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THE "TOBACCn INSTITUTE Mr. bbby D. Crim- Gove nmental Consultant 530 West Ionia Street Sui e B - La ging, MI 48933= In-", I STitF:ET. NONTI1WEtiT ROGER L. MO"l.IVGO W:1ti11ItiGTU1. 1)(: :INKII; 5rnwr 1'irv I'rr.uirnt JtilNl • 8fN1 a_'4 9871, Sleflc Acln ilw. June 27, 1986 Services, Inc-. Numerous proposals are currently pending in state legislatures to enact legislation t-o deal with the liability and insurance crisis. In view of the potential significance of these bills to the tobacco industry, The Tobacco Institute has initiated a program to monitor and-report on proposed tort law reform and product liability=legislation in the -states. We are requesting your assistance in this effort. You should, however, continue to give priority attention to legislation directed explicitly at the tobacco industry.- We request your assistance at this time in two ways: first, please obtain for-our review copies of tort-law reform and product liability bills pending in your state; and second, monitor and repor-t any action on those bills that we identify as being of special interest to our industry. More details about the procedures we-have instituted for this highly important project are listed below. - - Obtaining Copies of -Bills - We have thus far identified 23 bills pending in Michigan as related in some way to tort law reform or product liability law. We already have copies of some of these bills, but need your help in obtaining copies of others. 1. Please obtain as quickly as you can bill copies for those bill numbers listed in the enclosed Printout Number 1. These urgently needed copies should be sent, as you receive them, by regular mail to Ms. Cathey Yoe in my office. -

June 27, 1986 Page 2 2. Please review, at your earliest convenience, all pending bills in your state to determine whether there are other tort law reform or product liability bills that do not appear in either Printout Number 1 (relevant bills, copies needed) or Printout Number 2 (relevant bills, copies in hand). Please send copies of those bills by regular mail to Cathey Yoe. - 3. Please review the printouts. If a bill to be "followed closely" or "followed" does not show the committee to w hich the bill was referred, please provide that information. - 4. Please continue to monitor the legislature for the introduction of additional bills relating to tort law reform and product liability law. You should obtain, as soon as possible, and send by regular mail to Cathey Yoe copies of such new bills. To help you identify the kinds of bills in w hich we are interested, a memorandum is enclosed with examples of tort law reform and product liability measures that The Tobacco Institute is following. T hese examples are not exhaustive and, in collecting pending bills, you should be as inclusive as possible. Following Bills of Special Interest The enclosed Printout Number 2 indicates, in the space for "Recommendation," our level of interest in the bills for which we already have copies. As soon as you provide the additional bill copies on Printout Number 1, together with copies of other bills you may identify, we will review them and send updated printouts indicating our level of interest in each bill. There are three levels of interest/recommendations for these tort reform and product liability bills: 1. 'Follow closely' This category means that you should report to the regional TI office immediately -- as you presently do on all tobacco industry legislation -- by telephone any legislative activity on this bill, including committee activity (scheduled hearings, hearings, amendments, votes), as well as floor actions, and you should send copies of all relevant materials (amendments, etc.) to Cathey Yoe. Any other information about the bill and its prospects and related coalition activity also should be reported immediately.

June 27, 1986 Page 3 2. 'Follo.r' Bil- 1 in this category are slightly lower in priority but still must be monitored. You should report, as usual, any amendments and movement through committee and the legislature. Please send copies of all amendments and other relevant materials to Cathey Yoe. 3. 'Monitor' This category means that the bill appears to be of little interest in its present form, but you should nonetheless watch it so that, if it should be substantially amended so as to be of particular interest (as explained in the enclosed memorandum), the change can be reported immediately and copies of the changes sent to our office. Until_otherwise requested, your involvement in tort reform and product liability legislation on behalf of T he Tobacco Institute should be limited to the reporting'activities described above. If, however, you are now or at some later time retained to represent other clients with respect to tort law reform legislation, please advise immediately. Sincerely, RLM/K LB : kc Enclosures cc: Samuel D. Chilcote Jr. Bill K. Trisler Brooke Cheney , State Activities Policy Committee State Activities Staff

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