A bill has been introduced in Mississippi that would nearly double the fee applicable to non-signatories to the state’s tobacco settlement agreement.
State Regulatory
Allocable Share Bill Again Introduced in Missouri
Missouri, the last remaining state in which nonparticipating manufacturers can obtain allocable share releases from their escrow payments, has again introduced legislation to repeal the release mechanism. The bill, Senate Bill 629, was introduced earlier this month.
Tobacco Companies Appeal Unsuccessful Challenge to Local Ordinances
Several tobacco companies have recently appealed a federal trial court’s decision to uphold two local ordinances that ban certain promotional discounts and severely restrict flavored tobacco products.
Idaho Supreme Court Considers Tribal Tobacco Dispute
A case currently pending before the Idaho Supreme Court could establish new precedent regarding a State’s authority to regulate tribal tobacco sales.
Tobacco Companies and States Announce MSA “Diligent Enforcement” Settlement
On December 18th, 17 states and the manufacturer-signatories to the Master Settlement Agreement announced a settlement of the manufacturers’ claims that the states failed to satisfy their obligations to “diligently enforce” non-signatories’ escrow requirements.
Credit Card Issuers Scrutinizing Internet Sales of Cigars
Word on the street is that one or more of the major credit card issuers are scrutinizing transactions in which their cards are used for remote sales of cigars and other tobacco products.
New Mexico Attorney General Attempts to Redefine Cigars as Cigarettes
In a recent “Notice to Cigarette Distributors Selling in New Mexico,” the New Mexico Attorney General announced that “effective immediately” all distributors must stop selling any product marked as a “small” or “little” cigar unless the product listed is in the state cigarette directory. Since no little cigars are currently listed in the Attorney General’s directory, the notice is an immediate, de facto ban on the product. The notice also purports to require that all little cigars must bear state excise stamps in the same manner as cigarettes.
Missouri Tobacco Initiative Defeated
In the recent election, Missouri voters narrowly defeated (by a margin of 50.8% to 49.2%) a ballot initiative that would have raised state excise taxes on all tobacco products, would have regulated cigarette rolling machines and would have increased the amount of money that nonparticipating manufacturers are required to place into escrow accounts.
Massachusetts Bill Would Ban Tobacco Products
The Massachusetts legislature is considering a bill (House Bill 1512) that would ban all tobacco products in the state.
Manufacturers and Retailers Challenge Haverstraw, New York’s Ordinance Banning Displays of Tobacco Products and Pricing Information in Retail Outlets
On June 26, 2012, the New York Association of Convenience Stores and major tobacco manufacturers, including Phillip Morris, R.J. Reynolds and Lorillard, filed suit against the Village of Haverstraw, New York in federal district court regarding the Village’s recent ordinance banning the display of tobacco products and pricing information in retail outlets.