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Juul

We could have had an excise tax on e-cigarettes

But then Greg Abbott got involved.

At the urging of the nation’s biggest tobacco company, Gov. Greg Abbott launched a late-hour push to change Texas legislation creating a 10% state retail excise tax on e-cigarette and vapor smoking products.

That bill died in House action Thursday night due to a legislative maneuver, known as a point of order, offered by Republican Rep. Jonathan Stickland of Bedford. It has no realistic chance of revival because of legislative deadlines and the mandate that tax measures originate in the House, not the Senate.

Stickland said Friday his aides spotted the technical error and he pointed it out in the House out of concern about ladling taxes on e-cigarettes and vape products.

“A lot of people have used e-cigarettes to quit other bad habits,” Stickland said Friday. “It’s just a freedom issue for me. I think that taxes are theft.”

After the bill’s death, Dallas Democrat Nathan Johnson, the author of the Senate version of the bill, said in a text message: “I’m disappointed, to say the least. This bill would protect kids and save public costs. It had overwhelming support in the House.”

Critics said earlier that Abbott’s late move — targeting a bill touted as deterring youths from buying addictive e-cigs — would effectively ease taxation of products such as Juul pods that concentrate nicotine in not much liquid.

[…]

Abbott’s suggested changes would have scrapped a proposed first-in-the-nation retail tax predicted to generate about $20 million a year for public education. Instead, Texas would tax vape products at the wholesale level at five cents per milliliter of “consumable liquid solution.”

Four states — Delaware, Kansas, Louisiana and North Carolina — tax vape products at five cents per milliliter, according to the Campaign for Tobacco-Free Kids, with New Jersey and West Virginia levying higher rates.

The Abbott-backed changes also would have put a $1 per ounce tax on every initial sale of heated tobacco products, which produce an inhalable aerosol primarily by heating, not burning, tobacco. The FDA authorized U.S. sales of the products, made by Philip Morris International, late last month. Corey Henry of Philip Morris International said in an email that the product will be commercialized by Altria in the U.S. through a licensing agreement.

Proceeds from the double-barreled tax were to help fund public schools.

Rob Crane, an Ohio State University physician who heads the Preventing Tobacco Addiction Foundation, said in an email that the resulting e-cig tax would have been so light, it would make “no difference” to children or adults considering purchases of such nicotine delivery products.

The first link in the story gives some background on the bill, as it was and what it was intended for. I confess, I wasn’t aware of any of this before I read the story, so I don’t have much to add beyond what you can read at the two links. Mostly, this is a reminder of why it’s hard to pass bills in the Lege. Time is against you, there are many veto points, and the closer you get to the end of the session the easier it is kill things. All you can do is note how far you got this time, and vow to try again in two years.

Raising the smoking age

I’m fine with this.

A long-stalled push to raise the minimum age for buying tobacco and e-cigarettes in Texas has a puff of momentum, thanks to early hearings in both chambers, strong support from Lt. Gov. Dan Patrick and a surprising and quiet change of position by one of Big Tobacco’s leading corporations.

GOP leaders of powerful committees in the House and Senate are again lead authors of proposals that would raise the legal age for buying cigarettes, other tobacco products and e-cigarettes from 18 to 21. Since 2007, such proposals have failed to pass into law for lack of support from Republicans who control the Legislature.

But there’s another new twist: Big Tobacco registering support for raising the legal age for buying smokes. Altria, the nation’s largest tobacco company, “supports raising the minimum age to purchase tobacco products to twenty-one.” and encourages the Texas Legislature to enact the proposal “without delay,” an Altria Client Services executive, Jennifer Hunter, said in written testimony submitted to the House Committee on Public Health this month.

Hunter’s statement did not acknowledge that Altria, which makes Marlboro cigarettes and owns a stake in Juul, the leading maker of e-cigarettes, opposed a similar Texas proposal during the 2017 session. That year, an age-hiking measure offered by Republican Rep. John Zerwas, a Richmond physician, died short of House consideration.

Hunter’s statement said FDA Commissioner Scott Gottlieb’s 2018 call to address a national surge in the use of e-vapor products among 12- to 17-year-olds led Altria to “believe the time has come to enact legislation” raising the legal purchasing age to 21.

“We are supporting this step because we believe it is the most effective step available to reverse rising underage e-vapor rate,” Altria’s statement said. “Data shows that youth under eighteen get tobacco products — including e-vapor — primarily through ‘social access,’ that is, from friends or siblings who are” 18 or older, Hunter said.

Hunter added: “By raising the minimum age to twenty-one, no high school student should be able to purchase tobacco products legally.”

[…]

Several vape shopkeepers urged the House panel to reject the change in age while Schell Hammell of the Smoke-Free Alternatives Trade Association — which has as a slogan, “Saving Vaping Every Day” — said the group hopes lawmakers clarify the ability of local jurisdictions to regulate sales.

In 2017, Zerwas, who chairs the budget-drafting House Appropriations Committee, shrugged off criticisms of the raise-the-age proposal.

“There’s obviously some people who are going to see this as an infringement on rights and stuff, and those voices need to be heard,” Zerwas said then. “And yeah, that’s a loss of potential revenue, but one we can probably make up somewhere else.

“What’s more important than the health of our youth and future generations?”

Multiple individuals told the Senate panel Monday that the move to raise the age is a bad idea, particularly because the change would incongruously keep young men and women who risk their lives by enlisting in the military from being able to make their own choices to use cigarettes and e-cigs.

That’s the one argument that has any merit, in my opinion. Eighteen isn’t universal, however, as the drinking age can attest. The very clear health benefits of a 21-year smoking age versus an 18-year smoking age is more than enough to outweigh the philosophical objections. According to the Chron, one of these bills – SB21 in the Senate, HB749 in the House – has a solid chance of passing. I’m rooting for them.