April 26, 2000

U.S. Senate
Washington, DC 20510

Dear Senator:

In the coming weeks, it appears likely that a provision will be added to either the Supplemental Appropriations measure or another appropriations vehicle which would block the Department of Justice’s lawsuit against big tobacco. This provision would repeal Section 109 of the FY95 Commerce-Justice-State appropriations bill that is being used to support the tobacco lawsuit.

The suit alleges that tobacco companies have conspired since the 1950s to defraud the American public. For decades now, tobacco companies have misled Americans regarding the risks and harmful effects of smoking, while hundreds of thousands have died each year from tobacco-related illness. Today, the tobacco industry spends more than $5 billion annually to market and promote its deadly products.

Section 109 states that "in litigation involving unusually high costs, the Department of Justice may receive and retain reimbursement for salaries and expenses, for fiscal year 1995 and thereafter, from any other governmental component being represented in the litigation." DOJ has indicated that it intends to use authority under Section 109 to help fund the tobacco lawsuit in FY 2000 and 2001, and that it would seek funds from HHS, DOD and Veteran's affairs - all agencies for which DOJ is seeking to recover health care costs.

The Department of Justice has indicated that repealing Section 109 will prevent it from proceeding with the lawsuit. To block the lawsuit in this manner would constitute protection of special interests from the reach of government litigators and interference with DOJ's execution of existing federal laws. Special protections are inappropriate and unwarranted.

Previously, DOJ has explicit authority to pursue under Section 109 and received reimburse-ments from client agencies of over $300 million. These funds have been used to litigate cases with over $36 billion in federal funds at stake.

DOJ has a statutory duty to pursue claims against responsible third parties to recover Federal health care expenses. The Medical Recovery Act provides specific authorization for this type of suit. DOJ has not sought any additional statutory authority to sue the tobacco industry. American taxpayers deserve to have their government hold the industry accountable, and by so doing, recover the billions of tax dollars spent in Medicare and other federal health programs on tobacco-related disease.

Sincerely,

ENACT Coalition