Author: Bill Tarling

“Gov. Jared Polis’ office was asked to meet several conditions insisted upon by Altria in exchange for the cigarette giant agreeing not to fight legislation that put a question on the November ballot asking voters to raise tobacco and nicotine taxes in Colorado. One of those conditions included adding a minimum-price clause to the measure that requires a pack of cigarettes to be sold for no less than $7 starting this year. The emails show Polis’ office was warned the provision could help Altria, which owns the Marlboro brand and is heavily invested in the vaping company JUUL Labs, dominate the cigarette market in Colorado by boxing out discount competitors. The legislation, House Bill 1427, passed with the minimum-price clause in the final days of Colorado’s 2020 legislative session. Voters then overwhelmingly approved the ballot question, Proposition EE, in the November election.

Nicotine products, including vaping devices and fuel, have not previously been taxed in Colorado. But now, under Proposition EE, they are taxed at 30% of their manufacturer’s list price. By July 2024, that would rise to 56% of the list price and to 62% in July 2027. While Proposition EE raises taxes on most tobacco and nicotine products in Colorado, it actually slashes them for so-called modified-risk tobacco products. Modified-risk tobacco products — or MRTPs — are determined by the Food and Drug Administration to have lower risks of certain health effects compared to smoking cigarettes. Only a limited number of products have achieved that designation, but a number of them are marketed by Altria. Altria sees those products, which are part its IQOS system, as its future. Vaping shops objected to the MRTP discount, saying they lack the resources to seek an MRTP designation for their merchandise from federal regulators and that Altria would be given another market advantage.”

ARTICLE LINK:

Emails show negotiations involving Colorado governor, cigarette giant that led to tobacco tax hike

“Smoking, vaping and all types of marijuana and tobacco products are now prohibited from all city parks and playgrounds. The ban, approved 6-1 by city commissioners in late October, went into effect Jan. 1. Those who violate the ban can be fined a $25 civil infraction or instead participate in a smoking cessation program. According to Grand Rapids officials, nearly 60 jurisdictions in Michigan have tobacco-free parks policies.”

ARTICLE LINK:  Vaping ban now in effect for all Grand Rapids parks

“ASSEMBLY BILL A332 – Prohibits the sale or provision of any quantity of electronic liquid used to refill an electronic cigarette or cartridge.”

“Convenience store e-cigarette sales have slumped over the past 10 months in the United States. Nielsen does not track vape shop sales. .Juul’s four-week dollar sales have dropped from a 50.2 percent increase in the Aug. 10, 2019, report to a 15.6 percent decline for the latest report. By comparison, Reynolds’ Vuse was up 87.3 percent in the latest report and NJoy down 31.5 percent. Juul’s market share dropped from 54.3 percent in the previous report to 53.8 percent. It was at 55.1 percent a year ago. Vuse’s market share slipped from 28.5 percent to 28.1 percent, while No. 3 NJoy was unchanged at 5 percent, and Fontem Ventures’ Blu was unchanged at 3.6 percent. Goldman Sachs analyst Bonnie Herzog observed increasing consumer demand for lower-priced traditional cigarettes during the pandemic”

ARTICLE LINK:  E-Cigarette Sales Slumping in U.S. Convenience Stores

“In the wake of the confusion and misinformation surrounding EVALI, the pandemic hit. Cities and counties began shutting the economy down, separating businesses into categories of “essential” and “non-essential.” In many places, vape shops were designated non-essential and forced to close, while gas stations, grocery stores and convenience stores — all of which sell cigarettes — were permitted to stay open. While our primary focus is the prevention of tobacco harm, we are also a group of small business owners trying to stay afloat in these uncertain times.”

ARTICLE LINK:  Misinformation, pandemic hard on vape shop owners

“Cigarettes, e-cigarettes, vapes and alcoholic drinks will again be more expensive as another round of excise tax hikes takes effect this year while the government eyes to jack up collections from these “sin” products amid a pandemic-induced decline. For e-cigarettes, RA No. 11467 signed by President Duterte last year will impose an excise tax of P27.50 for every pack of heated tobacco products in 2021, from P25 a pack in 2020. Also under RA 11467, the excise tax rate on conventional freebase vapor products will also rise to P50 per milliliter, from P45 per ml last year. For salt nicotine vapes, the rate will increase to P42 per ml from last year’s P37 per ml. Alcoholic drinks and e-cigarettes will also soon be affixed with internal revenue stamps. From January to September 2020, excise tax collections from tobacco, e-cigarettes and alcohol fell to P166.5 billion from P180 billion a year ago.”

ARTICLE LINK: ‘Sin’ products will become more expensive again today

“New rules limiting smoking and vaping in public spaces take effect Friday, Jan. 1 in Thurston County. The changes adopt the state laws around smoking in public spaces into Thurston County’s sanitary code and apply them to vaping. Starting 2021, smoking and vaping will be banned in indoor public spaces, places of employment and certain youth-oriented public spaces such as playgrounds and childcare centers. Additionally, the rule that prohibits smoking within 25 feet of indoor public places and places of work also will apply to vaping. The changes apply everywhere in Thurston County with the start of the new year, but there will be a six-month phase in period focused on education and outreach rather than enforcement actions, according to the release. Enforcement and legal proceeding may be initiated beginning July 1, 2021.”

ARTICLE LINK:  New rules limiting vaping and smoking take effect Jan. 1 in Thurston County

“The Food and Drug Administration (FDA) had one more surprise in store: The agency delivered notice to distilleries that had produced hand sanitizer in the early days of the pandemic that they now owe an unexpected fee to the government of more than $14,000. When the onset of the pandemic led to a massive increase in demand for hand sanitizer this spring, many distilleries stepped up to alleviate the sudden shortage. More than 800 distilleries pivoted from spirits to sanitizer, offering it for sale or in many cases donating it to their communities free of charge. Their prompt action helped ensure supplies of sanitizer when it was otherwise unobtainable.”

ARTICLE LINK:
When There Wasn’t Enough Hand Sanitizer, Distilleries Stepped Up. Now They’re Facing $14,060 FDA Fees.

“Agents from the Counter-Counterfeit Committee of Cambodia (CCCC) have impounded nearly five tonnes of e-cigarettes, shishas and other smoking equipment this year and are preparing to destroy them. The report listed confiscated equipment, including “46,352 smoking machines, 10 boxes of repair tools, 525 battery units, 15,831 bottles of vape oil and many other tools.” It added that e-cigarettes had been widely publicised on social media where they were disingenuously claimed to be a tool to quit smoking cigarettes. It warned that the number of e-cigarettes users was increasing and illicit sales of the products were widespread. “Shisha and e-cigarettes are a new type of drug that poses a risk to Cambodian youths in the present and the future. Young people could be affected to abandon their studies or work and cause other worrisome social problems,” it said.”

ARTICLE LINK: Five tonnes of seized vape products set to be destroyed

“Tobacco legislation and regulation is constantly under review at the local, state and federal levels. In this monthly roundup, Convenience Store News highlights the latest proposals and approved changes happening across the United States.”

ARTICLE LINK: December 2020 Legislative & Regulatory Roundup