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24TOBACCOOUTLETBUSINESSMAYJUNE2009FDARegulationUpdateCongressconsiderstobaccoregulationoptions.InpastyearsCongresshasconsideredlegislationthatwouldgranttheU.S.FoodandDrugAdministrationFDAbroadpowerstoregulatethemanufacturedistributionandretailofcigarettesandsmokelesstobaccoproducts.HoweverthisyearwillbedifferentbecausethereisnotjustonebillpendinginCongressthatwouldregulatetobaccoproductsbuttwo.Rep.HenryWaxmanD-Calif.istheauthorofHouseBillH.R.1256togranttheFDAbroadpowerstoregulatetobaccomanufacturersdistributorsandretailers.HoweverRep.SteveBuyerR-Ind.andRep.MikeMcIntyreD-N.C.haveintroducedHouseBillH.R.1261whichwhilestillregulatingtobaccoproductsdoesnotincludemanyoftherestrictiveretailandwholesaleregulationscontainedinWaxmanx19sbill.WhileNATOhascontinuedtoopposetheregulationofretailtobaccosalesbythefederalgovernmenttheelectionofPresidentObamaandthelargerDemocraticmajoritiesintheU.S.SenateandtheU.S.HouseofRepresentativesincreasethelikelihoodthatsomekindoftobaccoregulationbillwillbepassedbyCongressthisyear.Forthisreasonitisimportanttounderstandthemajordifferencesbetweenthetwocompetingtobaccoregulationbills.WaxmanBillTheWaxmanbillgrantssweepingpowerstotheFDAtoimposeregulationsonthemanufacturedistributionandsaleoftobaccoproducts.UnderittheFDAcouldadoptanyregulationwhichtheagencywouldinitsdiscretiondeemnecessaryfortheprotectionofpublichealthbancoloradvertisinginstoresfortobaccoproductsandallowonlyblacklettersandblacknumbersonawhitebackgroundtolistthebrandnameandpricereducenicotinecontenttoaminimumlevelwhilereservingtoCongresstherighttoreducethenicotineleveltozeroresultinginasubstantialchangetotobaccoproductsasconsumersknowthemtodayextendthesesameregulationstocigarspipetobaccoandroll-your-owntobaccointhefutureallowstatestoimposesignicantnesonretailersthatmayinadvertentlyselltobaccotominorswhilenotholdingminorsaccountableandimposeauserfeeonmanufacturerstotalinganestimated7.6billionover10yearsresultinginhigherproductcosts.BuyermcintyreBillRatherthanregulatingthedistributionandsaleoftobaccoproductstheBuyerMcIntyrebillH.R.1261YouthPreventionandTobaccoHarmReductionActtakesamuchdifferentapproachtotobaccoregulationbycreatingaTobaccoHarmReductionCenterwithintheDepartmentofHealthandHumanServicesinplaceofgrantingregulatoryauthoritytotheFDAestablishingablue-ribbonpaneltoreviewandmakerecommendationstoCongressontobaccoadvertisingissuestakingintoaccountconstitutionalprotectionsonadvertisingrespondingtotobaccohealth-relatedissuesbyeducatingconsumersabouttherisksofdifferentkindsoftobaccoproductsrequiringthatstatesadoptlawsmakingitillegalforminorstopurchaseandpossesstobaccoproductsrequiringthatstatesspendaminimumof20percentoftheirannualMasterSettlementAgreementMSApaymentsonsmokingcessationandpreventionandfundingtheregulationthroughgeneralfederalrevenuesratherthanbyimposingauserfeeortax.HouseactionOnApril2theU.S.HouseofRepresentativesvoted298to112toapproveRep.HenryWaxmanx19sbill.HoweverpriortothevoteontheWaxmanbilltheHousevotedonH.R.1261thealternatebillsponsoredbyReps.SteveBuyerandMichaelMcIntyre.TheU.S.HousemembersdefeatedtheBuyerMcIntyrebillbyavoteof284to142.Ofthe142votesinfavoroftheBuyerMcIntyrebill124wereRepublicanHousemembersand18wereDemocraticHousemembers.TheWaxmanbillwillnowmovetotheU.S.SenatewhereSen.TedKennedyisalsoexpectedtoreintroducehisFDAregulatorybill.HoweveranalternativebillsimilartotheBuyerMcIntyremeasurehasalsobeenintroducedintheU.S.SenatebySen.RichardBurrR-N.C.andSen.KayHaganD-N.C..NATOwillcontinuetoactivelymonitorandlobbymembersofU.S.Senateonthesetobaccoregulatorybills.TOBTRADETALKByThomasBrianT