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.