On April 16, we reported on a bill pending in the Nebraska legislature dealing with, among other things, nonparticipating manufacturers’ escrow obligations and tribal sales.
Legislation
Proposed Legislation Weakens FDA’s Ability to Regulate Cigarettes
Recently, Rep. Denny Rehberg (R-Montana) proposed an amendment to the 2012 agriculture appropriations bill that would, among other things, curb FDA’s authority to regulate tobacco products by limiting the factors FDA can consider in regulating these products.
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.
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:
New Mexico Governor Vetoes Nonparticipating Manufacturer Escrow Bill
On April 5, 2011, New Mexico Governor Susana Martinez vetoed a bill that would have imposed additional escrow requirements on nonparticipating manufacturers to the Master Settlement Agreement.
PACT Act Reporting Requirements
The PACT Act, passed by Congress last year, is recognized by many in the tobacco industry as imposing new requirements for Internet sales, including generally prohibiting the use of the U.S. mail to deliver cigarettes and smokeless tobacco and imposing new age-verification requirements to stop remote sales to minors.
New Model NPM Legislation Moving Through Arkansas Legislature
Arkansas Attorney General Dustin McDaniel, who is co-chair of the National Association of Attorneys General Tobacco Committee, is supporting legislation in that state that would impose significant new requirements for nonparticipating manufacturers to the Master Settlement Agreement. We understand that the legislation may be used as a model in other states.