Tag: Oregon

Judge Blocks Washington, Oregon Flavored Vape Ban

A voter-approved ban on flavored tobacco in Washington County, Oregon, has yet to go into effect after a judge issued an injunction, saying the county wasn’t prepared to enforce it anyway.
County health officials say that’s not exactly the case. But they concede they’ll have to allow sales of the flavored products to continue for now.
It’s just the latest in a series of setbacks for the county’s first-in-the-state ban on flavored tobacco products, according to Oregon Live.
The original ban was put into place by the Washington County Commission in November of 2021 and enforcement was set to begin in January of this year.
But opponents of the ban, spearheaded by Plaid Pantry CEO Jonathan Polonsky, gathered enough signatures to put it on the ballot and let voters decide in May.
Opponents realized the ballot language would cause confusion for many voters over what a “yes” vote really meant, however, so they stopped campaigning on behalf of their own measure.
Proponents of the ban, meanwhile, spent more than $1 million to defend it, and, in the end, Washington County voters overwhelmingly opted to keep the ban.
In February, before that vote, several Washington County businesses filed a lawsuit challenging the ordinance. Serenity Vapors, King’s Hookah Lounge and Torched Illusions, represented by attorney Tony Aiello, contended in their suit that they are legal businesses and would be unfairly harmed by the county’s ordinance.
Last week, Washington County Circuit Court Judge Andrew Erwin agreed to pause the ban, which had yet to be enforced. According to Erwin, the county’s arguments for keeping the ban in place while the law was challenged weren’t “compelling,” because he said the county’s lawyer said it had zero plans to enforce it “in the foreseeable future.”
On the other hand, Erwin reasoned, the businesses would “imminently and irreparably harmed” by following the law.
In his injunction, Erwin wrote: “Defendant argues that the public’s interest in Ordinance 878 overwhelmingly trumps plaintiffs’ interests. But defendant concedes they have no plans to further the public’s interest as they do not anticipate enforcing the ordinance in the foreseeable future.”
Supporters of the ban find this logic a bit circular — the ban only went into effect on June 13 and the apparatus for enforcement is not yet in place.
“Enforcement was to start along with the state inspections for the tobacco retail licensing law,” Mary Sawyer, a county health spokesperson explained. “Businesses are inspected annually by the state to make sure they have a license and are following new state law, and then if inspectors find that businesses in Washington County are selling flavored products, they would let us know.”
After the county is notified, it would start by educating the business about the flavored products law and only write a ticket if the business then failed to comply.
“None of this happened yet,” Sawyer said, “as the state was just starting their inspections this summer and they haven’t referred any businesses to us yet.”
The county has already filed a motion to dismiss the complaint. But as of now, flavored tobacco and vape products are available in Washington County.
Jordan Schwartz is the owner of Serenity Vapors, one of the plaintiffs in the case, which has three Washington County locations. Schwartz contends that his company has helped thousands of people quit smoking.
Now, he said, customers are coming in telling him, “I guess I am going to go back to cigarettes. That’s what they’re forcing us to do.”
According to Schwartz, Serenity Vapors sells mainly vape liquid or “vape juice.”
“North of 80 percent of our business comes from some type of flavored product,” he said.
July 11, 2022
Oregon E-Cig Tax Smokes Revenue Projections by 300%
Credit: Nomad Soul
In its quarterly revenue forecast Oregon state economists released last week is an eye-popping number: revenues from a new tax on nicotine-based e-cigarettes and vaping products.
“Inhalant delivery [vaping] revenues, a new tax in 2021, continue to come in significantly above initial expectations,” the economists wrote. “Over the first year of the tax, actual collections have been three times as large as expected.”
Prior to 2020, the state didn’t collect any taxes on e-cigarettes.
That changed with Measure 108 in 2020 that included a suite of new policies aimed at reducing the harmful effects of tobacco use—most notably a $2 tax increase on every pack of smokes, according to Willamette Week.
The measure, which passed 66% to 34%, also included a tax of 65% of the wholesale price of vaping products.
In October 2020, right before the general election, the Legislative Revenue Office prepared an estimate of how much the new vape tax would raise and estimated revenues to be an estimated $10 million a year.
In 2021, the first full year of collections, the state took in nearly $30 million.
It’s not unusual for projected revenues from a new tax to be significantly low, especially if they deal with new products such as vapes or newly legal products such as recreational cannabis, which also significantly overperformed in the early years.
May 25, 2022
Washington County, Oregon Votes to Ban Flavored Vapes
Credit: Raw F8
Washington County voters Tuesday overwhelmingly upheld a ban on sales of flavored vaping and other tobacco products.
According to election returns released by the Secretary of State’s Office, 76 percent of ballots were against a repeal of a county policy banning sales of flavored products.
The ban is the first of its kind among Oregon counties.
County commissioners originally passed the policy banning flavored tobacco in November before a vaping industry advocate Jonathan Polonsky successfully gathered enough signatures to put the issue up to voters, according to Pamplin Media Group (PMG).
On the ballot, the measure read “Should ordinance 878, prohibiting flavored tobacco products, machine sales, coupons, discounts, and moveable sales of tobacco products, be repealed?”
Polonsky tried to challenge the wording of the measure, which required voters to vote “yes” against the ban or “no” in favor of the ban, in Washington County Circuit Court, but a judge upheld the measure.
Polonsky told the PMG earlier this month if a majority of voters choose “no,” he intends to appeal the results to an appellate court to determine whether the results of the election are valid based on the ballot language.
According to Tuesday’s results, 66,192 ballots were in favor of the ban, while 20,089 were against it.
May 19, 2022
Washington County, Oregon Flavor Ban Placed on Hold
Credit: Vlad
A Washington County ban on retailers selling flavored vaping and other tobacco products has been put on hold and will be on the ballot in May after petitioners gathered signatures to stop the ban, the county announced.
Ordinance 878, passed November 2, 2021 by the Washington County Board of Commissioners, banned the sale of flavored tobacco products and flavored synthetic nicotine, according to news reports.
The ban went into effect December 2, 2021 but retailers had until January 1, 2022 to take the products off the shelves, when the ordinance was enforced.
However, enough signatures have been gathered to place the ordinance “on hold” while a Washington County Election official verifies the signatures to reverse the ban. The county has 15 days to verify the signatures.
This means Washington County retailers can now sell the flavored tobacco products and the ban will not be enforced while signatures are verified.
Meanwhile, the ordinance can still go back in place if there aren’t enough signatures, or if a majority of voters approve it in May.
February 7, 2022

Two New State Laws Could Disrupt the Vapor Industry

On January 1, 2022, two new state laws will become effective in Illinois and Oregon and could cause significant disruption to the vapor industry. According to Azim Chowdhury and Taylor D. Johnson, with the Keller and Heckman law firm, The Preventing Youth Vaping Act, will take effect in Illinois and HB 2261, will take effect in Oregon.

Under the Illinois law, an electronic cigarette is broadly defined as

any device that employs a battery or other mechanism to heat a solution or substance to produce a vapor or aerosol intended for inhalation;
any cartridge or container of a solution or substance intended to be used with or in the device or to refill the device; or
any solution or substance, whether or not it contains nicotine, intended for use in the device

“Critically, SB 0512 considers an electronic cigarette to be adulterated (and prohibited for sale) if, “it is required by 21 U.S.C. 387j(a) to have premarket review and does not have an order in effect under 21 U.S.C. 387j(c)(1)(A)(i) or is in violation of an order under 21 U.S.C. 387j(c)(1)(A).” In other words, if an e-cigarette is required by the federal Family Smoking Prevention and Tobacco Control Act (21 U.S.C. 387j(a)) to have premarket authorization from the U.S. Food and Drug Administration and does not have a Premarket Tobacco Product Application (PMTA) order in effect (or is in violation of such an order), it would be considered adulterated under the Illinois law,” the post states. “Although the law exempts e-cigarettes “first sold prior to August 8, 2016 and for which a premarket tobacco product application was submitted to the U.S. Food and Drug Administration by September 9, 2020” from the adulteration definition, products that are subject to timely submitted PMTAs that FDA has either refused-to-accept, refused-to-file, or have received marketing denial orders from FDA would likely still be considered adulterated by the state (as well as FDA).”

The rules do not apply to synthetic nicotine or CBD products.

In Oregon, the legislation prohibits the shipment of “inhalant delivery systems” to any person in Oregon other than a distributor or a retailer. The legislation effectively prohibits direct-to-consumer (DTC) sales (including online sales) of the vast majority of vapor products in Oregon, according to the blog post.

“Inhalant delivery systems” are defined in the legislation as “a device that can be used to deliver nicotine in the form of a vapor or aerosol to a person inhaling from the device; or a component of a device described in this paragraph or a substance in any form sold for the purpose of being vaporized or aerosolized by a device described in this paragraph, whether the component or substance is sold separately or is not sold separately.”

As such, the legislation would appear to prohibit the DTC sale of most types of vapor products, but likely would not cover non-nicotine closed-system products:

Type of Vapor Product	Subject to Oregon HB 2261 shipment ban?
Bottled e-liquid (with or without nicotine)	Yes – language covers “a substance in any form sold for the purpose of being vaporized or aerosolized by a [inhalant delivery system] device”
Open-system/Open-tank ENDS Device	Yes – language covers “a device that can be used to deliver nicotine in the form of a vapor or aerosol to a person inhaling from the device”
Open-system ENDS components (e.g., tanks, coils, atomizers, batteries, etc.)	Yes – language cover “or a component of a [inhalant delivery system] device”
Closed-system ENDS (e.g.., pod/cartridge or disposables) pre-filled with nicotine-containing e-liquid	Yes – language covers “a substance in any form sold for the purpose of being vaporized or aerosolized by a [inhalant delivery system] device”
Closed-system ENDS (e.g.., pod/cartridge or disposables) pre-filled with non-nicotine containing e-liquid	No – this type of product (i.e., a pre-filled CBD or THC vapor device) would not fall within meaning of a inhalant delivery system

An e-cigarette is also considered adulterated if (A) it consists in whole or in part of any filthy, putrid, or decomposed substance, or is otherwise contaminated by any added poisonous or deleterious substance that may render the product injurious to health; or (B) it is held or packaged in containers composed, in whole or in part, of any poisonous or deleterious substance that may render the contents injurious to health.

December 29, 2021

Oregon Governor Set to Sign Online Vapor Sales Ban
The Oregon Senate approved House Bill 2261 on Wednesday, a move that supporters said will limit Oregon’s youth from accessing nicotine products by closing loopholes that have allowed those underage to purchase vaping products. The legislation passed the Oregon House on April 10. It now goes to the governor for her signature, which she has said she will sign.
Credit: Vlad
“The use of vaping products by our youth is shocking,” said State Sen. Kathleen Taylor. “No matter how diligent our retailers are, there is still significant access to these products online.” Oregon prohibited the online sale of cigarettes and other tobacco products from taking place online in 2017. Oregon brings vaping products in line with that policy.
E-cigarettes started to be taxed for the first time in Oregon beginning Jan. 1 after voters overwhelmingly approved Measure 108 in late 2020.
In 2015, Taylor championed House Bill 2464 to make certain access and use laws around inhalant delivery systems aligned with that of other tobacco products. The bill added age restrictions on purchasing and defined where the use of vape products is allowed, according to KTVZ.com.
“Vaping is harmful to our youth. Not only is it habit forming, the nicotine contained in these products can have lasting effects on kids’ still-developing brains,” said Taylor. “The use of these products continues to rise, and they contain products and chemicals that are highly addictive. Oregon’s licensed retailers have agreed to do the right thing, protect our kids, and sell only to those of legal age. Ensuring a face-to-face exchange is required for purchasing these products, we remove a loophole that may be used that can result in lifelong addiction and negative health outcomes.”
May 27, 2021
Oregon’s E-Cigarette Tax Hike Takes Effect Friday
E-cigarettes will be taxed for the first time in Oregon beginning Friday, Jan. 1. Also, Oregon’s tax on combustible cigarettes will increase by $2 per pack after voters overwhelmingly approved Measure 108 last month.
Electronic nicotine delivery systems (ENDS), such as vaping and e-cigarette products, will be taxed at a rate of 65 percent of the wholesale purchase price. Oregon’s cigarette tax will now be $3.33 per pack, the sixth-highest in the nation and the highest on the West Coast.
Credit: Pasja1000

In addition to saving lives, the cigarette tax increase is projected to raise nearly $135 million in annual revenue, according to data from the Campaign for Tobacco-Free Kids and Tobacconomics.
The new revenue will provide access to health care on the Oregon Health Plan at a time when health care coverage is critical, and fund the state’s tobacco prevention and cessation programs to help people quit tobacco successfully, according to a press release.
December 30, 2020
Oregon Considers Measures to Stop Another EVALI Outbreak
Oregon wants some cannabis vape manufacturers to recall products that might cause lung injuries.
The Oregon Liquor Control Commission is asking for a voluntary recall of two potential cannabis vape ingredients: squalene and squalane. They’re derived from olives and have been used to dilute the liquid that goes into vape pens so it can easily vaporize, according to an article on opb.org.
Credit: Michal Jarmoluk
The agency said the ingredients have been linked with Vitamin E acetate and the safety problems that put thousands of vapers in the hospital with lung damage last year.
OLCC spokesperson Mark Pettinger said commissioners will meet this week to consider a mandatory ban on the ingredients and, perhaps more importantly, a more stringent product review process.
“We can go and pull samples of stuff off the shelves and get it tested,” he said. “But if we find ingredients or additives that are injurious, or potentially injurious to public health, there’s very little we can do right now.”
Much of the recalled product has already been bought and consumed, but some remains on the market. Bulk Naturals LLC, which does business as True Terpenes, used squalene and squalane to make a product called “Viscosity.” It in turn was used to make cannabis vaping products by the Bend company Oregrown.
Consumers can verify whether items are subject to the recall: They will be labeled “Oregrown PAX Era D9 Elite” and have the identification number 2520. They will also have been made before Aug. 31, 2019.
Pettinger stressed that Oregrown did not know Viscosity was potentially harmful and stopped selling it as soon the OLCC reached out.
“Oregrown in this situation is not a bad actor … they are a poster child for a licensee that stepped up,” he said. “When we said, ‘Hey, we believe there’s a problem,’ they were basically, ‘What can we do to help? What can we do to track this down?’”
The OLCC statement on the recall said: “OLCC recently commissioned a study that determined that when exposed to heat, squalene and squalane produce harmful chemicals. It has also been documented that inhaling squalene has been associated with exogenous lipoid pneumonia. Initial evidence about these additives also suggests a potential for consumer harm similar to that already proven about Vitamin E Acetate.”
Oregon regulators have been concerned about the presence of undisclosed ingredients in cannabis vaping products and examining non-cannabis additives over the last year.
At the OLCC Thursday meeting, the commission will consider new rules for cannabis vaping products that would establish greater accountability for non-cannabis ingredients used in cannabis vaping products.
December 16, 2020
Oregon Voters Approve 65% Wholesale Tax Hike on Vapor
A measure in Oregon that places a 65 percent tax on the wholesale cost of vapor products has passed.
According to an article on KDRV.com, Measure 108 increases taxes on all tobacco products, especially “inhalant delivery systems,” namely e-cigarettes, and puts the money toward health programs under the Oregon Health Authority umbrella.
The measure increases tobacco taxes at the following rates:

Cigarette tax at 16.65 cents per cigarette, which is an increase from $1.33 to $3.33 per 20-pack of cigarettes;

E-cigarettes and other nicotine inhalants at a rate of 65 percent of the wholesale sales price; and

Cigar tax cap of 65 percent of the wholesale sales price, not to exceed $1.00 per cigar, an increase from $0.50.

With over 67 percent of precincts reporting, almost 67 percent of voters favored the measure, with just over 33 percent against.
“This is a great victory for public health and tobacco control efforts in Oregon that will save thousands of lives and reduce the devastating toll of tobacco use on our families and communities. Tobacco use is the leading cause of preventable death, but with this vote, Oregonians have taken a critical step forward,” said Jamie Dunphy, Oregon government relations director for the American Cancer Society’s Cancer Action Network.
November 4, 2020
Oregon Vape Shops Stressed Over Proposed Vapor Tax

Credit: NYPLS
Oregon Ballot Measure 108, a new tax on e-cigarette products and a tax increase on tobacco products is going to hurt local businesses because the products will affect what consumers can afford. It could also drive current vapers back to combustible cigarettes. E-cigarettes would be taxed at the rate of 65 percent of the wholesale sales price under the measure.
The new e-cigarette tax would not include products that have been approved by the U.S. Food and Drug Administration to help people quit smoking. It also does not include e-cigarettes sold for the purpose of vaporizing marijuana.
Oregon’s NewsChannel 21 stated Wednesday that it spoken with representatives of Smoke This, High Mountain Mist and Valley Vapors, three vape shops that say customers have expressed concern about the possible tax hikes.
Measure 108 would raise the state’s cigarette tax by $2 per pack and tax e-cigarettes for the first time in Oregon. Currently, Oregon’s cigarette tax is $1.33 cents per stamp for a pack of 20 cigarettes.
Supporters say such increases bring Oregon’s cigarette taxes in line with Washington and California. That means it would likely stop Washingtonians from driving across the state boundary to buy cheaper cigarettes.
Jamie Dunphy, Oregon government relations director with the American Cancer Society Cancer Action Network, says the measure is about public health.
“Evidence shows that e-cigarette use directly leads to tobacco use, and it directly leads to cancers, and it directly leads to a lot of health disparities that cause lifelong problems.” Several studies have shown all three claims to be false.
Jason Weber, CEO of Vape Crusader, is working with local businesses in the “No On 108” campaign. He said the new tax would cause some businesses to take a hit. “A 65 percent tax on every product in our vaping stores is detrimental to our businesses,” Weber said. “I would say somewhere around 90 or 95 percent of us would have to shut down.”
Weber explained that there are parameters in place to keep people safe and healthy. “All of our stores are 21 and older, so youth can’t come in our stores as is,” Weber said. “Again, these products have been proven 95 percent safer than smoking.
“And then for the argument (that) this leads to tobacco use — well if that was the case, we’d see tobacco use skyrocket right now,” he said. “We don’t — we see that the CDC says it’s a 34 percent drop in vaping in the last year.”
The American Cancer Society said the tax dollars will go toward intervention, public services, rehabilitation and tobacco education programs. The bill states that 90 percent of tax revenues would go to the Oregon Health Authority to pay for the treatment of sick people, especially those suffering from mental illnesses. The remaining 10 percent would go to tribal health providers and other culturally specific health programs for tobacco cessation efforts.
October 16, 2020