April 11, 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.
Greetings from Albuquerque, New Mexico!
This is an extremely important time in the nation's capital. Though Congress is on recess for two weeks, major decisions on and the finishing touches to the 2017 federal budget are being made right now. Additionally, last Wednesday's confirmation hearing of Scott Gottlieb to lead the FDA revealed what some of us have known for some time...
He's our team.
Would you be interested in listening to a 30-minute semi-regular podcast on tobacco harm reduction? The politics, the public policy, and the progress being made in the name of freedom and consumer choice. If so, what sort of things would you be interested in hearing about? Email me at
pblair@atr.org to share your thoughts.
Additionally, I'd be remiss if I didn't point out that it's tax season. Check out
our website for a lot more information on what's going on in the tax and regulatory world outside of vaping! While working to achieve regulatory relief for the vapor industry and its millions of consumers, ATR is also working hard this year to get Big League tax cuts for you, your families, your businesses, and your annoying neighbors. Real big.
You have until April 18th to file this year.
--
Paul Blair
Strategic Initiatives Director
Americans for Tax Reform
Cole-Bishop Actually Under Consideration This Month
It might be recess, but it's also decision time for appropriators regarding the inclusion of the Cole-Bishop language in the FY17 budget. That's because some sort of budget that funds the government must pass before the end of April.
As many of you know, the House's 2016 Cole-Bishop policy rider push was punted into this year after last year's elections when Congress decided to pass what is known as a "clean" Continuing Resolution, or C.R. Passing clean budgets equates to funding the government to keep it open while preventing debate or the consideration of amendments, language, or riders that may result in controversial shifts in legislative, administrative, or agency policies. Cole-Bishop is an agency policy change amendment to an individual appropriation bill, so it doesn't get consideration in a clean CR.
Unless a handful of House and Senate Democrats agree to include the Cole-Bishop language in a broader budget, it dies. No one in Congress is shutting down the government over this issue.
So, what might happen this month?
- Republican Speaker Paul Ryan, Maj. Leader Mitch McConnell, and other GOP leaders assess the best way forward to avoid a government shutdown while POSSIBLY passing individual appropriations bills (several at least together, definitely not them all);
- The appropriate committees provide their language, funding levels, and priorities to leaders & their colleagues for somewhat of a consensus (already mostly due);
- If an agreement can be made over most individual appropriations bills, they'll pass an omnibus package that throws the bills together, including quite possibly the Agriculture Bill;
- One rumor suggests that the Senate is taking the lead on this fight as House factions between moderates, conservatives, and process-oriented objectors makes things... difficult;
- If a debate over things like ensuring continued funding of Planned Parenthood (Democrat priority) and funding The Wall (Trump priority) derails this whole thing...
- They pass another clean or short term CR. (Cole-Bishop is punted until the next train departs the station). Note: this is not the desire of GOP leadership.
My last premium newsletter for subscribers and ATR supporters did an even deeper dive of this process and was out a week ago. What else might you be missing?
Anyways, if you have made a phone call to or emailed your member of Congress and both of your Senators, thank you for your leadership,
but please do it again. If you have not, why are you reading this email? These next two weeks are also the best time to set up a meeting with your member of Congress while they are home. Email me if you need suggestions on the best way to do that.
Scott Gottlieb the Right Choice to Lead the FDA
Regular readers of this newsletter know that I've been a supporter of Scott Gottlieb to lead the FDA since Trump's victory in November.
His confirmation hearing before the Senate Committee on Health, Education, Labor and Pensions (HELP) last week provided a preview of the coming culture shift at the agency in the realm of tobacco harm reduction and the embrace of vapor products in the United States. Here are a few highlights that underscore his commitment to harm reduction:
- In his introduction: "In areas where there’s an inherent, obvious, and seemingly unavoidable risk related to certain consumer products – whether its combustible tobacco or dangerously addictive opioid drugs – we have the opportunity to help consumers move to less risky alternatives."
- "I think Congress had great foresight in envisioning the opportunity for reduced harm products to transition smokers off of combustible tobacco onto reduced harm products," he said, when asked by Senator Bill Cassidy about shifting consumers towards reduced harm products.
But what about flavors? Nearly every vape shop will tell you their most popular products for adult customers are fruit flavored. How does this relate to the current or potentially new regulatory treatment of the product category overall by the FDA? In a brief back and forth with Senator Patty Murray (D-Wash.) on youth use and the types of available products, Gottlieb provided some very telling answers to questions posed to him on these subjects.
- Murray: "While the Tobacco Control Act prohibited fruit and candy flavored cigarettes, flavored e-cigarettes and cigars have flooded the market in recent years. E-cigarettes are now available in thousands of flavors... Do you commit to wholeheartedly addressing the clear public health risk posed by flavored e-cigarettes and cigars by resisting industry pressure to weaken the so-called Deeming Rule, which brought e-cigarettes and cigars under FDA's authority?"
- Gottlieb: "These are empirical questions about when a reduced harm product can be a useful tool for transitioning people off of combustible cigarettes onto a reduced harm product and when they might be a gateway towards adolescent smoking. In a properly constructed, properly overseen regulatory process, we should have the capacity under the authorities Congress gave to the agency to make these determinations. I'm committed to trying to make that work."
- My Take: The FDA could have banned flavors last year.This is an important question because TCA gives FDA the authority to regulate the availability of flavored "tobacco" products. Gottlieb clearly opposes a national flavor ban on vapor products because they may be effective smoking cessation products. Additionally, he seems to agree that the current Deeming Rule did not create a "properly constructed, properly overseen regulatory process." The head of the FDA/CTP created a bad rule and its implementation is being poorly overseen. Full stop.
- Gottlieb's Money Quote: "There should be reduced harm products available to consumers to transition them off of combustible cigarettes." This will not be the case absent a Congressional change to the predicate date or immediate regulatory relief from HHS/FDA.
Hearing Summarized: Scott Gottlieb supports the continued availability of flavored vapor products. He seems to indicate the Deeming Rule is not a properly constructed rule, in part because it does not honor the intent of Congress in addressing or acknowledging the availability of reduced risk products on the market. And he believes there is a line between the potential for products to be smoking cessation tools and merely products that might be used for consumer enjoyment (see: silly named vapor products on the market.) Gottlieb is our team.
Keep the faith. Things are going to get better.
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Paul Blair | Americans for Tax Reform | 202-785-0266 |
pblair@atr.org |
www.atr.org