Tobacco Documents Online

I. State Overview: DELAWARE • Politics The legislature will convene the 1997 session on January 7, and will run through June 30. The 41 House members serve a two-year term and the 21 Senate members serve four year terms. The state Senate compositions are 12 Democrats and nine Republicans. The House is made up of 27 Republicans and 14 Democrats. The November election could bring about a Democrat control in the Senate. The House will remain Republican. The state budget has a surplus, and no consumer excise tax increase is anticipated for 1997. Delaware's last excise tax increase was in 1989 when the legislature passed 5+5 cents increase spread over two years. The political environment is favorable. • State Objectives Do not anticipate any legislative threat. Ample resources with team on board. N) 0 0• N ~ 0 cn November 27, 1996 2:40 PM 1 w

State Overview: DISTRICT OF COLUMBIA • Politics City Council will convene on January 7, and will run through December 31. There are 11 City Council members, all Democrats, and two At-Large members. AII city council members are up for election this year. City is being managed by a DC Financial Control Board which will oversee the districts spending as it balances its budget over the next four years. The political environment is somewhat unfavorable. • State Objectives Defeat restaurant smoking ban and promote accommodation. Defeat advertising ban to prevent billboard advertising of tobacco products. li. Strategies/Tactics • Smoking Ban - Enlist wholesalers, retailers and DC Restaurant Assn. ; Create effective media responses. • Advertising Ban - Enlist wholesalers, retailers, PM sales force, advertising and billboard associations. III. Recommended Activities/Tools Phone mobilizations to city council members. November 27, 1996 2:40 PM 1

I. State Overview: MARYLAND • Politics The legislature will convene the 1997 session on the first Tuesday, January 7, and will run through April 10, 1997, Both the Senate and House run for a four year term. Their last election was held in 1994. Both Houses are controlled by the democrats. The Senate 47 - 15, and the House 103 - 38. There is going to be a shortfall of $200 million for 1997. The Governor has appointed a task force to study the revenue shortfall. Committee meetings have been held during the summer months. The task force has made early recommendations that casino gambling be permitted to operate in the state and that "sin" taxes be increased. The political environment is unfavorable and most likely will see legislation to increase sin taxes. • State Objectives Defeat all proposed increases to the state cigarette excise tax rate. MOSHA - proactive - federal OSHA will ask for comments on MOSHA; will open the door for industry to make comments and hold hearings. Smoking Accommodation - Pass legislation to permit smoking in fraternal and private organizations. Defeat all ingredient and nicotine yield labeling bills. Support Medicaid liability lawsuit on behalf of defense attorneys. ii. StrategieslTactics • Taxes - Enlist support of wholesalers, retailers and anti-tax groups to educate legislative and executive branch officials of Job Impact in political districts in cross-border areas of tax advantages and tax disadvantages. Assist third party groups in the development, release and publicizing of study/polls research that support our position. Excise tax study should be available 10 days after announcement. • Medicaid Lawsuit - Hire PR firm to work with defense attorneys and gain confidence of capitol press core; to respond to questions on adverse documents in trial. November 27, 1996 2:40 PM 1

AAA Program - Enlist wholesalers and retailers. Generate media coverage through local editorial boards. • Smoking Accommodation - Enlist wholesalers and retailers, Tavern Associations and fraternal organizations. • Ingredients - Enlist legal and Richmond's' ingredients task force. III. Recommended Activities/Tools We will need updated arguments and state specific materials from issues management on excise taxes, and white papers on ingredients and trade secrets. We will need expert witnesses for hearing on ingredients and nicotine yield. Will require state specific material from issues management on cost of Medicaid provided by the state. Phone mobilization to all legislators for excise taxes. ~ 0 rn ~ ~ Oa 0 November 27, 1996 2:40 PM 2 ~

I. State Overview: MASSACHUSETTS • Politics The legislature will convene the 1997 session on January 2, and will run through all of 1997 and 1998. The House and Senate will adjourn on November 15, 1997, and end the two year session on July 31, 1998. Both the Senate and House run for a two year term. Both Houses are controlled by the Democrats. The Senate 31 - 9, and the House 125 - 35. The November election could see the republican Governor win the U.S. Senate seat, and the republican Lt. Governor become Governor until 1998, Both Houses will remain in Democratic control. The state budget has a surplus as a result of its "Rainy Day Fund," about $400 million. $154 million must be returned to the tax payers; the Governor will have to introduce legislation on how disbursement is to be made. The political environment is unfavorable. • State Objectives Introduce AAA legislation in the 1997 session. Introduce Restaurant Accommodation bill. Support Medicaid liability lawsuit on behalf of defense. Defeat divestment of tobacco stocks. ii. Strategies/Tactics AAA Program - Enlist support of wholesalers and retailers. Retailers to introduce legislation. Get leadership to support legislation. Get capitol press reporters to support AAA legislation. Restaurant Accommodation Bill - Massachusetts Restaurant Association to introduce bill. Generate media coverage and get local support. • Medicaid Lawsuit - Hire PR firm to work with defense attorneys and gain confidence of capitol press core; to respond to questions on adverse documents in trial. • Divestment - Implement company program to oppose divestment of tobacco stock. November 27, 1996 2:40 PM 1

I11. Recommended Activities/Tools Will require state specific material from issues management on cost of Medicaid provided by the state. Phone mobilization to legislators for Restaurant Accommodation bill. N 6 ~ N ~ W November 27, 1996 2:40 PM 2 ° 00 om

i. State Overview: NEW JERSEY • Politics The legislature will convene the 1997 session on the second Tuesday, January 14, and will run through December 31, 1997. The 80 House members serve two-year terms and the 40 Senators serve four year terms. Elections were held in 1996. The Republicans control the House 49 - 31, and the Republicans control the Senate 24 - 16. Governor Whitman will continue to "downsize" state government, and will be faced with an immediate budget shortfall. This could be severe enough to cause a general state wide tax increase. The political environment is somewhat favorable on the legislative side, but is unfavorable on the local level. Although anti-tobacco activity has been negligible for many years, recently more and more municipalities are enacting restrictive tobacco marketing measures. • State Objectives Support Medicaid liability lawsuit on behalf of defense. Introduce AAA legislation that has not been passed. u. StrategieslTactics • Hire PR firm to work with defense attorneys and gain confidence of capitol press core; to respond to questions on adverse documents in trial. • AAA Program - Enlist wholesalers and retailers. Create media hits (get local support). Ill. Recommended Activities/Tools Will require state specific material from issues management or cost of Medicaid provided by the state. Ample resources with team on board. ra 0 m ~ 10 0 November 27, 1996 2:40 PM 1 ~

I. State Overvievti: PENNSYLVANIA • Politics The legislature will convene the 1997 session on the first Tuesday, January 7, and will run through November 30. The 102 House members serve two-year terms and the 50 Senators serve four year terms. The November election could bring about a change in the Republican House. The Republicans control the House by one vote, 102 -101. Republicans control the Senate 28 - 22. There could be a shortfall of $3 billion: funding for courts, per Supreme Courts' rendering; court ordered/settlement for equality funding for school districts and court ordered funds for Philadelphia schools. The red ink problem is severe enough for the Governor and legislators to increase gasoline tax and "sin" taxes as the remedy which we have managed to forestall since 1991. The political environment is favorable as long as the fegislators do not act on the courts mandate. • State Objectives Defeat all proposed increases to the state cigarette excise tax rate. Introduce AAA legislation in the 1997 session. Defeat Medicaid Liability Authorization. ii. StrategieslTactics • Ta es - Enlist wholesalers, retailers, and anti-tax groups with informing legislative and executive branch officials of Jobs Impact of political districts in cross-border areas with tax advantages and tax disadvantages. Assist third party groups in the development, release and publicizing of studies/polls/research that support our position. Excise tax study should be available 30 days after announcement. • AAA Program - Enlist wholesalers and retailers. Generate media coverage (get local support for AAA Program). • Medicaid Liability Authorization - Ample resources with team on board. November 27, 1996 2:40 PM 1

III. Recommended Activities/Tools We will need updated arguments and state specific materials from issues management on taxes and costs of Medicaid liability. Phone mobilization to all legislators for excise tax. Ny 0 rn N w ~ November 27, 1996 2:40 PM 2 n ca b .-: