On September 2, 2016, California’s Office of Environmental Health Hazard Assessment (OEHHA) finalized its rule amending Article 6 of the regulations implementing Proposition 65 (i.e., California’s Safe Drinking Water and Toxic Environment Act of 1986). As a result of the new regulation, tobacco and electronic cigarette manufacturers may be required to update their Proposition 65 warnings.
State Regulatory
Lawsuits Being Filed Against the FDA Regarding Deeming Regulations
In May through July several groups have filed lawsuits against the US Food and Drug Administration alleging that the deeming regulations that expand the regulation by FDA of additional tobacco products violate the law.
Currently there are eight lawsuits pending, of which 5 pertain to the vapor industry. Two of these five have been consolidated because they address similar claims.
Expanded Washington Laws Regulating Vapor Products Take Effect
Washington is the latest state to impose enhanced regulatory requirements upon retailers and distributors of vapor cigarettes, as well as upon the consumer use of these products. New legislation concerning “vapor products” in Washington took effect on June 28, 2016.
Deeming Regulations: Important Deadlines in 2016
The FDA’s proposed deeming regulations extend the FDA’s regulatory authority to additional tobacco products including e-cigarettes, e-liquids, cigars, hookah tobacco, pipe tobacco and dissolvables, referred to as “covered tobacco products.” The FDA currently regulates cigarette tobacco, roll-your own, cigarettes, and smokeless tobacco.
Texas Supreme Court Upholds Tax on Non-Settling Tobacco Companies
On April 1, 2016, the Texas Supreme Court ruled that the state could impose a special tax on cigarette manufacturers that were not part of a multibillion-dollar settlement agreement reached with the major tobacco companies in the late 1990s.
Hawaii Seeks to Impose Excise Tax on Electronic Smoking Devices & E-liquids
The Hawaii Senate has passed a bill that would tax e-liquids and “electronic smoking devices.” The bill now awaits further action in the Hawaii House of Representatives.
Vermont Introduces Bill to Impose Excise Tax on E-Cigarettes
A bill introduced March 25, 2016 in the Vermont legislature proposes to impose an excise tax on e-cigarettes by redefining “other tobacco products” to include any product manufactured from, derived from, or containing tobacco that is intended for human consumption, including electronic cigarettes that have not been approved by the…
Georgia Proposes Major Changes to Tobacco Escrow Statute
The Georgia House and Senate have both approved a new law that would change nonparticipating manufacturers’ (non-signatories to the 1998 tobacco Master Settlement Agreement) responsibilities for making escrow payments for cigarette sales in the state. The bill awaits the Governor’s signature.
Judge Rules that Vaping is Not Smoking
On February 5, 2016, a New York City Judge ruled that vaping is not the same as smoking under New York State law and that e-cigarette use is not necessarily banned in the same places as smoking.
Tobacco Companies to Pay $125 Million Reinstatement of Escrow Funds to Pennsylvania
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.