2007 Tobacco Control Trends

The American Lung Association State of Tobacco Control 2007 highlights the following trends:

More States Meet the Smokefree 2010 Challenge
In January 2006, the American Lung Association issued its Smokefree 2010 Challenge, urging all states to pass comprehensive legislation prohibiting smoking in public places and workplaces by 2010. Twenty-one states, the District of Columbia and Puerto Rico have now approved comprehensive smokefree air legislation.⁷ In 2007, seven states—Illinois, Maryland, Minnesota, New Mexico, Hampshire, Oregon and Tennessee—significantly strengthened their smokefree air laws. Tennessee is the first traditional tobacco-growing state to pass strong restrictions on smoking in public places and workplaces.

Congress Takes Action on Tobacco Control
The 110th Congress took meaningful action on a number of important tobacco control measures in its first year. In January, the U.S. Capitol became smokefree—an announcement made by U.S. House of Representatives Speaker-elect Nancy Pelosi before she was sworn in—thereby ending the days of smoke-filled rooms in the U.S. Capitol.

Legislation to give the U.S. Food and Drug Administration (FDA) authority over manufactured tobacco products saw action in the 110th Congress. In February, the Senate Committee on Health, Education, labor and Pensions held a hearing on the Family Smoking Prevention and Tobacco Control Act and in August, the committee voted to send the legislation to the full Senate for action. In the House, a hearing on the legislation was held in the House Energy and Commerce Committee’s Subcommittee on Health. As of early December, the legislation had 55 cosponsors in the Senate and 211 cosponsors in the House of Representatives—a record number for the legislation in each body. The legislation will automatically carry over to 2008.

Earlier this year, the U.S. Senate and U.S. House of Representatives passed a 61-cent increase in the federal cigarette excise tax to fund the State Children’s Health Insurance Program (SCHIP). As of December 1, the package had not become law, having been vetoed by the president. If a compromise can ultimately be found, a 61-cent increase in the federal cigarette tax will be a win-win for public health—in addition to providing much needed medical care for our nation’s youth, including those living with lung diseases such as asthma, a substantial increase of 61 cents will have the added benefit of reducing youth smoking.

The Framework Convention on Tobacco Control, the world’s first tobacco control treaty, again saw no action in the United States in 2007. Officially the treaty is undergoing “interagency review”—a process that has languished since then U.S. Health and Human Services Secretary Tommy Thompson signed the treaty in 2004. As of 2007, 151 nations—not including the U.S.—have ratified the treaty.

Two Prominent National Panels Call for Stronger Tobacco Control Measures at Federal, State and Local Levels
The Institute of Medicine and the President’s Cancer Panel each issued strongly worded reports in 2007, urging stronger tobacco control policies at all levels of government.

Elected officials, policymakers and institutions have a moral obligation to protect the public health; they must assert their collective political will to change policies… contributing to… continued tobacco use… —The President’s Cancer Panel, 2007

In May, the prestigious Institute of Medicine (IOM) issued its landmark report, Ending the Tobacco Problem: A Blueprint for the Nation. The report outlines a series of recommendations, which include urging states to increase their tobacco taxes, pass comprehensive smokefree workplace laws and fund tobacco control programs at levels recommended by the CDC. The IOM concludes “maintaining our present course will not end the tobacco problem” and strongly urged Congress to give the U.S. Food and Drug Administration the regulatory authority over the manufacture, distribution, marketing and use of tobacco products.⁸

The President’s Cancer Panel issued its historic report, Promoting Healthy Lifestyles: Policy, Program and Personal Recommendations for Reducing Cancer Risk, in August. The panel, whose three representatives were chosen by President Bush, urged “the leadership of this nation to summon the political will” to address the public health crisis caused by tobacco use. Like the IOM committee, this panel also concludes that the FDA must have authority to regulate tobacco products in order to reduce the deadly impact of tobacco. The panel makes clear that states also have important responsibilities, including funding tobacco control programs at levels recommended by the CDC, passing comprehensive smokefree workplace legislation and increasing tobacco taxes. The President’s Cancer Panel references the American Lung Association’s Smokefree Air 2010 Challenge, which calls on states to pass legislation making all public places and workplaces 100 percent smokefree by 2010.⁹

Tobacco Industry Marketing Tactics Reach New Lows
New data released by the Federal Trade Commission (FTC) in April shows that tobacco companies are continuing to spend billions of dollars annually marketing their deadly products. In 2005, the most recent year for which data were released, the cigarette companies spent $13.1 billion—approximately $36 million a day. The majority of these marketing dollars are spent on price promotions, such as “buy one, get one free” or coupons for $1.50 off two packs.¹⁰ These promotions target kids, the most price sensitive consumers, and attempt to undermine states’ efforts to increase the cost of cigarettes by raising excise taxes.

Camel and its parent company, R.J. Reynolds, continued its long history of unacceptable marketing campaigns aimed at kids with the launch of Camel No. 9 in January. This product, which is clearly aimed at young girls and teens, features bright pink and teal coloring and claims to be “Light and Luscious.” In September, in magazines with high youth readership, Camel launched the Camel 9 100s line—featuring “Stiletto” cigarettes.

Camel also launched its latest line of candy- and fruit-flavored cigarettes in 2007. Despite signing a settlement agreement with state attorneys general in October 2006 prohibiting the marketing of candy-, fruit- and alcohol-flavored cigarettes, R.J. Reynolds violated the spirit of the agreement by introducing a new line of flavored cigarettes called Camel Signatures barely seven months later. These new cigarettes come with names like Frost (mint-flavored), Robust (cocoa and espresso flavored) and Infused—with Infused described on the R.J. Reynolds website as offering “notes of citrus” and a “sweet apple-like flavor.” These new flavored cigarettes are being advertised in retail stores that are fully accessible to youth. Survey data from 2005 showed that 20 percent of smokers 17 to 19 years old smoked flavored cigarettes during a 30-day period in 2004, while only 6 percent of people over age 25 did.¹¹

Half of States Have a Cigarette Tax of $1.00 or Higher
Eight states—Connecticut, Delaware, Indiana, Iowa, Maryland, New Hampshire, Tennessee and Wisconsin—passed cigarette tax increases in 2007. Previously scheduled tax increases also took effect in Hawaii and Alaska. This brought the average state cigarette tax to $1.112 per pack; it was only $0.446 per pack six years ago.

New Jersey continues to be the state with the highest cigarette tax at $2.575 per pack, while South Carolina continues to have the lowest cigarette tax in the country at $0.07 per pack. The South Carolina House of Representatives, however, approved a cigarette tax increase in 2007 and the legislation will carry over to the 2008 legislative session for Senate action.

Half the states, the District of Columbia and Puerto Rico now have cigarette tax rates of $1.00 or higher, and nine states—Alaska, Arizona, Connecticut, Maine, Maryland, Michigan, Jersey, Rhode Island and Washington—will be at or over $2.00 per pack.

Funding for State Prevention Spending Trends Upward
After several years of declines at the beginning of this decade, funding for tobacco prevention and cessation programs is trending upward. A number of states, including Alaska, Florida, Indiana, Iowa, Mississippi, Mexico, Tennessee and Wisconsin, and the District of Columbia increased the amount of funding for their tobacco prevention and cessation programs for FY2008 (July 1, 2007 to June 30, 2008 for most states). Tennessee, which had previously dedicated almost no state money to tobacco control programs, has allocated $10 million for a tobacco control program in FY2008. While Mississippi increased its funding for FY2008, it falls far short of the $20 million the state spent in previous years. Six states—Alaska, Colorado, Delaware, Hawaii, Maine and Montana—are funding their tobacco control programs at or above the minimum level recommended by the CDC in FY2008.

Sadly, states continue to securitize their Master Settlement Agreement (MSA) payments, or sell them for pennies on the dollar for a one-time cash payment. Four states—Michigan, Ohio, Island and West Virginia—sold part or all of their future MSA payments in 2007. Securitization of MSA payments usually results in states reducing their funding for comprehensive tobacco control programs.

In 2008, 46 states and the District of Columbia also will earn a second chance to dedicate money from the MSA to its intended purpose: Tobacco prevention and cessation programs. Due to a provision in the MSA, states will receive an estimated $1 billion in additional funds in 2008. These additional “strategic contribution payments” will last until 2017; after that, the regular annual MSA payments are scheduled to increase, meaning MSA payments will not drop off again.