Bryan Haynes of the Troutman Pepper Tobacco Team was quoted in a recent Vapor Voice article on a proposed new nicotine tax that has been proposed in Congress.

Currently proposed as part of the so-called “Build Back Better” legislation, the bill would impose a new federal excise tax on “taxable nicotine.”  The bill would primarily impact the vaping industry and its consumers by taxing nicotine used in e-liquids on par with cigarettes and at higher rates than other tobacco products, such as cigars and pipe tobacco.  A prior version of the bill would have also raised federal excise tax rates for all tobacco products, but that proposal seems to have been abandoned, at least for now. Continue Reading Troutman Pepper Tobacco Team Quoted in Vapor Voice Article on Proposed Nicotine Tax

On November 16, North Carolina Attorney General Josh Stein launched a probe into e-cigarette maker Puff Bar and others, citing concerns of youth-appealing flavors, youth marketing, and poor age verification. In a statement, Stein announced, “We are actively investigating Puff Bar and other companies at all stages of the distribution chain, from manufacturers to retailers and everything in between to ensure they are not profiting off kids.” Continue Reading North Carolina AG Opens Investigation Into E-Cigarette Maker Puff Bar

The Troutman Pepper Tobacco Team will participate in TMA 2021:  From Chance to Change on November 16-17, 2021.  The conference is virtual.

As the tobacco and e-vapor industries have been challenged in many ways this year, TMA gathers stakeholders virtually to share insights and navigate the changes that lie ahead.  TMA’s sessions will cover the key issues affecting the industry now and moving forward.

Panelists will include the FDA Center for Tobacco Products Director Mitch Zeller and Director of the Office of Science Dr. Matt Holman.  Sessions will address FDA premarket applications and regulatory and marketplace trends.

Bryan Haynes, a partner in the Troutman Pepper Tobacco Team, will present a tobacco and e-vapor regulatory update and participate in a panel discussion at the CSP EduNetworking Tobacco/OTP + CBD Forum in Miami, Florida on November 17 and 19, 2021.

Bryan will discuss the current state of affairs in tobacco e-vapor laws and regulations, as well as emerging trends and predictions for the future.  Bryan’s presentation will focus on FDA enforcement of premarket review requirements for “deemed” tobacco products, the 2021 amendments to the PACT Act, pending legislation affecting the industry, ongoing battles regarding graphic health warnings and “corrective statements” for tobacco retailers, and future FDA tobacco regulations.

We look forward to seeing our clients and friends at the conference.

More than a year and a half ago, in March 2020, the U.S. Food and Drug Administration (FDA) issued its final rule on a graphic-warning requirement for cigarettes. The rule—initially slated to take effect June 18, 2021—would require 11 new textual, health warning statements accompanied by color, “photorealistic” images displayed on the top 50% of the front and rear panels of cigarette packs and top 20% of cigarette ads. The rule’s effective date, however, has been extended multiple times by court order and is currently set for October 11, 2022. So when might tobacco manufacturers need to start producing new cigarette packs and ads? Continue Reading When Might FDA’s Graphic Warning Rule for Cigarettes Take Effect?

As of October 20, 2021, the final rule of the U.S. Postal Service (the “USPS”) regarding the treatment of electronic nicotine delivery systems (“ENDS”) in the mail is available for public inspection via the link here.  The final rule generally prohibits the mailing of ENDS, subject to certain exceptions, as of the date of its publication in the Federal Register, which we understand will be tomorrow, October 21, 2020.  We also expect that as of October 21st, USPS will publish accompanying implementation materials on its websites.   Continue Reading U.S. Postal Service Sets Rule Prohibiting the Mailing of ENDS Products

Governor Gavin Newsome recently signed California Assembly Bill 45 (AB 45) into law, which, among other things, allows hemp-derived cannabidiol (CBD) to be included in any food, beverages, and dietary supplements sold in California. This is not only a break from California’s prior position prohibiting CBD from being included in such products even as the State began to tax and regulate its cannabis industry, but it is also in stark contrast with the U.S. Food and Drug Administration’s (FDA’s) current position on the issue. Continue Reading California Passes CBD Law That Conflicts With FDA Guidance

The Troutman Pepper Tobacco Team will participate in the Food and Drug Law Institute’s Tobacco and Nicotine Products Regulation and Policy Conference.  The event is virtual and will be held October 27–29, 2021.

Join a diverse group of stakeholders – public health advocates, researchers, manufacturers, lawyers, consumer interest groups, entrepreneurs, governmental agencies, and others – for this three-day conference on effectively regulating the broad spectrum of tobacco and nicotine products in the US. Attendees will hear directly from FDA Center for Tobacco Products Director Mitch Zeller. The conference will also include numerous discussions of timely tobacco and nicotine product issues and feature interactive dialogues between the panelists and audience.

Troutman Partner Agustin Rodriguez will be moderating a panel on Technological Solutions to Preventing Youth Marketing and Access on Friday, October 29th,  at 1:00pm EST. 

We look forward to seeing our clients and friends virtually!

On October 5, 2021, the Food and Drug Administration (“FDA”) published in the Federal Register its Final Rule on the content and format of reports intended to demonstrate the substantial equivalence of a tobacco product (“SE Reports”). The rule originally was displayed in January in the Federal Register, but was quickly retracted by the Biden Administration and did not publish. Continue Reading FDA (Re)Issues Final Rule on Substantial Equivalence

It is widely known that trafficking in controlled substances is a crime under federal law. Traffickers and would-be traffickers be warned, however, that if you do choose to make income from trafficking in Schedule I or II controlled substances (including cannabis, cocaine, or psychedelic mushrooms), that income is fully taxable by the U.S. government. And, if you have employees helping you produce and sell federal Schedule I or II controlled substances (as many state-legal cannabis businesses do), you owe federal employment taxes as well. Continue Reading IRS Launches Cannabis-Industry Focused Compliance Initiative