Article: Major hurdles crossed in tobacco negotiations
Thursday July 30 6:45 AM EDT
By Gail Appleson, Law Correspondent
NEW YORK (Reuters) - The tobacco industry and state attorneys general have crossed major hurdles in their litigation
negotiations and have begun discussing money, state officials said.
Earlier this week, attorneys general said that they would have to make significant progress towards resolving health care
demands before debating money.
A spokesman for Washington State Attorney General Christine Gregoire, a key negotiator, said the group has begun discussing
economic issues.
North Carolina Attorney General Michael Easley would not comment on topics of discussion but said "I am very optimistic and
very much encouraged. I am most encouraged we have crossed some very difficult hurdles and although I cannot discuss them
in detail I can say we're moving forward on major matters that must be resolved before an agreement can be reached."
Easley said he was particularly encouraged because the major hurdles that have been crossed include those that some people
doubted could be resolved.
He would not predict how close the parties are to an agreement but said "Once you get past certain hurdles things can start
happening pretty quickly."
However, he emphasized that the negotiators did not yet have a finished proposal. "Honestly, we're not there. We just crossed
some major hurdles and we feel good about it."
He said the tobacco lawyers and attorneys general would continue negotiating until late Wednesday night and would meet again
for part of Thursday. He said they would then break to discuss negotiations with their principals and planned to resume talks on
Monday.
Easley said the parties are aiming for an agreement "that protects our children and provides stability to our farming communities
and to our industry workers. Those are our goals and they are not inconsistent goals."
A majority of states have sued the industry to recoup costs for treating sick smokers incurred by their Medicaid programs for
low-income residents.
Last year, the attorneys general negotiated a $368.5 billion settlement with cigarette companies that also resolved class-action
litigation and limited recovery of damages in individual suits.
Those discussions began in April 1997 and ended on June 20, 1997, when the proposed settlement was reached.
However, the deal drew widespread criticism from health groups and politicians who found its term too lenient on the tobacco
industry. The settlement fell apart when Congress refused to back it.
Without a national agreement in place, individual states must settle with the industry or go to trial. So far, Mississippi, Florida,
Texas and Minnesota have reached such deals worth a total of $36 billion. The next state trial is scheduled in Washington in
September.
The attorneys general have been using the Minnesota settlement as a starting point for health demands. The $6.5 billion
Minnesota deal requires cigarette companies to take down advertising billboards and finance anti-smoking programs.
Some states want further concessions including an end to outdoor tobacco advertising and restrictions on the way cigarettes are
sold.
North Carolina, where tobacco is a major crop, is one of 10 states that have not sued tobacco companies. Even so, Easley has
been working to bring the states together as they try to get the attorneys general to agree on money amounts and health issues
they will seek from the tobacco industry.
Of last year's $368.5 billion settlement, which included national health-care provisions, $196.5 billion was to go to individual
states. Attorneys general say that was the figure still on the table. If the settlement just covers the state Medicaid suits it will not
require Congressional approval.
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To hell with limits, I'm buying calls at the open!
choo-choo,
geoff |
