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Monday, August 14, 2006

Proposition 86 Opponents Launch First Wave of Advertising

Proposition 86 Opponents Launch First Wave of Advertising

TV Ads Seek to Expose Initiative's Biggest Funders, Biggest Beneficiaries

SACRAMENTO, Calif., Aug. 14 /PRNewswire/ -- The No on Proposition 86 campaign today unveiled two television commercials educating voters about the truth of the measure. The 30-second ads will air statewide.

One of the new ads points to language in Prop. 86 that exempts hospitals from antitrust laws that are designed to protect consumers from anti- competitive practices. This language allows hospital corporations to engage in price fixing, denial of services and other activities that put the public at risk and that are otherwise illegal. The provision hospitals wrote into Prop. 86 excuses hospitals from criminal and civil liability and applies to the provision of emergency care and "specialty medical" services.

The other ad highlights the fact that only 15 percent of the tax revenues raised by Prop. 86 goes to tobacco related programs and addresses the lack of fairness to the 14 percent of Californians who would be burdened with the 300 percent tax increase.

Frank Schubert, campaign manager for Californians Against Unaccountable Taxes, No on Prop. 86, stated, "These ads are meant to introduce voters to what is actually contained in Prop. 86. Contrary to the contention of proponents that it is an anti-smoking measure, the reality is that Prop. 86 is a special interest measure sponsored by big hospital corporations that will generate hundreds of millions of dollars for these hospitals."

Campaign finance reports filed with the Secretary of State reveal that hospital corporations have funneled more than $7 million into the Yes on Prop. 86 campaign committee. Despite the millions spent to date by hospitals to pass Prop. 86, noticeably absent from the proponents' ballot and rebuttal arguments and their campaign press releases are references to hospitals, the biggest beneficiaries of this measure.

"It's not surprising that the hospitals are bankrolling this campaign, as they would be the single greatest beneficiary if this initiative were to pass, getting 40 percent of the taxes raised, or $800 million annually," said Carla Hass, spokesperson for Californians Against Unaccountable Taxes.

Added Hass, "We're pulling back the curtain on the hospitals' tactics to make voters fully aware that 85 percent of the two billion dollars purportedly raised by this initiative would go to programs completely unrelated to tobacco use."

No on Proposition 86, Californians Against Unaccountable Taxes, a coalition of taxpayers, businesses and law enforcement with major funding provided by R. J. Reynolds Tobacco Company, Inc. and the Cigar Association of America.

Source: Californians Against Unaccountable Taxes

CONTACT: Carla Hass of Californians Against Unaccountable Taxes,
+1-916-554-3425

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