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Court Stops Illegal Diversion of State's Tobacco Tax Fund.


SACRAMENTO, Calif.--(BUSINESS WIRE)--Jan. 19, 1995--Today, Sacramento Superior Court Judge Roger K. Warren ordered the State of California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W).  to immediately stop the illegal expenditure of tobacco tax monies.

The order will take effect on Monday, Jan. 23, 1995, when the judge signs his written order.

At issue are $128 million contained in AB 816 (Isenberg, D-Sacramento) and determined by the court to be illegal diversions from the Proposition 99 Health Education and Research Accounts.

The American Cancer Society American Cancer Society,
n.pr established in 1913, this national volunteer-based health organization is committed to the elimination of cancer through prevention and treatment and to diminishing cancer suffering through advocacy, scholarship, research,
 and American Lung Association The American Lung Association (ALA) is a non-profit organization that "fights lung disease in all its forms, with special emphasis on asthma, tobacco control and environmental health".  filed a lawsuit lawsuit: see procedure; tort.  on Sept. 6, 1994 to halt the illegal raid of these funds from the nation's most successful tobacco education program and from valuable scientific research.

On Dec. 22, 1994, the court concluded that all nine appropriations contested in the suit violate Proposition 99. At today's hearing, the court said it will issue a writ instructing the State Controller to cease spending on all items.

"This decision is a landmark victory for the American Lung Association, the American Cancer Society and the people of California," said Spencer Koerner, M.D., Chairman of the American Lung Association Board of Directors.

"We are excited that the funds can now be returned to California's historic tobacco control program, and we can get back to the vital work of preventing young people from starting to smoke, and funding programs which will result in the prevention and treatment of tobacco-related diseases."

The court's decision will restore about $90 to $100 million to anti-tobacco education programs and tobacco-related research efforts.

Evidence showed that restoring diverted di·vert  
v. di·vert·ed, di·vert·ing, di·verts

v.tr.
1. To turn aside from a course or direction: Traffic was diverted around the scene of the accident.

2.
 funds to the Health Education Account will save the state at least $28 million per year by preventing an additional 1,300 cases of heart attacks, strokes, low birthweight babies, coronary bypass surgeries Coronary bypass surgery
A surgical procedure which places a shunt to allow blood to travel from the aorta to a branch of the coronary artery at a point past an obstruction.

Mentioned in: Cardiac Catheterization, Thallium Heart Scan
 and other diseases and treatments. Full funding will also enable the state to reach its goal of a 75 percent reduction in smoking by 1999.

The decision today will require the Legislature to reappropriate these illegally diverted funds as ordered by the court.

"We pledge to take the court's decision directly to the halls of the Capitol Capitol, seat of the U.S. Congress
Capitol, seat of the U.S. government at Washington, D.C. It is the city's dominating monument, built on an elevated site that was chosen by George Washington in consultation with Major Pierre L'Enfant.
 and work with the Legislature to ensure that the Proposition 99 Health Education and Research programs are made whole again, once and for all," said Robert Gengler, Esq., Chair of the Board of the American Cancer Society, California Division.

Ever since the passage of Proposition 99, legislative attempts to illegally divert di·vert  
v. di·vert·ed, di·vert·ing, di·verts

v.tr.
1. To turn aside from a course or direction: Traffic was diverted around the scene of the accident.

2.
 Health Education funds have continued. Those efforts dovetailed with the tobacco industry's desire to kill the state's anti-tobacco programs.

"In no uncertain terms, the court has now said that the Legislature and the Administration must abide by the expressed provisions of an initiative, as enacted by the voters," said George Waters of Olson, Hagel, Fong, Leidigh, Waters and Fishburn of Sacramento, attorney for the American Cancer Society and American Lung Association. "This decision is a vindication VINDICATION, civil law. The claim made to property by the owner of it. 1 Bell's Com. 281, 5th ed. See Revendication.  of the initiative process."

"It was crystal clear to us that these diversions were illegal," said Waters. Since 1991, the Legislature's own attorneys have been advising against the illegal appropriations.

In five years, California's anti-smoking program has reduced smoking by 28 percent, a rate two to three times faster than the national average. This translates into one million fewer smokers. According to according to
prep.
1. As stated or indicated by; on the authority of: according to historians.

2. In keeping with: according to instructions.

3.
 a recent evaluation by UCSD UCSD University of California, San Diego (La Jolla, California)
UCSD User Centered System Design
UCSD Urbana-Champaign Sanitary District (Illinois)
UCSD Ultra Cool Sexy Dudes
, since 1989 the program has saved the California economy an estimated $1 billion per year, including $211 million a year in direct state health care costs.

The American Lung Association/American Cancer Society lawsuit was consolidated with a similar lawsuit filed by Americans for Nonsmokers' Rights.

Proposition 99 was passed in 1988 by a vote of 58 percent to 42 percent. It raised the state's tobacco tax by 25 cents per pack and specified how the new funds will be used, with five percent set aside for tobacco-related research and twenty percent for tobacco education programs.

CONTACT: American Cancer Society

Paul Knepprath, 916/442-4446

Sharen Muraoka, 916/448-0500
COPYRIGHT 1995 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1995, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:Jan 19, 1995
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