Tobacco Documents Online

1-12-98 ; 3:53PM ; ARNOLD & PORTER #7- +2023472685;# 4/ 7 STATE A'I'I'ORNEYS C~rEN'ERAL A Communication From the Chief Legal OfFiccrs Of the FoUowing: Atuk., Amvic+n Ssn.ey Anxan~ A.k.em, Gl'damia Colc..du, Cyyr•+:•+•• Dclaware, Ditaicr af Coltunbia, Flmida Gcarbi~ Govot HiwAldaho_ lll'mofs. !nd'wv, lo~ Ku+sas, Koaadq; Louis'vm. MamS 1KUylmld. ]rtamehassat. Michigsq Mimesvaa Miasivspp~ MicRai h1o=m. Nebn*k NerWti Nca HatupshirG Ncw 1ascy. Nc.. Macim. Nw YmkNOIm ILYUq NaMaa t.(sia.: lsla, Ohio, Okishoma. OreLoa Peonsyhaa:i Puvm Rica 9Lode tsland. Seu& eaoliM Sonth Dakow. Tennasee, Tocas. t]nh. Yumom. VlssLtogaq Wea V'-e,;ti Yl.uom:n, Wycwia6 Novemba?,1991 The Honorable William J. Clinton President afthe Unitrd States The VJhite Hottse 1600 Penlsylvania Avcnuc Wa;hington, DC 20500 Dcar bfi. Prrsidcnt_ Over the last tbcce ywrs. 40 states and onc cammouwmlth have filed suits against the tobacco iadustry. Theu svre aetioas have savcd as a eablyst for ehartge in an indus4y that has bccn widely pcrrc+vcd as uarouchablc. _ As you may apptcdate the Atinmcys Gm,eral, arho have bsvogTnt thcse araom oa brhalC of the public, have s6ared eommoa goa,ls whieh you catbtaccd oo Scptrmbe 1?_ IbtooPhtheir lawsuits, the Attorncys Crmenl have assarrd a broad rage of claimsagaiasi 1he indttsity SeCldng to trdnm youth smolang, sm*z disdosure of d- , caaat change;o chcmdusthr. aod reoouP ytiatc health ratc costs. The state aerions asurta varfay oflepl thcaties Mmy xdCrccovcy of Mrdicxid paymeats mede by tfia states for tobaom-idned il6ussq zs wdl as duaagcg attdpcnalties for violatiion of starL antitcust and eoosvmapmr ec6on laws. Iadeed, insotac sesas t]e lana clairns are the core elemeats of the Lawsuit against the iodusuy. as Mediraid-:rlftd cliims lavn beaa dismissed by the eaorts or were not brought at a1L As as scam rascq pcaoccd Lo uial and jtt4goyatt, to individual sostc settlemp¢t. or to rzsolutiw tloough tBe peod'mgmtiooa19eC1eatmC the rmovcty to the statas viill represent a resolution ofpll.the dvms bcottgJRby dbc arakcs,notJna.emupmcat of Mcdicaid-tcl.wd hcalnc ~rc costs. - Rcccndy, thc fcdcrni gvvesuumt las assatrd thu it is wtl[1cd to a significant s1aQe of thc sntes' taoovay, uhtether that be tlaough stalcmcat or otlrr iccovcty, oit ths basis that it tsptesents the fcdcixl share of Medicaid msts. The frdriel govatimem.malors thia alam daspitetbe fars th6c EXHIBIT I

1-12-99 ; 3:54PM ; ARNOLD & PORTER #7- +2023472685;# 5/ 7 Tho ~ortor+blc William J. Climmn Novcmlxr 7. 1997 Page 2 rrzoverias vill represent suceess in MM suits, undv a~tc law thcorics, foi i varieSy of claims uarelatcd to Medim9d payments. The fedcrel govanmrtvUus dccliaed to bring its own init against Ihc industry. On October 17, 1497, the National Govem«s' Associaaoo mdotsed a policy fe&arding tobacco scttleenmt titrnds. As scatcd in c}a<c policy. the GwMors nte tha posimon that "they wi]] svongly oppose fedeoal effores to sriaF amec sobaeeo xna®cat f.U,a• " The Aaooneys Grneral are ;n agreamrat with this posiuoa and vn11 advance this iacvest on b~of our smrs Wc uEe your fvll considQacion of the position advaneui by the Gavemocs and the Attoracys GooczaL lt is the inca+tion of the siares thsc thdrdamagayaymmts be used witlitn orh szxtc pcimarily for public beattli ptuposes_ 'I]u e[tizrns of oIxsues me enutled to the bene5t of tho lidgatyoa rvc have pros¢altcd an their behalf and any settleinent calcrrd into to nsolve ZLeir txu+svits_ The Attorneys Gcnaal wge you to take action to elsmify tbe peaou of &e Admcrisoaton on rlvs ftscnl issue and work with us to achieve our shared goal of a ebangcd tobauo policy for this memtry. Thank yoLL Siacereiy yotns, Brucc N. Botelho Toesagata AIDct Mzilo Attorney Geaeal ofAl.aska Arivraey GaraalofAmcrirauSamoa . w Grant woods Glmyboq $cyazx Auoroey. Creaecal of Acizona Atlocuey Genetal of Ilrkansas