TOBACCO BILL SUFFERS SETBACK OVER LIABILITY-LIMIT VOTE

WASHINGTON - A bipartisan Senate majority uniting liberals and
conservatives stripped a key provision from the sweeping tobacco-control
bill yesterday, raising new doubts about Congress' ability to pass any
tobacco measure this year.

The Senate, in a 61-37 vote, in essence eliminated the legal protections
from damage suits for the tobacco companies that were included in the
tobacco bill sponsored by Sen. John McCain, R-Ariz.,

The protections would have placed an $8 billion-a-year limit on liability
payments by the tobacco companies under pending lawsuits. Proponents said
such a limit was essential if the tobacco companies were to meet some of
the severe restrictions the bill places on them.

Sen. Slade Gorton, R-Wash., voted in favor of retaining the $8 billion
limit; Sen. Patty Murray, D-Wash., voted against it.

The setback appears to have left the legislation in critical condition. Its
sponsors had hoped to complete Senate action on it this week, before
Congress begins a weeklong Memorial Day recess.

Instead, the measure was to be pulled off the Senate floor today for more
urgent legislation. Plans are to take it up anew at some unspecified time
in June, and many contentious amendment battles are still ahead. The
Senate's June schedule is already crowded with many must-pass
appropriations bills.

McCain conceded that delay serves the bill's opponents. The House, whose
Republican leaders are determined to scale back any tobacco-control bill,
has yet to begin work on legislation, and won't until the Senate finishes.

House Democratic Leader Richard Gephardt, D-Mo., called yesterday for
Speaker Newt Gingrich, R-Ga., to schedule a House vote on tobacco
legislation before July 4, but that now appears unlikely.

The quest to kill the liability cap united liberal Democrats outraged at
tobacco companies and conservative Republicans seeking to undermine
McCain's bill. McCain got support from only 16 other Republicans and 20
Democrats in this key test of strength.

Sens. Judd Gregg, R-N.H., and Pat Leahy, D-Vt., led the effort to strip the
liability cap. They argued that the companies do not deserve "immunity" or
"protection" from liability.

"It is just beyond comprehension that an industry that produces a product
that kills people, which they designed to addict kids, would be chosen as
the industry to which we are going to give immunity protection. It makes
absolutely no sense," Gregg said.

"Nobody is running up to me in the streets of Vermont and saying, `Oh,
please, whatever you do, be sure to give a lot of liability protection to
the tobacco companies,' " Leahy said.

Sen. John Kerry, D-Mass., led defenders of the liability cap. He denied
that it gives the tobacco companies any immunity or protection from
lawsuits.

"No protection. None. Zero protection. There is no immunity in this bill.
Zero. None," Kerry emphasized.

All the liability cap would do, Kerry said, is set an $8 billion limit on
the amount the companies would have to pay in any single year to cover
penalties they incur from lawsuits. If they owe more than that, the amount
owed above $8 billion would roll forward to be paid in ensuing years, but
still must be paid in full.

Checked-by: jwjohnson@netmagic.net (Joel W. Johnson)