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You Now Have To Be 21 Years Old To Buy Cigarettes In New York City

 | by  Brigitte Dusseau

New York raised the minimum age to buy cigarettes to 21 on Sunday, in its latest initiative to encourage healthier behavior among residents.

The law, signed November 19 shortly before former mayor Michael Bloomberg finished his third term, had a six-month waiting period before it came into effect — but its impact can already be clearly felt.

“Under 21, no tobacco,” warned a small sign at the entrance of a small shop that sells smokes, newspapers, candy, coffee and cakes, in the Nolita neighborhood (North of Little Italy).

No tobacco, either, for anyone who can’t present a valid ID proving their age. Shopkeeper scan IDs to test their authenticity before handing over the box of cigarettes.

The measure — unprecedented among America’s big cities — raises the legal age to buy cigarettes from 18. It also applies to other forms of tobacco and to e-cigarettes.

It’s the latest of New York’s efforts to reduce smoking in the city, which bans cigarettes and, as of April 29, e-cigarettes in restaurants and bars, in parks or squares, and at the city’s public beaches. Some private residential buildings have also banned smoking.

Cigarette taxes in the city are also the highest in the country: $5.85 a carton, which brings the overall price to around $12. In addition, the city has established a minimum price of $10.50 a box for cigarettes.

Nataleigh Kohn, 23, who works at a startup company, underwent her ID check with good grace.
“It is a good thing. People in high school can’t start smoking,” she said.
Thomas Wall, 24, a former smoker who works in architecture, agreed, though he said the measure probably wouldn’t eliminate teen smoking all together.
He compared the new age restriction to the ones around alcohol, which set the US drinking at at 21.
When underage people want alcoholic drinks, they often get them from older people who buy for them.
Shopkeeper Muhammad Arisur Khaman said he’s seen some complaints since the law was implemented, but not many. He just tells unhappy clients: “It’s the law.”
The higher minimum age is “a step in the right direction,” said Pat Bonadies, a teacher walking with a group of students in Union Square.
The 52-year-old said there has been a sea change in attitudes towards smoking.
“When I was younger, smoking was much more prevalent among teenagers and preteens in restaurants and social settings,” she said.
“Even my mother’s friends, they smoked during their pregnancies.”
The city has seen a sharp drop in adult smokers, from 21.5 percent in 2002 to 14.8 percent in 2011, according to official statistics.
But the smoking rate among young people has been steady since 2007, at 8.5 percent, which was part of the impetus for raising the minimum age.
Authorities hope that the new law will cut the smoking rate among 18 to 20 years by more than half.
New York hopes to inspire other cities to pass similar age restrictions.
http://www.huffingtonpost.com/2014/05/18/new-york-city-cigarettes-minimum-buying-age-now-21_n_5348490.html?ncid=fcbklnkushpmg00000063

Partial indoor e-cigarette "vaping" ban heads to Dayton for signature

Posted by: Abby Simons, Star Tribune

A retooled measure that would ban the use of electronic cigarettes—commonly known as “vaping”– in some public places head to Gov. Mark Dayton’s desk for signature into law.

The measure re-passed the House 93-35 and the Senate 52-13 Thursday as part of the Health and Human Services Policy omnibus bill, which also includes a ban on the use of indoor tanning beds by children under 18.

The final version of the bill prohibits vaping in most government-owned buildings including correctional facilities, daycare facilities including home daycares, hospitals and any buildings owned by the University of Minnesota or Minnesota State Colleges and Universities, including dorm rooms. The bill does not ban use in city-owned buildings, but they have the option of adopting by equal or more strict bans.

The bill also require4s child-proof packaging for all e-cigarette liquids p[prohibits e-cigarette use in public schools, bans retail sales from mall kiosks and allows local governments to pass stronger restrictions and ensure penalties for sale of e-cigarettes to minors.

The final result was a compromise between a stricter Senate versions authored by Sen. Kathy Sheran, DFL-Mankato, which placed e-cigarettes under the Clean Indoor Air Act, banning their use in all public places. A House version narrowed the ban to state buildings and public schools. The bill’s House author, Rep. Laurie Halverson, DFL-Eagan, removed the Clean Indoor Air Act provision in hopes of garnering enough votes to pass the bill.

In the past year, 80 percent of Minnesota’s 200 e-cigarette retailers have set up shop in kiosks and brick-and-mortar stores, garnering gratitude from users who say the devices are a safe alternative for those trying to quit smoking. But the devices, which can contain nicotine laced with various flavors that emit a vapor rather than smoke, concern some who say little is known about what chemicals secondhand vapors contain, and whether they’re harmful. However, opponents of an indoor use ban say there’s no proof that the vapor emitted from the products is harmful or dangerous.

Despite earlier reservations about a ban, Gov. Mark Dayton said he intends to sign the bill.

Dr. Nancy Snyderman: E-cigarette issue ‘is a big fight’

Today Show:  NBC News’ chief medical editor discusses what new FDA regulations could mean for e-cigarette consumers.

To view video:  http://www.today.com/video/today/55025322#55025308

Proposal would ban e-cigarette sales to minors, allow advertising

By: Reuters, INFORUM
WASHINGTON – The U.S. Food and Drug Administration proposed rules on Thursday that would ban the sale of e-cigarettes to anyone under 18, but would not restrict flavored products, online sales or advertising, which public health advocates say attract children.
The long-awaited proposal, which would subject the $2 billion industry to federal regulation for the first time, is not as restrictive as some companies had feared and will likely take years to become fully effective.
Bonnie Herzog, an analyst at Wells Fargo, said the proposal is “positive for industry.”
But public health advocates lamented the fact that the proposal does not take aim at e-cigarette advertising or sweetly-flavored products, which they say risk introducing a new generation of young people to conventional cigarettes when little is known about the long-term health impact of the electronic devices.
“It’s very disappointing because they don’t do anything to rein in the wild-west marketing that is targeting kids,” said Stanton Glantz, a professor at the Center of Tobacco Control Research and Education at the University of California, San Francisco.
FDA Commissioner Margaret Hamburg said at a briefing on Wednesday that the proposal represented the first “foundational” step toward broader restrictions if scientific evidence shows they are needed to protect public health.
That declaration worries some companies.
“The window is still open for a more draconian approach,” said Jason Healy, president of Lorillard Inc’s blu eCigs unit, which holds roughly 48 percent of the market. “I think the proposal shows a good science-based reaction here from the FDA, but there is a lot we have to go through during the public comment period.”
Lorillard, together with privately-held NJOY and Logic Technology account for an estimated 80 percent of the market. Other big tobacco companies, including Altria Group Inc and Reynolds American Inc, are also entering the market.
E-cigarette advocates welcomed the FDA’s light touch.
Dr. Michael Siegel, a professor of community health sciences at Boston University, said a ban on flavorings would have “devastated the industry, as the flavors are a key aspect of what makes these products competitive with tobacco cigarettes.”
Similarly, a ban on all e-cigarette advertising “would have given tobacco cigarettes an unfair advantage in the marketplace,” he said.
NO FREE SAMPLES
A law passed in 2009 gave the FDA authority to regulate cigarettes, smokeless tobacco and roll-your-own tobacco and stipulated the agency could extend its jurisdiction to other nicotine products after issuing a rule to that effect. E-cigarettes use battery-powered cartridges to produce a nicotine-laced inhalable vapor.
In the short term, the new rules would prohibit companies from distributing free e-cigarette samples, forbid vending machine sales except in adult-only venues and prohibit sales to minors.
Companies would also be required to warn consumers that nicotine is addictive, but no other health warnings would be required. The addiction warning would have to be added no later than two years after the rule is set and the e-cigarette companies would not be allowed to make health claims in any advertising.
The proposal is subject to a public-comment period of 75 days.
Vince Willmore, a spokesman for the Campaign for Tobacco Free Kids, said the proposal “by no means does everything we think needs to be done, but it starts the process. What is critical now is that they finalize this rule and then move quickly to fill the gaps.”
He said the FDA should aim to establish the rule within a year, but many are skeptical the agency will act that quickly.
“The reality of these things is that every step takes years,” said UCSF’s Glantz. “By not addressing the youth-directed marketing it means it won’t be addressed for a very long time.”
Some e-cigarette companies that sell primarily through convenience stores were surprised at the lack of restrictions on online sales, since it can be difficult to verify a customer’s age over the Internet.
“The Internet thing is very surprising to me,” said Miguel Martin, president of Logic Technology. “It reduces the visibility of the sales of the products and the type of products that the government has awareness of.”
The new rules would also require companies to submit new and existing products to the FDA for approval. They would have two years to submit applications from the time the rule goes into effect. Companies may continue selling their products and introducing new products pending the FDA’s review.
In the meantime, e-cigarette companies would be required to register with the FDA and list the ingredients in their products. They would not be required to adhere immediately to specific product or quality control standards. That could come later, Hamburg said.
THE “VAPING” INDUSTRY
E-cigarettes and other “vaping” devices generate roughly $2 billion a year in the United States, and some industry analysts expect their sales to outpace the $85 billion conventional-cigarette industry within a decade.
Advocates of e-cigarettes claim they are a safer alternative to conventional cigarettes, since they do not produce lung-destroying tar, though long-term safety data is thin.
The FDA’s proposal leaves many questions unanswered about how new products would be regulated over the long run. One key question relates to how products are approved.
Under current law, new tobacco products can be approved if they are “substantially equivalent” to a product that was on the market before Feb. 15, 2007. It is unclear whether any e-cigarettes were on sale before then, to be used as a benchmark.
Mitch Zeller, head of the FDA’s tobacco division, said at a briefing that the agency would be seeking more information during the public-comment period on whether the “substantial equivalence” pathway is even valid for e-cigarettes.
If it is not, e-cigarette companies would have to use a different process, which would require them to prove their products are appropriate for public health, a higher hurdle to clear.
Also up in the air is the regulatory fate of some cigars. The current proposal would include e-vaping products and other tobacco products, but premium cigars may be excluded.
The FDA said it would seek public comment on whether all cigars should be regulated equally. One option proposed by the agency is to regulate them all. The other is to define a category of premium cigars that would not be subject to the FDA’s authority.
Physicians said the possible exemption of premium cigars from regulation was troubling.
“Any exemption for any kind of tobacco product proven to cause lung and heart disease and cancer is unacceptable,” said Harold Wimmer, chief executive of the American Lung Association.
Cigar companies, backed by some members of Congress, had lobbied heavily for a regulatory carve-out for premium cigars. In a December 2013 letter to Hamburg and Sylvia Mathews Burwell, director of the White House’s Office of Management and Budget, 24 Republican lawmakers asked that premium cigars be exempt.
“As you know,” they wrote, “premium cigars are a niche product with an adult consumer base, much like fine wines. The majority of people who enjoy a cigar do so occasionally, often in social or celebratory settings.”
Under the proposed rule, premium cigars are considered those wrapped in whole tobacco leaf, made manually by combining the wrapper, filler and binder, have no characterizing flavor, have no filter, tip or non-tobacco mouthpiece and are relatively expensive.
http://www.inforum.com/event/article/id/432967/group/homepage/

FDA Moves to Regulate E-Cigarettes

By Krista Harju, KFYR-TV

FDA E-cig Regulations

The American Lung Association is calling it an important step forward for public health. The Food and Drug Administration’s Center for Tobacco Products issued a long-awaited proposal to regulate electronic cigarettes and other tobacco products.
Many tobacco smokers are making the switch to e-cigarettes. For some it’s about kicking the habit.
“After the first couple weeks, I don’t crave them as much. I still do, but I don’t think that will ever go away,” says smoker Shawn Deanna Barnes.
Some believe the smoking alternative is safer than traditional cigarettes. But the FDA isn’t ready to make that claim.
“They’ve analyzed three different e-cigarette cartridges and all three tested differently,” says Alison Harrington a respiratory therapist and certified tobacco treatment specialist.”With each puff there was one that had 26 micrograms of nicotine, and the other one had 43 micrograms of nicotine. And they were all labeled the same.”
Harrington says other carcinogens that weren’t mentioned on labels have been found, including diethylene glycol which is toxic to humans.
The proposed regulation would require manufacturers to register all products and ingredients with the FDA. And new products could only be marketed after an FDA review.
Barnes says she thinks it’s important to know what she’s ingesting.
“I don’t know if I’ll smoke them after I read whatever else is in them. We’ll see,” says Barnes.
The proposed rules also call for regulation of cigars, pipe tobacco, nicotine gels, water pipe tobacco and hookahs. Right now, only cigarettes and smokeless tobacco fall under the FDA’s regulatory authority.
The proposed regulation would also establish a nationwide minimum age for the legal purchase of tobacco. The age limit is expected to be at least 18, but individual states could choose to set it higher.
http://www.kfyrtv.com/story/25333937/fda-moves-to-regulate-e-cigarettes#.U1mtEbb4Lo8.facebook

Federal regulations loom for e-cigarette industry

By MICHAEL FELBERBAUM  The Associated Press
RICHMOND, Va. – Smokers are increasingly turning to battery-powered electronic cigarettes to get their nicotine fix. They’re about to find out what federal regulators have to say about the popular devices.
The Food and Drug Administration will propose rules for e-cigarettes as early as this month. The rules will have big implications for a fast-growing, largely unregulated industry and its legions of customers.
Regulators aim to answer the burning question posed by Kenneth Warner, a professor at the University of Michigan School of Public Health: “Is this going to be the disruptive technology that finally takes us in the direction of getting rid of cigarettes?”
The FDA faces a balancing act. If the regulations are too strict, they could kill an industry that offers a hope of being safer than cigarettes and potentially helping smokers quit them. But the agency also has to be sure e-cigarettes really are safer and aren’t hooking children on an addictive drug.
Members of Congress and several public health groups have raised safety concerns over e-cigarettes, questioned their marketing tactics and called on regulators to address those worries quickly.
Here’s a primer on e-cigarettes and their future:
WHAT ARE E-CIGARETTES?
E-cigarettes are plastic or metal tubes, usually the size of a cigarette, that heat a liquid nicotine solution instead of burning tobacco. That creates vapor that users inhale.
Smokers like e-cigarettes because the nicotine-infused vapor looks like smoke but doesn’t contain the thousands of chemicals, tar or odor of regular cigarettes. Some smokers use e-cigarettes as a way to quit smoking tobacco, or to cut down.
The industry started on the Internet and at shopping-mall kiosks and has rocketed from thousands of users in 2006 to several million worldwide who can choose from more than 200 brands. Sales are estimated to have reached nearly $2 billion in 2013.
Tobacco company executives have noted that they are eating into traditional cigarette sales. Their companies have jumped into the business.
There’s not much scientific evidence showing e-cigarettes help smokers quit or smoke less, and it’s unclear how safe they are.
WHAT IS THE FDA LIKELY TO DO?
The FDA is likely to propose restrictions that mirror those on regular cigarettes.
The most likely of the FDA’s actions will be to ban the sale of e-cigarettes to people under 18. Many companies already restrict sales to minors, and more than two dozen states already have banned selling them to young people.
Federal regulators also are expected to set product standards and require companies to disclose their ingredients and place health warning labels on packages and other advertising.
Where the real questions remain is how the agency will treat the thousands of flavors available for e-cigarettes. While some companies are limiting offerings to tobacco and menthol flavors, others are selling candy-like flavors like cherry and strawberry.
Flavors other than menthol are banned for regular cigarettes over concerns that flavored tobacco targets children.
Regulators also must determine if they’ll treat various designs for electronic cigarettes differently.
Some, known as “cig-a-likes,” look like traditional cigarettes and use sealed cartridges that hold liquid nicotine. Others have empty compartments or tanks that users can fill their own liquid. The latter has raised safety concerns because ingesting the liquid or absorbing it through the skin could lead to nicotine poisoning. To prevent that, the FDA could mandate child-resistant packaging.
The FDA also will decide the grandfather date that would allow electronic cigarette products to remain on the market without getting prior approval from regulators — a ruling that could force some, if not all, e-cigarettes to be pulled from store shelves while they are evaluated by the agency.
The regulations will be a step in a long process that many believe will ultimately end up being challenged in court.
WHAT ABOUT MARKETING?
There are a few limitations on marketing. Companies can’t tout e-cigarettes as stop-smoking aids, unless they want to be regulated by the FDA under stricter rules for drug-delivery devices. But many are sold as “cigarette alternatives.”
The FDA’s proposals could curb advertising on TV, radio and billboards, ban sponsorship of concerts and sporting events, and prohibit branded items such as shirts and hats. The agency also could limit sales over the Internet and require retailers to move e-cigarettes behind the counter.
WHAT DOES THE INDUSTRY THINK?
The industry expects regulations, but hopes they won’t force products off shelves and will keep the business viable.
E-cigarette makers especially want the FDA to allow them to continue marketing and catering to adult smokers — some of whom want flavors other than tobacco. They believe e-cigarettes present an opportunity to offer smokers an alternative and, as NJOY Inc. CEO Craig Weiss says, make cigarettes obsolete.
“FDA can’t just say no to electronic cigarettes anymore. I think they also understand it’s the lesser of the two evils,” said James Xu, owner of several Avail Vapor shops, whose wooden shelves are lined with vials of liquid nicotine flavor, such as Gold Rush, Cowboy Cut and Forbidden Fruit.
WHAT DO PUBLIC HEALTH OFFICIALS THINK?
Some believe lightly regulating electronic cigarettes might actually be better for public health overall, if smokers switch and e-cigarettes really are safer. Others are raising alarms about the hazards of the products and a litany of questions about whether e-cigarettes will keep smokers addicted or encourage others to start using e-cigarettes, and even eventually tobacco products.
“This is a very complicated issue and we must be quite careful how we proceed,” said David Abrams, executive director of the Schroeder Institute for Tobacco Research and Policy Studies at the American Legacy Foundation, in a recent panel discussion. “I call this sort of the Goldilocks approach. The regulation must be just right. The porridge can’t be too hot, and it can’t be too cold.”
http://www.newsday.com/business/federal-regulations-loom-for-e-cigarette-industry-1.7794606

Selling a Poison by the Barrel: Liquid Nicotine for E-Cigarettes

By , New York Times

A dangerous new form of a powerful stimulant is hitting markets nationwide, for sale by the vial, the gallon and even the barrel.

The drug is nicotine, in its potent, liquid form — extracted from tobacco and tinctured with a cocktail of flavorings, colorings and assorted chemicals to feed the fast-growing electronic cigarette industry.

These “e-liquids,” the key ingredients in e-cigarettes, are powerful neurotoxins. Tiny amounts, whether ingested or absorbed through the skin, can cause vomiting and seizures and even be lethal. A teaspoon of even highly diluted e-liquid can kill a small child.

But, like e-cigarettes, e-liquids are not regulated by federal authorities. They are mixed on factory floors and in the back rooms of shops, and sold legally in stores and online in small bottles that are kept casually around the house for regular refilling of e-cigarettes.

Evidence of the potential dangers is already emerging. Toxicologists warn that e-liquids pose a significant risk to public health, particularly to children, who may be drawn to their bright colors and fragrant flavorings like cherry, chocolate and bubble gum.

Photo

The liquid stimulant used in e-cigarettes, when ingested or absorbed through the skin, can cause vomiting, seizures or death. CreditFrank Franklin II/Associated Press

“It’s not a matter of if a child will be seriously poisoned or killed,” said Lee Cantrell, director of the San Diego division of the California Poison Control System and a professor of pharmacy at the University of California, San Francisco. “It’s a matter of when.”

Reports of accidental poisonings, notably among children, are soaring. Since 2011, there appears to have been one death in the United States, a suicide by an adult who injected nicotine. But less serious cases have led to a surge in calls to poison control centers. Nationwide, the number of cases linked to e-liquids jumped to 1,351 in 2013, a 300 percent increase from 2012, and the number is on pace to double this year, according to information from the National Poison Data System. Of the cases in 2013, 365 were referred to hospitals, triple the previous year’s number.

Examples come from across the country. Last month, a 2-year-old girl in Oklahoma City drank a small bottle of a parent’s nicotine liquid, started vomiting and was rushed to an emergency room.

That case and age group is considered typical. Of the 74 e-cigarette and nicotine poisoning cases called into Minnesota poison control in 2013, 29 involved children age 2 and under. In Oklahoma, all but two of the 25 cases in the first two months of this year involved children age 4 and under.

In terms of the immediate poison risk, e-liquids are far more dangerous than tobacco, because the liquid is absorbed more quickly, even in diluted concentrations.

“This is one of the most potent naturally occurring toxins we have,” Mr. Cantrell said of nicotine. But e-liquids are now available almost everywhere. “It is sold all over the place. It is ubiquitous in society.”

The surge in poisonings reflects not only the growth of e-cigarettes but also a shift in technology. Initially, many e-cigarettes were disposable devices that looked like conventional cigarettes. Increasingly, however, they are larger, reusable gadgets that can be refilled with liquid, generally a combination of nicotine, flavorings and solvents. In Kentucky, where about 40 percent of cases involved adults, one woman was admitted to the hospital with cardiac problems after her e-cigarette broke in her bed, spilling the e-liquid, which was then absorbed through her skin.

The problems with adults, like those with children, owe to carelessness and lack of understanding of the risks. In the cases of exposure in children, “a lot of parents didn’t realize it was toxic until the kid started vomiting,” said Ashley Webb, director of the Kentucky Regional Poison Control Center at Kosair Children’s Hospital.

Photo

Nicotine solutions at Volt Vapes in Boise, Idaho. The “e-liquid” comes in colors and flavors that experts say may entice children. CreditKatherine Jones/The Idaho Statesman, via Associated Press

The increased use of liquid nicotine has, in effect, created a new kind of recreational drug category, and a controversial one. For advocates of e-cigarettes, liquid nicotine represents the fuel of a technology that might prompt people to quit smoking, and there is anecdotal evidence that is happening. But there are no long-term studies about whether e-cigarettes will be better than nicotine gum or patches at helping people quit. Nor are there studies about the long-term effects of inhaling vaporized nicotine.

 Unlike nicotine gums and patches, e-cigarettes and their ingredients are not regulated. The Food and Drug Administration has said it plans to regulate e-cigarettes but has not disclosed how it will approach the issue. Many e-cigarette companies hope there will be limited regulation.

“It’s the wild, wild west right now,” said Chip Paul, chief executive officer of Palm Beach Vapors, a company based in Tulsa, Okla., that operates 13 e-cigarette franchises nationwide and plans to open 50 more this year. “Everybody fears F.D.A. regulation, but honestly, we kind of welcome some kind of rules and regulations around this liquid.”

Mr. Paul estimated that this year in the United States there will be sales of one million to two million liters of liquid used to refill e-cigarettes, and it is widely available on the Internet. Liquid Nicotine Wholesalers, based in Peoria, Ariz., charges $110 for a liter with 10 percent nicotine concentration. The company says on its website that it also offers a 55 gallon size. Vaporworld.biz sells a gallon at 10 percent concentrations for $195.

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The website of Liquid Nicotine Wholesalers. The Food and Drug Administration has yet to impose rules on e-liquids’ sale.

Mr. Paul said he was worried that some manufacturers outside the United States — China is a major center of e-cigarette production — were not always delivering the concentrations and purity of nicotine they promise. Some retailers, Mr. Paul said, “are selling liquid and they don’t have a clue what is in it.”

 Cynthia Cabrera, executive director of Smoke Free Alternatives Trade Association, said she would also favor regulations, including those that would include childproof bottles and warning labels, and also manufacturing standards. But she said many companies already were doing that voluntarily, and that parents also needed to take some responsibility.

“You wouldn’t leave a bottle of Ajax out,” she said. Advocates of e-cigarettes sometimes draw comparisons between nicotine and caffeine, characterizing both as recreational stimulants that carry few risks. But that argument is not established by science, and many health advocates take issue with the comparison.

“There’s no risk to a barista no matter how much caffeine they spill on themselves,” said Dr. Neal L. Benowitz, a professor at the University of California, San Francisco, who specializes in nicotine research. “Nicotine is different.”

Without proper precautions, like wearing gloves while mixing e-liquids, these products “represents a serious workplace hazard,” he said.

The nicotine levels in e-liquids varies. Most range between 1.8 percent and 2.4 percent, concentrations that can cause sickness, but rarely death, in children. But higher concentrations, like 10 percent or even 7.2 percent, are widely available on the Internet. A lethal dose at such levels would take “less than a tablespoon,” according to Dr. Cantrell, from the poison control system in California. “Not just a kid. One tablespoon could kill an adult,” he said.

http://www.nytimes.com/2014/03/24/business/selling-a-poison-by-the-barrel-liquid-nicotine-for-e-cigarettes.html?_r=0

States push to regulate, tax booming e-cigarette industry

By , Fox News
WASHINGTON –  While waiting for the debate on electronic cigarettes to heat up on Capitol Hill, several state and local governments are pressing ahead with their own agendas for taxing and regulating the popular battery-powered smoking alternatives.
Right now, there is no uniform national approach to regulating the vapor-based e-cigarettes. They are mostly free from federal rules and typically are subject only to state sales taxes.
But lawmakers in more than two dozen cash-strapped states are racing to regulate them as a new source of revenue. For some, this means tacking on an excise tax — which is a fee on a specific product, and often dubbed a “sin tax” when applied to socially shunned products like cigarettes.
Minnesota has led the charge and is currently the only state that’s got a specific tax policy for e-cigarettes on the books. The 2012 decision subjects vapor inhalers to a 95 percent tax that is stapled to the wholesale cost of the product.
According to the Minnesota Department of Revenue, e-cigarettes are considered tobacco products and are subject to the state’s tobacco tax. Distributors there are required to pay the tobacco tax or risk losing their license. Retailers must purchase e-cigarettes from distributors licensed by the state and are expected to “collect and remit sales tax on e-cigarette sales.”
In total, Minnesota estimates it will bring in $1.16 billion from all of its tobacco taxes in fiscal year 2014-2015.
Other states are taking notice.
In his 2015 budget proposal last month, New Jersey Gov. Chris Christie pitched a plan to hike taxes on electronic cigarettes to match the rate of regular cigarettes — about $2.70 per pack.
Supporters say increasing taxes will keep them out of the hands of children and teens.
But critics argue treating traditional cigarettes the same as e-cigs will hurt small businesses and strip smokers of the incentive to quit.
“Small businesses like convenience stores and especially brick and mortar vape shops will be hardest hit by this $35 million tax increase,” Americans for Tax Reform President Grover Norquist wrote in a March 11-dated letter sent to the New Jersey Legislature and shared with FoxNews.com.
Norquist also warns that raising taxes on consumers will “significantly decrease in-state sales, resulting in increased cross-border tax leakage.”
In recent years, as much as 40 percent of all cigarettes smoked in New Jersey were smuggled into the state illegally, resulting in a loss of more than $500 million in uncollected tax revenue each year, he says.
“By making New Jersey uncompetitive in e-cigarette pricing, the state would encourage smuggling, which will cost New Jersey small businesses tens of thousands of dollars in lost revenue,” he said.
But to some, like New Jersey Democratic Assemblyman Dan Benson, taxing e-cigarettes is not only a fiscal responsibility but also sends an important message to would-be smokers.
“If e-cigarettes are taxed less than regular cigarettes, we’re sending a message out there that they’re somehow safer, and I think the jury is out on that,” he recently told a New Jersey radio station.
Meanwhile, a similar proposal in Washington state recently died in the Legislature. That plan would have redefined “vapor products” – the kind used in e-cigarettes – as “tobacco substitutes” and “tobacco products.” By changing their classification to a tobacco product, lawmakers were initially hoping to slap a 95 percent tax on them, projected to generate an additional $40 million for the state.
According to the Centers for Disease Control and Prevention, the vapor from e-cigarettes has “far fewer of the toxins found in smoke compared to traditional cigarettes.”
However, the Atlanta-based agency says it’s too soon to say how much of a health benefit the alternative to traditional cigarettes offers. Both traditional cigarettes and e-cigarettes contain nicotine.
Tim McAfee, CDC’s director of Smoking and Health, says while it’s reasonably certain that if someone who smokes a pack a day switched completely to e-cigarettes it could represent a health benefit, there are still many “caveats and buts” around that.
Many argue that the reason state and local leaders are pushing so hard to tax e-cigarettes is because they’ve become addicted to the massive amounts of money brought in through the Master Settlement Agreement – a 25-year settlement that forces the nation’s top tobacco companies to pay out billions of dollars in profit to help pay for smoking-related health care costs in some states.
The 1998 settlement, for example, makes Philip Morris USA, the nation’s largest cigarette maker, pay $3.5 billion annually. The second-largest tobacco company, Reynolds Tobacco Co., has handed out more than $2 billion a year.
In total, the landmark settlement requires tobacco product manufacturers to make $206 billion in payments to 46 states and U.S.-territories.
If e-cigarettes are regulated the same way, that might mean millions more for states still struggling to find financial footing following the recession.
Utah, North Dakota and the District of Columbia have included e-cigarettes as part of their indoor-smoking bans, setting up the argument that the vapor sticks should be regulated like other tobacco products in the state. Wyoming, Tennessee, New York and Colorado are among nine other states that have already dumped e-cigarettes into the tobacco product category.
http://www.foxnews.com/politics/2014/03/18/states-push-to-regulate-tax-booming-e-cigarette-industry/

Chuck Schumer goes after marketing of e-cigarettes to kids

BY / NEW YORK DAILY NEWS

Fearful big tobacco could hook a new crop of smokers, Sen. Chuck Schumer says he’s backing legislation to stub out the marketing of e-cigarettes to children.
Schumer said tobacco companies are upping the appeal of vaping devices by making kid-friendly flavors like cotton candy and gummy bears.
“They are making a campaign to go after kids and that must stop,” Schumer said Sunday.
He vowed to push the so-called Protecting Children From Electronic Cigarette Advertising Act through the Senate. The legislation would close loopholes in advertising laws that tobacco companies have exploited to hook kids.
Schumer cited a study published last week in JAMA Pediatrics, which found that adolescents who smoke e-cigarettes are seven times more likely to smoke traditional cigarettes.
http://www.nydailynews.com/news/politics/chuck-schumer-e-cigarette-marketing-kids-article-1.1716091#ixzz2vgNEUEZf

E-cigarettes ignite debate over regulation, sales

LANSING, Mich. (AP) — Banning the sale of electronic cigarettes to kids may seem like a no-brainer, yet Gov. Rick Snyder’s administration and a number of health advocacy groups oppose legislation that does just that. They say it doesn’t go far enough.
Players on both sides of the state’s e-cigarette debate agree that the nicotine-dispensing devices should be kept away from minors, but opinions differ when it comes to regulating the relatively unstudied vaporizers.
Tobacco companies support two bipartisan Senate bills prohibiting the sale and use of e-cigarettes and other devices that deliver nicotine if the buyer is younger than 18 years old. Sen. Glenn Anderson, D-Westland, said he is sponsoring the legislation because it’s “outrageous” that a minor can legally buy and use a highly addictive product. The bills unanimously passed the Senate Thursday.
But Snyder’s administration and health advocates say the bills would give e-cigarettes a “special status” and protect them from standard tobacco regulations. They want e-cigarettes to be treated like traditional cigarettes, not only in regards to minors, but taxes and public use laws as well. Such regulations would ban e-cigarette use in workplaces or restaurants, a restriction that’s currently left up to individual businesses.
“The appropriate thing to do in Michigan now is to act to help protect the population against the potential health risks of e-cigarettes, about which we know very little,” said Dr. Matthew Davis, chief medical executive for the Community Health Department.
Electronic cigarettes are cylindrical battery-powered devices that heat a liquid to produce vapor. While the liquid often includes nicotine, which can be derived from tobacco, e-cigarettes have not been officially designated as tobacco products. The U.S. Food and Drug Administration regulates cigarettes and smokeless tobacco and has said it intends to propose changes to its authority to regulate e-cigarettes, too.
Twenty-seven states ban the sale of e-cigarettes to minors, according to the National Conference of State Legislatures. Most of those state laws are similar to the Senate legislation.
Opponents are countering with a House bill that would treat e-cigarettes as tobacco products.
Rep. Gail Haines, R-Lake Angelus, introduced the bill Wednesday after working with the administration and health groups such as the American Cancer Society and American Lung Association. She declined to comment before the bill was assigned to a committee.
Anderson said an effort to designate e-cigarettes as tobacco products would fail ahead of the FDA’s decision.
“Most of us would prefer for the FDA to make the decision, and they are going to do it probably sometime this year, but I don’t want to wait,” bill sponsor Sen. Rick Jones, R-Grand Ledge, said. “I want to stop the sale to children now, immediately.”
E-cigarettes are often produced by the same parent companies as traditional cigarettes and have grown increasingly popular over the past few years. U.S. middle and high school students’ use of e-cigarettes more than doubled from 2011 to 2012, the Centers for Disease Control and Prevention reported in September. The share of high school students who had used e-cigarettes in the past 30 days increased from 1.5 percent to 2.8 percent in the survey. More than 1.78 million middle and high school students tried e-cigarettes in 2012.
“As I read to a fourth grade last week, one of the children said, ‘My friends and I bought some and we played with them,'” Jones said on the Senate floor.
Mark Bilger, 18, asked his mother to contact Anderson about concerns over e-cigarettes in September after studying them for his debate club. Bilger, a senior at Detroit Catholic Central High School, said he noticed e-cigarettes were “becoming a real problem in my school” and that students occasionally use them in class “when the teacher’s back is turned” without getting caught “because there’s no smell, there’s only vapor.”
“I think it’s a step in the right direction,” Bilger said about the Senate legislation. “But I think they need some of the same regulations traditional cigarettes have, where you regulate what you put in it and have more testing on it.”
Lance McNally, 39, is one of Jones’ constituents who began using e-cigarettes in December. He owns three e-cigarettes and still smokes traditional cigarettes. He wants to transition fully to vaporizers because “there’s no stench.”
While McNally only uses tobacco-flavored e-cigarette liquid, he said his wife goes for more unusual flavors.
“Strawberry, cheesecake — those are the two main ones,” he said.
McNally said he’s not worried about flavors or advertisements appealing to minors because “I’m not seeing an inundation of marketing.” E-cigarette legislation is unnecessary because many retailers already won’t sell them to minors, he said.
“I don’t think they should be regulated like cigarettes,” McNally said. “I’m kind of a deregulation guy to begin with. I don’t see where the government needs to be wasting its energy and time and my money on another product.”
http://www.usatoday.com/story/news/nation/2014/03/07/e-cigarettes-regulation-sales/6181091/