May 3, 2017
Vapor News and Views
News and views on vapor tax and regulatory issues from across the United States. The best way to stay up to date with what's happening in Washington and in your state capitol.
Folks,
It was a gallant effort but at the end of the day, Democrat leaders held their party strong to prevent Cole-Bishop from being a part of the FY17 spending package. A day later the FDA delayed filing deadlines by 3 months. So, what's next and will this industry meet its demise or not? Read on!
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Paul Blair
Strategic Initiatives Director
Americans for Tax Reform
What Happened with Cole-Bishop?
Despite the GOP controlling the House, Senate, and White House, Democrats still had a hand to play in all omnibus budget decisions. With a 60-vote requirement in the Senate for a spending package, Republicans needed every one of their members and eight Democrats to sign off on something like Cole-Bishop to be a part of the omnibus. House Minority Leader Nancy Pelosi (D-Calif.) and Senate Minority Leader Chuck Schumer (D-N.Y.) said from day one that Trump’s and many of the Republicans' priorities were a non-starter for their entire caucus and would encounter unanimous opposition, leading to a government shutdown if any of them were included and any Republicans also caved. In not achieving many Trump/GOP objectives in the budget, Democrats were willing to support it, some Republicans broke away, and on policy provisions the bill moved Left. This meant GOP leadership needed more and more Democrats who could and did demand more pounds of flesh. Cole-Bishop was just that.
From the
Democrat House Appropriators, taking pride in killing the effort to modernize the predicate date.
- "The Omnibus does not include a House provision allowing thousands of unregulated tobacco products to escape full FDA review. The House provision would have exempted e-cigarettes, little cigars, cigarillos, hookah, cigars and other products from the Tobacco Control Act’s pre-market review requirement, allowing products to escape regulations and requirements that Congress enacted to protect the public health from the nation’s leading preventable cause of death."
Give me a break.
Michelle Minton at the Competitive Enterprise Institute writes here on the subject and
I write on the subject here.
Look, there are Democrat allies in this fight and there has been a growing and successful effort by businesses and consumers to expand the coalition of Congressional supporters. That being said, it's silly to ignore the fact that GOP House and Senate leadership and GOP caucus would have made this happen if Democrats weren't empowered to derail the effort. The anti-vaping tobacco control extremists (leaders) in the Democrat party are the reason we've yet to succeed on a legislative front.
The Time for Administrative Action is Now
One day after GOP and Democrat leaders rolled out the FY17 budget that did not include the Cole-Bishop language to rein in part of the FDA's overreach, the FDA (essentially) delayed all future filing deadlines by 90 days. The extension pertains to major deadlines such as manufacturer submission of future warning label plans, registration and listing, health documents, Substantial Equivalence (SE) exemption requests and applications, Premarket Tobacco Product Applications (PMTAs), and Harmful and Potentially Harmful Constituent reports.
Check out this article from Cigar Aficionado for a more thorough explanation.
"This extension will allow new leadership at the FDA and the Department of Health and Human Services additional time to more fully consider issues raised by the final rule that are now the subject of multiple lawsuits in federal court,” stated Lindsay R. Tobias, an FDA policy analyst.
This is a temporary stay of execution but my hope is that it's a sign of what's to come. Once Dr. Scott Gottlieb is confirmed as the next Commissioner of the FDA, it will be of the upmost importance that HHS/FDA immediately delay all future deadlines even further, by at least two years. His confirmation may come as soon as mid-May and this isn't an issue he or Secretary Price are unfamiliar with. There's no learning curve on this issue, as numerous organizations and businesses have already put in that effort. This is plain and simple.
As the FDA devises more appropriate guidelines for the industry, it must give Congress more time to figure out a short and longer term solution to the unworkable nature of the Tobacco Control Act's regulatory requirements for the vapor industry.
The Future isn't Filled with Binary Choices
There's been a lot of chatter recently about a number of alternative approaches to preventing Prohibition Day from hitting the vapor industry and its millions of U.S. consumers. Cole-Bishop, as part of the FY17 budget, obviously was the first and most important element of this fight. So let's examine other and future options:
- Cole-Bishop 2.0: An effort to get the CB language in the FY18 budget is important because budgets are "must-pass" pieces of legislation. Budgets have to pass, compared to stand-alone bills that Congressional committees don't have any obligation to consider. The consequences of not passing a budget is a government shutdown; the consequence of not passing a policy bill is less significant (politically).
- House Resolution 1136: Obtaining more co-sponsors for H.R. 1136, which is essentially the '17 CB appropriations language in stand-alone bill form, helps us make the case that there is growing and broad support in Democrat and Republican circles to make a predicate date change happen. As of today, this bill has 57 co-sponsors, including 6 Democrats (Bishop, Clay, Peterson, Costa, Cuellar, Peters). The focus from businesses, consumers, and interested organizations should be urging support for this bill.
- The Cigarette Smoking Reduction and Electronic Vapor Alternatives Act: Congressman Duncan Hunter's H.R. 2194 is an important marker of where this fight could go in the future. The legislation essentially removes the requirement that manufacturers of vapor products obtain permission from the FDA to introduce new products while at the same time establishing a pathway for manufacturing standards for liquids and devices over the coming years. It's been assigned to the Energy and Commerce Committee.
As the American Vaping Association's
Gregory Conley said of H.R. 2194, "I certainly would like to see this bill become law. But in all likelihood, this is a bill that is going to be a great conversation-starter to talk about where we should go in the future." I agree.
In order of priorities, given the political reality associated with how Congress currently functions, the path forward is relatively clear but not entirely binary. CB language needs to get into the FY18 budget, simply because it's must-pass legislation. H.R. 1136 helps with that effort because it gets folks on the record early. The Hunter bill is a good start for the ongoing conversation about where the regulatory discussion heads next. It forces questions such as, "Is the Tobacco Control Act's current regulatory structure most appropriate for the regulation of vapor products?" and "Can hesitant activists at the Center for Tobacco Products be trusted to ever approve innovative 'tobacco' products in a timely and non-burdensome way?" As of now, the answer to both questions is no.
But our legislative options going forward aren't limited; they're open-ended. I remain optimistic that we'll achieve success.
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Paul Blair | Americans for Tax Reform | 202-785-0266 |
pblair@atr.org |
www.atr.org