UPDATE 1-US House panel approves FDA tobacco oversight

* House subcommittee passes bill in 39-13 vote

* Bill gives FDA power to oversee tobacco cos.

* FDA to regulate advertising, ingredients, inspections

* Measure moves to full House for consideration
(Adds company comment paragraph 10)

By Susan Heavey

WASHINGTON, March 4 (Reuters) - The U.S. Food and Drug
Administration would gain new power to regulate cigarettes and
other tobacco products under legislation passed by a U.S. House
of Representatives panel on Wednesday.

The proposal, which passed 39 to 13 but must still win
approval by the full House and Senate, would authorize the FDA
to oversee the controversial, multibillion-dollar tobacco
industry, including its advertisements and product designs. The
FDA already oversees drugs, devices, most foods, cosmetics and
animal drugs.

"Regulating tobacco is the single most important thing that
we can do right now to curb the deadly toll of tobacco," said
House Energy and Commerce Committee Chairman Rep. Henry Waxman,
who introduced the bill. A similar measure by the California
Democrat passed the House last year but stalled in the Senate.

Giving the federal government authority over tobacco
products would help curb smoking, which can cause a number of
expensive and preventable health problems such as cancer, heart
disease and other lung disorders, Democrats said.

The bill calls for a separate FDA center funded by user fees
from tobacco companies to monitor ingredients, inspect
manufacturing facilities, and oversee marketing. It does not
allow FDA oversight of tobacco farmers.

Critics have expressed concern about the FDA's ability to
handle an entirely new industry given recent problems with
contaminated peanuts and other foods. Last year, a widely used
blood thinner was recalled over tainted ingredients from China.

"The FDA is the wrong agency at the wrong time to give this
type of responsibility," said Texas Rep. Joe Barton, the
committee's ranking Republican. Barton and other Republicans
also said the measure could give the false impression that
cigarettes are safe.

Industry reaction has been mixed, with the nation's largest
cigarette maker, Altria Group Inc's (MO.N) Philip Morris unit,
voicing support. Some smaller companies also back it, but others
such as Reynolds American Inc's (RAI.N) R.J. Reynolds Tobacco
unit say it would burden manufacturers, who would have to
register with the FDA and keep various records.

Other makers include Vector Group Ltd's (VGR.N) Liggett
Group Inc, Lorillard Inc's (LO.N) Lorillard Tobacco Company,
British American Tobacco Ltd (BATS.L), and Brown & Williamson.

After the vote Altria called the bill "tough but
reasonable." Lorillard said it was "disappointed, although not
surprised" at the bill's passage.

Advocacy groups, including the American Lung Association and
the Campaign for Tobacco-Free Kids, support the bill.

"Until Congress grants the FDA authority over tobacco
products, the tobacco companies will continue their harmful
practices that addict children and make it difficult for smokers
to quit," the two groups said in a joint statement along with
the American Cancer Society Cancer Action Network and the
American Heart Association.

Federal oversight would save $75 billion in healthcare costs
by curbing smoking among youth, the legislation said.

The American Medical Association physicians' group backs FDA
tobacco oversight, but Joel Nitzkin of the American Association
of Public Health Physicians' tobacco task force said the bill
does not do enough to prevent deaths or smoking.

Even if the full House passes the measure, it must still win
Senate support before being considered by President Barack
Obama, who has openly admitted his difficulties in quitting his
smoking habit. Representatives for the White House have not said
whether Obama would sign the legislation if passed.
(Reporting by Susan Heavey, editing by Matthew Lewis)