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.
State Regulatory
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
Posted in Significant Cases, State Regulatory
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
Posted in State Regulatory
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
Posted in State Regulatory
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
Posted in State Regulatory
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
Posted in Significant Cases, State Regulatory
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
Posted in Significant Cases, State Regulatory
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.
FDA Eyes Regulation of Hookah Tobacco
Posted in FDA, State Regulatory
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.
Troutman Sanders Tobacco Practice Publishes Article on Pennsylvania’s Ongoing MSA Payment Battle in Smokeshop Magazine
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.