On December 23, 2015, the Pennsylvania Supreme Court denied several tobacco companies’ petition for appeal of a Commonwealth Court ruling that Pennsylvania is entitled to reinstatement of more than $125 million in funds under the 1998 Master Settlement Agreement (MSA) with the tobacco industry.
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Much attention has been given to the impact of the FDA’s proposed deeming regulations on the e-cigarette and cigar industries.  But the deeming regulations almost certainly will give the FDA the authority to regulate much more — any product that is made or derived from tobacco and intended for human consumption.  This includes tobacco used in a waterpipe (known as a hookah).  The tobacco, known as shisha (which is usually flavored), is vaporized through the hookah pipe.
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An article by the Troutman Sanders Tobacco practice appears in the February issue of Smokeshop Magazine. The article, titled “Pennsylvania’s Legal Battle Over MSA Payments Keeps Twisting” discusses the ongoing battle between Pennsylvania and major tobacco manufacturers regarding disputed 2003 Master Settlement Agreement (“MSA”) escrow payments.

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Two bills recently introduced in the New York State Assembly would regulate vapor products.

One bill, A 635, would ban the sale of e-liquid refill bottles.  Another bill, A 296, would tax vapor product cartridges at 75% of the wholesale price.  The products would therefore need to be sold through licensed tobacco distributors.

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