Tobacco Documents Online

THE TOBACCO INSTITUTE 1H;,; I STRF.ET. `ORTHWEST GEORGE R.MINSHEW WASHINGTON. D(: SUO(N; Vice Pmsiili•nt _'0'_' 4i: -aH00 . HOll 4.',$-9Hi ti MEMORANDUM April 7, 1988 TO: Mr. John A. Kochevar, Chairman Mr. John H. Hager W.E. Ainsworth, Jr., Esquire Mr. Donald E. Mott Mr. Larry A. Bewley Mr. Joseph E. Taddeo James R. Cherry, Esquire Mr. Tom Humber Mr. Samuel D. Chilcote, Jr. Mr. Roger L. Mozingo FROM: George R. Minshew Pre-qualification initiative activities are well underway in the states of Arkansas, Colorado, and Oregon. This report will bring you up to date on progress. This report does not relate to the California tax or the Oregon clean air initiatives. If your company is contributing to the revenues needed and requested for pre-qualification activities, you will find attached assessment statements for each of these three initi t ves. Also attached for your information is a complete listing of each state's appointed initiative executive committee members. Arkansas -- Smoking Restriction Initiative Anti-tobacco forces are not well organized in this state. There is a reasonable assumption that anti-tobacco proponents will have difficulties in qualifying this initiative by the deadline date of July 8, 1988. They must gather 55,084 qualified signatures to place the question on the November 1988 ballot. We have retained the law firm of Wright, Lindsey & Jennings as the Executive Committee's attorneys of record. This firm is in the process of investigating Arkansas initiative procedures and compiling recommendations of campaign management organizations. They will also be advisers in developing the tobacco industry's pre-qualification strategy over the next 30 days. TIOR 0020918

An Arkansas executive committee has been appointed with company approval. The first Executive Committee meeting will be scheduled late April or early May. May I urge you to be sure your company is represented at this important organizational meeting. i ! ! i i i i i i i ! ! i ! i ! i i ! ! i i ! ! ! i i ! i i ! i ! ! ! ! i ! ! i i ! i ! i i ! ! ! i i i i ! ! ! ! ! ! ! ! i ! ! i Colorado -- Tax Initiative Colorado is a state familiar with initiative procedure. A large percentage of proposed initiatives are successful in qualifying. Based on the initiative question and past history, we must assume the Colorado tax initiative will qualify. To qualify, there must be 50,668 signatures filed with the Secretary of State by July 8, 1988. Tax initiative proponents have now started to make a serious effort to organize and gather signatures. Their lead advocate, Dr. Robert Schrier, has intentionally held petition circulation back until April 7 so as to make it more difficult to challenge the petition. Through our attorney of record, Mr. Jim Wilson, the industry filed a challenge to the title and summary language. The protest was denied on April 4, 1988, by the Secretary of State. We will file protest on April 11 with the State Supreme Court. The Court will treat the protest with priority and should present a ruling within two weeks thereafter. Co-campaign management firms, Hays, Hays and Wilson (HH&W) and Stealey and Associates (S&A) have been retained. These firms are now in the process of lining up the resource groups which will be necessary to conduct a successful campaign should the initiative qualify. A Colorado executive committee has been appointed. The first Colorado Executive Committee meeting is scheduled on April 28 in Denver, Colorado. !!!!!! i i!! i! i i i! i!! i!!!! i i i i! i i!! i! i!! i i i i! Ore on - Tax Initiative This proposed tax initiative in Oregon calls for additional excise tax on tobacco and malt beverages. In the best interest of the tobacco industry and as directed by the State Activities Policy Committee, we have joined forces with the brewing industry in this initiative development. TIOR 0020919

This initiative is expected to qualify. As approved by the State Activities Policy Committee, we have met with the principals of the Coalition Against Regressive Taxation (CART). After approving their direction and campaign procedure, the Tobacco Institute member companies have committed to one-third of the campaign budget, up to a final budget of $800,000. A successful campaign can be conducted with this amount of funding resource. Phase I pre-qualification of this budget constitutes a need for $120,000; therefore, the tobacco industry's share is $40,000. Should the initiative fail to qualify, the first assessment will be the only assessment. The tobacco industry will be well represented on this committee, giving us the ability to direct and work with the campaign and funding. We will ask for member company representation on this committee in the next few days. If your company is participating in these initiatives financially, you will find separate state initiative assessments attached. These should be processed as soon as possible with appropriate assessments submitted to the Committee as listed on each statement. For your information, we are sending you the most recent "StateLine" publication regarding the five proposed initiative possibilities. GRM:mw Attachments cc: Mr. K. Michael Irish Stanley L. Temko, Esquire Mr. David M. Welsh Mr. M. Alfred Peterson Mr. William Cannell Mr. Paul Jacobson Ms. Tina Walls Mr. Joe Murray Mr. K.v.R. Dey, Jr. Mr. Kent Wold Mr. Harry G. Steele Mr. Robert A. Emken Mr. Walter Woodson Mr. Hank Crawford Mr. Carl Johnson TIOR 0020920

The Tobacco Institute Oregon Excise Tax Initiative Campaign Pre-Qualification Phase Tobacco industry portion of pre-qualification budget (1/3 x $120,000) $ 40,000 Allocation of Assessment Number 1 Company Percentage* Amount** Philip Morris 41.425% $ 16,570 R. J. Reynolds 36.642 14,657 Brown & Williamson 12.434 4,974 Lorillard 9.499 3,799 100.000% $ 40,000 * Based on four company (Philip Morris, R. J. Reynolds, Brown and Williamson and Lorillard) 1988 Tobacco Institute Initial Annual Dues Data. Initial Annual Dues are computed by each company based on prior year production of cigarettes and manufactured tobacco. ** Checks should be made payable to and mailed to: Coalition Against Regressive Taxation Preston, Shorgrimson, Ellis & Hoffman Attorneys at Law ill SW Fifth Avenue, Suite 3200 Portland, Oregon 97204 Prepared April 7, 1988 TIOR 0020921

The Tobacco Institute Oregon Excise Tax Initiative Campaign Pre-Qualification Phase Tobacco industry portion of pre-qualification budget (1/3 x $120,000) $ 40,000 Allocation of Assessment Number 1 Company Percentage* Amount** Philip Morris 41.425% $ 16,570 * Based on four company (Philip Morris, R. J. Reynolds, Brown and Williamson and Lorillard) 1988 Tobacco Institute Initial Annual Dues Data. Initial Annual Dues are computed by each company based on prior year production of cigarettes and manufactured tobacco. ** Checks should be made payable to and mailed to: Coalition Against Regressive Taxation Preston, Shorgrimson, Ellis & Hoffman Attorneys at Law ill SW Fifth Avenue, Suite 3200 Portland, Oregon 97204 Prepared April 7, 1988 TIOR 0020922

The Tobacco Institute Oregon Excise Tax Initiative Campaign Pre-Qualification Phase Tobacco industry portion of pre-qualification budget (1/3 x $120,000) Allocation of Assessment Number 1 $ 40,000 Company Percentage* Amount** R. J. Reynolds 36.642% 14,657 * Based on four company (Philip Morris, R. J. Reynolds, Brown and Williamson and Lorillard) 1988 Tobacco Institute Initial Annual Dues Data. Initial Annual Dues are computed by each company based on prior year production of cigarettes and manufactured tobacco. ** Checks should be made payable to and mailed to: Coalition Against Regressive Taxation Preston, Shorgrimson, Ellis & Hoffman Attorneys at Law ill SW Fifth Avenue, Suite 3200 Portland, Oregon 97204 Prepared April 7, 1988 TIOR 0020923

The Tobacco Institute Oregon Excise Tax Initiative Campaign Pre-Qualification Phase Tobacco industry portion of pre-qualification budget (1/3 x $120,000) $ 40,000 Allocation of Assessment Number 1 Company Percentage* Amount** Brown & Williamson 12.434% 4,974 * Based on four company (Philip Morris, R. J. Reynolds, Brown and Williamson and Lorillard) 1988 Tobacco Institute Initial Annual Dues Data. Initial Annual Dues are computed by each company based on prior year production of cigarettes and manufactured tobacco. ** Checks should be made payable to and mailed to: Coalition Against Regressive Taxation Preston, Shorgrimson, Ellis & Hoffman Attorneys at Law 111 SW Fifth Avenue, Suite 3200 Portland, Oregon 97204 Prepared April 7, 1988 TIOR 0020924

The Tobacco Institute Oregon Excise Tax Initiative Campaign Pre-Qualification Phase Tobacco industry portion of pre-qualification budget (1/3 x $120,000) Allocation of Assessment Number 1 $ 40,000 Company Percentage* Amount** Lorillard 9.499% 3,799 * Based on four company (Philip Morris, R. J. Reynolds, Brown and Williamson and Lorillard) 1988 Tobacco Institute Initial Annual Dues Data. Initial Annual Dues are computed by each company based on prior year production of cigarettes and manufactured tobacco. ** Checks should be made payable to and mailed to: Coalition Against Regressive Taxation Preston, Shorgrimson, Ellis & Hoffman Attorneys at Law ill SW Fifth Avenue, Suite 3200 Portland, Oregon 97204 Prepared April 7, 1988 TIOR 0020925