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TOBACCOOUTLETBUSINESSMAYJUNE201118ByThomasA.BriantExecutiveDirectorNationalAssociationofTobaccoOutletsTRADETALKTxUTCaliforniaConnecticutHawaiiIllinoisKentuckyMaineMarylandMississippiMissouriNebraskaNewMeicoNewYorkNorthakotaOreonTeasVermontViriniaWestViriniaFMTINgFLITIgTIONTaxLegislativeUpdateandRegulatoryNewsTOBWiththemajorityofstatelegislaturesnowinsessionbillstoraisestatecigarettetaxeshavebeenintroducedin17statesandlegislationtoraisethetaxesonothertobaccoproductsOTPisbeingconsideredin13states.Belowisabriefsummaryofthesetax-increaseproposals1.50perpackofcigarettes.0.40perpackofcigarettes22.5percentonOTP.1.20perpackofcigarettes3.20perOTPitemexceptcigars.0.76perpackofcigarettesadditional0.25perpackstartingMarch12012.1.06perpackofcigarettes12.5percentonOTP.1.50perpackofcigarettes.1.00perpackofcigarettes80percentonOTP.0.50perpackofcigarettes7.5percentonOTP.0.16perpackofcigarettes.1.35perpackofcigarettes45percentonOTP.32percentonOTPwithminimumof1.66perOTPitem.1.65perpackofcigarettes.0.41perpackofcigaretteswasproposedbutthendefeated.1.00perpackofcigarettes55.25percentonOTP.0.12perpackofcigarettes.1.00perpackofcigarettes1.00perpackoflittlecigars.1.15perpackofcigarettes40percentonOTP.1.00perpackofcigarettes43percentonOTP.Incontrasttotheseproposedtaxincreasestherearethreestateswithbillspendingthatwouldreducestatecigarettetaxrates.TheseincludetwobillsinNewHampshirethatproposetodecreasethestatescigarettetaxrateby0.10perpackand0.98perpackrespectivelyaproposalinNewJerseytoscalebackthestatecigarettetaxrateby0.30perpackandabillinRhodeIslandthatproposestoreducethestatecigaretterateby1.00perpack.OnFeb.16NATOrepresentativesmetforasecondtimewithstafffromtheFDAsCenterforTobaccoProductstocontinuediscussionsonmutualcooperationandcommunicationonmattersregardingtobaccoregulation.TheFDAstaffwasaskediftheagencyhadatimeframetonalizetheGuidanceonprogramsfortrainingretailclerks.InresponsetheFDAstaffindicatedthatpubliccommentsreceivedaboutelementsoftheproposedclerk-trainingprogramswerestillbeingreviewedandthatthenalGuidanceDocumentwouldbeissuedwhenthereviewprocessiscompleted.OnFeb.252011LorillardTobaccoCo.andR.J.ReynoldsTobaccoCo.ledalawsuitintheUnitedStatesDistrictCourtfortheDistrictofColumbiaagainsttheU.S.FoodandDrugAdministrationandtheU.S.DepartmentofHealthandHumanServicesfordeclaratoryandinjunctiverelief.RegardingthedeclaratoryreliefLorillardTobaccoCo.andR.J.ReynoldsTobaccoCo.arerequestingthecourttodeclarethattheappointmentsofthreeofthemembersoftheFDAsTobaccoProductsScienticAdvisoryCommitteeandthreeofthemembersofasubcommitteewerearbitraryandviolatedfederallawbecausethesemembershavenancialconictsofinterestinthattheyhavebeenemployedinthepastandcontinuetobeemployedasexpertwitnessesinlitigationtotestifyagainsttobaccoproductmanufacturers.Moreoverseveralofthesecommitteemembersserveasconsultantstomanufacturersofnicotine-replacement-therapyproductssuchasnicotinepatchesandnicotinegumandsmoking-cessationproductswhichraisesquestionsaboutordemonstratestheirlackofimpartiality.RegardinginjunctivereliefLorillardTobaccoCo.andR.J.ReynoldsTobaccoCo.arerequestingthecourttoorderthattheDepartmentofHealthandHumanServicesandtheFDAnotbeallowedtoreceiveorrelyinanywayonareportonmentholincigarettesfromtheTobaccoProductsScienticAdvisoryCommittee.ByThomasBrianT