News Release

American Lung Association report cards show many states failing to protect public in tobacco policy

Actions of leaders and legislators out of step with public support for key strategies

Peer-Reviewed Publication

Cooney Waters Group, Inc.

January 7, 2003 – New York – Four years after securing more than $240 billion in tobacco settlements, most U.S. states have squandered the unprecedented opportunity to fund comprehensive tobacco initiatives proven to help protect children and adults from disease and death caused by tobacco, according to the first annual American Lung Association State of Tobacco Control 2002 report. Further, a survey of U.S. adults shows that a majority of people support the four key tobacco control strategies recommended by the American Lung Association to reduce the estimated 440,000 American lives claimed each year by smoking-related diseases. Forty-three states and the District of Columbia received an "F" in smokefree air laws, 17 received "Fs" in tobacco taxes, 32 states and the District of Columbia received "Fs" in tobacco program funding, and 28 received an "F" in laws limiting youth access to tobacco. Those grades help illustrate why smoking costs the United States approximately $150 billion each year in health-care costs and lost productivity. Only four states--California, Maine, New York and Rhode Island--scored the highest achievement of two grades of "A".

The news is not all bad. According to the report, 18 states throughout the country have received an "A" for their laws in the categories analyzed.

"This report should be a wake-up call to state legislators and governors about how far they need to go to address the tobacco epidemic," said John L. Kirkwood, President & Chief Executive Officer of the American Lung Association. "Several states are turning their backs on the intent of the tobacco settlement and engaging in fiscal malpractice by mortgaging their future. They are raiding tobacco funds to cover budget shortfalls, and denying themselves a sound investment in their citizens' health," he said.

The American Lung Association State of Tobacco Control 2002 report analyzes individual states' actions four years after the 1998 Master Settlement Agreement (MSA), through which the tobacco industry committed to paying 46 states approximately $206 billion over 25 years, in recovery of the states' tobacco-related health care costs. Four states settled their tobacco lawsuits separately for a total of $40 billion over 25 years.

Twelve states and the District of Columbia, which were facing growing budget deficits, opted in 2002 to securitize a portion of their tobacco settlement funds. They will forego future tobacco settlement payments in favor of a smaller lump sum now, by selling or pledging expected payments to a state-created corporate entity that issues bonds backed by settlement funds.

Close to 54,000 Americans die each year from exposure to secondhand smoke. Within the area of smokefree air legislation, Delaware now joins California in establishing the most protective statutes nationwide. Delaware's landmark Clean Indoor Air Act, enacted in 2002, prohibits smoking in most indoor public places and all common-use areas (hallways, restrooms, lobbies, etc.), and guarantees that 75 percent of all hotel rooms in the state are smokefree. Municipalities in several states have passed local ordinances that ensure smokefree air, and tobacco control advocates continue to fight state initiatives to establish "preemption" whereby weaker statewide legislation would overrule stricter local ordinances. The American Lung Association strongly opposes preemption and supports communities' rights to pass ordinances affecting the health of their citizens.

CIGARETTE EXCISE TAXES
States are now implementing large cigarette tax hikes to increase state tax revenue and reduce tobacco use. Fourteen states and the District of Columbia have cigarette tax of at least $1.00 per pack, and Vermont's tax will go above $1 to $1.19 on July 1, 2003. Twenty-one states and the District of Columbia raised their cigarette excise taxes in 2002--a historic trend in tobacco control.

Raising the cigarette excise tax can rapidly and significantly reduce the number of children who start smoking and encourage many adults to quit. Higher taxes not only discourage youth smoking but also influence minority and lower-income populations to reduce or quit smoking.

TOBACCO PROGRAM FUNDING
Despite evidence that well-funded, sustained and comprehensive tobacco prevention and cessation programs are one of the best ways to combat tobacco use, only six states – Arkansas, Indiana, Maryland, Maine, Minnesota and Mississippi – receive an "A" for committing significant funds toward tobacco prevention and cessation. Maine is number one in the country in funding for statewide tobacco prevention and control.

YOUTH ACCESS
The American Lung Association State of Tobacco Control 2002 report identifies youth access as the area in which states have been successful, with seven grades of "A" awarded. California, Connecticut, Maine, New York, Rhode Island, Texas and Vermont all received the top grade for laws that create an environment that makes it as difficult and inconvenient as possible for kids to get cigarettes. Every day, close to 5,500 young people start smoking for the first time and 3,000 young people become established smokers.

Maine has several youth access laws and a $1.00 tobacco tax increase that has contributed to a 36 percent drop in smoking among high school students between 1997 and 2001, as well as a 72 percent of high school smokers who have tried to quit.

Various states' youth access laws include: placement of tobacco products behind the counter; strong penalties for selling tobacco products to minors (as large as $1,500 and a license suspension of 90 days); restrictions on tobacco advertising, self-service cigarette sales, and vending machines; bans on the sale of bidis to minors and free distribution of cigarettes; random unannounced retail inspections; and even the creation of a statewide enforcement agency in Idaho.

METHODOLOGY
After obtaining a state's score, letter grades were assigned in the four policy categories and based upon criteria developed by the Center For Disease Control and the National Cancer Institute: Smokefree Air, Tobacco Prevention and Control Funding and Youth Access using the standard grade school system. States in the top 10 percent of the standard (90-100 percent) received an A, between 80-89 percent a B, between 70-79 percent a C, and between 60-69 percent a D; those falling below 60 percent received an F. The cigarette tax grades are based on the average (mean) of all state taxes as the midpoint, or the lowest C. The average state excise tax in 2002 was $0.62. The range of state excise taxes is divided into quintiles. The grade ranges are A for excellent state policy while an F indicates inadequate state laws. The grades measure laws at the state level only and do not reflect local ordinances, which also are integral to tobacco control. The report does not assign overall state grades, which would require weighted categories.

E-ADVOCACY
The public can support the necessary changes in state laws and policies to protect people's lungs by logging onto the American Lung Association's website at www.lungusa.org and sending a personalized letter to their state governors demanding tough measures to combat tobacco use and addiction.

In addition to advocacy efforts to help protect people's lungs, the American Lung Association offers Freedom From Smoking online for those who want to quit smoking. Full copies of the American Lung Association State of Tobacco Control 2002 are available as a PDF file at www.lungusa.org.

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The American Lung Association has been fighting lung disease for nearly 100 years. With generous support of the public and the help of volunteers, there have been many advances against lung disease. However, the work is not finished. Looking forward to their second century, the Lung Association will continue to strive to make breathing easier for everyone through programs of education, community service, advocacy, and research. The American Lung Association's activities are supported by donations to Christmas Seals® and other voluntary contributions. You may obtain additional information via the website at www.lungusa.org.

Contacts:
Peter Vigliarolo, 212-886-2213, pvigliarolo@cooneywaters.com
Jennifer Passantino, 732-382-8898, jennpass@cs.com
Michelle Sawatka, 212-315-8727, msawatka@lungusa.org


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