THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Tuesday, July 16, 1996 TAG: 9607160308
SECTION: LOCAL PAGE: B6 EDITION: FINAL
SOURCE: ASSOCIATED PRESS
DATELINE: RICHMOND LENGTH: 58 lines
Nine states have filed lawsuits against the tobacco industry to recover Medicaid funds spent on treating smoking-related illness, but Virginia won't join them.
``I consider the tobacco industry to be a key ingredient of the (state) economy,'' Attorney General James S. Gilmore III said last week. ``I think that bringing these suits would be bad policy for Virginia.''
Gilmore, a Republican, echoed a sentiment that carries bipartisan backing.
``Virginia is obviously a very poor climate for such suits,'' said Lt. Gov. Donald S. Beyer Jr., a Democrat who is Gilmore's likely opponent in next year's campaign for governor.
Despite widespread attacks on public smoking, the tobacco industry remains as sheltered in Virginia as the golden leaves that trim the ceiling of the chamber of the state Senate.
Gilmore has accused the states filing suits of exploiting a valued industry, and he said Virginia will suffer if the cases succeed.
He also criticized the ``questionable legal theory of calling upon industry people to pay for the individual decisions of people.''
In Virginia, that view of the complaints has been written into law.
The General Assembly passed legislation this year that said the state would have to name each injured Medicaid recipient and prove that tobacco injured that person to bring such a lawsuit.
The new law was not limited to suits against tobacco companies and was supported by the state Chamber of Commerce and other business groups.
``Tobacco is the first target,'' said Steven Pearson, a lobbyist for R.J. Reynolds. But ``after tobacco comes alcohol. After alcohol comes dairy and meat.''
Tobacco's support is based largely on its economic power. The industry generates $2.3 billion in state exports, a quarter of all Virginia exports.
Philip Morris alone employs 8,000 people in metropolitan Richmond, with thousands more industry-related jobs around the state.
Philip Morris donated more than $64,000 to last year's legislative candidates. The company gave Beyer at least $34,500 from 1992 through 1994, and it gave Gilmore at least $20,000 from 1993 through 1995.
The contributions don't matter, both men said.
Industry support ``isn't because we're afraid that Philip Morris won't give us $1,000 in the next race,'' Beyer said. It's because they fear driving the industry and its jobs elsewhere.
Del. James F. Almand, an Arlington Democrat who has sponsored bills aimed at reducing minors' access to cigarettes, was one of 18 lawmakers out of 140 who voted against the bill restricting lawsuits.
``I think Virginia should look into filing a lawsuit,'' he said. ``If you can establish that a product has caused the state to unnecessarily spend dollars, then it's legitimate to try to recoup the money.'' ILLUSTRATION: Photo
Attorney General James S. Gilmore III said tobacco is a key crop.
KEYWORDS: TOBACCO MEDICAID LAWSUIT VIRGINIA by CNB