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AG TALKS: Deal Compared With Earlier Efforts [11/14-11]

From a New York Times Analysis

NEW PROPOSAL
$206 billion over 25 years. Funds would go to 46 states that have filed
smoking-related lawsuits or have yet to do so. The plan does not need
Congressional approval, but most states must join in.
The cost of cigarettes likely to increase by 35 cents over five years.
 
McCAIN SENATE BILL
$516 billion over 25 years. The money would go into a Govern-ment trust fund.
The legislation did not specify how the money would be spent. Required
Congressional approval.
The cost of cigarettes would increase by $1.10 over five years.
 
JUNE 1997 SETTLEMENT
$368.5 billion over 25 years to be divided among the 40 states that sued the
industry, public health groups and a fund to pay for damage claims and
treatment costs owed to smokers who are ill. Required Congressional approval.
The cost of cigarettes would increase by 62 cents a pack over the life of the
settlement.
 
LIABILITY
 
NEW PROPOSAL
Would settle state lawsuits but not affect other actions against cigarette makers.
 
McCAIN SENATE BILL
Provides no immunity from lawsuits, but damages would be limited to $6.5 billion
a year.
 
JUNE 1997 SETTLEMENT
Bans payment of punitive damages and future class-action lawsuits. Individual
lawsuits would be allowed, but damages would be limited to $5 billion a year.
 
YOUTH SMOKING
 
NEW PROPOSAL
Companies legally agree not to market to youths, but would not pay fines if
underage smoking does not decline.
 
McCAIN SENATE BILL
Penalties of up to $3.5 billion
a year if goals to reduce youth smoking are not met.
 
JUNE 1997 SETTLEMENT
Penalties of up to $2 billion
a year if goals to reduce youth smoking are not met.
 
ADVERTISING
 
NEW PROPOSAL
Restrictions on advertising and marketing to youths. 
 
McCAIN SENATE BILL
Restrictions on advertising and marketing to youths. 
 
JUNE 1997 SETTLEMENT
Restrictions on advertising and marketing to youths. 
 
GOVERNMENT REGULATIONS
 
NEW PROPOSAL
Does not address the Food and Drug Administration's regulatory authority over
tobacco.
 
 McCAIN SENATE BILL
The Food and Drug Admin-istration would be given broad latitude to regulate
tobacco.
 
JUNE 1997 SETTLEMENT
The Food and Drug Administration would be given broad latitude to regulate
tobacco. (pg. A9)
 
"THE NEW SETTLEMENT PLAN"
-- Producers' cost: $206 billion. 
-- Could raise the price of a pack of cigarettes by 35 cents.
-- Provides no protection from private lawsuits.
-- No penalties if youth smoking is not reduced.
 
CONGRESSIONAL BILL 
-- Producers' cost: $516 billion.
-- Would raise the price of a pack of cigarettes by $1.10.
-- Provided no protection from private lawsuits.
-- As much as $6.5 billion in annual penalties if youth smoking was not reduced.
 
1997 SETTLEMENT PLAN 
-- Producers' cost: $368.5 billion.
-- Would raise the price of a pack of cigarettes by 62 cents.
-- Provided protection from private lawsuits.
-- As much as $2 billion in annual penalties if youth smoking was not
reduced.
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