McCain Unveils Proposed Tobacco Policy
WASHINGTON (AllPolitics, March 30) -- Sen. John McCain (R-Ariz.) on Monday unveiled his long-awaited legislation to set national tobacco policy, calling it "the best proposal" to address the complex issue. But its prospects are uncertain.
The proposed bill would cost the tobacco industry more than $506 billion over 25 years. It also includes a $1.10-a-pack raise in cigarette prices over five years, and a $6.5 billion yearly cap on damages tobacco companies could be forced to pay.
"I believe this is a good bill, I believe it will pass muster and the important critical aspect of it is what it does," said McCain, chairman of the Senate Commerce Committee, which was appointed to write the tobacco legislation.
Limiting the tobacco industry's future liability was one of the main sticking points during round-the-clock negotiations over the weekend. The figure McCain announced was a compromise between those who believe such a limit is necessary for making a national policy work and those who say the industry should get no such protection.
"To obtain the myriad of public health benefits without challenge and obstruction, the bill will place a $6.5 billion removable cap on the industry's yearly liability," McCain said. "That will allow, underneath that cap, no restriction on consumer and class-action lawsuits."
Settling another contentious issue, it was announced the Food and Drug Adminstration would get the authority to regulate nicotine products.
Granting FDA regulatory authority was pushed by the White House, as well as former FDA Administrator David Kessler and Former Surgeon General C. Everett Koop. But McCain received heavy pressure from Republican congressional leaders, as well as tobacco industry officials, not to include it in the bill.
The proposed legislation also set out goals for reducing youth smoking by 60 percent over a 10-year period, along with penalties of up to $3.5 billion on tobacco companies if those goals are not met. The bill also includes advertising restrictions mandating no cartoon characters and no outdoor advertising.
McCain's package adds up to a significantly larger price tag than the $368.5 billion proposed tobacco settlement hammered out last June by cigarette makers, 40 state attorneys general, and class-action lawyers.
The proposed legislation is a product of intense negotiations between Congress, the White House, and public health groups.
The White House said the latest tobacco proposal could be the basis for an agreement between President Bill Clinton and Congress, but "has room for improvement."
"Unless we are imposing tough penalties on the tobacco companies and doing everything in our power to reduce teen smoking, this administration will not address proposals to give tobacco companies protection from liability," White House Chief of Staff Erskine Bowles said.
The proposed legislation next goes to the Commerce Committee Wednesday, and McCain hopes to take it to the Senate floor Friday.
Bowles said the proposed language does not deal clearly enough with how money from taxes on tobacco or penalties paid by cigarette makers would be used to protect public health. Money from the settlement is already a big part of the Clinton's budget proposal with the money already earmarked for health research, child care and education.
But the liability issue is expected to prove extremely sensitive. While McCain's proposal sets an annual cap on suits against the tobacco industry, any cap will be a point of contention.
"It is unacceptable to give this industry special protection -- protection that has never been granted any other industry in our history," said Sen. Kent Conrad (D-N.D.).
Sen. Byron Dorgan (D-N.D.) said, "Frankly, I don't think that this Congress or this country ought to say, 'If you will stop trying to addict our children, we will offer you immunity from suits."
CNN's Wolf Blitzer contributed to this report.
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