The state of New York has begun enforcing its new regime for taxing cigarettes sold on Native American reservations. The regime, enacted last summer but stalled by numerous court challenges, generally requires New York-licensed distributors to sell only tax-paid cigarettes to reservation retailers, with certain exemptions for sales to tribe members.
State Regulatory
States Begin to Change Laws in Reaction to E-Cigarettes
Posted in Legislation, State Regulatory
Effective July 1, 2011, it is a criminal offense to sell electronic cigarettes (“e-cigarettes”) to minors in the State of Colorado. Colorado Governor John Hickenlooper signed the law in March, which is codified at Colorado Revised Statutes, section 18-13-121. The new law characterizes e-cigarettes as a “tobacco product.” A person who violates the new law commits a class 2 petty offense, which may be punishable by a fine of two hundred dollars. The new law also provides that municipalities may impose more stringent requirements than provided in this section of the Colorado Criminal Code.
State Law, or Federal Law—Which controls? Dumb Question? Maybe not!
As reported in the Boston Globe, the City of Worcester seems to be among one of the first localities to take advantage of powers provided by the federal 2009 Family Smoking Prevention and Tobacco Control Act. That Act allows not only states but also localities to impose “specific bans or restrictions on the time, place and manner” of cigarette advertising. The Worcester City Council, taking advantage of such provisions enacted a local ordinance banning any tobacco brand advertising visible from streets, parks and schools. The initiative for the City Council action was a mounting campaign by teenagers who had statics regarding not only the health effect of smoking but also how outdoor advertising was concentrated in low-income communities, especially in communities of color.
Seeing Through the Smoke: State and Local Government Regulation of E-Cigarettes
Posted in FDA, State Regulatory
On April 25, FDA announced that it will regulate smokeless electronic cigarettes (“e-cigarettes”) as tobacco products and not as drug-delivery devices, which are subject to more stringent regulation. FDA said it will propose rule changes to treat e-cigarettes the same as cigarettes and other tobacco products. While FDA regulation is coming into focus, uncertain issues involve how state and local governments will regulate e-cigarettes. It is critical that e-cigarette manufacturers and vendors gain an awareness of this rapidly changing regulatory landscape.
Nevada Nonparticipating Manufacturer Legislation
Posted in Legislation, State Regulatory
The Nevada legislature recently enacted a law addressing nonparticipating manufacturers’ escrow requirements.
Model Nonparticipating Manufacturer Legislation Passes in Nebraska
Posted in Legislation, State Regulatory
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.
Nebraska Legislature Considers Expansive Tobacco Enforcement Measure
Posted in Legislation, State Regulatory
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
Posted in Legislation, State Regulatory
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.
Kentucky Tobacco Farmers File Class Action Lawsuit Against a Leading Tobacco Merchant
Posted in Significant Cases, State Regulatory
On March 22, four Kentucky tobacco farmers filed a state class action lawsuit against Universal Leaf North America, a subsidiary of Universal Corporation, the world’s leading leaf tobacco merchant and processor.
PACT Act Reporting Requirements
Posted in Legislation, State Regulatory
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.