Tobacco Documents Online

b2/0_2/88 _HON 17:08 FAX 14006 `. ' F®. 2.1998 S=24PM SENRTE CAMT'ERCE COTI_ I4U. 643 r.7 QUSSTIONS REGARDING C3LOBAL TOBACCO SBTTLEM$NT LE6zSLATION i TFM FOL,LOWING IS THE FIRST SET IN A SERIES OF QUESTIONS PERTAINING TO S. 1415, LEGISLA.TION SMPLEMENTING T'HE GLOBAL TOBACCO SETTLEMENT PROPOSAL AGREED TO BY THE ATTORNEYS GENERAL OF THE VARIOIIS STATES AND THE TOBACCO INDUSTRY. QUESTIONS RELATED TO SPECIFIC LEGISLATIVE LANGU'AGE SI;DIILD C7SE S. 1415 AS TI3E REFERENCE. ADDITIONAL QUESTIONS WILL FOLLO`W. I. SAtS ON OtiTDOOR AL7V$RTISING, 1NChDaING IN STADIA ANC] ARENP._S The agreement (bill page 15) bans outdoor to,bacco product advertising, and tobacco advertising in stadia and arena. 1_ What data does the adm9.nistzation have to subatantiate that a ban on outdoor advertisisxg, including stadia and arenas will reduce smoking and, in particular, youth smoking? 2. To what extent do you believe such restzictions be expected to reduce smoking? 3. Does the administration support such a ban. If so, why? If not, why not? 4. What specific changes, if any, in the legislative language implementing the ban would the administration propose? Please provide Specifics. II. -HAN ON HUMAN FIGORBS AND Cb1FtTOOON FIGURES IN ADVEFLTTSIDTG The agreement (bill page 15) bans the use of human figures and cartoone in tobacco advertising. 1. What data does the administration have to substantiate that barring the use of human figures and cartoon advertisln.g will reduce smoking, in particular, youth smoking? 2_ To what extent do you believe such restrietions can be counted on to reduce smoking? 3, What entity would you propose to determine what constitutes a human image or cartoon character? 4. what penalty do you believe is appropriate and should accrue for a violation of the prohibition on material containing figures deertted to be human or cartoon? S. Does the administration support this ban. If so, why? If not why not?

b2/02/88 HON 17:08 FAX f~ 007 .'.FEH. 2.1999 5:25PM SETIRTE COMN7ERCE COMM I9O.H49 P.6 6. What specific ohanges, if any, in the legislative- language implementing the ban would the administration propose? Please provide specifics. . III_ SAN ON IBT,ERMT ADVSRTISIM The agreement (bill page 16) bans tobacco advertising on the internet. 1. Does the admiaistratioA suppart such a ban? i£ so, why? If not, why not? 2. How can and ehould a ban an internet advertising of cigarettes be enforced? 3. What, if any, concerns does the administration have regarding Constitutional free speech issues raised by any such bari? 4. What specific changes, if any, in the legislative language implementing the ban would the administration propose? IV. SA13 ON pDZ2YS-QF--SALS ADVERTISING The agreement (bill page 16) bans point-of-sale tobacco except for advertisements which comply with that certain reptxiction3. 1. What data does the admixiistrati.onn have to substantiate that a ban an point-o£-sale advertising would reduce smoking, in particular, youth smoking? 2. Does the admillistration support such a ban? If so, why? If xiot, why not? 3. Is the exempt7,on of point-of-sale advertisement for adult stores and tobacco outlets appropriate? e. xs it appropriate to grant companies with greater cigarette market share additional point-of-sale advertising rights? If so, why? If not, why not? 5, Does 8uch a privilege constitute a statutorily granted competitive advantage? Plesse discuss. 6_ Does the administration support this grant? If so, why? If not, why not7 7. What specific changes, if any, in the legislative language zmplement the ban would the administration propose? Please provide specifics.

b2/02/98 HON 17:08 FAX _ 71- ' FEE. 2.1998 5:25PM SENATE C9hk'£FCE COMM V. LIMTTA'TIONS ON EOINT-OF-SALE ADVERTISING N0.94:3 F.7 The agreement (bill page 17).specifiee the size and design of permissible point-of-sale advertising. 1, what data does the administration possess to suggest that such limitations wil7l reduce smoking, particularly among youth? 2. Does the administration support this provision? If so, why? If not, why not? 3. If so, what is the justification for statutorily determining a paxticular size limitation and for the particular size and restriction9 proposed? 4. What specific changes in legislative language, if any, does the administration propose? Please provide specifies. VI. BAN ON ADVERTIS73'7G R$STBICTION AGRRFmmITS The agreement (bill page 17) includes a prohibition on arrangements to limit the ability of a retailer to display permiaaible point=of-sale advertisement or promotional materia7l originating with another manufacturer or distri.butor. 1. Are such agreements currently against federal or state law? If so, is such a provision necessary? 2. Does the administration support such a provision? zf so, why? If not, why not? 3. Does the administration support the limitation. If so. why? If not, why not? 4_ What specific changes, if any, in the legislative language implement the ban would the administration propose? Please provide spec3.f.'cs. VII. GS,AMORIZATTON OF TOBACCO The agreement, (bill page 20) prohibits payments to glamorize or promote the image or use of tobacco through pint, films or live perfoxmance that appeals to individuals under 18 years of age. 1. What data does the adminietration possess to indicate whether and to what extent this provision will reduce smoking, particularly among youth? 2. What entity does the admir+.i.stration propose will determine what activity constitutes promoting the image or usa of a tobacco produce? Q008

02/02/98 l[ON 17:09 FAX _ Z009 1V0. F343 P. tl FEB. 2,i9% 5z25PM 5EIVR7E CoMrERCE cANM 3, z3ow does the administration envisian auch a ban will be enforced? 4. Does the administration support such li,mitations? 5. What specific changes, if any, in the legislative language would the administration propose? Please pro.+ide specifics. VIII_ RESTRICTION ON COLOR ADVERTI$El+ffiTS The agreement (bill page 21) prohibits the use of color advertising except in adult publications. i, What data does the administration have to substantiate that a ban on color ads, except in publications with limited youth readership, will reduce smoking, particularly youth amoking? 2. Does the adminietration believe that the threshold for the restriction of two million readers is the appropriate threshold? 3. Row does the administration envision readership demographics being determined? 4_ Haw would this restriction be enforced? 5. Dces the administration support this restriction? If so, why? If not, why not? 5. What specific changes, if any. in the legislative language implementing the restriction does the administration propose? Please provide specifice. Ig. GMERAh 4U8.STIOAT RECyARDDf7G MAR=IN6/A17VIiRTTSING BAN 1. Cau the marketing and advertising restrictions envisioned in the settlement be constitutionally imposed, with or without the industry's consent? Please discuss. X. WA$U,QG' T.aRF.7 S The agreement, (bill page 26- ae), authorizes avariety of new waxrning labels for tobacco products- 1_ Does the administratiorn believe that these are appropriate warning labels? 2. Does the administration possess data suggesting that these warning will effectively reduce smoking, particularly youth smoking? 3. What data suggests that the various new warnings will

02/02/98 HON 17:09 FAX _ Q010 'FEB. Z.1gg8 5"ZSPM SFNRTE C01"NERCE COM9 NO.843 P.9 V i I be as or more effective than the current warning requirements? 4. poes the administration.support the provisions authorizing specific new labels? If so, why? If not, why not? 5_ What specific changes, if any, in the legislative language implementing this provision would the administration propose? Please provide specifics. IX. WAIt8I1QG LABEL SIZE AND LOCATION 1tfiQIInMMENTS The agreement (bill page 28-Z9) specifies, the size, placement and print type of the various tobacco warning labels. 1. What data does the administration have to suggest that these specifications wilJl reduce smoking, particularly youth amoking? 2. Does the administration support these particular specifications? If so, why?. If not why not? 3. Does the administration support the exception (page 29) provided for flip-top cigarette packages? If so, why? If not, why not? 4. What specific changes, it any, in the legislative language to implement these restrictions would the administration propose? Please provide specifica. X. SMOiOE',ESS TaH.ACCO AIr'! ERNATlb8 LA88i5 The agreement (bill page 34) provideg for.various new warning label options for smokeless tobacco 1. What data does the administration have to suggest that the various new warning labels will effectively reduce the use of smokeless tobacco, particularly among youth? 2- Does the administration.eupport the use of these alternative labels? 3. What changes, if any, to the legislatiwe language implementing this provision would the administration propose? Please provide specifics_ SI. ENPOIiCMR7T OF ADVL;RTISTIQG, MARKETIIQG AND LA'BET,IICG RESTRI4fION'S The agreement (bill page 36-37)provides for the enfoxcement of advertising, marketing and labeling restrictions. a m y A Eb ~.. .a A J

U2/02/98 ffiON 17:09 FAX FtB. 2.1998 5:26pM SEIVRlE COMMERCE COMM MO. 845 r. 116 1. Does the administration support the enforcement provisions regarding acTvertising, marketing and labeling? zf so why? If not, why not? , I 2. What changes in legislative language, if any, does the administration recommend regarding this provision? Please provide specific language. %II - PRSENiPTION OF STATE AND hOCAL ,ACfTODT The agreement (bill.page 38) prohibits state and local requirements related to the packaging or advertising of cigarettes or smokeless tobacco. I. Does the administration support suCh preemption? If so, why7 If not, why not? 2- What changes in legislative language, if any, does the administration recommend regarding this provzsion? Please provide specific language. SIII. F,X6«TION OF BXPORTS The agreement (bill page 40) exempta exports from the packaging, 7.abelitig and.advertising requirements. 1. Does the administration support this exemption? Xf so, why? If not, why not? 2. V7hat ramifications does this provision have in the area of foreign relations? 3. What changes in legislative language, if any, does the administration recommend regarding this provision? Please provide specifics. XIV'. RSSTRICPIOD7 ON ACCESS TO TOBACCO PRODT7CTS The agreement (bill page 40-41), prohibits the sale of tobacco products to indirriduals uz3der 18 years of age; requires that retailers verity the age of individuals purchasing tobacco; and exempts individuals 27 years of age or older from the photo identificatiorn requirement. 1. Does the adtninistration support these provisions? if so, why? XE not, why not? 2. idow does the administration envision that this provision will be enforced and can it be enforced effecti..ely? 3. What changes in legislative language, if any, does the administration recommend regarding this provision? Please provide epeciXics.

' b2/02/98 HON_1_7:10 FAX _ - 012 _ --., FE9. 2.1998 5:26PM SENRTE CohAIERC£ COMM MO.B43 P.11 - XV. PAOHISITION ON SALE QP LESS TMlR 14, FOL7j PACK OF CIGARBTTLS The agreement (bill page k1).prohibits the sale of less than a full pack of cigarettes. 1_ Does the administration support this prohibition? 'If so, why? If not, why not? 2. What changes in legislative language, if any, does the, administratienn racommen.d regarding this provieion? Please provide specifics. F 8VI _ STP.TS LICSLQSOBE TO SELL TOBACCO The agreement, (bill page 44) requires states to license sellers of tobacco products. 1. What data, if any, does the admin.istration have to indicate that licensure will effeetively xeduce access to tobacco by minors? 2. What entity does the administration euvision would enforce the licensure requirement if a state should be unable or unwilling to implement the lieeasure program? . 3. Has the administration developed or formulated the cost of a licensu.re pregram? 1 4. Does the a,dministration support the licensure program? If so, why? If not, why not? 5. What changes in legislative language, if any, does thd administration racommend regarding this provision? ?lease provide specifics. XVII. AWTx-TRIIST 88ENWTIO17 The agreement, (bill page 94), provides anti-trust exemption for the tobacop industry. 1. Does the administration support such an exemption? If so, why? If not, why not? 2- Could such an exemption be used to, set prices beyond those necessary to deter youth smoking, but to increase profits for the industry? 3. What changes in legislative language, if any, does the administration recommend regarding this provision? Please provide apecifics.

'02/02/99 _HON 17:10 FAX ryp,e49 „ ~. FEB. 2. 1998 5:27PM Sf]VRTE CoPMIERCE COI'M 1 XVIII_ APE'LI['13HILIT4' TO NSW SDITRRA4FTS IN TOBACCO Ii®IISTRY 1_ tTnder the agreement, and the implementing legislation, what is the assurance that new entrants into the tobacco industry will comply with the statute aad any related consent agreements not to chalJ,enge the 1egality of the agreement implementation legislation. I I