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Newly elected Attorney General Dan Rayfield reported on December 2 a Contribution of $20,000 from Philip Morris International Global Services.
It’s not Rayfield’s first check from a Philip Morris subsidiary: He got $2,500 in 2022 and again in 2023 from Altria Client Services, another Philip Morris company, and $2,000 from Philip Morris International in his race this year against Republican Will Lathrop.
But those smaller checks came before Rayfield, 45, won the Nov. 5 election to become the state’s chief legal officer. In that role, he will oversee the state’s litigation strategy, including whether to charge certain companies that state officials believe are harming Oregonians. In the past, many states, including Oregon, have of course sued Philip Morris (now Altria) and other tobacco companies over their false advertising and the harm tobacco has caused.
Tobacco companies will pay out more than $180 billion over the life of the settlements with various states. Oregon took an aggressive stance in the lawsuit and has so far rreceived $1.89 billion from the settlements since 1998. More recently Oregon led national lawsuits against vaping company JUUL Labs, resulting in a $438 million settlement.
Philip Morris International this year began the U.S. rollout of a product called IQOS, which heats tobacco to release nicotine, rather than burning it. (The company has been selling IQOS abroad for several years.) In at least two states, Mississippi and Nevada, according to the publication Tobacco Insider, the company has lobbied to have the new product taxed at a lower rate than cigarettes, for which it could serve as a substitute.
Recordings show that Philip Morris International hired lobbyists in Oregon last year to represent the company in “matters involving heated tobacco products” and has since spent $121,126 on that lobbying work.
Oregon has been aggressive in taxing tobacco products. In fact, the only tax increase highlighted in the budget Governor Tina Kotek released this week is a $10.9 million tax increase on “synthetic tobacco.” That’s a small number in the context of the state’s general budget, but it would represent a more than 20% increase in revenue from the “taxes on other tobacco products” category.
Oregon Health Authority spokesman Jonathan Modie says the increase comes from “the revenue expected if synthetic nicotine products are classified as tobacco products and taxed in the same manner as traditional nicotine products, as proposed in the upcoming legislative session.”
It is unclear what the legal or tax treatment in Oregon will be for heated tobacco, although Modie says “our understanding is that heat-not-burn products, such as IQOS, are made from tobacco and therefore would be subject to existing laws on tobacco products in Oregon.”
Meanwhile, a coalition of anti-smoking groups is hoping to drive IQOS out of Oregon before it gains a foothold by including it in a proposed statewide ban on flavored tobacco products that lawmakers will consider next year.
“These products still derive their nicotine from tobacco leaves, which means they would still fall within the definitions of ‘nicotine inhalant delivery devices’ in Oregon for regulatory purposes, and would fall under the proposed restriction on flavored tobacco products if the Flavors Hook Oregon The Children’s Coalition will be successful by 2025,” said Jamie Dunphy, spokesperson for the American Cancer Society Action Network.
There’s another reason why Rayfield’s check from Philip Morris International is notable: Since entering Parliament in 2015, Rayfield has been one of the loudest voices for campaign finance reform. “Democratic reforms like ranked choice voting and campaign finance reform have been lifelong priorities for me personally and the big reason I got into politics,” Rayfield said on X on August 28.
For decades, Oregon was one of the few states that did not impose limits on campaign contributions. The former Speaker of the House of Representatives was a big part of the reason lawmakers finally passed limits earlier this year, though those limits won’t go into effect until 2027. A big part of the pressure: reducing the influence of corporate money.
Rayfield’s spokeswoman, Hazel Tylinski, said Philip Morris International’s contribution would not affect Rayfield’s work as attorney general.
“Attorney General Rayfield firmly believes that campaign contributions are for campaign expenses and should not interfere with the official work of any elected official,” Tylinski said. “AG-Elect Rayfield has served for ten years and has demonstrated his independence in all areas, from supporting and speaking out for increased tobacco taxes to democracy reforms such as campaign finance reform. This will continue to be his approach as Oregon’s next attorney general.”
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