Source: CNNMoney

Author: Patrick Yoest


WASHINGTON -(Dow Jones)- The U.S. Senate took a step forward Tuesday toward debate of a bill that would give the Food and Drug Administration authority to regulate tobacco, as senators showed strong support for the measure in a procedural vote.

The Senate voted 84-11 to limit debate on whether to consider the tobacco bill. Sen. Richard Burr, R-N.C., an outspoken opponent of the bill, is expected to pull out the stops by forcing numerous procedural votes on the bill.

The bill, introduced by Sen. Edward Kennedy, D-Mass., would give the FDA limited authority to monitor smoking products. It would impose strict controls on advertising that restrict ads to black and white, and stop the use of terms ” mild” and “low tar.” A similar bill passed the House in April.

The Senate is unlikely to debate amendments to the bill until later this week. Burr said Tuesday he wants to introduce an alternative to the bill that would create a new agency within the Health and Human Services Department to regulate tobacco.

Burr said he hopes to stretch debate into next week on the tobacco regulation measure.

Tobacco producers have a large presence in North Carolina, Burr’s home state. Reynolds American Inc.(RAI) and Lorillard Inc. (LO), two leading tobacco companies, are based in North Carolina.

Sen. Kay Hagan, D-N.C., is also opposed to the tobacco regulation legislation in the Senate.

But Altria Group, Inc. (MO), the parent company of tobacco producer Philip Morris USA, announced its support in March for the House bill allowing FDA regulation of tobacco. That company is based in Richmond, Va.

“We’ve supported the idea of federal regulation of tobacco products for many years now,” said William Phelps, an Altria spokesman.

Phelps said the company still has reservations about the Senate bill, because it would force tobacco companies to put larger health warnings on packs of cigarettes. The House bill gives the FDA power to modify warning labels, but after a review and public comment period.

“We think that that approach gives the FDA the ability to decide the best way, based on scientifically driven information, to communicate health warnings to consumers,” Phelps said.

Smaller tobacco producers, such as Reynolds and Lorillard, have suggested FDA regulation of tobacco would allow Altria to exploit its advantages and solidify its current market share.

-By Patrick Yoest, Dow Jones Newswires; 202-862-3554; patrick.yoest@ dowjones.com

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  06-02-09 1158ET
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