WASHINGTON – As the Senate prepares to mark up S. 1147, the Prevent All Cigarette Trafficking Act (PACT Act), NACS sent a letter to members of the Senate Judiciary Committee on expressing its support for the bill. The markup is scheduled for Thursday at 10:00 a.m. and a live webcast will be available.

“Sales of cigarettes and other tobacco products account for more than 35% of NACS member in-store (non-motor fuel) sales. NACS members collect and remit taxes on these products and follow laws on age verification to sell them responsibly. Unfortunately, many Internet sellers of tobacco products do not follow any of these laws putting NACS members that do collect and remit taxes at a severe competitive disadvantage – in some instances this disadvantage may come to more than $20 per carton. Tax evasion and failure to verify age are common in the context of Internet sales. The state and local revenue losses and the societal costs of the failure of Internet sellers to follow the law are very large and difficult to fully calculate.

“While the Jenkins Act – which makes clear that taxes must be paid for remote sales of cigarettes – has been the law of the land for half a century, it is rarely enforced. This failure by the U.S. Department of Justice is a problem and should be remedied whether or not the PACT Act becomes law. An update in the law is also long overdue. Law enforcement needs better tools to help enforce the law so that Internet sellers verify age and stop evading taxes. S. 1147 provides the Justice Department those tools.

“NACS believes that the states also need the authority to enforce the law against Native American tribal retailers that sell tobacco over the Internet. They are, in fact, a majority of the Internet sellers operating today. Because the revenue losses are principally state revenues, state Attorneys General are better situated (and more motivated) than other prosecutors to pursue these offenses. In our view, state Attorneys General need the authority to enforce the Jenkins Act against tribal sellers. While S. 1147 does not do this, we believe it is a responsible and achievable first step toward enforcing the law on Internet sales. We urge you to vote for when the Committee considers it this week.”

As state lawmakers Tuesday bemoaned losses from untaxed cigarette sales on Indian reservations, an attorney for Gov. David A. Paterson raised the prospect of violence if New York enforces laws aimed at recovering the funds.

Citing State Police, Peter J. Kiernan, counsel to the governor, said it was possible the cost to police of guarding collectors on reservations could surpass the taxes collected.

Native Americans testifying at the all-day hearing at Borough of Manhattan Community College Tuesday, most notably the Seneca Nation, strongly resisted the notion of paying state taxes on the sales to nontribal members. Violent confrontations accompanied two attempts at tax collection by the state in the 1990s.

“A police problem could quickly elevate to a military one,” Kiernan said, adding Paterson is still considering how to move forward. He said the state favors a policy of negotiating a peaceful settlement.

Paterson’s proposed resolution would establish minimum price levels for cigarette and fuel sales, which, if broached, would shift the difference to fund borrowings for infrastructure projects equally benefiting Indian reservations and nearby nontribal lands.

But looming large at Tuesday’s hearing was the state’s budget deficit. Numerous senators cited the shortfall and expressed frustration that existing laws to tax the cigarettes weren’t being enforced. Measures empowering the state to collect the tax, including one signed by Paterson in December, are stalled, either in courts or as a result of negotiations with tribes.

Estimates of state losses from non-native cigarette sales range from $100 million to more than $1 billion annually. Yet costs for law enforcement, should the measures be enforced, could surpass more than $2 million a day, Kiernan said.

Emotions ran high at the hearing of the State Senate committee on investigations and government operations, chaired by state Sen. Craig Johnson (D-Port Washington).

When state Sen. Michael Nozzolio (R-Fayette) told Seneca Indian Nation co-counsel JC Seneca that he would “hope that the nation would not condone violence,” and that Seneca didn’t strike him as someone who would, Seneca said, “You don’t know me very well, do you?”

While he said he was kidding, Seneca went on to mention a mural he said he sees in a state office building when he visits the governor’s office, which he says depicts the killing of an Indian, and said: “You tell me about violence.”

James F. Simermeyer, an attorney for the Poospatuck tribe, based in Mastic, noted it was the “smallest and poorest in New York,” yet had drawn five federal lawsuits and various government enforcement actions. He added the tribe has not been invited to talks to resolve the tax collection. He called on the state to “deal with this tribe in all fairness as it does with other tribes.”

By MARK HARRINGTON mark.harrington@newsday.com, October 27, 2009

The European Society of Cardiology wishes to comment on media reports this week that France is preparing to authorise the sale of cigarettes on the internet, to conform to European rights. Although Budget Minister Eric Woerth denies that this is the intention, the news is disappointing given the drop in heart attack rates following last year’s smoking ban.

ESC spokesperson Professeur Ph.Gabriel STEG (Université Paris VII, Centre Hospitalier Bichat-Claude Bernard, Paris) said :

“While I understand that the alleged motive is that the French government needs to align itself with the European directive and the need to tackle the monopoly of cigarette retail in France, this move contradicts years of health policy to reduce tobacco consumption.

There is clear evidence that an increase in tobacco retail price and restricted access to cigarettes have led to less people smoking, with important health benefits. The government needs to take action to continue its previous policy which tackled smoking as an effective way to improve public health.”

Daily financial newpaper Les Echos broke the news on 14 October, stating that the French government would propose the idea to Parliament in mid-November. Cigarettes would be sold at retail prices in France, to prevent price undercutting on the internet. MP Eric Woerth denied that these are the government’s aims, stating that “tabacco products are unique as they are directly involved in public health policy ; there are no plans to open this sector to a different type of sales market,” as reported on 14 October by Le Monde.

A wave of smoking bans through Europe and the USA during this and last year has led to substantial reductions in heart attack rates, according to a study published last month in Circulation, the journal of the American Heart Association (1).

The analysis pooled 13 studies from regions in North America, Italy, Scotland and Ireland and found a consistent reduced risk of hospitalisation for heart attack (acute myocardial infarction, AMI) of 17% one year after implementation of the law. The investigators found that heart attack figures fell by 36% during the three years following the ban.

Commenting on the Circulation meta-analysis for the European Society of Cardiology, spokesperson Professor Joep Perk from Oskarshamn District Hospital in Sweden said: “”First, what the analysis shows is that the harmful effect of second-hand smoke is much greater than we first imagined. It also shows that the benefits derived from the anti-smoking legislation continue over time in a linear direction.

At the public health level the results strengthen the case for anti-smoking legislation in all jurisdictions. There seems no reason why the EU should not now advocate strong legislation in all member states. Studies like these strengthen the case for preventive cardiology.”

In the UK, an amendment to the government’s Health Bill has been proposed this month, which would outlaw cigarette vending machines in England, Wales and Northern Ireland.

The European Society of Cardiology together with other health institutions has continuously informed the public of the overwhelming evidence of the adverse effect of smoking on cardiovascular health. The European Guidelines on CVD prevention warn that smoking is responsible for 50% of all avoidable deaths and that smoking causes heart attacks at any age.

“Although cardiovascular diseases are very complex in nature and due to many causes, smoking is one of the major contributors and smoking bans have certainly caused a reduction in coronary events in Italy. This has been documented in an article published in Circulation (2) where the rate of reduction of coronary events was consistent with the pollution reduction observed in indoor public places. I believe that this is clearly confirming that prevention is not only a task for doctors, but also for society and politicians,” explains Roberto Ferrari, President Elect of the ESC.

Source:
ESC Press Office
European Society of Cardiology

Seeing cigarettes for sale increases the likelihood of a person smoking within a four hour period by more than 25 per cent, research has revealed today (9 Oct) at the Oceania Tobacco Control Conference in Darwin.

Researchers from Macquarie University, led by Associate Professor Suzan Burton, examined the factors that lead to smokers relapsing, with findings confirming beliefs that tobacco displays are a major barrier for smokers trying to kick the habit.

“Tobacco displays at point of purchase are a key reason that smokers attempting to quit are unsuccessful,” Professor Burton said. “Even if the person doesn’t actually buy a packet of cigarettes, they are still 25 per cent more likely to smoke within any four hour period if they see a tobacco display.

“Our research also suggests that people who are trying to quit are particularly likely to be influenced to smoke and to buy cigarettes after seeing them displayed within the first month of quitting.”

Associate Professor Burton said the research also revealed some interesting buying habits of smokers.

“It is well known that supermarkets are the most common place for people to buy cigarettes. However, people who are trying to quit smoking and lighter smokers are more likely than regular smokers to buy cigarettes while out in pubs and clubs. This is due to the fact that they can see the cigarettes for sale, see other people smoking and are usually drinking alcohol – factors that combine to create a very challenging situation for a recent quitter.”

Cancer Council Australia Chief Executive Officer, Professor Ian Olver, said point-of-sale displays of tobacco products were one of the last remaining forms of tobacco advertising and it was critical that they were removed.

“Currently the ACT, NSW, Tasmania and Victoria have all legislated to end tobacco displays in shops, with the legislation varying slightly from state to state,” Professor Olver said.

“Western Australia, the Northern Territory and Queensland are all making moves toward implementing a ban, but South Australia is yet to show its support for the measure.”

“The evidence is clear – removing tobacco displays is a key priority for tobacco control.”

09 October 2009

This may have be an issue that upstate Republicans have historically taken a lead on but with un-taxed Native American tobacco sales now creating a stir on Long Island and with Democrats in charge of the Senate, Craig Johnson, is jumping into it as well.

The Nassau County Democrat who chairs the Committee on Investigations and Government Operations, is planning a hearing Oct. 27 at Manhattan Community College. ( Untaxed cigarettes are also of concern to New York City health officials, I’m told, as a good deal of the product sold on Long Island, such as on the Poospatuck reservation, ends up in the city).

See the full release:

The Senate Standing Committee on Investigations & Government Operations will be holding a hearing on the state’s inability to collect taxes from cigarettes sold to Non-Native Americans that originate from Indian Reservations Oct. 27 at Manhattan Community College, the committee’s chairman, Senator Craig M. Johnson announced.

The hearing will begin 10:30 a.m. at the college’s Richard Harris Terrace Building, 199 Chambers St., New York, NY.

“The failure to secure this badly needed revenue continues as other states – most recently Florida – have been able to reach tax collection agreements with their local Native American nations,” Senator Johnson, (D-Nassau), said. “This committee wants to be helpful in crafting a solution to this problem, but first we – and the public – need to be apprised of where the state and the nations stand.”

According to the state Office of the Budget, the failure to collect this revenue is costing New York $65 million this year.

Years after the courts affirmed a state’s right to collect taxes generated by the sale of cigarettes by Native Americans to non-Native Americans at licensed “smokeshops” and over the Internet, the state Department of Taxation and Finance has been stymied in its tax collection efforts. This non-collection issue persists despite a law passed last year that required these taxes to be collected.

There has also been concern that the current situation has made it easier for criminal activities, such as bootlegging and the sale of counterfeit cigarettes, to flourish. Recently, the United States Attorney for the Eastern District of New York has pursued suspected cigarette smugglers associated with the Poospatuck Tribe. This network’s alleged ringleader, Rodney Morrison, is currently facing serious criminal charges in federal court.

The hearing will be live streamed on the Senate’s Web site, www.nysenate.gov

By Dustin Evans
The Tennessee Board of Regents is set to vote Sept. 25 on a revision that would officially ban the sale of tobacco products on its campuses – a ban that would only affect MTSU, the last TBR university to continue tobacco sales.

MTSU previously asked Dwight’s Mini Mart to cease its tobacco sales last spring, but retracted its request following public protest and concerns addressed by the vendor, Dwight Johnson.

“I’m sure that they are trying to do what is best for the majority of people,” Johnson said. “I know there are some detrimental effects of tobacco, but the only thing I see is that in our country, people should have a choice. Those that choose to harm their body – it’s up to them.”

Johnson said 40 percent of his profits come from tobacco products, but he plans to find other products to take its place if the ban is passed. He said he is considering offering cessation patches and gum, health foods or other products beneficial to healthy living as a replacement to the tobacco products.

“If it becomes a policy, then we want to abide by it,” Johnson said.

Mary Morgan, director of communications for TBR, said the TBR had no role in the institution of the ban. She also said the TBR had no previous policy to mandate the sale of the product, but the vote is taking place because it is the right thing to do as an educational institution.

“We have a higher responsibility to protect our students’ health and set an example,” Morgan said. “Research overwhelmingly indicates that tobacco use is not only harmful to the health of the users, but it is bad for people in the vicinity.”

Brittany Slate, a sophomore pre-nursing major, said while she has purchased tobacco products on campus occasionally, she won’t notice a major change.

“It’s like taking smoking out of restaurants – it’s taking people’s right away to smoke,” Slate said. “They may think it might cause people not to smoke, but if people really want to smoke – they will find cigarettes.”

Copyright © 2009 Mtsusidelines
Dustin Evans
Assistant News Editor
Community News
MTSU Sidelines
slstate@mtsu.edu

In the last year, Florida cigarette sales have decreased by 28 percent.

According to Florida’s Department of Business and Professional Regulation, 76.8 million packs of cigarettes were sold between July 2008 and 2009 — down from 106.6 million the previous year.

The new dollar-a-pack tax implemented in June has also taken a toll — sales from June to July of this year went down 17 percent, according to the report.

“It’s because of the new tax,” said Matt Pritchett, a UF sophomore. “People just don’t want to pay it.”

Sunoco employee Doug said he has seen a recent decrease in sales but not a significant drop.

“People are still smoking, still buying,” Doug said. “We still have our regular customers come in and buy cigarettes from us.”

Amy Patel, manager of BP, East University Avenue, said people are more upset about losing flavored cigarettes than about the tax, and sales haven’t been affected.

“We haven’t had a problem, not with the students here,” Patel said. “Students will always buy what they want.”

But Pritchett said he knows some people who have quit because of the price increase.

He is also trying to cut back, he said, and now rolls most of his cigarettes because it’s cheaper.

Pritchett isn’t against the tax, though.

“It’s better to tax cigarettes than cut schools or tax food,” Pritchett said. “It’s a sin tax, can’t really complain about it.”

SAN FRANCISCO — A federal appeals court Wednesday rejected a Philip Morris USA Inc. challenge to the city of San Francisco’s ban on tobacco sales in pharmacies.

A three-judge panel of the 9th U.S. Circuit Court of Appeals unanimously turned down the cigarette maker’s claim the law violated its right to free speech by curtailing its advertising.

Chief Judge Alex Kozinski wrote in a brief four-paragraph ruling that the city law only “limits where cigarettes may be sold; it doesn’t prevent plaintiff from advertising.”

Kozinski wrote that while advertising is a form of free speech, “Selling cigarettes isn’t.”

The San Francisco law, the first of its kind in the nation, went into effect last year.

Virginia-based Philip Morris, the nation’s largest tobacco company, argued that while the measure didn’t directly prohibit advertising in pharmacies, it had “the purpose and effect” of doing so.

The appeals court affirmed a decision in which U.S. District Judge Claudia Wilken of Oakland upheld the law last year.

The ruling could be appealed to the U.S. Supreme Court.

Philip Morris spokesman Jack Marshall said Wednesday evening, “We’re reviewing our options.”
Advertisement
Marshall said, “While we’re disappointed with today’s ruling, we continue to believe that the purpose and effect of the law is to suppress communications directed to adults in violation of our constitutional rights.” A separate challenge to the law was filed in the state court system by Walgreen Co., which claims the law is unfair because it applies to pharmacies but not to grocery stores and so-called “big box” stores that contain pharmacies.

Walgreen lost its case before a San Francisco Superior Court judge and is now appealing to a state appeals court.

The rationale for the law, according to Board of Supervisors’ findings incorporated into the ordinance, is that tobacco is dangerous to health and that pharmacies, which most customers visit for health services, give “tacit approval” to tobacco if they sell it.

© Copyright: Sep 10, 2009 Mercurynews

The Iowa police department is offering a training class on how to refuse tobacco sales to minors for local tobacco retailers.

The Pledge Retailer Certification Class is at 6 p.m. July 22 at West Burlington City Hall, 122 Broadway St.

The class Class to train tobacco retailers will teach clerks the basics of tobacco laws in Iowa and the fundamentals of drivers license evaluation, situational evaluation and age verification.

Registration for the free two-hour class is available only at the Iowa Alcoholic Beverages Division Web site, www.iowaabd.com

Clerks who attend the class and pass an online test will receive a certificate valid for two years. Retailers can use this certification as a defense against a civil penalty once in a four-year period if a certified clerk sells tobacco to a minor.

The Union government told the Bombay high court that it will issue a notification banning the sale of tobacco and cigarettes
products near national educational institutions. A division bench of Justice S C Dharmadhikari and Chief Justice Swatanter Kumar were hearing a public interest litigation filed by activist Sumaira Abdulali against the sale of tobacco and cigarettes pruducts to minors.

Section 6 A of the Tobacco Products Act, prohibits the sale of cigarettes products to minors. The Centre has already notified this provision. However, another provision-6B-of the Act, which prohibits selling of cigarettes and other tobacco products within 100 mts of educational institutions, is yet to be notified.

A federal court judge has upheld an arrangement between Washington state and the Squaxin Island Tribe that allows cigarette sales at Frank’s Landing, a small Indian community between Fort Lewis and Olympia.

For years a smoke shop at Frank’s Landing illegally sold untaxed cigarettes. But after federal agents raided it in 2007, the community agreed to lease the shop to the Squaxins, who had authority to tax cigarette sales and use the money for local projects.

Gov. Chris Gregoire formalized the arrangement by amending the state’s tobacco compact with the Sqauxins. That upset the nearby Nisqually Tribe, which argued that Frank’s Landing was undercutting its own cigarette sales.

The Nisquallys sued, arguing that Frank’s Landing didn’t have authority to enter into the agreement. U.S. District Judge Ronald B. Leighton disagreed in a ruling issued Wednesday, saying the arrangement broke no laws.

State revenue experts are blaming a recent increase in federal cigarette taxes for a big drop state tax collections.

Mike Lipsman at the Department of Revenue says cigarette sales dropped by double digits in the months after the federal tax hike, pushing cigarette taxes down for the year by about 6%.

He admits that several events last year could have pushed cigarette sales down. “We had the smoking ban that went into July 1st last year, then January 1st you had the new requirement for firesafe cigarettes, then on April 1 we had the federal tax increase,” Lipsman said. “Through December, we had a slight increase in tax receipts.”

Lipsman says that slight increase shows the ban on smoking in public places did not affect cigarette sales. He believes the 62-cent hike in the federal tax is what really pushed sales down, here and across the country. “When we did our state increase, people could go to Missouri to get cigarettes. Well, unless you’re going to go to another country, it’s really hard to avoid a federal tax increase,” Lipsman said.

The 6% dip in cigarette tax collections amounts to a hit on the state treasury of about $14-million. State health officials say the federal tax hike led to a threefold rise in the number of Iowans seeking help to quit smoking.

Starting Aug. 15, retail stores will no longer be able to display products accessible to customers, under a bill that Gov. Bobby Jindal has signed into law.

House Bill 368 by Rep. Roy Burrell, D-Shreveport, prohibits retailers from having “self-service displays” of tobacco products. It requires all tobacco products to be sold from behind counters or from locked display cases as well as vending machines in the line of sight of a store clerk.

Burrell said similar laws are in effect in 22 other states, including Texas. Besides preventing underage smokers easy access to a product that can harm their health, Burrell said during the recently ended session that “many of these kids have (criminal) records that start with shoplifting cigarettes.”

The new law exempts retail tobacco specialty stores where at least 50 percent of the sales come from tobacco products. Many retailers already sell the products from behind counters, but Burrell said his bill is designed to address those that do not.

Jindal also signed into law House Bill 574 by Rep. Cedric Richmond, D-New Orleans, authorizing the judges of Orleans Parish Criminal District Court to designate at least one specialized court section to handle homicide cases and other serious criminal offenses. The bill took effect when Jindal signed it Tuesday .

The bill authorizes the incumbent judges on the bench as of Aug. 15 to meet as an entire court to decide whether to adopt a rule to name at least one judge to handle homicide cases. If the section is created, it would handle cases such as first- and second-degree murder, solicitation for murder, manslaughter, feticide, assault by drive-by shooting, aggravated assault upon a police officer with a firearm, aggravated assault with a firearm and other crimes dealing with firearms.

The bill started out requiring the judges to create the special section but was amended to allow the judges to form it.


Copyright © 2009 Nola

In an annual shareholders meeting featuring Walmart’s usual blend of celebrity spokespersons and revivalist atmosphere, the world’s largest retailer reveled in its strong performance during the recession and promised further improvements in store merchandise and store aesthetics. The meeting was broadcast on the company’s Web site at www.walmart.com.

Of most interest to convenience store operators were two comments by Eduardo Castro-Wright, vice chairman, concerning the retailer’s sale of tobacco products and its Marketside convenience/grocery hybrid concept, currently being tested in the southwestern U.S.

In the usual media question period following the annual meeting, Castro-Wright said the company has considered—and would continue to consider—eliminating tobacco products from its stores. The retailer, which in recent years has become more sensitive about its public image, acknowledges selling tobacco conflicts with Walmart’s increased emphasis on health. However, Castro-Wright also emphasized that at Walmart, “first and foremost, we service customers,” which means selling them what they want to buy. “It is an issue we debate constantly,” he said.

If Walmart, like many other grocery retailers, were to abandon tobacco sales, convenience stores would stand to pick up a significant amount of that volume—a welcome boost to a category that is critically important, but declining, at c-stores.

Castro-Wright also said the company has no plans to expand its Marketside concept at this point. After testing the concept in the Phoenix market, the Walmart executive admitted consumer demand for the convenience/grocery hybrid is not as great as expected and that the company would not be “accelerating the effort until we are in a better position to make a decision.”

The news follows the recent announcement by British supermarket powerhouse, Tesco, that it would postpone expansion of its similar convenience/grocery hybrid, which debuted about a year before Walmart’s.

On a more positive note, comedian Ben Stiller entertained the 16,000 investors, employees, analysts and media types who attended the meeting at the Bud Walton arena at the University of Arkansas. “They’re still sleeping at Target,” noted Stiller, a reference to the 7 a.m. start time of the meeting.

In addition to cheerleaders, marching bands and dancers, there were performances by Miley Cyrus (who is working with Walmart to develop an exclusive line of budget clothing for girls), ’50s pop singer Smokey Robinson, and “American Idol” winner and Arkansas native Kris Allen.

The company had plenty to cheer about as sales, profits and market share are up amid a national and worldwide recession. The retailer’s “save money, live better” tagline was cheered every time it was mentioned by executives, which was often.

Most analysts agree Walmart’s emphasis on low prices has helped it distance itself from its competition. The company also stressed it is making improvements in its merchandise, such as the new Miley Cyrus collection, as well as remodeling stores so it can hold on to its new customers when the recession ends.
Copyright © 2009 Csnews

A fight about selling tobacco products in drugstores has flared up.

The City passed a law in 2008 that banned drugstores such as  Walgreens and Rite-Aid from selling tobacco products.

The company sued, but in a judge denied the lawsuit, leading to an appeal.

“Basically the way the ordinance is written now, big-box stores and supermarkets that operate pharmacies can still sell cigarettes, and that’s not fair because it singles us out,” Walgreen Co. spokesman Robert Elfinger said.

The City fired back Wednesday with a 39-page brief.

“Consumers reasonably expect drugstores to serve their health needs, not to enable their deadliest habits,” said City Attorney Dennis


Copyright © 2009 Sfexaminer