FDA has asked tobacco companies to allow the agency to tour farms and factories that grow or process tobacco. Specifically, FDA would like to tour large and small cigarette factories, a smokeless tobacco plant, tobacco farms, a rolling-paper factory, and a tobacco warehouse.
Troutman Pepper Locke Tobacco Practice
FDA Will Regulate E-Cigarettes as Tobacco Products
On April 25, FDA announced that it will regulate smokeless electronic cigarettes as tobacco products and not as drug-delivery devices, which are subject to more stringent regulation.
E-Cigarettes Regulated as Tobacco Products
FDA announced yesterday that it will not appeal the December 2010 court decision that determined e-cigarettes will be regulated as a tobacco product rather than as a drug-delivery device.
Establishing Grandfathered Brands
Was your tobacco product commercially marketed in the United States as of February 15, 2007? If so, you will be required to provide evidence of this to FDA. You should take the time to protect and collect documents supporting grandfathered status for each brand.
FDA Allows Marketing of Modified Risk Tobacco Product
Star Scientific — manufacturer of the dissolvable tobacco products Ariva and Stonewall — has announced that it is poised to market these products as modified risk. To our knowledge, Star Scientific was the first company to submit an application to FDA to market its products as having a lower risk of heath ailments resulting from the use of tobacco.
FDA to Take Action on Cigars?
On March 28, 2011, Representative Henry Waxman, the architect of the Tobacco Control Act giving the FDA authority to regulate tobacco products, sent a letter to FDA Commissioner Margaret Hamburg suggesting that the FDA extend the ban on flavored cigarettes to flavored cigars that have purportedly been designed to “circumvent” the flavored cigarette prohibition.
General Tobacco Appeal Rejected by Arkansas Supreme Court
On March 31, 2011, the Arkansas Supreme Court rejected an appeal by General Tobacco regarding its payment obligations under the MSA.
Nonparticipating Manufacturer Legislation Pending in Florida and Texas
Bills are pending in both the Florida and Texas legislatures that would, respectively, impose a 52 cent per pack tax and a 43 cent per pack tax on cigarettes manufactured by companies that have not settled with these states.
Last Significant Challenge to Escrow Requirements Rejected
We reported last month that the United States Supreme Court was considering a challenge to New York’s escrow statute in the Freedom Holdings case. The Supreme Court recently refused to consider the challenge, thereby dismissing the last major challenge to the escrow statutes enacted under the MSA.
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Nebraska Legislature Considers Expansive Tobacco Enforcement Measure
A bill is currently pending before the Nebraska legislature that would impose significant new requirements for nonparticipating manufacturers to the MSA and relating to tribal sales. Legislative Bill 590, which was introduced on January 19, 2011 and reported from the legislature’s revenue committee (as amended) on April 7, 2011, also would impose stringent new requirements regarding the taxation and sale of tobacco products. The bill appears to be spearheaded by the Nebraska Attorney General, who is co-chair of the National Association of Attorneys General Tobacco Committee.
With respect to nonparticipating manufacturers, the Nebraska bill: