Author: Timothy Donahue

  • Study Finds States Differ in Harm Reduction Efforts

    Study Finds States Differ in Harm Reduction Efforts

    A new R Street Institute report found that while some states support one type of harm reduction, those same states may actively oppose another type of harm reduction. 

    The report, “Progressive Except for Nicotine: A Discussion of States’ Inconsistent Adoption of Harm Reduction Public Policy, examined the harm reduction policy landscape across tobacco, opioids and cannabis in all 50 U.S. states.

    Researchers identified several important harm reduction-related policies that have varying levels of acceptance/implementation across different states or are currently in legislative flux: tobacco: state and municipal restrictions on electronic nicotine-delivery systems; opioids: states’ authorization of syringe services programs, decriminalization of drug checking equipment, and presence of state-imposed restrictions on methadone that go beyond federal regulations; and cannabis: the legal status of medical and recreational adult-use cannabis markets in each state.

    Researchers then used this information to rank states as “restrictive,” “moderate” or “permissive” on harm reduction with regard to each substance. These rankings were quantitatively compared for all states, and states deemed “restrictive” on at least one substance were qualitatively examined. 

    The report also showed that the five states most restrictive of reduced-risk nicotine products in tobacco harm reduction are California, Massachusetts, New Jersey, New York and Rhode Island, and these states are relatively “permissive” when it comes to opioid harm reduction and cannabis use.

    The researchers have suggested that lawmakers reflect on the inconsistencies between harm reduction policies across substances and put political motivations aside to support harm reduction across all substances.

  • Flava Pulled From Philippine Shelves for Tax Evasion

    Flava Pulled From Philippine Shelves for Tax Evasion

    Credit: Adobe Photo

    Flava brand vaping products have been pulled from store shelves in the Philippines amid allegations of illegal marketing to minors and tax evasion, the Department of Trade and Industry has said.

    The DTI’s Fair Trade Enforcement Bureau (FTEB) on March 15 ordered Flava Corporation, Lilac’s Vape Shop, and social media influencer Lilac Sison Tayaban, CEO of Flava, to refrain from manufacturing, importing, selling, packaging and distributing imported Flava vapes, according to media reports.

    Once the Sampaloc, Manila-based business receives the preliminary order issued by DTI-FTEB, all of Flava’s commercial activities must immediately stop.

    Flava was the respondent to formal charges alleging violations of Republic Act No. 11900, or the Vaporized Nicotine and Non-Nicotine Products Regulation Act, filed before the DTI-FTEB on March 14.

    In turn, the DTI-FTEB gave the preliminary order to confiscate Flava products that violate RA 11900, to prevent the disposition or tampering of evidence and the continuation of the acts being complained of.

    The DTI is the lead implementing and enforcement agency of RA 11900, the landmark law aimed at protecting minors from vaping. The House Ways and Means Committee earlier estimated as much as P728 million ($1.3 million) in foregone tax revenues from the alleged technical smuggling of P1.4 billion worth of illicit Flava devices last year.

    After laboratory testing, The House panel discovered that Flava had not declared the vapes it imported from China. Flava allegedly mislabeled its ingredient as freebase nicotine, which has a lower excise tax than nicotine salt — the nicotine used in Flava products.

    Also, the House committee discovered Flava’s aggressive marketing of its flavored vapes to minors, most especially on social media—a violation of RA 11900. Last week, Bureau of Internal Revenue commissioner Romeo Lumagui Jr. disclosed that the taxman seized 1,029 master boxes of Flava vapes from a warehouse in San Pablo City, Laguna, with tax deficiencies totaling P75.7 million.

    The BIR raid conducted together with the Laguna provincial field unit of the Philippine National Police’s Criminal Investigation and Detection Group (PNP-CIDG) also led to the arrest of two individuals manning the warehouse.

    As such, the BIR will file criminal tax evasion charges against Flava.

    “This successful raid of a vape warehouse containing 102,900 bottles of Flava vape products will be one of many. The BIR supports the whole of the government’s approach to eradicating illicit vape products. We have warned you as early as 2022. Our raids are successful. We won the criminal cases. You already have pending warrants of arrest. Register and pay your proper taxes, or suffer the consequences,” Lumagui said.

    Meanwhile, Consumer Protection Group spokesperson, Trade Assistant Secretary Amanda Nograles said they will check the report of the Philippine Drug Enforcement Agency that marijuana-laced electronic cigarettes or vapes are now proliferating in the market.

    “That report alarms us, especially when these will be sold to minors. Since the information was just new, then we will get additional information. But the DTI will continue to confiscate vape products with flavor descriptors and have cartoon characters that are appealing to minors, and products that use influencers,” Nograles said in a radio interview.

    She said if the DTI encountered or confiscated vapes with marijuana oil, then they would refer it to the PDEA.

    On Thursday PDEA operatives seized cannabis oil and ‘kush’, and assorted vaping devices, with an estimated total value of P842,000 in simultaneous raids in Taguig City.

  • U.K. Group: Harsh Fines for Selling Illegal Vapes

    U.K. Group: Harsh Fines for Selling Illegal Vapes

    U.K. firms flouting the proposed ban on disposable vapes should face harsher fines to deter unscrupulous businesses, according to the Local Government Association (LGA).

    Under the government’s plans, businesses caught selling disposable vapes once the ban is in place could be given a fixed-penalty notice of £100 by their local council.

    The LGA has said the proposed fine is too low and might let businesses off the hook. However, a minority could see the fine as a price worth paying to continue selling the products, it said.

    “We’re delighted that the government is taking decisive action to ban disposable vapes,” Kaya Comer-Schwartz, the leader of Islington Council and public health spokesperson for the LGA, said, according to media reports. “However, proposed penalties will be a drop in the ocean to a minority of unscrupulous businesses looking to make a quick buck after the ban comes into place.”

    Firms flouting the proposed ban on disposable vapes should face harsher fines to deter unscrupulous businesses, the Local Government Association (LGA) has said.

    Under the government’s plans, businesses caught selling disposable vapes once the ban is in place could be given a fixed-penalty notice of £100 by their local council.

    The LGA has said the proposed fine is too low and might let businesses off the hook. A minority could see the fine as a price worth paying to continue to sell the products, it said.

    Kaya Comer-Schwartz, the leader of Islington Council and public health spokesperson for the LGA, said: “We’re delighted that the government is taking decisive action to ban disposable vapes. However, proposed penalties will be a drop in the ocean to a minority of unscrupulous businesses looking to make a quick buck after the ban comes into place.”

    According to LGA analysis, councils can impose larger penalties for other offenses, including up to £500 for littering, £500 for excessive noise from licensed premises, £200 for a business failing to put up “no smoking” signs, and up to £150 for unauthorized distribution of free leaflets on public land.

    The LGA, representing councils in England and Wales, calls for the government to amend the tobacco and vaping bill to allow councils to impose more severe fines.

  • Nebraska Bill Would Create Vape Registry, More Tax

    Nebraska Bill Would Create Vape Registry, More Tax

    Credit: Mandritoiu

    Nebraska is seeking to join the growing number of states that have created a registry of authorized vaping products retailers can sell.

    State Sen. Jana Hughes sponsored a successful bill last year that implemented a 5-cent-per-militer excise tax on disposable vape liquids and a 10 percent wholesale tax on other electronic nicotine-delivery system (ENDS) products that began Jan. 1.

    She has returned this year with Legislative Bill 1296, to regulate vaping products through a vape registry and increase the tax on wholesale products to 20 percent.

    Earlier this month, lawmakers advanced LB 1296 by attaching it to LB 1204 — a General Affairs Committee priority bill — and advanced the package again Friday. It is awaiting one final round of debate.

    Hughes told media that in the United States, there’s a perception that products sold in retail outlets are safe. However, she said, the federal government, which is supposed to be responsible for product regulation and safety, has dropped the ball.

    “If they get their stuff together … then we’re done,” Hughes said of her bill. “But they’re not doing it.”

    Hughes said she had amended her legislation in part with the help of “reputable” vape shops and would have manufacturers list their chemicals, allowing easier regulation and seizure if needed. The senator said this could also prevent imports of products from outside the country, where 99.9 percent of all vaping products are produced.

    Her proposal is not meant to be a moneymaker or a money sucker, she said, but to create an even “wash” between fees assessed on the vape industry and oversight costs.

    “But that’s the hard part: This is brand-new territory,” Hughes said.

    Under her bill, an application for certification would cost $75 for each type or model of electronic nicotine delivery system sold in Nebraska instead of $250 per system. Hughes noted that lawmakers may need to extend the debate one more time if the fiscal estimate isn’t a “wash.”

    Hughes’ bill would also require in-person pickup of vape products and end mail delivery for purchases made online or over the phone.

    The bill also has provisions meant to crack down on advertising targeted at minors, outlawing ads or packaging that depict a cartoon-like fictional character that mimics a character primarily aimed at entertaining minors, imitating or mimicking trademarks or trade dress of products that are or have been primarily marketed to minors, or including an image of a celebrity.

  • Vermont Lawmakers Pass Flavor Ban, Moves to Senate

    Vermont Lawmakers Pass Flavor Ban, Moves to Senate

    Credit: Rabbit75_fot

    Vermont lawmakers Friday approved a ban on flavored vaping and other flavored tobacco products.

    S.18 would end retail sales of all flavored e-cigarettes, e-liquids, and oral nicotine pouches. The bill would also end the sale of all menthol-flavored tobacco products, including cigarettes, cigars, pipe tobacco, and smokeless tobacco, by January 1st, 2026.

    The legislation, which has been debated for at least six years, faced a fierce lobbying campaign from retailers who said it would put many out of business. Some lawmakers have also balked at the loss of millions in tax revenue, according to media reports.

    But supporters say the adverse health impacts on young people who get hooked on the products are just too great. Lawmakers spoke on the House floor Thursday about the extensive testimony from medical professionals, educators, parents, and members of the BIPOC community in support of the bill.

    The bill will now return to the Senate, which passed a different version of the bill last year. The governor has not yet indicated if he will sign it.

  • Louisiana to Begin Enforcing Vaping Bans Monday

    Louisiana to Begin Enforcing Vaping Bans Monday

    Credit: Gustavo Frazao

    The Louisiana Office of Alcohol and Tobacco Control (ATC) announced that it will resume enforcing state laws affecting the marketing and sale of vaping and e-cigarette products on March 18, 2024.

    Beginning that day, all vapes not authorized or under review by the U.S. Food and Drug Administration cannot be legally sold in Louisiana. The ATC will provide the V.A.P.E. Directory on their website, a list of all approved vapor or alternative nicotine products and electronic cigarettes.

    Businesses must remove all products not listed on the directory from their inventory and display.

    The enforcement of this law was put on hold when the Louisiana Convenience Store and Vape Association filed a lawsuit, saying the law was unconstitutional. A judge granted a preliminary injunction in January, temporarily halting the enforcement of the new law.

    After a permanent injunction hearing on Feb. 21, the ATC said the injunction was rendered moot, and that the vape law was now enforceable, according to media reports.

    Initially, the ATC passed a law in June 2023 to triple vape taxes in Louisiana and ban the sale of vapes not authorized by the FDA. The extra revenue was to be allocated to entities like state police. The increase is due to Act 414 HB635, which was signed into law by former Gov. John Bel Edwards.

  • Turning Point Brands Hires Flynn to Fill CFO Role

    Turning Point Brands Hires Flynn to Fill CFO Role

    Credit: Motortion

    Turning Point Brands has announced the appointment Andrew Flynn as the company’s new Chief Financial Officer, effective on or before April 1, 2024.

    Flynn is replacing Louie Reformina, who will step down to pursue other opportunities, according to a Turning Point press release.

    “Andrew has led key initiatives across all areas of finance and broader strategic planning throughout his career,” said Graham Purdy, Turning Point Brands president and CEO. “His diverse operating background and industry expertise ideally positions him to help us maximize the value of our brands, continue to modernize our organization, and grow our free cash flow.”

    Prior to joining Turning Point Brands, Flynn served as the CFO of Connected Cannabis Co. where he was responsible for bringing sustained profitable growth, expanding geographically and recapitalizing the company. Before joining Connected, Flynn served as Sr. vice president of Juul Labs.

    “Turning Point Brands is one of the most innovative and well-capitalized companies in the industry. TPB’s iconic Zig-Zag and Stoker’s brands and market-leading distribution platform set it apart in this rapidly evolving space,” said Flynn. “As CFO, I look forward to working with the Board and management team to maximize long-term shareholder value.”

  • BAT Opens Innovation Center for Reduced Risk Products

    BAT Opens Innovation Center for Reduced Risk Products

    BAT has opened a new state-of-the-art Innovation Centre at its global research and development (R&D) headquarters in Southampton. The center will be key in continuing the company’s transformation as it builds “A Better Tomorrow.”

    The £30 million ($38.55 million) facility strengthens and deepens BAT’s R&D capabilities. It provides nine specially designed technical spaces to aid the development of BAT’s portfolio of Reduced Risk Products, according to a press release.

    These spaces are dedicated to researching modern oral nicotine pouches, liquids, and flavors for vapor products, heated tobacco products, and well-being and stimulation beyond nicotine. The investment will also support work on packaging, engineering, innovation development, and system integration.

    “The opening of this new facility marks an important milestone in BAT’s transformation and will play a key role in making a smokeless future a reality. Evidence provided by objective world-class science is essential to facilitate the migration of adult smokers to smokeless products and support public health objectives,” said James Murphy, BAT’s director of Research and Science. “The investment in our Innovation Centre will support the cutting-edge research and product development efforts of our global R&D team for many years to come.”

    The new facilities will bring together cross-functional and key R&D teams – with 400 specialized scientists and engineers drawn from various advanced fields, including biotechnology and clinical trials. Intended to accelerate the development of the next generation of BAT’s New Category products, their work includes developing the robust scientific evidence necessary to encourage adult smokers to switch to less risky alternatives.

    To date, R&D carried out in BAT’s Southampton facilities has produced over 200 peer reviewed studies for smokeless products published in scientific journals and has contributed to BAT’s filing of hundreds of patents a year. BAT is listed as one of the top patent filers in Europe as the company continues to develop smokeless products.

    The new Innovation Centre is the latest example of BAT’s commitment to invest in the highest standards of scientific research and product development to support its ambition to reduce the health impact of its business and deliver “A Better Tomorrow.”

    BAT’s refined strategy has committed the company to “Building a Smokeless World” and becoming a predominately smokeless business, with 50 percent of revenue generated from Non-Combustibles by 2035.

    BAT’s site in Southampton, the home of its R&D operations since 1956, is one of the largest employers in the region, with over 1,000 current employees drawn predominantly from across the UK, and a local supply chain with over 25 suppliers based within a 30-mile radius.

    The company’s UK operations support 7,100 jobs across the wider economy and contribute over £300 million to the UK’s GDP. The opening of the Innovation Centre exemplifies BAT’s commitment to and ongoing investment in the UK, marking the first stage of an eight-part, multi-phase refurbishment program for BAT’s entire Southampton campus.

    Globally, BAT has over 1,600 R&D specialists spread across the UK, US, Brazil, Indonesia, Malaysia and China. The £30 million investment in the Southampton facility follows the opening of BAT’s Innovation Centres in Trieste (Italy) in 2021 and in Shenzhen (China) in 2022, and an investment of £300 million a year in R&D to develop New Category products and establish substantiation of their reduced risk potential.

  • Protestors Want Veto of Florida Flavor Ban, Registry

    Protestors Want Veto of Florida Flavor Ban, Registry

    Credit: Kristina Blokhin

    Supporters of less harmful nicotine products want Florida Governor Ron DeSantis to again veto a proposed ban on the sale of flavored e-cigarettes in Florida. The legislation would also create a vape registry for the state.

    “It would kill our local businesses,” said Gary Eliasov-Hodes, managing partner of Cloud Smoke Shop, which has two locations in Tallahassee.

    Seventy percent of his business revenue comes from selling flavored nicotine vaping devices, he said. That’s $3.5 million annually for both of his shops, according to media reports.

    On Thursday, Eliasov-Hodes was among about 200 people gathered outside the governor’s mansion to protest the proposed ban, which they say they want Gov. Ron DeSantis to veto.

    The legislation would prohibit stores from selling flavored e-cigarettes, instead they would be allowed to sell from a list of 23 different tobacco-flavored vaping devices that have been approved for marketing by the U.S. Food and Drug Administration.

    Many states have also included products still currently under review by the regulatory agency.

    The bipartisan bill received pushback from some lawmakers in the House but unanimous support in the Senate before it passed earlier this week. Last year, DeSantis vetoed a similar measure, and opponents say they hope he will do the same this year.

    Proponents of the measure say removing vaping flavors from the market is aimed at keeping e-cigarettes out of the hands of children.

    Lining the sidewalks on each side of W. Brevard Street, protesters chanted “Veto the vape bill” and “No to tobacco,” while holding signs with the words: “We vote, we vape.”

  • State General Assembly Kills Colorado Flavor Ban Bill

    State General Assembly Kills Colorado Flavor Ban Bill

    Credit: Christopher Boswell

    It happened again. For the second time in the last three sessions, a bill to regulate flavored nicotine products has died in Colorado’s General Assembly.

    The proposal would have allowed a board of county commissioners to ban flavored tobacco and nicotine products. The House Business Affairs & Labor Committee defeated it on a 6-5 vote, according to Colorado Public Radio.

    Several lawmakers on the committee voting against the bill cited concerns about its impacts on local businesses, echoing testimony from several vape shop owners who said it would have hurt sales if a county banned flavored vaping and other tobacco products.

    “We have a long history of choosing to listen to the tobacco lobby,” said bill sponsor Rep. Elizabeth Velasco, as she appealed to her colleagues before the vote. “I hope that today we can really think about the children and make sure that we do the right thing to make sure that our children don’t have access to these products that have been targeted for them.”

    The measure had already passed a Senate committee and the full Senate. As has been seen in prior years, the bill drew intense lobbying, with 141 lobbyists from both sides signing up to voice support, opposition, or neutrality, according to the state’s lobbyist disclosure website.

    Tobacco companies like PMI, RJ Reynolds America, and Altria, represented by the lobbying company Brownstein Hyatt Farber Schreck, and industry groups, including the Vapor Technology Association, hired lobbyists in opposition to the legislation.

    All the traditional anti-nicotine groups such as Bloomberg, Tobacco-Free Kids Action Fund and Kaiser Permanente also hired lobbyists in support.

    In 2022, a bill to ban flavored tobacco statewide failed after Gov. Jared Polis said the issue should be handled at the local level.