ANTI-SMOKING BILL HITS SNAG IN SENATE

WASHINGTON -- Backers of anti-smoking legislation suffered a setback
Thursday in the Senate as lawmakers signaled their opposition to liability
protection for cigarette-makers.

Limits on liability awards are considered important by the architects of the
tobacco package because they would give companies an incentive to
voluntarily accept restrictions on cigarette advertising and marketing. If
the tobacco industry were to fight the restrictions in court, they might be
ruled unconstitutional.

The liability ceilings, which the Clinton administration supports, failed as
a result of an unusual coalition of liberals seeking tougher anti-tobacco
laws and conservatives trying to scuttle the legislation.

By a 67-31 vote, lawmakers rejected a procedural move to block an amendment
striking an $8 billion annual limit on payments tobacco companies would have
to make on lawsuits brought by smokers.

Because the Senate has not voted on the amendment, technically the liability
limits have not yet been deleted from the legislation. But "for all intents
and purposes it's been decided," said Sen. John Kerry (D-Mass.), a key
supporter of the package.

After the defeat, the Senate shelved the legislation until at least next
month, after lawmakers return from their weeklong Memorial Day recess.

The delay means "it will be harder" to gain approval for the legislation by
the House, said its sponsor, Sen. John McCain (R-Ariz.). "Today, we had a
defeat," McCain said. But "we will continue to push forward."

Tobacco companies have said the price tag on the tobacco bill is too
high--estimates on its cost to the companies range from $500 billion to $800
billion--and have refused to support it.

Convinced that the industry position is a negotiating ploy, backers of the
legislation would like to retain the liability limits as an incentive for
cigarette-makers to accept the legislation.

The liability ceiling would be available only to companies that voluntarily
comply with all provisions of the package, including a ban on all
advertisements except black-and-white "tombstone" ads, and refrain from
court challenges.

Sen. Judd Gregg (R-Vt.) argued that the liability limits were a "special
protection for an industry which produces a product that kills you, which is
addictive and which was targeted on kids.

"The devil walked away from the table," Gregg added, referring to the
tobacco companies. "Now, we have the unseemly situation of the United States
Congress chasing after the devil, pleading with the devil to take our plan."

The vote on the liability limits offered one more illustration of how
strongly public sentiment has turned against the tobacco lobby, which long
has been one of Washington's most powerful political players.

The vote was considered close until it became clear the liability ceilings
would fail--then a number of senators switched their votes at the last
moment to record public opposition to any concession on tobacco liability.

"Members either had a blinding flash or decided it was safer to say they
voted against the tobacco companies," McCain said.

The tobacco legislation grew out of a $368.5 billion national settlement
that cigarette-makers reached with state attorneys general last June to end
a series of lawsuits seeking to hold the companies responsible for
smoking-related expenses incurred by state health insurance programs.

The cost of the settlement package rose substantially as lawmakers sought
stricter terms, including a $1.10-per-pack tax on cigarettes.

Sen. Dick Durbin (D-Ill.), a longtime tobacco foe who voted to strip out the
liability limit, asserted the more stringent bill could draw tobacco-makers
back into negotiations. A liability limit could be put back in the
legislation at a later point in the lawmaking process if the
cigarette-makers chose to support the package, he added.

The House has yet to take up tobacco legislation, and House Republican
leaders are hinting they will push for a narrow bill that focuses on
strengthening laws prohibiting cigarette sales to minors.

Dr. C. Everett Koop, a former surgeon general, joined David Kessler, a
former head of the Food and Drug Administration, and House Democratic
leaders Thursday for a news conference at the Capitol to call for House GOP
leaders to schedule action on a comprehensive bill.

Checked-by: Melodi Cornett