State Regulatory

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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.

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.

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:

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.