On February 26, 2013, the United States Court of Appeals for the Second Circuit affirmed the Southern District of New York’s ruling upholding a New York City local ordinance that prohibits the sale of flavored tobacco products, including smokeless tobacco, anywhere in the city other than at existing “tobacco bars.” As we reported in a December 15, 2011 blog post, Plaintiffs U.S. Smokeless Tobacco Manufacturing Company, LLC and U.S. Smokeless Tobacco Brands Inc. sued the City of New York, challenging a city ordinance on grounds that the ordinance is preempted by the federal Family Smoking Prevention and Tobacco Control Act (“Tobacco Control Act”). The District Court awarded summary judgment in favor of the City and dismissed the lawsuit.
State Regulatory
Public Health Lobby Fuming Over Super Bowl Ad for E-Cigarettes
Officials with the American Lung Association and American Cancer Society are complaining about an advertisement aired during the Super Bowl for electronic cigarettes.
Minnesota Bills Would Tax Little Cigars as Cigarettes
Companion bills recently introduced in the Minnesota legislature would tax little cigars at the same rates as cigarettes.
Mississippi Bill Would Nearly Double NPM Fee
A bill has been introduced in Mississippi that would nearly double the fee applicable to non-signatories to the state’s tobacco settlement agreement.
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.