[Congressional Record Volume 144, Number 11 (Thursday, February 12, 1998)]
[Senate]
[Pages S738-S746]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CONRAD (for himself, Mr. Daschle, Mr. Kennedy, Mr. 
        Lautenberg, Mr. Reed, Mr. Leahy, Mr. Dodd, Mr. Bingaman, Mr. 
        Durbin, Mr. Baucus, Mr. Dorgan, Mr. Rockefeller, Mr. Kerrey, 
        Mr. Wyden, Mr. Wellstone, Mr. Torricelli, Mrs. Boxer, Mr. 
        Kerry, Mr. Bumpers, Mr. Moynihan, Mr. Johnson, Mr. Breaux, Mr. 
        Kohl, Ms. Landrieu, Ms. Moseley-Braun, and Mr. Lieberman):
  S. 1638. A bill to help parents keep their children from starting to 
use tobacco products, to expose the tobacco industry's past misconduct 
and to stop the tobacco industry from targeting children, to eliminate 
or greatly reduce the illegal use of tobacco products by children, to 
improve the public health by reducing the overall use of tobacco, and 
for other purposes; to the Committee on Finance.


                          the healthy kids act

  Mr. CONRAD. Mr. President, I rise today to introduce legislation that 
we call the HEALTHY Kids Act. It addresses the question of how we form 
a national policy on tobacco.

  I am joined in cosponsorship by Senators Akaka, Baucus, Bingaman,

[[Page S739]]

Boxer, Breaux, Bryan, Bumpers, Daschle, Dodd, Dorgan, Durbin, Johnson, 
Kennedy, Bob Kerrey, John Kerry, Kohl, Landrieu, Lautenberg, Leahy, 
Moseley-Braun, Moynihan, Reed, Rockefeller, Torricelli, Wellstone, and 
Wyden. And we have additional Senators who are considering 
cosponsorship of this legislation as we speak.
  First of all, I thank the Democratic leader, Senator Daschle, for his 
strong leadership and support of the work of the task force. Months ago 
he called me and asked me to head up an effort within the Democratic 
Caucus to draft tobacco legislation. We have engaged 21 members of this 
task force in a lengthy effort to listen to those affected and to try 
to craft a responsible national tobacco policy.
  We held 18 hearings. We heard over 100 witnesses. We held hearings 
across the country. We engaged in this level of effort because the 
subject is so important.
  Tobacco is the only product that when used legally--and as the 
manufacturer intended--addicts and kills its customers.
  For too long tobacco companies have waged war on our kids. It is time 
to counterattack.
  For too long big tobacco has hooked our kids on a lifelong addiction. 
It is time to stop it.
  For too long the tobacco industry has deliberately targeted kids as 
``replacement smokers'' to fill the shoes of over 425,000 Americans 
killed by tobacco each year.
  Let me repeat that. Over 400,000 deaths a year in this country are 
caused by the use of tobacco products. Many more, as we have heard in 
our hearings, have suffered terribly. As we heard Monday at a hearing 
in Newark, NJ, when we heard from Pierce Frauenheim, a coach and 
assistant principal who had a laryngectomy because of throat cancer 
caused by the use of tobacco products. He told us of the terror and 
trauma of that illness. And we heard from a young woman named Gina 
Seagrave, a young woman who lost her mother to a massive heart attack 
when she was only 45 years of age because of using tobacco products. 
Her tears told the story of her family's pain and suffering.
  Mr. President, those stories are rewritten day in and day out because 
of the awful effects of tobacco. There is something we can do about it 
if only we have the political will and the courage to act. Witnesses 
told us repeatedly that we need a comprehensive plan to dramatically 
reduce the use of tobacco products in our country. That is what we 
present today--the HEALTHY Kids Act.
  Mr. President, the HEALTHY Kids Act is the work of the Senate 
Democratic task force on tobacco legislation. The HEALTHY Kids Act 
provides responsible tobacco policy. It protects children, promotes the 
public health, helps tobacco farmers, and resolves Federal, State and 
local legal claims, without providing immunity to the industry; it 
invests in children and health care; it provides savings for Social 
Security and Medicare; and it reimburses taxpayers for costs that have 
been imposed on them by the use of these products.
  The HEALTHY Kids Act protects children. It does that with a healthy 
price increase--a $1.50 a pack health fee phased in over 3 years. It 
protects children by providing the Food and Drug Administration with 
full authority to regulate these products. It provides strong penalties 
for those companies that fail to reach the targeted projection for the 
reduction of teen smoking--a 67 percent reduction in teen smoking over 
the next 10 years. Those penalties are a 10-cent a pack penalty 
industry wide if the goals are not met and a 40-cent a pack penalty for 
the individual companies for their failure to reach the objective. We 
also protect children by providing comprehensive antitobacco programs. 
Included in that are counteradvertising, prevention programs, smoking 
cessation programs and research. Finally, in protecting children, we 
provide for retailer compliance--State licensure of retailers and no 
sales to minors.
  The HEALTHY Kids Act also promotes the public health. It does so by 
addressing the question of secondhand smoke. Most public facilities in 
the country would be smoke free under our proposal. We would provide 
exemptions for bars, casinos, bingo parlors, hotel guest rooms--that 
is, hotels could have smoking and nonsmoking rooms as they do now--
nonfast-food small restaurants, that is, those restaurants with less 
than 50 seats would be exempt; prisons, tobacco shops, and private 
clubs. At the same time we provide those exemptions, we also provide 
for no State preemption. If a State or local unit of government wants 
to have more stringent provisions, it is free to do so.
  We also promote the public health by protecting the public's right to 
know. We provide for full document disclosure; all relevant documents 
go to the FDA. The FDA is able to make those documents public; and the 
public health interest overrides trade secret or attorney-client 
privileges when the FDA makes a determination that the public health is 
the overriding interest.
  We also provide for international tobacco marketing controls: no 
promotion of U.S. tobacco exports. I am proud to say that in this 
administration we are not doing that, but in previous administrations 
they have. This would codify the conduct of this administration and 
provide for no promotion of U.S. tobacco exports. It also provides a 
code of conduct. No marketing to foreign children. Any activities 
carried out in this country to market to children in another country 
would be illegal. It also has modest funding for international tobacco 
control efforts. And we require warning labels, warning labels of the 
country that is the recipient of products sent from this country. And 
if they do not have a system of warning labels, then our own warning 
labels would apply.

  The HEALTHY Kids Act also helps tobacco farmers. They were left out 
of the proposed settlement completely. Their interest was not 
addressed. We do not think that is fair. We provide $10 billion in just 
the first 5 years for assistance to farmers and their communities. We 
authorize funding for transition payments to farmers and quota holders. 
We provide for rural and community economic development retraining for 
tobacco factory workers and tobacco farmers and even college 
scholarships for farm families if the committees of Congress deem that 
appropriate.
  The HEALTHY Kids Act makes very clear that we will not provide 
immunity to this industry, no special protection for future misconduct, 
no special protection against individual lawsuits for past misconduct. 
We do resolve the outstanding Federal, State, and local government 
legal claims. States, however, can opt out of this national settlement 
if they so choose, and cities and counties are assured of getting a 
fair share of reimbursements that go to States.
  On the question of attorney's fees, we concluded that no monies from 
the HEALTHY Kids Act should be used for attorney's fees. With respect 
to the size of the fees, we deliberated long and hard, listened to all 
of the affected interests and concluded that the attorney's fees in 
these cases ought to be resolved by arbitration panels using ABA 
ethical guidelines. Those guidelines are set out with specificity in 
the legislation that I will introduce today.
  And so if we are in a circumstance like the controversy in Florida, 
if the parties cannot agree, an arbitration panel would resolve the 
matter and determine what the attorney's fees were in the case that has 
been settled. That is also the case in other States. If the parties at 
interest reach agreement among themselves, there would not be an 
arbitration panel. But where there is disagreement as to what the 
appropriate attorney fees should be, an arbitration panel would be 
empowered to make the determination.
  I do not think any of us want to see unjust enrichment of anybody 
based on a resolution of these tobacco issues and tobacco lawsuits 
around the country.
  Mr. President, the HEALTHY Kids Act invests in children, in health, 
in savings for Social Security and Medicare, and reimburses taxpayers 
who have had costs imposed on them.
  The distribution of the funds raised by the act is as follows: 
Payments to States are 41.5 percent of the revenues. The States would 
get 14\1/2\ percent of the money unrestricted; 27 percent would go to 
the States for children's health care, child care and improved 
education.

[[Page S740]]

  We would also provide 15.5 percent for antitobacco programs. That 
includes counteradvertising campaigns as well as smoking cessation and 
smoking prevention programs. NIH health research would be increased. 
They would receive 21 percent of the funds provided. Medicare would get 
4 percent of the money initially but over time that would grow to 10 
percent. Similarly, Social Security would get 6 percent of the money 
initially and that would grow to 12 percent over time.
  We believe it is appropriate when you receive a windfall not to spend 
it all, and so we are providing that when the program is fully phased 
in, over 20 percent of the money, instead of being spent, will be used 
to strengthen Medicare and Social Security for the future.
  That is what the American people want to see happen, and we have 
provided for it in this legislation. Farmers initially get 12 percent 
of the revenues to ease their transition. Obviously, they are going to 
take an economic hit here, and it seemed fair to us that they be 
included in any package to resolve these controversies. Over time their 
part of this package would be phased out and then the Medicare and 
Social Security parts of the legislation would see their share 
increased.

  Mr. President, we have provided here a comparison of the tobacco 
revenue and spending, a comparison between what the President's budget 
called for and what The HEALTHY Kids Act calls for. First of all, in 
terms of total revenue, our plan would raise $82 billion over the next 
5 years, some $500 billion over the next 25 years. In the first 5 
years, the States would get in an unrestricted way $12 billion. They 
would get $22 billion for children--$14 billion for child care, $3 
billion for health care for children and $5 billion for education. The 
research component of the plan would provide $17 billion to the 
National Institutes of Health for increased health research. Medicare 
initially would get $3 billion in the first 5 years. The farmers would 
get $10 billion. That is a 5-year figure. The antitobacco efforts would 
receive $13 billion, and savings for Social Security would be $5 
billion.
  Mr. President, The HEALTHY Kids Act is supported by the American 
public. We did extensive national polling to make certain that what we 
are proposing is in line with what the American people want and the 
polling data shows a high level of support for a significant per pack 
price increase which we have termed a health fee, significant public 
support for strong lookback penalties for failure to meet the goals of 
reducing teen smoking and no special protections for this industry.
  That is what the American people want. That is what The HEALTHY Kids 
Act provides. With respect to the question of a $1.50 per pack health 
fee for youth smoking deterrence and health programs, the American 
people support that by more than a 2-to-1 margin--65 percent in favor, 
30 percent opposed. By the way, this is across party lines, across 
regional lines. The American people support a $1.50 a pack health fee. 
The price increase support for youth smoking deterrence and health 
programs cuts across party lines. The poll shows if it is termed tax 
support it is very strong all across the country, even stronger if it 
is for a health fee. In fact, 69 percent of Democrats support the $1.50 
health fee, 67 percent of Republicans.
  There is also strong public support for a lookback penalty of 50 
cents a pack if the industry fails to meet the goals for the reduction 
of teen smoking. By 54 percent to 34 percent the American public 
supports lookback penalties of 50 cents a pack or more. In fact, a 
significant majority of the 54 percent support a dollar a pack lookback 
penalty.
  Voters are also strongly opposed to providing special protections to 
the tobacco industry. When we asked the American people: Do you want to 
give immunity to this industry? Do you want to give them special 
protection going forward? By 55 percent to 32 percent, they oppose any 
special protections being given to this industry. They say no to 
immunity. The HEALTHY Kids Act says no to immunity.
  The HEALTHY Kids Act accomplishes the objectives laid out by 
President Clinton. He laid out five. He said you have to reduce teen 
smoking by providing tough penalties and a health fee or price increase 
that will deter youth smoking. We have full FDA authority. We are 
changing the industry culture. We meet the additional health goals laid 
out by the President, and protect tobacco farmers and their 
communities.
  As the Vice President said yesterday when we unveiled this proposal 
in a press conference here on Capitol Hill: The administration strongly 
supports this bill.
  The Vice President reported that if this bill comes to the 
President's desk, he will sign it and sign it without hesitation.
  I expect that big tobacco will fight these initiatives. Indeed, we 
saw yesterday they came out swinging against the proposal that I am 
offering here today. We will hear from the tobacco industry, its 
lobbyists and its supporters in Congress, that we cannot have a health 
fee of $1.50 a pack, we can't fund public health programs or hold the 
industry and tobacco companies accountable if they sell to kids. We 
will hear from them that we cannot give FDA the same authority it has 
over prescription drugs and our food supply.
  I submit, if we care about our kids' futures, we must do all of these 
things. This legislation lays down a marker for good, responsible, 
national tobacco policy to protect our kids and promote the public 
health. It sets a clear, unambiguous test against which other 
legislation can be measured. And it sets a challenge for those who say 
they want to protect our kids but have so far not produced effective 
tobacco control legislation. The HEALTHY Kids Act recognizes that 
tobacco is causing addiction, disease and death. It also recognizes 
that there is something we can do about it. HEALTHY Kids affirms life 
and health and our commitment to our children. It tells you we can make 
a difference.
  I invite my colleagues to join in a bipartisan effort to pass 
legislation like we are offering here today. We can do it and we can 
make a difference. We can reduce the addiction, the disease and the 
death that is being caused by the use of tobacco products. Now is the 
time to act. The public supports it. Again, I ask my colleagues on both 
sides of the aisle to join us in this effort. There is no reason for 
this to be a partisan issue. There is every reason for us to work 
together to resolve the challenges posed to our society by the use of 
these products.
  Mr. President, I note a colleague of mine, Senator Reed of Rhode 
Island, is on the floor. Senator Reed played a critical role in the 
development of this legislation. He was one of the most active 
participants on the task force who has worked for months to fashion 
these legislative proposals. I commend Senator Reed publicly for his 
contributions to this effort.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from Rhode Island is recognized.
  Mr. REED. Mr. President, I rise today to join my colleague, Senator 
Conrad from North Dakota, in supporting and introducing the HEALTHY 
Kids Act and thank him for his kind words. I must say, if there is 
anyone who has been a true leader and true hero in this struggle to 
date, it has been Kent Conrad, whose leadership helped pull together 
not only an impressive array of cosponsors but, with over hundreds of 
witnesses and many, many sessions, he was able to get to the substance 
of a very complicated and difficult issue: How are we going to respond 
to the crisis of teenage smoking in the United States? How are we going 
to protect the public health of America, particularly America's 
children?
  Today we are introducing the HEALTHY Kids Act, which will, I believe, 
do that. Again, I commend Senator Conrad for his great leadership and 
effort, and I look forward to working with him and all my colleagues to 
develop legislation that will once and for all prevent the illegal sale 
of cigarettes to children in this country.
  We are all aware of the depressing statistics with respect to smoking 
and children in the United States. Today, some 50 million Americans are 
addicted to tobacco smoke. Every year, 1 million children become 
regular users of cigarettes, tobacco. One-third of them will die 
prematurely of lung cancer, emphysema, or other horrible smoking 
related illnesses.

[[Page S741]]

  This is an addiction. Fully three-quarters of smokers want to quit 
but they cannot because they are addicted. The most disturbing aspect 
of this addiction is it begins with young people. Mr. President, 90 
percent of adult smokers today began to smoke while they were 18 years 
old or less. In fact, this goes down to children who are 10, 11, 12 
years old. It is a shocking, disturbing, and all-too-real aspect of 
American life and culture. We have an opportunity, indeed an 
obligation, to do something about it. That is why I am here, along with 
Senator Conrad, to join in the introduction of this HEALTHY Kids Act.

  In my home State of Rhode Island, we have a situation in which adult 
smoking is beginning to stabilize. Unfortunately, teen smoking 
continues to rise, with a more than 25 percent increase among high 
school students. That is a bad omen for the future, a bad omen for the 
country. It is too easy for children to buy cigarettes. It is too easy, 
in a climate in which the tobacco industry spends upward of $5 billion 
a year making cigarette smoking appear to be alluring, sophisticated, 
adult-oriented--all those things which are attractive to children.
  We know from the record that has emerged over the last several months 
in court proceedings that this is not a coincidence, we know that 
children have been deliberately targeted by cigarette companies. They 
are the replacement customers for the 400,000 Americans who die each 
year of smoking-related diseases. We have to stop that insidious 
replacement, that insidious attack on the youth of America.
  We begin this legislative process in a situation in which the tobacco 
industry has worked hard to earn the distrust--let me say it again--the 
distrust of the American people. Over the years they have not been 
candid. They have deliberately confused, fought against, and frustrated 
attempts to regulate their product in the marketplace.
  I recently came across an interesting story about youthful smoking 
among boys. One of the research scientists said, ``The cigarette smoker 
is slowly and surely poisoning himself and is largely unconscious of 
it.'' That report was in Education Magazine in 1909. The tobacco 
industry has long known that cigarette smoking is harmful to children, 
and harmful to public health.
  In 1963, Battelle Laboratories in Switzerland did a series of studies 
for the British American Tobacco Company, that's the parent of Brown & 
Williamson Tobacco Company. The conclusion, after review of these 
studies by the general counsel of Brown & Williamson, was shown as 
follows: ``We are then in the business of selling nicotine, an 
addictive drug, effective in the release of stress mechanisms.'' Since 
1960, the industry has known they were selling an addictive product, 
and has known they were selling a product that killed people.
  It has all, though, been obscured and dressed up by advertising that 
would suggest to everyone that smoking is not harmful; indeed, claiming 
it is healthful. That is absolutely wrong. Back in the 1920s, the 
companies that were selling cigarettes were advertising themes like, 
``20,679 physicians say Luckies are less irritating.'' Promoting 
cigarettes, in effect, as a healthful practice and not a harmful 
practice. Another theme of those days was, ``For digestion's sake, 
smoke Camels.'' Again emphasizing an illusory therapeutic value that 
never existed in cigarettes.
  In 1953, an advertisement read, ``This is it. L&M filters are just 
what the doctor ordered.'' As if the medical profession was endorsing a 
product which they knew was harmful and which they suspected, but 
perhaps did not yet know, was highly addictive.
  In this Congress, we have tried to rein in the use of tobacco by 
children, tried to control the access of young people and tried to warn 
the American public about the dangers of tobacco. In the 1960s, we 
brought the industry, we thought, kicking and screaming to accept 
legislatively mandated warning label. Only after the fact did we learn 
that the industry privately accepted this label as a good fortune 
because it allowed them to defend themselves in court with the notion 
that smokers assumed the risk because they read these labels. Only 
recently, with the evidence that is more and more conclusive each day 
of the addictive quality of cigarettes, has the industry begun to 
respond.

  Today we are here to ensure that the past is not repeated, the past 
of addiction of young people to cigarettes and the past of a very 
pliant Congress, not effectively regulating the tobacco industry. That 
is why the HEALTHY Kids Act is so important. It represents a 
comprehensive effort to ensure that our children are safe and the 
public health is protected.
  One of the important elements of this bill is a price increase of 
$1.50 a pack. This is not in any way an attempt of retribution on the 
industry. Rather, it recognizes the fact that a price increase is 
probably the strongest deterrent there is to teenage smoking. Unlike 
adult smokers who may already very well addicted, teenagers will 
respond to price increases. A price increase is one sure way, perhaps 
the best way, we can ensure that teenagers do not smoke.
  The second aspect of the act is giving the FDA full authority over 
tobacco products, all tobacco products. This proposal would not 
condition their authority; it would give the FDA the authority, the 
responsibility, the obligation to regulate tobacco as it regulates so 
many other drugs and so many other products in our society.
  This legislation also includes strong look-back penalties. The 
HEALTHY Kids Act would set a goal of reducing teenage smoking rates by 
67 percent in 10 years and would hold manufacturers accountable for 
these tough goals by imposing 10-cent-a-pack penalties on the industry 
across the board and 40-cent penalties on brand-specific products that 
do not meet the targeted reductions. There would be no rebate. In the 
proposal the industry negotiated with the Attorneys General, there 
would be the possibility of a company receiving a rebate by just trying 
hard. This legislation would require the goal be met, not simply the 
effort be made. This would also include comprehensive anti-smoking 
programs, through advertising, prevention programs, and other means 
that would help ensure that children do not smoke. These program would 
also give adults, if they wish to change, access to programs to make 
sure they can make that transition from smoking to nonsmoking.
  Because of the money that is generated, we will be able to commit 
significant resources to programs that are extremely important, 
programs that have been outlined so well by Senator Conrad: education, 
child care, health resources.
  Also, this legislation, importantly, does not curtail prospective 
liability for the tobacco industry. It would settle the suits that have 
been lodged by the State attorneys general. Also, it would settle 
claims with respect to governmental entities, but it would allow 
individual citizens who have been harmed and who will be harmed by 
tobacco smoke to bring their case to court.
  I believe this is a crucial part of the legislation, because without 
this, the other mechanisms that we develop may well be undermined by 
sophisticated corporate reorganizations by the industry, by challenges 
to aspects of the law, and by many things which the tobacco companies 
have done in the past to remake themselves to comply with Federal 
statutes. Statutes which Congress thought would control their behavior 
but which in many cases not only did not control their behavior but 
gave the tobacco companies additional ammunition to defend themselves 
against civil suits in the courts.
  I believe that this liability issue is an important one and one that 
distinguishes this legislation from others that have been introduced in 
this Congress.
  We here today have the opportunity to do what all Americans want us 
to do, ensure that children do not have ready access to cigarettes, 
ensure that the next generation of Americans is not addicted before 
they become adults, ensure that the public health in this country is 
protected, ensure that we are able to create an environment in which a 
parent does not have to confront what must be one of the most harrowing 
moments, the realization that a young son or a young daughter is 
beginning to smoke and realizing also, as we do today, that that means 
that this child will die prematurely.
  No parent should have to endure that moment. No child should have to 
be subject to the barrage of advertising,

[[Page S742]]

the barrage of influences which have forced that child to smoke 
cigarettes. I look forward to working with my colleagues to enact this 
bill and to meet these goals. I look forward, as we all do, to the day 
in which cigarette smoking is not something that we associate with the 
youth of this country.
  I yield my time.
  Mr. KENNEDY addressed the Chair.
  The PRESIDING OFFICER. The Senator from Massachusetts.
  Mr. KENNEDY. Mr. President, I want to just take a few moments this 
afternoon to express my very warm appreciation to Senator Conrad for 
the leadership that he has provided in bringing together a variety of 
different views and offering on behalf of the families of this country 
an absolutely superb proposal that is focused on how we are going to 
reduce smoking for the young people of this country.
  This bill isn't the perfect solution, but I daresay that if this 
particular legislative proposal was enacted into law it would save the 
lives of millions of Americans.
  This has been a long process, Mr. President, since the first Surgeon 
General pointed out the dangers of smoking. This has been a constant 
effort over many, many years to try and address this issue in a 
comprehensive and responsible way.
  All of us take our hats off to the work that was done by the 
attorneys general that resulted in the June 20 settlement. But the 
legislation Senator Conrad has introduced today is really a very, very 
comprehensive proposal that, in many respects, may be the most 
important legislative undertaking that we will have in this Congress.
  Senator Conrad and the other members of the task force should be 
commended in putting this proposal forward so early in the Congress. We 
know we have maybe 90 days left in this session, but I daresay that our 
time could not be more beneficially spent than in the debate and the 
discussion of this legislation.
  I join with those in hoping that we can get thoughtful consideration 
of this legislation in the committee on the floor of the Senate. It 
incorporates the principles that have been identified by the public 
health community and those who have studied this issue over a long 
period of time which are most important in reducing smoking:
  No. 1, raising the cost of cigarettes in a substantial way over a 
short period of time. In addition, the counteradvertising measures are 
very, very important. Those two measures in tandem can make a dramatic 
difference in the number of young people who will smoke in the future.
  The strong FDA measures will also make sure the Agency will have the 
power and the authority to regulate nicotine and the other additives in 
cigarettes.
  I think the attention that was given in the secondhand smoking 
proposals and also in recognizing our responsibilities of promoting 
cigarettes overseas are very thoughtful suggestions in these areas.
  I want to add that I believe it is so important that the revenues 
that are raised from this proposal will give a substantial boost to 
programs that affect the children of this country. A very substantial 
part of the financial resources that are gained when this legislation 
is enacted will be focused on the children who have been the focus of 
the tobacco industry for over a long, long period of time. I commend 
the Senator and the task force for that commitment to the nation's 
children.
  Secondly, there is an equally strong commitment towards supporting 
the biomedical research which offers such extraordinary opportunities 
for breakthroughs, not only in children's diseases but in other medical 
conditions such as cancer, AIDS, heart disease, diabetes, Alzheimer's 
Disease, and mental illness.
  This legislation can make a major difference in the public health of 
the nation by reducing youth smoking. It can also make a major 
difference to the children of this nation in focusing resources to make 
their lives more hopeful in the future. And it can make a major 
difference in terms of the biomedical research opportunities at NIH 
which offer extraordinary hope in finding treatments for some of the 
nation's most severe medical conditions.
  For all these reasons, this legislation should go forward. As Senator 
Conrad has pointed out, he welcomes the chance for others to join in 
strong support of this legislation, but certainly it is the challenge 
that is laid out here. Others will have views. We hope they will come 
forward.
  What we have heard so far is a deafening silence. I don't think the 
American people are going to tolerate a silence in blind opposition to 
what has been a very thoughtful, a very comprehensive, and a very 
detailed response to something that is of central importance to every 
family in this country.
  I commend the Senator from North Dakota for all of his work and 
indicate a great desire to work closely with him and the others to make 
sure this legislation becomes law.
  Mr. CONRAD addressed the Chair.
  The PRESIDING OFFICER. The Senator from North Dakota.
  Mr. CONRAD. Mr. President, I thank Senator Kennedy. He has been an 
outstanding member of this task force team. No member of the task force 
contributed more to the work of this group than Senator Kennedy. He has 
played an absolutely key role in the development of this legislation, 
through his own efforts and the efforts of his outstanding staff. He 
has been a leader for a lifetime on these issues, and I extend my 
deepest personal appreciation to him for his assistance and support.
  I would also like to recognize Senator Baucus, who is on the floor. 
Senator Baucus who is an original cosponsor of this bill has been 
enormously helpful as well. He is a member of the Senate Finance 
Committee and has a special understanding of the financial aspects of 
this legislation. I thank Senator Baucus for his commitment and his 
leadership as well.
  Let me conclude by thanking my staff who have worked very long hours 
to produce this legislation: Bob Van Heuvelen, my policy director and 
chief counsel; Tom Mahr who is the person on my staff who heads up all 
of the health issues who has worked incredibly hard and with great 
skill to craft this legislation; Monica Boudjouk who has spent many a 
long evening helping us to put together the many details of the 
proposal before us; and Mark Harsch, a fellow on my staff who has been 
enormously helpful as well.
  I thank them all for their contributions, as well as the staff of the 
other task force members who put a great deal of time and effort into 
working to produce this bill. I thank them all.
  Mr. BAUCUS addressed the Chair.
  The PRESIDING OFFICER. The Senator from Montana.
  Mr. BAUCUS. Mr. President, the Senator from North Dakota is much too 
kind in his compliments of this Senator. The real credit goes to the 
Senator from North Dakota. We have seen many task forces appointed by 
various leaders on both sides of the aisle. I think we know that most 
task forces basically do their work. They meet, they have several 
meetings, and are earnest in trying to come up with a good solution 
assigned to them by the leader.
  In this case, the Senator from North Dakota added new meaning to the 
definition of task force. First of all, they tasked; they worked very 
hard. I have not seen any effort since the days I have been in the 
Senate where a task force, a group worked so hard at so many meetings, 
called in so many outside experts in such a wide variety of fields to 
make sure they came up with a very solid, comprehensive, near bullet-
proof proposal in an area that is as complicated as this, whether it is 
taxation issues, whether it is health issues, whether it is judicial 
issues, whatever they may be.
  All of us who have any knowledge of the degree to which the Senator 
from North Dakota put this group together salute him. I have never seen 
anybody work as hard, as diligently and come up with such a fine 
product as the Senator from North Dakota. I hope that future task 
forces use his as a model, because if they do, the people of our 
country will be very, very well served, just as the Senator from North 
Dakota's task force has served America with his efforts and his work. 
He has done the best job of any Senator I have ever seen on any kind of 
task force or group effort trying to come up with a solution to a very 
complicated problem. Again, I salute him.

[[Page S743]]

  Mr. President, I ask unanimous consent that the following letters of 
support for the Healthy Kids Act be submitted into the Record following 
my remarks.
  There being no objection, the letters were ordered to be printed in 
the Record, as follows:

 Joint Statement of Drs. Koop and Kessler on the Conrad Task Force Bill

       ``We have been working steadfastly with Republican and 
     Democratic legislators to help fashion comprehensive tobacco 
     legislation that will have the net effect of reducing the 
     number of people who smoke and fundamentally changing the way 
     the tobacco industry does business without granting them 
     immunity or special concessions.
       ``The principles in the Conrad task force legislation track 
     closely with the public health principles and goals outlined 
     in the report of the Advisory Committee on Tobacco Policy and 
     Public Health. It is a good step in a legislative process 
     that we hope results in concrete, comprehensive public health 
     measures to reduce the harm from smoking.
       ``We look forward to working with Sen. Conrad and all other 
     members of the Congress to achieve these important public 
     health goals.''
                                  ____


    Statement of Hubert H. Humphrey III, Attorney General, State of 
                               Minnesota

     Re: Senator Kent Conrad's Healthy Kids Act, Wednesday, 
         February 11, 1998
       I commend Senator Conrad for his leadership of the Senate 
     Democratic Tobacco Task Force in its efforts to address the 
     number one public health issue of our day. The Healthy Kids 
     Act, proposed by Senator Conrad today, is a monumental step 
     forward in our efforts to advance public health and protest 
     future generations of kids.
       Senator Conrad's bill offers the best hope yet for saving 
     our children from tobacco addiction, disease and death. It's 
     a common sense approach that will reduce youth smoking rates 
     dramatically and hold the tobacco industry accountable for 
     results.
       The bill's strong financial penalties against the industry 
     for continuing to sell to kids creates a powerful economic 
     incentive to reform this industry's conduct. And by giving 
     the FDA full authority and oversight over the health hazards 
     of tobacco, the tobacco industry's manipulation of nicotine 
     to keep smokers addicted will finally come to an end.
       This bill stands in stark contrast to the sweetheart deal 
     proposed by the tobacco industry last summer. and it's 
     because Senator Conrad and the Task Force asked the right 
     question. Instead of asking ``what will the industry 
     accept,'' Senator Conrad asked ``what is the right policy for 
     the nation.'' And the result is a bill that gets it right for 
     our children without giving this outlaw industry any special 
     immunity that no other business in America enjoys.
                                  ____



                             National Association of Counties,

                                Washington, DC, February 11, 1998.
     Hon. Kent Conrad,
     U.S. Senate, Washington, DC.
       Dear Senator Conrad: The National Association of Counties 
     (NACo) is pleased to support your bill, the Healthy Kids Act. 
     Not only does the legislation recognize the important health 
     responsibilities counties assume in the nation's 
     intergovernmental system, it also acknowledges the 
     responsibilities they have for enforcing tobacco control 
     ordinances. The bill is a very strong step forward for public 
     health.
       As we understand it, the Healthy Kids Act recognizes the 
     unique and substantial tobacco-related health care costs 
     counties incur separate from the states' costs. As you know, 
     counties provide health care to individuals who have no 
     private or federally subsidized insurance, such as Medicaid. 
     Counties provide uncompensated care under general medical 
     assistance programs; through their health facilities; and/or 
     make payments to other facilities. Many also contribute 
     directly to the non-federal share of Medicaid. A number of 
     local governments filed suit against the tobacco industry 
     prior to the June 1997 proposed settlement using these facts 
     as a basis for part of their arguments.
       We are also pleased to understand that county tobacco laws 
     and enforcement activities would not be preempted by federal 
     law under the bill. Counties must continue to be able to 
     enact and enforce, with locally-determined remedies, local 
     tobacco ordinances and penalties which are stronger than 
     state or federal law.
       Thank you again for your leadership on this issue. NACo 
     looks forward to working with you to advance and refine the 
     Healthy Kids Act.
           Very Truly Yours,

                                                Randy Johnson,

                                                  President, NACo,
     Hennepin County Commissioner.
                                  ____



                           American Public Health Association,

                                Washington, DC, February 11, 1998.
     Hon. Kent Conrad,
     U.S. Senate,
     Washington, DC.
       Dear Senator Conrad: The American Public Health Association 
     (APHA), consisting of more than 50,000 public health 
     professionals dedicated to advancing the nation's health, 
     commends you for developing a comprehensive tobacco bill that 
     is a significant step forward toward protecting public 
     health, especially our nation's children and adolescents.
       Your legislation addresses many priority issues for APHA 
     and the public health community and we recognize that in 
     these areas your bill provides stronger than the proposed 
     settlement and many other current tobacco proposals in the 
     Senate. APHA is particularly pleased with the following 
     aspects of your tobacco bill:
       Reaffirmation of FDA jurisdiction over tobacco products, 
     especially the codification of the tobacco-related 
     regulations promulgated this summer by the Secretary of 
     Health and Human Services;
       Preservation of state and local authority to impose 
     stronger requirements, prohibitions, and other measures to 
     control tobacco;
       Creation of a national tobacco surveillance and evaluation 
     program at the US Centers for Disease Control and Prevention 
     to monitor patterns of tobacco use and assess the 
     effectiveness of tobacco control efforts.
       Requirement that tobacco control initiatives and programs 
     funded under this bill utilize proven and effective 
     methodologies;
       Recognition that certain subpopulations, such as women and 
     minorities, are disproportionately affected by tobacco 
     products and calling for research to be conducted to study 
     different effects of tobacco use on these groups;
       Assistance to tobacco growers, their families, and 
     communities;
       Creation of an international code-of-conduct for tobacco 
     companies to help protect children and adults in other 
     countries from the dangers of tobacco products;
       Support for international tobacco control efforts, 
     including the funding of bilateral and multilateral 
     assistance and the creation of a non-governmental 
     organization to work with other NGOs abroad on tobacco 
     control;
       Ban on the use of taxpayer money to help promote U.S. 
     tobacco products overseas;
       Health care assistance to uninsured and underinsured 
     individuals with financial hardship who suffer from tobacco-
     related illnesses and conditions;
       Strengthen look-back provisions to ensure that tobacco 
     companies are held accountable if adolescent smoking rates do 
     not decrease;
       No special legal protections for tobacco companies.
       As you work with your Senate colleagues on moving tobacco 
     legislation, we urge you to consider strengthening the public 
     health title of the bill. Specifically, APHA advocates 
     stronger involvement of the Centers for Disease Control and 
     Prevention and state and local health departments in the 
     myriad public health activities funded under this title, 
     increased funding for the public health initiatives under 
     this title, inclusion of additional public health tobacco use 
     prevention and reduction initiatives such as environmental 
     tobacco smoke education programs and research, and other 
     public health and prevention focused efforts.
       We are committed to working with you and your Senate 
     colleagues from both sides of the aisle to ensure that the 
     final tobacco control legislative vehicle is the strongest 
     possible national tobacco policy. We appreciate your efforts 
     to ensure the protection and promotion of public health and 
     offer our assistance as you continue to work on this issue of 
     critical global public health significance.
           Sincerely,

                                 Richard A. Levinson, MD, DPA,

                                     Associate Executive Director,
     Programs and Policy.
                                  ____



                                    American Lung Association,

                                Washington, DC, February 11, 1998.
     Hon. Kent Conrad,
     U.S. Senate, Washington, DC.
       Dear Senator Conrad: The American Lung Association is 
     pleased to endorse your tough tobacco legislation--The 
     Healthy Kids Act. This is the legislation the American people 
     have been demanding. It is not a deal for the tobacco 
     industry. It is a promise to our children. We are grateful 
     that you have made your legislative priority public health, 
     not saving the tobacco industry.
       Americans oppose special deals for Big Tobacco. This 
     legislation reflects that sentiment and does not create 
     unprecedented special protections for the tobacco industry.
       Americans know that in their own communities they can pass 
     even stronger public health laws than those passed at the 
     federal level. This bill respects the rights of state and 
     local governments to continue to pass strong measures.
       This bill promises to create a solid national tobacco 
     policy that will improve health. The American Lung 
     Association believes that your approach will succeed.
       Public opinion polling conducted recently for the American 
     Lung Association and its medical section, the American 
     Thoracic Society, found that voters overwhelmingly support 
     (65% to 30%) the $1.50 per pack fee on cigarettes. Voters 
     also support stiff penalties on tobacco companies if they 
     continue to sell to our children (54% support a per pack 
     penalty of $0.50 or more compared to 28% who want no 
     penalty). The electorate opposes special protections for the 
     tobacco industry (55% to 32%). Nearly seven out of ten voters 
     (69% to 33%) want the tobacco companies to follow the same 
     rules on marketing to children overseas as they do in the 
     U.S. It is clear that your bill is in sync with the will of 
     the American people.
       The American Lung Association hopes that Congress will 
     follow your lead--keep this

[[Page S744]]

     promise to our children--and enact the Healthy Kids Act into 
     law.
           Sincerely,
                                                 John R. Garrison,
     CEO and Managing Director.
                                  ____


  Statement of the ENACT Coalition Regarding the Introduction of The 
                            Healthy Kids Act

       (February 11, 1998) The ENACT coalition of major public 
     health organizations applauds today's introduction of the 
     Healthy Kids Act by Senator Conrad and his co-sponsors. We 
     support a strong comprehensive approach and welcome this 
     bill.
       The Healthy Kids Act encompasses the key policies that 
     ENACT has stated must be included in any effective tobacco 
     control legislation. The bill contains strong and effective 
     provisions regarding FDA authority over tobacco sales, 
     manufacturing and advertising; significant price increases to 
     deter use by kids; effective ``look-back'' penalties if sales 
     to youth don't decrease; a vigorous crackdown on the illegal 
     sale of tobacco to minors; protections from secondhand smoke; 
     disclosure of tobacco industry documents; assistance to 
     tobacco farmers; and support for efforts to reduce tobacco 
     use internationally.
       ENACT believes that only a comprehensive bill that meets 
     our minimum criteria can adequately address the complex 
     problem of tobacco use and reduce the number of kids who 
     start using tobacco, and the number of adults who die each 
     year.
       We expect a number of additional proposals to be introduced 
     in the House and Senate in the coming weeks. We will evaluate 
     each of them, and those already introduced, for their 
     adherence to the public health principles we have set forth. 
     ENACT is committed to working with Senator Conrad and with 
     Members of Congress from both parties to enact a 
     comprehensive, bi-partisan, well-funded and sustainable 
     tobacco control policy.


              ENACT coalition members (February 11, 1998)

       Allergy and Asthma Network--Mothers of Asthmatics, Inc.
       American Academy of Child & Adolescent Psychiatry.
       American Academy of Family Physicians.
       American Academy of Pediatrics.
       American Association for Respiratory Care.
       American Association of Physicians of Indian Origin.
       American Cancer Society.
       American College of Cardiology.
       American College of Chest Physicians.
       American College of Occupational and Environmental 
     Medicine.
       American College of Physicians.
       American College of Preventive Medicine.
       American Heart Association.
       American Medical Association.
       American Psychiatric Association.
       American Psychological Association.
       American Society of Anesthesiologists.
       American Society of Clinical Oncology.
       American Society of Internal Medicine.
       Association of American Medical Colleges.
       Association of Black Cardiologists, Inc.
       Association of Maternal and Child Health Programs.
       Association of Schools of Public Health.
       Campaign for Tobacco-Free Kids.
       College on Problems of Drug Dependence.
       Council of State & Territorial Epidemiologists.
       Family Voices.
       The HMO Group.
       Interreligious Coalition on Smoking OR Health.
       Latino Council on Alcohol & Tobacco.
       National Association of Children's Hospitals.
       National Association of County and City Health Officials.
       National Association of Local Boards of Health.
       National Hispanic Medical Association.
       Oncology Nursing Society.
       Partnership for Prevention.
       Society for Public Health Education.
       The Society for Research on Nicotine and Tobacco.
       The Society of Behavioral Medicine.
       Summit Health Coalition.
       A number of the nation's major public health organizations 
     have formed ENACT (Effective National Action to Control 
     Tobacco). This growing coalition has pledged to work with the 
     Congress, the Administration, the public health community and 
     the American people to pass comprehensive, sustainable, 
     effective, well-funded national tobacco control legislation.
                                  ____


 Statement by the Coalition for Workers' Health Care Funds Supporting 
         the Senate Democratic Task Force ``Healthy Kids'' Bill

       The Coalition for Workers' Health Care Funds represents 
     some 2,500 union sponsored, multiemployer health and welfare 
     funds which have brought class action law suits against the 
     tobacco companies seeking reimbursement for their health care 
     costs of tobacco-related diseases.
       The Coalition believes that the legislation introduced by 
     Senator Kent Conrad and Senator Tom Daschle on behalf of the 
     Senate Democratic Tobacco Task Force is both sound and 
     reasonable. It represents good public health policy, while at 
     the same time protecting the civil justice rights of the 
     multi-employer health & welfare community and others with 
     claims against the tobacco companies.
       We are particularly pleased that the legislation includes 
     an adjustment assistance program for those tobacco workers 
     who might be adversely effected by the legislation, and we 
     encourage the sponsors to further develop this important 
     program. Such assistance for workers is essential in light of 
     the fact that for the past 18 years, the tobacco companies 
     have engaged in a systematic corporate policy to downsize the 
     workforce without assistance for its workers.
       According to the ``Statistical Abstract of the Unite States 
     1997'' the tobacco industry has reduced its total employment 
     by over 40% since 1980; from 69,000 in 1980 to 41,000 in 
     1996. Moreover, the ``Abstract'' projects that by 2005 the 
     industry will have further reduced its U.S. employment to 
     26,000, for an overall reduction since 1980 of 62.4%. 
     Absolutely none of this workforce reduction has been due to a 
     profit decline for the industry since, again according to the 
     ``Abstract'' the annual value of the domestic product has 
     remained constant at about $35 billion. It is also no secret 
     that the U.S. tobacco manufactures have been moving 
     production facilities overseas. All of this occurred long 
     before any ``Tobacco settlement'' was ever negotiated or 
     anticipated. It is the direct result of the same corporate 
     strategy that we have witnessed in industry after industry; 
     from machine tools and electrical equipment to textiles and 
     semi-conductors. In their effort to maximize profits American 
     corporations have closed manufacturing facilities in the U.S. 
     and moved to countries with the lowest wages and least labor 
     protections.

                   Employment in the Tobacco Industry

       In its effort to enact federal legislation to immunize 
     itself from effective legal action, the tobacco industry has 
     engaged in an attempt to economically ``blackmail'' the 
     workers employed in the tobacco industry. The industry has 
     argued that unless the tobacco deal, with immunity, is 
     enacted that it will be forced to shut-down its operations in 
     the United States and move production overseas.
       The fact of the matter is that over the last 18 years, the 
     industry has dramatically reduced employment by 40% and 
     intends to continue this trend in the future.
       The tobacco industry employment figures reproduced below 
     are from the ``Statistical Abstract of the United States 
     1997'', the ultimate source of which is the industry itself.
All Employees--all products:
    1980.........................................................69,000
    1990.........................................................49,000
    1996.........................................................41,000
    2005-(proj.).................................................26,000
Production Employees--all products:
    1980.........................................................54,000
    1990.........................................................36,000
    1996.........................................................31,000
All Employees--cigarettes:
    1980.........................................................46,000
    1990.........................................................35,000
    1996.........................................................28,000
Production Employees--cigarettes:
    1980.........................................................35,000
    1990.........................................................26,000
    1996.........................................................21,000

Notes:
1. These figures were prepared long before the announced ``Tobacco 
Settlement''.
2. Less than half of all tobacco production workers are represented by 
labor unions.
3. The Union sponsored labor-management health & welfare funds which 
have brought suit against the tobacco companies represent 30 million 
union workers, retirees and their families.

Source: Statistical Abstract of the United States, 1997, p. 416 & p. 
425.

  Mr. LAUTENBERG. Mr. President, I want to speak in strong support of 
the HEALTHY Kids Act, which was introduced by Senator Conrad. Senator 
Conrad chaired our tobacco task force, on which I served as vice 
chairman, and I thought, as did most on our side, that he did an 
incredibly thorough job in researching the issues and hearing from the 
various affected parties.
  Mr. President, this bill today reflects the consensus of our task 
force. It is the vision of the Senate Democrats and has cosponsors from 
all sectors of the Democratic Party. Although some of us differ on 
certain specific points, all of us who are cosponsoring this 
legislation agree that this bill contains the right approach to 
tackling the devastating health problems that come from smoking 
cigarettes.
  At the heart of this proposal is a per pack price increase of $1.50. 
This price increase will be phased in over three years and then indexed 
to inflation to maintain a deterrent effect on youth smoking.
  I am particularly pleased, Mr. President, with this aspect of the 
HEALTHY Kids Act because it was adopted from a bill I introduced last 
year, the Public Health and Education Resource Act, which is S. 1343.
  I believe now--as I did then--that if we are serious about reducing 
teen smoking, we have to increase the price swiftly and dramatically. 
It seems to have the most deterrent effect of all measures on youth 
because when the price goes up that far they cannot afford to pick up 
the habit, for which we are grateful.

[[Page S745]]

  This bill also includes much of the bill that Senator Kennedy 
sponsored, and that I had the opportunity to support as a cosponsor, 
again representing the views of several of our Members to be included 
in this consensus package.
  The focus of any tobacco legislation must be on improving the health 
of future generations of Americans, and this bill accomplishes that 
very clearly. In addition to funding various programs that will reduce 
teen smoking and benefit the well-being of children, it provides 
unfettered FDA jurisdiction. As the President has stated many times, 
full FDA power over these deadly products is essential.
  Mr. President, as Ranking Member of the Budget Committee I am also 
pleased that this bill is consistent with the President's budget 
proposal. Both approaches recognize that comprehensive tobacco 
legislation requires a strong investment in America's children. Our 
approach keeps children away from this addictive product, improves 
their health, provides adequate child care and gives them a learning 
environment that fosters health and knowledge and progress.
  That is a real investment in our children, and that is the focus of 
the Healthy Kids Act.
  Mr. President, I often hear that we in Congress cannot pass any 
legislation that the tobacco industry does not first agree to support. 
They speak as if Big Tobacco has some sort of veto right over 
legislation affecting their industry.
  I must tell you. I fail to find in the Constitution of the United 
States--or in any of the Senate rules--any provision that gives them 
the right to veto legislation. The Congress not only has a right--but a 
duty--to rein in on an industry that has been out of control targeting 
our children for addiction and lying about the dangerous nature of 
their products.
  Mr. President, there has also been a great deal of talk about 
providing special protection against liability to this industry. First 
of all, one must question why in the world this industry, which has 
engaged in more corporate misconduct than any other, deserves 
unprecedented special protection from civil liability.
  Secondly, this industry continues to this day to hide from the public 
critical information about tobacco's effect on our health. Congress 
shouldn't even consider limited civil liability protections until we 
have full and absolute disclosure from the companies. It is time for 
them to stop hiding behind false claims of privilege and come clean 
with the American people.
  Mr. President, this bill, the Healthy Kids Act, presents Congress 
with a historic opportunity. I welcome, very sincerely, my friends from 
the other side of the aisle to cosponsor this bill, to work with us, as 
I know that they want to, to question perhaps the methodology or 
process. But I hope that won't stand in the way. We both want to save 
children's lives. We want to invest in their future. It has to be a 
bipartisan goal. I expect that many of our friends on the Republican 
side will join us at some point.
  Mr. President, as can be expected in any omnibus legislation, some 
Senators will disagree on specific provisions of the bill. In fact, I 
have some reservations about certain provisions of this act, such as 
the secondhand smoke restrictions, which I believe could be tougher. 
But I ask all of my colleagues to keep their eye on the big picture--
reducing tobacco's seductive grip on our kids.
  Their target--it is very clearly understood--is to get 3,000 kids a 
day to start smoking because they know once you start it is hell to try 
and stop. And we don't want to permit them to get a grip on our 
children, on their lives, on their health, or on their habits.
  So, Mr. President, I hope that we will be working together in a 
bipartisan way. We will make this happen if we can possibly do so. And 
I invite all of our colleagues to join us.
  I yield the floor.
  Mr. BINGAMAN. Mr. President, it is with great pleasure that I rise 
today to join Senator Conrad and my other colleagues in introducing the 
HEALTHY Kids Act. I want to commend Senator Conrad, and his staff, for 
their excellent work in formulating this legislation. I firmly believe 
that this legislation represents the opportunity to prevent nicotine 
addiction in children and youth.
  The Congress has the truly historic opportunity this year to enact 
comprehensive legislation that will reduce access to and consumption of 
tobacco by our youth. Over the past few months, I have been part of the 
task force that helped consider the numerous issues involved in 
developing a comprehensive approach to address the public health issues 
that surround youth and tobacco. The HEALTHY Kids Act gives us a 
blueprint for reducing the terrible destruction that tobacco products 
have caused.
  The Senate has a compelling interest to address the various issues 
raised by the tobacco settlement. The Office on Smoking and Health at 
the Centers for Disease Control and Prevention has determined that 
cigarettes kill more Americans that AIDS, alcohol, car accidents, 
murders, suicides, drugs, and fires combined.
  Additionally, As the smoke screen erected by the tobacco companies 
begins to clear through numerous court proceedings, we now know what we 
have suspected all along: The targeting of our children has been a well 
planned, well orchestrated, and well financed conspiracy by these 
companies.
  We have all seen the statistics. The Institute of Medicine finds that 
despite the market decline in adult smoking and the social disapproval 
of smoking, an estimated 3,000 young people become regular smokers 
every day. In my home state of New Mexico, roughly 33% of our youth in 
grades 9 through 12, smoke. Indeed, Mr. President, nationally, the 
prevalence of smoking by youth, has remained basically unchanged since 
1980. If current tobacco use patterns in this nation persist, five 
million children currently alive today will die prematurely from a 
smoking related disease.
  It is worth noting that lung cancer remains the leading cause of 
cancer death in the United States. All cancers caused by cigarette 
smoking can be prevented. Instead, according to CDC and Robert Wood 
Johnson, 170,000 Americans will lose their lives to tobacco related 
cancer this year. Preventing and reducing cigarette smoking are key to 
reducing illness and death. We must act now.
  There will be myriad reasons put forth as to why we cannot or should 
not enact this legislation. There will be some who will say that 
Congress should not act at all. We have the opportunity and the 
obligation to enact legislation that will address the public health 
problems caused by tobacco products. The HEALTHY Kids Act gives us the 
chance to begin reversing the damage that has been done. It provides 
the vehicle for leadership that will be necessary to save our children. 
I hope that we will move, and move quickly without any more excuses, to 
enact this legislation.
  Mr. KERREY. Mr. President, I am proud today to join with several of 
my colleagues in support of S. 1638, ``The Healthy Kids Act'', the 
tobacco bill crafted by Senator Conrad and the Democratic Tobacco Task 
Force.
  As you have heard many of our colleagues say, 3000 kids start smoking 
every day. One third of those will prematurely die from a tobacco-
related disease. In Nebraska alone, 38 out of 100 high school kids 
currently smoke cigarettes and over 35,000 kids currently under the age 
of 18 will die prematurely from tobacco-related diseases.
  This is simply unacceptable. And the job has fallen upon Congress to 
do something about it. Last summer, my colleagues and I were faced with 
the daunting task of putting together comprehensive tobacco 
legislation. Led by my very dedicated colleague Senator Conrad from 
North Dakota, the Democratic Tobacco Task Force worked hard for nearly 
eight months to draft a bill that put our children's health first. This 
is exactly what The HEALTHY Kids Act does.
  This bill puts the law on the side of our kids. Sometimes we pass 
laws and are unsure of their impact. This time we can be certain: If we 
pass this law it will save children's lives. Period.
  Experts say that the way to get kids to quit smoking is to raise 
prices on cigarettes. The HEALTHY Kids Act does this.
  This bill is projected to collect $78 billion in total revenue over 
the next five years. Among other things, this money will help improve 
our children's

[[Page S746]]

health care, child care, and education; fund important medical 
research; take care of the farmers that were left out of the settlement 
negotiations; and some money will even go towards reducing the deficit 
and saving social security--which could perhaps be the greatest gift we 
could ever think about giving our children.
  Mr. President, I close by saying that I look forward to working with 
Mr. Conrad and others on passing this important legislation that 
correctly puts our children first.
                                 ______