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Legislative Concerns 

Legislation To Grant FDA Regulatory Authority Over Tobacco Products Slows in Congress  Cigars and Pipe Tobacco Remain Excluded from Regulation   May 29, 2008--As we have previously advised you, legislation granting the Federal Food and Drug Administration (FDA) authority over tobacco products remains a lower priority for the IPCPR as it will not include cigars and pipe tobacco-only cigarettes, RYO tobacco, and smokeless tobacco.   Below is a summary from Norm Sharp, President of the Cigar Association of America (CAA), with input and prognostication from CAA and IPCPR federal lobbyists monitoring the situation:   Given the status of the current legislation and the limited time remaining in the congressional schedule this election year, we consider the chances of Congress enacting legislation granting the FDA authority over all tobacco products to be no greater than 40% in 2008.  Although bills have been reported by the House Energy & Commerce Committee and the Senate Committee on Health, Education, Labor & Pensions (HELP), further action has not yet been scheduled.  Indeed, because neither committee has yet filed its report, no one has seen copies of the legislation approved by those committees.  In addition, three committees in the House - Ways & Means, Natural Resources, and Appropriations -- have asked for jurisdiction over various aspects of the bill.  Once these issues have been resolved, and the committee reports filed, the measure will be sent to the House of Representatives for a vote.   Once the House passes the bill, it will go to the Senate.  That body will likely use the House measure as a starting point, rather than the Kennedy bill approved by the HELP committee.   As we have previously stated and discussed, cigarettes, RYO tobacco, and smokeless tobacco would be regulated immediately when FDA legislation is enacted; not cigars nor pipe tobacco.  Once the legislation is enacted, then the process of the FDA getting geared up to regulate-and the initial, exclusive focus on cigarettes, RYO tobacco and smokeless tobacco-are likely to occupy the agency for two or three years minimum.    We do not foresee cigars and pipe tobacco being added to the legislation as Sens. Kennedy and Waxman will strongly resist any revisions or changes made in the legislation because such changes may undercut the primary purpose of giving the FDA "full" jurisdiction over tobacco products.  Even though the current bill is poorly drafted, the limited changes made to it so far have been adopted in the face of considerable resistance.   Finally, there is another element which recently came into play which may change the timing on FDA legislation and the opportunity to make amendments-Senator Kennedy's current health issues. Eventually he will be forced to give up his chairmanship of the Senate Committee on Health, Education, Labor and Pensions.  His staff is already talking about moving his priority initiatives before that happens.  Also, passage of those initiatives could get a boost from those many people in Congress who want to recognize Sen. Kennedy's long years of service and pay tribute to his legislative achievements.  There would be no more fitting tribute than having him be alive to witness the passage of his legislative priorities into law.   When considering the aforementioned points and situation, the regulation of cigars and pipe tobacco may not come to fruition anytime in the foreseeable future. We will continue monitoring the situation.

International Premium Cigar & Pipe Retailers Association (IPCPR) Chris McCalla Legislative Director