IMF H.B. 119 75(R)BILL ANALYSIS STATE AFFAIRS H.B. 119 By: Hirschi 4-19-97 Committee Report (Substituted) BACKGROUND Tobacco industries hold that most cigarette ingredients are approved by the United States Food and Drug Administration and regarded as safe for human consumption. Tobacco critics, however, argue that food criteria are not stringent enough for products that are inhaled into the lungs. Although a 1984 federal law requires tobacco firms to disclose their product additives to the United States Department of Health and Human Services, those lists are generally kept private due to federal and state laws regarding trade secret protections. The Massachusetts State Legislature passed the nation's first disclosure law last year, forcing tobacco companies to break down and reveal additives in their products. This bill was passed with the support of Governor William Weld. The top tobacco companies have suggested pulling their brands from the Massachusetts market until the disclosure policy is reviewed in a court of law. The lawsuit went to a federal court in Boston last December. Pulling the top tobacco products out of the Massachusetts market may cost the state up to $340 million a year in lost revenues. PURPOSE This bill mandates that all manufacturers file an annual report with the Texas Department of Health, revealing the types of ingredients in their tobacco-related products. This bill also requires manufacturers to assign nicotine yield ratings to their tobacco products. This information will be available to the public unless it is determined to be confidential. RULEMAKING AUTHORITY It is the committee's opinion that this bill expressly grants rulemaking authority in SECTION 1 to the Texas Department of Health to set standards for the nicotine yield ratings (Sec. 161.253, Health and Safety Code) and establish a time line for filing annual reports (Sec. 161.252 (c), Health and Safety Code). SECTION BY SECTION ANALYSIS SECTION 1. Amends Health and Safety Code Chapter 161 by adding Subchapter N: Disclosure of Ingredients in Cigarettes and Tobacco Products, Sections 161.251-161.255. Sec. 161.251 defines "Cigarette", "Manufacturer", and "Tobacco Product" Sec. 161.252 Sets guidelines for information that must be stated by manufacturers filing annual reports with the Department of Health for tobacco products. This information must include: (1) the identity of each ingredient in the tobacco product; and (2) the nicotine yield rating for the product. Section 161.253 empowers the Department of Health to set nicotine yield rating standards, and requires manufacturers to assign a nicotine yield rating in accordance with these standards. Section 161.254 makes the information included in the annual reports open to the public pending a decision by the Attorney General concerning property rights. Information will remain confidential if the Department determines that there is no reasonable scientific basis for concluding that the availability of the information could reduce the risks to public health. Section 161.255 allows a district court to prohibit the sale and distribution of tobacco products in this state and/or grant any other injunctive relief when an annual report is not filed. Requires the Attorney General to file suit for injunctive relief in Travis County under this section at the request of the the Department of Health. SECTION 2. States that manufacturers are not required to file reports prior to January 1, 1998. SECTION 3. Emergency clause. Effective date: upon passage. COMPARISON OF ORIGINAL TO SUBSTITUTE Sec. 161.252(a), changes "and" to "or" to require filing of reports for tobacco products either manufactured or distributed in Texas. The original language only required filing for products that were both manufactured and distributed in Texas.