Tobacco Firm Pays $125,000 Election Fine

SACRAMENTO — Philip Morris tobacco company paid a $125,000 penalty Tuesday for underreporting contributions to a campaign against a 1988 tobacco tax initiative, the fifth-largest fine ever levied by the California Fair Political Practices Commission.

Ben Davidian, chairman of the election watchdog agency, said Philip Morris underestimated its late non-monetary contributions to the No on Proposition 99 campaign by $1.8 million.

The tobacco company provided $2.5 million to the anti-tax campaign in the form of phone banks, mailers and other services in the last two weeks before the November, 1988, election. But the company initially reported only $700,000.

Davidian said he believes the violation was unintentional.

Philip Morris and a tobacco industry-financed opposition campaign committee both identified the error themselves and voluntarily reported it, but not until after the election.