mr. speaker , i thank the gentleman from michigan for yielding , and i thank him for his leadership on this most critical of all consumer issues before congress this year . 
so you have all heard now the technical arguments made by the bush administration proponents here on the house floor . 
so you have heard the bush administration argument on why this is good . 
now , you want to hear what the bill is really about ? 
do you want to hear what the bush administration is really interested in ? 
well , here it is , ladies and gentlemen . 
citigroup 's smith barney subdivision : `` tobacco . 
flash -- senate just passed class action bill -- positive for tobacco. '' let me read it to you : `` the senate just passed a bill , 72-26. '' this has gone out from smith barney to all their investors . 
`` this bill is designated to funnel class action suits with plaintiffs in different states out of state courts and into the federal court system , which is typically much less sympathetic to such litigation . 
`` the practical effect of the change could be that many cases will never be heard given how overburdened federal judges are , which might help limit the number of cases. '' smith barney advised its clients that this bill will be positive in general for the tobacco industry and that tobacco stocks have rallied on this favorable news given that this bill could have a positive impact on tobacco litigation . 
that is what it is all about , ladies and gentlemen . 
you heard the technical defense of it for the last half hour . 
the impact is they are trying to protect the tobacco industry from being sued . 
so if you are out there , one of your family members has just found that they have a spot on their lung , they have smoked for the last 20 or 30 years , what this bill will do is it will make it more difficult for you and the other people in your states who also have found that they have spots on their lungs to get together to sue the tobacco companies . 
if your children are beginning to smoke , they are 13 , 14 , 15 , this bill is intended to make it more difficult for the people in the state of new hampshire , or kansas , or oklahoma to bring a suit to stop it . 
that is what it is all about . 
smith barney gives the good news to the tobacco industry investors , not to smokers . 
and so what they have done is this . 
it is brilliant in the bush administration and that is what this side of the aisle is all about . 
the fda , is it going to move in to regulate tobacco ? 
no , they made sure they appoint people who will not do it . 
the epa , are they going to move in to make sure that the oil industry does not pollute your groundwater so that the children in your neighborhood do not contract leukemia ; that breast cancers do not rise ? 
no . 
are they going to have a department of labor which protects you against asbestos in the workplace ? 
no . 
you are not going to see those suits , ladies and gentlemen . 
so it comes to you and your families to go to court . 
and what this bill is intended to do is to not let you go to court . 
so it is perfect . 
if you are an asbestos company , your stocks are going up . 
if you are a tobacco company , your stocks are going up . 
if you are an oil company , a chemical company , your stocks are going up . 
smith barney gives you the good news , mr. and mrs. investor of america . 
but if you are afraid for the health of your family , if you know that the groundwater in new hampshire has been poisoned by amerada hess and 22 other oil companies that are not in new hampshire , you know what the republicans say ? 
you know what the bush administration says ? 
the case should not be held in new hampshire . 
if amerada hess , the big oil company , is a defendant , the case should be outside of new hampshire , not protecting the person whose family 's health has been injured . 
and so that is what it is all about . 
it is the final payback to the tobacco industry , to the asbestos industry , to the oil industry , to the chemical industry at the expense of ordinary families who need to be able to go to court to protect their loved ones when their health has been compromised . 
and these people are saying , your state is not smart enough , your jurors are not smart enough to understand how the mtbe ruined the groundwater in their state and poisoned thousands of people , that it has to go to a state where amerada hess or some large oil company feels comfortable , because they are not headquartered in new hampshire , they do not have a large plant in new hampshire . 
all they did was sell the material which poisoned your neighborhood . 
that is what it is all about , ladies and gentlemen . 
you just watch across the board every single interest that harms the health and well-being of america skyrocket as soon as we take the vote on final passage of this bill today because president bush is going to sign this bill with great joy because the oil , the chemical and polluting industries are going to be happy . 
industry note : tobacco -- senate just passed class action bill -- positive for tobacco the senate just passed a bill 72-26 which is designed to funnel class-action suits with plaintiffs in different states out of state courts and into the federal court system , which is typically much less sympathetic to such litigation . 
the practical effect of the change could be that many cases will never be heard given how overburdened federal judges are , which might help limit the number of cases . 
although this news is positive in general for the tobacco industry , we do not necessarily believe that class actions pose a big threat to the industry . 
furthermore , this type of legislation would have been a bigger help to the industry if it was passed 10 years ago . 
the bill now moves to the house floor and the chances are high that it passes since the house republican leadership said last week that it would pass the senate 's version of this legislation as long as there were no amendments . 
the senate just passed a bill that is designed to funnel class-action lawsuits with plaintiffs in different states out of state courts and into the federal court system , which is historically much less sympathetic to such litigation . 
the practical effect of the change could be that many cases will never be heard , which might also be positive for tobacco companies . 
federal judges , facing overburdened dockets and ambiguities about applying state laws in a federal court , often refuse to grant standing to class-action plaintiffs . 
therefore , tobacco stocks have rallied on this favorable news given that this bill could have a positive impact on potential future tobacco litigation . 
now the bill should move to the house floor and apparently the house republican leadership announced last week that the gop majority in that chamber will pass the senate 's version of class-action litigation provided it arrives without amendments and from what we hear , this is in fact what has happened in the senate . 
obviously president bush has been a big proponent of this type of legislation so we would assume that he would sign it as part of a broader fight that he hopes will lead to limits on awards in asbestos cases and to caps on pain-and-suffering awards in medical malpractice cases . 
although positive in general terms for the tobacco companies , clearly this type of legislation would have been much more useful if it were passed 10 years ago . 
i , bonnie herzog , hereby certify that all of the views expressed in this research report accurately reflect my personal views about any and all of the subject issuer ( s } or securities . 
i also certify that no part of my compensation was , is , or will be directly or indirectly related to the specific recommendation ( s ) or view ( s ) in this report . 
analysts ' compensation is determined based upon activities and services intended to benefit the investor clients of citigroup global markets inc . 
and its affiliates ( `` the firm '' ) . 
like all firm employees , analysts receive compensation that is impacted by overall firm profitability , which includes revenues from , among other business units , the private client division , institutional equities , and investment banking . 
guide to fundamental research investment ratings : smith barney 's stock recommendations include a risk rating and an investment rating . 
risk ratings , which take into account both price volatility and fundamental criteria , are : low [ l ] , medium [ m ] , high [ h ] , and speculative [ s ] . 
investment ratings are a function of smith barney 's expectation of total return ( forecast price appreciation and dividend yield within the next 12 months ) and risk rating . 
for securities in developed markets ( us , uk , europe , japan , and australia/new zealand ) , investment ratings are : buy [ 1 ] ( expected total return of 10 % or more for low-risk stocks , 15 % or more for medium-risk stocks , 20 % or more for high-risk stocks , and 35 % or more for speculative stocks ) ; hold [ 2 ] ( 0 % -10 % for low-risk stocks , 0 % -15 % for medium-risk stocks , 0 % -20 % for high-risk stocks , and 0 % -35 % for speculative stocks ) ; and sell [ 3 ] ( negative total return ) . 
for securities in emerging markets ( asia pacific , emerging europe/middle east/africa , and latin america ) , investment ratings are : buy [ 1 ] ( expected total return of 15 % or more for low-risk stocks , 20 % or more for medium-risk stocks , 30 % or more for high-risk stocks , and 40 % or more for speculative stocks ) ; hold [ 2 ] ( 5 % -15 % for low-risk stocks , 10 % -20 % for medium-risk stocks , 15 % -30 % for high-risk stocks , and 20 % -40 % for speculative stocks ) ; and sell [ 3 ] ( 5 % or less for low-risk stocks , 10 % or less for medium-risk stocks , 15 % or less for high-risk stocks , and 20 % or less for speculative stocks ) . 
investment ratings are determined by the ranges described above at the time of initiation of coverage , a change in risk rating , or a change in target price . 
at other times , the expected total returns may fall outside of these ranges because of price movement and/or volatility . 
such interim deviations from specified ranges will be permitted but will become subject to review by research management . 
your decision to buy or sell a security should be based upon your personal investment objectives and should be made only after evaluating the stock 's expected performance and risk . 
for securities recommended in this report in which the firm is not a market maker , the firm usually provides bids and offers and may act as principal in connection with such transactions . 
the firm is a regular issuer of traded financial instruments linked to securities that may have been recommended in this report . 
the firm regularly trades in , and may , at any time , hold a trading position ( long or short ) in , the shares of the subject company ( ies } discussed in this report . 
the firm may engage in securities transactions in a manner inconsistent with this research report and , with respect to securities covered by this report , will buy or sell from customers on a principal basis . 
securities recommended , offered , or sold by the firm : ( i ) are not insured by the federal deposit insurance corporation ; ( ii ) are not deposits or other obligations of any insured depository institution ( including citibank ) ; and ( iii ) are subject to investment risks , including the possible loss of the principal amount invested . 
although information has been obtained from and is based upon sources that the firm believes to be reliable , we do not guarantee its accuracy and it may be incomplete and condensed . 
note , however , that the firm has taken all reasonable steps to determine the accuracy and completeness of the disclosures made in the important disclosures section of this report . 
all opinions , projections and estimates constitute the judgment of the author as of the date of the report and are subject to change without notice . 
prices and availability of financial instruments also are subject to change without notice . 
if this is a fundamental research report , it is the intention investing in non-u.s. securities , including adrs , may entail certain risks . 
the securities of non-u.s. issuers may not be registered with , nor be subject to the reporting requirements of the u.s. securities and exchange commission . 
there may be limited information available on foreign securities . 
foreign companies are generally not subject to uniform audit and reporting standards , practices and requirements comparable to those in the u.s. securities of some foreign companies may be less liquid and their prices more volatile than securities of comparable u.s. companies . 
in addition , exchange rate movements may have an adverse effect on the value of an investment in a foreign stock and its corresponding dividend payment for u.s. investors . 
net dividends to adr investors are estimated , using withholding tax rates conventions , deemed the uk 's financial services authority rules require that a firm must establish , implement and make available a policy for managing conflicts of interest arising as a result of publication or distribution of investment research . 
the policy applicable to citigroup 's equity research products can be found at www.citigroupgeo.com . 
this report may have been distributed simultaneously , in multiple formats , to the firm 's worldwide institutional and retail customers . 
if this report is being made available via the smith barney private client group in the united kingdom and amsterdam , please note that this report is distributed in the uk by citigroup global markets ltd. , a firm 