Tobacco Documents Online

Draft 9/19/96 NEW YORK State Overview: Politics The legislature meets every year and the 1997 session will convene in the beginning of January and traditionally runs through the end of June. Statewide office holders are not up for election in November of 1996 however all members of the state legislature are. Currently the Assembly is in the control of the Democrats with a 94 to 56 split. There is a possibility that the Republicans may pick up 4-5 seats. While this will not effect of basic dynamics of the Assembly it could impact at the committee level where there will be a need for more bipartisan efforts than have taken place in the past. The Senate is controlled by the Republicans with a 37 to 24 split. No material changes are expected as a result of the November elections. The national political environment has a major effect on NY politics due to the NY media market. The outcome of the national elections as well as the status of litigation and State Attorney General (the New York State AG remains undecided at this time) activity will be important to monitor. State Objectives Work with retailer groups to pass legislation to promote AAA objectives. i.e.. uniformity of enforcement of minimum age laws, retention of data on minimum age violations at state level, line of sight. Support the hospitality industry in their efforts to pass reasonable statewide smoking accommodation for hospitality venues. i.e. reasonable designated smoking and non smoking areas in restaurants, bowling centers etc. Support the business community in their efforts to pass tort reform. i.e. shareholder derivative suit reform, limits on damages in wrongful death actions, establish standards for assumption of risk. Defeat all proposed increases to the state cigarette excise tax rate and utilize opportunity provided by tax increases in other parts of the region to advance the tax rollback dialogue. Defeat all proposals to give localities the ability to impose cigarette excise taxes at the local level or to impose licensing requirements at the local level. Defeat all proposed advertising and marketing restrictions. i.e. point of sale p restrictions, billboard placement, limits on tax deductibility of amounts o' expended for tobacco advertising. ~ 0 ~ w n)

Defeat all proposals to further restrict locations where consumers can smoke. Defeat all proposals to impose third party Medicaid liability or proposals to urge lawsuits against industry for recovery of alleged Medicaid costs. Defeat all proposals to require or promote divestment of tobacco stocks. Defeat all proposals to require ingredient disclosure. Defeat all proposals to mandate "fire safe" cigarettes. II. Strategies/Tactics - for all state objectives. • Continue to develop relationships with legislative and administrative branches and staff. • Third party allies. Work proactively with business units to assure that plans and decisions take into account the impact on third party allies whose support is needed to shape environment and continue attainment of goals. • Alternative solutions. Support reasonable solutions as an alternative to restrictive measures. i.e. reasonable accommodation legislation introduced at state level, AAA legislation in place of POS restrictions. • Studies, polls & research. For both state and local efforts update polling on attitudes towards accommodation, taxes and government regulation in general coupled with arguments from issues management and talking points from media affairs team. Updated figures on the impact of the1995 NYS tax increase as well as projected figures on positive economic consequences for NYS of tax increases in bordering states are needed to further the roll back dialogue. • Media support. Provide media support for release of data to coincide with legislative activity and to respond to other media programs. Move towards a more proactive media approach to provide rationale alternative to anti pressure. Provide PM consultants, legal counsel and third party allies with positive messages to be used as needed in the state capital and in localities where action is taking place.

III. Recommended Activities/Tools - for state objectives Legal support and Analysis In order to advance the alternative solution strategy discussed above it will be necessary to obtain legally approved drafts of alternative legislation quickly. i.e. reasonable accommodation legislation, state specific AAA legislation. In addition a mechanism for obtaining PM positions on legislation and parameters for negotiation should be developed in advance of immediate need. Arguments/Talking Points/Studies Working with third party groups, share with general public and key officials studies/polls/research that provide statistical information on the impact of legislative and regulatory proposals. Mobilizations Possibly, two statewide general "mobes" will be needed if a tax increase threat becomes a reality. For other issues funding for third party mobilizations is a preferable alternative. Sales force We are continuing the already well developed active involvement of the PMUSA sales force to assist in getting information out to the retail community and to identify other potential allies/spokespeople. This is particularly important in efforts to deal with pos bans and restrictions.