Louisville - University of Louisville rescinded~ smoking ban in Freedom Hall. Athletic council had~ previously bannedi smoking during basketball games. 1'9'75 Lexington - University of Kentucky, Lexington Senate voted to establish a no-smoking policy in classrooms. Enforcement of policy is left to the administration. Tax 1970 Last cigarette tax increase was 2.5 to 3 cents per pack. Miscellaneous 1978' Fd'-253 - Imposed litter tax of 3 cents on each $100 of gross proceeds in litter-related, industries, including cigarettes and tobacco products. Signed by Governor.

MISSISSIPPI Smoking Restriction Legislation State 1980 S-2830'- Would have restricted smoking in facilities owned or leased by the state or by any governmental sub-dIvision and at public meetings. Would restrict smoking in a privately owned establishment if the person in charge of such establishment posts "no smoking" signs. Violation of this act is a misdemean- or and punishable by a fine of up to $25. Died with adjournment. HRES-14 - Would have created a new house rule to pro- hibit smoking food, drink or newspapers in Chambers during session. Killed in Committee. HRES-19 - Would have created new house rule prohibi- ting smoking, foodi, drink or newspapers in House Chambers. Killed in Committee. H-562 - Would have prohibited smoking in public buildings violation is a fine up to $50. Died with adjournment. 1979 H'-107 - Would~have prohibited smoking inipublic ele- vators. Reported out of committee and died on the calendar. 5-2531 - Would have prohibited smoking in any enclosed indoor auditorium, gym, coliseum, arena, concert or lecture hall, or theater which is owned or leased b any governmental entity; prohibits smoking in any public meeting. Prohibits smoking in private establishments whenisigns are posted. Reported out of committee and died on the calendar. 1978' H-2402 - Would have prohibited smoking in enclosed in- door auditoriums, lecture or concert halls, gynmasiums, coliseums, arenas, or theater owned or leased by a 1977 governmental entity. Died on calendar. H-1207 - Would have prohibited~smoking on elevators. ~7 Died on calendar. ~ S-2092 - Would have prohibited smoking in places where O no smoking signs are pos ted. Killd in Committee. e H-327 - Companion to S-2092. Killed in Committee. " a7 S-2093 - Would have provided a regulation!of smoking 0 ~ in public places and meetings. Killed in Committee.

Mississippi (continued) 1!977 H-326 - Companion to S-2093. Killed in Committee. 1:976 H-374 - Would have regulated smoking in public places and at public meetings. Died in Committee. S-2003 - Same as H-374. Died in Committee. S-2798 - Would have restricted smoking in public places where signs are posted. Died in Committee. HR-15 - Would have prohibited smoking in House during sessions. Defeated by House. 1975 HR-10 - Would have prohibited smoking in House during sessions. Defeated by House. Tax 1!980 H-1113 - Would have increased cigarette tax from 11 to 12 cents per pack. Killed in Committee. S-2885 - Would have increased cigarette tax from 11 to 21 cents per pack. Killed in Committee. S-289b - Would have increased cigarette tax from 11 to 13 cents per pack. Killed iniCommittee. 1973 Last cigarette tax increase 9 to 11 cents per pack.

NORTH CAROLINA Smoking Restriction Legislation 1979 House finance Committee Chairman Gamble divided the Committee meeting roomlinto smoking and non- smoking sections. 1975 S-58'8 - Would have required "no-smoking" areas at public meetings in government buildings. Died with adjournment. Local 1980 Winston-Salem - Transit authority decided to allow smoking at the back of public buses. The authority discarded a two-year-old smoking ban after deciding it had~ not worked. 1977 Charlotte City Council voted on proposed smoking ban in the Coliseum during athletic events. Defeated by a 5 to 2 vote. Guilford County - Sheriff Paul Gibson lifted a two year ban on smoking in the County jail. Ban had been imposed for fire prevention reasons. 1976 Charlotte - Unless the Charlotte City Council adopts an ordinance barring smoking in poorly ventilated public places, GASP will seek the 5,000 signatures needed to force a public referendum on the issue, says GASP director Stearns. Stearns said GASP will present its ordinance to the council in January. Charlotte - The movie houses banned smoking and removed ashtrays from.their theaters. 1975 Chapel Hill - Campus-wide referendum to ban smoking in classrooms. Ind~ividual professors have prerogative to bamor allow smoking in classes. Durham- Duke University Medical Center: Smoking pro- hibited in corridors, patient examination and treat- ment rooms, elevators, nursing stations, stairwells, laboratories, storage areas, food preparation areas, libraries, classrooms, conference rooms, mechanical/ woodworking shops, and lecture halls. Permitted only in designated areas. 1979 Mecklenburg County in GASP VS. Mecklenburg County The plaintiffs sought an order requiring defendants to restrict smoking in the government facilities under their control. Th~e filing of this suit fol- lowed the rejection by the Mecklenburg County Com- missioners of a proposed ordinance prohibiting smoking in certainpublic places. Superior Court for Mecklen-

North Carolina (continued) faiL'ure to state a claim upon which relief could be granted. Plaintiffs then filed a notice of appeal in the North Carolina Court of Appeals and' a petition for discretionary review in the North Carolina Supreme Court. The lawsuit was dismissed 7-3-79. Tax 1979 S-182 - Would have increased cigarette tax from 2 to 44 cents per pack. Died with adjournment. 1969 Last cigarette tax increase 2 cents. Miscellaneous 1980 S-231 - Excludes tobacco products from the definition of hazardous substances in a comprehensive hazardous household substances act. Unfavorably reported by Senate Appropriations Committee. 1979 Charlotte - Court of Appeals was urged to reverse a lower court decision of January 1978 (from a case filed originally in 1975) that dismissed assault charged based~on alleged injuries caused by supervisor blowing cigar smoke in face of employee. Decision expected in one or two months. Court of appeals affirmed the lower court ruling of January 1'978 and dismissed the lawsuit (abo e). The court stated that there was insufficient evidence to support a claim for civil assault.

SOUTH CAROLINA Smoking Restriction Legislation State 1980 H-3178 - Would prohibit smokng in public places and at public meetings. South Carolina Clean Indoor Air Act. Hearing imSubcommittee. No action taken. 1978 S-217 - Would have prohibited smoking in public places and at public meetings. Reported favorably out of Committee. Died with adjournment. H-2925 - Same as 5-217. No action taken by Committee. 1977 H-217 - Carried over to 1978. H-2925 - Carried over to 1978. Local 1978 Richland County - County Commission voted to table a public places smoking ordinance without a discussion or hearing. Greenville County - Branch of S. C. Lung Association began circulating petition calling for county ordinance restricting smoking in enclosed public places. County Attorney ruled that County Council does not have the power to pass such an ordinance under the Home Rule Act. 1977 Beaufort County - No smoking areas were established in public buildings throughout the county. Penalty is $50 fine or 15 days in jail. Tax 1977 Last cigarette tax increase from 6 to 7 cents per pack. Miscellaneous 1980 S-631 - Makes it unlawful for any person to offer for sale or sell tobacco produced with any chemicals not approved by the State Department of Agriculture. Re- ferred~to Senate Agricultural and National Resources Committee. 1979 S-631 - Same as above. Carried over to 1980.

TENNESSEE Smoking Restriction Leg,isl!ation State 1i980 S-4 - Would-have prohibited smoking in restaurants except in designated~areas. Sponsor failed to,obtain sufficient votes to have the bill reconsidered by Committee. S-367 - Would~have enacted the public places Clean Air Act of 1979 restricted smoking in most public places including places of work; restaurants, retail stores, banks, conveyances, meeting rooms and other commercial establishments. Withdrawn by sponsor. H-610 - Would have prohibitedismoking on any city, rural, interurban or intrastate buses. Withdrawn. 1979 S-4 - Same as above. Carriedlover to 1980. S-367 - Same as above. Carried over to 1980. H-610 - Same as above. Carried over to 1980. 1978 S-887 - Same as H-503. Defeated in Senate by a: vote of 11-14. H-503 - Would prohibit smoking in intrastate, publicly operated buses. Defeated in Committee. H-1089 - Tennessee Clean Air Act would have prohibited smoking in many public places. Defeated in Committee. 1977 S-887 - Same as above. Carried over to 197,$. H-503 - Same as above. Carried over to 1978. H-1089 - Same as above. Carried over to 1'978. 19,76 H-872 - Would'~ have prohibited smoking in intras-tate and interstate buses. Withdrawn. S-2102 - W'ould have permitted'businesses to prohibit smoking on premises. Killed in Committee. H-2284 - Same as S-2101. HJR - 281 - Would have banned smoking in House and Senate meeting rooms and elevators in Capitol Buildings. Defeated by House. N O N rA O ~ ~ ~ ~

Tennessee (continued) Local 1979 Knox County - Knox County Court members voted to ban smoking at their meetings after air pollution officials showed them that carbommonoxide levels are 3-4 times above normal in their conference room. Memphis - Ordinance passed by City Council banning smoking imtfie Mid-South Coliseum Arena, the auditorium halls and~areas of other public buildings. Violation of the new ordinance will be a misdemeanor punishable by a fine of up to $50!. Signed~ into law by the Mayor. Ordinance No. 2852. ; 1976 Jackson - City Commissioners banned smoking during their meetings. Knoxville - The Knoxville City Council voted 6 to 3 to approve an ordinance to ban smoking in elevators, public schools, city buses, and public areas of museums and libraries. Brentwood City Commissioners defeated a proposed ordinance that would prohibit smoking in public buildings. Chattanooga City Commissioners banned smoking in their assembly room. Tax 1980 H-2589 - Local optiond would have enabled legislation for counties in certain populatiombraekets. Died with adjournment. H-2517 - Local option enabling legislation for Dyer County, effective dates 7-17-80 (enactment of tax contingent upon August local referendum). 5-2567 - Local option would have enabled legislation for counties in certain population brackets. Died with adjournment. 1969, Last cigarette tax increase was 8 to 13 cents per pack. Miscellaneous 11980 H-1181 -Would! have created the litter control act of 1979 and established an annual litter assessment on certain businesses.. Died with adjournment. 9

Tennessee (continued) Local S-1753'- Would have enacted the litter reduction and materials recycling act. Same as S-1753. Died with adjournment. 1979 H-1181 - Same as above. Carried over to 1980. H-1421 - Prohibits smoking by students on school buses and school property during school hours in Summer County. Introduced to solve local marijuana problem. Provides for no penalty. Violation is minor misdemeanor. Does not apply to adults or teachers. Since local in nature, goes directly to H'ouse floor, without being re- ferred to Commitee. This bill and H-1422 are enabling acts and will not take effect in the respective counties until or unless the county adopts them by a 2-3 majority vote of the county legislative body. Approved by Governor.

VIRGINIA Smoking Restriction Leg,isiation State 1980' H-325 - Would have required~ that 20% of area be designated as no-smoking area in state operated eating establishments. Killed in Committee. H-686 - Would have prohibited smoking in elevators located in state owned buildings. Killed~ in Committee. 1977 H'-162 - Would have provided enforcement fine for the present State Board of Health regulations on smoking imcertain places. Died in Committee. H-900 - Would~ have established the style of signs and penalties for not posting "no smoking" signs. Died in Committee. H-426 - Would have controlled smoking in public places. Died in Committee. H-4601- Would have prohibited smoking imcertain public places. Died in Committee. S-2250 - Would~have directed health department to enforce no smoking rules. Died in Committtee. H-168'6 - Would have restricted smoking in health facilities and~ public schools. Died with adjournment. 1976 SJR-56 - Would have directed the state health com- missioner to study the feasibility of banning smoking imspecified places. Killed. Local 1980 Falls Church- Would have restricted smoking in the following public places; elevators, retail stores, health care facilities, public meetings, theater, art gallery, library museum or similar cultural facil- ities, school buildings and in any indoor facility used for recreational purposes that is supported!in whole or in part with public funds. Requires owner or person in charge of any place where smoking is restricted to post "no smoking" signs and to desig- nate smoking areas that shalll be no more than 25 percent of th~e entire area in which smoking is pro- hibited. Provided for a $25. fine. Defeated' by a vote of 5 to 2.

Virginia (continued) Newport News - Amendment to existing city smoking restriction ordinance (approved 5-15-78) that would delete restaurants from th~e ordinance. Adoption of amendment would! bring city ordinance into con- formity with Virginia Supreme Court decision holding that the designation of no smoking areas in restaur- ants as required by the Newport News ordinance to be an "unconstitutional exercise of the City's power". Adopted by a 6 to 1 vote. . ,Prince William County - Motion made to adopt a 1977 Fairfax County smoking restriction ordiniance in its entirety. The ordinance would restrict smoking in elevators, retail stores (except tobacco shops), food stores, healthicare facilities, public meetings, theaters, art galleries, libraries, and museums or simi- lar cultural facilities. Requires posting of no smoking signs. Violators would be fined up to $25. Public hearing held June 3. 1979 Alexandria City Council voted 4-3 to redraft a proposed no smoking ordinance to cover city owned buildings only; policy support of voluntary restrictions by proprietors would be offered. City Council agreed to restrict smoking to the back of the Council chambers. Smoking was previously limitedito the back and along the sides of the Chambers. The motion was agreed to by a vote of 6-0. 1978 Arlington - County Manager asked County Board to schedule a March public hearing for citizens' response to pro- posed ordinance that would ban smoking in public places. County Board passed by a 3 to 2 vote in April. 1977 City of Alexandria - City Council voted to "request" restaurant owners to set aside smokng and nonsmoking areas wherever possible; no penalty provided. City of Fairfax - Board of Supervisors adopted a smoking ban:ordinance that includes elevators, health! care facilities, theaters, libraries, museums, galleries and public meetings. Restaurants are not included,. Effective November 27, 1977. Tax 198'0 H-968 - Would have increased state cigarette tax from 2.5 to 7.5 cents per pack and eliminated' state and local general sales tax on food. Passed by indefinitely.

Virginia (continued) Newport News - Amendment to existing city smoking restriction ordinance (approved 5-15-78) that would delete restaurants from the ordinance. Adoption of amendment would bring city ordinance into con- formity with Virginia Supreme Court decision holding that the designation of no smoking areas in restaur- ants as required by the Newport News ordinance to be an "unconstitutional exercise of the City's power". Adopted by a 6 to 1 vote. . Prince William County - Motion made to adopt a 1977 Fairfax County smoking restriction ordinance in its • entirety. The ordinance would restrict smoking in elevators, retail stores (except tobacco shops), food stores, health care facilities, public meetings, theaters, art galleries, libraries, and museums or simi- lar cultural facilities. Requires posting of no smoking signs. Violators would be fined up to $25. Public hearing scheduled for June 3. 1979 Alexandria City Council voted 4-3 to redraft a proposed no smoking ordinance to cover city owned buildings only; policy support of voluntary restrictions by proprietors would be offered. City Council agreed to restrict smoking to the back of the Council chambers. Smoking was previously limited to the back and along the sides of the Chambers. The motion was agreed to by a vote of 6-0. 1978 Arlington- County Manager asked County Board to schedule a March public hearing for citizens' response to pro- posed ordinance that would ban smoking in public places. County Board passed,by a 3to 2 vote iniApril. 1977 City of Alexandria - City Council voted~ to "request" restaurant owners to set aside smokng and nonsmoking areas wh~erever possible; no penalty provided. City of Fairfax County (?)i - Board of Supervisors adopted a smoking ban ordinance that includes elevators, health care facilities, theaters, libraries, museums, galleries and public meetings. Restaurants are not included. Effective November 27, 1977. Tax 1980 H'-96$ - Would h_ave increased state cigarette tax from 2.5 to 7.5 cents per pack and eliminated state and local general sales tax on food. Passed by indefinitely. (?)

Virginia (continued) H-299 - Would have allowed Lee and Scott Counties to enact 1 cent local cigarette tax effective 7-1-80 and 2 cents per pack tax effective 7-1-81. Killed in Committee. H-385 - Would have allowed' any county to tax cigarettes up to 5 cents per pack or the equiv- alent of the state tax -- whichever is higher. Passed by indefinitely. H-529 - Would have allowed Fairfax and'Arlington Counties to increase cigarette tax from 5 to 8 cents per pack. Passed by indefinitely. 1979 H-613 - Would have increased cigarette tax from 2.5 to 4.5 cents per pack and pre-empted local cigarette taxes with state rebate to all localities. Killed in Committee. H-6114 - Would have increased cigarette tax from 2.5 to 4.5 center per pack and pre-empted local cigarette taxes with state rebate to all localities. Killed in Committee.

WEST VIRGINIA Smoking Restriction Legislation State 1980 S-16:5 - Would have enacted~ the "West Virginia Clean Indoor Air Act" and would have prohibited smoking in many enclosed~indoor areas of certain buildings and vehicles. Would have required the posting of signs where smoking is prohibited. The penalty for a vio- lation would be a:$20 to $T00 fine. Favorably re- ported out of Committee but died with adjournment. H-1187 - Would have restricted smoking on elevators, restaurants, auditoriums and arenas used for enter- tainment purposes, health care facilities, museums, art galleries and buses. Died with adjournment. H-1450 - Would have restricted smoking in certain public places. Identical to 5-165. Died with adjournment. H-1589 - Would have allowed the prohibition of smoking in vehicles used for urban mass trans- portatiom. Reported favorably out of Committee but died with adjournment. 1!979 S-47 - Would have prohibited smoking in public conveyances capable of carrying 8 or more persons. Died with adjournment. H-861 - Would have required'designated nonsmoking areas in public buildings and conveyances, including elevators; food serving facilities seating 30 or more persons; cultural facilities, auditoriums and arenas; at least one waiting room or lobby of any clinic, hospital, nursing home or personal care facility, buses. Died with adjournment. S-282 - Would have enacted'the West Virginia Clean Indoor Air Act. Died with adjournment. S-287 - Would have enacted the West Virginia Clean Indoor Air Act. Defeated in Senate by 19 to 14 vote. H-1156 - Would have enacted the West Virginia Clean Indoor Air Act. Companion to S-281. Died with Adjournment. 1978 S-137 - Would have prohibited smoking on public trans- portation vehicles; provided for penalties and posting of signs. Died with adjlournment.

West Virginia (continued) Tax 1980 H-1609 - Would have reduced cigarette tax from 17 to 12 cents per pack. Died with adjournment. S-419 - Would have reduced cigarette tax from 17 to 12 cents per pack. Died with adjournment. H-1429 - Would have reduced cigarette tax fr=17 to 12 cents per pack. Died with adjournment. S-340 - Would have reduced cigarette tax from 17 to 12 cents per pack. Died with adjournment. 1978 Last cigarette tax increase 12 to 17 cents per pack. Miscellaneous 1980 H-1525 - Would have strengthened current ban against smoking inischools by increasing fine for violators from $1-5 to $20-30 and by fining persons who know- ingly and willfully permit violations to occur in their presence $10-15 and, furthermore, by suspending schools from all extracurricular activities for 30 days where it is found that the school staff knowingly and willfully allowed a smoking violation to occur. Died withiadjournment.

RECENT LEGISLATIVE HISTORY The major tobacco producing states do have their problems (as do the thre.e neighboring states) with anti-smoking legislation and the White/Froeb~Study will certainly provide impetus to the anti-smokers to continue the push for smoking restriction legislation as for cigarette tax increases. The TAN program would help reinforce the importance and position of the tobacco industry within these states.

---. _ L ADDENDUM B 2o24o778 so -

ADDENDUM B KEY CONTACTS

GeorgZia U. S. SENATORS: Herman Talmadge (seeking re-election) Sam Nunn U. S. REPRESENTATIVES: DawsonMathis (seeking Democratic nomination for U.S. Senate), 2nd CongressionaL District Billy Lee Evans 8th Congressional District Ronald~ "B'o" Ginn 1st Congressional District Members of the State Legislature from the tobacco growing districts OTHER GOVERNMENT OFFICIALS: Thomas Irvin Commissioner of Agriculture DavidNewton Georgia Department of Agriculture Norman Park, Georgia FARM ORGANI ZATI'07VS : Robert L. Nash President Georgia Farm BureaulFederation Macon, Georgia Adron Harden Legislative Director Georgia:Farm Bureau Federation and President Tobacco Growers Information Committee Macon, Georgia ~ Robert L. Miles Q Georgia Cooperative Extension Service N Tifton, Georgia ~ Fred Voligt ~ Virginia Baker '~ Georgia Agricultural Commodty Commission for Tobacco ~ Frank Pidcock, III '" Pres i d'ent Georgia - Florida Wareho-use Association

Georgia Continued KEY GROWERS: B. Frank Strickland Lakeland, Georgia Robert T. Cox Statesboro~, Georgia John T. Collins, Sr. Pelham, Georgia H. S. McNeal Alamo, Georgia Britt Dorsey Nashville, Georgia Barry O"Quinn H'azelhurst, Georgia Kenneth Durrence Claxton, Georgia Harry Thompson Moultrie, Georgia MANUFACTURERS Brown& Williamson Tobacco~ Corporation Macon, Georgia WHOLESALERS: Jane Smith Managing Director Southern Tobacco F Candy Association Atlanta, Georgia Alan Newton Newton Tobacco Company Atlanta, Georgia J'ohn Head Head Tobacco Company Atlanta, Georgia

Kentucky ELECTED OFFICIALS: John Brown G'overnor of Kentucky Albew W. Barkley Commissioner Kentucky Department of Agriculture U. S. SENATORS: Walter Hud'dleston Wendell Ford U. S. REPRESENTATIVES: Carroll Hubbard, Jr. 1st Congressional District William Natcher 2nd Congressional District Romano L. Mazzoli ' 3rd Congressional District Tim Lee Carter 5th Congressional District Larry J. Hopkins 6th Congressional District Carl Perkins Z`th Congressional District Chairman of key committees in state legislature Leaders in state legislature FARM ORGANIZTIONS AND LEADERS: Ira E. Massie University of Kentucky Ray Mackey President Kentucky Farm Bureau Federation Albert G. Clay Chairman of the Board Burley Auction Warehouse Association Thomas Edwards, Jr. Managing Director Burley Auction Warehouse Association

Kentucky Continued Jack Griffith Council for Burley Tobacco Lexington, Kentucky Frank Snodgrass Vice President and Managing Director Burley and Dark Leaf Tobacco Export Association Chairman, Tobacco Tax Council Tom Hodge President Association of Dark Leaf Toaccco Dealers and Exporters T. A. Norvel President Burley Leaf Tobacco Dealers Association G. Logon Brown Burley Tobacco Growers' Cooperative Association William Porter General Manager Eastern Dark Fired Tobacco Asso.ciation Stanley Hoffman President Steming District Tobacco Association Holmes Ellis General Manager Western Dark Fired Tobacco Growers' Associatio.n, KEY GROWER: William Bafden Danville, Kentucky MANUFACTURERS: The Pinkerton Tobacco Company Owensboro, Kentucky Brown &, Williamson Tobacco Corporation Louisville, Kentucky Philip Morris, U.S.A. Louisville, Kentucky WHOLESALERS: Ernest Sears Kentucky Tobacco &'Candy Association

North Carolina ELECTED OFFICIALS: James Hunt Governor Jim Graham Commissioner of Agriculture U. S. SENATORS: Jesse Helms Robert Morgan U. S. REPRESENTATIVES: Walter Jones lst Congressional District L. H. Fountain 2nd Congressional District Charles Whitley 3rd Congressional District Ike Andrews 4th Congressional District Stephen Neal 5th Congressional District Richardson Preyer 6th Congressional District Charles Rose 7th Congressional District W. G. Hefner 8th Congression~al District Chairman of key committees in state legislature Leaders in state legislature FARM ORGANIZATIONS AND LEADERS: John W. Sledge President North~Carolina Farm~Bureau Federation J. H. Cyrus North Carolina Department of Agriculture

North Carolina Continued James Hill Managing Director Bright Belt Warehouse Association Fred Bond General Manager Flue CuredTobacco Cooperative Stabilization Corporation Hugh Kiger Executive Vice President Leaf Tobacco Exporters Association & Tobacco Association of the United States Reggie Lester Managing Director Tobacco Growers' Information Committee Lloyd Massey Master North Carolina State Grange Bruce Flye Chairman Tobacco Associates Kirk Wayne President Tobacco Associates Norfleet Sugg Executive Vice President North Carolina Agriculture Business Thomas W. Allen, Jr. Chairman Tobacco Advisory Committee North Carolina State Grange Creedmoor, North Carolina MANUFACTUR'ERS : Liggett and Myers Tobacco Company Durham, North Carolina R. J. Reynolds Tobacco Company Winston-Salem, North Carolina Lorillard Greensboro, North Carolina WHOLESALERS: Council Charles Morris Executive Director North Carolina Wholesalers Association

S'outh Carolina ELECTED OFFICIALS: G. Bryan Patrick, Jr. Commissioner of Agriculture U. S. SENATORS: Strom Thurmond Ernest Hollings U. S. REPRESENTATIVES: John W. Jenrette, Jr. 6th Congressional District Members of the State Legislature from tobacco growing districts FARM OR'GANIZATIONS'AND LEADERS: Harry Bell President South Carolina Farm Bureau Federation George Grobusky Master South Carolina State Grange Walhalla, South Carolina Lonzo Israel Chairman Tobacco Advisory Comm~ittee South Carolina State Grange Nichols, South Carolina Dick Lewis Pee Dee Warehouse Association Mu11in, SouthiCarolina Frank Munn Chairman Tobacco Advisory Committee South Carolina Farm Bureau Federation Pamplico, South Carolina Marion Fowler Executive Secretary South Carolina Tobacco Warehouse Association Tommy Parham Tobacco Associates Dillon, South Carolina:

South Carolina Continued KEY GR'OWERS : Frank M. Flowers Darlington, South Carolina James Montgomery Gable, South Carolina John Holliday Galavants Ferry, South Carolina

Tennessee ELECTED OFFICIALS: Edward Porter Commissioner of Agriculture U. S. SENATORS: Howard Baker James R. Sasser U. S. REPRESENTATIVES James H. Quillen 1st Congressional District John J. Duncan 2nd Congressional District Marilyn Lloyd Bouquard 3rd Congressional District Albert Gore, Jr. 4th Congressional District Robin L. Beard, Jr. 6th Congressional District Members of th~e State Legislature from tobacco growing districts FARMiORGANIZATIONS AND LEADERS: James Putman President Tennessee Farm BureaulFederation Columbia, Tennessee Michael LaForest Master Tennessee State Crange Knoxville, Tennessee James Hoffman Presid'ent Burley Stabilization Corporation Knoxville, Tennessee Eastern Dark Fire Tobacco Association Springfield, Tennessee MANUFACTURERS:. Conwood Corporation Memphis, Tennessee

Tennessee Continued U. S. Tobacco Nashville, Tennessee WHOLESALERS: Walter Johnson Executive Director Tennessee Wholesalers Grocers' Association Nashville, Tennessee OTHER RELATED INDUSTRIiES: The Austin Company Greenville, Tennessee

Virginia ELECTED OFFICIALS: John Daliton, Governor of Virginia Mason Carbaugh Commissioner of Agriculture U. S. SENATORS: Harry F. Byrd, Jr. John Warner U. S. REPRESENTATIVES: Robert W. Daniel, Jr. 4th Congressional District W. C. (Dan) Daniel 5th Congressional District William Wampler 9th Congressional District Members of State Legislation representing tobacco growing districts FARM ORGANIZATIONS AN'D:LEADERS: S. T. Moore President Virginia Farm Bureau Federation John B. Burgess Master, Virginia State Grange KEY GROWERS: James E. Warren McWarren Farms South Hill, Virginia William S. Adkisson Chairman Virginia Bright Flue Cured Tobacco Commission Clover, Virginia MANUFACTURERS: PhiliplMorris, U.S.A. Richmond, Virginia Brown & Williamson Tobacco Corporation Petersburg, Virginia

Virginia Continued IYiANUFACTURER'S : Larus & Brother Company Richmond'; Virginia American Tobacco Company Hopewell, Virginia Lorillard Tobacco Company Danville, Virginia U. S. Tobacco OTHER ORGANIZATIONS The Tobacco Tax Council Richmond, Virginia Universal Leaf Richmond, Virginia WHOLESALERS : Garry DeBruhl Executive Director Virginia Wholesalers & Distributors Association Jack Bess Virginia Wholesalers F Distributors Association Roanoke, Virginia

ADDENDUM C ENROLLMENT

The following figures are taken from the Wharton Study (Table XI) and will provide an estimate on tobacco industry employment total for each state. State Number of Employees (core sectors and support industries) Alabama 1,400 Georgia 10,000 Kentucky 56,000 Mississippi 700 North Carolina 68,500 South Carolina 8,700 Tennessee 15,600 Virginia 25,400 West Virginia: 1,100 Total 187,400 Taking into consideration discount assumptions and enrollment penetration potential for industry segments, a more realistic figure for TAN prospect purposes for the nine states would be approximately 50,000 or slightly more than 4 of the targeted tobacco family. State Prospect Estimate Alabama 400 Georgia 2,660 Kentucky 15,000 Mississippi 3:00 North Carolina 18,0100 South Carolina 2,300 Tennessee 4,150 Virginia 6,750 West Virginia 400 Total 49,960

TAN ENROLLMENT BY STATES (APRIL 19'80)' Alabama: 27 Georgia 67 Kentucky 234 Mississippi 32 North Carolina 104 South Carolina 43 Tennessee 33 Virginia 1081 West Virginia 43 Total 1664 ALABAMA TAN ENROLLMENT Manufacturers 27 Total 27 .GEORGIA TAN ENROLLMENT Manufacturers 63 Industry Professional 2 Wholesale Distributor 1 Other 1 Total 67 KENTUCKY TAN ENROLLMENT Manufacturers 226 Retailer 1 Supplier 1 Wholesale Distributor 1 Other 3 Unknown 2 Total 234

MISSISSIPPI TAN ENROLLMENT Manufacturers 29~ Other 3 Total 32 NORTH CAROLINA TAN ENROLLMENT Manufacturers 102 Other 2 Total 104 SOUTH CAROLINA TAN ENROLLMENT Manufacturers 41 Other 2 Total 43% TENNESSEE TAN ENROLLMENT Manufacturers 32 Retailer . l Total 33 VIRGINIA TAN ENROLLMENT Manufacturers 1,057 N Industry Professional 4 ~ Wholesale Distributor 2 N Other 18 wp Total 1 081 O , ~ ~ ~ CD an

WEST VIRGINIA TAN ENROLLMENT Manufacturers 33 ChainStore 4 Manufacturer-Cigar 1 Vendor 1 Wholesale Distributor 6 Other 7 Unknown 1 Total 43

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