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CBO released a cost estimate yesterday for H.R. 1256, the Family Smoking and Tobacco Control Act. This bill would authorize the Food and Drug Administration (FDA) to regulate discount cigarettes products and require the agency to assess fees on manufacturers and importers of tobacco products to cover the cost of these new regulatory activities.
The effect of these activities on the use of tobacco products is uncertain, in part because ongoing initiatives to reduce the use of tobacco products are expected to continue under current law. In particular, public health efforts by federal, state, and local governments and by private entities have contributed to a substantial reduction in underage smoking cigarettes in recent years. For example, the recent increase in the federal excise tax on cigarettes, from $0.39 to $1.01 per pack, as a result of the Children’s Health Insurance Program Reauthorization Act is likely to contribute to a continuing decline in smoking cigarettes.
H.R. 1256 would affect the use of tobacco products through a combination of regulatory and economic factors. The regulatory changes with the largest potential to reduce smoking cigarettes include: restricting access to tobacco by youths, requiring an increase in the size of warning labels on certain tobacco packaging (and authorizing the Secretary of HHS to mandate further changes to enhance warning labels), limiting certain marketing and advertising activities (especially those that target youths), and requiring FDA’s permission before manufacturers can market tobacco products that suggest reduced health risks or exposure to particular substances. In addition, tobacco consumption would decline because the assessment of new fees on manufacturers and importers of tobacco products would probably result in higher prices for tobacco products. CBO expects that consumption of tobacco products in the United States would further decline as a result of enacting H. R. 1256. By 2019, CBO projects a decline of 11 percent among underage tobacco users and about 2 percent among adult users, as a result of this legislation.
CBO anticipates that FDA’s regulation of tobacco products would lead to a decline in smoking cigarettes among pregnant women, which would slightly decrease federal spending for Medicaid. A decline in smoking cigarettes could affect health care spending for many other medical conditions, and CBO continues to examine the impact of smoking cigarettes-related legislation on public and private payers. Counterintuitively, a reduction in smoking cigarettes might add to the government’s costs in many cases by enabling some people to live longer and to incur health care costs over longer periods. In those cases, government spending for Social Security, Medicare, and other retirement and mandatory spending programs, would increase.
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Officials at the University of Memphis have decided to push for a tobacco-free campus by next summer.The move was spurred by a student government petition last year and similar actions by faculty and staff leaders. Maria Alam, who is chief human resources officer for the university, told The Commercial Appeal that she is "reviewing and putting together a policy" for the campus."The idea is not to go around policing," she said. "But we'd address it as complaints come in."In her position with the university, Alam oversees workplace regulations, including smoking...
The role of the online cigarettes grower cooperatives that formerly administered the cigarettes store price support program has changed drastically since 2004.It had to: the price support program was ended after that season, and the cooperatives had to find new services to offer to their members.Perhaps the most drastic changes among the cooperatives has been made by the Burley Stabilization Corporation (BSC), which served Tennessee, North Carolina and Virginia. In 2010, it moved its headquarters 200 miles to get closer to its primary production area, and it has implemented an aggressive...
After a lengthy period of consideration, Minnesota State University will become a tobacco-free campus on Jan. 1.MSU, however, won’t be the first institution in the Minnesota State Colleges and Universities system to enact the cheap cigarettes ban.In 2010, the MnSCU Board of Trustees passed a resolution encouraging campuses to adopt such a policy. Shortly after, South Central College became one of the first to do so and has been followed by a number of others, including Winona State and Minnesota State-Moorhead.“This is a movement that’s been endorsed by MnSCU,” said Rick Straka,...
In most parts of the state, Californians appear to be kicking the cigarettes habit.Last year, 11.9% of Californians said they smoked, down one percentage point from 2009. California has the second-lowest smoking cigarettes rate in the country, according to recent reports from the California Department of Public Health and CDC. Utah, where 9.1% of residents are smokers, has the lowest rate.Another recent report paints a picture of a different kind of cheap cigarettes habit in Sacramento. The report -- "Tobacco Money in California Politics" by the American Lung Association in California --...
When apartment tenants light up a cigarette, it's not just their smoking cigarettes-averse neighbors who suffer. Landlords are also sucking it up — in increased cleaning costs. But by implementing complete smoke-free rules throughout their properties, owners of California multi-unit rental buildings could save up to $18 million a year statewide on the cost of cleaning apartments vacated by tenants who smoke, according to a new UCLA study. These policies can also protect their other tenants from the secondhand smoke cigarettes that seeps between units.The study was published online Aug....