Tobacco.org

• FDA Warns Companies against Marketing Illegal Flavored Cigarettes 

The U.S. Food and Drug Administration is enforcing the flavored cigarette ban provision of the Family Smoking Prevention and Tobacco Control Act (Tobacco Control Act) by issuing several warning letters to companies continuing to sell illegal flavored cigarettes to consumers in the United States through their Web sites.

The warning letters directed the companies to cease the marketing and sale of these products immediately or to take other appropriate action to bring the products into compliance with the law. Failure to do so may result in additional regulatory actions such as seizure or injunction. In addition, FDA requested a written response from each of the companies within 15 days outlining the corrective actions taken.

Enforcement of the flavored cigarette ban is FDA’s effort to remove cigarettes that contain certain candy or fruit flavors from the marketplace. Removal of these products from the market will assist in the prevention of children and adolescents from starting to smoke and in the reduction in death and disease caused by smoking.

“FDA takes the enforcement of this flavored cigarette ban seriously,” said Lawrence R. Deyton, M.S.P.H, M.D., director of FDA’s Center for Tobacco Products. These actions should send a clear message to those who continue to break the law that FDA will take necessary actions to protect our children from initiating tobacco use.” . . .

Report possible violations of the flavored cigarette ban: www.fda.gov/flavoredtobacco

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EXHIBIT A / ORDINANCE NO. 24,105, 2009 (PDF) 

AN ORDINANCE

AMENDING TITLE VI SLCRO 1974 AS AMENDED, "PUBLIC HEALTH AND WELFARE," BY ENACTING AND ADDING THERETO ONE NEW CHAPTER TO BE KNOWN AS CHAPTER 605, "INDOOR CLEAN AIR CODE."

BE IT ENACTED BY THE PEOPLE OF ST. LOUIS COUNTY, MISSOURI, AS FOLLOWS:

SECTION 1. Title VI SLCRO 1974 as amended, "Public Health and Welfare," is amended by enacting and adding thereto one new chapter which shall be known as Chapter 605, "Indoor Clean Air Code," and shall read as follows:

605.010 Scope. - In order to enhance the public health and prevent the entrance of disease in St. Louis County, the provisions of this chapter shall apply in all unincorporated parts of St. Louis County and in all incorporated areas except any municipality having a population of 75,000 or more people and which maintains an organized health department. . . .

SECTION 2. This ordinance shall become effective on January 2, 2011.

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• SUMMARY REPORT GENERAL ELECTION  

SUMMARY REPORT

GENERAL ELECTION

UNOFFICIAL RESULTS . . .

ST. LOUIS COUNTY-PROPOSITION N

**PROHIBITION OF SMOKING**

(Vote for ) 1

(WITH 479 OF 480 PRECINCTS COUNTED 99.79%)

YES . . . . . . . . . . . . 89,405 65.39

NO. . . . . . . . . . . . . 47,313 34.61

KIRKWOOD-PROPOSITION 1

**PROHIBITION OF SMOKING**

(Vote for ) 1

(WITH 15 OF 15 PRECINCTS COUNTED)

YES . . . . . . . . . . . . 4,628 65.24

NO. . . . . . . . . . . . . 2,466 34.76

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• November 4 Election Results 

SUMMARY REPORT . . .

VOTES PERCENT

PRECINCTS COUNTED (OF 480). . . . . 211 43.96

REGISTERED VOTERS - TOTAL . . . . . 705,716

BALLOTS CAST - TOTAL. . . . . . . 64,021

VOTER TURNOUT - TOTAL . . . . . . 9.07

ST. LOUIS COUNTY-PROPOSITION N

**PROHIBITION OF SMOKING**

(Vote for ) 1

(WITH 211 OF 480 PRECINCTS COUNTED 43.96%)

YES . . . . . . . . . . . . 40,475 63.55

NO. . . . . . . . . . . . . 23,216 36.45

KIRKWOOD-PROPOSITION 1

**PROHIBITION OF SMOKING**

(Vote for ) 1

(WITH 0 OF 15 PRECINCTS COUNTED)

YES . . . . . . . . . . . . 244 72.84

NO. . . . . . . . . . . . . 91 27.16

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• GENERAL ELECTION FOR INFORMATIONAL USE ONLY (PDF) 

ST LOUIS COUNTY

PROPOSITION N

SIMPLE MAJORITY

REQUIRED

Shall the Revised Ordinances of St. Louis County be amended by enacting and adding thereto a prohibition of smoking in enclosed public places in St. Louis County, all as set forth in Exhibit A of Ordinance No. 24,105 on file with the St. Louis County Administrative Director and the St. Louis County Board of Election Commissioners?

YES NO

EXCERPT

CITY OF KIRKWOOD

PROPOSITION 1

SIMPLE MAJORITY

REQUIRED

Shall the city of Kirkwood prohibit smoking in enclosed places of employment and enclosed public places for the purpose of reducing workers and citizens exposure to secondhand tobacco smoke?

YES NO

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• Operation ‘Samhna’ : Potentially the largest seizure of cigarettes ever 

A multi agency operation, code named ‘Samhna’, headed up by Revenue’s Customs Service, is currently underway in Greenore Port, Co Louth, and surrounding area.

The operation, targeting the suspected criminal activities of an organised crime group operating both north and south of the border, involved the surveillance of a general cargo vessel M/V Anne Scan, which sailed from the Philippines on 15/09/2009 for Greenore Port, arriving at approximately 0600 hours on Monday, 26/10/2009, carrying a cargo declared as ‘animal feed’. Officers kept the vessel under surveillance, as they suspected that a large consignment of contraband cigarettes was concealed within the cargo.

Following the discharge of part of the cargo from the vessel earlier this morning onto awaiting trucks, which were allowed onwards to the importer’s premises, the multi agency task force, involving Officers of Revenues Customs Service and An Garda Siochana, moved in and raided several premises in the Co. Louth area, in addition to mounting an operation on the vessel itself. A large consignment of contraband cigarettes has been confirmed, estimated to be in excess of 120m cigarettes with a retail value of about €50m and a potential revenue at risk of approximately €40m. Several persons have been arrested at various locations by the Gardai for questioning.

The operation in the Republic of Ireland involved Officers of Revenue’s Customs Service, An Garda Siochana, The Criminal Assets Bureau, the Irish Naval Service and Air Corps and in Northern Ireland, Officers of HM Revenue & Customs and the PSNI. In addition the European Anti-Fraud Office (OLAF), which was also involved, will co-ordinate the international enquiries which will form part of the follow-up investigations. It is estimated that in excess of 150 Officers from the various Agencies participated in the field in today’s operation.

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SmokeFree.NC.gov 

House Bill 2 Goes Into Effect Jan. 2, 2010

Welcome

The Law

Proposed Rules

Frequently Asked Questions

Tools for Businesses

Educational Materials

Secondhand Smoke

Quitting Tobacco Use

Contact Us: Local Health Departments

Complaint Form: Reporting Violation(s)

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• New Web Site Provides Info On Upcoming Smoking Ban  

A new government Web site has been launched to ease the transition with a new law that requires restaurants, bars and lodging establishments that serve food and drink to go smoke-free as of January 2, 2010.

The Web site, www.SmokeFree.NC.gov, provides business owners and customers information on the new law, on the health hazards of secondhand smoke and on resources to help those smokers who may want to quit smoking. There are downloadable fact sheets, no-smoking signs and other tools to help make the transition to smoke-free air an easy one.

"This change is historic for North Carolina and will have a significant positive impact on public health," said Gov. Bev Perdue. "By banning smoking in our restaurants and bars, we will greatly reduce the dangers of secondhand smoke and lower health care costs for families. Our goal is to make sure North Carolina's families and businesses have the information they need about the hazards of second-hand smoke and how to implement the new law."

The new law (G.S. 130A-497) was passed by the General Assembly and signed by Governor Bev Perdue in May, and will make virtually all indoor areas of restaurants and bars in the state smoke-free, with very few exceptions.

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Form 10-Q Quarterly Report  

Overview

The condensed consolidated financial statements (unaudited) include the accounts of Reynolds American Inc., referred to as RAI, and its wholly owned operating subsidiaries. RAI’s wholly owned subsidiaries include R. J. Reynolds Tobacco Company; Santa Fe Natural Tobacco Company, Inc., referred to as Santa Fe; Lane, Limited, referred to as Lane; Conwood Holdings, Inc.; and Conwood Company, LLC and Rosswil LLC, collectively referred to as the Conwood companies.

RAI was incorporated as a holding company in the state of North Carolina on January 5, 2004, and its common stock is listed on the NYSE under the symbol “RAI.” RAI was created to facilitate the business combination of the U.S. business of Brown & Williamson Holdings, Inc., referred to as B&W, with R. J. Reynolds Tobacco Company on July 30, 2004.

References to RJR Tobacco prior to July 30, 2004, relate to R. J. Reynolds Tobacco Company, a New Jersey corporation and a wholly owned subsidiary of R.J. Reynolds Tobacco Holdings, Inc., referred to as RJR. References to RJR Tobacco on and subsequent to July 30, 2004, relate to the combined U.S. assets, liabilities and operations of B&W and R. J. Reynolds Tobacco Company, a North Carolina corporation.

RAI’s reportable operating segments are RJR Tobacco and Conwood. The RJR Tobacco segment consists of the primary operations of R. J. Reynolds Tobacco Company. The Conwood segment consists of Conwood Holdings, Inc., the primary operations of the Conwood companies and Lane. RAI’s wholly owned subsidiary, Santa Fe, among others, is included in All Other. The segments were identified based on how RAI’s chief operating decision maker allocates resources and assesses performance. Some of RAI’s wholly owned operating subsidiaries have entered into intercompany agreements for products or services with other RAI operating subsidiaries. As a result, certain activities of an operating subsidiary may be included in a different segment of RAI. . . .

Various legal proceedings or claims, including litigation claiming that cancer and other diseases, as well as addiction, have resulted from the use of, or exposure to, RAI’s operating subsidiaries’ products, are pending or may be instituted against RJR Tobacco, the Conwood companies or their affiliates, including RAI and RJR, or indemnitees, including B&W. These pending legal proceedings include claims relating to cigarette products manufactured by RJR Tobacco or certain of its affiliates and indemnitees, as well as claims relating to smokeless tobacco products manufactured by the Conwood companies. A discussion of the legal proceedings relating to cigarette products is set forth below under the heading “— Litigation Affecting the Cigarette Industry.” All of the references under that heading to tobacco-related litigation, smoking and health litigation and other similar references are references to legal proceedings relating to cigarette products and are not references to legal proceedings involving smokeless tobacco products, and case numbers under that heading include only cases involving cigarette products. The legal proceedings relating to the smokeless tobacco products manufactured by the Conwood companies are discussed separately under the heading “— Smokeless Tobacco Litigation” below.

In connection with the B&W business combination, RJR Tobacco has agreed to indemnify B&W and its affiliates, including its indirect parent, British American Tobacco p.l.c., referred to as BAT, against certain liabilities, costs and expenses incurred by B&W or its affiliates arising out of the U.S. cigarette and tobacco business of B&W. As a result of this indemnity, RJR Tobacco has assumed the defense of pending B&W-specific tobacco-related litigation, has paid the judgments and costs related to certain pre-business combination tobacco-related litigation of B&W, and has posted bonds on behalf of B&W, where necessary, in connection with cases decided since the B&W business combination. In addition, pursuant to this indemnity, RJR Tobacco expensed less than $1 million during each of the first nine months of 2009 and 2008 for funds to be reimbursed to BAT for costs and expenses incurred arising out of certain tobacco-related litigation.

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PROHIBIT SMOKING IN OUTDOOR DINING AREAS 

Motion - That the City Attorney be requested to prepare and present an ordinance to prohibit smoking in outdoor dining areas and within five feet of such areas, similar to a recent ordinance enacted by the City of Burbank. . . .

Date Activity 10/22/2009 Arts, Parks, Health and Aging Committee scheduled item for committee meeting on October 27, 2009.

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University of Kentucky Tobacco-Free Policy 

"Enacting the tobacco-free policy at the University of Kentucky in November will greatly improve the campus atmosphere for all members of our community," said UK President Lee T. Todd, Jr. "This policy has already created a healthier environment for patients, workers, and visitors at the UK HealthCare Medical Campus, and we look forward to the long-term benefits of its implementation throughout all areas of the UK campus."

The University of Kentucky campus will become completely tobacco-free on all campus grounds and parking areas on November 19, 2009, coinciding with the American Cancer Society's Great American Smokeout®, held annually on the third Thursday in November. A tobacco-free policy, which prohibits the use of all tobacco products on all grounds and parking areas (cigarettes, chew, pipes, cigars, snuff, etc.), has already been in effect at the UK Medical Center and all UK HealthCare-owned facilities within Fayette County since November 20, 2008, and will now apply to all areas of the contiguous UK campus in Lexington, indoors and out. . . .

Frequently Asked Questions

-When does the tobacco-free policy go into effect?

November 19, 2009, in conjunction with the American Cancer Society's Great American Smokeout.

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Form 8-K Current Report  

Third Quarter and Nine Months 2009 — At a Glance

• Adjusted EPS: third quarter at $1.24, down 3.9 percent; nine months at $3.54, up 0.6 percent

o Excludes non-cash trademark impairments in both years, and prior-year restructuring charges and gain from joint-venture termination

• Reported EPS: third quarter at $1.24, up 72.2 percent; nine months at $2.56, down 30.2 percent

• RAI increases 2009 guidance: Adjusted EPS range of $4.60 to $4.70

• R.J. Reynolds Tobacco Company posts additional margin gains

• Conwood captures 29.9 percent share of moist-snuff market

• RAI again recognized as a leader in corporate sustainability

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New York City Council Attacks Flavored Tobacco 

Well, so this isn’t strictly a story about taxes but the ongoing rush to condemn our favorite past time (as brothers of the leaf) is just ludicrous! Share this with anyone you know in New York and see if we can’t stop the insanity! What follows is a letter to the NYC City Council from the National Association of Tobacco Outlets (NATO):

July 24, 2009 Proposed Flavored Cigarette Ban Superceded by New FDA Law; Extrapolations of Studies and State Laws Do Not Support Flavored Tobacco Ban New York City Council Members New York City Council City Hall, Room 5 New York, NY 10007 Dear Council Member: The National Association of Tobacco Outlets (“NATO”) strongly opposes Proposed Introduction No. 433A that seeks to ban the sale of flavored cigarettes, flavored cigars, flavored chewing tobacco and other flavored tobacco products. While you may already have an opinion about tobacco products, I urge you to read this letter to fully understand how studies and other state statutes have been extrapolated in an illogical manner in a vain attempt to support adoption of this ban on flavored tobacco products. . . .

In short, the report issued by the Committee on Health cannot and should not be relied upon from a legal or factual standpoint to support the passage of Proposed Introduction No. 433-A. All of the studies cited in the report are from anti-tobacco organizations or government health agencies that by any definition are not impartial or unbiased. To exacerbate this lack of scientific impartiality, the report takes far too many liberties with the factual basis of these studies and state laws to have any legal credibility. This lack of integrity found within the report will lay the groundwork for possible legal action to enjoin the administration and enforcement of the proposed regulation if it is passed into law.

For the New York City Council to adopt Proposed Introduction No. 433-A based in whole or in part on the extrapolations and inaccuracies in the Committee on Health report is an example of inappropriate public policymaking. While NATO and its members have always supported the goal of preventing underage youth tobacco use, the extraneous nature of the Committee on Health report calls into serious question whether the regulation is even necessary.

With the new FDA tobacco regulations banning flavored cigarettes across the country and the lack of credible empirical support for a ban on all other flavored tobacco products, I urge you to not proceed with a final vote on Proposed Introduction No. 433-A.

Sincerely yours,

Thomas A. Briant

NATO Executive Director and Legal Counsel

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DCA Initiative / PREVENTING TEEN TOBACCO USE 

WHAT TOBACCO RETAILERS NEED TO KNOW

The DCA licenses cigarette retailers in New York City, and enforces City and State laws that prohibit the sale of tobacco to minors.

The agency takes this responsibility seriously. All retail tobacco dealers in New York City must register with the State Department of Taxation and Finance to sell tobacco products in New York City, and cigarette retailers must get an additional license from the DCA.

The DCA runs one of the best and most comprehensive Teen Tobacco Enforcement Programs in the country, in which teens work with agency inspectors and go undercover to curb illegal sales to minors. Accompanied by a DCA inspector, teens conduct more than 14,000 routine inspections year-round in all five boroughs.

The DCA's Teen Tobacco Enforcement Program is funded by a New York State grant administered by the New York City Department of Health and Mental Hygiene.

Compliance by stores inspected by the DCA has gone from 52%, when the program formally began in 1998, to more than 80% in recent years.

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USDA Reminds Tobacco Quota Holders and Producers of Sign-Up Deadline for 2010 Payment Nov. 2, 2009, Deadline also Applies to Sales of Remaining Payments  

Agriculture Secretary Tom Vilsack today reminded tobacco quota holders and producers not currently enrolled in the Tobacco Transition Payment Program (TTPP) that they have until Nov. 2, 2009, to sign-up to receive a 2010 TTPP payment.

The TTPP, also known as the tobacco buy-out, provides approximately $10 billion in ten annual installments to eligible tobacco quota holders and producers from 2005 through 2014. Payments for 2010 through 2014 will be issued annually in January.

USDA also reminds tobacco quota holders and producers that they have until Nov. 2, 2009, to sell their remaining five annual payments to a successor to receive a lump-sum payment. Certain requirements must be met to qualify for lump-sum payments. More information on lump-sum payments is available at www.fsa.usda.gov/tobacco or by calling the USDA Farm Service Agency at (202) 720-7901. Contract holders who do not complete this process by Nov. 2, 2009, can arrange for the sale of their remaining four payments beginning Jan. 19, 2010.

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