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Ahead Of The Bell: Senate Considers Tobacco Bill

The Associated Press

NEW YORK (AP) — The Senate is expected on Wednesday to resume consideration of and possibly vote on a bill which would give the Food and Drug Administration authority to regulate tobacco products.

A major obstacle to passage was cleared away Tuesday when the Senate rejected the main challenge to the legislation, a competing bill from the two senators from North Carolina, the nation's biggest tobacco producer. The alternative was proposed by Republican Richard Burr and Democrat Kay Hagan.

The base bill, sponsored by Sen. Edward Kennedy, D-Mass., would give the FDA authority to regulate the production, sale and marketing of tobacco products to protect the public health.

Such a bill has been in the works for at least a decade and went through several iterations. The House passed a very similar bill earlier this year and President Barack Obama, who is struggling with his own smoking habit, supports it.

The nation's biggest cigarette maker, Virginia-based Philip Morris USA, has long supported the bill.

Its smaller competitors oppose it, arguing that its increased regulation would restrict the introduction of new products and solidify Philip Morris USA's No. 1 position. Philip Morris USA is owned by Altria Group Inc.

No. 2 R.J. Reynolds Tobacco Company and No. 3 Lorillard Tobacco Company, both based in North Carolina, are against it. RJR is owned by Reynolds American Inc.