A Quick Update

Food & Drug Administration (FDA) Proposed Legislation--Oversight and Regulation of Tobacco Products
Bill Approved in U.S. House Subcommittee

March 20, 2008- House Resolution (HR) 1108, the Family Smoking Prevention and Tobacco Control Act, proposed legislation that would grant the FDA certain authority to regulate tobacco products passed the U.S. House of Representatives' Energy and Commerce-Subcommittee on Health.

The House full Energy and Commerce Committee will try to take this up in April and the House perhaps before Memorial Day.

Several things could cause delay but the House leadership wants to move this. In the Senate, given the schedule, Sen. Burr probably has the ability to block it given the tight schedule for floor time. However, if RJR decides to throw in the towel then Burr might let it go. In addition, Sen. Kennedy is occupied with the campaign and may not want to devote the time to try to move it. The cynical view is why would the Democrats want to go now when the industry is funding their campaign? And there is always the possibility that the anti's will want to wait until next year and get an even more punitive bill. UST's jumping on board the house bill didn't help.

It is important to note that though the legislation would grant the FDA authority of tobacco products, only cigarettes, smokeless tobacco, and roll-your-own (RYO) tobacco would be immediately subject to regulation. Cigars and pipe tobacco could only be included for regulation if the FDA proposes to do so through an administrative rulemaking process. To date, we do not expect that to come to fruition.